UPDATE 2-RBC sets up team to scrutinize Panama data -CEO

Wed Apr 6, 2016 12:56pm EDT
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* CEO says bank has set up team to review Panama allegations

* CEO says Panama data goes back 40 years

* CEO says accuracy of Panama data still not verified (Recasts, adds comments on Panama data leak)

By Matt Scuffham

MONTREAL, April 6 (Reuters) - Royal Bank of Canada is reviewing its records after being named in leaked documents that appeared to show a Panamanian law firm's clients evaded taxes and laundered money, Chief Executive Officer Dave McKay said on Wednesday.

RBC, Canada's biggest bank, is one of several financial institutions named in data that emerged following an investigation by the International Consortium of Investigative Journalists. The bank and its subsidiaries were associated with 378 shell companies registered in the Mossack Fonseca law firm's data.

At the bank's annual meeting, McKay faced several questions from shareholders who were unhappy about the impact they felt the allegations had had on the bank's reputation. One investor described the effect as "catastrophic".

"I am equally unhappy RBC has been dragged into this," McKay told reporters after the meeting.

McKay said RBC had not been accused of any illegality or wrongdoing and reiterated that it had controls in place to prevent illegal activity. He also said the bank had so far not been able yet to verify the data, which goes back decades.   Continued...