Anti-Money Laundering Council (AMLC) Resolution No. 11 dated 20 February 2008

March 4, 2008 BSP CIRCULAR LETTER NO. CL-2008-013 TO : All Banks and Non-Bank Financial Institutions Under BSP Supervision SUBJECT : Anti-Money Laundering Council (AMLC) Resolution No. 11 dated 20 February 2008 Pursuant to Anti-Money Laundering Council Resolution No. 11 dated 20 February 2008, you are hereby informed that on 16 January 2008, the 1267 UN Security Council Committee approved the addition of the names of Hamid Al-Ali, Jaber Al-Jalamah and Mubarak Mushakhas Sanad Al-Bathali to the consolidated list of entities and individuals associated with the Al-Qaida, the Taliban or Usama bin Ladin subject to UN Security Council-mandated sanctions for their being associated with terrorists. Under the same resolution, all covered institutions are required to submit within five (5) working days from receipt of copy of said resolution, reports of covered or suspicious transaction, if any, involving Hamid Al-Ali, Jaber Al-Jalamah and Mubarak Mushakhas Sanad Al-Bathali or by persons acting on their behalf. cDICaS In accordance with Sections 7 and 9 of the Anti-Money Laundering Act (AMLA) of 2001, as amended, and Rule 9.3 of the Revised Implementing Rules and Regulations, you are hereby directed to submit directly to the AMLC reports of covered and suspicious transaction, if any, involving the above named individuals. For your guidance and strict implementation. ESTCDA (SGD.) NESTOR A. ESPENILLA, JR. Deputy Governor Anti-Money Laundering Council RESOLUTION NO. 11 Series of 2008 In a letter dated 25 January 2008, the Government of the United States of America, through its Embassy in Manila, requested the Anti-Money Laundering Council (AMLC) to check carefully for funds, financial assets or economic resources, including property or interests in property owned or controlled directly or indirectly by the following individuals belonging to or associated with Usama bin Laden, the Taliban and/or the Al-Qaida organization: 1. HAMID AL-ALI; 2. JABER AL-JALAMAH; and 3. MUBARAK MUSHAKHAS SANAD AL-BATHALI. Information available to the US Government disclosed the following: 1. HAMID AL-ALI is a Kuwait-based terrorist facilitator who has provided financial support for Al-Qaida affiliated groups seeking to commit acts of terrorism in Kuwait, Iraq and elsewhere. HAMID AL-ALI was a religious leader and financier for a Kuwait-based terrorist cell that plotted to attack U.S. and Kuwaiti targets in early 2005. In addition to financial support and recruiting services, HAMID AL-ALI also provided opportunities for potential recruits to obtain explosives training in 2004. He also used his website to provide technical advice for making explosives, chemical and biological weapons; 2. JABER AL-JALAMAH is a Kuwait-based terrorist facilitator who has provided financial and logistical support to the Al-Qaida network in Afghanistan, Iraq and Kuwait. As early as 2004, JABER AL-JALAMAH was coordinating a recruitment effort to send fighters and funds to Al-Qaida in Iraq. He facilitated travel for men he recruited and provide suicide bombers, anti-coalition fighters and couriers in Iraq that carried the funds he collected for provision to the terrorist groups, JABER AL-JALAMAH's role with Al-Qaida includes dealing personally with Usama bin Laden. CASIEa 3. MUBARAK MUSHAKHAS SANAD AL-BATHALI is a Kuwait-based terrorist facilitator that serves as a fundraiser and recruited for the Al-Qaida network. He has spoken at several mosques in Kuwait to raise funds for provision to Al-Qaida operatives. As of 2006, MUBARAK MUSHAKHAS SANAD AL-BATHALI continues to facilitate travel for extremists planning to fight in Iraq and Afghanistan. On 16 January 2008, the 1267 UN Security Council Committee 1 approved the addition of the names of HAMID AL-ALI, JABER AL-JALAMAH AND MUBARAK MUSHAKHAS SANAD AL-BATHALI to its Consolidated List (Al-Qaida section) The inclusion of HAMID AL-ALI, JABER AL-JALAMAH AND MUBARAK MUSHAKHAS SANAD AL-BATHALI in the list of the UN Security Council Committee validates their being associated with terrorists. United Nations Security Council Resolution (UNSCR) 1373 adopted by the Security Council at its 4385th meeting on 28 September 2001 provides: "Acting under Chapter VII of the Charter of the United Nations, 1. Decides that all States shall: (a) Prevent and suppress the financing of terrorist acts; (b) Criminalize the willful provision or collection, by any means, directly or indirectly, of funds by their nationals or in their territories with the intention that the funds should be used, or in the knowledge that they are to be used, in order to carry out terrorist acts; (c) Freeze without delay funds and other financial assets or economic resources of persons who commit, or attempt to commit, terrorist acts or participate in or facilitate the commission of terrorist acts; of entities owned or controlled directly or indirectly by such persons; and of persons and entities acting on behalf of, or at the direction of such persons and entities, including funds derived or generated from property owned or controlled directly or indirectly by such persons and associated persons and entities; (d) Prohibit their nationals or any persons and entities within their territories from making any funds, financial assets or economic resources or financial or other related services available, directly or indirectly, for the benefit of persons who commit or attempt to commit or facilitate or participate in the commission of terrorist acts, of entities owned or controlled, directly or indirectly, by such persons and of persons and entities acting on behalf of or at the direction of such persons." TECIHD Section 7 (1) of R.A. 9180, as amended, provides: "SEC. 7. Creation of Anti-Money Laundering Council (AMLC) The Anti-Money Laundering Council is hereby created and shall be composed of the Governor of the Bangko Sentral ng Pilipinas as chairman, the Commissioner of the Insurance Commission and the Chairman of the Securities and Exchange Commission as members. The AMLC shall act unanimously in the discharge of its functions as defined hereunder: ACTIcS (1) to require and receive covered or suspicious transaction reports from covered institutions; Moreover, the Revised Implementing Rules and Regulations of the Anti-Money Laundering Act of 2001, as amended, provide: "Rule 13.7.2. Authority to Assist the United Nations and other International Organizations and Foreign States. The AMLC is authorized under Section 7 (8) and 13 (b) and (d) of the AMLA to receive and take action in respect of any request of foreign states for assistance in their own anti-money laundering operations. It is also authorized under Section 7 (7) of the AMLA to cooperate with the National Government and/or take appropriate action in respect of conventions, resolutions and other directives of the United Nations (UN), the UN Security Council, and other international organizations of which the Philippines is a member. However, the AMLC may refuse to comply with any such request, convention, resolution or directive where the action sought therein contravenes the provision of the Constitution or the execution thereof is likely to prejudice the national interest of the Philippines. 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. HDaACI The Council resolved to require all covered institutions to submit within five (5) working days from receipt hereof, reports of covered or suspicious transaction, if any, involving HAMID AL-ALI, JABER AL-JALAMAH AND MUBARAK MUSHAKHAS SANAD AL-BATHALI or by persons acting on their behalf. The Bangko Sentral ng Pilipinas, the Securities and Exchange Commission and the Insurance Commission are requested to circularize this Resolution among all covered institutions under their respective jurisdictions. 20 February 2008, Manila, Philippines. AHSEaD (SGD.) AMANDO M. TETANGCO, JR. Chairman (Governor, Bangko Sentral ng Pilipinas) (SGD.) FE B. BARIN (SGD.) EDUARDO T. MALINIS Member Member (Chairperson, Securities and Exchange (Commissioner, Insurance Commission) Commission) Footnotes 1. UN Security Council SC/9229 dated 17 January 2008. THDIaC