Anti-Money Laundering Council (AMLC) Resolution No. 68 dated 1 August 2007

CIRCULAR LETTER NO. CL-2007 -043

To : All Banks and Non-Bank Financial Institutions Under BSP Supervision

Subject : Anti-Money Laundering Council (AMLC) Resolution No. 68 dated 1 August 2007

Investment firms with websites www.smfund.com and www.francswiss.biz , www.eaindex.com and www.globalamerika.biz , among others are reportedly engaged in internet-based Ponzi-like investment or pyramid schemes. They allegedly lure prospective investors with very high returns of up to 4.8% daily interest for a minimum investment of US$l ,000.00. They encourage their members to recruit downline investors and earn additional 10% referral fee from each downline investment. These programs normally exist for a period of time and appear to be religiously paying their investors. Thereafter, they will quickly disappear, leaving the investors, particularly those in the downlines, empty handed. The firms’ websites become inaccessible. The losing investors cannot run after the program managers who are either unknown or whose names and addresses, if mentioned in their websites, are usually fictitious.

Pursuant to Anti-Money Laundering Council Resolution No. 68 dated 1 August 2007, you are hereby warned against said internet-based Ponzi-like investment or pyramid schemes offering high-yield investment programs (HYIPs) to the public and required to post a copy of the attached warning in conspicuous places in your head office, branches and other offices.

For your guidance and strict implementation.

MA. CORAZON J. GUERRERO Sector-in-Charge