BSP Circular Letter

July 27, 2004 BSP CIRCULAR LETTER TO : All Banks and Non-Bank Financial Institutions Under BSP Supervision The Anti-Money Laundering Council (AMLC), in its Resolution No. 382 dated 28 June 2004, copy attached, request your cooperation to the call of the United States Government, thru the attached letter of the US Embassy, Manila dated 8 June 2004 addressed to BSP Governor Rafael B. Buenaventura, to freeze all assets of the following individual who is suspected of supporting and financing terrorist activities: HASSAN ABDULLAH HERSI AL-TURKI (a.k.a. Hassan Turki) Pursuant to said Resolution, you are hereby directed to submit directly to the AMLC reports of covered and suspicious transactions, if any, involving the above-named individual. For your strict compliance. bspcda2004 (SGD.) ALBERTO V. REYES Deputy Governor RESOLUTION NO. 382 On 9 June 2004, the Government of the United States, through its Embassy in Manila, sent a letter dated 8 June 2004 addressed to Hon. Rafael B. Buenaventura, Governor, Bangko Sentral ng Pilipinas, regarding its request to check for offices or financial assets belonging to Hassan Abdullah Hersi Al-Turki and to freeze the same should any be found. Hassan Abdullah Hersi Al-Turki, also known as Hassan Turki, is a faction leader of the terrorist organization in Somalia called Al-Itihaad Al-Islamiya (AIAI). On 6 October 2001, the AIAI was included in the UN 1267 Sanctions Committee's consolidated list because of the organization's association with Al-Qaida and its support for acts of terrorism. The International Crisis Group (ICG), an independent non-profit organization headquartered in Brussels, has identified Hassan Turki as a prominent figure in AIAI. An ICG paper entitled "Somalia: Countering Terrorism in a Failed State" noted that Hassan Turki was a former military commander in lower Jubba. The paper states that the fact that Al-Qaida had contact with members of AIAI is "unquestionable". It further noted that there is evidence that "Al-Qaeda had ties with the movement in Luuq from 1991 to 1996, and again in the lower Jubba region (Ras Kiamboni) in 1997, as Al-Qaeda was preparing to attack the US Embassy in Nairobi". HIEASa On 3 June 2004, pursuant to Executive Order No. 13224, the United States designated domestically and froze the assets of Hassan Abdullah Hersi Al-Turki for engaging in activities on behalf of and in support of Al-Qaida. On even date, the United States requested the UN 1267 Sanctions Committee to add the name of Hassan Abdullah Hersi Al-Turki to the consolidated list of entities/individuals subject to sanctions that UN member states are required to implement pursuant to UNSC Resolutions 1267, 1333, 1455 and most recently, 1526. The United Nations Security Council (UNSC) has adopted a series of Resolutions expressing its unequivocal condemnation of terrorism, particularly, UNSC Resolution No. 1267 dated October 15, 1999 and UNSC Resolution 1373 dated September 28, 2001 requiring member states to freeze terrorist assets without delay and to prohibit their nationals or persons within their territories from financing terrorism. 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 copy of the 8 June 2004 letter from the United States; (2) To request said Supervising Authorities to circularize among all covered institutions under their respective jurisdictions, copy of the subject 8 June 2004 letter from the United States; 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 afore-named 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. 28 June 2004, Manila, Philippines. (SGD.) RAFAEL B. BUENAVENTURA Chairman (Governor, Bangko Sentral ng Pilipinas) (SGD.) LILIA R. BAUTISTA (SGD.) EDUARDO T. MALINIS Member Member (Chairperson, Securities and Exchange Commission) (Officer-in-Charge, Insurance Commission) June 8, 2004 Mr. Rafael Buenaventura Governor Bangko Sentral ng Pilipinas Dear Governor Buenaventura: The international coalition to stem terrorism financing has been a joint effort involving many different countries, including significant efforts by the Government of the Republic of the Philippines. The provisions of UN Security Council Resolution 1373 requiring member states to freeze terrorist assets without delay and to prohibit their nationals or persons in their territories from financing terrorism reflect this shared commitment on the part of the international community. Together, we are putting in place the necessary institutional and regulatory infrastructure to bar access to the financial system of terrorist and their financiers. On September 23, 2001 President George Bush issued Executive Order (E.O.) 13224 blocking the assets of 27 persons and entities. E.O. 13224 provides the Secretary of State the authority to designate foreign persons who have committed, to pose a significant risk of committing, acts of terrorism that threaten the security of US Nationals or the national security, foreign policy or economy of the United States. It also provides the Treasury Department with the authority, among other things, to designate persons who lend support to designated terrorists. A designation by either State or Treasury Departments could result in the blocking of their assets in the U.S. or held by U.S. persons, wherever located. prLL On June 3, 2004, the United States designated domestically and froze the assets of Hassan Abdullah Hersial-Turki. The above-mentioned individual has engaged in activities on behalf of and in support of Al-Qaida. Therefore, on June 3, 2004, the United States requested that the UN 1267 Sanctions Committee designate him and add his name to the Committee's consolidated list of entities/individuals subject to sanctions (including asset freeze) that UN member states are obligated to implement pursuant to relevant UNSC Resolutions, including 1267 and most recently, 1526. We are enclosing a background paper that outlines the activities that support our designation. As noted above, the international coalition to combat the terrorist financing has been a joint effort involving many countries. We urge you to check carefully for offices or financial assets belonging to this individual in your country. Together, we are continually strengthening the necessary institutional and regulatory infrastructure to bar access to the financial system of terrorists and their financiers. The Embassy of the United States of America avails itself of this opportunity to offer the Central Bank of the Philippines the assurances of its highest consideration. Sincerely, (Sgd.) Dan Martinez A/Economic Counselor TERRORIST NAMES DESIGNATED UNDER E.O. 13224 (LIST 57): NAME OF INDIVIDUAL Hassan Abdullah Hersi AL-TURKI (a.k.a. Hassan Turki) D.O.B: circa 1944 P.O.B: Region V, Ethiopia, which is the Ogaden Region in Eastern Ethiopia FAMILY BACKGROUND: From the Ogaden clan, Reer Abdille Subclan. Designation of Hassan Abdullah Hersi Al-Turki Under Executive Order 13224 Hassan Abdullah Hersi Al-Turki, also known as Hassan Turki, is a faction leader of the terrorist organization in Somalia called Al-Itihaad Al-Islamiya (AIAI), which was included on the UN 1267 Sanctions Committee's consolidated list on 6 October 2001 because of the organization's association with Al-Qaida. According to information available to the U.S. Government, including but not limited to publicly available information, Hassan Turki has been associated with Al-Qaida and has provided support for acts of terrorism. IHcSCA The International Crisis Group (ICG), an independent non-profit organization headquartered in Brussels, with staff on five continents, has identified Hassan Turki as a prominent figure in AIAI. An ICG paper entitled "Somalia: Countering Terrorism in a Failed State" (published May 23, 2002, and available on the Internet at www.crisisweb.org) noted that Hassan Turki was a former military commander in lower Jubba. The paper states that the fact that Al-Qaida had contact with members of AIAI is "unquestionable," and notes that there is some evidence that "Al-Qaeda had ties with the movement in Luuq from 1991 to 1996, and again in the lower Jubba region (Ras Kiamboni) in 1997, as Al-Qaeda was preparing to attack the U.S. Embassy in Nairobi." Press reports have conveyed similar information. The November 27, 2003, edition (internet version) of Corriere della Sera ran an article entitled "Italian Report Describes Al-Qaida Activities in Somalia." That article states that "Al-Qaida's real man in Somalia is Hassan Turki." An article in the November 29, 2002, edition (internet version) of the same journal entitled "Source Reports 'Suspicious' Group From Somalia Set Up Terror 'Structure' in Kenya," reported that twenty individuals traveled from Somalia to Kenya to set up a structure to carry out attacks. The report stated that "The group is linked to Hassan Turki, a leading member of a Somali fundamentalist faction, Al Ittihad. Turki organized a training camp in Ras Khamboni and then disappeared without trace. He has been reported as being in Dubai, in Yemen, and then again in Somalia." Information about Hassan Abdullah Hersi Al-Turki's association with Al-Qaida, his repeated involvement in planning and supporting acts of terrorism, and reports of his international travel, warrants the inclusion of this individual on the United Nations 1267 Sanctions Committee's Consolidated list.