We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

BCCI and White Collar Crime - Essay Example

Comments (0) Cite this document
Summary
Bank of Credit and Commerce International (BCCI) was considered to be the major industrial bank that was set up in Pakistan in the year 1972. Agha H. Abedi taking capital from Sheikh Zayed bin Sultan, emir of Abu Dhabi founded BCCI with a mission to have mystic banking facility…
Download paper
GRAB THE BEST PAPER
BCCI and White Collar Crime
Read TextPreview

Extract of sample
BCCI and White Collar Crime

But, success was not the only step for BCCI's fate. Price Waterhouse was asked to carry inquiry in March, 1991. It was 24th June, 1991 when they submitted the Sandstorm Report to Bank of England stating that BCCI had engaged in fraud case.
Main capital base to BCCI were virtual oil-rich Arab leaders who acted to be the investor but, in reality they were working as nominees. Bank since its beginning attracted people to deposit their funds by pretending that they have more capital which in reality was not true. It used to use the deposits in order to meet the expenses. Even it forced its own shareholders to participate in this drama. Major actions that resulted into frauds by BCCI were enlisted by New York District Attorney. According to them the important points are:
Middle East personalities included their names and funds to BCCI as an investor which in effect turned to be flaw because their funding was based on guaranteed no-risk return instead of actual sponsor at risk.
After getting the request from Bank of England, Price Waterhouse presented its report on BCCI known as Sandstorm Report. As per the report, BCCI committed several mistakes and did many unofficial activities that are out of one company's ethics. Price Waterhouse persons collected records from banks of various countries, reviewed them and interviewed in some cases, finally formed one draft keeping all key points there. During their scrutiny they found that BCCI did not record $600 million of BCCI's deposit. It first knocked the Price Waterhouse audit persons. Among the other types of frauds described by audit include: manipulation of their account at the time of non-performing loan, fabricated profit, hidden losses, setting up of untrue loans for repurchasing shares, cheating of deposits, unreal transactions and charges, showing nominees as capitalists, illegal repurchasing platform for shareholders, bad investment, missing of standardized procedure of records, artificial customer loans and most important fallacious audit confirmation (Price Waterhouse, 1987).
After losing money for the reason of poor lending operations, instead of accepting provisions for losses they just simply cheated them. Apart from that BCCI used to manipulate their accounts. Actual reason for this manipulation was make the bank appear to be a good profitable and reputed institution than it was which helped it to get security for its deposits.
With these approaches when condition of BCCI was worse, made it worst after the loss of $500 million in 1985. That loss was only due to commodity trading undertaken through Capcom.
Along with the numbered accounts in order to manipulate accounts through back-to-back transactions they used to use "managers ledgers." It was such a bad activity that the person keeping the records even forgets which person made which transaction. In most of the cases, none of the authority was able to identify either the name of borrower or credit officer responsible for controlling the accounts (Price Waterhouse report to BCCI, 1986).
Price ... Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“BCCI and White Collar Crime Essay Example | Topics and Well Written Essays - 1500 words”, n.d.)
Retrieved from https://studentshare.net/miscellaneous/295281-bcci-and-white-collar-crime
(BCCI and White Collar Crime Essay Example | Topics and Well Written Essays - 1500 Words)
https://studentshare.net/miscellaneous/295281-bcci-and-white-collar-crime.
“BCCI and White Collar Crime Essay Example | Topics and Well Written Essays - 1500 Words”, n.d. https://studentshare.net/miscellaneous/295281-bcci-and-white-collar-crime.
  • Cited: 0 times
Comments (0)
Click to create a comment
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
White Collar Crime. Ponzi Schemes
Ponzi Schemes. Ponzi schemes are investment schemes not supported by an underlying business. It is one of the several schemes considered as a white collar crime. In the Ponzi scheme, investors are enticed with bogus investments that supposedly promise from moderate to very high returns at zero or low risks for investors.
5 Pages(1250 words)Essay
White Collar Crime
Such crimes include and not limited to corruption, identity theft, tax evasion and embezzlement among others such as money laundering (Simon & Eitzen, 2000). This paper is a critical evaluation of white collar crimes as compared to conventional crimes.
3 Pages(750 words)Essay
White Collar and Corporate Crime
1992, 11-12). These organized crimes are committed by and for business and pose a serious threat to the health, safety, and financial welfare of consumers and workers as well as to the orderly functioning of the economy and the government. Most of these crimes contain two common elements: the intent to cheat someone and the intent to deceive or conceal the truth.
10 Pages(2500 words)Essay
THE bcci, bank of credit comerce, white collar crime
Within a short span, by the end of 1976, BCCI expanded into 108 branched worldwide with asset rising from $200 million to $1.6 billion. Its steep growth helped to attain a journey of asst of $4
6 Pages(1500 words)Essay
WHITE COLLAR CRIME
In addition, it could also be defined as a crime committed by a business executive or an employee at higher managerial level for any personal reasons. For instance, it is also a crime that
2 Pages(500 words)Essay
White-Collar & Organized Crime
Moreover, organized crime was infamous during this period for economic crimes including racketeering. In contrast organized crime would often used criminal actions including murder to enforce power over others often when a debt
6 Pages(1500 words)Essay
White collar crime #6
Sutherland, in his speech, asserted the fact that when people are surrounding by individuals who have criminal behavior, they are more likely to get involved in criminal activities. White collar crime more often includes crimes like occupational fraud and cheating, and more
1 Pages(250 words)Essay
White Collar Crime
Some common types of white-collar crimes include embezzlement, bankruptcy fraud, corruption, black mailing, bribery, counterfeiting, pension fund crime, charity fund crime, financial crimes and occupational crimes. White-collar crimes are not violent, but their
2 Pages(500 words)Essay
Theories of White Collar Crime
A clear understanding is drawn from systematic review of various primary sources. Edwin Sutherland first analyzed white-collar crime in 1939 where he analyzed an understanding of the relationship of business and crime. However, white-collar crime is criticized for
2 Pages(500 words)Essay
White Collar Crime
For instance, since the introduction of Ponzi schemes by Charles Ponzi in 1920 the schemes have become a venue for the rich to make more money
1 Pages(250 words)Essay
Let us find you another Essay on topic BCCI and White Collar Crime for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us