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Between 1977 and 1987, a BCCI nominee purchased the National
Bank of Georgia.
Although BCCI never directly owned any U.S. banks, it
controlled a number of banks in New York, Maryland, Georgia,
California, and Florida.
In 1990, BCCI officials pleaded guilty to money laundering
charges involving wire transfers between Panama and BCCI-Panama's
account at FAB of New York.
3. Supervision of BCCI, S.A.
BCCI, S.A. was initially supervised by the Luxembourg Monetary
Institute. As the bank grew--spreading to approximately 72
countries--the Luxembourg authorities became concerned about their
ability to supervise BCCI effectively. Because of perceived
irregularities in the European branches of BCCI, S.A., a "college
of supervisors" was established in the late 1980's. The
supervisors consisted of bank regulators from England, the Cayman
Islands, Luxembourg, and several other European countries. They
attempted to create a consolidated and accurate picture of BCCI's
operations. Bank regulators from the United States were not
invited to join this group.
At the time BCCI's operating subsidiaries opened their agency
offices in the United States, no approval from any Federal banking
authority (such as the Federal Reserve Board) was required. The
only approval required was a license from State banking regulators.
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Last modified: May 25, 2011