Customs and International Trade Law Blog : International Trade Lawyer & Attorney : Becker & Poliakoff Law Firm : Customs Law, Border Protection

Bank accounts are more frequently being frozen or seized by the Federal Government.  The typical allegation by the Federal Government is that the money in those bank accounts were the proceeds of money laundering.  Often, the owners of the seized bank accounts were somehow connected to shipping cargo to, receiving cargo from, or doing business with Colombia.  The owners of the seized bank accounts then typically receive a letter from U.S. Customs and Border Protection advising of the seizure, and the procedure to attempt to get the money back.

Money laundering typically means that the money in the bank account was seized because Immigration and Customs Enforcement (ICE) believes it was generated from the sale of illegal drugs.  ICE refers to this type of financial crime as "Trade-Based Money Laudering."  So, for example, if a company in Colombia received money from the sale of drugs, and then purchased some merchandise from a U.S. company, and paid that U.S. company, the money received by the U.S. company could be seized as the proceeds of certain unlawful activity set forth in the money laundering law at 18 U.S.C. 1956.  The allegation of money laundering is sometimes accompanied by an allegation of filing a false shipper's export declaration or Automated Export System (AES) with U.S. Customs, in violation of 15 CFR section 30.7.

Persons who, or companies which have their bank accounts frozen or seized are entitled to know the reasons for such a severe action by the Federal Government. They are also entitled to challenge the actions by the Federal Government through the administrative petition process with U.S. Customs and Border Protection or by going to Federal Court. Legitimate business persons whose bank accounts have been frozen or seized by ICE or through a Seizure Warrant should contact a knowledgeable attorney to pursue having their money returned to them promptly.

• Email This
• Print
• Comments
• Trackbacks
• Share Link

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.

• Email This
• Print
• Comments (90)
• Trackbacks
• Share Link