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

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SUPERVISION AND EXAMINATION SECTOR OFFICE OF THE DEPUTY GOVERNOR

CIRCULAR LETTER NO. CL- 2007 - _ 043

TO All Banks and Non-Bank Financia! Institutions Under BSP Supervision

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

Iosing investors cannot run after the program managers who are either unknown or whose names and addresses, if mentioned in their websites, are usually www.francswiss.biz, others are reportedly engaged in internet-based Ponzi-iike investment or pyramid schemes. returns of up to 4.8% daily interest for a minimum investment of Us$1,000.00 for a period of time and appear to be religiously paying their investors Thereafter, they will quickiy disappear, leaving the investors, particularly those in the downlines, empty handed. The firms' websites become inaccessible. The They encourage their members to recruit downline investors and earn additional 10% referral fee from each downline investment. These programs normally exist fictitious. Investment They allegedly lure prospective investors with very high www.eaindex.comandwww.globalamerika.biz, firms with websites www.smfund.com among and

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. August 2007, you are hereby warned against said internet-based Ponzi-like Pursuant to Anti-Money Laundering Council Resolution No. 68 dated 1

For your guidance and strict implementation.

MA. CORAZON J. GUERRERO Seltor-in-Charge

September 2007

Att: A/S

PANANALAPING MATATAG, BANSANG PANATAG

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

Anti-Money Laundering Council

Bangko Sentral ng Pilipinas Complex Manila, Philippines

WARNING

Ponzi-like investment or pyramid schemes offering high- yield investment programs (HYIPs) to the public. The public is hereby warned against internet-based

promise of huge returns of up to 4.8% daily interest. The Investors are lured into these programs because of the

program managers of these HYiPs encourage their members to recruit downline investors and earn additional 1o% 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 quickiy disappear, leaving the investors, particularly those in the downlines, empty handed. The programs' 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.

BY THESE INTERNET-BASED PONZI-LIKE INVESTMENT DO NOT BE FOOLED

SCHEMES

Please report immediately any offer of investment made by

persons or entities using the aforementioned modus

operandi to:

5/F EDPC Building, Bangko Sentral ng Pilipinas Complex, corner A. Mabini and P. Ocampo Sts., Malate, Manila The Anti-Money Laundering Council Secretariat

Tel. Nos. 523-4421or 536-7358, Fax No. 524-6085

http://www.amlc.gov.ph

Anti-Money Laundering Council

Baneko Sentral ng Pilipinas Conplex

Manila, Fnilipoines

Resolution no. S8

Series of 2007

Investment firms with websites www.simfund.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 allegediy fure prospective investors with very high returns of up to 4.8% daily interest for a minimum investment of Us$1.000.00. They encourage their members to recruit downline investors and earn additional 1o% 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.

Verification reveals that the aforementioned firms are not registered with the Securities and Exchange Commission (SEC) or the Bangko Sentral ng Pilipinas (BSP).

Recently, an AMic Warning against these illegal investment schemes was posted in the AMLC Website and published in newspapers of general circulation. In addition, this Council deems it necessary to circularize the said Warning to all the covered institutions.

Accordingly, this Council resolved to circularize, thru the Supervising Authorities, the AMLC Warning to all the covered institutions and require the posting thereof in conspicuous places in their offices and branches.

1.. August 2007, Manila. Philippines.

Amando m. tetangco, Jr. (Governor, Bangko Sentral ng Pilipinas) Chairmar

Guaiunr tu

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