Anti-Money Laundering Council (AMLC) Resolution No. 43 dated 17 May 2006

ina. MEMORANDUM

OFFICE OF THE DEPUTY GOVERNOR SUPERVISION AND EXAMINATION SECTOR

CIRCULAR LETTER NO. CL-2006-_009

To ALL BANKS AND NON-BANK FINANCIAL INSTITUTIONS UNDER BSP SUPERVISION

Subject Anti-Money Laundering Council (AMLC) Resolution No. 43 dated 17 May 2006

Attached is the Anti-Money Laundering Council (AMLC) Resolution No. 43

Financial Crimes Enforcement Network (FinCEN), United States Department of dated 17 May 2006 regarding the Advisory Notice dated 10 April 2006 issued by the

Treasury, warning against a potential money laundering threat involving Belarusian President Alexander Lukashenko, other government senior regime elements and senior executives in state-owned enterprises, acting individually or through government agencies and associated front companies, who are purportedly seeking to move misappropriated Belarusian state assets as well as proceeds from illicit arms sales to or through the U.S. financial system.

FinCEN also designated Infobank, formerly known as National Bank of Belarus and conducting business and other activities as PJSc Trustbank, as a foreign financiat institution of primary money laundering concern.

For your guidance.

MA. DOLORES B. YUVIENCO Velorax b Sector-in-Charge lmns

June 2006

Att.:A/S

PANANALAPING MATATAG, BANSANG PANATAG

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

Anti-Money Laundering Council Bangko Sentral ng Pilipinas Complex Manila, Philippines

RESOLUTION NO. 43. Series of 2006.

senior. executives in state-owned enterprises, acting individually or through to move misappropriated Belarusian state assets as well as proceeds from illicit arms sales to or through the U. S. financial system: financial institutions against a potential money taundering threat involving Belarusian Department of Treasury issued an Advisory Notice (copy attached) warning afl U. S. President Alexander Lukashenko, other government senior regime elements and government agencies and associated front companies, who are purportedly seeking The Financial Crimes Enforcement Network (FinCEN), United States

financiai institution of primary money laundering concern. Belarus and conducting business and other activities as PJSC Trustbank, as a foreign FinCEN also designated Infobank, formerly known as National Bank of

covered institutions under their respective jurisdictions a copy of the said Advisory Notice, for their information and guidance. Supervising Authorities, namely, the Bangko Sentral ng Pilipinas, the Securities and Exchange Commission and the Insurance Commission, to disseminate among all WHEREFORE, the Council resoives, as it hereby resolves, to require the

/Z. May 2006, Manila, Philippines.

RAS 2

{Governor, Bangko Sentral ng Pilipinas) Amando m. tetangco, Jr. Chaiman

(Chairperson, Securities and Exchange Commission) FE B.BARIN b Member EVANGELINE CRISOSTOMO-ESCOBILLO (Commissioner, Insurance Commission) CruIm Member

Finanicial Crimes Enforcement Network Department of the Treasury.

Advisory

FIN:2006-G002 Issued: Subject: Guidance to Financial Institutions on the Provision of Engaged inTllicit Activities April 10, 2006 Financial Services to Belarusian Senior Regime Elements

The Financial Crimes[Enforcement Network is issuing this advisory to U.S. financial proceeds from illicit arms!sales to or through the U.S. financial system. institutions so that they may iguard against a potential money laundering threat involving owned enterprises) acting individually or through government agencies and associated front companies, seeking to move misappropriated Belarusian state assets as well as Belarusian- government senior: regime elements (including senior executives in state-

.associated with the fraudulent.March 19" Belarusian presidential election and related human rights abuses, the United States and the European Union have declared that acquired through illicit arms sales. other senior Belarusian (government officials, -and senior Belarusian state business well as arms saies to states of concern -- including state sponsors of terrorism -- may now be seeking to move:illicitly acquired financial assets abroad in advance of the imposition diplomatic and financial sanctions will be imposed against President Lukashenko and other Belarusian seniof regime: elements, who-may attempt to evade the sanctions by moving the proceeds of corruption, other..misappropriated state assets, and proceeds The U.S. Department of the Treasury has concerns that President Alexander Lukashenko, executives, having been engaged in the abuse and theft of Beiarusian public resources as of international financiai sanctions on Belarus."-In particular, in response to irregularities

Consistent with their anti-money laundering program obligations pursuant to 31 C.F.R. part 103, financial institutions are reminded of the requirement to impiement appropriate risk-based policies,: procedures, and processes, including conducting customer due diligence on a risk-assessed-basis to aid in the identification of potentially suspicious transactions.

in 31 C.F.R. part 103, if a finiancial institution knows, suspects, or has reason to suspect other violation of law or regulation, the financial institution should then file a Suspicious that a transaction involves funds derived from illegal activity or that a customer has otherwise engaged in activities indicative of money laundering, terrorist financing, or Activity Report. Additionally, consistentjwith the standard for reporting suspicious activity as provided for

Financial institutions are reminded also of their responsibilities regarding the provision of private banking services to! nion-U.S. persons pursuant to section 312 of the USA PATRIOT Act,: which requires banks, brokers or dealers in securities, futures commission merchants and introducing brokers in commodities, and mutual funds to establish and 'maintain a due diligence program for such private banking accounts that is reasonably designed to detect and report any known.or suspected money laundering or other suspicious activity. ! Included in this requirement is the duty to conduct enhanced scrutiny of any private banking account that is maintained for senior:foreign political figures, their .immediate family members, or persons widely and publicly known to be close associates of such ihdividuais in order to detect and report the proceeds of foreign corruption.

Finally, financial institutions are reminded that, pursuant to section 3rl' of the USA PArRIOT Act, the Financial: Crimes Enforcement Network has issued a proposed rulemaking that included a finding that,Infobank,tone of the largest banks in Belarus and institution:of primary moneyflaundering:concerntand that would seek to impose a special of which the Belafusian government is a principal shareholder, is a foreign financial

measure prohibiting the (opening or .maintaining of correspondent accounts for or on behalf of Infobank.? Additionally, financial institutions are advised that in February 2005 the National Bank jof Belarus(renamed Infobank#Infobank now conducts its business and other activities as TfS$fustbarik, which is headquartered inMinsk, Belarus.

This advisory is consistent with the Department of the Treasury's efforts to ensure that U.s. financial institutions:are not used as a conduit for laundering the proceeds of financial and other. crimes, fincluding corruption. We encourage financial institutions worldwide to.take similar precautions.

Financial institutions with jquestions about this advisory may contact the Financial Crimes Enforcemeht Network at (800) 949-2732.

.*

2 See 69 FR 51973 (Aug. 24,2005); 31 U.S.C. 5318A 1 See 71 FR 496 (Jan. 4, 2006); 3 1. U.S.C. 5318(i).