From 1903 to 1968, Panama was a constitutional democracy dominated by a commercially oriented oligarchy. During the 1950s, the Panamanian military began to challenge the oligarchy's political hegemony. The early 1960s saw also the beginning of sustained pressure in Panama for the renegotiation of the Hay–Bunau-Varilla Treaty, including riots that broke out in early 1964, resulting in widespread looting and dozens of deaths, and the evacuation of the American embassy.[26]


Angola's $5 billion sovereign wealth fund, the Fundo Soberano de Angola (FSDEA), promotes itself as a vehicle of development and prosperity for Angola. The FSDEA is headed by José Filomeno de Sousa "Zenu" dos Santos, the son of President José Eduardo dos Santos, who has been in power since 1979. Funded by the state-owned petroleum company Sonangol, the FSDEA has critics who say that its record-keeping is murky and that it seems to engage in nepotism and cronyism.[443]
The National Mineral Agency (NMA) until 2005 valued diamonds for export using a price book based on 1996 figures. Companies also often seek to minimize the value of their diamond exports to reduce taxes and move profits abroad. Once transferred to a subsidiary elsewhere where their value is not taxed, the same diamonds are frequently worth more.[18]
President Barack Obama addressed the overseas shell companies listed by the leak in a press conference: "It's not that they're breaking the laws," he said, "it's that the laws are so poorly designed that they allow people, if they've got enough lawyers and enough accountants, to wiggle out of responsibilities that ordinary citizens are having to abide by."[420] Although no leader in the US was mentioned in the Panama Papers, Obama said that "Frankly, folks in America are taking advantage of the same stuff".[421]
Panama's tropical environment supports an abundance of plants. Forests dominate, interrupted in places by grasslands, scrub, and crops. Although nearly 40% of Panama is still wooded, deforestation is a continuing threat to the rain-drenched woodlands. Tree cover has been reduced by more than 50 percent since the 1940s. Subsistence farming, widely practised from the northeastern jungles to the southwestern grasslands, consists largely of corn, bean, and tuber plots. Mangrove swamps occur along parts of both coasts, with banana plantations occupying deltas near Costa Rica. In many places, a multi-canopied rain forest abuts the swamp on one side of the country and extends to the lower reaches of slopes on the other.
According to Forbes, "Hinojosa and other prominent Mexicans, mostly businessmen with close ties to the government, including at least one member of the Forbes billionaires list, were the subject of extensive articles published online by ICIJ investigation partners Proceso and Aristegui Noticias Sunday."[410] Proceso also said that the Mexicans mentioned in the leaked documents included individuals linked to drug cartels.[408]
In 1671, the privateer Henry Morgan, licensed by the English government, sacked and burned the city of Panama – the second most important city in the Spanish New World at the time. In 1717 the viceroyalty of New Granada (northern South America) was created in response to other Europeans trying to take Spanish territory in the Caribbean region. The Isthmus of Panama was placed under its jurisdiction. However, the remoteness of New Granada's capital, Santa Fe de Bogotá (the modern capital of Colombia) proved a greater obstacle than the Spanish crown anticipated as the authority of New Granada was contested by the seniority, closer proximity, and previous ties to the viceroyalty of Lima and even by Panama's own initiative. This uneasy relationship between Panama and Bogotá would persist for centuries.
The city of Panama is still a banking center, although with very visible controls in the flow of cash. Shipping is handled through port facilities in the area of Balboa operated by the Hutchison Whampoa Company of Hong Kong and through several ports on the Caribbean side of the isthmus. Balboa, which is located within the greater Panama metropolitan area, was formerly part of the Panama Canal Zone, and the administration of the former Panama Canal Zone was headquartered there.
Schembri, a businessman who managed the electoral campaign of the Labour Party in the 2013 Maltese general elections, and serves as chief of staff to Muscat, was reported to hold an offshore company based in the British Virgin Islands,[218] and owns an anonymous shell company in Panama, called Tillgate Inc, held by a trust established for him in New Zealand. Konrad Mizzi and Keith Schembri acquired their shell companies in Panama, Hearnville Inc and Tillgate Inc respectively, via the Mossack Fonseca representatives in Malta, who also tried to open bank accounts linked to the two shell companies of the two politically exposed persons in various jurisdictions.[216][219][220] The owner of a third anonymous shell company in Panama, Egrant Inc, whose existence was revealed in the same document referring to the other two companies, remains unknown, although the strict secrecy observed in its acquisition, including the avoidance of e-mail communications and the utilization of communications via Skype, have fuelled strong suspicions that a third top Maltese politically exposed person is involved.[221][222]
On April 7, 2016, the Anti Corruption Commission Bangladesh launched an inquiry to obtain details of the businesses and individuals allegedly affiliated with Mossack Fonseca.[336] Allegations have been made against thirty-two Bangladeshi individuals and two corporations, however, media outlets staking this claim have referenced an old ICIJ database of information compiled during the investigation of the 2013 Offshore Leaks.[337]
The city proper has approximately 880,691 inhabitants in 23 boroughs.[25] The inhabitants of Panama City are commonly referred to as capitalinos and include large numbers of Afro-Panamanians, mestizos, and mulattos, with notable white and Asian minorities.[26] There is a great deal of cultural diversity within the city, which manifests itself in the wide variety of languages commonly spoken, such as German, Portuguese, French, Arabic, Chinese, Hebrew and English, in addition to Spanish.[18]
Additional stories were released based on this data, and the full list of companies was released in early May 2016.[64] The ICIJ later announced the release on May 9, 2016 of a searchable database containing information on over 200,000 offshore entities implicated in the Panama Papers investigation and more than 100,000 additional companies implicated in the 2013 Offshore Leaks investigation.[65] Mossack Fonseca asked the ICIJ not to publish the leaked documents from its database. "We have sent a cease and desist letter," the company said in a statement.[66]
The city's main retail center was the Panama City Mall until it was permanently closed after Hurricane Michael. It may be turned into an outdoor mall, but this has not been officially confirmed. Another local retail center is the Bay City Pointe, on FL 368 (locally known as 23rd St.), which is still under construction but partially open. Pier Park, on the beach across the Hathaway Bridge spanning St. Andrews Bay, is a third local retail center.
Samina Durrani, mother of Shebaz Sharif's second wife, and Ilyas Mehraj, brother of his first, also figure in the documents. Habib Waqas Group/Ilyas Mehraj is listed as a shareholder with 127,735 shares in Haylandale Limited, registered July 24, 2003 in the Bahamas. Mehraj has denied knowing anything about "any company whether incorporated in the Commonwealth of Bahamas or anywhere else under the name: Haylandale Ltd."[366] Rainbow Limited, the newest of the three offshore companies owned by Samina Durrani, was registered September 29, 2010 in the British Virgin Islands (BVI).[366] Armani River Limited, registered in the Bahamas on May 16, 2002, describes its assets as "property in London, which is not currently rented."[366] Assets of Star Precision Limited, registered in BVI May 21, 1997, were reported as "cash as the investment portfolio. We are also holding 1,165,238 shares in Orix Leasing Pakistan Limited."[366]
In theory American[448] and European[451] buyers of gold in Africa are required to review their supply chain and report any use of conflict resources, such as gold from eastern Congo. In practice the requirement is widely ignored, and an investigation by African Network of Centers for Investigative Reporting (ANCIR) found examples in the leaked Mossack Fonseca documents of anonymous shell companies doing the sourcing. For a start, most of the DRC gold winds up in Dubai by way of Uganda. Dubai's $75 billion gold industry is regulated with a very light hand by the quasi-private Dubai Multi Commodities Centre (DMCC).[449]
With a plethora of deserted islands, chilled Caribbean vibes on one side and monster Pacific swells on the other, Panama sits poised to deliver the best of beach life. And a whole other world begins at the water's edge. Seize it by scuba diving with whale sharks in the Pacific, snorkeling the rainbow reefs of Bocas del Toro or setting sail in the indigenous territory of Guna Yala, where virgin isles sport nary a footprint. Meanwhile surfers will be psyched to have world-class breaks all to themselves. Hello, paradise.
The Isthmus of Panama was formed about three million years ago when the land bridge between North and South America finally became complete, and plants and animals gradually crossed it in both directions. The existence of the isthmus affected the dispersal of people, agriculture and technology throughout the American continent from the appearance of the first hunters and collectors to the era of villages and cities.[16][17]
Arias Madrid was declared the winner of elections that were marked by violence and accusations of fraud against Alianza del Pueblo. On October 1, 1968, Arias Madrid took office as president of Panama, promising to lead a government of "national union" that would end the reigning corruption and pave the way for a new Panama. A week and a half later, on October 11, 1968, the National Guard (Guardia Nacional) ousted Arias and initiated the downward spiral that would culminate with the United States' invasion in 1989. Arias, who had promised to respect the hierarchy of the National Guard, broke the pact and started a large restructuring of the Guard. To preserve the Guard's interests, Lieutenant Colonel Omar Torrijos Herrera and Major Boris Martínez commanded the first military coup against a civilian government in Panamanian republican history.[27]
American film-maker Stanley Kubrick had an estimated personal worth of $20 million when he died in 1999, much of it invested in an 18th-century English manor he bought in 1978. He lived in that manor for the rest of his life, filming scenes from The Shining, Full Metal Jacket and Eyes Wide Shut there as well. Three holding companies set up by Mossack Fonseca now own the property, and are in turn held by trusts set up for his children and grandchildren.[26] Since Kubrick was an American living in Britain, without the trust his estate would have had to pay transfer taxes to both governments and possibly have been forced to sell the property to obtain the liquid assets to pay them.[27] Kubrick is buried on the grounds along with one of his daughters, and the rest of his family still lives there.[26][27]
The city proper has approximately 880,691 inhabitants in 23 boroughs.[25] The inhabitants of Panama City are commonly referred to as capitalinos and include large numbers of Afro-Panamanians, mestizos, and mulattos, with notable white and Asian minorities.[26] There is a great deal of cultural diversity within the city, which manifests itself in the wide variety of languages commonly spoken, such as German, Portuguese, French, Arabic, Chinese, Hebrew and English, in addition to Spanish.[18]

Panama's roads, traffic and transportation systems are generally safe, though night driving is difficult and in many cases, restricted by local authorities. This usually occurs in informal settlements.[62] Traffic in Panama moves on the right, and Panamanian law requires that drivers and passengers wear seat belts.[62] Highways are generally well-developed for a Latin American country.

Panama was inhabited by indigenous tribes before Spanish colonists arrived in the 16th century. It broke away from Spain in 1821 and joined the Republic of Gran Colombia, a union of Nueva Granada, Ecuador, and Venezuela. After Gran Colombia dissolved in 1831, Panama and Nueva Granada eventually became the Republic of Colombia. With the backing of the United States, Panama seceded from Colombia in 1903, allowing the construction of the Panama Canal to be completed by the US Army Corps of Engineers between 1904 and 1914. The 1977 Torrijos–Carter Treaties led to the transfer of the Canal from the United States to Panama on December 31, 1999.[9]
Boquete is one of the original areas in Panama to have an expat community. Held as one of the largest expat populations in Panama, current estimates are the population of expats number 5,000 among the 25,000 people living in this highland mountain town. Boquete has always been a tourist destination for those seeking outdoor activities and cooler weather. Several expats have opened businesses in Boquete such as bakeries, hotels, and restaurants. Boquete has become known as a holistic and wellness center with an array of classes in Yoga, meditation, Tai Chi, and Chi Gong on offer.
The Süddeutsche Zeitung, one of the newspapers participating in the project that made the papers public, described the connections of various individuals listed in them to Russian president Vladimir Putin. They quoted Nobel-winning economist Paul Krugman and US State Department documents saying that Russia is a "kleptocracy" and a "mafia state" respectively.[235] The Süddeutsche Zeitung reported about $2 billion had moved through a network of companies associated with Russian firms and individuals in "just a few years" and the companies appeared to have been used for "questionable business transactions".[235]

By April 8, the government understood that media reports were addressing tax evasion and that they were not attacking Panama. The president met on Wednesday April 7, with CANDIF, a committee of representatives from different sectors of the economy which includes the Chamber of Commerce, Chamber of Industry and Agriculture, the National Lawyers Association, the International Lawyers Association, the Banking Association and the Stock Exchange, and entered full crisis management mode.[129]On the same day he announced the creation of a new judiciary tribunal and a high-level commission led by Nobel Prize Laureate Joseph Stiglitz. There were accussations that foreign forces were attacking Panama because of Panama's "stable and robust economy".[130]
Tourism in Panama is rapidly growing.[citation needed] It has maintained its growth over the past five years due to government tax and price discounts to foreign guests and retirees. These economic incentives have caused Panama to be regarded as a relatively good place to retire.[citation needed] Real estate developers in Panama have increased the number of tourism destinations in the past five years because of interest in these visitor incentives.[65]
Sri Lankan Finance Minister Ravi Karunanayake said his panel will investigate Sri Lankan names that come up in the Panama Papers, as well as the 46 who appear in the 2013 Offshore Leaks, according to the Daily Mail, since earlier leadership apparently did not do so. The country has many large outstanding foreign loans taken out under the administration of former president Mahinda Rajapakse, and the current government recently had to obtain a US$1.5 billion IMF bailout. Rajapakse has denied diverting funds. The current government came to power in January 2016 on an anti-corruption platform.[382]
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