Carole Hinder owned and operated a small restaurant called Mrs. Lady's Mexican Food in Spirit Lake, Iowa for 38 years. Like some small restaurants, she required that all her customers pay in cash. As a result, she made frequent cash deposits in her local bank to avoid having to keep large amounts of cash at her business premises. To her amazement, the IRS seized all the money in her checking account, totaling almost $33,000, claiming she had violated the federal anti-money laundering law. The IRS also informed her that it was keeping the seized money, even though it wasn't charging her with a crime. The purpose of these laws is to limit criminal business activity conducted in cash – money laundering, drugs, criminal enterprises, etc.

A country that requires forms for bringing in milk powder surely requires forms for currency. Remember that China has strict limits on the transfer of its renminbi currency. Gold and silver, even set in jewelry, should be reported when exceeding 50 grams. These people did not have a problem with receiving strange looks or having the police called on them.

Marijuana legalization and forfeiture

It would be up to you to document their value and then bear the burden of proof at customs to avoid confiscation. In addition to a hard currency like coins and bills, you must also declare foreign currency, securities, stocks and bonds, travelers checks, money orders, promissory notes, payable interest coupons, and similar financial instruments. When the government confiscates your money at a border, you have to hire a lawyer and fight to get it back. Some governments routinely deny requests to release cash taken by customs agents, even though their theft violates your constitutional rights.

• And while legalized robbery is happening in the US through cash deposit limits and civil forfeiture, it is not the only place where there is a war on cash.
• Since some people try to avoid triggering the CTR report, banks are also supposed to report suspicious transactions, including deposit patterns below $10,000.
• The 21st century has seen the emergence of a war unlike any other.
• Carole Hinder owned and operated a small restaurant called Mrs. Lady's Mexican Food in Spirit Lake, Iowa for 38 years.
• But often a mere bank statement is enough for investigators to obtain a seizure warrant.

And its effects on American citizens entered the spotlight after HBO host John Oliver addressed the matter at length on his show Last Week Tonight with John Oliver. During the segment, Oliver and guest Jeff Goldblum focused on seemingly arbitrary, unfair, and corrupt civil forfeiture practices allegedly perpetrated by law enforcement agents in a number of jurisdictions. "Previously," the Institute for Justice notes, "property owners targeted for structuring had to wait months or even years to present their case to a judge." Sowers and Hirsch, both I.J. Clients, "ultimately recovered their wrongfully taken money, but only after years of legal proceedings and high-profile media coverage." So now that you’re aware of what to do when making large deposits, the next time you’re lucky enough to have $10,000 to deposit (or $10,000 already in your account to withdraw), ask your bank rep about the process at the teller window.

Currency Reporting Requirements and Measures from Around the World

But as of last summer, the DOJ had accepted just 41 petitions, or 21 percent, "and refused to return more than $22.2 million." And if you don’t want your bank account to get seized overseas, you should avoid making deposits in countries that are on a financial watchlist. Under the Civil Asset Forfeiture Reform Act, law enforcement agents can take private property they suspect is tied to crime even if no criminal charges are filed, writes Shaila Dewan in Law Lets I.R.S. Seize Accounts on Suspicion, No Crime Required. Significantly, beware that the Bank Secrecy Act allows the IRS to legally seize assets of those who knowingly structure transactions to avoid CTR reporting. Federal prosecutors regularly prosecute “cash structuring,” a form of money laundering, as a standalone crime.

However, these laws can create potential problems for “law abiding” Americans, as well as hardened and white collar criminals. The IRS has seized assets (cash and bank account deposits) under suspicion of structuring. It then falls on the taxpayer to prove that the funds and deposits are legitimate. Even in the cases where taxpayers prevail, there is tremendous https://accounting-services.net/what-is-normal-balance-of-accounts/ time and expense defending themselves. From the federal law enforcement perspective, individuals and businesses that regularly deposit smaller amounts of cash may be attempting to avoid the bank’s automatic reporting obligation and possibly attempting to evade taxes. Therefore, regular cash deposits that are not necessarily illegal still raise red flags.

Requirements for Carrying Cash Across International Borders

Moreover, the bank must verify the person's identity by demanding to see a driver's license, passport, or other valid ID. Prosecutors choose civil forfeiture not because of the standard of proof, but because it is often the only way to confiscate the instrumentalities of crime. The alternative, criminal forfeiture, requires a criminal trial and a conviction.

Carrying cash of £10,000 or more in or out of Great Britain and to or from any other country will require a declaration. You will even need to make a declaration if you carry this amount from Great Britain to Northern Ireland. However, if you carry Law Lets I.R.S. Seize Accounts on Suspicion, No Crime Required it from Northern Ireland to Great Britain, no forms are required. Given Thailand’s political status, their exemption on traveling with cash is reasonable; you can take US$20,000 or its equivalent in or out without any obligation to report.

Other cash seizures

Civil forfeiture is independent of any criminal case, and because of this, the forfeiture action may be filed before indictment, after indictment, or even if there is no indictment. Likewise, civil forfeiture may be sought in cases in which the owner is criminally acquitted of the underlying crimes ... In a cash structuring case, the government must show that the taxpayer knows the rules and knowingly structures their transactions to avoid the reporting.

• Sperrazza is not currently involved in the practice of medicine.
• Without civil forfeiture, we could not confiscate the assets of drug cartels whose leaders remain beyond the reach of United States extradition laws and who cannot be brought to trial.
• A total of 8,913 DVDs and 11,410 CDs were seized from Rice and Dr. Jay’s Entertainment.
• But as of last summer, the DOJ had accepted just 41 petitions, or 21 percent, "and refused to return more than $22.2 million."

The IRS is among the federal agencies that pursue forfeiture cases. Email me at  This discussion is not intended as legal advice, and cannot be relied upon for any purpose without the services of a qualified professional. 26 USC § 6050I applies to any monetary transactions that occur in trade or business resulting from a single transaction or a series of related transactions within a 12-month period.