Tag: failure to report

Dulles Does it Again: CBP Seizes $42k in Cash to Ghana

Dulles CBP seized $42,000 in cash from a man going to Ghana. As the story (original here) below explains, the man only reported $8,000 verbally; then he wrote down $15,000 on his FinCEN 105 form; then, they brought the dogs out. When the dogs were done, they found a total of $42,606 and €240.

Although bulk cash smuggling and failing to report currency are both crimes, not everyone is criminally charged. A person still faces civil forfeiture of the cash involved in the violation, even if not criminally charged. In this case, it was a catch and release; they caught him, seized the money, and released him to continue on his trip. He will be able to get at least some of the money back if he can show it came from a legitimate source and had a legitimate intended use. Here’s the story, with pictures:

U.S. Customs and Border Protection (CBP) officers seized more than $42,000 from a man boarding a flight to Ghana Tuesday at Washington Dulles International Airport.

CBP officers seized $42k from Ghana-bound man
November 7, 2017 at Washington Dulles
International Airport

The man, who CBP has not named because he was not criminally charged, initially reported to officers that he possessed $8,000.  After officers advised the man of U.S. currency reporting regulations, the man wrote that he possessed $15,000 and he completed a financial reporting form.

A CBP currency detector dog then alerted to bulk currency in the man’s carry-on baggage.  The man then produced $2,480 in U.S. currency and 240 Euros from his jacket, $10,216 from his backpack, and $710 from his front pants pocket.

CBP officers then discovered a package that contained $8,000, an envelope that contained $8,000, and an additional $13,200 inside a pouch, all concealed inside his backpack.  The total amount of currency the man possessed equaled $42,606 in U.S. dollars and 240 Euros.

Following the currency seizure, CBP officers returned $406 in U.S. currency and 240 Euros to the man and released him to continue his journey.

This is the second significant currency seizure from a Ghana-bound traveler in two months.  On September 23, CBP officers seized $150,228 in unreported currency at Washington Dulles International Airport.

Has Dulles CBP seized your cash?

If Dulles CBP seized your cash, beware that you stand to lose a lot of it because of their aggressive penalization of bulk cash smuggling and structuring offenses. You should read our trusted customs money seizure legal guide and contact our customs lawyer for a free cash seizure consultation by clicking the contact buttons on this page.

 

$150,000 laid out on a table at Dulles airport after the cash was seized by Customs

3rd Largest Dulles Customs Cash Seizure of $150,000

CBP in Dulles recently made a very large cash seizure from an airline passenger headed to Ghana. It is CBP at Dulles Airport’s third largest seizure since 2003.

Here is the story, without comment, as shared by CBP:

While conducting an outbound enforcement operation, U.S. Customs and Border Protection (CBP) officers seized more than $150,000 in unreported currency from a Ghanaian man on Saturday at Washington Dulles International Airport.

The man, who CBP has not named because he was not criminally charged at this time, reported to officers that he possessed $10,000.  The man reported that currency on a financial disclosure form and presented $10,000 in a zippered bag along with $200 and 100 Ghana cedis in his wallet.  During a baggage examination, CBP officers discovered $40,000 concealed inside a pair of pants, and another $100,000 concealed inside a pair of sweatpants.

The total currency the Ghanaian man possessed equaled $150,228.  CBP officers returned $2,228 to him as a humanitarian release so that he may continue his travel.

This is CBP’s sixth largest currency seizure at Dulles since CBP’s inception in March 2003, and the second largest currency seizure in the past 13 years.  The top two currency seizures, of $318,519 and $303,031, occurred in 2003, and more recently, a $156,023 currency seizure in 2014 tops this seizure.

And for the pictures:

$10,000 cash in a zippered bag/purse seized by Customs

 

$150,000 laid out on a table at Dulles airport after the cash was seized by Customs

Has Dulles CBP seized your cash?

If Dulles CBP seized your cash, beware that you stand to lose a lot of it because of their aggressive penalization of bulk cash smuggling and structuring offenses. You should read our trusted customs money seizure legal guide and contact our customs lawyer for a free cash seizure consultation by clicking the contact buttons on this page.

Piles of cash seized by CBP officers at Philadelphia airport.

$93k Seized by Philly CBP

I’ve had limited time to blog about customs law lately, but there was a large currency seizure out of Philadelphia reported about 2 weeks ago. At $93,000, it is among the largest of the run-of-the-mill failure to report/bulk cash smuggling cases that I’ve seen at the nation’s airport.

Usually, these types of seizures are typically between $10,000 and $40,000, but sometimes larger; therefore, moving $93,000 out of the country likely took customs officers seizing the cash at the airport by surprise.

Here’s the story:

U.S. Customs and Border Protection (CBP) officers seized more than $93,000 from a Qatar-bound family for violating federal currency reporting regulations Tuesday at Philadelphia International Airport.

CBP officers conducted an inspection on departing international passengers and encountered a man, his wife and their five children.  Officers explained the currency reporting regulations to the family and the father reported verbally and in writing that they possessed $12,000.  During the inspection, CBP officers discovered a combined $93,393 concealed on the man’s, the woman’s, and their adult child’s bodies.  CBP officers seized the currency.

CBP officers returned $3,393 to the family and released them to continue their journey.

So this airport seizure involved 7 people — a husband, wife, and 5 children. The phrase “concealed on . . . their . . . bodies” does not bode well for this family. Recall, the consequences a failure to report are less than when the offense involves bulk cash smuggling (i.e., concealing the cash with the intent of avoiding the currency report).

Has Philly CBP seized your cash?

If Philly CBP seized your cash, read our trusted customs money seizure legal guide and contact our customs lawyer for a free cash seizure consultation by clicking the contact buttons on this page.

 

 

U.S. Money Seized by Customs (CBP) Stacked on a Table with Envelopes

CBP Seizes Money for Currency Reporting Violations at Dulles & BWI Airports

CBP seizes more than $32,000 for currency reporting violations at Dulles and BWI airport last week. The news release reveal the travelers were a U.S. citizen and a Nigerian citizen, and were involved in two separate currency reporting incidents.

Before getting into the details, the news release explains:

“Federal currency reporting requirements are simple.  International travelers can carry as much currency as they wish into and out of the United States, but they must report all U.S. and foreign monetary instruments totaling $10,000 or greater on a U.S. Treasury Department financial form.  None of the currency is taxed.”

All true, except the reporting requirement applies to “more than $10,000” not “$10,000 or greater.” The story gives some good details on each of the seizures cases:

On Friday, CBP officers seized $13,821 from a Nigerian citizen at BWI.  He reported to CBP officers that he possessed $9,000.  During a secondary examination, CBP officers discovered British pounds concealed inside a carry-on bag.  The traveler then tossed a wad of rolled up currency on the examining table.  The currency, which consisted of dollars, pounds and Euros equaled $13,821.  CBP officers seized the currency and returned $500 to the traveler for humanitarian purposes.

“The traveler then tossed a wad of rolled up currency on the examining table” after reporting he had $9,000. The wad totaled $13,821. If this traveler had read our article about a case in Miami, he would have known that throwing money at CBP is not the same as reporting it.

The other incident reveals how unhelpful CBP can be at times.

On Thursday, CBP officers seized $18,578 from a U.S. citizen who arrived to Dulles on a flight from Dubai. She initially reported that she possessed $10,000. CBP officers found additional currency and checks during a secondary examination. CBP officers released $322 and two checks totaling $56 for humanitarian purposes.

$322 in humanitarian relief is pretty good. But $56 in two checks? I’ve had clients left with nothing after a seizure. Not even enough change to pay for a baggage cart. I can imagine how grateful this person was to receive two checks that totaled $56. The real reason they returned the checks was because they weren’t worth much, and CBP did not want to go through the trouble of depositing them and including them as part of the seizure

If you had cash seized for a currency reporting violation, make use of our free customs money seizure legal guide or contact us for a free currency reporting violation consultation!

A pile of $20 bills on a table.

CBP Seizes Structured Cash at Dulles

CBP Dulles seized over $23,000 that was unlawfully structured and not reported. Below, the story from CBP, explains that the a man was leaving the United States for South Africa and reported only $9,000, when he really had more than $13,000. This is the second recent story about a cash seizure at Dulles for from someone traveling to South Africa.

To make matters worse, CBP discovered that he was traveling with his sister, who was carrying another $10,000 for her brother. At Dulles airport, a structuring offense means a hefty penalty even if legitimate source and intended use of the documentation is presented.

Here are the interesting parts of the story, as told from the perspective of CBP Dulles:

STERLING, Va. — U.S. Customs and Border Protection (CBP), Office of Field Operations (OFO), at Washington Dulles International Airport seized over $23,000 from a South Africa-bound traveler on Thursday for violating federal currency reporting regulations.

During an outbound inspection, a CBP currency detection canine alerted to the carryon bags of a U.S. citizen.  The man, both verbally and in writing, declared to CBP officers that he possessed $9,000; however, $13,267 was discovered in his bags and on his person.  During the course of the inspection it was determined that he was traveling with his sister, a Ghanaian citizen.  An additional $10,000 in unreported currency was found in her bags which the man stated belonged to him.  The officers seized the $23,267, returned $667 to the man for humanitarian relief, and advised him how to petition for the return of the currency.  The travelers were then released to continue their journey.

Did you structure cash seized by CBP?

If you structured cash that was seized by CBP, you really need a lawyer. Read our trusted customs money seizure legal guide and can contact us for a free cash seizure consultation by clicking the contact buttons on this page.

 

A picture of nearly $150,000 in cash seized by CBP laid out on a table

Seizures of undeclared cash from Chinese nationals on the rise

In “Seizures of undeclared cash spike at Vancouver International Airport“, reporters for The Globe & Mail did a lot of good reporting work and present interesting information on customs cash seizures from Chinese nationals occurring in Canada.

For instance, in the past 3 years customs seized $13 million dollars from 792 Chinese nationals passing through the airport. The average seizure was $17,000. The substance of the article is that these people are bringing the money into the country to get it out of China’s economy (which they fear may crash), to buy homes and/or invest in real estate. This has artificially inflated the property values in cities like Vancouver, and the government there imposed a tax on foreign purchasers of real estate to cool the market. We’ve previously blogged about this in Cash From China Seized Due to Capital Controls and Why some Chinese travel with cash leading to airport seizures.

If you’re interested in customs cash seizures, you should definitely check out the entire article. However, I’ll quote what I find most interesting below:

As Vancouver’s housing market began sizzling, border guards at the nearby international airport were seizing millions of dollars in undeclared cash from Chinese citizens, with total amounts jumping 50 per cent in each of the past three calendar years, government data show.

According to the information, released to The Globe and Mail by a New Democrat MLA, during that period, border guards confiscated more than $13-million in hidden currency from 792 Chinese people passing through Vancouver International Airport, which is Canada’s second-busiest after Toronto. The average person had $17,000 in hidden bills, bank notes or drafts.

That is in addition to the $323-million declared at the airport by 20,000 Chinese citizens or passengers on flights to and from that country, during roughly the same period, according to data released to The Globe through a freedom of information request.

Experts say these sums of hidden and declared money, which dwarf the funds brought through the airport from other countries, were likely carried by some of the 922,000 people from China recently given 10-year temporary visas, which allow them to visit for up to six months at a time.

Former RCMP investigator and financial crimes specialist Kim Marsh said many travellers bring large amounts of money – or bank notes or drafts – instead of transferring them through institutional routes because they want to avoid paying taxes in Canada and get around Chinese currency laws that make it illegal for the average citizen to take more than $50,000 (U.S.) a year out of that country.

[ . . . ]

Daniel Kiselbach, a Vancouver-based tax litigator, said the vast majority of Chinese citizens bringing large amounts of cash into B.C. are “just trying to get along in life and they have legitimate reasons for having the money in their possession,” such as buying gifts for family members or paying for living expenses at university.

He said that these visitors have many disincentives to report their assets to the Chinese government and are likely just as suspicious of how information on their finances will be handled in Canada.

“Maybe that would get back to the Chinese government, I don’t know,” Mr. Kiselbach said.

Two years ago, Mr. Kiselbach tried to get Ottawa to divulge whether it has an agreement to share such information with China, as it does with the United States and other Commonwealth countries. Canada Border Services Agency does not make these agreements public, he said.

Vancouver MLA David Eby, housing critic for the opposition New Democrats, said he is concerned that the amount of cash seized from Chinese citizens at YVR rose from $2.8-million in 2013 to $6.4-million last year.

[. . . ]

Anyone can bring as much money as they want in or out of Canada as long as they declare any sum of $10,000 or more – otherwise it could be seized. Border guards at Vancouver airport confiscated $19-million in undeclared cash from 2013 to 2015, with almost three quarters of it belonging to Chinese citizens. (Upwards of 3,200 passengers arrive each day from flights originating in Hong Kong and mainland China, according to data from the airport.)

Experts say Chinese travellers could have several reasons for not declaring assets.

Mr. Kiselbach added that CBSA likely ramped up the scrutiny on Chinese passengers because it gives increased attention to citizens from countries deemed a high risk for activities such as money laundering and financing terrorism.

Hayley Howe, an anti-money laundering expert at Vancouver-based consulting firm MNP, said many foreign visitors may be unaware of Canada’s currency reporting requirements or unable to read the customs form properly when they enter or exit the country.

Has U.S. Customs & Border Protection  seized your cash?

If U.S. Customs & Border Protection has seized your cash, you need a lawyer. Read our trusted customs money seizure legal guide and can contact us for a free currency seizure consultation by clicking the contact buttons on this page.

An image of cash lined within the pages of magazines seized by Chicago CBP at O'Hare airport

$150k Seized at O’Hare Airport by Chicago CBP

Since we opened up our Chicago office to help people who have had cash seized at O’Hare Airport by U.S. Customs & Border Protection, we’ve had little in the way of CBP news releases about currency seizures there. But, I remembered seeing a story about some cash seized for bulk cash smuggling and failure to report at O’Hare back in 2011.

I remembered it because it involved more than $125,000 that was hidden in various parts of a family’s luggage and personal effects they were traveling with; like money hidden within the pages of books, magazines, and photo albums… here’s the full story:

U.S. Customs and Border Protection officers conducting outbound enforcement operations at Chicago O’Hare International Airport seized $125,849 in bulk U.S. currency on March 1.

Among other passenger, CBP officers selected a family, traveling to Pakistan onboard Etihad Airlines, for an outbound currency verification examination. Prior to departure, CBP officers explained the currency reporting requirements and the husband declared the family was departing with only $17,000. Subsequently, a full baggage examination was conducted after a routine inspection revealed over $35,000 in his carry-on bag.

During the CBP examination, currency was discovered concealed in several locations including $5,200 in the pages of a magazine, $19,300 hidden behind pictures in a photo album and $4,500 in a pair of children’s pants. Currency was located in all carry-on baggage belonging to the family with an additional $7,800 found in their checked bags. The total amount of undeclared currency seized was $125,849.

“Everywhere the officers looked they kept discovering more concealed currency,” said Janice Adams, CBP acting director of field operations in Chicago. “Money was hidden in every conceivable location. This is an outstanding seizure by our CBP officers working outbound operations at Chicago O’Hare.”

This, my friends, is more than a failure to report; it is bulk cash smuggling. In other words, it was the intentional concealment of the cash for the purpose of not having to report the cash to CBP in Chicago. Bulk cash smuggling has much higher rate of forfeiture than a “simple” failure to report. Anyone who has had money seized for bulk cash smuggling should give us a call for a free currency seizure consultation and make use of our free customs cash seizure legal guide.

If you have had cash seized at Chicago O’Hare Airport or Midway airport, give our customs attorney a call at (773) 920-1840, or click the contact buttons on this page to send us an e-mail or request a call back.

CBP Seizes Cash Stashed in Truck in Nogales

Back in June, CBP made a big bust of $145,000 in “unreported” currency that was concealed in a vehicle’s rear quarter panels as the driver, a Mexican national, was trying to leave the United States for Mexico at the DeConcini border crossing.

[On June 18], [CBP] officers conducting routine outbound inspections referred a 46-year-old Mexican man for an inspection of his Chevrolet SUV at the DeConcini crossing. Officers found more than $145,000 in unreported U.S. currency in the vehicle’s rear quarter panels.

CBP seized the cash not just because it was “not reported” but because bulk cash smuggling — the fact of hiding the money in the quarter panel of a vehicle — is illegal and there are civil and criminal penalties for it.

Because of the southern border’s famous ties to the U.S.-Mexico illegal drug trade, it’s hard to imagine a scenario where this money was not connected to illegal activity. Even if this man came upon the money in a lawful way — for example, it was a life insurance payout from his deceased father — there is still no good reason for hiding the money in the quarter panel of his vehicle.

Or is there? Years ago, we represented a person who smuggled gold pieces across the U.S. Canadian border in the airbox of his vehicle, because they thought that would be safest spot for it on his journey through the U.S. to his return home in the heart of the country.

So, while it’s very likely that this guy who had $145,000 hidden in his truck is a mule for the drug trade, attempting to move illict cash across the border… it’s definitely not the only explanation. As it is famously said, truth is stranger than fiction.

Has CBP seized currency from you?

Need help proving law source and intended use of bulk cash? Read our trusted customs money seizure legal guide and can contact us for a free currency seizure consultation by clicking the contact buttons on this page.

Two red envelopes with Chinese characters on them and stuffed with U.S. dollars.

Why some Chinese travel with cash leading to airport seizures

One question I face from most Americans when I tell them that our customs law firm helps people recover from money after customs money seizure is, “Why would anyone travel with all that money?”

Two red envelopes (hongbao) with Chinese characters on them and stuffed with U.S. dollars.
Some Chinese bring money in red envelopes (hongbao) for the Chinese new year celebration to give to family

It’s a good question.The answer? Many foreign governments, China in particular, restrict the amount and method that its citizens can take from the country via capital-controls; when the economy tanks or the currency is devalued, it increases the desire to move the money into another country before the market gets worse.

A few years ago the Wall Street Journal did a story about rich Chinese trying to get their money out of China, in the form of cash, that illustrates this point. The story is Chinese Fly Cash West, by the Suitcase and it provides some insight into why people travel with Cash from China, and why Customs seizes this money from them at airports:

China restricts private citizens from taking out more than $50,000 per individual per year. While it is hard to enforce these restrictions, Chinese authorities are scrutinizing outgoing private cash amid a broad anticorruption drive and as worry grows over the risks of capital flight.

The money seized at airports represents just a sliver of private Chinese money pouring out, but highlights that Chinese citizens are turning to one of the oldest and simplest methods to evade those controls: taking cash out in a suitcase.

The articles goes on to say:

From 2009 to 2011, U.S. airport customs officers seized over $5 million in undeclared cash from Chinese citizens, according to U.S. Customs and Border Protection. That is 8.4% of the total seized and more than double the nearest amount for another nationality.

Transporting large amounts of cash isn’t necessarily illegal. Travelers must declare cash over $10,000 when they land in Canada or the U.S. Most undeclared cash is temporarily seized and subject to fines. If customs agents believe the cash comes from illegal activities, the onus is on the traveler to prove otherwise before it is returned.

I would correct this final paragraph with a few legal subtleties. If any amount of money is undeclared to customs, all of the money transported may be seized and, if legitimate source and use are not proven to Customs, will be forfeited forever (i.e., lost). This burden is on the traveler whether or not Customs believe the cash comes from illegal activities. It must always be proven.

Moving cash from China subjects a person to fines in China:

In China, violators of Beijing’s rules on moving out cash are also subject to fines. From 2007 to 2011, China’s State Administration of Foreign Exchange levied such fines totaling 1.27 billion yuan ($202 million), according to the most recent data available.

The story goes on to state that seizures from 2009 to 2011 dramatically increased at airports in Los Angeles, Chicago, Detroit, Houston and San Francisco for money seized by Customs from Chinese nationals. But the numbers seized by U.S. Customs were smaller than that seized by Canadian customs. Apparently because property rules rules and investor visas are easier to obtain.

The New York Times also published a story we tweeted about:

I’m sure the cash is flooding the U.S. market now for the same reasons. Customs will seize unreported money from any Chinese traveler or immigrant at any U.S. airport if they catch them.

CBP Seized $45k cash in Nassau

CBP has preclearance centers which are basically the same as customs in the United States, but just located in a foreign country; this is to facilitate travel and enforcement of the laws. One such law enforced at preclearance centers is the requirement to report more than $10,000 being transported into the United States. CBP has pre-clearance in the Bahamas.

Over the weekend, Customs seized $45,000 in Nassau from one or more people for failing to report currency over $10,000, and tweeted a picture of the seizure:

This was responded to by a tweet that made me smile: “What are you going to do with it?” Classic! CBP has not responded (in fact, they may have deleted the tweet?). But here’s our answer so you will know what customs does with seized cash. I went ahead and explained that customs does not always keep seized currency if the person can prove it came from a legitimate source and had a legitimate intended use by responding to the notice of seizure

Which caused another person to ask:

I responded that the best answer is is probably “Sometimes” and that the reporting requirement is actually “more than $10,000” not $10,000. Remember, I say sometimes because even if you make the an accurate report the money is still subject to seizure for other reasons, such as a suspicion that it is connected to money laundering or some criminal activity.

I suspect this Nassau customs cash confiscation of $45,000 is the result of more than one currency seizure for failure to report. That’s because the picture cash in the picture does not appear to add up to $45,000, but somewhere around $30,000 (assuming each stack is $1,000).

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