Panamanian Court Acquits 28 Individuals Linked to Panama Papers and Operation Car Wash Scandals

A Panamanian court has acquitted 28 individuals charged with money-laundering in cases linked to the Panama Papers and Operation Car Wash scandals. The country's judicial branch announced the verdict on Friday, but did not disclose the names of those acquitted.

The ruling, handed down by Judge Baloisa Marquinez, also lifted precautionary measures against all defendants and canceled one criminal process due to the death of an unnamed defendant. This development comes on the heels of the death of Ramon Fonseca, co-founder of the now-defunct law firm Mossack Fonseca, in May. Fonseca had been hospitalized since early April.

Mossack Fonseca, a law firm at the center of the Panama Papers scandal, was thrust into the spotlight in 2016 after leaked confidential documents exposed accounts housed in tax havens linked to high-profile individuals, including former Argentine President Mauricio Macri, Ukrainian President Volodymyr Zelenskiy, and Argentine football star Lionel Messi .

In her ruling, Judge Marquinez cited that evidence collected from Mossack Fonseca's servers did not comply with the chain of custody, a crucial aspect of evidence handling in criminal investigations. Furthermore, she ruled that it could not be determined that money from illicit sources had entered Panama from Brazil with the purpose of helping conceal crimes, a key aspect of the Operation Car Wash probe.

Why it Matters : The acquittal of these 28 individuals has significant implications for the ongoing efforts to combat money-laundering and corruption in Panama and beyond. The Panama Papers scandal, which exposed widespread tax evasion and money-laundering, led to a global crackdown on offshore financial secrecy . The Operation Car Wash probe, which originated in Brazil, has sent dozens of Latin American political and business leaders to jail, including several former presidents.

The ruling raises questions about the effectiveness of Panama's judicial system in tackling complex financial crimes and the challenges of building cases against individuals accused of money-laundering. It also underscores the need for continued international cooperation and information sharing to combat corruption and financial crimes.

Key Takeaways : 

• A Panamanian court acquitted 28 individuals linked to the Panama Papers and Operation Car Wash scandals.
• The ruling questions Panama's judicial effectiveness against financial crimes.
• This acquittal affects anti-money laundering and anti-corruption efforts globally.
• The Panama Papers exposed widespread tax evasion and money-laundering, leading to a global crackdown.
• Operation Car Wash has jailed numerous Latin American leaders, including ex-presidents.