ECCU Blog

It is common for ministries to transport U.S. dollars internationally for ministry work. When doing so, it is important to follow the U.S. laws that relate to transporting of cash and monetary instruments. 

An individual can legally carry or mail any amount of money into or out of the U.S., but you must report it to U.S. Customs and Border Protection using this form. If this reporting isn’t done, the traveler is at risk having the funds confiscated and potentially not getting them back. In addition, criminal and civil penalties may apply. 

People who travel with money will be asked if they are transporting more than $10,000 in cash or monetary instruments. If they answer yes, then they must complete this form. After this document is completed, the inspector may choose to verify the funds. If the form was completed accurately and truthfully, the form is accepted and the traveler is free to depart. However, if the inspector finds additional funds, then all the money will be seized and the traveler will have to petition U.S. Customs for its return. 

It is important to note that these laws apply to cash or monetary instruments that are mailed or shipped. They also apply if your ministry receives cash or monetary instruments that have been mailed or shipped internationally. (Note: The term “monetary instruments” includes foreign currencies, traveler’s checks, and checks or money orders which are in bearer form or from which the name of the payee has been omitted.)

 A transfer of funds through normal banking channels, such as international wire transfer or international ACH, which does not involve the physical transportation of currency or monetary instruments, does not need to be reported. 

If your staff or volunteers travel with, mail or ship cash or monetary instruments, provide them with this Currency Reporting Flyer from U.S. Customs, which includes good summary information and requirements to ensure that you’re in compliance.

If you receive an email for your ministry regarding a failed ACH transaction that appears to be sent from NACHA (The Electronic Payments Association), do not open it or you risk infecting your computer with a sophisticated new version of malware that could ultimately siphon large amounts of money from your ministry’s bank accounts.

According to a recent alert issued by the Federal Bureau of Investigation (FBI), the email is likely part of a sophisticated phishing attack designed to capture online banking log-in credentials and transfer funds from your ministry’s accounts. NACHA never sends emails directly to businesses or consumers.

The FBI urges caution whenever you receive communications from senders that would not normally send you email or are not from the sender’s normal email address. You should not open such emails.

To learn more about how to protect your ministry from phishing attacks, visit ECCU’s Member Security page.

“As hard as it may be to believe, embezzlement is a relatively common occurrence in churches.”  — Richard Hammar, attorney and CPA

I recently did some research on fraud while preparing a presentation for ministry leaders about protecting their ministry assets. I expected to find some news articles but was surprised to find so many reports of fraud recently discovered in churches and nonprofits.

Like me, many in the ministry world probably think that embezzlement rarely happens. Unfortunately, we are wrong.

So why is fraud on the rise—and what can we do to prevent it?

We know that three things must exist for fraud to occur: pressure, opportunity, and rationalization. Certainly, the current economic environment has created financial pressure for some workers and volunteers who, given the opportunity, might rationalize this immoral behavior. While we can’t control the pressure workers or volunteers may experience, or even how they may rationalize stealing, we can control the opportunities for fraud or embezzlement within our ministries.

The first step is to conduct a risk assessment. This simply means sitting down with your team and talking about where losses might occur. As you begin to identify those risk areas, you can determine which ones pose the greatest risk for your organization, workers, and volunteers. Typical high-risk areas include inadequate separation of duties between related tasks and a lack of dual custody when handling valuable assets such as contributions.

Addressing these areas doesn’t mean you are creating an environment of distrust. On the contrary; you are building accountability and transparency—protecting both your ministry and the people who work or volunteer for it.

Guarding your ministry against fraud begins with an honest assessment of your vulnerability. Then, apply a sound system of internal controls such as separation of duties, dual custody, and transparency in financial reporting. (You may also want to revisit who has authority over your accounts.)

To learn more about preventing fraud, you might want to read our white paper Handling Cash: A Common Sense Approach to Securing Your Ministry’s Most Liquid Asset.

Has your ministry taken any other steps to reduce opportunities for fraud?