TNAG-2653-FCO40-3846-Extradition-cases-from-the-UK-and-France-to-Hong-Kong-Lorrai-1992 — Page 32

'MAY 14 '92 19:25 CLIFFORD CHANCE HK 852 8104708

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BMFL at all times understood that the monies furnished in this way by the parent company were to meet the ostensible funding needs of its subsidiary BMFL who in turn was obliged only to advance these monies in accordance with proper banking practice and procedure and establish BBMB policy.

The official policies of BBMB and BMFL with regard to both money market lending (inter-bank lending) and customer (term lending) reflected the usual and standard banking practice familiar to any experienced bank officer. These policies were moreover set forth in a BBMB manual relating to banking practice. All senior officers of BBMB and BMFL were familiar with its

contents.

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BMFL was expected to report regularly to its parent BBMB both as to the nature and extent of its lending.

It is established banking practice and a fact well known to all senior officers at BMFL and BBMB that money market lending (inter-bank lending) was only to be advanced to an established bank approved by BBMB and within the limits set by BBMB. Such limits and approvals being a result of a thorough investigation into the credit rating of such financial institutions. Such lending was not to be extended to other customers (as for obvious reasons it was advanced on an unsecured basis).

STATUS AND POSITION OF DR. RAIS SANIMAN

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From 1978 until his resignation in October 1983 Saniman held the executive post of Senior General Manager of the International Banking Division of BBMB. As such he was also the Senior Officer of the Funds Management Department at the International Banking Division, Saniman was a member of the Management Committee of BBMB and in charge of reporting to the Committee on the International Banking Operations of the Bank including those concerning BBMB's Hong Kong subsidiary BMFL.

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