In 1972, a British national of Pakistani origin, Agha Hasan Abedi, founded what he called a “Third World bank” in London. The Bank of Credit and Commerce International (BCCI) became a runaway success, expanding from 19 to 108 branches in three years and its assets jumping from $200 million to $1.6 billion. In less than two decades, it had $23 billion in assets and was operating in 73 countries, with offshoots in Luxembourg and Grand Cayman. It became the first foreign bank to open an office in China.
Through its Third World Foundation BCCI handed out awards to luminaries like Prime Minister Zhao Ziyang of China, Nelson and Winnie Mandela, and President Julius Nyerere of Tanzania (with Indira Gandhi making the presentation). As the bank’s senior staff hobnobbed with presidents and prime ministers and the governments of many developing countries gave it their official business, tens of thousands of small depositors in developing countries trusted it with their life savings.
What only a few people knew was that BCCI also held the accounts of Abu Nidal the terrorist, members of the Medellin drug cartel in Colombia, and Lieutenant-General Fazle Haq, the governor of Pakistan’s North-West Frontier Province, who had set up hundreds of heroin processing plants close to the Afghan border and trucked their output to Karachi in military vehicles.
