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How a Hong Kong corruption scandal sparked strife at Mossack Fonseca

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Law firm debated whether to report Asia’s largest property developer to financial crime authorities in the British Virgin Islands, Panama Papers reveal

The arrest of an executive at the centre of a corruption scandal sparked a battle inside the law firm Mossack Fonseca over whether to break with one of its wealthy clients, leaked papers reveal.

The debate peaked with an internal recommendation that Mossack Fonseca report Sun Hung Kai Properties, Asia’s biggest property developer, to financial crime authorities in the British Virgin Islands over its attempt in 2012 to shut down a shell company controlled by the executive.

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