rilakkuma

Hi,

Just had a query regarding currency limits for the US. I'm planning to travel to the US with family and found out that we need declare currency if we're holding $10K or more in negotiable monetary instruments. We don't plan on bringing that much cash and instead will be using credit cards. However when I read this page (https://help.cbp.gov/app/answers/det...redit%20limits) it states:

Monetary instruments that are made payable to a named person, but are not endorsed or which bear restrictive endorsements are not subject to reporting requirements, nor are credit cards with credit lines of over $10,000.

Does that mean that we have to declare the credit limit of each credit card if the limits are less than $10K individually on the FinCen105 form?


Thank you in advance for your advice.

Speedwell

No. Credit cards are not "negotiable monetary instruments" (i.e. currency, personal checks (endorsed), travelers checks, gold coins, securities or stocks in bearer form). Only "monetary instruments" valued at $10K or more (i.e. not credit cards) need to be declared.

Pulaski

Correct.

A "monetary instrument" is some thing you could give to someone else (or sell, exchange for something else, deposit at a bank, etc.), so confusingly, a VISA gift card loaded with more than $10,000 would be declarable.

Guindalf

Actually, the law makes perfect sense. You CAN bring in more that $10k provided you tell the TSA. It's not so it's taxed or confiscated, but purely to limit the flow of large amounts of cash for illicit purposes.

If you are immigrating, you have a legitimate reason for carrying such a large amount if cash, but if you are attempting to avoid taxes or involved in smuggling (drugs or otherwise), you probably do not.

The same rules apply to large purchases. For example, if you buy a car and pay more than $10k in cash, the dealer is legally obliged to inform the IRS.

Pulaski

No one said it doesn't make sense, but if you're referring to my observation about VISA cards I only meant that you can have two visa cards in your wallet when you pass through immigration, both giving you the ability to go into a bank and draw, say, $15k, but the law has no interest in the card with the $15k credit limit but requires the gift card preloaded with $15k to be reported. The laws covering the two cards evolved differently, and innovations in bank products further complicated matters.

Guindalf

Even that makes sense. The gift card can be anonymous whereas the credit card is directly linked to a person.

Pulaski

See above "Nobody said it doesn't make sense..... "

Guindalf

Why are you PMing me? I'm not attacking or disagreeing with you, but pointing out the logic behind the requirements.

Pulaski

If you read the PM you'd see why. I didn't mean any harm by it, ..... but you make it sound like I am attacking you.

rilakkuma

Thanks for the advice everyone, greatly appreciated.


Is this because the gift card has no identification (i.e. credit card holder name) and can just be given to anyone hence it'd need to be declared? So as long as the credit / debit cards has cardholder names it should be ok from declaring?

Speedwell

Yes, essentially. You don't give your credit or bank card to someone in settlement of an obligation, you allow them to present their invoice to the credit card company or bank for payment, and you retain ownership of the card and the account. You give money, or a gift certificate, or a check made out in blank or to "cash" or "bearer", or a stock certificate, and ownership passes from you to them. That's more or less how it was explained to me in an accounting class I took in college, anyway

ian-mstm

No, that's not why. It has nothing to do with the name on the card. The reason you need to declare the gift card is because the card itself is worth the value of whatever money you put on it. If you put $10,000 on the card, then the card is worth $10,000 and that value must be declared to the US Department of the Treasury.


It has nothing to do with the name on the card. Credit cards don't need to be declared.

Ian

Speedwell

I apologize if I gave misleading information. I thought the OP was asking for some of the reasoning behind why the distinction was made. It doesn't change the fact that credit cards don't have to be declared. Thanks, Ian.

ian-mstm

I actually hadn't read your post before I posted... I guess I was working on my comment while you posted. No worries.

Ian