The trial of 27 individuals implicated in the "Panama Papers" money laundering scandal commenced on Monday in a Panamanian criminal court. Among those facing charges are the proprietors of the Mossack-Fonseca law firm, which was central to the massive document leak in 2016.
The "Panama Papers" comprise a trove of 11 million confidential financial documents exposing how some of the world's wealthiest individuals conceal their assets.
The fallout from the leaks has been extensive, resulting in the resignation of Iceland's prime minister and drawing scrutiny to leaders in Argentina and Ukraine, as well as to Chinese and Russian officials, among others.
After several delays, the trial officially began on Monday, with defendants including lawyers Juergen Mossack, Ramón Fonseca, and former representatives or employees of the firm facing charges related to money laundering.
Mossack was present in the courtroom and declared his innocence, stating, "I am not guilty of such acts." Meanwhile, Fonseca's lawyers stated that he was hospitalized in Panama.
The case revolves around allegations that the law firm established shell companies to purchase properties in Panama using funds from a large-scale corruption scheme in Brazil known as the Car Wash, or Lava Jato, scandal.
Fonseca has contended that the firm, which ceased operations in 2018, had no control over how clients utilized offshore entities created for them. Both Mossack and Fonseca hold Panamanian citizenship, and Panama does not extradite its citizens.
In 2022, the pair was acquitted of other charges.
The leaked records initially surfaced in the German newspaper Suddeutsche Zeitung before being shared with the International Consortium of Investigative Journalists, leading to collaborative reports with various news outlets starting in 2016.
US federal prosecutors have also alleged that Mossack Fonseca conspired to evade American laws to preserve clients' wealth and conceal tax liabilities owed to the IRS. The purported scheme, dating back to 2000, allegedly involved fictitious foundations and shell companies in Panama, Hong Kong, and the British Virgin Islands.
