Mossack Fonseca, the law firm at the centre of the massive data leak known as Panama Papers, has announced plans to close operations by the end of this month citing negative press and unwarranted regulatory actions as the reasons.
“The reputational deterioration, the media campaign, the financial siege and the irregular actions of some Panamanian authorities have caused irreparable damage, whose obligatory consequence is the total cessation of operations to the public,” the law firm said in a statement.
The firm said that it will continue to cooperate with regulators to prove that “no crime has been committed”.
Panama Papers was a data leak of 11.5 million tax documents from Mossack Fonseca in April 2016, which revealed the secret dealings of the affluent, Russian president Vladimir Putin and Chinese president Xi Jinping.
The papers were obtained by the German newspaper Suddeutsche Zeitung from an anonymous source and shared with media organisations by International Consortium of Investigative Journalists (ICIJ).
Soon after the revelations, the law firm closed operations in Jersey, Isle of Man and Gibraltar.
In November 2017, the law firm also announced plans to reduce headcount owing to an adverse business environment.