Travel Regulatory Frameworks & Compliance 4 — Questions and Answers
Question 1: If a U.S. traveler carries more than $10,000 in currency or monetary instruments into or out of the country, they must:
- File a FinCEN 105 report with U.S. Customs and Border Protection (Correct answer)
- Obtain prior written approval from the IRS
- Declare it only if it is foreign currency, not U.S. dollars
- Pay a 10% duty on the amount exceeding $10,000
Correct answer: File a FinCEN 105 report with U.S. Customs and Border Protection
Federal law requires travelers to report currency or monetary instruments over $10,000 to CBP using FinCEN Form 105.
Question 2: Under the Cruise Vessel Security and Safety Act (CVSSA), U.S.-regulated cruise ships must maintain video surveillance in which areas?
- Exterior decks, passageways outside cabins, and areas near lifeboats (Correct answer)
- Inside all passenger cabins continuously
- Only the casino and spa areas
- The bridge and engine room exclusively
Correct answer: Exterior decks, passageways outside cabins, and areas near lifeboats
The CVSSA requires video surveillance in public and semi-public areas to deter and document crimes, not inside private cabins.
Question 3: Travel insurance policies typically contain a 'free look' period during which a purchaser can cancel for a full refund. This period is usually:
- 10–15 days from the date of purchase (Correct answer)
- 24 hours from the time of purchase only
- Until the travel departure date
- Until the first claim is filed
Correct answer: 10–15 days from the date of purchase
Most travel insurance policies offer a 10–15 day free look period after purchase, as required by many state insurance regulations.
Question 4: A U.S. hotel's liability for a guest's personal property (e.g., jewelry or cash) left in the room is typically limited by:
- State innkeeper liability statutes, often requiring use of an in-room safe (Correct answer)
- Federal consumer protection law at a fixed $500 cap
- The hotel's posted rate card, which functions as the contract
- Unlimited liability if the hotel provided no safe
Correct answer: State innkeeper liability statutes, often requiring use of an in-room safe
Most states have innkeeper laws that cap hotel liability for guest valuables, usually contingent on the hotel providing a safe.
Question 5: Which federal rule requires airlines to hold a reservation for 24 hours without payment, or to provide a full refund within 24 hours of booking for flights departing at least 7 days in advance?
- DOT's 24-Hour Reservation Requirement (14 CFR Part 259) (Correct answer)
- The Airline Passengers' Bill of Rights Act
- The Aviation and Transportation Security Act
- The Fly America Act
Correct answer: DOT's 24-Hour Reservation Requirement (14 CFR Part 259)
DOT's 14 CFR Part 259 mandates either a 24-hour hold or a 24-hour refund option for tickets purchased 7+ days before departure.
Question 6: Under the Foreign Corrupt Practices Act (FCPA), a U.S.-based travel company operating internationally is prohibited from:
- Bribing foreign government officials to obtain or retain business (Correct answer)
- Competing for government travel contracts abroad
- Hiring local agents in foreign countries
- Accepting payments in foreign currencies
Correct answer: Bribing foreign government officials to obtain or retain business
The FCPA makes it illegal for U.S. persons and companies to pay bribes to foreign officials to gain a business advantage.
Question 7: The International Health Regulations (IHR), managed by the WHO, give the organization authority to declare a Public Health Emergency of International Concern (PHEIC), which can result in:
- Recommended travel restrictions and entry screening measures that member states may adopt (Correct answer)
- Mandatory quarantines automatically enforced by all UN member countries
- Closure of all international borders by default
- Cancellation of all international flights pending WHO clearance
Correct answer: Recommended travel restrictions and entry screening measures that member states may adopt
A PHEIC triggers WHO recommendations, but implementation of specific travel measures remains at each country's discretion.
Travel Regulatory Frameworks & Compliance 4
If a U.S. traveler carries more than $10,000 in currency or monetary instruments into or out of the country, they must: