Anti-Money Laundering Council (AMLC) Resolution No. 087

MEMORANDUM Series of 2002

TO: ALL BANKS AND OFF-SHORE BANKING UNITS

For your information, quoted hereunder is Resolution No. 087 dated June 21, 2002 of the Anti-Money Laundering Council (AMLC), created under the provisions of Republic Act (R.A.) No. 9160, the Anti-Money Laundering Act of 2001 (AMLA).

"RESOLUTION NO. 087

The Council, by unanimous vote, decided as follows:

WHEREAS, the Philippines is a member of the United Nations and is a signatory to the United Nations Convention on the Suppression of Terrorism and Terrorist Financing;

WHEREAS, the United Nations Security Council has issued Resolution No. 1373 adopted at its 4385th meeting on 28 September 2001, and Resolution No. 1269 adopted at its 4053rd meeting on 19 October 1999, calling on all member States to take all necessary steps to prevent and suppress terrorist acts and the financing of terrorist acts;

WHEREAS, the United Nations Security Council has likewise issued Resolution No. 1390 (2002) declaring that all States are required to ensure that the following three measures are applied with immediate effect to all individuals and entities included in the Committees Consolidated List: (1) Freeze without delay any funds and other financial assets or economic resources; (2) Prevent the entry into or the transit through their territories; (3) Prevent the direct or indirect supply, sale or transfer of all arms and related material; spare parts and technical advice, assistance or training related to military activities;

WHEREAS, the United Nations Security Council has issued Lists of Names of terrorist individuals, organizations and/or groups and the United States of America, through its President, George W. Bush, has issued Executive Orders, listing down names of terrorist individuals and entities, and require all states to submit reports in relation to any of the terrorist individuals, organizations or groups listed therein; WHEREAS, the Anti-Money Laundering Act of 2001 (AMLA) has provided as one of its unlawful activities or predicate crimes, under Section 3 (i), hijacking, destructive arson and murder perpetrated by terrorists against non-combatant persons and similar targets;

WHEREAS, Sections 2, 7 and 13 of the AMLA and Rule 7.2 (8) of the Implementing Rules and Regulations authorize the Council to receive and take action in respect of any request made by foreign states for assistance in anti-money laundering operations relative to conventions, resolutions and other directives of the United Nations (UN), the UN Security Council, and other international organizations of which Philippines is a member;

RESOLVED:

(1) To require supervising authorities of the AMLA, namely the Bangko Sentral ng Pilipinas (BSP), the Securities and Exchange Commission (SEC) and the Insurance Commission (IC) to disseminate among covered institutions under their respective jurisdictions, all UN Security Council Resolutions and US Executive Orders and their attachments and/or lists relative to terrorism and terrorist financing;

(2) To require supervising authorities to direct the covered institutions under their respective jurisdictions to submit covered transaction reports and suspicious transaction reports involving any terrorist individual(s), organizations or groups, listed therein directly to the Council, in accordance with Section 9 of the AMLA, Rules 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.

June 21, 2002, Manila, Philippines.

(SGD.) RAFAEL B. BUENAVENTURA Chairman

(SGD.) LILIA R. BAUTISTA Member

(SGD.) EDUARDO T. MALINIS Member"

Pursuant to the foregoing resolution, all banks and off-shore banking units concerned shall file with the Anti-Money Laundering Council the necessary reports of suspicious and covered transactions with any individual, group, organization or entity named in the United States Terrorist Lists in accordance with Rules 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.

Copies of the Terrorist Lists issued by the United States Government on April 25, May 8; and May 15, 2002 are hereto attached for reference.

RAFAEL B. BUENAVENTURA Governor