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While no criminal charges have been filed anywhere (yet) against the partners at the Panama city law firm of Mossack and Fonseca, its days as the primo destination, for money launderers, tax evaders, corrupt politicians, and the usual financial crime suspects, are certainly numbered. Surely, no money launderer who wants to keep his dodgy clients will take his corporate formation business there, given the immense publicity surrounding the Panama Papers, which continue to serve as extremely interesting reading in the legitimate financial world.
Panama's problem is that Mossack and Fonseca have become the poster boys for all that is illegal and evil, in the offshore industry. Reports show that new incorporations, and foundation formations, are in steep decline in Panama, and that means less income for the country's swollen budget.
Jurgen Mossack & Ramon Fonseca
Yes, Ramón Fonseca is close to the country's president, and was an adviser, until the Panama Papers rendered him a liability to Sr. Varela, but that firm must go, if Panama is to recover from all the negative press, capital flight, and loss of new clients and investors. If MF stays open, then all pundits who are advising clients to avoid Panama will use that fact, to support their own favorite tax haven, and Panama could face a recession, or worse.
We are wondering just how long Panama will suffer Mossack Fonseca to continue to exist, for the articles about the Panama Papers expose the country to charges that is still a place where dirty money finds a home, and a willing law firm, known to all, to assist them.
Contributed by Kenneth Rijock
Chronicles of Monte Friesner
