Temporary Retention of Cash by Customs
CANCELLATION OF IRREGULAR CUSTOMS PROCEDURES INVOLVING CAPITAL TRANSFERS
In a ruling dated January 13, 2021, Maître Régina LOPEZ RAMIREZ successfully obtained the full cancellation of all official reports from a customs procedure, as well as all subsequent proceedings, including the entire case file.
In this case, the defendant had been indicted on charges of undeclared capital transfers, criminal conspiracy, aggravated money laundering, and customs-related money laundering.
The Douai Court of Appeal’s Investigation Chamber held that the customs checks which led to the proceedings and prosecution were carried out in violation of Article 60 of the Customs Code.
The court concluded that customs officers had made « an overly broad and erroneous application of the powers related to the right of search under Article 60 of the Customs Code, » and that they had “diverted this procedure to compensate for their inability to impose customs detention, in disregard of the rights of the defense and judicial oversight.”
It therefore ruled that:
“The customs procedure is hereby declared null and void.
All subsequent proceedings based on it are annulled.
The entire case file shall be removed from the record and archived by the Investigation Chamber’s registry.”
(Douai Court of Appeal, Investigation Chamber, January 13, 2021)
CAPITAL TRANSFERS TO OR FROM ABROAD: WHAT THE LAW REQUIRES
Since the removal of foreign exchange controls on January 1, 1990, individuals residing in France have been free to transfer capital abroad and hold foreign assets.
However, to combat money laundering, terrorist financing, and tax fraud, the European Union has implemented strict rules requiring declarations for capital transfers of €10,000 or more between EU Member States or between the EU and third countries.
DECLARATION OBLIGATIONS WHEN ENTERING OR LEAVING FRANCE
Any individual transferring funds, securities, or valuables (including those covered by Article L.561-13 of the French Monetary and Financial Code), gold, or payment instruments—without using a bank, payment institution, or other authorized entity—must file a customs declaration, under conditions set by decree.
All transfers of €10,000 or more (or equivalent in foreign currency) must be declared to customs before crossing the border.
This obligation applies whether the individual is transferring the funds for themselves or on behalf of a third party.
Declarations can be made via Cerfa Form No. 13426 or through the DALIA platform: https://www.douane.gouv.fr/dalia
WHAT MUST BE DECLARED?
Examples include (non-exhaustive list):
Cash: banknotes and coins in circulation
Bearer-negotiable instruments
Negotiable instruments (endorsable or incomplete)
Bearer cheques, travel cheques
Commercial paper, bills of exchange
Certificates of deposit, especially anonymous ones
Any financial instruments with liquid value
DECLARATION REQUIREMENT FOR EU AND NON-EU DESTINATIONS
A declaration is mandatory upon entry or exit of French territory, regardless of whether the capital is going to or coming from an EU Member State or a third country.
SEVERE PENALTIES FOR NON-COMPLIANCE
Failing to declare—or declaring incomplete or inaccurate information—is heavily sanctioned under French and EU law.
For amounts over €50,000, supporting documentation must be provided to justify the origin of the funds.
According to Article L152-4 of the French Monetary and Financial Code:
A customs fine of 50% of the undeclared amount
Possible seizure and confiscation of the funds during a renewable six-month retention period (up to 12 months with prosecutor approval)
Criminal prosecution for money laundering, especially if the undeclared capital is linked to criminal activity
Even if the individual is ultimately acquitted, customs may still confiscate the funds if it is plausible that the person was involved in a customs offense.