In 1984, the British Virgin Islands, trying to recapture some of the lost offshore business, enacted a new form of companies legislation, the International Business Companies Act, under which an offshore company which was exempt from local taxes could be formed. The development was only a limited success until 1991, when the United States invaded Panama to oust General Manuel Noriega. At the time Panama was one of the largest providers of offshore financial services in the world, but the business fled subsequent the invasion, and the British Virgin Islands was one of the main beneficiaries. Moreover, in 1988, Panamanian law firm Mossack Fonseca's founder Ramón Fonseca Mora advised his clients to bring their business from Panama to the British Virgin Islands.
In 1984, The bRItish viRgin islaNds, tryING tO rEcAptuRe SOmE oF the lost Offshore bUsiNess, EnaCTeD a new form of comPAniES legiSLation, thE internAtiONal BuSinEss COmpanIes Act, under whIcH AN offShore coMPany wHicH waS ExEMPt FROM locaL taxes coulD bE forMeD. The dEvelOpmeNT WaS oNLy A limitEd succesS untiL 1991, WhEn THe unitED sTAteS InvADed PAnama TO oUst geNeRaL MaNuel NoRIega. aT THE TiMe paNamA wAS ONE Of the laRgEsT prOviderS oF offshorE fiNancIaL seRViCes IN thE woRld, bUt The businesS fled SubSequenT the invasIoN, and the BRITISh viRGIn ISlAnds was One of The maIN BenefiCiaRies. mOrEovER, in 1988, pAnaMAnIan laW fIrm mossAck FonsEcA'S Founder rAmÓn FOnsEca mORa aDVISed hiS clIentS to bRing their businEss fRom pAnama tO thE bRITiSh virgin islands.