Arrest reported over Panama Papers leak

Swiss authorities have opened a criminal investigation into the Panama Papers leak and detained a suspect, say overseas media reports.

Geneva newspaper Le Temps has reported that an “informaticien,” or computer specialist, who worked at the local office of law firm Mossack Fonseca has been arrested by Geneva prosecutors.

The report cited a source close to the matter indicating the arrest was on suspicion of leaking a large volume of confidential data.

The Geneva authorities confirmed an investigation was in train after a complaint from Mossack Fonseca but declined further comment.

Le Temps said authorities conducted a search of the law firm’s offices and computers were taken.

Bloomberg has reported that the investigation is being led by prosecutor Claudio Mascotto.

In April, the International Consortium of Investigative Journalists co-ordinated a worldwide publication of information derived from the Panama Papers, a leak of more than 11 million documents from Panama-based firm Mossack Fonseca exposing a web of secret tax haven structures used by wealthy individuals.

Last month the apparent leaker of the documents, known only as John Doe, released a statement linking his actions to concern about global corruption.

“The Panama Papers show beyond a shadow of a doubt that although shell companies are not illegal by definition, they are used to carry out a wide array of serious crimes that go beyond evading taxes,” the person wrote.

“Legitimate whistleblowers who expose unquestionable wrongdoing, whether insiders or outsiders, deserve immunity from government retribution, full stop. Until governments codify legal protections for whistleblowers into law, enforcement agencies will simply have to depend on their own resources or  global media coverage for documents.”

Bloomberg noted the earlier case of Herve Falciani, a French computer worker at HSBC’s private bank in Geneva, who was found guilty of corporate espionage in absentia by a Swiss court in 2015.

Tax authorities in France, Spain, Italy and the UK used the leaked information to target tax abuse by their own citizens.

Reuters has reported that Mr Falciani, who lives in France, is unlikely to serve jail time in Switzerland because France does not extradite its citizens and he does not face any charges in France.

HSBC was later fined 40 million Swiss francs ($60 million) for organisational faults that allowed money laundering to occur at its Swiss subsidiary.

Mossack Fonseca has issued a statement saying media reports on the Panama Papers have misrepresented the nature of its work.

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