In message <9408091606.AA22481@ah.com> Eric Hughes writes:

There is a small point to be made here which I think is really a big point. The US government does not object to the use of financial instruments so long as they are backed by the US $ (or another accepted currency).

No, this isn't so. They also object to barter schemes that are backed by dollars. The object to them not by making them illegal _per se_, but by making it illegal not to report all the transactions that occur inside them.

It may not be so, but this example is not relevant. A barter scheme is not a financial instrument or an exchange of financial instruments. If you agree to exchange a refrigerator for ten hours with your favorite shrink, no financial instruments change hands. But the IRS sees that your shrink is making "money" and not reporting it.

You also need to be concerned about Federal regulations covering the import and export of money. I think that at $5,000 or $10,000 you have to report the transaction.

This applies to cash and some cash-like instruments, not to "money". Originally it was just cash; it has been extended to other instruments, but not to all of them, insofar as I know.

When you fly into the US, you must fill out a customs declaration. You are required to declare money in various forms (cash, checks, etc) and then to sign a statement saying that your declaration is true. I believe that you must declare anything over a relatively small amount, a few thousand dollars. Banks are required to declare cash deposits and international movements of funds over either $5K or $10K, I forget which. The objective is to make money laundering difficult. -- Jim Dixon