Directive of the AMLC (Res. No. 01 dated 16 January 2006) to all banks and NBFIs to check and report to the Council covered or suspicious transactions involving the Democratic People's Republic of Korea and/or Banco Delta Asia SARL

CIRCULAR LETTER Series of 2006

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

Subject : Anti-Money Laundering Council (AMLC) Resolution No. 01 Dated 16 January 2006

Pursuant to Anti-Money Laundering Council Resolution No. 01 (Series of 2006) dated 16 January 2006, copy attached, we are furnishing you a copy of the Advisory Notice issued by the United States Department of Treasury. The Advisory Notice seeks to warn all concerned that the Democratic People's Republic of Korea (DPRK), acting through government agencies and associated front companies, is engaged in illicit activities and may be seeking banking services elsewhere following a finding that Banco Delta Asia SARL ("Banco Delta Asia") is a financial institution of "primary money laundering concern".

Based on said Advisory Notice, Banco Delta Asia has provided financial services to North Korean Government Agencies and associated front companies that are known to have engaged in illicit activities. These North Korean entities are said to have engaged in currency counterfeiting, narcotics trafficking, production and dissemination of counterfeit cigarettes, and the laundering of related proceeds, as well as weapons of mass destruction and missile proliferation.

Foregoing considered, you are hereby requested to report directly to the Anti-Money Laundering Council any transactions related to the DPRK and/or Banco Delta Asia SARL.

For you information and guidance.

NESTOR A. ESPENILLA, JR. Deputy Governor