Did you know that if you travel to the U.S. carrying large amounts of money, you are required to report that money to U.S. Customs and Border Protection (CBP)? Failure to report can lead to the seizure of your money by CBP, with no guarantee that it will be returned to you. The penalties for non-compliance can be severe.
There is no limit on the amount of currency or other monetary instruments a traveler can carry when entering or departing the U.S. or sending it via mail. However, if you transport, attempt to transport, or cause to be transported (including by mail or other means) currency or other monetary instruments in an aggregate amount exceeding $10,000 or its foreign equivalent) at one time from the U.S. to any foreign country, or into the U.S. from any foreign country, you must file a report with CBP. The required report is called the Report of International Transportation of Currency or Monetary Instruments, FinCEN Form 105.
Reporting is required under the Currency and Foreign Transaction Reporting Act (PL 97-258, 31 U.S.C. 5311, et seq.), as amended. Failure to comply can result in civil and criminal penalties and may lead to forfeiture of your monetary instrument(s).
Often travelers risk losing their currency to CBP because they do not know what is considered “monetary instruments,” the consequences of splitting currency or “monetary instruments” among a group of travelers, and whether their group falls within the definition of a family.
“Money” means monetary instruments and includes U.S. or foreign coins currently in circulation, currency, travelers’ checks in any form, money orders, and negotiable instruments including checks, promissory notes, and money orders in transferable form, incomplete instruments, checks, money orders, postal promissory notes signed but the name of the payee omitted or investment securities in bearer form. The term “monetary instruments” does not include: 1) Checks or money orders made payable to the order of a named person which have not been endorsed or which bear restrictive endorsements; 2) Warehouse receipts; or 3) Bills of lading.
There are no taxes or fees that must be paid to customs for international transportation of money. It is simply a requirement to inform CBP of the amount of currency or “monetary instruments” being transported via the Form 6059B Customs Declaration.
Often CBP will seize currency because a group of people traveling together divide the money for safekeeping and are under the impression that because each traveler has less than $10,000.00, there is no declaration requirement. However, if the group of travelers falls under the definition of a “family,” the sum of all of their money, if it amounts to more than $10,000.00, must be declared.
In 2016, CBP issued a rule to expand the definition of family members residing in the same household to more precisely define the relationships of citizens and residents and international visitors who travel together as a family. Travelers must understand whether their group falls within this category and if so, do not divide money among your family members.
CBP may seize the money under the typical seizure provisions of 31 U.S.C. § 5316, 31 U.S.C. § 5317, and a structuring provision under 31 U.S.C. § 5324. If CBP determines that there was structuring or an attempt to structure or assist in structuring, the likelihood is that CBP may retain 50% of the currency seized.
After CBP has seized your money, the Agency will issue a “Customs Receipt for Seized Property.” This form is very important as it contains the Fines, Penalties, and Forfeitures (FP&F) case number. This case number will assist in quickly obtaining a Notice of Seizure from the FP&F Officer who will assign a paralegal specialist to manage your case. The Notice of Seizure will provide options on how to respond within 30 days from the date of the seizure notice. We often recommend filing a petition to get the seized currency remitted from CBP custody by establishing the legitimacy of the currency and its use. The proper option will depend on the facts of your case.
If you are planning to travel internationally with over $10,000.00, contact us to discuss the best approach to ensuring your money is safe from seizure. If your money has been seized by CBP, our team can assist. We can discuss your options including submitting a petition to CBP and ensuring you properly respond to any alleged violations, including structuring allegations. If you would like further information or assistance, please contact Jessica Rifkin (jrifkin@ofwlaw.com), Tom O’Donnell (todonnell@ofwlaw.com) Lara Austrins (laustrins@ofwlaw.com), or Denise Calle (dcalle@ofwlaw.com).
