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Bank of Credit and Commerce International’s Criminal Activity


This case provides adequate information on how BCCI bank was involved in a global financial crime of laundering billions of dollars globally. The case identifies the major continents affected by the criminal activities of the BCCI bank. These continents are America, Asia, Africa, and Europe (BCCI 1). Billions of dollars were involved in the criminal activities of the BCCI bank. The bank was able to carry out is criminal activities because of its ability to create effective relationships with politicians from the affected nations, as well as using corruption, in form of bribery, to aid in conducting its criminal activities. Most world politicians and leaders were bribed by BCCI bank, so that the bank would obtain favours from these politicians and leaders.

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The justice department was mandated with a task of conducting investigations on the case of BCCI bank, but the department mishandled this investigation. However, the Attorney of New York District conducted a further investigation, which was based on the provided information by the Subcommittee. Unfortunately, the information obtained by the Attorney led to the closure of the BCCI bank (BCCI 1). This led to a significant loss to innocent creditors and depositors for the bank since BCCI’S accounts could not protect them. BCCI bank was able to commit such a big loss due to the failure of the regulatory processes in the affected nations to have effective strategies. As such, these nations could not safeguard their innocent investors from the criminal activities of the BCCI bank.

Major Issues

The major issue of the BCCI bank was the laundering of billions of dollars in America, Asia, Africa, and Europe. The obtained funds were then used in support of illegal activities such as smuggling, which had a negative impact on the economies of the affected nations (BCCI 1). In addition, the fraud committed by BCCI led to facilitation of the acquisition and transport of firearms including nuclear technology sale. This had the consequence of enhancing the occurrence of criminal activities, which include terrorism and trafficking of arms.

Corruption was another significant issue, which was evident in the case of BCCI. This occurred since all the officials of the bank had to give bribes in order to ensure that their financial crimes are covered-up (“Global Scam and Scandal” 1). Moreover, bribes enabled these officials to commit their crimes in a manner that no one would know that there is something illegal taking place. These bribes were also employed in the process of witness intimidation, which ensured that witnesses would not present their evidences of the criminal activities conducted by these officials.

BCCI was also involved in the political systems of the affected nations (Kerry, and Brown 36). In this case, the bank created effective relationships with the prominent politicians. These relationships were based on the need for provision of favours to the politicians so that the politicians would in turn provide favours to the bank officials. Moreover, the relationships created an opportunity for the bank to generate more money from the politicians.

Finally, the regulatory processes of the affected nations were not effective. This created an opportunity for BCCI bank to acquire banks. An example of this was the poor United States regulators decision, which created an opportunity for BCCI bank to purchase banks (“Global Scam and Scandal” 1). In England, the regulatory processes were also not effective. This is because these processes covered up the fraud nature of BCCI bank, which made it complex for the processes to protect potential creditors and depositors from criminal activities of the bank.

Criminal Activity

The key significant criminal activity of BCCI was the fraud committed by this bank, as well as its customers. This fraud involved many dollars, which are estimated to be billions. As such, BCCI was actively involved in money laundering in America, Asia, Africa, and Europe (BCCI 1). Officials of the bank in these locations were actively involved in the bribery activity. This created an opportunity for the support of nuclear technologies sale, trafficking of various arms, and terrorism support. On the same note, real estates and banks were purchased through the criminal activity of the bank officials. The bank also engaged in effective evasion of income tax, facilitation of illegal immigration and smuggling, and management of prostitution.

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BCCI had an effective strategy, which enabled it to commit its criminal activities. This strategy involved the use of secrecy havens, bank and corporations’ confidentiality, arrangement on how to use guarantees, nominees, front-men, and buy-back, and documentation of financial statements in a back-to-back manner for the BCCI managed entities (Paul, and Blackmax 1). Further, the bank ensured that witnesses were intimidated and bribes and kick-backs provided so that it would cover-up its criminal activities.

White Collar Crime Effects

The white-collar crime involved in this case is the fraud of billions of dollars committed by the BCCI bank in America, Asia, Africa, and Europe (BCCI 1). This crime resulted in a big loss to innocent creditors and depositors of the accounts of BCCI bank when the bank was closed. The fraud had a significant impact to society. One of these impacts is the increment in the prices of consumer products. On the same note, consumers’ experienced a decline in services, and the cost of conducting various business activities increased.

White-collar crime impacts the economy of a nation in a negative way. At first, the cost of living of the nation increases. This indicates that the income level of consumers decreases. Such cases make consumers not to be able to afford and access basic services such as healthcare and education. This occurs since these services are regarded by consumers as expensive. Consequently, the living standards of consumers decline subsequently. In addition, public confidence and stock holders is damaged by fraud activities. This indicates that less investment takes place, which leads to a delay in the process of economic development of a nation.

Laundering of billions of dollars by BCCI bank led to the support of criminal activities such as terrorism. This occurred since BCCI bank aided in trafficking of arms and sale of nuclear technologies. Terrorism has a negative consequence on the economy of a nation. This occurs since terrorism results in property destruction, as well as loss of life.

The magnified tax evasion by the BCCI bank indicates that average citizens had to pay more tax (Soto 1). As such, the tax burden of BCCI bank is passed to consumers. This leads to an increment in the cost of living in society since citizens have to cut-down on their life savings so that they can be able to meet the tax demand. This illustrates that citizens have a limitation on the ability to access the desired services and products.

Works Cited

BCCI. The BCCI Affair. Web.

“Global Scam and Scandal-Baring Bcci Secrets Will Test Political Integrity.” The Seattle Times. 1991: 1. New Source. Web.

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Kerry, John, and Hank, Brown. The BCCI Affair, 1992. Web.

Paul, Matt, and Paxvector, Blackmax. Complete 911 Timeline. Web.

Soto, Melanie. White Collar Crime and Its Effects on Consumers, 2008. Web.

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