Walls tumble for Mossack Fonseca
THE FIRST MAJOR local victim of the Panama Papers scandal is the financial division of Mossack Fonseca, the law firm in the center of the storm.
Mossack Fonseca Asset Management, S.A. has applied for voluntary liquidation and cancellation of its licence as a financial advisor. Through this business division, the firm Mossack) guided its customers on how and where to invest their money.
The move has been confirmed by the Superintendency of Securities. A reason for the decision was not disclosed.
During the month of April, the securities regulator began an investigation to find out if the firm complied with due diligence requirements on their customers. Regulators in the British Virgin Islands have revealed that the firm has been fined more than once for failing to exercise due diligence in that jurisdiction. The liquidation will not halt the ongoing investigations into the firm by securities regulators reports La Prensa.
According to records of the superintendency, the legal representative of the company is a former Varela administration advisor. Ramón Fonseca, an advisor to President Juan Carlos Varela until the scandal erupted, is listed as treasurer and Dirk Brauer is the manager and chief executive officer.
Mossack Fonseca has been the subject of media scrutiny since articles began being published about data from the firm that was leaked to the German newspaper Süddeutsche Zeitung.
