BCCI

About BCCI

The Bank of Credit and Commerce International was shut down by regulators in seven countries on July 5, 1991. BCCI had 20 billion in assets and operated in 70 countries. The bank was secretly controlled by Pakistani financier Agha Hasan Abedi. BCCI engaged in money laundering for dictators, drug cartels, and terrorists. The CIA used BCCI for covert operations. The bank falsified its accounts and had no effective external audit. Price Waterhouse, the auditor, eventually reported the fraud to the Bank of England. Liquidators spent over 15 years recovering assets. Creditors received approximately 70 cents on the dollar after years of litigation. The BCCI scandal led to stricter international bank regulation and supervision. The case demonstrated the risks of banks operating across multiple jurisdictions with inadequate oversight.