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* BCCI ( 1991 ): A fraud investigation revealed that the bank laundered massive amounts of money for criminal enterprises and had unlawfully gained control of First American Bankshares, a major American bank.
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BCCI and 1991
BCCI became the focus of a massive regulatory battle in 1991 and on July 5 of that year customs and bank regulators in seven countries raided and locked down records of its branch offices.
On June 24, 1991, using the code name " Sandstorm " for BCCI, Price Waterhouse submitted the Sandstorm report showing that BCCI had engaged in " widespread fraud and manipulation " that made it difficult, if not impossible, to reconstruct BCCI's financial history.
On July 5, 1991, regulators persuaded a court in Luxembourg to order BCCI liquidated on the grounds that it was hopelessly insolvent.
On July 7, 1991, Hong Kong Office of the Commissioner of Banking ( forerunner of the Hong Kong Monetary Authority ) ordered BCCI to shut down its business in Hong Kong on the grounds that BCCI had problem loans and the Sheikh of Abu Dhabi, the major shareholder of BCCI, refused to provide funds to the Hong Kong BCCI.
Hong Kong BCCI was liquidated on July 17, 1991.
The report found that Clifford and his legal / business partner Robert A. Altman had been closely involved with the bank from 1978, when they were introduced to BCCI by Bert Lance, the former director of the Office of Management and Budget, to 1991.
In 1991, Clifford's memoirs Counsel to the President ( co-authored with Richard Holbrooke, later U. S. Ambassador to the United Nations ) were published just as his name was implicated in the unfolding Bank of Credit and Commerce International ( BCCI ) scandal.
In 1991, Robert M. Morgenthau, the District Attorney for New York County ( coterminous with the borough of Manhattan ), disclosed that his office had found evidence that BCCI secretly owned First American.
He was named chairman of the failing Bank of Credit and Commerce International ( BCCI ) in 1991.
BCCI and fraud
A few weeks after the seizure, on July 29, Manhattan District Attorney Robert Morgenthau announced that a Manhattan grand jury had indicted BCCI, Abedi and Naqvi on twelve counts of fraud, money laundering and larceny.
He described BCCI as " the largest bank fraud in world financial history.
BCCI and investigation
Bennett is also famous for representing Judith Miller in the Valerie Plame CIA leak grand jury investigation case, Caspar Weinberger, the U. S. Secretary of Defense, during the Iran-Contra scandal of the 1980s, Clark Clifford in the Bank of Credit and Commerce International ( BCCI ) scandal, and Paul Wolfowitz in the World Bank Scandal.
BCCI and revealed
Investigators in the U. S. and the UK revealed that BCCI had been " set up deliberately to avoid centralized regulatory review, and operated extensively in bank secrecy jurisdictions.
In 1990, a Price Waterhouse audit of BCCI revealed an unaccountable loss of hundreds of millions of dollars.
An audit by Price Waterhouse revealed that contrary to agreements between First American's nominal investors and the Federal Reserve, many of the investors had borrowed heavily from BCCI.
In 1990, an audit of the BCCI by Price Waterhouse revealed an unaccountable loss of hundreds of millions of dollars.
BCCI and bank
The Bank of Credit and Commerce International ( BCCI ) was a major international bank founded in 1972 by Agha Hasan Abedi, a Pakistani financier.
The company itself divided into BCCI Holdings with the bank under that splitting into BCCI SA ( Luxembourg ) and BCCI Overseas ( Grand Cayman ).
On several occasions, the Office of the Comptroller of the Currency told the Federal Reserve in no uncertain terms that BCCI must not be allowed to buy any American bank because it was poorly regulated.
In 1982, 15 Middle Eastern investors bought Financial General Bankshares, a large bank holding company headquartered in Washington, D. C. All the investors were BCCI clients, but the Fed received assurances that BCCI would be in no way involved in the management of the company, which was renamed First American Bankshares.
Abedi had been approached about buying it as early as 1977, but by this time BCCI's reputation in the United States was so poor that it could not hope to buy an American bank on its own ( as mentioned above, the OCC was adamantly opposed to BCCI being allowed to buy its way into the American banking industry ).
In October 1985, the Bank of England and the Institut Monétaire Luxembourgeois ( Luxembourg's bank regulator ) ordered BCCI to change to a single accountant, alarmed at reported BCCI losses on the commodities and financial markets.
BCCI contended that its growth was fueled by the increasingly large number of deposits by oil-rich states who owned stock in the bank as well as by sovereign developing nations.
BCCI ’ s demise began in 1986, when a US Customs undercover operation led by Special Agent Robert Mazur infiltrated the bank ’ s private client division and uncovered their active role soliciting deposits from drug traffickers and money launderers.
In 2002, Denis Robert and Ernest Backes, former number three of Clearstream, described as a " bank of banks " which practices " financial clearing ", discovered that BCCI had continued to maintain its activities after its official closure, with " microfiches " of Clearstream's illegal unpublished accounts.
Morgenthau, who had been investigating BCCI for over two years, claimed jurisdiction because millions of dollars laundered by the bank flowed through Manhattan.
On November 15, BCCI, Abedi and Naqvi were indicted on federal charges that it had illegally bought control of another American bank, Independence Bank of Los Angeles, using Saudi businessman Ghaith Pharaon as the puppet owner.
Following the report, the bank's liquidators launched the Three Rivers DC v Bank of England case, on behalf of thousands of BCCI creditors who are suing the Bank of England for its failure to properly oversee the bank.
Clifford's predicament worsened when it was disclosed he had made about $ 6 million in profits from bank stock that he had bought with an unsecured loan from BCCI.
In 1972, Agha Hasan Abedi, a Pakistani banker who had set up a new bank called Bank of Credit and Commerce International ( BCCI ), approached Zayed for investment.
BCCI and money
One of the large financial institutions that he was able to use to launder money was the Bank of Credit and Commerce International ( BCCI ) which was shut down at the end of the Cold War by the FBI.
When the Fed cleared the group of Arab investors to buy First American, it did so on condition that they supplement their personal funds with money borrowed from banks with no connection to BCCI.
The US intelligence agencies used BCCI to funnel drug money to Afghan Mujahideen in their fight against Soviet invasion and to insurgents such as Nicaraguan Contras.
On 26 June 2012 Greig delivered the MCC Spirit of Cricket Cowdrey Lecture and slammed BCCI for misuse of powers and money and continuously rejecting the ICC's call for universal DRS.
BCCI and for
* Indian Cricket League-A Twenty20 league bankrolled by billionaire Subhash Chandra and run independently of the country's governing body, the Board of Control for Cricket in India ( BCCI ).
BCCI had an unusual annual auditing system: Price Waterhouse were the accountants for BCCI Overseas, while Ernst & Young audited BCCI and BCCI Holdings ( London and Luxembourg ).
At the same time he was dealing undercover with BCCI executives, Mazur used his undercover operation to establish a relationship with the hierarchy of the Medellin Cartel as one of their sources for laundering drug proceeds.
BCCI also established the Infaq Foundation in Pakistan, which was instrumental in funding the establishment of some of the top universities of the region, such as BCCI FAST ( Institute of Computer Sciences ) and GIK ( Institute of Science, Engineering, & Technology ), in addition to regular support for many other educational institutions.
The Abu Nidal link man for the BCCI accounts was a man based in Iraq named Samir Najmeddin or Najmedeen.
Throughout the 80s, BCCI had set up millions of dollars worth of letters of credit for Najmeddin, largely for arms deals with Iraq.
BCCI was awaiting final approval for a restructuring plan in which it would have re-emerged as the " Oasis Bank ".
He was under indictment in the United States and UK for crimes related to BCCI, but Pakistani officials refused to give him up for extradition because they felt the charges were politically motivated.
There had long been suspicions that First American's investors were actually nominees for BCCI.
Azhar admitted to fixing three ODI matches, and this led the BCCI to ban him from the game for life in 2000.
Zayed fronted the majority of the investment for the BCCI.
On November 29, 2005, he was elected President of Board of Control for Cricket in India ( BCCI ).
Governed by the Board of Control for Cricket in India ( BCCI ), it is a full member of the International Cricket Council ( ICC ) with Test and One Day International ( ODI ) status.
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