BCCI

A Case Study on

Bank of Credit and Commerce

International
Presented by
MD. Faysal 18202020
Asaduzzaman 18202019
Md. Nazmus Sakib 17102003
 Summery
➢ An international bank formed by Agha Hasan Abedi in 1972

➢ The headquarters of BCCI in Luxembourg

➢ BCCI was a large international bank, with branches in over 70 countries

around the world.

➢ To support the poor, particularly in developing countries Abedi created the

Agha Hasan Abedi Bank

➢ Complex Structure

➢ Price Waterhouse became the sole accounts of BCCI

Presented by Ever Green
 Summery
➢ Major customer of BCCI: Gulf Group

➢ Irregularities: Prepared false documentation and report

➢ Bank was involved in: Money laundering, drug-trafficking

➢ BCCI was effectively shut down by the Bank of England on 5 July 1991
Agha Hasan Abedi

➢ Suffered: A large number of

individuals, employees, companies, local authorities, sovereign governments
Presented by Ever Green
 Should the Bank of England have acted more
promptly to shut down BCCI’s operations?

❏ Gulf Group had been facing difficulties and they were unable to repay its loan

❏ A clear warning was served to the Bank of England by reporting about the issue of money
laundering by the drug dealers.

❏ Reported by the Price Waterhouse that $1.8b were needed for BCCI’s financial support

Presented by Ever Green

 To what extent did the complex organizational structure of
BCCI assist Abedi and Naqvi in disguising the extent of the
fraud at BCCI?

Hide Information

To scape effective Supervision

Hide irregularities transaction

To hide fraudulent activities

Presented by Ever Green
 What do you believe are the main lessons that can be
drawn from the revelations of fraud at BCCI?

Lack of proper monitoring 01

Actively check all information 03 02 Fake Reporters

Central bank work should

04 proactively

Presented by Ever Green

 Identify the stakeholders in BCCI who suffered when the
bank was shut down in July 1991.

• Everyone suffered when the bank shut down in July 1991.

• 14000 employees, Many Branches in 70 countries over the world.

• Investors/Depositors are badly affected when the bank shut down in 1991.

• The government also affected for the bank's frauds activities.

Presented by Ever Green

 Should investors be concerned that a scandal
similar to BCCI could be repeated in the future?

• People should be concerned about their investment.

• They should have proper governance and accountability.

Presented by Ever Green

Thank You