1.2K

Regardless of where you’re from or where you’re coming from, there are certain rules you have to follow when you enter/exit the United States. You can’t bring certain items into the country. You can’t use your phone in certain secure areas (as this woman discovered). And if you enter or exit the U.S. with more than $10,000, you have to declare the amount to Customs and Border Protection (CBP).

It doesn’t matter if the money is paper currency (U.S. or foreign), coins, traveler’s checks (yep, they’re still a thing), cashier’s checks, promissory notes, money orders, negotiable instruments or investment securities in bearer form. If the combined total of them is equal to or greater than $10,000.01, you have to declare it.

It’s not that you’re not allowed to bring that much money with you into or out of the country; you definitely can. The government just wants to keep track of the international transportation of currency (cash, of course) or monetary instruments (checks, promissory notes, or money orders).

Why? What business is it of theirs?

Actually, it is their business, for a few reasons:

To prevent tax evasion

Let’s say someone’s coming back from Macau, where they just won $25,000 while gambling. If they don’t report this large sum of money, it could be because they’re trying to avoid paying taxes on it. Declaring large amounts of cash will help tax authorities ensure that this “big winner” is paying their fair share of taxes.

To prevent money laundering

Money laundering involves concealing the illegal origins of money through a series of transactions, making it harder to trace. By having passengers declare significant sums of money, authorities can keep a closer eye on cash flows and detect potential illicit activities.

To combat financing of terrorists or drug cartels

Terrorist organizations rely on financial support to carry out their activities. But authorities can disrupt their funding sources by monitoring large cash transactions. Declaring large amounts of money allows law enforcement agencies to investigate the legitimacy of the funds and take appropriate action if they suspect anything fishy is going on.

Oh, and substitute the word ‘terrorists’ with ‘drug cartels,’ and you’ve got another reason.

How to Declare Your Money

You have to complete a FinCEN Form 105 (here’s a PDF of the form), which can be submitted either in paper format or electronically through the Department of Homeland Security’s online portal. The requirement applies whether you’re entering or exiting the United States.

If you are entering the U.S., you also have to fill out a Customs Declaration Form (CBP 6059B). This form requires you to indicate whether you are carrying more than $10,000 in cash or monetary instruments. Following this, you must submit the FinCEN Form 105 to complete the declaration process.

Consequences of Not Declaring Large Sums

If you don’t declare having the large sum of money and are caught (and they’re good at their job; they will catch you), customs officials have the authority to seize your money. You could also face legal penalties, including fines and potential criminal charges.

How can I learn more?

Funny you should ask – CBP has the answer.

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