Going abroad with large amounts of money entails following strict regulations set by the U.S. government. There is no limit to the amount of money you can carry when going to or from the United States, but you are required to report large sums. Disobedience can result in severe legal consequences, including imprisonment and fines. Being aware of how to properly declare your money and what customs does will help your travel.
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Declaring large sums of money when traveling
If you are traveling to or from the United States and you are carrying more than $10,000 in cash or monetary instruments, you have to report it to a U.S. Customs and Border Protection (CBP) officer. It encompasses United States and foreign currency, along with other monetary instruments. However, it must be noted that while there is an obligation to report, there is no restriction on the quantity of money you may carry with you while traveling overseas.
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Currency and monetary instruments that fall under this reporting requirement are:
- U.S. and foreign paper money and coins
- Traveler’s checks
- Cashier’s checks
- Promissory notes
- Money orders
These regulations serve to prohibit money laundering, financial offenses, and the unlawful carriage of huge amounts of money without supervision. The U.S. government defines such monetary instruments as any negotiable instruments in bearer form that may be transferred to another individual without identification. That is, even if you have non-cash financial instruments with you, you are still required to declare them if their value is over $10,000.
To properly report the money you are bringing with you, you must complete and hand in the correct documents before clearing customs. There are a few options you have for doing so, including:
- Filing online: You can fill out the Currency and Monetary Instrument Report (CMIR) form, known as FinCEN 105, online before traveling.
- Submitting a printed form: Travelers can fill out Form FinCEN 105 before their trip and present it to a CBP officer at customs.
- Requesting a paper form at customs: If you did not complete the form beforehand, you can ask a CBP officer for a copy and fill it out upon arrival or departure.
For international travelers arriving in the U.S., reporting money is an additional step that must be completed along with the standard CBP Form 6059B, which requires travelers to report products they are bringing in.
It also must be noted that if you are traveling overseas as a group or family, the total amount being carried by everyone in the group must be reported if it exceeds $10,000. A joint statement can be made in this instance, and the amount must be declared for the entire party.
Penalties for failing to declare money at customs
Failing to report money exceeding $10,000 when traveling into or out of the U.S. can result in severe penalties. Travelers who attempt to avoid declaration requirements or knowingly submit false information may face:
- Confiscation of all currency or monetary instruments – CBP officers have the authority to seize any undeclared funds if they exceed the reporting threshold.
- Hefty fines – Penalties for failure to report can include a fine of up to $500,000, depending on the severity of the violation.
- Criminal charges – Individuals caught knowingly attempting to transport undeclared money may face up to 10 years in prison.
These penalties are strictly enforced as part of the U.S. government’s overall effort to deter financial crimes such as money laundering, tax evasion, and terrorist financing. You may have an opportunity to appeal to get your money back if it is confiscated, but it can be a complicated and time-consuming process. In most cases, proving that the money was lawfully obtained and was intended for lawful purposes will be necessary in order to recover the confiscated money.
For those who are accustomed to carrying large sums of money, it is advisable that they maintain clear documentation of the source and intended use of the funds. This documentation can be useful when questioned by CBP officers or if a seizure takes place.
