BSP Circular Letter

July 1, 2005 BSP CIRCULAR LETTER TO : All Banks and Non-Bank Financial Institutions Under BSP Supervision Pursuant to Anti-Money Laundering Council Resolution No. 62 (Series of 2005) dated 13 June 2005, copy attached, you are hereby directed to check carefully for the assets of Elehssan Society, the fund raising arm of Palestinian Islamic Jihad (PIJ) . Aside from being the financial conduit of PIJ, the Elehssan Society is likewise used to recruit for PIJ's operational cadre and suicide bombers. The PIJ has been designated as a Specially Designated Global Terrorist by the US Government on account of its involvement in terrorist activities like murder, extortion, money laundering, fraud and misuse of visas. It was also implicated in authorizing the 25 February 2005 terrorist attack in Tel Aviv. In accordance with Sections 7 and 9 of the Anti-Money Laundering Act, as amended, and Rule 9.3 of the Revised Implementing Rules and Regulations, you are hereby directed to submit directly to the Council reports of covered or suspicious transactions, if any, involving the Elehssan Society . For your guidance and strict implementation. (SGD.) MA. DOLORES B. YUVIENCO Sector-in-Charge ANTI-MONEY LAUNDERING COUNCIL RESOLUTION NO. 62 Whereas, this refers to the letter dated 4 May 2005 of the Government of the United States of America, through its Embassy in Manila, requesting the Philippines to check carefully for the assets of ELEHSSAN SOCIETY, the fund raising arm of Palestinian Islamic Jihad (PIJ) in Gaza and the West Bank, and to freeze the same should any be found. Whereas, PIJ has been designated as a Specially Designated Global Terrorist by the US Government and is also named on the EU's list of terrorist entities. According to an indictment filed in February 2003, in the United States district Court in the Middle District of Florida, PIJ and Elehssan's objectives include murder, extortion, money laundering, fraud and misuse of visas. Whereas, evidence available to the US corroborates that PIJ in Damascus, Syria was implicated in authorizing the 25 February 2005 terrorist attack in Tel-Aviv. PIJ leadership in Damascus, Syria controls all PIJ officials, activists and terrorists in the West Bank and Gaza. DHaEAS Whereas, in addition to PIJ's use as a financial conduit, Elehssan is likewise used to recruit for its operational cadre. To support its recruitment efforts, PIJ provided money to run a summer camp project in the West Bank. The aim of at least one PIJ-run summer camp is the recruitment of suicide bombers. 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 ELEHSSAN SOCIETY 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. 13 June 2005, Manila, Philippines. EcICDT (SGD.) AMANDO M. TETANGCO, JR. Acting Chairman (Officer-In-Charge, Bangko Sentral ng Pilipinas) (SGD.) FE B. BARIN Member (Chairperson, Securities and Exchange Commission) (SGD.) BENJAMIN S. SANTOS Member (Commissioner, Insurance Commission)