Preview

Bank of Credit and Commerce International

Better Essays
Open Document
Open Document
4297 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Bank of Credit and Commerce International
-------------------------------------------------
Bank of Credit and Commerce International
From Wikipedia, the free encyclopedia Bank of Credit and Commerce International | | Industry | Banking | Fate | Liquidation / Forced closure | Defunct | 1991 | Headquarters | London (incorporated inLuxembourg) | Key people | Agha Hasan Abedi (Founder) | Employees | approx. 30,000 |
The Bank of Credit and Commerce International (BCCI) was a major international bank founded in 1972 by Agha Hasan Abedi, a Pakistani financier.[1] The Bank was registered in Luxembourg with head offices in Karachi and London. Within a decade BCCI touched its peak. It operated in 78 countries, had over 400 branches, and had assets in excess of US$20 billion, making it the 7th largest private bank in the world by assets.[2][3]
BCCI came under the scrutiny of numerous financial regulators and intelligence agencies in the 1980s due to concerns that it was poorly regulated. Subsequent investigations revealed that it was involved in massive money laundering and other financial crimes, and illegally gained controlling interest in a major American bank. BCCI became the focus of a massive regulatory battle in 1991 and on 5 July of that year customs and bank regulators in seven countries raided and locked down records of its branch offices.[4]
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. Its affairs were extraordinarily complex. Its officers were sophisticated international bankers whose apparent objective was to keep their affairs secret, to commit fraud on a massive scale, and to avoid detection."
The liquidators, Deloitte & Touche, filed a lawsuit against Price Waterhouse and Ernst & Young – the bank's auditors – which was settled for $175 million in 1998. A further lawsuit against UAE President Zayed II, a major shareholder, was launched

You May Also Find These Documents Helpful

  • Best Essays

    Countrywide Financial

    • 3004 Words
    • 13 Pages

    Countrywide Financial was a mortgage-banking firm. They had one of the largest market shares in the early 2000s, when the mortgage market was booming. “No company pursued growth in home loans more aggressively than Countrywide” (NY Times 12/10). They were the leader of their industry, with 500 billion in home loans, 62,000 employees, 900 offices, and $200 billion in assets. Everything had been going well for the company and its employees, until the mortgage crisis began to unfold at the end of 2006. In June 2009, the SEC filed a civil suit against the founder of the business and some of his top management for fraud and insider trading. This came at the height of the mortgage crisis in the US. The founder of Countrywide, Angelo Mozilo, finally agreed to pay $45million in profits and $22.5 million in civil penalties, in which he still admits no wrongdoing.…

    • 3004 Words
    • 13 Pages
    Best Essays
  • Powerful Essays

    Great Western Bank

    • 1827 Words
    • 8 Pages

    The Great Western Bank of San Diego placed an order of 12 special purpose accounting machines with the Data Max Corporation of Cincinnati, OH. Great Western Bank and Data Max, both agreed to a firm-fixed price of $9,500 per unit and FOB the shipping point. The purchasing manager of the bank designated a particular carrier (yellow freight) and Data Max returned the signed acknowledgement without making any changes to the terms and conditions.…

    • 1827 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    Bank Of America

    • 505 Words
    • 3 Pages

    1. What are the core business processes1 (high level; major business and financial services) performed at Bank of America as part of its product and service offerings?…

    • 505 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Commerce Bank

    • 2077 Words
    • 9 Pages

    I certify that I am the author of this paper and that any assistance I received in its preparation is fully acknowledge and disclosed in the paper. I have also cited any sources from which I used data, ideas of words, whether quoted directly or paraphrased. I also certify that this paper was prepared by me specifically for this course.…

    • 2077 Words
    • 9 Pages
    Powerful Essays
  • Better Essays

    Check cashing companies are often in lower income sections and charge large fees for their services that a bank would not charge (5% and 3%). The question of the legitimacy of their broker status immediately rises when they do business in one of these establishments; their only benefit is anonymity in the transaction. This should have tipped off the managers of ACC that authorized the cashing of these checks. In either case ACC should have checked with the maker and the maker’s bank to determine the validity of the checks. ACC was in a real position to stop the fraud and failed to do so.…

    • 1171 Words
    • 5 Pages
    Better Essays
  • Better Essays

    Commonwealth Bank

    • 2844 Words
    • 12 Pages

    Commonwealth Bank of Australia (CBA) is Australia 's largest retail bank and one of the 'Big Four ' bank. It was established in the early 19th century as a private corporation and a partnership. It also operates in New Zealand and Asia country such as Japan, Singapore, Hong Kong and Malaysia. The Commonwealth Bank of Australia (CBA) supports sector with their following industries such as banking, financial and investment service. The purpose is to promote the settlement and development of the local areas and savings. Its core business is to provide retail and institutional banking business. There is also a fund manager and a major share of the market in general and life insurance (About us, 2008).…

    • 2844 Words
    • 12 Pages
    Better Essays
  • Good Essays

    Fraud

    • 1250 Words
    • 5 Pages

    BEN HILL is at the top of the suspect list for a reason, he has his hands on almost all of the money passing through the TBC Organization. He was observed to be obsessing over regular tasks and duties during the audit. Almost every duty that involved handling cash was overseen by Hill. There are very little controls on cash, as Ben carries the cash between concessions, collects cash from all sales, and is solely responsible for depositing cash from promotional sales. The only control over the cash right now is double counting once the money has arrived and is all gathered up at the end of each night. He also has an overall opinion of being the secret to the team’s success; he was heard stating that if he was out of the picture, the team would fail.…

    • 1250 Words
    • 5 Pages
    Good Essays
  • Good Essays

    A lack of independent members of the board of directors, which consisted of DB's friends and neighbour, contributed to the fraud. There was no real oversight by the board of directors. DB had full control over them. The directors allowed DB to manipulate financial figures, to conceal transactions with related parties (Tactical Armor Products - "TAP") and mislead the public.…

    • 980 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    5550 Recap 2

    • 971 Words
    • 4 Pages

    The BCBS was born of crisis, the one triggered in 1974 by the failure of the Herstatt Bank. That crisis illustrated the interconnectedness of banks, and regulators saw that it was in their best interests to make a global effort to enact “standards governing … international banks”. [What happened when the Herstatt Bank failed?]…

    • 971 Words
    • 4 Pages
    Powerful Essays
  • Powerful Essays

    Enron Bcci Case

    • 3009 Words
    • 13 Pages

    2. Price Waterhouse had been doing its job, there's no way that this $1 billion exposure [in BCCI's Central Treasury] which was taken to $11 billion exposure in the course of 3 or 4 months [in 1985] could have happened.…

    • 3009 Words
    • 13 Pages
    Powerful Essays
  • Good Essays

    Bcci Case Study for Auditing

    • 5644 Words
    • 23 Pages

    In July 1991, the largest scandal in the financial history exploded when the branch offices of the Bank of Credit and Commerce (BCCI) has been seized by regulators in seven countries. The closure of the bank is mainly due to massive fraud and corruption that happened at the heart of the bank. BCCI also involved in other illegal activities such as money laundering, dubious lending, fraudulent record-keeping and support in terrorism. The BCCI was a supranational bank founded in London in 1972 by a Pakistani financier, Agha Hasan Abedi. Overall, BCCI was expanded from 19 branches in five countries in 1973 to 108 branches in 78 countries in 1976 with excess assets of around US$20 billions at its peak.…

    • 5644 Words
    • 23 Pages
    Good Essays
  • Good Essays

    Bcci

    • 4131 Words
    • 17 Pages

    Nothing in the history of modern financial scandals rivals the unfolding saga of the Bank of Credit & Commerce International (B.C.C.I.), the $20 billion rogue empire that regulators in 62 countries shut down early this month (July 1991) in a stunning global sweep. Never has a single scandal involved so much money, so many nations or so many prominent people.…

    • 4131 Words
    • 17 Pages
    Good Essays
  • Good Essays

    The Bofors Scandal

    • 712 Words
    • 3 Pages

    Meanwhile February 5, 2004 the Delhi High Court quashed the charges of bribery against Rajiv Gandhi and others,[5] but the case is still being tried on charges of cheating, causing wrongful loss to the Government, etc. On May 31, 2005, the High court of Delhi dismissed the Bofors case allegations against the British…

    • 712 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Ipl and Business

    • 1304 Words
    • 6 Pages

    The Indian Premier League was initiated by the Board of Control for Cricket in India (BCCI) and has been an enormous success. The annual tournament, played in the months of April and May has gone from strength to strength and is largely viewed as being the 'riches,…

    • 1304 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    Ipl Scandals

    • 1336 Words
    • 6 Pages

    The Board of Control for Cricket in India (BCCI) has found itself in the middle of many conflicts with various cricket boards around the world as a result of the Indian Premier League (IPL). The main point of contention was that signed players should always be available to their country for international tours, even if it overlaps with the IPL season. To address this, the BCCI officially requested that the International Cricket Council (ICC) to institute a time period in the International Future Tours Program, solely for the IPL season. This request was not granted at a subsequent meeting held by the ICC.[1]…

    • 1336 Words
    • 6 Pages
    Good Essays