Why carrying more than US$10000 is not allowed?

[opportunist86]

In Pakistan, India and many other countries no one is allowed carry a specific amount of US$ with them and leave the country. In Pakistan the limit is US$10000, which means you can't carry more than US$10000 with you while travelling to some other country in normal condition. I've heard that there no such condition in Dubai and other countries. What is the reason that Dubai allows it and some countries don't allow it. Does this practice effect Dubai foreign exchange?

 

[Archie]

Actually , the limit is imposed to prevent the flight of Black Money

Large corporations are allowed to invest significant money abroad after approval by govt becoz the profit earned will be transferred back to India , however limit is imposed on amount of cash an individual can carry abroad .

But NRIs are allowed to bring in upto 100000 USD without any taxes , this was done to increase remittance to India

 

[Ignited Mind]

As far as I know, it's done to prevent money laundering.

However, it would seem pointless at least in India's case where one has to give one's PAN no., kinda income tax identification number, before the local rupees can be converted into USD so that the govt. can trace the source of the foreign currnency.

For transferring large sums of foreign currency, you can always use money transfer services like Wester Union etc.

 

[TopCat]

this is a normal practice all over the world not to let you carry more than 10000 in cash. You can carry as much as you want in the form of TC/Credit card etc.

 

[asad71]

Carrying unlimited amounts of hard currency and gold should in fact be encouraged. Taking these out should face restrictions to safeguard own economy/wealth. That would be the common sense attitude. But bureaucrats may think otherwise.

 

[lem34]

This issue was first raised by Indians in the nineties to the Americans. Hawalla was being used as a method to fund activities in Kashmir. However the Americans largely ignored Indians as they do normally. However after twin towers attack they started to tighten up and insist other countries do the same. Draconian money laundering laws have been brought into UK and elsewhere. Simply they want to follow money so that it can not be used to fund attacks on them. Its easy to do that through formal banking channels. Those living in Pakistan may have noticed the physical manifestations of these policies by the simultaneous clamping down and an increase in regulation of Hawalla Pakistani merchants with at the same time a corresponding increase in Western Union presence.

 

[cloud_9]

It's the cash that's not allowed upto a certain limit.....but if you are carrying cash more than the limit you have to declare it to the customs.
Remittance out of India has a limit of 1,00,000 USD/Year.

 

[Diamond_Gold]

Your point is correct This policy is solely aimed at fighting money laundering, and the financing of terrorism.

 

[Sugarcane]

Mostly this limit is on out-flow of forex not on in-flow, It's simply that every country wants control over her forex reserves and don't want them to be depleted via money laundering. On In-flow only you have to declare the amount if more than threshold and pay customs if applicable as no country mind in-flow of forex. However in these days because of terrorism you will make yourself suspicious if you are bringing significant cash with you.

 

[T90TankGuy]

actually after 9/11 you cannot land in the states with more than 10K$ in cash , if you do i believe its a crime.

 

[Hyde]

In Pakistan, India and many other countries no one is allowed carry a specific amount of US$ with them and leave the country. In Pakistan the limit is US$10000, which means you can't carry more than US$10000 with you while travelling to some other country in normal condition. I've heard that there no such condition in Dubai and other countries. What is the reason that Dubai allows it and some countries don't allow it. Does this practice effect Dubai foreign exchange?

This rule is applied in many countries including UK where you are not allowed to carry more than 10,000 Euros or equivalent for general purposes however you are allowed to carry more money if you declare your money by filling out the form provided by the custom officers. They basically want to prevent money laundering and ensure the money belongs to you. If you do not declare your money before flying and you are caught by the immigration officer then you are literally screwed up for life. In another words your money would immediately be confiscated by the custom officer and you would have to provide source of your income and genuine proof of the money to get it back from the customs. It is very likely that you will not be allowed to travel unless you provide the source of your income. Once you pass through that criteria you will remain suspected for future travelling and will always be checked on that particular airport unless you remove your name from the suspected list by seeking legal advise. If you are travelling within Europe then this rule does not apply and you can carry as much money as you want.

Now similar rule is also placed in Pakistan, India and other countries to prevent fraud. You can always transfer unlimited amount to foreign bank account by visiting the local branch of your country. So there is no logical reason to carry more than 10,000 Euros or dollars.

 

[xdrive]

In Pakistan, India and many other countries no one is allowed carry a specific amount of US$ with them and leave the country. In Pakistan the limit is US$10000, which means you can't carry more than US$10000 with you while travelling to some other country in normal condition. I've heard that there no such condition in Dubai and other countries. What is the reason that Dubai allows it and some countries don't allow it. Does this practice effect Dubai foreign exchange?

It's to fight money laundering.

Most countries in the world have this rule or a similar rule.

 

[A1Kaid]

actually after 9/11 you cannot land in the states with more than 10K$ in cash , if you do i believe its a crime.

I think that is true.


What you can do is split the money up among your family members and go through customs/ separately. If you do enter the US with $10k or more in your possession you have to declare it with CBP and you must have completed a "FinCen 105" form and give that to the CBP Officer on arrival; otherwise you risk the chance of the money being confiscated.

Though why don't you store the money in a bank and with your bank card can make withdraws once in the US or wire the money over from your account. Probably safer way.

Not sure if you plan on coming to US but if you do just take these procedures.

 

[opportunist86]

Mostly this limit is on out-flow of forex not on in-flow, It's simply that every country wants control over her forex reserves and don't want them to be depleted via money laundering. On In-flow only you have to declare the amount if more than threshold and pay customs if applicable as no country mind in-flow of forex. However in these days because of terrorism you will make yourself suspicious if you are bringing significant cash with you.

But why there is no restriction on this practice in Dubai and some other countries?

 

[tvsram1992]

why to carry that much amount as cash , when we have other safer sources