BSP Circular Letter

August 24, 2005 BSP CIRCULAR LETTER TO : All Banks and Non-Bank Financial Institutions Under BSP Supervision Attached is a copy of Resolution No. 89 dated 15 August 2005 issued by the Anti-Money Laundering Council relative to the request of the Government of the United States of America for information about the Movement for Islamic Reform in Arabia (MIRA) , including the blocking of its assets. The United States Department of the Treasury has designated the MIRA, a UK based Saudi oppositionist organization for providing material support to the Al-Qaida. It is under the ideological and operational control of Al-Qaida-affiliated Saad al-Faqih who is also said to be associated with Usama Bin Laden and the Taliban. MIRA also serves as Al-Faqih's vehicle to propagate support for the Al-Qaida In view thereof, all banks and non-bank financial institutions under BSP supervision are hereby directed to submit directly to the Council reports of covered or suspicious transactions, if any, involving the Movement for Islamic Reform in Arabia (MIRA) in accordance with Sections 7 and 9 of the Anti-Money Laundering Act (AMLA), as amended, and Rule 9.3 of the Revised Implementing Rules and Regulations. HDaACI Thank you for your cooperation. (SGD.) NESTOR A. ESPENILLA, JR. Deputy Governor ANTI-MONEY LAUNDERING COUNCIL RESOLUTION NO. 89-05 Whereas, in a letter dated 19 July 2005, the Government of the United States of America, through its Embassy in Manila requests the Philippines for information including the blocking of assets of the Movement for Islamic Reform in Arabia (MIRA). Whereas, the US Department of the Treasury has designated the MIRA, a UK based Saudi oppositionist organization, for providing material support to the al-Qaida. MIRA is run by al-Qaida-affiliated Saad al-Faqih, who was designated pursuant to EO 13224 by the Department of Treasury on 21 December 2004 and is included in the United Nations 1267 Committee list of individuals/entities associated with Usama bin Laden (UBL) or members of al-Qaida or the Taliban. Whereas, MIRA is under the ideological and operational control of al-Faqih and is his main vehicle to propagate support for the al-Qaida network. MIRA's 1995 founding statement explicitly states that the organization is not limited to peaceful means in the pursuit of its objectives. Whereas, information shows that statements on the MIRA website, including messages from UBL and Abu Mus'ab al Zarqawi, are intended to provide ideological and operational support to al-Qaida affiliated networks and potential recruits. Whereas, in 2003, MIRA and Faqih received approximately $1 million in funding through Abdulrahman Alamoudi. According to information available to the US Government, the September 2003 arrest of Alamoudi was a severe blow to al-Qaida, as Alamoudi had a close relationship with al-Qaida and had raised money for al-Qaida in the United States. In a 2004 plea agreement, Alamoudi admitted to his role in an assassination plot targeting the Crown Prince of Saudi Arabia and is currently serving a 23-year sentence. Whereas, al Faqih has maintained associations with the al-Qaida network since the mid 1990's, including with Khaled al Fawwaz, who acted as UBL's de facto representative in the United Kingdom and was associated with the 1998 East Africa embassy bombings. Whereas, the provisions of the United Nations Security Council Resolution (UNSCR) 1373 require UN member states to freeze terrorist assets without delay and to prohibit their nationals or persons in 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. Wherefore, the Council resolves, as it is hereby resolved, to require the Supervising Authorities, namely: the Bangko Sentral ng Pilipinas, the Securities and Exchange Commission, and the Insurance Commission to circularize among all covered institutions under their respective jurisdictions, copy of this Resolution and to direct the covered institutions to submit directly to the Council reports of covered or suspicious transactions, if any, involving the Movement for Islamic Reform in Arabia (MIRA) in accordance with Sections 7 and 9 of the Anti-Money Laundering Act (AMLA), as amended and Rule 9.3 of the Revised Implementing Rules and Regulations and other related or applicable rules, regulations, circulars and operating manuals promulgated by the Supervising Authorities. cDTCIA 15 August 2005, Manila, Philippines. (SGD.) AMANDO M. TETANGCO, JR. Chairman (Governor, Bangko Sentral ng Pilipinas) (SGD.) FE B. BARIN Member (Chairperson, Securities and Exchange Commission) (SGD.) BENJAMIN S. SANTOS Member (Commissioner, Insurance Commission)