BSP Circular Letter

December 8, 2003 BSP CIRCULAR LETTER TO : All Banks and Non-Bank Financial Institutions Attached is Resolution No. 298 dated 25 November 2003 issued by the Anti-Money Laundering Council relative to the request of the Government of the United States to include the name of DAWOOD IBRAHIM in the asset freeze list under US EO 13224. For your guidance and strict compliance. DSTCIa (SGD.) ALBERTO V. REYES Deputy Governor RESOLUTION NO. 298 On November 5, 2003, the Government of the United States, through its Embassy in Manila sent a letter of even date to the Executive Director, Anti-Money Laundering Council (AMLC) relative to the inclusion of DAWOOD IBRAHIM to the asset freeze list under US EO 13224. On November 7, 2003, the Office of American Affairs, Department of Foreign Affairs, Republic of the Philippines, sent a letter dated October 30, 2003 addressed to Hon. Rafael B. Buenaventura, Governor, Bangko Sentral ng Pilipinas conveying the request of the US Government to freeze the assets of Dawood Ibrahim . On October 16, the United States submitted Dawood Ibrahim's name to the UN 1267 Sanctions Committee for consideration for inclusion on its consolidated list, maintained pursuant to UNSCRs 1267, 1390 and 1455, as the individual is associated with Usama bin Laden and Al Qaida. As a charter member of the United Nations and as part of the international coalition against terrorism, the Philippines, through the Anti-Money Laundering Council, must actively support the actions required under the subject UNSC Resolutions. Pursuant thereto, the Council unanimously resolves, as follows: (1) To provide the Supervising Authorities, the Bangko Sentral ng Pilipinas, the Securities and Exchange Commission, and the Insurance Commission, with copies of the November 5, 2003 letters from the United States and the October 30, 2003 letter from the Department of Foreign Affairs, Republic of the Philippines, respectively; (2) To request the Supervising Authorities to circularize among all covered institutions under their respective jurisdictions, copies of the subject November 5, 2003 and October 30, 2003 letters from the United States and Department of Foreign Affairs; and (3) To require said Supervising Authorities to direct the covered institutions under their respective jurisdictions to submit directly to the Council reports of covered and suspicious transactions, if any, involving the aforenamed terrorist individual in accordance with Sections 7 and 9 of the AMLA, Rules 5.2, 5.3, and 9.3 of the IRRs of the AMLA and other related or applicable rules, regulations, circulars and operating manuals promulgated by the Supervising Authorities. November 25, 2003, Manila, Philippines. (SGD.) RAFAEL B. BUENAVENTURA Chairman (Governor, Bangko Sentral ng Pilipinas) (Signed) (SGD.) LILIA R. BAUTISTA EDUARDO T. MALINIS Member Member (Chairperson, Securities and Exchange Commission) (Officer-in-Charge, Insurance Commission) 30 October 2003 Sir: Attached, for your appropriate action, is a copy of a statement of case received from the U.S. Embassy on 17 October 2003, designating DAWOOD IBRAHIM to the asset freeze list under U.S. EO 13224. Mr. Ibrahim is a Pakistani and is considered "one of the pre-eminent criminals in the Indian underworld," On 16 October, the U.S. Government also submitted Ibrahim's name to the UN 1267 Sanctions Committee for inclusion in its consolidated list. Ibrahim was said to be involved in large-scale shipments of narcotics in the UK and Western Europe. Ibrahim's syndicate has been utilized by Osama bin Laden and his terrorist network in its smuggling routes from South Asia, the Middle East and Africa. Ibrahim's syndicate consistently aimed to destabilize the Indian government. He is currently wanted by India for the 12 March 1993 Bombay Exchange bombings, which killed hundreds of Indians and injured over a thousand. In this regard, the U.S. Government requests the Philippine Government to undertake immediate and necessary measures to impose prohibitions and to freeze the assets of Ibrahim. The U.S. Government has made a public announcement on the designation of Ibrahim in its foreign terrorists listing. We wish to inform you that we have also communicated this matter to, Bureau of Immigration, Department of Interior and Local Government, Department of National Defense and the National Security Council. Thank you. Very truly yours, For the Secretary of Foreign Affairs: (SGD.) ARIEL Y. ABADILLA Assistant Secretary TERRORIST FINANCE: DESIGNATION OF DAWOOD IBRAHIM -LIST 43- Name to be designated under E.O. 13224 and submitted to the UN 1267 Sanctions Committee: Dawood Ibrahim On October 16, the USG designated and froze the assets of the individual, Dawood Ibrahim, under U.S. Executive Order 13224. On the same day, the U.S. submitted the name to the UN 1267 Sanctions Committee for consideration for inclusion on its consolidated list, maintained pursuant to UNSCRs 1267, 1390, and 1455, as the individual is associated with Usama bin Laden and Al Qaida. Persons and entities on the list are subject to sanctions (travel ban, arms embargo, and asset freeze), which all UN Member States are obligated to implement. We request your government's support for these new designations. We hope that your government will undertake immediate and effective measures, similar to our own, to freeze the assets of this individual on October 16, 2003 or as soon thereafter as possible. We urge you to check carefully for any funds, financial assets or economic resources, including offices belonging to or related to this individual and his aliases in your country. We hope that you will share with us any actions or freezing of assets that you undertake. In addition, we would welcome any information that you would like to share with us regarding the activities of this individual in our country. We appreciate the close cooperation between our governments in this effort and your willingness to forego any public announcement or discussions of this action until after it is announced in the United States. STATEMENT OF CASE I. Background Paper on DAWOOD IBRAHIM: a.k.a. Dawood Ibrahim a.k.a. Sheikh, Dawood Hassan Address: Karachi, Pakistan Phone #: 021-5892038 Passport: Issued by Pakistan: No. G869537 Dawood Ibrahim ("IBRAHIM"), the son of a police constable, has reigned as one of the pre-eminent criminals in the Indian underworld for most of the past two decades. IBRAHIM's syndicate is involved in large-scale shipments of narcotics in the U.K. and Western Europe. The syndicate's smuggling routes from South Asia, the Middle East and Africa are shared with Usama bin Laden and his terrorist network. Successful routes established over recent years by IBRAHIM's syndicate have been subsequently utilized by bin Laden. A financial arrangement was reportedly brokered to facilitate the latter's usage of these routes. In the late 1990's, IBRAHIM traveled in Afghanistan under the protection of the Taliban. IBRAHIM's syndicate has consistently aimed to destabilize the Indian government through inciting riots, acts of terrorism, and civil disobedience. He is currently wanted by India for the March 12, 1993 Bombay Exchange bombings, which killed hundreds of Indians and injured over a thousand more. Information, from as recent as Fall 2002, indicates that IBRAHIM has financially supported Islamic militant groups working against India, such as Lashkar-e-Tayyiba (LeT). Lashkar-e-Tayyiba (Army of the Righteous) is the armed wing of Markaz-ud-Dawa-wal-Irsha (MDI) a Sunni anti-US missionary organization formed in 1989. The United States added LeT to the list of designated terrorists in October 2001. The group was banned by the Pakistani government, and its assets frozen, in January 2002. November 5, 2003 Atty. Vicente Aquino Executive Director Anti-Money Laundering Council Room 507, EDPC Building BSP Complex, Roxas Blvd. Dear Attorney Aquino: The United States appreciates your government's efforts in support of the war on terrorism. More specifically, we would appreciate the cooperation of the Government of the Philippines in moving to freeze the assets of Dawood Ibrahim. On October 16, the United States submitted Mr. Ibrahim's name to the UN 1267 Sanctions Committee for consideration for inclusion on its consolidated list, as the individual is associated with Usama bin Laden and Al Qaida. As you know, all UN member states are obligated to freeze without delay the funds and other financial assets of this individual, and to ensure that no other funds or resources are made available to him. We hope that your government can undertake swift and effective measures to impose prohibitions on providing any form of assistance to them and freezing their assets, in accordance with UNSCRs 1267/1333/1390/and 1455, without delay. We urge you to check carefully for any funds, financial assets, or economic resources, including offices belonging to or related to this individual and his aliases in your country. We also hope that you will share with us any actions taken to prohibit providing any form of assistance to them or blocking of assets that you undertake. In addition, we would welcome any information your government would like to share with us regarding the activities of this individual. Sincerely, (Sgd.) Morton Holbrook Economic Counselor Attachments: Talking Points Statement of Case Talking Points On October 16, the USG designated and froze the assets of the individual, Dawood Ibrahim, under U.S. Executive Order 13224. On the same day, the U.S. submitted the name to the UN 1267 Sanctions Committee for consideration for inclusion on its consolidated list, maintained pursuant to UNSCRs 1267, 1390, and 1455, as the individual is associated with Usama bin Laden and Al Qaida. Persons and entities on the list are subject to sanctions (travel ban, arms embargo, and asset freeze), which all UN Member States are obligated to implement. We request your government's support for these new designations. We hope that your government will undertake immediate and effective measures, similar to our own, to freeze the assets of this individual on October 16, 2003 or as soon thereafter as possible. We urge you to check carefully for any funds, financial assets or economic resources, including offices belonging to or related to this individual and his aliases in your country. We hope that you will share with us any actions or freezing of assets that you undertake. In addition, we would welcome any information that you would like to share with us regarding the activities of this individual in our country. We appreciate the close cooperation between our governments in this effort and your willingness to forego any public announcement or discussions of this action until after it is announced in the United States. Statement of Case I. Background Paper on DAWOOD IBRAHIM: a.k.a. Dawood Ibrahim a.k.a. Sheikh, Dawood Hassan Address: Karachi, Pakistan Phone #: 021-5892038 Passport: Issued by Pakistan: No. G869537 Dawood Ibrahim ("IBRAHIM"), the son of a police constable, has reigned as one of the pre-eminent criminal in the Indian underworld for most of the past two decades. IBRAHIM's syndicate is involved in large-scale shipments of narcotics in the U.K. and Western Europe. The syndicate's smuggling routes from South Asia, the Middle East and Africa are shared with Usama bin Laden and his terrorist network. Successful routes established over recent years by IBRAHIM's syndicate have been subsequently utilized by bin Laden. A financial arrangement was reportedly brokered to facilitate the latter's usage of these routes. In the late 1990's, IBRAHIM traveled in Afghanistan under the protection of the Taliban. IBRAHIM's syndicate has consistently aimed to destabilize the Indian government through inciting riots, acts of terrorism, and civil disobedience. He is currently wanted by India for the March 12, 1993 Bombay Exchange bombings, which killed hundreds of Indians and injured over a thousand more. Information, from as recent as Fall 2002, indicates that IBRAHIM has financially supported Islamic militant groups working against India, such as Lashkar-e-Tayyiba (LeT). Lashkar-e-Tayyiba (Army of the Righteous) is the armed wing of Markaz-ud-Dawa-wal-Irsha (MDI) a Sunni anti-US missionary organization formed in 1989. The United States added LeT to the list of designated terrorists in October 2001. The group was banned by the Pakistani government, and its assets frozen, in January 2002.