The reports have led to protests in major cities, sharp criticism of some world leaders, investigations of others, and the resignation of Iceland’s prime minister. The practices described in the reports are not necessarily illegal, but they reveal tax and privacy laws in Panama and other tax havens that are friendly to wealthy foreign investors and could be, with little effort, exploited for more nefarious purposes.
Mossack Fonseca has denied any wrongdoing and says all of its operations are legal. Shortly after the existence of the leak was reported, the law firm released a statement explaining it is not involved in how the accounts and shell companies it opens for foreign investors are used.
“This is a tropical storm, like the ones we have here in Panama where once it passes the sun will come out,” Roman Fonseca, one of the firm’s founders, said