source: US Customs and Border Protection
CBP Money Seizure
Money is one of the most common seized assets our office encounters.
US Customs and Border Protection (CBP) typically seizes money at border crossings, checkpoints, and law enforcement stops.
During the 2024 Fiscal Year alone, the US Border Patrol and Office of Field Operations seized $45.0 million in currency and other monetary instruments at typical border crossings.
Cash seized from all federal agencies combined, such as the DEA, FBI, HSI, USPIS, and others, is reported in the tens of billions of dollars.
Whether traveling internationally through an airport, driving across the border through a port of entry (POE), or walking through CBX, CBP can seize your cash if you do not comply with their reporting requirements under the Currency and Foreign Transaction Reporting Act. This act, also known as the Bank Secrecy Act, was created to prevent money laundering.
Here are some frequently asked questions we receive about CBP money seizures:
What is the Reporting Requirement for Money When Traveling?
You are allowed to travel domestically and internationally with any amount of money.
However, you MUST report any money equivalent to over USD 10,000 to a Customs agent.
To enforce this limit, 31 USC § 5317(b) states, “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.”
According to CBP, “money” does NOT just include cash.
Here, money means monetary instruments, including:
- U.S. or foreign coins currently in circulation
- Currency
- Travelers’ checks in any form
- Money orders
- Negotiable instruments or investment securities in bearer form.
If you have a combination of these totaling over $10,000, you must complete a FinCen 105 Form. Again, this includes foreign currencies, not just US dollars.
What is the FinCen 105 Form?
The FinCen 105 Form is a document all travelers in the United States, whether citizens or non-citizens, must complete if they are traveling with more than USD $10,000 worth of cash or other monetary instruments combined.
While the form is detailed, it broadly asks for information about the money being transported and the person transporting it.
The form comes from the Financial Crimes Enforcement Network, which provides CBP with guidance on enforcing laws and regulations related to monetary instruments to combat money laundering, terrorist financing, and other financial crimes.
There are three options to fill out the FinCen 105:
- Fill out the online version here.
- Fill out and print this PDF version before your trip to present it to a CBP officer.
- Request a paper copy from a CBP officer at Customs and fill out the form there.
If you do not declare, CBP may seize your money and forfeit it to the government.
There are three justifications CBP can use:
- Failure to Report
- Cash Structuring
- Bulk Cash Smuggling
What is a Failure to Report?
Failure to Report occurs when a traveler:
- Does not complete a FinCen 105 Form when required.
- Incorrectly fills out their FinCen 105 Form.
However, there are some complicated situations to be aware of.
For example, a common situation we observe is people getting their cash seized crossing into Mexico for cosmetic surgeries, such as “tummy tucks,” since surgeons tend to have a preference for cash payment.
We previously had a client that CBP pulled into secondary questioning because she had $10,000 in an envelope.
She thought she did not need to declare since her cash total did not exceed $10,000.
However, she had $38 cash in her pocket.
Consequently, CBP found her in violation of failing to report since she had $10,038 total while traveling and did not fill out the FinCen 105 form.
Even if the extra cash is in Mexican Pesos or any other foreign currency instead of US Dollars, you can still be found in violation of failing to report if the value exceeds $10,000 and you do not declare it.
We were successful in returning the majority of the seized currency, and we can evaluate your case for free over the phone at (619) 258-8888—se habla Español.
What is Cash Structuring?
A cash structuring violation is when someone divides monetary instruments over $10,000 between multiple trips OR multiple people when traveling to avoid the reporting requirement. It is illegal to do so under 31 USC § 5324.
Even if no criminal activity is linked to the money, innocently structuring your cash to avoid reporting it for the sake of saving time at the airport is a violation.
Many people believe their money over $10,000 will be taxed if they declare it, but that is not always true.
We recommend consulting your accountant. Some examples of non-taxable currency include a loan or gift, while income could be taxable.
Avoiding potential taxes is NOT generally a good reason not to file a FinCEN declaration form. In the form, FinCEN does not make you declare what type of money you have for accounting and tax purposes.
An example of cash structuring would be a husband and wife traveling together, where one person chooses to carry $4,000, and the other holds $6,100 to avoid dealing with reporting to Customs since they technically have $10,100 in total.
Although the couple has under $10,000 each, dividing their money to avoid declaring their money is a violation.
What is Bulk Cash Smuggling?
Bulk cash smuggling is when someone intentionally hides money to avoid the reporting requirement while traveling into or out of the United States. It was added as an offense under the 2001 USA PATRIOT Act.
31 USC § 5332(a)(2) outlines hiding as placing monetary instruments in separate luggage, carry-ons, a backpack, another container, clothing, or other merchandise on your person or with you.
Concealment can even include monetary instruments in your wallet if they are equivalent to more than $10,000 and go unreported.
Innocently dividing money into different bags and objects to travel more safely can also be considered bulk cash smuggling if they go unreported and total over $10,000.
Is it Possible to Get Charged with all 3 Violations?
Yes, we have had clients come to us before who had their money seized because of a Failure to Report, Cash Structuring, AND Bulk Cash Smuggling.
For example, we helped a family of four get their seized USD and Mexican Pesos back.
While each family member had less than $10,000 worth of USD and MXN on them individually, the total money they had as a party was worth approximately $13,000.
Innocently unaware of the complicated reporting requirements, the monetary instruments were on them and in their bags.
They did not report their money by completing the FinCen 105 because, like many others, they were under the impression that they did not have to since they had under $10,000 individually.
Although they did get their money seized, we represented them through the process of getting their cash returned in full.
Here’s what the process looks like after getting your money seized:
What Happens After I Get My Cash Seized?
Whether driving across the border, going through Customs at the airport, or going through CBX specifically, getting your money back from Customs and Border Protection (CBP) is the same process.
Once you are finished with your Customs officer, you will typically be given a custody receipt that shows your money has been seized.
CBP then sends all registered owners a nine-page notice of seizure letter via certified mail.
The letter typically arrives 3-4 weeks after the cash seizure, but CBP has 30 to 60 days to send you this Notice of Seizure and Information to Claimants CAFRA form.
Included in this is the Election of Proceedings Form. You have a limited number of days to respond and indicate if you would like to attempt to get your money back or forfeit it to the Federal Government, depending on the agency.
For instance, US Customs allows more time than the DEA, which must be sent to Virginia and on their desk.
Once you receive your letter, we recommend speaking to a lawyer before taking further action.
You can call us at San Diego Defenders—Forfeiture Law Firm at (619) 258-8888! We offer free, confidential consultations, and Attorney Dan Smith can advise you on the best course of action. Se habla Español.
If you retain our services, Attorney Dan Smith, with 35 years in federal defense, will choose the best and quickest option outlined in the Election of Proceedings Form based on your case.
