TNAG-2653-FCO40-3846-Extradition-cases-from-the-UK-and-France-to-Hong-Kong-Lorrai-1992 — Page 31

MAY 14 '92 19:24 CLIFFORD CHANCE HK 852 8104708

IN THE MATTER OF BMFL LITIGATION

RE

SUMMARY OF THE CASE AGAINST DR. RAIS SANIMAN

MEMORANDUM

P.2

BBMB & BMFL

1.

2.

3.

BBMB (Bank Bumiputra Malaysia Berhad) is the largest commercial bank in Malaysia with overseas branches and subsidiaries in a number of major cities worldwide including London, New York, Tokyo and Hong Kong.

BMFL (Bumiputra Malaysia Finance Limited) was a wholly owned subsidiary of BBMB established in Hong Kong primarily to engage in local commercial lending. Although BMFL was set up as a subsidiary rather than a branch (so as to comply with local Hong Kong Banking Regulations) it was intended to be operated in much the same way as any overseas branch of BBMB.

As a wholly owned subsidiary, BMFL was subject to control by BBMB both

because:-

(i)

(ii)

its profits and losses formed part of the eventual results at BBMB;

because it was dependent on BBMB for the funding of most of its lending.

4.

BMFL did not have an independent ability to raise large amounts of funds for the purposes of lending accordingly, it relied on BBMB to raise the money by

way

of loans on the inter-bank market from other banks and to make those funds available on the same basis.