The $440,000 (£351,261, €408,307) administrative penalty is the largest ever issued by the FSC.
The law firm was fined for contravening the FSC’s anti-money laundering and terrorist financing code of practice and BVI regulatory code
Specifically, Mossack Fonseca & Co (BVI) Ltd was reprimanded for record keeping and risk assessment failures and inadequate updating of customer due diligence.
British Virgin Islands
Half of the companies that appear in Mossack Fonseca’s files, were incorporated in BVI, equating to more than 113,000 companies.
Panama ranked second with fewer than 500,000, according to data from the International Consortium of Investigative Journalists (ICIJ), which broke the story.
Held to account
BVI premier, D. Orlando Smith, said: “[Tuesday’s] enforcement action clearly demonstrates the effectiveness of the territory’s independent regulator, the seriousness with which it tackles any breaches of its code and, through the adjustments made to its risk assessment framework, an on-going commitment to strengthening its regime to ensure this remains fit for purpose.
“Achieving this outcome in the face of intense international scrutiny is testament to the FSC’s conviction, dedication and willingness to conduct such a thorough investigation whilst holding to account those who fail to comply with the territory’s structure and regulations.”
Panama papers
Dubbed the ‘biggest ever blow to the offshore world’, the leak of 11.5 million from Mossack Fonseca in April 2016 exposed the offshore holdings of politicians, sports stars, and public officials around the world.
The UK recently announced an investigation into 22 people with link to the Panama papers suspected of tax evasion.
