Lifting Sanctions on Iran and Bypassing Iran Front Operations

Not only is the White House well aware of the front operations and hidden nefarious methods of the regime in Tehran, but aggressive sanctions and financial measures were taken by the U.S. Treasury to expose them with cooperation and approval by several intelligence agencies and Congress.

Now lifted…

So for the sake of the JPOA talks and signed agreements, several previous actions by the Obama administration have now been both overlooked and waived. This is key to understand the psychology of Barack Obama’s policy towards the Middle East and his presidential legacy, such that future aggressions and terror around the globe are assured.

 

Note the date as posted on the U.S. Treasury Department website.

Treasury Targets Assets of Iranian Leadership
6/4/2013

Action Identifies Massive Network of Front Companies Hiding Assets on Behalf of the Government of Iran’s Leadership
WASHINGTON –The U.S. Department of the Treasury is taking action today to expose a major network of front companies controlled by Iran’s leadership.  The Execution of Imam Khomeini’s Order (EIKO), through two main subsidiaries, oversees a labyrinth of 37 ostensibly private businesses, many of which are front companies.  The purpose of this network is to generate and control massive, off-the-books investments, shielded from the view of the Iranian people and international regulators.  EIKO and its subsidiaries – one that manages and controls EIKO’s international front companies, and another that manages billions of dollars in investments – work on behalf of the Iranian Government and operate in various sectors of the Iranian economy and around the world, generating billions of dollars in profits for the Iranian regime each year.  EIKO and the 37 companies identified today are subject to sanctions pursuant to Executive Order 13599, which blocks the property of the Government of Iran.
“Even as economic conditions in Iran deteriorate, senior Iranian leaders profit from a shadowy network of off-the-books front companies,” said Under Secretary for Terrorism and Financial Intelligence David S. Cohen.  “While the Iranian government’s leadership works to hide billions of dollars in corporate profits earned at the expense of the Iranian people, Treasury will continue exposing and acting against the regime’s attempts to evade our sanctions and escape international isolation.”
EIKO has made tens of billions of dollars in profit for the Iranian regime each year through the exploitation of favorable loan rates from Iranian banks and the sale and management of real estate holdings, including selling property donated to EIKO.  EIKO has also confiscated properties in Iran that were owned by Iranians not living in Iran full-time.  In addition to generating revenue for the Iranian leadership, EIKO has been tasked with assisting the Iranian Government’s circumvention of U.S. and international sanctions.  Because of this unique mission, EIKO has received all of the funding it needs to facilitate transactions through its access to the Iranian leadership. The following companies are all part of this elaborate scheme:
Tosee Eqtesad Ayandehsazan Company (TEACO)
In June 2010, Tosee Eqtesad Ayandehsazan Company (TEACO) was created as part of the Iranian strategy to circumvent U.S. and international sanctions.  EIKO uses TEACO as the primary mechanism to transact, manage, and control all of the international companies under EIKO’s control.  To maintain the appearance of being a private company, TEACO is ostensibly owned by private Iranian businessmen and investors; however TEACO’s board members were all chosen by EIKO.  TEACO acts on behalf of EIKO.  As of September 2011, EIKO negotiated business deals using TEACO subsidiaries.  For example, EIKO used an Iranian subsidiary of TEACO to negotiate a deal with a European company to build a factory in Iran.  In these business deals, the TEACO subsidiary directly negotiated with the foreign company.  If the foreign company did not move forward with the deal due to sanctions issues, the TEACO subsidiary would have TEACO take over the negotiations, rather than EIKO, because TEACO was less visibly connected to the Government of Iran.
As of December 2010, EIKO transferred Iranian-owned companies located in Central Europe from the EIKO-controlled Iranian company Rey Investment Company to TEACO.  TEACO planned to use these central European companies to facilitate international transactions in Europe otherwise prohibited by U.S. and international sanctions.  The companies were officially owned by Iranian expatriates with dual Iranian-European citizenship to conceal ties to the Iranian Government, EIKO, TEACO, and Rey Investment Company.
Tadbir Economic Development Company (Tadbir Group)
Tadbir Group, an investment company subordinate to EIKO, manages billions of dollars in investments, including on behalf of Iranian leadership figures.  Tadbir Group is one of the main holding companies belonging to EIKO.  Its subsidiaries include Tadbir Investment Company, Modaber (Tadbir Industrial Holding Company), Tadbir Construction Development Company and Tadbir Energy Development Group.  The Tadbir Group has used its subsidiaries to make significant investments in the Iranian economy, including an investment of over $100 million in Amin Investment Bank, and controls the Pardis Investment Company and Mellat Insurance Company in Iran.
Rey Investment Company
As of late December 2010, Rey Investment Company was worth approximately $40 billion. Rey Investment Company was formerly run by Ayatollah Mohammad Mohammadi Reyshahri, who previously served as the Iranian Minister of Intelligence and Security.  Rey Investment Company collected and invested donations obtained from Iranian Shi’a shrines.  However, amidst allegations of mismanagement and embezzlement of shrine donations from the company, the Iranian Government cut off its funding to the point of nearly bankrupting the company.  In mid-to-late 2010, Reyshahri was removed and control of Rey Investment Company was transferred to EIKO and its director.  EIKO subsequently appointed a new Managing Director of Rey Investment Company.
Reyco GmbH
Reyco was a German subsidiary of Rey Investment Company, although there were no public ties between Reyco and Rey Investment Company, TEACO, or the Iranian Government.  Reyco owned MCS Engineering and MCS International.  Reyco had the appearance of being a purely German company to circumvent sanctions restricting an Iranian Government-controlled entity’s ability to do business in Europe.  Reyco was eventually transferred to the control of TEACO from Rey Investment Company, and TEACO planned to use Reyco to purchase a bank for Iran in Germany.
MCS International GmbH (Mannesman Cylinder Systems)
Reyco subsidiary MCS International is a German company ostensibly owned by German nationals or Iranian expatriates with dual Iranian-European citizenship to conceal its ties to the Iranian Government, EIKO, TEACO, and Rey Investment Company.  MCS International was audited by TEACO in October 2010 and determined to be in poor financial standing.  However, EIKO management rescued MCS International from bankruptcy and insisted on keeping the company open because it viewed MCS International as key to facilitating business in Europe.  EIKO management viewed MCS International as being too important to EIKO’s international plans to allow it to go bankrupt and believed that it would be easier to rescue MCS International from bankruptcy than to create or acquire new foreign companies on behalf of EIKO due to U.S. and international sanctions.  EIKO subsequently ordered that responsibility for MCS International be transferred from EIKO-controlled TEACO to Iranian businessmen, who were sent to oversee the company.  Following this transfer, the two individuals owned the shares for MCS International, but answered directly to EIKO.
MCS Engineering (Efficient Provider Services GmbH)
Reyco and MCS International subsidiary MCS Engineering is a German company ostensibly owned by German nationals or Iranian expatriates with dual Iranian-European citizenship to conceal ties to the Iranian Government, EIKO, TEACO, and Rey Investment Company.  EIKO required that Iranians be used for management positions, preferably dual Iranian-European citizens, who could conceal the relationship between the company and the Iranian Government.
Golden Resources Trading Company L.L.C. (GRTC)
GRTC, a Dubai-based Iranian company, has been controlled by EIKO and used in early 2011 to inject 7.5 million Euros from EIKO into MCS International.  EIKO sent money through GRTC in Dubai for deposit into an account with a bank in Germany.  The Iranian Government has used GRTC to transfer money internationally to circumvent U.S. and international sanctions.  GRTC was responsible for the transfer of funds to Europe and Africa by EIKO, and its subsidiary, the Tadbir Group.  EIKO relied on GRTC to transfer money and secure letters of credit on behalf of Iranian-controlled companies in Europe and South Africa.  As of December 2010, control over GRTC was transferred from Rey Investment Company to TEACO by EIKO.  GRTC has represented a number of Iranian companies with affiliations to the Islamic Revolutionary Guard Corps. (IRGC) and has been used by the IRGC to procure needed equipment and supplies.
Cylinder System Ltd. (Cilinder Sistem DDO) 
Cylinder System Ltd. is a Croatia-based company that has been controlled by EIKO.  In October 2010, TEACO determined that Cylinder System Ltd. was poorly run, and EIKO ordered new management.  Cylinder System Ltd. was subsequently transferred under the control of TEACO from Rey Investment Company.  EIKO was also interested in procuring a bank in Central Europe and considered using Cylinder System Ltd. to facilitate this transaction.
One Vision Investments 5 (Pty) Ltd.
One Vision Investments 5 (Pty) Ltd. is a South Africa-based company that was owned by Rey Investment Company, but was subsequently transferred to TEACO’s control in order to avoid being linked to the Iranian Government.  EIKO managed One Vision Investments 5 (Pty) Ltd. and used the company to transfer funds from Iran internationally and to facilitate financial transactions through South Africa to circumvent U.S. and international sanctions.
One Class Properties (Pty) Ltd.
EIKO planned to use South Africa-based One Class Properties (Pty) Ltd. to purchase a bank and an insurance company.  EIKO managed One Class Properties (Pty) Ltd. through TEACO in order to avoid being linked to the Iranian Government.  The Iranian Government used One Class Properties (Pty) Ltd. to transfer money internationally and to facilitate financial transactions in circumvention of U.S. and international sanctions.  One Vision Investments 5 (Pty) Ltd. owned 49 percent of One Class Properties (Pty) Ltd., while the Government of Iran owned 51 percent.
Treasury is also imposing sanctions on additional companies in Iran that are owned or controlled by the Tadbir Group, Rey Investment Company, or their subsidiaries.  These companies are: Iran & Shargh Company, Iran & Shargh Leasing Company, Tadbir Brokerage Company, Rafsanjan Cement Company, Rishmak Productive & Exports Company, Omid Rey Civil & Construction Company, Behsaz Kashane Tehran Construction Co., Royal Arya Company, Hormuz Oil Refining Company, Ghaeed Bassir Petrochemical Products Company, Persia Oil & Gas Industry Development Co., Pars Oil Co., Commercial Pars Oil Co., Marjan Petrochemical Company, Ghadir Investment Company, Sadaf Petrochemical Assaluyeh Company, Polynar Company, Pars MCS, Arman Pajouh Sabzevaran Mining Company, Oil Industry Investment Company, and Rey Niru Engineering Company.
U.S. persons are generally prohibited from engaging in any transactions with the entities listed today, and any assets those entities may have subject to U.S. jurisdiction are frozen.
Identifying Information
Entity: Amin Investment Bank
AKA: AMINIB
Location: No. 51 Ghobadiyan Street, Valiasr Street, Tehran  1968917173, Iran
Website: http://www.aminib.com
Entity: Behsaz Kashane Tehran Construction Co.
AKA: Behsaz Kashaneh Co.
Location: No. 40, East Street Journal, North Shiraz Street, Sadra Avenue, Tehran, Iran
Website: http://www.behsazco.ir
Entity: Commercial Pars Oil Co.
Location: 9th Floor, No. 346, Mirdamad Avenue, Tehran, Iran
Entity: Cylinder System L.T.D.
AKA: Cilinder Sistem D.O.O.
AKA: Cilinder Sistem D.O.O. Za Proizvodnju I Usluge
Location: Dr. Mile Budaka 1, Slavonski Brod  35000, Croatia
Alt. Location: 1 Mile Budaka, Slavonski Brod  35000, Croatia
Website: http://www.csc-sb.hr
Registration ID: 050038884 (Croatia)
Tax ID No.: 27694384517 (Croatia)
Entity: Execution Of Imam Khomeini’s Order
AKA: EIKO
AKA: SETAD
AKA: Setad Ejraei Emam
AKA: Setad-E Ejraei-E Farman-E Hazrat-E Emam
AKA: Setad-E Farman-Ejraei-Ye Emam
Location: Khaled Stamboli St., Tehran, Iran
Entity: Ghadir Investment Company
Location: 341 West Mirdamad Boulevard, Tehran, Iran
Alt. Location: P.O. Box 19696, Tehran, Iran
Website: http://www.ghadir-invest.com
Entity: Ghaed Bassir Petrochemical Products Company
AKA: Ghaed Bassir
Location: No. 15, Palizvani (7th) Street, Gandhi (South) Avenue, Tehran  1517655711, Iran
Alt. Location: Km 10 of Khomayen Road, Golpayegan, Iran
Website: http://www.gbpc.net
Entity: Golden Resources Trading Company L.L.C.
AKA: GRTC
Location: 9th Floor, Office No. 905, Khalid Al Attar Tower 1, Sheikh Zayed Road, After Crown Plaza Hotel, Al Wasl Area, Dubai, United Arab Emirates
Alt. Location: Postal Box 34489, Dubai, United Arab Emirates
Alt. Location: Postal Box 14358, Dubai, United Arab Emirates
Entity: Hormoz Oil Refining Company
Location: Next To The Current Bandar Abbas Refinery, Bandar Abbas City, Iran
Entity: Iran & Shargh Company
AKA: Iran And East Company
AKA: Iran And Shargh Company
AKA: Iranoshargh Company
AKA: Sherkat-E Iran Va Shargh
Location: 827, North Of Seyedkhandan Bridge, Shariati Street, P.O. Box 13185-1445, Tehran  16616, Iran
Alt. Location: No. 41, Next To 23rd Alley, South Gandi St., Vanak Square, Tehran  15179, Iran
Website: http://www.iranoshargh.com
Entity: Iran & Shargh Leasing Company
AKA: Iran And East Leasing Company
AKA: Iran And Shargh Leasing Company
AKA: Sherkat-E Lizing-E Iran Va Shargh
Location: 1st Floor, No. 33, Shahid Atefi Alley, Opposite Mellat Park, Vali-E-Asr Street, Tehran  1967933759, Iran
Website: http://www.isleasingco.com
Entity: Marjan Petrochemical Company
AKA: Marjan Methanol Company
Location: Ground Floor, No. 39, Meftah/Garmsar West Alley, Shiraz (South) Street, Molla Sadra Avenue, Tehran, Iran
Alt. Location: Post Office Box 19935-561, Tehran, Iran
Entity: MCS Engineering
AKA: Efficient Provider Services Gmbh
Location: Karlstrasse 21, Dinslaken, Nordrhein-Westfalen  46535, Germany
Entity: MCS International Gmbh
AKA: Mannesman Cylinder Systems
AKA: MCS Technologies Gmbh
Location: Karlstrasse 23-25, Dinslaken, Nordrhein-Westfalen  46535, Germany
Website: http://www.mcs-tch.vom
Entity: Mellat Insurance Company
Location: No. 48, Haghani Street, Vanak Square, Before Jahan-Kodak Cross, Tehran  1517973913, Iran
Alt. Location: No. 40, Shahid Haghani Express Way, Vanak Square, Tehran, Iran
Alt. Location: No. 9, Niloofar Street, Sharabyani Avenue, Taavon Boulevard, Shahr-E-Ziba, Tehran, Iran
Alt. Location: 72 Hillview Court, Woking, Surrey  Gu22 7qw, United Kingdom
Alt. Location: No. 697 Saeeidi Alley, Crossroads College, Enghelab St., Tehran, Iran
Website: http://www.mellatinsurance.com
Entity: Modaber
AKA: Modaber (A.K.A. Modaber Investment Company
AKA: Tadbir Industrial Holding Company
Entity: Oil Industry Investment Company
AKA: O.I.I.C.
Location: No. 83, Sepahbod Gharani Street, Tehran, Iran
Website: http://www.oiic-ir.com
Entity: Omid Rey Civil & Construction Company
AKA: Omid Development And Construction
AKA: Omid Rey Civil And Construction Company
AKA: Omid Rey Renovation And Development Co.
Website: http://www.omidrey.com
Entity: One Class Properties (Pty) Ltd.
AKA: One Class Incorporated
Location: Cape Town, South Africa
Entity: One Vision Investments 5 (Pty) Ltd.
AKA: One Vision 5
Location: 3rd Floor, Tygervalley Chambers, Bellville, Cape Town  7530, South Africa
Alt. Location: Canal Walk, P.O. Box 17, Century City, Milnerton  7446, South Africa
Registration ID: 2002/022757/07 (South Africa)
Entity: Pardis Investment Company
AKA: Sherkat-E Sarmayegozari-E Pardis
Location: Unit D4 and C4, 4th Floor, Building 29 Africa, Corner of 25th Street, Africa Boulevard, Tehran, Iran
Entity: Pars MCS
AKA: Pars MCS Co
AKA: Pars MCS Company
Location: 2nd Floor, No. 4, Sasan Dead End, Afriqa Avenue, After Esfandiar, Crossroads, Tehran, Iran
Alt. Location: No. 5 Sasan Alley, Atefi Sharghi St., Afrigha Boulevard, Tehran, Iran
Alt. Location: Oshtorjan Industrial Zone, Zob-E Ahan Highway, Isafahan, Iran
Website: http://www.parsmcs.com
Entity: Pars Oil Co.
AKA: Pars Oil
AKA: Sherkat Naft Pars Sahami Aam
Location: No. 346, Pars Oil Company Building, Modarres Highway, East Mirdamad Boulevard, Tehran  1549944511, Iran
Alt. Location: Postal Box 14155-1473, Tehran  159944511, Iran
Website: http://www.parsoilco.com
Entity: Persia Oil & Gas Industry Development Co.
AKA: Persia Oil And Gas Industry Development Co.
AKA: Tose Sanat-E Naft Va Gas Persia
Location: 7th Floor, No. 346, Mirdamad Avenue, Tehran, Iran
Alt. Location: Ground Floor, No. 14, Saba Street, Africa Boulevard, Tehran, Iran
Website: http://www.pogidc.com
Entity: Polynar Company
Location: Polynar Company, No. 58, St. 14, Qanbarzadeh Avenue, Resalat Highway, Tehran, Iran
Website: http://www.polynar.com
Entity: Rey Investment Company
Location: 2nd And 3rd Floors, No. 14, Saba Boulevard, After Esfandiar Crossroad, Africa Boulevard, Tehran  1918973657, Iran
Website: http://www.rey-co.com
Entity: Rey Niru Engineering Company
AKA: Rey Niroo Engineering Company
Website: http://www.reyniroo.com
Entity: Reyco Gmbh
AKA: Reyco Gmbh Germany
Location: Karlstrasse 19, Dinslaken, Nordrhein-Westfalen  46535, Germany
Entity: Rishmak Productive & Exports Company
AKA: Rishmak Company
AKA: Rishmak Export And Manufacturing P.J.S.
AKA: Rishmak Production And Export Company
AKA: Rishmak Productive And Exports Company
AKA: Sherkat-E Tolid Va Saderat-E Rishmak
Location: Rishmak Cross Rd., 3rd Km. Of Amir Kabir Road, Shiraz  71365, Iran
Entity: Royal Arya Co.
AKA: Aria Royal Construction Company
Location: Iran
Entity: Sadaf Petrochemical Assaluyeh Company
AKA: Sadaf Asaluyeh Co.
AKA: Sadaf Chemical Asaluyeh Company
AKA: Sadaf Petrochemical Assaluyeh Investment Service
Location: Assaluyeh, South Pars Special Economy/Energy Zone, Iran
Entity: Tadbir Brokerage Company
AKA: Sherkat-E Kargozari-E Tadbirgaran-E Farda
AKA: Tadbirgaran Farda Brokerage Company
AKA: Tadbirgaran-E Farda Brokerage Company
AKA: Tadbirgarane Farda Mercantile Exchange Co.
Location: Unit C2, 2nd Floor, Building No. 29, Corner Of 25th Street, After Jahan Koudak, Cross Road Africa Street, Tehran  15179, Iran
Website: http://www.tadbirbroker.com
Entity: Tadbir Construction Development Company
AKA: Goruh-E Tose-E Sakhteman-E Tadbir
AKA: Tadbir Building Expansion Group
AKA: Tadbir Housing Development Group
Location: Block 1, Mehr Passage, 4th Street, Iran Zamin Boulevard,  Shahrak Qods, Tehran, Iran
Entity: Tadbir Economic Development Group
AKA: Tadbir Group
Location: 16 Avenue Bucharest, Tehran, Iran
Entity: Tadbir Energy Development Group Co.
Location: 6th Floor, Mirdamad Avenue, No. 346, Tehran, Iran
Website: http://www.tadbirenergy.com
Entity: Tadbir Investment Company
Location: Tehran, Iran
Entity: Tosee Eqtesad Ayandehsazan Company
AKA: Teaco
AKA: Tosee Eghtesad Ayandehsazan Company
Location: 39 Gandhi Avenue, Tehran  1517883115, Iran
Entity: Zarin Rafsanjan Cement Company
AKA: Rafsanjan Cement Company
AKA: Zarrin Rafsanjan Cement Company
Location: 2nd Floor, No. 67, North Sindokht Street, West Dr. Fatemi Avenue, Tehran  1411953943, Iran
Website: http://www.zarrincement.com
To see a chart of Imam Khomeini’s international financial network, click this link

UK Feeling Same U.S. Pain on Immigration

LONDON (AFP) – 

The disruption to freight between Britain and mainland Europe caused by strikes and illegal immigration is starting to hurt British businesses, from luxury English car manufacturers to Scottish seafood exporters.

Industrial action and delays caused by migrants massed at the French port of Calais are taking a toll on the other side of the Channel, with thousands of trucks queueing up at England’s southeastern tip for ferry and freight shuttle rail services.

“While clearly hampering holidaymakers, the disruption at Calais also has an economic impact as exporters are being delayed getting their goods to market,” said Katja Hall, deputy director-general of the Confederation of British Industry, the nation’s biggest employers’ body.

The disruption is costing the British economy £250 million ($390 million, 355 million euros) a day in lost trade, according to the Freight Transport Association trade body.

UK funds 100 extra Channel tunnel guards as migrant standoff continues

Philip Hammond claims government has ‘got a grip’ on the Calais migrant crisis, with UK Border Force officials now stationed in Eurotunnel control room

Britain is to fund an extra 100 border guards at the Channel tunnel terminal on the French side, the foreign secretary Philip Hammond has announced, as he said the government has “got a grip” on the Calais migrant crisis.

As Eurotunnel reported that there were a further 700 attempts on Sunday night to board Channel tunnel trains, Hammond said that officials from the UK Border Force would start working inside the Eurotunnel control room in Coquelles.

Hammond made the announcement after chairing a 90-minute meeting of the government’s emergency Cobra committee in Whitehall.

David Cameron was absent from the meeting, after embarking on the first stage of his summer holiday in the UK. The prime minister will return to London later this week before resuming his holiday.

Hammond said: “I think we have got a grip on the crisis. We saw a peak last week, since when the number of illegal migrants has tailed off. We have taken a number of measures in collaboration with the French authorities and Eurotunnel which are already having an effect and over the next day or two I would expect to have an even greater effect.”

The foreign secretary said that ministers and officials had agreed at the Cobra meeting that Britain would fund an extra 100 guards, taking the total number to 300, at the terminal at Coquelles. The guards will be recruited by the French authorities but will be funded by the UK.

Hammond said: “I’m pleased to say we have seen a much improved level of cooperation and collaboration with Eurotunnel over the past 48 hours, with trains being cancelled where appropriate and in some cases trains being reversed back into Coquelles where there is a danger of illegal migrants being on board.

“From this evening, UK Border Force and French police will have a presence in the Eurotunnel control room at Coquelles and that will greatly enhance the practical collaborative working at the site. I also understand this evening the company has accepted our offer of additional guards and we expect up to 100 additional guards to be deployed into the terminal area.”

Hammond announced that the strengthening of the perimeter fence around the entrance to the Channel tunnel in France will be completed by Friday. Ministers hope that the pressure on hauliers will be relieved by opening up military bases to take lorries delayed by the disruption in the tunnel.

He said: “On this side of the Channel we are in the final stages of procuring some additional facilities to support the (Operation) Stack lorry-holding operations so that when it is switched on again later this week the disruption on the motorways will be less.”

Hammond also announced that Britain and France would redouble their efforts for a “more robust approach” by the European Union to return migrants to their countries of origin. The two countries will also attempt to discourage migrants from travelling to Europe in the first place, by making clear that neither has “streets paved with gold” – reiterating the claim made by home secretary Theresa May over the weekend.

On Monday ministers announced that the requirement for landlords to check on the immigration status of potential tenants is to be toughened and rolled out across the country – even before an official evaluation of the West Midlands pilot scheme has been completed.

It has emerged that the pilot scheme, which started in December, has already led to British citizens without passports being turned away as tenants.

James Brokenshire, the immigration minister, told landlords on 7 July that the six-month pilot had raised concerns about some British citizens with limited documentation who appeared to find it harder to get access to rented accommodation.

Microsoft and Their $100 BILLION Offshore

While some domestic corporations do maintain headquarter offices in the United States, their money is often elsewhere to avoid the destructive tax code. But does Microsoft get an official pass or waiver from the Obama administration?

In September of 2014, Obama and Jack Lew at Treasury took decisive action.

Washington Post: The Obama administration took action Monday to discourage corporations from moving their headquarters abroad to avoid U.S. taxes, announcing new rules designed to make such transactions significantly less profitable.

The rules, which take effect immediately, will not block the practice, and Treasury Secretary Jack Lew again called on Congress to enact more far-reaching reforms. But in the meantime, he said, federal officials “cannot wait to address this problem,” which threatens to rob the U.S. Treasury of tens of billions of dollars.

“This action will significantly diminish the ability of inverted companies to escape U.S. taxation,” Lew told reporters. “For some companies considering deals, today’s action will mean that inversions no longer make economic sense.

“These transactions may be legal, but they’re wrong,” he added. “And the law should change.”

Tax analysts praised the new regulations, saying they will make it much harder for U.S. firms to bring cash earned abroad back to the United States tax-free — a major incentive in the relocations known as tax “inversions.” It was not immediately clear, however, whether the new rules would be sufficient to head off a wave of inversions expected to cascade over the American landscape in the weeks before the Nov. 4 midterm congressional elections.

Microsoft’s Offshore Profit Pile Surges Past $100 Billion Mark

Microsoft Corp.’s stockpile of offshore profits rose to $108 billion, with a 17 percent increase over the past year as the company continues reaping profits in low-tax foreign jurisdictions.

The company crossed the $100 billion mark, making it just the second U.S. corporation — after General Electric Co. — to do so, according to a securities filing July 31. Apple Inc. has more cash abroad than Microsoft, but it already has assumed for accounting purposes that it will pay tax on some of the stockpile and thus has less than $70 billion offshore that would affect earnings directly if repatriated.

What’s keeping Microsoft’s cash abroad is the U.S. tax code. The company would be required to pay the difference between its foreign taxes and the 35 percent U.S. corporate tax rate if it brought the money home.

To get its $108.3 billion back, Microsoft would have to pay the U.S. $34.5 billion in taxes. That equals a 31.9 percent rate, which suggests that the company has paid as little as 3.1 percent in taxes on its foreign income, because of operations in low-tax Ireland, Singapore and Puerto Rico.

The Internal Revenue Service and Microsoft are in the midst of an intense legal battle over the company’s transfer pricing, or intracompany transactions. The federal government is auditing the company’s returns as far back as 2004, and Microsoft has challenged the government’s hiring of outside lawyers.

Peter Wootton, a spokesman for Microsoft, declined to comment.

Repatriating Profits

Under current law, U.S. companies owe the full 35 percent rate on profits they earn around the world, but they don’t have to pay the U.S. until they repatriate the profits. That gives companies an incentive to book profits overseas and leave them there, and that’s just what they’ve done.

U.S. companies have more than $2 trillion amassed outside the U.S., according to a Bloomberg News review earlier this year of the securities filings of 304 companies.

Apple has more than $200 billion in cash stockpiled, with almost 90 percent of it overseas. As of its most recent annual report, Apple had $69.7 billion in profits on which it hasn’t assumed taxes.

U.S. lawmakers are looking for ways to get some of that cash back in the U.S. President Barack Obama supports a one-time 14 percent tax on stockpiled profits, with the proceeds going to highways and other infrastructure programs. Some Republicans favor a similar approach and are working on a detailed plan.

What the Obama Admin is not Telling you About Iran

In 2012, the U.S. Treasury Department which is responsible for maintaining the global terror list, placed the Iranian Revolutionary Guard Crops Qods Force in the terror database for violations of the Foreign Narcotics Kingpin Designation Act for trafficking Afghan narcotics in exchange for weapons to the Taliban.

On July 14, 2015, the U.S. Treasury posted the sanctions relief document on their website as a result of the signed agreement known as the JPOA.

From the Daily Beast in part: The bigger, more complicated story, though, is how the deal will go down with the organization that now plays a huge role in running Iran, albeit behind the country’s clerical façade: the Iranian Revolutionary Guard Corps (IRGC), also known as the Pasdaran, some of whose internationally infamous leaders showed up on the lists in the nuclear agreement annexes as people who will have sanctions against them lifted.

Whether this was an oversight, a sleight-of-hand, or an attempt to win Pasdaran support, it has to be understood that ever since Rafsanjani (ironically, of all people) let the IRGC into the Iranian economy, allowing it to invest in the country’s leading industries, the group has grown to become Iran’s most important financial power.

The IRGC is now the biggest player in Iran’s biggest industries: energy, construction, car manufacturing and telecommunications. A Western diplomat recently told Reuters that the IRGC’s annual turnover from all of its business activities is around $10 billion to $12 billion, which, if accurate, would be around a sixth of Iranian GDP.

From the United Nations 106 page report in part:

Northern Route

There are various supply chain structures in Central Asia. Trafficking through Turkmenistan appears to feed the Balkan route through the Islamic Republic of Iran rather than the Northern route. Turkmenistan is also unique in Central Asia as a destination country for Balkan route opiates.

 Traffickers increasingly utilize Central Asian railways to transport opiates to the Russian Federation and beyond. The size of some loads detected in 2010 suggests that traffickers are operating with a heightened confidence level. Massive seizures of hashish in containers destined to North America are a confirmation that railroad trafficking is also linked to transcontinental trafficking.

 The Customs union agreement between Kazakhstan, the Russian Federation and Belarus can be misused, as traffickers may opt to re-route opiate deliveries to Europe through the Northern route, as opposed to the traditional Balkan route. There are plans to extend the Customs union agreement to other states such as Kyrgyzstan and Ukraine, and possibly Tajikistan.

 Countering the flow of drugs is complicated by difficulties in co-ordinating efforts between national agencies within Central Asia and between this region and Afghanistan. This is reflected in limited intelligence sharing along lines of supply.

 Drug trafficking and organized crime are sources of conflict in Kyrgyzstan and potentially in the region as a whole. The inter-ethnic clashes that occurred in southern Kyrgyzstan in 2010 have been used by ethnic Kyrgyz criminal groups to assume predominance over ethnic Uzbek criminal groups and to control the drug routes through this part of Kyrgyzstan.

 Rising militancy has been reported across Central Asia, but there are no observed direct connections between extremist groups and drug trafficking. The preoccupation with combating insurgents in Kyrgyzstan and Tajikistan does, however, hinder counternarcotics efforts by, at least partly, shifting the focus of law enforcement away from drug control.

From the United Nations report in part:

Southern Route

 

Afghan heroin is trafficked to every region of the world except Latin America. The Balkan route (trafficking route through the Islamic Republic of Iran and Turkey) has traditionally been the primary route for trafficking heroin out of Afghanistan. However, there are signs of a changing trend, with the Southern route (a collection of trafficking routes and organized criminal groups that facilitate southerly flow of heroin out of Afghanistan) encroaching, including to supply some European markets.

Unlike the northern or Balkan routes that are mostly dedicated to supplying single destinations markets, the Russian Federation and Europe respectively, the southern route serves a number of diverse destinations, including Asian, Africa and Western and Central Europe. It is therefore perhaps more accurate to talk about a vast network of rouhtes than one general flow with the same direction.

The Islamic Republic of Iran and Pakistan face a tremendous challenge in dealing with the large flows of opiates originating from Afghanistan to feed their domestic heroin markets and to supply demand in many other regions of the world. The geographic location of the Islamic Republic of Iran and Pakistan makes them a major transit point for the trafficking of Afghan opiates along the southern route.

Iran will propagandize a narcotics problem but in truth, it feeds their economy, criminal activity, weapons smuggling and terrorism.

The opium trade and smuggling routes are so successful due to the criminal network and money, females are also trafficked for slave labor and sex.

Officials of the regime in Iran are involved in the “sex trafficking of women and girls”, the U.S. State Department said in an annual report on human trafficking released this week.

“Iran is a source, transit, and destination country for men, women, and children subjected to sex trafficking and forced labor,” the State Department said in its annual ‘Trafficking in Persons Report 2015.’

“Organized groups reportedly subject Iranian women, boys, and girls to sex trafficking in Iran, as well as in the United Arab Emirates and Europe,” the TIP report said.

“In 2013, traffickers forced Iranian women and girls into prostitution in the Iraqi Kurdistan Region. From 2009-2015, there was a reported increase in the transport of girls from and through Iran en route to the Gulf where organized groups sexually exploited or forced them into marriages. In Tehran, Tabriz, and Astara, the number of teenage girls in prostitution continues to increase.”

“Organized criminal groups force Iranian and immigrant children to work as beggars and in street vendor rings in cities, including Tehran. Physical and sexual abuse and drug addiction are the primary means of coercion. Some children are also forced to work in domestic workshops. Traffickers subject Afghan migrants, including boys, to forced labor in construction and agricultural sectors in Iran. Afghan boys are at high risk of experiencing sexual abuse by their employers and harassment or blackmailing by the Iranian security service and other government officials.”

So, back to the question, what is the real reason for the Obama administration aggressive relationship with Iran? With the sanctions lifted, the forecast of future terror activity coupled with smuggling and trafficking women, weapons, slaves and narcotics, the Obama administration has legitimized Iran as a world power forced to be equal on the global stage.

Immigration Issue In Germany, Tent Cities

Failed foreign policy and failed nations have immediate consequences and cause future financial destruction not only for America but for many Western nations, like Germany.

Germany Announces Crackdown on Immigrant ‘Welfare Abuse’

By Chris Köver

Germany has announced plans to curb access to welfare for immigrants from other European Union countries, in an attempt to clamp down on the abuse it claims has been a growing problem over the past year. Under a proposal agreed by the cabinet on Wednesday, Germany could expel EU citizens who have not found work in the country after six months, or who are found to have abused the welfare system. The move comes as other member states such as Britain toughen up social security rules in a bid to curb the so-called “welfare tourism” they say has resulted from EU enlargement. The plan would also tighten access to child benefit, which would only be given to those with a tax identification number, in an effort to stop families from claiming child support in several countries or for children they don’t have. Those convicted of benefits fraud, for example by forging documents or claiming payments while self-employed, could be banned from reentering the country for five years. Opposition politicians say such an entry ban would put it on a collision course with the EU, which maintains strict rules on freedom of movement within the bloc.

Tent Cities Test Germany’s Resolve to Support Swell of Refugees Germany is resorting to tent cities to house a flood of refugees led by Syrians fleeing civil war as soaring costs test the country’s willingness to accept newcomers. The government expects the number of asylum seekers entering the country this year to more than double to 450,000. Caring for them will run as high as 6 billion euros ($6.6 billion), the Frankfurter Allgemeine Zeitung newspaper reported this week, citing data collected from the interior ministries of Germany’s 16 states.

The influx presents challenges for Chancellor Angela Merkel and her government, with a majority of the public now favoring stricter immigration rules. Merkel herself was personally caught up in the debate earlier this month when she drove a Palestinian girl to tears after telling her that not all asylum seekers will get to stay.

 

“Migrants have become the No. 1 topic for German voters, replacing the old concerns about unemployment and the economy,” Joerg Forbrig, a senior program director at the German Marshall Fund of the U.S. in Berlin, said by phone. “This issue is the gravitational center and the political magnet for every German election.” While Merkel’s government is giving the states more money to pay for asylum and added staff to shorten the processing time of applications, the sheer number has left them stretched and resorting to tents to house people. Brandenburg, the state surrounding Berlin, has put up 23 army tents to house 280 people — a temporary solution that can only be used as long as the weather remains warm enough.

Mounting Backlog

“Tent accommodations aren’t the exception — the problems are massive,” said Bernd Mesovic, deputy managing director of refugee rights group Pro Asyl, adding that he worries Germany will soon have a backlog of 260,000 undecided asylum cases. Some politicians are pushing for laws that would more clearly identify who can stay and help speed up the deportation of people from countries such as the Balkan states who have little chance of being granted asylum. In Bavaria, Prime Minister Horst Seehofer said this month that he plans to take matters into his own hands and implement “rigorous” measures to more quickly send home rejected asylum seekers. In the poll released Thursday by broadcaster ARD, 63 percent of Germans want a new immigration law, while 27 percent said that’s not necessary. A total of 62 percent of those surveyed in a Bild newspaper poll this week said they support faster expulsion for people who don’t come from war zones.

Tearful Exchange

Uncertainty about her future in Germany left a 14-year-old Palestinian girl in tears at a Merkel town-hall meeting in the northern city of Rostock this month. The girl said her parents came to the country from a refugee camp in Lebanon and were still waiting for a decision on their asylum application four years later — prompting the chancellor to say that “some will have to go back.” The exchange caused a stir on social media and in the German press. This year there has already been 173 arson and other attacks, mainly on uninhabited buildings planned for refugees, in several towns and cities, according to news magazine Der Spiegel. That compares with 175 such attacks in all of 2014. In Troeglitz, located about 200 kilometers (124 miles) southwest of Berlin in the eastern state of Saxony-Anhalt, a building that was to house immigrants was firebombed in April. The town’s mayor quit after receiving threats from neo-Nazis. The issue has become a political topic in the state of Baden-Wuerttemberg, where Green party premier Winfried Kretschmann is facing a re-election bid in eight months. Kretschmann’s own party refused his plan to declare more southeastern European countries as safe places of origin, which would have limited the number of those eligible for asylum. Opponents have seized on the matter.

Uncontrolled

“There’s uncontrolled immigration at the moment that exceeds our capacities,” said Joerg Meuthen, the top candidate in the state from the anti-euro party Alternative for Germany. Of the 114,060 applications processed in the first half, 36 percent were granted asylum or protected by a deportation ban, while the rest were refused, according to the Federal Office for Migration and Refugees. At 20 percent, Syrians made up the biggest share of asylum seekers, followed by 18 percent from Kosovo and 14 percent from Albania. “This is a tragedy foretold,” said Shada Islam, director of policy at the Friends of Europe advisory group in Brussels. “When the EU borders states that are at war or broken — and we don’t help them — then anyone could have seen this coming as people flock to a pole of prosperity for a better life.”