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-- In Iraq, B.C.C.I. became one of the principal conduits for money that Saddam Hussein skimmed from national oil revenues during the 1980s. According to investigator Jules Kroll, who is tracking Saddam's fortune, B.C.C.I. helped the dictator move and hide money all over the world.
-- In Guatemala the collapse of B.C.C.I. has triggered a government probe into a $30 million loan that the bank extended to the country in 1988-89. Government officials told TIME they suspect that some of the money may have gone to pay bribes to stifle a four-year-old investigation of a major B.C.C.I. client, coffee smuggler and arms merchant Munther Bilbeisi. "If the $30 million was given to corrupt public officials and that can be proved, then the loan should be wiped out or reduced," says Fernando Arevalo Reina of the Guatemalan Attorney General's office. (Bilbeisi has denied any wrongdoing.)
As B.C.C.I.'s influence grew, a corrupt core of middle management evolved, described by bank employees as "100 entrepreneurs," usually branch officers in foreign countries who were free to pursue their own agendas. One such was Amjad Awan, the B.C.C.I. officer who was convicted in Florida for the money- laundering services he provided for Noriega. As long as these remote managers kept on gathering deposits, they were given wide latitude to do as they pleased, which increasingly meant serving a core clientele of what investigators estimate to be some 3,500 corrupt business people around the world.
The more B.C.C.I. became a conduit for such money, the more deposit gathering became the bank's chief goal. At annual meetings, founder Abedi would harangue his employees for days on the importance of luring deposits. That was probably because billions of dollars were vanishing. At the highest levels, B.C.C.I. officials whisked deposits into secret accounts in the Cayman Islands. These accounts constituted a hidden bank within B.C.C.I., known only to founder Abedi and a few others. From those accounts, B.C.C.I. would lend massive amounts to curry favor with governments -- as in its $1 billion loan to Nigeria -- or to buy secret control of companies.
U.S. regulators discovered recently that such loans had enabled B.C.C.I. to buy clandestine control in three American banks: First American Bankshares in Washington, National Bank of Georgia (later purchased by First American) and Independence Bank of Encino, Calif. The latter two were bought officially by Abedi's front man, Ghaith Pharaon, the putative Saudi tycoon who received an ) estimated $500 million in B.C.C.I. loans in the 1970s and '80s. Those loans were secured only by shares of stock in the companies Pharaon purchased, which meant that they were never to be repaid.
What Abedi got in return for such loans was de facto ownership of three American banks, since he held their shares as collateral for the unrepayable loans. More important, this "nominee" shareholder arrangement meant that B.C.C.I. itself remained invisible to U.S. banking regulators. Following its discovery earlier this year that B.C.C.I. owned both First American and Independence Bank, the Federal Reserve ordered it to sell them off.