After July 15th It will Be Illegal to Exchange The Iraqi Dinar in the U.S.

[Phoenix]

All gold and silver and FOREIGN CURRENCY Over the counter transactions will be illegal if you are not qualified as an investor as of July 15th 2011

Note: The definition of an Over the Counter Forex transaction is the buying or selling of a large amount of physical currency at a bank or currency dealer.

Small travel related currency transactions are exempt and not seen as an OTC Forex transaction and will be allowed.

From: FOREX.com <info@forex.com>

Date: Fri, Jun 17, 2011 at 6:11 PM

Subject: Important Account Notice Re: Metals Trading

To: xxx

Important Account Notice Re: Metals Trading

We wanted to make you aware of some upcoming changes to FOREX.com’s product offering. As a result of the Dodd-Frank Act enacted by US Congress, a new regulation prohibiting US residents from trading over the counter precious metals, including gold and silver, will go into effect on Friday, July 15, 2011.

In conjunction with this new regulation, FOREX.com must discontinue metals trading for US residents on Friday, July 15, 2011 at the close of trading at 5pm ET. As a result, all open metals positions must be closed by July 15, 2011 at 5pm ET.

We encourage you to wind down your trading activity in these products over the next month in anticipation of the new rule, as any open XAU or XAG positions that remain open prior to July 15, 2011 at approximately 5:00 pm ET will be automatically liquidated.

We sincerely regret any inconvenience complying with the new U.S. regulation may cause you. Should you have any questions, please feel free to contact our customer service team.

Sincerely,

The Team at FOREX.com

This also applies to most retail OTC forex transactions - that is trading in different currencies:

Effective 90 days from its inception, the Dodd-Frank Act bans most retail OTC forex transactions. Section 742© of the Act states as follows:

…A person [which includes companies] shall not offer to, or enter into with, a person that is not an eligible contract participant, any agreement, contract, or transaction in foreign currency except pursuant to a rule or regulation of a Federal regulatory agency allowing the agreement, contract, or transaction under such terms and conditions as the Federal regulatory agency shall prescribe…

This provision will not come into effect, however, if the CFTC or another eligible federal body issues guidelines relating to the regulation of foreign currency within 90 days of its enactment. Registrants and the public are currently being encouraged by the CFTC to provide insight into how the Act should be enforced. See CFTC Rulemakings regarding OTC Derivatives located at the following website address, under Section XX – Foreign Currency (Retail Off Exchange). It is essential that OTC forex participants seek professional help to discuss possible operational and regulatory contingency plans

NOTE: None of this applies to "Qualified Eligible Participants".

What is that? There is a new definition that defines it as:

Section 413(a) of the Act alters the financial qualifications of who can be considered an accredited investor, and thus a qualified as eligible participant (“QEP”). Specifically, the revised accredited investor standard includes only the following types of individuals:

1) A natural person whose individual net worth, or joint net worth with spouse, is at least $1,000,000, excluding the value of such investor's primary residence;

2) A natural person who had individual income in excess of $200,000 in each of the two most recent years or joint income with spouse in excess of $300,000 in each of those years and a reasonable expectation of reaching the same income level in the current year; or

3) A director, executive officer, or general partner of the issuer of the securities being offered or sold, or a director, executive officer, or general partner of a general partner of that issuer.

What this essentially means is that all current positions will be liquidated. For any new positions, you will have to prove yourself to be a qualified eligible participant. Or, rather, get permission to buy and sell. This will result in two things:

1) Easier tracking of those who buy and sell in these areas.

2) Squeezing out the little guy

This means that AFTER July 15th unless you qualify as a "Qualified Eligible Participant"

It will be against the law for you to exchange Iraqi Dinar at a bank in a large amount.

The exchange of IQD or ANY foreign currency for USD at a bank or currency dealer is an Over The Counter (OTC) Forex exchange

and will be against the law unless you are a QEP (Qualified Eligible Participant)

What does it take to be a QEP?

A QEP definition:

Section 413(a) of the Act alters the financial qualifications of who can be considered an accredited investor, and thus a qualified as eligible participant (“QEP”). Specifically, the revised accredited investor standard includes only the following types of individuals:

1) A natural person whose individual net worth, or joint net worth with spouse, is at least $1,000,000, excluding the value of such investor's primary residence;

2) A natural person who had individual income in excess of $200,000 in each of the two most recent years or joint income with spouse in excess of $300,000 in each of those years and a reasonable expectation of reaching the same income level in the current year; or

3) A director, executive officer, or general partner of the issuer of the securities being offered or sold, or a director, executive officer, or general partner of a general partner of that issuer.

So if you do not fit the above definition as a QEP it will be against the law for you to exchange Iraqi Dinar or any other foreign currency in a large amout at a bank or with a currency exchange as of July 15th 2011.

So if the RV were to not happen until after July 15th.....most here may be screwed.

Thanks to the US congress.

Link: http://thomas.loc.gov/cgi-bin/query/z?c111:H.R.4173:

Phoenix

Edited June 19, 2011 by Phoenix

[keepmwlknfny]

You cant be serious.......Is this set to go into effect regardless?? Or is there a chance of this being stopped?

[epphllps]

You cant be serious.......Is this set to go into effect regardless?? Or is there a chance of this being stopped?

I hope this is not serious. I thought this was just about metals!

Hey Keep, I know how you feel on an RV happening soon but if this is true maybe you should flip and see what you can find on it actually happening before the 15th of July. You seem very well informed so I'm sure you can provide plenty of justified reasons that it could occur . Just sayin'!

[Candinar]

You cant be serious.......Is this set to go into effect regardless?? Or is there a chance of this being stopped?

I will look into this but being Canadian...want to work a deal out heheheheeh...?

Lighten up Keep...just a joke, couldn't resist!!

[cisole]

So if the RV were to not happen until after July 15th.....most here may be screwed.

Thanks to the US congress.

Link: http://thomas.loc.gov/cgi-bin/query/z?c111:H.R.4173:

Phoenix [/b]

:(

[goldengoose]

Phoenix,

Thanks for the post!

I am wondering if there is some type of grandfather provision within this piece of legislation that precludes those holding the IQD prior to the enactment of this bill allowing those of us holding IQD to conduct the cash-in transaction.

I am certainly hoping that if an individual having a paper trail or receipt of purchase from our banking institutions will allow our transactions.

I am quite certain there are members on this site who have legal experience and can shed more light on this subject.

Thank you,

GG

[mariejose]

COMMON SENSE TELLS ME THAT IT DOES'N',T MAKE SENSE TO ALLOW U.S CITIZENS TO BUY DINAR THEN TURN AROUND AND SAY IT'S ILLEGAL. THE COUNTRY WOULD BE AT A LOSS OF TAX REVENUES FROM INVESTORS.

[Biker]

If this is true i say we trash washington

[Phoenix]

You cant be serious.......Is this set to go into effect regardless?? Or is there a chance of this being stopped?

Already voted on and passed.

Will go into full effect as of July 15th.

I have my ideas on this and think it is a good thing.

Chances are high that this will not have any effect on the IQD revalue as long as the revalue happens before July 15th.

Lookin good IMHO

Phoenix

Not sure where it states that you cannot trade in the currency, unless you are a dealer...

Section 413(a)

Section 413(a) of the Act alters the financial qualifications of who can be considered an accredited investor, and thus a qualified as eligible participant (“QEP”). Specifically, the revised accredited investor standard includes only the following types of individuals:

1) A natural person whose individual net worth, or joint net worth with spouse, is at least $1,000,000, excluding the value of such investor's primary residence;

2) A natural person who had individual income in excess of $200,000 in each of the two most recent years or joint income with spouse in excess of $300,000 in each of those years and a reasonable expectation of reaching the same income level in the current year; or

3) A director, executive officer, or general partner of the issuer of the securities being offered or sold, or a director, executive officer, or general partner of a general partner of that issuer.

"So if you do not fit the above definition as a QEP it will be against the law for you to exchange Iraqi Dinar or any other foreign currency in a large amout at a bank or with a currency exchange as of July 15th 2011".

Edited June 19, 2011 by ronscarpa

[keepmwlknfny]

Already voted on and passed.

Will go into full effect as of July 15th.

I have my ideas on this and think it is a good thing.

Chances are high that this will not have any effect on the IQD revalue as long as the revalue happens before July 15th.

Lookin good IMHO

Phoenix

Tell me why you think this might be a good thing?? I mean of course if it were to happen before the 15th then no problem....but if not how could this be good?? This is also affecting us exchanging with a dealer??

[BBALL99]

Thanks Poenix!

This along with the other treasury laws that have

been passed in the last several months is Proof

the artificial program rate for the Dinar is about to end

and end soon.

It is too bad there are so many people here that are

clueless to what is really happening. When the RV does

take place they still won't believe it until they see a picture

of a notorized bank receipt.

Edited June 19, 2011 by BBALL99

[majors121]

i think its more of an attempt for the govt to keep the "little man" from get5ting in on something like this again in the future. people have said that we werent suppose to know about this

[frankc]

I'm not buying this.

[BBALL99]

I'm not buying this.

If you know Phoenix you know he does not

post rumors he and Lakehouse only post the facts.

Edited June 19, 2011 by BBALL99

[Markinsa]

Anyone have any idea, of what the purpose of these laws are for? Why do they care who is buying foreign currency or precious metals?

[cisole]

Taking a trip to another country.... I will denounce my citizenship if need be...

Agreed

[wc41]

Definately got our attention

[FXStockpiling]

The idea behind this is to put so many government regulations on gold and silver that the average person will not be able to trade without putting their freedom up for sale...

Explained by person in germany about german gun control laws it's not that you can't own a gun but you must follow all regulations for buying guns & ammo and have all permits and allow the government to inspect your home at any given time to make sure you are in compliance and sign off that you will pay any and all fines without question.... yata yata yata

yes you can!!! own a gun if you sacrifice what freedoms you have... so who would?

a way to outlaw without outlawing

[WorkerBee]

S*&t I feel like the Etrade baby. So what, no clarification needed? It's written in stone? No rv by July 15th and it's over?

[cisole]

Doesn't say you cant exchange it in smaller amounts...

"It will be against the law for you to exchange Iraqi Dinar at a bank in a large amount."

yeah, so it will take month after month to cash in, of course depending on the alotted amount in each timeframe they set

[Butifldrm]

Chris Dodds and Barney Frank should be in prison for what they have done to this country. Instead they are responsible for passing legislation like this! This is a set up. Now, if the RV happens hopefully before the 15th of July, there will be no reinvesting in lower denoms or holding on to larger denoms for an increase in the rate. If the RV happens after the 15th, Washington will see the wrath of GOD.

[Phoenix]

Tell me why you think this might be a good thing?? I mean of course if it were to happen before the 15th then no problem....but if not how could this be good?? This is also affecting us exchanging with a dealer??

IMHO...just my speculation....I think this is good.

Why?

Because after the soon to happen revaluation of the Iraqi Dinar the word of this sudden wealth will travel far and wide.

The throngs of people who thought it was all a scam and who were told to invest and did not will suddenly also want to jump on the OTC (Over the Counter) forex in hopes of hitting it big also.

So what is now a somewhat small and exotic breed of investing will have over night stardom with the stories of the over night "rags to riches" of people from all over.

This would cause a rush of liquidity and wild speculative investment into the OTC exotic currencies.

The currency dealers and the banks would be flooded with people trying to hit it big like their friend or family member did.

So I think this act is in anticipation of that very effect that would be disruptive to the liquidity flow within the US,

The OTC currency market would be the new lottery play and every scammer and huckster around would be hawking exotic currency as the "next Iraqi Dinar"

So....I think this bill is being put in place AFTER the fact of the IQD revalue.

That is my personal take on this.

And if i am correct.

Every single one of you are lucky beyond your wildest dreams and will be known as the lucky ones who hit it big.

Best of luck to all!~

I think this is good news...and a "tell" of how close we are.

IMHO

Phoenix

Edited June 19, 2011 by Phoenix

[kinglizzy99]

if this were indeed true, then perhaps we now know the deadline to cash in by...

Here's another twisted spin...(and I know this contains a couple conditionals) but if we were to see an RV post-7/15 and we see a rate that qualifies the investor into one of the three statuses listed (if not already a QEP) you're in the clear...

Still need to learn much more about this but those are my initial knee-jerk thoughts...

[Average Bear]

I hope to hear from Adam on this subject!!!

[Solarcloud]

I hate being paranoid. Another food for thought to raise the blood pressure.