Copies of AMLC Resolutions and Letters of the United States Government

July 23, 2004 SEC MEMORANDUM CIRCULAR NO. 11-04 TO : All Covered Institutions Pursuant to Resolution Nos. 382, 383 and 384, all dated 28 June 2004, of the Anti-Money Laundering Council ("AMLC"), all covered institutions, as defined under the Anti-Money Laundering Law and its Implementing Rules and Regulations, which are under the jurisdiction of the Securities and Exchange Commission, are hereby furnished with copies of the said AMLC's resolutions and the Letters of the United States Government dated 7 June 2004, 8 June 2004 and 15 June 2004. In accordance with the same resolutions, the foregoing covered institutions are directed to submit directly to AMLC reports of any covered and suspicious transaction involving the subject of the aforementioned US Government Letters. Issued this 23rd day of July 2004, Mandaluyong City, Philippines. 2004seccd (SGD.) LILIA R. BAUTISTA Chairperson Anti-Money Laundering Council Bangko Sentral ng Pilipinas Complex Manila, Philippines 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 from grants from other countries, individual muslim benefactors, and special campaigns, which selectively target Muslim-owned business entities around the world as sources for donations. 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. 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 (Officer-in-Charge, Insurance Exchange Commission) Commission) Embassy of the United States of America Manila, Philippines 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 A1-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 cc: DFA AMLC DOF DOJ POL Dan Ricci 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 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 Al-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. 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' 1257 Sanctions Committee 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 A1-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 A1-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. 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 videotaped 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. 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, A1-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 Anti-Money Laundering Council Bangko Sentral ng Pilipinas Complex Manila, Philippines RESOLUTION NO. 383 In a letter dated 15 June 2004 addressed to the Hon. Rafael B. Buenaventura, Governor, Bangko Sentral ng Pilipinas, the Government of the United States, through its Embassy in Manila urges the Philippine government to check carefully for offices or financial assets and to subsequently freeze said assets belonging to ASSAD AMAD BARAKAT ("Barakat"), and two businesses to which he has been linked, namely: 1. CASA APOLLO 2. BARAKAT IMPORT EXPORT Information available to the U.S. Government indicates that BARAKAT is a member of the Hizballah, and is considered one of the most prominent and influential Hizballah officials in South America's tri-border area ("TBA"). He supports Hizballah military operations. In the execution of a search warrant at one of Barakat's businesses in Paraguay, a video of Hizballah military operations from a personal computer in the store was recovered. He has allegedly used strong-arm tactics and coercive measures to annually raise large sums of money, which were sent to Hizballah in Lebanon and Iran. The aforementioned businesses were used by Barakat as front companies for Hizballah activities and cells. Casa Apollo, an electronics wholesale store, was used as a cover for Hizballah fund-raising activities and as a way to transfer information to and from Hizballah operatives while the Barakat Import Export was used to raise money for Hizballah in Lebanon by mortgaging the company in order to borrow money from a bank in a fraudulent scheme. Further, Barakat has reportedly procured information about Arab community members that traveled to the United States or Israel and transmitted that information to Hizballah's Foreign Relations Department in Lebanon. Pursuant to U.S. Executive Order 13224 on terrorist financing, the United States designated and froze the assets of Barakat and the aforementioned two businesses to which he has been linked on June 10. They have no intention of forwarding these names to the UN 1267 Sanctions Committee for inclusion on its consolidated asset freeze list, as it does not appear that Barakat or his businesses are linked to Usama Bin-Laden, Al-Qaida or the Taliban. However, the provisions of United Nations Security Council Resolution (UNSCR) 1373 dated September 28, 2001 require UN member states to freeze terrorist assets without delay and to prohibit their nationals or person 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 Resolution. Pursuant thereto, the Council unanimously resolves as follows: (1) To provide the Supervising Authorities, namely: the Bangko Sentral ng Pilipinas, the Securities and Exchange Commission, and the Insurance Commission, with copy of the 15 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 15 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 ASSAD AMAD BARAKAT, and the two businesses to which he has been linked, namely: CASA APOLLO and BARAKAT IMPORT EXPORT 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. 28 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 (Officer-in-Charge, Insurance Exchange Commission) Commission) Embassy of the United States of America Manila, Philippines June 15, 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, or 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. Under U.S. Executive Order 13224 on terrorist financing, on June 10, the United States designated and froze the assets of Assad Amad Barakat, and two businesses to which he has been linked; Casa Apollo and Barakat Import Export. We do not contemplate forwarding these names to the UN 1267 Sanctions Committee for inclusion on its consolidated asset freeze list, as it does not appear that Barakat or his businesses are linked to Usama Bin-Laden, Al-Qaida or the Taliban. However, the provisions of 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. 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.) Robert Kemp A/Economic Counselor cc: AML DOF DOJ POL Dan Ricci TERRORIST NAMES DESIGNATED UNDER E.O. 13224 (LIST 58): NAME OF INDIVIDUAL: Assad Ahmad BARAKAT a.k.a.s: Assad Ahmad BARAKAT; Assad Hassan BARAKAT; Assad BARAKAT; Jach Assad Ahmad BARAKAT; Hajj Assad Ahmad; Assad Ahmed Muhammad BARAKAT DOB: March 25, 1967 POB: Lebanon Brazilian Residences (as of January 2002): Rua Taroba 1005 Beatriz Mendez Building Foz do Iguacu, Brazil Rua Rio Branco Lote 682 Quadra 13 Foz do Iguacu, Brazil Rua Xavier Da Silva 535 Edificio Martin Terro Apartment 301 Foz do Iguacu, Brazil Brazilian Residences (as of 2001): 290, Rua Silva Jardim Foz do Iguacu, Brazil Chilean Residences: "Arrecife" Apartment Building Iquique, Chile Apartment 111 Panorama Building Iquique, Chile Paraguayan Residence: Piribebuy YA, Jara Ciudad del Este, Paraguay Phone: 061-514-932 NAME OF BUSINESSES: 1. Casa Apollo Galeria Page Ciudad del Este, Paraguay 2. Barakat Import Export Ltda Iquique, Chile Tax Identification Number: AABA 670850 Y Designation of Assad Ahmad BARAKAT: and of two Businesses: Casa Apollo and Barakat Import Export Ltda: Assad Ahmad BARAKAT a.k.a.s: Assaad Ahmad BARAKAT; Assad Hassan BARAKAT; Assad BARAKAT; Jach Assad Ahmad BARAKAT; Hajj As'ad Ahmad; Assad Ahmed Muhammad BARAKAT LINKS TO HIZBALLAH: Assad Ahmad BARAKAT was identified as a significant Islamic extremist in South America's tri-border area ("TBA") as early as 1997. Detained in June 2002 by Brazil at the request of Paraguay on suspicion of tax evasion and criminal association, he was extradited to Paraguay in November 2003. In May 2004, he was convicted and sentenced to six and a half years in prison, minus two years for time already served, in Paraguay for tax evasion. According to information available to the U.S. Government, BARAKAT is a member of Hizballah, and is considered one of the most prominent and influential Hizballah officials in the TBA. He is the principal liaison in the TBA for Hizballah's Secretary General Shaykh Hasan Nasrallah. BARAKAT has long served as a treasurer for the group and has carried contributions for Hizballah on several occasions to Lebanon. BARAKAT is also reportedly the deputy to a Hizballah financial director, Ali Kazan. According to information available to the U.S. Government, as of late 2001, BARAKAT reportedly was traveling to Lebanon and Iran annually, meeting with both Hizballah Secretary General Hassan Nasrallah and Spiritual Leader Hussein Fadlallah. In addition to the reported contacts with Hizballah leadership, BARAKAT has worked closely with numerous TBA Islamic extremists and suspected Hizballah associates. According to the information available to the U.S. Government, BARAKATs personal secretary, Mazen Saleh, was reportedly a Hizballah leader in the TBA and was, according to multiple press sources, arrested on October 3, 2001 at BARAKAT's store Casa Apollo in Ciudad del Este, Paraguay. BARAKAT's executive secretary and/or close associate is Sobhi Mahmoud Fayad, a known Hizhallah member and a weapons/explosives expert, according to information available to the U.S. Government. Fayad was a high-ranking Hizballah official in Lebanon in the 1980s and continues to be a Hizballah official in the TBA. He was arrested in 1999 for surveillance of the U.S. embassy in Asuncion, and in November of 2002, Fayad was sentenced to six and a half years for tax evasion. According to information available to the U.S. Government, BARAKAT was, as of March 2001, the deputy financial director of the Husaniyya "Iman Al-Khomeini" mosque in Foz Do Iguacu, Brazil. Additionally, BARAKAT's arrest in June 2002 prompted a prominent member of the Husaniyya Mosque to prohibit anyone who is not a member of Hizballah from attending services at the mosque. Hizballah leaders in Lebanon recalled Islamic clerics Shaykh Mohsen Bilal Wehbi and Shaykh Mounir Al-Fadel back to Lebanon to discuss the arrest. Wehbi has been identified as BARAKAT's protector and is the Imam of the Husayniyya Mosque. ACTIVITIES ON BEHALF OF HIZBALLAH: According to information available to the U.S. Government, BARAKAT also supports Hizballah military operations. During the execution of a search warrant at one of BARAKAT's Ciudad del Este, Paraguay businesses, Paraguayan authorities recovered video of Hizballah military operations from a personal computer in the store. The footage depicted the detonation of explosives, some of which show people dying from these explosions. Another file included Hizballah military orders for each town and village in southern Lebanon, according to information available to the U.S. government. According to information available to the U.S. Government, BARAKAT has used strong-arm tactics and coercive measures to annually raise large sums of money, which were sent to Hizballah in Lebanon and Iran. According to information available to the U.S. Government, BARAKAT threatened TBA shopkeepers, who are sympathetic to Hizballah's cause, with having family members in Lebanon placed on a "Hizballah blacklist" if the shopkeepers did not pay their quota to Hizballah via BARAKAT on a regular basis. According to information available to the U.S. Government, BARAKAT is involved in a counterfeiting ring that distributes fake U.S. dollars to generate cash to fund Hizballah operations. As of early 2001, BARAKAT was one of two individuals reportedly in charge of distribution and sale of the counterfeit currency in the TBA. In addition to operating a counterfeiting network, BARAKAT also allegedly used wholesale import-export businesses as front companies for Hizballah activities and cells, according to information available to the U.S. Government. BARAKAT used the electronics wholesale store Casa Apollo as a cover for Hizballah fund-raising activities and as a way to transfer information to and from Hizballah operatives. BARAKAT also used his company BARAKAT Import Export to raise money for Hizballah in Lebanon by mortgaging the company in order to borrow money from a bank in a fraudulent scheme. Saltex Trading is an additional company owned in part by BARAKAT, and is believed to be used as a front company for funding Hizballah. According to information available to the U.S. Government, BARAKAT relayed information to and from Hizballah leaders in Lebanon. As of mid-2001, BARAKAT sought sensitive information about the activities of Arabs in the TBA on the request of Hizballah leaders in Lebanon, according to information available to the U.S. Government. In particular, BARAKAT procured information about Arab community members that traveled to the United States or Israel. He transmitted that information to Hizballah's Foreign Relations Department in Lebanon. According to Government of Paraguay, evidence uncovered during the raids of BARAKAT's businesses indicates that BARAKAT has been recruiting Hizballah fighters from the TBA. According to a media report, assertions that BARAKAT has recruited Hizballah operatives was based in part on the content and volume of Hizballah informational material recovered during the raids on BARAKAT's businesses. The material included disks, videotapes and CD-ROMs that depicted speeches and terrorist training, according to the media source. The official translation obtained by the media source stated that the material included videotapes of Shayakh Hassan Nasrallah, Hizballah's Secretary General, asking an audience to "explode your bodies against the enemies." BARAKAT has also regularly hosted and attended meetings of senior Hizballah TBA leaders. According to information available to the U.S. Government, BARAKAT attended a meeting of TBA Hizballah members in the fall of 2000, in Foz do Iguacu, Brazil in which TBA Hizballah members discussed Hizballah intentions to identify, locate and assassinate former members of the Army of South Lebanon (ASL) and Israelis. The group also discussed a possible effort to oust Yasir Arafat due to his decision to agree to a cease-fire. Anti-Money Laundering Council Bangko Sentral ng Pilipinas Complex Manila, Philippines RESOLUTION NO. 382 On 9 June 2004, the Government of the United States, through its Embassy in Manila, sent a letter dated 8 June 2004 addressed to Hon. Rafael B. Buenaventura, Governor, Bangko Sentral ng Pilipinas, regarding its request to check for offices or financial assets belonging to Hassan Abdullah Hersi Al-Turki and to freeze the same should any be found. Hassan Abdullah Hersi Al-Turki, also known as Hassan Turki, is a faction leader of the terrorist organization in Somalia called Al-Itihaad Al-Islamiya (AIAI). On 6 October 2001, the AIAI was included in the UN 1267 Sanctions Committee's consolidated list because of the organization's association with Al-Qaida and its support for acts of terrorism. The International Crisis Group (ICG), an independent non-profit organization headquartered in Brussels, has identified Hassan Turki as a prominent figure in AIAI. An ICG paper entitled "Somalia: Countering Terrorism in a Failed State" noted that Hassan Turki was a former military commander in lower Jubba. The paper states that the fact that Al-Qaida had contact with members of AIAI is "unquestionable". It further noted that there is evidence that "Al-Qaeda had ties with the movement in Luuq from 1991 to 1996, and again in the lower Jubba region (Ras Kiamboni) in 1997, as Al-Qaeda was preparing to attack the US Embassy in Nairobi". On 3 June 2004, pursuant to Executive Order No. 13224, the United States designated domestically and froze the assets of Hassan Abdullah Hersi Al-Turki for engaging in activities on behalf of and in support of Al-Qaida. On even date, the United States requested the UN 1267 Sanctions Committee to add the name of Hassan Abdullah Hersi Al-Turki 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. 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 copy of the 8 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 8 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 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. 28 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 (Officer-in-Charge, Insurance Exchange Commission) Commission) Embassy of the United States of America Manila, Philippines June 8, 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 3, 2004, the United States designated domestically and froze the assets of Hassan Abdullah Hersial-Turki. The above-mentioned individual has engaged in activities on behalf of and in support of Al-Qaida. Therefore, on June 3, 2004, the United States requested that the UN 1267 Sanctions Committee designate him and add his name to the Committee's 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 and most recently, 1526. We are enclosing a background paper that outlines the activities that support our designation. As noted above, the international coalition to combat the terrorist financing has been a joint effort involving many countries. We urge you to check carefully for offices or financial assets belonging to this individual in your country. Together, we are continually strengthening the necessary institutional and regulatory infrastructure to bar access to the financial system of terrorists 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 cc: DFA AMLC DOF DOJ POL Dan Ricci TERRORIST NAMES DESIGNATED UNDER E.O. 13224 (LIST 57): NAME OF INDIVIDUAL Hassan Abdullah Hersi AL-TURKI (a.k.a. Hassan Turki) D.O.B.: circa 1944 P.O.B.: Region V, Ethiopia, which is the Ogaden Region in Eastern Ethiopia FAMILY BACKGROUND: From the Ogaden clan, Reer Abdille Subclan. Designation of Hassan Abdullah Hersi Al-Turki Under Executive Order 13224 Hassan Abdullah Hersi Al-Turki, also known as Hassan Turki is a faction leader of the terrorist organization in Somalia called Al-Itihaad Al-Islamaya (AIAI), which was included on the UN 1267 Sanctions Committee's consolidated list on 6 October 2001 because of the organization's association with Al-Qaida. According to information available to the U.S. Government, including but not limited to publicly available information, Hassan Turki has been associated with Al-Qaida and has provided support for acts of terrorism. The International Crisis Group (ICG), an independent non-profit organization headquartered in Brussels, with staff on five continents, has identified Hassan Turki as a prominent figure in AIAI. An ICG paper entitled "Somalia: Countering Terrorism in a Failed State" (published May 23, 2002, and available on the Internet at www.crisisweb.org) noted that Hassan Turki was a former military commander in lower Jubba. The paper states that the fact that Al-Qaida had contact with members of AIAI is "unquestionable," and notes that there is some evidence that "Al-Qaeda had ties with the movement in Luuq from 1991 to 1996, and again in the lower Jubba region (Ras Kiamboni) in 1997, as Al-Qaeda was preparing to attack the U.S. Embassy in Nairobi." Press reports have conveyed similar information. The November 27, 2003, edition (internet version) of Corriere della Sera ran an article entitled "Italian Report Describes Al-Qaida Activities in Somalia." That article states that "Al-Qaida's real man in Somalia is Hassan Turki." An article in the November 29, 2002, edition (internet version) of the same journal entitled "Source Reports "Suspicious' Group From Somalia Set Up Terror 'Structure' in Kenya," reported that twenty individuals traveled from Somalia to Kenya to set up a structure to carry out attacks. The report stated that "The group is linked to Hassan Turki, a leading member of a Somali fundamentalist faction, Al Ittihad. Turki organized a training cap in Ras Khamboni and the disappeared without a trace. He has been reported as being in Dubai, in Yemen, and then again in Somalia. Information about Hassan Abdullah Hersi Al-Turki's association with Al-Qaida, his repeated involvement in planning and supporting acts of terrorism, and reports of his international travel, warrants the inclusion of this individual on the United Nations 1267 Sanctions Committee's Consolidated list.