Varela said: “The Government of Panama through our foreign ministry will create an independent committee of national experts and internationally recognised expertise to evaluate our current practice and propose measures to share with other countries, to strengthen the transparency of financial systems and legal.”
‘Panama Papers’
The head of state defended his nation against what he called a “media attack”, accusing wealthy countries of unfairly scapegoating him following the leak of millions of documents, dubbed the ‘Panama Papers’, from law firm Mossack Fonseca, which exposed the tax-evasive holdings of politicians, sports stars and public officials around the world.
Grey List of Financial Action Task Force (FATF)
Varela rubbished claims that the nation has a track record of alleged dubious tax practices by pointing out that it was removed from the Grey List of Financial Action Task Force (FATF) earlier this year after taking “decisive steps in favour of transparency” which met international standards.
The FATF publishes a list three times a year identifying jurisdictions with weak measures to combat money laundering and terrorist financing. In January, Panama also agreed to reveal the identities of owners of shares in corporations registered to the country.
Political fallout
Following the exposé, several countries are now investigating alleged corruption and financial crimes by the rich and powerful.
Iceland’s prime minister, Sigmundur Gunnlaugsson, became the first global government casualty of the scandal when he stood down on Tuesday following one of the largest political demonstrations ever seen in Reykjavik.
The centre-right leader faced pressure to resign over allegations that he used to own a British Virgin Islands (BVI) company that now belongs to his wife.
