On july 5, 1991, an incident that has been described as the biggest bank fraud in history came to a head when regulators in seven countries raided and took control of branch offices of the bank of credit and commerce international bcci. As a result, he begins to launder money from the drug trade. The story goes that bcci was founded by pakistani financier aga hassan abedi. The president of the board of control for cricket in india is the highest post at the board of control for cricket in india bcci, which runs cricket in india. Dec 24, 2010 bcci scandal cia connections 781991 nbc hoang minh tu. It follows up with a report about bccis links to notorious terrorists such as abu nidal, the most wanted man in the world at the time. Possibly the greatest banking scandal in modern history. However, its scandalous closure, as the centre of a huge fraud, indicated that the main beneficiaries of the services of bcci were the colombian drug barons, the cia, and several prominent third world dictators. As a result, the final hardcopy version of the report, as published by.
The cia sends a report on the bank of credit and commerce international bcci and its drugrelated activities to other us government departments. The bank was registered in luxembourg with head offices in karachi and london. The bcci collapse provides an opportunity to look into. The press outlets pumping the scandal since 1990 have been those owned by british merchant banks, starting with lazard freres washington post. This december 1992 document is the penultimate draft of the senate foreign relations committee report on the bcci affair. Pakistan slams scandalous article linking it with bcci. Thousands of depositors lost heavily when bcci was wound up in 1991 amid accusations of money laundering and fraud. The row over the worlds biggest ever banking scandal intensified last night with the revelation that the bank of england had known for at least 16 months that the bank of credit and commerce. The bank of england said, bcci had lent to debtors whose ability to repay was at least doubtful.
Bank of credit and commerce international wikipedia. Bank of credit and commerce international case study. List of presidents of the board of control for cricket in. Mar 18, 2002 khalid bin mahfouz, a saudi billionaire, spent the 1990s engaged in financial folly and funding what the u. In the summer of 1991, the bank of england took the unprecedented step of shutting down one of the worlds largest banks, the bank of credit and commerce international. India off to a winning start against australia in womens t20 wc.
Bcci became a crown jewel in the british offshore hot money system because of its ties to the city of london. Khalid bin mahfouz, a saudi billionaire, spent the 1990s engaged in financial folly and funding what the u. The bank of credit and commerce international bcci was established in 1972 to provide help for poor people and poor countries. Its now been almost exactly 20 years since the last meltdown and exposure of a fraudulent bank, in this case, the notorious bank of credit and commerce international, or bcci as the scandal became known. Bcci was the bank of credit and commerce international, a dirty offshore bank that thenpresident ronald reagans central intelligence agency used to run guns to hussein, finance osama bin laden, move money in the illegal irancontra operation and carry out other agency black ops.
Incensed diplomats from 33 countries met last thursday at a european embassy here to coordinate strategy after a protest they filed with the central bank of korea went unheeded, diplomats said. Case study 1 bank of credit and commerce international bcci this case gives brief information about the massive money laundering and. Sarcastically, as the exposure of the cia, drug cartels, manuel noriega and a host of others in. Bank of credit and commerce international former type private industry banking fate liquidation forced closure founded 1972 founder agha hasan abedi defunct 1991 headquarters london incorporated in luxembourg number of employees approx. List of presidents of the board of control for cricket in india. Never has a single scandal involved so much money, so many nations or so many prominent people. It was the largest financial fraud in the world to that date. Bush administration did what it could to sit on it. The bank of credit and commerce international was the brainchild of pakistani businessman agha hasan abedi, who envisioned a bank focused. Nazir chinoy, the bank of credit and commerce internationals highestranking officer to be indicted, pleaded guilty to three counts of. It ranged from arms trafficking to prostitution and ended. The outlaw bank goes straight to the corrupt heart of the most spectacular financial scandal in history. In the entire bcci affair, perhaps no entity is more mysterious and yet more central to bccis collapse and criminality than capcom, a london and chicago based commodities futures firm which. Bbc news business britains biggest banking scandal.
Bcci s unique criminal structure an elaborate corporate spiderweb with bcci s founder, agha hasan abedi and his assistant, swaleh naqvi, in the middle was an essential component of its spectacular growth, and a guarantee of its eventual collapse. Full service bank how bcci stole billions around the. Bcci was known as the bank of crooks and criminals international since it was heavily involved in laundering drug money. The bank of credit and commerce international bcci was a major international bank founded in 1972 by agha hasan abedi, a pakistani 1financier. Jun 22, 2011 bcci banking scandal one of the more mysterious aspects of the inslaw murders was the cias involvement in the bcci banking scandal. The bank of credit and commerce international scandal.
Abbas gokal, chairman of the nowdefunct gulf group, is facing 17. Bccis unique criminal structure an elaborate corporate spiderweb with bccis founder, agha hasan abedi and his assistant, swaleh naqvi, in the middle was an essential component of its spectacular growth, and a guarantee of its. Finally, senator garn author of the garnst germain deregulation act, on may 9 introduced the feds bcci bill into congress. The early years the bank was established in 1972 by agha hassan abedi, a pakistani banker who envisaged a bank focused on the third world, and was incorporated in luxembourg, with headquarters in london. Bcci bank fraud investigation cia knowledge youtube. Mahfouzs name was linked to the scandal involving the bank of credit and commerce international bcci, in which he held a 20% interest between 19861990.
No and all the presidents men, the outlaw bank tells the story of the collapse of the bcci in a unique, revealing and unforgettable way. But evidence about bcci s broader links exist in numerous u. Introduction bankf o credit and commerce international bcci is one of the best examples of the practical difficulties that an international bank can pose to supervisors in terms of its cross. Full service bank how bcci stole billions around the world. British authorities and banking sources say that bcci often failed to obtain the required documentation for major loans. Only glaring evidence of fraud, persuaded the bank of england to close down bcci, audited by price waterhouse now part of pricewaterhousecoopers, on 5th july 1991. The abu dhabi government tried to rescue the bank with a. Remembering pakistans biggest and baddest fraud scandal. Nazir chinoy, the bank of credit and commerce internationals highestranking officer to be. In reference to the opinion article by michael kugleman published on may 17 under the title. The case involved the bank of credit and commerce international, or bcci, and it has made for very interesting reading. Bankf o credit and commerce international bcci is one of the best examples of the practical difficulties that an international bank can pose to supervisors in terms of its crossborder supervision and resolution when adequate supervisory policies have not been effectively defined and implemented in advance. Over the years influential politicians, royalty and businessmen have.
The next step officials and bankers following the evolving bcci scandal now say the bank of england, other regulators responsible for banking fraud in the united states and elsewhere and sheik. But evidence about bccis broader links exist in numerous u. Title of the paper corruption in international banking and financial systems b. Bcci in early 2001, anonymous us officials will say that when the notorious bank of credit and commerce international bcci is shut down in july 1991 see july 5, 1991, osama bin laden suffers a heavy blow because he has put much of his money in the bank and he loses everything he invested there. Aug 19, 2016 the case involved the bank of credit and commerce international, or bcci, and it has made for very interesting reading. The next step officials and bankers following the evolving bcci scandal now say the bank of england, other regulators responsible for banking fraud in. Bccis criminal operations and its official and unofficial links to u. With the verdict, the morality play starring two power brokers, one. Sep 29, 2015 witnesses testified on whether the cia knew of bccis illicit control of several small u. The bank of credit and commerce international, bcci was a financial organisation which was protected and used by the cia. Though the post is an honorary one, it is considered a highly prestigious post due popularity of the game in the india and the financial clout of the organisation.
Jan, 2004 britains biggest banking scandal bbc news online explains the background to the bcci banking scandal, which has led to the bank of england being sued by creditors for. The bcci has appealed the ruling of the bombay high court which declared the appointment of the independent probe panel illegal and. In july 1991, assets of the bank of credit and commerce international bcci were seized by regulators in seven countries. When the bcci scandal began to break in the late 1980s, the sr. Britains biggest banking scandal bbc news online explains the background to the bcci banking scandal, which has led to the bank of england being sued by creditors for. Files close on bcci banking scandal business the guardian. Bank of credit and commerce international wikispooks. I dont want to focus on pakistans nuclear industry.
Jul 30, 1992 beyond the scandal he is charged with fraud, accused of acting as one of the front men on behalf of b. May 29, 2015 dear editor, in reference to the opinion article by michael kugleman published on may 17 under the title. For a taste of the scope of the thing, it involved clark clifford, one of the great washington fixers of all time, plus abu nidal, the palestinian terrorist, and sheik zayed bin sultan al nahayan, the guy who brought you the uae and a couple of billions dollars in lost. Beyond the scandal he is charged with fraud, accused of acting as one of the front men on behalf of b. Questions linger about bushes and bcci bank common dreams news. Bcci banking scandal one of the more mysterious aspects of the inslaw murders was the cias involvement in the bcci banking scandal. Bccis unique criminal structure an elaborate corporate spiderweb with bccis founder, agha hasan abedi and his assistant, swaleh naqvi, in the middle was an essential component of its spectacular growth, and a guarantee of its eventual collapse.
Hank brown, reportedly acting at the behest of henry kissinger, pressed for the deletion of a few passages, particularly in chapter 20 on bcci and kissinger associates. Likewise, bcci was the central bank for the british and american arms flows to the afghan mujahideen. Kevin ryan summarised it as a cialinked terrorist financing network. Bcci had made bad loans to prominent business people in the middle east. Peter dale scott wrote in the american deep state that it is clear that throughout the 1980s the american deep state in washington was involved with bcci and protected it. Apr 24, 2015 accessibility books library allowing access to top content, including thousands of title from favorite author, plus the ability to read or download a huge selection of books for your pc or smartphone within minutesaccess website over for all ebooks.
International bank closed in fraud scandal bbc news. Pdf banking fraud by the bank of credit and commerce. Bcci s unique criminal structure an elaborate corporate spiderweb with bcci s founder, agha hasan abedi and his assistant, swaleh naqvi, in the middle was an essential comp. The other bcci riwv scandal the prosecutors, the pack and the altman acquittal by terence moran r he thunderous acquittal of robert alt man by a new york jury on aug. The bank of credit and commerce international bcci was an international bank founded in 1972 by agha hasan abedi, a pakistani financier.