Replies

Indeed. For Lurkers, from the Downside Legacy:

Pakistani banker Agha Hasan Abedi founded BCCI in 1972, it was incorporated in Luxembourg and expanded rapidly. By the early 1980s BCCI had become the preferred bank for such customers as the CIA, Colombian drugs cartels, arms smugglers and various third world dictators. By the mid-eighties, there was gathering evidence of financial irregularities, corruption and criminal involvement - an investigation ensued.

In December 1992, shortly after Clinton was elected, the Committee on Foreign Relations - US Senate produced a report that pointed out specific problems in the investigation and gave 20 specific areas which needed additional investigation (summarized below) The disposition of these issues is unknown. All that has come to the attention of this list is one settlement for $5 million in February of 1998.

The extent of BCCI's involvement in Pakistan's nuclear program.

BCCI's manipulation of commodities and securities markets in Europe and Canada.

BCCI's activitites in India, including its relationship with the business empire of the Hinduja family.

BCCI's relationships with convicted Iraqi arms dealer Sarkis Soghanalian, Syrian drug trafficker, terrorist, and arms trafficker Monzer Al-Kassar, and other major arms dealers.

The use of BCCI by central figures in arms sales to Iran during the 1980's

BCCI's activities with the Central Bank of Syria and with the Foreign Trade Mission of the Soviet Union in London.

BCCI's involvement with foreign intelligence agencies

The financial dealings of BCCI directors with Charles Keating and several Keating affiliates and front-companies, including the possibility that BCCI related entities may have laundered funds for Keating to move them outside the United States.

BCCI's financing of commodities and other business dealings of international criminal financier Marc Rich.

The nature, extent and meaning of the ownership of shares of other U.S. financial institutions by Middle Eastern political figures

The nature, extent, and meaning of real estate and financial investments in the United States by major shareholders of BCCI. BCCI's shareholders and front-men have made substantial investments in real estate throughout the United States, owning major office buildings in such key cities as New York and Washington, D.C.

BCCI's collusion in Savings & Loan fraud in the U.S. The Subcommittee found ties between BCCI and two failed Savings and Loan institutions, CenTrust, which BCCI came to have a controlling interest in, and Caprock Savings and Loan in Texas, and as noted above, the involvement of BCCI figures with Charles Keating and his business empire. In each case, BCCI's involvement cost the U. S. taxpayers money. A comprehensive review of BCCI's account holders in the U.S. and globally might well reveal additional such cases. In addition, the issue of whether David Paul and CenTrust's political relationships were used by Paul on behalf of BCCI merits further investigation

The sale of BCCI affiliate Banque de Commerce et de Placements (BCP) in Geneva, to the Cukorova Group of Turkey, which owned an entity involved in the BNL Iraqi arms sales, among others.

BCCI's role in China. As noted in the chapter on BCCI's activities in foreign countries, BCCI had extensive activity in China, and the Chinese government allegedly lost $500 million when BCCI closed, mostly from government accounts. While there have been allegations that bribes and pay-offs were involved, these allegations require further investigation and detail to determine what actually happened, and who was involved.

The relationship between Capcom and BCCI, between Capcom and the intelligence community, and between Capcom's shareholders and U.S. telecommunications industry figures.

The relationship of important BCCI figures and important intelligence figures to the collapse of the Hong Kong Deposit and Guaranty Bank and Tetra Finance (HK) in 1983. The circumstances surrounding the collapse of these two Hong Kong banks; the Hong Kong banks' practices of using nominees, front-companies, and back-to-back financial transactions; the Hong Banks' directors having included several important BCCI figures, including Ghanim Al Mazrui, and a close associate of then CIA director William Casey; all raise the question of whether there was a relationship between these two institutions and BCCI-Hong Kong, and whether the two Hong Kong institutions were used for domestic or foreign intelligence operations.

BCCI's activities in Atlanta and its acquisition of the National Bank of Georgia through First American.

The relationship between BCCI and the Banca Nazionale del Lavoro. BCCI and the Atlanta Branch of BNL had an extensive relationship in the United States, with the Atlanta Branch of BNL having a substantial number of accounts in BCCI's Miami offices. BNL was, according to federal indictments, a significant financial conduit for weapons to Iraq. BCCI also made loans to Iraq, although of a substantially smaller nature.

The alleged relationship between the late CIA director William Casey and BCCI.

Money laundering by other major international banks. Numerous BCCI officials told the Subcommittee that BCCI's money laundering was no different from activities they observed at other international banks, and provided the names of a number of prominent U.S. and European banks which they alleged engaged in money laundering.