【Cuba】Money, Jewelry… Coming In or Going Out?

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Editor’s Note

This article details attempts to evade currency declaration laws through concealment, highlighting the legal consequences and risks of such actions.

Dinero y Joyas
Concealed Cash and Gold

A woman hid 5,000 Swiss francs inside condoms and concealed them in her vagina. She intended to travel with her money hidden because she knew she was carrying more than the permitted amount—a total cash sum exceeding the limit established by law—without declaring it to the customs authority. She was discovered, fabricated a story, but failed in her obligation, an offense aggravated by the concealment.
Another individual attempted to be even cleverer, attaching 32,550 euros to his body, but was also caught by customs personnel who detected his attempt to circumvent the law.
Concealed in the luggage of a married couple, 2.7 kilograms of gold were found without any evidence of authorization for its export. Effective techniques such as X-rays for non-clinical human control, known as body scans, are always applied.

Why Disregard the Law?

Why is what is established by Cuban law ignored? Do offenders think they will be overlooked or that authorities will “turn a blind eye”? The enforcement work of the General Customs of the Republic (AGR) is vital and increasingly refined, in accordance with national and international agreements and regulations. Why try to fool them?

Money Coming and Going: The Statistics
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In the first eight months of the current year, the General Customs of the Republic (AGR) recorded 384 violations of regulations related to the extraction and import of Freely Convertible Currency, 292 cases more than in the same period the previous year.
Argelio Zaldívar Fundora, a senior customs officer of the Enforcement Directorate of this control body, specified that violations generally occur upon departure from the territory, via air.

“The main violations related to the import and export of cash in the country are linked to wanting to export the Cuban convertible peso, the CUC. The destinations are fundamentally the United States, Mexico, Panama, and Russia, and it is Cubans who most frequently commit this type of offense.”

Zaldívar Fundora specified that the confiscated amounts in this period amount to 165,816 CUC; 61,660 CUP; 875 euros; 15,150 rubles; 73,822 USD; and 386 units (crucifixes, coins, and silver bars).

The Regulations Explained

The senior customs officer specified that Regulations 17 and 18 of 2012 from the Central Bank of Cuba dictate the procedures regarding the entry and exit of cash from the country, which are similar to regulations in force in most countries, where each government determines the amount defined for mandatory declaration.

“In the case of Cuba, when individuals arrive in or depart from the country carrying more than 5,000 US dollars or its equivalent in other freely convertible currencies (FCC)*, they are obligated to declare it to the customs authority, as that is the amount established in our territory.
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“The import of FCC into Cuba is free, whether in cash, checks, and other means of payment used in international banking practice, but only if the amount exceeds 5,000 USD or its equivalent in other FCC in cash must the traveler declare it to AGR officials. It is important to specify that to determine the equivalent of 5,000 USD in other FCC, the exchange (buy) and re-exchange (sell) rates published by the Exchange House, known as Cadeca, are taken into account.
“Export by individuals is permitted up to 5,000 USD or its equivalent in other FCC in cash, checks, or other means of payment. A higher amount can be exported if the passenger declared to the customs authority upon entering the country the amount over 5,000 USD, informing that part of that amount will be taken out of the country.
“An individual may also export an amount exceeding the established figure if they present authorization documentation issued by the President of the Central Bank of Cuba, following the submission to this entity of documents certifying its acquisition through legal channels.”

Zaldívar Fundora specified that Cuban citizens residing in the country, as well as foreign permanent residents, can export and import upon their arrival or departure from Cuba sums not exceeding 2,000 CUP (Cuban pesos) of legal tender, in cash and in any denomination.

“The legal foundations prohibit the export of the means of payment called the convertible peso of legal tender, known as CUC, in any denomination, as well as the export of Cuban pesos through non-commercial shipments.
“Demonetized pieces and specimens of Cuban or convertible pesos with numismatic or heritage value can be imported and exported in accordance with Resolution 57 of 1994 of the Minister of Culture.”
Increased Compliance and International Standards
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The AGR official acknowledges that in the last four years, the number of travelers declaring the amounts of cash entering or leaving the country during border crossing has increased, demonstrating greater knowledge of the regulations and, in turn, streamlining customs controls.

“This is not an isolated action by the AGR, as our control body complies with the good practices related to the control of cross-border movement of cash recommended by the Financial Action Task Force (FATF).”
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⏰ Published on: December 02, 2017