Warren, Brown Ask Treasury to Investigate Involvement of U.S. Entities With Panama Based Law Firm

Friday, April 08, 2016

GoLocalWorcester News Team

Elizabeth Warren

U.S. Senator Elizabeth Warren and Banking Committee Ranking Member Sherrod Brown urged the U.S. Treasury Department to investigate whether any U.S. or U.S. linked entities were involved with the law firm of Mossack Fonseca & Co.

Read the Full Text of the Letter Here

The law firm's leaked internal records appear to reveal that it has helped thousands of clients create shell companies to hide assets, some allegedly to launder money or evade their tax obligations.

“(A)s the primary agency charged with protecting the integrity of the U.S. financial system and enforcing our laws against money laundering and terrorist financing, we strongly urge the Treasury Department to conduct its own inquiry into Mossack Fonseca’s activities and its clients,” Warren and Brown said in a letter.

The senators also expressed concern about whether companies or individuals involved with or utilizing the services of this firm may have facilitated money laundering of terrorist financing with persons or entities on treasury's sanctions blacklist of "Specially Designated Nationals."

“These disturbing revelations…reveal activity that may threaten our national security and our financial system by undermining U.S. and international laws …(and) raises important questions about the susceptibility of the U.S. financial system to money laundering, terrorist financing, and other illicit enterprises.”

Warren and Brown also highlighted the role of the Treasury Department's Office of Terrorism and Financial Intelligence in safeguarding the financial system against illicit use, and underscored the urgent need for the Senate to confirm the President's nominee to head TFI, acting under secretary Adam Szubin.