BCCI

The Bank of Credit and Commerce International (BCCI) was an international bank founded in 1972 by Agha Hasan Abedi, a Pakistani financier, with backing from Sheikh Zayed bin Sultan Al Nahyan of Abu Dhabi and the Bank of America. Registered in Luxembourg, with head offices in Karachi and London, BCCI aimed to serve emerging markets as a major Muslim-led bank. It grew rapidly, expanding from 19 branches in five countries in 1973 to over 400 branches in 78 countries by the 1980s, with assets exceeding $20 billion, making it the seventh-largest private bank globally.

BCCI pursued aggressive growth, acquiring banks like Banque de Commerce et Placements (Geneva, 1976) and establishing entities such as KIFCO (Kuwait) and ICIC (Cayman Islands). It targeted high-net-worth individuals and large deposits, often bypassing profits for asset growth, which led to underlying capital issues.

In the 1980s, BCCI faced scrutiny for poor regulation. Investigations revealed extensive financial crimes, including money laundering for drug cartels (e.g., Pablo Escobar), terrorist financing (e.g., Abu Nidal group), and illicit arms deals, notably for Iraq. The bank also secretly controlled U.S. banks like First American Bancshares and engaged in bribery and fraud. On July 5, 1991, regulators in seven countries, led by the Bank of England, shut down BCCI during Operation C-Chase after the Sandstorm report by Price Waterhouse exposed “widespread fraud and manipulation.” The collapse, dubbed the “largest bank fraud in history,” caused significant losses for depositors and creditors. Liquidators Deloitte & Touche recovered about 75% of losses by 2013, settling lawsuits against auditors for $175 million (1998) and pursuing Abu Dhabi’s ruling family, BCCI’s largest shareholder.

CIA Connections

Allegations persist that the CIA used BCCI to finance covert operations, including support for Afghan Mujahideen, Iran-Contra deals, and arms sales to Iraq and Iran, leveraging its unregulated structure. Posts on X and some sources suggest BCCI was a CIA-created bank for money laundering, though declassified evidence is limited. These claims align with BCCI’s ties to figures like Manuel Noriega and Saddam Hussein, who used the bank for looted funds.