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I'm travelling from south America to Toronto via Houston. Do I need to declare the cash I bring to Canada at Houston Airport?

Let me add some information for clarification purposes: we are travelling as a family and we plan to settle, legally, in Canada. We have proof of that by the Canadian government.

UPDATE 2: I did bring well over 10k into Canada, declared it at Houston, filled two FINCEN 105 forms, with the exact amount, no questions were asked, I did explained, however, we are starting a new life in Canada and show all the proper paperwork. Everything went really well and my money is with me. I'm adding this for anyone else who needs an answer.

Orejano
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  • Also see https://travel.stackexchange.com/questions/132325/what-happens-if-you-declare-more-than-10-000-at-the-us-border – RedBaron Oct 07 '21 at 01:37
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    Interested to know why you would carry over 10k in cash. That's very risky indeed. – camden_kid Oct 07 '21 at 08:42
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    @camden_kid: It's probably easier than the alternative. – Michael Seifert Oct 07 '21 at 11:30
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    Yes, you will need to declare it. Plan for extra time! Bringing a large wad of cash from South America is likely to result in some detailed questions and an extended conversation with CBP/customs. It helps to have a good story prepared. – Hilmar Oct 07 '21 at 12:01
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    Not just a good story, @Hilmar, but a true story! ;) (subtle difference...) Of course, it's also a good idea to see if there is some other way to access the cash in CAN rather than carrying it with you. It seems to be just too much of a hassle, even though cash is my preference. – FreeMan Oct 07 '21 at 15:05
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    The CBP may not care at all what you are trying to do with the money in Canada. As far as they are concerned you are entering the US. You may board an onward flight to Canada but nothing stops you from just walking out the airport and giving the money to a local drug dealer. "Family" might also not help. We showed up with 3 small kids, 15k in cash and a good (and true) story but still got a lot of questions nevertheless. – Hilmar Oct 07 '21 at 15:28
  • Why in the world are you carrying $10k in cash? There is absolutely no legal reason to ever need that much cash. At the very least, it's an incredibly stupid thing to do. –  Oct 09 '21 at 02:09
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    Probably because when you arrive to a new country as an immigrant to start a new life, you don't have bank accounts in the new country, which makes wiring money a bit of a problem until you can get one. This may take a few days, but there is always initial expenses that you might need to have money for before you can actually wire money. I wouldn't bring all my money this way, but I find it reasonable for a family to have to bring several thousand dollars for the initial landing. – yorch Oct 09 '21 at 04:58
  • @yorch A certified bank check (which also must be declared) will serve the same purpose and is much safer. This verified source (for customs) could then be used for the initial deposit of a new account. – Mark Johnson Oct 09 '21 at 05:21
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    @MarkJohnson sure, but there is still a gap between the time you arrive and the time you can actually open the account to deposit the check. Can't remember the exact requirements for banking in Canada, but could take a few days to get all the required documents as new immigrant to be able to open an account. – yorch Oct 09 '21 at 05:37
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    @camden_kid The OP is from the same country as I am; Argentina. We are used to carrying high amounts of USD. We buy real estate in cash (hundreds of thousands on a backpack), have saving "below the mattress," as we say here, because we don't trust the banking system either. For us, it is natural to try what the OP asks, but it is highly unadvisable: A max of 10K USD is permitted cos it is considered a fair amount for leisure travel. Any country in the world will confiscate any sum above that to fight money laundering. Good luck trying to prove to an abroad authority how that cash was earned. – royconejo Oct 09 '21 at 06:01
  • @MarkJohnson: a certified bank check probably counts as ‘negotiable monetary instruments’ which need to be declared. It's not just cash. However, something like this or a traveler check may work better: they can seize but they can't cash it without your signature and I don't think they can force you to sign them. You couldn't bring it, but at least they can't steal it either. – Hilmar Oct 09 '21 at 15:52
  • @Hilmar Thus the 'which must be declared' portion of the comment. Since it is a reserved amount from their own account by a specific bank (just as a credit or debit card), there would be no reason to seize it when declared. – Mark Johnson Oct 09 '21 at 20:06
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    @user91988: please explain to me how to transfer, say, USD 20,000 from Argentina to Canada without having lived in Canada. Besides the very strong limitations from the Argentinean government on moving big amounts of money, you need an account in a destination country you have never set foot in. – Martin Argerami Oct 10 '21 at 01:28
  • @MartinArgerami Please explain why you would need to do that. Once you get there, you open an account. Then you transfer the money. In the mean time, you carry only the cash you need until you can open an account. –  Oct 10 '21 at 02:29
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    @user91988: you clearly have not lived in Argentina. You are assuming that this can be done remotely. You are assuming that none of the forms you have to present will be rejected. You are assuming that the banking system will remain stable in between leaving and being able to transfer the money. You are assuming that the money was in the banking system to start with. And you are assuming that the family can settle in the new country without that money and then wait for the money to come. And all that is assuming that the money was in USD to start with; current limit to buy is USD200/month. – Martin Argerami Oct 10 '21 at 03:47
  • @MartinArgerami All of which should be stated in the question when it is relevant. – Mark Johnson Oct 10 '21 at 07:14
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    @MarkJohnson none of the limitations we have in Argentina are relevant to the question. – Orejano Oct 10 '21 at 11:38
  • @Orejano I may stress "money laundering". The real problem is to demonstrate how you got that money. Declaring an amount above 10K while on transit (you need to) will not prove that. That is why it may still get confiscated at the authority discretion. Any bank needs to inquire when someone makes a significant cash deposit, asking for documental proof of earnings; it doesn't matter whether it is in Canada or Argentina. The receiving bank may assume that the sender institution already took this procedure on a wire bank transfer; still, additional controls may apply. – royconejo Oct 12 '21 at 10:56
  • @conejoroy I had all my paperwork in order. I declared my money at port of entry in the US, filled two FinCEN 105 forms (one for entry and one for leaving the US) and then I declared at port of entry in Canada. No questions where asked about proof of fund, neither was requested. Now I'm in Canada with all my money and, hopefully I will open a bank account soon and make a deposit. – Orejano Oct 12 '21 at 11:37

3 Answers3

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WARNING: You are at risk of losing your money!

You actually have to declare it TWICE:

You have to declare cash (or equivalent) over 10k both when entering and leaving the country. See https://help.cbp.gov/s/article/Article-195?language=en_US#:~:text=International%20travelers%20entering%20the%20United,file%20a%20FinCEN%20Form%20105.

Most people don't know that you need to declare cash on departing the US as well and the Department of Homeland Security (DHS) doesn't advertise it a lot. You need to fill out form FinCEN Form 105 once for import and once for export. You can NOT use the same form for both entry and exit. I honestly don't know where and how to drop off the export version and retain proof that you have filed it.

Failure to declare is often a trigger for "Civil Forfeiture": the government can confiscate your money just on a paperwork mistake or simply by assuming it's related for something criminal. They do NOT need to proof anything, file charges, or arrest anyone, they can just take it if they feel like it. The only recourse is to sue the US government for "return of property", which is prohibitively expensive and complicated for most people.

This is a VERY real thing: the DHS seizes over 100 million dollars per year at US airports.

To be blunt here: It's entirely possible that a DHS officer will say: "you are coming from South America, so I assume that is drug money, and so we will confiscate it". Astonishingly this is entirely legal and happens regularly.

I strongly recommend transferring the money some other way. Even if you do everything correctly and the money is perfectly legal, there is non-trivial risk that it gets confiscated.

More reading

Willeke
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Hilmar
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    Transferring the money in some fashion other than carrying cash does seem to be a very good recommendation. Not just in this case, but in all cases. I prefer cash, but carrying that much is just too much hassle. – FreeMan Oct 07 '21 at 15:03
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    @ilkkachu; thanks for the catch. Fixed – Hilmar Oct 07 '21 at 15:25
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    Even if you declare it and make it through the airport, if you get pulled over by police, even for something as mundane as a routine traffic stop, they can still take it (civil asset forfeiture) if they find it. Being a large sum of cash on its own is cause enough for them to seize it, afaik. OP would be well advised to simply not carry that much cash in the US. That's a good rule for anyone. – J... Oct 07 '21 at 19:51
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    @J... Honestly, it's a good rule everywhere, not just in the U.S. Cash is very easy to be parted from and incredibly difficult to get back if lost/stolen/confiscated regardless of where you are in the world. I'm not sure what part of South America OP is traveling from, but there are a lot of parts of South America that I'd be a lot more concerned about carrying $10k cash through than I would through the U.S. And, while it's perhaps more likely to be confiscated in the U.S., carrying $10k cash will attract suspicion at customs in virtually every country. – reirab Oct 07 '21 at 21:34
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    ...and when entering Canada. And in case this point wasn't made loud enough, they can seize it even if you declare it! If they have a legitimate banking system in your country, for God's sake use it. I know that's not some people's "personal style", but it's also not such people's "personal style" to sue the government to get back what's theirs, and they know that. Such civil forfeiture has become an enormous racket. – Harper - Reinstate Monica Oct 07 '21 at 21:59
  • @Harper-ReinstateMonica you don't even have to use the banking system these days. Just convert your money into Bitcoin or another cryptocurrency and you're good to go. No one can take it away and you never need to declare it. Though you will lose money on exchange fees, so its more of an option of last resort. – JonathanReez Oct 08 '21 at 05:06
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    @JonathanReez If you are carrying proof of bitcoin ownership it counts as $ for US Customs purposes. See here and Reddit discussion here - Related US laws – Russell McMahon Oct 08 '21 at 10:56
  • sue the US government for "return of property"- what is a ballpark cost of doing that? – hanshenrik Oct 08 '21 at 14:15
  • @hanshenrik: I have no idea, but here is an outline of the process and some of the legal options on how to fight it https://www.assetforfeituredefender.com/news/232-what-to-do-when-your-cash-is-seized-at-an-airport – Hilmar Oct 08 '21 at 17:39
  • @RussellMcMahon we have a question on this and the consensus is that Bitcoin is not in fact a form of currency that has to be declared. Though yes - don't keep the key on your phone. – JonathanReez Oct 08 '21 at 17:48
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    This. Regardless of what you may be legally entitled to do, carrying cash across US borders is just incredibly stupid. You have a very high chance of having it taken and very little chance of getting it back, even if the taking was not justified by any law. – R.. GitHub STOP HELPING ICE Oct 08 '21 at 18:18
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    @hanshenrik The lawsuit would cost considerably more than $11,000... *and the government knows this. If J.R. Ewing or T. Boone Pickens came through with $500,000 they'd leave that alone, because they know old J.R. isn't someone you mess with and has an army of Texas lawyers who play golf with judges. In that sense, OP is the perfect victim*** - too little $ to fight over, and too far away to logistically be able to put up a fight. – Harper - Reinstate Monica Oct 08 '21 at 21:56
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    @JonathanReez How exactly would one bring Bitcoin through Customs anyway? It'd be like trying to bring a blood type through Customs, or your 23andme test results, or a raving fandom of Manchester United. – Harper - Reinstate Monica Oct 08 '21 at 22:31
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    @jonathanReez I am no expert / IANAL / ... but that's 2015 and recent material I have read of actual experiences indicate the opposite. Ref somewhere (not with me currently). – Russell McMahon Oct 08 '21 at 23:06
  • @JonathanReez I'd prefer to carry my assets in a form that doesn't have the potential to significantly drop in value while I am on my trip. – Peter M Oct 12 '21 at 12:34
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Yes, you must declare the cash.

The US doesn't have sterile airside transit: all passengers on every international flight arriving in the US (except those flights departing from a non-US airport with a US Preclearance Facility) must pass US Immigration and US Customs when physically arriving in the US, and enter the US. There are no US Preclearance Facilities at airports in South America, so you will pass Immigration and Customs in Houston.

Because you will enter the US, and you're carrying more than $10K in cash, you must declare the cash when you enter. For you, that's Houston. Travelers who pass US Immigration and Customs at a Preclearance Facility must declare at the Preclearance Facility.

DavidRecallsMonica
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    Preclearance doesn't change the fact you need to pass through US immigrations/customs, it just changes where you do it. Even with pre-clearance, you would still need to declare the money! – Doc Oct 07 '21 at 03:30
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    @Doc Correct. I'll amend to make that clear. Thanks. – DavidRecallsMonica Oct 07 '21 at 14:48
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I will answer my own question since, even though there are some proper remarks in all other answers they are overthinking this, IMHO.

First of all, as @Hilmar pointed out: if you are in transit through the US, you need to fill out two FinCEN 105 forms (one for entry and one for leaving the US). This is all done at the same time, with the same CBP officer.

You just need to declare your money, have proof of funds (which I had). If you sell your car or your house or whatever, you make sure you have a legal document from your country of origin. If you declared your money when leaving your country, have some proof of that.

Also, there is a lot of profiling going on, CBP officers are highly trained and they can now right on the spot who is suspicious and who is not. Have all your documentation ready, and answer honestly. Be calm and relax. In our case, nothing was requested, and no questions were asked about our money.

The same thing in Canada when we arrived, we declared the money and that's that.

I hope this will help other travelers.

Orejano
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