Mossack Fonseca to close due to 'irreversible damage' caused by Panama Papers

16/03/2018 News Team

Panamanian law firm Mossack Fonseca is shutting down due to the economic and reputational damage inflicted by its role in the Panama Papers scandal.

The Panama Papers investigation in early 2016 was based on stolen files from the company showing how its clients used offshore corporations to mitigate their taxes in other jurisdictions.

In a statement the firm said that it was the victim of a "cyber-attack" that had "distorted" the firm's image.

The statement added: “The reputational deterioration, the media campaign, the financial circus and the unusual actions by certain Panamanian authorities, have occasioned an irreversible damage that necessitates the obligatory ceasing of public operations at the end of the current month.” 

The International Consortium for Investagative Journalism (ICIJ) reported that Mossack Fonseca had told clients in November that it had to “significantly reduce” its staff due to changes to the laws and an “adverse business environment”. The firm currently has less than 50 employees.

Earlier this year, Mossack Fonseca announced that it would no longer provide Registered Agent services in five jurisdictions following its involvement in the Panama Papers scandal.

The law firm has said it would continue “fighting for justice” and that it would continue to cooperate with authorities.

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