Tag: money 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.

Border Patrol Seizes $138k in Cash

Posted by Jason P. Wapiennik on August 20, 2015

Not quite a customs currency seizure, but similar enough to the topic and the stories we write about on this customs law blog that I thought it good to share it, for those interested. Border patrol seized around $138k in cash that was stashed away in the tailgate of a pick-up truck being driven by a 40 year old U.S. citizen. Border patrol does exactly what their name indicates; the patrol the borders. In this case, nothing in the story suggests that the vehicle was attempting entry into Mexico so I would say this stop did not occur “at the border” where the government can essentially search you without limitation. Because it did not occur “at the border” the police would have had to get a warrant to search the vehicle, or it would have to fall under one of the warrant exceptions. The driver made this easy for border patrol, because he consented to the search of his vehicle anyway (oops). That’s always a bad idea. Here’s the story:

U.S. Border Patrol agents patrolling Interstate 5 arrested a man on Tuesday who had a large quantity of illicit cash hidden inside the tail gate and other areas of his truck.

More than $130K was concealed inside this truck after requesting permission from 40-year-old U.S. citizen to search the back end of his truck.

At approximately 8 a.m., agents on southbound Interstate 5 stopped a 2004 Chevrolet Colorado truck. Agents approached the 40-year-old U.S. citizen and received permission to search the back end of his truck.

A quick glimpse with a flashlight revealed that the tail gate interior was filled with bundles of cash. Agents arrested the man and transported the vehicle to a nearby station for further investigation. Agents found additional bundles of cash behind the truck tail lights and in the man’s pockets. More than $130K was concealed inside the truck between the tail-gate and tail-light body panels.

The search yielded a seizure of $137,017 in U.S. currency. The man was turned over to agents from Homeland Security Investigations for currency smuggling. The cash and vehicle were seized by the U.S. Border Patrol.

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:

Customs officers seize hidden cash

Posted by Jason P. Wapiennik on August 18, 2015

Last month, CBP seized $65,000 from a Mexican national for “failing to declare” more than $65,000 in currency. They released the individual’s name, so that means he is being criminally prosecuted. Though CBP calls this a “failure to declare” it is really failure to declare (or to report) and bulk cash smuggling, because the money was concealed in the seat of the vehicle. Check out the image below. As we always note, this case differs from the scenario usually faced by our clients, which is a customs seizure of money at the airport for failure to report.

Customs officers seize hidden cash behind automobile seat, totaling more than $65,000 in US currency.

U.S. Customs and Border Protection officers arrested a 24-year-old Mexican national Wednesday (July 22) for failing to declare more than $65,000 in U.S. currency when he attempted to cross into Mexico through the Port of Nogales.

Officers conducting outbound inspections at the Dennis DeConcini crossing selected a Ford sedan, driven by Marco Allan Nevarez-Guzman of Magdalena, Sonora, Mexico, for further inspection and found unreported money hidden behind the vehicle’s seats.

Officers processed the vehicle and currency for seizure, arrested and referred Nevarez to U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.

CBP at Dulles Airport Seizes $72K over 3 days

Posted by Jason P. Wapiennik on July 9, 2015

CBP seized over $70,000 from 3 travellers at Washington Dulles airport recently. This was reported yesterday by CBP (read it here), with some additional follow-up in an article at the Washington Post (read it here).

The Washington Post does an alright job of reporting why the currency was seized, but understandably mixes up its legal terminology; seizure is different from forfeiture. Likewise, a “simple” failure to report violation does not, in and of it self, give rise to a bulk cash smuggling violation. Failure to report is money is not reported, or is not accurately reported; bulk cash smuggling is when money is hidden on a person or in their effects with purpose and intent that, by hiding it, they will avoid the requirement, to file a currency report.

Here is the story from CBP. Notice no criminal charges were filed yet:

STERLING, Va. — U.S. Customs and Border Protection (CBP) officers seized a combined $72,095 in unreported currency from three travelers at Washington Dulles International Airport over the past three days.

There is no limit to how much currency travelers may bring to, or take from the U.S. However, federal law requires travelers to complete financial reporting forms for any amount that exceeds $10,000 in U.S. dollars or equivalent foreign currency.

The first seizure occurred Saturday when a U.S. lawful permanent resident who arrived from Iran reported verbally and in writing that she possessed $10,000. While inspecting the woman’s luggage, CBP officers discovered Euros equivalent to $27,525 in U.S. dollars and $2,135 in U.S. currency for a total of $29,660.

On Sunday, a U.S. citizen arrived from Dubai, U.A.E., and reported verbally and in writing that she possessed $10,000. While examining her luggage, CBP officers discovered a total of $20,435.

The final seizure Monday occurred during an outbound international flight enforcement operation. A man destined for Ukraine reported to CBP officers that he possessed $15,000 and completed a financial reporting form stating that amount. During a search of the man’s carry-on baggage, CBP officers discovered an additional $8,000. CBP officers seized $22,000 and released $1,000 back to the man for humanitarian purposes.

CBP officers seized all currency, a combined $72,095, and released all three travelers.

CBP officers provide travelers with multiple opportunities to truthfully report all of their currency. Travelers who refuse to comply with federal currency reporting requirements risk having their currency seized, and potentially face criminal charges.

“Seizing a traveler’s currency is not a pleasant experience, but there are severe consequences for violating U.S. laws,” said Wayne Biondi, CBP Port Director for the Port of Washington Dulles. “We hope that these seizures are a lesson for all travelers that the easiest way to hold on to their currency is to honestly report it all to a Customs and Border Protection officer.”

In addition to currency enforcement, CBP routinely conducts inspection operations on arriving and departing international flights and intercepts narcotics, weapons, prohibited agriculture products, and other illicit items.

If you have had your currency seized, please 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: