Money Laundering & Bank of Credit and Commerce International

The Bank of Credit and Commerce International (BCCI) was a large international bank that was founded in Pakistan in 1972. The BCCI operated in 78 countries, had over 400 branches, and its assets were about $25 billion.

The Bank of England closed the BCCI in London in 1991 because of the evidence on fraud and money laundering. The scandal began and soon more details were revealed to the public by the US and UK. The Bank of Credit and Commerce International appeared to be involved not only in money laundering, but also in support of terrorism, arms trafficking, tax evasion, bribery, the sale of nuclear technologies, illegal immigration, smuggling and the illicit purchases of banks and real estate. American and British investigators disclosed that the BCCI avoided centralized regulatory review and committed fraud on a grand scale, it had its own shipping and commodities trading companies, diplomatic corps and even intelligence network.

The liquidators, a BVI-based company Deloitte & Touche, filed a lawsuit against Price Waterhouse and Ernst & Young, the bank’s auditors. The further lawsuit followed in 1998. Of course, the lawsuit procedure related to this took quite a time and only last year trials ended.

The whole story is available at http://www.davidsirota.com/index.php/follow-the-money/, but here, in this blog, another thing is important. Just 2 decades ago the Bank of Credit and Commerce International was considered to be a reputable and respected financial titan, today it went down in the annals of history of anti-money laundering on a global – international – scale.

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