Reporting money exports or imports

“Are you carrying more than $10,000?” asked the Customs and Border Protection officer at the airport.

“I’m not sure, we would have to count it.” I answered.

“How long will you be abroad?”

“About a week.”

“What will you do there?

“Representing a client at the U.S. Embassy whose young wife was denied a visa.”

“Are you a lawyer? Never mind, you can go.”

That was the only time while traveling that I was asked how much money I was carrying. At other times, CBP officers must have thought that I was probably too poor to be carrying over $10,000.

Others who, with all due respect, appear poorer than me have had trouble with the $10,000 question with terrible consequences.

Reporting requirements

Federal law, 31 USC § 5316, requires every person, agent, or bailee (trustee) to file a report if such person knowingly (1) transports, is about to transport, or has transported, monetary instruments of more than $10,000 at one time (A) from the United States to a place outside the United States, or (B) to the United States from a place outside the United States; or (2) receives monetary instruments of more than $10,000 at one time transported into the United States from a place outside the United States.

The report must be filed on Form FinCEN 105 “Report of International Transportation of Currency and Monetary Instruments.” Get the form from a CBP officer before traveling or upon arrival.

A customs officer may stop and search, at the border and without a search warrant, any vehicle, vessel, aircraft, or other conveyance, any envelope or other container, and any person entering or departing from the United States. 31 USC § 5317(b).

Any money or property involved in violating 31 USC § 5316 is subject to criminal or civil forfeiture.

The violators

Most people are not aware of the reporting requirements. But that is no excuse. As the old Latin maxim puts it: Ignoratia legis neminem excusat. Some have complained that the government should post signs at the airport about the requirements. That is tantamount to asking the government to paste each page of the Penal Code on the walls of public buildings.

Others think that a person cannot take out or bring in more than $10,000, so they try to hide it in their bra or other unmentionable garments. “This is my life’s savings, why can I not bring it with me,” a woman remonstrated. There is no prohibition against carrying more than $10,000. However, it must be reported.

Others know about the reporting requirements. But they fail or refuse to make the report.

Options for violators

When a person is charged with violating 31 USC § 5316, such person may (a) take no action in which case the government will initiate forfeiture proceedings, (b) file a petition for the remission of forfeiture before forfeiture proceedings are initiated, (c) make an offer in compromise before forfeiture proceedings are instituted, (d) abandon the property or state that you have no interest in it, or (e) file a claim and request that the case be referred to the U.S. Attorney for court action.

It is best to consult an attorney with experience in these matters to determine the most feasible option. Our office has successfully represented persons charged with violating the reporting requirements.

Criminal consequences

There are criminal consequences for violating 31 USC § 5316. Additionally, the violator could be charged with making false statements to a federal officer if the violator denied carrying more than $10,000 and is found telling a lie.

Early this year, a Filipino senator’s wife was reportedly convicted of cash smuggling and conspiracy to structure monetary transactions in Las Vegas. She claimed she was carrying $10,000, but was found to have $40,000 in her socks and luggage. After pleading guilty, she was sentenced to three years of probation, including five months home confinement, a fine of $40,000, and forfeiture of $159,700. The maximum penalty imposable was five years imprisonment. Why did she not avail of the options available and avoid a criminal case?

(Atty. Tipon has a Master of Laws degree from Yale Law School and a Bachelor of Laws degree from the University of the Philippines. He specializes in immigration law and criminal defense. Office: 800 Bethel St., Suite 402, Honolulu, HI 96813. Tel. (808) 225-2645. E-Mail: filamlaw@yahoo.com. Websites:  www.MilitaryandCriminalLaw.com. He is from Laoag City and Magsingal, Ilocos Sur. He served as an Immigration Officer. He is co-author of “Immigration Law Service, 1^st ed.,” an 8-volume practice guide for immigration officers and lawyers. Listen to the most funny, interesting, and useful radio program in Hawaii on KNDI at 1270 AM dial every Thursday at 7:30 a.m. This article is a general overview of the subject matter discussed and is not intended as legal advice. No warranty is made by the writer or publisher as to its completeness or correctness at the time of publication. No attorney-client relationship is established between the writer and readers relying upon and/or acting pursuant to the contents of this article.)