Help! U.S. Customs Took My Money at the Airport
You may legally carry or mail any amount of money you want into or out of the United States, but if it is more than $10,000 at one time, you better first report it to U.S. Customs and Border Protection. Otherwise, you risk U.S. Customs taking it from you, and never getting it back. Why? Because your failure to report the international transportation of money is a violation of the Currency and Foreign Transaction Reporting Act.
All too often, I am contacted by a distraught American ciitizen or resident returning from a trip overseas, or a foreign visitor to the United States, who was unaware of the laws regarding currency reporting. The person was asked by a U.S. Customs officer upon arrival at the international airport if he or she was carrying over $10,000. When the passenger honestly answer "yes", or the U.S. Customs officer believes the passenger may be lying about the amount of money being transported, the passenger and his or her luggage are examined. If over $10,000 in monetary instruments, including travelers checks and U.S. or foreign money, is discovered, and the required form, FINCEN Form 105, has not been filed with U.S. Customs, all of the money is likely to be seized on the spot by U.S. Customs.
A formal Seizure Notice will eventualy be issued by U.S. Customs to the passenger, and the passenger may hire a customs attorney to pursue the administrative petition process to get the money (or most of it) back. Proof of the legitimate source of the money and proof of the legitimate intended use of the money are required in communicating with Customs. Eventually, after several months, Customs may return typically 90% of the money.
It is an expensive mistake to not report to U.S. Customs when either carrying, mailing, or receiving over $10,000 internationally. Please read U.S. Customs and Border Protection's "Currrency Reporting" flyer and look at the FINCEN Form 105 and its instructions before attempting to transport over $10,000. There are no customs duties, taxes or other fees paid to U.S. Customs for the international transportation of the money; it is merely a reporting requirement to U.S. Customs.
Your article implies that when the traveler answers “Yes” to the Inspector’s oral question, that the money will be seized if the FincCEn form 105, Currency and Monetary Instrument Report (CMIR), has not been completed. That’s not a likely outcome. In order for the money to be seized, there has to be evidence that the person had knowledge of the reporting requirement and knowingly failed to report it. Here’s how that works, before a passenger arrives at an airport, they are provided a Customs declaration to complete, that form includes a question about transporting more than $10K in cash or monetary instruments. If the person answers yes, they are flagged for secondary inspection where they are provided the CMIR to complete. Upon completion, the inspector may choose to verify the funds. If the form was completed accurately and truthfully the form is accepted and the traveler is free to depart—with all his money. However, lets say that the traveler indicates on the form that he is in possession of USD $10,001 but upon verification the Inspector discovers $25,000, then all the money will be seized and the traveler will have to petition CBP for the return of the money—a mitigated penalty is the likely outcome of such a scenario, not total forfeiture.
Another likely scenario, would be the passenger initially completing the Customs Declaration by answering “No” to the question, if he is asked by the Inspector if he has over $10, 000 and subsequently answers “yes” he will be allowed to complete the CMIR form and will not have his money seized—although a thorough secondary exam will likely ensue.
If the traveler answers “No” on the written declaration and orally to the inspector, then seizure is assured. Also, a likely visit by an ICE agent and possible criminal charges if a connection to other criminal activity is suspected. If no criminal charges, a mitigated penalty is still the likely outcome.
The published comment by "Kevin DC" is absolutely correct as to current U.S. Customs and Border Protection policy and procedure. Thank you Kevin for adding more details in real-life type situations that travelers face everyday when arriving at international airports or other ports of entry into the United States.