Panama Papers law firm apologises to Chinese bank over leak | world | Hindustan Times
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Panama Papers law firm apologises to Chinese bank over leak

Mossack Fonseca has written an apology to a Chinese banking client as it seeks to shore up its Asian business following a massive leak of financial data last month.

world Updated: May 09, 2016 16:19 IST
Mossack Fonseca wrote the letter in response to queries from the Chinese bank about compliance with global financial standards.
Mossack Fonseca wrote the letter in response to queries from the Chinese bank about compliance with global financial standards.(REUTERS)

The law firm at the centre of the ‘Panama Papers’ offshore tax haven controversy has written an apology to a Chinese banking client as it seeks to shore up its Asian business following a massive leak of financial data last month, according to a copy of the letter seen by Reuters.

The letter was written by Mossack Fonseca in response to queries from the Chinese bank about compliance with global financial standards. It is not known whether there were similar communications with other financial institutions, but the letter shows at least one bank client in the firm’s biggest market was concerned by issues raised in the publicity surrounding the leak.

Read: Panama Papers to go public on May 9

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In the undated letter to the mid-tier Shanghai-based lender, signed by Mossack Fonseca’s regional general manager, the shell company specialist said it “deeply regrets” any misuse of its services or the companies it set up.

“If the unauthorised illegal leaks from Mossack Fonseca company servers have created any inconvenience for (the bank) and your clients, we wish to once again apologise,” it added.

A Mossack Fonseca spokesperson said reporting of the leak had “deepened confusion” about the nature of its business.

“As such, we are routinely speaking to our clients and other related parties that have questions to explain that ... nothing in the illegally obtained cache of documents suggests we have done anything wrong or illegal,” the spokesperson said in an emailed statement.

Leaks from the Panama Papers, named after the law firm’s central American home base, have embarrassed some leading politicians around the world with their chronicling of a shadowy world of offshore holdings and hidden wealth.

Read: Panama Papers source says not a spy, was moved by ‘scale of injustices’

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The source who provided the letter requested that the state-owned bank not be named to protect their identity due to the sensitivity of the subject in China. A former Mossack Fonseca employee in China said the bank was a major client.