Panama convenes panel and calls for talks to head off financial crackdown

Panama has moved to head off an international crackdown on its secretive finance sector. It has called for talks to calm the worldwide storm sparked by the leak of millions of emails revealing its role in providing offshore havens for the world’s rich and powerful. President Juan Carlos Varela also pledged to set up a panel of experts to strengthen the transparency of the financial and legal systems. But Mr Varela, stung by the criticism from abroad, also struck a defiant tone, vowing to “confront whoever comes to put down Panama’s image”.

I call on the OECD countries to return to the table for dialogue and seek agreements, and to not use these events to affect Panama’s image.

President Juan Carlos Varela

The papers have already toppled Iceland’s prime minister, prompted media allegations against the inner circles of both the Russian and Chinese presidents and rattled the rich and famous across the globe. Swiss police searched UEFA’s Geneva offices as part of a probe into a Champions League television rights deal signed by Gianni Infantino before he became the president of world football’s governing body. But Mr Varela has refused to turn his back on Ramon Fonseca, a political ally and partner in the international firm, Mossack Fonseca, at the centre of the scandal. "At difficult times friends do not run away, they are there,“ Mr Varela said.

(Panama) is the last major holdout that continues to allow funds to be hidden offshore from tax and law enforcement authorities.

Head of the OECD Angel Gurria

varela