BSP Circular Letter

April 21, 2003 BSP CIRCULAR LETTER TO : All Banks, Non-Banks, Quasi-Banks, Trust Entities and All Other Institutions and their Subsidiaries and Affiliates Supervised or Regulated by the Bangko Sentral ng Pilipinas Attached is a copy of Resolution No. 227 dated 4 April 2003 of the Anti-Money Laundering Council, relative to the letter-request dated 24 March 2003 of the United States Government addressed to the Governor of the Bangko Sentral ng Pilipinas, Rafael B. Buenaventura, "urging the Philippine Government to identify, freeze and prepare to transfer for the benefit of the Iraqi people any Iraqi government assets, as well as any ill-gotten gains of Saddam Hussein or his regime in the Philippines that have not already been frozen". For your guidance and appropriate action. (SGD.) ALBERTO V. REYES Deputy Governor ANTI-MONEY LAUNDERING COUNCIL RESOLUTION NO. 227 On March 24, 2003, the United States Government, through the US Embassy in Manila, sent a letter dated 24 March 2003 addressed to the Governor of Bangko Sentral ng Pilipinas, Rafael B. Buenaventura. In said letter, the US Government "urges the Philippine Government to identify, freeze and prepare to transfer for the benefit of the Iraqi people any Iraqi government assets, as well as any ill-gotten gains of Saddam Hussein or his regime in (our) country that have not already been frozen . " The United States Government categorically stated in its Letter that the "collective goal" is to bring Iraqi resources as well as ill-gotten gains of Saddam Hussein and his regime to assist the people of Iraq and the reconstruction of their country. The United States Government acknowledged that "each country will have to determine the most appropriate means to achieve the "collective goal" and that "some countries may not have any Iraqi government assets in local accounts; nor may all countries have the domestic legal authority to make these assets available for assisting in the reconstruction of Iraq or for the benefit of the Iraqi people " . Pursuant to said letter-request, the Council resolved unanimously, 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 24 March 2003 Letter of the United States Government; and (2) To request the Supervising Authorities to circularize among all covered institutions under their respective jurisdictions, copies of subject 24 March 2003 US Government Letter for their, information, guidance and appropriate action. April 4, 2003, Manila, Philippines (SGD.) AMANDO M. TETANGCO, JR. Acting Chairman (Officer-in-Charge, Bangko Sentral ng Pilipinas) (SGD.) LILIA R. BAUTISTA (SGD.) EDUARDO T. MALINIS Member Member (Chairman, Securities and Exchange Commission) (Commissioner, Insurance Commission) March 24, 2003 Mr. Rafael Buenaventura Governor Bangko Sentral ng Pilipinas Dear Governor Buenaventura: With the beginning of hostilities in Iraq, the United States Government announced that Iraqi non-diplomatic state funds in accounts currently blocked in the United States are being vested and deposited in an account at the Federal Reserve Bank of New York. This action reaffirms to the Iraqi people America's desire to help them build a new Iraq that is prosperous and free. By transferring vested funds to a special account that will be used to benefit the Iraqi people we are backing up our statements with concrete actions. These vested assets will be used to benefit the Iraqi people and to assist in the reconstruction of Iraq, such as by funding humanitarian relief or payment of Iraqi government workers. We urge you to identify, freeze and prepare to transfer for the benefit of the Iraqi people any Iraqi government assets, as well as any ill-gotten gains of Saddam Hussein or his regime in your country that have not already been frozen. We hope you will join us in urging other governments to do the same. We understand that each country will have to determine the most appropriate means to achieve our collective goal of bringing the resources of the Iraqi government, as well as ill-gotten gains of Saddam Hussein and his regime, to assist the Iraqi people and assist in the reconstruction of Iraq. We recognize that some countries may not have any Iraqi government assets in local accounts; nor may all countries have the domestic legal authority to make these assets available for assisting in the reconstruction of Iraq or for the benefit of the Iraqi people, however, your public support for this initiative can play an important role in advancing our collective goals. Sincerely, (SGD.) MORTON J. HOLBROOK Counselor for Economic Affairs