From: Duncan Frissell <frissell@panix.com>
Date: Thu, 11 Nov 93 04:43:31 PST
To: CYPHERPUNKS@toad.com
Subject: smuggling currency
Message-ID: <199311111240.AA08117@panix.com>
MIME-Version: 1.0
Content-Type: text/plain


U>The basic thrust is this: You can't transport a monetary instrument
U>worth more than $ 10,000 without filling out the appropriate customs
U>report.  

Of course they have to be able to prove that you did so.  Cash cards raise 
real proof problems.

U>If you bring the money in with the intent to avoid taxes, you have a 
U>second count, 

There are no tax consequences to cash per se.  The issue is whether the 
cash constitutes unreported income or not.  A separate issue.

U>All your transaction does (unfortunately) is delay the importation
U>of the "currency" until after the plane trip.  You're still required
U>to report the transaction, the card just makes it easier to get
U>away with it.

However, by spreading the "importation" out over time, cash cards reduce 
the chances that a "structuring" count could be proved against you.  The 
whole cash card thing really mixes up the exact location of the money.  
What if you are overseas and buy a VISA USA cash card and then bring it 
into the US.  Is this a reportable transaction?  Presumably the payment 
for the card was wired by your overseas institution to VISA USA, a bank 
wire is not reportable.  In any case, the overseas institution may not 
link you with its purchase of a VISA Cash Card from the US.

Complications.

DCF



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