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. 384 dated 29 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 7 June 2004 addressed to BSP Governor Rafael B. Buenaventura, to freeze all assets of the following individual and entities which are suspected of supporting and financing terrorist activities: 1. Aqeel Abdulaziz Al-Aqil 2. Al-Haramain, Afghanistan 3. Al-Haramain, Albania 4. Al-Haramain, Bangladesh 5. Al-Haramain, Ethiopia 6. Al-Haramain, The Netherlands 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 and terrorist foundations. For your strict compliance. bspcda2004 (SGD.) ALBERTO V. REYES Deputy Governor RESOLUTION NO. 384 The Saudi Arabia-based Al-Haramain Islamic Foundation (AHF) represents itself as a private, charitable, and educational organization dedicated to promoting Islamic teaching throughout the world. It is one of the principal Islamic non-governmental organizations (NGO's) active throughout the world. Funding generally comes form grants from other countries, individual muslim benefactors, and special campaigns, which selectively target Muslim-owned business entities around the world as sources for donations. TCaEAD Aqeel Abdulaziz Al-Aqil, a founder and long-time leader of Al-Haramain is a suspected Al-Qaida supporter. As Al-Haramain's founder and leader, Al Aqil controlled Al-Haramain and was responsible for all Al-Haramain activities, including its support for terrorism. Under Al-Aqil's leadership, numerous Al-Haramain field offices and representatives operating throughout Africa, Asia and Europe have provided financial and logistical support to the Al-Qaida network and other terrorist organizations designated by the United States and, in some cases, included in the UN 1267 Committee's consolidated list of individuals/entities subject to UN Security Council Sanctions. Some of these organizations include the Egyptian Islamic Jihad (EIJ), Jemaah Islamiyah, Al-Ittihad Al-Islamiya (AIAI), Lashkar E-Taibah, and Hamas all of which are designated terrorist organizations and all of which have received funds from AHF, its branches, or local intermediaries. Pursuant to his authority under US Executive Order 13224, President George Bush, on 2 June 2004, designated domestically and froze the assets of five branch offices of the Al-Haramain Islamic Foundation located in Afghanistan, Albania, Bangladesh, Ethiopia, the Netherlands, and of Al-Haramain's former leader Aqeel Abdul Aziz Al Aqil, for engaging in activities on behalf of and in support of Al-Qaida. On even date, United States requested the UN 1267 Sanctions Committee to add the names of the aforesaid branch offices and former leader 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. On 9 June 2004, the Government of the United States, through its Embassy in Manila, sent a letter dated 7 June 2004 addressed to Hon. Rafael B. Buenaventura, Governor, Bangko Sentral ng Pilipinas, requesting the Philippines to check for offices or financial assets belonging to the Al-Haramain Islamic Foundation and the Foundation's former leader, Aqeel Abdul Aziz Al Aqil , and to freeze the same should any be found. Information available to the US indicates that these entities and individual have provided financial, material and/or technological support to the Al-Qaida network and other designated terrorist organizations. 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 a copy of the 7 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 7 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 terrorist foundations and 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. cCTIaS 29 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 7, 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. On June 2, the United States designated domestically and froze the assets of five branch offices of the Al-Haramain Islamic Foundation (Afghanistan, Albania, Bangladesh, Ethiopia, the Netherlands) and of Al-Haramain's former leader, Aqeel Abdul Aziz Al Aqil. The five branches offices have engaged in activities on behalf of and in support of Al Qaida, therefore, on June 2 the United States requested that the UN 1267 Sanctions Committee add their names to its 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, 1333, 1455 and most recently, 1526. The U.S. and Saudi Arabia remain committed to the ongoing search for and seizure of assets belonging to Al-Haramain branches that are linked to terrorist financing. Saudi Arabia intends to join us in submission of the Al-Haramain branches to the 1267 Committee. We are enclosing a background paper that outlines the activities that support our designation. As noted above, the international coalition to combat terrorist financing has been a joint effort involving many countries. We urge you to check carefully for offices or financial assets belonging to these entities/individuals in your country. Together, we are continually strengthening the necessary institutional and regulatory infrastructure to bar access to the financial system of terrorist 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 56): NAME OF ENTITIES: AL-HARAMAIN: Afghanistan branch Afghanistan AL-HARAMAIN: Albania Branch Irfan Tomini Street, #58 Tirana, Albania AL-HARAMAIN: Bangladesh Branch House 1, Road 1, S-6 Uttara, Dhaka Bangladesh TCHcAE AL-HARAMAIN: Ethiopia Branch Woreda District 24 Kebele Section 13 Addis Ababa, Ethiopia AL-HARAMAIN: The Netherlands Branch (a.k.a. Stichting Al Haramain Humanitarian Aid) Jan Hanzenstraat 114, 1053SV Amsterdam, The Netherlands NAME OF INDIVIDUAL AL-AQIL, Aqeel Abdulaziz DOB 29 APR 1949 DESIGNATION OF FIVE BRANCH OFFICES OF THE AL-HARAMAIN ISLAMIC FOUNDATION: AFGHANISTAN, ALBANIA, BANGLADESH, ETHIOPIA AND THE NETHERLANDS, AND OF AL-HARAMAIN'S FORMER LEADER: AQEEL ABDUL AZIZ AL AQIL As the latest in our actions in the war on terrorist financing, the United States is designating five branch offices of the Al-Haramain Islamic Foundation (Al-Haramain) and the Foundation's former leader, Aqeel Abdulaziz Al-Aqil. It is our expectation that Saudi Arabia will be jointly submitting these branches to the United Nations' 1267 Al Qaida/Taliban Sanctions Committee for addition to the consolidated list of terrorists tied to Al Qaida, Usama Bin Laden and the Taliban. These branch operations and Aqeel Abdulaziz Al-Aqil, through his control of Al-Haramain, have provided financial, material, and/or logistical support to the Al Qaida network and other terrorist organizations. On March 11, 2002, the United States and Saudi Arabia initiated joint public efforts against terrorist support networks by designating and blocking the funds of the Somalia and Bosnia-Herzegovina branches of Al-Haramain, based on evidence that these branches were diverting charitable funds to terrorism. In 2003, the Saudi government ordered Al-Haramain to close all of its overseas branches. Al-Haramain stated it did close several branches. But continued monitoring by the United States and Saudi Arabia has indicated that some branches, and/or former officials associated with these branches, were either continuing to operate or had other plans to avoid these measures. Actions by the Bosnia-Herzegovina branch, added to the UN 1267 Sanctions Committee's list in March 2002, to reconstitute itself and continue operations under the name, "Vazir," is one example. Similarly, the Indonesian branch also sought to operate under an alias. To counter these and other efforts to evade scrutiny and sanctions, on December 22, 2003, the United States and Saudi Arabia announced the designation of Vazir as an alias for the Al-Haramain branch in Bosnia-Herzegovina. On January 22, 2004, the U.S. and Saudi Arabia announced the designation of Al-Haramain branches in Indonesia, Kenya, Tanzania, and Pakistan. The Saudi Arabian government made it clear to host countries that these branch offices should not be considered Saudi entities and should be treated appropriately under local law and under applicable UN Security Council resolutions. Our intent to designate five additional branches and the former A1-Haramain leader is the result of ongoing investigations to ensure that Al-Haramain's organizational structure cannot be used to support terrorism. Based upon the following information and additional classified material, the United States is designating Aqeel Abdulaziz Al-Aqil and the branches/operations of Al-Haramain located in: 1) Afghanistan 2) Albania 3) Bangladesh 4) Ethiopia 5) The Netherlands. AEcTaS We are aware that formal operations of Al-Haramain in branches located in Afghanistan, Albania and Ethiopia may have been closed down largely through the efforts of the host governments and/or Saudi Arabia. At the same time, however, there is a need to monitor and ensure that any remaining assets of the closed branches are not diverted, but frozen and prevented from being used to support terrorism. To that end, and under asset-freezing measures called for by UNSCRs 1267/1390/1526 (the Al Qaida/Taliban sanctions) and UNSCR 1373, these countries are being asked to locate and freeze any assets belonging to an entity or individual operating under the authority or auspices of the Al-Haramain Islamic Foundation based in Riyadh, Saudi Arabia. Information in the possession of the U.S. government indicates that the former leader of Al-Haramain, Aqeel Abdulaziz Al-Aqil, and the Al-Haramain branches noted above have provided financial, material and/or technological support to Usama Bin Laden's (UBL's) Al Qaida network and other designated terrorist organizations. Some reports indicate that Al-Aqil is still in a position to control or influence Al-Haramain. This individual and these entities are subject to designation under U.S. Executive Order 13224 pursuant to section 1 (d) (i) and (d) (ii) based on a determination that: They assist in, sponsor or provide financial, material, or technological support for, or financial or other services to or in support of, such acts of terrorism or those persons listed in the Annex to E.O. 13224, and They are otherwise associated with persons listed as subject to E.O. 13224. Because these targets provided support to UBL, Al Qaida, and/or the Taliban, this individual and these branches also meet the standard for inclusion in the United Nations' 1267 Sanctions Committee's consolidated list. Inclusion in the 1267 Sanctions Committee's list triggers international obligations on all member countries, requiring them to freeze the assets of these offices which have been used to provide material, financial, or technological support for designated terrorists and prevent funds being made available to them, in effect forcing the offices to cease operations. Publicly identifying these supporters of terrorism is a critical part of the international campaign to counter terrorism. Additionally, other organizations and individuals are put on notice that they are prohibited from doing business with them. Aqeel Abdulaziz Al-Aqil's Control of Al-Haramain Aqeel Abdulaziz Al-Aqil, a founder and long-time leader of Al-Haramain is a suspected Al Qaida supporter. Al-Aqil has been identified as Al-Haramain's Chairman, Director General, and President in a variety of sources and reports. As Al-Haramain's founder and leader, Al-Aqil controlled Al-Haramain and was responsible for all Al-Haramain activities, including its support for terrorism. Info ratio from arch 204 indicated Al-Aqil was reportedly no longer leading Al-Haramain activities, some reports, however, indicate Al-Aqil could still be in a position to exercise control or influence over Al-Haramain. When viewed as a single entity, Al-Haramain falls into the category of one of the principal Islamic NGO's active throughout the world providing support for the Al Qaida network and promoting militant Islamic doctrine worldwide. Under Al Aqil's leadership of Al-Haramain, numerous Al-Haramain field offices and representatives operating throughout Africa, Asia, Europe, and North America appeared to be providing financial and material support to the Al Qaida network. Terrorist organizations designated by the U.S. and/or the 1267 Committee, including Jemaah Islamiyah, Al-Ittihad Al-Islamiya, Egyptian Islamic Jihad, HAMAS, and Lashkar E-Tayyiba, received funding from Al-Haramain and used Al-Haramain as a front for fundraising and operational activities. Under Al-Aqil's leadership, Al-Haramain implemented its tasks through its offices and representatives spread through more than 50 countries around the world. Al-Haramain maintained nine general committees and several other "active committees" that included the Continuous Charity Committee, African Committee, Asian Committee, Da'wah and Sponsorship Committee, Masjid Committee, Seasonal Projects Committee, Doctor's Committee, European Committee, Internet and the American Committee, the Domestic Committee, Zakaat Committee, and the Worldwide Revenue Promotion Committee. aACEID Al-Aqil had control over the activities of Al-Haramain branches supporting terrorism. For example, after the branch office in Bosnia was designated in 2002, it immediately began efforts to avoid these sanctions. Information regarding this office is provided as a reminder of the extent to which Al-Haramain was corrupted. Despite the joint efforts of the United States and Saudi Arabia to designate the Al Qaida affiliated Al-Haramain Bosnia branch office, and the Bosnian government's efforts to close the office in June 2002, all Al-Haramain employees were ordered to avoid cooperating with Bosnian and other authorities. In 2003, Al-Haramain headquarters in Saudi Arabia provided instructions to Al-Haramain in Bosnia for the disposition of Al-Haramain assets. These instructions provided for actions contravening local and international counter terrorism laws and regulations. Al-Aqil was openly defiant, reportedly telling Saudi news media that Al-Haramain's work in Bosnia would continue. Information available to the U.S. indicates that branches of Al-Haramain have had a long history of supporting the Al Qaida network. This information includes the following: Afghanistan Al-Haramain has a long history of supporting Al Qaida in Afghanistan. In Afghanistan, Al-Haramain supported the cause of Jihad and was linked to the UBL-financed Makhtab al-Khidemat (MK), a pre-cursor organization of Al Qaida. MK has been designated both by the U.S. Government and by the UN 1267 Sanctions Committee. Following the 9-11 terrorist attacks, activities included involvement with a group of persons trained to attack foreigners in Afghanistan. This activity occurred in 2002. A journalist suspected of meeting with Al Qaida and Taliban members in Afghanistan was reportedly transferring funds on behalf of the Al Qaida-affiliated Al-Haramain, and forwarding videotapes from Al Qaida leaders to an Arabic language TV network for broadcast. Albania The U.S. has information that indicates UBL may have financed the establishment of the Al-Haramain office in Albania, which has been used as cover for terrorist activity in Albania and in Europe. In late 2000, a close associate of a UBL operative moved to Albania and was running an unnamed Al-Haramain subsidiary. In 1998, the head of Egyptian Islamic Jihad in Albania was reportedly also a financial official for Al-Haramain in Albania. This individual, Ahmed Ibrahim Al-Nagar, was reportedly extradited from Albania to Egypt in 1998. At his trial in Egypt, Al-Nagar reportedly voiced his support for UBL and Al Qaida's August 1998 terrorist attacks against the U.S. Embassies in Kenya and Tanzania. In January 2002, Salih Tivari, a senior official of the moderate Albanian Muslim community, was murdered. Ermir Gjinishi, who had been supported by Al-Haramain, was detained in connection with the murder, but no charges were filed; Albanian authorities later released him. Just prior to being murdered, Tivari informed the Al-Haramain-affiliated Gjinishi that he intended to reduce "foreign Islamic influence" in the Albanian Muslim community. Prior to his murder, Tivari controlled finances, personnel decisions, and donations within the Albanian Muslim community. This provided him significant power, enabling him to survive several attempts by extremists trained overseas to replace him or usurp his power. As of late 2002, Al-Haramain was reportedly withdrawing virtually all funding to the Albanian Muslim community. Al-Haramain in Albania was to send all proceeds from the sale of some property to the Al-Haramain headquarters in Saudi Arabia. As of late 2003, Al-Haramain was paying for, through a HAMAS member with close ties to Al-Haramain in Albania, security personnel to guard the Al-Haramain building in Albania, which had been shut down earlier in 2003. SacTAC Bangladesh Information available to the U.S. shows that a senior Al-Haramain official deployed a Bangladeshi national to conduct surveillance on U.S. consulates in India for potential terrorist attacks. The Bangladeshi national was arrested in early 1999 in India, reportedly carrying four pounds of explosives and five detonators. The terrorist suspect told police that he intended to attack U.S. diplomatic missions in India. The suspect reportedly confessed to training in Al Qaida terrorist camps in Afghanistan, where he met personally with Usama Bin Laden in 1994. The suspect first heard of plans for these attacks at the Al-Haramain office in Bangladesh. Ethiopia Information available to the U.S. shows that Al-Haramain in Ethiopia has provided support to Al-Ittihad Al-Islamiya (AIAI). In Ethiopia, AIAI has engaged in attacks against Ethiopian defense forces. AIAI has been designated both by the U.S. Government and by the UN 1267 Sanctions Committee. Ethiopia is one of the countries where Al-Haramain's website states they have operations, but there does not appear to be a formal branch office. We ask that action be taken to designate Al-Haramain in Ethiopia to ensure that individuals cannot use the name of this organization based in Saudi Arabia, or act under its auspices, within Ethiopia. The Netherlands Since 2001, Dutch officials have confirmed that the Al-Haramain Humanitarian Aid Foundation located in Amsterdam is part of the larger Al-Haramain network and that Al-Aqil is chairman of this foundation's board of directors. As was stated above, Al-Aqil was the founder and leader of Al-Haramain and was responsible for all of its activities, including its support for terrorism. Al-Aqil is being designated by the U.S. as part of this action. Identifying Information : AL-HARAMAIN: Afghanistan branch Afghanistan AL-HARAMAIN: Albania Branch Irfan Tomini Street, #58 Tirana, Albania AL-HARAMAIN: Bangladesh Branch House 1, Road 1, S-6 Uttara, Dhaka Bangladesh AL-HARAMAIN: Ethiopia Branch Woreda District 24 Kebele Section 13 Addis Ababa, Ethiopia AL-HARAMAIN: The Netherlands Branch (a.k.a. Stichting Al Haramain Humanitarian Aid) Jan Hanzenstraat 114, 1053SV Amsterdam, The Netherlands AL-AQIL, Aqeel Abdulaziz DOB 29 APR 1949