(Dinar Recaps Note: This post is for informational purposes only. It is not legal, tax or investment advice. Dinar Recaps advises that everyone should do their own due diligence and seek local Professional tax, legal and/or investment advisers.)
10 (11) things to be ready for the exchange process...
1. You will probably need to schedule an appointment with your bank to execute your "Currency Exchange".
a. You may be asked to provide your name, your email address, and how much Dinar (IQN) you will be exchanging and an appointment at your banks nearest exchange center will be made for you. Make sure you have created a brand new email address to handle all your banking through (See "Personal Security" below).
b. Make sure you arrive at your appointment on time as there are an estimated 5 million private holders that will need to perform their exchanges too and the U.S. Treasury expects to have the majority of the exchanges completed within 7 days after the revaluation is announced.
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When exchanging, refer to your Dinar only as "IQN Iraqi Currency" (i.e. "Hello, my name is (your name) and I am here for my appointment to do my "Currency Exchange" of my "IQN Iraq Currency" for US Dollars, please.").
If you are exchanging Vietnamese Dong, only refer to it as "VNN Vietnamese Currency". I do not think an appointment is needed to exchange Dong, but the recommendation is that you exchange both currencies at the same appointment.
2. Be prepared to sign a "Non-Disclosure Agreement" or an "NDA" that your currency exchange and the exchange rate you are given will be completely kept private and protected/hidden from public discussion of any kind for a period of up to 10 years. Details will be provided of the NDA and the signing there-of will be handled during your appointment.
This is VERY SERIOUS! Failure to adhere to the restrictions of the NDA could result in a forfiture of all funds received, could result in felony charges and up to a 10 year prison sentence. Once you sign, mums the word. All specifics and ramifications will be explained at the time of signature.
3. During your exchange open up two new and separate "Non-interest bearing accounts" (NIB's). Do NOT put your exchange funds into your existing savings or checking accounts. These funds need to be kept seperate for taxing and accounting purposes. Also, if you are exchanging Vietnamese Dong, that currency exchange deposit should also be kept in its own separate accounts.
a. Split your funds and place 50% of your exchange in each account.
b. One of the accounts is to cover capital gains tax on currency exchanges, which could be as much as 50%. The other as your working account.
4. Immediately open two new NIB's and sweep your funds into those two new accounts. Close the original accounts. [ YOU CAN ALSO DO THIS AT THE TIME OF YOUR FOLLOW UP APPT.]
a. This will insure that there is no longer external reporting of your accounts/funds as banks do not report internal transfers within the bank itself. Only transfers between separate banks are reported, so this offers you a little bit of anonymity as your original accounts are closed.
5. From your working account you should be able to further diversify your funds into existing:
c. Expense accounts
e. Money Market accounts
f. CDARS (for FDIC insurance on amounts over $100K-$250K)
g. Business accounts
g. Hard currency/assets (Gold/Silver)
g. Other monetary instruments
6. If you are exchanging 25,000 dinar or less, a scheduled appointment may not be needed. When calling the 1-800#, the call center representative will most likely give you the location of the nearest exchange center. You may be able to do a "walk in" exchange with no scheduled appointment if you are exchanging less than 25,000 IQN. Follow any instructions provided by the call center representative.
NOTE: If you do not have IQN you DO NOT use the 800# and can walk up to a teller to exchange ... with a lot of currency you may prefer to make an appointment with a wealth manager for privacy
7. Cash Withdraws at time of exchange are limited to $10,000. Some banks may not be able to handle more than $5,000 cash due to limited cash supply in the vault.
8. DO NOT attempt to wire more than $500K from your account to another bank or financial institution as this will trigger a "FLAG" event that might result in an investigation or the "Freezing" of your accounts.
9. PAY YOUR TAXES!!!! Both Federal and State Taxes if applicable. If you live in a state with income tax, contact your tax preparer to have your state income tax estimated. You will want to pay your estimated state income tax before 12/31 to help reduce your federal tax liability. Higher a CPA or Tax Attorney to assist. Can't stress this enough.
10. Don't make any major financial decisions or purchases for 30-90 days min. Give things time to sink in and do some planning before doing anything major.
11. Things to keep in mind:
a. Be calm and collected when exchanging. It is ok to ask questions.
b. Do not try to negotiate a higher exchange rate.
c. Be aware of "Sweep Fees" and "Exchange Spread fees" and how they will impact your exchange. Google them. Some, most or even all of them can (up to fees levied by the U.S. Treasury) be waived by the branch manager depending on how much currency you are exchanging and depositing in the bank.
d. Personal Security is paramount. Create a brand new online identity complete with a shiney new and secure email address (http://www,hushmail.com offers a very good service) and a new tablet or laptop that you will only use for your personal banking needs and activities. Think about a new and seperate cell phone with which you only use for business.
e. Contact a private banker, a wealth manager, and a really good CPA or Tax Attourney
f. Pay it forward. Do something kind to help others or reach out to your community to help with projects or educational initiatives. Donate to your favorite charity. Tithe to your church. Set up a foundation. Do something positive.
g. ADHERE TO THE NDA!