Prosecutors raid Mossack Fonseca law firm

Panamanian national police said on Tuesday that they were searching Mossack Fonseca for documentation that "would establish the possible use of the firm for illicit activities."

The Panama-based law firm at the center of the "Panama Papers" leaks scandal, has been accused of tax evasion and fraud. The huge data breach of more than 11.5 million documents, hit headlines on April 3 - shedding light on how the world's rich and powerful have used offshore companies to stash their assets.

As a result, Iceland's Prime Minister Sigmundur David Gunnlaugsson resigned and pressure has mounted on a slew of other leaders and their relatives around the world, including British Prime Minister David Cameron and China's President Xi Jinping.

Law firm denies accusations

Under the command of prosecutor Javier Caravallo, who specializes in organized crime and money laundering, Panamanian police officers and patrol cars began surrounding around Mossack Fonseca on Tuesday afternoon.

The raid came just a day after intellectual property prosecutors visited Mossack Fonseca to follow up on the firm's allegation that a computer hack led to the huge data leak.

The firm, which specializes in setting up offshore companies, filed a complaint regarding the security breach shortly before the first media reports revealed details about how politicians, celebrities and companies from around the world had hidden assets in offshore accounts and shell companies.

Founding Mossack Fonseca partner, Ramon Fonseca, insists the company has broken no laws, destroyed no documents, and that all the firm's operations were legal.

ksb/rc (Reuters, dpa)