BCC was a private commercial bank. Before its forced closure in 1991 by regulators in the West, the majority shareholder was the Ruler of Abu Dhabi, United Arab Emirates and family members in their personal capacities.
The principal shareholders of the Parent Company, BCCI Holdings (Luxembourg) S.A., were made up entirely of Royal Family members, important business groups and institutional authorities from the Middle East.
There was no statutory requirement for BCCI to publish the list of all its shareholders. However. The list was available with the concerned regulatory authorities.
In 1983 as part of the disclosure required in the issue of BCCI's Guaranteed Floating Rate Notes Issue for US$50 million, the full list of BCCI's shareholders was published in the Notes Prospectus.
- BCCI Holdings (Luxembourg) SA: List of Shareholders as at 30 June 1983 (Extract from BCCI Finance N.V. Prospectus dated November 22, 1963: US$ 50,000,000 Guaranteed Floating Rate Notes due 1990)
As at the end of December 1986 the total number of shareholders was 53.
Bank of America U.S.A.
Bank of America National Trust and Savings Association (Bank of America for short) of USA subscribed to 25% of the initial capital of US$2.5 million when BCCI S A was established in 1972. This was increased to 30%.
When establishing BCC as a new bank, Mr Agha Hasan Abedi, the founder and President of BCC desired the support of a large international bank and he persuaded the Bank of America (then the largest bank in the world) to invest in the new bank as a shareholder Bank of America's investment was originally aimed as an inroad to the Middle East Market that had yet to show its full potential during the early stages of oil exploration in the 1970s.
After petrodollars began flowing in the Middle East markets all the major banks were attracted to have a direct presence in the region, Bank of America wanted its own branches in the Middle East. This would have resulted in unfavourable competition between branches of Bank of America and BCC branches.
Over the years BCC established a sound foundation and a sizeable network worldwide, and no longer needed to rely on any special relationship with Bank of America. BCC's global expansion included countries where Bank of America already had a direct or indirect presence. With substantial investments of petrodollars flowing into the U.S.A. from the Middle East markets, it was inevitable that BCC would have to follow its clients and investors into the US Market. This was not possible within the existing Federal Reserve Board regulations in U.S.A. until Bank of America divested its entire shareholding in BCC.
Consequently, Bank of America gradually phased out its shareholding in the BCCI S A by initially not subscribing to rights issues and then gradually selling its shareholding to the International Credit & Investment Company (Overseas) Limited, a company incorporated in the Cayman Islands by BCC to provide for benefits to BCC staff and their families, and support good causes.
Shareholders before forced closure of BCC in 1991
70% (approximately) held by Middle Eastern Investors consisting of participation of eminent families of Abu Dhabi, Dubai, Sharjah in United Arab Emirates, Saudi Arabia, Bahrain and some leading Middle East businessmen in their personal capacities.
30% (approximately) held by International Credit & Investment Company (Overseas) Limited, a company incorporated in the Cayman Islands) and which company was ultimately owned by
- ICIC Foundation (Its objectives were to provide aid and services for global deserving causes)
- ICIC Staff Benefit Trust (For the benefit schemes for BCC staff and their families generally)
ICIC Foundation and ICIC Staff Benefit Trust
The ICIC Foundation, incorporated and resident in the Cayman Islands, was a wholly-owned subsidiary of the ICIC Foundation which is a company incorporated in the United Kingdom and registered as a charity under English law. The latter was established for general charitable purposes under English law to promote the relief of poverty and the advancement of education and religion.
The ICIC Staff Benefit Fund, incorporated and resident in the Cayman Islands, is a wholly-owned subsidiary of the ICIC Staff Benefit Trust which was constituted and administered as a discretionary trust in the Cayman Islands for the benefit of employees and former employees of the BCC Group and their dependants.
The members of the Governing Board of the ICIC Foundation of the United Kingdom were also the Protectors of the ICIC Staff Benefit Trust and were Executives of the BCC Group.
The Cayman Islands
The Cayman Islands are renowned as an offshore banking centre, owing to the absence of direct taxes and to liberal banking laws that generally ensure confidential transactions. Hundreds of banks and trust companies, including most of the world’s largest banks, are registered in the Caymans, making the islands one of the largest financial centres in the world. (Encyclopaedia Britanica 2021)