Tag: currency seizure

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

Why some Chinese travel with cash leading to airport seizures

Posted by Jason P. Wapiennik on December 2, 2015

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:

Chinese #Cash Floods U.S. Housing Market https://t.co/wW2sF8fE9G

— GreatLakesCustomsLaw (@customsattorney) November 28, 2015

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

Posted by Jason P. Wapiennik on November 24, 2015

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:

#CBP officers seized more than $45K in unreported currency at Nassau #Preclearance in one day. pic.twitter.com/xMjFjSoSYh

— CBP (@CustomsBorder) November 21, 2015

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:

@noti_fut @CustomsBorder CBP sometimes doesn’t keep it all, but has to give it back once it’s shown to be lawfully earned. — GreatLakesCustomsLaw (@customsattorney) November 21, 2015

Which caused another person to ask:

@customsattorney @noti_fut @CustomsBorder If you declare more than $9999, do you have to prove you lawfully earned the money as well? — D’ericka Henrie (@Citizen_DH) November 21, 2015

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).

Don’t forget to follow Great Lakes Customs Law on Twitter!

U.S. Customs Confiscates $50k in Cash at Texas Airports

Posted by Jason P. Wapiennik on November 17, 2015

Customs officers confiscated a total of nearly $50,000 from international travelers at Texas airports in the last few weeks alone. Specifically, the cash seizure by customs was at San Antonio International Airport and at Dallas Fort Worth International Airport. The first story involves $16,000 of currency that sounds like it was structured by an adult father and daughter traveling together in order to evade the reporting requirement. The story finishes by stating that in the last fiscal year (ending October 31), CBP seized more than $81,496,161 ($81.5 million!) in undeclared or illicit currency.

San Antonio International Airport discovered a pair of travelers carrying over $16,000 in unreported currency.

On Nov. 3, CBP officers working at the San Antonio International Airport discovered a pair of travelers carrying over $16,000 in unreported currency. The travelers, who are citizens of Mexico and traveling together, arrived separately to CBP for processing and each reported they were traveling alone.

Both who claimed to be traveling alone and reported carrying less than $10,000. However when question furthered, the travelers, a father, 53 and his daughter 27 admitted that they were in fact traveling together. The amount of currency discovered among their belongings added up to $16,000. The currency was seized for failure to properly report currency in an aggregate amount exceeding $10,000.

The second story involves a single traveler leaving for Argentina who reported only having $9,000, but really had more than $33,000 (tsk tsk). In addition, the money was not in a single location but was in “several envelopes stashed among his belongings.” The fact that it was stashed may give rise to bulk cash smuggling as a second ground for seizure beyond the failure to report.

Three days later at the Dallas Fort Worth International Airport CBP officers seized currency from a traveler who was departing the United States head to Argentina. The passenger reported $9,000 in his possession, however when CBP officers completed the currency verification, more than $33,400 was discovered. The cash was found in several envelopes stashed among his belongings. CBP seized the currency.

The cash was found in several envelopes stashed among his belongings. CBP seized the currency.

International travelers with negotiable monetary instruments valued at $10,000 or greater in their possession must complete a form FinCEN 105, Report of International Transportation of Currency or Monetary Instruments according to U.S. law. Negotiable monetary instruments include currency, personal checks that have been endorsed, travelers’ checks, gold coins, securities or stocks in bearer form.

Philly CBP Seized $27k: Unreported & Concealed

Posted by Jason P. Wapiennik on November 5, 2015

Customs seized the equivalent to about USD $27,000 from a couple arriving from Belgium (the author of the story calls this Belgian couple a “Belgium couple”). Apart from that typo, the story is interesting because it seems to involve bulk cash smuggling. Bulk cash smuggling is when money is concealed with the intent to evade the reporting requirement.

Here, the couple reported travelling with €6,000, verbally and in writing. But, upon inspection, the CBP found and confiscated $14,321 and €11,567 “concealed inside a wallet, including inside the wallet lining”. Having the money in a wallet itself, and inside a sport coat pocket are not suspicious in and of itself… but the location of the money together with the failure to accurately report anywhere near the total amount being carried would give customs the cause to seize the cash for bulk cash smuggling. The original is here, excerpt below:

U.S. Customs and Border Protection (CBP) officers seized $27,001 in unreported currency from a Belgium couple for violating federal currency reporting requirements at Philadelphia International Airport on Tuesday.

The couple reported that they possessed 3,000 Euro each, both verbally and on their CBP Declaration form. During a routine secondary examination, CBP officers discovered $14,321 U.S. dollars and 11,567 Euros concealed inside a wallet, including inside the wallet lining, and inside a sport coat pocket. The currency equated to $27,001 in equivalent U.S. dollars.

The article says it was seized for reporting violations, so it’s not entirely clear they alleged bulk cash smuggling. Only upon receipt of the notice of seizure will the reasons be finalized.

If you have had cash seized by customs and are contemplating what to do next, please make use of the other information available on this website or call our office at (734) 855-4999 to speak to a customs lawyer, or e-mail us through our contact page. We are able to assist with cash seized by customs around the country, including Chicago, Atlanta, New York, Los Angeles, Orlando and many other places, and not just locally in Detroit. Please read these other articles:

$830K Seized for Bulk Cash Smuggling

Posted by Jason P. Wapiennik on November 3, 2015

When is a 2010 Dodge Journey worth almost a million dollars? When there is $830,000 dollars hidden in the dashboard.

CBP has broad search authority. In fact, not only do they have largely unfettered discretion to search at the border (not only land borders but airports), but they also have broad search authority at the “functional equivalent” of the border. The current state of the law in this area means that, among other things, CBP may pull over cars within 100 miles of the border and question those inside if they have reasonable suspicion of unlawful activity. If you want to learn more, read this nice summary of the law.

This 100-mile border search authority is the context for the following news release:

TEMECULA, Calif.—U.S. Border Patrol agents arrested a man Tuesday who had hidden large quantities of cash behind his SUV’s dashboard.

The incident occurred at approximately 2 p.m. when agents patrolling Interstate 15 stopped a 2010 Dodge Journey. The 54-year old Mexican national driver was unable to answer routine questions consistently.

A K-9 sniff of the man’s vehicle resulted in a positive alert, agents then brought the vehicle to the I-15 checkpoint to conduct a more thorough search. At the checkpoint, agents put the vehicle on a lift and discovered a hidden compartment behind the dashboard. The compartment contained 61 bundles of cash.

In total, the bundles contained $830,060 in U.S. currency. The man was arrested and charged with bulk cash smuggling.

If you have had currency seized from Customs do not try to respond yourself but hire our firm, because we know what we are doing and have successfully handled many cases like yours. If you have questions, please give us a call at (734) 855-4999. We are able to assist with cash seized by customs around the country, including Chicago, Atlanta, New York, Los Angeles, Orlando and many other places, and not just locally in Detroit. Please read these other articles:

Understanding CBP’s Election of Proceedings Form

Posted by Jason P. Wapiennik on October 28, 2015

What is an election of proceedings form?

Upon receipt of a notice of seizure for unreported currency by Customs, you will see that CBP asks you to complete an “election of proceedings form.” This article is intended to help you understand what the form is and what can be done with it. As always, you should consult with a lawyer before communicating with Customs and deciding how to handle your seizure case.

What’s the purpose of an election of proceedings form?

The CAFRA Election of Proceedings Form. — The CAFRA Election of Proceedings Form tells Customs how you want to proceed with your currency seizure case

This election of proceeding form does exactly that: it tells Customs how you want to proceed with your currency seizure case (or other property seizure case, for that matter, but we here are limiting this to CBP currency seizure cases) under various different laws and procedural options. This form presents you with a variety of options, all of which are explained in some legal detail on the form itself:

Petition Administratively
Officer in Compromise
Abandon Any Claim or Interest
File a Claim for Court Action

You should only choose what option is best for your case after consulting with a lawyer; often a petition makes sense, but there are many times when a claim or offer in compromise is strategically the best decision to get your seized cash back from customs.

What box should I check on the form, and should I file a claim?

You should not blindly sign and returning documents to Customs without completely understanding what you are doing. As CBP’s notice of seizure says, you can only elect/choose one option. Prior to contacting our office for a consultation, you may find our article about responding to a currency seizure an aid to your understanding of the currency seizure process.

I often see client’s mistakenly send in both an election of proceedings form that says they want to file a petition and a CAFRA Claim Form. These are clients who have started the process by themselves and quickly get frustrated and lost in procedural details, who finally seek our help to get their seized cash back from customs.

You cannot sign the election of proceedings form requested that CBP consider a petition, and then also simultaneously file a “CAFRA Seized Asset and Claim Form”. The two exclude each other; you cannot do both at the same time. You must either file a petition, file a claim, make an offer in compromise, or abandon your interest.

What does each option do?

Again, the election of proceedings form goes into a good amount of legal detail that we won’t repeat here. But basically:

Filing a petition keeps the proceeding with Customs, to be decided by the port’s Fines, Penalties & Forfeitures Officer;
Filing the CAFRA Seized Asset Claim Form removes the decision from Customs FP&F and puts the case in front of a federal judge;
Abandoning your interest does just that, relinquishes your interest in the property; and,
Making an offer in compromise essentially is an avenue for someone to make a settlement offer to the government to settle a “questionable” (i.e., implausible) claim or controversy, and the offer in compromise laws must be strictly complied with.

There are often very good reasons for filing a claim. But, when filing a claim, you should understand that submitting the CAFRA Seized Asset Claim Form will take the decision before a Federal district court judge. That means you will have to appear at a Federal district court on several occasions, exchange written discovery, take and have your deposition taken (that is, sworn testimony under oath and recorded), likely make and respond to several pre-trial motions (such as motion for summary judgment or motion to dismiss), and ultimately, have your “day in court” with a real judge and real government prosecutor’s cross-examining you about the circumstances of the seizure and your finances.

As stated, the analysis of “what box to check” should not be undertaken with consulting with an attorney who knows the customs laws. This article is not a substitute for the legal advice you would receive from a law firm like us, so do not rely on it.

I’m confused about what to do. Now what?

CBP Seizes $180k at Mexican Border

Posted by Jason P. Wapiennik on October 22, 2015

While most of our currency seizure clients are have their money taken from customs at an airport, we occasionally represent people who have had their money seized at a border crossing, such as the Ambassador Bridge or the Detroit-Windsor Tunnel. In this story from CBP, Customs seized nearly $200,000 from a man traveling to Mexico by car. This sounds like a classic case of bulk cash smuggling, and is no doubt the reason for the seizure.

In this case, we could give the man the benefit of the doubt and presume the legitimate source is an inheritance from his rich Uncle; and the intended use, perhaps he was paying cash for a nice place on the Yucatan (we’ve handled stranger cases). If we assume he proves these two things, then this situation was completely avoidable. But now, even if criminal charges are ultimately not filed or if he is ultimately found not guilty of a crime, he will still face civil forfeiture of the money and, if he wants it back, will have to fight for its return administratively, or in the courts.

Here’s the story (full version here):

Wood table filled with $180,000 dollars seized by the CBP on Oct. 14 after CBP officers working outbound inspections at the Hidalgo-Reynosa.

The seizure occurred on Oct. 14 after CBP officers working outbound inspections at the Hidalgo-Reynosa International Bridge referred a white 2001 Honda Civic for a secondary inspection. An inspection of the vehicle resulted in the discovery of several bundles of U.S. currency totaling $185,173 that was concealed within the Civic. CBP OFO seized the currency and the vehicle as well.

CBP OFO arrested the man who were [sic] subsequently released to the custody of Homeland Security Investigations (HSI) agents for further investigation.

Our customs law firm handles currency/money seizures made by customs in Detroit and around the country; call (734) 855-4999 to consult with a customs lawyer today (you can read our popular page on Responding to a Customs Money Seizure HERE). We are able to assist with cash seized by customs nationwide, including Detroit, Chicago, Atlanta, New York, Los Angeles, Las Vegas, and Orlando.

Please read these other articles:

CBP Seizes $310,000 for Failure to Declare Currency

Posted by Jason P. Wapiennik on October 20, 2015

While most of our currency seizure clients are have their money taken from customs at an airport, we ocasionally represent people who have had their money seized at a border crossing, such as the Ambassador Bridge or the Detroit-Windsor Tunnel. In this story from CBP, Customs seized over $300,000 from a middle aged Mexican couple who were returning to Mexico. In the vehicle, inside a microwave, they found the stash. This is a class case of bulk cash smuggling, and is no doubt the reason for the seizure. The story does not specifically mention if they were arrested or charged with a crime, but the government has 5 years to do so.

CBP officers conducted an intensive secondary examination of the vehicle and discovered packages hidden in a microwave oven in the vehicle that contained $309,220 in unreported currency.

The interception occurred on Sunday, Sept. 27 while CBP officers and Border Patrol agents conducting outbound (southbound) inspections at the Lincoln-Juarez Bridge referred a 2013 Chevy Aveo driven by a 42-year-old male Mexican citizen with a 51-year-old female Mexican citizen passenger for a secondary inspection. CBP officers conducted an intensive secondary examination of the vehicle and discovered packages hidden in a microwave oven in the vehicle that contained $309,220 in unreported currency.

CBP officers seized the currency and the Chevy Aveo. CBP officers turned over the driver and passenger to Homeland Security Investigations (HSI) special agents for further investigation.

Individuals are permitted to carry any amount of currency or monetary instruments into or out of the U.S., however, if the quantity is more than $10,000, they will need to report it to CBP. “Money” means monetary instruments and includes U.S. or foreign coins currently in circulation, currency, travelers’ checks in any form, money orders, and negotiable instruments or investment securities in bearer form. Failure to declare may result in seizure of the currency and/or arrest.

3 Currency Seizures Net CBP $74,500

Posted by Jason P. Wapiennik on October 13, 2015

CBP seized almost $75,000 in cash during 3 separate incidents at the port in San Juan, Puerto Rico. Twoof the incidents described below state that the money was “hidden” — first “within a suitcase” and “hidden in separate places on his belongings,” and the story says all currency was seized for “bulk cash smuggling“. As explained in that link, bulk cash smuggling essentially occurs when the money is hidden with the intent to evade the reporting requirement.

Money is often “hidden” because no one in the right mind would transport more than $10,000 out in the open, and so that is why the intent is so important. The salient portion of the story is quoted below (full story is here):

SAN JUAN, Puerto Rico — U.S. Customs and Border Protection (CBP) officers seized over $74,500 in unreported currency in three separate incidents last weekend.

In the first incident, after arrival at the Luis Munoz Marin International Airport from St. Thomas on October 2, a canine alerted to a passenger’s belongings. CBP officers interviewed him and his traveling companion. An inspection revealed over $15,000 of unreported currency, on their person and hidden within a suitcase. The currency was seized.

That same day, CBP officers were conducting outbound inspection on a flight destined to the Dominican Republic and interviewed three passengers after a canine alerted to their luggage. During inspection, $29,700 of unreported currency was discovered, which they later claimed someone paid them to transport to the Dominican Republic. The money was seized.

On another incident, a passenger arriving at the Luis Munoz Marin International Airport from Bogota, Colombia on October 4 was selected for CBP inspection. Currency reporting requirements were explained multiple times and the passenger gave conflicting amounts, finally claiming he was carrying $20,000. Currency verification revealed a total of $29,280 hidden in separate places on his belongings. The currency was seized.

The currency was seized under bulk cash smuggling laws. Failure to report may result in seizure of the currency and/or arrest.

“Transportation of currency is not illegal. However, if carrying more than $10,000 through our borders, the currency must be reported to CBP,” said Juan Hurtado, San Juan Area Port Director. “Travelers who refuse to comply with federal currency reporting requirements run the risk of having their currency seized, and may potentially face criminal charges.”

CBP Takes $230K in Unreported Cash in Texas

Posted by Jason P. Wapiennik on October 8, 2015

U.S. Customs seized almost $230,000 from a U.S. citizen leaving the United States. This is a different scenario from the usual airport currency seizure case we handle. In this instance, it appears that the people transporting (smuggling). To get the seized money back from Customs this person would need to show that the cash came from a legitimate source, had a legitimate intended use, and file a petition, make an offer in compromise, or file a claim. You shouldn’t decide whether to file a petition, make an officer in compromise, or file a claim until you’ve consulted with an attorney who is experienced in customs money seizures.

The relevant portion of the story is quoted below (full story is here):

On Sept. 28, CBP officers assigned to the Hidalgo International Bridge, working outbound operations selected a blue 2006 Honda Pilot for inspection. The 26-year-old female United States citizen from Pharr, Texas and the vehicle were referred for further secondary examination and it was during the course of the inspection that officers discovered bundles of U.S. currency hidden within a duffle bag in the rear of the SUV. CBP OFO removed 24 bundles of unreported U.S. currency totaling $230,753, which was seized along with the vehicle.

Officers discovered bundles of U.S. currency hidden within a duffle bag in the rear of the SUV. CBP OFO removed 24 bundles of unreported U.S. currency totaling $230,753.

CBP OFO arrested the woman and then released her to the custody of Homeland Security Investigations (HSI) agents for further investigation. “CBP Field Operations enforces both incoming and outbound laws and regulations, which includes the proper reporting of currency, be it from the United States or from any other country,” said Acting Port Director Javier Cantu, Hidalgo/Pharr/Anzalduas Port of Entry

It is not a crime to carry more than $10,000, but it is a federal offense not to declare currency or monetary instruments totaling $10,000 or more to a CBP officer upon entry or exit from the U.S. or to conceal it with intent to evade reporting requirements. Failure to declare may result in seizure of the currency and/or arrest. An individual may petition for the return of currency seized by CBP officers, but the petitioner must prove that the source and intended use of the currency was legitimate.