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WARNING: Iraqi Dinar scam on the rise...again!
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WARNING: Iraqi Dinar scam on the rise...again!
WARNING: Iraqi Dinar scam on the rise...again!
3/1/201327 Comments
AMLTF Canada has received reports from MSB's across the country of the recent rise of consumers inquiring about the Iraqi Dinar investment. For this article we want to make it perfectly clear to everyone reading:
THE IRAQI DINAR INVESTMENT IS A SCAM.
We are warning Canadians of all economic backgrounds to stay away from the Iraqi Dinar investment (and revaluation) hype because the risks of being involved in this type of hard-cash investment are not explained to you by the shady dealers who only have one goal...to make money off of consumer gullibility. They know one thing you don't know - they know it's a scam.
Please note: A legitimate foreign exchange dealer may buy and sell small amounts of Iraqi Dinar (a lawful currency) because they may have an ethnic client base that travel to and from Iraq. These types of MSB's are not to be confused with the scam artists who are selling the Iraqi Dinar as an "investment." Legitimate foreign exchnage dealers may, at their discretion, buy and sell very small amounts of this and other exotic currencies to service a niche client base knowing full well that they take all the financial risks in holding onto and dealing with such exotic currencies.
As a related example, I was surprised to find out that an MSB I dealt with recently was buying and selling the Albanian Lek. I asked him why he does so, since most wholesale suppliers won't touch it. He explained that his area in Burnaby has a small Albanian community with people travelling back and forth to that country. He stated that the buying and selling is evenly split and he makes 15% spread each way in providing the service. However, he is keeping a close eye on Albanian news articles because if Albania goes to Euro tomorrow, he may find that no supplier will be willing to buy it off him (as becomes the case often during a change-over) and he'll have to take a loss. However, he is comfortable with the risks in dealing with the Albanian Lek for the time being.
Now, back to the Iraqi Dinar, in my 10 years in foreign exchange in Vancouver, all my Iraqi clients ONLY purchased US dollars when travelling to Iraq as there is very little trust for the Iraqi Dinar amongst the expatriate community. Even amongst Iraqi-owned foreign exchange stores in Eastern Canada, they will often carry an extremely small amount of Iraqi Dinar (usually no more that $1,000 CAD worth) to serve the daily needs of their community such as travelling to Iraq and needing some local currency upon their arrival. However, Iraqis in Canada prefer to travel with US Dollars when visiting Iraq.
This article, however, takes aim only at the Iraqi Dinar swindlers who have opened up businesses to sell the Iraqi Dinar at hyper inflated rates - usually 30% to 40% - to take advantage of gullible people who are looking to make thousands to millions of dollars from the Iraqi Dinar "revaluation." The only one making money in this relationship is the Iraqi Dinar seller.
Iraqi Dinar backgrounder
1.) The new Iraqi Dinar was released after the fall of Saddam Hussein
2.) Denominations: 50, 250, 500, 1,000, 5,000, 10,000, 25,000 Dinar
3.) Not freely traded on the forex markets
4.) Only redeemable in Iraq
5.) Very little international demand (exotic currency status)
6.) International wholesale currency suppliers will usually NOT deal with Iraqi Dinar
The role of the shady Iraqi Dinar Seller
In Canada, as in many countries, one can't just simply start selling an investment or currencies to the public. Shady Iraqi Dinar dealers are mainly found in the US and a handful in Canada. In order for anyone to sell currencies, one must apply for a Money Services Business number (MSB #). They proudly display the fact that they are "licenced," but, having this MSB # means nothing and it's NOT a licence. It only means that an MSB can buy and sell currencies under the watchful eye of the governing agency that oversees the industry. It does NOT mean that the MSB is legitimate or that they will not defraud you. Some US Dinar sellers go as far as to try to connect the US Treasury Department to their business in an attempt to put the public at ease or will open up websites and business names with a name that has a positive or trustworthy appeal. Often, in their business venture they use words like: Wall Street, Liberty, Central Bank, Market, Vault and other legitimizing words. So, a consumer reads the business name and say "it must be legitimate because it includes the word 'Wall Street' in its name."
So, what is the scam? In a few words, shady Iraqi Dinar dealers will say something like: The Iraqi Dinar will revalue soon. And, when it revalues, this will increase the chances of the Dinar appreciating against the US dollar. To make you believe their sales pitch, they will refer to you thousands of online "fake" news reports and forums and the "fact" that the Iraqi Dinar traded around $3.80 US under Saddam at one point. Yes, it did - ONLY FOR SADDAM HUSSEIN AND HIS IMMEDIATE FAMILY. Saddam arbitrarily set that rate to get more bang for his Dinar holdings. However, if you were a poor farmer caught on the street using the official "Saddam" rate...well, we all know what happened in Iraq if the authorities took hold of you for breaking the law.
These Iraqi Dinar sellers, in other words, are saying that if the Iraqi government revalues their currency say by removing the last three zeroes from their denominations that somehow that will make the Dinar more attractive to investors with some bizarre logic and with fantasy stories that the Iraqi Dinar will appreciate even up to 100 fold. Unfortunately, there is always a gullible person waiting in line for the next "sure thing."
I have been in foreign exchange for a solid 10 years in the industry and for many years prior to entering the industry I traded on my own and I can say one thing with certainty: revaluations don't work like that. When a government revalues their currency, the new lower denomination banknotes replace the older inflated denomination notes at the current rate. Nothing else happens. Of course, if an appreciation occurs, it's because of the market, not because of the revaluation itself. Indeed, since the recession, the Iraqi Dinar has appreciated. But, so has the British Pound and the Euro both of which had hit some extreme lows in the last few years. But, that is the market. Currencies appreciate and depreciate daily.
Some governments (especially Japan and Switzerland) constantly intervene to tame their currencies when they appreciate too fast. Does anyone remember the overnight drop of the Swiss Franc last year? This is different altogether as opposed to the Iraqi Dinar seller that is offering a "prediction" of appreciation based on nothing. If this was the case, then Venezuela would be the richest country on earth because like Iraq, Venezuela has oil and natural resources. However, the Bolivar has not done anything spectacular even after their last (of many) revaluation. And, what is the Bolivar doing today in the forex markets? It's on a steady, downward spiral even with all the oil and resources they have.
Up until 2008, Turkey used to deal with Lira denominated in the millions due to years of hyper inflation, but passed a law to revalue their currency by removing 6 zeroes. Their old 5,000,000 Lira banknote, for example, became the new 5 Lira banknote. The currency fluctuates as is expected due to market and various economimc factors, but the revaluation in itself had no impact on the new Turkish Lira. If a cup of coffee used to cost 5,000,000 Lira, overnight it cost 5 New Lira. That's it!
Revaluations occur often all over the world. Brazil, Bolivia, Mexico, Russia, Venezuela, Zimbabwe...virtually every country on earth except Canada and the US have experience in dealing with revaluations of their modern currency. Often times, even the new revalued currencies don't last if inflation is still out of control. Prior to the Euro, every European country, from time to time, revalued their currency many, many times. And, what of it? So, why would Iraq be an exception to revaluation and why the hype? Nothing magical is going to happen. Why get fooled by a snake oil sales man?
The kicker: What happens if you are stuck holding on to the old physical Iraqi cash when the revaluation occurs and suppliers don't buy it? Or, what happens if Iraq revalues their currency and gives only one month of an exchange period (only to be taken place in Iraq) before the former banknotes are demonetized. Demonetizing means that the banknotes no longer have a value. Imagine that! Are you seeing where this is going?
So, they promise you millions of potential dollars in profits, but, the only one laughing all the way to the bank is the Iraqi Dinar seller. They are charging the consumer up to 40% for a piece of paper - worthless paper actually. They will tell you that they CAN sell the currency to you, but most of these dealers will NEVER buy it back from you and they have some wierd "service clause" that states why they are forbidden by law (a law that does not exist by the way) from BUYING the Iraqi Dinar from the public. The minute it's in your hand, good luck! The chances of you getting your money is virtually zero because, after all, you just paid a 40% premium for it, which means, just to break even the curreny needs to appreciate 40% not taking into account the cost for one to sell it. What are the chances of a major appreciation? Zero!
Now, some of these Iraqi Dinar sellers do offer a "buy/sell service" but not between consumer and the Iraqi Dinar seller. It is a service between consumer to consumer (two gullible parties) and guess who still profits from that trade. If you've guessed the Iraqi Dinar seller...you are on the right track.
How the "wholesale currency market" works in Canada at the foreign exchange level
So, I am sure by now you may be saying well, you still have not provided me with solid evidence that the Iraqi currency investment will fail. Can't I just walk into my closest foreign exchange dealer or bank and just dump it on the counter and get my Canadian or US dollars and be on my way?
No! No, you can't! And, this is the same story in the USA, in Europe, in Australia - in every country outside of Iraq.
In fact, in the opening part of this article I stated that some foreign exchange dealers do buy and sell small amounts of Iraqi Dinar for their client base. I bet you the following: You take your large amount of Iraqi Dinar (say over $10,000 CAD worth) to a foreign exchange dealer in the Iraqi community in eastern Canada...and I bet you he will NOT buy it either because he has no way of getting rid of it. As patriotic as he may feel for Iraq, why would he take that risk? He will, more than likely, also turn you away as the amount is too large and the risk too high.
But, let's play the devil's advocate here for a second and let's pretend I will buy the Iraqi Dinar off of you:
Let's say in my foreign exchange store I buy various exotic currencies one of which is the Iraqi Dinar. What exchange rate are you expecting from your Iraqi Dinar from me? Do you think you will get market rate? Why would you assume that? Let me explain one thing and let me make it very clear for you to understand. Exotic currencies are very expensive to deal with and wholesale suppliers charge premiums for dealing with such currencies.
Exotic currencies are not like the US dollar which is the most liquid currency in the world and spreads can be lower than 1% in some cases even for cash. Spreads on exotic currencies are very wide. If, hypothetically, you paid a premium to buy the Iraqi Dinar from the Iraqi Dinar seller, guess what I will do as the foreign exchange dealer? I will have to base my buy rate on what my wholesale supplier will give me for that Dinar. Afterall, I am not going to lose money. Many exotic currencies have a spread of 10% or more from the supplier. Let's say my wholesaler buys the Dinar off of me for a 10% spread. Do you know what that means for you, the client? That means that if you were to walk into my store I would need to tack on my spread. Guess what I will charge you? An additional 10% spread (or more) will be added to cover my costs (shipping, market fluctuations etc...). That means that I will charge you at least a 20% overall spread in total to purchase that physical Iraqi Dinar from you. That means you have lost 60% if you purchased at a 40% premium from the Iraqi Dinar seller in the first place and I buy it off you for 20% discount at my foreign exchange kiosk. Get it? This is reality! This is how the physical cash exchange market works.
What you don't know about the Iraqi Dinar
Here is what the Iraqi Dinar seller does not tell you. Foreign exchange dealers deal with worldwide currency wholesale suppliers. And, wholesale suppliers, in turn, deal directly with Central Banks. At this time, Iraq DOES NOT allow their currency to be sold in this manner. Also, and this is very critical to understand, the Iraqi Dinar is ONLY redeemable in one country - Iraq. So, unless you are planning to take a vacation to Baghdad, you are holding on to a currency that is worthless to you. Might as well, put it in a collectors album and hope that in a few generations, your great grandchildren can sell them on eBay or to other collectors.
I know all this because for years I used to wholesale over 100 international currencies and, guess what?...Iraq was not and will NEVER be part of the wholesale supply chain for physical cash - at least not in the next 25 to 30 years. Yes, you read that correctly!
So, here is how this whole game works and how you get burned in the end:
1) Iraqi Dinar is smuggled out of the country and with the help of associates all over the world commence the Iraqi Dinar Investment scam. Yes, this is the usual method. It is smuggled out! This is how it all begins. How did you think it worked?;
2) Consumers buy a substantial amount of physical Iraqi Dinar banknotes from an Iraqi Dinar seller who will more than likely shut his business down after a year or two (maybe open up under a different name in the future) - bilking as many people as possible on this scam. Some Iraqi Dinar sellers sell on websites, some sell on eBay and some, even in legitimate looking offices on the street level giving their business an aura of trust;
3) Consumers hear news of the Iraqi revaluation and feel that they will soon profit from the revaluation and start calling foreign exchange dealers preparing to sell their currency (hence, the reason for this article being written after we were indundated from Canadian foreign exchange dealers asking us to explain what is going on with the Iraqi Dinar and why the spike in consumer phone calls to them.);
4) Foreign exchange dealers give the consumer the bad news: "I'm sorry Mr. Customer, but, the Iraqi Dinar investment is a scam primarily because the investmement is based on hype and also because foreign exchange dealers don't buy Iraqi Dinar nor do currency wholesalers";
5) Consumers are in utter shock and disbelief. Often, some consumers will start yelling and screaming at the foreign exchange dealer (I've been called every name in the book and it was bad and I've also been threatened by a man in Saskatchewan who had bought over $50,000 CAD worth of Iraqi Dinar which represented his entire life's savings. He was serious with his threats and for some reason I became his target because I refused to entertain the thought of buying his Iraqi Dinar);
6) Consumers then proceeds to call the Iraqi Dinar seller (the seller who originally sold the Dinar in the first place) to attempt to sell it off back to them. At this point the below can occur:
a.) Iraqi Dinar seller attempts to calm the comsumer down by explaining the Iraqi Dinar will, indeed,
appreciate in a few years and that it is redeemable (a blatant lie);
b.) Iraqi Dinar seller will offer some form of swap with another gullible consumer;
c.) Iraqi Dinar seller will explain why he is prohibited by some non-existant law to buy back the Iraqi
Dinar from the consumer;
d.) Iraqi Dinar seller will have already shut down their business by the time their clients realize they
have been scammed.
Bottom line: YOU WILL BE LEFT HOLDING ON TO WORTHLESS PIECES OF PAPER.
If a Canadian consumer wants to make money from currency investments, they are better off buying the US dollar when it falls below par against the Canadian and sell it when it goes over par. This scneario has occured thousands of times in the last five years especially. You would have made money in a legitimate way against the up's and down's of the US dollar - the world's most liquid currency and at least it's a safer bet for us Canadians who are lucky enough to live right next door.
Canadian MSB's: Please print out this article and give to your clients if they have been defrauded or are asking questions about the Iraqi Dinar Invesment and are thinking of participating. In the event your client has been defrauded by an Iraqi Dinar seller, please advise your clients to immediately call their local police force or the RCMP to report.
27 Comments
Chad
06/26/2013 8:17pm
How is it a scam if you are buying it at the same rate you pay for it if you were in Iraq???
Reply
AMLTF Fraud Dept. link
06/27/2013 2:04pm
It is a scam because from the get-go they know that they are NOT selling an investment. Are you going to go to Iraq to cash it in for your local currency if legitimate places refuse to buy it? You do not pay the same rate for buying it from a Dinar Seller. They tack on very huge spreads and then if (and only IF) you can sell it, the cost of physical exotic currencies is high to sell back to a supplier. Therefore, by the time you buy and sell, you would have realized only a very large loss. There is NO money in it at all.
An example of spreads: today the CAD/IQD is .0009023. If I were illegitimately selling the IQD as an investment to you, lets say, for the case of argument the mark-up is low at just 10% that would mean I sell it to you for .00099253 CAD / IQD. However, the mark-up is never 10% with these illegitimate Iraqi Dinar sellers. The mark-up from them usually hovers around the 20% to 30% mark and I have seen 40% a few times.
So, let's say one sells it to you for a minimum of 10% spread. When you go to sell it, the person buying it from you will tack on his buy spread (discounting from the market). If I buy it at a discount of again 10%, your total loss is 20% unless the IQD has risen in value above this 20% mark. This means that if there are no further fees involved, the IQD must appreciate 21% in order for you to leave my store with a 1% profit. Is it worth it? No! You would be wasting your time if you did this.
You are better off buying gold when it falls (as it is doing currently) which holds its intrinsic value and selling it in the next recessionary period which is bound to happen every 15 to 20 years. In an economic collapse gold at least appreciates and it is very liquid.
If on the off chance you do buy Iraqi Dinar at market rate as you say in your question, could that mean that that supplier is selling stolen money? If that were the case, I would stay far away from that dealer as you never know which agency is watching him. How would he make a profit of he sells it at market? Did he not have a cost to buy it? That's not how the currency markets work. There is always a spread on currency exchanges.
You do not have to believe anything we wrote in our article. However, we want to warn you to NOT buy into this hype. Read our article again and know that we wrote it based on our experience as currency traders (which we still also do) and formerly physical cash currency suppliers.
Thanks for your question and we wish you well.
AMLTF
Reply
tyrone
09/24/2013 1:12pm
I have a friend who fell for this scam big-time. He's "invested" several $US 1,000 much more than he can afford to lose. He's absolutely convinced that the dinar will "RV" any day now and he will become an instant millionaire. He expects appreciation of 1000x to 23000x
He gets his confidence from dinarguru dot com . If I didn't feel sorry for this guy, it's actually kind of entertaining to read the gibberish that is posted on this site by so-called gurus and intel (intelligence) gatherers. You can only see the last few days of postings but I've been watching this for over a year and if you visited there last year it was the same stuff with just a few details refreshed. Anyone who reads this nonsense for months and years and still believes it's true is really lost.
Now if the scam of selling the dinar wasn't enough, scammers are now promoting schemes to shelter your millions in gains from a huge tax bill. For a fee of 15% of what you've already spent buying dinar, they claim to set up for you some form of tax-exempt trusts to avoid the taxman. If you were gullible once, why not come back for more? I have to admit this is pretty creative...
Reply
AMLTF Fraud Dept. link
09/28/2013 12:20am
I have been involved in foreign exchange for close to a decade. There has NEVER been this type of revaluation as being pumped by the Iraqi Dinar sellers. It never happened when Turkey revalued; it never happened when Venezuela revalued; it definitely did not happen when Argentina and Brazil kept revaluing throughout the 80's and 90's. It never happened in Greece after the Nazi's ravaged Greece's economy and one loaf of bread cost billion of drachmas. I has never happened.
Please tell your friend, if he wants to give his money away to go to the nearest food bank and to buy food for people who live in poverty.
The taxman scam is something that people should contact their local tax authorities. If you are American, contact the intelligence community - CIA, FBI. Canadians, contact RCMP, possibly even CSIS.
Take care and please speak to your friend and tell him that as we speak, in Victoria, BC, Canada, the new hype is the Vietnamese dong. Apparently, that currency is also on the verge of revaluing. It's all a scam. If Vietnam revalues, so what?
NOTHING happens on revaluations. If the market is hot, the currency continues its trend, if the market is cold, it's a downward spiral.
Thanks and we wish you well.
AMLTF
Qdon link
07/25/2013 3:32pm
How can a currency dealer offer to buy back the scam?? (yeah you might not sell it for what you bought the currency for but you can get back 80%) the plan with Dinar holders is to wait to a revalued date and exchange at the higher rate. Wells Fargo in the U.S use to sell IQD I think lawyers would have had a field day with a class action suit against the banks who sold it by now. How do you explain the Kuwait revaluation of their currency (bought when it was internationally unrecognized (exotic) and exchange when it is recognized) millions people earned with this process. Oh! wait that was a scam too right. A federal investigation into these dealers would have stopped the scam by now, scams are short lived and the IQD "scam" has been around for 10 years, Oh wait i guess scams can last that long lets look at the Federal Reserve System with 100 years strong and counting (U.S). Your analyzes is flawed, this may be a misinformation ploy to discourage people from the "scam" for all we know BVT holds IQD.
Reply
AMLTF Fraud Dept. link
07/29/2013 1:17pm
Hi Qdon. Thanks for your message. Our company is an anti-money laundering and anti-terrorist financing firm and we encounter and understand fraud from this point of view as it goes hand-in-hand with what we do. We will respond to all your queries and we hope it will be satisfactory.
You said:
"How can a currency dealer offer to buy back the scam?? (yeah you might not sell it for what you bought the currency for but you can get back 80%) the plan with Dinar holders is to wait to a revalued date and exchange at the higher rate."
Currency dealers are NOT offering to buy back the scam. A legitimate currency dealer will buy whatever currency that is easy to sell in the market place which usually also means that there is a wholesaler who is willing to buy it from the retailer.
Some dealers, do indeed, take their own risks and buy and sell minor currencies that may not necessarily be sellable to a wholesaler. If for example I had clients that go back and forth to a certain country and there has been demand for such currency I will deal with it even if my wholesaler does not deal in it. By doing so, I take the full risk of whatever happens as there is no way for me to get rid of such currency.
For example, I know an MSB in Vancouver that buys and sells the Albanian Lek. His currency wholesaler will NOT buy it off him. Therefore, if Albania changes to the Euro tomorrow, he will be stuck with a currency that is ONLY redeemable in Albania.
The same is true for the Iraqi Dinar. If I had a store, I may or may not want to buy it depending first on the fact that wholesalers don't deal with it and two if I have a market for it. If I buy it from one client I better be able to sell it to another or else I get stuck holding on to something that may cost me in the end.
You can not get 80% from the Iraqi Dinar and here is why. When you buy it from the seller, he will tack on his spread. I have seen some of these guys charge 20% or more. Again, if I had a store, I would also have to tack on my spread. After all, I am in the game to make money. Therefore, if I am generous, I will only charge you 20% as Iraqi Dinar is NOT a major currency and is less than exotic. That means you will lose at a minimum 40% just from the get go. In reality, this figure in total hits 50% to 60%.
And, this means that the Iraqi Dinar will have to appreciate WITHOUT revaluation in order for you to make money.
However, if they revalue tomorrow, and you are stuck holding the old notes, do you know what happens with MOST countries - including Iraq? They eventually demonetize the previous banknotes and only give a very short period of time to redeem those old notes.
So, if no one is willing to buy it in your area, what happens when you are left holding pieces of paper that are ONLY redeemable in the country of origin of that currency and are only good for a small period of time during the revaluation transition?
You said:
"Wells Fargo in the U.S use to sell IQD I think lawyers would have had a field day with a class action suit against the banks who sold it by now."
Wells Fargo or any bank has the right to buy and sell whatever currency they have a demand for. They did not sell it to people as an "investment." If they sold it, they did so as a lawful currency. Therefore, this would not warrant a class action lawsuit as it will be next to impossible to claim that Wells Fargo scammed their clients by selling a lawful currency.
You said:
"How do you explain the Kuwait revaluation of their currency (bought when it was internationally unrecognized (exotic) and exchange when it is recognized) millions people earned with this process. Oh! wait that was a scam too right."
You have to put things into perspective. Kuwait and Iraq are not the same thing. Just like Canada and Viet Nam can not be lumped together. Kuwait is an extremely rich, stable country. Iraq, on the other hand, was always a borrower state and always in debt.
You are discussing the collapse of the Kuwaiti Dinar when Saddam illegally invaded and plundered the country of its wealth.
But, after order was restored, the Kuwaiti Dinar strengthened once again. There was NO revaluation of the Kuwaiti Dinar as Kuwait did not change the value of the Dinar. The Kuwaiti Dinar fell ONLY because of the war and the trading appetite in the foreign exchange markets.
Was money made because of the collapse? I am not sure. Was the Kuwaiti Dinar revaluated? No! However, one thing is for sure, because a lot of Kuwaiti Dinar was stolen when Iraq invaded, Kuwait deemed all their pre 1991 banknotes worthless. So, people that had bought into the pre-1991 banknotes were left holding the bag with money that was deemed worthless overnight. Government's have the power to do this.
Having said that, the re-issued Liberation notes were printed bearing the SAME denominations (with new security features to be able to tell them apart from the old demonetized notes). Their cu
Reply
AMLTF Fraud Dept. link
07/29/2013 1:27pm
(Our comments were cut off above):
Their currency (Kuwaiti) has been based on the same denomination since 1961 and was never revalued.
You Said:
"A federal investigation into these dealers would have stopped the scam by now, scams are short lived and the IQD "scam" has been around for 10 years, Oh wait i guess scams can last that long lets look at the Federal Reserve System with 100 years strong and counting (U.S). Your analyzes is flawed, this may be a misinformation ploy to discourage people from the "scam" for all we know BVT holds IQD."
For more information on fraud and scams, please visit: www.fincen.gov FinCEN is the US Financial Intelligence Unit and they prosecute people in various financial businesses who launder money, are involved in terrorist financing or defraud people.
We hope we answered your question to your satisfaction. The bottom line is that we don't want people to fall for various investment scams.
Thanks for your question and we wish you well.
AMLTF
Carol
09/04/2013 10:34pm
so the bank is in on the scam? because they are contacting clients we will see the worse can happen is I have at least 60% back if it does not revalu better than some ther investment when aperson loses everthing because of some crooked fund manager
Reply
AMLTF Fraud Dept. link
09/05/2013 1:02pm
Carol, no bank is in on the scam. Banks buy and sell lawful currencies and Iraqi Dinar is a lawful currency and sold (in its physical form - cash) if there is a client base that travel back and forth to Iraq. In my city, it is impossible to buy or sell Iraqi Dinar at any bank.
Also unlikely would be a person travelling to Iraq (especially Iraqis) asking for Dinars. It is more likely that they would ask for US dollars instead and I base that from experience.
However, if there is someone from the bank contacting clients as you say, that is not the bank's doing. That may be an individual using the bank for their personal gain or just one of those promoting the Iraqi Dinar through the bank in order to legitimise the Iraqi Dinar "as an investment" through the bank.
In other words, and believe me when I say this, that person may be using the bank to further his agenda. After all, if he pushes Iraqi Dinar through a bank it gives the "Iraqi Dinar swindlers" a way of legitimizing the Dinar. After all, they will point out: "if the banks sell it, it must be a legitimate investment."
Thanks for your question and we wish you well.
AMLTF
Reply
Tarisa
09/11/2013 2:27pm
Have you changed any of your views since March? Chapter 7 release makes a difference?
Reply
Tarisa
09/11/2013 2:30pm
Have you changed any of your views since March? Chapter 7 release make any difference to your opinion about the Dinar?
Reply
AMLTF Fraud Dept. link
09/28/2013 12:27am
Our views have been the same for the last 10 years. The revalue is always just a ways away they say. Do you know how many revaluations were supposed to have made people a lot of money since Saddam was toppled? Over 24. Do you know how many Iraqi Dinar investors made money from those predictions? ZERO. Just giving you the heads up, the last 2 months there is a new currency being pushed as the next big thing - another scam. The Vietnamese Dong. The target? Seniors that I have been told from MSB's in Victoria, BC, Canada.
Our suggestion to you. Stop looking into the Iraqi Dinar.
Thanks for your question and we wish you well.
AMLTF
Reply
Isa
09/23/2013 10:40am
Hello, just as the previous writer....I am curious to know if there have been any changes since your last post on 09/05/2013???
I am not a big time investor but was intirigued with the Iraqi Dinar. I was just about to purchase a very small amount of Dinar (only $100 US) when I came across this site....
I realize that I may wind up in the NEGATIVE but my feeling is this... I might spend $100 in a casino or even buying Powerball/Lottery throughout the year and I know that the chances are higher of me losing rather than winning.
So why not? (only because it IS such a small amount!)
If the purchase of a hundred US dollars worth of Dinar amounts to nothing...then I will just have some old exotic money that will be worthless but will be part of History and interesting to look at!
My confuion comes with 2 aspects of your explanations.
#1:
The revaluation of the Dinar. Two things can possibly happen? first...they decide to do away with all the zeros on the bank notes and issue "New" money into circulation. At which point most likely to try to equate it with the US dollar. (No financial gain there for anyone who purchased the Dinar as an investment)
Or second, Iraq decides to leave the money AS IS but the value goes up as the country gets back on track?
Many feel that the vlaue of the Dinar will eventually surpass the US Dollar (possible financial gain but not for years to come?)
#2:
If I am purchasing Dinar through a Bank or an actual Money Exchange location. Are you saying that they will sell it but NOT buy it back?
Or that IF THEY DO buy it back....that the bank and the Money Exchange will also try to tack on another 20-30% fee to buy it back?
And a third and last question...
I was told that when you purchase Dinar from a Money Exchange location (not and internet dealer) that they take down all of your contact information to keep it on record and to report it to whatever governing body here in the US.
What is the purpose of this? Is this the fraud prevention aspect of it?
Thanks for all of the info. It DID stop me in my tracks & made me think if I want to "gamble" my $100 with the Dinar of just spend my $$ elsewhere.
Still have not decided.
Reply
Isa
09/23/2013 10:42am
looking forward to your reply :-)
Reply
AMLTF Fraud Dept. link
09/28/2013 1:17am
Thanks for your great message and sorry for taking so long to respond. I will tackle your question by responding to each of your point.
As you may imagine there is no change in our position. Our company deals with fraud, money laundering and terrorist financing and other issues related to crime and compliance.
#1) If they chop off the zeros and issue new money, the old money with all the zeros will more than likely be worthless after a set period. 99.99% of worldwide banknote wholesalers outside of Iraq do not deal with Iraqi Dinar (do not confuse these guys with the Iraqi Dinar swindlers. Legitimate wholesalers do not work with Iraqi Dinar swindlers).
So, if you buy a million dollars worth of Iraqi Dinar from a swindler, how will you sell it unless you go to Iraq yourself if most of these guys don't but it back? Imagine today you have that amount in Iraqi Dinar and tomorrow the Iraqi government issues a one month redemption period. Can you imagine a million dollars worth of money being worthless in a short period like that? Many governments have done this in the past. I have seen government give one month and I have had customers beg us to buy it and we say no. Usually, suppliers don't take currencies that are to be demonitized even if the government gives a month or a year. Suppliers don't want to risk their position in that currency.
If the Iraqi government leaves the money as is and the value goes up, that would be due to market appetite. However, if you are holding a banknote let's say 25,000 Dinar which is $21.50 on the market, do you honestly think that any government in their right mind will allow the "scenario" being suggested by swindlers - i.e. an appreciation of $1 USD for 1 IQD?
I heard one swindler tell people the 1 for 1 theory when I went to an event just to see them in action and I was shocked at the tactics used and the hype and how gullible some people were. Why would the notes with 000's appreciate? They never do. Zeros indicate inflation ALWAYS. When inflation is to be tamed they chop off the zeroes but reissue new notes. So, 25,000 IQD today can easily become 25 New IQD tomorrow that is still worth $21.50. Nothing changes overnight and currency are based on certain fundamentals. Iraq does not have a functioning government, let alone sound fiscal policies for this revaluation hype to go as planned. So, if they revalue, chances are the currency will move according to legitimate currency investors and real fundamentals.
#2) If the Iraqi Dinar swindler sells you Iraqi Dinar, 9 times out of 10, he will NOT buy it back. If by chance a foreign exchange dealer buys it, he bases his buy rate on what his supplier buys it off him. Same goes for the sell.
For example, I used to sell Vietnamese Dong at 20% over spot and I would buy it from a customer at 10% to 15% under spot. This is the case for many exotic currencies and it is not new. Stores have to cover their costs and this is how we do it in our industry.
#3) Every country has their own rules governing foreign exchange transactions and identification requirements and that has to do with global money laundering initiatives and what each country does in this regard. Nothing to be worried about.
The verdict:
Spend your hard-earned dollars elsewhere or walk up to a random stranger living on the street and make his day.
Thanks for your question and all the best.
AMLTF
Reply
SBI Life Insurance Quotes link
11/06/2013 1:24am
Thank you for sharing a nice information.
Reply
Colin Palmer RXLD link
03/16/2014 3:37pm
Well, looks like the world is being held at the mercy of currency woes and fraudulent manipulations.. How about this new thing called bitcoins? Any view on that? Thx. Cheers!
Reply
AMLTF Fraud Dept. link
03/19/2014 2:10pm
I have nothing good to say about Bitcoin whatsoever. My position is not the "crypto-currency" itself, but because there is no guarantee that one's holdings in Bitcoin can not get stolen as was the case with Mt.Gox and others.
In the case of Mt. Gox, $360 million was lost overnight and obviously no insurance to protect against fraud.
Thanks for the question and all the best.
AMLTF
Reply
Mark Gabel
04/13/2014 5:50pm
well, the best way to invest is in something that you can control, otherwise you won't see you money more scammers are showing toward direction in purchaseeing indonesia ruphia.
Reply
AMLTF link
04/25/2014 2:50pm
Indeed Mark. There are many example around us. You will be better off investing in things you use everyday. Without taking a position ask yourself will Americans or even us here in Canada ever stop drinking Coca Cola? Obviously not. Therefore, I would rather buy one share of Coca Cola Co. because I understand it. I can see it, I can hype it to my friends, I can mix it in alcohol, I can buy it whenever and wherever I want, I know what it will taste like here or in Asia and if I own a store I can sell it to make a profit.
Note:
I am not endorsing Coke, I am pointing out a product that virtually everyone on earth is well aware of.
Thanks for you response all the best.
AMLTF
Reply
Abed Ghaith link
10/27/2014 7:01pm
with respect to the author of this baseless essay, I think most of the information shared here are erroneous and have no base at all. First, investment in any currency is always risky! How would you profit from any currency investment if you dont take the risk??!
Second the iraqi dinar rate in the saddam era was not constrained to saddam and his family as you claim; it was a rate set by the central bank of iraq at that time and even in jordan at that time the price was 3.8 usd per one iraqi dinar and we traded it according to that rate.. I would also say it is totally wrong to say all the news about iraqi dinar are groundless scam. There are some respectful sites around who are always careful when quoting news from Iraq and its dinar.. For example, the piece of news declaring that iraqi will start delete the three zeroes and offer new currency beginning 2015 which is an official piece of news.
Reply
AMLTF Fraud Dept. link
11/02/2014 12:47am
Thanks for your comment Abed.
I can ensure you that ALL the information shared on this blog post are 100% accurate. The author of this post is intimately aware of how currencies work at all levels - from wholesale to retail.
The author of this blog post is also aware how currency devaluations work having been involved in the wholesale of currencies and currency trading in general for over a decade.
The author of this blog post is also intimately aware of how scams and fraud work within the realm of currencies.
Dropping zeroes does not mean that the new currency (example, Iraqi Dinar) will revalue against a foreign major currency. That has NEVER happened in the history of currencies. Why would Iraq be any different?
There are NO respectful sites online regarding the Iraqi Dinar being pushed as an investment. It is ALL a scam.
We wish you well.
AMLTF
Reply
Stock Market Tips link
11/19/2014 11:12pm
Hi there very nice weblog! Gentleman. Attractive. Exceptional. I most certainly will take note of your web blog as well as make feeds additionally? Now i am content to locate a lot of helpful information here while in the placed, we end up needing figure out more tactics with this respect, thank you for giving.
Reply
Ladybug
01/28/2015 8:16pm
Iraq dinar is not a scam. Look what the Kuwait dinar did http://www.gods-kingdom-ministries.net/daily-weblogs/2013/07-2013/ny-times-article-from-1991-reporting-the-revaluation-of-the-kuwaiti-dinar/. I have friends from Iraq and all over the news speaks of the revaluation of the dinar. I strongly feel in my soul that it will happen and many like yourself will be disappointed that they never got on board with this investment. Even Jim Cramer once spoke of the Iraq dinar feeling 100 percent sure that it will revalue. Nothing wrong with taking a chance because that one chance could bring you a lifetime of wonderful blessings.
Reply
AMLTF link
02/05/2015 4:08pm
The Iraqi Dinar "revaluation" is a scam (obviously not the currency itself).
What happened in Kuwait was not due to a revaluation. It was because international currency traders dumped the Kuwaiti Dinar during the time that Saddam Hussein ILLEGALLY invaded the country.
Investors dumped the Kuwaiti Dinar, however, once law and order was restored, the Kuwaiti Dinar went back to its normal pre-war trading levels.
This issue with Kuwait, often used as "proof" by Iraqi Dinar "revaluation swindlers" is actually false in that the Kuwaiti Dinar was NEVER revalued.
A Kuwaiti Dinar was the same in value in Kuwait before, during and after Saddam's invasion. Don't mix this up with the natural inflation that may occur in the market place during war time.
The Kuwaiti Dinar itself was NEVER revalued. That is a blatant lie that snake oil salesmen use. The only thing that happened to the Kuwaiti Dinar during Saddam's invasion was that the currency fell in value against other currencies due to the war but it went back to normal levels after. That's it! Nothing else happened.
Now, after that invasion, if someone ended up making money after order was restored in Kuwait, it was purely due to the exchange rates in the markets and unrelated to a revaluation.
As a comparable situation, during the height of US recession, we here in Canada made a lot of money from purchasing US dollars too. However, the US dollar was still a dollar in the US and as we know it was never devalued. Now that the US economy is on recovery it costs us 25% more to purchase a US dollar in Canada. Again, there was no revaluation. It was all to do with the recession and currency trading.
That is more similar to what happened in Kuwait rather than the scammers that claim the Iraqi Dinar will revalue based on a fake story of a Kuwaiti revaluation.
As for the Iraq Dinar, the swindlers will have you believe that the Iraqi Dinar will revalue and will result in BIG money when that will take place. However, that is not how revaluations work.
As a similar example to the Iraqi Dinar, when Turkey revalued their currency, the exchange rate the next day was the exact same except the New Turkish Lira dropped all the extra zeroes. Overnight, 1,000,000 Turkish Lira translated to 1 New Turkish Lira when they revalued their currency.
The same will happen in Iraq.
So, let's just say tomorrow Iraq announces a revaluation. This is what it will look like:
Today 1,000 IQD = .85 USD cents
And, if the revaluation were to knock off 3 zeroes, the exchange rate will be exactly the same (as in Turkey's and other cases around the world).
Therefore, the new exchange rate will look like this:
1 NEW IQD = .85 USD cents
Further, for a time being, a person that is also in possession of old IQD banknotes (i.e. the ones with the 3 extra zeroes) will be exchanged based on the same exchange rate from before.
So, whether you are holding on to 1,000 Old IQD or 1 New IQD you will get close to .85 USD cents for these notes.
The scam artists, however, claim that the old 1,000 IQD would be worth $850.
I can tell you with 100% certainty after having dealt with all the major revaluations that have taken place in the last decade, there will be many unhappy people come the day of the Iraqi Dinar revaluation if one is expecting a major payday.
I hope you understand that this revaluation will NEVER result in nothing being promoted online by Iraqi Dinar "scam artists."
We wish you well,
AMLTF
Reply
Richard Boyd link
04/16/2015 7:06am
Iraqi dinar revaluation will never happen in year 2015. However, the good news is that CBI and the Iraqi Government
annouced, back in October 2014, that revaluation of Iraqi Dinar is a must for the Iraqi Economy to stop the deterioration
of the Iraqi Economy and meet the economic demands of the flourishing Iraqi market. Cbi announced that new denominations
would be issued; the new Iraqi dinar denominations 25000, 10000, 5000, 1000, 500 and 250 IQD. All denominations issued had
stronger security & blind-friendly features. CBI also annouced the deletion of the 50 Iraqi Dinars denomination because it
contradicts with the issue of the New Iraqi dinars in the first quarter of 2016 which will be without zeros. Deletion of
zeros will include the following denominations:- 25000, 10000, 5000, 1000. 500 & 250. So the new denominations will be 25
Iraqi Dinar, 10 IQD, 5 IQD, 1 IQD and coins will be 1/2 IQD and Quarter IQD. It is expected in the second quarter of 2015
that new Iraqi denominations of 50000 and 100000 to be issued so that the banknot collection is complete: 100 IQD, 50 IQD,
25 IQD, 10 IQD, 5 IQD, 1 IQD. Of course, such currency reset will need a two year transition period ( starting the first
quarter of 2016 ) as it needs planning and gradual presentation to the market.
Reply
tyrone
04/16/2015 9:12am
your statement "... such currency reset will need a two year transition period..." is nonsense. On the contrary, when (and if) the newly denominated notes are issued, people will have a very short time period to exchange the old notes before they are rendered useless. When CBI withdrew the 50 dinar note, they gave 60 day window to exchange.
http://www.amltf.com/blog/warning-iraqi-dinar-scam-on-the-riseagain
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