Foreign Currency Transactions Reporting

The acronym “FCT” or foreign currency transactions that are over $10,000 must be reported under 31 USC 5311 et. seq. Title 31 is all about money laundering but most clients are small business owners and individuals that desire to buy a car or some other item across the border and $10,000 is not an uncommon amount of money to carry with word of caution to our clients. If you are walking, driving, boating, or flying across the border, typically Mexico, with over $10,000 it must be reported. US Customs has a Fin Cen form online that they want to see filled “before” you cross the border. US Customs and Border Protection make it easy if you go to their online link.

“I Don’t Know How Much I Have! … Customs Does Not Care!”
Many clients cross the border walking through the CBX pedestrian corridor with only $200 over the $10,000 mark and did not even realize it. The entire $10,200 is seized. Clients receive a “Notice of Seizure and Information And Information to Claimants” letter explaining the Election of Proceedings” and certain rights. When a reasonable explanation is carefully drafted and presented, US Customs can be persuaded to return the currency. If the amount of currency is under $25,000 there is also a Form 4790 CMIR report that may reconcile miscounting at the discretion of the Supervisory Customs Inspector and FP&F to allow for the release of the currency as long as there is no evidence that there is a nexus to criminal activity and a legitimate source of the currency and intended use.

Can I Go To Jail If I Did Not Count The Extra Money in My Pocket?

A common perception of many people is that they better not contest the mistake in counting. For Instance, Pesos and US Currency combined exceed the $10,000 mark when converted. Many think they will be jailed if they petition for the return of their cash. Although there are fines and penalties that include jail time, the United States Attorney’s Office is looking for Bulk Cash Smuggling 31 USC 5332 and money laundering type offenses, generally speaking, many cases in the San Ysidro POE CBX and Otay POE crossings involve everyday people who are not hiding cash for illicit purposes. If you think your currency was taken away without just cause, or know a friend or family, please know you have rights and you can call us or fill out our evaluation form.