BCCI

SCANDAL
Presented by-
Nitish Singh- 500
Priyanshu Yadav- 541
Rupender Yadav- 568
 Topics to be
covered:
Introduction about BCCI
Description of the Scam
Reasons for failure of BCCI
Consequences of the Scam
Conclusion
 3.
Introduction about
BCCI
• BCCI was formed by Agha Hasan Abedi, a Pakistani
Financer in 1972.
• Bank was registered in Luxembourg and headquartered in
Karachi & London
• After a decade it became 7th largest bank with more than
400 branches in 78 countries.
• BCCI entered the African Market in 1979 and Asia in early
1980s
• BCCI was among the first Foreign Banks to operate in the
Chinese Special Economic Zone of Shenzhen.
 4.
Description of Scam

• BCCI Committed fraud by keeping separate book for a

‘Bank within bank’ to handle illegal transactions.
• They use clients accounts to hide their losses.
• Their books of accounts shows fictitious loans which
results in substantial fictitious profits.
• Shuffles money among different affiliates to disguise the
banks true financial positions.
 5.
Reasons for failure of BCCI

1) Absence of Central regulatory Bank:

2) Faulty lending Practice
3) Unethical Business Practices
4) Poor Auditing
5) Bank of England’s failure to make important information
public
6) The Sand Storm Report

Consequences of Scam
Financial Cost Human Cost
• Losses stemming were • Many individual victims
enormous. lost their lifetime
• Losses have been savings.
inflicted on nations • Hardest hit were to the
who were poorly member of certain
situated. immigrant
communities.
6.
Other Non-Financial
Cost
• The revelation of
widespread corruption
has led to a regrettable
loss of faith in
governments.
 7.
Conclusion

Actions to be taken for minimizing banking frauds-

• Should be proper regulation and supervision of
Banks & Financial institutions.
• Organisation should appoint proper Auditor
after checking its background.
• Banks & Financial Institutions should be ethical
and not associated with any criminal entities.
• Regularly supervise & monitor their Employees
THANK YOU