From: Dark <unicorn@access.digex.net>
Date: Wed, 10 Nov 93 21:23:26 PST
To: cypherpunks@toad.com
Subject: smuggling currency
Message-ID: <199311110522.AA14630@access.digex.net>
MIME-Version: 1.0
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Interesting scenario.  I buy one of these babies for $100,000 in
Switzerland.  I arrange to have it not yet "turned on."  (Many of the 
new
prepaid phone cards must be activated before they can be used.) I 
enter
the US carrying a card worth $0.  I order it activated.  Suddenly I have a
$100,000 cash card in the US without having imported $100,000 into the 
US.
<-
 
I wish it were so,
 
Looks to me like this violates the following:
 
18 USCS 1001
18 USCS 1956
31 USCS 5316
 
The basic thrust is this:
You can't transport a monetary instrument worth more
than $ 10,000 without filling out the appropriate customs
report.  The real killer here is the title 31 code.  Which reads
liberally enough to bite you.  Specific language reads something
like "...shall not construct a transaction to evade reporting
requirements...."  The fine provision allows for $500,000 or twice
the value of the monetary instrument.  Hefty indeed.  I think they
take this seriously.  If you bring the money in with the intent to
avoid taxes, you have a second count, and could be in it for up to
four times the amount you smuggled.
 
I like the thinking, the court is less likely to.
All your transaction does (unfortunately) is delay the importation
of the "currency" until after the plane trip.  You're still required
to report the transaction, the card just makes it easier to get
away with it.
 
- -uni- (Dark)
 
 
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