- This topic has 1 reply, 4 voices, and was last updated 10 years, 9 months ago by
.
-
Posts
-
I need information this morning. If I bring a Certified or Cashier’s check ($40,000) to Costa Rica in a few days–will that be considered cash? I don’t want to risk confiscation. My seller asked for 5 checks of $8K each, but that seems to not be any different to me.
[quote=”puravidatexan”]I need information this morning. If I bring a Certified or Cashier’s check ($40,000) to Costa Rica in a few days–will that be considered cash? I don’t want to risk confiscation. My seller asked for 5 checks of $8K each, but that seems to not be any different to me.[/quote]
Seems to be covered under the “negotiable instrument” section of the rules…. I’m assuming you’re concerned about the declaration of travel with more than $10,000. The other question becomes WHY is the seller requesting payment in such a way… seems HE might be attempting to avoid the radar either on transporting the sale proceeds or depositing the funds in the bank… it’s called a “structured deposit” (aka Smurfing) to avoid the banking rules requiring reporting of deposits over $10k.
Be safe (rather than sorry)… fill out the form. Have a copy of your sales agreement just incase someone ask what the money is being used for. Shouldn’t be a problem on your end… the seller however sounds as if he might be trying to avoid some type of attention.
Keep in mind breaking the $40,000 into 5 $8,000 checks might bring unneeded questions and suspicion as to YOUR intended use of the money which appears to be completely legitimate.
You can not bring more than $10,000 with you when you travel to Costa Rica even if it is in the form of a check. It is the aggregate of cash and checks that must not be more than $10,000. Your transaction should be done by wire transfer from your US bank to a bank in Costa Rica. Even 8 checks in the amount of $8,000 each would total more than $10,000 and you risk confiscation of the checks. A wire transfer of more than $10,000 will be reported to the federal government but you have a legitimate reason for the transfer (ie. you are purchasing property). The wire transfer will only take a few days to clear to your seller whereas any check (even a certified one) will take 21 days to become available in Costa Rica. Even though the $40,000 transfer will be reported to the Fed, they will not do anything about it (unless you have certain outstanding debts to the government) because that amount, even though it is significant to you, is small change to the federal government. Now, if you sent a $40,000 wire transfer every week, they might begin to take notice. The approximate $50 wire transfer fee is small compared to the total amount of money transferred and it protects you from tons of possible legal problems if you do otherwise.
[quote=”rosiemaji”]You can not bring more than $10,000 with you when you travel to Costa Rica even if it is in the form of a check. It is the aggregate of cash and checks that must not be more than $10,000. Your transaction should be done by wire transfer from your US bank to a bank in Costa Rica. Even 8 checks in the amount of $8,000 each would total more than $10,000 and you risk confiscation of the checks. A wire transfer of more than $10,000 will be reported to the federal government but you have a legitimate reason for the transfer (ie. you are purchasing property). The wire transfer will only take a few days to clear to your seller whereas any check (even a certified one) will take 21 days to become available in Costa Rica. Even though the $40,000 transfer will be reported to the Fed, they will not do anything about it (unless you have certain outstanding debts to the government) because that amount, even though it is significant to you, is small change to the federal government. Now, if you sent a $40,000 wire transfer every week, they might begin to take notice. The approximate $50 wire transfer fee is small compared to the total amount of money transferred and it protects you from tons of possible legal problems if you do otherwise.[/quote]
The rules require reporting it… they don’t prohibit it. I’ve transported both cash and negotiable instruments in excess of the $10,000 threshold several times in the past without issue. Unless the rules changed within the last year the form and an answer for the use of the funds is all you need. I’ve used the wire transfer route as well on one purchase but if you don’t have a bank account in CR you’re sending your money to someone else (attorney, broker, or seller) before you actually close on the property…. a bit uncomfortable depending on your level of trust and the amounts involved.
I also transported metals (silver) in January without issue although the reporting requirements are lower ($2,500) and required a different form. Once again… no issues… paperwork completed… and an answer when questioned by authorities on both ends of my trip to CR.
[quote][/quote]The rules require reporting it… they don’t prohibit it. I’ve transported both cash and negotiable instruments in excess of the $10,000 threshold several times in the past without issue. Unless the rules changed within the last year the form and an answer for the use of the funds is all you need. I’ve used the wire transfer route as well on one purchase but if you don’t have a bank account in CR you’re sending your money to someone else (attorney, broker, or seller) before you actually close on the property…. a bit uncomfortable depending on your level of trust and the amounts involved.
I also transported metals (silver) in January without issue although the reporting requirements are lower ($2,500) and required a different form. Once again… no issues… paperwork completed… and an answer when questioned by authorities on both ends of my trip to CR.[/quote]
[b]Thanks for all the advice. It’s just a little unnerving to think about consequences of a misstep. I’ve told the seller that I will deliver the cash balance in a cashier’s check. If that is our chosen route, I will declare it at the airport, and fill out the needed paperwork. I have documentation for the origin of the funds, if necessary.[/b]
[quote=”puravidatexan”][quote][/quote]The rules require reporting it… they don’t prohibit it. I’ve transported both cash and negotiable instruments in excess of the $10,000 threshold several times in the past without issue. Unless the rules changed within the last year the form and an answer for the use of the funds is all you need. I’ve used the wire transfer route as well on one purchase but if you don’t have a bank account in CR you’re sending your money to someone else (attorney, broker, or seller) before you actually close on the property…. a bit uncomfortable depending on your level of trust and the amounts involved.
I also transported metals (silver) in January without issue although the reporting requirements are lower ($2,500) and required a different form. Once again… no issues… paperwork completed… and an answer when questioned by authorities on both ends of my trip to CR.[/quote]
[b]Thanks for all the advice. It’s just a little unnerving to think about consequences of a misstep. I’ve told the seller that I will deliver the cash balance in a cashier’s check. If that is our chosen route, I will declare it at the airport, and fill out the needed paperwork. I have documentation for the origin of the funds, if necessary.[/b][/quote]
Don’t worry about it… even if you go the route of not declaring the checks…. just put them between the pages of a book like “50 Shades of Grey” and pop it in your carry on… it’s unlikely they’ll touch the book!!!! LOL
- You must be logged in to reply to this topic.
