Anti-Money Laundering Council Resolution No. 65 dated 22 June 2009

Banc Entral ne nas

SUPERVISION AND EXAMINATION SECTOR OFFICE OF THE DEPUTY GOVERNOR

CIRCULAR LETTER NO. CL-2009-048

To All Banks and Non-Bank Financial institutions Under

BSP Supervision

Subject Anti-Money Laundering Council Resolution No. 65 dated 22 June 2009

under Section 7(1) of the Anti-Money Laundering Act of 2001, as amended, and The Anti-Money Laundering Council (AMLC), in the exercise of its authority

Rule 13.7.2 of the Revised impiementing Ruies and Regulations, issued Resolution

reports of covered or suspicious transactions, if any, involving BEKKAY No. 65 dated 22 June 2009 directing all covered institutions to submit to the AMLC

HARRAcH.

Taliban Sanctions Committee approval on 27 May 2009 of the addition of BEKKAY freeze, travel ban and arms embargo set out in paragraph 1 of Security Council Resolution 1822 (2008) adopted under Chapter VIl of the Charter of the United HARRAcH to its Consolidated List of individuals and entities subject to the asset The basis of the AMLC Resolution was the Security Council Ai-Qaida and

Nations.

guidance and strict implementation. Attached is a copy of AMLC Resolution No. 65 dated 22 June 2009 for your

NESTOR A. ESPENILA JR

Deputy Governor

C 2009

Att.: A/S

A. Mabini St., Malate 1004 Manila, Philippines Trunkline (632) 524-70-11 URL: www.bsp.gov.ph c-mail: [email protected] PANANALAPING MATATAG, BANSANG PANATAG

Anti-Money Laundering Council

Bangko Sentral ng Pilipinas Complex Manila, Philippines

RESOLUTION NO. 65

Series of 2009

in its Memorandum dated 17 June 2009, the AMLC Secretariat (AMLCS} reported to the Council that:

On 27 May 2009, the Security Council Al-Qaida and Taliban SanctionsCommittee approvedthe addition of BEKKAY HARRACH to its Consolidated List of individuals and entities

paragraph 12 of Security Council Resolution 1822 (2008) adopted subiect to the asset freeze, travel ban and arms embargo set out in under Chapter Vil of the Charter of the United Nations.

The detaiis of the addition approved by the United Nations Security Council Ai-Qaida and Taliban Sanctions Committee on 27 May 2009 are as foliows:

Name DOB :BEKKAY.HARRACH 4 Sep. 1977:

with respect to Al-Qaida, Usama bin Laden and the Taliban, and other individuals, groups, undertakings, 21. Decides that all States shall (ake the measures as previously imposed by paragraph 4(b) of resolution 1267 (1999): paragraph 8(c) of resolution 1333 (2000), and paragraphs } and 2 of resoiution 1390 (2002). Security Council, SC/9667

and entities associated with them, as referred to in the list crcatcd pursuant to resolutions 1267 (1999) and 1333 (2000) (the "Consolidated Iist"):

(a) Freeze withont delay the funds and other financial assets or economic rcsources of these individuals, groups, undertakings and entities, including funds dcrived from property owned or controlied directly or indirectly, by thein or by persons acting on their behalf or at their direction, and ensure that neither these nor any other funds, financial assets or economic resources are made available. directly or indirectly for such persons' benefit, or by their nationals or by persons within their territory:

(b) Prevent the entry into or transit through their territories of these individuals. provided that nothing in this paragraph shall oblige any State to deny entry or require the departure from its territories of its own nationais and this paragraph shall not apply where entry or transit is nccessary for the fulfillment of a judicial process or the Committee determincs on a case-by-casc basis only that entry or transit is justified:

(c) Prevent the direct or indirect suppty, sale, or transfer, to these individuals. groups, undertakings and entities from their territories or by thcir nafionals outside their territories, or using their ffag vesscls or aircraft. of arms and rclaied inateriel of all types including weapons and ammunition, military vehicles and cquipment paramilitary equipment, and spare parts for the aforementioned and technical advice. assistance. Or training related to mtitary activities.

POB Berkane, Morocco: A.k.a. Abu Tatha al Maghrabi; al Hafidh Abu Talha der; Deutsche ("the German"); Nationality German:

National ID Passport NO. No. German passport number 5208118575 issued in Bonn valid until 7 Sep. 2013; German nationai identity card number (Bundespersonalausweis 5209243072, issued in Bonn, Germany Nt.

valid unti! 7 Sep. 2013: and German driving licence number J17001W6z12 issued in Bonn, Germany

Listed on 27 May 2009: Other information Believed to be in the Afghanistan/Pakistan border area (as at Apr. 2009). Member of AI-Qaida (QE.A.4.01.), reportedly since at

least March 2007.

in accordance with Section 6, paragraph (g) of the Committee's Guidelines for the Conduct of its Work, the publicly releasable portion of the statement of case detailing the bases for listing of the above-mentioned individual, as provided by the designating State(s), is inciuded herewith (statement of case in italic).

"With the heip of a person who has been charged by a German court with smuggling humans for Al Qaeda, Bekkay HARRACH ieft Germany in January 2007 to travel to an Al Qaeda training camp in the Afghan-Pakistani border region. if he had not already joined Al Qaeda, he did so there and expressed his willingress to take part in military training in order to fight on behalf of Al Qaeda.

In January 2009 at the latest, HARRACH provided the German narration for a video entitled "Das Rettungspaket fur Deutschland" (The rescue package for Germany), which was produced by Al Qaeda's media agency As-Sahab, in this way disseminating Al Qaeda's demands and nessage to the German peopie. This video, produced with HARRACH's assistance, was secured on the al-falluiah website, known for distributing Islamist content, on 17 January 2009 and Jater found in several Internet forums.

2

In the video, HARRACH discusses Germany's social, economic and poiitical situation. He announces that the German troops in Afghanistan should expect to be attacked by Al Qaeda and their allies, the Taliban, and links this announcement to an appeal to the German population to make the right choice in the 2009 Bundestag elections. He also states that the Muiahedin are not interested in a conflict with Germany, but that Germany wouid not be spared if it did not stay away from "evir". From the context, it is apparent that with "evil", he is referring to Germany's role in the fight against international terrorism in general and its cortribution to the coalition troops in Afghanistan in particular.

In another Internet video distributed via the Al Qaeda media office on 26 February 2009 entitled "Der Islam und die Finanzkrise"(isiam and the financial crisis), HARRACH presents his view of the causes and effects of the giobal finance and econornic crisis. He calis it a punishment by God and says the only way to solve it is by introducing a social order based on the Koran and Sharia iaw. In the video, Harrach says that future staternents will be forthcoming via As-Sahab.

According to investigations by the Federal Public Prosecutor, there is good reason to believe that HARRACH has been a member of the foreign terrorist organization Al Qaeda since March 2007. The threats he has distributed via the Al Qaeda media office demonstrate his willingness as a member of Al Qaeda to participate in its terrorist activity all the way to suicide attacks. "

The inclusion of BEKKAY HARR4CH in the list of the UN Security Council validates his being associated with terrorists.

United Nations Security Council Resolution (UNSCR) 1373 adopted by the Security Council at its 4385th meeting on 28 Septermber 2001 provides:

"Acting under Chapter VII of the Charter of the United atios

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, directiy or indirectly, of funds by their nationals or in their territories with the intention that the funds should be used, or in the knowiedge that they are to be used, in order to carry out terrorist acts:

(c) Freeze without deiay 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 controfled directly or indirectly, by such persons arid of persons and entities acting on behalf of or at the 'direction of such persos.

Section 7(1) of R.A. 9160, 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 hereuder

(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 armended, provide:

"Rule 13.7.2. Authority to Assist the United Nations and other International Organizations and Foreign Stafes. -- The AMLC is authorized under Section 7 (8) and 13 (b) and (d) of the AMLA to

A

receive and take action in respect of any reguest 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 Councii. 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 nationai 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.

The Council resolved to:

Laundering Council reports of covered or suspicious transactions, if any ((1) Direct all covered institutions to submit to the Anti-Money

involving BEKKAY HARRACH; and

Resolution to all covered institutions under their respective jurisdictions. 2) Request the Supervising Authorities to disseminate copies of this

22 June 2009, Manila, Philippines.

Amando m. tetangco, Jr.

Chairman (Governor, Bangko Sentral ng Pilipinas)

(Chairman, Securities and Exchange Commission) E B.BARIN T A Menber (Commissioner, Insurance Commission) EduArdo t. MAliniS Member

5