The Panama Papers
The Story
In 2016, an anonymous source leaked 11.5 million documents from the Panamanian law firm Mossack Fonseca. The papers revealed how the firm helped world leaders, celebrities, and billionaires set up secret offshore shell companies and tax havens to hide wealth, launder money, and evade sanctions. It was one of the largest data leaks in history.
🚩 Red Flags
- Use of complex, layered corporate structures for no clear business purpose
- Nominee directors hiding true owners
- Transactions routed through multiple secrecy jurisdictions
- Law firms specializing in 'confidentiality'
- Politicians and officials owning hidden companies
⚖️ The Fallout
Mossack Fonseca was forced to close. The leak led to the resignations of prime ministers in Iceland and Pakistan, and sparked criminal investigations, audits, and reforms in dozens of countries. It exposed the vast, hidden architecture of global corruption.
📚 Lessons Learned
Revealed the systemic nature of international tax evasion and money laundering. Showed the power of whistleblowers and data journalism.
Related Scams