Security Clearance / Foreign Assets

Discussion in 'ROTC' started by EDelahanty, Feb 7, 2012.

  1. EDelahanty

    EDelahanty Member

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    Is anyone here familiar with the issue of foreign assets and security clearance? I have an impression from some random reading that owning of foreign assets may pose an issue or even problem with respect to obtaining security clearance. Furthermore, in the back of my mind this may even extend to parents.

    Seeing as how Cadet Delahanty's room and board qualifies as taxable income, I'm thinking of starting an IRA for him (probably a Roth once I figure out how it works). The idea of having a retirement account will no doubt strike the typical 20 year old as entirely bizarre and unnecessary. Providing far in advance for an unimaginably ancient version of yourself, over triple your present age, may in fact impose a sort of psychic burden. But I'm getting off the subject...

    There are some foreign telecom companies which offer juicy dividends (for the moment), even after foreign withholding taxes. The companies' shares (TDRs?) are listed on the New York Stock Exchange. These would be suitable for a retirement account.

    Is there a problem if Cadet Delahanty's account has any of these shares? What about the accounts of Delahanty mater and pater?

    What about foreign real estate? Does this mean I will have to forget about that smart little mud hut in Bechuanaland I've had my eyes on? I'm on the verge of getting a contractor's estimate for installing a skylight in the thatched roof.
     
  2. Pima

    Pima Parent

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    When they go for their TS, they will run a credit report, and the investments will show up, however, since he will be paying federal/states taxes on this, even with a ROTH, I would assume that this is a non-issue.

    Personally for me, since I hate doing taxes, the last thing I would want is to file one more form, so that would be my deciding factor.:shake:

    As far as the TS going into your investments, no, they don't do that, they will not pull your credit report.

    The TS clearance is a pain in the arse because it is @50 pages the cadet/mid must submit, with people being interviewed, but unless this investment is in Yemen, I wouldn't concern yourself with this at all.

    Placing his name on a foreign owned property would cause them to dig deeper in the investigation.
     
  3. dunninla

    dunninla Member

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    :confused:
     
  4. Pima

    Pima Parent

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    This was 2 part.

    As I stated, they will pull their DS's credit report, the ROTH investment in his name will be HIS credit report.

    The second part was if their (parents) investment might be an issue.

    My response was and is they will not pull your credit report as the parent. The OP is a parent.
     
  5. Jcleppe

    Jcleppe Member

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    That makes it a lot clearer, thanks
     
  6. NorwichDad

    NorwichDad Member

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    I have been thinking about this. This is my world. Keep your son's investment domestic. No need to have any red flags come up for him. There is some serious stuff going down in Europe right now. Greece this week, Portugal next week and Italy at the end of the month. I would stay US in Real Estate also. If you do that you may be able to buy the island instead of the just the mud hut in Bechuanaland in a few years.
     
  7. Luigi59

    Luigi59 Banned

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    Owning shares of foreign stocks that are traded as ADRs in the USA is not a security concern.

    They are not foreign assets. They are traded on the US exchanges, they pay dividends in dollars. I wouldn't give it a second thought.
     
  8. NorwichDad

    NorwichDad Member

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    Yes on ADRs but TDRs especially on mud huts in Bechuanaland are not traded as far as I know. Also stay away from the Ho chi minh city municpal bonds :thumbdown:
     
  9. pennak

    pennak Member

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    I agree. Please note that investigators have a lot of discretion and they pretty much can look into just about anything in your entire life for a TS. Secret of getting padt all of this is full disclosure. They will pull a credit report. They will look at all your assets your spending history, your foreign travel and that of your family, where you were born and every school you attended including your grades as well criminal records the list is endless. And five years they do a refresh.
     
  10. Pima

    Pima Parent

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    Everyone who has endured the pain of a TS clearance will tell you, keep everything!

    5 yrs from now this will occur again and the info you submitted as a cadet for your 1st TS must match up. Dates, etc.
     
  11. scoutpilot

    scoutpilot Member

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    There seems to be a lot of supposition that we are discussing a TS/SCI.

    Is he up for a secret clearance or a TS/SCI? I ask because a TS is not a typical clearance for a cadet, or most officers.
     
  12. EDelahanty

    EDelahanty Member

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    Contracted MS2 at present. My concern is with whatever security clearance would be associated with his commissioning as a 2nd LT.
     
  13. dunninla

    dunninla Member

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    scout -- what clearance does a newly minted 2LT get for Military Intelligence branched into, say, Infantry?
     
  14. scoutpilot

    scoutpilot Member

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    With a few exceptions, you're talking about a Secret clearance. No big deal. Minor ownership of foreign assets would not present a problem. They look at foreign ties as a matter of influence on the individual. A few small foreign investments are generally no issue. If he had hundreds of thousands or millions directly invested overseas, that might be an issue.

    Don't sweat it.
     
  15. cb7893

    cb7893 Member

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    You guys are all starting to worry me, so I am asking you to be brutally honest.

    My DS is an AROTC contracted MS I. His Mom, my wife is a Polish citizen. Her family was somewhat scattered throughout the years. Ergo, DS has done some serious travelling. While schoolmates went to Disneyland, we went to Poland or England or Luxembourg to visit family.

    He spent his junior year of High School in Brazil and gap year in Taiwan, both on Rotary exchanges. We were fully supportive, believing that facility with other languages would be key in his future and that nothing beats total immersion. His connections to these places are thick. He spent some of the Christmas Vacation in Brazil staying with his host families. He has received numerous invitations to visit Brazil, China, Taiwan, Mexico.

    When we visited him two weeks ago, while driving to dinner, he received a phone call and carried on a ten minute conversation in Chinese. When we asked him what that was about, he said he was asked to be on the board of the Chinese Students' Association. He said, with a huge wink, they need an under represented minority who can speak good Chinese.

    You have to understand that his competitiveness is extreme. He approaches speaking Spanish, Portuguese or Chinese like he approaches his PFT or Calculus. If you want to get better you have to do it.

    My advice to him was to disclose everything up front to his superiors and to aim for maximum transparency.

    Is he asking for trouble? Should he keep doing what he's doing? Is there any advice to make his path easier as he approaches commissioning?

    Thanks in advance.
     
  16. Jcleppe

    Jcleppe Member

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    With full disclosure including some research on dates and duration of travel he should be fine. The process may take a bit longer but barring any huge red flags in his associations it should all work out in regard to his travels. They will ask questions about foreign travel and associations with foreign nationals but is sound like they would all be easily answered.

    Sounds like an Intelligence Officer in the making.
     
  17. scoutpilot

    scoutpilot Member

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    If he were to maintain an enduring position on a Chinese board of Students, he might invite a bit more scrutiny. It likely would not hinder his eventual clearance. HOWEVER, you need to have a serious talk with him (or if you would like, PM me and we can discuss it further) about the potential for trouble with his involvement in that board. It can become a serious matter very quickly.
     
  18. Jcleppe

    Jcleppe Member

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    Take Scoutpilot's advice, a PM to him is not a bad idea. With all the dust that has settled on my Cold War Era TS Clearances I'm not sure you could even find them anymore.
     
  19. scoutpilot

    scoutpilot Member

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    A red light just started blinking at Langley... :wink:
     
  20. Jcleppe

    Jcleppe Member

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    :redface:Yep, they've probably already read them.
     

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