KPMG surveyed financial institutions globally to understand their initial response to the release of the Panama Papers. Here are the results.
On May 9, 2016, the International Consortium of Investigative Journalists (ICIJ) released a database that had been leaked from the files of the Panamanian law firm, Mossack Fonseca – it has been dubbed the Panama Papers. The database contains information pertaining to approximately 214,000 offshore companies and is based on more than 11.5 million documents. The leaked documents are reported to date back more than four decades, and allegedly reflect Mossack Fonseca’s involvement in assisting in the creation of secret shell companies and offshore accounts, including in connection with alleged illegal activities.
The Panama Papers may continue to present challenges for companies who have had direct or indirect dealings with the offshore companies and their owners identified. In particular, financial institutions have become all too aware of the financial, reputational and regulatory risks connected with being associated with alleged or actual misconduct. In response to the ICIJ release, many financial institutions launched immediate responses to the release of the Panama Papers in order to assess their risk.
In order to better understand how these financial institutions have responded to date, KPMG recently conducted a global survey of financial institutions. Their responses are summarized in this report.