Carrying large amounts of cash is not an illegal act in and of itself. Despite the popular misconception, under U.S. law, there is no legal penalty for holding any sum of cash in any U.S. jurisdiction. While handling large sums of cash, e.g., greater than $10,000, is an unusual and potentially dangerous experience, you cannot be arrested or charged for being in possession of the money – albeit it may raise questions with law enforcement regarding the purpose of the cash and for what it was obtained. You also invite the risk of theft – losing all the money with little chance of compensation.
When flying, the legalities of carrying large amounts of cash become more complicated. You're still allowed to travel with large sums of cash, but you must declare the volume of cash you wish to bring into the country.
In this article, we will explore the legalities surrounding carrying large amounts of cash and the popular misconception surrounding the myth that carrying over $10,000 in cash is illegal.
Carry Large Sums of Cash Through an Airport
Under U.S. law, the transport of more than $10,000 in American currency isn't expressly prohibited. In fact, individuals can theoretically travel with any amount of cash and not violate any law. However, if traveling with large sums of cash, you must report the sum to the U.S. Customs Service if traveling internationally. You will be asked to fill out form FinCEN105 – and you may be interviewed by law enforcement to explain the purpose of the cash you're carrying.
Perhaps the most obvious concern about an individual carrying large amounts of cash through a port of entry is a connection to narcotics and the sale of other drugs. During your interviews, law enforcement agencies, like the Drug Enforcement Agency (D.E.A.), can seize your cash if they reasonably believe that your answers or general demeanor do not reasonably explain why you possess such large sums of cash.
In one case, an individual carrying $75,000 was investigated. Due to their findings, the cash was seized, and the traveler continued on their flight.
Specific currencies will have unique regulations specifying the amount of currency tolerated crossing borders without declaration. The IATA Travel Center publishes country-specific information about currency limits.
In short: if you are planning to carry large sums of cash through an airport, ensure your reasons for doing so are transparent, legal, and legitimate.
Potential Confiscation of Large Amounts of Cash
Despite there being no law against possessing large sums of cash, it is inadvisable to keep excess cash assets on your person. According to the American Civil Liberties Union (ACLU), a collection of laws known as "Civil Asset Forfeiture" allow:
"…federal and state law enforcement agents [to] seize millions of dollars [annually] from civilians during traffic stops, simply by asserting that they believe the money is connected to some illegal activity and without ever pursuing criminal charges. Under federal law and the laws of most states, they are entitled to keep most (and sometimes all) of the money and property they seize."
Civil Asset Forfeiture does not need assets to total greater than $10,000 – any amount of cash suspected of being connected to illegal activity can be confiscated with few options for recourse available. If cash is taken during such a seizure, it will not likely be reclaimed.
The Origins of the $10,000 Myth
Carrying large sums of cash isn't risk-free, even if it is 100% legal. Nevertheless, there are considerable rumors about the $10,000 threshold, with many believing it is illegal to carry cash greater than this amount.
According to Snopes, this misconception likely arose from the Currency and Foreign Transactions Reporting Act of 1970, also known as the Bank Secrecy Act (B.S.A.). Created to inhibit money laundering, the B.S.A. necessitates U.S. financial institutions to detect and prevent money laundering, including filing reports of cash transactions exceeding $10,000.
Trusted Los Angeles Defense Attorney
Carrying large sums of cash through an airport or having your cash confiscated for a suspected drug crime is often an individual's first offense. The loss of such money can cause stress and anger. However, you can seek compensation and defense depending on the circ*mstances. Speak to a trust L.A. defense lawyer to explore your options if you were charged with a crime related to carrying large sums of cash.
FAQs
To declare currency, the bearer must complete a FinCEN Form 105, Report of International Transportation of Currency or Monetary Instruments. The FinCEN Form 105 is available from any U.S. Customs and Border Protection (CBP) officer.
How to declare cash at the airport? ›
Travelers who enter or leave the U.S. via airports, seaports or border crossing checkpoints must complete a Customs and Border Protection Form 6059-B and declare the exact amount of money they are carrying.
What happens if you bring more than $10,000 into the US? ›
There is no maximum limit, however, any amount exceeding $10,000 USD must be declared upon arrival on both the Form 6059B and FinCEN 105. All forms must be filled in completely and truthfully. The penalties for inaccurate declaration and non-compliance can be severe including heavy fines and/or confiscation of funds.
How do you declare large amounts of money? ›
You may bring into or take out of the country, including by mail, as much money as you wish. However, if it is more than $10,000, you will need to report it to CBP. Use the online Fincen 105 currency reporting site or ask a CBP officer for the paper copy of the Currency Reporting Form (FinCen 105).
How much money can you travel with internationally per person? ›
If you are traveling on an international flight and have $10,000 or more in your possession, you must disclose the amount of U.S. Currency in your possession on a FinCEN 105 form. Those disclosure rules do not apply on a domestic flight.
What must be reported to FinCEN? ›
Who Must File the FBAR? A United States person that has a financial interest in or signature authority over foreign financial accounts must file an FBAR if the aggregate value of the foreign financial accounts exceeds $10,000 at any time during the calendar year.
Can you carry a lot of cash through an airport? ›
You may worry about the money being lost, stolen, or seized by authorities if you attempt to bring thousands of dollars through airport security. However, it is legal to travel domestically or internationally with any amount of cash.
How much cash can I take through the airport? ›
If you're travelling as a family or group with more than £10,000 in total (even if individuals are carrying less than that) you still need to make a declaration. If you're travelling to Northern Ireland and carrying more than €10,000 (or equivalent) you must follow the rules for taking cash into Northern Ireland.
Will TSA seize cash? ›
However, the TSA may ask a passenger who is carrying a large sum of cash to account for the money. If the TSA suspects that the money is related to some kind of criminal activity such as drug trafficking or money laundering, they may turn the issue over to a law enforcement agency (TSA has no law enforcement powers).
How to fly with lots of cash? ›
Tips for Traveling
Ask TSA officials to screen you in a private location. You don't want everyone in line to know you're carrying a lot of cash. Always keep cash and other valuables with you in a carry-on bag. Never leave such items in checked baggage.
The form requires you to answer some questions and identify yourself and the currency in question. It also asks if you're a professional money transporter carrying the money for someone else. Money reported via FinCEN Form 105 is reported to the IRS to help cut down on money laundering.
Is it illegal to carry large amounts of cash in USA? ›
Carry Large Sums of Cash Through an Airport
Under U.S. law, the transport of more than $10,000 in American currency isn't expressly prohibited. In fact, individuals can theoretically travel with any amount of cash and not violate any law.
Is depositing $2000 in cash suspicious? ›
As long as the source of your funds is legitimate and you can provide a clear and reasonable explanation for the cash deposit, there is no legal restriction on depositing any sum, no matter how large. So, there is no need to overly worry about how much cash you can deposit in a bank in one day.
Can I deposit $50,000 cash in a bank? ›
Depositing a big amount of cash that is $10,000 or more means your bank or credit union will report it to the federal government. The $10,000 threshold was created as part of the Bank Secrecy Act, passed by Congress in 1970, and adjusted with the Patriot Act in 2002.
Do you have to declare a large cash gift? ›
You do not pay tax on a cash gift, but you may have to pay tax on any income that the cash gift generates. For example, if you place the cash gift in a bank or building society account, you may have to pay tax on the interest you earn on that account.
Does FinCEN 105 report to the IRS? ›
Money reported via FinCEN Form 105 is reported to the IRS to help cut down on money laundering.
What does FinCEN check for? ›
Law enforcement agencies successfully use similar techniques, including searching information collected by FinCEN from the financial industry, to investigate and hold accountable a broad range of criminals, including perpetrators of fraud, tax evaders, and narcotics traffickers.
Why do I have to declare money at Customs? ›
The point of the U.S. customs cash limit is to catch criminals and prevent money from being used to fund illegal activity like money laundering or drug trafficking. Unfortunately, travelers who are otherwise law-abiding citizens sometimes get caught illegally traveling with too much cash.
Do you have to declare money leaving us? ›
Savvy travelers always carry some cash, and you can bring an unlimited amount into or out of the country without paying duty on the dough. You do, however, need to file a Currency Reporting Form if you have more than $10,000.
Perhaps the most obvious concern about an individual carrying large amounts of cash through a port of entry is a connection to narcotics and the sale of other drugs. During your interviews, law enforcement agencies, like the Drug Enforcement Agency (D.E.A.), can seize your cash if they reasonably believe that your answers or general demeanor do not reasonably explain why you possess such large sums of cash.