American Contractor

Hello,

I am presently exchanging Dinar for people who want to hold Iraqi Currency in hopes that it will increase in value over time. I happened across your commentary found at the link below.

http://www.americancontractor.com/2007/04/iraqi_dinar_currency_lawsuit.html#more

The man in Idaho apparently never delievered anything in exchange for the USD's. That was his crime.

You made the comment, "I think if I was selling Iraqi Dinar outside of Iraq Which I am not and never have because I know it is illegal in the first place." Either you are mis-informed or I am. I have done extensive research and to my knowledge there is nothing illegal about selling Iraqi Dinar in the U.S. as long as you follow the guidelines of the law.

I have sat with two customs officers and discussed this at length as well as my attorney, my banker and my accountant. I am registered with the Federal government and the state. (Your right, they probably do no more than an initial background check if that). I have also formed an LLC. My question is this: What information do you have that I don't that would lead you to believe it is illegal?

Respectfully,

Ken Kuhn

Under US, law the organizations you listed as reference sources are required to give information relating to restricted activity. However, the information you received was nothing more than acknowledgment that the activity and governments in questions had not posted a challenge to any of the activities identified in your originating e-mail. The organizations you referred to are not responsible to issue information on all activities authorized or not within foreign countries. When you clarify the legal status of the information the organizations provided you, what they submitted to you; was that there were no legal restriction in the US on the activities in which you inquired. These organizations are not legally bound to advise you of all illegal activities in foreign countries. This research is part of the necessary due diligence in which you are responsible.

You must first obtain authorization from the government who originated the notes. CPA 43 states specifically "in the even of conflict of this order and any other legislation, statute, or regulation in force prior the entry into force of this order, this order shall prevail" and this law initiated the issuance of the New Iraqi Dinar. In CPA 56 article 32, the law is specific; the notes are intended to satisfy debts, both publicly and private "in Iraq". The law prescribes further that the GoI has to honor the currency "only as provided by this law". If one takes the time to read the preamble of the 56, there is one very damning statement "this law precedes all others (only) where the presence of inconsistency exist". In review, it is glaringly obvious that the CPA orders 40, 56, Annex A, and 94 are not complete rewrites of all banking laws but rather addendums of current banking law (current in respect to CPA's inception). Iraq's original banking law (Banking Law of 1976, which originally established the central bank) is still in effect and in full force. "Banking Law of 1976 is specific no Iraqi currency is to leave the Iraq's borders. Travelers who have the need to travel with currency in their possession is required to convert the necessary funds into that country's currency prior to departing Iraq, within acceptable limits recognized by that country, and at designated Al-Rashid and Rafidain bank branches".

NO private individual or corporation has a license to transfer, transport, convey, or sell Iraqi Dinar outside of Iraq. The GoI considers all activities of such nature, currency smuggling. Since the GoI has not issued any legal challenges on the status of its currency, the US position is that this activity is viewed as "currency flight". Currency flight is not viewed as criminal in the international community; but rather one of those nasty habit of individuals they would prefer not to see happen. When the GoI completes its current investigation as to how much of its currency has been illegally removed out of it’s borders, it will elivateit’s position on this activity to a criminal level. That is when the US agencies will have to change their position on the activity.

For US citizens engaged in the activity of selling Dinar expose themselves to the limits of Surbane Oxley. Under this law, an individual can be held financially responsible for any business activities which are governmentally regulated irrespective of limits set by previous laws limiting personal liabilities. The law restricts ones use of a corporation or LLC laws to limit their personal liabilities for their criminal activities or torts. This law allows US citizens’ legal recourse regardless of where the corporation is domiciled as long as the individuals named in the suit are US citizens. The remedies clause of the law follows assets of all the owners/partners of the business as long as those assets registered in the US. One only need look at Rev. Al Sharpton's most recent statement in regard to the Imus comments and I paraphrase "governmentally regulated airwaves". His statement was not designed to engage the government in his media campaign but rather express in a very public venue where he and anyone else had legal recourse against CBS for the unexpected and or unintentional actions of its employee.

Thank you for your diligent and thought out response. It is very illuminating and provides me with additional information that I did not have. I will need to review it again and research it at length.

Sincerely,

Ken Kuhn