Bank of Crooks and Criminals International
Bank of Credit and Commerce International (BCCI), also known as the “Bank of Crooks and Criminals International,” was the epicenter of one of the most complex banking scandals in history.
Banks fail in the vast majority of cases because their managements seek growth at all costs, reach for profits without due regard to risk, give privileged treatment to insiders, or gamble on the future course of interest rates. Some simply have dishonest management that loots the bank.
Irvine Sprague
Executive Summary
The Bank of Credit and Commerce International (BCCI) banking scandal was one of history’s most complex financial scandals. The bank, founded in 1972, had become one of the world’s largest and most powerful financial institutions, with branches in over 70 countries and assets estimated at around $20 billion.
BCCI Overview
BCCI was also known as the “Bank of Crooks and Criminals International.” The scandal was first uncovered in the late 1980s and led to the eventual collapse of the bank in 1991.
BCCI was founded in 1972 by Agha Hasan Abedi, a Pakistani banker. By the late 1970s, the bank increased and became one of the world’s largest and most powerful financial institutions. It had branches in over 70 countries and assets estimated at around $20 billion. However, in the late 1980s and early 1990s, investigations revealed that BCCI was involved in various illegal activities, including money laundering, fraud, and drug trafficking. It was also discovered that the bank had been used to finance terrorism, arms trafficking, and other criminal activities.
One of the critical issues with BCCI was that it was poorly regulated and had a complex ownership structure that made it difficult to determine who was indeed in control of the bank. It was found that a web of shell companies and offshore holding companies owned the bank. That made it nearly impossible to trace the money flow and identify the owners.
The BCCI scandal also had political implications. It was revealed that the bank had close ties to various governments and political figures worldwide. It funded political campaigns and bribed government officials. The scandal led to several high-profile criminal trials. Several individuals were convicted of various charges related to the bank’s illegal activities. The major players included:
Agha Hasan Abedi: Founder and President of BCCI. Abedi was a Pakistani national and a former official of the National Bank of Pakistan. He was known for his secretive and corrupt business practices and was eventually charged with fraud and other illegal activities concerning the BCCI scandal.
Nick Leeson: Trader at the Singapore branch of BCCI who was responsible for the collapse of Barings Bank. He was sentenced to six and a half years in prison for his role in the failure.
Swaleh Naqvi: Managing Director of BCCI. Naqvi was a Pakistani national and a former official of the National Bank of Pakistan. He was also charged with fraud and other illegal activities concerning the BCCI scandal.
Ghaith Pharaon: Saudi businessman who was a significant shareholder of BCCI. Pharaon was charged with fraud and other illegal activities concerning the BCCI scandal but was able to flee the U.S. before he could be arrested.
A number of notable people from the United States were involved or connected to the BCCI scandal. Here is a small sampling:
Robert A. Altman: Altman was a lawyer and business executive who was the chairman of First American Bankshares, a U.S. bank secretly controlled by BCCI. Altman was accused of concealing BCCI’s ownership of First American Bankshares and helping BCCI engage in illegal activities. He was charged with fraud and other illegal activities concerning the BCCI scandal but was ultimately acquitted.
Amjad Awan: Awan was a Pakistani-American and a key figure in BCCI’s operations in the United States. He worked closely with BCCI and was involved in various fraudulent activities, including money laundering and bribery. Awan was also linked to the bank’s involvement in illegal arms trafficking.
Clark Clifford: Clifford was a prominent American lawyer and political figure who advised several U.S. presidents. He was also a key figure in the BCCI scandal. Clifford had a close relationship with BCCI and served as an attorney for the bank. He was accused of using his influence to help BCCI gain access to influential American political figures.
Bert Lance: Besides its association with Bank of America, BCCI made significant inroads into the US financial system through its connections with Bert Lance, a well-known Atlanta banker and a trusted ally of Jimmy Carter. Lance was an advisor during Carter’s presidential campaign in 1976 and was subsequently appointed as the Office of Management and Budget (OMB) director. However, Lance’s tenure in this position was short-lived as he was compelled to resign amidst a cloud of scandal.
Marc Rich: Rich was a prominent American commodities trader with connections with the bank. Rich was indicted in the United States for tax evasion and illegal trading activities. He used BCCI to help conceal his financial transactions.
The Oliver North Connection
Oliver North, a prominent figure in the United States during the 1980s, also had a connection to the BCCI scandal. He was a Marine Corps Lieutenant Colonel and a key figure in the Reagan administration’s covert operations, particularly the Iran-Contra affair. The Iran-Contra scandal involved the secret sale of weapons to Iran and the diversion of funds to support the Contras, a rebel group in Nicaragua, despite a congressional ban on such activities.1
During the investigations into the Iran-Contra affair, it was revealed that North had used BCCI as a conduit for several financial transactions related to arms sales and the funding of the Contras. BCCI acted as a facilitator, helping North and others involved in the scandal to move money discreetly and bypass regulations and scrutiny.
North’s connection to BCCI added another layer of complexity to the scandal. The bank was already under investigation for a wide range of illegal activities, including money laundering, fraud, and providing financial services to dictators, terrorists, and criminal organizations. While North’s involvement with BCCI further exposed the extent of the bank’s illicit activities, it’s important to note that he was not the central figure in the scandal. Instead, he exploited BCCI’s services for their purposes, taking advantage of the bank’s global reach and lack of oversight.
Mysterious and Unexplained
The BCCI scandal also led to significant changes in the banking industry, with many countries tightening bank regulations and increasing oversight to prevent similar scandals. Several deaths were associated with the BCCI scandal, some mysterious or unexplained. The more notable cases include:
Alfred Hartmann: A Swiss lawyer, Alfred Hartman was crucial in BCCI’s European operations. He was found dead in his Geneva apartment in 1991. His death was ruled a suicide, but some believe he was murdered.
Robert Maxwell: British media mogul Robert Maxwell, a significant shareholder in BCCI, was arrested on embezzlement charges in 1991. Maxwell died in mysterious circumstances in 1991 when he fell off his yacht in the Atlantic Ocean. Some have suggested that Maxwell’s death may have been a suicide. Still, others believe it may have been a murder to prevent him from revealing information about the bank’s illegal activities. Of note, Robert Maxwell is the father of the notorious Ghislaine Maxwell.
Ghaith Pharaon: Saudi businessman and significant shareholder in BCCI Ghaith Pharaon faced arrest in 1991 on bank fraud charges. Pharaon was released on bail but died in a London hotel room in 1992. Some have suggested that Pharaon’s death may have been a suicide. Still, others believe that it may have been a murder carried out to prevent him from revealing information about the bank’s illegal activities.
As expected from the “system,” these deaths haven’t been officially linked to the BCCI scandal. However, the mysterious circumstances surrounding their deaths and involvement in the BCCI case led to conspiracy theories. Speculation remains that they were murdered to prevent them from revealing information about the scandal. While not seen as a mysterious death, the former director of BCCI and a former head of Saudi intelligence, Kamal Adham, died in 1999. Adham died of natural causes, but his death was a significant loss for the long and ongoing investigation as he had been a critical figure in the BCCI’s activities.
Laundering Machine
It is alleged that BCCI was used to launder the proceeds of drug trafficking by various criminal organizations, including the Medellin Cartel in Colombia and the Cali Cartel. The bank was also used to transfer funds to multiple organizations and individuals involved in drug trafficking, including members of the Afghan Mujahideen, who were known to be heavily involved in the opium trade.
The bank’s involvement in drug trafficking was not only limited to money laundering but also provided material support to drug traffickers. For example, it is alleged that BCCI helped to provide weapons and other supplies to the Medellin Cartel.
It is also alleged that BCCI was used to launder the proceeds of arms trafficking by various organizations and individuals. The bank was also used to transfer funds to multiple organizations and individuals involved in the illegal arms trade, including members of the Afghan Mujahideen during the Soviet-Afghan war. It is also alleged that the bank was involved in the illicit arms trade in the Middle East and other regions.
The bank’s arms-related activities were eventually exposed by a 1991 U.S. Senate Foreign Relations Committee investigation led by Senator John Kerry, which revealed that the bank had laundered billions of dollars in arms-related money and had provided material support to arms traffickers. The following snippet from The Octopus: Secret Government and the Death of Danny Casolaro sheds some light on Kerry:
So can we have confidence in Kerry’s committee? You can judge for yourself. Kerry is, along with President Bush, a member of the Skull & Bones Society at Yale University... Kerry is also chairman of the Democratic Senatorial Campaign Committee, which has received campaign contributions from BCCI. Kerry himself received a $5,000 contribution from BCCI officials.2
The U.S. Senate Foreign Relations Committee investigation also revealed that the bank had laundered billions of dollars in arms-related money and had provided material support to arms traffickers. It is also reported that the bank was involved in the illegal arms trade with countries facing embargoes and sanctions.
BCCI was involved in the illegal arms trade with countries facing embargoes and sanctions, such as Iraq, Iran, and Libya. The bank bypassed international sanctions and regulations by using its global branches and subsidiaries to transfer money and arms to these countries.
In the context of the Iran-Contra scandal, BCCI played a role in facilitating the covert arms sales to Iran. The Reagan administration, seeking to secure the release of American hostages held in Lebanon and to fund the Contras, authorized the sale of arms to Iran despite an arms embargo. BCCI was utilized as one of the financial intermediaries in these transactions.
BCCI helped to move funds related to arms sales and acted as a conduit for payments from Iran. It was alleged that the U.S. government used BCCI to transfer funds to Iran and receive payments for the arms sold. BCCI’s complex network of offshore branches and secretive practices made it an attractive institution for illicit transactions.
Furthermore, BCCI was involved in money laundering schemes related to the proceeds from arms sales and other illegal activities. It was accused of helping to hide the origins of funds, making it difficult for authorities to trace the money and uncover the full extent of the scandal.
It is worth noting that the Iran-Contra scandal involved numerous individuals and entities, and BCCI was just one of the players facilitating the affair’s financial aspects. The scandal had far-reaching political and legal ramifications, leading to investigations, prosecutions, and political fallout within the United States. BCCI faced significant legal troubles and eventually collapsed in the early 1990s due to its involvement in various illegal activities, including its connection to the Iran-Contra scandal.
BCCI’s clientele included Manuel Noriega, Ferdinand Marcos, Saddam Hussein, and the Palestinian terrorist Abu Nidal. When BCCI faced financial collapse, investigators estimated that a staggering $10 billion or even more was unaccounted for from the bank’s funds. The guilty plea of BCCI and the imposition of a $550 million “corporate fine” seems like a misdirection to take the heat off the perpetrators.
Willaim Barr’s Prosecutions
William Barr served as the United States Attorney General under President George H.W. Bush and again under President Donald Trump. He was involved with prosecuting BCCI figures as the head of the Office of Legal Counsel at the Department of Justice (DOJ) in the early 1990s. In 1991, Barr was appointed by President George H.W. Bush as the U.S. Attorney General, and he quickly focused on the BCCI scandal. He oversaw the DOJ’s investigation into the bank’s illegal activities, which led to the indictment of several BCCI officials on charges of fraud, money laundering, and racketeering.
Barr also played a vital role in the coordination of the international effort to shut down BCCI, which was a global bank and had branches all over the world. He worked with law enforcement agencies from other countries to share information and coordinate their efforts to shut down the bank.
In 1992, Barr announced the guilty plea of BCCI and the imposition of a $550 million fine, one of the most significant fines ever imposed on a financial institution up to that point. He also announced the guilty pleas of several BCCI officials and the imposition of prison sentences. Barr’s involvement in the BCCI case was widely praised by law enforcement agencies, government officials, and the media for his efforts to shut down the bank and bring those responsible to justice.
Nevertheless, according to researchers, the US Justice Department acted to interfere in probes of bank illegalities, including blocking a deposition by a key witness. Manhattan District Attorney Robert Morgenthau stated, “We have had no cooperation from the Justice Department since we first asked for records in March 1990. They are impeding our investigation, and Justice Department representatives ask witnesses not to cooperate with us.”3
Conclusion
The BCCI bank was involved in many illegal activities, including money laundering, fraud, and drug trafficking. It was also used to finance terrorism, arms trafficking, and other criminal activities. The scandal had significant political implications and revealed that the bank had close ties to various governments and political figures worldwide. The BCCI scandal led to criminal trials and changes in the banking industry to prevent similar scandals.
Pleasant dreams.📕
Sources and Recommend Viewing/Reading
This essay scratched the surface. BCCI is just one tentacle of the “Octopus” reaching far and wide. Readers are encouraged to conduct their research using the following sources.
Videos
Documents
Banking scandals: the S&Ls and BCCI ~ by Robert Emmet Long ~ 132 pages ~ H. W. Wilson Company (publisher) ~ 1993
BCCI, The CIA and Foreign Intelligence ~ Newtotse
BCCI’S Criminality ~ Federation of American Scientists
Crossing the Rubicon: The Decline Of The American Empire At The End of the Age Of Oil ~ by Michael C. Ruppert, 696 pages, New Catalyst Books, September 2004
Defrauding America: Encyclopedia of Secret Operations by the CIA, DEA, and Other Covert Agencies ~ by Rodney Stich ~ 735 pages, Diablo Western Press ~ April 2001
Drugs, Money, and the Bank of Credit and Commerce International ~ United States District Court Middle District of Florida
One Nation Under Blackmail Volume 1 ~ by Whitney Webb, 544 pages, Trine Day, September 2022
Profile: Bank of Credit and Commerce International (BCCI) ~ Wayback Machine
Questions Linger About Bushes and BCCI Bank ~ Common Dreams, April 2007
REVIEW: The Betrayal: the true story of my brush with death in the world of narcos and launderers ~ Reuters
Seventy Greatest Conspiracies of All Time: History’s Biggest Mysteries, Coverups, and Cabals ~ by Jonathan Vankin, John Whalen ~ 528 pages ~ Citadel (publisher) ~ June 2000
The BCCI Affair ~ Federation of American Scientists
The BCCI Affair A Report to the Committee on Foreign Relations United States Senate ~ by Senator John Kerry and Senator Hank Brown December 1992
The Danny Casolaro Primer: 13 reasons to doubt the official narrative surrounding his death ~ Muckrock
The Octopus: Secret Government and the Death of Danny Casolaro ~ Kenn Thoma & Jim Keith (authors), 308 pages, Feral House (publisher), November 2003
Contra was the anti-communist group fighting against the Communist Sandinistas. While that may seem reasonable, it is essential to remember that two wrongs do not make a right. A plethora of bad occurred under this neo-con war-mongering machine under the auspices of fighting communism. Like other CIA “nation-building” exercises, many innocent people perished under this scheme. We have all heard the phrase, “It is necessary to crack an egg to make an omelet.” That is why so many nations worldwide despise the USA and that nasty nation-building complex his no party affiliation. We must mind our business, get our troops home, and defend our country. Where are the antiwar mouthpieces today? It seems we all are in for endless billions going out to the Blue over Yellow.
Sherman Skolnick “Bush-Suddam-BCCI Oil Kickback Scandal Can’t be Buried,” Spotlight, August 26, 1991, ~ quoted in The Octopus: Secret Government and the Death of Danny Casolaro
Ibid., Johanthin and Gwynne Beatty, “The Dirtiest Bank of All,” Time, July 29, 1991
BCCI and Oliver North was a template for understanding phenomena like Jeff Epstein. A criminal organization or concern (likely the old Robert Maxwell network, in Epstein's case) can be useful to IC/LE/USG ("he belongs to intelligence"). North saw a useful criminal bank, understood it was shady AF, and used it for that very reason. The line between organized crime and spy games has always been blurry.
A bank is like the sides of a river in hell, where terrorism, arms trafficking, and other criminal activities flow through it. A very dark and sinister thing sits upstream of that river. If only those horrid river banks would dry up.