Iceland Prime Minister Sigmundur Gunnlaugsson on Tuesday resigned, becoming the first political victim of a mushrooming worldwide scandal over hidden offshore financial dealings exposed in the so-called Panama Papers BBC reported.
The leaks, from Panama law firm Mossack Fonseca, showed that Gunnlaugsson owned an offshore company, Wintris, with his wife.
He was accused of concealing millions of dollars worth of family assets.
A big protest was held in front of parliament in Iceland on Monday.
Dozens of high-profile global figures were named in the huge Mossack Fonseca leak.
Gunnlaugsson had earlier called on President Olafur Ragnar Grimsson to dissolve parliament, but that was refused.
Grimsson said he wanted to speak to political parties first.
“I do not think it is normal that the prime minister alone … should be given the authority to dissolve the parliament without the majority of the parliament being satisfied with that decision,” the president told reporters.
Some observers describe his rejection of the prime minister’s request as highly unusual.