Panama firm Mossack Fonseca has pulled out of New Zealand following increased focus on its trust business there after the Panama Papers data leaks.
Both Minister within the Office of the Prime Minister, Konrad Mizzi and the Prime Minister's chief of staff, Keith Schembri set up trusts in New Zealand through Mossack Fonseca to hold their Panama companies.
Roger Thompson, from the accountancy firm Bentley New Zealand, told the International Consortium of Investigative (ICIJ) Partners RNZ that he was not aware of Mossack Fonseca currently being active in New Zealand.
The accountant told RNZ that his firm was not providing any services to Mossack Fonseca.
“We do not currently act for any foreign trust clients that have come through any association with Mossack Fonseca,” Mr Thompson told RNZ.
Mr Thompson acted as an agent for Mossack Fonseca and was a director of an associated trustee company through which Dr Mizzi and Mr Schembri established their trusts.
Dr Mizzi has repeatedly said he set up his trust in New Zealand since it was a reputable jurisdiction which shared information with other tax authorities
Leaked e-mails from the Panama Papers show that Mr Thompson was copied in to show that Bentley's repeatedly sought clarification and reassurance about the source of funds for Dr Mizzi and Mr Schembri's Panama operations.
The New Zealand Treasury published an inquiry into foreign trust disclosure rules following the Panama Papers leak.
It found that the rules were inadequate and not robust enough to protect New Zealand’s reputation.
The inquiry recommended a significant increase in information disclosure when a foreign trust is set up, annual reporting, and increased enforcement.
Dr Mizzi has repeatedly said he set up his trust in New Zealand since it was a reputable jurisdiction which shared information with other tax authorities.
Both Dr Mizzi and Mr Schembri had failed to declare their trusts with Maltese tax authorities, as required by law.
New Zealand Prime Minister John Key said last June that disclosure requirements were “light-handed” and tougher disclosure rules would act as a deterrent for anyone looking to use New Zealand trusts for illicit purposes.
Stricter rules in New Zealand will be introduced from July to deter tax evasion and money laundering, including moves to pass on names of those with foreign trusts to other countries without being asked.
Mossack Fonseca founders Jurgen Mossack and Ramon Fonseca are currently being held in custody as part of an international investigation into millions worth of bribes allegedly paid by the Brazilian engineering corporation Odebrecht.