U.S. Department of Justice

Criminal Division

Asset Forfeiture and Money Laundering Section

Asset Forfeiture &

Money Laundering

Statutes

2015
This book is intended for reference use only. Although every effort has been made to 

ensure that the information in this book is accurate, it is only current through its time of 

publication. Those using it for legal research should always refer to the printed version of 

the United States Code available through the Government Printing Office.
TITLE 7

7 U.S.C. § 2024. Violations and enforcement..........................................................................................................1

7 U.S.C. § 2156. Animal fighting venture prohibition.............................................................................................2

TITLE 8

8 U.S.C. § 1324(b). Seizure and forfeiture of conveyances, gross proceeds, and property traceable to such 

conveyances or proceeds.......................................................................................................................................4

TITLE 13

13 U.S.C. § 305. Penalties for unlawful export information activities. ...................................................................5

TITLE 15

15 U.S.C. § 6. Forfeiture of property in transit.........................................................................................................6

15 U.S.C. § 715f. Forfeiture of contraband oil shipped in violation of law; procedure. .........................................6

15 U.S.C. § 1177. Civil forfeiture of coins and currency in confiscated gambling devices. ...................................6

TITLE 16

16 U.S.C. §§ 470gg(b) and (c). Forfeitures; disposition of penalties collected and items forfeited in cases 

involving archaeological resources excavated or removed from 

Indian lands. (Archaeological Resources Protection Act).....................................................................................7

16 U.S.C. § 916f. Violations; fines and penalties. (Whaling Convention Act)........................................................7

16 U.S.C. § 957. Violations; fines and forfeitures; application of related laws. 

(Tuna Conventions)...............................................................................................................................................7

16 U.S.C. § 971e. Violations. (Atlantic Tunas Convention)....................................................................................8

16 U.S.C. § 972f. Prohibited acts. (Eastern Pacific tuna fishing) ............................................................................9

16 U.S.C. § 1171. Seizure and forfeiture of vessels. (North Pacific fur seals)........................................................9

16 U.S.C. § 1376. Seizure and forfeiture of cargo. (Marine Mammal Protection Act)...........................................9

16 U.S.C. § 1377. Enforcement. (Marine Mammal Protection Act) .....................................................................10

16 U.S.C. § 1540. Penalties and enforcement. (Endangered species)................................................................... 11

16 U.S.C. § 1860. Civil forfeitures. (National Fishery Management Program)....................................................14

16 U.S.C. § 3374. Forfeiture. (Lacey Act).............................................................................................................15

16 U.S.C. § 3606. Violations and penalties. (North Atlantic salmon fishing) .......................................................15

16 U.S.C. § 3637. Prohibited acts and penalties. (Pacific salmon fishing)............................................................16

16 U.S.C. § 5010. Penalties. (North Pacific Anadromous Stocks Convention).....................................................17

16 U.S.C. § 5106. Secretarial action. (Atlantic coastal fisheries)..........................................................................18

16 U.S.C. § 5154. Moratorium. (Atlantic striped bass conservation)....................................................................19

16 U.S.C. § 5509. Forfeitures. (High seas fishing)................................................................................................20

16 U.S.C. § 5606. Prohibited acts and penalties. (Northwest Atlantic Fisheries Convention)..............................21

Table of Contents

Part I—Asset Forfeiture Statutes
ii • Asset Forfeiture Statutes

Table of Contents

TITLE 17

17 U.S.C. § 506(b). Criminal offenses. (Copyright infringements)......................................................................23

TITLE 18

18 U.S.C. § 38. Fraud involving aircraft or space vehicle parts in interstate or foreign commerce. ....................24

18 U.S.C. § 371. Conspiracy to commit offense or to defraud United States........................................................25

18 U.S.C. § 492. Forfeiture of counterfeit paraphernalia.......................................................................................25

18 U.S.C. § 512. Forfeiture of certain motor vehicles and motor vehicle parts. .......................................................26

18 U.S.C. § 545. Smuggling goods into the United States. ...................................................................................26

18 U.S.C. § 550. False claim for refund of duties..................................................................................................26

18 U.S.C. § 641. Public money, property or records..............................................................................................27

18 U.S.C. § 657. Lending, credit and insurance institutions..................................................................................27

18 U.S.C. § 658. Property mortgaged or pledged to farm credit agencies.............................................................27

18 U.S.C. § 666. Theft or bribery concerning programs receiving Federal funds.................................................27

18 U.S.C. § 793. Gathering, transmitting, or losing defense information..............................................................28

18 U.S.C. § 794. Gathering or delivering defense information to aid foreign government...................................29

18 U.S.C. § 844(c). Penalties. (Explosive materials)............................................................................................30

18 U.S.C. § 924(d). Penalties. (Firearms/ammunition).........................................................................................30

18 U.S.C. § 981. Civil forfeiture............................................................................................................................31

18 U.S.C. § 982. Criminal forfeiture......................................................................................................................37

18 U.S.C. § 983. General rules for civil forfeiture proceedings. ...........................................................................38

18 U.S.C. § 984. Civil forfeiture of fungible property...........................................................................................43

18 U.S.C. § 985. Civil forfeiture of real property. .................................................................................................44

18 U.S.C. § 986. Subpoenas for bank records........................................................................................................45

18 U.S.C. § 987. Anti-terrorist forfeiture protection..............................................................................................45

18 U.S.C. § 1028. Fraud and related activity in connection with identification documents, authentication 

features, and information. ...................................................................................................................................46

18 U.S.C. § 1029. Fraud and related activity in connection with access devices..................................................48

18 U.S.C. § 1030. Fraud and related activity in connection with computers. .......................................................50

18 U.S.C. § 1037. Fraud and related activity in connection with electronic mail. ................................................54

18 U.S.C. § 1343. Fraud by wire, radio, or television ...........................................................................................55

18 U.S.C. § 1467. Criminal forfeiture. (Obscenity)...............................................................................................55

18 U.S.C. § 1594. General provisions. (Trafficking in persons)............................................................................55

18 U.S.C. § 1762. Marking packages. ...................................................................................................................56

18 U.S.C. § 1834. Criminal forfeiture. (Protection of trade secrets).....................................................................56

18 U.S.C. § 1955. Prohibition of illegal gambling businesses. .............................................................................56

18 U.S.C. § 1956. Laundering of monetary instruments. ......................................................................................57

18 U.S.C. § 1960. Prohibition of unlicensed money transmitting businesses. ......................................................61

18 U.S.C. § 1961(1). Definitions...........................................................................................................................61

18 U.S.C. § 1963. Criminal penalties. (RICO)......................................................................................................62

18 U.S.C. § 2232. Destruction or removal of property to prevent seizure. ...........................................................65

18 U.S.C. § 2233. Rescue of seized property.........................................................................................................65

18 U.S.C. § 2253. Criminal forfeiture. (For child pornography)...........................................................................65

18 U.S.C. § 2254. Civil forfeiture. (For child pornography).................................................................................66

18 U.S.C. § 2318(d). Trafficking in counterfeit labels for phonorecords, copies of computer programs or 

computer program documentation or packaging, and copies of motion pictures or other audio visual works, 

and trafficking in counterfeit computer program documentation or packaging..................................................66

18 U.S.C. § 2319A. Unauthorized fixation of and trafficking in sound recordings and music videos of live 

performances.......................................................................................................................................................66

18 U.S.C. § 2319B. Unauthorized recording of Motion pictures in a Motion picture exhibition facility.............67

18 U.S.C. § 2320. Trafficking in counterfeit goods or services. ...........................................................................67
Asset Forfeiture Statutes • iii

Table of Contents

18 U.S.C. § 2323. Forfeiture, destruction, and restitution.....................................................................................70

18 U.S.C. § 2331. Definitions. (Terrorism)............................................................................................................70

18 U.S.C. § 2332b(g)(5). Definition. (Federal crime of terrorism)......................................................................71

18 U.S.C. § 2344. Penalties. (Trafficking in contraband cigarettes)......................................................................72

18 U.S.C. § 2428. Forfeitures. (Transportation for illegal sexual activity and related crimes) ............................72

18 U.S.C. § 2513. Confiscation of wire, oral, or electronic communication intercepting devices........................72

18 U.S.C. § 3051. Powers of special agents of Bureau of Alcohol, Tobacco, Firearms, and Explosives. ............73

18 U.S.C. § 3322. Use of grand jury information in forfeiture proceedings. ........................................................73

18 U.S.C. § 3486. Administrative subpoenas........................................................................................................74

18 U.S.C. § 3552(d). Disclosure of presentence reports.......................................................................................75

18 U.S.C. § 3554. Order of criminal forfeiture......................................................................................................76

18 U.S.C. § 3665. Firearms possessed by convicted felons. .................................................................................76

TITLE 19

19 U.S.C. § 1466. Equipment and repairs of vessels.............................................................................................77

19 U.S.C. § 1497. Penalties for failure to declare..................................................................................................78

19 U.S.C. § 1592. Penalties for fraud, gross negligence, and negligence. ............................................................79

19 U.S.C. § 1594. Seizure of conveyances............................................................................................................84

19 U.S.C. § 1595a. Importation offenses. .............................................................................................................85

19 U.S.C. § 1602. Seizure; report to customs officer.............................................................................................86

19 U.S.C. § 1603. Seizure; warrants and reports...................................................................................................86

19 U.S.C. § 1604. Seizure; prosecution.................................................................................................................86

19 U.S.C. § 1605. Seizure; custody; storage..........................................................................................................86

19 U.S.C. § 1606. Seizure; appraisement. .............................................................................................................87

19 U.S.C. § 1607. Seizure; value $500,000 or less, prohibited articles, transporting conveyances......................87

19 U.S.C. § 1608. Seizure; claims; judicial condemnation. ..................................................................................87

19 U.S.C. § 1609. Seizure; summary forfeiture and sale.......................................................................................87

19 U.S.C. § 1610. Seizure; judicial forfeiture proceedings. ..................................................................................88

19 U.S.C. § 1611. Seizure; sale unlawful. .............................................................................................................88

19 U.S.C. § 1612. Seizure; summary sale..............................................................................................................88

19 U.S.C. § 1613. Disposition of proceeds of forfeited property. .........................................................................89

19 U.S.C. § 1613b. Customs Forfeiture Fund.......................................................................................................89

19 U.S.C. § 1614. Release of seized property........................................................................................................91

19 U.S.C. § 1615. Burden of proof in forfeiture proceedings. ..............................................................................91

19 U.S.C. § 1616a. Disposition of forfeited property............................................................................................92

19 U.S.C. § 1617. Compromise of Government claims by Secretary of the Treasury. .........................................92

19 U.S.C. § 1618. Remission or mitigation of penalties........................................................................................93

19 U.S.C. § 1619. Award of compensation to informers. ......................................................................................93

19 U.S.C. § 1620. Acceptance of money by United States officers.......................................................................93

19 U.S.C. § 1621. Limitation of actions. ...............................................................................................................94

19 U.S.C. § 1703. Seizure and forfeiture of vessels..............................................................................................94

19 U.S.C. § 2609. Seizure and forfeiture. (Cultural property) .............................................................................94

TITLE 21

21 U.S.C. § 334. Seizure. ......................................................................................................................................96

21 U.S.C. § 853. Criminal forfeitures. ...................................................................................................................99

21 U.S.C. § 881. Forfeitures. (Civil)....................................................................................................................102

21 U.S.C. § 1049. Seizure and condemnation proceedings. (Egg products).......................................................105

TITLE 22

22 U.S.C. § 401. Illegal exportation of war materials. (Exportation offenses)....................................................106
iv • Asset Forfeiture Statutes

Table of Contents

22 U.S.C. § 1978. Restriction on importation of fishery or wildlife products from countries which violate 

international fishery or endangered or threatened species programs. ...............................................................106

TITLE 26

26 U.S.C. § 5872. Forfeitures. (Machine guns, destructive devices, and certain other firearms) .......................109

26 U.S.C. § 7302. Property used in violation of internal revenue laws...............................................................109

26 U.S.C. § 7303. Other property subject to forfeiture........................................................................................109

TITLE 28

28 U.S.C. § 524(c). Availability of Appropriations. (Department of Justice Assets Forfeiture Fund)................ 110

28 U.S.C. § 1355. Fine, penalty, or forfeiture. (Subject matter jurisdiction; in rem jurisdiction)....................... 113

28 U.S.C. § 1395. Fine, penalty, or forfeiture. (Venue)....................................................................................... 114

28 U.S.C. § 1651. All Writs Act........................................................................................................................... 114

28 U.S.C. § 2001. Sale of realty generally........................................................................................................... 114

28 U.S.C. § 2002. Notice of sale of realty. .......................................................................................................... 114

28 U.S.C. § 2003. Marshal’s incapacity after levy on or sale of realty................................................................ 115

28 U.S.C. § 2004. Sale of personalty generally. .................................................................................................. 115

28 U.S.C. § 2005. Appraisal of goods taken on execution. ................................................................................. 115

28 U.S.C. § 2006. Execution against revenue officer. ......................................................................................... 115

28 U.S.C. § 2007. Imprisonment for debt............................................................................................................ 115

28 U.S.C. § 2461. Mode of recovery. .................................................................................................................. 116

28 U.S.C. § 2462. Time for commencing proceedings........................................................................................ 116

28 U.S.C. § 2465. Return of property to claimant; liability for wrongful seizure; attorney fees, costs, and 

interests. ............................................................................................................................................................ 116

28 U.S.C. § 2466. Fugitive disentitlement........................................................................................................... 117

28 U.S.C. § 2467. Enforcement of foreign judgment. ......................................................................................... 117

28 U.S.C. § 2680. Exceptions. (Federal Tort Claims Act)................................................................................... 119

28 U.S.C. § 3304(b). Transfer fraudulent as to a debt to the United States........................................................ 119

28 U.S.C. § 3306(a). Remedies of the United States. .........................................................................................120

TITLE 31

31 U.S.C. § 5317. Search and forfeiture of monetary instruments......................................................................121

31 U.S.C. § 5318(k). Compliance, exemptions, and summons authority. (Bank records related to anti-money 

laundering programs)........................................................................................................................................121

31 U.S.C. § 5324. Structuring transactions to evade reporting requirement prohibited. (Involving financial 

institutions)........................................................................................................................................................122

31 U.S.C. § 5331. Reports relating to coins and currency received in nonfinancial trade or business. ..............123

31 U.S.C. § 5332. Bulk cash smuggling into or out of the United States............................................................123

31 U.S.C. § 9703. Department of the Treasury Forfeiture Fund. ........................................................................125

TITLE 42

42 U.S.C. § 1786(p). Criminal forfeiture. (Supplemental nutrition program for women, infants, and 

children) ............................................................................................................................................................130

TITLE 46

46 U.S.C. § 12118. Owners engaged primarily in manufacturing or mineral industry. ......................................131

46 U.S.C. § 31327. Forfeiture of mortgagee interest. .........................................................................................132
Asset Forfeiture Statutes • v

Table of Contents

46 U.S.C. § 55102. Transportation of merchandise.............................................................................................132

46 U.S.C. § 55105. Transportation of hazardous waste. .....................................................................................132

46 U.S.C. § 70507. Forfeitures............................................................................................................................133

TITLE 49

49 U.S.C. § 80301. Definitions............................................................................................................................134

49 U.S.C. § 80302. Prohibitions..........................................................................................................................134

49 U.S.C. § 80303. Seizure and forfeiture...........................................................................................................134

49 U.S.C. § 80304. Administrative......................................................................................................................135

49 U.S.C. § 80305. Availability of certain appropriations. .................................................................................135

49 U.S.C. § 80306. Relationship to other laws....................................................................................................135

TITLE 50

50 U.S.C. App. § 16. Offenses; punishment; forfeitures of property. (Trading with the Enemy Act)................136

50 U.S.C. § 1702. Presidential authorities. (IEEPA) ...........................................................................................136

50 U.S.C. App. § 2410(g). Violations. (Export Administration Act).................................................................137

28 C.F.R. PART 9. 

REGULATIONS GOVERNING THE REMISSION OR MITIGATION OF CIVIL AND CRIMINAL 

FORFEITURES

28 C.F.R. § 9.1. Purpose, authority, and scope.....................................................................................................138

28 C.F.R. § 9.2. Definitions. .................................................................................................................................138

28 C.F.R. § 9.3. Petitions in administrative forfeiture cases. ...............................................................................140

28 C.F.R. § 9.4. Petitions in judicial forfeiture cases. ..........................................................................................141

28 C.F.R. § 9.5. Criteria governing administrative and judicial remission and mitigation. .................................143

28 C.F.R. § 9.6. Special rules for specific petitioners...........................................................................................144

28 C.F.R. § 9.7. Terms and conditions of remission and mitigation.....................................................................144

28 C.F.R. § 9.8. Remission procedures for victims. .............................................................................................145

28 C.F.R. § 9.9. Miscellaneous provisions. ..........................................................................................................146

FEDERAL RULES OF CIVIL PROCEDURE

Rule 26. Duty to Disclose; General Provisions Governing Discovery. .................................................................148

FEDERAL RULES OF CRIMINAL PROCEDURE

Rule 1. Scope; definitions.......................................................................................................................................153

Rule 11. Pleas.........................................................................................................................................................154

Rule 32.2. Criminal Forfeiture. .............................................................................................................................156

Rule 41. Search and Seizure. .................................................................................................................................165

SUPPLEMENTAL RULES FOR CERTAIN ADMIRALTY AND MARITIME CLAIMS

Rule C. In rem actions: special provisions.............................................................................................................168

Rule E. Actions in rem and quasi in rem: general provisions. ..............................................................................169

Rule G. Forfeiture actions in rem. .........................................................................................................................171

Asset Forfeiture Statutes • 1

7 U.S.C. § 2024

TITLE 7

7 U.S.C. § 2024. Violations and enforcement.

(a) In general

Notwithstanding any other provision of this chapter, the 

Secretary may provide for the issuance or presentment for 

redemption of benefits to such person or persons, and at such 

times and in such manner, as the Secretary deems necessary 

or appropriate to protect the interests of the United States or 

to ensure enforcement of the provisions of this chapter or the 

regulations issued pursuant to this chapter.

(b) Unauthorized use, transfer, acquisition, alteration, or 

possession of benefits

(1) Subject to the provisions of paragraph (2) of this 

subsection, whoever knowingly uses, transfers, acquires, alters, 

or possesses benefits in any manner contrary to this chapter 

or the regulations issued pursuant to this chapter shall, if such 

benefits are of a value of $5,000 or more, be guilty of a felony 

and shall be fined not more than $250,000 or imprisoned for 

not more than twenty years, or both, and shall, if such benefits 

are of a value of $100 or more, but less than $5,000, or if the 

item used, transferred, acquired, altered, or possessed is a 

benefit that has a value of $100 or more, but less than $5,000, 

be guilty of a felony and shall, upon the first conviction thereof, 

be fined not more than $10,000 or imprisoned for not more than 

five years, or both, and, upon the second and any subsequent 

conviction thereof, shall be imprisoned for not less than six 

months nor more than five years and may also be fined not 

more than $10,000 or, if such benefits are of a value of less 

than $100, or if the item used, transferred, acquired, altered, 

or processed is a benefit that has a value of less than $100, 

shall be guilty of a misdemeanor, and, upon the first conviction 

thereof, shall be fined not more than $1,000 or imprisoned 

for not more than one year, or both, and upon the second and 

any subsequent conviction thereof, shall be imprisoned for 

not more than one year and may also be fined not more than 

$1,000. In addition to such penalties, any person convicted of a 

felony or misdemeanor violation under this subsection may be 

suspended by the court from participation in the supplemental 

nutrition assistance program for an additional period of up 

to eighteen months consecutive to that period of suspension 

mandated by section 2015(b)(1) of this title.

(2) In the case of any individual convicted of an offense 

under paragraph (1) of this subsection, the court may permit 

such individual to perform work approved by the court for 

the purpose of providing restitution for losses incurred by the 

United States and the State agency as a result of the offense for 

which such individual was convicted. If the court permits such 

individual to perform such work and such individual agrees 

thereto, the court shall withhold the imposition of the sentence 

on the condition that such individual perform the assigned 

work. Upon the successful completion of the assigned work 

the court may suspend such sentence.

(c) Presentation for payment or redemption of benefits that 

have been illegally received, transferred, or used

Whoever presents, or causes to be presented, benefits for 

payment or redemption of the value of $100 or more, knowing 

the same to have been received, transferred, or used in any 

manner in violation of the provisions of this chapter or the 

regulations issued pursuant to this chapter, shall be guilty of a 

felony and, upon the first conviction thereof, shall be fined not 

more than $20,000 or imprisoned for not more than five years, 

or both, and, upon the second and any subsequent conviction 

thereof, shall be imprisoned for not less than one year nor 

more than five years and may also be fined not more than 

$20,000, or, if such benefits are of a value of less than $100, 

shall be guilty of a misdemeanor and, upon the first conviction 

thereof, shall be fined not more than $1,000 or imprisoned 

for not more than one year, or both, and, upon the second and 

any subsequent conviction thereof, shall be imprisoned for 

not more than one year and may also be fined not more than 

$1,000. In addition to such penalties, any person convicted 

of a felony or misdemeanor violation under this subsection 

may be suspended by the court from participation in the 

supplemental nutrition assistance program for an additional 

period of up to eighteen months consecutive to that period 

of suspension mandated by section 2015(b)(1) of this title.

(d) Benefits as obligations of the United States

Benefits issued pursuant to this chapter shall be deemed to 

be obligations of the United States within the meaning of 

section 8 of Title 18.

(e) Forfeiture of property involved in illegal benefit 

transactions

The Secretary may subject to forfeiture and denial of property 

rights any nonfood items, moneys, negotiable instruments, 

securities, or other things of value that are furnished by 

any person in exchange for benefits, or anything of value 

obtained by use of an access device, in any manner contrary 

to this chapter or the regulations issued under this chapter. 

Any forfeiture and disposal of property forfeited under this 

subsection shall be conducted in accordance with procedures 

contained in regulations issued by the Secretary.

(f) Criminal forfeiture

(1) In general

In imposing a sentence on a person convicted of an offense 

in violation of subsection (b) or (c) of this section, a court 

shall order, in addition to any other sentence imposed under 

this section, that the person forfeit to the United States all 

property described in paragraph (2).
2 • Asset Forfeiture Statutes

7 U.S.C. § 2156 

(2) Property subject to forfeiture

All property, real and personal, used in a transaction 

or attempted transaction, to commit, or to facilitate the 

commission of, a violation (other than a misdemeanor) of 

subsection (b) or (c) of this section, or proceeds traceable to 

a violation of subsection (b) or (c) of this section, shall be 

subject to forfeiture to the United States under paragraph (1).

(3) Interest of owner

No interest in property shall be forfeited under this 

subsection as the result of any act or omission established by 

the owner of the interest to have been committed or omitted 

without the knowledge or consent of the owner.

(4) Proceeds

The proceeds from any sale of forfeited property and any 

monies forfeited under this subsection shall be used--

(A) first, to reimburse the Department of Justice for the 

costs incurred by the Department to initiate and complete 

the forfeiture proceeding;

(B) second, to reimburse the Department of Agriculture 

Office of Inspector General for any costs the Office 

incurred in the law enforcement effort resulting in the 

forfeiture;

(C) third, to reimburse any Federal or State law 

enforcement agency for any costs incurred in the law 

enforcement effort resulting in the forfeiture; and

(D) fourth, by the Secretary to carry out the approval, 

reauthorization, and compliance investigations of retail 

stores and wholesale food concerns under section 2018 

of this title.

Amended: Agricultural Act of 2014, Pub. L. 113-79, Title IV, 

§ 4030(h), Feb. 7, 2014, 128 Stat. 649.

7 U.S.C. § 2156. Animal fighting venture 

prohibition.

(a) Sponsoring or exhibiting an animal in, attending, or 

causing an individual who has not attained the age of 16 to 

attend, an animal fighting venture

(1) Sponsoring or exhibiting

Except as provided in paragraph (3), it shall be unlawful 

for any person to knowingly sponsor or exhibit an animal in 

an animal fighting venture.

(2) Attending or causing an individual who has not 

attained the age of 16 to attend

It shall be unlawful for any person to––

(A) knowingly attend an animal fighting venture; or

(B) knowingly cause an individual who has not 

attained the age of 16 to attend an animal fighting venture.

(3) Special rule for certain State

With respect to fighting ventures involving live birds in 

a State where it would not be in violation of the law, it shall 

be unlawful under this subsection for a person to sponsor 

or exhibit a bird in the fighting venture only if the person 

knew that any bird in the fighting venture was knowingly 

bought, sold, delivered, transported, or received in interstate 

or foreign commerce for the purpose of participation in the 

fighting venture.

(b) Buying, selling, delivering, possessing, training, or 

transporting animals for participation in animal fighting 

venture

It shall be unlawful for any person to knowingly sell, buy, 

possess, train, transport, deliver, or receive any animal for 

purposes of having the animal participate in an animal 

fighting venture.

(c) Use of Postal Service or other interstate instrumentality 

for promoting or furthering animal fighting venture

It shall be unlawful for any person to knowingly use the 

mail service of the United States Postal Service or any 

instrumentality of interstate commerce for commercial 

speech for purposes of advertising an animal, or an 

instrument described in subsection (e), for use in animal 

fighting venture, promoting or in any other manner furthering 

an animal fighting venture except as performed outside the 

limits of the States of the United States.

(d) Violations of State law

Notwithstanding the provisions of subsection (c) of this 

section, the activities prohibited by such subsection shall 

be unlawful with respect to fighting ventures involving live 

birds only if the fight is to take place in a State where it 

would be in violation of the laws thereof.

(e) Buying, selling, delivering, or transporting sharp 

instruments for use in animal fighting venture

It shall be unlawful for any person to knowingly sell, buy, 

transport, or deliver in interstate or foreign commerce 

a knife, a gaff, or any other sharp instrument attached, or 

designed or intended to be attached, to the leg of a bird for 

use in an animal fighting venture.

(f) Investigation of violations by Secretary; assistance 

by other Federal agencies; issuance of search warrant; 

forfeiture; costs recoverable in forfeiture or civil action

The Secretary or any other person authorized by him shall 

make such investigations as the Secretary deems necessary 
Asset Forfeiture Statutes • 3

7 U.S.C. § 2156

The conduct by any person of any activity prohibited by 

this section shall not render such person subject to the other 

sections of this chapter as a dealer, exhibitor, or otherwise.

(i) Conflict with State law

(1) In general

The provisions of this chapter shall not supersede or 

otherwise invalidate any such State, local, or municipal 

legislation or ordinance relating to animal fighting ventures 

except in case of a direct and irreconcilable conflict between 

any requirements thereunder and this chapter or any rule, 

regulation, or standard hereunder.

(2) Omitted

(j) Criminal penalties

The criminal penalties for violations of subsection (a), (b), 

(c), or (e) are provided in section 49 of Title 18.

Amended: Agricultural Act of 2014, Pub. L. 113-79, Title XII, § 

12308(b)(1), Feb. 7, 2014, 128 Stat. 990.

to determine whether any person has violated or is violating 

any provision of this section, and the Secretary may obtain 

the assistance of the Federal Bureau of Investigation, the 

Department of the Treasury, or other law enforcement 

agencies of the United States, and State and local 

governmental agencies, in the conduct of such investigations, 

under cooperative agreements with such agencies. A warrant 

to search for and seize any animal which there is probable 

cause to believe was involved in any violation of this section 

may be issued by any judge of the United States or of a State 

court of record or by a United States magistrate judge within 

the district wherein the animal sought is located. Any United 

States marshal or any person authorized under this section to 

conduct investigations may apply for and execute any such 

warrant, and any animal seized under such a warrant shall be 

held by the United States marshal or other authorized person 

pending disposition thereof by the court in accordance 

with this subsection. Necessary care including veterinary 

treatment shall be provided while the animals are so held in 

custody. Any animal involved in any violation of this section 

shall be liable to be proceeded against and forfeited to the 

United States at any time on complaint filed in any United 

States district court or other court of the United States for 

any jurisdiction in which the animal is found and upon a 

judgment of forfeiture shall be disposed of by sale for lawful 

purposes or by other humane means, as the court may direct. 

Costs incurred for care of animals seized and forfeited 

under this section shall be recoverable from the owner of 

the animals (1) if he appears in such forfeiture proceedings, 

or (2) in a separate civil action brought in the jurisdiction in 

which the owner is found, resides, or transacts business.

(g) Definitions

In this section––

(1) the term “animal fighting venture” means any event, 

in or affecting interstate or foreign commerce, that involves 

a fight conducted or to be conducted between at least 2 

animals for purposes of sport, wagering, or entertainment, 

except that the term “animal fighting venture” shall not be 

deemed to include any activity the primary purpose of which 

involves the use of one or more animals in hunting another 

animal;

(2) the term “instrumentality of interstate commerce” 

means any written, wire, radio, television or other form of 

communication in, or using a facility of, interstate commerce;

(3) the term “State” means any State of the United States, 

the District of Columbia, the Commonwealth of Puerto 

Rico, and any territory or possession of the United States;

(4) the term “animal” means any live bird, or any live 

mammal, except man.

(h) Relationship to other provisions
4 • Asset Forfeiture Statutes

8 U.S.C. § 1324(b) 

TITLE 8

8 U.S.C. § 1324(b). Seizure and forfeiture of 

conveyances, gross proceeds, and property 

traceable to such conveyances or proceeds.

(b) Seizure and forfeiture

(1) In general

Any conveyance, including any vessel, vehicle, or aircraft, that 

has been or is being used in the commission of a violation of 

subsection (a), the gross proceeds of such violation, and any 

property traceable to such conveyance or proceeds, shall be 

seized and subject to forfeiture.

(2) Applicable procedures

Seizures and forfeitures under this subsection shall be 

governed by the provisions of chapter 46 of Title 18, relating 

to civil forfeitures, including section 981(d) of such title, 

except that such duties as are imposed upon the Secretary of 

the Treasury under the customs laws described in that section 

shall be performed by such officers, agents, and other persons 

as may be designated for that purpose by the Attorney General.

(3) Prima facie evidence in determinations of violations

In determining whether a violation of subsection (a) has 

occurred, any of the following shall be prima facie evidence 

that an alien involved in the alleged violation had not received 

prior official authorization to come to, enter, or reside in the 

United States or that such alien had come to, entered, or 

remained in the United States in violation of law:

(A) Records of any judicial or administrative proceeding 

in which that alien’s status was an issue and in which it 

was determined that the alien had not received prior official 

authorization to come to, enter, or reside in the United 

States or that such alien had come to, entered, or remained 

in the United States in violation of law.

(B) Official records of the Service or of the Department 

of State showing that the alien had not received prior 

official authorization to come to, enter, or reside in the 

United States or that such alien had come to, entered, or 

remained in the United States in violation of law.

(C) Testimony, by an immigration officer having 

personal knowledge of the facts concerning that alien’s 

status, that the alien had not received prior official 

authorization to come to, enter, or reside in the United 

States or that such alien had come to, entered, or remained 

in the United States in violation of law.

Amended: Agriculture, Rural Development, Food and Drug 

Administration, and Related Agencies Appropriations Act, 2006, 

Pub. L. 109-97, Title VII, § 796, Nov. 10, 2005, 119 Stat. 2120, 

2165.
Asset Forfeiture Statutes • 5

13 U.S.C. § 305

TITLE 13

13 U.S.C. § 305. Penalties for unlawful export 

information activities.

(a) Criminal penalties.—

(1) Failure to file; submission of false or misleading 

information.—Any person who knowingly fails to file or 

knowingly submits false or misleading export information 

through the Shippers Export Declaration (SED) (or any 

successor document) or the Automated Export System (AES) 

shall be subject to a fine not to exceed $10,000 per violation 

or imprisonment for not more than 5 years, or both.

(2) Furtherance of illegal activities.—Any person who 

knowingly reports any information on or uses the SED or the 

AES to further any illegal activity shall be subject to a fine 

not to exceed $10,000 per violation or imprisonment for not 

more than 5 years, or both.

(3) Forfeiture penalties.—Any person who is convicted 

under this subsection shall, in addition to any other penalty, 

be subject to forfeiting to the United States—

(A) any of that person’s interest in, security of, claim 

against, or property or contractual rights of any kind in 

the goods or tangible items that were the subject of the 

violation;

(B) any of that person’s interest in, security of, claim 

against, or property or contractual rights of any kind in 

tangible property that was used in the export or attempt to 

export that was the subject of the violation; and

(C) any of that person’s property constituting, or derived 

from, any proceeds obtained directly or indirectly as a 

result of the violation.

(b) Civil penalties.—The Secretary (and officers of the 

Department of Commerce specifically designated by the 

Secretary) may impose a civil penalty not to exceed $10,000 

per violation on any person violating the provisions of this 

chapter or any rule, regulation, or order issued thereunder, 

except as provided in section 304. Such penalty may be in 

addition to any other penalty imposed by law.

(c) Civil penalty procedure.—

(1) In general.—Whenever a civil penalty is sought for a 

violation of this section or of section 304, the charged party is 

entitled to receive a formal complaint specifying the charges 

and, at his or her request, to contest the charges in a hearing 

before an administrative law judge. Any such hearing shall be 

conducted in accordance with sections 556 and 557 of title 5, 

United States Code.

(2) Commencement of civil actions.—If any person fails to 

pay a civil penalty imposed under this chapter, the Secretary 

may request the Attorney General to commence a civil action in 

an appropriate district court of the United States to recover the 

amount imposed (plus interest at currently prevailing rates from 

the date of the final order). No such action may be commenced 

more than 5 years after the date the order imposing the civil 

penalty becomes final. In such action, the validity, amount, and 

appropriateness of such penalty shall not be subject to review.

(3) Remission or mitigation of penalties.—The Secretary 

may remit or mitigate any penalties imposed under 

paragraph (1) if, in the Secretary’s opinion—

(A) the penalties were incurred without willful 

negligence or fraud; or

(B) other circumstances exist that justify a remission 

or mitigation.

(4) Applicable law for delegated functions.—If, pursuant 

to section 306, the Secretary delegates functions under this 

section to another agency, the provisions of law of that agency 

relating to penalty assessment, remission or mitigation of 

such penalties, collection of such penalties, and limitations 

of actions and compromise of claims, shall apply.

(5) Deposit of payments in general fund of the treasury.—

Any amount paid in satisfaction of a civil penalty imposed under 

this section or section 304 shall be deposited into the general 

fund of the Treasury and credited as miscellaneous receipts.

(d) Enforcement.—

(1) By the Secretary of Commerce.—The Secretary of 

Commerce may designate officers or employees of the Office 

of Export Enforcement to conduct investigations pursuant to 

this chapter. In conducting such investigations, those officers 

or employees may, to the extent necessary or appropriate to 

the enforcement of this chapter, exercise such authorities as are 

conferred upon them by other laws of the United States, subject 

to policies and procedures approved by the Attorney General.

(2) By the Commissioner of customs.—The Commissioner 

of Customs may designate officers or employees of the 

Customs Service to enforce the provisions of this chapter, or 

to conduct investigations pursuant to this chapter.

(e) Regulations.—The Secretary of Commerce shall 

promulgate regulations for the implementation and 

enforcement of this section.

(f) Exemption.—The criminal fines provided for in this section 

are exempt from the provisions of section 3571 of title 18, 

United States Code.

Amended: Foreign Relations Authorization Act, Fiscal Year 2003, 

Pub. L. 107-228, Div. B, Title XIV, § 1404(f) (1), Sept. 30, 2002, 

116 Stat. 1455.
6 • Asset Forfeiture Statutes

15 U.S.C. § 6 

TITLE 15

15 U.S.C. § 6. Forfeiture of property in transit.

Any property owned under any contract or by any 

combination, or pursuant to any conspiracy (and being the 

subject thereof) mentioned in section 1 of this title, and 

being in the course of transportation from one State to 

another, or to a foreign country, shall be forfeited to the 

United States, and may be seized and condemned by like 

proceedings as those provided by law for the forfeiture, 

seizure, and condemnation of property imported into the 

United States contrary to law.

Enacted: July 2, 1890, c. 647, § 6, 26 Stat. 210.

15 U.S.C. § 715f. Forfeiture of contraband oil 

shipped in violation of law; procedure.

(a) Seizure procedure; return of contraband oil

Contraband oil shipped or transported in interstate commerce 

in violation of the provisions of this chapter shall be liable 

to be proceeded against in any district court of the United 

States within the jurisdiction of which the same may be found, 

and seized for forfeiture to the United States by a process of 

libel for condemnation; but in any such case the court may 

in its discretion, and under such terms and conditions as it 

shall prescribe, order the return of such contraband oil to the 

owner thereof where undue hardship would result from such 

forfeiture. The proceedings in such cases shall conform as 

nearly as may be to proceedings in rem in admiralty, except 

that either party may demand a trial by jury of any issue of fact 

joined in any such case, and all such proceedings shall be at 

the suit of and in the name of the United States. Contraband oil 

forfeited to the United States as provided in this section shall 

be used or disposed of pursuant to such rules and regulations 

as the President shall prescribe.

(b) Certificates of clearance

No such forfeiture shall be made in the case of contraband 

oil owned by any person (other than a person shipping such 

contraband oil in violation of the provisions of this chapter) 

who has with respect to such contraband oil a certificate of 

clearance which on its face appears to be valid and to have 

been issued by a board created under authority of section 715d 

of this title, certifying that the shipment in question is not 

contraband oil, and such person had no reasonable ground for 

believing such certificate to be invalid or to have been issued 

as a result of fraud or misrepresentation of fact.

Enacted: Feb. 22, 1935, c. 18, § 7, 49 Stat. 32.

15 U.S.C. § 1177. Civil forfeiture of coins and 

currency in confiscated gambling devices.

Any gambling device transported, delivered, shipped, 

manufactured, reconditioned, repaired, sold, disposed of, 

received, possessed, or used in violation of the provisions of 

this chapter shall be seized and forfeited to the United States. 

All provisions of law relating to the seizure, summary and 

judicial forfeiture, and condemnation of vessels, vehicles, 

merchandise, and baggage for violation of the customs laws; 

the disposition of such vessels, vehicles, merchandise, and 

baggage or the proceeds from the sale thereof; the remission 

or mitigation of such forfeitures; and the compromise 

of claims and the award of compensation to informers 

in respect of such forfeitures shall apply to seizures and 

forfeitures incurred, or alleged to have been incurred, under 

the provisions of this chapter, insofar as applicable and not 

inconsistent with the provisions hereof: Provided, That 

such duties as are imposed upon the collector of customs or 

any other person with respect to the seizure and forfeiture 

of vessels, vehicles, merchandise, and baggage under the 

customs laws shall be performed with respect to seizures and 

forfeitures of gambling devices under this chapter by such 

officers, agents, or other persons as may be authorized or 

designated for that purpose by the Attorney General.

Enacted: Jan. 2, 1951, c. 1194, § 7, 64 Stat. 1135.
Asset Forfeiture Statutes • 7

16 U.S.C. § 957

TITLE 16

16 U.S.C. §§ 470gg(b) and (c). Forfeitures; 

disposition of penalties collected and items 

forfeited in cases involving archaeological 

resources excavated or removed from 

Indian lands. (Archaeological Resources 

Protection Act)

(b) Forfeitures

All archaeological resources with respect to which a violation 

of subsection (a), (b), or (c) of section 470ee of this title 

occurred and which are in the possession of any person, and 

all vehicles and equipment of any person which were used 

in connection with such violation, may be (in the discretion 

of the court or administrative law judge, as the case may be) 

subject to forfeiture to the United States upon—

(1) such person’s conviction of such violation under section 

470ee of this title,

(2) assessment of a civil penalty against such person under 

section 470ff of this title with respect to such violation, or

(3) a determination by any court that such archaeological 

resources, vehicles, or equipment were involved in such 

violation.

(c) Disposition of penalties collected and items forfeited 

in cases involving archaeological resources excavated or 

removed from Indian lands

In cases in which a violation of the prohibition contained in 

subsection (a), (b), or (c) of section 470ee of this title involve 

archaeological resources excavated or removed from Indian 

lands, the Federal land manager or the court, as the case may 

be, shall provide for the payment to the Indian or Indian tribe 

involved of all penalties collected pursuant to section 470ff 

of this title and for the transfer to such Indian or Indian tribe 

of all items forfeited under this section.

Enacted: Archaeological Resources Protection Act of 1979, 

Pub. L. 96-95, § 8, Oct. 31, 1979, 93 Stat. 721, 726.

16 U.S.C. § 916f. Violations; fines and 

penalties. (Whaling Convention Act)

Except as to violations defined in clause 3 of subsection (a) of 

section 916c of this title, any person violating any provision 

of the convention, or of any regulation of the Commission, 

or of this subchapter, or of any regulation of the Secretary 

of Commerce upon conviction, shall be fined not more than 

$10,000 or be imprisoned not more than one year, or both. 

In addition the court may prohibit such person from whaling 

for such period of time as it may determine, and may order 

forfeited, in whole or in part, the whales taken by such person 

in whaling during the season, or the whale products derived 

therefrom or the monetary value thereof. Such forfeited 

whales or whale products shall be disposed of in accordance 

with the direction of the court.

Amended: 1970 Reorg. Plan No. 4, 35 F.R. 15627, eff. Oct. 3, 

1970, 84 Stat. 2090.

16 U.S.C. § 957. Violations; fines and 

forfeitures; application of related laws. 

(Tuna Conventions)

(a) It shall be unlawful for any master or other person in 

charge of a fishing vessel of the United States to engage in 

fishing in violation of any regulation adopted pursuant to 

section 955(c) of this title or for any person knowingly to 

ship, transport, purchase, sell, offer for sale, import, export, 

or have in custody, possession, or control any fish taken or 

retained in violation of such regulations.

(b) It shall be unlawful for the master or any person in charge 

of any fishing vessel of the United States or any person on 

board such vessel to fail to make, keep, or furnish any catch 

returns, statistical records, or other reports as are required 

by regulations adopted pursuant to this chapter to be made, 

kept, or furnished; or to fail to stop upon being hailed by 

a duly authorized official of the United States; or to refuse 

to permit the duly authorized officials of the United States 

or authorized officials of the commissions to board such 

vessel or inspect its catch, equipment, books, documents, 

records, or other articles or question the persons on board 

in accordance with the provisions of this chapter, or the 

convention, as the case may be.

(c) It shall be unlawful for any person to import, in violation 

of any regulation adopted pursuant to section 955(c) of this 

title, from any country, any fish in any form of those species 

subject to regulation pursuant to a recommendation of the 

commission, or any tuna in any form not under regulation 

but under investigation by the commission, during the 

period such fish have been denied entry in accordance with 

the provisions of section 955(c) of this title. In the case of 

any fish as described in this subsection offered for entry into 

the United States, the Secretary of Commerce shall require 

proof satisfactory to him that such fish is not ineligible for 

such entry under the terms of section 955(c) of this title.

(d) Any person violating any provisions of subsection (a) 

of this section shall be fined not more than $25,000, and for 

a subsequent violation of any provisions of said subsection 

(a) shall be fined not more than $50,000.
8 • Asset Forfeiture Statutes

16 U.S.C. § 971e 

(e) Any person violating any provision of subsection (b) 

of this section shall be fined not more than $1,000, and for 

a subsequent violation of any provision of subsection (b) 

shall be fined not more than $5,000.

(f) Any person violating any provision of subsection (c) of 

this section shall be fined not more than $100,000.

(g) All fish taken or retained in violation of subsection (a) of 

this section, or the monetary value thereof, may be forfeited.

(h) All provisions of law relating to the seizure, judicial 

forfeiture, and condemnation of a cargo for violation of the 

customs laws, the disposition of such cargo or the proceeds 

from the sale thereof, and the remission or mitigation of 

such forfeitures shall apply to seizures and forfeitures 

incurred, or alleged to have been incurred, under the 

provisions of this chapter, insofar as such provisions of 

law are applicable and not inconsistent with the provisions 

of this chapter.

Amended: 1970 Reorg. Plan No. 4, 35 F.R. 15627, eff. Oct. 3, 

1970, 84 Stat. 2090.

16 U.S.C. § 971e. Violations. (Atlantic Tunas 

Convention)

(a) In general

It shall be unlawful—

(1) for any person in charge of a fishing vessel or any 

fishing vessel subject to the jurisdiction of the United States 

to engage in fishing in violation of any regulation adopted 

pursuant to section 971d of this title; or

(2) for any person subject to the jurisdiction of the 

United States to ship, transport, purchase, sell, offer for 

sale, import, export, or have in custody, possession, or 

control any fish which he knows, or should have known, 

were taken or retained contrary to the recommendations 

of the Commission made pursuant to article VIII of the 

Convention and adopted as regulations pursuant to section 

971d of this title, without regard to the citizenship of the 

person or vessel which took the fish.

(b) Failure to furnish returns, records, or reports

It shall be unlawful for the master or any person in charge 

of any fishing vessel subject to the jurisdiction of the 

United States to fail to make, keep, or furnish any catch 

returns, statistical records, or other reports as are required 

by regulations adopted pursuant to this chapter to be made, 

kept, or furnished by such master or person.

(c) Refusal of request to board and inspect vessel

It shall be unlawful for the master or any person in charge 

of any fishing vessel subject to the jurisdiction of the 

United States to refuse to permit any person authorized to 

enforce the provisions of this chapter and any regulations 

adopted pursuant thereto, to board such vessel and inspect 

its catch, equipment, books, documents, records, or other 

articles or question the persons onboard in accordance with 

the provisions of this chapter, or the Convention, as the 

case may be, or to obstruct such officials in the execution 

of such duties.

(d) Importation of ineligible species or species under 

investigation

It shall be unlawful for any person to import, in violation 

of any regulation adopted pursuant to section 971d(c) 

or (d) of this title, from any country, any fish in any 

form of those species subject to regulation pursuant to a 

recommendation of the Commission, or any fish in any 

form not under regulation but under investigation by the 

Commission, during the period such fish have been denied 

entry in accordance with the provisions of section 971d(c) 

or (d) of this title. In the case of any fish as described in 

this subsection offered for entry in the United States, the 

Secretary shall require proof satisfactory to him that such 

fish is not ineligible for such entry under the terms of section 

971d(c) or (d) of this title.

(e) Sanctions

The civil penalty and permit sanctions of section 1858 of 

this title are hereby made applicable to violations of this 

section as if they were violations of section 1857 of this title.

(f) Forfeiture

All fish taken or retained in violation of subsection (a) of 

this section, or the monetary value thereof, may be forfeited.

(g) Applicability of other laws

All provisions of law relating to the seizure, judicial 

forfeiture, and condemnation of a cargo for violation of the 

customs laws, the disposition of such cargo or the proceeds 

from the sale thereof, and the remission or mitigation of 

such forfeitures shall apply to seizures and forfeitures 

incurred, or alleged to have been incurred, under the 

provisions of this chapter, insofar as such provisions of 

law are applicable and not inconsistent with the provisions 

of this chapter.

Amended: Governing International Fishery Agreement With 

Poland, Pub. L. 105- 384, Title II, § 202(b) (1) (F), Nov. 13, 

1998, 112 Stat. 3451, 3453.
Asset Forfeiture Statutes • 9

16 U.S.C. § 1376

16 U.S.C. § 972f. Prohibited acts. (Eastern 

Pacific tuna fishing)

(a) Unlawful acts

It is unlawful for any person subject to the jurisdiction of the 

United States—

(1) to engage in fishing for a designated species of tuna 

within the Agreement Area unless issued a license under the 

Agreement authorizing such fishing;

(2) to engage in fishing for a designated species of tuna 

within the Agreement area in contravention of regulations 

promulgated by the Secretary of Commerce under the 

Agreement;

(3) knowingly to ship, transport, purchase, sell, offer for 

sale, export, or have in custody, possession, or control any 

designated species of tuna taken or retained in violation of 

regulations issued under section 972e of this title;

(4) to fail to make, keep, or furnish any catch return, 

statistical record, or other report required by regulations issued 

under section 972e of this title;

(5) being a person in charge of a vessel of the United States, 

to fail to stop upon being hailed by an authorized official of 

the United States, or to refuse to permit officials of the United 

States to board the vessel or inspect its catch, equipment, 

books, documents, records, or other articles, or to question 

individuals on board; or

(6) to import from any country, in violation of any 

regulation issued under section 972e of this title, any 

designated species of tuna.

(b) Penalties

Any person who is convicted of violating—

(1) subsection (a)(1), (a)(2), or (a)(3) of this section shall 

be fined or assessed a civil penalty not more than $25,000, 

and for a subsequent violation shall be fined or assessed a 

civil penalty not more than $50,000;

(2) subsection (a)(4) or (a)(5) of this section shall be fined 

or assessed a civil penalty not more than $5,000, and for a 

subsequent violation shall be fined or assessed a civil penalty 

not more than $5,000; or

(3) subsection (a)(6) of this section shall be fined or 

assessed a civil penalty not more than $100,000.

(c) Forfeiture

All designated species of tuna taken or retained in violation 

of subsection (a)(1), (2), (3), or (6) of this section, or the 

monetary value thereof, is subject to forfeiture.

(d) Application of laws relating to seizures and forfeitures

All provisions of law relating to the seizure, judicial forfeiture, 

and condemnation of a cargo for violation of the customs laws, 

the disposition of such cargo or the proceeds from the sale 

thereof, and the remission or mitigation of such forfeitures 

shall apply to seizures and forfeitures incurred, or alleged 

to have been incurred, under this chapter, insofar as such 

provisions of law are applicable and not inconsistent with the 

provisions of this chapter.

Enacted: Eastern Pacific Tuna Licensing Act of 1984, 

Pub. L. 98-445, § 8, Oct. 4, 1984, 98 Stat. 1715, 1717.

16 U.S.C. § 1171. Seizure and forfeiture of 

vessels. (North Pacific fur seals)

(a) Every vessel subject to the jurisdiction of the United 

States that is employed in any manner in connection with a 

violation of the provision of this chapter, including its tackle, 

apparel, furniture, appurtenances, cargo, and stores shall be 

subject to forfeiture; and all fur seals, or parts thereof, taken 

or retained in violation of this chapter, or the monetary value 

thereof, shall be forfeited.

(b) All provisions of law relating to the seizure, summary and 

judicial forfeiture, and condemnation of a vessel, including 

its tackle, apparel, furniture, appurtenances, cargo, and stores 

for violation of the customs laws, the disposition of such 

vessel, including its tackle, apparel, furniture, appurtenances, 

cargo, and stores or the proceeds from the sale thereof, and 

the remission or mitigation of such forfeitures shall apply 

to seizures and forfeitures incurred, or alleged to have been 

incurred, under the provisions of this chapter, insofar as such 

provisions of law are applicable and not inconsistent with the 

provisions of this chapter.

Amended: Fur Seal Act Amendments of 1983, Pub. L. 98-129, 

§ 2, Oct. 14, 1983, 97 Stat. 835, 844.

16 U.S.C. § 1376. Seizure and forfeiture of 

cargo. (Marine Mammal Protection Act)

(a) Application of consistent provisions

Any vessel or other conveyance subject to the jurisdiction 

of the United States that is employed in any manner in the 

unlawful taking of any marine mammal shall have its entire 

cargo or the monetary value thereof subject to seizure and 

forfeiture. All provisions of law relating to the seizure, 

judicial forfeiture, and condemnation of cargo for violation 

of the customs laws, the disposition of such cargo, and the 

proceeds from the sale thereof, and the remission or mitigation 

of any such forfeiture, shall apply with respect to the cargo 

of any vessel or other conveyance seized in connection with 

the unlawful taking of a marine mammal insofar as such 
10 • Asset Forfeiture Statutes

16 U.S.C. § 1377 

provisions of law are applicable and not inconsistent with the 

provisions of this subchapter.

(b) Penalties

Any vessel subject to the jurisdiction of the United States 

that is employed in any manner in the unlawful taking of 

any marine mammal shall be liable for a civil penalty of not 

more than $25,000. Such penalty shall be assessed by the 

district court of the United States having jurisdiction over 

the vessel. Clearance of a vessel against which a penalty 

has been assessed, from a port of the United States, may be 

withheld until such penalty is paid, or until a bond or otherwise 

satisfactory surety is posted. Such penalty shall constitute 

a maritime lien on such vessel which may be recovered by 

action in rem in the district court of the United States having 

jurisdiction over the vessel.

(c) Reward for information leading to conviction

Upon the recommendation of the Secretary, the Secretary of 

the Treasury is authorized to pay an amount equal to one-half 

of the fine incurred but not to exceed $2,500 to any person 

who furnishes information which leads to a conviction for 

a violation of this subchapter. Any officer or employee of 

the United States or of any State or local government who 

furnishes information or renders service in the performance 

of his official duties shall not be eligible for payment under 

this section.

Enacted: Marine Mammal Protection Act of 1972, Pub. L. 

92- 522, Title I, § 106, Oct. 21, 1972, 86 Stat. 1036.

16 U.S.C. § 1377. Enforcement. (Marine 

Mammal Protection Act)

(a) Utilization of personnel

Except as otherwise provided in this subchapter, the Secretary 

shall enforce the provisions of this subchapter. The Secretary 

may utilize, by agreement, the personnel, services, and 

facilities of any other Federal agency for purposes of enforcing 

this subchapter.

(b) State officers and employees

The Secretary may also designate officers and employees of 

any State or of any possession of the United States to enforce 

the provisions of this subchapter. When so designated, such 

officers and employees are authorized to function as Federal 

law enforcement agents for these purposes, but they shall not 

be held and considered as employees of the United States for 

the purposes of any laws administered by the Director of the 

Office of Personnel Management.

(c) Warrants and other process for enforcement

The judges of the district courts of the United States and 

the United States magistrates may, within their respective 

jurisdictions, upon proper oath or affirmation showing 

probably cause, issue such warrants or other process, including 

warrants or other process issued in admiralty proceedings 

in United States district courts, as may be required for 

enforcement of this subchapter and any regulations issued 

thereunder.

(d) Execution of process; arrest; search; seizure

Any person authorized by the Secretary to enforce this 

subchapter may execute any warrant or process issued by any 

officer or court of competent jurisdiction for the enforcement 

of this subchapter. Such person so authorized may, in addition 

to any other authority conferred by law—

(1) with or without warrant or other process, arrest any 

person committing in his presence or view a violation of this 

subchapter or the regulations issued thereunder;

(2) with a warrant or other process, or without a warrant 

if he has reasonable cause to believe that a vessel, other 

conveyance, or container subject to the jurisdiction of the 

United States or any person on board is in violation of 

any provision of this subchapter or the regulations issued 

thereunder, search such vessel or conveyance and arrest such 

person;

(3) seize the cargo of any vessel or other conveyance 

subject to the jurisdiction of the United States used or 

employed contrary to the provisions of this subchapter or the 

regulations issued hereunder or which reasonably appears to 

have been so used or employed; and

(4) seize, whenever and wherever found, all marine 

mammals and marine mammal products taken or retained 

in violation of this subchapter or the regulations issued 

thereunder and shall dispose of them in accordance with 

regulations prescribed by the Secretary.

(e) Disposition of seized cargo

(1) Whenever any cargo or marine mammal or marine 

mammal product is seized pursuant to this section, the 

Secretary shall expedite any proceedings commenced under 

section 1375(a) or (b) of this title. All marine mammals or 

marine mammal products or other cargo so seized shall be 

held by any person authorized by the Secretary pending 

disposition of such proceedings. The owner or consignee of 

any such marine mammal or marine mammal product or other 

cargo so seized shall, as soon as practicable following such 

seizure, be notified of that fact in accordance with regulations 

established by the Secretary.

(2) The Secretary may, with respect to any proceeding 

under section 1375(a) or (b) of this title, in lieu of holding 

any marine mammal or marine mammal product or other 
Asset Forfeiture Statutes • 11

16 U.S.C. § 1540

cargo, permit the person concerned to post bond or other 

surety satisfactory to the Secretary pending the disposition 

of such proceeding.

(3)(A) Upon the assessment of a penalty pursuant to section 

1375(a) of this title, all marine mammals and marine mammal 

products or other cargo seized in connection therewith may 

be proceeded against in any court of competent jurisdiction 

and forfeited to the Secretary for disposition by him in such 

manner as he deems appropriate.

(B) Upon conviction for violation of section 1375(b) 

of this title, all marine mammals and marine mammal 

products seized in connection therewith shall be forfeited 

to the Secretary for disposition by him in such manner 

as he deems appropriate. Any other property or item so 

seized may, at the discretion of the court, be forfeited to 

the United States or otherwise disposed of.

(4) If with respect to any marine mammal or marine 

mammal product or other cargo so seized—

(A) a civil penalty is assessed under section 1375(a) of 

this title and no judicial action is commenced to obtain the 

forfeiture of such mammal or product within thirty days 

after such assessment, such marine mammal or marine 

mammal product or other cargo shall be immediately 

returned to the owner or the consignee; or

(B) no conviction results from an alleged violation 

of section 1375(b) of this title, such marine mammal or 

marine mammal product or other cargo shall immediately 

be returned to the owner or consignee if the Secretary does 

not, with thirty days after the final disposition of the case 

involving such alleged violation, commence proceedings 

for the assessment of a civil penalty under section 1375(a) 

of this title.

Amended: Magnuson-Stevens Fishery Conservation and 

Management Reauthorization Act of 2006, Pub. L. 109-479, 

Title IX, § 902(c), Jan. 12, 2007, 120 Stat. 3665.

16 U.S.C. § 1540. Penalties and enforcement. 

(Endangered species)

(a) Civil penalties

(1) Any person who knowingly violates, and any person 

engaged in business as an importer or exporter of fish, wildlife, 

or plants who violates, any provision of this chapter, or any 

provision of any permit or certificate issued hereunder, or 

of any regulation issued in order to implement subsection 

(a)(1) (A), (B), (C), (D), (E), or (F), (a)(2)(A), (B), (C), or 

(D), (c), (d) (other than regulation relating to recordkeeping 

or filing of reports), (f) or (g) of section 1538 of this title, 

may be assessed a civil penalty by the Secretary of not more 

than $25,000 for each violation. Any person who knowingly 

violates, and any person engaged in business as an importer or 

exporter of fish, wildlife, or plants who violates, any provision 

of any other regulation issued under this chapter may be 

assessed a civil penalty by the Secretary of not more than 

$12,000 for each such violation. Any person who otherwise 

violates any provision of this chapter, or any regulation, 

permit, or certificate issued hereunder, may be assessed a 

civil penalty by the Secretary of not more than $500 for 

each such violation. No penalty may be assessed under this 

subsection unless such person is given notice and opportunity 

for a hearing with respect to such violation. Each violation 

shall be a separate offense. Any such civil penalty may be 

remitted or mitigated by the Secretary. Upon any failure to 

pay a penalty assessed under this subsection, the Secretary 

may request the Attorney General to institute a civil action in 

a district court of the United States for any district in which 

such person is found, resides, or transacts business to collect 

the penalty and such court shall have jurisdiction to hear and 

decide any such action. The court shall hear such action on 

the record made before the Secretary and shall sustain his 

action if it is supported by substantial evidence on the record 

considered as a whole.

(2) Hearings held during proceedings for the assessment of 

civil penalties authorized by paragraph (1) of this subsection 

shall be conducted in accordance with section 554 of Title 5. 

The Secretary may issue subpoenas for the attendance and 

testimony of witnesses and the production of relevant papers, 

books, and documents, and administer oaths. Witnesses 

summoned shall be paid the same fees and mileage that are 

paid to witnesses in the courts of the United States. In case 

of contumacy or refusal to obey a subpoena served upon any 

person pursuant to this paragraph, the district court of the 

United States for any district in which such person is found or 

resides or transacts business, upon application by the United 

States and after notice to such person, shall have jurisdiction 

to issue an order requiring such person to appear and give 

testimony before the Secretary or to appear and produce 

documents before the Secretary, or both, and any failure to 

obey such order of the court may be punished by such court 

as a contempt thereof.

(3) Notwithstanding any other provision of this chapter, 

no civil penalty shall be imposed if it can be shown by a 

preponderance of the evidence that the defendant committed 

an act based on a good faith belief that he was acting to 

protect himself or herself, a member of his or her family, or 

any other individual from bodily harm, from any endangered 

or threatened species.

(b) Criminal violations

(1) Any person who knowingly violates any provision of 

this chapter, of any permit or certificate issued hereunder, or 

of any regulation issued in order to implement subsection 
12 • Asset Forfeiture Statutes

16 U.S.C. § 1540 

(a) (1) (A), (B), (C), (D), (E), or (F); (a)(2)(A), (B), (C), or 

(D), (c), (d) (other than a regulation relating to recordkeeping, 

or filing of reports), (f), or (g) of section 1538 of this title 

shall, upon conviction, be fined not more than $50,000 or 

imprisoned for not more than one year, or both. Any person 

who knowingly violates any provision of any other regulation 

issued under this chapter shall, upon conviction, be fined 

not more than $25,000 or imprisoned for not more than six 

months, or both.

(2) The head of any Federal agency which has issued a 

lease, license, permit, or other agreement authorizing a person 

to import or export fish, wildlife, or plants, or to operate a 

quarantine station for imported wildlife, or authorizing the 

use of Federal lands, including grazing of domestic livestock, 

to any person who is convicted of a criminal violation of 

this chapter or any regulation, permit, or certificate issued 

hereunder may immediately modify, suspend, or revoke 

each lease, license, permit or other agreement. The Secretary 

shall also suspend for a period of up to one year, or cancel, 

any Federal hunting or fishing permits or stamps issued 

to any person who is convicted of a criminal violation of 

any provision of this chapter or any regulation, permit, or 

certificate issued hereunder. The United States shall not be 

liable for the payments of any compensation, reimbursement, 

or damages in connection with the modification, suspension, 

or revocation of any leases, licenses, permits, stamps, or other 

agreements pursuant to this section.

(3) Notwithstanding any other provision of this chapter, it 

shall be a defense to prosecution under this subsection if the 

defendant committed the offense based on a good faith belief 

that he was acting to protect himself or herself, a member of 

his or her family, or any other individual, from bodily harm 

from any endangered or threatened species.

(c) District court jurisdiction

The several district courts of the United States, including 

the courts enumerated in section 460 of Title 28, shall have 

jurisdiction over any actions arising under this chapter. For 

the purpose of this chapter, American Samoa shall be included 

within the judicial district of the District Court of the United 

States for the District of Hawaii.

(d) Rewards and incidental expenses

The Secretary or the Secretary of the Treasury shall pay, 

from sums received as penalties, fines, or forfeitures of 

property for any violation of this chapter or any regulation 

issued hereunder (1) a reward to any person who furnishes 

information which leads to an arrest, a criminal conviction, 

civil penalty assessment, or forfeiture of property for any 

violation of this chapter or any regulation issued hereunder, 

and (2) the reasonable and necessary costs incurred by any 

person in providing temporary care for any fish, wildlife, 

or plant pending the disposition of any civil or criminal 

proceeding alleging a violation of this chapter with respect 

to that fish, wildlife, or plant. The amount of the reward, if 

any, is to be designated by the Secretary or the Secretary of 

the Treasury, as appropriate. Any officer or employee of the 

United States or any State or local government who furnishes 

information or renders service in the performance of his 

official duties is ineligible for payment under this subsection. 

Whenever the balance of sums received under this section 

and section 3375(d) of this title, as penalties or fines, or from 

forfeitures of property, exceed $500,000, the Secretary of 

the Treasury shall deposit an amount equal to such excess 

balance in the cooperative endangered species conservation 

fund established under section 1535(i) of this title.

(e) Enforcement

(1) The provisions of this chapter and any regulations 

or permits issued pursuant thereto shall be enforced by the 

Secretary, the Secretary of the Treasury, or the Secretary of the 

Department in which the Coast Guard is operating, or all such 

Secretaries. Each such Secretary may utilize by agreement, 

with or without reimbursement, the personnel, services, and 

facilities of any other Federal agency or any State agency for 

purposes of enforcing this chapter.

(2) The judges of the district courts of the United States 

and the United States magistrate judges may, within their 

respective jurisdictions, upon proper oath or affirmation 

showing probable cause, issue such warrants or other process 

as may be required for enforcement of this chapter and any 

regulation issued thereunder.

(3) Any person authorized by the Secretary, the Secretary 

of the Treasury, or the Secretary of the Department in which 

the Coast Guard is operating, to enforce this chapter may 

detain for inspection and inspect any package, crate, or other 

container, including its contents, and all accompanying 

documents, upon importation or exportation. Such person 

may make arrests without a warrant for any violation of this 

chapter if he has reasonable grounds to believe that the person 

to be arrested is committing the violation in his presence 

or view, and may execute and serve any arrest warrant, 

search warrant, or other warrant or civil or criminal process 

issued by any officer or court of competent jurisdiction for 

enforcement of this chapter. Such person so authorized may 

search and seize, with or without a warrant, as authorized by 

law. Any fish, wildlife, property, or item so seized shall be 

held by any person authorized by the Secretary, the Secretary 

of the Treasury, or the Secretary of the Department in which 

the Coast Guard is operating pending disposition of civil or 

criminal proceedings, or the institution of an action in rem 

for forfeiture of such fish, wildlife, property, or item pursuant 

to paragraph (4) of this subsection; except that the Secretary 

may, in lieu of holding such fish, wildlife, property, or item, 

permit the owner or consignee to post a bond or other surety 

satisfactory to the Secretary, but upon forfeiture of any such 

property to the United States, or the abandonment or waiver of 

any claim to any such property, it shall be disposed of (other 
Asset Forfeiture Statutes • 13

16 U.S.C. § 1540

than by sale to the general public) by the Secretary in such a 

manner, consistent with the purposes of this chapter, as the 

Secretary shall by regulation prescribe.

(4)(A) All fish or wildlife or plants taken, possessed, sold, 

purchased, offered for sale or purchase, transported, delivered, 

received, carried, shipped, exported, or imported contrary to 

the provisions of this chapter, any regulation made pursuant 

thereto, or any permit or certificate issued hereunder shall be 

subject to forfeiture to the United States.

(B) All guns, traps, nets, and other equipment, vessels, 

vehicles, aircraft, and other means of transportation used 

to aid the taking, possessing, selling, purchasing, offering 

for sale or purchase, transporting, delivering, receiving, 

carrying, shipping, exporting, or importing of any fish or 

wildlife or plants in violation of this chapter, any regulation 

made pursuant thereto, or any permit or certificate issued 

thereunder shall be subject to forfeiture to the United 

States upon conviction of a criminal violation pursuant to 

subsection (b)(1) of this section.

(5) All provisions of law relating to the seizure, forfeiture, 

and condemnation of a vessel for violation of the customs 

laws, the disposition of such vessel or the proceeds from the 

sale thereof, and the remission or mitigation of such forfeiture, 

shall apply to the seizures and forfeitures incurred, or alleged 

to have been incurred, under the provisions of this chapter, 

insofar as such provisions of law are applicable and not 

inconsistent with the provisions of this chapter; except that 

all powers, rights, and duties conferred or imposed by the 

customs laws upon any officer or employee of the Treasury 

Department shall, for the purposes of this chapter, be exercised 

or performed by the Secretary or by such persons as he may 

designate.

(6) The Attorney General of the United States may seek 

to enjoin any person who is alleged to be in violation of any 

provision of this chapter or regulation issued under authority 

thereof.

(f) Regulations

The Secretary, the Secretary of the Treasury, and the Secretary 

of the Department in which the Coast Guard is operating, 

are authorized to promulgate such regulations as may be 

appropriate to enforce this chapter, and charge reasonable 

fees for expenses to the Government connected with permits 

or certificates authorized by this chapter including processing 

applications and reasonable inspections, and with the transfer, 

board, handling, or storage of fish or wildlife or plants and 

evidentiary items seized and forfeited under this chapter. 

All such fees collected pursuant to this subsection shall be 

deposited in the Treasury to the credit of the appropriation 

which is current and chargeable for the cost of furnishing 

the services. Appropriated funds may be expended pending 

reimbursement from parties in interest.

(g) Citizen suits

(1) Except as provided in paragraph (2) of this subsection 

any person may commence a civil suit on his own behalf—

(A) to enjoin any person, including the United States 

and any other governmental instrumentality or agency 

(to the extent permitted by the eleventh amendment to 

the Constitution), who is alleged to be in violation of any 

provision of this chapter or regulation issued under the 

authority thereof; or

(B) to compel the Secretary to apply, pursuant to 

section 1535(g)(2)(B)(ii) of this title, the prohibitions 

set forth in or authorized pursuant to section 1533(d) or 

1538(a)(1) (B) of this title with respect to the taking of any 

resident endangered species or threatened species within 

any State; or

(C) against the Secretary where there is alleged a 

failure of the Secretary to perform any act or duty under 

section 1533 of this title which is not discretionary with 

the Secretary.

The district courts shall have jurisdiction, without regard to 

the amount in controversy or the citizenship of the parties, 

to enforce any such provision or regulation, or to order the 

Secretary to perform such act or duty, as the case may be. In 

any civil suit commenced under subparagraph (B) the district 

court shall compel the Secretary to apply the prohibition 

sought if the court finds that the allegation that an emergency 

exists is supported by substantial evidence.

(2)(A) No action may be commenced under subparagraph 

(1)(A) of this section—

(i) prior to sixty days after written notice of the 

violation has been given to the Secretary, and to any 

alleged violator of any such provision or regulation;

(ii) if the Secretary has commenced action to impose 

a penalty pursuant to subsection (a) of this section; or

(iii) if the United States has commenced and is 

diligently prosecuting a criminal action in a court of 

the United States or a State to redress a violation of 

any such provision or regulation.

(B) No action may be commenced under subparagraph 

(1)(B) of this section—

(i) prior to sixty days after written notice has been 

given to the Secretary setting forth the reasons why 

an emergency is thought to exist with respect to an 

endangered species or a threatened species in the State 

concerned; or
14 • Asset Forfeiture Statutes

16 U.S.C. § 1860 

16 U.S.C. § 1860. Civil forfeitures. (National 

Fishery Management Program)

(a) In general

Any fishing vessel (including its fishing gear, furniture, 

appurtenances, stores, and cargo) used, and any fish (or the 

fair market value thereof) taken or retained, in any manner, 

in connection with or as a result of the commission of any 

act prohibited by section 1857 of this title (other than any act 

for which the issuance of a citation under section 1861(c) of 

this title is sufficient sanction) shall be subject to forfeiture to 

the United States. All or part of such vessel may, and all such 

fish (or the fair market value thereof) shall, be forfeited to the 

United States pursuant to a civil proceeding under this section.

(b) Jurisdiction of district courts

Any district court of the United States which has jurisdiction 

under section 1861(d) of this title shall have jurisdiction, 

upon application by the Attorney General on behalf of 

the United States, to order any forfeiture authorized under 

subsection (a) of this section and any action provided for 

under subsection (d) of this section.

(c) Judgment

If a judgment is entered for the United States in a civil 

forfeiture proceeding under this section, the Attorney 

General may seize any property or other interest declared 

forfeited to the United States, which has not previously been 

seized pursuant to this chapter or for which security has not 

previously been obtained under subsection (d) of this section. 

The provisions of the customs laws relating to—

(1) the seizure, forfeiture, and condemnation of property 

for violation of the customs law;

(2) the disposition of such property or the proceeds from 

the sale thereof; and

(3) the remission or mitigation of any such forfeiture;

shall apply to seizures and forfeitures incurred, or alleged 

to have been incurred, under the provisions of this chapter, 

unless such provisions are inconsistent with the purposes, 

policy, and provisions of this chapter. The duties and powers 

imposed upon the Commissioner of Customs or other 

persons under such provisions shall, with respect to this 

chapter, be performed by officers or other persons designated 

for such purpose by the Secretary.

(d) Procedure

(1) Any officer authorized to serve any process in rem 

which is issued by a court having jurisdiction under section 

1861(d) of this title shall—

(A) stay the execution of such process; or

(ii) if the Secretary has commenced and is diligently 

prosecuting action under section 1535(g)(2)(B)(ii) of this 

title to determine whether any such emergency exists.

(C) No action may be commenced under 

subparagraph (1)(C) of this section prior to sixty days 

after written notice has been given to the Secretary; except 

that such action may be brought immediately after such 

notification in the case of an action under this section 

respecting an emergency posing a significant risk to the 

well-being of any species of fish or wildlife or plants.

(3)(A) Any suit under this subsection may be brought in 

the judicial district in which the violation occurs.

(B) In any such suit under this subsection in which the 

United States is not a party, the Attorney General, at the 

request of the Secretary, may intervene on behalf of the 

United States as a matter of right.

(4) The court, in issuing any final order in any suit brought 

pursuant to paragraph (1) of this subsection, may award costs 

of litigation (including reasonable attorney and expert witness 

fees) to any party, whenever the court determines such award 

is appropriate.

(5) The injunctive relief provided by this subsection 

shall not restrict any right which any person (or class of 

persons) may have under any statute or common law to seek 

enforcement of any standard or limitation or to seek any other 

relief (including relief against the Secretary or a State agency).

(h) Coordination with other laws

The Secretary of Agriculture and the Secretary shall provide 

for appropriate coordination of the administration of this 

chapter with the administration of the animal quarantine laws 

(as defined in section 136a(f) of Title 21) and section 306 of 

the Tariff Act of 1930 (19 U.S.C. § 1306). Nothing in this 

chapter or any amendment made by this Act shall be construed 

as superseding or limiting in any manner the functions of 

the Secretary of Agriculture under any other law relating to 

prohibited or restricted importations or possession of animals 

and other articles and no proceeding or determination under 

this chapter shall preclude any proceeding or be considered 

determinative of any issue of fact or law in any proceeding 

under any Act administered by the Secretary of Agriculture. 

Nothing in this chapter shall be construed as superseding or 

limiting in any manner the functions and responsibilities of 

the Secretary of the Treasury under the Tariff Act of 1930 

[19 U.S.C.A. § 1202 et seq.], including, without limitation, 

section 527 of that Act (19 U.S.C. § 1527), relating to the 

importation of wildlife taken, killed, possessed, or exported 

to the United States in violation of the laws or regulations of 

a foreign country.

Amended: Farm Security and Rural Investment Act of 2002, 

Pub. L. 107-171, Title X, § 10418(b)(3), May 13, 2002, 

116 Stat. 134, 508.
Asset Forfeiture Statutes • 15

16 U.S.C. § 3606

(B) discharge any fish seized pursuant to such process;

upon the receipt of a satisfactory bond or other security 

from any person claiming such property. Such bond or other 

security shall be conditioned upon such person (i) delivering 

such property to the appropriate court upon order thereof, 

without any impairment of its value, or (ii) paying the 

monetary value of such property pursuant to an order of such 

court. Judgment shall be recoverable on such bond or other 

security against both the principal and any sureties in the 

event that any condition thereof is breached, as determined 

by such court. Nothing in this paragraph may be construed 

to require the Secretary, except in the Secretary’s discretion 

or pursuant to the order of a court under section 1861(d) of 

this title, to release on bond any seized fish or other property 

or the proceeds from the sale thereof.

(2) Any fish seized pursuant to this chapter may be sold, 

subject to the approval and direction of the appropriate 

court, for not less than the fair market value thereof. The 

proceeds of any such sale shall be deposited with such court 

pending the disposition of the matter involved.

(e) Rebuttable presumptions

(1) For purposes of this section, it shall be a rebuttable 

presumption that all fish found on board a fishing vessel 

which is seized in connection with an act prohibited by 

section 1857 of this title were taken or retained in violation 

of this chapter.

(2) For purposes of this chapter, it shall be a rebuttable 

presumption that any fish of a species which spawns in 

fresh or estuarine waters and migrates to ocean waters that 

is found on board a vessel is of United States origin if the 

vessel is within the migratory range of the species during 

that part of the year to which the migratory range applies.

(3) For purposes of this chapter, it shall be a rebuttable 

presumption that any vessel that is shoreward of the outer 

boundary of the exclusive economic zone of the United 

States or beyond the exclusive economic zone of any 

nation, and that has gear on board that is capable of use 

for large-scale driftnet fishing, is engaged in such fishing.

Amended: Sustainable Fisheries Act, Pub. L. 104-297, Title I, 

§ 114(d), Oct. 11, 1996, 110 Stat. 3559, 3599. 

16 U.S.C. § 3374. Forfeiture. (Lacey Act)

(a) In general

(1) All fish or wildlife or plants imported, exported, 

transported, sold, received, acquired, or purchased contrary to the 

provisions of section 3372 of this title (other than section 3372(b) 

of this title), or any regulation issued pursuant thereto, shall be 

subject to forfeiture to the United States notwithstanding any 

culpability requirements for civil penalty assessment or criminal 

prosecution included in section 3373 of this title.

(2) All vessels, vehicles, aircraft, and other equipment 

used to aid in the importing, exporting, transporting, selling, 

receiving, acquiring, or purchasing of fish or wildlife or 

plants in a criminal violation of this chapter for which a 

felony conviction is obtained shall be subject to forfeiture 

to the United States if (A) the owner of such vessel, vehicle, 

aircraft, or equipment was at the time of the alleged illegal 

act a consenting party or privy thereto or in the exercise of 

due care should have known that such vessel, vehicle, aircraft, 

or equipment would be used in a criminal violation of this 

chapter, and (B) the violation involved the sale or purchase 

of, the offer of sale or purchase of, or the intent to sell or 

purchase, fish or wildlife or plants.

(b) Application of customs laws

All provisions of law relating to the seizure, forfeiture, and 

condemnation of property for violation of the customs laws, 

the disposition of such property or the proceeds from the sale 

thereof, and the remission or mitigation of such forfeiture, 

shall apply to the seizures and forfeitures incurred, or alleged 

to have been incurred, under the provisions of this chapter, 

insofar as such provisions of law are applicable and not 

inconsistent with the provisions of this chapter, except that 

all powers, rights, and duties conferred or imposed by the 

customs laws upon any officer or employee of the Treasury 

Department may, for the purposes of this chapter, also be 

exercised or performed by the Secretary or by such persons 

as he may designate: Provided, That any warrant for search 

or seizure shall be issued in accordance with rule 41 of the 

Federal Rules of Criminal Procedure.

(c) Storage cost

Any person convicted of an offense, or assessed a civil penalty, 

under section 3373 of this title shall be liable for the costs 

incurred in the storage, care, and maintenance of any fish 

or wildlife or plant seized in connection with the violation 

concerned.

(d) Civil forfeitures

Civil forfeitures under this section shall be governed by the 

provisions of chapter 46 of Title 18.

Amended: Food, Conservation, and Energy Act of 2008, 

Pub. L. 110-246, Title VIII, § 8204(d), June 18, 2008, 

122 Stat. 2056.

16 U.S.C. § 3606. Violations and penalties. 

(North Atlantic salmon fishing)

(a) Directed fishing for salmon; Convention, rules and 

regulations
16 • Asset Forfeiture Statutes

16 U.S.C. § 3637 

It is unlawful for any person, or any vessel, subject to the 

jurisdiction of the United States—

(1) to conduct directed fishing for salmon in waters 

seaward of twelve miles from the baselines from which the 

breadths of territorial seas are measured, in waters of the 

Atlantic Ocean north of 36 degrees north latitude; or

(2) to violate any provision of the Convention or this 

chapter, or of any regulation promulgated under this chapter.

(b) Civil and criminal penalties

Any person who commits any act that is unlawful under 

subsection (a) of this section shall—

(1) be liable to the United States for a civil penalty under 

section 308 of the Act of 1976 (16 U.S.C. § 1858) to the same 

extent as if such act were an act prohibited under section 307 

of the Act of 1976 (16 U.S.C. § 1857); and

(2) be guilty of an offense under section 309 of the Act 

of 1976 (16 U.S.C. § 1859) to the same extent as if such act 

were an act prohibited by section 307(1) (D), (E), (F), or (H) 

of the Act of 1976 (16 U.S.C. §§ 1857(1)(D), (E), (F), or (H)).

(c) Civil forfeiture of vessel

Any vessel used, and any fish (or the fair market value thereof) 

taken or retained in any manner, in connection with or as the 

result of the commission of an act which is unlawful under 

subsection (a) of this section shall be subject to civil forfeiture 

under section 310 of the Act of 1976 (16 U.S.C. § 1860) to 

the same extent as if such vessel was used in, or such fish was 

taken or retained in connection with or as the result of, the 

commission of an act prohibited by section 307 of the Act of 

1976 (16 U.S.C. § 1857).

Amended: Technical corrections to the Atlantic Salmon 

Convention Act of 1982, Pub. L. 98-44, Title I, § 102(2), 

July 12, 1983, 97 Stat. 216.

16 U.S.C. § 3637. Prohibited acts and 

penalties. (Pacific salmon fishing)

(a) Unlawful acts

It is unlawful for any person or vessel subject to the 

jurisdiction of the United States—

(1) to violate any provision of this chapter, or of any 

regulation adopted hereunder, or of any Fraser River Panel 

regulation approved by the United States under the Treaty;

(2) to refuse to permit any officer authorized to enforce the 

provisions of this chapter to board a fishing vessel subject to 

such person’s control for purposes of conducting any search or 

inspection in connection with the enforcement of this chapter;

(3) to forcibly assault, resist, oppose, impede, intimidate, 

or interfere with any such authorized officer in the conduct 

of any search or inspection described in subparagraph (2);

(4) to resist a lawful arrest for any act prohibited by this 

section;

(5) to ship, transport, offer for sale, sell, purchase, import, 

export, or have custody, control, or possession of, any fish 

taken or retained in violation of this chapter; or

(6) to interfere with, delay, or prevent, by any means, the 

apprehension or arrest of another person, knowing that such 

other person has committed any act prohibited by this section.

(b) Civil penalty

Any person who commits any act that is unlawful under 

subsection (a) of this section shall be liable to the United 

States for a civil penalty as provided by section 308 of the 

Magnuson Act (16 U.S.C. § 1858).

(c) Criminal penalty

Any person who commits an act that is unlawful under 

paragraph (2), (3), (4), or (6) of subsection (a) of this section 

shall be guilty of an offense punishable as provided by section 

309(b) of the Magnuson Act (16 U.S.C. § 1859(b)).

(d) Forfeiture

(1) Any vessel (including its gear, furniture, appurtenances, 

stores, and cargo) used in the commission of an act which is 

prohibited under subsection (a) of this section, and any fish 

(or the fair market value thereof) taken or retained, in any 

manner, in connection with or as a result of the commission 

of any act which is prohibited by subsection (a) of this section, 

shall be subject to forfeiture as provided by section 310 of the 

Magnuson Act (16 U.S.C. § 1860).

(2) Any fish seized pursuant to this chapter may be disposed 

of pursuant to the order of a court of competent jurisdiction 

or, if perishable, in a manner prescribed by regulation of the 

Secretary.

(e) Enforcement authority

The Secretary and the Secretary of the Department in which 

the Coast Guard is operating shall enforce the provisions 

of this chapter and shall have the authority provided by 

subsections 311(a), (b)(1), and (c) of the Magnuson Act 

(16 U.S.C. §§ 1861(a), (b)(1), and (c)).

(f) Jurisdiction

The district courts of the United States shall have exclusive 

jurisdiction over any case or controversy arising under this 

section and may, at any time—

(1) enter restraining orders or prohibitions;

(2) issue warrants, process in rem, or other process;
Asset Forfeiture Statutes • 17

16 U.S.C. § 5010

(3) prescribe and accept satisfactory bonds or other 

security; and

(4) take such other actions as are in the interest of justice.

Enacted: Pacific Salmon Treaty Act of 1985, Pub. L. 99-5, § 8, 

Mar. 15, 1985, 99 Stat. 7, 12.

16 U.S.C. § 5010. Penalties. (North Pacific 

Anadromous Stocks Convention)

(a) Civil penalties

(1) Any person who is found by the Secretary of 

Commerce, after notice and opportunity for a hearing in 

accordance with section 554 of Title 5, to have committed 

an act prohibited by section 5009 of this title shall be liable 

to the United States for a civil penalty. The amount of the 

civil penalty shall not exceed $100,000 for each violation. 

Each day of a continuing violation shall constitute a separate 

offense. The amount of such civil penalty shall be assessed 

by the Secretary of Commerce, or the Secretary’s designee, 

by written notice. In determining the amount of such penalty, 

the Secretary of Commerce shall take into account the nature, 

circumstances, extent, and gravity of the prohibited acts 

committed and, with respect to the violation, the degree of 

culpability, any history of prior offenses, ability to pay, and 

such other matters as justice may require.

(2) Any person against whom a civil penalty is assessed 

under paragraph (1) may obtain review thereof in the 

appropriate court of the United States by filing a complaint in 

such court within 30 days from the date of such order and by 

simultaneously serving a copy of such complaint by certified 

mail on the Secretary of Commerce, the Attorney General, 

and the appropriate United States Attorney. The Secretary of 

Commerce shall promptly file in such court a certified copy 

of the record upon which such violation was found or such 

penalty imposed, as provided in section 2112 of Title 28. The 

findings and order of the Secretary of Commerce shall be set 

aside by such court if they are not found to be supported by 

substantial evidence, as provided in section 706(2) of Title 5.

(3) If any person fails to pay an assessment of a civil 

penalty after it has become a final and unappealable order, or 

after the appropriate court has entered final judgment in favor 

of the Secretary of Commerce, the matter shall be referred to 

the Attorney General, who shall recover the amount assessed 

in any appropriate district court of the United States. In such 

action, the validity and appropriateness of the final order 

imposing the civil penalty shall not be subject to review.

(4) A fishing vessel (including its fishing gear, furniture, 

appurtenances, stores, and cargo) used in the commission of 

an act prohibited by section 5009 of this title shall be liable 

in rem for any civil penalty assessed for such violation under 

paragraph (1) and may be proceeded against in any district 

court of the United States having jurisdiction thereof. Such 

penalty shall constitute a maritime lien on such vessel that 

may be recovered in an action in rem in the district court of 

the United States having jurisdiction over the vessel.

(5) The Secretary of Commerce may compromise, modify, 

or remit, with or without conditions, any civil penalty that 

is subject to imposition or that has been imposed under this 

section.

(6) For the purposes of conducting any hearing under this 

section, the Secretary of Commerce may issue subpoenas for 

the attendance and testimony of witnesses and the production 

of relevant papers, books, and documents, and may administer 

oaths. Witnesses summoned shall be paid the same fees and 

mileage that are paid to witnesses in the courts of the United 

States. In case of contempt or refusal to obey a subpoena 

served upon any person pursuant to this paragraph, the district 

court of the United States for any district in which such person 

is found, resides, or transacts business, upon application by 

the United States and after notice to such person, shall have 

jurisdiction to issue an order requiring such person to appear 

and give testimony before the Secretary of Commerce or 

to appear and produce documents before the Secretary of 

Commerce, or both, and any failure to obey such order of the 

court may be punished by such court as a contempt thereof.

(b) Offenses

(1) A person is guilty of an offense if the person commits 

any act prohibited by section 5009(5), (6), (7), or (8) of this title.

(2) Any offense described in paragraph (1) is a class 

A misdemeanor punishable by a fine under Title 18 or 

imprisonment for not more than 6 months, or both; except 

that if in the commission of any offense the person uses a 

dangerous weapon, engages in conduct that causes bodily 

injury to any enforcement officer, or places any such officer 

in fear of imminent bodily injury, the offense is a felony 

punishable by a fine under Title 18 or imprisonment for not 

more than 10 years, or both.

(c) Forfeiture

(1) Any fishing vessel (including its fishing gear, furniture, 

appurtenances, stores, and cargo) used, and any fish (or a 

fair market value thereof) taken or retained, in any manner, 

in connection with or as a result of the commission of any 

act prohibited by section 5009 of this title shall be subject 

to forfeiture to the United States. All or part of such vessel 

may, and all such fish shall, be forfeited to the United States 

pursuant to a civil proceeding under this section.

(2) Any district court of the United States shall have 

jurisdiction, upon application of the Attorney General on behalf 

of the United States, to order any forfeiture authorized under 

paragraph (1) and any action provided for under paragraph (4).
18 • Asset Forfeiture Statutes

16 U.S.C. § 5106 

(3) If a judgment is entered for the United States in a 

civil forfeiture proceeding under this section, the Attorney 

General may seize any property or other interest declared 

forfeited to the United States, which has not previously been 

seized pursuant to this chapter or for which security has not 

previously been obtained. The provisions of the customs 

laws relating to—

(A) the seizure, forfeiture, and condemnation of 

property for violation of the customs law;

(B) the disposition of such property or the proceeds 

from the sale thereof; and

(C) the remission or mitigation of any such forfeiture;

shall apply to seizures and forfeitures incurred, or alleged 

to have been incurred, under the provisions of this chapter, 

unless such provisions are inconsistent with the purposes, 

policy, and provisions of this chapter.

(4)(A) Any officer authorized to serve any process in rem 

that is issued by a court having jurisdiction under section 

5008(b) of this title shall—

(i) stay the execution of such process; or

(ii) discharge any fish seized pursuant to such 

process;

upon receipt of a satisfactory bond or other security 

from any person claiming such property. Such bond or 

other security shall be conditioned upon such person 

delivering such property to the appropriate court upon 

order thereof, without any impairment of its value, or 

paying the monetary value of such property pursuant to an 

order of such court. Judgment shall be recoverable on such 

bond or other security against both the principal and any 

sureties in the event that any condition thereof is breached, 

as determined by such court.

(B) Any fish seized pursuant to this chapter may 

be sold, subject to the approval and direction of the 

appropriate court, for not less than the fair market value 

thereof. The proceeds of any such sale shall be deposited 

with such court pending the disposition of the matter 

involved.

(5) For purposes of this section, it shall be a rebuttable 

presumption that all fish found on board a fishing vessel and 

which is seized in connection with an act prohibited by section 

5009 of this title were taken or retained in violation of the 

Convention and this chapter.

Amended: Pribilof Islands Transition Act/Coral Reef 

Conservation Act of 2000, Pub. L. 106-562, Title III, § 304(a), 

Dec. 23, 2000, 114 Stat. 2794, 2806.

16 U.S.C. § 5106. Secretarial action. (Atlantic 

coastal fisheries)

(a) Secretarial review of Commission determination of 

noncompliance

Within 30 days after receiving a notification from the 

Commission under section 5105(b) of this title and after 

review of the Commission’s determination of noncompliance, 

the Secretary shall make a finding on—

(1) whether the State in question has failed to carry out its 

responsibility under section 5104 of this title; and

(2) if so, whether the measures that the State has failed to 

implement and enforce are necessary for the conservation of 

the fishery in question.

(b) Consideration of comments

In making a finding under subsection (a) of this section, the 

Secretary shall—

(A) give careful consideration to the comments of the 

State that the Commission has determined under section 

5105(a) of this title is not in compliance with a coastal fishery 

management plan, and provide such State, upon request, with 

the opportunity to meet with and present its comments directly 

to the Secretary; and

(B) solicit and consider the comments of the Commission 

and the appropriate Councils.

(c) Moratorium

(1) Upon making a finding under subsection (a) of this 

section that a State has failed to carry out its responsibility 

under section 5104 of this title and that the measures it failed 

to implement and enforce are necessary for conservation, the 

Secretary shall declare a moratorium on fishing in the fishery 

in question within the waters of the noncomplying State. 

The Secretary shall specify the moratorium’s effective date, 

which shall be any date within 6 months after declaration of 

the moratorium.

(2) If after a moratorium is declared under paragraph (1) the 

Secretary is notified by the Commission that the Commission is 

withdrawing under section 5105(c) of this title the determination 

of noncompliance, the Secretary shall immediately determine 

whether the State is in compliance with the applicable plan. If 

so, the moratorium shall be terminated.

(d) Implementing regulations

The Secretary may issue regulations necessary to implement 

this section. Such regulations—

(1) may provide for the possession and use of fish which 

have been produced in an aquaculture operation, subject to 

applicable State regulations; and
Asset Forfeiture Statutes • 19

16 U.S.C. § 5154

(2) shall allow for retention of fish that are subject to a 

moratorium declared under this section and unavoidably taken 

as incidental catch in fisheries directed toward menhaden if—

(A) discarding the retained fish is impracticable;

(B) the retained fish do not constitute a significant 

portion of the catch of the vessel; and

(C) retention of the fish will not, in the judgment of the 

Secretary, adversely affect the conservation of the species 

of fish retained.

(e) Prohibited acts during moratorium

During the time in which a moratorium under this section is 

in effect, it is unlawful for any person to—

(1) violate the terms of the moratorium or of any 

implementing regulation issued under subsection (d) of this 

section;

(2) engage in fishing for any species of fish to which the 

moratorium applies within the waters of the State subject to 

the moratorium;

(3) land, attempt to land, or possess fish that are caught, 

taken, or harvested in violation of the moratorium or of any 

implementing regulation issued under subsection (d) of this 

section;

(4) fail to return to the water immediately, with a minimum 

of injury, any fish to which the moratorium applies that are 

taken incidental to fishing for species other than those to which 

the moratorium applies, except as provided by regulations 

issued under subsection (d) of this section;

(5) refuse to permit any officer authorized to enforce the 

provisions of this chapter to board a fishing vessel subject to 

such person’s control for purposes of conducting any search or 

inspection in connection with the enforcement of this chapter;

(6) forcibly assault, resist, oppose, impede, intimidate, or 

interfere with any such authorized officer in the conduct of 

any search or inspection under this chapter;

(7) resist a lawful arrest for any act prohibited by this 

section;

(8) ship, transport, offer for sale, sell, purchase, import, 

or have custody, control, or possession of, any fish taken or 

retained in violation of this chapter; or

(9) interfere with, delay, or prevent, by any means, the 

apprehension or arrest of another person, knowing that such 

other person has committed any act prohibited by this section.

(f) Civil and criminal penalties

(1) Any person who commits any act that is unlawful under 

subsection (e) of this section shall be liable to the United 

States for a civil penalty as provided by section 308 of the 

Magnuson-Stevens Fishery Conservation and Management 

Act (16 U.S.C. § 1858).

(2) Any person who commits an act prohibited by paragraph 

(5), (6), (7), or (9) of subsection (e) of this section is guilty 

of an offense punishable as provided by section 309(a) (1) 

and (b) of the Magnuson-Stevens Fishery Conservation and 

Management Act (16 U.S.C. §§ 1859(a)(1) and (b)).

(g) Civil forfeitures

(1) Any vessel (including its gear, equipment, 

appurtenances, stores, and cargo) used, and any fish (or the 

fair market value thereof) taken or retained, in any manner, 

in connection with, or as the result of, the commission of any 

act that is unlawful under subsection (e) of this section, shall 

be subject to forfeiture to the United States as provided in 

section 310 of the Magnuson-Stevens Fishery Conservation 

and Management Act (16 U.S.C. § 1860).

(2) Any fish seized pursuant to this chapter may be disposed 

of pursuant to the order of a court of competent jurisdiction 

or, if perishable, in a manner prescribed in regulation.

(h) Enforcement

A person authorized by the Secretary or the Secretary of the 

department in which the Coast Guard is operating may take any 

action to enforce a moratorium declared under subsection (c) 

of this section that an officer authorized by the Secretary under 

section 311(b) of the Magnuson-Stevens Fishery Conservation 

and Management Act (16 U.S.C. § 1861(b)) may take to enforce 

that Act [16 U.S.C.A. § 1801 et seq.]. The Secretary may, by 

agreement, on a reimbursable basis or otherwise, utilize the 

personnel, services, equipment (including aircraft and vessels), 

and facilities of any other Federal department or agency and of 

any agency of a State in carrying out that enforcement.

Amended: Striped Bass Conservation Act, Pub. L. 106-555, 

Title I, § 122(b)(3), Dec. 21, 2000, 114 Stat. 2765, 2766.

16 U.S.C. § 5154. Moratorium. (Atlantic striped 

bass conservation)

(a) Secretarial action after notification

Upon receiving notice from the Commission under section 

5153(c) of this title of a negative determination regarding a 

coastal State, the Secretaries shall determine jointly, within 

30 days, whether that coastal State is in compliance with the 

Plan and, if the State is not in compliance, the Secretaries shall 

declare jointly a moratorium on fishing for Atlantic striped 

bass within the coastal waters of that coastal State. In making 

such a determination, the Secretaries shall carefully consider 

and review the comments of the Commission and that coastal 

State in question.
20 • Asset Forfeiture Statutes

16 U.S.C. § 5509 

(b) Prohibited acts during moratorium

During a moratorium period, it is unlawful for any person—

(1) to engage in fishing within the moratorium area;

(2) to land, or attempt to land, Atlantic striped bass that 

are caught, taken, or harvested in violation of paragraph (1);

(3) to land lawfully harvested Atlantic striped bass 

within the boundaries of a coastal State when a moratorium 

declared under subsection (a) of this section applies to 

that State; or

(4) to fail to return to the water Atlantic striped bass to 

which the moratorium applies that are caught incidental 

to harvesting that occurs in the course of commercial or 

recreational fish catching activities, regardless of the physical 

condition of the striped bass when caught.

(c) Civil penalties

(1) Civil penalty

Any person who commits any act that is unlawful under 

subsection (b) of this section shall be liable to the United 

States for a civil penalty as provided by section 308 of the 

Magnuson Act.

(2) Civil forfeitures

(A) In general

Any vessel (including its gear, equipment, 

appurtenances, stores, and cargo) used, and any fish 

(or the fair market value thereof) taken or retained, in 

any manner, in connection with, or as the result of, the 

commission of any act that is unlawful under subsection 

(b) of this section shall be subject to forfeiture to 

the United States as provided in section 310 of the 

Magnuson Act.

(B) Disposal of fish

Any fish seized pursuant to this chapter may be 

disposed of pursuant to the order of a court of competent 

jurisdiction, or, if perishable, in a manner prescribed in 

regulations.

(d) Enforcement

A person authorized by the Secretaries or the Secretary of 

the department in which the Coast Guard is operating may 

take any action to enforce a moratorium declared under 

subsection (a) of this section that an officer authorized by 

the Secretary under section 311(b) of the Magnuson Act may 

take to enforce that Act. The Secretaries may, by agreement, 

on a reimbursable basis or otherwise, utilize the personnel, 

services, equipment (including aircraft and vessels), and 

facilities of any other Federal department or agency and of 

any agency of a State in carrying out that enforcement.

(e) Regulations

The Secretaries may issue regulations to implement this 

section.

Amended: Atlantic Striped Bass Conservation Act Amendments of 

1997, Pub. L. 105-146, § 2, Dec. 16, 1997, 111 Stat. 2672, 2974.

16 U.S.C. § 5509. Forfeitures. (High seas 

fishing)

(a) In general

Any high seas fishing vessel (including its fishing gear, 

furniture, appurtenances, stores, and cargo) used, and any 

living marine resources (or the fair market value thereof) taken 

or retained, in any manner, in connection with or as a result 

of the commission of any act prohibited by section 5505 of 

this title (other than an act for which the issuance of a citation 

under section 5506 of this title is a sufficient sanction) shall be 

subject to forfeiture to the United States. All or part of such 

vessel may, and all such living marine resources (or the fair 

market value thereof) shall, be forfeited to the United States 

pursuant to a civil proceeding under this section.

(b) Jurisdiction of district courts

Any district court of the United States shall have jurisdiction, 

upon application of the Attorney General on behalf of the 

United States, to order any forfeiture authorized under 

subsection (a) of this section and any action provided for 

under subsection (d) of this section.

(c) Judgment

If a judgment is entered for the United States in a civil 

forfeiture proceeding under this section, the Attorney 

General may seize any property or other interest declared 

forfeited to the United States, which has not previously been 

seized pursuant to this chapter or for which security has not 

previously been obtained. The provisions of the customs laws 

relating to—

(1) the seizure, forfeiture, and condemnation of property 

for violation of the customs law;

(2) the disposition of such property or the proceeds from 

the sale thereof; and

(3) the remission or mitigation of any such forfeiture;

shall apply to seizures and forfeitures incurred, or alleged to 

have been incurred, under the provisions of this chapter, unless 

such provisions are inconsistent with the purposes, policy, and 

provisions of this chapter.

(d) Procedure
Asset Forfeiture Statutes • 21

16 U.S.C. § 5606

(1) Any officer authorized to serve any process in rem that 

is issued by a court under section 5506(b) of this title shall—

(A) stay the execution of such process; or

(B) discharge any living marine resources seized 

pursuant to such process;

upon receipt of a satisfactory bond or other security from 

any person claiming such property. Such bond or other 

security shall be conditioned upon such person delivering 

such property to the appropriate court upon order thereof, 

without any impairment of its value, or paying the monetary 

value of such property pursuant to an order of such court. 

Judgment shall be recoverable on such bond or other 

security against both the principal and any sureties in the 

event that any condition thereof is breached, as determined 

by such court.

(2) Any living marine resources seized pursuant to this 

chapter may be sold, subject to the approval of the appropriate 

court, for not less than the fair market value thereof. The 

proceeds of any such sale shall be deposited with such court 

pending the disposition of the matter involved.

(e) Rebuttable presumption

For purposes of this section, all living marine resources found 

on board a high seas fishing vessel and which are seized in 

connection with an act prohibited by section 5505 of this title 

are presumed to have been taken or retained in violation of this 

chapter, but the presumption can be rebutted by an appropriate 

showing of evidence to the contrary.

Enacted: Fisheries Act of 1995, Pub. L. 104-43, Title I, § 110, 

Nov. 3, 1995, 109 Stat. 366, 375.

16 U.S.C. § 5606. Prohibited acts and 

penalties. (Northwest Atlantic Fisheries 

Convention)

(a) Prohibition

It is unlawful for any person or vessel that is subject to the 

jurisdiction of the United States—

(1) to violate any regulation issued under this chapter or 

any measure that is legally binding on the United States under 

the Convention;

(2) to refuse to permit any authorized enforcement officer 

to board a fishing vessel that is subject to the person’s 

control for purposes of conducting any search or inspection 

in connection with the enforcement of this chapter, any 

regulation issued under this chapter, or any measure that is 

legally binding on the United States under the Convention;

(3) forcibly to assault, resist, oppose, impede, intimidate, 

or interfere with any authorized enforcement officer in the 

conduct of any search or inspection described in paragraph (2);

(4) to resist a lawful arrest for any act prohibited by this 

section;

(5) to ship, transport, offer for sale, sell, purchase, import, 

export, or have custody, control, or possession of, any fish 

taken or retained in violation of this section; or

(6) to interfere with, delay, or prevent, by any means, the 

apprehension or arrest of another person, knowing that the 

other person has committed an act prohibited by this section.

(b) Civil penalty

Any person who commits any act that is unlawful under 

subsection (a) of this section shall be liable to the United States 

for a civil penalty, or may be subject to a permit sanction, 

under section 1858 of this title.

(c) Criminal penalty

Any person who commits an act that is unlawful under 

paragraph (2), (3), (4), or (6) of subsection (a) of this section 

shall be guilty of an offense punishable under section 1859(b) 

of this title.

(d) Civil forfeitures

(1) In general

Any vessel (including its gear, furniture, appurtenances, 

stores, and cargo) used in the commission of an act that is 

unlawful under subsection (a) of this section, and any fish 

(or the fair market value thereof) taken or retained, in any 

manner, in connection with or as a result of the commission 

of any act that is unlawful under subsection (a) of this section, 

shall be subject to seizure and forfeiture as provided in section 

1860 of this title.

(2) Disposal of fish

Any fish seized pursuant to this chapter may be disposed 

of pursuant to the order of a court of competent jurisdiction 

or, if perishable, in a manner prescribed by regulations issued 

by the Secretary.

(e) Enforcement

The Secretary and the Secretary of the department in which 

the Coast Guard is operating shall enforce the provisions of 

this chapter and shall have the authority specified in section 

1861(a), (b)(1), and (c) of this title for that purpose.

(f) Jurisdiction of courts

The district courts of the United States shall have exclusive 

jurisdiction over any case or controversy arising under this 

section and may, at any time—
22 • Asset Forfeiture Statutes

16 U.S.C. § 5606 

(1) enter restraining orders or prohibitions;

(2) issue warrants, process in rem, or other process;

(3) prescribe and accept satisfactory bonds or other 

security; and

(4) take such other actions as are in the interests of justice.

Amended: Governing International Fishery Agreement With 

Poland, Pub. L. 105-384, Title II, § 201(b)(1), Nov. 13, 1998, 

112 Stat. 3451.
Asset Forfeiture Statutes • 23

17 U.S.C. § 506(b)

TITLE 17

17 U.S.C. § 506(b). Criminal offenses. 

(Copyright infringements)

(b) Forfeiture, destruction, and restitution.—Forfeiture, 

destruction, and restitution relating to this section shall be 

subject to section 2323 of title 18, to the extent provided 

in that section, in addition to any other similar remedies 

provided by law.

Amended: Prioritizing Resources and Organization for Intellectual 

Property Act of 2008, Pub. L. 110-403, Title II, § 201(a), Oct. 13, 

2008, Stat. 4260.
24 • Asset Forfeiture Statutes

18 U.S.C. § 38 

TITLE 18

18 U.S.C. § 38. Fraud involving aircraft or 

space vehicle parts in interstate or foreign 

commerce. 

(a) Offenses. Whoever, in or affecting interstate or foreign 

commerce, knowingly and with the intent to defraud—

(1)(A) falsifies or conceals a material fact concerning 

any aircraft or space vehicle part;

(B) makes any materially fraudulent representation 

concerning any aircraft or space vehicle part; or

(C) makes or uses any materially false writing, entry, 

certification, document, record, data plate, label, or 

electronic communication concerning any aircraft or 

space vehicle part;

(2) exports from or imports or introduces into the 

United States, sells, trades, installs on or in any aircraft or 

space vehicle any aircraft or space vehicle part using or by 

means of a fraudulent representation, document, record, 

certification, depiction, data plate, label, or electronic 

communication; or

(3) attempts or conspires to commit an offense described 

in paragraph (1) or (2), 

shall be punished as provided in subsection (b). 

(b) Penalties. The punishment for an offense under 

subsection (a) is as follows:

(1) Aviation quality. If the offense relates to the 

aviation quality of a part and the part is installed in an 

aircraft or space vehicle, a fine of not more than $500,000, 

imprisonment for not more than 15 years, or both.

(2) Failure to operate as represented. If, by reason of 

the failure of the part to operate as represented, the part 

to which the offense is related is the proximate cause of a 

malfunction or failure that results in serious bodily injury (as 

defined in section 1365), a fine of not more than $ 1,000,000, 

imprisonment for not more than 20 years, or both.

(3) Failure resulting in death. If, by reason of the failure 

of the part to operate as represented, the part to which the 

offense is related is the proximate cause of a malfunction 

or failure that results in the death of any person, a fine of 

not more than $ 1,000,000, imprisonment for any term of 

years or life, or both.

(4) Other circumstances. In the case of an offense under 

subsection (a) not described in paragraph (1), (2), or (3) of 

this subsection, a fine under this title, imprisonment for not 

more than 10 years, or both.

(5) Organizations. If the offense is committed by an 

organization, a fine of not more than—

(A) $10,000,000 in the case of an offense described 

in paragraph (1) or (4); and

(B) $20,000,000 in the case of an offense described 

in paragraph (2) or (3).

(c) Civil remedies.

(1) In general. The district courts of the United States 

shall have jurisdiction to prevent and restrain violations 

of this section by issuing appropriate orders, including—

(A) ordering a person (convicted of an offense under 

this section) to divest any interest, direct or indirect, 

in any enterprise used to commit or facilitate the 

commission of the offense, or to destroy, or to mutilate 

and sell as scrap, aircraft material or part inventories 

or stocks;

(B) imposing reasonable restrictions on the future 

activities or investments of any such person, including 

prohibiting engagement in the same type of endeavor as 

used to commit the offense; and

(C) ordering the dissolution or reorganization of any 

enterprise knowingly used to commit or facilitate the 

commission of an offense under this section making 

due provisions for the rights and interests of innocent 

persons.

(2) Restraining orders and prohibition. Pending final 

determination of a proceeding brought under this section, 

the court may enter such restraining orders or prohibitions, 

or take such other actions (including the acceptance of 

satisfactory performance bonds) as the court deems proper.

(3) Estoppel. A final judgment rendered in favor of the 

United States in any criminal proceeding brought under this 

section shall stop the defendant from denying the essential 

allegations of the criminal offense in any subsequent civil 

proceeding brought by the United States. 

(d) Criminal forfeiture.

(1) In general. The court, in imposing sentence on any 

person convicted of an offense under this section, shall 

order, in addition to any other sentence and irrespective 

of any provision of State law, that the person forfeit to the 

United States—

(A) any property constituting, or derived from, any 

proceeds that the person obtained, directly or indirectly, 

as a result of the offense; and

(B) any property used, or intended to be used in any 

manner, to commit or facilitate the commission of the 

offense, if the court in its discretion so determines, taking 
Asset Forfeiture Statutes • 25

18 U.S.C. § 492

into consideration the nature, scope, and proportionality 

of the use of the property on the offense.

(2) Application of other law. The forfeiture of property 

under this section, including any seizure and disposition of 

the property, and any proceedings relating to the property, 

shall be governed by section 413 of the Comprehensive 

Drug Abuse and Prevention Act of 1970 (21 U.S.C. 853) 

(not including subsection (d) of that section). 

(e) Construction with other law. This section does not 

preempt or displace any other remedy, civil or criminal, 

provided by Federal or State law for the fraudulent 

importation, sale, trade, installation, or introduction into 

commerce of an aircraft or space vehicle part. 

(f) Territorial scope. This section also applies to conduct 

occurring outside the United States if—

(1) the offender is a natural person who is a citizen 

or permanent resident alien of the United States, or an 

organization organized under the laws of the United States 

or political subdivision thereof;

(2) the aircraft or spacecraft part as to which the violation 

relates was installed in an aircraft or space vehicle owned or 

operated at the time of the offense by a citizen or permanent 

resident alien of the United States, or by an organization 

thereof; or

(3) an act in furtherance of the offense was committed 

in the United States.

Enacted: Wendell H. Ford Aviation Investment and Reform 

Act for the 21st Century, Pub. L. 106-181, Title V, § 506(c)(1), 

Apr. 5, 2000, 114 Stat. 61, 137.

18 U.S.C. § 371. Conspiracy to commit offense 

or to defraud United States.

If two or more persons conspire either to commit any 

offense against the United States, or to defraud the United 

States, or any agency thereof in any manner or for any 

purpose, and one or more of such persons do any act to 

effect the object of the conspiracy, each shall be fined under 

this title or imprisoned not more than five years, or both.

If, however, the offense, the commission of which is 

the object of the conspiracy, is a misdemeanor only, the 

punishment for such conspiracy shall not exceed the 

maximum punishment provided for such misdemeanor.

Amended: Violent Crime Control and Law Enforcement Act of 

1994, Pub.L. 103-322, Title XXXIII, § 330016(1)(L), Sept. 13, 

1994, 108 Stat. 2147. 

18 U.S.C. § 492. Forfeiture of counterfeit 

paraphernalia.

All counterfeits of any coins or obligations or other securities 

of the United States or of any foreign government, or any 

articles, devices, and other things made, possessed, or used 

in violation of this chapter or of sections 331-333, 335, 

336, 642 or 1720, of this title, or any material or apparatus 

used or fitted or intended to be used, in the making of 

such counterfeits, articles, devices or things, found in 

the possession of any person without authority from the 

Secretary of the Treasury or other proper officer, shall be 

forfeited to the United States.

Whoever, having the custody or control of any such 

counterfeits, material, apparatus, articles, devices, or other 

things, fails or refuses to surrender possession thereof upon 

request by any authorized agent of the Treasury Department, 

or other proper officer, shall be fined under this title or 

imprisoned not more than one year, or both.

Whenever, except as hereinafter in this section provided, any 

person interested in any article, device, or other thing, or 

material or apparatus seized under this section files with the 

Secretary of the Treasury, before the disposition thereof, a 

petition for the remission or mitigation of such forfeiture, the 

Secretary of the Treasury, if he finds that such forfeiture was 

incurred without willful negligence or without any intention 

on the part of the petitioner to violate the law, or finds the 

existence of such mitigating circumstances as to justify the 

remission or the mitigation of such forfeiture, may remit 

or mitigate the same upon such terms and conditions as he 

deems reasonable and just.

If the seizure involves offenses other than offenses against 

the coinage, currency, obligations or securities of the United 

States or any foreign government, the petition for the 

remission or mitigation of forfeiture shall be referred to the 

Attorney General, who may remit or mitigate the forfeiture 

upon such terms as he deems reasonable and just.

Amended: Criminal Law Technical Amendments Act of 2002, 

Pub. L. 107-273, Div. B, Title IV, § 4002(d)(1)(A), Nov. 2, 2002, 

116 Stat. 1758, 1809.
26 • Asset Forfeiture Statutes

18 U.S.C. § 512 

18 U.S.C. § 512. Forfeiture of certain motor 

vehicles and motor vehicle parts.

(a) If an identification number for a motor vehicle or motor 

vehicle part is removed, obliterated, tampered with, or altered, 

such vehicle or part shall be subject to seizure and forfeiture 

to the United States unless—

(1) in the case of a motor vehicle part, such part is attached 

to a motor vehicle and the owner of such motor vehicle does 

not know that the identification number has been removed, 

obliterated, tampered with, or altered;

(2) such motor vehicle or part has a replacement 

identification number that—

(A) is authorized by the Secretary of Transportation 

under chapter 301 of title 49; or

(B) conforms to applicable State law;

(3) such removal, obliteration, tampering, or alteration is 

caused by collision or fire or is carried out as described in 

section 511(b) of this title; or

(4) such motor vehicle or part is in the possession or 

control of a motor vehicle scrap processor who does not know 

that such identification number was removed, obliterated, 

tampered with, or altered in any manner other than by collision 

or fire or as described in section 511(b) of this title.

(b) All provisions of law relating to—

(1) the seizure and condemnation of vessels, vehicles, 

merchandise, and baggage for violation of customs laws, and 

procedures for summary and judicial forfeiture applicable to 

such violations;

(2) the disposition of such vessels, vehicles, merchandise, 

and baggage or the proceeds from such disposition;

(3) the remission or mitigation of such forfeiture; and

(4) the compromise of claims and the award of compensation 

to informers with respect to such forfeiture;

shall apply to seizures and forfeitures under this section, to 

the extent that such provisions are not inconsistent with this 

section. The duties of the collector of customs or any other 

person with respect to seizure and forfeiture under such 

provisions shall be performed under this section by such 

persons as may be designated by the Attorney General.

(c) As used in this section, the terms “identification number”, 

“motor vehicle”, and “motor vehicle scrap processor” have 

the meanings given those terms in section 511 of this title.

Amended: Revision of Title 49, United States Code Annotated, 

“Transportation,” Pub. L. 103-272, § 5(e)(4), July 5, 1994, 

108 Stat. 745, 1373.

18 U.S.C. § 545. Smuggling goods into the 

United States.

Whoever knowingly and willfully, with intent to defraud 

the United States, smuggles, or clandestinely introduces or 

attempts to smuggle or clandestinely introduce into the United 

States any merchandise which should have been invoiced, 

or makes out or passes, or attempts to pass, through the 

customhouse any false, forged, or fraudulent invoice, or other 

document or paper; or 

Whoever fraudulently or knowingly imports or brings into 

the United States, any merchandise contrary to law, or 

receives, conceals, buys, sells, or in any manner facilitates 

the transportation, concealment, or sale of such merchandise 

after importation, knowing the same to have been imported 

or brought into the United States contrary to law—

Shall be fined under this title or imprisoned not more than 

20 years, or both.

Proof of defendant’s possession of such goods, unless 

explained to the satisfaction of the jury, shall be deemed 

evidence sufficient to authorize conviction for violation of 

this section. 

Merchandise introduced into the United States in violation 

of this section, or the value thereof, to be recovered from 

any person described in the first or second paragraph of this 

section, shall be forfeited to the United States. 

The term “United States”, as used in this section, shall not 

include the Virgin Islands, American Samoa, Wake Island, 

Midway Islands, Kingman Reef, Johnston Island, or Guam.

Amended: USA PATRIOT Improvement and Reauthorization 

Act of 2005, Pub. L. 109-177, Title III, § 310, Mar. 9, 2006, 

120 Stat. 192, 242.

18 U.S.C. § 550. False claim for refund of 

duties.

Whoever knowingly and willfully files any false or fraudulent 

entry or claim for the payment of drawback, allowance, or 

refund of duties upon the exportation of merchandise, or 

knowingly or willfully makes or files any false affidavit, 

abstract, record, certificate, or other document, with a 

view to securing the payment to himself or others of any 

drawback, allowance, or refund of duties, on the exportation of 

merchandise, greater than that legally due thereon, shall be fined 

under this title or imprisoned not more than two years, or both, 

and such merchandise or the value thereof shall be forfeited.

Amended: Violent Crime Control and Law Enforcement Act of 

1994, Pub. L. 103-322, Title XXXIII, § 330016(1)(K), Sept. 13, 

1994, 108 Stat. 1796, 2147.
Asset Forfeiture Statutes • 27

18 U.S.C. § 666

18 U.S.C. § 641. Public money, property or 

records.

Whoever embezzles, steals, purloins, or knowingly converts 

to his use or the use of another, or without authority, sells, 

conveys or disposes of any record, voucher, money, or thing 

of value of the United States or of any department or agency 

thereof, or any property made or being made under contract 

for the United States or any department or agency thereof; or

Whoever receives, conceals, or retains the same with intent 

to convert it to his use or gain, knowing it to have been 

embezzled, stolen, purloined or converted--

Shall be fined under this title or imprisoned not more than 

ten years, or both; but if the value of such property in the 

aggregate, combining amounts from all the counts for which 

the defendant is convicted in a single case, does not exceed the 

sum of $1,000, he shall be fined under this title or imprisoned 

not more than one year, or both.

The word “value” means face, par, or market value, or cost 

price, either wholesale or retail, whichever is greater.

Amended: Identity Theft Penalty Enhancement Act, Pub.L. 108-

275, § 4, July 15, 2004, 118 Stat. 833.

18 U.S.C. § 657. Lending, credit and insurance 

institutions

Whoever, being an officer, agent or employee of or 

connected in any capacity with the Federal Deposit Insurance 

Corporation, National Credit Union Administration, any 

Federal home loan bank, the Federal Housing Finance 

Agency, Farm Credit Administration, Department of 

Housing and Urban Development, Federal Crop Insurance 

Corporation, the Secretary of Agriculture acting through 

the Farmers Home Administration or successor agency, the 

Rural Development Administration or successor agency, 

or the Farm Credit System Insurance Corporation, a Farm 

Credit Bank, a bank for cooperatives or any lending, 

mortgage, insurance, credit or savings and loan corporation 

or association authorized or acting under the laws of the 

United States or any institution, other than an insured 

bank (as defined in section 656), the accounts of which are 

insured by the Federal Deposit Insurance Corporation, or 

by the National Credit Union Administration Board or any 

small business investment company, or any community 

development financial institution receiving financial 

assistance under the Riegle Community Development and 

Regulatory Improvement Act of 1994, and whoever, being 

a receiver of any such institution, or agent or employee 

of the receiver, embezzles, abstracts, purloins or willfully 

misapplies any moneys, funds, credits, securities or other 

things of value belonging to such institution, or pledged or 

otherwise intrusted to its care, shall be fined not more than 

$1,000,000 or imprisoned not more than 30 years, or both; 

but if the amount or value embezzled, abstracted, purloined 

or misapplied does not exceed $1,000, he shall be fined under 

this title or imprisoned not more than one year, or both.

Amended: Dodd-Frank Wall Street Reform and Consumer 

Protection Act, Pub.L. 111-203, Title III, § 377(2), July 21, 

2010, 124 Stat. 1569..

18 U.S.C. § 658. Property mortgaged or 

pledged to farm credit agencies

Whoever, with intent to defraud, knowingly conceals, 

removes, disposes of, or converts to his own use or to that of 

another, any property mortgaged or pledged to, or held by, 

the Farm Credit Administration, any Federal intermediate 

credit bank, or the Federal Crop Insurance Corporation, the 

Secretary of Agriculture acting through the Farmers Home 

Administration or successor agency, the Rural Development 

Administration or successor agency, any production credit 

association organized under sections 1131-1134m of Title 12, 

any regional agricultural credit corporation, or any bank for 

cooperatives, shall be fined under this title or imprisoned not 

more than five years, or both; but if the value of such property 

does not exceed $1,000, he shall be fined under this title or 

imprisoned not more than one year, or both.

Amended: Appropriations, 2000, Pub.L. 106-78, Title VII, § 767, 

Oct. 22, 1999, 113 Stat. 1174.

18 U.S.C. § 666. Theft or bribery concerning 

programs receiving Federal funds

(a) Whoever, if the circumstance described in subsection (b) 

of this section exists--

(1) being an agent of an organization, or of a State, local, 

or Indian tribal government, or any agency thereof--

(A) embezzles, steals, obtains by fraud, or otherwise 

without authority knowingly converts to the use of any 

person other than the rightful owner or intentionally 

misapplies, property that--

(i) is valued at $5,000 or more, and

(ii) is owned by, or is under the care, custody, or 

control of such organization, government, or agency; or

(B) corruptly solicits or demands for the benefit of any 

person, or accepts or agrees to accept, anything of value 

from any person, intending to be influenced or rewarded 

in connection with any business, transaction, or series of 

transactions of such organization, government, or agency 

involving any thing of value of $5,000 or more; or
28 • Asset Forfeiture Statutes

18 U.S.C. § 793 

(2) corruptly gives, offers, or agrees to give anything of 

value to any person, with intent to influence or reward an 

agent of an organization or of a State, local or Indian tribal 

government, or any agency thereof, in connection with 

any business, transaction, or series of transactions of such 

organization, government, or agency involving anything of 

value of $5,000 or more;

shall be fined under this title, imprisoned not more than 

10 years, or both.

(b) The circumstance referred to in subsection (a) of this 

section is that the organization, government, or agency 

receives, in any one year period, benefits in excess of 

$10,000 under a Federal program involving a grant, contract, 

subsidy, loan, guarantee, insurance, or other form of Federal 

assistance.

(c) This section does not apply to bona fide salary, wages, fees, 

or other compensation paid, or expenses paid or reimbursed, 

in the usual course of business.

(d) As used in this section--

(1) the term “agent” means a person authorized to act on 

behalf of another person or a government and, in the case of an 

organization or government, includes a servant or employee, 

and a partner, director, officer, manager, and representative;

(2) the term “government agency” means a subdivision 

of the executive, legislative, judicial, or other branch 

of government, including a department, independent 

establishment, commission, administration, authority, board, 

and bureau, and a corporation or other legal entity established, 

and subject to control, by a government or governments for the 

execution of a governmental or intergovernmental program;

(3) the term “local” means of or pertaining to a political 

subdivision within a State;

(4) the term “State” includes a State of the United States, 

the District of Columbia, and any commonwealth, territory, 

or possession of the United States; and

(5) the term “in any one-year period” means a continuous 

period that commences no earlier than twelve months before 

the commission of the offense or that ends no later than twelve 

months after the commission of the offense. Such period 

may include time both before and after the commission of 

the offense.

Amended: Violent Crime Control and Law Enforcement Act 

of 1994, Pub.L. 103-322, Title XXXIII, § 330003(c), Sept. 13, 

1994, 108 Stat. 2140.

18 U.S.C. § 793. Gathering, transmitting, or 

losing defense information.

(a) Whoever, for the purpose of obtaining information 

respecting the national defense with intent or reason to believe 

that the information is to be used to the injury of the United 

States, or to the advantage of any foreign nation, goes upon, 

enters, flies over, or otherwise obtains information concerning 

any vessel, aircraft, work of defense, navy yard, naval station, 

submarine base, fueling station, fort, battery, torpedo station, 

dockyard, canal, railroad, arsenal, camp, factory, mine, 

telegraph, telephone, wireless, or signal station, building, 

office, research laboratory or station or other place connected 

with the national defense owned or constructed, or in progress 

of construction by the United States or under the control of the 

United States, or of any of its officers, departments, or agencies, 

or within the exclusive jurisdiction of the United States, or 

any place in which any vessel, aircraft, arms, munitions, or 

other materials or instruments for use in time of war are being 

made, prepared, repaired, stored, or are the subject of research 

or development, under any contract or agreement with the 

United States, or any department or agency thereof, or with any 

person on behalf of the United States, or otherwise on behalf 

of the United States, or any prohibited place so designated 

by the President by proclamation in time of war or in case of 

national emergency in which anything for the use of the Army, 

Navy, or Air Force is being prepared or constructed or stored, 

information as to which prohibited place the President has 

determined would be prejudicial to the national defense; or

(b) Whoever, for the purpose aforesaid, and with like intent 

or reason to believe, copies, takes, makes, or obtains, 

or attempts to copy, take, make, or obtain, any sketch, 

photograph, photographic negative, blueprint, plan, map, 

model, instrument, appliance, document, writing, or note of 

anything connected with the national defense; or

(c) Whoever, for the purpose aforesaid, receives or obtains 

or agrees or attempts to receive or obtain from any person, 

or from any source whatever, any document, writing, code 

book, signal book, sketch, photograph, photographic negative, 

blueprint, plan, map, model, instrument, appliance, or note, 

of anything connected with the national defense, knowing or 

having reason to believe, at the time he receives or obtains, 

or agrees or attempts to receive or obtain it, that it has been or 

will be obtained, taken, made, or disposed of by any person 

contrary to the provisions of this chapter; or

(d) Whoever, lawfully having possession of, access to, control 

over, or being entrusted with any document, writing, code 

book, signal book, sketch, photograph, photographic negative, 

blueprint, plan, map, model, instrument, appliance, or note 

relating to the national defense, or information relating to the 

national defense which information the possessor has reason 

to believe could be used to the injury of the United States or to 
Asset Forfeiture Statutes • 29

18 U.S.C. § 794

the advantage of any foreign nation, willfully communicates, 

delivers, transmits or causes to be communicated, delivered, 

or transmitted or attempts to communicate, deliver, transmit or 

cause to be communicated, delivered or transmitted the same 

to any person not entitled to receive it, or willfully retains 

the same and fails to deliver it on demand to the officer or 

employee of the United States entitled to receive it; or

(e) Whoever having unauthorized possession of, access to, 

or control over any document, writing, code book, signal 

book, sketch, photograph, photographic negative, blueprint, 

plan, map, model, instrument, appliance, or note relating to 

the national defense, or information relating to the national 

defense which information the possessor has reason to believe 

could be used to the injury of the United States or to the 

advantage of any foreign nation, willfully communicates, 

delivers, transmits or causes to be communicated, delivered, 

or transmitted, or attempts to communicate, deliver, transmit 

or cause to be communicated, delivered, or transmitted the 

same to any person not entitled to receive it, or willfully retains 

the same and fails to deliver it to the officer or employee of 

the United States entitled to receive it; or

(f) Whoever, being entrusted with or having lawful possession 

or control of any document, writing, code book, signal book, 

sketch, photograph, photographic negative, blueprint, plan, map, 

model, instrument, appliance, note, or information, relating to the 

national defense, (1) through gross negligence permits the same 

to be removed from its proper place of custody or delivered to 

anyone in violation of his trust, or to be lost, stolen, abstracted, 

or destroyed, or (2) having knowledge that the same has been 

illegally removed from its proper place of custody or delivered 

to anyone in violation of his trust, or lost, or stolen, abstracted, 

or destroyed, and fails to make prompt report of such loss, theft, 

abstraction, or destruction to his superior officer—

Shall be fined under this title or imprisoned not more than 

ten years, or both.

(g) If two or more persons conspire to violate any of the 

foregoing provisions of this section, and one or more of such 

persons do any act to effect the object of the conspiracy, each of 

the parties to such conspiracy shall be subject to the punishment 

provided for the offense which is the object of such conspiracy.

(h)(1) Any person convicted of a violation of this section shall 

forfeit to the United States, irrespective of any provision of State 

law, any property constituting, or derived from, any proceeds 

the person obtained, directly or indirectly, from any foreign 

government, or any faction or party or military or naval force 

within a foreign country, whether recognized or unrecognized by 

the United States, as the result of such violation. For the purposes 

of this subsection, the term “State” includes a State of the United 

States, the District of Columbia, and any commonwealth, 

territory, or possession of the United States.

(2) The court, in imposing sentence on a defendant for a 

conviction of a violation of this section, shall order that the 

defendant forfeit to the United States all property described 

in paragraph (1) of this subsection.

(3) The provisions of subsections (b), (c), and (e) through 

(p) of section 413 of the Comprehensive Drug Abuse 

Prevention and Control Act of 1970 (21 U.S.C. §§ 853(b), 

(c), and (e)-(p)) shall apply to—

(A) property subject to forfeiture under this subsection;

(B) any seizure or disposition of such property; and

(C) any administrative or judicial proceeding in relation 

to such property,

if not inconsistent with this subsection.

(4) Notwithstanding section 524(c) of title 28, there shall 

be deposited in the Crime Victims Fund in the Treasury all 

amounts from the forfeiture of property under this subsection 

remaining after the payment of expenses for forfeiture and 

sale authorized by law.

Amended: Economic Espionage Act of 1996, Pub. L. 104-294, 

Title VI, § 607(b), Oct. 11,1996, 110 Stat. 3488, 3511.

18 U.S.C. § 794. Gathering or delivering 

defense information to aid foreign 

government.

(a) Whoever, with intent or reason to believe that it is to be 

used to the injury of the United States or to the advantage 

of a foreign nation, communicates, delivers, or transmits, 

or attempts to communicate, deliver, or transmit, to any 

foreign government, or to any faction or party or military or 

naval force within a foreign country, whether recognized or 

unrecognized by the United States, or to any representative, 

officer, agent, employee, subject, or citizen thereof, either 

directly or indirectly, any document, writing, code book, signal 

book, sketch, photograph, photographic negative, blueprint, 

plan, map, model, note, instrument, appliance, or information 

relating to the national defense, shall be punished by death 

or by imprisonment for any term of years or for life, except 

that the sentence of death shall not be imposed unless the jury 

or, if there is no jury, the court, further finds that the offense 

resulted in the identification by a foreign power (as defined in 

section 101(a) of the Foreign Intelligence Surveillance Act of 

1978) of an individual acting as an agent of the United States 

and consequently in the death of that individual, or directly 

concerned nuclear weaponry, military spacecraft or satellites, 

early warning systems, or other means of defense or retaliation 

against large-scale attack; war plans; communications 

intelligence or cryptographic information; or any other major 

weapons system or major element of defense strategy.

(b) Whoever, in time of war, with intent that the same shall 

be communicated to the enemy, collects, records, publishes, 
30 • Asset Forfeiture Statutes

18 U.S.C. § 844(c) 

or communicates, or attempts to elicit any information with 

respect to the movement, numbers, description, condition, or 

disposition of any of the Armed Forces, ships, aircraft, or war 

materials of the United States, or with respect to the plans or 

conduct, or supposed plans or conduct of any naval or military 

operations, or with respect to any works or measures undertaken 

for or connected with, or intended for the fortification or defense 

of any place, or any other information relating to the public 

defense, which might be useful to the enemy, shall be punished 

by death or by imprisonment for any term of years or for life.

(c) If two or more persons conspire to violate this section, and 

one or more of such persons do any act to effect the object of 

the conspiracy, each of the parties to such conspiracy shall 

be subject to the punishment provided for the offense which 

is the object of such conspiracy.

(d)(1) Any person convicted of a violation of this section shall 

forfeit to the United States irrespective of any provision of 

State law—

(A) any property constituting, or derived from, any 

proceeds the person obtained, directly or indirectly, as the 

result of such violation, and

(B) any of the person’s property used, or intended to 

be used, in any manner or part, to commit, or to facilitate 

the commission of, such violation.

For the purposes of this subsection, the term “State” includes 

a State of the United States, the District of Columbia, and any 

commonwealth, territory, or possession of the United States.

(2) The court, in imposing sentence on a defendant for a 

conviction of a violation of this section, shall order that the 

defendant forfeit to the United States all property described 

in paragraph (1) of this subsection.

(3) The provisions of subsections (b), (c) and (e) through 

(p) of section 413 of the Comprehensive Drug Abuse 

Prevention and Control Act of 1970 (21 U.S.C. §§ 853(b), 

(c), and (e)-(p)) shall apply to—

(A) property subject to forfeiture under this subsection;

(B) any seizure or disposition of such property; and

(C) any administrative or judicial proceeding in relation 

to such property, if not inconsistent with this subsection.

(4) Notwithstanding section 524(c) of title 28, there shall 

be deposited in the Crime Victims Fund in the Treasury all 

amounts from the forfeiture of property under this subsection 

remaining after the payment of expenses for forfeiture and 

sale authorized by law.

Amended: Economic Espionage Act of 1996, Pub. L. 104-294, 

Title VI, §§ 604(b)(2), 607(b), Oct. 11, 1996, 110 Stat. 3488, 

3506, 3511.

18 U.S.C. § 844(c). Penalties. (Explosive 

materials)

(c)(1) Any explosive materials involved or used or intended 

to be used in any violation of the provisions of this chapter 

or any other rule or regulation promulgated thereunder or 

any violation of any criminal law of the United States shall 

be subject to seizure and forfeiture, and all provisions of 

the Internal Revenue Code of 1986 relating to the seizure, 

forfeiture, and disposition of firearms, as defined in section 

5845(a) of that Code, shall, so far as applicable, extend to 

seizures and forfeitures under the provisions of this chapter.

(2) Notwithstanding paragraph (1), in the case of the 

seizure of any explosive materials for any offense for which 

the materials would be subject to forfeiture in which it would 

be impracticable or unsafe to remove the materials to a place 

of storage or would be unsafe to store them, the seizing 

officer may destroy the explosive materials forthwith. Any 

destruction under this paragraph shall be in the presence of 

at least 1 credible witness. The seizing officer shall make 

a report of the seizure and take samples as the Attorney 

General may by regulation prescribe.

(3) Within 60 days after any destruction made pursuant to 

paragraph (2), the owner of (including any person having an 

interest in) the property so destroyed may make application 

to the Attorney General for reimbursement of the value of 

the property. If the claimant establishes to the satisfaction 

of the Attorney General that—

(A) the property has not been used or involved in a 

violation of law; or

(B) any unlawful involvement or use of the property 

was without the claimant’s knowledge, consent, or willful 

blindness,

the Attorney General shall make an allowance to the 

claimant not exceeding the value of the property destroyed.

Amended: Norman Y. Mineta Research and Special Programs 

Improvement Act, Pub. L. 108-426, § 2(c)(6), Nov. 30, 2004, 

118 Stat. 2423, 2424.

18 U.S.C. § 924(d). Penalties. (Firearms/

ammunition)

(d)(1) Any firearm or ammunition involved in or used in any 

knowing violation of subsection (a)(4), (a)(6), (f), (g), (h), (i), 

(j), or (k) of section 922, or knowing importation or bringing 

into the United States or any possession thereof any firearm or 

ammunition in violation of section 922(l), or knowing violation 

of section 924, or willful violation of any other provision of 

this chapter or any rule or regulation promulgated thereunder, 

or any violation of any other criminal law of the United States, 
Asset Forfeiture Statutes • 31

18 U.S.C. § 981

or any firearm or ammunition intended to be used in any 

offense referred to in paragraph (3) of this subsection, where 

such intent is demonstrated by clear and convincing evidence, 

shall be subject to seizure and forfeiture, and all provisions 

of the Internal Revenue Code of 1986 relating to the seizure, 

forfeiture, and disposition of firearms, as defined in section 

5845(a) of that Code, shall, so far as applicable, extend to 

seizures and forfeitures under the provisions of this chapter: 

Provided, That upon acquittal of the owner or possessor, or 

dismissal of the charges against him other than upon motion of 

the Government prior to trial, or lapse of or court termination 

of the restraining order to which he is subject, the seized 

or relinquished firearms or ammunition shall be returned 

forthwith to the owner or possessor or to a person delegated 

by the owner or possessor unless the return of the firearms or 

ammunition would place the owner or possessor or his delegate 

in violation of law. Any action or proceeding for the forfeiture 

of firearms or ammunition shall be commenced within one 

hundred and twenty days of such seizure.

(2)(A) In any action or proceeding for the return of firearms 

or ammunition seized under the provisions of this chapter, the 

court shall allow the prevailing party, other than the United 

States, a reasonable attorney’s fee, and the United States shall 

be liable therefor.

(B) In any other action or proceeding under the 

provisions of this chapter, the court, when it finds that such 

action was without foundation, or was initiated vexatiously, 

frivolously, or in bad faith, shall allow the prevailing party, 

other than the United States, a reasonable attorney’s fee, 

and the United States shall be liable therefor.

(C) Only those firearms or quantities of ammunition 

particularly named and individually identified as involved 

in or used in any violation of the provisions of this chapter 

or any rule or regulation issued thereunder, or any other 

criminal law of the United States or as intended to be 

used in any offense referred to in paragraph (3) of this 

subsection, where such intent is demonstrated by clear and 

convincing evidence, shall be subject to seizure, forfeiture, 

and disposition.

(D) The United States shall be liable for attorneys’ fees 

under this paragraph only to the extent provided in advance 

by appropriation Acts.

(3) The offenses referred to in paragraphs (1) and (2)(C) 

of this subsection are—

(A) any crime of violence, as that term is defined in 

section 924(c)(3) of this title;

(B) any offense punishable under the Controlled 

Substances Act (21 U.S.C. § 801 et seq.) or the Controlled 

Substances Import and Export Act (21 U.S.C. § 951 et 

seq.);

(C) any offense described in section 922(a)(1), 

922(a) (3), 922(a)(5), or 922(b)(3) of this title, where the 

firearm or ammunition intended to be used in any such 

offense is involved in a pattern of activities which includes 

a violation of any offense described in section 922(a)(1), 

922(a)(3), 922(a)(5), or 922(b)(3) of this title;

(D) any offense described in section 922(d) of this 

title where the firearm or ammunition is intended to be 

used in such offense by the transferor of such firearm or 

ammunition;

(E) any offense described in section 922(i), 922(j), 

922(l), 922(n), or 924(b) of this title; and

(F) any offense which may be prosecuted in a court 

of the United States which involves the exportation of 

firearms or ammunition.

Amended: Codification of Title 46, Pub. L. 109-304, § 17(d)(3), 

Oct. 6, 2006, 120 Stat. 1707. Subsection (d) was not amended.

18 U.S.C. § 981. Civil forfeiture.

(a)(1) The following property is subject to forfeiture to the 

United States:

(A) Any property, real or personal, involved in a 

transaction or attempted transaction in violation of section 

1956, 1957 or 1960 of this title, or any property traceable 

to such property.

(B) Any property, real or personal, within the 

jurisdiction of the United States, constituting, derived 

from, or traceable to, any proceeds obtained directly 

or indirectly from an offense against a foreign nation, 

or any property used to facilitate such an offense, if the 

offense—

(i) involves trafficking in nuclear, chemical, 

biological, or radiological weapons technology or 

material, or the manufacture, importation, sale, or 

distribution of a controlled substance (as that term 

is defined for purposes of the Controlled Substances 

Act), or any other conduct described in section 1956(c)

(7)(B);

(ii) would be punishable within the jurisdiction of 

the foreign nation by death or imprisonment for a term 

ex-ceeding 1 year; and

(iii) would be punishable under the laws of the 

United States by imprisonment for a term exceeding 1 

year, if the act or activity constituting the offense had 

occurred within the jurisdiction of the United States.

(C) Any property, real or personal, which constitutes 

or is derived from proceeds traceable to a violation of 
32 • Asset Forfeiture Statutes

18 U.S.C. § 981 

section 215, 471, 472, 473, 474, 476, 477, 478, 479, 

480, 481, 485, 486, 487, 488, 501, 502, 510, 542, 545, 

656, 657, 670, 842, 844, 1005, 1006, 1007, 1014, 1028, 

1029, 1030, 1032, or 1344 of this title or any offense 

constituting “specified unlawful activity” (as defined in 

section 1956(c)(7) of this title), or a conspiracy to commit 

such offense.

See “Appendix A” for a list of all violations of federal 

and state or foreign law identified as “specified 

unlawful activity” under 18 U.S.C. § 1956(c)(7). See 

also text of section 1956(c)(7) at page 57.

(D) Any property, real or personal, which represents 

or is traceable to the gross receipts obtained, directly or 

indirectly, from a violation of—

(i) section 666(a)(1) (relating to Federal program 

fraud);

(ii) section 1001 (relating to fraud and false 

statements);

(iii) section 1031 (relating to major fraud against 

the United States);

(iv) section 1032 (relating to concealment of assets 

from conservator or receiver of insured financial 

institution);

(v) section 1341 (relating to mail fraud); or

(vi) section 1343 (relating to wire fraud),

if such violation relates to the sale of assets 

acquired or held by the the Federal Deposit Insurance 

Cor-poration, as conservator or receiver for a 

financial institution, or any other conservator for a 

financial institution appointed by the Office of the 

Comptroller of the Currency or the National Credit 

Union Administration, as conservator or liquidating 

agent for a financial institution.

(E) With respect to an offense listed in subsection 

(a)(1)(D) committed for the purpose of executing or 

attempting to execute any scheme or artifice to defraud, 

or for obtaining money or property by means of false 

or fraudulent statements, pretenses, representations 

or promises, the gross receipts of such an offense 

shall include all property, real or personal, tangible 

or intangible, which thereby is obtained, directly or 

indirectly.

(F) Any property, real or personal, which represents 

or is traceable to the gross proceeds obtained, directly or 

in-directly, from a violation of—

(i) section 511 (altering or removing motor vehicle 

identification numbers);

(ii) section 553 (importing or exporting stolen 

motor vehicles);

(iii) section 2119 (armed robbery of automobiles);

(iv) section 2312 (transporting stolen motor 

vehicles in interstate commerce); or

(v) section 2313 (possessing or selling a stolen 

motor vehicle that has moved in interstate commerce).

(G) All assets, foreign or domestic—

(i) of any individual, entity, or organization 

engaged in planning or perpetrating any any Federal 

crime of terrorism (as defined in section 2332b(g)(5)) 

against the United States, citizens or residents of the 

United States, or their property, and all assets, foreign 

or domestic, affording any person a source of influence 

over any such entity or organization;

(ii) acquired or maintained by any person with the 

intent and for the purpose of supporting, planning, 

conducting, or concealing any Federal crime of 

terrorism (as defined in section 2332b(g)(5) against 

the United States, citizens or residents of the United 

States, or their property;

(iii) derived from, involved in, or used or intended 

to be used to commit any Federal crime of terrorism 

(as defined in section 2332b(g)(5)) against the United 

States, citizens or residents of the United States, or 

their property; or

(iv) of any individual, entity, or organization 

engaged in planning or perpetrating any act of 

international terrorism (as defined in section 2331) 

against any international organization (as defined in 

section 209 of the State Department Basic Authorities 

Act of 1956 (22 U.S.C. 4309(b)) or against any 

foreign Government. Where the property sought for 

forfeiture is located beyond the territorial boundaries 

of the United States, an act in further-ance of such 

planning or perpetration must have occurred within 

the jurisdiction of the United States.

(H) Any property, real or personal, involved in a 

violation or attempted violation, or which constitutes 

or is derived from proceeds traceable to a violation, of 

section 2339C of this title.

(2) For purposes of paragraph (1), the term “proceeds” 

is defined as follows:

(A) In cases involving illegal goods, illegal services, 

unlawful activities, and telemarketing and health care 

fraud schemes, the term “proceeds” means property of 

any kind obtained directly or indirectly, as the result of 

the commission of the offense giving rise to forfeiture, 
Asset Forfeiture Statutes • 33

18 U.S.C. § 981

and any property traceable thereto, and is not limited to 

the net gain or profit realized from the offense.

(B) In cases involving lawful goods or lawful services 

that are sold or provided in an illegal manner, the term 

“proceeds” means the amount of money acquired through 

the illegal transactions resulting in the forfeiture, less the 

direct costs incurred in providing the goods or services. 

The claimant shall have the burden of proof with respect 

to the issue of direct costs. The direct costs shall not 

include any part of the overhead expenses of the entity 

providing the goods or services, or any part of the income 

taxes paid by the entity.

(C) In cases involving fraud in the process of obtaining 

a loan or extension of credit, the court shall allow the 

claimant a deduction from the forfeiture to the extent that 

the loan was repaid, or the debt was satisfied, without any 

financial loss to the victim.

(b)(1) Except as provided in section 985, any property 

subject to forfeiture to the United States under subsection 

(a) may be seized by the Attorney General and, in the case of 

property involved in a violation investigated by the Secretary 

of the Treasury or the United States Postal Service, the 

property may also be seized by the Secretary of the Treasury 

or the Postal Service, respectively.

(2) Seizures pursuant to this section shall be made 

pursuant to a warrant obtained in the same manner as 

provided for a search warrant under the Federal Rules of 

Criminal Procedure, except that a seizure may be made 

without a warrant if—

(A) a complaint for forfeiture has been filed in the 

United States district court and the court issued an arrest 

warrant in rem pursuant to the Supplemental Rules for 

Certain Admiralty and Maritime Claims;

(B) there is probable cause to believe that the property 

is subject to forfeiture and—

(i) the seizure is made pursuant to a lawful arrest 

or search; or

(ii) another exception to the Fourth Amendment 

warrant requirement would apply; or

(C) the property was lawfully seized by a State or 

local law enforcement agency and transferred to a Federal 

agency.

(3) Notwithstanding the provisions of rule 41(a) of the 

Federal Rules of Criminal Procedure, a seizure warrant may 

be issued pursuant to this subsection by a judicial officer in 

any district in which a forfeiture action against the property 

may be filed under section 1355(b) of title 28, and may be 

executed in any district in which the property is found, or 

transmitted to the central authority of any foreign state for 

service in accordance with any treaty or other international 

agreement. Any motion for the return of property seized 

under this section shall be filed in the district court in which 

the seizure warrant was issued or in the district court for the 

district in which the property was seized.

(4)(A) If any person is arrested or charged in a foreign 

country in connection with an offense that would give rise 

to the forfeiture of property in the United States under this 

section or under the Controlled Substances Act, the Attorney 

General may apply to any Federal judge or magistrate 

judge in the district in which the property is located for an 

ex parte order restraining the property subject to forfeiture 

for not more than 30 days, except that the time may be 

extended for good cause shown at a hearing conducted in 

the manner provided in rule 43(e) of the Federal Rules of 

Civil Procedure.

(B) The application for the restraining order shall 

set forth the nature and circumstances of the foreign 

charges and the basis for belief that the person arrested 

or charged has property in the United States that would 

be subject to forfeiture, and shall contain a statement 

that the restraining order is needed to preserve the 

availability of property for such time as is necessary to 

receive evidence from the foreign country or elsewhere in 

support of probable cause for the seizure of the property 

under this subsection.

(c) Property taken or detained under this section shall not 

be repleviable, but shall be deemed to be in the custody of 

the Attorney General, the Secretary of the Treasury, or the 

Postal Service, as the case may be, subject only to the orders 

and decrees of the court or the official having jurisdiction 

thereof. Whenever property is seized under this subsection, 

the Attorney General, the Secretary of the Treasury, or the 

Postal Service, as the case may be, may—

(1) place the property under seal;

(2) remove the property to a place designated by him; or

(3) require that the General Services Administration take 

custody of the property and remove it, if practicable, to an 

appropriate location for disposition in accordance with law.

(d) For purposes of this section, the provisions of the customs 

laws relating to the seizure, summary and judicial forfeiture, 

condemnation of property for violation of the customs laws, 

the disposition of such property or the proceeds from the 

sale of such property under this section, the remission or 

mitigation of such forfeitures, and the compromise of claims 

(19 U.S.C. 1602 et seq.), insofar as they are applicable and 

not inconsistent with the provisions of this section, shall 

apply to seizures and forfeitures incurred, or alleged to 

have been incurred, under this section, except that such 

duties as are imposed upon the customs officer or any 
34 • Asset Forfeiture Statutes

18 U.S.C. § 981 

other person with respect to the seizure and forfeiture of 

property under the customs laws shall be performed with 

respect to seizures and forfeitures of property under this 

section by such officers, agents, or other persons as may be 

authorized or designated for that purpose by the Attorney 

General, the Secretary of the Treasury, or the Postal Service, 

as the case may be. The Attorney General shall have sole 

responsibility for disposing of petitions for remission or 

mitigation with respect to property involved in a judicial 

forfeiture proceeding.

(e) Notwithstanding any other provision of the law, except 

section 3 of the Anti Drug Abuse Act of 1986, the Attorney 

General, the Secretary of the Treasury, or the Postal Service, 

as the case may be, is authorized to retain property forfeited 

pursuant to this section, or to transfer such property on such 

terms and conditions as he may determine—

(1) to any other Federal agency;

(2) to any State or local law enforcement agency which 

participated directly in any of the acts which led to the 

seizure or forfeiture of the property;

(3) in the case of property referred to in subsection (a)(1)

(C), to any Federal financial institution regulatory agency—

(A) to reimburse the agency for payments to claimants 

or creditors of the institution; and

(B) to reimburse the insurance fund of the agency for 

losses suffered by the fund as a result of the receivership 

or liquidation;

(4) in the case of property referred to in subsection (a)

(1)(C), upon the order of the appropriate Federal financial 

institution regulatory agency, to the financial institution as 

restitution, with the value of the property so transferred to 

be set off against any amount later recovered by the financial 

institution as compensatory damages in any State or Federal 

proceeding;

(5) in the case of property referred to in subsection (a)(1)

(C), to any Federal financial institution regulatory agency, 

to the extent of the agency’s contribution of resources to, 

or expenses involved in, the seizure and forfeiture, and the 

investigation leading directly to the seizure and forfeiture, 

of such property;

(6) as restoration to any victim of the offense giving rise 

to the forfeiture, including, in the case of a money laundering 

offense, any offense constituting the underlying specified 

unlawful activity; or

(7) In the case of property referred to in subsection (a)(1)

(D), to the Resolution Trust Corporation, the Federal Deposit 

Insurance Corporation, or any other Federal financial 

institution regulatory agency (as defined in section 8(e)(7)

(D) of the Federal Deposit Insurance Act).

The Attorney General, the Secretary of the Treasury, or 

the Postal Service, as the case may be, shall ensure the equitable transfer pursuant to paragraph (2) of any forfeited 

property to the appropriate State or local law enforcement 

agency so as to reflect generally the contribution of any 

such agency participating directly in any of the acts which 

led to the seizure or forfeiture of such property. A decision 

by the Attorney General, the Secretary of the Treasury, or 

the Postal Service pursuant to paragraph (2) shall not be 

subject to review. The United States shall not be liable in 

any action arising out of the use of any property the custody 

of which was transferred pursuant to this section to any nonFederal agency. The Attorney General, the Secretary of the 

Treasury, or the Postal Service may order the dis-continuance 

of any forfeiture proceedings under this section in favor of 

the institution of forfeiture proceedings by State or local 

authorities under an appropriate State or local statute. After 

the filing of a complaint for forfeiture under this section, 

the Attorney General may seek dismissal of the complaint 

in favor of forfeiture proceedings under State or local law. 

Whenever forfeiture proceedings are discontinued by the 

United States in favor of State or local proceedings, the 

United States may transfer custody and possession of the 

seized property to the appropriate State or local official 

immediately upon the initiation of the proper actions by such 

officials. Whenever forfeiture proceedings are discontinued 

by the United States in favor of State or local proceedings, 

notice shall be sent to all known interested parties advising 

them of the discontinuance or dismissal. The United States 

shall not be liable in any action arising out of the seizure, 

detention, and transfer of seized property to State or local 

officials. The United States shall not be liable in any action 

arising out of a transfer under paragraph (3), (4), or (5) of 

this subsection.

(f) All right, title, and interest in property described in 

subsection (a) of this section shall vest in the United States 

upon commission of the act giving rise to forfeiture under 

this section.

(g)(1) Upon the motion of the United States, the court shall 

stay the civil forfeiture proceeding if the court determines 

that civil discovery will adversely affect the ability of the 

Government to conduct a related criminal investigation or 

the prosecution of a related criminal case.

(2) Upon the motion of a claimant, the court shall stay 

the civil forfeiture proceeding with respect to that claimant 

if the court determines that—

(A) the claimant is the subject of a related criminal 

investigation or case;

(B) the claimant has standing to assert a claim in the 

civil forfeiture proceeding; and
Asset Forfeiture Statutes • 35

18 U.S.C. § 981

(C) continuation of the forfeiture proceeding will 

burden the right of the claimant against self-incrimination 

in the related investigation or case.

(3) With respect to the impact of civil discovery described 

in paragraphs (1) and (2), the court may determine that a stay 

is unnecessary if a protective order limiting discovery would 

protect the interest of one party without unfairly limiting the 

ability of the opposing party to pursue the civil case. In no 

case, however, shall the court impose a pro-tective order as 

an alternative to a stay if the effect of such protective order 

would be to allow one party to pursue discovery while the 

other party is substantially unable to do so.

(4) In this subsection, the terms “related criminal 

case” and “related criminal investigation” mean an actual 

prosecution or investigation in progress at the time at which 

the request for the stay, or any subsequent motion to lift 

the stay is made. In determining whether a criminal case or 

investigation is “related” to a civil forfeiture proceeding, 

the court shall consider the degree of similarity between the 

parties, witnesses, facts, and circumstances involved in the 

two proceedings, without requiring an identity with respect 

to any one or more factors.

(5) In requesting a stay under paragraph (1), the 

Government may, in appropriate cases, submit evidence 

ex parte in order to avoid disclosing any matter that may 

adversely affect an ongoing criminal investigation or 

pending criminal trial.

(6) Whenever a civil forfeiture proceeding is stayed 

pursuant to this subsection, the court shall enter any order 

nec-essary to preserve the value of the property or to protect 

the rights of lienholders or other persons with an interest in 

the property while the stay is in effect.

(7) A determination by the court that the claimant has 

standing to request a stay pursuant to paragraph (2) shall 

apply only to this subsection and shall not preclude the 

Government from objecting to the standing of the claimant 

by dispositive motion or at the time of trial.

(h) In addition to the venue provided for in section 1395 of 

title 28 or any other provision of law, in the case of property 

of a defendant charged with a violation that is the basis for 

forfeiture of the property under this section, a proceeding for 

forfeiture under this section may be brought in the judicial 

district in which the defendant owning such property is found 

or in the judicial district in which the criminal prosecution 

is brought.

(i)(1) Whenever property is civilly or criminally forfeited 

under this chapter, the Attorney General or the Secretary of 

the Treasury, as the case may be, may transfer the forfeited 

personal property or the proceeds of the sale of any forfeited 

personal or real property to any foreign country which 

participated directly or indirectly in the seizure or forfeiture 

of the property, if such a transfer—

(A) has been agreed to by the Secretary of State;

(B) is authorized in an international agreement 

between the United States and the foreign country; and

(C) is made to a country which, if applicable, has been 

certified under section 481(h) of the Foreign Assistance 

Act of 1961.

A decision by the Attorney General or the Secretary 

of the Treasury pursuant to this paragraph shall not be 

subject to review. The foreign country shall, in the event 

of a transfer of property or proceeds of sale of property 

under this subsection, bear all expenses incurred by the 

United States in the seizure, maintenance, inventory, 

storage, forfeiture, and disposition of the property, and 

all transfer costs. The payment of all such expenses, and 

the transfer of assets pursuant to this paragraph, shall be 

upon such terms and conditions as the Attorney General 

or the Secretary of the Treasury may, in his discretion, set.

(2) The provisions of this section shall not be construed 

as limiting or superseding any other authority of the United 

States to provide assistance to a foreign country in obtaining 

property related to a crime committed in the foreign country, 

including property which is sought as evidence of a crime 

committed in the foreign country.

(3) A certified order or judgment of forfeiture by a court 

of competent jurisdiction of a foreign country concerning 

property which is the subject of forfeiture under this section 

and was determined by such court to be the type of property 

described in subsection (a)(1)(B) of this section, and any 

certified recordings or transcripts of testimony taken in 

a foreign judicial proceeding concerning such order or 

judgment of forfeiture, shall be admissible in evidence in a 

proceeding brought pursuant to this section. Such certified 

order or judgment of forfeiture, when admitted into evidence, shall constitute probable cause that the property 

forfeited by such order or judgment of forfeiture is subject 

to forfeiture under this section and creates a rebuttable 

presumption of the forfeitability of such property under 

this section.

(4) A certified order or judgment of conviction by a court 

of competent jurisdiction of a foreign country concerning an 

unlawful drug activity which gives rise to forfeiture under 

this section and any certified recordings or transcripts of 

testimony taken in a foreign judicial proceeding concerning 

such order or judgment of conviction shall be admissible in 

evidence in a proceeding brought pursuant to this section. 

Such certified order or judgment of conviction, when 

admitted into evidence, creates a rebuttable presumption 
36 • Asset Forfeiture Statutes

18 U.S.C. § 981 

that the unlawful drug activity giving rise to forfeiture under 

this section has occurred.

(5) The provisions of paragraphs (3) and (4) of this 

subsection shall not be construed as limiting the admissibility 

of any evidence otherwise admissible, nor shall they limit the 

ability of the United States to establish probable cause that 

property is subject to forfeiture by any evidence otherwise 

admissible.

(j) For purposes of this section—

(1) the term “Attorney General” means the Attorney 

General or his delegate; and

(2) the term “Secretary of the Treasury” means the 

Secretary of the Treasury or his delegate.

(k) Interbank accounts.—

(1) In general.—

(A) In general.—For the purpose of a forfeiture 

under this section or under the Controlled Substances 

Act (21 U.S.C. 801 et seq.), if funds are deposited into 

an account at a foreign financial institution (as defined 

in section 984(c)(2)(A) of this title), and that foreign 

financial institution (as defined in section 984(c)(2)(A) 

of this title) has an interbank account in the United States 

with a covered financial institution (as defined in section 

5318(j)(1) of title 31), the funds shall be deemed to have 

been deposited into the interbank account in the United 

States, and any restraining order, seizure warrant, or arrest 

warrant in rem regarding the funds may be served on the 

covered financial institution, and funds in the interbank 

account, up to the value of the funds deposited into the 

account at the foreign financial institution (as defined 

in section 984(c)(2)(A) of this title), may be restrained, 

seized, or arrested.

(B) Authority to suspend.—The Attorney General, 

in consultation with the Secretary of the Treasury, may 

suspend or terminate a forfeiture under this section if 

the Attorney General determines that a conflict of law 

exists between the laws of the jurisdiction in which the 

foreign financial institution (as defined in section 984(c)

(2)(A) of this title) is located and the laws of the United 

States with respect to liabilities arising from the restraint, 

seizure, or arrest of such funds, and that such suspension 

or termination would be in the interest of justice and 

would not harm the national interests of the United States.

(2) No requirement for Government to trace funds.—If a 

forfeiture action is brought against funds that are re-strained, 

seized, or arrested under paragraph (1), it shall not be 

necessary for the Government to establish that the funds are 

directly traceable to the funds that were deposited into the 

foreign financial institution (as defined in section 984(c)(2)

(A) of this title), nor shall it be necessary for the Government 

to rely on the application of section 984.

(3) Claims brought by owner of the funds.—If a forfeiture 

action is instituted against funds restrained, seized, or 

arrested under paragraph (1), the owner of the funds 

deposited into the account at the foreign financial institution 

(as defined in section 984(c)(2)(A) of this title) may contest 

the forfeiture by filing a claim under section 983.

(4) Definitions.—For purposes of this subsection, the 

following definitions shall apply:

(A) Interbank account.—The term “interbank account” 

has the same meaning as in section 984(c)(2)(B).

(B) Owner.—

(i) In general.—Except as provided in clause (ii), 

the term “owner”—

(I) means the person who was the owner, as 

that term is defined in section 983(d)(6), of the 

funds that were deposited into the foreign financial 

institution (as defined in section 984(c)(2)(A) of 

this title) at the time such funds were deposited; and

(II) does not include either the foreign financial 

institution (as defined in section 984(c)(2)(A) of 

this title) or any financial institution acting as an 

intermediary in the transfer of the funds into the 

interbank account.

(ii) Exception.—The foreign financial institution 

(as defined in section 984(c)(2)(A) of this title) may 

be con-sidered the “owner” of the funds (and no other 

person shall qualify as the owner of such funds) only 

if—

(I) the basis for the forfeiture action is 

wrongdoing committed by the foreign financial 

institution (as defined in section 984(c)(2)(A) of 

this title); or

(II) the foreign financial institution (as defined 

in section 984(c)(2)(A) of this title) establishes, 

by a pre-ponderance of the evidence, that prior 

to the restraint, seizure, or arrest of the funds, the 

foreign financial institution (as defined in section 

984(c)(2)(A) of this title) had discharged all or part 

of its obligation to the prior owner of the funds, 

in which case the foreign financial institution (as 

defined in section 984(c)(2)(A) of this title) shall 

be deemed the owner of the funds to the extent of 

such discharged obligation.

Amended: Strengthening and Focusing Enforcement to Deter 

Organized Stealing and Enhance Safety Act of 2012, Pub. L. 

112-186, § 3, Oct. 5, 2012, 126 Stat. 1428.
Asset Forfeiture Statutes • 37

18 U.S.C. § 982

18 U.S.C. § 982. Criminal forfeiture.

(a)(1) The court, in imposing sentence on a person convicted 

of an offense in violation of section 1956, 1957, or 1960 of 

this title, shall order that the person forfeit to the United States 

any property, real or personal, involved in such offense, or 

any property traceable to such property.

(2) The court, in imposing sentence on a person convicted 

of a violation of, or a conspiracy to violate—

(A) section 215, 656, 657, 1005, 1006, 1007, 1014, 

1341, 1343, or 1344 of this title, affecting a financial 

institution, or

(B) section 471, 472, 473, 474, 476, 477, 478, 479, 480, 

481, 485, 486, 487, 488, 501, 502, 510, 542, 545, 555, 842, 

844, 1028, 1029, or 1030 of this title,

shall order that the person forfeit to the United States 

any property constituting, or derived from, proceeds the 

person obtained directly or indirectly, as the result of such 

violation.

(3) The court, in imposing a sentence on a person convicted 

of an offense under—

(A) section 666(a)(1) (relating to Federal program 

fraud);

(B) section 1001 (relating to fraud and false statements);

(C) section 1031 (relating to major fraud against the 

United States);

(D) section 1032 (relating to concealment of assets 

from conservator, receiver, or liquidating agent of insured 

financial institution);

(E) section 1341 (relating to mail fraud); or

(F) section 1343 (relating to wire fraud),

involving the sale of assets acquired or held by the 

the [FN1] Federal Deposit Insurance Corporation, as 

conservator or receiver for a financial institution or any 

other conservator for a financial institution appointed 

by the Office of the Comptroller of the Currency, or the 

National Credit Union Administration, as conservator or 

liquidating agent for a financial institution, shall order 

that the person forfeit to the United States any property, 

real or personal, which represents or is traceable to the 

gross receipts obtained, directly or indirectly, as a result 

of such violation.

(4) With respect to an offense listed in subsection (a)(3) 

committed for the purpose of executing or attempting to 

execute any scheme or artifice to defraud, or for obtaining 

money or property by means of false or fraudulent statements, 

pretenses, representations, or promises, the gross receipts of 

such an offense shall include any property, real or personal, 

tangible or intangible, which is obtained, directly or indirectly, 

as a result of such offense.

(5) The court, in imposing sentence on a person convicted 

of a violation or conspiracy to violate—

(A) section 511 (altering or removing motor vehicle 

identification numbers);

(B) section 553 (importing or exporting stolen motor 

vehicles);

(C) section 2119 (armed robbery of automobiles);

(D) section 2312 (transporting stolen motor vehicles in 

interstate commerce); or

(E) section 2313 (possessing or selling a stolen motor 

vehicle that has moved in interstate commerce);

shall order that the person forfeit to the United States 

any property, real or personal, which represents or is 

traceable to the gross proceeds obtained, directly or 

indirectly, as a result of such violation.

(6)(A) The court, in imposing sentence on a person 

convicted of a violation of, or conspiracy to violate, section 

274(a), 274A(a)(1), or 274A(a)(2) of the Immigration and 

Nationality Act or section 555, 1425, 1426, 1427, 1541, 

1542, 1543, 1544, or 1546 of this title, or a violation of, or 

conspiracy to violate, section 1028 of this title if committed in 

connection with passport or visa issuance or use, shall order 

that the person forfeit to the United States, regardless of any 

provision of State law—

(i) any conveyance, including any vessel, vehicle, or 

aircraft used in the commission of the offense of which 

the person is convicted; and

(ii) any property real or personal—

(I) that constitutes, or is derived from or is 

traceable to the proceeds obtained directly or 

indirectly from the commission of the offense of 

which the person is convicted; or

(II) that is used to facilitate, or is intended to be 

used to facilitate, the commission of the offense of 

which the person is convicted.

(B) The court, in imposing sentence on a person 

described in subparagraph (A), shall order that the person 

forfeit to the United States all property described in that 

subparagraph.

(7) The court, in imposing sentence on a person convicted 

of a Federal health care offense, shall order the person to 

forfeit property, real or personal, that constitutes or is derived, 

directly or indirectly, from gross proceeds traceable to the 

commission of the offense.
38 • Asset Forfeiture Statutes

18 U.S.C. § 983 

(8) The court, in sentencing a defendant convicted of an 

offense under section 1028, 1029, 1341, 1342, 1343, or 1344, 

or of a conspiracy to commit such an offense, if the offense 

involves telemarketing (as that term is defined in section 

2325), shall order that the defendant forfeit to the United 

States any real or personal property—

(A) used or intended to be used to commit, to facilitate, 

or to promote the commission of such offense; and

(B) constituting, derived from, or traceable to the gross 

proceeds that the defendant obtained directly or indirectly 

as a result of the offense.

(b)(1) The forfeiture of property under this section, including 

any seizure and disposition of the property and any related 

judicial or administrative proceeding, shall be governed by 

the provisions of section 413 (other than subsection (d) of 

that section) of the Comprehensive Drug Abuse Prevention 

and Control Act of 1970 (21 U.S.C. 853).

(2) The substitution of assets provisions of subsection 

413(p) shall not be used to order a defendant to forfeit assets 

in place of the actual property laundered where such defendant 

acted merely as an intermediary who handled but did not retain 

the property in the course of the money laundering offense 

unless the defendant, in committing the offense or offenses 

giving rise to the forfeiture, conducted three or more separate 

transactions involving a total of $100,000 or more in any 

twelve month period.

Amended: Border Tunnel Prevention Act, Pub. L. 112-127, § 5, 

June 5, 2012, 126 Stat. 371.

18 U.S.C. § 983. General rules for civil 

forfeiture proceedings.

(a) Notice; claim; complaint.—

(1)(A)(i) Except as provided in clauses (ii) through (v), 

in any nonjudicial civil forfeiture proceeding under a civil 

forfeiture statute, with respect to which the Government is 

required to send written notice to interested parties, such 

notice shall be sent in a manner to achieve proper notice as 

soon as practicable, and in no case more than 60 days after 

the date of the seizure.

(ii) No notice is required if, before the 60-day period 

expires, the Government files a civil judicial forfeiture 

action against the property and provides notice of that 

action as required by law.

(iii) If, before the 60-day period expires, the 

Government does not file a civil judicial forfeiture 

action, but does obtain a criminal indictment containing 

an allegation that the property is subject to forfeiture, 

the Government shall either—

(I) send notice within the 60 days and continue 

the nonjudicial civil forfeiture proceeding under 

this section; or

(II) terminate the nonjudicial civil forfeiture 

proceeding, and take the steps necessary to preserve 

its right to maintain custody of the property as 

provided in the applicable criminal forfeiture statute.

(iv) In a case in which the property is seized by a 

State or local law enforcement agency and turned over 

to a Federal law enforcement agency for the purpose 

of forfeiture under Federal law, notice shall be sent not 

more than 90 days after the date of seizure by the State 

or local law enforcement agency.

(v) If the identity or interest of a party is not 

determined until after the seizure or turnover but is 

determined before a declaration of forfeiture is entered, 

notice shall be sent to such interested party not later than 

60 days after the determination by the Government of 

the identity of the party or the party’s interest.

(B) A supervisory official in the headquarters office 

of the seizing agency may extend the period for sending 

notice under subparagraph (A) for a period not to exceed 

30 days (which period may not be further extended except 

by a court), if the official determines that the conditions in 

subparagraph (D) are present.

(C) Upon motion by the Government, a court may 

extend the period for sending notice under subparagraph 

(A) for a period not to exceed 60 days, which period may 

be further extended by the court for 60-day periods, as 

necessary, if the court determines, based on a written 

certification of a supervisory official in the headquarters 

office of the seizing agency, that the conditions in 

subparagraph (D) are present. 

(D) The period for sending notice under this paragraph 

may be extended only if there is reason to believe that 

notice may have an adverse result, including—

(i) endangering the life or physical safety of an 

individual;

(ii) flight from prosecution;

(iii) destruction of or tampering with evidence;

(iv) intimidation of potential witnesses; or

(v) otherwise seriously jeopardizing an investigation 

or unduly delaying a trial.

(E) Each of the Federal seizing agencies conducting 

nonjudicial forfeitures under this section shall report 

periodically to the Committees on the Judiciary of the 

House of Representatives and the Senate the number of 
Asset Forfeiture Statutes • 39

18 U.S.C. § 983

occasions when an extension of time is granted under 

subparagraph (B).

(F) If the Government does not send notice of a seizure 

of property in accordance with subparagraph (A) to 

the person from whom the property was seized, and no 

extension of time is granted, the Government shall return 

the property to that person without prejudice to the right 

of the Government to commence a forfeiture proceeding 

at a later time. The Government shall not be required to 

return contraband or other property that the person from 

whom the property was seized may not legally possess.

(2)(A) Any person claiming property seized in a nonjudicial 

civil forfeiture proceeding under a civil forfeiture statute may 

file a claim with the appropriate official after the seizure.

(B) A claim under subparagraph (A) may be filed not 

later than the deadline set forth in a personal notice letter 

(which deadline may be not earlier than 35 days after the 

date the letter is mailed), except that if that letter is not 

received, then a claim may be filed not later than 30 days 

after the date of final publication of notice of seizure.

(C) A claim shall—

(i) identify the specific property being claimed;

(ii) state the claimant’s interest in such property; and

(iii) be made under oath, subject to penalty of 

perjury.

(D) A claim need not be made in any particular form. 

Each Federal agency conducting nonjudicial forfeitures 

under this section shall make claim forms generally 

available on request, which forms shall be written in easily 

understandable language.

(E) Any person may make a claim under subparagraph 

(A) without posting bond with respect to the property 

which is the subject of the claim.

(3)(A) Not later than 90 days after a claim has been 

filed, the Government shall file a complaint for forfeiture in 

the manner set forth in the Supplemental Rules for Certain 

Admiralty and Maritime Claims or return the property pending 

the filing of a complaint, except that a court in the district in 

which the complaint will be filed may extend the period for 

filing a complaint for good cause shown or upon agreement 

of the parties.

(B) If the Government does not—

(i) file a complaint for forfeiture or return the 

property, in accordance with subparagraph (A); or

(ii) before the time for filing a complaint has 

expired—

(I) obtain a criminal indictment containing an 

allegation that the property is subject to forfeiture; 

and

(II) take the steps necessary to preserve its right 

to maintain custody of the property as provided in 

the applicable criminal forfeiture statute,

the Government shall promptly release the property pursuant 

to regulations promulgated by the Attorney General, and may 

not take any further action to effect the civil forfeiture of such 

property in connection with the underlying offense.

(C) In lieu of, or in addition to, filing a civil forfeiture 

complaint, the Government may include a forfeiture 

allegation in a criminal indictment. If criminal forfeiture 

is the only forfeiture proceeding commenced by the 

Government, the Government’s right to continued 

possession of the property shall be governed by the 

applicable criminal forfeiture statute.

(D) No complaint may be dismissed on the ground that 

the Government did not have adequate evidence at the 

time the complaint was filed to establish the forfeitability 

of the property.

(4)(A) In any case in which the Government files in 

the appropriate United States district court a complaint 

for forfeiture of property, any person claiming an interest 

in the seized property may file a claim asserting such 

person’s interest in the property in the manner set forth in 

the Supplemental Rules for Certain Admiralty and Maritime 

Claims, except that such claim may be filed not later than 30 

days after the date of service of the Government’s complaint 

or, as applicable, not later than 30 days after the date of final 

publication of notice of the filing of the complaint.

(B) A person asserting an interest in seized property, in 

accordance with subparagraph (A), shall file an answer to 

the Government’s complaint for forfeiture not later than 

20 days after the date of the filing of the claim.

(b) Representation.—

(1)(A) If a person with standing to contest the forfeiture of 

property in a judicial civil forfeiture proceeding under a civil 

forfeiture statute is financially unable to obtain representation 

by counsel, and the person is represented by counsel appointed 

under section 3006A of this title in connection with a related 

criminal case, the court may authorize counsel to represent 

that person with respect to the claim.

(B) In determining whether to authorize counsel to 

represent a person under subparagraph (A), the court shall 

take into account such factors as—

(i) the person’s standing to contest the forfeiture; and
40 • Asset Forfeiture Statutes

18 U.S.C. § 983 

(ii) whether the claim appears to be made in good 

faith.

(2)(A) If a person with standing to contest the forfeiture of 

property in a judicial civil forfeiture proceeding under a civil 

forfeiture statute is financially unable to obtain representation 

by counsel, and the property subject to forfeiture is real 

property that is being used by the person as a primary 

residence, the court, at the request of the person, shall insure 

that the person is represented by an attorney for the Legal 

Services Corporation with respect to the claim.

(B)(i) At appropriate times during a representation 

under subparagraph (A), the Legal Services Corporation 

shall submit a statement of reasonable attorney fees and 

costs to the court.

(ii) The court shall enter a judgment in favor of the 

Legal Services Corporation for reasonable attorney 

fees and costs submitted pursuant to clause (i) and 

treat such judgment as payable under section 2465 of 

title 28, United States Code, regardless of the outcome 

of the case.

(3) The court shall set the compensation for representation 

under this subsection, which shall be equivalent to that 

provided for court-appointed representation under section 

3006A of this title.

(c) Burden of proof.—In a suit or action brought under any 

civil forfeiture statute for the civil forfeiture of any property—

(1) the burden of proof is on the Government to establish, 

by a preponderance of the evidence, that the property is 

subject to forfeiture;

(2) the Government may use evidence gathered after 

the filing of a complaint for forfeiture to establish, by a 

preponderance of the evidence, that property is subject to 

forfeiture; and

(3) if the Government’s theory of forfeiture is that the 

property was used to commit or facilitate the commission of 

a criminal offense, or was involved in the commission of a 

criminal offense, the Government shall establish that there was 

a substantial connection between the property and the offense.

(d) Innocent owner defense.—

(1) An innocent owner’s interest in property shall not be 

forfeited under any civil forfeiture statute. The claimant shall 

have the burden of proving that the claimant is an innocent 

owner by a preponderance of the evidence.

(2)(A) With respect to a property interest in existence at the 

time the illegal conduct giving rise to forfeiture took place, 

the term “innocent owner” means an owner who—

(i) did not know of the conduct giving rise to 

forfeiture; or

(ii) upon learning of the conduct giving rise to the 

forfeiture, did all that reasonably could be expected 

under the circumstances to terminate such use of the 

property.

(B)(i) For the purposes of this paragraph, ways in which 

a person may show that such person did all that reasonably 

could be expected may include demonstrating that such 

person, to the extent permitted by law—

(I) gave timely notice to an appropriate law 

enforcement agency of information that led the 

person to know the conduct giving rise to a forfeiture 

would occur or has occurred; and

(II) in a timely fashion revoked or made a 

good faith attempt to revoke permission for those 

engaging in such conduct to use the property or 

took reasonable actions in consultation with a law 

enforcement agency to discourage or prevent the 

illegal use of the property.

(ii) A person is not required by this subparagraph to 

take steps that the person reasonably believes would 

be likely to subject any person (other than the person 

whose conduct gave rise to the forfeiture) to physical 

danger.

(3)(A) With respect to a property interest acquired after 

the conduct giving rise to the forfeiture has taken place, the 

term “innocent owner” means a person who, at the time that 

person acquired the interest in the property—

(i) was a bona fide purchaser or seller for value 

(including a purchaser or seller of goods or services 

for value); and

(ii) did not know and was reasonably without cause 

to believe that the property was subject to forfeiture.

(B) An otherwise valid claim under subparagraph (A) 

shall not be denied on the ground that the claimant gave 

nothing of value in exchange for the property if—

(i) the property is the primary residence of the 

claimant;

(ii) depriving the claimant of the property would 

deprive the claimant of the means to maintain 

reasonable shelter in the community for the claimant 

and all dependents residing with the claimant;

(iii) the property is not, and is not traceable to, the 

proceeds of any criminal offense; and

(iv) the claimant acquired his or her interest in the 

property through marriage, divorce, or legal separation, 

or the claimant was the spouse or legal dependent of 

a person whose death resulted in the transfer of the 

property to the claimant through inheritance or probate,
Asset Forfeiture Statutes • 41

18 U.S.C. § 983

(B) the moving party did not know or have reason to 

know of the seizure within sufficient time to file a timely 

claim.

(2)(A) Notwithstanding the expiration of any applicable 

statute of limitations, if the court grants a motion under 

paragraph (1), the court shall set aside the declaration of 

forfeiture as to the interest of the moving party without 

prejudice to the right of the Government to commence a 

subsequent forfeiture proceeding as to the interest of the 

moving party.

(B) Any proceeding described in subparagraph (A) shall 

be commenced—

(i) if nonjudicial, within 60 days of the entry of the 

order granting the motion; or

(ii) if judicial, within 6 months of the entry of the 

order granting the motion.

(3) A motion under paragraph (1) may be filed not later 

than 5 years after the date of final publication of notice of 

seizure of the property.

(4) If, at the time a motion made under paragraph (1) is 

granted, the forfeited property has been disposed of by the 

Government in accordance with law, the Government may 

institute proceedings against a substitute sum of money equal 

to the value of the moving party’s interest in the property at 

the time the property was disposed of.

(5) A motion filed under this subsection shall be the 

exclusive remedy for seeking to set aside a declaration of 

forfeiture under a civil forfeiture statute.

(f) Release of seized property.—

(1) A claimant under subsection (a) is entitled to immediate 

release of seized property if—

(A) the claimant has a possessory interest in the 

property;

(B) the claimant has sufficient ties to the community 

to provide assurance that the property will be available at 

the time of the trial;

(C) the continued possession by the Government 

pending the final disposition of forfeiture proceedings 

will cause substantial hardship to the claimant, such as 

preventing the functioning of a business, preventing 

an individual from working, or leaving an individual 

homeless;

(D) the claimant’s likely hardship from the continued 

possession by the Government of the seized property 

outweighs the risk that the property will be destroyed, 

damaged, lost, concealed, or transferred if it is returned to 

the claimant during the pendency of the proceeding; and

except that the court shall limit the value of any real property 

interest for which innocent ownership is recognized under this 

subparagraph to the value necessary to maintain reasonable 

shelter in the community for such claimant and all dependents 

residing with the claimant.

(4) Notwithstanding any provision of this subsection, no 

person may assert an ownership interest under this subsection 

in contraband or other property that it is illegal to possess.

(5) If the court determines, in accordance with this section, 

that an innocent owner has a partial interest in property 

otherwise subject to forfeiture, or a joint tenancy or tenancy 

by the entirety in such property, the court may enter an 

appropriate order—

(A) severing the property;

(B) transferring the property to the Government with a 

provision that the Government compensate the innocent 

owner to the extent of his or her ownership interest once a 

final order of forfeiture has been entered and the property 

has been reduced to liquid assets; or

(C) permitting the innocent owner to retain the property 

subject to a lien in favor of the Government to the extent 

of the forfeitable interest in the property.

(6) In this subsection, the term “owner”—

(A) means a person with an ownership interest in 

the specific property sought to be forfeited, including a 

leasehold, lien, mortgage, recorded security interest, or 

valid assignment of an ownership interest; and

(B) does not include—

(i) a person with only a general unsecured interest 

in, or claim against, the property or estate of another;

(ii) a bailee unless the bailor is identified and the 

bailee shows a colorable legitimate interest in the 

property seized; or

(iii) a nominee who exercises no dominion or control 

over the property.

(e) Motion to set aside forfeiture.—

(1) Any person entitled to written notice in any nonjudicial 

civil forfeiture proceeding under a civil forfeiture statute who 

does not receive such notice may file a motion to set aside a 

declaration of forfeiture with respect to that person’s interest 

in the property, which motion shall be granted if—

(A) the Government knew, or reasonably should have 

known, of the moving party’s interest and failed to take 

reasonable steps to provide such party with notice; and
42 • Asset Forfeiture Statutes

18 U.S.C. § 983 

(E) none of the conditions set forth in paragraph (8) 

applies.

(2) A claimant seeking release of property under this 

subsection must request possession of the property from the 

appropriate official, and the request must set forth the basis 

on which the requirements of paragraph (1) are met.

(3)(A) If not later than 15 days after the date of a request 

under paragraph (2) the property has not been released, the 

claimant may file a petition in the district court in which the 

complaint has been filed or, if no complaint has been filed, 

in the district court in which the seizure warrant was issued 

or in the district court for the district in which the property 

was seized.

(B) The petition described in subparagraph (A) shall 

set forth—

(i) the basis on which the requirements of paragraph 

(1) are met; and

(ii) the steps the claimant has taken to secure release 

of the property from the appropriate official.

(4) If the Government establishes that the claimant’s claim 

is frivolous, the court shall deny the petition. In responding 

to a petition under this subsection on other grounds, the 

Government may in appropriate cases submit evidence 

ex parte in order to avoid disclosing any matter that may 

adversely affect an ongoing criminal investigation or pending 

criminal trial.

(5) The court shall render a decision on a petition filed 

under paragraph (3) not later than 30 days after the date of the 

filing, unless such 30-day limitation is extended by consent of 

the parties or by the court for good cause shown.

(6) If—

(A) a petition is filed under paragraph (3); and

(B) the claimant demonstrates that the requirements of 

paragraph (1) have been met,

the district court shall order that the property be returned 

to the claimant, pending completion of proceedings by the 

Government to obtain forfeiture of the property.

(7) If the court grants a petition under paragraph (3)—

(A) the court may enter any order necessary to ensure 

that the value of the property is maintained while the 

forfeiture action is pending, including—

(i) permitting the inspection, photographing, and 

inventory of the property;

(ii) fixing a bond in accordance with rule E(5) of 

the Supplemental Rules for Certain Admiralty and 

Maritime Claims; and

(iii) requiring the claimant to obtain or maintain 

insurance on the subject property; and

(B) the Government may place a lien against the 

property or file a lis pendens to ensure that the property is 

not transferred to another person.

(8) This subsection shall not apply if the seized property—

(A) is contraband, currency, or other monetary 

instrument, or electronic funds unless such currency or 

other monetary instrument or electronic funds constitutes 

the assets of a legitimate business which has been seized;

(B) is to be used as evidence of a violation of the law;

(C) by reason of design or other characteristic, is 

particularly suited for use in illegal activities; or

(D) is likely to be used to commit additional criminal 

acts if returned to the claimant.

(g) Proportionality.—

(1) The claimant under subsection (a)(4) may petition the 

court to determine whether the forfeiture was constitutionally 

excessive.

(2) In making this determination, the court shall compare 

the forfeiture to the gravity of the offense giving rise to the 

forfeiture.

(3) The claimant shall have the burden of establishing that 

the forfeiture is grossly disproportional by a preponderance of 

the evidence at a hearing conducted by the court without a jury.

(4) If the court finds that the forfeiture is grossly 

disproportional to the offense it shall reduce or eliminate the 

forfeiture as necessary to avoid a violation of the Excessive 

Fines Clause of the Eighth Amendment of the Constitution.

(h) Civil fine.—

(1) In any civil forfeiture proceeding under a civil forfeiture 

statute in which the Government prevails, if the court finds 

that the claimant’s assertion of an interest in the property was 

frivolous, the court may impose a civil fine on the claimant 

of an amount equal to 10 percent of the value of the forfeited 

property, but in no event shall the fine be less than $250 or 

greater than $5,000.

(2) Any civil fine imposed under this subsection shall not 

preclude the court from imposing sanctions under rule 11 of 

the Federal Rules of Civil Procedure.

(3) In addition to the limitations of section 1915 of title 

28, United States Code, in no event shall a prisoner file a 

claim under a civil forfeiture statute or appeal a judgment in 

a civil action or proceeding based on a civil forfeiture statute 

if the prisoner has, on three or more prior occasions, while 

incarcerated or detained in any facility, brought an action or 
Asset Forfeiture Statutes • 43

18 U.S.C. § 984

appeal in a court of the United States that was dismissed on 

the grounds that it is frivolous or malicious, unless the prisoner 

shows extraordinary and exceptional circumstances.

(i) Civil forfeiture statute defined.—In this section, the term 

“civil forfeiture statute”—

(1) means any provision of Federal law providing for the 

forfeiture of property other than as a sentence imposed upon 

conviction of a criminal offense; and

(2) does not include—

(A) the Tariff Act of 1930 or any other provision of law 

codified in title 19;

(B) the Internal Revenue Code of 1986;

(C) the Federal Food, Drug, and Cosmetic Act 

(21 U.S.C. § 301 et seq.);

(D) the Trading with the Enemy Act (50 U.S.C. App. § 1 

et seq.) or the International Emergency Economic Powers 

Act (IEEPA) (50 U.S.C. § 1701 et seq.); or

(E) section 1 of title VI of the Act of June 15, 1917 

(40 Stat. 233; 22 U.S.C. § 401).

(j) Restraining orders; protective orders.—

(1) Upon application of the United States, the court may 

enter a restraining order or injunction, require the execution of 

satisfactory performance bonds, create receiverships, appoint 

conservators, custodians, appraisers, accountants, or trustees, 

or take any other action to seize, secure, maintain, or preserve 

the availability of property subject to civil forfeiture—

(A) upon the filing of a civil forfeiture complaint 

alleging that the property with respect to which the order 

is sought is subject to civil forfeiture; or

(B) prior to the filing of such a complaint, if, after notice 

to persons appearing to have an interest in the property 

and opportunity for a hearing, the court determines that—

(i) there is a substantial probability that the United 

States will prevail on the issue of forfeiture and that 

failure to enter the order will result in the property 

being destroyed, removed from the jurisdiction of the 

court, or otherwise made unavailable for forfeiture; and

(ii) the need to preserve the availability of the 

property through the entry of the requested order 

outweighs the hardship on any party against whom the 

order is to be entered.

(2) An order entered pursuant to paragraph (1)(B) shall be 

effective for not more than 90 days, unless extended by the 

court for good cause shown, or unless a complaint described 

in paragraph (1)(A) has been filed.

(3) A temporary restraining order under this subsection 

may be entered upon application of the United States without 

notice or opportunity for a hearing when a complaint has 

not yet been filed with respect to the property, if the United 

States demonstrates that there is probable cause to believe 

that the property with respect to which the order is sought 

is subject to civil forfeiture and that provision of notice will 

jeopardize the availability of the property for forfeiture. Such 

a temporary order shall expire not more than 14 days after the 

date on which it is entered, unless extended for good cause 

shown or unless the party against whom it is entered consents 

to an extension for a longer period. A hearing requested 

concerning an order entered under this paragraph shall be 

held at the earliest possible time and prior to the expiration 

of the temporary order.

(4) The court may receive and consider, at a hearing held 

pursuant to this subsection, evidence and information that 

would be inadmissible under the Federal Rules of Evidence.

Amended: Statutory Time-Periods Technical Amendments Act of 

2009, Pub. L. 111-16, § 3(1), May 7, 2009, 123 Stat. 1607.

18 U.S.C. § 984. Civil forfeiture of fungible 

property.

(a)(1) In any forfeiture action in rem in which the subject 

property is cash, monetary instruments in bearer form, funds 

deposited in an account in a financial institution (as defined 

in section 20 of this title), or precious metals—

(A) it shall not be necessary for the Government to 

identify the specific property involved in the offense that 

is the basis for the forfeiture; and

(B) it shall not be a defense that the property involved 

in such an offense has been removed and replaced by 

identical property.

(2) Except as provided in subsection (b), any identical 

property found in the same place or account as the property 

involved in the offense that is the basis for the forfeiture shall 

be subject to forfeiture under this section.

(b) No action pursuant to this section to forfeit property 

not traceable directly to the offense that is the basis for the 

forfeiture may be commenced more than 1 year from the date 

of the offense.

(c)(1) Subsection (a) does not apply to an action against funds 

held by a financial institution in an interbank account unless 

the account holder knowingly engaged in the offense that is 

the basis for the forfeiture.

(2) In this subsection—
44 • Asset Forfeiture Statutes

18 U.S.C. § 985 

(A) the term “financial institution” includes a foreign 

bank (as defined in section 1(b)(7) of the International 

Banking Act of 1978 (12 U.S.C. § 3101(b)(7)); and

(B) the term “interbank account” means an account 

held by one financial institution at another financial 

institution primarily for the purpose of facilitating customer 

transactions.

(d) Nothing in this section may be construed to limit the ability 

of the Government to forfeit property under any provision 

of law if the property involved in the offense giving rise to 

the forfeiture or property traceable thereto is available for 

forfeiture.

Amended: Civil Asset Forfeiture Reform Act (CAFRA) of 2000, 

Pub. L. 106-185, § 13(a), Apr. 25, 2000, 114 Stat. 202, 218.

18 U.S.C. § 985. Civil forfeiture of real property.

(a) Notwithstanding any other provision of law, all civil 

forfeitures of real property and interests in real property shall 

proceed as judicial forfeitures.

(b)(1) Except as provided in this section—

(A) real property that is the subject of a civil forfeiture 

action shall not be seized before entry of an order of 

forfeiture; and

(B) the owners or occupants of the real property shall 

not be evicted from, or otherwise deprived of the use and 

enjoyment of, real property that is the subject of a pending 

forfeiture action.

(2) The filing of a lis pendens and the execution of a writ 

of entry for the purpose of conducting an inspection and 

inventory of the property shall not be considered a seizure 

under this subsection.

(c)(1) The Government shall initiate a civil forfeiture action 

against real property by—

(A) filing a complaint for forfeiture;

(B) posting a notice of the complaint on the property; 

and

(C) serving notice on the property owner, along with a 

copy of the complaint.

(2) If the property owner cannot be served with the notice 

under paragraph (1) because the owner—

(A) is a fugitive;

(B) resides outside the United States and efforts at 

service pursuant to rule 4 of the Federal Rules of Civil 

Procedure are unavailing; or

(C) cannot be located despite the exercise of due 

diligence, 

constructive service may be made in accordance with the 

laws of the State in which the property is located.

(3) If real property has been posted in accordance with this 

subsection, it shall not be necessary for the court to issue an 

arrest warrant in rem, or to take any other action to establish 

in rem jurisdiction over the property.

(d)(1) Real property may be seized prior to the entry of an 

order of forfeiture if—

(A) the Government notifies the court that it intends to 

seize the property before trial; and

(B) the court—

(i) issues a notice of application for warrant, causes 

the notice to be served on the property owner and posted 

on the property, and conducts a hearing in which the 

property owner has a meaningful opportunity to be 

heard; or

(ii) makes an ex parte determination that there is 

probable cause for the forfeiture and that there are 

exigent circumstances that permit the Government 

to seize the property without prior notice and an 

opportunity for the property owner to be heard.

(2) For purposes of paragraph (1)(B)(ii), to establish 

exigent circumstances, the Government shall show that less 

restrictive measures such as a lis pendens, restraining order, or 

bond would not suffice to protect the Government’s interests 

in preventing the sale, destruction, or continued unlawful use 

of the real property.

(e) If the court authorizes a seizure of real property under 

subsection (d)(1)(B)(ii), it shall conduct a prompt postseizure hearing during which the property owner shall have 

an opportunity to contest the basis for the seizure.

(f) This section—

(1) applies only to civil forfeitures of real property and 

interests in real property;

(2) does not apply to forfeitures of the proceeds of the 

sale of such property or interests, or of money or other assets 

intended to be used to acquire such property or interests; and

(3) shall not affect the authority of the court to enter a 

restraining order relating to real property.

Enacted: Civil Asset Forfeiture Reform Act (CAFRA) of 2000, 

Pub. L. 106-185, § 7(a), Apr. 25, 2000, 114 Stat. 202, 214.
Asset Forfeiture Statutes • 45

18 U.S.C. § 987

18 U.S.C. § 986. Subpoenas for bank records.

(a) At any time after the commencement of any action for 

forfeiture in rem brought by the United States under section 

1956, 1957, or 1960 of this title, section 5322 or 5324 of title 

31, United States Code, or the Controlled Substances Act, any 

party may request the Clerk of the Court in the district in which 

the proceeding is pending to issue a subpoena duces tecum to 

any financial institution, as defined in section 5312(a) of title 

31, United States Code, to produce books, records and any 

other documents at any place designated by the requesting 

party. All parties to the proceeding shall be notified of the 

issuance of any such subpoena. The procedures and limitations 

set forth in section 985 of this title shall apply to subpoenas 

issued under this section.

(b) Service of a subpoena issued pursuant to this section shall 

be by certified mail. Records produced in response to such 

a subpoena may be produced in person or by mail, common 

carrier, or such other method as may be agreed upon by the 

party requesting the subpoena and the custodian of records. 

The party requesting the subpoena may require the custodian 

of records to submit an affidavit certifying the authenticity 

and completeness of the records and explaining the omission 

of any record called for in the subpoena.

(c) Nothing in this section shall preclude any party from 

pursuing any form of discovery pursuant to the Federal Rules 

of Civil Procedure.

(d) Access to records in bank secrecy jurisdictions.—

(1) In general.—In any civil forfeiture case, or in any 

ancillary proceeding in any criminal forfeiture case governed 

by section 413(n) of the Controlled Substances Act (21 U.S.C. 

§ 853(n)), in which—

(A) financial records located in a foreign country may 

be material—

(i) to any claim or to the ability of the Government 

to respond to such claim; or

(ii) in a civil forfeiture case, to the ability of the 

Government to establish the forfeitability of the 

property; and

(B) it is within the capacity of the claimant to waive the 

claimant’s rights under applicable financial secrecy laws, 

or to obtain the records so that such records can be made 

available notwithstanding such secrecy laws,

the refusal of the claimant to provide the records in response 

to a discovery request or to take the action necessary otherwise 

to make the records available shall be grounds for judicial 

sanctions, up to and including dismissal of the claim with 

prejudice.

(2) Privilege.—This subsection shall not affect the right of 

the claimant to refuse production on the basis of any privilege 

guaranteed by the Constitution of the United States or any 

other provision of Federal law.

Amended: Civil Asset Forfeiture Reform Act (CAFRA) of 2000, 

Pub. L. 106-185, § 17, Apr. 25, 2000, 114 Stat. 202, 221.

18 U.S.C. § 987. Anti-terrorist forfeiture 

protection.

(a) Right to contest.—An owner of property that is confiscated 

under any provision of law relating to the confiscation of 

assets of suspected international terrorists, may contest that 

confiscation by filing a claim in the manner set forth in the 

Federal Rules of Civil Procedure (Supplemental Rules for 

Certain Admiralty and Maritime Claims), and asserting as 

an affirmative defense that—

(1) the property is not subject to confiscation under such 

provision of law; or

(2) the innocent owner provisions of section 983(d) of title 

18, United States Code, apply to the case.

(b) Evidence.—In considering a claim filed under this section, 

a court may admit evidence that is otherwise inadmissible 

under the Federal Rules of Evidence, if the court determines 

that the evidence is reliable, and that compliance with the 

Federal Rules of Evidence may jeopardize the national 

security interests of the United States.

(c) Clarifications.—

(1) Protection of rights.—The exclusion of certain 

provisions of Federal law from the definition of the term ‘civil 

forfeiture statute’ in section 983(i) of title 18, United States 

Code, shall not be construed to deny an owner of property 

the right to contest the confiscation of assets of suspected 

international terrorists under—

(A) subsection (a) of this section;

(B) the Constitution; or

(C) subchapter II of chapter 5 of title 5, United States 

Code (commonly known as the “Administrative Procedure 

Act”).

(2) Savings clause.—Nothing in this section shall limit 

or otherwise affect any other remedies that may be available 

to an owner of property under section 983 of title 18, United 

States Code, or any other provision of law.

Added: USA Patriot Improvement and Reauthorization Act of 

2005, Pub. L. 109-177, Title IV, § 406(b)(1)(B), Mar. 9, 2006, 

120 Stat. 192, 244.
46 • Asset Forfeiture Statutes

18 U.S.C. § 1028 

18 U.S.C. § 1028. Fraud and related activity 

in connection with identification documents, 

authentication features, and information.

(a) Whoever, in a circumstance described in subsection (c) 

of this section—

(1) knowingly and without lawful authority produces an 

identification document, authentication feature, or a false 

identification document;

(2) knowingly transfers an identification document, 

authentication feature, or a false identification document 

knowing that such document or feature was stolen or produced 

without lawful authority;

(3) knowingly possesses with intent to use unlawfully or 

transfer unlawfully five or more identification documents 

(other than those issued lawfully for the use of the possessor), 

authentication features, or false identification documents;

(4) knowingly possesses an identification document 

(other than one issued lawfully for the use of the possessor), 

authentication feature, or a false identification document, 

with the intent such document or feature be used to defraud 

the United States;

(5) knowingly produces, transfers, or possesses a 

document-making implement or authentication feature with 

the intent such document-making implement or authentication 

feature will be used in the production of a false identification 

document or another document-making implement or 

authentication feature which will be so used;

(6) knowingly possesses an identification document or 

authentication feature that is or appears to be an identification 

document or authentication feature of the United States or a 

sponsoring entity of an event designated as a special event 

of national significance which is stolen or produced without 

lawful authority knowing that such document or feature was 

stolen or produced without such authority;

(7) knowingly transfers, possesses, or uses, without lawful 

authority, a means of identification of another person with 

the intent to commit, or to aid or abet, or in connection with, 

any unlawful activity that constitutes a violation of Federal 

law, or that constitutes a felony under any applicable State 

or local law; or

(8) knowingly traffics in false or actual authentication 

features for use in false identification documents, documentmaking implements, or means of identification; 

shall be punished as provided in subsection (b) of this section. 

(b) The punishment for an offense under subsection (a) of 

this section is—

(1) except as provided in paragraphs (3) and (4), a fine 

under this title or imprisonment for not more than 15 years, 

or both, if the offense is—

(A) the production or transfer of an identification 

document, authentication feature, or false identification 

document that is or appears to be—

(i) an identification document or authentication 

feature issued by or under the authority of the United 

States; or

(ii) a birth certificate, or a driver’s license or personal 

identification card;

(B) the production or transfer of more than five 

identification documents, authentication features, or false 

identification documents;

(C) an offense under paragraph (5) of such subsection; or

(D) an offense under paragraph (7) of such subsection 

that involves the transfer, possession, or use of 1 or more 

means of identification if, as a result of the offense, any 

individual committing the offense obtains anything of value 

aggregating $1,000 or more during any 1-year period;

(2) except as provided in paragraphs (3) and (4), a fine 

under this title or imprisonment for not more than 5 years, or 

both, if the offense is—

(A) any other production, transfer, or use of a means of 

identification, an identification document, authentication 

features, or a false identification document; or

(B) an offense under paragraph (3) or (7) of such 

subsection;

(3) a fine under this title or imprisonment for not more than 

20 years, or both, if the offense is committed—

(A) to facilitate a drug trafficking crime (as defined in 

section 929(a)(2));

(B) in connection with a crime of violence (as defined 

in section 924(c)(3)); or

(C) after a prior conviction under this section becomes 

final;

(4) a fine under this title or imprisonment for not more than 

30 years, or both, if the offense is committed to facilitate an 

act of domestic terrorism (as defined under section 2331(5) 

of this title) or an act of international terrorism (as defined in 

section 2331(1) of this title);

(5) in the case of any offense under subsection (a), forfeiture 

to the United States of any personal property used or intended 

to be used to commit the offense; and

(6) a fine under this title or imprisonment for not more than 

one year, or both, in any other case. 
Asset Forfeiture Statutes • 47

18 U.S.C. § 1028

(c) The circumstance referred to in subsection (a) of this 

section is that—

(1) the identification document, authentication feature, or 

false identification document is or appears to be issued by or 

under the authority of the United States or a sponsoring entity 

of an event designated as a special event of national significance 

or the document-making implement is designed or suited 

for making such an identification document, authentication 

feature, or false identification document;

(2) the offense is an offense under subsection (a)(4) of 

this section; or

(3) either—

(A) the production, transfer, possession, or use 

prohibited by this section is in or affects interstate or 

foreign commerce, including the transfer of a document 

by electronic means; or

(B) the means of identification, identification document, 

false identification document, or document-making 

implement is transported in the mail in the course of the 

production, transfer, possession, or use prohibited by this 

section. 

(d) In this section and section 1028A—

(1) the term “authentication feature” means any hologram, 

watermark, certification, symbol, code, image, sequence of 

numbers or letters, or other feature that either individually or 

in combination with another feature is used by the issuing 

authority on an identification document, document-making 

implement, or means of identification to determine if the 

document is counterfeit, altered, or otherwise falsified;

(2) the term “document-making implement” means any 

implement, impression, template, computer file, computer 

disc, electronic device, or computer hardware or software, 

that is specifically configured or primarily used for making 

an identification document, a false identification document, 

or another document-making implement;

(3) the term “identification document” means a document 

made or issued by or under the authority of the United States 

Government, a State, political subdivision of a State, a 

sponsoring entity of an event designated as a special event of 

national significance, a foreign government, political subdivision 

of a foreign government, an international governmental or an 

international quasi-governmental organization which, when 

completed with information concerning a particular individual, 

is of a type intended or commonly accepted for the purpose of 

identification of individuals;

(4) the term “false identification document” means a 

document of a type intended or commonly accepted for the 

purposes of identification of individuals that—

(A) is not issued by or under the authority of a 

governmental entity or was issued under the authority of 

a governmental entity but was subsequently altered for 

purposes of deceit; and

(B) appears to be issued by or under the authority of the 

United States Government, a State, a political subdivision 

of a State, a sponsoring entity of an event designated by 

the President as a special event of national significance, 

a foreign government, a political subdivision of a foreign 

government, or an international governmental or quasigovernmental organization;

(5) the term “false authentication feature” means an 

authentication feature that—

(A) is genuine in origin, but, without the authorization 

of the issuing authority, has been tampered with or altered 

for purposes of deceit;

(B) is genuine, but has been distributed, or is intended 

for distribution, without the authorization of the issuing 

authority and not in connection with a lawfully made 

identification document, document-making implement, 

or means of identification to which such authentication 

feature is intended to be affixed or embedded by the 

respective issuing authority; or

(C) appears to be genuine, but is not;

(6) the term “issuing authority”—

(A) means any governmental entity or agency that is 

authorized to issue identification documents, means of 

identification, or authentication features; and

(B) includes the United States Government, a State, a 

political subdivision of a State, a sponsoring entity of an 

event designated by the President as a special event of 

national significance, a foreign government, a political 

subdivision of a foreign government, or an international 

government or quasi-governmental organization;

(7) the term “means of identification” means any name or 

number that may be used, alone or in conjunction with any other 

information, to identify a specific individual, including any—

(A) name, social security number, date of birth, official 

State or government issued driver’s license or identification 

number, alien registration number, government passport 

number, employer or taxpayer identification number;

(B) unique biometric data, such as fingerprint, voice print, 

retina or iris image, or other unique physical representation;

(C) unique electronic identification number, address, 

or routing code; or

(D) telecommunication identifying information or 

access device (as defined in section 1029(e));
48 • Asset Forfeiture Statutes

18 U.S.C. § 1029 

(8) the term “personal identification card” means an 

identification document issued by a State or local government 

solely for the purpose of identification;

(9) the term “produce” includes alter, authenticate, or 

assemble;

(10) the term “transfer” includes selecting an identification 

document, false identification document, or document-making 

implement and placing or directing the placement of such 

identification document, false identification document, or 

document-making implement on an online location where it 

is available to others;

(11) the term “State” includes any State of the United 

States, the District of Columbia, the Commonwealth of Puerto 

Rico, and any other commonwealth, possession, or territory 

of the United States; and

(12) the term “traffic” means—

(A) to transport, transfer, or otherwise dispose of, to 

another, as consideration for anything of value; or

(B) to make or obtain control of with intent to so 

transport, transfer, or otherwise dispose of. 

(e) This section does not prohibit any lawfully authorized 

investigative, protective, or intelligence activity of a law 

enforcement agency of the United States, a State, or a political 

subdivision of a State, or of an intelligence agency of the United 

States, or any activity authorized under chapter 224 of this title. 

(f) Attempt and conspiracy. Any person who attempts or conspires 

to commit any offense under this section shall be subject to the 

same penalties as those prescribed for the offense, the commission 

of which was the object of the attempt or conspiracy. 

(g) Forfeiture procedures. The forfeiture of property under this 

section, including any seizure and disposition of the property 

and any related judicial or administrative proceeding, shall 

be governed by the provisions of section 413 (other than 

subsection (d) of that section) of the Comprehensive Drug 

Abuse Prevention and Control Act of 1970 (21 U.S.C. 853). 

(h) Forfeiture; disposition. In the circumstance in which 

any person is convicted of a violation of subsection (a), the 

court shall order, in addition to the penalty prescribed, the 

forfeiture and destruction or other disposition of all illicit 

authentication features, identification documents, documentmaking implements, or means of identification. 

(i) Rule of construction. For purpose of subsection (a)(7), a 

single identification document or false identification document 

that contains 1 or more means of identification shall be 

construed to be 1 means of identification.

Amended: USA PATRIOT Improvement and Reauthorization 

Act of 2005, Pub. L. 109-177, Title VI, § 603, Mar. 9, 2006, 

120 Stat. 192, 253.

18 U.S.C. § 1029. Fraud and related activity in 

connection with access devices.

(a) Whoever—

(1) knowingly and with intent to defraud produces, uses, 

or traffics in one or more counterfeit access devices;

(2) knowingly and with intent to defraud traffics in or uses 

one or more unauthorized access devices during any oneyear period, and by such conduct obtains anything of value 

aggregating $1,000 or more during that period;

(3) knowingly and with intent to defraud possesses fifteen 

or more devices which are counterfeit or unauthorized access 

devices;

(4) knowingly, and with intent to defraud, produces, traffics 

in, has control or custody of, or possesses device-making 

equipment;

(5) knowingly and with intent to defraud effects 

transactions, with 1 or more access devices issued to another 

person or persons, to receive payment or any other thing of 

value during any 1-year period the aggregate value of which 

is equal to or greater than $1,000;

(6) without the authorization of the issuer of the access 

device, knowingly and with intent to defraud solicits a person 

for the purpose of—

(A) offering an access device; or

(B) selling information regarding or an application to 

obtain an access device;

(7) knowingly and with intent to defraud uses, produces, 

traffics in, has control or custody of, or possesses a 

telecommunications instrument that has been modified or 

altered to obtain unauthorized use of telecommunications 

services;

(8) knowingly and with intent to defraud uses, produces, 

traffics in, has control or custody of, or possesses a scanning 

receiver;

(9) knowingly uses, produces, traffics in, has control or 

custody of, or possesses hardware or software, knowing it 

has been configured to insert or modify telecommunication 

identifying information associated with or contained in a 

telecommunications instrument so that such instrument 

may be used to obtain telecommunications service without 

authorization; or

(10) without the authorization of the credit card system 

member or its agent, knowingly and with intent to defraud 

causes or arranges for another person to present to the member 

or its agent, for payment, 1 or more evidences or records of 

transactions made by an access device;
Asset Forfeiture Statutes • 49

18 U.S.C. § 1029

shall, if the offense affects interstate or foreign commerce, be 

punished as provided in subsection (c) of this section.

(b)(1) Whoever attempts to commit an offense under 

subsection (a) of this section shall be subject to the same 

penalties as those prescribed for the offense attempted.

(2) Whoever is a party to a conspiracy of two or more 

persons to commit an offense under subsection (a) of this 

section, if any of the parties engages in any conduct in 

furtherance of such offense, shall be fined an amount not 

greater than the amount provided as the maximum fine for 

such offense under subsection (c) of this section or imprisoned 

not longer than one-half the period provided as the maximum 

imprisonment for such offense under subsection (c) of this 

section, or both.

(c) Penalties.—

(1) Generally.—The punishment for an offense under 

subsection (a) of this section is—

(A) in the case of an offense that does not occur after a 

conviction for another offense under this section—

(i) if the offense is under paragraph (1), (2), (3), (6), 

(7), or (10) of subsection (a), a fine under this title or 

imprisonment for not more than 10 years, or both; and

(ii) if the offense is under paragraph (4), (5), 

(8), or (9) of subsection (a), a fine under this title or 

imprisonment for not more than 15 years, or both;

(B) in the case of an offense that occurs after a 

conviction for another offense under this section, a fine 

under this title or imprisonment for not more than 20 

years, or both; and

(C) in either case, forfeiture to the United States of any 

personal property used or intended to be used to commit 

the offense.

(2) Forfeiture procedure.—The forfeiture of property 

under this section, including any seizure and disposition 

of the property and any related administrative and judicial 

proceeding, shall be governed by section 413 of the Controlled 

Substances Act, except for subsection (d) of that section.

(d) The United States Secret Service shall, in addition to any 

other agency having such authority, have the authority to 

investigate offenses under this section. Such authority of the 

United States Secret Service shall be exercised in accordance 

with an agreement which shall be entered into by the Secretary 

of the Treasury and the Attorney General.

(e) As used in this section—

(1) the term “access device” means any card, plate, 

code, account number, electronic serial number, mobile 

identification number, personal identification number, or 

other telecommunications service, equipment, or instrument 

identifier, or other means of account access that can be used, 

alone or in conjunction with another access device, to obtain 

money, goods, services, or any other thing of value, or that 

can be used to initiate a transfer of funds (other than a transfer 

originated solely by paper instrument);

(2) the term “counterfeit access device” means any access 

device that is counterfeit, fictitious, altered, or forged, or an 

identifiable component of an access device or a counterfeit 

access device;

(3) the term “unauthorized access device” means any 

access device that is lost, stolen, expired, revoked, canceled, 

or obtained with intent to defraud;

(4) the term “produce” includes design, alter, authenticate, 

duplicate, or assemble;

(5) the term “traffic” means transfer, or otherwise dispose 

of, to another, or obtain control of with intent to transfer or 

dispose of;

(6) the term “device-making equipment” means any 

equipment, mechanism, or impression designed or primarily 

used for making an access device or a counterfeit access 

device;

(7) The term “credit card system member” means a 

financial institution or other entity that is a member of a credit 

card system, including an entity, whether affiliated with or 

identical to the credit card issuer, that is the sole member of 

a credit card system;

(8) the term “scanning receiver” means a device or 

apparatus that can be used to intercept a wire or electronic 

communication in violation of chapter 119 or to intercept an 

electronic serial number, mobile identification number, or 

other identifier of any telecommunications service, equipment, 

or instrument;

(9) the term “telecommunications service” has the meaning 

given such term in section 3 of title I of the Communications 

Act of 1934 (47 U.S.C. § 153);

(10) the term “facilities-based carrier” means an entity 

that owns communications transmission facilities, is 

responsible for the operation and maintenance of those 

facilities, and holds an operating license issued by the Federal 

Communications Commission under the authority of title III 

of the Communications Act of 1934; and

(11) the term “telecommunication identifying information” 

means electronic serial number or any other number or signal 

that identifies a specific telecommunications instrument or 

account, or a specific communication transmitted from a 

telecommunications instrument.
50 • Asset Forfeiture Statutes

18 U.S.C. § 1030 

(f) This section does not prohibit any lawfully authorized 

investigative, protective, or intelligence activity of a law 

enforcement agency of the United States, a State, or a 

political subdivision of a State, or of an intelligence agency 

of the United States, or any activity authorized under chapter 

224 of this title. For purposes of this subsection, the term 

“State” includes a State of the United States, the District of 

Columbia, and any commonwealth, territory, or possession 

of the United States.

(g)(1) It is not a violation of subsection (a)(9) for an officer, 

employee, or agent of, or a person engaged in business with, 

a facilities-based carrier, to engage in conduct (other than 

trafficking) otherwise prohibited by that subsection for the 

purpose of protecting the property or legal rights of that 

carrier, unless such conduct is for the purpose of obtaining 

telecommunications service provided by another facilitiesbased carrier without the authorization of such carrier.

(2) In a prosecution for a violation of subsection (a)(9), 

(other than a violation consisting of producing or trafficking) it 

is an affirmative defense (which the defendant must establish 

by a preponderance of the evidence) that the conduct charged 

was engaged in for research or development in connection 

with a lawful purpose.

(h) Any person who, outside the jurisdiction of the United 

States, engages in any act that, if committed within the 

jurisdiction of the United States, would constitute an offense 

under subsection (a) or (b) of this section, shall be subject to 

the fines, penalties, imprisonment, and forfeiture provided 

in this title if—

(1) the offense involves an access device issued, owned, 

managed, or controlled by a financial institution, account 

issuer, credit card system member, or other entity within the 

jurisdiction of the United States; and

(2) the person transports, delivers, conveys, transfers to 

or through, or otherwise stores, secrets, or holds within the 

jurisdiction of the United States, any article used to assist in 

the commission of the offense or the proceeds of such offense 

or property derived therefrom.

Amended: Criminal Law Technical Amendments Act of 2002, 

Pub. L. 107-273, Div. B, Title IV, § 4002(b)(11), Nov. 2, 2002, 

116 Stat. 1758, 1808.

18 U.S.C. § 1030. Fraud and related activity in 

connection with computers.

(a) Whoever—

(1) having knowingly accessed a computer without 

authorization or exceeding authorized access, and by means 

of such conduct having obtained information that has been 

determined by the United States Government pursuant to 

an Executive order or statute to require protection against 

unauthorized disclosure for reasons of national defense or 

foreign relations, or any restricted data, as defined in paragraph 

y. of section 11 of the Atomic Energy Act of 1954, with reason 

to believe that such information so obtained could be used 

to the injury of the United States, or to the advantage of any 

foreign nation willfully communicates, delivers, transmits, 

or causes to be communicated, delivered, or transmitted, or 

attempts to communicate, deliver, transmit or cause to be 

communicated, delivered, or transmitted the same to any 

person not entitled to receive it, or willfully retains the same 

and fails to deliver it to the officer or employee of the United 

States entitled to receive it;

(2) intentionally accesses a computer without authorization 

or exceeds authorized access, and thereby obtains—

(A) information contained in a financial record of a 

financial institution, or of a card issuer as defined in section 

1602(n) of title 15, or contained in a file of a consumer 

reporting agency on a consumer, as such terms are defined 

in the Fair Credit Reporting Act (15 U.S.C. 1681 et seq.);

(B) information from any department or agency of the 

United States; or

(C) information from any protected computer;

(3) intentionally, without authorization to access any 

nonpublic computer of a department or agency of the United 

States, accesses such a computer of that department or agency 

that is exclusively for the use of the Government of the United 

States or, in the case of a computer not exclusively for such 

use, is used by or for the Government of the United States 

and such conduct affects that use by or for the Government 

of the United States;

(4) knowingly and with intent to defraud, accesses 

a protected computer without authorization, or exceeds 

authorized access, and by means of such conduct furthers 

the intended fraud and obtains anything of value, unless the 

object of the fraud and the thing obtained consists only of the 

use of the computer and the value of such use is not more than 

$5,000 in any 1-year period;

(5)(A) knowingly causes the transmission of a program, 

information, code, or command, and as a result of such 

conduct, intentionally causes damage without authorization, 

to a protected computer;

(B) intentionally accesses a protected computer without 

authorization, and as a result of such conduct, recklessly 

causes damage; or

(C) intentionally accesses a protected computer without 

authorization, and as a result of such conduct, causes 

damage and loss.
Asset Forfeiture Statutes • 51

18 U.S.C. § 1030

(6) knowingly and with intent to defraud traffics (as defined 

in section 1029) in any password or similar information 

through which a computer may be accessed without 

authorization, if—

(A) such trafficking affects interstate or foreign 

commerce; or

(B) such computer is used by or for the Government 

of the United States; 

(7) with intent to extort from any person any money 

or other thing of value, transmits in interstate or foreign 

commerce any communication containing any—

(A) threat to cause damage to a protected computer;

(B) threat to obtain information from a protected 

computer without authorization or in excess of authorization 

or to impair the confidentiality of information obtained 

from a protected computer without authorization or by 

exceeding authorized access; or

(C) demand or request for money or other thing of 

value in relation to damage to a protected computer, where 

such damage was caused to facilitate the extortion; shall 

be punished as provided in subsection (c) of this section.

(b) Whoever conspires to commit or attempts to commit an 

offense under subsection (a) of this section shall be punished 

as provided in subsection (c) of this section.

(c) The punishment for an offense under subsection (a) or (b) 

of this section is—

(1)(A) a fine under this title or imprisonment for not 

more than ten years, or both, in the case of an offense under 

subsection (a)(1) of this section which does not occur after a 

conviction for another offense under this section, or an attempt 

to commit an offense punishable under this subparagraph; and

(B) a fine under this title or imprisonment for not 

more than twenty years, or both, in the case of an offense 

under subsection (a)(1) of this section which occurs after 

a conviction for another offense under this section, or 

an attempt to commit an offense punishable under this 

subparagraph;

(2)(A) except as provided in subparagraph (B), a fine under 

this title or imprisonment for not more than one year, or both, 

in the case of an offense under subsection (a)(2), (a)(3), or 

(a)(6) of this section which does not occur after a conviction 

for another offense under this section, or an attempt to commit 

an offense punishable under this subparagraph;

(B) a fine under this title or imprisonment for not 

more than 5 years, or both, in the case of an offense under 

subsection (a)(2), or an attempt to commit an offense 

punishable under this subparagraph, if—

(i) the offense was committed for purposes of 

commercial advantage or private financial gain;

(ii) the offense was committed in furtherance of any 

criminal or tortious act in violation of the Constitution 

or laws of the United States or of any State; or

(iii) the value of the information obtained exceeds 

$5,000; and

(C) a fine under this title or imprisonment for not more 

than ten years, or both, in the case of an offense under 

subsection (a)(2), (a)(3) or (a)(6) of this section which 

occurs after a conviction for another offense under this 

section, or an attempt to commit an offense punishable 

under this subparagraph;

(3)(A) a fine under this title or imprisonment for not 

more than five years, or both, in the case of an offense under 

subsection (a)(4) or (a)(7) of this section which does not 

occur after a conviction for another offense under this section, 

or an attempt to commit an offense punishable under this 

subparagraph; and

(B) a fine under this title or imprisonment for not more 

than ten years, or both, in the case of an offense under 

subsection (a)(4) or (a)(7) of this section which occurs 

after a conviction for another offense under this section, 

or an attempt to commit an offense punishable under this 

subparagraph;

(4)(A) except as provided in subparagraphs (E) and (F), a 

fine under this title, imprisonment for not more than 5 years, 

or both, in the case of—

(i) an offense under subsection (a)(5)(B), which does 

not occur after a conviction for another offense under 

this section, if the offense caused (or, in the case of an 

attempted offense, would, if completed, have caused)—

(I) loss to 1 or more persons during any 1-year 

period (and, for purposes of an investigation, 

prosecution, or other proceeding brought by the 

United States only, loss resulting from a related 

course of conduct affecting 1 or more other protected 

computers) aggregating at least $5,000 in value;

(II) the modification or impairment, or potential 

modification or impairment, of the medical 

examination, diagnosis, treatment, or care of 1 or 

more individuals;

(III) physical injury to any person;

(IV) a threat to public health or safety;

(V) damage affecting a computer used by or 

for an entity of the United States Government in 

furtherance of the administration of justice, national 

defense, or national security; or
52 • Asset Forfeiture Statutes

18 U.S.C. § 1030 

(VI) damage affecting 10 or more protected 

computers during any 1-year period; or

(ii) an attempt to commit an offense punishable 

under this subparagraph;

(B) except as provided in subparagraphs (E) and (F), 

a fine under this title, imprisonment for not more than 10 

years, or both, in the case of—

(i) an offense under subsection (a)(5)(A), which 

does not occur after a conviction for another offense 

under this section, if the offense caused (or, in the case 

of an attempted offense, would, if completed, have 

caused) a harm provided in subclauses (I) through (VI) 

of subparagraph (A)(i); or

(ii) an attempt to commit an offense punishable 

under this subparagraph;

(C) except as provided in subparagraphs (E) and (F), 

a fine under this title, imprisonment for not more than 20 

years, or both, in the case of—

(i) an offense or an attempt to commit an offense 

under subparagraphs (A) or (B) of subsection (a)(5) 

that occurs after a conviction for another offense under 

this section; or

(ii) an attempt to commit an offense punishable 

under this subparagraph;

(D) a fine under this title, imprisonment for not more 

than 10 years, or both, in the case of—

(i) an offense or an attempt to commit an offense 

under subsection (a)(5)(C) that occurs after a conviction 

for another offense under this section; or

(ii) an attempt to commit an offense punishable 

under this subparagraph;

(E) if the offender attempts to cause or knowingly or 

recklessly causes serious bodily injury from conduct in 

violation of subsection (a)(5)(A), a fine under this title, 

imprisonment for not more than 20 years, or both;

(F) if the offender attempts to cause or knowingly 

or recklessly causes death from conduct in violation of 

subsection (a)(5)(A), a fine under this title, imprisonment 

for any term of years or for life, or both; or

(G) a fine under this title, imprisonment for not more 

than 1 year, or both, for—

(i) any other offense under subsection (a)(5); or

(ii) an attempt to commit an offense punishable 

under this subparagraph.

(d)(1) The United States Secret Service shall, in addition to 

any other agency having such authority, have the authority 

to investigate offenses under this section.

(2) The Federal Bureau of Investigation shall have primary 

authority to investigate offenses under subsection (a)(1) for 

any cases involving espionage, foreign counterintelligence, 

information protected against unauthorized disclosure for 

reasons of national defense or foreign relations, or Restricted 

Data (as that term is defined in section 11y of the Atomic 

Energy Act of 1954 (42 U.S.C. 2014(y)), except for offenses 

affecting the duties of the United States Secret Service 

pursuant to section 3056(a) of this title.

(3) Such authority shall be exercised in accordance with 

an agreement which shall be entered into by the Secretary of 

the Treasury and the Attorney General.

(e) As used in this section—

(1) the term “computer” means an electronic, magnetic, 

optical, electrochemical, or other high speed data processing 

device performing logical, arithmetic, or storage functions, 

and includes any data storage facility or communications 

facility directly related to or operating in conjunction with 

such device, but such term does not include an automated 

typewriter or typesetter, a portable hand held calculator, or 

other similar device;

(2) the term “protected computer” means a computer—

(A) exclusively for the use of a financial institution 

or the United States Government, or, in the case of a 

computer not exclusively for such use, used by or for a 

financial institution or the United States Government and 

the conduct constituting the offense affects that use by or 

for the financial institution or the Government; or

(B) which is used in or affecting interstate or foreign 

commerce or communication, including a computer 

located outside the United States that is used in a 

manner that affects interstate or foreign commerce or 

communication of the United States;

(3) the term “State” includes the District of Columbia, the 

Commonwealth of Puerto Rico, and any other commonwealth, 

possession or territory of the United States;

(4) the term “financial institution” means—

(A) an institution, with deposits insured by the Federal 

Deposit Insurance Corporation;

(B) the Federal Reserve or a member of the Federal 

Reserve including any Federal Reserve Bank;

(C) a credit union with accounts insured by the National 

Credit Union Administration;

(D) a member of the Federal home loan bank system 

and any home loan bank;
Asset Forfeiture Statutes • 53

Rule G

(E) any institution of the Farm Credit System under the 

Farm Credit Act of 1971;

(F) a broker-dealer registered with the Securities and 

Exchange Commission pursuant to section 15 of the 

Securities Exchange Act of 1934;

(G) the Securities Investor Protection Corporation;

(H) a branch or agency of a foreign bank (as such terms 

are defined in paragraphs (1) and (3) of section 1(b) of the 

International Banking Act of 1978); and

(I) an organization operating under section 25 or section 

25(a) of the Federal Reserve Act;

(5) the term “financial record” means information derived 

from any record held by a financial institution pertaining to a 

customer’s relationship with the financial institution;

(6) the term “exceeds authorized access” means to access a 

computer with authorization and to use such access to obtain 

or alter information in the computer that the accesser is not 

entitled so to obtain or alter;

(7) the term “department of the United States” means the 

legislative or judicial branch of the Government or one of the 

executive departments enumerated in section 101 of title 5;

(8) the term “damage” means any impairment to the 

integrity or availability of data, a program, a system, or 

information;

(9) the term “government entity” includes the Government 

of the United States, any State or political subdivision of the 

United States, any foreign country, and any state, province, 

municipality, or other political subdivision of a foreign country;

(10) the term “conviction” shall include a conviction under 

the law of any State for a crime punishable by imprisonment 

for more than 1 year, an element of which is unauthorized 

access, or exceeding authorized access, to a computer;

(11) the term “loss” means any reasonable cost to any 

victim, including the cost of responding to an offense, 

conducting a damage assessment, and restoring the data, 

program, system, or information to its condition prior to 

the offense, and any revenue lost, cost incurred, or other 

consequential damages incurred because of interruption of 

service; and

(12) the term “person” means any individual, firm, 

corporation, educational institution, financial institution, 

governmental entity, or legal or other entity.

(f) This section does not prohibit any lawfully authorized 

investigative, protective, or intelligence activity of a law 

enforcement agency of the United States, a State, or a political 

subdivision of a State, or of an intelligence agency of the 

United States.

(g) Any person who suffers damage or loss by reason of a 

violation of this section may maintain a civil action against 

the violator to obtain compensatory damages and injunctive 

relief or other equitable relief. A civil action for a violation 

of this section may be brought only if the conduct involves 

1 of the factors set forth in subclauses (I), (II), (III), (IV), 

or (V) of subsection (c)(4)(A)(i). Damages for a violation 

involving only conduct described in subsection (c)(4)(A)(i)(I) 

are limited to economic damages. No action may be brought 

under this subsection unless such action is begun within 2 

years of the date of the act complained of or the date of the 

discovery of the damage. No action may be brought under 

this subsection for the negligent design or manufacture of 

computer hardware, computer software, or firmware.

(h) The Attorney General and the Secretary of the Treasury 

shall report to the Congress annually, during the first 

3 years following the date of the enactment of this 

subsection, concerning investigations and prosecutions under 

subsection (a)(5).

(i)(1) The court, in imposing sentence on any person convicted 

of a violation of this section, or convicted of conspiracy 

to violate this section, shall order, in addition to any other 

sentence imposed and irrespective of any provision of State 

law, that such person forfeit to the United States—

(A) such person’s interest in any personal property that 

was used or intended to be used to commit or to facilitate 

the commission of such violation; and

(B) any property, real or personal, constituting or 

derived from, any proceeds that such person obtained, 

directly or indirectly, as a result of such violation.

(2) The criminal forfeiture of property under this 

subsection, any seizure and disposition thereof, and any 

judicial proceeding in relation thereto, shall be governed by 

the provisions of section 413 of the Comprehensive Drug 

Abuse Prevention and Control Act of 1970 (21 U.S.C. 853), 

except subsection (d) of that section.

(j) For purposes of subsection (i), the following shall be 

subject to forfeiture to the United States and no property right 

shall exist in them:

(1) Any personal property used or intended to be used to 

commit or to facilitate the commission of any violation of this 

section, or a conspiracy to violate this section.

(2) Any property, real or personal, which constitutes or 

is derived from proceeds traceable to any violation of this 

section, or a conspiracy to violate this section.

Amended: Former Vice President Protection Act of 2008, 

Pub. L. 110-326, Title II, §§ 203, 204(a), 205 to 208, Sept. 26, 

2008, 122 Stat. 3561, 3563.
54 • Asset Forfeiture Statutes

18 U.S.C. § 1037 

18 U.S.C. § 1037. Fraud and related activity in 

connection with electronic mail.

(a) In general.—Whoever, in or affecting interstate or foreign 

commerce, knowingly—

(1) accesses a protected computer without authorization, and 

intentionally initiates the transmission of multiple commercial 

electronic mail messages from or through such computer,

(2) uses a protected computer to relay or retransmit 

multiple commercial electronic mail messages, with the intent 

to deceive or mislead recipients, or any Internet access service, 

as to the origin of such messages,

(3) materially falsifies header information in multiple 

commercial electronic mail messages and intentionally 

initiates the transmission of such messages,

(4) registers, using information that materially falsifies the 

identity of the actual registrant, for five or more electronic 

mail accounts or online user accounts or two or more domain 

names, and intentionally initiates the transmission of multiple 

commercial electronic mail messages from any combination 

of such accounts or domain names, or

(5) falsely represents oneself to be the registrant or the 

legitimate successor in interest to the registrant of 5 or more 

Internet Protocol addresses, and intentionally initiates the 

transmission of multiple commercial electronic mail messages 

from such addresses, or conspires to do so, shall be punished 

as provided in subsection (b).

(b) Penalties.—The punishment for an offense under 

subsection (a) is—

(1) a fine under this title, imprisonment for not more than 

5 years, or both, if—

(A) the offense is committed in furtherance of any felony 

under the laws of the United States or of any State; or

(B) the defendant has previously been convicted under 

this section or section 1030, or under the law of any 

State for conduct involving the transmission of multiple 

commercial electronic mail messages or unauthorized 

access to a computer system;

(2) a fine under this title, imprisonment for not more than 

3 years, or both, if—

(A) the offense is an offense under subsection (a)(1);

(B) the offense is an offense under subsection (a)(4) 

and involved 20 or more falsified electronic mail or online 

user account registrations, or 10 or more falsified domain 

name registrations;

(C) the volume of electronic mail messages transmitted 

in furtherance of the offense exceeded 2,500 during any 24-

hour period, 25,000 during any 30-day period, or 250,000 

during any 1-year period;

(D) the offense caused loss to one or more persons 

aggregating $5,000 or more in value during any 1-year period;

(E) as a result of the offense any individual committing 

the offense obtained anything of value aggregating $5,000 

or more during any 1-year period; or

(F) the offense was undertaken by the defendant in concert 

with three or more other persons with respect to whom the 

defendant occupied a position of organizer or leader; and

(3) a fine under this title or imprisonment for not more than 

1 year, or both, in any other case.

(c) Forfeiture.—

(1) In general.—The court, in imposing sentence on a 

person who is convicted of an offense under this section, 

shall order that the defendant forfeit to the United States—

(A) any property, real or personal, constituting or 

traceable to gross proceeds obtained from such offense; and

(B) any equipment, software, or other technology 

used or intended to be used to commit or to facilitate the 

commission of such offense.

(2) Procedures.—The procedures set forth in section 413 of 

the Controlled Substances Act (21 U.S.C. § 853), other than 

subsection (d) of that section, and in Rule 32.2 of the Federal 

Rules of Criminal Procedure, shall apply to all stages of a 

criminal forfeiture proceeding under this section.

(d) Definitions.—In this section:

(1) Loss.—The term “loss” has the meaning given that 

term in section 1030(e) of this title.

(2) Materially.—For purposes of paragraphs (3) and (4) of 

subsection (a), header information or registration information 

is materially falsified if it is altered or concealed in a manner 

that would impair the ability of a recipient of the message, 

an Internet access service processing the message on behalf 

of a recipient, a person alleging a violation of this section, 

or a law enforcement agency to identify, locate, or respond 

to a person who initiated the electronic mail message or to 

investigate the alleged violation.

(3) Multiple.—The term “multiple” means more than 100 

electronic mail messages during a 24-hour period, more than 

1,000 electronic mail messages during a 30-day period, or more 

than 10,000 electronic mail messages during a 1-year period.

(4) Other terms.—Any other term has the meaning given 

that term by section 3 of the CAN-SPAM Act of 2003.

Enacted: CAN-SPAM Act of 2003, Pub. L. 108-187, § 4(a)(1), 

Dec. 16, 2003, 117 Stat. 2699, 2703.
Asset Forfeiture Statutes • 55

18 U.S.C. § 1594

18 U.S.C. § 1343. Fraud by wire, radio, or 

television

Whoever, having devised or intending to devise any scheme 

or artifice to defraud, or for obtaining money or property by 

means of false or fraudulent pretenses, representations, or 

promises, transmits or causes to be transmitted by means 

of wire, radio, or television communication in interstate or 

foreign commerce, any writings, signs, signals, pictures, or 

sounds for the purpose of executing such scheme or artifice, 

shall be fined under this title or imprisoned not more than 20 

years, or both. If the violation occurs in relation to, or involving 

any benefit authorized, transported, transmitted, transferred, 

disbursed, or paid in connection with, a presidentially declared 

major disaster or emergency (as those terms are defined in 

section 102 of the Robert T. Stafford Disaster Relief and 

Emergency Assistance Act (42 U.S.C. 5122)), or affects a 

financial institution, such person shall be fined not more than 

$1,000,000 or imprisoned not more than 30 years, or both.

Amended: Emergency and Disaster Assistance Fraud Penalty 

Enhancement Act of 2007, Pub.L. 110-179, § 3, Jan. 7, 2008, 

121 Stat. 2557.

18 U.S.C. § 1467. Criminal forfeiture. 

(Obscenity)

(a) Property subject to criminal forfeiture.—A person who 

is convicted of an offense involving obscene material under 

this chapter shall forfeit to the United States such person’s 

interest in—

(1) any obscene material produced, transported, mailed, 

shipped, or received in violation of this chapter;

(2) any property, real or personal, constituting or traceable 

to gross profits or other proceeds obtained from such offense; 

and

(3) any property, real or personal, used or intended to be 

used to commit or to promote the commission of such offense.

(b) The provisions of section 413 of the Controlled Substances 

Act (21 U.S.C. 853), with the exception of subsections (a) and 

(d), shall apply to the criminal forfeiture of property pursuant 

to subsection (a).

(c) Any property subject to forfeiture pursuant to subsection 

(a) may be forfeited to the United States in a civil case in 

accordance with the procedures set forth in chapter 46 of 

this title.

Amended: Adam Walsh Child Protection and Safety Act of 2006, 

Pub. L. 109-248, Title V, § 505(a), July 27, 2006, 120 Stat. 629.

18 U.S.C. § 1594. General provisions. 

(Trafficking in persons)

(a) Whoever attempts to violate section 1581, 1583, 1584, 

1589, 1590, or 1591 shall be punish-able in the same manner 

as a completed violation of that section.

(b) Whoever conspires with another to violate section 1581, 

1583, 1589, 1590, or 1592 shall be punished in the same 

manner as a completed violation of such section.

(c) Whoever conspires with another to violate section 1591 

shall be fined under this title, imprisoned for any term of years 

or for life, or both.

(d) The court, in imposing sentence on any person convicted 

of a violation of this chapter, shall order, in addition to any 

other sentence imposed and irrespective of any provision of 

State law, that such person shall forfeit to the United States—

(1) such person’s interest in any property, real or personal, 

that was used or intended to be used to commit or to facilitate 

the commission of such violation; and

(2) any property, real or personal, constituting or derived 

from, any proceeds that such person obtained, directly or 

indirectly, as a result of such violation.

(e)(1) The following shall be subject to forfeiture to the United 

States and no property right shall exist in them:

(A) Any property, real or personal, used or intended to 

be used to commit or to facilitate the commission of any 

violation of this chapter.

(B) Any property, real or personal, which constitutes 

or is derived from proceeds traceable to any violation of 

this chapter.

(2) The provisions of chapter 46 of this title relating to 

civil forfeitures shall extend to any seizure or civil forfeiture 

under this subsection.

(f) Witness protection.—Any violation of this chapter shall 

be considered an organized criminal activity or other serious 

offense for the purposes of application of chapter 224 (relating 

to witness protection).

Enacted: William Wilberforce Trafficking Victims Protection 

Reauthorization Act of 2008, Pub. L. 110-457, Title II, § 222(c), 

Dec. 23, 2008, 122 Stat. 5070.
56 • Asset Forfeiture Statutes

18 U.S.C. § 1762 

18 U.S.C. § 1762. Marking packages.

(a) All packages containing any goods, wares, or merchandise 

manufactured, produced, or mined wholly or in part by 

convicts or prisoners, except convicts or prisoners on parole 

or probation, or in any penal or reformatory institution, when 

shipped or transported in interstate or foreign commerce shall 

be plainly and clearly marked, so that the name and address 

of the shipper, the name and address of the consignee, the 

nature of the contents, and the name and location of the penal 

or reformatory institution where produced wholly or in part 

may be readily ascertained on an inspection of the outside of 

such package.

(b) Whoever violates this section shall be fined under this title, 

and any goods, wares, or merchandise transported in violation 

of this section or section 1761 of this title shall be forfeited 

to the United States, and may be seized and condemned by 

like proceedings as those provided by law for the seizure 

and forfeiture of property imported into the United States 

contrary to law.

Amended: Economic Espionage Act of 1996, Pub. L. 104-294, 

Title VI, § 601(a)(7), Oct. 11, 1996, 110 Stat. 3488, 3498.

18 U.S.C. § 1834. Criminal forfeiture. 

(Protection of trade secrets)

Forfeiture, destruction, and restitution relating to this chapter 

shall be subject to section 2323, to the extent provided in that 

section, in addition to any other similar remedies provided 

by law.

Enacted: Prioritizing Resources and Organization for Intellectual 

Property Act of 2008, Pub. L. 110-403, Title II, § 207, Oct. 13, 

2008, 122 Stat. 4263.

18 U.S.C. § 1955. Prohibition of illegal 

gambling businesses.

(a) Whoever conducts, finances, manages, supervises, directs, 

or owns all or part of an illegal gambling business shall be fined 

under this title or imprisoned not more than five years, or both.

(b) As used in this section—

(1) “illegal gambling business” means a gambling business 

which—

(i) is a violation of the law of a State or political 

subdivision in which it is conducted;

(ii) involves five or more persons who conduct, 

finance, manage, supervise, direct, or own all or part 

of such business; and

(iii) has been or remains in substantially continuous 

operation for a period in excess of thirty days or has a 

gross revenue of $2,000 in any single day.

(2) “gambling” includes but is not limited to pool-selling, 

bookmaking, maintaining slot machines, roulette wheels or 

dice tables, and conducting lotteries, policy, bolita or numbers 

games, or selling chances therein.

(3) “State” means any State of the United States, the 

District of Columbia, the Commonwealth of Puerto Rico, and 

any territory or possession of the United States.

(c) If five or more persons conduct, finance, manage, 

supervise, direct, or own all or part of a gambling business 

and such business operates for two or more successive 

days, then, for the purpose of obtaining warrants for arrests, 

interceptions, and other searches and seizures, probable cause 

that the business receives gross revenue in excess of $2,000 

in any single day shall be deemed to have been established.

(d) Any property, including money, used in violation of 

the provisions of this section may be seized and forfeited 

to the United States. All provisions of law relating to the 

seizures, summary, and judicial forfeiture procedures, 

and condemnation of vessels, vehicles, merchandise, and 

baggage for violation of the customs laws; the disposition 

of such vessels, vehicles, merchandise, and baggage or the 

proceeds from such sale; the remission or mitigation of such 

forfeitures; and the compromise of claims and the award of 

compensation to informers in respect of such forfeitures shall 

apply to seizures and forfeitures incurred or alleged to have 

been incurred under the provisions of this section, insofar as 

applicable and not inconsistent with such provisions. Such 

duties as are imposed upon the collector of customs or any 

other person in respect to the seizure and forfeiture of vessels, 

vehicles, merchandise, and baggage under the customs laws 

shall be performed with respect to seizures and forfeitures of 

property used or intended for use in violation of this section 

by such officers, agents, or other persons as may be designated 

for that purpose by the Attorney General.

(e) This section shall not apply to any bingo game, lottery, or 

similar game of chance conducted by an organization exempt 

from tax under paragraph (3) of subsection (c) of section 501 

of the Internal Revenue Code of 1954, as amended, if no part 

of the gross receipts derived from such activity inures to the 

benefit of any private shareholder, member, or employee of 

such organization except as compensation for actual expenses 

incurred by him in the conduct of such activity.

Amended: Violent Crime Control and Law Enforcement Act of 

1994, Pub. L. 103-322, Title XXXIII, § 330016(1)(N), Sept. 13, 

1994, 108 Stat. 1796, 2148.
Asset Forfeiture Statutes • 57

18 U.S.C. § 1956

18 U.S.C. § 1956. Laundering of monetary 

instruments.

(a)(1) Whoever, knowing that the property involved in a 

financial transaction represents the proceeds of some form 

of unlawful activity, conducts or attempts to conduct such a 

financial transaction which in fact involves the proceeds of 

specified unlawful activity—

(A)(i) with the intent to promote the carrying on of 

specified unlawful activity; or

(ii) with intent to engage in conduct constituting 

a violation of section 7201 or 7206 of the Internal 

Revenue Code of 1986; or

(B) knowing that the transaction is designed in whole or 

in part—

(i) to conceal or disguise the nature, the location, the 

source, the ownership, or the control of the proceeds of 

specified unlawful activity; or

(ii) to avoid a transaction reporting requirement 

under State or Federal law,

shall be sentenced to a fine of not more than 

$500,000 or twice the value of the property involved in 

the transaction, whichever is greater, or imprisonment 

for not more than twenty years, or both. For purposes 

of this paragraph, a financial transaction shall be 

considered to be one involving the proceeds of specified 

unlawful activity if it is part of a set of parallel or 

dependent transactions, any one of which involves the 

proceeds of specified unlawful activity, and all of which 

are part of a single plan or arrangement.

(2) Whoever transports, transmits, or transfers, or attempts 

to transport, transmit, or transfer a monetary instrument or 

funds from a place in the United States to or through a place 

outside the United States or to a place in the United States 

from or through a place outside the United States—

(A) with the intent to promote the carrying on of 

specified unlawful activity; or

(B) knowing that the monetary instrument or funds 

involved in the transportation, transmission, or transfer 

represent the proceeds of some form of unlawful activity 

and knowing that such transportation, transmission, or 

transfer is designed in whole or in part—

(i) to conceal or disguise the nature, the location, the 

source, the ownership, or the control of the proceeds of 

specified unlawful activity; or

(ii) to avoid a transaction reporting requirement 

under State or Federal law,

shall be sentenced to a fine of not more than 

$500,000 or twice the value of the monetary instrument 

or funds involved in the transportation, transmission, or 

transfer whichever is greater, or imprisonment for not 

more than twenty years, or both. For the purpose of the 

offense described in subparagraph (B), the defendant’s 

knowledge may be established by proof that a law 

enforcement officer represented the matter specified 

in subparagraph (B) as true, and the defendant’s 

subsequent statements or actions indicate that the 

defendant believed such representations to be true.

(3) Whoever, with the intent—

(A) to promote the carrying on of specified unlawful 

activity;

(B) to conceal or disguise the nature, location, source, 

ownership, or control of property believed to be the 

proceeds of specified unlawful activity; or

(C) to avoid a transaction reporting requirement under 

State or Federal law,

conducts or attempts to conduct a financial transaction 

involving property represented to be the proceeds of 

specified unlawful activity, or property used to conduct or 

facilitate specified unlawful activity, shall be fined under 

this title or imprisoned for not more than 20 years, or both. 

For purposes of this paragraph and paragraph (2), the term 

“represented” means any representation made by a law 

enforcement officer or by another person at the direction 

of, or with the approval of, a Federal official authorized to 

investigate or prosecute violations of this section.

(b) Penalties.—

(1) In general.—Whoever conducts or attempts to conduct 

a transaction described in subsection (a)(1) or (a)(3), or section 

1957, or a transportation, transmission, or transfer described 

in subsection (a)(2), is liable to the United States for a civil 

penalty of not more than the greater of—

(A) the value of the property, funds, or monetary 

instruments involved in the transaction; or

(B) $10,000.

(2) Jurisdiction over foreign persons.—For purposes of 

adjudicating an action filed or enforcing a penalty ordered under 

this section, the district courts shall have jurisdiction over any 

foreign person, including any financial institution authorized 

under the laws of a foreign country, against whom the action is 

brought, if service of process upon the foreign person is made 

under the Federal Rules of Civil Procedure or the laws of the 

country in which the foreign person is found, and—
58 • Asset Forfeiture Statutes

18 U.S.C. § 1956 

(A) the foreign person commits an offense under 

subsection (a) involving a financial transaction that occurs 

in whole or in part in the United States;

(B) the foreign person converts, to his or her own use, 

property in which the United States has an ownership 

interest by virtue of the entry of an order of forfeiture by 

a court of the United States; or

(C) the foreign person is a financial institution that 

maintains a bank account at a financial institution in the 

United States.

(3) Court authority over assets.—A court may issue a 

pretrial restraining order or take any other action necessary 

to ensure that any bank account or other property held by 

the defendant in the United States is available to satisfy a 

judgment under this section.

(4) Federal receiver.—

(A) In general.—A court may appoint a Federal Receiver, 

in accordance with subparagraph (B) of this paragraph, to 

collect, marshal, and take custody, control, and possession 

of all assets of the defendant, wherever located, to satisfy a 

civil judgment under this subsection, a forfeiture judgment 

under section 981 or 982, or a criminal sentence under section 

1957 or subsection (a) of this section, including an order 

of restitution to any victim of a specified unlawful activity.

(B) Appointment and authority.—A Federal Receiver 

described in subparagraph (A)—

(i) may be appointed upon application of a Federal 

prosecutor or a Federal or State regulator, by the court 

having jurisdiction over the defendant in the case;

(ii) shall be an officer of the court, and the powers 

of the Federal Receiver shall include the powers set 

out in section 754 of title 28, United States Code; and

(iii) shall have standing equivalent to that of a 

Federal prosecutor for the purpose of submitting 

requests to obtain information regarding the assets of 

the defendant—

(I) from the Financial Crimes Enforcement 

Network of the Department of the Treasury; or

(II) from a foreign country pursuant to a mutual 

legal assistance treaty, multilateral agreement, or 

other arrangement for international law enforcement 

assistance, provided that such requests are in 

accordance with the policies and procedures of the 

Attorney General.

(c) As used in this section—

(1) the term “knowing that the property involved in a financial 

transaction represents the proceeds of some form of unlawful 

activity” means that the person knew the property involved in 

the transaction represented proceeds from some form, though 

not necessarily which form, of activity that constitutes a felony 

under State, Federal, or foreign law, regardless of whether or 

not such activity is specified in paragraph (7);

(2) the term “conducts” includes initiating, concluding, or 

participating in initiating, or concluding a transaction;

(3) the term “transaction” includes a purchase, sale, loan, 

pledge, gift, transfer, delivery, or other disposition, and with 

respect to a financial institution includes a deposit, withdrawal, 

transfer between accounts, exchange of currency, loan, extension 

of credit, purchase or sale of any stock, bond, certificate of 

deposit, or other monetary instrument, use of a safe deposit box, 

or any other payment, transfer, or delivery by, through, or to a 

financial institution, by whatever means effected;

(4) the term “financial transaction” means (A) a transaction 

which in any way or degree affects interstate or foreign 

commerce (i) involving the movement of funds by wire or other 

means or (ii) involving one or more monetary instruments, or (iii) 

involving the transfer of title to any real property, vehicle, vessel, 

or aircraft, or (B) a transaction involving the use of a financial 

institution which is engaged in, or the activities of which affect, 

interstate or foreign commerce in any way or degree;

(5) the term “monetary instruments” means (i) coin or 

currency of the United States or of any other country, travelers’ 

checks, personal checks, bank checks, and money orders, or (ii) 

investment securities or negotiable instruments, in bearer form 

or otherwise in such form that title thereto passes upon delivery;

(6) the term “financial institution” includes—

(A) any financial institution, as defined in section 

5312(a)(2) of title 31, United States Code, or the 

regulations promulgated thereunder; and

(B) any foreign bank, as defined in section 1 of the 

International Banking Act of 1978 (12 U.S.C. 3101);

(7) the term “specified unlawful activity” means—

(A) any act or activity constituting an offense listed in 

section 1961(1) of this title except an act which is indictable 

under subchapter II of chapter 53 of title 31;

(B) with respect to a financial transaction occurring in 

whole or in part in the United States, an offense against a 

foreign nation involving—

(i) the manufacture, importation, sale, or distribution 

of a controlled substance (as such term is defined for the 

purposes of the Controlled Substances Act);

(ii) murder, kidnapping, robbery, extortion, 

destruction of property by means of explosive or fire, 

or a crime of violence (as defined in section 16);
Asset Forfeiture Statutes • 59

18 U.S.C. § 1956

(iii) fraud, or any scheme or attempt to defraud, by 

or against a foreign bank (as defined in paragraph 7 of 

section 1(b) of the International Banking Act of 1978)); 

(iv) bribery of a public official, or the misappropriation, 

theft, or embezzlement of public funds by or for the 

benefit of a public official;

(v) smuggling or export control violations 

involving—

(I) an item controlled on the United States 

Munitions List established under section 38 of the 

Arms Export Control Act (22 U.S.C. 2778); or

(II) an item controlled under regulations under 

the Export Administration Regulations (15 C.F.R. 

Parts 730-774);

(vi) an offense with respect to which the United 

States would be obligated by a multilateral treaty, either 

to extradite the alleged offender or to submit the case 

for prosecution, if the offender were found within the 

territory of the United States; or

(vii) trafficking in persons, selling or buying of 

children, sexual exploitation of children, or transporting, 

recruiting or harboring a person, including a child, for 

commercial sex acts;

(C) any act or acts constituting a continuing criminal 

enterprise, as that term is defined in section 408 of the 

Controlled Substances Act (21 U.S.C. 848);

(D) an offense under section 32 (relating to the destruction 

of aircraft), section 37 (relating to violence at inter-national 

airports), section 115 (relating to influencing, impeding, 

or retaliating against a Federal official by threatening 

or injuring a family member), section 152 (relating to 

concealment of assets; false oaths and claims; bribery), 

section 175c (relating to the variola virus), section 215 

(relating to commissions or gifts for procuring loans), 

section 351 (relating to congressional or Cabinet officer 

assassination), any of sections 500 through 503 (relating 

to certain counterfeiting offenses), section 513 (relating 

to securities of States and private entities), section 541 

(relating to goods falsely classified), section 542 (relating 

to entry of goods by means of false statements), section 545 

(relating to smuggling goods into the United States), section 

549 (relating to removing goods from Customs custody), 

section 554 (relating to smuggling goods from the United 

States), section 555 (relating to border tunnels), section 641 

(relating to public money, property, or records), section 

656 (relating to theft, embezzlement, or misapplication by 

bank officer or employee), section 657 (relating to lending, 

credit, and insurance institutions), section 658 (relating to 

property mortgaged or pledged to farm credit agencies), 

section 666 (relating to theft or bribery concerning programs 

receiving Federal funds), section 793, 794, or 798 (relating 

to espionage), section 831 (relating to prohibited transactions 

involving nuclear materials), section 844(f) or (i) (relating 

to destruction by explosives or fire of Government property 

or property affecting interstate or foreign commerce), 

section 875 (relating to interstate communications), section 

922(1) (relating to the unlawful importation of firearms), 

section 924(n) (relating to firearms trafficking), section 

956 (relating to conspiracy to kill, kidnap, maim, or injure 

certain property in a foreign country), section 1005 (relating 

to fraudulent bank entries), 1006 (relating to fraudulent 

Federal credit institution entries), 1007 (relating to fraudulent 

Federal Deposit Insurance transactions), 1014 (relating to 

fraudulent loan or credit applications), section 1030 (relating 

to computer fraud and abuse), 1032 (relating to concealment 

of assets from conservator, receiver, or liquidating agent 

of financial institution), section 1111 (relating to murder), 

section 1114 (relating to murder of United States law 

enforcement officials), section 1116 (relating to murder of 

foreign officials, official guests, or internationally protected 

persons), section 1201 (relating to kidnaping), section 1203 

(relating to hostage taking), section 1361 (relating to willful 

injury of Government property), section 1363 (relating to 

destruction of property within the special maritime and 

territorial jurisdiction), section 1708 (theft from the mail), 

section 1751 (relating to Presidential assassination), section 

2113 or 2114 (relating to bank and postal robbery and theft), 

section 2252A (relating to child pornography) where the 

child pornography contains a visual depiction of an actual 

minor engaging in sexually explicit conduct, section 2260 

(production of certain child pornography for importation into 

the United States), section 2280 (relating to violence against 

maritime navigation), section 2281 (relating to violence 

against maritime fixed platforms), section 2319 (relating to 

copyright infringement), section 2320 (relating to trafficking 

in counterfeit goods and services), section 2332 (relating to 

terrorist acts abroad against United States nationals), section 

2332a (relating to use of weapons of mass destruction), 

section 2332b (relating to international terrorist acts 

transcending national boundaries), section 2332g (relating to 

missile systems designed to destroy aircraft), section 2332h 

(relating to radiological dispersal devices), section 2339A or 

2339B (relating to providing material support to terrorists), 

section 2339C (relating to financing of terrorism), or section 

2339D (relating to receiving military-type training from a 

foreign terrorist organization) of this title, section 46502 

of title 49, United States Code, a felony violation of the 

Chemical Diversion and Trafficking Act of 1988 (relating 

to precursor and essential chemicals), section 590 of the 

Tariff Act of 1930 (19 U.S.C. 1590) (relating to aviation 

smuggling), section 422 of the Controlled Substances Act 

(relating to transportation of drug paraphernalia), section 

38(c) (relating to criminal violations) of the Arms Export 

Control Act, section 11 (relating to violations) of the 
60 • Asset Forfeiture Statutes

18 U.S.C. § 1956 

Export Administration Act of 1979, section 206 (relating to 

penalties) of the International Emergency Economic Powers 

Act, section 16 (relating to offenses and punishment) of the 

Trading with the Enemy Act, any felony violation of section 

15 of the Food and Nutrition Act of 2008 [7 U.S.C.A. § 

2024] (relating to supplemental nutrition assistance program 

benefits fraud) involving a quantity of benefits having a value 

of not less than $5,000, any violation of section 543(a)(1) 

of the Housing Act of 1949 [42 U.S.C.A. § 1490s(a)(1)] 

(relating to equity skimming), any felony violation of the 

Foreign Agents Registration Act of 1938, any felony violation 

of the Foreign Corrupt Practices Act, or section 92 of the 

Atomic Energy Act of 1954 (42 U.S.C. 2122) (relating to 

prohibitions governing atomic weapons) 

ENVIRONMENTAL CRIMES

(E) a felony violation of the Federal Water Pollution 

Control Act (33 U.S.C. 1251 et seq.), the Ocean Dumping 

Act (33 U.S.C. 1401 et seq.), the Act to Prevent Pollution 

from Ships (33 U.S.C. 1901 et seq.), the Safe Drinking 

Water Act (42 U.S.C. 300f et seq.), or the Resources 

Conservation and Recovery Act (42 U.S.C. 6901 et seq.); or

(F) any act or activity constituting an offense involving 

a Federal health care offense;

(8) the term “State” includes a State of the United States, 

the District of Columbia, and any commonwealth, territory, 

or possession of the United States; and

(9) the term “proceeds” means any property derived from or 

obtained or retained, directly or indirectly, through some form of 

unlawful activity, including the gross receipts of such activity.

(d) Nothing in this section shall supersede any provision of 

Federal, State, or other law imposing criminal penalties or 

affording civil remedies in addition to those provided for in 

this section.

(e) Violations of this section may be investigated by such 

components of the Department of Justice as the Attorney 

General may direct, and by such components of the Department 

of the Treasury as the Secretary of the Treasury may direct, 

as appropriate, and, with respect to offenses over which the 

Department of Homeland Security has jurisdiction, by such 

components of the Department of Homeland Security as the 

Secretary of Homeland Security may direct, and, with respect 

to offenses over which the United States Postal Service has 

jurisdiction, by the Postal Service. Such authority of the 

Secretary of the Treasury, the Secretary of Homeland Security, 

and the Postal Service shall be exercised in accordance with an 

agreement which shall be entered into by the Secretary of the 

Treasury, the Secretary of Homeland Security, the Postal Service, 

and the Attorney General. Violations of this section involving 

offenses de-scribed in paragraph (c)(7)(E) may be investigated 

by such components of the Department of Justice as the Attorney 

General may direct, and the National Enforcement Investigations 

Center of the Environmental Protection Agency.

(f) There is extraterritorial jurisdiction over the conduct 

prohibited by this section if—

(1) the conduct is by a United States citizen or, in the case 

of a non-United States citizen, the conduct occurs in part in 

the United States; and

(2) the transaction or series of related transactions involves 

funds or monetary instruments of a value exceeding $10,000.

(g) Notice of conviction of financial institutions.—If any 

financial institution or any officer, director, or employee of 

any financial institution has been found guilty of an offense 

under this section, section 1957 or 1960 of this title, or section 

5322 or 5324 of title 31, the Attorney General shall provide 

written notice of such fact to the appropriate regulatory agency 

for the financial institution.

(h) Any person who conspires to commit any offense defined 

in this section or section 1957 shall be subject to the same 

penalties as those prescribed for the offense the commission 

of which was the object of the conspiracy.

(i) Venue.—(1) Except as provided in paragraph (2), a 

prosecution for an offense under this section or section 1957 

may be brought in—

(A) any district in which the financial or monetary 

transaction is conducted; or

(B) any district where a prosecution for the underlying 

specified unlawful activity could be brought, if the 

defendant participated in the transfer of the proceeds of the 

specified unlawful activity from that district to the district 

where the financial or monetary transaction is conducted.

(2) A prosecution for an attempt or conspiracy offense 

under this section or section 1957 may be brought in the 

district where venue would lie for the completed offense 

under paragraph (1), or in any other district where an act in 

furtherance of the attempt or conspiracy took place.

(3) For purposes of this section, a transfer of funds from 1 

place to another, by wire or any other means, shall constitute 

a single, continuing transaction. Any person who conducts 

(as that term is defined in subsection (c)(2)) any portion of 

the transaction may be charged in any district in which the 

transaction takes place.

Amended: Border Tunnel Prevention Act of 2012, Pub.L. 112-

127, § 6, June 5, 2012, 126 Stat. 371.

See “Appendix A” for a list of all violations of federal 

and state or foreign law identified as “specified 

unlawful activity” under 18 U.S.C. § 1956(c)(7).
Asset Forfeiture Statutes • 61

18 U.S.C. § 1961(1)

18 U.S.C. § 1960. Prohibition of unlicensed 

money transmitting businesses.

(a) Whoever knowingly conducts, controls, manages, 

supervises, directs, or owns all or part of an unlicensed money 

transmitting business, shall be fined in accordance with this 

title or imprisoned not more than 5 years, or both.

(b) As used in this section—

(1) the term “unlicensed money transmitting business” 

means a money transmitting business which affects interstate 

or foreign commerce in any manner or degree and—

(A) is operated without an appropriate money 

transmitting license in a State where such operation is 

punishable as a misdemeanor or a felony under State 

law, whether or not the defendant knew that the operation 

was required to be licensed or that the operation was so 

punishable;

(B) fails to comply with the money transmitting 

business registration requirements under section 5330 of 

title 31, United States Code, or regulations prescribed under 

such section; or

(C) otherwise involves the transportation or transmission 

of funds that are known to the defendant to have been 

derived from a criminal offense or are intended to be used 

to promote or support unlawful activity;

(2) the term “money transmitting” includes transferring 

funds on behalf of the public by any and all means including 

but not limited to transfers within this country or to locations 

abroad by wire, check, draft, facsimile, or courier; and

(3) the term “State” means any State of the United States, 

the District of Columbia, the Northern Mariana Islands, and any 

commonwealth, territory, or possession of the United States.

Amended: Violence Against Women and Department of Justice 

Reauthorization Act of 2005, Pub. L. 109-162, Title XI, 

§ 1171(a)(2), Jan. 5, 2006, 119 Stat. 2960, 3123.

18 U.S.C. § 1961(1). Definitions.

As used in this chapter—

(1) “racketeering activity” means (A) any act or threat 

involving murder, kidnapping, gambling, arson, robbery, 

bribery, extortion, dealing in obscene matter, or dealing in a 

controlled substance or listed chemical (as defined in section 

102 of the Controlled Substances Act), which is chargeable 

under State law and punishable by imprisonment for more 

than one year; (B) any act which is indictable under any 

of the following provisions of title 18, United States Code: 

Section 201 (relating to bribery), section 224 (relating to sports 

bribery), sections 471, 472, and 473 (relating to counterfeiting), 

section 659 (relating to theft from interstate shipment) if the act 

indictable under section 659 is felonious, section 664 (relating 

to embezzlement from pension and welfare funds), sections 

891-894 (relating to extortionate credit transactions), section 

1028 (relating to fraud and related activity in connection with 

identification documents), section 1029 (relating to fraud and 

related activity in connection with access devices), section 

1084 (relating to the transmission of gambling information), 

section 1341 (relating to mail fraud), section 1343 (relating to 

wire fraud), section 1344 (relating to financial institution fraud), 

section 1351 (relating to fraud in foreign labor contracting), 

section 1425 (relating to the procurement of citizenship or 

nationalization unlawfully), section 1426 (relating to the 

reproduction of naturalization or citizenship papers), section 

1427 (relating to the sale of naturalization or citizenship 

papers), sections 1461-1465 (relating to obscene matter), 

section 1503 (relating to obstruction of justice), section 1510 

(relating to obstruction of criminal investigations), section 1511 

(relating to the obstruction of State or local law enforcement), 

section 1512 (relating to tampering with a witness, victim, or 

an informant), section 1513 (relating to retaliating against a 

witness, victim, or an informant), section 1542 (relating to 

false statement in application and use of passport), section 

1543 (relating to forgery or false use of passport), section 1544 

(relating to misuse of passport), section 1546 (relating to fraud 

and misuse of visas, permits, and other documents), sections 

1581-1592 (relating to peonage, slavery, and trafficking in 

persons), section 1951 (relating to interference with commerce, 

robbery, or extortion), section 1952 (relating to racketeering), 

section 1953 (relating to interstate transportation of wagering 

paraphernalia), section 1954 (relating to unlawful welfare fund 

payments), section 1955 (relating to the prohibition of illegal 

gambling businesses), section 1956 (relating to the laundering 

of monetary instruments), section 1957 (relating to engaging 

in monetary transactions in property derived from specified 

unlawful activity), section 1958 (relating to use of interstate 

commerce facilities in the commission of murder-for-hire), 

section 1960 (relating to illegal money transmitters), sections 

2251, 2251A, 2252, and 2260 (relating to sexual exploitation 

of children), sections 2312 and 2313 (relating to interstate 

transportation of stolen motor vehicles), sections 2314 and 

2315 (relating to interstate transportation of stolen property), 

section 2318 (relating to trafficking in counterfeit labels for 

phonorecords, computer programs or computer program 

documentation or packaging and copies of motion pictures or 

other audiovisual works), section 2319 (relating to criminal 

infringement of a copyright), section 2319A (relating to 

unauthorized fixation of and trafficking in sound recordings 

and music videos of live musical performances), section 2320 

(relating to trafficking in goods or services bearing counterfeit 

marks), section 2321 (relating to trafficking in certain motor 

vehicles or motor vehicle parts), sections 2341-2346 (relating 

to trafficking in contraband cigarettes), sections 2421-24 
62 • Asset Forfeiture Statutes

18 U.S.C. § 1963 

(relating to white slave traffic), sections 175-178 (relating to 

biological weapons), sections 229-229F (relating to chemical 

weapons), section 831 (relating to nuclear materials), (C) an act 

which is indictable under title 29, United States Code, section 

186 (dealing with restrictions on payments and loans to labor 

organizations) or section 501(c) (relating to embezzlement 

from union funds), (D) any offense involving fraud connected 

with a case under title 11 (except a case under section 157 

of this title), fraud in the sale of securities, or the felonious 

manufacture, importation, receiving, concealment, buying, 

selling, or otherwise dealing in a controlled substance or 

listed chemical (as defined in section 102 of the Controlled 

Substances Act), punishable under any law of the United 

States, (E) any act which is indictable under the Currency 

and Foreign Transactions Reporting Act, (F) any act which is 

indictable under the Immigration and Nationality Act, section 

274 (relating to bringing in and harboring certain aliens), 

section 277 (relating to aiding or assisting certain aliens to 

enter the United States), or section 278 (relating to importation 

of alien for immoral purpose) if the act indictable under such 

section of such Act was committed for the purpose of financial 

gain, or (G) any act that is indictable under any provision listed 

in section 2332b(g)(5)(B).

Amended: Violence Against Women Reauthorization Act of 

2013, Pub. L. 113-4, Title XII, § 1211(a), March 7, 2013, 127 

Stat. 142.

18 U.S.C. § 1963. Criminal penalties. (RICO)

(a) Whoever violates any provision of section 1962 of this 

chapter shall be fined under this title or imprisoned not 

more than 20 years (or for life if the violation is based on a 

racketeering activity for which the maximum penalty includes 

life imprisonment), or both, and shall forfeit to the United 

States, irrespective of any provision of State law—

(1) any interest the person has acquired or maintained in 

violation of section 1962;

(2) any—

(A) interest in;

(B) security of;

(C) claim against; or

(D) property or contractual right of any kind affording a 

source of influence over; any enterprise which the person has 

established, operated, controlled, conducted, or participated 

in the conduct of, in violation of section 1962; and

(3) any property constituting, or derived from, any 

proceeds which the person obtained, directly or indirectly, 

from racketeering activity or unlawful debt collection in 

violation of section 1962.

The court, in imposing sentence on such person shall order, 

in addition to any other sentence imposed pursuant to this 

section, that the person forfeit to the United States all property 

described in this subsection. In lieu of a fine otherwise 

authorized by this section, a defendant who derives profits or 

other proceeds from an offense may be fined not more than 

twice the gross profits or other proceeds.

(b) Property subject to criminal forfeiture under this section 

includes—

(1) real property, including things growing on, affixed to, 

and found in land; and

(2) tangible and intangible personal property, including 

rights, privileges, interests, claims, and securities.

(c) All right, title, and interest in property described in 

subsection (a) vests in the United States upon the commission 

of the act giving rise to forfeiture under this section. Any such 

property that is subsequently transferred to a person other 

than the defendant may be the subject of a special verdict 

of forfeiture and thereafter shall be ordered forfeited to the 

United States, unless the transferee establishes in a hearing 

pursuant to subsection (l) that he is a bona fide purchaser 

for value of such property who at the time of purchase was 

reasonably without cause to believe that the property was 

subject to forfeiture under this section.

(d)(1) Upon application of the United States, the court may 

enter a restraining order or injunction, require the execution 

of a satisfactory performance bond, or take any other 

action to preserve the availability of property described in 

subsection (a) for forfeiture under this section—

(A) upon the filing of an indictment or information 

charging a violation of section 1962 of this chapter and 

alleging that the property with respect to which the order 

is sought would, in the event of conviction, be subject to 

forfeiture under this section; or

(B) prior to the filing of such an indictment or 

information, if, after notice to persons appearing to have 

an interest in the property and opportunity for a hearing, 

the court determines that—

(i) there is a substantial probability that the United 

States will prevail on the issue of forfeiture and that 

failure to enter the order will result in the property 

being destroyed, removed from the jurisdiction of the 

court, or otherwise made unavailable for forfeiture; and

(ii) the need to preserve the availability of the 

property through the entry of the requested order 

outweighs the hardship on any party against whom the 

order is to be entered:

Provided, however, That an order entered pursuant to 

subparagraph (B) shall be effective for not more than 

ninety days, unless extended by the court for good cause 
Asset Forfeiture Statutes • 63

18 U.S.C. § 1963

shown or unless an indictment or information described in 

subparagraph (A) has been filed.

(2) A temporary restraining order under this subsection may 

be entered upon application of the United States without notice 

or opportunity for a hearing when an information or indictment 

has not yet been filed with respect to the property, if the United 

States demonstrates that there is probable cause to believe that 

the property with respect to which the order is sought would, in 

the event of conviction, be subject to forfeiture under this section 

and that provision of notice will jeopardize the availability of 

the property for forfeiture. Such a temporary order shall expire 

not more than fourteen days after the date on which it is entered, 

unless extended for good cause shown or unless the party against 

whom it is entered consents to an extension for a longer period. 

A hearing requested concerning an order entered under this 

paragraph shall be held at the earliest possible time, and prior 

to the expiration of the temporary order.

(3) The court may receive and consider, at a hearing held 

pursuant to this subsection, evidence and information that 

would be inadmissible under the Federal Rules of Evidence.

(e) Upon conviction of a person under this section, the court 

shall enter a judgment of forfeiture of the property to the United 

States and shall also authorize the Attorney General to seize all 

property ordered forfeited upon such terms and conditions as 

the court shall deem proper. Following the entry of an order 

declaring the property forfeited, the court may, upon application 

of the United States, enter such appropriate restraining orders or 

injunctions, require the execution of satisfactory performance 

bonds, appoint receivers, conservators, appraisers, accountants, 

or trustees, or take any other action to protect the interest of the 

United States in the property ordered forfeited. Any income 

accruing to, or derived from, an enterprise or an interest in an 

enterprise which has been ordered forfeited under this section 

may be used to offset ordinary and necessary expenses to the 

enterprise which are required by law, or which are necessary to 

protect the interests of the United States or third parties.

(f) Following the seizure of property ordered forfeited under 

this section, the Attorney General shall direct the disposition 

of the property by sale or any other commercially feasible 

means, making due provision for the rights of any innocent 

persons. Any property right or interest not exercisable by, or 

transferable for value to, the United States shall expire and 

shall not revert to the defendant, nor shall the defendant or any 

person acting in concert with or on behalf of the defendant be 

eligible to purchase forfeited property at any sale held by the 

United States. Upon application of a person, other than the 

defendant or a person acting in concert with or on behalf of the 

defendant, the court may restrain or stay the sale or disposition 

of the property pending the conclusion of any appeal of the 

criminal case giving rise to the forfeiture, if the applicant 

demonstrates that proceeding with the sale or disposition of 

the property will result in irreparable injury, harm or loss to 

him. Notwithstanding 31 U.S.C. § 3302(b), the proceeds of 

any sale or other disposition of property forfeited under this 

section and any moneys forfeited shall be used to pay all proper 

expenses for the forfeiture and the sale, including expenses of 

seizure, maintenance and custody of the property pending its 

disposition, advertising and court costs. The Attorney General 

shall deposit in the Treasury any amounts of such proceeds or 

moneys remaining after the payment of such expenses.

(g) With respect to property ordered forfeited under this 

section, the Attorney General is authorized to—

(1) grant petitions for mitigation or remission of forfeiture, 

restore forfeited property to victims of a violation of this 

chapter, or take any other action to protect the rights of 

innocent persons which is in the interest of justice and which 

is not inconsistent with the provisions of this chapter;

(2) compromise claims arising under this section;

(3) award compensation to persons providing information 

resulting in a forfeiture under this section; 

(4) direct the disposition by the United States of all property 

ordered forfeited under this section by public sale or any other 

commercially feasible means, making due provision for the 

rights of innocent persons; and

(5) take appropriate measures necessary to safeguard and 

maintain property ordered forfeited under this section pending 

its disposition.

(h) The Attorney General may promulgate regulations with 

respect to—

(1) making reasonable efforts to provide notice to persons 

who may have an interest in property ordered forfeited under 

this section;

(2) granting petitions for remission or mitigation of 

forfeiture;

(3) the restitution of property to victims of an offense 

petitioning for remission or mitigation of forfeiture under 

this chapter;

(4) the disposition by the United States of forfeited property 

by public sale or other commercially feasible means;

(5) the maintenance and safekeeping of any property 

forfeited under this section pending its disposition; and

(6) the compromise of claims arising under this chapter.

Pending the promulgation of such regulations, all provisions of 

law relating to the disposition of property, or the proceeds from 

the sale thereof, or the remission or mitigation of forfeitures 

for violation of the customs laws, and the compromise 

of claims and the award of compensation to informers in 

respect of such forfeitures shall apply to forfeitures incurred, 

or alleged to have been incurred, under the provisions of 

this section, insofar as applicable and not inconsistent with 

the provisions hereof. Such duties as are imposed upon the 
64 • Asset Forfeiture Statutes

18 U.S.C. § 1963 

Customs Service or any person with respect to the disposition 

of property under the customs law shall be performed under 

this chapter by the Attorney General.

(i) Except as provided in subsection (l), no party claiming an 

interest in property subject to forfeiture under this section may—

(1) intervene in a trial or appeal of a criminal case involving 

the forfeiture of such property under this section; or

(2) commence an action at law or equity against the 

United States concerning the validity of his alleged interest 

in the property subsequent to the filing of an indictment or 

information alleging that the property is subject to forfeiture 

under this section.

(j) The district courts of the United States shall have 

jurisdiction to enter orders as provided in this section without 

regard to the location of any property which may be subject 

to forfeiture under this section or which has been ordered 

forfeited under this section.

(k) In order to facilitate the identification or location of 

property declared forfeited and to facilitate the disposition 

of petitions for remission or mitigation of forfeiture, after the 

entry of an order declaring property forfeited to the United 

States the court may, upon application of the United States, 

order that the testimony of any witness relating to the property 

forfeited be taken by deposition and that any designated 

book, paper, document, record, recording, or other material 

not privileged be produced at the same time and place, in the 

same manner as provided for the taking of depositions under 

Rule 15 of the Federal Rules of Criminal Procedure.

(l)(1) Following the entry of an order of forfeiture under this 

section, the United States shall publish notice of the order 

and of its intent to dispose of the property in such manner 

as the Attorney General may direct. The Government may 

also, to the extent practicable, provide direct written notice to 

any person known to have alleged an interest in the property 

that is the subject of the order of forfeiture as a substitute for 

published notice as to those persons so notified.

(2) Any person, other than the defendant, asserting a 

legal interest in property which has been ordered forfeited to 

the United States pursuant to this section may, within thirty 

days of the final publication of notice or his receipt of notice 

under paragraph (1), whichever is earlier, petition the court 

for a hearing to adjudicate the validity of his alleged interest 

in the property. The hearing shall be held before the court 

alone, without a jury.

(3) The petition shall be signed by the petitioner under 

penalty of perjury and shall set forth the nature and extent of 

the petitioner’s right, title, or interest in the property, the time 

and circumstances of the petitioner’s acquisition of the right, 

title, or interest in the property, any additional facts supporting 

the petitioner’s claim, and the relief sought.

(4) The hearing on the petition shall, to the extent 

practicable and consistent with the interests of justice, be 

held within thirty days of the filing of the petition. The court 

may consolidate the hearing on the petition with a hearing on 

any other petition filed by a person other than the defendant 

under this subsection.

(5) At the hearing, the petitioner may testify and present 

evidence and witnesses on his own behalf, and cross-examine 

witnesses who appear at the hearing. The United States may 

present evidence and witnesses in rebuttal and in defense of 

its claim to the property and cross-examine witnesses who 

appear at the hearing. In addition to testimony and evidence 

presented at the hearing, the court shall consider the relevant 

portions of the record of the criminal case which resulted in 

the order of forfeiture.

(6) If, after the hearing, the court determines that the petitioner 

has established by a preponderance of the evidence that—

(A) the petitioner has a legal right, title, or interest in 

the property, and such right, title, or interest renders the 

order of forfeiture invalid in whole or in part because the 

right, title, or interest was vested in the petitioner rather 

than the defendant or was superior to any right, title, or 

interest of the defendant at the time of the commission of 

the acts which gave rise to the forfeiture of the property 

under this section; or

(B) the petitioner is a bona fide purchaser for value of 

the right, title, or interest in the property and was at the 

time of purchase reasonably without cause to believe that 

the property was subject to forfeiture under this section;

the court shall amend the order of forfeiture in accordance 

with its determination.

(7) Following the court’s disposition of all petitions filed 

under this subsection, or if no such petitions are filed following 

the expiration of the period provided in paragraph (2) for the 

filing of such petitions, the United States shall have clear title 

to property that is the subject of the order of forfeiture and may 

warrant good title to any subsequent purchaser or transferee.

(m) If any of the property described in subsection (a), as a 

result of any act or omission of the defendant—

(1) cannot be located upon the exercise of due diligence;

(2) has been transferred or sold to, or deposited with, a 

third party;

(3) has been placed beyond the jurisdiction of the court;

(4) has been substantially diminished in value; or

(5) has been commingled with other property which cannot 

be divided without difficulty;
Asset Forfeiture Statutes • 65

18 U.S.C. § 2253

the court shall order the forfeiture of any other property of 

the defendant up to the value of any property described in 

paragraphs (1) through (5).

Amended: Statutory Time-Periods Technical Amendments Act of 

2009, Pub. L. 111-16, § 3(4), May 7, 2009, 123 Stat. 1607.

18 U.S.C. § 2232. Destruction or removal of 

property to prevent seizure.

(a) Destruction or removal of property to prevent seizure.—

Whoever, before, during, or after any search for or seizure 

of property by any person authorized to make such search or 

seizure, knowingly destroys, damages, wastes, disposes of, 

transfers, or otherwise takes any action, or knowingly attempts 

to destroy, damage, waste, dispose of, transfer, or otherwise 

take any action, for the purpose of preventing or impairing 

the Government’s lawful authority to take such property into 

its custody or control or to continue holding such property 

under its lawful custody and control, shall be fined under this 

title or imprisoned not more than 5 years, or both.

(b) Impairment of in rem jurisdiction.—Whoever, knowing 

that property is subject to the in rem jurisdiction of a United 

States court for purposes of civil forfeiture under Federal law, 

knowingly and without authority from that court, destroys, 

damages, wastes, disposes of, transfers, or otherwise takes 

any action, or knowingly attempts to destroy, damage, waste, 

dispose of, transfer, or otherwise take any action, for the 

purpose of impairing or defeating the court’s continuing in 

rem jurisdiction over the property, shall be fined under this 

title or imprisoned not more than 5 years, or both.

(c) Notice of search or execution of seizure warrant or 

warrant of arrest in rem.—Whoever, having knowledge that 

any person authorized to make searches and seizures, or to 

execute a seizure warrant or warrant of arrest in rem, in order 

to prevent the authorized seizing or securing of any person or 

property, gives notice or attempts to give notice in advance 

of the search, seizure, or execution of a seizure warrant or 

warrant of arrest in rem, to any person shall be fined under 

this title or imprisoned not more than 5 years, or both.

(d) Notice of certain electronic surveillance.—Whoever, 

having knowledge that a Federal investigative or law 

enforcement officer has been authorized or has applied for 

authorization under chapter 119 to intercept a wire, oral, or 

electronic communication, in order to obstruct, impede, or 

prevent such interception, gives notice or attempts to give 

notice of the possible interception to any person shall be fined 

under this title or imprisoned not more than five years, or both.

(e) Foreign intelligence surveillance.—Whoever, having 

knowledge that a Federal officer has been authorized or has 

applied for authorization to conduct electronic surveillance 

under the Foreign Intelligence Surveillance Act of 1978 

(50 U.S.C. § 1801, et seq.), in order to obstruct, impede, or 

prevent such activity, gives notice or attempts to give notice 

of the possible activity to any person shall be fined under this 

title or imprisoned not more than five years, or both.

Amended: Civil Asset Forfeiture Reform Act (CAFRA) of 2000, 

Pub. L. 106-185, § 12, Apr. 25, 2000, 114 Stat. 202, 218.

18 U.S.C. § 2233. Rescue of seized property.

Whoever forcibly rescues, dispossesses, or attempts to rescue 

or dispossess any property, articles, or objects after the same 

shall have been taken, detained, or seized by any officer or 

other person under the authority of any revenue law of the 

United States, or by any person authorized to make searches 

and seizures, shall be fined under this title or imprisoned not 

more than two years, or both.

Amended: Violent Crime Control and Law Enforcement Act of 

1994, Pub. L. 103-322, Title XXXIII, § 330016(1)(I), Sept. 13, 

1994, 108 Stat. 1796, 2147.

18 U.S.C. § 2253. Criminal forfeiture. (For child 

pornography)

(a) Property subject to criminal forfeiture.—A person who is 

convicted of an offense under this chapter involving a visual 

depiction described in section 2251, 2251A, 2252, 2252A, or 

2260 of this chapter or who is convicted of an offense under 

section 2252B of this chapter, or who is convicted of an offense 

under chapter 109A, shall forfeit to the United States such 

person’s interest in—

(1) any visual depiction described in section 2251, 2251A, 

or 2252[,] 2252A, 2252B, or 2260 of this chapter, or any book, 

magazine, periodical, film, videotape, or other matter which 

contains any such visual depiction, which was produced, 

transported, mailed, shipped or received in violation of this 

chapter;

(2) any property, real or personal, constituting or traceable to 

gross profits or other proceeds obtained from such offense; and

(3) any property, real or personal, used or intended to be 

used to commit or to promote the commission of such offense 

or any property traceable to such property.

(b) Section 413 of the Controlled Substances Act (21 U.S.C. 

853) with the exception of subsections (a) and (d), applies to 

the criminal forfeiture of property pursuant to subsection (a).

Amended: Adam Walsh Child Protection And Safety Act of 

2006, Pub. L. 109-248, Title V, § 505(b), (c), July 27, 2006, 

120 Stat. 630.
66 • Asset Forfeiture Statutes

18 U.S.C. § 2254 

18 U.S.C. § 2254. Civil forfeiture. (For child 

pornography)

Any property subject to forfeiture pursuant to section 2253 

may be forfeited to the United States in a civil case in 

accordance with the procedures set forth in chapter 46.

Amended: Adam Walsh Child Protection And Safety Act of 2006, 

Pub. L. 109-248, Title V, § 505(d), July 27, 2006, 120 Stat. 630.

18 U.S.C. § 2318(d). Trafficking in counterfeit 

labels for phonorecords, copies of 

computer programs or computer program 

documentation or packaging, and copies of 

motion pictures or other audio visual works, 

and trafficking in counterfeit computer 

program documentation or packaging.

(d) Forfeiture and destruction of property; restitution.—

Forfeiture, destruction, and restitution relating to this section 

shall be subject to section 2323, to the extent provided in that 

section, in addition to any other similar remedies provided 

by law.

Amended: Copyright Cleanup, Clarification, and Corrections Act 

of 2010, Pub. L. 111-295, § 6(i), Dec. 9, 2010, 124 Stat. 3182. 

Section (d) was not affected. 

18 U.S.C. § 2319A. Unauthorized fixation of 

and trafficking in sound recordings and music 

videos of live performances.

(a) Offense. Whoever, without the consent of the performer 

or performers involved, knowingly and for purposes of 

commercial advantage or private financial gain—

(1) fixes the sounds or sounds and images of a live musical 

performance in a copy or phonorecord, or reproduces copies 

or phonorecords of such a performance from an unauthorized 

fixation;

(2) transmits or otherwise communicates to the public the 

sounds or sounds and images of a live musical performance; or

(3) distributes or offers to distribute, sells or offers to sell, 

rents or offers to rent, or traffics in any copy or phonorecord 

fixed as described in paragraph (1), regardless of whether the 

fixations occurred in the United States; 

shall be imprisoned for not more than 5 years or fined in the 

amount set forth in this title, or both, or if the offense is a 

second or subsequent offense, shall be imprisoned for not 

more than 10 years or fined in the amount set forth in this 

title, or both. 

(b) Forfeiture and destruction of property; restitution.—

Forfeiture, destruction, and restitution relating to this section shall 

be subject to section 2323, to the extent provided in that section, 

in addition to any other similar remedies provided by law.

(c) Seizure and forfeiture.—If copies or phonorecords of 

sounds or sounds and images of a live musical performance 

are fixed outside of the United States without the consent 

of the performer or performers involved, such copies or 

phonorecords are subject to seizure and forfeiture in the 

United States in the same manner as property imported in 

violation of the customs laws. The Secretary of Homeland 

Security shall issue regulations by which any performer may, 

upon payment of a specified fee, be entitled to notification 

by United States Customs and Border Protection of the 

importation of copies or phonorecords that appear to consist 

of unauthorized fixations of the sounds or sounds and images 

of a live musical performance.

(d) Victim impact statement.

(1) During preparation of the presentence report pursuant 

to Rule 32(c) of the Federal Rules of Criminal Procedure, 

victims of the offense shall be permitted to submit, and the 

probation officer shall receive, a victim impact statement that 

identifies the victim of the offense and the extent and scope 

of the injury and loss suffered by the victim, including the 

estimated economic impact of the offense on that victim.

(2) Persons permitted to submit victim impact statements 

shall include—

(A) producers and sellers of legitimate works affected 

by conduct involved in the offense;

(B) holders of intellectual property rights in such 

works; and

(C) the legal representatives of such producers, sellers, 

and holders. 

(e) Definitions. As used in this section—

(1) the terms “copy”, “fixed”, “musical work”, “phonorecord”, 

“reproduce”, “sound recordings”, and “transmit” mean those 

terms within the meaning of title 17; and

(2) the term “traffic” has the same meaning as in section 

2320(e) of this title. 

(f) Use. This section shall apply to any Act or Acts that occur 

on or after the date of the enactment of the Uruguay Round 

Agreements Act.

Amended: Prioritizing Resources and Organization for 

Intellectual Property Act of 2008, Pub. L. 110-403, Title II, 

§ 203, Oct. 13, 2008, 122 Stat. 4261.
Asset Forfeiture Statutes • 67

18 U.S.C. § 2320

18 U.S.C. § 2319B. Unauthorized recording of 

Motion pictures in a Motion picture exhibition 

facility.

(a) Offense.—Any person who, without the authorization of 

the copyright owner, knowingly uses or attempts to use an 

audiovisual recording device to transmit or make a copy of 

a motion picture or other audiovisual work protected under 

title 17, or any part thereof, from a performance of such work 

in a motion picture exhibition facility, shall—

(1) be imprisoned for not more than 3 years, fined under 

this title, or both; or

(2) if the offense is a second or subsequent offense, be 

imprisoned for no more than 6 years, fined under this title, 

or both.

The possession by a person of an audiovisual recording device 

in a motion picture exhibition facility may be considered as 

evidence in any proceeding to determine whether that person 

committed an offense under this subsection, but shall not, by 

itself, be sufficient to support a conviction of that person for 

such offense.

(b) Forfeiture and destruction of property; restitution.—

Forfeiture, destruction, and restitution relating to this section 

shall be subject to section 2323, to the extent provided in that 

section, in addition to any other similar remedies provided 

by law.

(c) Authorized activities.—This section does not prevent any 

lawfully authorized investigative, protective, or intelligence 

activity by an officer, agent, or employee of the United States, 

a State, or a political subdivision of a State, or by a person 

acting under a contract with the United States, a State, or a 

political subdivision of a State.

(d) Immunity for theaters.—With reasonable cause, the 

owner or lessee of a motion picture exhibition facility where 

a motion picture or other audiovisual work is being exhibited, 

the authorized agent or employee of such owner or lessee, 

the licensor of the motion picture or other audiovisual work 

being exhibited, or the agent or employee of such licensor—

(1) may detain, in a reasonable manner and for a reasonable 

time, any person suspected of a violation of this section with 

respect to that motion picture or audiovisual work for the 

purpose of questioning or summoning a law enforcement 

officer; and

(2) shall not be held liable in any civil or criminal action 

arising out of a detention under paragraph (1).

(e) Victim impact statement.—

(1) In general.—During the preparation of the presentence 

report under rule 32(c) of the Federal Rules of Criminal 

Procedure, victims of an offense under this section shall be 

permitted to submit to the probation officer a victim impact 

statement that identifies the victim of the offense and the extent 

and scope of the injury and loss suffered by the victim, including 

the estimated economic impact of the offense on that victim.

(2) Contents.—A victim impact statement submitted under 

this subsection shall include—

(A) producers and sellers of legitimate works affected 

by conduct involved in the offense;

(B) holders of intellectual property rights in the works 

described in subparagraph (A); and

(C) the legal representatives of such producers, sellers, 

and holders.

(f) State law not preempted.—Nothing in this section may be 

construed to annul or limit any rights or remedies under the 

laws of any State.

(g) Definitions.—In this section, the following definitions 

shall apply:

(1) Title 17 definitions.—The terms “audiovisual work”, 

“copy”, “copyright owner”, “motion picture”, “motion picture 

exhibition facility”, and “transmit” have, respectively, the 

meanings given those terms in section 101 of title 17.

(2) Audiovisual recording device.—The term “audiovisual 

recording device” means a digital or analog photographic 

or video camera, or any other technology or device capable 

of enabling the recording or transmission of a copyrighted 

motion picture or other audiovisual work, or any part thereof, 

regardless of whether audiovisual recording is the sole or 

primary purpose of the device.

Amended: Prioritizing Resources and Organization for 

Intellectual Property Act of 2008, Pub. L. 110-403, Title II, 

§ 204, Oct. 13, 2008, 122 Stat. 4261.

18 U.S.C. § 2320. Trafficking in counterfeit 

goods or services. 

(a) Offenses.—Whoever intentionally—

(1) traffics in goods or services and knowingly uses a 

counterfeit mark on or in connection with such goods or 

services,

(2) traffics in labels, patches, stickers, wrappers, badges, 

emblems, medallions, charms, boxes, containers, cans, cases, 

hangtags, documentation, or packaging of any type or nature, 

knowing that a counterfeit mark has been applied thereto, the 

use of which is likely to cause confusion, to cause mistake, 

or to deceive,

(3) traffics in goods or services knowing that such good 

or service is a counterfeit military good or service the use, 
68 • Asset Forfeiture Statutes

18 U.S.C. § 2320 

malfunction, or failure of which is likely to cause serious 

bodily injury or death, the disclosure of classified information, 

impairment of combat operations, or other significant harm 

to a combat operation, a member of the Armed Forces, or to 

national security, or

(4) traffics in a counterfeit drug, or attempts or conspires 

to violate any of paragraphs (1) through (4) shall be punished 

as provided in subsection (b).

(b) Penalties.—

(1) In general.—Whoever commits an offense under 

subsection (a)—

(A) if an individual, shall be fined not more than 

$2,000,000 or imprisoned not more than 10 years, or both, 

and, if a person other than an individual, shall be fined not 

more than $5,000,000; and

(B) for a second or subsequent offense under subsection 

(a), if an individual, shall be fined not more than 

$5,000,000 or imprisoned not more than 20 years, or both, 

and if other than an individual, shall be fined not more 

than $15,000,000.

(2) Serious bodily injury or death.—

(A) Serious bodily injury.—Whoever knowingly or 

recklessly causes or attempts to cause serious bodily injury 

from conduct in violation of subsection (a), if an individual, 

shall be fined not more than $ 5,000,000 or imprisoned 

for not more than 20 years, or both, and if other than an 

individual, shall be fined not more than $15,000,000.

(B) Death.—Whoever knowingly or recklessly causes 

or attempts to cause death from conduct in violation of 

subsection (a), if an individual, shall be fined not more 

than $5,000,000 or imprisoned for any term of years or 

for life, or both, and if other than an individual, shall be 

fined not more than $15,000,000.

(3) Counterfeit military goods or services and counterfeit 

drugs.—Whoever commits an offense under subsection (a) 

involving a counterfeit military good or service or counterfeit 

drug—

(A) if an individual, shall be fined not more than 

$5,000,000, imprisoned not more than 20 years, or both, 

and if other than an individual, be fined not more than 

$15,000,000; and

(B) for a second or subsequent offense, if an individual, 

shall be fined not more than $15,000,000, imprisoned not 

more than 30 years, or both, and if other than an individual, 

shall be fined not more than $30,000,000.

(c) Forfeiture and destruction of property; restitution.—

Forfeiture, destruction, and restitution relating to this section 

shall be subject to section 2323, to the extent provided in that 

section, in addition to any other similar remedies provided 

by law.

(d) Defenses.—All defenses, affirmative defenses, and 

limitations on remedies that would be applicable in an action 

under the Lanham Act shall be applicable in a prosecution 

under this section. In a prosecution under this section, the 

defendant shall have the burden of proof, by a preponderance 

of the evidence, of any such affirmative defense.

(e) Presentence report.—(1) During preparation of the 

presentence report pursuant to Rule 32(c) of the Federal 

Rules of Criminal Procedure, victims of the offense shall be 

permitted to submit, and the probation officer shall receive, a 

victim impact statement that identifies the victim of the offense 

and the extent and scope of the injury and loss suffered by 

the victim, including the estimated economic impact of the 

offense on that victim.

(2) Persons permitted to submit victim impact statements 

shall include—

(A) producers and sellers of legitimate goods or services 

affected by conduct involved in the offense;

(B) holders of intellectual property rights in such goods 

or services; and

(C) the legal representatives of such producers, sellers, 

and holders.

(f) Definitions.—For the purposes of this section—

(1) the term “counterfeit mark” means—

(A) a spurious mark—

(i) that is used in connection with trafficking 

in any goods, services, labels, patches, stickers, 

wrappers, badges, emblems, medallions, charms, boxes, 

containers, cans, cases, hangtags, documentation, or 

packaging of any type or nature;

(ii) that is identical with, or substantially 

indistinguishable from, a mark registered on the 

principal register in the United States Patent and 

Trademark Office and in use, whether or not the 

defendant knew such mark was so registered;

(iii) that is applied to or used in connection with the 

goods or services for which the mark is registered with 

the United States Patent and Trademark Office, or is 

applied to or consists of a label, patch, sticker, wrapper, 

badge, emblem, medallion, charm, box, container, can, 

case, hangtag, documentation, or packaging of any 

type or nature that is designed, marketed, or otherwise 

intended to be used on or in connection with the goods 

or services for which the mark is registered in the United 

States Patent and Trademark Office; and
Asset Forfeiture Statutes • 69

18 U.S.C. § 2320

(iv) the use of which is likely to cause confusion, to 

cause mistake, or to deceive; or

(B) a spurious designation that is identical with, or 

substantially indistinguishable from, a designation as to 

which the remedies of the Lanham Act are made available 

by reason of section 220506 of title 36; but such term does 

not include any mark or designation used in connection 

with goods or services, or a mark or designation applied 

to labels, patches, stickers, wrappers, badges, emblems, 

medallions, charms, boxes, containers, cans, cases, 

hangtags, documentation, or packaging of any type or 

nature used in connection with such goods or services, of 

which the manufacturer or producer was, at the time of the 

manufacture or production in question, authorized to use 

the mark or designation for the type of goods or services 

so manufactured or produced, by the holder of the right 

to use such mark or designation;

(2) the term “financial gain” includes the receipt, or 

expected receipt, of anything of value;

(3) the term “Lanham Act” means the Act entitled “An Act 

to provide for the registration and protection of trademarks 

used in commerce, to carry out the provisions of certain 

international conventions, and for other purposes”, approved 

July 5, 1946 (15 U.S.C. 1051 et seq.);

(4) the term “counterfeit military good or service” means 

a good or service that uses a counterfeit mark on or in 

connection with such good or service and that—

(A) is falsely identified or labeled as meeting military 

specifications, or

(B) is intended for use in a military or national security 

application;

(5) the term “traffic” means to transport, transfer, or 

otherwise dispose of, to another, for purposes of commercial 

advantage or private financial gain, or to make, import, export, 

obtain control of, or possess, with intent to so transport, 

transfer, or otherwise dispose of; and

(6) the term “counterfeit drug” means a drug, as defined 

by section 201 of the Federal Food, Drug, and Cosmetic Act, 

that uses a counterfeit mark on or in connection with the drug.

(g) Limitation on cause of action.—Nothing in this section 

shall entitle the United States to bring a criminal cause of 

action under this section for the repackaging of genuine goods 

or services not intended to deceive or confuse.

(h) Report to Congress.—(1) Beginning with the first year after 

the date of enactment of this subsection, the Attorney General 

shall include in the report of the Attorney General to Congress 

on the business of the Department of Justice prepared pursuant 

to section 522 of title 28, an accounting, on a district by district 

basis, of the following with respect to all actions taken by the 

Department of Justice that involve trafficking in counterfeit 

labels for phonorecords, copies of computer programs or 

computer program documentation or packaging, copies of 

motion pictures or other audiovisual works (as defined in 

section 2318 of this title), criminal infringement of copyrights 

(as defined in section 2319 of this title), unauthorized fixation 

of and trafficking in sound recordings and music videos of live 

musical performances (as defined in section 2319A of this title), 

or trafficking in goods or services bearing counterfeit marks (as 

defined in section 2320 of this title):

(A) The number of open investigations.

(B) The number of cases referred by the United States 

Customs Service.

(C) The number of cases referred by other agencies 

or sources.

(D) The number and outcome, including settlements, 

sentences, recoveries, and penalties, of all prosecutions 

brought under sections 2318, 2319, 2319A, and 2320 of 

title 18.

(2)(A) The report under paragraph (1), with respect to 

criminal infringement of copyright, shall include the following:

(i) The number of infringement cases in these 

categories: audiovisual (videos and films); audio 

(sound recordings); literary works (books and musical 

compositions); computer programs; video games; and, 

others.

(ii) The number of online infringement cases.

(iii) The number and dollar amounts of fines 

assessed in specific categories of dollar amounts. These 

categories shall be: no fines ordered; fines under $500; 

fines from $500 to $1,000; fines from $1,000 to $5,000; 

fines from $5,000 to $10,000; and fines over $10,000.

(iv) The total amount of restitution ordered in all 

copyright infringement cases.

(B) In this paragraph, the term “online infringement 

cases” as used in paragraph (2) means those cases where 

the infringer—

(i) advertised or publicized the infringing work on 

the Internet; or

(ii) made the infringing work available on the 

Internet for download, reproduction, performance, or 

distribution by other persons.

(C) The information required under subparagraph (A) 

shall be submitted in the report required in fiscal year 2005 

and thereafter.

(i) Transshipment and exportation.—No goods or 

services, the trafficking in of which is prohibited by 

this section, shall be transshipped through or exported 
70 • Asset Forfeiture Statutes

18 U.S.C. § 2323 

from the United States. Any such transshipment or 

exportation shall be deemed a violation of section 42 

of an Act to provide for the registration of trademarks 

used in commerce, to carry out the provisions of certain 

international conventions, and for other purposes, 

approved July 5, 1946 (commonly referred to as the 

“Trademark Act of 1946” or the “Lanham Act”).

Amended: Food and Drug Administration Safety and Innovation 

Act, Pub. L. 112-144, Title VII, § 717(a)(1) to (3), July 9, 2012, 

126 Stat. 1076. 

18 U.S.C. § 2323. Forfeiture, destruction, and 

restitution.

(a) Civil forfeiture.—

(1) Property subject to forfeiture.—The following property 

is subject to forfeiture to the United States Government:

(A) Any article, the making or trafficking of which is, 

prohibited under section 506 of title 17, or section 2318, 

2319, 2319A, 2319B, or 2320, or chapter 90, of this title.

(B) Any property used, or intended to be used, in any 

manner or part to commit or facilitate the commission of 

an offense referred to in subparagraph (A).

(C) Any property constituting or derived from any 

proceeds obtained directly or indirectly as a result of the 

commission of an offense referred to in subparagraph (A).

(2) Procedures.—The provisions of chapter 46 relating to 

civil forfeitures shall extend to any seizure or civil forfeiture 

under this section. For seizures made under this section, 

the court shall enter an appropriate protective order with 

respect to discovery and use of any records or information 

that has been seized. The protective order shall provide for 

appropriate procedures to ensure that confidential, private, 

proprietary, or privileged information contained in such 

records is not improperly disclosed or used. At the conclusion 

of the forfeiture proceedings, unless otherwise requested 

by an agency of the United States, the court shall order that 

any property forfeited under paragraph (1) be destroyed, or 

otherwise disposed of according to law.

(b) Criminal forfeiture.—

(1) Property subject to forfeiture.—The court, in imposing 

sentence on a person convicted of an offense under section 

506 of title 17, or section 2318, 2319, 2319A, 2319B, or 

2320, or chapter 90, of this title, shall order, in addition to any 

other sentence imposed, that the person forfeit to the United 

States Government any property subject to forfeiture under 

subsection (a) for that offense.

(2) Procedures.—

(A) In general.—The forfeiture of property under 

paragraph (1), including any seizure and disposition of 

the property and any related judicial or administrative 

proceeding, shall be governed by the procedures set 

forth in section 413 of the Comprehensive Drug Abuse 

Prevention and Control Act of 1970 (21 U.S.C. 853), other 

than subsection (d) of that section.

(B) Destruction.—At the conclusion of the forfeiture 

proceedings, the court, unless otherwise requested by an 

agency of the United States shall order that any—

(i) forfeited article or component of an article bearing 

or consisting of a counterfeit mark be destroyed or 

otherwise disposed of according to law; and

(ii) infringing items or other property described in 

subsection (a)(1)(A) and forfeited under paragraph (1) 

of this subsection be destroyed or otherwise disposed 

of according to law.

(c) Restitution.—When a person is convicted of an offense 

under section 506 of title 17 or section 2318, 2319, 2319A, 

2319B, or 2320, or chapter 90, of this title, the court, 

pursuant to sections 3556, 3663A, and 3664 of this title, 

shall order the person to pay restitution to any victim of the 

offense as an offense against property referred to in section 

3663A(c)(1)(A)(ii) of this title.

Enacted: Prioritizing Resources and Organization for Intellectual 

Property Act of 2008, Pub. L. 110-403, Title II, § 206(a), 

Oct. 13, 2008, 122 Stat. 4262.

18 U.S.C. § 2331. Definitions. (Terrorism)

As used in this chapter—

(1) the term “international terrorism” means activities that—

(A) involve violent acts or acts dangerous to human 

life that are a violation of the criminal laws of the United 

States or of any State, or that would be a criminal violation 

if committed within the jurisdiction of the United States 

or of any State;

(B) appear to be intended—

(i) to intimidate or coerce a civilian population;

(ii) to influence the policy of a government by 

intimidation or coercion; or

(iii) to affect the conduct of a government by mass 

destruction, assassination, or kidnapping; and

(C) occur primarily outside the territorial jurisdiction 

of the United States, or transcend national boundaries in 

terms of the means by which they are accomplished, the 
Asset Forfeiture Statutes • 71

18 U.S.C. § 2332b(g)(5)

persons they appear intended to intimidate or coerce, or the 

locale in which their perpetrators operate or seek asylum;

(2) the term “national of the United States” has the meaning 

given such term in section 101(a)(22) of the Immigration and 

Nationality Act;

(3) the term “person” means any individual or entity 

capable of holding a legal or beneficial interest in property;

(4) the term “act of war” means any act occurring in the 

course of—

(A) declared war;

(B) armed conflict, whether or not war has been 

declared, between two or more nations; or

(C) armed conflict between military forces of any 

origin; and

(5) the term “domestic terrorism” means activities that—

(A) involve acts dangerous to human life that are a 

violation of the criminal laws of the United States or of 

any State;

(B) appear to be intended—

(i) to intimidate or coerce a civilian population;

(ii) to influence the policy of a government by 

intimidation or coercion; or

(iii) to affect the conduct of a government by mass 

destruction, assassination, or kidnapping; and

(C) occur primarily within the territorial jurisdiction 

of the United States.

Amended: Uniting and Strengthening America by Providing 

Appropriate Tools Required to Intercept and Obstruct Terrorism 

(USA PATRIOT) Act of 2001, Pub. L. 107-56, Title VIII, 

§ 802(a), Oct. 26, 2001, 115 Stat. 272, 376.

18 U.S.C. § 2332b(g)(5). Definition. (Federal 

crime of terrorism)

(g)(5) the term “Federal crime of terrorism” means an offense 

that—

(A) is calculated to influence or affect the conduct of 

government by intimidation or coercion, or to retaliate 

against government conduct; and

(B) is a violation of—

(i) section 32 (relating to destruction of aircraft 

or aircraft facilities), 37 (relating to violence at 

international airports), 81 (relating to arson within 

special maritime and territorial jurisdiction), 175 or 

175b (relating to biological weapons), 175c (relating 

to variola virus), 229 (relating to chemical weapons), 

subsection (a), (b), (c), or (d) of section 351 (relating to 

congressional, cabinet, and Supreme Court assassination 

and kidnaping), 831 (relating to nuclear materials), 832 

(relating to participation in nuclear and weapons of 

mass destruction threats to the United States) 842(m) 

or (n) (relating to plastic explosives), 844(f)(2) or (3) 

(relating to arson and bombing of Government property 

risking or causing death), 844(i) (relating to arson and 

bombing of property used in interstate commerce), 

930(c) (relating to killing or attempted killing during an 

attack on a Federal facility with a dangerous weapon), 

956(a)(1) (relating to conspiracy to murder, kidnap, 

or maim persons abroad), 1030(a)(1) (relating to 

protection of computers), 1030(a)(5)(A) resulting in 

damage as defined in 1030(c)(4)(A)(i)(II) through (VI) 

(relating to protection of computers), 1114 (relating to 

killing or attempted killing of officers and employees 

of the United States), 1116 (relating to murder or 

manslaughter of foreign officials, official guests, or 

internationally protected persons), 1203 (relating 

to hostage taking), 1361 (relating to government 

property or contracts), 1362 (relating to destruction 

of communication lines, stations, or systems), 1363 

(relating to injury to buildings or property within 

special maritime and territorial jurisdiction of the 

United States), 1366(a) (relating to destruction of an 

energy facility), 1751(a), (b), (c), or (d) (relating to 

Presidential and Presidential staff assassination and 

kidnaping), 1992 (relating to terrorist attacks and 

other acts of violence against railroad carriers and 

against mass transportation systems on land, on water, 

or through the air), 2155 (relating to destruction of 

national defense materials, premises, or utilities), 2156 

(relating to national defense material, premises, or 

utilities), 2280 (relating to violence against maritime 

navigation), 2281 (relating to violence against maritime 

fixed platforms), 2332 (relating to certain homicides and 

other violence against United States nationals occurring 

outside of the United States), 2332a (relating to use of 

weapons of mass destruction), 2332b (relating to acts 

of terrorism transcending national boundaries), 2332f 

(relating to bombing of public places and facilities), 

2332g (relating to missile systems designed to destroy 

aircraft), 2332h (relating to radiological dispersal 

devices), 2339 (relating to harboring terrorists), 2339A 

(relating to providing material support to terrorists), 

2339B (relating to providing material support to 

terrorist organizations), 2339C (relating to financing 

of terrorism), 2339D (relating to military-type training 

from a foreign terrorist organization), or 2340A 

(relating to torture) of this title;
72 • Asset Forfeiture Statutes

18 U.S.C. § 2344 

(ii) sections 92 (relating to prohibitions governing 

atomic weapons) or 236 (relating to sabotage of nuclear 

facilities or fuel) of the Atomic Energy Act of 1954 

(42 U.S.C. 2122 or 2284);

(iii) section 46502 (relating to aircraft piracy), the 

second sentence of section 46504 (relating to assault 

on a flight crew with a dangerous weapon), section 

46505(b)(3) or (c) (relating to explosive or incendiary 

devices, or endangerment of human life by means of 

weapons, on aircraft), section 46506 if homicide or 

attempted homicide is involved (relating to application 

of certain criminal laws to acts on aircraft), or section 

60123(b) (relating to destruction of interstate gas or 

hazardous liquid pipeline facility) of title 49; or

(iv) section 1010A of the Controlled Substances 

Import and Export Act (relating to narco-terrorism).

Amended: Secret Service Protection to Former Vice Presidents, 

Pub. L. 110-326, Title II, § 204(b), Sept. 26, 2008, 122 Stat. 3562.

18 U.S.C. § 2344. Penalties. (Trafficking in 

contraband cigarettes)

(a) Whoever knowingly violates section 2342(a) of this title 

shall be fined under this title or imprisoned not more than 

five years, or both.

(b) Whoever knowingly violates any rule or regulation 

promulgated under section 2343(a) or 2346 of this title or 

violates section 2342(b) of this title shall be fined under this 

title or imprisoned not more than three years, or both.

(c) Any contraband cigarettes or contraband smokeless tobacco 

involved in any violation of the provisions of this chapter shall 

be subject to seizure and forfeiture, and all provisions of the 

Internal Revenue Code of 1986 relating to the seizure and 

forfeiture. The provisions of chapter 46 of title 18 relating to 

civil forfeitures shall extend to any seizure or civil forfeiture 

under this section. Any cigarettes or smokeless tobacco so 

seized and forfeited shall be either—

(1) destroyed and not resold; or

(2) used for undercover investigative operations for the 

detection and prosecution of crimes, and then destroyed and 

not resold.

Amended: USA Patriot Improvement and Reauthorization Act 

of 2005, Pub. L. 109-177, Title I, § 121(b)(4), (d), Mar. 9, 2006, 

120 Stat. 192, 222, 223.

18 U.S.C. § 2428. Forfeitures. (Transportation 

for illegal sexual activity and related crimes) 

(a) In general. The court, in imposing sentence on any 

person convicted of a violation of this chapter, shall order, 

in addition to any other sentence imposed and irrespective 

of any provision of State law, that such person shall forfeit 

to the United States—

(1) such person’s interest in any property, real or personal, 

that was used or intended to be used to commit or to facilitate 

the commission of such violation; and

(2) any property, real or personal, constituting or derived 

from any proceeds that such person obtained, directly or 

indirectly, as a result of such violation.

(b) Property subject to forfeiture.

(1) In general. The following shall be subject to forfeiture 

to the United States and no property right shall exist in them:

(A) Any property, real or personal, used or intended to 

be used to commit or to facilitate the commission of any 

violation of this chapter.

(B) Any property, real or personal, that constitutes or 

is derived from proceeds traceable to any violation of this 

chapter.

(2) Applicability of chapter 46. The provisions of chapter 

46 of this title relating to civil forfeitures shall apply to any 

seizure or civil forfeiture under this subsection.

Enacted: Trafficking Victims Protection Reauthorization Act 

of 2005, Pub. L. 109-164, Title I, § 103(d)(1), Jan. 10, 2006, 

119 Stat. 3558, 3563. 

18 U.S.C. § 2513. Confiscation of wire, oral, 

or electronic communication intercepting 

devices.

Any electronic, mechanical, or other device used, sent, carried, 

manufactured, assembled, possessed, sold, or advertised in 

violation of section 2511 or section 2512 of this chapter may 

be seized and forfeited to the United States. All provisions of 

law relating to (1) the seizure, summary and judicial forfeiture, 

and condemnation of vessels, vehicles, merchandise, and 

baggage for violations of the customs laws contained in title 

19 of the United States Code, (2) the disposition of such 

vessels, vehicles, merchandise, and baggage or the proceeds 

from the sale thereof, (3) the remission or mitigation of such 

forfeiture, (4) the compromise of claims, and (5) the award 

of compensation to informers in respect of such forfeitures, 

shall apply to seizures and forfeitures incurred, or alleged 

to have been incurred, under the provisions of this section, 
Asset Forfeiture Statutes • 73

18 U.S.C. § 3322

insofar as applicable and not inconsistent with the provisions 

of this section; except that such duties as are imposed upon the 

collector of customs or any other person with respect to the 

seizure and forfeiture of vessels, vehicles, merchandise, and 

baggage under the provisions of the customs laws contained 

in title 19 of the United States Code shall be performed with 

respect to seizure and forfeiture of electronic, mechanical, or 

other intercepting devices under this section by such officers, 

agents, or other persons as may be authorized or designated 

for that purpose by the Attorney General.

Amended: Electronic Communications Privacy Act of 1986, 

Pub. L. 99-508, Title I, § 101(c)(1)(A), Oct. 21, 1986, 

100 Stat. 1848, 1851.

18 U.S.C. § 3051. Powers of special agents of 

Bureau of Alcohol, Tobacco, Firearms, and 

Explosives.

(a) Special agents of the Bureau of Alcohol, Tobacco, 

Firearms, and Explosives, as well as any other investigator 

or officer charged by the Attorney General with the duty of 

enforcing any of the criminal, seizure, or forfeiture provisions 

of the laws of the United States, may carry firearms, serve 

warrants and subpoenas issued under the authority of the 

United States and make arrests without warrant for any offense 

against the United States committed in their presence, or for 

any felony cognizable under the laws of the United States if 

they have reasonable grounds to believe that the person to be 

arrested has committed or is committing such felony.

(b) Any special agent of the Bureau of Alcohol, Tobacco, 

Firearms, and Explosives may, in respect to the performance 

of his or her duties, make seizures of property subject to 

forfeiture to the United States.

(c)(1) Except as provided in paragraphs (2) and (3), and 

except to the extent that such provisions conflict with the 

provisions of section 983 of title 18, United States Code, 

insofar as section 983 applies, the provisions of the Customs 

laws relating to—

(A) the seizure, summary and judicial forfeiture, and 

condemnation of property;

(B) the disposition of such property;

(C) the remission or mitigation of such forfeiture; and

(D) the compromise of claims,

shall apply to seizures and forfeitures incurred, or alleged to 

have been incurred, under any applicable provision of law 

enforced or administered by the Bureau of Alcohol, Tobacco, 

Firearms, and Explosives.

(2) For purposes of paragraph (1), duties that are imposed 

upon a customs officer or any other person with respect to the 

seizure and forfeiture of property under the customs laws of 

the United States shall be performed with respect to seizures 

and forfeitures of property under this section by such officers, 

agents, or any other person as may be authorized or designated 

for that purpose by the Attorney General.

(3) Notwithstanding any other provision of law, the 

disposition of firearms forfeited by reason of a violation of any 

law of the United States shall be governed by the provisions 

of section 5872(b) of the Internal Revenue Code of 1986.

Enacted: Homeland Security Act of 2002, Pub. L. 107-296, 

Title XI, § 1113, Nov. 25, 2002, 116 Stat. 2135, 2279.

18 U.S.C. § 3322. Use of grand jury information 

in forfeiture proceedings.

(a) A person who is privy to grand jury information—

(1) received in the course of duty as an attorney for the 

government; or

(2) disclosed under rule 6(e)(3)(A)(ii) of the Federal Rules 

of Criminal Procedure;

may disclose that information to an attorney for the 

government for use in enforcing section 951 of the Financial 

Institutions Reform, Recovery and Enforcement Act of 1989 

or for use in connection with any civil forfeiture provision 

of Federal law.

(b)(1) Upon motion of an attorney for the government, a court 

may direct disclosure of matters occurring before a grand 

jury during an investigation of a banking law violation to 

identified personnel of a Federal or State financial institution 

regulatory agency—

(A) for use in relation to any matter within the 

jurisdiction of such regulatory agency; or

(B) to assist an attorney for the government to whom 

matters have been disclosed under subsection (a).

(2) A court may issue an order under paragraph (1) at any 

time during or after the completion of the investigation of the 

grand jury, upon a finding of a substantial need.

(c) A person to whom matter has been disclosed under this 

section shall not use such matter other than for the purpose 

for which such disclosure was authorized.

(d) As used in this section—

(1) the term “banking law violation” means a violation of, 

or a conspiracy to violate—
74 • Asset Forfeiture Statutes

18 U.S.C. § 3486 

(A) section 215, 656, 657, 1005, 1006, 1007, 1014, 

1344, 1956, or 1957; or

(B) section 1341 or 1343 affecting a financial 

institution; or

(C) any provision of subchapter II of chapter 53 of title 

31, United States Code;

(2) the term “attorney for the government” has the meaning 

given such term in the Federal Rules of Criminal Procedure; 

and

(3) the term “grand jury information” means matters 

occurring before a grand jury other than the deliberations of 

the grand jury or the vote of any grand juror.

Amended: Law Enforcement Tribute Act, Pub. L. 107-273, 

Div. C, Title I, § 11002, Nov. 2, 2002, 116 Stat. 1758, 1816.

18 U.S.C. § 3486. Administrative subpoenas

(a) Authorization.—

(1) (A) In any investigation of—

(i) (I) a Federal health care offense; or

(II) a Federal offense involving the sexual exploitation 

or abuse of children, the Attorney General; or

(ii) an unregistered sex offender conducted by the 

United States Marshals Service, the Director of the United 

States Marshals Service; or

(iii) an offense under section 871 or 879, or a threat 

against a person protected by the United States Secret 

Service under paragraph (5) or (6) of section 3056,1 if the 

Director of the Secret Service determines that the threat 

constituting the offense or the threat against the person 

protected is imminent, the Secretary of the Treasury, 

may issue in writing and cause to be served a subpoena 

requiring the production and testimony described in 

subparagraph (B).

(B) Except as provided in subparagraph (C), a subpoena 

issued under subparagraph (A) may require—

(i) the production of any records or other things 

relevant to the investigation; and

(ii) testimony by the custodian of the things 

required to be produced concerning the production and 

authenticity of those things.

(C) A subpoena issued under subparagraph (A) with 

respect to a provider of electronic communication service 

or remote computing service, in an investigation of a 

1

 So in original. Probably should be section “3056(a),”.

Federal offense involving the sexual exploitation or abuse 

of children shall not extend beyond—

(i) requiring that provider to disclose the information 

specified in section 2703 (c)(2), which may be relevant 

to an authorized law enforcement inquiry; or

(ii) requiring a custodian of the records of that 

provider to give testimony concerning the production 

and authentication of such records or information.

(D) As used in this paragraph, the term “Federal offense 

involving the sexual exploitation or abuse of children” 

means an offense under section 1201, 1591, 2241 (c), 2242, 

2243, 2251, 2251A, 2252, 2252A, 2260, 2421, 2422, or 

2423, in which the victim is an individual who has not 

attained the age of 18 years.

(2) A subpoena under this subsection shall describe the 

objects required to be produced and prescribe a return date 

within a reasonable period of time within which the objects 

can be assembled and made available.

(3) The production of records relating to a Federal health 

care offense shall not be required under this section at any 

place more than 500 miles distant from the place where the 

subpoena for the production of such records is served. The 

production of things in any other case may be required from 

any place within the United States or subject to the laws or 

jurisdiction of the United States.

(4) Witnesses subpoenaed under this section shall be paid 

the same fees and mileage that are paid witnesses in the courts 

of the United States.

(5) At any time before the return date specified in the 

summons, the person or entity summoned may, in the United 

States district court for the district in which that person or 

entity does business or resides, petition for an order modifying 

or setting aside the summons, or a prohibition of disclosure 

ordered by a court under paragraph (6).

(6)(A) A United State2 district court for the district in 

which the summons is or will be served, upon application of 

the United States, may issue an ex parte order that no person 

or entity disclose to any other person or entity (other than to 

an attorney in order to obtain legal advice) the existence of 

such summons for a period of up to 90 days.

(B) Such order may be issued on a showing that the 

things being sought may be relevant to the investigation 

and there is reason to believe that such disclosure may 

result in—

(i) endangerment to the life or physical safety of 

any person;

(ii) flight to avoid prosecution;

2

 So in original.
Asset Forfeiture Statutes • 75

18 U.S.C. § 3552(d).

(iii) destruction of or tampering with evidence; or

(iv) intimidation of potential witnesses.

(C) An order under this paragraph may be renewed for 

additional periods of up to 90 days upon a showing that 

the circumstances described in subparagraph (B) continue 

to exist.

(7) A summons issued under this section shall not require 

the production of anything that would be protected from 

production under the standards applicable to a subpoena 

duces tecum issued by a court of the United States.

(8) If no case or proceeding arises from the production 

of records or other things pursuant to this section within a 

reasonable time after those records or things are produced, 

the agency to which those records or things were delivered 

shall, upon written demand made by the person producing 

those records or things, return them to that person, except 

where the production required was only of copies rather 

than originals.

(9) A subpoena issued under paragraph (1)(A)(i)(II) or 

(1)(A)(ii) may require production as soon as possible, but 

in no event less than 24 hours after service of the subpoena.

(10) As soon as practicable following the issuance of a 

subpoena under paragraph (1)(A)(ii), the Secretary of the 

Treasury shall notify the Attorney General of its issuance.

(b) Service.— A subpoena issued under this section may be 

served by any person who is at least 18 years of age and is 

designated in the subpoena to serve it. Service upon a natural 

person may be made by personal delivery of the subpoena 

to him. Service may be made upon a domestic or foreign 

corporation or upon a partnership or other unincorporated 

association which is subject to suit under a common name, 

by delivering the subpoena to an officer, to a managing 

or general agent, or to any other agent authorized by 

appointment or by law to receive service of process. The 

affidavit of the person serving the subpoena entered on a 

true copy thereof by the person serving it shall be proof of 

service.

(c) Enforcement.— In the case of contumacy by or refusal to 

obey a subpoena issued to any person, the Attorney General 

may invoke the aid of any court of the United States within 

the jurisdiction of which the investigation is carried on 

or of which the subpoenaed person is an inhabitant, or in 

which he carries on business or may be found, to compel 

compliance with the subpoena. The court may issue an 

order requiring the subpoenaed person to appear before the 

Attorney General to produce records, if so ordered, or to give 

testimony concerning the production and authentication of 

such records. Any failure to obey the order of the court may 

be punished by the court as a contempt thereof. All process 

in any such case may be served in any judicial district in 

which such person may be found.

(d) Immunity From Civil Liability.— Notwithstanding any 

Federal, State, or local law, any person, including officers, 

agents, and employees, receiving a subpoena under this 

section, who complies in good faith with the subpoena and 

thus produces the materials sought, shall not be liable in 

any court of any State or the United States to any customer 

or other person for such production or for nondisclosure of 

that production to the customer.

(e) Limitation on Use.—

(1) Health information about an individual that is disclosed 

under this section may not be used in, or disclosed to any 

person for use in, any administrative, civil, or criminal action 

or investigation directed against the individual who is the 

subject of the information unless the action or investigation 

arises out of and is directly related to receipt of health care or 

payment for health care or action involving a fraudulent claim 

related to health; or if authorized by an appropriate order of 

a court of competent jurisdiction, granted after application 

showing good cause therefor.

(2) In assessing good cause, the court shall weigh the 

public interest and the need for disclosure against the injury 

to the patient, to the physician-patient relationship, and to the 

treatment services.

(3) Upon the granting of such order, the court, in 

determining the extent to which any disclosure of all or any 

part of any record is necessary, shall impose appropriate 

safeguards against unauthorized disclosure.

Amended: Child Protection Act of 2012, Pub. L. 112-206, § 4(a), 

Dec. 7, 2012, 126 Stat. 1492.

18 U.S.C. § 3552(d). Disclosure of presentence 

reports.

The court shall assure that a report filed pursuant to this section 

is disclosed to the defendant, the counsel for the defendant, 

and the attorney for the Government at least ten days prior 

to the date set for sentencing, unless this minimum period is 

waived by the defendant. The court shall provide a copy of 

the presentence report to the attorney for the Government to 

use in collecting an assessment, criminal fine, forfeiture or 

restitution imposed.

Amended: Crime Control Act of 1990, Pub. L. 101-647, 

Title XXXVI, § 3625, Nov. 29, 1990, 104 Stat. 4789, 4965.
76 • Asset Forfeiture Statutes

18 U.S.C. § 3554 

18 U.S.C. § 3554. Order of criminal forfeiture.

The court, in imposing a sentence on a defendant who has 

been found guilty of an offense described in section 1962 of 

this title or in title II or III of the Comprehensive Drug Abuse 

Prevention and Control Act of 1970 shall order, in addition 

to the sentence that is imposed pursuant to the provisions of 

section 3551, that the defendant forfeit property to the United 

States in accordance with the provisions of section 1963 of 

this title or section 413 of the Comprehensive Drug Abuse 

and Control Act of 1970.

Enacted: Sentencing Reform Act of 1984, Pub. L. 98-473, 

Title II, § 212(a)(2), Oct. 12, 1984, 98 Stat. 1837, 1990.

18 U.S.C. § 3665. Firearms possessed by 

convicted felons.

A judgment of conviction for transporting a stolen motor 

vehicle in interstate or foreign commerce or for committing 

or attempting to commit a felony in violation of any law of the 

United States involving the use of threats, force, or violence or 

perpetrated in whole or in part by the use of firearms, may, in 

addition to the penalty provided by law for such offense, order 

the confiscation and disposal of firearms and ammunition 

found in the possession or under the immediate control of 

the defendant at the time of his arrest.

The court may direct the delivery of such firearms 

or ammunition to the law-enforcement agency which 

apprehended such person, for its use or for any other 

disposition in its discretion.

Amended: Sentencing Reform Act of 1984, Pub. L. 98-473, 

Title II, § 212(a)(1), Oct. 12, 1984, 98 Stat. 1837, 1987.
Asset Forfeiture Statutes • 77

19 U.S.C. § 1466

TITLE 19

19 U.S.C. § 1466. Equipment and repairs of 

vessels.

(a) Vessels subject to duty; penalties

The equipments, or any part thereof, including boats, purchased 

for, or the repair parts or materials to be used, or the expenses 

of repairs made in a foreign country upon a vessel documented 

under the laws of the United States to engage in the foreign or 

coasting trade, or a vessel intended to be employed in such trade, 

shall, on the first arrival of such vessel in any port of the United 

States, be liable to entry and the payment of an ad valorem duty 

of 50 per centum on the cost thereof in such foreign country. 

If the owner or master willfully or knowingly neglects or fails 

to report, make entry, and pay duties as herein required, or if 

he makes any false statement in respect of such purchases or 

repairs without reasonable cause to believe the truth of such 

statements, or aids or procures the making of any false statement 

as to any matter material thereto without reasonable cause to 

believe the truth of such statement, such vessel, or a monetary 

amount up to the value thereof as determined by the Secretary, 

to be recovered from the owner, shall be subject to seizure and 

forfeiture. For the purposes of this section, compensation paid to 

members of the regular crew of such vessel in connection with 

the installation of any such equipments or any part thereof, or 

the making of repairs, in a foreign country, shall not be included 

in the cost of such equipment or part thereof, or of such repairs.

(b) Notice

If the appropriate customs officer has reasonable cause to 

believe a violation has occurred and determines that further 

proceedings are warranted, he shall issue to the person 

concerned a written notice of his intention to issue a penalty 

claim. Such notice shall—

(1) describe the circumstances of the alleged violation;

(2) specify all laws and regulations allegedly violated;

(3) disclose all the material facts which establish the 

alleged violation;

(4) state the estimated loss of lawful duties, if any, and 

taking into account all of the circumstances, the amount of 

the proposed penalty; and

(5) inform such person that he shall have a reasonable 

opportunity to make representations, both oral and written, 

as to why such penalty claim should not be issued.

(c) Violation

After considering representations, if any, made by the person 

concerned pursuant to the notice issued under subsection (b) 

of this section, the appropriate customs officer shall determine 

whether any violation of subsection (a) of this section, as 

alleged in the notice, has occurred. If such officer determines 

that there was no violation, he shall promptly notify, in writing, 

the person to whom the notice was sent. If such officer 

determines that there was a violation, he shall issue a written 

penalty claim to such person. The written penalty claim 

shall specify all changes in the information provided under 

paragraphs (1) through (4) of subsection (b) of this section.

(d) Remission for necessary repairs

If the owner or master of such vessel furnishes good and 

sufficient evidence that—

(1) such vessel, while in the regular course of her voyage, 

was compelled, by stress of weather or other casualty, to put 

into such foreign port and purchase such equipments, or make 

such repairs, to secure the safety and seaworthiness of the 

vessel to enable her to reach her port of destination;

(2) such equipments or parts thereof or repair parts or 

materials, were manufactured or produced in the United 

States, and the labor necessary to install such equipments or 

to make such repairs was performed by residents of the United 

States, or by members of the regular crew of such vessel; or

(3) such equipments, or parts thereof, or materials, or 

labor, were used as dunnage for cargo, or for the packing or 

shoring thereof, or in the erection of temporary bulkheads 

or other similar devices for the control of bulk cargo, or in 

the preparation (without permanent repair or alteration) of 

tanks for the carriage of liquid cargo;

then the Secretary of the Treasury is authorized to remit or refund 

such duties, and such vessel shall not be liable to forfeiture, and 

no license or enrollment and license, or renewal of either, shall 

hereafter be issued to any such vessel until the collector to whom 

application is made for the same shall be satisfied, from the oath 

of the owner or master, that all such equipments or parts thereof 

or materials and repairs made within the year immediately 

preceding such application have been duly accounted for under 

the provisions of this section, and the duties accruing thereon 

duly paid; and if such owner or master shall refuse to take such 

oath, or take it falsely, the vessel shall be seized and forfeited.

(e) Exclusions for arrivals two or more years after last departure

(1) In the case of any vessel referred to in subsection (a) 

of this section that arrives in a port of the United States two 

years or more after its last departure from a port in the United 

States, the duties imposed by this section shall apply only 

with respect to—

(A) fish nets and netting, and

(B) other equipments and parts thereof, repair parts and 

materials purchased, or repairs made, during the first six 

months after the last departure of such vessel from a port 

of the United States.
78 • Asset Forfeiture Statutes

19 U.S.C. § 1497 

(2) If such vessel is designed and used primarily for 

transporting passengers or property, paragraph (1) shall not apply 

if the vessel departed from the United States for the sole purpose 

of obtaining such equipments, parts, materials, or repairs.

(f) Civil aircraft exception

The duty imposed under subsection (a) of this section shall not 

apply to the cost of equipments, or any part thereof, purchased, 

of repair parts or materials used, or of repairs made in a foreign 

country with respect to a United States civil aircraft, within the 

meaning of general note (3)(c)(iv) of the Harmonized Tariff 

Schedule of the United States.

(g) Fish net and netting purchases and repairs

The duty imposed by subsection (a) of this section shall not 

apply to entries on and after October 1, 1979, and before 

January 1, 1982, of—

(1) tuna purse seine nets and netting which are equipments 

or parts thereof,

(2) repair parts for such nets and netting, or materials used 

in repairing such nets and netting, or

(3) the expenses of repairs of such nets and netting,

for any United States documented tuna purse seine vessel 

of greater than 500 tons carrying capacity or any United 

States tuna purse seine vessel required to carry a certificate 

of inclusion under the general permit issued to the American 

Tunaboat Association pursuant to section 1374 of Title 16.

(h) Foreign repair of vessels

The duty imposed by subsection (a) of this section shall not 

apply to—

(1) the cost of any equipment, or any part of equipment, 

purchased for, or the repair parts or materials to be used, or 

the expense of repairs made in a foreign country with respect 

to, LASH (Lighter Aboard Ship) barges documented under 

the laws of the United States and utilized as cargo containers;

(2) the cost of spare repair parts or materials (other than nets 

or nettings) which the owner or master of the vessel certifies 

are intended for use aboard a cargo vessel, documented under 

the laws of the United States and engaged in the foreign or 

coasting trade, for installation or use on such vessel, as needed, 

in the United States, at sea, or in a foreign country, but only if 

duty is paid under appropriate commodity classifications of 

the Harmonized Tariff Schedule of the United States upon first 

entry into the United States of each such spare part purchased 

in, or imported from, a foreign country;

(3) the cost of spare parts necessarily installed before the 

first entry into the United States, but only if duty is paid under 

appropriate commodity classifications of the Harmonized 

Tariff Schedule of the United States upon first entry into the 

United States of each such spare part purchased in, or imported 

from, a foreign country; or

(4) the cost of equipment, repair parts, and materials that 

are installed on a vessel documented under the laws of the 

United States and engaged in the foreign or coasting trade, if 

the installation is done by members of the regular crew of such 

vessel while the vessel is on the high seas, in foreign waters, 

or in a foreign port, and does not involve foreign shipyard 

repairs by foreign labor.

Declaration and entry shall not be required with respect to 

the installation, equipment, parts, and materials described in 

paragraph (4).

Amended: Pension Protection Act of 2006, Aug. 17, 2006, 

Pub. L. 109-280, Title XIV, § 1631(a), 120 Stat. 1164.

19 U.S.C. § 1497. Penalties for failure to 

declare.

(a) In general

(1) Any article which—

(A) is not included in the declaration and entry as made 

or transmitted; and

(B) is not mentioned before examination of the baggage 

begins—

(i) in writing by such person, if written declaration 

and entry was required, or

(ii) orally, if written declaration and entry was not 

required;

shall be subject to forfeiture and such person shall be liable 

for a penalty determined under paragraph (2) with respect to 

such article.

(2) The amount of the penalty imposed under paragraph (1) 

with respect to any article is equal to—

(A) if the article is a controlled substance, either $500 

or an amount equal to 1,000 percent of the value of the 

article, whichever amount is greater; and

(B) if the article is not a controlled substance, the value 

of the article.

(b) Value of controlled substances

(1) Notwithstanding any other provision of this chapter, the 

value of any controlled substance shall, for purposes of this 

section, be equal to the amount determined by the Secretary 

in consultation with the Attorney General of the United States, 

to be equal to the price at which such controlled substance is 

likely to be illegally sold to the consumer of such controlled 

substance.
Asset Forfeiture Statutes • 79

19 U.S.C. § 1592

(2) The Secretary and the Attorney General of the United 

States shall establish a method of determining the price at 

which each controlled substance is likely to be illegally sold 

to the consumer of such controlled substance.

Amended: North American Free Trade Agreement (NAFTA) 

Implementation Act, Pub. L. 103-182, Title VI, § 612, Dec. 8, 

1993, 107 Stat. 2170.

19 U.S.C. § 1592. Penalties for fraud, gross 

negligence, and negligence.

(a) Prohibition

(1) General rule

Without regard to whether the United States is or may 

be deprived of all or a portion of any lawful duty, tax, 

or fee thereby, no person, by fraud, gross negligence, or 

negligence—

(A) may enter, introduce, or attempt to enter or 

introduce any merchandise into the commerce of the 

United States by means of—

(i) any document or electronically transmitted data 

or information, written or oral statement, or act which 

is material and false, or

(ii) any omission which is material, or

(B) may aid or abet any other person to violate 

subparagraph (A).

(2) Exception

Clerical errors or mistakes of fact are not violations of 

paragraph (1) unless they are part of a pattern of negligent 

conduct. The mere nonintentional repetition by an electronic 

system of an initial clerical error does not constitute a pattern 

of negligent conduct.

(b) Procedures

(1) Pre-penalty notice

(A) In general

If the Customs Service has reasonable cause to believe 

that there has been a violation of subsection (a) of this 

section and determines that further proceedings are 

warranted, it shall issue to the person concerned a written 

notice of its intention to issue a claim for a monetary 

penalty. Such notice shall—

(i) describe the merchandise;

(ii) set forth the details of the entry or introduction, 

the attempted entry or introduction, or the aiding or 

procuring of the entry or introduction;

(iii) specify all laws and regulations allegedly 

violated;

(iv) disclose all the material facts which establish 

the alleged violation;

(v) state whether the alleged violation occurred as a 

result of fraud, gross negligence, or negligence;

(vi) state the estimated loss of lawful duties, 

taxes, and fees, if any, and, taking into account all 

circumstances, the amount of the proposed monetary 

penalty; and

(vii) inform such person that he shall have a 

reasonable opportunity to make representations, both 

oral and written, as to why a claim for a monetary 

penalty should not be issued in the amount stated.

(B) Exceptions

The preceding subparagraph shall not apply if—

(i) the importation with respect to which the 

violation of subsection (a) of this section occurs is 

noncommercial in nature, or

(ii) the amount of the penalty in the penalty claim 

issued under paragraph (2) is $1,000 or less.

(2) Penalty claim

After considering representations, if any, made by 

the person concerned pursuant to the notice issued under 

paragraph (1), the Customs Service shall determine whether 

any violation of subsection (a) of this section, as alleged in 

the notice, has occurred. If the Customs Service determines 

that there was no violation, it shall promptly issue a written 

statement of the determination to the person to whom the 

notice was sent. If the Customs Service determines that 

there was a violation, it shall issue a written penalty claim 

to such person. The written penalty claim shall specify 

all changes in the information provided under clauses (i) 

through (vi) of paragraph (1)(A). Such person shall have a 

reasonable opportunity under section 1618 of this title to make 

representations, both oral and written, seeking remission or 

mitigation of the monetary penalty. At the conclusion of any 

proceeding under such section 1618, the Customs Service 

shall provide to the person concerned a written statement 

which sets forth the final determination and the findings of fact 

and conclusions of law on which such determination is based.

(c) Maximum penalties

(1) Fraud

A fraudulent violation of subsection (a) of this section is 

punishable by a civil penalty in an amount not to exceed the 

domestic value of the merchandise.

(2) Gross negligence
80 • Asset Forfeiture Statutes

19 U.S.C. § 1592 

A grossly negligent violation of subsection (a) of this 

section is punishable by a civil penalty in an amount not to 

exceed—

(A) the lesser of—

(i) the domestic value of the merchandise, or

(ii) four times the lawful duties, taxes, and fees of 

which the United States is or may be deprived, or

(B) if the violation did not affect the assessment of 

duties, 40 percent of the dutiable value of the merchandise.

(3) Negligence

A negligent violation of subsection (a) of this section is 

punishable by a civil penalty in an amount not to exceed—

(A) the lesser of—

(i) the domestic value of the merchandise, or

(ii) two times the lawful duties, taxes, and fees of 

which the United States is or may be deprived, or

(B) if the violation did not affect the assessment of 

duties, 20 percent of the dutiable value of the merchandise.

(4) Prior disclosure

If the person concerned discloses the circumstances of a 

violation of subsection (a) of this section before, or without 

knowledge of, the commencement of a formal investigation 

of such violation, with respect to such violation, merchandise 

shall not be seized and any monetary penalty to be assessed 

under subsection (c) of this section shall not exceed—

(A) if the violation resulted from fraud—

(i) an amount equal to 100 percent of the lawful 

duties, taxes, and fees of which the United States is or 

may be deprived, so long as such person tenders the 

unpaid amount of the lawful duties, taxes, and fees 

at the time of disclosure, or within 30 days (or such 

longer period as the Customs Service may provide) 

after notice by the Customs Service of its calculation 

of such unpaid amount, or

(ii) if such violation did not affect the assessment of 

duties, 10 percent of the dutiable value; or

(B) if such violation resulted from negligence or 

gross negligence, the interest (computed from the date 

of liquidation at the prevailing rate of interest applied 

under section 6621 of Title 26) on the amount of lawful 

duties, taxes, and fees of which the United States is or 

may be deprived so long as such person tenders the unpaid 

amount of the lawful duties, taxes, and fees at the time of 

disclosure, or within 30 days (or such longer period as the 

Customs Service may provide) after notice by the Customs 

Service of its calculation of such unpaid amount.

The person asserting lack of knowledge of the 

commencement of a formal investigation has the burden of 

proof in establishing such lack of knowledge. For purposes 

of this section, a formal investigation of a violation is 

considered to be commenced with regard to the disclosing 

party and the disclosed information on the date recorded 

in writing by the Customs Service as the date on which 

facts and circumstances were discovered or information 

was received which caused the Customs Service to believe 

that a possibility of a violation of subsection (a) of this 

section existed.

(5) Prior disclosure regarding NAFTA claims

An importer shall not be subject to penalties under 

subsection (a) of this section for making an incorrect claim 

for preferential tariff treatment under section 3332 of this title 

if the importer—

(A) has reason to believe that the NAFTA Certificate 

of Origin (as defined in section 1508(b)(1) of this title) on 

which the claim was based contains incorrect information; 

and

(B) in accordance with regulations issued by the 

Secretary, voluntarily and promptly makes a corrected 

declaration and pays any duties owing.

(6) Prior disclosure regarding claims under the United 

States-Chile Free Trade Agreement

An importer shall not be subject to penalties under 

subsection (a) of this section for making an incorrect claim that 

a good qualifies as an originating good under section 202 of the 

United States-Chile Free Trade Agreement Implementation 

Act if the importer, in accordance with regulations issued by 

the Secretary of the Treasury, voluntarily makes a corrected 

declaration and pays any duties owing.

(7) Prior disclosure regarding claims under the United 

States-Singapore Free Trade Agreement

(A) An importer shall not be subject to penalties under 

subsection (a) of this section for making an incorrect claim 

that a good qualifies as an originating good under section 

202 of the United States-Singapore Free Trade Agreement 

Implementation Act if the importer, in accordance with 

regulations issued by the Secretary of the Treasury, 

voluntarily and promptly makes a corrected declaration 

and pays any duties owing.

(B) In the regulations referred to in subparagraph (A), 

the Secretary of the Treasury is authorized to prescribe 

time periods for making a corrected declaration and paying 

duties owing under subparagraph (A) , if such periods are 

not shorter than 1 year following the date on which the 

importer makes the incorrect claim that a good qualifies 

as an originating good.
Asset Forfeiture Statutes • 81

19 U.S.C. § 1592

(8) Prior disclosure regarding claims under the United 

States-Australia Free Trade Agreement

(A) In general

An importer shall not be subject to penalties under 

subsection (a) of this section for making an incorrect claim 

that a good qualifies as an originating good under section 

203 of the United States-Australia Free Trade Agreement 

Implementation Act if the importer, in accordance with 

regulations issued by the Secretary of the Treasury, 

voluntarily and promptly makes a corrected declaration 

and pays any duties owing.

(B) Time periods for making corrections

In the regulations referred to in subparagraph (A), the 

Secretary of the Treasury is authorized to prescribe time 

periods for making a corrected declaration and paying 

duties owing under subparagraph (A), if such periods are 

not shorter than 1 year following the date on which the 

importer makes the incorrect claim.

(9) Prior disclosure regarding claims under the 

Dominican Republic-Central America-United States Free 

Trade Agreement

An importer shall not be subject to penalties under 

subsection (a) of this section for making an incorrect claim that 

a good qualifies as an originating good under section 4033 of 

this title if the importer, in accordance with regulations issued 

by the Secretary of the Treasury, promptly and voluntarily 

makes a corrected declaration and pays any duties owing.

(10) Prior disclosure regarding claims under the United 

States-Peru Trade Promotion Agreement

An importer shall not be subject to penalties under 

subsection (a) of this section for making an incorrect claim 

that a good qualifies as an originating good under section 

203 of the United States-Peru Trade Promotion Agreement 

Implementation Act if the importer, in accordance with 

regulations issued by the Secretary of the Treasury, promptly 

and voluntarily makes a corrected declaration and pays any 

duties owing with respect to that good.

(11) Prior disclosure regarding claims under the United 

States-Korea Free Trade Agreement

An importer shall not be subject to penalties under 

subsection (a) for making an incorrect claim that a good 

qualifies as an originating good under section 202 of the United 

States-Korea Free Trade Agreement Implementation Act if the 

importer, in accordance with regulations issued by the Secretary 

of the Treasury, promptly and voluntarily makes a corrected 

declaration and pays any duties owing with respect to that good.

(12) Prior disclosure regarding claims under the United 

States-Colombia Trade Promotion Agreement

An importer shall not be subject to penalties under 

subsection (a) for making an incorrect claim that a good 

qualifies as an originating good under section 203 of the 

United States-Colombia Trade Promotion Agreement 

Implementation Act if the importer, in accordance with 

regulations issued by the Secretary of the Treasury, promptly 

and voluntarily makes a corrected declaration and pays any 

duties owing with respect to that good.

(13) Prior disclosure regarding claims under the United 

States-Panama Trade Promotion Agreement

An importer shall not be subject to penalties under subsection 

(a) for making an incorrect claim that a good qualifies as 

an originating good under section 203 of the United StatesPanama Trade Promotion Agreement Implementation Act if the 

importer, in accordance with regulations issued by the Secretary 

of the Treasury, promptly and voluntarily makes a corrected 

declaration and pays any duties owing with respect to that good.

(14) Seizure

If the Secretary has reasonable cause to believe that a person 

has violated the provisions of subsection (a) of this section and 

that such person is insolvent or beyond the jurisdiction of the 

United States or that seizure is otherwise essential to protect the 

revenue of the United States or to prevent the introduction of 

prohibited or restricted merchandise into the customs territory 

of the United States, then such merchandise may be seized 

and, upon assessment of a monetary penalty, forfeited unless 

the monetary penalty is paid within the time specified by 

law. Within a reasonable time after any such seizure is made, 

the Secretary shall issue to the person concerned a written 

statement containing the reasons for the seizure. After seizure 

of merchandise under this subsection, the Secretary may, in 

the case of restricted merchandise, and shall, in the case of any 

other merchandise (other than prohibited merchandise), return 

such merchandise upon the deposit of security not to exceed 

the maximum monetary penalty which may be assessed under 

subsection (c) of this section.

(d) Deprivation of lawful duties, taxes, or fees

Notwithstanding section 1514 of this title, if the United States 

has been deprived of lawful duties, taxes, or fees as a result 

of a violation of subsection (a) of this section, the Customs 

Service shall require that such lawful duties, taxes, and fees 

be restored, whether or not a monetary penalty is assessed.

(e) Court of International Trade proceedings

Notwithstanding any other provision of law, in any proceeding 

commenced by the United States in the Court of International 

Trade for the recovery of any monetary penalty claimed under 

this section—

(1) all issues, including the amount of the penalty, shall 

be tried de novo;
82 • Asset Forfeiture Statutes

19 U.S.C. § 1592 

(2) if the monetary penalty is based on fraud, the United 

States shall have the burden of proof to establish the alleged 

violation by clear and convincing evidence;

(3) if the monetary penalty is based on gross negligence, 

the United States shall have the burden of proof to establish 

all the elements of the alleged violation; and

(4) if the monetary penalty is based on negligence, the 

United States shall have the burden of proof to establish the 

act or omission constituting the violation, and the alleged 

violator shall have the burden of proof that the act or omission 

did not occur as a result of negligence.

(f) False certifications regarding exports to NAFTA countries

(1) In general

Subject to paragraph (3), it is unlawful for any person to 

certify falsely, by fraud, gross negligence, or negligence, in a 

NAFTA Certificate of Origin (as defined in section 1508(b)(1) 

of this title) that a good to be exported to a NAFTA country 

(as defined in section 3301(4) of this title) qualifies under the 

rules of origin set out in section 3332 of this title.

(2) Applicable provisions

The procedures and penalties of this section that apply to 

a violation of subsection (a) of this section also apply to a 

violation of paragraph (1), except that—

(A) subsection (d) of this section does not apply, and

(B) subsection (c)(5) of this section applies only if the 

person voluntarily and promptly provides, to all persons 

to whom the person provided the NAFTA Certificate of 

Origin, written notice of the falsity of the Certificate.

(3) Exception

A person may not be considered to have violated paragraph 

(1) if—

(A) the information was correct at the time it was 

provided in a NAFTA Certificate of Origin but was later 

rendered incorrect due to a change in circumstances; and

(B) the person voluntarily and promptly provides 

written notice of the change to all persons to whom the 

person provided the Certificate of Origin.

(g) False certifications of origin under the United States-Chile 

Free Trade Agreement

(1) In general

Subject to paragraph (2), it is unlawful for any person to 

certify falsely, by fraud, gross negligence, or negligence, in a 

Chile FTA Certificate of Origin (as defined in section 1508(f)

(1)(B) of this title that a good exported from the United States 

qualifies as an originating good under the rules of origin set 

out in section 202 of the United States-Chile Free Trade 

Agreement Implementation Act. The procedures and penalties 

of this section that apply to a violation of subsection (a) of this 

section also apply to a violation of this subsection.

(2) Immediate and voluntary disclosure of incorrect 

information

No penalty shall be imposed under this subsection if, 

immediately after an exporter or producer that issued a Chile 

FTA Certificate of Origin has reason to believe that such 

certificate contains or is based on incorrect information, 

the exporter or producer voluntarily provides written notice 

of such incorrect information to every person to whom the 

certificate was issued.

(3) Exception

A person may not be considered to have violated paragraph 

(1) if—

(A) the information was correct at the time it was 

provided in a Chile FTA Certificate of Origin but was later 

rendered incorrect due to a change in circumstances; and

(B) the person immediately and voluntarily provides 

written notice of the change in circumstances to all persons 

to whom the person provided the certificate.

(h) False certifications of origin under the Dominican RepublicCentral America-United States Free Trade Agreement

(1) In general

Subject to paragraph (2), it is unlawful for any person to 

certify falsely, by fraud, gross negligence, or negligence, in 

a CAFTA-DR certification of origin (as defined in section 

1508(g)(1)(B) of this title) that a good exported from the 

United States qualifies as an originating good under the rules of 

origin set out in section 4033 of this title. The procedures and 

penalties of this section that apply to a violation of subsection 

(a) of this section also apply to a violation of this subsection.

(2) Prompt and voluntary disclosure of incorrect 

information

No penalty shall be imposed under this subsection if, 

promptly after an exporter or producer that issued a CAFTADR certification of origin has reason to believe that such 

certification contains or is based on incorrect information, 

the exporter or producer voluntarily provides written notice 

of such incorrect information to every person to whom the 

certification was issued.

(3) Exception

A person may not be considered to have violated paragraph 

(1) if—

(A) the information was correct at the time it was 

provided in a CAFTA-DR certification of origin but was later 

rendered incorrect due to a change in circumstances; and
Asset Forfeiture Statutes • 83

19 U.S.C. § 1592

(B) the person promptly and voluntarily provides 

written notice of the change in circumstances to all persons 

to whom the person provided the certification.

(i) False certifications of origin under the United States-Peru 

Trade Promotion Agreement

(1) In general

Subject to paragraph (2), it is unlawful for any person to 

certify falsely, by fraud, gross negligence, or negligence, in a 

PTPA certification of origin (as defined in section 1508(h)(1)

(B) of this title) that a good exported from the United States 

qualifies as an originating good under the rules of origin 

provided for in section 203 of the United States-Peru Trade 

Promotion Agreement Implementation Act. The procedures and 

penalties of this section that apply to a violation of subsection 

(a) of this section also apply to a violation of this subsection.

(2) Prompt and voluntary disclosure of incorrect 

information

No penalty shall be imposed under this subsection if, 

promptly after an exporter or producer that issued a PTPA 

certification of origin has reason to believe that such 

certification contains or is based on incorrect information, 

the exporter or producer voluntarily provides written notice 

of such incorrect information to every person to whom the 

certification was issued.

(3) Exception

A person shall not be considered to have violated paragraph 

(1) if—

(A) the information was correct at the time it was 

provided in a PTPA certification of origin but was later 

rendered incorrect due to a change in circumstances; and

(B) the person promptly and voluntarily provides 

written notice of the change in circumstances to all persons 

to whom the person provided the certification.

(j) False certifications of origin under the United States-Korea 

Free Trade Agreement

(1) In general

Subject to paragraph (2), it is unlawful for any person to 

certify falsely, by fraud, gross negligence, or negligence, in a 

KFTA certification of origin (as defined in section 1508 of this 

title) that a good exported from the United States qualifies as 

an originating good under the rules of origin provided for in 

section 202 of the United States-Korea Free Trade Agreement 

Implementation Act. The procedures and penalties of this 

section that apply to a violation of subsection (a) also apply 

to a violation of this subsection.

(2) Prompt and voluntary disclosure of incorrect 

information

No penalty shall be imposed under this subsection if, 

promptly after an exporter or producer that issued a KFTA 

certification of origin has reason to believe that such 

certification contains or is based on incorrect information, 

the exporter or producer voluntarily provides written notice 

of such incorrect information to every person to whom the 

certification was issued.

(3) Exception

A person shall not be considered to have violated paragraph 

(1) if—

(A) the information was correct at the time it was 

provided in a KFTA certification of origin but was later 

rendered incorrect due to a change in circumstances; and

(B) the person promptly and voluntarily provides 

written notice of the change in circumstances to all persons 

to whom the person provided the certification.

(k) False certifications of origin under the United StatesColombia Trade Promotion Agreement

(1) In general

Subject to paragraph (2), it is unlawful for any person to 

certify falsely, by fraud, gross negligence, or negligence, in a 

CTPA certification of origin (as defined in section 508 of this 

Act) that a good exported from the United States qualifies as 

an originating good under the rules of origin provided for in 

section 203 of the United States-Colombia Trade Promotion 

Agreement Implementation Act. The procedures and penalties 

of this section that apply to a violation of subsection (a) also 

apply to a violation of this subsection.

(2) Prompt and voluntary disclosure of incorrect 

information

No penalty shall be imposed under this subsection 

if, promptly after an exporter or producer that issued a 

CTPA certification of origin has reason to believe that such 

certification contains or is based on incorrect information, 

the exporter or producer voluntarily provides written notice 

of such incorrect information to every person to whom the 

certification was issued.

(3) Exception

A person shall not be considered to have violated paragraph 

(1) if—

(A) the information was correct at the time it was 

provided in a CTPA certification of origin but was later 

rendered incorrect due to a change in circumstances; and

(B) the person promptly and voluntarily provides 

written notice of the change in circumstances to all persons 

to whom the person provided the certification.
84 • Asset Forfeiture Statutes

19 U.S.C. § 1594 

(l) False certifications of origin under the United StatesPanama Trade Promotion Agreement

(1) In general

Subject to paragraph (2), it is unlawful for any person to 

certify falsely, by fraud, gross negligence, or negligence, in 

a Panama TPA certification of origin (as defined in section 

1508 of this title) that a good exported from the United States 

qualifies as an originating good under the rules of origin 

provided for in section 203 of the United States-Panama Trade 

Promotion Agreement Implementation Act. The procedures 

and penalties of this section that apply to a violation of 

subsection (a) also apply to a violation of this subsection.

(2) Prompt and voluntary disclosure of incorrect 

information

No penalty shall be imposed under this subsection if, 

promptly after an exporter or producer that issued a Panama 

TPA certification of origin has reason to believe that such 

certification contains or is based on incorrect information, 

the exporter or producer voluntarily provides written notice 

of such incorrect information to every person to whom the 

certification was issued.

(3) Exception

A person shall not be considered to have violated paragraph 

(1) if—

(A) the information was correct at the time it was 

provided in a Panama TPA certification of origin but was 

later rendered incorrect due to a change in circumstances; and

(B) the person promptly and voluntarily provides 

written notice of the change in circumstances to all persons 

to whom the person provided the certification.

Amended: United States-Panama Trade Promotion Agreement 

Implementation Act, Pub. L. 112-43, Title II, § 205(a), Oct. 21, 

2011, 125 Stat. 518.

19 U.S.C. § 1594. Seizure of conveyances.

(a) In general

Whenever—

(1) any vessel, vehicle, or aircraft; or

(2) the owner or operator, or the master, pilot, conductor, 

driver, or other person in charge of a vessel, vehicle, or aircraft;

is subject to a penalty for violation of the customs laws, the 

conveyance involved shall be held for the payment of such 

penalty and may be seized and forfeited and sold in accordance 

with the customs laws. The proceeds of sale, if any, in excess 

of the assessed penalty and expenses of seizing, maintaining, 

and selling the property shall be held for the account of any 

interested party.

(b) Exceptions

(1) No conveyance used by any person as a common 

carrier in the transaction of business as a common carrier is 

subject to seizure and forfeiture under the customs laws for 

violations relating to merchandise contained—

(A) on the person;

(B) in baggage belonging to and accompanying a 

passenger being lawfully transported on such conveyance; or

(C) in the cargo of the conveyance if the cargo is 

listed on the manifest and marks, numbers, weights and 

quantities of the outer packages or containers agree with 

the manifest;

unless the owner or operator, or the master, pilot, 

conductor, driver or other person in charge participated in, 

or had knowledge of, the violation, or was grossly negligent 

in preventing or discovering the violation.

(2) Except as provided in paragraph (1) or subsection (c) 

of this section, no vessel, vehicle, or aircraft is subject to 

forfeiture to the extent of an interest of an owner for a 

drug-related offense established by that owner to have been 

committed or omitted without the knowledge, consent, or 

willful blindness of the owner.

(c) Prohibited merchandise on conveyance

If any merchandise the importation of which is prohibited 

is found to be, or to have been—

(1) on board a conveyance used as a common carrier in 

the transaction of business as a common carrier in one or 

more packages or containers—

(A) that are not manifested (or not shown on bills of 

lading or airway bills); or

(B) whose marks, numbers, weight or quantities 

disagree with the manifest (or with the bills of lading or 

airway bills); or

(2) concealed in or on such a conveyance, but not in the 

cargo;

the conveyance may be seized, and after investigation, forfeited 

unless it is established that neither the owner or operator, master, 

pilot, nor any other employee responsible for maintaining and 

insuring the accuracy of the cargo manifest knew, or by the 

exercise of the highest degree of care and diligence could have 

known, that such merchandise was on board.

(d) Definitions

For purposes of this section—
Asset Forfeiture Statutes • 85

19 U.S.C. § 1595a

(1) The term “owner or operator” includes—

(A) a lessee or person operating a conveyance under 

a rental agreement or charter party; and

(B) the officers and directors of a corporation;

(C) station managers and similar supervisory ground 

personnel employed by airlines;

(D) one or more partners of a partnership;

(E) representatives of the owner or operator in charge 

of the passenger or cargo operations at a particular 

location; and

(F) and other persons with similar responsibilities.

(2) The term “master” and similar terms relating to the 

person in charge of a conveyance includes the purser or other 

person on the conveyance who is responsible for maintaining 

records relating to the cargo transported in the conveyance.

(e) Costs and expenses of seizure

When a common carrier has been seized in accordance 

with the provisions of subsection (c) of this section and it is 

subsequently determined that a violation of such subsection 

occurred but that the vessel will be released, the conveyance is 

liable for the costs and expenses of the seizure and detention.

Amended: Anti-Drug Abuse Act of 1988, Pub. L. 100-690, Title 

VI, § 6076(b), Nov. 18, 1988, 102 Stat. 4181, 4324.

19 U.S.C. § 1595a. Importation offenses.

(a) Importation, removal, etc. contrary to laws of United States. 

Except as specified in subsection (b) or (c) of section 594 of 

this Act, every vessel, vehicle, animal, aircraft, or other thing 

used in, to aid in, or to facilitate, by obtaining information or in 

any other way, the importation, bringing in, unlading, landing, 

removal, concealing, harboring, or subsequent transportation 

of any article which is being or has been introduced, or 

attempted to be introduced, into the United States contrary 

to law, whether upon such vessel, vehicle, animal, aircraft, or 

other thing or otherwise, may be seized and forfeited together 

with its tackle, apparel, furniture, harness, or equipment. 

(b) Penalty for aiding unlawful importation. Every person 

who directs, assists financially or otherwise, or is in any way 

concerned in any unlawful activity mentioned in the preceding 

subsection shall be liable to a penalty equal to the value of the 

article or articles introduced or attempted to be introduced. 

(c) Merchandise introduced contrary to law. Merchandise 

which is introduced or attempted to be introduced into the 

United States contrary to law shall be treated as follows:

(1) The merchandise shall be seized and forfeited if it—

(A) is stolen, smuggled, or clandestinely imported or 

introduced;

(B) is a controlled substance, as defined in the 

Controlled Substances Act (21 U.S.C. 801 et seq.), and is 

not imported in accordance with applicable law;

(C) is a contraband article, as defined in section 1 of the 

Act of August 9, 1939 (49 U.S.C. App. 781); or

(D) is a plastic explosive, as defined in section 841(q) 

of title 18, United States Code, which does not contain a 

detection agent, as defined in section 841(p) of such title.

(2) The merchandise may be seized and forfeited if—

(A) its importation or entry is subject to any restriction 

or prohibition which is imposed by law relating to health, 

safety, or conservation and the merchandise is not in 

compliance with the applicable rule, regulation, or statute;

(B) its importation or entry requires a license, permit 

or other authorization of an agency of the United States 

Government and the merchandise is not accompanied by 

such license, permit, or authorization;

(C) it is merchandise or packaging in which copyright, 

trademark, or trade name protection violations are involved 

(including, but not limited to, violations of section 42, 43, 

or 45 of the Act of July 5, 1946 (15 U.S.C. 1124, 1125, 

or 1127), section 506 of title 17, United States Code, or 

section 2318 or 2320 of title 18, United States Code);

(D) it is trade dress merchandise involved in the 

violation of a court order citing section 43 of such Act of 

July 5, 1946 (15 U.S.C. 1125);

(E) it is merchandise which is marked intentionally in 

violation of section 304; or

(F) it is merchandise for which the importer has received 

written notices that previous importations of identical 

merchandise from the same supplier were found to have 

been marked in violation of section 304.

(3) If the importation or entry of the merchandise is subject to 

quantitative restrictions requiring a visa, permit, license, or other 

similar document, or stamp from the United States Government 

or from a foreign government or issuing authority pursuant to 

a bilateral or multilateral agreement, the merchandise shall be 

subject to detention in accordance with section 499 unless the 

appropriate visa, license, permit, or similar document or stamp 

is presented to the Customs Service; but if the visa, permit, 

license, or similar document or stamp which is presented in 

connection with the importation or entry of the merchandise 

is counterfeit, the merchandise may be seized and forfeited.

(4) If the merchandise is imported or introduced contrary to 

a provision of law which governs the classification or value of 

merchandise and there are no issues as to the admissibility of 
86 • Asset Forfeiture Statutes

19 U.S.C. § 1602 

the merchandise into the United States, it shall not be seized 

except in accordance with section 592.

(5) In any case where the seizure and forfeiture of 

merchandise are required or authorized by this section, the 

Secretary may—

(A) remit the forfeiture under section 618, or

(B) permit the exportation of the merchandise, unless 

its release would adversely affect health, safety, or 

conservation or be in contravention of a bilateral or 

multilateral agreement or treaty.

(d) Merchandise exported or sent from the United States 

or attempted to be exported or sent from the United States 

contrary to law, or the proceeds or value thereof, and property 

used to facilitate the exporting or sending of such merchandise, 

the attempted exporting or sending of such merchandise, or 

the receipt, purchase, transportation, concealment, or sale of 

such merchandise prior to exportation shall be seized and 

forfeited to the United States.

Amended: Prioritizing Resources and Organization for 

Intellectual Property Act of 2008, Oct. 13, 2008, Pub. L. 110-

403, Title II, § 209(b), 122 Stat. 4264.

19 U.S.C. § 1602. Seizure; report to customs 

officer.

It shall be the duty of any officer, agent, or other person 

authorized by law to make seizures of merchandise or baggage 

subject to seizure for violation of the customs laws, to report 

every such seizure immediately to the appropriate customs 

officer for the district in which such violation occurred, and 

to turn over and deliver to such customs officer any vessel, 

vehicle, aircraft, merchandise, or baggage seized by him, and 

to report immediately to such customs officer every violation 

of the customs laws.

Amended: Trade and Tariff Act of 1984, Pub. L. 98-573, Title II, 

§ 213(a)(1), Oct. 30, 1984, 98 Stat. 2948, 2984.

19 U.S.C. § 1603. Seizure; warrants and reports.

(a) Process for search warrant

Any property which is subject to forfeiture to the United States 

for violation of the customs laws and which is not subject 

to search and seizure in accordance with the provisions of 

section 1595 of this title, may be seized by the appropriate 

officer or person upon process issued in the same manner 

as provided for a search warrant under the Federal Rules of 

Criminal Procedure. This authority is in addition to any seizure 

authority otherwise provided by law.

(b) Customs officer’s reports

Whenever a seizure of merchandise for violation of the 

customs laws is made, or a violation of the customs laws 

is discovered, and legal proceedings by the United States 

attorney in connection with such seizure or discovery are 

required, it shall be the duty of the appropriate customs officer 

to report promptly such seizure or violation to the United 

States attorney for the district in which such violation has 

occurred, or in which such seizure was made, and to include 

in such report a statement of all the facts and circumstances 

of the case within his knowledge, with the names of the 

witnesses and a citation to the statute or statutes believed to 

have been violated, and on which reliance may be had for 

forfeiture or conviction.

Amended: Anti-Drug Abuse Act of 1988, Pub. L. 100-690, 

Title VII, § 7365, Nov. 18, 1988, 102 Stat. 4181, 4478.

19 U.S.C. § 1604. Seizure; prosecution.

It shall be the duty of the Attorney General of the United 

States immediately to inquire into the facts of cases reported 

to him by customs officers and the laws applicable thereto, 

and if it appears probable that any fine, penalty, or forfeiture 

has been incurred by reason of such violation, for the recovery 

of which the institution of proceedings in the United States 

district court or the Court of International Trade is necessary, 

forthwith to cause the proper proceedings to be commenced 

and prosecuted, without delay, for the recovery of such fine, 

penalty, or forfeiture in such case provided, unless, upon 

inquiry and examination, the Attorney General decides that 

such proceedings can not probably be sustained or that the ends 

of public justice do not require that they should be instituted 

or prosecuted, in which case he shall report the facts to the 

Secretary of the Treasury for his direction in the premises.

Amended: Customs Courts Act of 1980, Pub. L. 96-417, Title VI, 

§ 610, Oct. 10, 1980, 94 Stat. 1727, 1746.

19 U.S.C. § 1605. Seizure; custody; storage.

All vessels, vehicles, aircraft, merchandise, and baggage 

seized under the provisions of the customs laws, or laws 

relating to the navigation, registering, enrolling or licensing, 

or entry or clearance, of vessels, unless otherwise provided 

by law, shall be placed and remain in the custody of the 

appropriate customs officer for the district in which the seizure 

was made to await disposition according to law.

Pending such disposition, the property shall be stored in such 

place as, in the customs officer’s opinion, is most convenient 

and appropriate with due regard to the expense involved, 

whether or not the place of storage is within the judicial district 
Asset Forfeiture Statutes • 87

19 U.S.C. § 1609

or the customs collection district in which the property was 

seized; and storage of the property outside the judicial district 

or customs collection district in which it was seized shall in no 

way affect the jurisdiction of the court which would otherwise 

have jurisdiction over such property.

Amended: Trade and Tariff Act of 1984, Pub. L. 98-573, Title II, 

§ 213(a)(2), Oct. 30, 1984, 98 Stat. 2948, 2984.

19 U.S.C. § 1606. Seizure; appraisement.

The appropriate customs officer shall determine the domestic 

value, at the time and place of appraisement, of any vessel, 

vehicle, aircraft, merchandise, or baggage seized under the 

customs laws.

Amended: Trade and Tariff Act of 1984, Pub. L. 98-573, Title II, 

§ 213(a)(3), Oct. 30, 1984, 98 Stat. 2948, 2984.

19 U.S.C. § 1607. Seizure; value $500,000 

or less, prohibited articles, transporting 

conveyances.

(a) Notice of seizure

If—

(1) the value of such seized vessel, vehicle, aircraft, 

merchandise, or baggage does not exceed $500,000;

(2) such seized merchandise is merchandise the 

importation of which is prohibited;

(3) such seized vessel, vehicle, or aircraft was used to 

import, export, transport, or store any controlled substance 

or listed chemical; or

(4) such seized merchandise is any monetary instrument 

within the meaning of section 5312(a)(3) of Title 31;

the appropriate customs officer shall cause a notice of the 

seizure of such articles and the intention to forfeit and sell 

or otherwise dispose of the same according to law to be 

published for at least three successive weeks in such manner 

as the Secretary of the Treasury may direct. Written notice 

of seizure together with information on the applicable 

procedures shall be sent to each party who appears to have 

an interest in the seized article.

(b) “Controlled substance” defined

As used in this section, the terms “controlled substance” 

and “listed chemical” have the meaning given such terms 

in section 802 of Title 21.

(c) Report to Congress

The Commissioner of Customs shall submit to the Congress, 

by no later than February 1 of each fiscal year, a report on 

the total dollar value of uncontested seizures of monetary 

instruments having a value of over $100,000 which, or the 

proceeds of which, have not been deposited into the Customs 

Forfeiture Fund under section 1613b of this title within 120 

days of seizure, as of the end of the previous fiscal year.

Amended: Comprehensive Methamphetamine Control Act of 

1996, Pub. L. 104-237, Title II, § 201(c), Oct. 3, 1996, 110 Stat. 

3099, 3101.

19 U.S.C. § 1608. Seizure; claims; judicial 

condemnation.

Any person claiming such vessel, vehicle, aircraft, 

merchandise, or baggage may at any time within twenty 

days from the date of the first publication of the notice of 

seizure file with the appropriate customs officer a claim 

stating his interest therein. Upon the filing of such claim, and 

the giving of a bond to the United States in the penal sum of 

$5,000 or 10 percent of the value of the claimed property, 

whichever is lower, but not less than $250, with sureties to 

be approved by such customs officer, conditioned that in case 

of condemnation of the articles so claimed the obligor shall 

pay all the costs and expenses of the proceedings to obtain 

such condemnation, such customs officer shall transmit 

such claim and bond, with a duplicate list and description 

of the articles seized, to the United States attorney for the 

district in which seizure was made, who shall proceed to a 

condemnation of the merchandise or other property in the 

manner prescribed by law.

Reenacted: Anti-Drug Abuse Act of 1988, Pub. L. 100-690, 

Title VII, § 7367(c)(2), Nov. 18, 1988, 102 Stat. 4181, 4479.

19 U.S.C. § 1609. Seizure; summary forfeiture 

and sale.

(a) In general

If no such claim is filed or bond given within the twenty 

days hereinbefore specified, the appropriate customs officer 

shall declare the vessel vehicle, aircraft, merchandise, or 

baggage forfeited, and shall sell the same at public auction 

in the same manner as merchandise abandoned to the United 

States is sold or otherwise dispose of the same according to 

law, and shall deposit the proceeds of sale, after deducting 

the expenses described in section 1613 of this title, into the 

Customs Forfeiture Fund.

(b) Effect
88 • Asset Forfeiture Statutes

19 U.S.C. § 1610 

A declaration of forfeiture under this section shall have the 

same force and effect as a final decree and order of forfeiture 

in a judicial forfeiture proceeding in a district court of the 

United States. Title shall be deemed to vest in the United 

States free and clear of any liens or encumbrances (except for 

first preferred ship mortgages pursuant to section 961 of Title 

46, Appendix or any corresponding revision, consolidation, 

and enactment of such subsection in Title 46) from the date 

of the act for which the forfeiture was incurred. Officials 

of the various States, insular possessions, territories, and 

commonwealths of the United States shall, upon application 

of the appropriate customs officer accompanied by a certified 

copy of the declaration of forfeiture, remove any recorded 

liens or encumbrances which apply to such property and 

issue or reissue the necessary certificates of title, registration 

certificates, or similar documents to the United States or to 

any transferee of the United States.

Amended: Anti-Drug Abuse Act of 1988, Pub. L. 100-690, 

Title VII, § 7367(b), Nov. 18, 1988, 102 Stat. 4181, 4479.

19 U.S.C. § 1610. Seizure; judicial forfeiture 

proceedings.

If any vessel, vehicle, aircraft, merchandise, or baggage is not 

subject to section 1607 of this title, the appropriate customs 

officer shall transmit a report of the case, with the names 

of available witnesses, to the United States attorney for the 

district in which the seizure was made for the institution of 

the proper proceedings for the condemnation of such property.

Amended: Anti-Drug Abuse Act of 1988, Pub. L. 100-690, 

Title VII, § 7367(c)(3), Nov. 18, 1988, 102 Stat. 4181, 4480.

19 U.S.C. § 1611. Seizure; sale unlawful.

If the sale of any vessel, vehicle, aircraft, merchandise, or 

baggage forfeited under the customs laws in the district in 

which seizure thereof was made be prohibited by the laws 

of the State in which such district is located, or if a sale 

may be made more advantageously in any other district, the 

Secretary of the Treasury may order such vessel, vehicle, 

aircraft, merchandise, or baggage to be transferred for sale 

in any customs district in which the sale thereof may be 

permitted. Upon the request of the Secretary of the Treasury, 

any court may, in proceedings for the forfeiture of any 

vessel, vehicle, aircraft, merchandise, or baggage under 

the customs laws, provide in its decree of forfeiture that 

the vessel, vehicle, aircraft, merchandise, or baggage, so 

forfeited, shall be delivered to the Secretary of the Treasury 

for disposition in accordance with the provisions of this 

section. If the Secretary of the Treasury is satisfied that the 

proceeds of any sale will not be sufficient to pay the cost 

thereof, he may order a destruction by the customs officers: 

Provided, That any merchandise forfeited under the customs 

laws, the sale or use of which is prohibited under any law of 

the United States or of any State, may, in the discretion of the 

Secretary of the Treasury, be destroyed, or remanufactured 

into an article that is not prohibited, the resulting article to 

be disposed of to the profit of the United States only.

Amended: Trade and Tariff Act of 1984, Pub. L. 98- 573, Title II, 

§ 213(a)(8), Oct. 30, 1984, 98 Stat. 2948, 2985.

19 U.S.C. § 1612. Seizure; summary sale.

(a) Property subject to sale; procedure

Whenever it appears to the Customs Service that any vessel, 

vehicle, aircraft, merchandise, or baggage seized under the 

customs laws is liable to perish or to waste or to be greatly 

reduced in value by keeping, or that the expense of keeping 

the same is disproportionate to the value thereof, and such 

vessel, vehicle, aircraft, merchandise, or baggage is subject 

to section 1607 of this title, and such vessel, vehicle, aircraft, 

merchandise, or baggage has not been delivered under bond, 

the Customs Service shall proceed forthwith to advertise and 

sell the same at auction under regulations to be prescribed by 

the Secretary of the Treasury. If such vessel, vehicle, aircraft, 

merchandise, or baggage is not subject to section 1607 of 

this title, the Customs Service shall forthwith transmit its 

report of the seizure to the United States attorney, who shall 

petition the court to order an immediate sale of such vessel, 

vehicle, aircraft, merchandise, or baggage, and if the ends of 

justice require it the court shall order such immediate sale, 

the proceeds thereof to be deposited with the court to await 

the final determination of the condemnation proceedings. 

Whether such sale be made by the Customs Service or by 

order of the court, the proceeds thereof shall be held subject 

to claims of parties in interest to the same extent as the 

vessel, vehicle, aircraft, merchandise, or baggage so sold 

would have been subject to such claim.

(b) Destruction or other appropriate disposition; absence of 

liability

If the Customs Service determines that the expense of keeping 

the vessel, vehicle, aircraft, merchandise, or baggage is 

disproportionate to the value thereof, the Customs Service may 

promptly order the destruction or other appropriate disposition 

of such property under regulations prescribed by the Secretary. 

No customs officer shall be liable for the destruction or other 

disposition of property made pursuant to this section.

Amended: North American Free Trade Agreement (NAFTA) 

Implementation Act, Pub. L. 103-182, Title VI, § 667, Dec. 8, 

1993, 107 Stat. 2057, 2215.
Asset Forfeiture Statutes • 89

19 U.S.C. § 1613b

19 U.S.C. § 1613. Disposition of proceeds of 

forfeited property.

(a) Application for remission of forfeiture and restoration of 

proceeds of sale; disposition of proceeds when no application 

has been made

Except as provided in subsection (b) of this section, any 

person claiming any vessel, vehicle, aircraft, merchandise, 

or baggage, or any interest therein, which has been forfeited 

and sold under the provisions of this chapter, may at any 

time within three months after the date of sale apply to the 

Secretary of the Treasury if the forfeiture and sale was under 

the customs laws, or to the Commandant of the Coast Guard 

or the Commissioner of Customs, as the case may be, if 

the forfeiture and sale was under the navigation laws, for a 

remission of the forfeiture and restoration of the proceeds 

of such sale, or such part thereof as may be claimed by him. 

Upon the production of satisfactory proof that the applicant 

did not know of the seizure prior to the declaration or 

condemnation of forfeiture, and was in such circumstances 

as prevented him from knowing of the same, and that such 

forfeiture was incurred without any willful negligence or 

intention to defraud on the part of the applicant, the Secretary 

of the Treasury, the Commandant of the Coast Guard, or 

the Commissioner of Customs may order the proceeds of 

the sale, or any part thereof, restored to the applicant, after 

deducting the cost of seizure and of sale, the duties, if any, 

accruing on the merchandise or baggage, and any sum due 

on a lien for freight, charges, or contribution in general 

average that may have been filed. If no application for such 

remission or restoration is made within three months after 

such sale, or if the application be denied by the Secretary 

of the Treasury, the Commandant of the Coast Guard, or 

the Commissioner of Customs, the proceeds of sale shall 

be disposed of as follows:

(1) For the payment of all proper expenses of the 

proceedings of forfeiture and sale, including expenses of 

seizure, maintaining the custody of the property, advertising 

and sale, and if condemned by a decree of a district court 

and a bond for such costs was not given, the costs as taxed 

by the court;

(2) For the satisfaction of liens for freight, charges, and 

contributions in general average, notice of which has been 

filed with the appropriate customs officer according to law; 

and

(3) The residue shall be deposited in the general fund of 

the Treasury of the United States.

(b) Disposition of proceeds in excess of penalty assessed 

under section 1592

If merchandise is forfeited under section 1592 of this title, 

any proceeds from the sale thereof in excess of the monetary 

penalty finally assessed thereunder and the expenses and 

costs described in subsection (a)(1) and (2) of this section or 

subsection (a)(1), (a)(3), or (a)(4) of section 1613b of this title 

incurred in such sale shall be returned to the person against 

whom the penalty was assessed.

(c) Treatment of deposits

If property is seized by the Secretary under law enforced or 

administered by the Customs Service, or otherwise acquired 

under section 1605 of this title, and relief from the forfeiture is 

granted by the Secretary, or his designee, upon terms requiring 

the deposit or retention of a monetary amount in lieu of the 

forfeiture, the amount recovered shall be treated in the same 

manner as the proceeds of sale of a forfeited item.

(d) Expenses

In any judicial or administrative proceeding to forfeit property 

under any law enforced or administered by the Customs 

Service or the Coast Guard, the seizure, storage, and other 

expenses related to the forfeiture that are incurred by the 

Customs Service or the Coast Guard after the seizure, but 

before the institution of, or during, the proceedings, shall be 

a priority claim in the same manner as the court costs and the 

expenses of the Federal marshal.

Amended: Anti-Drug Abuse Act of 1986, Pub. L. 99-570, 

Title III, § 3124, Oct. 27, 1986, 100 Stat. 3207-88.

19 U.S.C. § 1613b. Customs Forfeiture Fund.

(a) In general

(1) There is established in the Treasury of the United 

States a fund to be known as the “Customs Forfeiture Fund” 

(hereafter in this section referred to as the “Fund”), which shall 

be available to the United States Customs Service, subject 

to appropriation, with respect to seizures and forfeitures by 

the United States Customs Service and the United States 

Coast Guard under any law enforced or administered by 

those agencies for payment, or for reimbursement to the 

appropriation from which payment was made, for—

(A) all proper expenses of the seizure (including 

investigative costs incurred by the United States Customs 

Service leading to seizures) or the proceedings of forfeiture 

and sale, including, but not limited to, the expenses of 

inventory, security, and maintenance of custody of the 

property, advertisement and sale of the property, and if 

condemned by the court and a bond for such costs was 

not given, the costs as taxed by the court;

(B) awards of compensation to informers under section 

1619 of this title;

(C) satisfaction of—
90 • Asset Forfeiture Statutes

19 U.S.C. § 1613b 

(i) liens for freight, charges, and contributions in 

general average, notice of which has been filed with 

the appropriate customs officer according to law, and

(ii) other liens against forfeited property;

(D) amounts authorized by law with respect to 

remission and mitigation;

(E) claims of parties in interest to property disposed 

of under section 1612(b) of this title, in the amounts 

applicable to such claims at the time of seizure; and

(F) equitable sharing payments made to other Federal 

agencies, State and local law enforcement agencies, and 

foreign countries under the authority of section 1616a(c) 

of this title or section 981 of Title 18.

(2)(A) Any payment made under subparagraph (C) or (D) 

of paragraph (1) with respect to a seizure or a forfeiture of 

property shall not exceed the value of the property at the time 

of the seizure.

(B) Any payment made under subparagraph (F) of 

paragraph (1) with respect to a seizure or forfeiture of 

property shall not exceed the value of the property at the 

time of disposition.

(3) In addition to the purposes described in paragraph (1), 

the Fund shall be available for—

(A) purchases by the United States Customs Service 

of evidence of—

(i) smuggling of controlled substances, and

(ii) violations of the currency and foreign transaction 

reporting requirements of chapter 51 of Title 31, if there 

is a substantial probability that the violations of these 

requirements are related to the smuggling of controlled 

substances;

(B) equipment for any vessel, vehicle, or aircraft 

available for official use by the United States Customs 

Service to enable the vessel, vehicle, or aircraft to assist 

in law enforcement functions;

(C) the reimbursement, at the discretion of the Secretary, 

of private persons for expenses incurred by such persons 

in cooperating with the United States Customs Service in 

investigations and undercover law enforcement operations;

(D) publication of the availability of awards under 

section 1619 of this title;

(E) equipment for any vessel, vehicle, or aircraft 

available for official use by a State or local law enforcement 

agency to enable the vessel, vehicle, or aircraft to assist in 

law enforcement functions if the conveyance will be used 

in joint law enforcement operations with the United States 

Customs Service; and

(F) payment of overtime salaries, travel, fuel, training, 

equipment, and other similar costs of State and local 

law enforcement officers that are incurred in joint law 

enforcement operations with the United States Customs 

Service.

(b) United States Coast Guard

The Commissioner of Customs shall make available to the 

United States Coast Guard, from funds appropriated under 

subsection (f)(2) of this section in excess of $10,000,000 for 

a fiscal year, proceeds in the Fund derived from seizures by 

the Coast Guard. Funds made available under this subsection 

may be used for—

(1) equipment for any vessel, vehicle, or aircraft available 

for official use by the United States Coast Guard to enable 

the vessel, vehicle, or aircraft to assist in law enforcement 

functions;

(2) equipment for any vessel, vehicle, equipment, or 

aircraft available for official use by a State or local law 

enforcement agency to enable the vessel, vehicle, or aircraft 

to assist in law enforcement functions if the conveyance will 

be used in joint law enforcement operations with the United 

States Coast Guard;

(3) payment of overtime salaries, travel, fuel, training, 

equipment, and other similar costs of State and local law 

enforcement officers that are incurred in joint law enforcement 

operations with the United States Coast Guard; and

(4) expenses incurred in bringing vessels into compliance 

with applicable environmental laws prior to disposal by 

sinking.

(c) Deposits

There shall be deposited into the Fund all forfeited currency 

and proceeds from forfeiture under any law enforced or 

administered by the United States Customs Service or the 

United States Coast Guard and all income from investments 

made under subsection (d) of this section.

(d) Investment

Amounts in the Fund which are not currently needed for the 

purposes of this section shall be invested in obligations of, or 

guaranteed by, the United States.

(e) Annual reports; audits

(1) The Commissioner of Customs shall transmit to the 

Congress, by no later than February 1 of each fiscal year the 

following detailed reports:

(A) a report on—

(i) the estimated total value of property forfeited 

under any law enforced or administered by the United 

States Customs Service or the United States Coast 
Asset Forfeiture Statutes • 91

19 U.S.C. § 1615

Guard with respect to which funds were not deposited 

in the Fund during the previous fiscal year, and

(ii) the estimated total value of all such property 

transferred to any State or local law enforcement 

agency;

(B) a report on—

(i) the balance of the Fund at the beginning of the 

preceding fiscal year;

(ii) liens and mortgages paid and amount of money 

shared with State and local law enforcement agencies 

during the previous fiscal year;

(iii) the net amount realized from the operations of 

the Fund during the previous fiscal year, the amount 

of seized cash being held as evidence, and the amount 

of money that has been carried over to the current 

fiscal year;

(iv) any defendant’s equity in property valued at 

$1,000,000 or more;

(v) the balance of the Fund at the end of the previous 

fiscal year; and

(C) a report containing, for the previous fiscal year—

(i) a complete set of audited financial statements 

(including a balance sheet, income statement, and cash 

flow analysis) prepared in a manner consistent with the 

requirements of the Comptroller General, and

(ii) an analysis of income and expenses showing 

the revenue received or lost—

(I) by property category (general property, 

vehicles, vessels, aircraft, cash, and real property) 

and

(II) by type of disposition (sales, remissions, 

cancellations, placed into official use, sharing with 

State and local agencies, and destructions).

(2) The Fund shall be subject to audits conducted 

by the Comptroller General of the United States, under 

such conditions as the Comptroller General determines 

appropriate.

(f) Authorization of appropriations

(1) There are hereby appropriated from the Fund such 

sums as may be necessary to carry out the purposes set forth 

in subsection (a)(1) of this section.

(2)(A) Subject to subparagraph (B), there are authorized 

to be appropriated from the Fund not to exceed $20,000,000 

for each fiscal year to carry out the purposes set forth in 

subsections (a)(3) and (b) for such fiscal year.

(B) Of the amount authorized to be appropriated 

under subparagraph (A), not to exceed the following, 

shall be available to carry out the purposes set forth in 

subsection (a)(3) of this section:

(i) $14,855,000 for fiscal year 1991.

(ii) $15,598,000 for fiscal year 1992.

(3) At the end of each fiscal year, any unobligated amount 

in excess of $15,000,000 remaining in the Fund shall be 

deposited into the general fund of the Treasury of the United 

States.

Amended: General Accounting Office Act of 1996, Pub. L. 104-

316, Title I, § 110(a), Oct. 19, 1996, 110 Stat. 3826, 3832.

19 U.S.C. § 1614. Release of seized property.

If any person claiming an interest in any vessel, vehicle, 

aircraft, merchandise, or baggage seized under the provisions 

of this chapter offers to pay the value of such vessel, vehicle, 

aircraft, merchandise, or baggage, as determined under 

section 1606 of this title, and it appears that such person has 

in fact a substantial interest therein, the appropriate customs 

officer may, subject to the approval of the Secretary of the 

Treasury if under the customs laws, or the Commandant 

of the Coast Guard or the Commissioner of Customs, as 

the case may be, if under the navigation laws, accept such 

offer and release the vessel, vehicle, aircraft, merchandise, 

or baggage seized upon the payment of such value thereof, 

which shall be distributed in the order provided in section 

1613 of this title.

Amended: Trade and Tariff Act of 1984, Pub. L. 98- 573, Title II, 

§ 213(a)(12), Oct. 30, 1984, 98 Stat. 2948, 2987.

19 U.S.C. § 1615. Burden of proof in forfeiture 

proceedings.

In all suits or actions (other than those arising under section 

1592 of this title) brought for the forfeiture of any vessel, 

vehicle, aircraft, merchandise, or baggage seized under the 

provisions of any law relating to the collection of duties on 

imports or tonnage, where the property is claimed by any 

person, the burden of proof shall lie upon such claimant; and 

in all suits or actions brought for the recovery of the value 

of any vessel, vehicle, aircraft, merchandise, or baggage, 

because of violation of any such law, the burden of proof 

shall be upon the defendant: Provided, That probable cause 

shall be first shown for the institution of such suit or action, 

to be judged of by the court, subject to the following rules 

of proof:
92 • Asset Forfeiture Statutes

19 U.S.C. § 1616a 

(1) The testimony or deposition of the officer of the 

customs who has boarded or required to come to a stop or 

seized a vessel, vehicle, or aircraft, or has arrested a person, 

shall be prima facie evidence of the place where the act in 

question occurred.

(2) Marks, labels, brands, or stamps, indicative of foreign 

origin, upon or accompanying mechandise or containers of 

merchandise, shall be prima facie evidence of the foreign 

origin of such merchandise.

(3) The fact that a vessel of any description is found, or 

discovered to have been, in the vicinity of any hovering 

vessel and under any circumstances indicating contact or 

communication therewith, whether by proceeding to or 

from such vessel, or by coming to in the vicinity of such 

vessel, or by delivering to or receiving from such vessel any 

merchandise, person, or communication, or by any other 

means effecting contact or communication therewith, shall 

be prima facie evidence that the vessel in question has visited 

such hovering vessel.

Amended: Trade and Tariff Act of 1984, Pub. L. 98-573, Title II, 

§ 213(a)(13), Oct. 30, 1984, 98 Stat. 2948, 2987.

19 U.S.C. § 1616a. Disposition of forfeited 

property.

(a) State proceedings

The Secretary of the Treasury may discontinue forfeiture 

proceedings under this chapter in favor of forfeiture under 

State law. If a complaint for forfeiture is filed under this 

chapter, the Attorney General may seek dismissal of the 

complaint in favor of forfeiture under State law.

(b) Transfer of seized property; notice

If forfeiture proceedings are discontinued or dismissed under 

this section—

(1) the United States may transfer the seized property to 

the appropriate State or local official; and

(2) notice of the discontinuance or dismissal shall be 

provided to all known interested parties.

(c) Retention or transfer of forfeited property

(1) The Secretary of the Treasury may apply property 

forfeited under this chapter in accordance with subparagraph 

(A) or (B), or both:

(A) Retain any of the property for official use.

(B) Transfer any of the property to—

(i) any other Federal agency;

(ii) any State or local law enforcement agency that 

participated directly or indirectly in the seizure or 

forfeiture of the property; or

(iii) the Civil Air Patrol.

(2) The Secretary may transfer any forfeited personal 

property or the proceeds of the sale of any forfeited personal 

or real property to any foreign country which participated 

directly or indirectly in the seizure or forfeiture of the property, 

if such a transfer—

(A) has been agreed to by the Secretary of State;

(B) is authorized in an international agreement between 

the United States and the foreign country; and

(C) is made to a country which, if applicable, has been 

certified under section 2291j(b) of Title 22.

(3) Aircraft may be transferred to the Civil Air Patrol under 

paragraph (1)(B)(iii) in support of air search and rescue and 

other emergency services and, pursuant to a memorandum 

of understanding entered into with a Federal agency, illegal 

drug traffic surveillance. Jet-powered aircraft may not be 

transferred to the Civil Air Patrol under the authority of 

paragraph (1)(B)(iii).

(d) Liability of United States after transfer

The United States shall not be liable in any action relating to 

property transferred under this section if such action is based 

on an act or omission occurring after the transfer.

Amended: International Narcotics Control Corrections Act of 

1994, Pub. L. 103-447, Title I, § 102(c), Nov. 2, 1994, 108 Stat. 

4691, 4693.

19 U.S.C. § 1617. Compromise of Government 

claims by Secretary of the Treasury.

Upon a report by a customs officer, United States attorney, 

or any special attorney, having charge of any claim arising 

under the customs laws, showing the facts upon which such 

claim is based, the probabilities of a recovery and the terms 

upon which the same may be compromised, the Secretary of 

the Treasury is authorized to compromise such claim, if such 

action shall be recommended by the General Counsel for the 

Department of the Treasury.

Amended: The Customs Courts Act of 1970, Pub. L. 91-271, 

Title III, § 301(gg), June 2, 1970, 84 Stat. 291.
Asset Forfeiture Statutes • 93

19 U.S.C. § 1620

19 U.S.C. § 1618. Remission or mitigation of 

penalties.

Whenever any person interested in any vessel, vehicle, 

aircraft, merchandise, or baggage seized under the provisions 

of this chapter, or who has incurred, or is alleged to have 

incurred, any fine or penalty thereunder, files with the 

Secretary of the Treasury if under the customs laws, and with 

the Commandant of the Coast Guard or the Commissioner of 

Customs, as the case may be, if under the navigation laws, 

before the sale of such vessel, vehicle, aircraft, merchandise, 

or baggage a petition for the remission or mitigation of such 

fine, penalty, or forfeiture, the Secretary of the Treasury, the 

Commandant of the Coast Guard, or the Commissioner of 

Customs, if he finds that such fine, penalty, or forfeiture was 

incurred without willful negligence or without any intention 

on the part of the petitioner to defraud the revenue or to 

violate the law, or finds the existence of such mitigating 

circumstances as to justify the remission or mitigation of 

such fine, penalty, or forfeiture, may remit or mitigate the 

same upon such terms and conditions as he deems reasonable 

and just, or order discontinuance of any prosecution relating 

thereto. In order to enable him to ascertain the facts, the 

Secretary of the Treasury may issue a commission to any 

customs officer to take testimony upon such petition: 

Provided, That nothing in this section shall be construed 

to deprive any person of an award of compensation made 

before the filing of such petition.

Amended: Trade and Tariff Act of 1984, Pub. L. 98-573, Title II, 

§ 213(a)(16), Oct. 30, 1984, 98 Stat. 2948, 2988.

19 U.S.C. § 1619. Award of compensation to 

informers.

(a) In general

If—

(1) any person who is not an employee or officer of the 

United States—

(A) detects and seizes any vessel, vehicle, aircraft, 

merchandise, or baggage subject to seizure and forfeiture 

under the customs laws or the navigation laws and reports 

such detection and seizure to a customs officer, or

(B) furnishes to a United States attorney, the 

Secretary of the Treasury, or any customs officer original 

information concerning—

(i) any fraud upon the customs revenue, or

(ii) any violation of the customs laws or the 

navigation laws which is being, or has been, 

perpetrated or contemplated by any other person; and

(2) such detection and seizure or such information leads 

to a recovery of—

(A) any duties withheld, or

(B) any fine, penalty, or forfeiture of property incurred;

the Secretary may award and pay such person an amount that 

does not exceed 25 percent of the net amount so recovered.

(b) Forfeited property not sold

If—

(1) any vessel, vehicle, aircraft, merchandise, or baggage 

is forfeited to the United States and is thereafter, in lieu of 

sale—

(A) destroyed under the customs or navigation laws, or

(B) delivered to any governmental agency for official 

use, and

(2) any person would be eligible to receive an award 

under subsection (a) of this section but for the lack of sale 

of such forfeited property,

the Secretary may award and pay such person an amount 

that does not exceed 25 percent of the appraised value of 

such forfeited property.

(c) Dollar limitation

The amount awarded and paid to any person under this 

section may not exceed $250,000 for any case.

(d) Source of payment

Unless otherwise provided by law, any amount paid under 

this section shall be paid out of appropriations available for 

the collection of the customs revenue.

(e) Recovery of bail bond

For purposes of this section, an amount recovered under 

a bail bond shall be deemed a recovery of a fine incurred.

Amended: Anti-Drug Abuse Act of 1986, Pub. L. 99-570, 

Title III, § 3125, Oct. 27, 1986, 100 Stat. 3207-88.

19 U.S.C. § 1620. Acceptance of money by 

United States officers.

Any officer of the United States who directly or indirectly 

receives, accepts, or contracts for any portion of the money 

which may accrue to any person making such detection and 

seizure, or furnishing such information, shall be guilty of a 

felony and, upon conviction thereof, shall be punished by a 

fine of not more than $10,000, or by imprisonment for not 

more than two years, or both, and shall be thereafter ineligible 

to any office of honor, trust, or emolument. Any such person 
94 • Asset Forfeiture Statutes

19 U.S.C. § 1621 

who pays to any such officer, or to any person for the use of 

such officer, any portion of such money, or anything of value 

for or because of such money, shall have a right of action 

against such officer, or his legal representatives, or against 

such person, or his legal representatives, and shall be entitled 

to recover the money so paid or the thing of value so given.

Enacted: June 17, 1930, c. 497, Title IV, § 620, 46 Stat. 758.

19 U.S.C. § 1621. Limitation of actions.

No suit or action to recover any duty under section 1592(d), 

1593a(d) of this title, or any pecuniary penalty or forfeiture of 

property accruing under the customs laws shall be instituted 

unless such suit or action is commenced within five years 

after the time when the alleged offense was discovered, or 

in the case of forfeiture, within 2 years after the time when 

the involvement of the property in the alleged offense was 

discovered, whichever was later; except that—

(1) in the case of an alleged violation of section 1592 or 

1593a of this title, no suit or action (including a suit or action 

for restoration of lawful duties under subsection (d) of such 

sections) may be instituted unless commenced within 5 years 

after the date of the alleged violation or, if such violation 

arises out of fraud, within 5 years after the date of discovery 

of fraud, and

(2) the time of the absence from the United States of 

the person subject to the penalty or forfeiture, or of any 

concealment or absence of the property, shall not be reckoned 

within the 5-year period of limitation.

Amended: Civil Asset Forfeiture Reform Act (CAFRA) of 2000, 

Pub. L. 106-185, § 11, Apr. 25, 2000, 114 Stat. 202, 217.

19 U.S.C. § 1703. Seizure and forfeiture of 

vessels.

(a) Vessels subject to seizure and forfeiture

Whenever any vessel which shall have been built, purchased, 

fitted out in whole or in part, or held, in the United States 

or elsewhere, for the purpose of being employed to defraud 

the revenue or to smuggle any merchandise into the United 

States, or to smuggle any merchandise into the territory of 

any foreign government in violation of the laws there in force, 

if under the laws of such foreign government any penalty or 

forfeiture is provided for violation of the laws of the United 

States respecting the customs revenue, or whenever any 

vessel which shall be found, or discovered to have been, 

employed, or attempted to be employed, within the United 

States for any such purpose, or is anywise in assistance 

thereof, or whenever any vessel of the United States which 

shall be found, or discovered to have been employed, or 

attempted to be employed at any place, for any such purpose, 

or in anywise in assistance thereof, if not subsequently 

forfeited to the United States or to a foreign government, is 

found at any place at which any such vessel may be examined 

by an officer of the customs in the enforcement of any law 

respecting the revenue, the said vessel and its cargo shall be 

seized and forfeited.

(b) “Vessels of the United States” defined

Every vessel which is documented, owned, or controlled in the 

United States, and every vessel of foreign registry which is, 

directly or indirectly, substantially owned or controlled by any 

citizen of, or corporation incorporated, owned, or controlled 

in, the United States, shall, for the purposes of this section, 

be deemed a vessel of the United States.

(c) Acts constituting prima facie evidence vessel engaged in 

smuggling

For the purposes of this section, the fact that a vessel has 

become subject to pursuit as provided in section 1581 of this 

title, or is a hovering vessel, or that a vessel fails, at any place 

within the customs waters of the United States or within a 

customs-enforcement area, to display lights as required by 

law, shall be prima facie evidence that such vessel is being, 

or has been, or is attempted to be employed to defraud the 

revenue of the United States.

Enacted: Aug. 5, 1935, c. 438, Title I, § 3, 49 Stat. 518.

19 U.S.C. § 2609. Seizure and forfeiture. 

(Cultural property) 

(a) In general. Any designated archaeological or ethnological 

material or article of cultural property, as the case may be, 

which is imported into the United States in violation of 

section 307 or section 308 shall be subject to seizure and 

forfeiture. All provisions of law relating to seizure, forfeiture, 

and condemnation for violation of the customs laws shall 

apply to seizures and forfeitures incurred, or alleged to have 

been incurred, under this title, insofar as such provisions of 

law are applicable to, and not inconsistent with, the provisions 

of this title. 

(b) Archaeological and ethnological material. Any designated 

archaeological or ethnological material which is imported 

into the United States in violation of section 307 and which 

is forfeited to the United States under this title shall—

(1) first be offered for return to the State Party;

(2) if not returned to the State Party, be returned to a 

claimant with respect to whom the material was forfeited if 

that claimant establishes—
Asset Forfeiture Statutes • 95

19 U.S.C. § 2609.

(A) valid title to the material,

(B) that the claimant is a bona fide purchaser for value 

of the material; or

(3) if not returned to the State Party under paragraph (1) 

or to a claimant under paragraph (2), be disposed of in the 

manner prescribed by law for articles forfeited for violation 

of the customs laws. 

No return of material may be made under paragraph (1) or (2) 

unless the State Party or claimant, as the case may be, bears 

the expenses incurred incident to the return and delivery, and 

complies with such other requirements relating to the return 

as the Secretary shall prescribe. 

(c) Articles of cultural property.

(1) In any action for forfeiture under this section regarding 

an article of cultural property imported into the United 

States in violation of section 208, if the claimant establishes 

valid title to the article, under applicable law, as against the 

institution from which the article was stolen, forfeiture shall 

not be decreed unless the State Party to which the article is 

to be returned pays the claimant just compensation for the 

article. In any action for forfeiture under this section where 

the claimant does not establish such title but establishes that it 

purchased the article for value without knowledge or reason to 

believe it was stolen, forfeiture shall not be decreed unless—

(A) the State Party to which the article is to be returned 

pays the claimant an amount equal to the amount which 

the claimant paid for the article, or

(B) the United States establishes that such State 

Party, as a matter of law or reciprocity, would in similar 

circumstances recover and return an article stolen from 

an institution in the United States without requiring the 

payment of compensation.

(2) Any article of cultural property which is imported into 

the United States in violation of section 308 and which is 

forfeited to the United States under this title shall—

(A) first be offered for return to the State Party in whose 

territory is situated the institution referred to in section 308 

and shall be returned if that State Party bears the expenses 

incident to such return and delivery and complies with such 

other requirements relating to the return as the Secretary 

prescribes; or

(B) if not returned to such State Party, be disposed of 

in the manner prescribed by law for articles forfeited for 

violation of the customs laws.

Enacted: Convention on Cultural Property Implementation Act, 

Pub. L. 97-446, Title III, § 310, Jan. 12, 1983, 96 Stat. 2329, 2360.
96 • Asset Forfeiture Statutes

21 U.S.C. § 334 

TITLE 21

21 U.S.C. § 334. Seizure. 

(a) Grounds and jurisdiction

(1) Any article of food, drug, or cosmetic that is adulterated 

or misbranded when introduced into or while in interstate 

commerce or while held for sale (whether or not the first sale) 

after shipment in interstate commerce, or which may not, 

under the provisions of section 331(ll), 344, or 355 of this 

title, be introduced into interstate commerce, shall be liable 

to be proceeded against while in interstate commerce, or at 

any time thereafter, on libel of information and condemned in 

any district court of the United States or United States court 

of a Territory within the jurisdiction of which the article is 

found. No libel for condemnation shall be instituted under this 

chapter, for any alleged misbranding if there is pending in any 

court a libel for condemnation proceeding under this chapter 

based upon the same alleged misbranding, and not more than 

one such proceeding shall be instituted if no such proceeding 

is so pending, except that such limitations shall not apply (A) 

when such misbranding has been the basis of a prior judgment 

in favor of the United States, in a criminal, injunction, or libel 

for condemnation proceeding under this chapter, or (B) when 

the Secretary has probable cause to believe from facts found, 

without hearing, by him or any officer or employee of the 

Department that the misbranded article is dangerous to health, 

or that the labeling of the misbranded article is fraudulent, 

or would be in a material respect misleading to the injury or 

damage of the purchaser or consumer. In any case where the 

number of libel for condemnation proceedings is limited as 

above provided the proceeding pending or instituted shall, on 

application of the claimant, seasonably made, be removed for 

trial to any district agreed upon by stipulation between the 

parties, or, in case of failure to so stipulate within a reasonable 

time, the claimant may apply to the court of the district in 

which the seizure has been made, and such court (after giving 

the United States attorney for such district reasonable notice 

and opportunity to be heard) shall by order, unless good 

cause to the contrary is shown, specify a district of reasonable 

proximity to the claimant’s principal place of business, to 

which the case shall be removed for trial.

(2) The following shall be liable to be proceeded against at 

any time on libel of information and condemned in any district 

court of the United States or United States court of a Territory 

within the jurisdiction of which they are found: (A) Any drug 

that is a counterfeit drug, (B) Any container of a counterfeit 

drug, (C) Any punch, die, plate, stone, labeling, container, or 

other thing used or designed for use in making a counterfeit 

drug or drugs, (D) Any adulterated or misbranded device, and 

(E) Any adulterated or misbranded tobacco product.

(3)(A) Except as provided in subparagraph (B), no libel 

for condemnation may be instituted under paragraph (1) or 

(2) against any food which—

(i) is misbranded under section 343(a)(2) of this title 

because of its advertising, and

(ii) is being held for sale to the ultimate consumer 

in an establishment other than an establishment owned 

or operated by a manufacturer, packer, or distributor 

of the food.

(B) A libel for condemnation may be instituted 

under paragraph (1) or (2) against a food described in 

subparagraph (A) if—

(i)(I) the food’s advertising which resulted in the 

food being misbranded under section 343(a)(2) of 

this title was disseminated in the establishment in 

which the food is being held for sale to the ultimate 

consumer,

(II) such advertising was disseminated by, or 

under the direction of, the owner or operator of such 

establishment, or

(III) all or part of the cost of such advertising was 

paid by such owner or operator; and

(ii) the owner or operator of such establishment 

used such advertising in the establishment to promote 

the sale of the food.

(b) Procedure; multiplicity of pending proceedings

The article, equipment, or other thing proceeded against shall 

be liable to seizure by process pursuant to the libel, and the 

procedure in cases under this section shall conform, as nearly 

as may be, to the procedure in admiralty; except that on demand 

of either party any issue of fact joined in any such case shall be 

tried by jury. When libel for condemnation proceedings under 

this section, involving the same claimant and the same issues 

of adulteration or misbranding, are pending in two or more 

jurisdictions, such pending proceedings, upon application of the 

claimant seasonably made to the court of one such jurisdiction, 

shall be consolidated for trial by order of such court, and 

tried in (1) any district selected by the claimant where one of 

such proceedings is pending; or (2) a district agreed upon by 

stipulation between the parties. If no order for consolidation is 

so made within a reasonable time, the claimant may apply to 

the court of one such jurisdiction and such court (after giving 

the United States attorney for such district reasonable notice and 

opportunity to be heard) shall by order, unless good cause to the 

contrary is shown, specify a district of reasonable proximity 

to the claimant’s principal place of business, in which all such 

pending proceedings shall be consolidated for trial and tried. 

Such order of consolidation shall not apply so as to require the 

removal of any case the date for trial of which has been fixed. The 
Asset Forfeiture Statutes • 97

21 U.S.C. § 334

court granting such order shall give prompt notification thereof to 

the other courts having jurisdiction of the cases covered thereby.

(c) Availability of samples of seized goods prior to trial

The court at any time after seizure up to a reasonable time 

before trial shall by order allow any party to a condemnation 

proceeding, his attorney or agent, to obtain a representative 

sample of the article seized and a true copy of the analysis, 

if any, on which the proceeding is based and the identifying 

marks or numbers, if any, of the packages from which the 

samples analyzed were obtained.

(d) Disposition of goods after decree of condemnation; claims 

for remission or mitigation of forfeitures

(1) Any food, drug, device, tobacco product, or cosmetic 

condemned under this section shall, after entry of the decree, 

be disposed of by destruction or sale as the court may, in 

accordance with the provisions of this section, direct and the 

proceeds thereof, if sold, less the legal costs and charges, shall 

be paid into the Treasury of the United States; but such article 

shall not be sold under such decree contrary to the provisions 

of this chapter or the laws of the jurisdiction in which sold. 

After entry of the decree and upon the payment of the costs of 

such proceedings and the execution of a good and sufficient 

bond conditioned that such article shall not be sold or disposed 

of contrary to the provisions of this chapter or the laws of 

any State or Territory in which sold, the court may by order 

direct that such article be delivered to the owner thereof to be 

destroyed or brought into compliance with the provisions of 

this chapter, under the supervision of an officer or employee 

duly designated by the Secretary, and the expenses of such 

supervision shall be paid by the person obtaining release of the 

article under bond. If the article was imported into the United 

States and the person seeking its release establishes (A) that 

the adulteration, misbranding, or violation did not occur after 

the article was imported, and (B) that he had no cause for 

believing that it was adulterated, misbranded, or in violation 

before it was released from customs custody, the court may 

permit the article to be delivered to the owner for exportation 

in lieu of destruction upon a showing by the owner that all of 

the conditions of section 381(e) of this title can and will be 

met. The provisions of this sentence shall not apply where 

condemnation is based upon violation of section 342(a)(1), 

(2), or (6), section 351(a)(3), section 352(j), or section 361(a) 

or (d) of this title. Where such exportation is made to the 

original foreign supplier, then subparagraphs (A) and (B) of 

section 381(e)(1) of this title and the preceding sentence shall 

not be applicable; and in all cases of exportation the bond shall 

be conditioned that the article shall not be sold or disposed of 

until the applicable conditions of section 381(e) of this title 

have been met. Any person seeking to export an imported 

article pursuant to any of the provisions of this subsection 

shall establish that the article was intended for export at the 

time the article entered commerce. Any article condemned by 

reason of its being an article which may not, under section 344 

or 355 of this title, be introduced into interstate commerce, 

shall be disposed of by destruction.

(2) The provisions of paragraph (1) of this subsection shall, 

to the extent deemed appropriate by the court, apply to any 

equipment or other thing which is not otherwise within the 

scope of such paragraph and which is referred to in paragraph 

(2) of subsection (a) of this section.

(3) Whenever in any proceeding under this section, 

involving paragraph (2) of subsection (a) of this section, the 

condemnation of any equipment or thing (other than a drug) is 

decreed, the court shall allow the claim of any claimant, to the 

extent of such claimant’s interest, for remission or mitigation 

of such forfeiture if such claimant proves to the satisfaction 

of the court (i) that he has not committed or caused to be 

committed any prohibited act referred to in such paragraph 

(2) and has no interest in any drug referred to therein, (ii) that 

he has an interest in such equipment or other thing as owner 

or lienor or otherwise, acquired by him in good faith, and (iii) 

that he at no time had any knowledge or reason to believe that 

such equipment or other thing was being or would be used 

in, or to facilitate, the violation of laws of the United States 

relating to counterfeit drugs.

(e) Costs

When a decree of condemnation is entered against the article, 

court costs and fees, and storage and other proper expenses, 

shall be awarded against the person, if any, intervening as 

claimant of the article.

(f) Removal of case for trial

In the case of removal for trial of any case as provided by 

subsection (a) or (b) of this section—

(1) The clerk of the court from which removal is made 

shall promptly transmit to the court in which the case is to be 

tried all records in the case necessary in order that such court 

may exercise jurisdiction.

(2) The court to which such case was removed shall have 

the powers and be subject to the duties, for purposes of such 

case, which the court from which removal was made would 

have had, or to which such court would have been subject, if 

such case had not been removed.

(g) Administrative restraint; detention orders

(1) If during an inspection conducted under section 374 of 

this title of a facility or a vehicle, a device or tobacco product 

which the officer or employee making the inspection has 

reason to believe is adulterated or misbranded is found in 

such facility or vehicle, such officer or employee may order 

the device or tobacco product detained (in accordance with 

regulations prescribed by the Secretary) for a reasonable 

period which may not exceed twenty days unless the Secretary 
98 • Asset Forfeiture Statutes

21 U.S.C. § 334 

determines that a period of detention greater than twenty 

days is required to institute an action under subsection (a) 

of this section or section 332 of this title, in which case he 

may authorize a detention period of not to exceed thirty days. 

Regulations of the Secretary prescribed under this paragraph 

shall require that before a device or tobacco product may be 

ordered detained under this paragraph the Secretary or an 

officer or employee designated by the Secretary approve such 

order. A detention order under this paragraph may require the 

labeling or marking of a device or tobacco product during 

the period of its detention for the purpose of identifying 

the device or tobacco product as detained. Any person who 

would be entitled to claim a device or tobacco product if it 

were seized under subsection (a) of this section may appeal 

to the Secretary a detention of such device or tobacco product 

under this paragraph. Within five days of the date an appeal 

of a detention is filed with the Secretary, the Secretary shall 

after affording opportunity for an informal hearing by order 

confirm the detention or revoke it.

(2)(A) Except as authorized by subparagraph (B), a device 

or tobacco product subject to a detention order issued under 

paragraph (1) shall not be moved by any person from the place 

at which it is ordered detained until—

(i) released by the Secretary, or

(ii) the expiration of the detention period applicable 

to such order,

whichever occurs first.

(B) A device subject to a detention order under 

paragraph (1) may be moved—

(i) in accordance with regulations prescribed by the 

Secretary, and

(ii) if not in final form for shipment, at the discretion 

of the manufacturer of the device for the purpose of 

completing the work required to put it in such form.

(h) Administrative detention of foods

(1) Detention authority

(A) In general

An officer or qualified employee of the Food and Drug 

Administration may order the detention, in accordance 

with this subsection, of any article of food that is found 

during an inspection, examination, or investigation 

under this chapter conducted by such officer or qualified 

employee, if the officer or qualified employee has reason 

to believe that such article is adulterated or misbranded.

(B) Secretary’s approval

An article of food may be ordered detained under 

subparagraph (A) only if the Secretary or an official 

designated by the Secretary approves the order. An official 

may not be so designated unless the official is the director 

of the district under this chapter in which the article 

involved is located, or is an official senior to such director.

(2) Period of detention

An article of food may be detained under paragraph (1) for 

a reasonable period, not to exceed 20 days, unless a greater 

period, not to exceed 30 days, is necessary, to enable the 

Secretary to institute an action under subsection (a) of this 

section or section 332 of this title. The Secretary shall by 

regulation provide for procedures for instituting such action 

on an expedited basis with respect to perishable foods.

(3) Security of detained article

An order under paragraph (1) with respect to an article 

of food may require that such article be labeled or marked 

as detained, and shall require that the article be removed to 

a secure facility, as appropriate. An article subject to such an 

order shall not be transferred by any person from the place at 

which the article is ordered detained, or from the place to which 

the article is so removed, as the case may be, until released by 

the Secretary or until the expiration of the detention period 

applicable under such order, whichever occurs first. This 

subsection may not be construed as authorizing the delivery 

of the article pursuant to the execution of a bond while the 

article is subject to the order, and section 381(b) of this title 

does not authorize the delivery of the article pursuant to the 

execution of a bond while the article is subject to the order.

(4) Appeal of detention order

(A) In general

With respect to an article of food ordered detained under 

paragraph (1), any person who would be entitled to be a 

claimant for such article if the article were seized under 

subsection (a) of this section may appeal the order to the 

Secretary. Within five days after such an appeal is filed, 

the Secretary, after providing opportunity for an informal 

hearing, shall confirm or terminate the order involved, and 

such confirmation by the Secretary shall be considered a 

final agency action for purposes of section 702 of Title 5. 

If during such five-day period the Secretary fails to provide 

such an opportunity, or to confirm or terminate such order, 

the order is deemed to be terminated.

(B) Effect of instituting court action

The process under subparagraph (A) for the appeal of 

an order under paragraph (1) terminates if the Secretary 

institutes an action under subsection (a) of this section 

or section 332 of this title regarding the article of food 

involved.

Amended: FDA Food Safety Modernization Act, Pub. L. 111-

353, Title II, § 207(a), Jan. 4, 2011, 124 Stat. 3944.
Asset Forfeiture Statutes • 99

21 U.S.C. § 853

21 U.S.C. § 853. Criminal forfeitures.

(a) Property subject to criminal forfeiture. Any person 

convicted of a violation of this subchapter or subchapter II 

of this chapter punishable by imprisonment for more than 

one year shall forfeit to the United States, irrespective of any 

provision of State law—

(1) any property constituting, or derived from, any 

proceeds the person obtained, directly or indirectly, as the 

result of such violation;

(2) any of the person’s property used, or intended to be 

used, in any manner or part, to commit, or to facilitate the 

commission of, such violation; and

(3) in the case of a person convicted of engaging in a 

continuing criminal enterprise in violation of section 408 of 

this title (21 U.S.C. 848), the person shall forfeit, in addition 

to any property described in paragraph (1) or (2), any of his 

interest in, claims against, and property or contractual rights 

affording a source of control over, the continuing criminal 

enterprise. 

The court, in imposing sentence on such person, shall order, 

in addition to any other sentence imposed pursuant to this 

title or title III, that the person forfeit to the United States 

all property described in this subsection. In lieu of a fine 

otherwise authorized by this part, a defendant who derives 

profits or other proceeds from an offense may be fined not 

more than twice the gross profits or other proceeds.

(b) Meaning of term “property”. Property subject to criminal 

forfeiture under this section includes—

(1) real property, including things growing on, affixed to, 

and found in land; and

(2) tangible and intangible personal property, including 

rights, privileges, interests, claims, and securities.

(c) Third party transfers. All right, title, and interest in property 

described in subsection (a) vests in the United States upon 

the commission of the act giving rise to forfeiture under this 

section. Any such property that is subsequently transferred to a 

person other than the defendant may be the subject of a special 

verdict of forfeiture and thereafter shall be ordered forfeited to 

the United States, unless the transferee establishes in a hearing 

pursuant to subsection (n) that he is a bona fide purchaser 

for value of such property who at the time of purchase was 

reasonably without cause to believe that the property was 

subject to forfeiture under this section.

(d) Rebuttable presumption. There is a rebuttable presumption 

at trial that any property of a person convicted of a felony 

under this title or title III is subject to forfeiture under this 

section if the United States establishes by a preponderance 

of the evidence that—

(1) such property was acquired by such person during 

the period of the violation of this title or title III or within a 

reasonable time after such period; and

(2) there was no likely source for such property other than 

the violation of this title or title III.

(e) Protective orders.

(1) Upon application of the United States, the court may 

enter a restraining order or injunction, require the execution 

of a satisfactory performance bond, or take any other 

action to preserve the availability of property described in 

subsection (a) for forfeiture under this section—

(A) upon the filing of an indictment or information 

charging a violation of this title or title III for which 

criminal forfeiture may be ordered under this section and 

alleging that the property with respect to which the order 

is sought would, in the event of conviction, be subject to 

forfeiture under this section; or

(B) prior to the filing of such an indictment or 

information, if, after notice to persons appearing to have 

an interest in the property and opportunity for a hearing, 

the court determines that—

(i) there is a substantial probability that the United 

States will prevail on the issue of forfeiture and that 

failure to enter the order will result in the property 

being destroyed, removed from the jurisdiction of the 

court, or otherwise made unavailable for forfeiture; and

(ii) the need to preserve the availability of the property 

through the entry of the requested order outweighs the 

hardship on any party against whom the order is to be 

entered:

Provided, however, That an order entered pursuant to 

subparagraph (B) shall be effective for not more than 

ninety days, unless extended by the court for good cause 

shown or unless an indictment or information described in 

subparagraph (A) has been filed.

(2) A temporary restraining order under this subsection 

may be entered upon application of the United States without 

notice or opportunity for a hearing when an information or 

indictment has not yet been filed with respect to the property, 

if the United States demonstrates that there is probable cause 

to believe that the property with respect to which the order is 

sought would, in the event of conviction, be subject to forfeiture 

under this section and that provision of notice will jeopardize 

the availability of the property for forfeiture. Such a temporary 

order shall expire not more than fourteen days after the date 

on which it is entered, unless extended for good cause shown 

or unless the party against whom it is entered consents to an 

extension for a longer period. A hearing requested concerning 

an order entered under this paragraph shall be held at the earliest 

possible time and prior to the expiration of the temporary order.
100 • Asset Forfeiture Statutes

21 U.S.C. § 853 

(3) The court may receive and consider, at a hearing held 

pursuant to this subsection, evidence and information that 

would be inadmissible under the Federal Rules of Evidence.

(4) Order to repatriate and deposit.

(A) In general. Pursuant to its authority to enter a 

pretrial restraining order under this section, the court may 

order a defendant to repatriate any property that may be 

seized and forfeited, and to deposit that property pending 

trial in the registry of the court, or with the United States 

Marshals Service or the Secretary of the Treasury, in an 

interest-bearing account, if appropriate.

(B) Failure to comply. Failure to comply with an order 

under this subsection, or an order to repatriate property 

under subsection (p), shall be punishable as a civil or 

criminal contempt of court, and may also result in an 

enhancement of the sentence of the defendant under the 

obstruction of justice provision of the Federal Sentencing 

Guidelines.

(f) Warrant of seizure. The Government may request the 

issuance of a warrant authorizing the seizure of property 

subject to forfeiture under this section in the same manner 

as provided for a search warrant. If the court determines that 

there is probable cause to believe that the property to be seized 

would, in the event of conviction, be subject to forfeiture and 

that an order under subsection (e) may not be sufficient to 

assure the availability of the property for forfeiture, the court 

shall issue a warrant authorizing the seizure of such property.

(g) Execution. Upon entry of an order of forfeiture under 

this section, the court shall authorize the Attorney General 

to seize all property ordered forfeited upon such terms and 

conditions as the court shall deem proper. Following entry 

of an order declaring the property forfeited, the court may, 

upon application of the United States, enter such appropriate 

restraining orders or injunctions, require the execution 

of satisfactory performance bonds, appoint receivers, 

conservators, appraisers, accountants, or trustees, or take 

any other action to protect the interest of the United States 

in the property ordered forfeited. Any income accruing to or 

derived from property ordered forfeited under this section 

may be used to offset ordinary and necessary expenses to the 

property which are required by law, or which are necessary 

to protect the interests of the United States or third parties.

(h) Disposition of property. Following the seizure of property 

ordered forfeited under this section, the Attorney General 

shall direct the disposition of the property by sale or any other 

commercially feasible means, making due provision for the 

rights of any innocent persons. Any property right or interest 

not exercisable by, or transferable for value to, the United 

States shall expire and shall not revert to the defendant, nor 

shall the defendant or any person acting in concert with him or 

on his behalf be eligible to purchase forfeited property at any 

sale held by the United States. Upon application of a person, 

other than the defendant or a person acting in concert with 

him or on his behalf, the court may restrain or stay the sale or 

disposition of the property pending the conclusion of any appeal 

of the criminal case giving rise to the forfeiture, if the applicant 

demonstrates that proceeding with the sale or disposition of the 

property will result in irreparable injury, harm, or loss to him.

(i) Authority of the Attorney General. With respect to property 

ordered forfeited under this section, the Attorney General is 

authorized to—

(1) grant petitions for mitigation or remission of forfeiture, 

restore forfeited property to victims of a violation of this 

title, or take any other action to protect the rights of innocent 

persons which is in the interest of justice and which is not 

inconsistent with the provisions of this section;

(2) compromise claims arising under this section;

(3) award compensation to persons providing information 

resulting in a forfeiture under this section;

(4) direct the disposition by the United States, in accordance 

with the provisions of section 511(e) of this title (21 U.S.C. 

881(e)), of all property ordered forfeited under this section 

by public sale or any other commercially feasible means, 

making due provision for the rights of innocent persons; and

(5) take appropriate measures necessary to safeguard and 

maintain property ordered forfeited under this section pending 

its disposition.

(j) Applicability of civil forfeiture provisions. Except to the 

extent that they are inconsistent with the provisions of this 

section, the provisions of section 511(d) of this title (21 U.S.C. 

881(d)) shall apply to a criminal forfeiture under this section.

(k) Bar on intervention. Except as provided in subsection (n), 

no party claiming an interest in property subject to forfeiture 

under this section may— 

(1) intervene in a trial or appeal of a criminal case involving 

the forfeiture of such property under this section; or

(2) commence an action at law or equity against the 

United States concerning the validity of his alleged interest 

in the property subsequent to the filing of an indictment or 

information alleging that the property is subject to forfeiture 

under this section.

(l) Jurisdiction to enter orders. The district courts of the United 

States shall have jurisdiction to enter orders as provided in this 

section without regard to the location of any property which 

may be subject to forfeiture under this section or which has 

been ordered forfeited under this section.

(m) Depositions. In order to facilitate the identification and 

location of property declared forfeited and to facilitate the 

disposition of petitions for remission or mitigation of forfeiture, 
Asset Forfeiture Statutes • 101

21 U.S.C. § 853

after the entry of an order declaring property forfeited to the 

United States, the court may, upon application of the United 

States, order that the testimony of any witness relating to 

the property forfeited be taken by deposition and that any 

designated book, paper, document, record, recording, or other 

material not privileged be produced at the same time and place, 

in the same manner as provided for the taking of depositions 

under Rule 15 of the Federal Rules of Criminal Procedure.

(n) Third party interests.

(1) Following the entry of an order of forfeiture under this 

section, the United States shall publish notice of the order 

and of its intent to dispose of the property in such manner 

as the Attorney General may direct. The Government may 

also, to the extent practicable, provide direct written notice to 

any person known to have alleged an interest in the property 

that is the subject of the order of forfeiture as a substitute for 

published notice as to those persons so notified.

(2) Any person, other than the defendant, asserting a 

legal interest in property which has been ordered forfeited to 

the United States pursuant to this section may, within thirty 

days of the final publication of notice or his receipt of notice 

under paragraph (1), whichever is earlier, petition the court 

for a hearing to adjudicate the validity of his alleged interest 

in the property. The hearing shall be held before the court 

alone, without a jury.

(3) The petition shall be signed by the petitioner under 

penalty of perjury and shall set forth the nature and extent of 

the petitioner’s right, title, or interest in the property, the time 

and circumstances of the petitioner’s acquisition of the right, 

title, or interest in the property, any additional facts supporting 

the petitioner’s claim, and the relief sought.

(4) The hearing on the petition shall, to the extent 

practicable and consistent with the interests of justice, be 

held within thirty days of the filing of the petition. The court 

may consolidate the hearing on the petition with a hearing on 

any other petition filed by a person other than the defendant 

under this subsection.

(5) At the hearing, the petitioner may testify and present 

evidence and witnesses on his own behalf, and cross-examine 

witnesses who appear at the hearing. The United States may 

present evidence and witnesses in rebuttal and in defense of 

its claim to the property and cross-examine witnesses who 

appear at the hearing. In addition to testimony and evidence 

presented at the hearing, the court shall consider the relevant 

portions of the record of the criminal case which resulted in 

the order of forfeiture.

(6) If, after the hearing, the court determines that the petitioner 

has established by a preponderance of the evidence that—

(A) the petitioner has a legal right, title, or interest in the 

property, and such right, title, or interest renders the order of 

forfeiture invalid in whole or in part because the right, title, or 

interest was vested in the petitioner rather than the defendant 

or was superior to any right, title, or interest of the defendant 

at the time of the commission of the acts which gave rise to 

the forfeiture of the property under this section; or

(B) the petitioner is a bona fide purchaser for value of 

the right, title, or interest in the property and was at the 

time of purchase reasonably without cause to believe that 

the property was subject to forfeiture under this section;

the court shall amend the order of forfeiture in accordance 

with its determination.

(7) Following the court’s disposition of all petitions filed 

under this subsection, or if no such petitions are filed following 

the expiration of the period provided in paragraph (2) for the 

filing of such petitions, the United States shall have clear title 

to property that is the subject of the order of forfeiture and may 

warrant good title to any subsequent purchaser or transferee.

(o) Construction. The provisions of this section shall be 

liberally construed to effectuate its remedial purposes.

(p) Forfeiture of substitute property.

(1) In general. Paragraph (2) of this subsection shall apply, 

if any property described in subsection (a), as a result of any 

act or omission of the defendant—

(A) cannot be located upon the exercise of due 

diligence;

(B) has been transferred or sold to, or deposited with, 

a third party;

(C) has been placed beyond the jurisdiction of the court;

(D) has been substantially diminished in value; or

(E) has been commingled with other property which 

cannot be divided without difficulty.

(2) Substitute property. In any case described in any of 

subparagraphs (A) through (E) of paragraph (1), the court shall 

order the forfeiture of any other property of the defendant, up 

to the value of any property described in subparagraphs (A) 

through (E) of paragraph (1), as applicable.

(3) Return of property to jurisdiction. In the case of 

property described in paragraph (1)(C), the court may, in 

addition to any other action authorized by this subsection, 

order the defendant to return the property to the jurisdiction 

of the court so that the property may be seized and forfeited.

(q) Restitution for cleanup of clandestine laboratory sites. 

The court, when sentencing a defendant convicted of an 

offense under this title or title III involving the manufacture, 

the possession, or the possession with intent to distribute, of 

amphetamine or methamphetamine, shall—
102 • Asset Forfeiture Statutes

21 U.S.C. § 881 

(1) order restitution as provided in sections 3612 and 3664 

of title 18, United States Code;

(2) order the defendant to reimburse the United States, the 

State or local government concerned, or both the United States 

and the State or local government concerned for the costs 

incurred by the United States or the State or local government 

concerned, as the case may be, for the cleanup associated with 

the manufacture of amphetamine or methamphetamine by the 

defendant, or on premises or in property that the defendant 

owns, resides, or does business in; and

(3) order restitution to any person injured as a result of 

the offense as provided in section 3663A of title 18, United 

States Code.

Amended: Statutory Time-Periods Technical Amendments Act of 

2009, Pub. L. 111-16, § 5, May 7, 2009, 123 Stat. 1608.

21 U.S.C. § 881. Forfeitures. (Civil)

(a) Subject property

The following shall be subject to forfeiture to the United States 

and no property right shall exist in them:

(1) All controlled substances which have been manufactured, 

distributed, dispensed, or acquired in violation of this subchapter.

(2) All raw materials, products, and equipment of any 

kind which are used, or intended for use, in manufacturing, 

compounding, processing, delivering, importing, or exporting 

any controlled substance or listed chemical in violation of 

this subchapter.

(3) All property which is used, or intended for use, as a 

container for property described in paragraph (1), (2), or (9).

(4) All conveyances, including aircraft, vehicles, or vessels, 

which are used, or are intended for use, to transport, or in any 

manner to facilitate the transportation, sale, receipt, possession, 

or concealment of property described in paragraph (1), (2), or (9).

(5) All books, records, and research, including formulas, 

microfilm, tapes, and data which are used, or intended for use, 

in violation of this subchapter.

(6) All moneys, negotiable instruments, securities, or 

other things of value furnished or intended to be furnished by 

any person in exchange for a controlled substance or listed 

chemical in violation of this subchapter, all proceeds traceable 

to such an exchange, and all moneys, negotiable instruments, 

and securities used or intended to be used to facilitate any 

violation of this subchapter.

(7) All real property, including any right, title, and interest 

(including any leasehold interest) in the whole of any lot or 

tract of land and any appurtenances or improvements, which 

is used, or intended to be used, in any manner or part, to 

commit, or to facilitate the commission of, a violation of this 

subchapter punishable by more than one year’s imprisonment.

(8) All controlled substances which have been possessed 

in violation of this subchapter.

(9) All listed chemicals, all drug manufacturing equipment, 

all tableting machines, all encapsulating machines, and all gelatin 

capsules, which have been imported, exported, manufactured, 

possessed, distributed, dispensed, acquired, or intended to 

be distributed, dispensed, acquired, imported, or exported, in 

violation of this subchapter or subchapter II of this chapter.

(10) Any drug paraphernalia (as defined in section 863 

of this title).

(11) Any firearm (as defined in section 921 of Title 18) 

used or intended to be used to facilitate the transportation, sale, 

receipt, possession, or concealment of property described in 

paragraph (1) or (2) and any proceeds traceable to such property.

(b) Seizure procedures

Any property subject to forfeiture to the United States under 

this section may be seized by the Attorney General in the 

manner set forth in section 981(b) of Title 18.

(c) Custody of Attorney General

Property taken or detained under this section shall not be 

repleviable, but shall be deemed to be in the custody of the 

Attorney General, subject only to the orders and decrees 

of the court or the official having jurisdiction thereof. 

Whenever property is seized under any of the provisions of 

this subchapter, the Attorney General may—

(1) place the property under seal;

(2) remove the property to a place designated by him; or

(3) require that the General Services Administration take 

custody of the property and remove it, if practicable, to an 

appropriate location for disposition in accordance with law.

(d) Other laws and proceedings applicable

The provisions of law relating to the seizure, summary and 

judicial forfeiture, and condemnation of property for violation 

of the customs laws; the disposition of such property or the 

proceeds from the sale thereof; the remission or mitigation 

of such forfeitures; and the compromise of claims shall apply 

to seizures and forfeitures incurred, or alleged to have been 

incurred, under any of the provisions of this subchapter, 

insofar as applicable and not inconsistent with the provisions 

hereof; except that such duties as are imposed upon the 

customs officer or any other person with respect to the seizure 

and forfeiture of property under the customs laws shall be 

performed with respect to seizures and forfeitures of property 

under this subchapter by such officers, agents, or other persons 
Asset Forfeiture Statutes • 103

21 U.S.C. § 881

as may be authorized or designated for that purpose by the 

Attorney General, except to the extent that such duties arise 

from seizures and forfeitures effected by any customs officer.

(e) Disposition of forfeited property

(1) Whenever property is civilly or criminally forfeited 

under this subchapter the Attorney General may—

(A) retain the property for official use or, in the manner 

provided with respect to transfers under section 1616a of 

Title 19, transfer the property to any Federal agency or to any 

State or local law enforcement agency which participated 

directly in the seizure or forfeiture of the property;

(B) except as provided in paragraph (4), sell, by public 

sale or any other commercially feasible means, any forfeited 

property which is not required to be destroyed by law and 

which is not harmful to the public;

(C) require that the General Services Administration 

take custody of the property and dispose of it in accordance 

with law;

(D) forward it to the Drug Enforcement Administration 

for disposition (including delivery for medical or scientific 

use to any Federal or State agency under regulations of the 

Attorney General); or

(E) transfer the forfeited personal property or the 

proceeds of the sale of any forfeited personal or real 

property to any foreign country which participated directly 

or indirectly in the seizure or forfeiture of the property, if 

such a transfer—

(i) has been agreed to by the Secretary of State;

(ii) is authorized in an international agreement 

between the United States and the foreign country; and

(iii) is made to a country which, if applicable, has 

been certified under section 2291j(b) of Title 22.

(2)(A) The proceeds from any sale under subparagraph (B) 

of paragraph (1) and any moneys forfeited under this title shall 

be used to pay—

(i) all property expenses of the proceedings for 

forfeiture and sale including expenses of seizure, 

maintenance of custody, advertising, and court costs; and

(ii) awards of up to $100,000 to any individual who 

provides original information which leads to the arrest 

and conviction of a person who kills or kidnaps a Federal 

drug law enforcement agent.

Any award paid for information concerning the killing or 

kidnapping of a Federal drug law enforcement agent, as 

provided in clause (ii), shall be paid at the discretion of the 

Attorney General.

(B) The Attorney General shall forward to the Treasurer 

of the United States for deposit in accordance with section 

524(c) of Title 28, any amounts of such moneys and 

proceeds remaining after payment of the expenses provided 

in subparagraph (A), except that, with respect to forfeitures 

conducted by the Postal Service, the Postal Service shall 

deposit in the Postal Service Fund, under section 2003(b) (7) 

of Title 39, such moneys and proceeds.

(3) The Attorney General shall assure that any property 

transferred to a State or local law enforcement agency under 

paragraph (1)(A)—

(A) has a value that bears a reasonable relationship to the 

degree of direct participation of the State or local agency in 

the law enforcement effort resulting in the forfeiture, taking 

into account the total value of all property forfeited and the 

total law enforcement effort with respect to the violation of 

law on which the forfeiture is based; and

(B) will serve to encourage further cooperation between 

the recipient State or local agency and Federal law 

enforcement agencies.

(4)(A) With respect to real property described in 

subparagraph (B), if the chief executive officer of the State 

involved submits to the Attorney General a request for 

purposes of such subparagraph, the authority established in 

such subparagraph is in lieu of the authority established in 

paragraph (1)(B).

(B) In the case of property described in paragraph (1)(B) 

that is civilly or criminally forfeited under this subchapter, 

if the property is real property that is appropriate for use as 

a public area reserved for recreational or historic purposes 

or for the preservation of natural conditions, the Attorney 

General, upon the request of the chief executive officer of 

the State in which the property is located, may transfer title 

to the property to the State, either without charge or for a 

nominal charge, through a legal instrument providing that—

(i) such use will be the principal use of the property; 

and

(ii) title to the property reverts to the United States in 

the event that the property is used otherwise.

(f) Forfeiture and destruction of schedule I and II substances

(1) All controlled substances in schedule I or II that are 

possessed, transferred, sold, or offered for sale in violation of the 

provisions of this subchapter; all dangerous, toxic, or hazardous 

raw materials or products subject to forfeiture under subsection 

(a)(2) of this section; and any equipment or container subject to 

forfeiture under subsection (a)(2) or (3) of this section which 

cannot be separated safely from such raw materials or products 

shall be deemed contraband and seized and summarily forfeited 

to the United States. Similarly, all substances in schedule I or 
104 • Asset Forfeiture Statutes

21 U.S.C. § 881 

II, which are seized or come into the possession of the United 

States, the owners of which are unknown, shall be deemed 

contraband and summarily forfeited to the United States.

(2) The Attorney General may direct the destruction of all 

controlled substances in schedule I or II seized for violation of 

this subchapter; all dangerous, toxic, or hazardous raw materials 

or products subject to forfeiture under subsection (a) (2) of this 

section; and any equipment or container subject to forfeiture 

under subsection (a)(2) or (3) of this section which cannot be 

separated safely from such raw materials or products under such 

circumstances as the Attorney General may deem necessary.

(g) Plants

(1) All species of plants from which controlled substances 

in schedules I and II may be derived which have been planted 

or cultivated in violation of this subchapter, or of which the 

owners or cultivators are unknown, or which are wild growths, 

may be seized and summarily forfeited to the United States.

(2) The failure, upon demand by the Attorney General or his 

duly authorized agent, of the person in occupancy or in control 

of land or premises upon which such species of plants are 

growing or being stored, to produce an appropriate registration, 

or proof that he is the holder thereof, shall constitute authority 

for the seizure and forfeiture.

(3) The Attorney General, or his duly authorized agent, shall 

have authority to enter upon any lands, or into any dwelling 

pursuant to a search warrant, to cut, harvest, carry off, or 

destroy such plants.

(h) Vesting of title in United States

All right, title, and interest in property described in subsection(a) 

of this section shall vest in the United States upon commission 

of the act giving rise to forfeiture under this section.

(i) Stay of civil forfeiture proceedings; applicability

The provisions of section 981(g) of title 18, United States 

Code, regarding the stay of a civil forfeiture proceeding shall 

apply to forfeitures under this section.

(j) Venue

In addition to the venue provided for in section 1395 of Title 28 

or any other provision of law, in the case of property of a 

defendant charged with a violation that is the basis for forfeiture 

of the property under this section, a proceeding for forfeiture 

under this section may be brought in the judicial district in 

which the defendant owning such property is found or in the 

judicial district in which the criminal prosecution is brought.

Amended: Criminal Law Technical Amendments Act of 2002, 

Pub. L. 107-273, Div. B, Title IV, § 4002(e)(3), Nov. 2, 2002, 

116 Stat. 1758, 1810.

21 U.S.C. § 881. Note.

[The following “regulations to provide forfeiture procedures” 

are part of section 6079 of Pub. L. 100-690, but are not codified 

to any section of the United States Code.]

(a) In general.—Not later than 90 days after the date of 

enactment of this Act, the Attorney General and the Secretary 

of the Treasury shall consult, and after providing a 30-day 

public comment period, shall prescribe regulations for 

expedited administrative procedures for seizures under 

section 511(a)(4), (6), and (7) of the Controlled Substances 

Act (21 U.S.C. § 881(a)(4), (6), and (7)); section 596 of the 

Tariff Act of 1930 (19 U.S.C. 1595a(a)); and section 2 of 

the Act of August 9, 1939 (53 Stat. 1291; 49 U.S.C. App. 

§ 782) for violations involving the possession of personal 

use quantities of a controlled substance.

(b) Specifications. — The regulations prescribed pursuant 

to subsection (a) shall —

(1) minimize the adverse impact caused by prolonged 

detention; and

(2) provide for a final administrative determination of 

the case within 21 days of seizure, or provide a procedure 

by which the defendant can obtain release of the property 

pending a final determination of the case. Such regulations 

shall provide that the appropriate agency official rendering 

a final determination shall immediately return the property 

if the following conditions are established:

(A) the owner or interested party did not know of 

or consent to the violation;

(B) the owner establishes a valid, good faith interest 

in the seized property as owner or otherwise; and

(C)(1) the owner establishes that the owner at no 

time had any knowledge or reason to believe that the 

property in which the owner claims an interest was 

being or would be used in a violation of the law; and

(2) if the owner at any time had, or should 

have had, knowledge or reason to believe that the 

property in which the owner claims an interest 

was being or would be used in a violation of the 

law, that the owner did what reasonably could 

be expected to prevent the violation.

An owner shall not have the seized property returned under 

this subsection if the owner had not acted in a normal and 

customary manner to ascertain how the property would 

be used.

(c) Notice.—At the time of seizure or upon issuance 

of a summons to appear under subsection (d), the 

officer making the seizure shall furnish to any person in 

possession of the conveyance a written notice specifying 
Asset Forfeiture Statutes • 105

21 U.S.C. § 1049

the procedures under this section. At the earliest 

practicable opportunity after determining ownership of 

the seized conveyance, the head of the department or 

agency that seizes the conveyance shall furnish a written 

notice to the owner and other interested parties (including 

lienholders) of the legal and factual basis of the seizure.

(d) Summons in lieu of seizure of commercial fishing 

industry vessels.—Not later than 90 days after the 

enactment of this Act, the Attorney General, the Secretary 

of the Treasury, and the Secretary of Transportation shall 

prescribe joint regulations, after a public comment period 

of at least 30 days, providing for issuance of a summons 

to appear in lieu of seizure of a commercial fishing 

industry vessel as defined in section 2101(11a), (11b), 

and (11c) of title 46, United States Code, for violations 

involving the possession of personal use quantities of 

a controlled substance. These regulations shall apply 

when the violation is committed on a commercial fishing 

industry vessel that is proceeding to or from a fishing 

area or intermediate port of call, or is actively engaged 

in fishing operations. The authority provided under this 

section shall not affect existing authority to arrest an 

individual for drug-related offenses or to release that 

individual into the custody of the vessel’s master. Upon 

answering a summons to appear, the procedures set forth 

in subsections (a), (b), and (c) of this section shall apply. 

The jurisdiction of the district court for any forfeiture 

incurred shall not be affected by the use of a summons 

under this section.

(e) Personal use quantities of a controlled substance.—For 

the purposes of this section, personal use quantities of a 

controlled substance shall not include sweepings or other 

evidence of nonpersonal use amounts.

This note can be found in the Anti-Drug Abuse Act of 1988, 

Pub. L. 100-690, § 6079, Nov. 18, 1988, 102 Stat. 4181.

21 U.S.C. § 1049. Seizure and condemnation 

proceedings. (Egg products)

(a) Jurisdiction; disposal of condemned articles; court costs 

and fees; conformity to supplemental rules for admiralty and 

maritime claims; jury trial; United States as plaintiff

Any eggs or egg products that are or have been processed, 

bought, sold, possessed, used, transported, or offered or 

received for sale or transportation, in violation of this 

chapter, or in any other way are in violation of this chapter; 

and any restricted eggs, capable of use as human food, in 

the possession of any person not authorized to acquire such 

eggs under the regulations of the Secretary shall be liable 

to be proceeded against and seized and condemned, at any 

time, on a complaint in any United States district court or 

other proper court as provided in section 1050 of this title 

within the jurisdiction of which the articles are found. If the 

articles are condemned they shall, after entry of the decree, 

be disposed of by destruction or sale as the court may direct 

and the proceeds, if sold, less the court costs and fees, and 

storage and other proper expenses, shall be paid into the 

Treasury of the United States, but the articles shall not be sold 

contrary to the provision of this chapter, the Federal Food, 

Drug, and Cosmetic Act or the Fair Packaging and Labeling 

Act, or the laws of the jurisdiction in which they are sold: 

Provided, That upon the execution and delivery of a good and 

sufficient bond conditioned that the articles shall not be sold 

or otherwise disposed of contrary to the provisions of this 

chapter, the Federal Food, Drug, and Cosmetic Act, the Fair 

Packaging and Labeling Act, or the laws of the jurisdiction 

in which disposal is made, the court may direct that they be 

delivered to the owner thereof subject to such supervision by 

authorized representatives of the Secretary as is necessary to 

insure compliance with the applicable laws. When a decree 

of condemnation is entered against the articles and they are 

released under bond, or destroyed, court costs and fees, and 

storage and other proper expenses shall be awarded against 

the person, if any, intervening as claimant thereof. The 

proceedings in such cases shall conform, as nearly as may be, 

to the supplemental rules for certain admiralty and maritime 

claims, except that either party may demand trial by jury of 

any issue of fact joined in any case, and all such proceedings 

shall be at the suit of and in the name of the United States.

(b) Condemnation or seizure under other provisions unaffected

The provisions of this section shall in no way derogate from 

authority for condemnation or seizure conferred by other 

provisions of this chapter, or other laws.

Enacted: Egg Products Inspection Act, Pub. L. 91-597, § 20, 

Dec. 29, 1970, 84 Stat. 1620, 1631.
106 • Asset Forfeiture Statutes

22 U.S.C. § 401 

TITLE 22

22 U.S.C. § 401. Illegal exportation of war 

materials. (Exportation offenses)

(a) Seizure and forfeiture of materials and carriers

Whenever an attempt is made to export or ship from or 

take out of the United States any arms or munitions of 

war or other articles in violation of law, or whenever it is 

known or there shall be probable cause to believe that any 

arms or munitions of war or other articles are intended to 

be or are being or have been exported or removed from 

the United States in violation of law, the Secretary of the 

Treasury, or any person duly authorized for the purpose by 

the President, may seize and detain such arms or munitions 

of war or other articles and may seize and detain any vessel, 

vehicle, or aircraft containing the same or which has been 

or is being used in exporting or attempting to export such 

arms or munitions of war or other articles. The Secretary of 

Commerce may seize and detain any commodity (other than 

arms or munitions of war) or technology which is intended 

to be or is being exported in violation of laws governing 

such exports and may seize and detain any vessel, vehicle, 

or aircraft containing the same or which has been used or is 

being used in exporting or attempting to export such articles. 

All arms or munitions of war and other articles, vessels, 

vehicles, and aircraft seized pursuant to this subsection 

shall be forfeited.

(b) Applicability of laws relating to seizure, forfeiture, and 

condemnation

All provisions of law relating to seizure, summary and 

judicial forfeiture and condemnation for violation of the 

customs laws, the disposition of the property forfeited 

or condemned or the proceeds from the sale thereof; 

the remission or mitigation of such forfeitures; and the 

compromise of claims and the award of compensation to 

informers in respect of such forfeitures shall apply to seizures 

and forfeitures incurred, or alleged to have been incurred, 

under the provisions of this section, insofar as applicable 

and not inconsistent with the provisions hereof. However, 

with respect to seizures and forfeitures of property under 

this section by the Secretary of Commerce, such duties as 

are imposed upon the customs officer or any other person 

with respect to the seizure and forfeiture of property under 

the customs law may be performed by such officers as are 

designated by the Secretary of Commerce or, upon the 

request of the Secretary of Commerce, by any other agency 

that has authority to manage and dispose of seized property. 

Awards of compensation to informers under this section may 

be paid only out of funds specifically appropriated therefor.

(c) Disposition of forfeited materials

Arms and munitions of war forfeited under subsection (b) 

of this section shall be delivered to the Secretary of Defense 

for such use or disposition as he may deem in the public 

interest, or, in the event that the Secretary of Defense refuses 

to accept such arms and munitions of war, they shall be sold 

or otherwise disposed of as prescribed under existing law 

in the case of forfeitures for violation of the customs laws.

Amended: Departments of Commerce, Justice, and State, the 

Judiciary, and Related Agencies Appropriations Act, 1998, Pub. L. 

105-119, Title II, § 211(a), Nov. 26, 1997, 111 Stat. 2440, 2487.

22 U.S.C. § 1978. Restriction on importation 

of fishery or wildlife products from countries 

which violate international fishery or 

endangered or threatened species programs.

(a) Certification to President

(1) When the Secretary of Commerce determines 

that nationals of a foreign country, directly or indirectly, 

are conducting fishing operations in a manner or under 

circumstances which diminish the effectiveness of an 

international fishery conservation program, the Secretary of 

Commerce shall certify such fact to the President.

(2) When the Secretary of Commerce or the Secretary 

of the Interior finds that nationals of a foreign country, 

directly or indirectly, are engaging in trade or taking which 

diminishes the effectiveness of any international program 

for endangered or threatened species, the Secretary making 

such finding shall certify such fact to the President.

(3) In administering this subsection, the Secretary of 

Commerce or the Secretary of the Interior, as appropriate, 

shall—

(A) periodically monitor the activities of foreign 

nationals that may affect the international programs 

referred to in paragraphs (1) and (2);

(B) promptly investigate any activity by foreign 

nationals that, in the opinion of the Secretary, may be 

cause for certification under paragraph (1) or (2); and

(C) promptly conclude; and reach a decision 

with respect to; any investigation commenced under 

subparagraph (B).

(4) Upon receipt of any certification made under 

paragraph (1) or (2), the President may direct the Secretary of 

the Treasury to prohibit the bringing or the importation into 

the United States of any products from the offending country 

for any duration as the President determines appropriate 

and to the extent that such prohibition is sanctioned by the 

World Trade Organization (as defined in section 3501(8) of 
Asset Forfeiture Statutes • 107

22 U.S.C. § 1978

Title 19) or the multilateral trade agreements (as defined in 

section 3501(4) of Title 19).

(b) Notification to Congress

Within sixty days following certification by the Secretary of 

Commerce or the Secretary of the Interior, the President shall 

notify the Congress of any action taken by him pursuant to 

such certification. In the event the President fails to direct the 

Secretary of the Treasury to prohibit the importation of fish 

products or wildlife products of the offending country, or if 

such prohibition does not cover all fish products or wildlife 

products of the offending country, the President shall inform 

the Congress of the reasons therefor.

(c) Importation of fish products from offending country 

prohibited

It shall be unlawful for any person subject to the jurisdiction 

of the United States knowingly to bring or import into, or 

cause to be imported into, the United States any products 

prohibited by the Secretary of the Treasury pursuant to this 

section.

(d) Periodic review by Secretary of Commerce or Secretary 

of the Interior; termination of certification; notice

After making a certification to the President under 

subsection (a) of this section, the Secretary of Commerce 

or the Secretary of the Interior, as the case may be, shall 

periodically review the activities of the nationals of the 

offending country to determine if the reasons for which the 

certification was made no longer prevail. Upon determining 

that such reasons no longer prevail, the Secretary concerned 

shall terminate the certification and publish notice thereof, 

together with a statement of the facts on which such 

determination is based, in the Federal Register.

(e) Penalties; forfeiture; customs laws

(1) Any person violating the provisions of this section 

shall be fined not more than $10,000 for the first violation, 

and not more than $25,000 for each subsequent violation.

(2) All products brought or imported into the United 

States in violation of this section, or the monetary value 

thereof, may be forfeited.

(3) All provisions of law relating to the seizure, judicial 

forfeiture, and condemnation of a cargo for violation of the 

customs laws, the disposition of such cargo or the proceeds 

from the sale thereof, and the remission or mitigation of such 

forfeitures shall apply to seizures and forfeitures incurred, or 

alleged to have been incurred, under the provisions of this 

section, insofar as such provisions of law are applicable and 

not inconsistent with this section.

(f) Enforcement

(1) Enforcement of the provisions of this section 

prohibiting the bringing or importation of products into the 

United States shall be the responsibility of the Secretary of 

the Treasury.

(2) The judges of the United States district courts, and 

United States magistrate judges may, within their respective 

jurisdictions, upon proper oath or affirmation showing 

probable cause, issue such warrants or other process as may 

be required for enforcement of this chapter and regulations 

issued thereunder.

(3) Any person authorized to carry out enforcement 

activities hereunder shall have the power to execute 

any warrant or process issued by any officer or court of 

competent jurisdiction for the enforcement of this section.

(4) Such person so authorized shall have the power—

(A) with or without a warrant or other process, to 

arrest any persons subject to the jurisdiction of the United 

States committing in his presence or view a violation of 

this section or the regulations issued thereunder;

(B) with or without a warrant or other process, to 

search any vessel or other conveyance subject to the 

jurisdiction of the United States, and, if as a result of 

such search he has reasonable cause to believe that such 

vessel or other conveyance or any person on board is 

engaging in operations in violation of this section or the 

regulations issued thereunder, then to arrest such person.

(5) Such person so authorized, may seize, whenever and 

wherever lawfully found, all products brought or imported 

into the United States in violation of this section or the 

regulations issued thereunder. Products so seized may be 

disposed of pursuant to the order of a court of competent 

jurisdiction, or, if perishable, in a manner prescribed by 

regulations promulgated by the Secretary of the Treasury 

after consultation with the Secretary of Health and Human 

Services.

(g) Regulations

The Secretary of the Treasury, the Secretary of Commerce, 

and the Secretary of the Interior are each authorized to 

prescribe such regulations as he determines necessary to 

carry out the provisions of this section.

(h) Definitions

As used in this section—

(1) The term “person” means any individual, partnership, 

corporation, or association.

(2) The term “United States” means the several States, 

the District of Columbia, Puerto Rico, the Northern Mariana 

Islands, American Samoa, Guam, the Virgin Islands, and 

every other territory and possession of the United States.
108 • Asset Forfeiture Statutes

22 U.S.C. § 1978 

(3) The term “international fishery conservation program” 

means any ban, restriction, regulation, or other measure in 

effect pursuant to a bilateral or multilateral agreement which 

is in force with respect to the United States, the purpose of 

which is to conserve or protect the living resources of the 

sea, including marine mammals.

(4) The term “international program for endangered or 

threatened species” means any ban, restriction, regulation, or 

other measure in effect pursuant to a multilateral agreement 

which is in force with respect to the United States, the 

purpose of which is to protect endangered or threatened 

species of animals.

(5) The term “taking”, as used with respect to animals to 

which an international program for endangered or threatened 

species applies, means to—

(A) harass, harm, pursue, hunt, shoot, wound, kill, 

trap, capture, or collect; or

(B) attempt to harass, harm, pursue, hunt, shoot, 

wound, kill, trap, capture, or collect.

Amended: Miscellaneous Trade and Technical Corrections 

Act of 1999, Pub. L. 106-36, Title I, § 1002(d), June 25, 1999, 

113 Stat. 127, 133.
Asset Forfeiture Statutes • 109

26 U.S.C. § 7303

TITLE 26

26 U.S.C. § 5872. Forfeitures. (Machine guns, 

destructive devices, and certain other firearms)

(a) Laws applicable.—Any firearm involved in any violation 

of the provisions of this chapter shall be subject to seizure 

and forfeiture, and (except as provided in subsection (b)) all 

the provisions of internal revenue laws relating to searches, 

seizures, and forfeitures of unstamped articles are extended 

to and made to apply to the articles taxed under this chapter, 

and the persons to whom this chapter applies.

(b) Disposal.—In the case of the forfeiture of any firearm 

by reason of a violation of this chapter, no notice of public 

sale shall be required; no such firearm shall be sold at public 

sale; if such firearm is forfeited for a violation of this chapter 

and there is no remission or mitigation of forfeiture thereof, 

it shall be delivered by the Secretary to the Administrator of 

General Services, General Services Administration, who may 

order such firearm destroyed or may sell it to any State, or 

possession, or political subdivision thereof, or at the request 

of the Secretary, may authorize its retention for official use 

of the Treasury Department, or may transfer it without charge 

to any executive department or independent establishment of 

the Government for use by it.

Amended: Tax Reform Act of 1976, Pub. L. 94-455, Title XIX, 

§ 1906(b) (13) (A), Oct. 4, 1976, 90 Stat. 1520, 1834.

26 U.S.C. § 7302. Property used in violation of 

internal revenue laws.

It shall be unlawful to have or possess any property intended 

for use in violating the provisions of the internal revenue laws, 

or regulations prescribed under such laws, or which has been 

so used, and no property rights shall exist in any such property. 

A search warrant may issue as provided in chapter 205 of 

title 18 of the United States Code and the Federal Rules of 

Criminal Procedure for the seizure of such property. Nothing 

in this section shall in any manner limit or affect any criminal 

or forfeiture provision of the internal revenue laws, or of any 

other law. The seizure and forfeiture of any property under the 

provisions of this section and the disposition of such property 

subsequent to seizure and forfeiture, or the disposition of the 

proceeds from the sale of such property, shall be in accordance 

with existing laws or those hereafter in existence relating to 

seizures, forfeitures, and disposition of property or proceeds, 

for violation of the internal revenue laws.

Enacted: Internal Revenue Code of 1954, Aug. 16, 1954, c. 736, 

68A Stat. 867.

26 U.S.C. § 7303. Other property subject to 

forfeiture.

There may be seized and forfeited to the United States the 

following:

(1) Counterfeit stamps.—Every stamp involved in the 

offense described in section 7208 (relating to counterfeit, 

reused, cancelled, etc., stamps), and the vellum, parchment, 

document, paper, package, or article upon which such stamp 

was placed or impressed in connection with such offense.

(2) False stamping of packages.—Any container involved 

in the offense described in section 7271 (relating to disposal 

of stamped packages), and of the contents of such container.

(3) Fraudulent bonds, permits, and entries.—All property 

to which any false or fraudulent instrument involved in the 

offense described in section 7207 relates.

Amended: Tax Reform Act of 1976, Pub. L. 94-455, Title XIX, 

§ 1904(b)(8)(G), (9)(D), Oct. 4, 1976, 90 Stat. 1520, 1816.
110 • Asset Forfeiture Statutes

28 U.S.C. § 524(c) 

TITLE 28

28 U.S.C. § 524(c). Availability of 

Appropriations. (Department of Justice Assets 

Forfeiture Fund)

(c)(1) There is established in the United States Treasury 

a special fund to be known as the Department of Justice 

Assets Forfeiture Fund (hereafter in this subsection referred 

to as the “Fund”) which shall be available to the Attorney 

General without fiscal year limitation for the following law 

enforcement purposes—

(A) the payment, at the discretion of the Attorney 

General, of any expenses necessary to seize, detain, 

inventory, safeguard, maintain, advertise, sell, or dispose 

of property under seizure, detention, or forfeited pursuant 

to any law enforced or administered by the Department 

of Justice, or of any other necessary expense incident 

to the seizure, detention, forfeiture, or disposal of such 

property including—

(i) payments for—

(I) contract services;

(II) the employment of outside contractors to 

operate and manage properties or provide other 

specialized services necessary to dispose of such 

properties in an effort to maximize the return from 

such properties; and

(III) reimbursement of any Federal, State, or 

local agency for any expenditures made to perform 

the functions described in this clause;

(ii) payments to reimburse any Federal agency 

participating in the Fund for investigative costs leading 

to seizures;

(iii) payments for contracting for the services of 

experts and consultants needed by the Department of 

Justice to assist in carrying out duties related to asset 

seizure and forfeiture; and

(iv) payments made pursuant to guidelines 

promulgated by the Attorney General if such payments 

are necessary and directly related to seizure and 

forfeiture program expenses for—

(I) the purchase or lease of automatic data 

processing systems (not less than a majority of 

which use will be related to such program);

(II) training;

(III) printing;

(IV) the storage, protection, and destruction of 

controlled substances; and

(V) contracting for services directly related 

to the identification of forfeitable assets, and the 

processing of and accounting for forfeitures;

(B) the payment of awards for information or 

assistance directly relating to violations of the criminal 

drug laws of the United States or of sections 1956 and 

1957 of title 18, sections 5313 and 5324 of title 31, and 

section 6050I of the Internal Revenue Code of 1986;

(C) at the discretion of the Attorney General, the 

payment of awards for information or assistance leading 

to a civil or criminal forfeiture involving any Federal 

agency participating in the Fund;

(D) the compromise and payment of valid liens 

and mortgages against property that has been forfeited 

pursuant to any law enforced or administered by the 

Department of Justice, subject to the discretion of the 

Attorney General to determine the validity of any such 

lien or mortgage and the amount of payment to be made, 

and the employment of attorneys and other personnel 

skilled in State real estate law as necessary;

(E)(i) for disbursements authorized in connection with 

remission or mitigation procedures relating to property 

forfeited under any law enforced or administered by the 

Department of Justice; and

(ii) for payment for—

(I) costs incurred by or on behalf of the 

Department of Justice in connection with the 

removal, for purposes of Federal forfeiture 

and disposition, of any hazardous substance or 

pollutant or contaminant associated with the illegal 

manufacture of amphetamine or methamphetamine; 

and

(II) costs incurred by or on behalf of a State or 

local government in connection with such removal 

in any case in which such State or local government 

has assisted in a Federal prosecution relating to 

amphetamine or methamphetamine, to the extent 

such costs exceed equitable sharing payments made 

to such State or local government in such case;

(F)(i) for equipping for law enforcement functions 

of any Government-owned or leased vessel, vehicle, or 

aircraft available for official use by any Federal agency 

participating in the Fund;

(ii) for equipping any vessel, vehicle, or aircraft 

available for official use by a State or local law 

enforcement agency to enable the vessel, vehicle, 

or aircraft to assist law enforcement functions if 
Asset Forfeiture Statutes • 111

28 U.S.C. § 524(c)

the vessel, vehicle, or aircraft will be used in a joint 

law enforcement operation with a Federal agency 

participating in the Fund; and

(iii) payments for other equipment directly 

related to seizure or forfeiture, including laboratory 

equipment, protective equipment, communications 

equipment, and the operation and maintenance costs 

of such equipment;

(G) for purchase of evidence of any violation of the 

Controlled Substances Act, the Controlled Substances 

Import and Export Act, chapter 96 of title 18, or sections 

1956 and 1957 of title 18;

(H) the payment of State and local property taxes on 

forfeited real property that accrued between the date of 

the violation giving rise to the forfeiture and the date of 

the forfeiture order; and

(I) payment of overtime salaries, travel, fuel, training, 

equipment, and other similar costs of State or local law 

enforcement officers that are incurred in a joint law 

enforcement operation with a Federal law enforcement 

agency participating in the Fund.

Amounts for paying the expenses authorized by subparagraphs 

(B), (F), and (G) shall be specified in appropriations Acts and 

may be used under authorities available to the organization 

receiving the funds. Amounts for other authorized 

expenditures and payments from the Fund, including 

equitable sharing payments, are not required to be specified 

in appropriations acts. The Attorney General may exempt 

the procurement of contract services under subparagraph 

(A) under the Fund from division C (except sections 3302, 

3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 

41, section 6101(b) to (d) of title 41, and other provisions 

of law as may be necessary to maintain the security and 

confidentiality of related criminal investigations.

(2) Any award paid from the Fund, as provided in 

paragraph (1)(B) or (C), shall be paid at the discretion 

of the Attorney General or his delegate, under existing 

departmental delegation policies for the payment of awards, 

except that the authority to pay an award of $250,000 or 

more shall not be delegated to any person other than the 

Deputy Attorney General, the Associate Attorney General, 

the Director of the Federal Bureau of Investigation, or the 

Administrator of the Drug Enforcement Administration. 

Any award pursuant to paragraph (1)(B) shall not exceed 

$500,000. Any award pursuant to paragraph (1) (C) shall not 

exceed the lesser of $500,000 or one-fourth of the amount 

realized by the United States from the property forfeited, 

without both the personal approval of the Attorney General 

and written notice within 30 days thereof to the Chairmen 

and ranking minority members of the Committees on 

Appropriations and the Judiciary of the Senate and of the 

House of Representatives.

(3) Any amount under subparagraph (G) of paragraph 

(1) shall be paid at the discretion of the Attorney General 

or his delegate, except that the authority to pay $100,000 or 

more may be delegated only to the respective head of the 

agency involved.

(4) There shall be deposited in the Fund—

(A) all amounts from the forfeiture of property under 

any law enforced or administered by the Department of 

Justice, except all proceeds of forfeitures available for 

use by the Secretary of the Treasury or the Secretary of 

the Interior pursuant to section 11(d) of the Endangered 

Species Act (16 U.S.C. § 1540(d)) or section 6(d) of the 

Lacey Act Amendments of 1981 (16 U.S.C. § 3375(d)), 

or the Postmaster General of the United States pursuant 

to 39 U.S.C. § 2003(b)(7);

(B) all amounts representing the Federal equitable 

share from the forfeiture of property under any Federal, 

State, local or foreign law, for any Federal agency 

participating in the Fund;

(C) all amounts transferred by the Secretary of the 

Treasury pursuant to section 9703(g)(4)(A)(ii) of title 31; 

and

(D) all amounts collected—

(i) by the United States pursuant to a reimbursement 

order under paragraph (2) of section 413(q) of the 

Controlled Substances Act (21 U.S.C. § 853(q)); and

(ii) pursuant to a restitution order under paragraph 

(1) or (3) of section 413(q) of the Controlled 

Substances Act for injuries to the United States.

(5) Amounts in the Fund, and in any holding accounts 

associated with the Fund, that are not currently needed for the 

purpose of this section shall be kept on deposit or invested 

in obligations of, or guaranteed by, the United States and all 

earnings on such investments shall be deposited in the Fund.

(6)(A) The Attorney General shall transmit to Congress 

and make available to the public, not later than 4 months 

after the end of each fiscal year, detailed reports for the prior 

fiscal year as follows:

(i) A report on total deposits to the Fund by State 

of deposit.

(ii) A report on total expenses paid from the Fund, 

by category of expense and recipient agency, including 

equitable sharing payments.
112 • Asset Forfeiture Statutes

28 U.S.C. § 524(c) 

(iii) A report describing the number, value, and 

types of properties placed into official use by Federal 

agencies, by recipient agency.

(iv) A report describing the number, value, and 

types of properties transferred to State and local law 

enforcement agencies, by recipient agency.

(v) A report, by type of disposition, describing 

the number, value, and types of forfeited property 

disposed of during the year.

(vi) A report on the year-end inventory of property 

under seizure, but not yet forfeited, that reflects the 

type of property, its estimated value, and the estimated 

value of liens and mortgages outstanding on the 

property.

(vii) A report listing each property in the year-end 

inventory, not yet forfeited, with an outstanding equity 

of not less than $1,000,000.

(B) The Attorney General shall transmit to Congress 

and make available to the public, not later than 2 months 

after final issuance, the audited financial statements for 

each fiscal year for the Fund.

(C) Reports under subparagraph (A) shall include 

information with respect to all forfeitures under any law 

enforced or administered by the Department of Justice.

(D) The transmittal and publication requirements in 

subparagraphs (A) and (B) may be satisfied by—

(i) posting the reports on an Internet website 

maintained by the Department of Justice for a period 

of not less than 2 years; and

(ii) notifying the Committees on the Judiciary of 

the House of Representatives and the Senate when the 

reports are available electronically.

(7) The provisions of this subsection relating to deposits 

in the Fund shall apply to all property in the custody of the 

Department of Justice on or after the effective date of the 

Comprehensive Forfeiture Act of 1983.

(8)(A) There are authorized to be appropriated such sums 

as necessary for the purposes described in subparagraphs 

(B), (F), and (G) of paragraph (1).

(B) Subject to subparagraphs (C) and (D), at the end 

of each of fiscal years 1994, 1995, and 1996, the Attorney 

General shall transfer from the Fund not more than 

$100,000,000 to the Special Forfeiture Fund established 

by section 6073 of the Anti-Drug Abuse Act of 1988.

(C) Transfers under subparagraph (B) may be made 

only from the excess unobligated balance and may not 

exceed one-half of the excess unobligated balance for any 

year. In addition, transfers under subparagraph (B) may 

be made only to the extent that the sum of the transfers in 

a fiscal year and one- half of the unobligated balance at 

the beginning of that fiscal year for the Special Forfeiture 

Fund does not exceed $100,000,000.

(D) For the purpose of determining amounts available 

for distribution at year end for any fiscal year, “excess 

unobligated balance” means the unobligated balance of 

the Fund generated by that fiscal year’s operations, less 

any amounts that are required to be retained in the Fund 

to ensure the availability of amounts in the subsequent 

fiscal year for purposes authorized under paragraph (1).

(E) Subject to the notification procedures contained in 

section 605 of Public Law 103-121, and after satisfying 

the transfer requirement in subparagraph (B) of this 

paragraph, any excess unobligated balance remaining 

in the Fund on September 30, 1997 and thereafter shall 

be available to the Attorney General, without fiscal year 

limitation, for any Federal law enforcement, litigative/

prosecutive, and correctional activities, or any other 

authorized purpose of the Department of Justice. Any 

amounts provided pursuant to this subparagraph may 

be used under authorities available to the organization 

receiving the funds.

(9)(A) Following the completion of procedures for 

the forfeiture of property pursuant to any law enforced or 

administered by the Department, the Attorney General is 

authorized, in her discretion, to warrant clear title to any 

subsequent purchaser or transferee of such property.

(B) For fiscal years 2002 and 2003, the Attorney 

General is authorized to transfer, under such terms and 

conditions as the Attorney General shall specify, real or 

personal property of limited or marginal value, to a State 

or local government agency, or its designated contractor 

or transferee, for use to support drug abuse treatment, 

drug and crime prevention and education, housing, job 

skills, and other community-based public health and 

safety programs. Each such transfer shall be subject to 

satisfaction by the recipient involved of any outstanding 

lien against the property transferred, but no such transfer 

shall create or confer any private right of action in any 

person against the United States.

(10) The Attorney General shall transfer from the Fund to 

the Secretary of the Treasury for deposit in the Department of 

the Treasury Forfeiture Fund amounts appropriate to reflect 

the degree of participation of the Department of the Treasury 

law enforcement organizations (described in section 9703(p) 

of title 31) in the law enforcement effort resulting in the 

forfeiture pursuant to laws enforced or administered by the 

Department of Justice.
Asset Forfeiture Statutes • 113

28 U.S.C. § 1355

(11) For purposes of this subsection and notwithstanding 

section 9703 of title 31 or any other law, property is 

forfeited pursuant to a law enforced or administered by the 

Department of Justice if it is forfeited pursuant to—

(A) a judicial forfeiture proceeding when the 

underlying seizure was made by an officer of a Federal 

law enforcement agency participating in the Department 

of Justice Assets Forfeiture Fund or the property was 

maintained by the United States Marshals Service; or

(B) a civil administrative forfeiture proceeding 

conducted by a Department of Justice law enforcement 

component or pursuant to the authority of the Secretary 

of Commerce.

[(12) Redesignated (11)]

(d)(1) The Attorney General may accept, hold, administer, and 

use gifts, devises, and bequests of any property or services 

for the purpose of aiding or facilitating the work of the 

Department of Justice.

(2) Gifts, devises, and bequests of money, the proceeds of 

sale or liquidation of any other property accepted hereunder, 

and any income accruing from any property accepted 

hereunder—

(A) shall be deposited in the Treasury in a separate fund 

and held in trust by the Secretary of the Treasury for the 

benefit of the Department of Justice; and

(B) are hereby appropriated, without fiscal year 

limitation, and shall be disbursed on order of the Attorney 

General.

(3) Upon request of the Attorney General, the Secretary 

of the Treasury may invest and reinvest the fund described 

herein in public debt securities with maturities suitable for 

the needs of the fund and bearing interest at rates determined 

by the Secretary of the Treasury, taking into consideration 

the current average market yield on outstanding marketable 

obligations of the United States or comparable maturities.

(4) Evidences of any intangible personal property (other 

than money) accepted hereunder shall be deposited with the 

Secretary of the Treasury, who may hold or liquidate them, 

except that they shall be liquidated upon the request of the 

Attorney General.

(5) For purposes of federal income, estate, and gift taxes, 

property accepted hereunder shall be considered a gift, devise, 

or bequest to, or for the use of, the United States.

Amended: Public Contracts—Enact Certain Laws, Pub. L. 111-

350, § 5(g)(1), Jan. 4, 2011, 124 Stat. 3848.

28 U.S.C. § 1355. Fine, penalty, or forfeiture. 

(Subject matter jurisdiction; in rem 

jurisdiction)

(a) The district courts shall have original jurisdiction, 

exclusive of the courts of the States, of any action or 

proceeding for the recovery or enforcement of any fine, 

penalty, or forfeiture, pecuniary or otherwise, incurred under 

any Act of Congress, except matters within the jurisdiction 

of the Court of International Trade under section 1582 of 

this title.

(b)(1) A forfeiture action or proceeding may be brought in—

(A) the district court for the district in which any of the 

acts or omissions giving rise to the forfeiture occurred, or

(B) any other district where venue for the forfeiture 

action or proceeding is specifically provided for in section 

1395 of this title or any other statute.

(2) Whenever property subject to forfeiture under the 

laws of the United States is located in a foreign country, 

or has been detained or seized pursuant to legal process or 

competent authority of a foreign government, an action or 

proceeding for forfeiture may be brought as provided in 

paragraph (1), or in the United States District court for the 

District of Columbia.

(c) In any case in which a final order disposing of property 

in a civil forfeiture action or proceeding is appealed, removal 

of the property by the prevailing party shall not deprive the 

court of jurisdiction. Upon motion of the appealing party, 

the district court or the court of appeals shall issue any order 

necessary to preserve the right of the appealing party to the 

full value of the property at issue, including a stay of the 

judgment of the district court pending appeal or requiring 

the prevailing party to post an appeal bond.

(d) Any court with jurisdiction over a forfeiture action 

pursuant to subsection (b) may issue and cause to be served 

in any other district such process as may be required to 

bring before the court the property that is the subject of the 

forfeiture action.

Amended: Housing and Community Development Act of 1992, 

Pub. L. 102-550, Title XV, § 1521, Oct. 28, 1992, 106 Stat. 

3672, 4062.
114 • Asset Forfeiture Statutes

28 U.S.C. § 1395 

28 U.S.C. § 1395. Fine, penalty, or forfeiture. 

(Venue)

(a) A civil proceeding for the recovery of a pecuniary fine, 

penalty or forfeiture may be prosecuted in the district where 

it accrues or the defendant is found.

(b) A civil proceeding for the forfeiture of property may be 

prosecuted in any district where such property is found.

(c) A civil proceeding for the forfeiture of property seized 

outside any judicial district may be prosecuted in any district 

into which the property is brought.

(d) A proceeding in admiralty for the enforcement of fines, 

penalties and forfeitures against a vessel may be brought in 

any district in which the vessel is arrested.

(e) Any proceeding for the forfeiture of a vessel or cargo 

entering a port of entry closed by the President in pursuance 

of law, or of goods and chattels coming from a State or 

section declared by proclamation of the President to be in 

insurrection, or of any vessel or vehicle conveying persons 

or property to or from such State or section or belonging in 

whole or in part to a resident thereof, may be prosecuted in 

any district into which the property is taken and in which the 

proceeding is instituted.

Enacted: June 25, 1948, c. 646, 62 Stat. 936.

28 U.S.C. § 1651. All Writs Act.

(a) The Supreme Court and all courts established by Act of 

Congress may issue all writs necessary or appropriate in aid 

of their respective jurisdictions and agreeable to the usages 

and principles of law.

(b) An alternative writ or rule nisi may be issued by a justice 

or judge of a court which has jurisdiction.

Amended: May 24, 1949, c. 139, § 90, 63 Stat. 102.

28 U.S.C. § 2001. Sale of realty generally.

(a) Any realty or interest therein sold under any order or decree 

of any court of the United States shall be sold as a whole or in 

separate parcels at public sale at the courthouse of the county, 

parish, or city in which the greater part of the property is 

located, or upon the premises or some parcel thereof located 

therein, as the court directs. Such sale shall be upon such terms 

and conditions as the court directs.

Property in the possession of a receiver or receivers appointed 

by one or more district courts shall be sold at public sale in 

the district wherein any such receiver was first appointed, at 

the courthouse of the county, parish, or city situated therein 

in which the greater part of the property in such district is 

located, or on the premises or some parcel thereof located in 

such county, parish, or city, as such court directs, unless the 

court orders the sale of the property or one or more parcels 

thereof in one or more ancillary districts.

(b) After a hearing, of which notice to all interested parties 

shall be given by publication or otherwise as the court directs, 

the court may order the sale of such realty or interest or any 

part thereof at private sale for cash or other consideration 

and upon such terms and conditions as the court approves, if 

it finds that the best interests of the estate will be conserved 

thereby. Before confirmation of any private sale, the court shall 

appoint three disinterested persons to appraise such property or 

different groups of three appraisers each to appraise properties 

of different classes or situated in different localities. No 

private sale shall be confirmed at a price less than two-thirds 

of the appraised value. Before confirmation of any private 

sale, the terms thereof shall be published in such newspaper 

or newspapers of general circulation as the court directs at 

least ten days before confirmation. The private sale shall not 

be confirmed if a bona fide offer is made, under conditions 

prescribed by the court, which guarantees at least a 10 per 

centum increase over the price offered in the private sale.

(c) This section shall not apply to sales and proceedings under 

Title 11 or by receivers or conservators of banks appointed 

by the Comptroller of the Currency.

Amended: May 24, 1949, c. 139, § 99, 63 Stat. 104.

28 U.S.C. § 2002. Notice of sale of realty.

A public sale of realty or interest therein under any order, 

judgment or decree of any court of the United States shall 

not be made without notice published once a week for at least 

four weeks prior to the sale in at least one newspaper regularly 

issued and of general circulation in the county, state, or judicial 

district of the United States wherein the realty is situated.

If such realty is situated in more than one county, state, district 

or circuit, such notice shall be published in one or more of 

the counties, states, or districts wherein it is situated, as the 

court directs. The notice shall be substantially in such form 

and contain such description of the property by reference or 

otherwise as the court approves. The court may direct that the 

publication be made in other newspapers.

This section shall not apply to sales and proceedings under 

Title 11 or by receivers or conservators of banks appointed 

by the Comptroller of the Currency.

Amended: May 24, 1949, c. 139, § 100, 63 Stat. 104.
Asset Forfeiture Statutes • 115

28 U.S.C. § 2007

28 U.S.C. § 2003. Marshal’s incapacity after 

levy on or sale of realty.

Whenever a United States marshal dies, is removed from 

office, or the term of his commission expires, after levying 

on realty or any interest therein under a writ of execution 

issued by a court of the United States, and before sale or 

other final disposition thereof, like process shall issue to the 

succeeding marshal and the same proceedings shall be had 

as if such contingency had not occurred.

Whenever any such contingency arises after a marshal 

has sold any realty or interest therein and before a deed is 

executed, the court may, on application by the purchaser, 

or the plaintiff in whose action the sale was made, setting 

forth the facts of the case and the reason why the title was 

not perfected by such marshal, order the succeeding marshal 

to perfect the title and execute a deed to the purchaser, upon 

payment of the purchase money and unpaid costs.

Amended: May 24, 1949, c. 139, § 101, 63 Stat. 104.

28 U.S.C. § 2004. Sale of personalty generally.

Any personalty sold under any order or decree of any court 

of the United States shall be sold in accordance with section 

2001 of this title, unless the court orders otherwise.

This section shall not apply to sales and proceedings under 

Title 11 or by receivers or conservators of banks appointed 

by the Comptroller of the Currency.

Enacted: June 25, 1948, c. 646, 62 Stat. 959.

28 U.S.C. § 2005. Appraisal of goods taken on 

execution.

Whenever State law requires that goods taken on execution 

be appraised before sale, goods taken under execution issued 

from a court of the United States shall be appraised in like 

manner.

The United States marshal shall summon the appraisers 

in the same manner as the sheriff is required to summon 

appraisers under State law.

If the appraisers fail to attend and perform their required 

duties, the marshal may sell the goods without an appraisal. 

Appraisers attending and performing their duties, shall 

receive the fees allowed for appraisals under State law.

Enacted: June 25, 1948, c. 646, 62 Stat. 959.

28 U.S.C. § 2006. Execution against revenue 

officer.

Execution shall not issue against a collector or other revenue 

officer on a final judgment in any proceeding against him 

for any of his acts, or for the recovery of any money exacted 

by or paid to him and subsequently paid into the Treasury, 

in performing his official duties, if the court certifies that:

(1) probable cause existed; or

(2) the officer acted under the directions of the Secretary 

of the Treasury, the Director, Bureau of Alcohol, Tobacco, 

Firearms, and Explosives, Department of Justice, or other 

proper Government officer.

When such certificate has been issued, the amount of the 

judgment shall be paid out of the proper appropriation by 

the Treasury.

Amended: Homeland Security Act of 2002, Pub. L. 107-296, 

Title XI, § 1121(I), Nov. 25, 2002, 116 Stat. 2135, 2277.

28 U.S.C. § 2007. Imprisonment for debt.

(a) A person shall not be imprisoned for debt on a writ of 

execution or other process issued from a court of the United 

States in any State wherein imprisonment for debt has been 

abolished. All modifications, conditions, and restrictions 

upon such imprisonment provided by State law shall apply 

to any writ of execution or process issued from a court of the 

United States in accordance with the procedure applicable 

in such State.

(b) Any person arrested or imprisoned in any State on a 

writ of execution or other process issued from any court 

of the United States in a civil action shall have the same 

jail privileges and be governed by the same regulations as 

persons confined in like cases on process issued from the 

courts of such State. The same requirements governing 

discharge as are applicable in such State shall apply. Any 

proceedings for discharge shall be conducted before a United 

States magistrate judge for the judicial district wherein the 

defendant is held.

Amended: Judicial Improvement Acts of 1990, Pub. L. 101-650, 

Title III, § 321, Dec. 1, 1990, 104 Stat. 5089, 5117.
116 • Asset Forfeiture Statutes

28 U.S.C. § 2461 

28 U.S.C. § 2461. Mode of recovery.

(a) Whenever a civil fine, penalty or pecuniary forfeiture is 

prescribed for the violation of an Act of Congress without 

specifying the mode of recovery or enforcement thereof, it 

may be recovered in a civil action. 

(b) Unless otherwise provided by Act of Congress, whenever 

a forfeiture of property is prescribed as a penalty for violation 

of an Act of Congress and the seizure takes place on the high 

seas or on navigable waters within the admiralty and maritime 

jurisdiction of the United States, such forfeiture may be 

enforced by libel in admiralty but in cases of seizures on land 

the forfeiture may be enforced by a proceeding by libel which 

shall conform as near as may be to proceedings in admiralty. 

(c) If a person is charged in a criminal case with a violation of 

an Act of Congress for which the civil or criminal forfeiture 

of property is authorized, the Government may include notice 

of the forfeiture in the indictment or information pursuant to 

the Federal Rules of Criminal Procedure. If the defendant is 

convicted of the offense giving rise to the forfeiture, the court 

shall order the forfeiture of the property as part of the sentence 

in the criminal case pursuant to the Federal Rules of Criminal 

Procedure and section 3554 of title 18, United States Code. 

The procedures in section 413 of the Controlled Substances 

Act (21 U.S.C. 853) apply to all stages of a criminal forfeiture 

proceeding, except that subsection (d) of such section applies 

only in cases in which the defendant is convicted of a violation 

of such Act.

Amended: USA PATRIOT Improvement and Reauthorization Act 

of 2005, 109-177, Title IV, § 410, Mar. 9, 2006, 120 Stat. 192, 246.

28 U.S.C. § 2462. Time for commencing 

proceedings.

Except as otherwise provided by Act of Congress, an action, 

suit or proceeding for the enforcement of any civil fine, 

penalty, or forfeiture, pecuniary or otherwise, shall not be 

entertained unless commenced within five years from the date 

when the claim first accrued if, within the same period, the 

offender or the property is found within the United States in 

order that proper service may be made thereon.

Enacted: June 25, 1948, c. 646, 62 Stat. 974.

28 U.S.C. § 2465. Return of property to 

claimant; liability for wrongful seizure; 

attorney fees, costs, and interests.

(a) Upon the entry of a judgment for the claimant in any 

proceeding to condemn or forfeit property seized or arrested 

under any provision of Federal law—

(1) such property shall be returned forthwith to the claimant 

or his agent; and

(2) if it appears that there was reasonable cause for the 

seizure or arrest, the court shall cause a proper certificate 

thereof to be entered and, in such case, neither the person who 

made the seizure or arrest nor the prosecutor shall be liable 

to suit or judgment on account of such suit or prosecution, 

nor shall the claimant be entitled to costs, except as provided 

in subsection (b).

(b)(1) Except as provided in paragraph (2), in any civil 

proceeding to forfeit property under any provision of Federal 

law in which the claimant substantially prevails, the United 

States shall be liable for—

(A) reasonable attorney fees and other litigation costs 

reasonably incurred by the claimant;

(B) post-judgment interest, as set forth in section 1961 

of this title; and

(C) in cases involving currency, other negotiable 

instruments, or the proceeds of an interlocutory sale—

(i) interest actually paid to the United States from 

the date of seizure or arrest of the property that resulted 

from the investment of the property in an interestbearing account or instrument; and

(ii) an imputed amount of interest that such currency, 

instruments, or proceeds would have earned at the rate 

applicable to the 30-day Treasury Bill, for any period 

during which no interest was paid (not including any 

period when the property reasonably was in use as 

evidence in an official proceeding or in conducting 

scientific tests for the purpose of collecting evidence), 

commencing 15 days after the property was seized by 

a Federal law enforcement agency, or was turned over 

to a Federal law enforcement agency by a State or local 

law enforcement agency.

(2)(A) The United States shall not be required to disgorge 

the value of any intangible benefits nor make any other 

payments to the claimant not specifically authorized by this 

subsection.

(B) The provisions of paragraph (1) shall not apply if 

the claimant is convicted of a crime for which the interest 

of the claimant in the property was subject to forfeiture 

under a Federal criminal forfeiture law.
Asset Forfeiture Statutes • 117

28 U.S.C. § 2467

(C) If there are multiple claims to the same property, 

the United States shall not be liable for costs and attorneys 

fees associated with any such claim if the United States—

(i) promptly recognizes such claim;

(ii) promptly returns the interest of the claimant 

in the property to the claimant, if the property can be 

divided without difficulty and there are no competing 

claims to that portion of the property;

(iii) does not cause the claimant to incur additional, 

reasonable costs or fees; and

(iv) prevails in obtaining forfeiture with respect to 

one or more of the other claims.

(D) If the court enters judgment in part for the claimant 

and in part for the Government, the court shall reduce the 

award of costs and attorney fees accordingly.

Amended: Civil Asset Forfeiture Reform Act (CAFRA) of 2000, 

Pub. L. 106-185, § 4(a), Apr. 25, 2000, 114 Stat. 202, 211.

28 U.S.C. § 2466. Fugitive disentitlement.

(a) A judicial officer may disallow a person from using the 

resources of the courts of the United States in furtherance of 

a claim in any related civil forfeiture action or a claim in third 

party proceedings in any related criminal forfeiture action 

upon a finding that such person— 

(1) after notice or knowledge of the fact that a warrant or 

process has been issued for his apprehension, in order to avoid 

criminal prosecution—

(A) purposely leaves the jurisdiction of the United 

States;

(B) declines to enter or reenter the United States to 

submit to its jurisdiction; or

(C) otherwise evades the jurisdiction of the court in 

which a criminal case is pending against the person; and

(2) is not confined or held in custody in any other 

jurisdiction for commission of criminal conduct in that 

jurisdiction. 

(b) Subsection (a) may be applied to a claim filed by a 

corporation if any majority shareholder, or individual filing 

the claim on behalf of the corporation is a person to whom 

subsection (a) applies.

Amended: USA PATRIOT Improvement and Reauthorization 

Act of 2005, Pub. L. 109-177, Title IV, § 406(a)(1), Mar. 9, 

2006, 120 Stat. 192, 244.

28 U.S.C. § 2467. Enforcement of foreign 

judgment.

(a) Definitions.—In this section—

(1) the term “foreign nation” means a country that 

has become a party to the United Nations Convention 

Against Illicit Traffic in Narcotic Drugs and Psychotropic 

Substances (referred to in this section as the “United Nations 

Convention”) or a foreign jurisdiction with which the United 

States has a treaty or other formal international agreement in 

effect providing for mutual forfeiture assistance; and

(2) the term “forfeiture or confiscation judgment” means a 

final order of a foreign nation compelling a person or entity—

(A) to pay a sum of money representing the proceeds 

of an offense described in Article 3, Paragraph 1, of the 

United Nations Convention, any violation of foreign law 

that would constitute a violation or an offense for which 

property could be forfeited under Federal law if the offense 

were committed in the United States, or any foreign offense 

described in section 1956(c)(7)(B) of title 18, or property 

the value of which corresponds to such proceeds; or

(B) to forfeit property involved in or traceable to the 

commission of such offense.

(b) Review by attorney general.—

(1) In general.—A foreign nation seeking to have a 

forfeiture or confiscation judgment registered and enforced 

by a district court of the United States under this section shall 

first submit a request to the Attorney General or the designee 

of the Attorney General, which request shall include—

(A) a summary of the facts of the case and a description 

of the proceedings that resulted in the forfeiture or 

confiscation judgment;

(B) certified copy of the forfeiture or confiscation 

judgment;

(C) an affidavit or sworn declaration establishing that 

the foreign nation took steps, in accordance with the 

principles of due process, to give notice of the proceedings 

to all persons with an interest in the property in sufficient 

time to enable such persons to defend against the charges 

and that the judgment rendered is in force and is not subject 

to appeal; and

(D) such additional information and evidence as may 

be required by the Attorney General or the designee of the 

Attorney General.

(2) Certification of request.—The Attorney General or the 

designee of the Attorney General shall determine whether, in 

the interest of justice, to certify the request, and such decision 

shall be final and not subject to either judicial review or 
118 • Asset Forfeiture Statutes

28 U.S.C. § 2467 

review under subchapter II of chapter 5, or chapter 7, of title 

5 (commonly known as the “Administrative Procedure Act”).

(c) Jurisdiction and venue.—

(1) In general.—If the Attorney General or the designee 

of the Attorney General certifies a request under subsection 

(b), the United States may file an application on behalf of a 

foreign nation in district court of the United States seeking to 

enforce the foreign forfeiture or confiscation judgment as if 

the judgment had been entered by a court in the United States.

(2) Proceedings.—In a proceeding filed under paragraph 

(1)—

(A) the United States shall be the applicant and the 

defendant or another person or entity affected by the 

forfeiture or confiscation judgment shall be the respondent;

(B) venue shall lie in the district court for the District 

of Columbia or in any other district in which the defendant 

or the property that may be the basis for satisfaction of a 

judgment under this section may be found; and

(C) the district court shall have personal jurisdiction 

over a defendant residing outside of the United States if 

the defendant is served with process in accordance with 

rule 4 of the Federal Rules of Civil Procedure.

(d) Entry and enforcement of judgment.—

(1) In general.—The district court shall enter such orders 

as may be necessary to enforce the judgment on behalf of the 

foreign nation unless the court finds that—

(A) the judgment was rendered under a system that 

provides tribunals or procedures incompatible with the 

requirements of due process of law;

(B) the foreign court lacked personal jurisdiction over 

the defendant;

(C) the foreign court lacked jurisdiction over the subject 

matter;

(D) the foreign nation did not take steps, in accordance 

with the principles of due process, to give notice of the 

proceedings to a person with an interest in the property 

of the proceedings in sufficient time to enable him or her 

to defend; or

(E) the judgment was obtained by fraud.

(2) Process.—Process to enforce a judgment under this 

section shall be in accordance with rule 69(a) of the Federal 

Rules of Civil Procedure.

(3) Preservation of property.—

(A) Restraining orders.—

(i) In general.—To preserve the availability of 

property subject to civil or criminal forfeiture under 

foreign law, the Government may apply for, and the court 

may issue, a restraining order at any time before or after 

the initiation of forfeiture proceedings by a foreign nation.

(ii) Procedures.—

(I) In general.—A restraining order under this 

subparagraph shall be issued in a manner consistent 

with subparagraphs (A), (C), and (E) of paragraph 

(1) and the procedural due process protections for 

a re-straining order under section 983(j) of title 18.

(II) Application.—For purposes of applying such 

section 983(j)—

(aa) references in such section 983(j) to 

civil forfeiture or the filing of a complaint 

shall be deemed to refer to the applicable 

foreign criminal or forfeiture proceedings; 

and 3608

(bb) the reference in paragraph (1)(B)(i) 

of such section 983(j) to the United States 

shall be deemed to refer to the foreign nation.

(B) Evidence.—The court, in issuing a restraining order 

under subparagraph (A)—

(i) may rely on information set forth in an affidavit 

describing the nature of the proceeding or investigation 

underway in the foreign country, and setting forth 

a reasonable basis to believe that the property to be 

restrained will be named in a judgment of forfeiture at 

the conclusion of such proceeding; or

(ii) may register and enforce a restraining order that 

has been issued by a court of competent jurisdiction 

in the foreign country and certified by the Attorney 

General pursuant to subsection (b)(2).

(C) Limit on grounds for objection.—No person may 

object to a restraining order under subparagraph (A) on any 

ground that is the subject of parallel litigation involving the 

same property that is pending in a foreign court.

(e) Finality of foreign findings.—In entering orders to enforce 

the judgment, the court shall be bound by the findings of fact 

to the extent that they are stated in the foreign forfeiture or 

confiscation judgment.

(f) Currency conversion.—The rate of exchange in effect at 

the time the suit to enforce is filed by the foreign nation shall 

be used in calculating the amount stated in any forfeiture or 

confiscation judgment requiring the payment of a sum of 

money submitted for registration.

Amended: Preserving Foreign Criminal Assets for Forfeiture Act 

of 2010, Pub. L. 111-342, § 2, Dec. 22, 2010, 124 Stat. 3607.
Asset Forfeiture Statutes • 119

28 U.S.C. § 3304(b)

28 U.S.C. § 2680. Exceptions. (Federal Tort 

Claims Act)

The provisions of this chapter and section 1346(b) of this title 

shall not apply to—

(a) Any claim based upon an act or omission of an employee 

of the Government, exercising due care, in the execution of a 

statute or regulation, whether or not such statute or regulation 

be valid, or based upon the exercise or performance or the 

failure to exercise or perform a discretionary function or 

duty on the part of a federal agency or an employee of the 

Government, whether or not the discretion involved be abused.

(b) Any claim arising out of the loss, miscarriage, or negligent 

transmission of letters or postal matter.

(c) Any claim arising in respect of the assessment or collection 

of any tax or customs duty, or the detention of any goods, 

merchandise, or other property by any officer of customs or 

excise or any other law enforcement officer, except that the 

provisions of this chapter and section 1346(b) of this title apply 

to any claim based on injury or loss of goods, merchandise, 

or other property, while in the possession of any officer of 

customs or excise or any other law enforcement officer, if—

(1) the property was seized for the purpose of forfeiture 

under any provision of Federal law providing for the forfeiture 

of property other than as a sentence imposed upon conviction 

of a criminal offense;

(2) the interest of the claimant was not forfeited;

(3) the interest of the claimant was not remitted or 

mitigated (if the property was subject to forfeiture); and

(4) the claimant was not convicted of a crime for which 

the interest of the claimant in the property was subject to 

forfeiture under a Federal criminal forfeiture law.

(d) Any claim for which a remedy is provided by chapter 

309 or 311 of title 46, relating to claims or suits in admiralty 

against the United States.

(e) Any claim arising out of an act or omission of any 

employee of the Government in administering the provisions 

of sections 1-31 of Title 50, Appendix.

(f) Any claim for damages caused by the imposition or 

establishment of a quarantine by the United States.

[(g) Repealed. Sept. 26, 1950, c. 1049, § 13(5), 64 Stat. 1043.]

(h) Any claim arising out of assault, battery, false imprisonment, 

false arrest, malicious prosecution, abuse of process, libel, 

slander, misrepresentation, deceit, or interference with contract 

rights: Provided, That, with regard to acts or omissions of 

investigative or law enforcement officers of the United States 

Government, the provisions of this chapter and section 1346(b) 

of this title shall apply to any claim arising, on or after the date 

of the enactment of this proviso, out of assault, battery, false 

imprisonment, false arrest, abuse of process, or malicious 

prosecution. For the purpose of this subsection, “investigative 

or law enforcement officer” means any officer of the United 

States who is empowered by law to execute searches, to seize 

evidence, or to make arrests for violations of Federal law.

(i) Any claim for damages caused by the fiscal operations 

of the Treasury or by the regulation of the monetary system.

(j) Any claim arising out of the combatant activities of the 

military or naval forces, or the Coast Guard, during time of war.

(k) Any claim arising in a foreign country.

(l) Any claim arising from the activities of the Tennessee 

Valley Authority.

(m) Any claim arising from the activities of the Panama Canal 

Company.

(n) Any claim arising from the activities of a Federal land bank, 

a Federal intermediate credit bank, or a bank for cooperatives.

Amended: Codification of Title 46, Oct. 6, 2006, Pub. L. 109-

304, § 17(f)(4), 120 Stat. 1708.

28 U.S.C. § 3304(b). Transfer fraudulent as to a 

debt to the United States.

(b) Transfers without regard to date of judgment.—

(1) Except as provided in section 3307, a transfer made 

or obligation incurred by a debtor is fraudulent as to a debt 

to the United States, whether such debt arises before or after 

the transfer is made or the obligation is incurred, if the debtor 

makes the transfer or incurs the obligation—

(A) with actual intent to hinder, delay, or defraud a 

creditor; or

(B) without receiving a reasonably equivalent value 

in exchange for the transfer or obligation if the debtor—

(i) was engaged or was about to engage in a business 

or a transaction for which the remaining assets of the 

debtor were unreasonably small in relation to the 

business or transaction; or

(ii) intended to incur, or believed or reasonably 

should have believed that he would incur, debts beyond 

his ability to pay as they became due.

(2) In determining actual intent under paragraph (1), 

consideration may be given, among other factors, to whether—

(A) the transfer or obligation was to an insider;

(B) the debtor retained possession or control of the 

property transferred after the transfer;
120 • Asset Forfeiture Statutes

28 U.S.C. § 3306(a) 

(C) the transfer or obligation was disclosed or concealed;

(D) before the transfer was made or obligation was 

incurred, the debtor had been sued or threatened with suit;

(E) the transfer was of substantially all the debtor’s assets;

(F) the debtor absconded;

(G) the debtor removed or concealed assets;

(H) the value of the consideration received by the 

debtor was reasonably equivalent to the value of the asset 

transferred or the amount of the obligation incurred;

(I) the debtor was insolvent or became insolvent shortly 

after the transfer was made or the obligation was incurred;

(J) the transfer occurred shortly before or shortly after 

a substantial debt was incurred; and

(K) the debtor transferred the essential assets of the 

business to a lienor who transferred the assets to an insider 

of the debtor.

Enacted: Crime Control Act of 1990, Pub. L. 101-647, 

Title XXXVI, § 3611, Nov. 29, 1990, 104 Stat. 4789, 4961.

28 U.S.C. § 3306(a). Remedies of the United States.

(a) In general.—In an action or proceeding under this 

subchapter for relief against a transfer or obligation, the United 

States, subject to section 3307 and to applicable principles 

of equity and in accordance with the Federal Rules of Civil 

Procedure, may obtain—

(1) avoidance of the transfer or obligation to the extent 

necessary to satisfy the debt to the United States;

(2) a remedy under this chapter against the asset transferred 

or other property of the transferee; or

(3) any other relief the circumstances may require.

Enacted: Crime Control Act of 1990, Pub. L. 101-647, 

Title XXXVI, § 3611, Nov. 29, 1990, 104 Stat. 4789, 4963.
Asset Forfeiture Statutes • 121

31 U.S.C. § 5318(k)

TITLE 31

31 U.S.C. § 5317. Search and forfeiture of 

monetary instruments.

(a) The Secretary of the Treasury may apply to a court 

of competent jurisdiction for a search warrant when the 

Secretary reasonably believes a monetary instrument is 

being transported and a report on the instrument under 

section 5316 of this title has not been filed or contains 

a material omission or misstatement. The Secretary 

shall include a statement of information in support of 

the warrant. On a showing of probable cause, the court 

may issue a search warrant for a designated person or 

a designated or described place or physical object. This 

subsection does not affect the authority of the Secretary 

under another law.

(b) Searches at border.—For purposes of ensuring 

compliance with the requirements of section 5316, a 

customs officer may stop and search, at the border and 

without a search warrant, any vehicle, vessel, aircraft, or 

other conveyance, any envelope or other container, and 

any person entering or departing from the United States.

(c) Forfeiture.—

(1) Criminal forfeiture.—

(A) In general.—The court in imposing sentence 

for any violation of section 5313, 5316, or 5324 of 

this title, or any conspiracy to commit such violation, 

shall order the defendant to forfeit all property, real 

or personal, involved in the offense and any property 

traceable thereto.

(B) Procedure.—Forfeitures under this paragraph 

shall be governed by the procedures established in 

section 413 of the Controlled Substances Act.

(2) Civil forfeiture.—Any property involved in a 

violation of section 5313, 5316, or 5324 of this title, or 

any conspiracy to commit any such violation, and any 

property traceable to any such violation or conspiracy, may 

be seized and forfeited to the United States in accordance 

with the procedures governing civil forfeitures in money 

laundering cases pursuant to section 981(a)(1)(A) of title 

18, United States Code.

Amended: Uniting and Strengthening America by Providing 

Appropriate Tools Required to Intercept and Obstruct 

Terrorism (USA PATRIOT) Act of 2001, Pub. L. 107-56, Title 

III, §§ 365(b)(2)(B), 372(a), Oct. 26, 2001, 115 Stat. 272, 335, 

338.

31 U.S.C. § 5318(k). Compliance, exemptions, 

and summons authority. (Bank records related 

to anti-money laundering programs)

(k) Bank records related to anti-money laundering programs.—

(1) Definitions.—For purposes of this subsection, the 

following definitions shall apply:

(A) Appropriate Federal banking agency.—The term 

“appropriate Federal banking agency” has the same 

meaning as in section 3 of the Federal Deposit Insurance 

Act (12 U.S.C. 1813).

(B) Incorporated term.—The term “correspondent 

account” has the same meaning as in section 5318A(e)

(1)(B).

(2) 120-hour rule.—Not later than 120 hours after receiving 

a request by an appropriate Federal banking agency for 

information related to anti-money laundering compliance by a 

covered financial institution or a customer of such institution, 

a covered financial institution shall provide to the appropriate 

Federal banking agency, or make available at a location 

specified by the representative of the appropriate Federal 

banking agency, information and account documentation for 

any account opened, maintained, administered or managed in 

the United States by the covered financial institution.

(3) Foreign bank records.—

(A) Summons or subpoena of records.—

(i) In general.—The Secretary of the Treasury or the 

Attorney General may issue a summons or subpoena 

to any foreign bank that maintains a correspondent 

account in the United States and request records related 

to such correspondent account, including records 

maintained outside of the United States relating to the 

deposit of funds into the foreign bank.

(ii) Service of summons or subpoena.—A summons 

or subpoena referred to in clause (i) may be served on 

the foreign bank in the United States if the foreign bank 

has a representative in the United States, or in a foreign 

country pursuant to any mutual legal assistance treaty, 

multilateral agreement, or other request for international 

law enforcement assistance.

(B) Acceptance of service.—

(i) Maintaining records in the United States.—

Any covered financial institution which maintains 

a correspondent account in the United States for a 

foreign bank shall maintain records in the United States 

identifying the owners of such foreign bank and the 

name and address of a person who resides in the United 

States and is authorized to accept service of legal process 

for records regarding the correspondent account.
122 • Asset Forfeiture Statutes

31 U.S.C. § 5324 

(ii) Law enforcement request.—Upon receipt of 

a written request from a Federal law enforcement 

officer for information required to be maintained under 

this paragraph, the covered financial institution shall 

provide the information to the requesting officer not 

later than 7 days after receipt of the request.

(C) Termination of correspondent relationship.—

(i) Termination upon receipt of notice.—A covered 

financial institution shall terminate any correspondent 

relationship with a foreign bank not later than 10 

business days after receipt of written notice from the 

Secretary or the Attorney General (in each case, after 

consultation with the other) that the foreign bank has 

failed—

(I) to comply with a summons or subpoena issued 

under subparagraph (A); or

(II) to initiate proceedings in a United States court 

contesting such summons or subpoena.

(ii) Limitation on liability.—A covered financial 

institution shall not be liable to any person in any 

court or arbitration proceeding for terminating a 

correspondent relationship in accordance with this 

subsection.

(iii) Failure to terminate relationship.—Failure to 

terminate a correspondent relationship in accordance 

with this subsection shall render the covered financial 

institution liable for a civil penalty of up to $10,000 

per day until the correspondent relationship is so 

terminated.

Amended: Consolidated Appropriations Act 2012, Pub. L. 112-

74, Div. C, Title I, § 118, Dec. 23, 2011, 125 Stat. 891.

31 U.S.C. § 5324. Structuring transactions 

to evade reporting requirement prohibited. 

(Involving financial institutions)

(a) Domestic coin and currency transactions involving 

financial institutions.—No person shall, for the purpose of 

evading the reporting requirements of section 5313(a) or 

5325 or any regulation prescribed under any such section, 

the reporting or recordkeeping requirements imposed by 

any order issued under section 5326, or the recordkeeping 

requirements imposed by any regulation prescribed under 

section 21 of the Federal Deposit Insurance Act or section 

123 of Public Law 91-508—

(1) cause or attempt to cause a domestic financial 

institution to fail to file a report required under section 

5313(a) or 5325 or any regulation prescribed under any such 

section, to file a report or to maintain a record required by 

an order issued under section 5326, or to maintain a record 

required pursuant to any regulation prescribed under section 

21 of the Federal Deposit Insurance Act or section 123 of 

Public Law 91-508;

(2) cause or attempt to cause a domestic financial institution 

to file a report required under section 5313(a) or 5325 or any 

regulation prescribed under any such section, to file a report 

or to maintain a record required by any order issued under 

section 5326, or to maintain a record required pursuant to 

any regulation prescribed under section 5326, or to maintain 

a record required pursuant to any regulation prescribed under 

section 21 of the Federal Deposit Insurance Act or section 123 

of Public Law 91-508, that contains a material omission or 

misstatement of fact; or

(3) structure or assist in structuring, or attempt to structure 

or assist in structuring, any transaction with one or more 

domestic financial institutions.

(b) Domestic coin and currency transactions involving 

nonfinancial trades or businesses.—No person shall, for the 

purpose of evading the report requirements of section 5331 

or any regulation prescribed under such section—

(1) cause or attempt to cause a nonfinancial trade or 

business to fail to file a report required under section 5331 or 

any regulation prescribed under such section;

(2) cause or attempt to cause a nonfinancial trade or 

business to file a report required under section 5331 or any 

regulation prescribed under such section that contains a 

material omission or misstatement of fact; or

(3) structure or assist in structuring, or attempt to structure 

or assist in structuring, any transaction with 1 or more 

nonfinancial trades or businesses.

(c) International monetary instrument transactions.—No 

person shall, for the purpose of evading the reporting 

requirements of section 5316—

(1) fail to file a report required by section 5316, or cause 

or attempt to cause a person to fail to file such a report;

(2) file or cause or attempt to cause a person to file a report 

required under section 5316 that contains a material omission 

or misstatement of fact; or

(3) structure or assist in structuring, or attempt to structure 

or assist in structuring, any importation or exportation of 

monetary instruments.

(d) Criminal penalty.—

(1) In general.—Whoever violates this section shall 

be fined in accordance with title 18, United States Code, 

imprisoned for not more than 5 years, or both.
Asset Forfeiture Statutes • 123

31 U.S.C. § 5332

(2) Enhanced penalty for aggravated cases.—Whoever 

violates this section while violating another law of the United 

States or as part of a pattern of any illegal activity involving 

more than $100,000 in a 12-month period shall be fined twice 

the amount provided in subsection (b)(3) or (c)(3) (as the 

case may be) of section 3571 of title 18, United States Code, 

imprisoned for not more than 10 years, or both.

Amended: International Money Laundering Abatement and 

Financial Antiterrorism Technical Corrections Act of 2004, 

Pub. L. 108-458, Title IV, Subtitle C, § 6203, Dec. 17, 2004, 

118 Stat. 3638, 3747.

31 U.S.C. § 5331. Reports relating to coins 

and currency received in nonfinancial trade or 

business.

(a) Coin and currency receipts of more than $10,000.—Any 

person—

(1)(A) who is engaged in a trade or business, and

(B) who, in the course of such trade or business, 

receives more than $10,000 in coins or currency in 1 

transaction (or 2 or more related transactions), or

(2) who is required to file a report under section 6050I(g) 

of the Internal Revenue Code of 1986,

shall file a report described in subsection (b) with respect 

to such transaction (or related transactions) with the Financial 

Crimes Enforcement Network at such time and in such manner 

as the Secretary may, by regulation, prescribe.

(b) Form and manner of reports.—A report is described in 

this subsection if such report—

(1) is in such form as the Secretary may prescribe;

(2) contains—

(A) the name and address, and such other identification 

information as the Secretary may require, of the person 

from whom the coins or currency was received;

(B) the amount of coins or currency received;

(C) the date and nature of the transaction; and

(D) such other information, including the identification 

of the person filing the report, as the Secretary may 

prescribe.

(c) Exceptions.—

(1) Amounts received by financial institutions.—

Subsection (a) shall not apply to amounts received in a 

transaction reported under section 5313 and regulations 

prescribed under such section.

(2) Transactions occurring outside the United States.—

Except to the extent provided in regulations prescribed by the 

Secretary, subsection (a) shall not apply to any transaction if 

the entire transaction occurs outside the United States.

(d) Currency includes foreign currency and certain monetary 

instruments.—

(1) In general.—For purposes of this section, the term 

“currency” includes—

(A) foreign currency; and

(B) to the extent provided in regulations prescribed by 

the Secretary, any monetary instrument (whether or not in 

bearer form) with a face amount of not more than $10,000.

(2) Scope of application.—Paragraph (1)(B) shall not apply 

to any check drawn on the account of the writer in a financial 

institution referred to in subparagraph (A), (B), (C), (D), (E), 

(F), (G), (J), (K), (R), or (S) of section 5312(a)(2).

Amended: Consolidated Appropriations Act, 2012, Pub. L. 112-

74, Div. C, Title I, § 120, Dec. 23, 2011, 125 Stat. 891.

31 U.S.C. § 5332. Bulk cash smuggling into or 

out of the United States.

(a) Criminal offense.—

(1) In general.—Whoever, with the intent to evade 

a currency reporting requirement under section 5316, 

knowingly conceals more than $10,000 in currency or other 

monetary instruments on the person of such individual or in 

any conveyance, article of luggage, merchandise, or other 

container, and transports or transfers or attempts to transport 

or transfer such currency or monetary instruments from a place 

within the United States to a place outside of the United States, 

or from a place outside the United States to a place within the 

United States, shall be guilty of a currency smuggling offense 

and subject to punishment pursuant to subsection (b).

(2) Concealment on person.—For purposes of this section, 

the concealment of currency on the person of any individual 

includes concealment in any article of clothing worn by the 

individual or in any luggage, backpack, or other container 

worn or carried by such individual.

(b) Penalty.—

(1) Term of imprisonment.—A person convicted of 

a currency smuggling offense under subsection (a), or a 

conspiracy to commit such offense, shall be imprisoned for 

not more than 5 years.

(2) Forfeiture.—In addition, the court, in imposing sentence 

under paragraph (1), shall order that the defendant forfeit to the 
124 • Asset Forfeiture Statutes

31 U.S.C. § 5332 

United States, any property, real or personal, involved in the 

offense, and any property traceable to such property.

(3) Procedure.—The seizure, restraint, and forfeiture of 

property under this section shall be governed by section 413 

of the Controlled Substances Act.

(4) Personal money judgment.—If the property subject 

to forfeiture under paragraph (2) is unavailable, and the 

defendant has insufficient substitute property that may 

be forfeited pursuant to section 413(p) of the Controlled 

Substances Act, the court shall enter a personal money 

judgment against the defendant for the amount that would 

be subject to forfeiture.

(c) Civil forfeiture.—

(1) In general.—Any property involved in a violation of 

subsection (a), or a conspiracy to commit such violation, and 

any property traceable to such violation or conspiracy, may 

be seized and, forfeited to the United States.

(2) Procedure.—The seizure and forfeiture shall be 

governed by the procedures governing civil forfeitures in 

money laundering cases pursuant to section 981(a)(1)(A) of 

title 18, United States Code.

(3) Treatment of certain property as involved in the 

offense.—For purposes of this subsection and subsection (b), 

any currency or other monetary instrument that is concealed 

or intended to be concealed in violation of subsection (a) or 

a conspiracy to commit such violation, any article, container, 

or conveyance used, or intended to be used, to conceal or 

transport the currency or other monetary instrument, and any 

other property used, or intended to be used, to facilitate the 

offense, shall be considered property involved in the offense.

Amended: International Money Laundering Abatement and 

Financial Antiterrorism Technical Corrections Act of 2004, 

Pub. L. 108-458, Title IV, Subtitle C, § 6203, Dec. 17, 2004, 

118 Stat. 3638, 3747.

31 U.S.C. § 5332. Note.

[The following “findings” and “purposes” are part of section 

371 of Pub. L. 107-56, but are not codified to any section of the 

United States Code.]

(a) Findings.—The Congress finds the following:

(1) Effective enforcement of the currency reporting 

requirements of subchapter II of chapter 53 of title 31, 

United States Code [commonly referred to as the Bank 

Secrecy Act], and the regulations prescribed under such 

subchapter, has forced drug dealers and other criminals 

engaged in cash-based businesses to avoid using 

traditional financial institutions.

(2) In their effort to avoid using traditional financial 

institutions, drug dealers and other criminals are forced 

to move large quantities of currency in bulk form to and 

through the airports, border crossings, and other ports 

of entry where the currency can be smuggled out of the 

United States and placed in a foreign financial institution 

or sold on the black market.

(3) The transportation and smuggling of cash in bulk 

form may now be the most common form of money 

laundering, and the movement of large sums of cash is 

one of the most reliable warning signs of drug trafficking, 

terrorism, money laundering, racketeering, tax evasion 

and similar crimes.

(4) The intentional transportation into or out of the 

United States of large amounts of currency or monetary 

instruments, in a manner designed to circumvent 

the mandatory reporting provisions of subchapter 

II of chapter 53 of title 31, United States Code, is 

the equivalent of, and creates the same harm as, the 

smuggling of goods.

(5) The arrest and prosecution of bulk cash smugglers 

are important parts of law enforcement’s effort to stop 

the laundering of criminal proceeds, but the couriers 

who attempt to smuggle the cash out of the United States 

are typically low-level employees of large criminal 

organizations, and thus are easily replaced. Accordingly, 

only the confiscation of the smuggled bulk cash can 

effectively break the cycle of criminal activity of which 

the laundering of the bulk cash is a critical part.

(6) The current penalties for violations of the currency 

reporting requirements are insufficient to provide a 

deterrent to the laundering of criminal proceeds. In 

particular, in cases where the only criminal violation 

under current law is a reporting offense, the law does 

not adequately provide for the confiscation of smuggled 

currency. In contrast, if the smuggling of bulk cash were 

itself an offense, the cash could be confiscated as the 

corpus delicti of the smuggling offense.

(b) Purposes- The purposes of this section are—

(1) to make the act of smuggling bulk cash itself a 

criminal offense;

(2) to authorize forfeiture of any cash or instruments 

of the smuggling offense;

(3) to emphasize the seriousness of the act of bulk 

cash smuggling.
Asset Forfeiture Statutes • 125

31 U.S.C. § 9703

31 U.S.C. § 9703. Department of the Treasury 

Forfeiture Fund.

(a) In general.—There is established in the Treasury of the 

United States a fund to be known as the “Department of the 

Treasury Forfeiture Fund” (referred to in this section as the 

“Fund”). The Fund shall be available to the Secretary, without 

fiscal year limitation, with respect to seizures and forfeitures 

made pursuant to any law (other than section 7301 or 7302 of 

the Internal Revenue Code of 1986) enforced or administered 

by the Department of the Treasury or the United States Coast 

Guard for the following law enforcement purposes:

(1)(A) Payment of all proper expenses of seizure (including 

investigative costs incurred by a Department of the Treasury 

law enforcement organization leading to seizure) or the 

proceedings of forfeiture and sale, including the expenses of 

detention, inventory, security, maintenance, advertisement, 

or disposal of the property, and if condemned by a court and 

a bond for such costs was not given, the costs as taxed by 

the court.

(B) Payment for—

(i) contract services;

(ii) the employment of outside contractors to operate 

and manage properties or to provide other specialized 

services necessary to dispose of such properties in an 

effort to maximize the return from such properties; and

(iii) reimbursing any Federal, State, or local agency 

for any expenditures made to perform the functions 

described in this subparagraph.

(C) Awards of compensation to informers under section 

619 of the Tariff Act of 1930 (19 U.S.C. § 1619).

(D) Satisfaction of—

(i) liens for freight, charges, and contributions in 

general average, notice of which has been filed with 

the appropriate Customs officer according to law; and

(ii) subject to the discretion of the Secretary, other 

valid liens and mortgages against property that has been 

forfeited pursuant to any law enforced or administered 

by a Department of the Treasury law enforcement 

organization. To determine the validity of any such lien 

or mortgage, the amount of payment to be made, and to 

carry out the functions described in this subparagraph, 

the Secretary may employ and compensate attorneys 

and other personnel skilled in State real estate law.

(E) Payment of amounts authorized by law with respect 

to remission and mitigation.

(F) Payment of claims of parties in interest to property 

disposed of under section 612(b) of the Tariff Act of 1930 

(19 U.S.C. § 1612(b)), in the amounts applicable to such 

claims at the time of seizure.

(G) Equitable sharing payments made to other Federal 

agencies, State and local law enforcement agencies, 

and foreign countries pursuant to section 616(c) of the 

Tariff Act of 1930 (19 U.S.C. § 1616a(c)), section 981 

of title 18, or subsection (h) of this section, and all costs 

related thereto.

(H) Payment for services of experts and consultants 

needed by a Department of the Treasury law enforcement 

organization to carry out the organization’s duties relating 

to seizure and forfeiture.

(I) payment of overtime salaries, travel, fuel, training, 

equipment, and other similar costs of State or local 

law enforcement officers that are incurred in joint law 

enforcement operations with a Department of the Treasury 

law enforcement organization;

(J) payment made pursuant to guidelines promulgated 

by the Secretary, if such payment is necessary and directly 

related to seizure and forfeiture program expenses for—

(i) the purchase or lease of automatic data processing 

systems (not less than a majority of which use will be 

related to such program);

(ii) training;

(iii) printing; and

(iv) contracting for services directly related to—

(I) the identification of forfeitable assets;

(II) the processing of and accounting for 

forfeitures; and

(III) the storage, maintenance, protection, and 

destruction of controlled substances.

(2) At the discretion of the Secretary—

(A) payment of awards for information or assistance 

leading to a civil or criminal forfeiture involving any 

Department of the Treasury law enforcement organization 

participating in the Fund;

(B) purchases of evidence or information by—

(i) a Department of the Treasury law enforcement 

organization with respect to—

(I) a violation of section 1956 or 1957 of title 18 

(relating to money laundering); or

(II) a law, the violation of which may subject 

property to forfeiture under section 981 or 982 of 

title 18;
126 • Asset Forfeiture Statutes

31 U.S.C. § 9703 

(ii) the United States Customs Service with respect 

to drug smuggling or a violation of section 542 or 545 

of title 18 (relating to fraudulent customs invoices or 

smuggling);

(iii) the United States Secret Service with respect 

to a violation of—

(I) section 1028, 1029, or 1030 or title 18;

(II) any law of the United States relating to coins, 

obligations, or securities of the United States or of a 

foreign government; or

(III) any law of the United States which the 

United States Secret Service is authorized to enforce 

relating to fraud or other criminal or unlawful 

activity in or against any federally insured financial 

institution, the Resolution Trust Corporation, or the 

Federal Deposit Insurance Corporation; and

(iv) the United States Customs Service or the 

Internal Revenue Service with respect to a violation 

of chapter 53 of this title (relating to the Bank Secrecy 

Act).

(C) payment of costs for publicizing awards available 

under section 619 of the Tariff Act of 1930 (19 U.S.C. 

§ 1619);

(D) payment for equipment for any vessel, vehicle, 

or aircraft available for official use by a Department of 

the Treasury law enforcement organization to enable the 

vessel, vehicle, or aircraft to assist in law enforcement 

functions, and for other equipment directly related to 

seizure or forfeiture, including laboratory equipment, 

protective equipment, communications equipment, and 

the operation and maintenance costs of such equipment;

(E) the payment of claims against employees of the 

Customs Service settled by the Secretary under section 

630 of the Tariff Act of 1930;

(F) payment for equipment for any vessel, vehicle, 

or aircraft available for official use by a State or local 

law enforcement agency to enable the vessel, vehicle, or 

aircraft to assist in law enforcement functions if the vessel, 

vehicle, or aircraft will be used in joint law enforcement 

operations with a Department of the Treasury law 

enforcement organization;

(G) reimbursement of private persons for expenses 

incurred by such persons in cooperating with a Department 

of the Treasury law enforcement organization in 

investigations and undercover law enforcement operations;

(H) payment for training foreign law enforcement 

personnel with respect to seizure or forfeiture activities 

of the Department of the Treasury; and 

(b) Limitations

(1) Any payment made under subparagraph (D) or (E) 

of subsection (a)(1) with respect to a seizure or a forfeiture 

of property shall not exceed the value of the property at the 

time of the seizure.

(2) Any payment made under subsection (a)(1)(G) with 

respect to a seizure or forfeiture of property shall not exceed 

the value of the property at the time of disposition.

(3) The Secretary may exempt the procurement of contract 

services under the Fund from division C (except sections 3302, 

3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 41, 

section 6101(b) to (d) of title 41, and other provisions of law as 

may be necessary to maintain the security and confidentiality 

of related criminal investigations.

(4) The Secretary shall assure that any equitable sharing 

payment made to a State or local law enforcement agency 

pursuant to subsection (a)(1)(G) and any property transferred 

to a State or local law enforcement agency pursuant to 

subsection (h)—

(A) has a value that bears a reasonable relationship to 

the degree of participation of the State or local agency in 

the law enforcement effort resulting in the forfeiture, taking 

into account the total value of all property forfeited and the 

total law enforcement effort with respect to the violation of 

law on which the forfeiture is based; and

(B) will serve to encourage further cooperation 

between the recipient State or local agency and Federal 

law enforcement agencies.

(5) Amounts transferred by the Attorney General pursuant 

to section 524(c)(1) of title 28, or by the Postmaster General 

pursuant to section 2003 of title 39, and deposited into the 

Fund pursuant to subsection (d), shall be available for Federal 

law enforcement related purposes of the Department of the 

Treasury law enforcement organizations.

(c) Funds available to United States Coast Guard

(1) The Secretary shall make available to the United States 

Coast Guard, from funds appropriated under subsection (g)(2) 

in excess of $10,000,000 for a fiscal year, an amount equal 

to the net proceeds in the Fund derived from seizures by the 

Coast Guard.

(2) Funds made available under this subsection may be 

used to—

(A) pay for equipment for any vessel, vehicle, or aircraft 

available for official use by the United States Coast Guard 

to enable the vessel, vehicle, or aircraft to assist in law 

enforcement functions;

(B) pay for equipment for any vessel, vehicle, equipment, 

or aircraft available for official use by a State or local law 
Asset Forfeiture Statutes • 127

31 U.S.C. § 9703

enforcement agency to enable the vessel, vehicle, or aircraft 

to assist in law enforcement functions if the vessel, vehicle, 

or aircraft will be used in joint law enforcement operations 

with the United States Coast Guard;

(C) pay for overtime salaries, travel, fuel, training, 

equipment, and other similar costs of State and local 

law enforcement officers that are incurred in joint law 

enforcement operations with the United States Coast Guard;

(D) pay for expenses incurred in bringing vessels into 

compliance with applicable environmental laws prior to 

disposal by sinking.

(d) Deposits and credits

(1) With respect to fiscal year 1993, there shall be deposited 

into or credited to the Fund—

(A) all currency forfeited during fiscal year 1993, and 

all proceeds from forfeitures during fiscal year 1993, under 

any law enforced or administered by the United States 

Customs Service or the United States Coast Guard;

(B) all income from investments made under subsection 

(e); and

(C) all amounts representing the equitable share of the 

United States Customs Service or the United States Coast 

Guard from the forfeiture of property under any Federal, 

State, local, or foreign law.

(2) With respect to fiscal years beginning after fiscal year 

1993, there shall be deposited into or credited to the Fund—

(A) all currency forfeited after fiscal year 1993, and 

all proceeds from forfeitures after fiscal year 1993, under 

any law (other than sections 7301 and 7302 of the Internal 

Revenue Code of 1986) enforced or administered by a 

Department of the Treasury law enforcement organization 

or the United States Coast Guard;

(B) all income from investments made under subsection 

(e); and

(C) all amounts representing the equitable share of a 

Department of the Treasury law enforcement organization 

or the United States Coast Guard from the forfeiture of 

property under any Federal, State, local, or foreign law.

(e) Investments.—Amounts in the Fund, and in any holding 

accounts associated with the Fund, which are not currently 

needed for the purposes of this section may be kept on deposit 

or invested in obligations of, or guaranteed by, the United 

States and all earnings on such investments shall be deposited 

in the Fund.

(f) Reports to Congress.—The Secretary shall transmit to the 

Congress, not later than February 1 of each year—

(1) a report on—

(A) the estimated total value of property forfeited with 

respect to which funds were not deposited in the Fund 

during the preceding fiscal year—

(i) under any law enforced or administered by the 

United States Customs Service or the United States 

Coast Guard, in the case of fiscal year 1993; and

(ii) under any law enforced or administered by 

the Department of the Treasury law enforcement 

organizations or the United States Coast Guard, in the 

case of fiscal years beginning after 1993; and

(B) the estimated total value of all such property 

transferred to any State or local law enforcement agency; and

(2) a report on—

(A) the balance of the Fund at the beginning of the 

preceding fiscal year;

(B) liens and mortgages paid and the amount of 

money shared with Federal, State, local, and foreign law 

enforcement agencies during the preceding fiscal year;

(C) the net amount realized from the operations of the 

Fund during the preceding fiscal year, the amount of seized 

cash being held as evidence, and the amount of money that 

has been carried over into the current fiscal year;

(D) any defendant’s property, not forfeited at the end 

of the preceding fiscal year, if the equity in such property 

is valued at $1,000,000 or more;

(E) the total dollar value of uncontested seizures of 

monetary instruments having a value of over $100,000 

which, or the proceeds of which, have not been deposited 

into the Fund pursuant to subsection (d) within 120 days 

after seizure, as of the end of the preceding fiscal year;

(F) the balance of the Fund at the end of the preceding 

fiscal year;

(G) the net amount, if any, of the excess unobligated 

amounts remaining in the Fund at the end of the preceding 

fiscal year and available to the Secretary for Federal law 

enforcement related purposes;

(H) a complete set of audited financial statements 

(including a balance sheet, income statement, and cash 

flow analysis) prepared in a manner consistent with the 

requirements of the Chief Financial Officers Act of 1990 

(Public Law 101-576); and

(I) an analysis of income and expenses showing the 

revenue received or lost—

(i) by property category (such as general property, 

vehicles, vessels, aircraft, cash, and real property); and
128 • Asset Forfeiture Statutes

31 U.S.C. § 9703 

(ii) by type of disposition (such as sale, remission, 

cancellation, placement into official use, sharing with 

State and local agencies, and destruction).

The Fund shall be subject to annual financial audits as 

authorized in the Chief Financial Officers Act of 1990 (Public 

Law 101-576).

(g) Appropriations

(1) There are hereby appropriated from the Fund such sums 

as may be necessary to carry out the purposes described in 

subsection (a)(1).

(2) There are authorized to be appropriated from the Fund 

to carry out the purposes set forth in subsections (a)(2) and 

(c) not to exceed—

(A) $25,000,000 for fiscal year 1993; and

(B) $50,000,000 for each fiscal year after fiscal year 

1993.

(3)(A) Subject to subparagraphs (B) and (C), at the end of 

each of fiscal years 1994, 1995, 1996, and 1997, the Secretary 

shall transfer from the Fund not more than $100,000,000 to 

the Special Forfeiture Fund established by section 6073 of 

the Anti-Drug Abuse Act of 1988.

(B) Transfers pursuant to subparagraph (A) shall be 

made only from excess unobligated amounts and only 

to the extent that, as determined by the Secretary, such 

transfers will not impair the future availability of amounts 

for the purposes described in subsection (a). Further, 

transfers under subparagraph (A) may not exceed one-half 

of the excess unobligated balance for a year. In addition, 

transfers under subparagraph (A) may be made only to 

the extent that the sum of the transfers in a fiscal year and 

one-half of the unobligated balance at the beginning of 

that fiscal year for the Special Forfeiture Fund does not 

exceed $100,000,000.

(C) The Secretary of the Treasury shall reserve an 

amount not to exceed $30,000,000 from the unobligated 

balances remaining in the Customs Forfeiture Fund on 

September 30, 1992, and such amount shall be transferred 

to the Fund on October 1, 1992, or, if later, the date that is 

15 days after the date of the enactment of this section. Such 

amount shall be available for any expenses or activities 

authorized under this section. At the end of fiscal year 

1993, 1994, 1995, and 1996, the Secretary shall reserve 

in the Fund an amount not to exceed $50,000,000 of the 

unobligated balances in the Fund, or, if the Secretary 

determines that a greater amount is necessary for asset 

specific expenses, an amount equal to not more than 

10 percent of the total obligations from the Fund in the 

preceding fiscal year. At the end of fiscal year 1997, and 

at the end of each fiscal year thereafter, the Secretary 

shall reserve any amounts that are required to be retained 

in the Fund to ensure the availability of amounts in the 

subsequent fiscal year for purposes authorized under 

subsection (a). Unobligated balances remaining pursuant 

to section 4(B) of 9703(g) shall also be carried forward.

(4)(A) After reserving any amount authorized by 

paragraph (3)(C), any unobligated balances remaining in 

the Fund on September 30, 1993, shall be deposited into the 

general fund of the Treasury of the United States.

(B) After reserving any amount authorized by 

paragraph (3)(C) and after transferring any amount 

authorized by paragraph (3)(A), any unobligated balances 

remaining in the Fund on September 30, 1994, and on 

September 30 of each fiscal year thereafter, shall be 

available to the Secretary, without fiscal year limitation, 

for transfers pursuant to subparagraph (A)(ii) and for 

obligation or expenditure in connection with the law 

enforcement activities of any Federal agency or of a 

Department of the Treasury law enforcement organization.

(C) Any obligation or expenditure in excess of $500,000 

with respect to an unobligated balance described in 

subparagraph (B) may not be made by the Secretary 

unless the Appropriations Committees of both Houses of 

Congress are notified at least 15 days in advance of such 

obligation or expenditure.

(h) Retention or transfer of property.—

(1) The Secretary may, with respect to any property 

forfeited under any law (other than section 7301 or 7302 

of the Internal Revenue Code of 1986) enforced or 

administered by the Department of the Treasury—

(A) retain any of the property for official use; or

(B) transfer any of the property to—

(i) any other Federal agency; or

(ii) any State or local law enforcement agency that 

participated directly or indirectly in the seizure or 

forfeiture of the property.

(2) The Secretary may transfer any forfeited personal 

property or the proceeds of the sale of any forfeited personal 

or real property to any foreign country which participated 

directly or indirectly in the seizure of forfeiture of the property, 

if such a transfer—

(A) is one with which the Secretary of State has agreed;

(B) is authorized in an international agreement between 

the United States and the foreign country; and

(C) is made to a country which, if applicable, has been 

certified under section 481(h) of the Foreign Assistance 

Act of 1961 (22 U.S.C. § 2291(h)).
Asset Forfeiture Statutes • 129

31 U.S.C. § 9703

(3) Nothing in this section shall affect the authority of the 

Secretary under section 981 of title 18 or section 616 of the 

Tariff Act of 1930 (19 U.S.C. § 1616a).

(i) Regulations.—The Secretary may prescribe such rules 

and regulations as may be necessary to carry out this section.

(j) Customs forfeiture fund.—Notwithstanding any other 

provision of law—

(1) during any period when forfeited currency and proceeds 

from forfeitures under any law (other than section 7301 or 

7302 of the Internal Revenue Code of 1986) enforced or 

administered by the Department of the Treasury or the United 

States Coast Guard, are required to be deposited in the Fund 

pursuant to this section—

(A) all moneys required to be deposited in the Customs 

Forfeiture Fund pursuant to section 613A of the Tariff Act 

of 1930 (19 U.S.C. § 1613b) shall instead be deposited in 

the Fund; and

(B) no deposits or withdrawals may be made to or 

from the Customs Forfeiture Fund pursuant to section 

613A of the Tariff Act of 1930 (19 U.S.C. § 1613b); and

(2) any funds in the Customs Forfeiture Fund and any 

obligations of the Customs Forfeiture Fund on the effective 

date of the Treasury Forfeiture Act of 1992, shall be transferred 

to the Fund and all administrative costs of such transfer shall 

be paid for out of the Fund.

(k) Limitation of liability.—The United States shall not be 

liable in any action relating to property transferred under 

this section or under section 616 of the Tariff Act of 1930 (19 

U.S.C. § 1616a) if such action is based on an act or omission 

occurring after the transfer.

(l) Authority to warrant title.—Following the completion of 

procedures for the forfeiture of property pursuant to any law 

enforced or administered by the Department of the Treasury, 

the Secretary is authorized, at the Secretary’s discretion, to 

warrant clear title to any subsequent purchaser or transferee 

of such forfeited property.

(m) Forfeited property.—For purposes of this section and 

notwithstanding section 524(c)(11) of title 28 or any other 

law—

(1) during fiscal year 1993, property and currency shall 

be deemed to be forfeited pursuant to a law enforced or 

administered by the United States Customs Service if it is 

forfeited pursuant to—

(A) a judicial forfeiture proceeding when the underlying 

seizure was made by an officer of the United States 

Customs Service or the property was maintained by the 

United States Customs Service; or

(B) a civil administrative forfeiture proceeding 

conducted by the United States Customs Service; and

(2) after fiscal year 1993, property and currency shall 

be deemed to be forfeited pursuant to a law enforced 

or administered by a Department of the Treasury law 

enforcement organization if it is forfeited pursuant to—

(A) a judicial forfeiture proceeding when the underlying 

seizure was made by an officer of a Department of the 

Treasury law enforcement organization or the property 

was maintained by a Department of the Treasury law 

enforcement organization; or

(B) a civil administrative forfeiture proceeding 

conducted by a Department of the Treasury law enforcement 

organization.

(n) Transfers to Attorney General and Postmaster General

(1) The Secretary shall transfer from the Fund to the 

Attorney General for deposit in the Department of Justice 

Assets Forfeiture Fund amounts appropriate to reflect the 

degree of participation of participating Federal agencies in 

the law enforcement effort resulting in the forfeiture pursuant 

to laws enforced or administered by a Department of the 

Treasury law enforcement organization. For purposes of the 

preceding sentence, a “participating Federal agency” is an 

agency that participates in the Department of Justice Assets 

Forfeiture Fund.

(2) The Secretary shall transfer from the Fund to the 

Postmaster General for deposit in the Postal Service Fund 

amounts appropriate to reflect the degree of participation 

of the United States Postal Service in the law enforcement 

effort resulting in the forfeiture pursuant to laws enforced 

or administered by a Department of the Treasury law 

enforcement organization.

(o) Definitions.—For purposes of this section—

(1) Department of the Treasury law enforcement 

organization.—The term “Department of the Treasury 

law enforcement organization” means the United States 

Customs Service, the United States Secret Service, the Tax 

and Trade Bureau, the Internal Revenue Service, the Federal 

Law Enforcement Training Center, the Financial Crimes 

Enforcement Network, and any other law enforcement 

component of the Department of the Treasury so designated 

by the Secretary.

(2) Secretary.—The term “Secretary” means the Secretary 

of the Treasury.

Amended: Public Contracts—Enact Certain Laws, Pub. L. 111-

350, § 5(h)(10), Jan. 4, 2011, 124 Stat. 3849.
130 • Asset Forfeiture Statutes

42 U.S.C. § 1786(p) 

TITLE 42

42 U.S.C. § 1786(p). Criminal forfeiture. 

(Supplemental nutrition program for women, 

infants, and children)

(p) Criminal forfeiture

(1) In general

Notwithstanding any provision of State law and in addition 

to any other penalty authorized by law, a court may order a 

person that is convicted of a violation of a provision of law 

described in paragraph (2), with respect to food instruments 

(including any item described in subsection (o)(1)(A) of this 

section issued in lieu of a food instrument under this section), 

funds, assets, or property that have a value of $100 or more 

and that are the subject of a grant or other form of assistance 

under this section, to forfeit to the United States all property 

described in paragraph (3).

(2) Applicable laws

A provision of law described in this paragraph is—

(A) section 1760(g) of this title; and

(B) any other Federal law imposing a penalty for 

embezzlement, willful misapplication, stealing, obtaining 

by fraud, or trafficking in food instruments (including any 

item described in subsection (o)(1)(A) of this section issued 

in lieu of a food instrument under this section), funds, 

assets, or property.

(3) Property subject to forfeiture

The following property shall be subject to forfeiture under 

paragraph (1):

(A) All property, real and personal, used in a transaction 

or attempted transaction, to commit, or to facilitate the 

commission of, a violation described in paragraph (1).

(B) All property, real and personal, constituting, derived 

from, or traceable to any proceeds a person obtained 

directly or indirectly as a result of a violation described 

in paragraph (1).

(4) Procedures; interest of owner

Except as provided in paragraph (5), all property subject 

to forfeiture under this subsection, any seizure or disposition 

of the property, and any proceeding relating to the forfeiture, 

seizure, or disposition shall be subject to section 853 of Title 

21, other than subsection (d) of that section.

(5) Proceeds

The proceeds from any sale of forfeited property and any 

amounts forfeited under this subsection shall be used—

(A) first, to reimburse the Department of Justice, the 

Department of the Treasury, and the United States Postal 

Service for the costs incurred by the Departments or 

Service to initiate and complete the forfeiture proceeding;

(B) second, to reimburse the Office of Inspector General 

of the Department of Agriculture for any costs incurred 

by the Office in the law enforcement effort resulting in 

the forfeiture;

(C) third, to reimburse any Federal, State, or local law 

enforcement agency for any costs incurred in the law 

enforcement effort resulting in the forfeiture; and

(D) fourth, by the State agency to carry out approval, 

reauthorization, and compliance investigations of vendors.

Amended: National Defense Authorization Act for Fiscal Year 

2012, Pub. L. 112-81, Div. A, Title VI, § 631(f)(4)(B), Dec. 31, 

2011, 125 Stat. 1465.
Asset Forfeiture Statutes • 131

46 U.S.C. § 12118

TITLE 46

46 U.S.C. § 12118. Owners engaged primarily 

in manufacturing or mineral industry.

(a) Definitions.—In this section:

(1) Bowaters corporation.—The term “Bowaters 

corporation” means a corporation that has filed a certificate 

under oath with the Secretary, in the form and at the times 

prescribed by the Secretary, establishing that—

(A) the corporation is incorporated under the laws of 

the United States or a State;

(B) a majority of the officers and directors of the 

corporation are individuals who are citizens of the United 

States;

(C) at least 90 percent of the employees of the 

corporation are residents of the United States;

(D) the corporation is engaged primarily in a 

manufacturing or mineral industry in the United States;

(E) the total book value of the vessels owned by the 

corporation is not more than 10 percent of the total book 

value of the assets of the corporation; and

(F) the corporation buys or produces in the United 

States at least 75 percent of the raw materials used or sold 

in its operations.

(2) Parent.—The term “parent” means a corporation that 

has filed a certificate under oath with the Secretary, in the form 

and at the times prescribed by the Secretary, establishing that 

the corporation—

(A) is incorporated under the laws of the United States 

or a State; and

(B) controls, directly or indirectly, at least 50 percent 

of the voting stock of a Bowaters corporation.

(3) Subsidiary.—The term “subsidiary” means a corporation 

that has filed a certificate under oath with the Secretary, in the 

form and at the times prescribed by the Secretary, establishing 

that the corporation—

(A) is incorporated under the laws of the United States 

or a State; and

(B) has at least 50 percent of its voting stock controlled, 

directly or indirectly, by a Bowaters corporation or its parent.

(b) Deemed citizen.—A Bowaters corporation is deemed to 

be a citizen of the United States for purposes of chapters 121, 

551, and 561 and section 80104 of this title.

(c) Issuance of documentation.—A certificate of documentation 

and appropriate endorsement may be issued for a vessel that—

(1) is owned by a Bowaters corporation;

(2) was built in the United States; and

(3)(A) is self-propelled and less than 500 gross tons as 

measured under section 14502 of this title, or an alternate 

tonnage as measured under section 14302 of this title as 

prescribed by the Secretary under section 14104 of this title; or

(B) is not self-propelled.

(d) Effects of documentation.—

(1) In general.—Subject to paragraph (2)—

(A) a vessel documented under this section may engage 

in the coastwise trade; and

(B) the vessel and its owner and master are entitled to 

the same benefits and are subject to the same requirements 

and penalties as if the vessel were otherwise documented 

or exempt from documentation under this chapter.

(2) Transportation of passengers or merchandise.—A vessel 

documented under this section may transport passengers or 

merchandise for hire in the coastwise trade only—

(A) as a service for a parent or subsidiary of the 

corporation owning the vessel; or

(B) when under a demise or bareboat charter, at 

prevailing rates for use not in the domestic noncontiguous 

trades, from the corporation owning the vessel to a carrier 

that—

(i) is subject to jurisdiction under subchapter II of 

chapter 135 of title 49;

(ii) otherwise qualifies as a citizen of the United 

States under section 50501 of this title; and

(iii) is not owned or controlled, directly or indirectly, 

by the corporation owning the vessel.

(e) Validity of corporate certificate.—A certificate filed by a 

corporation under this section remains valid only as long as 

the corporation continues to satisfy the conditions required of 

the corporation by this section. When a corporation no longer 

satisfies those conditions, the corporation loses its status under 

this section and immediately shall surrender to the Secretary 

any documents issued to it based on that status.

(f) Penalties.—

(1) Falsifying material fact.—If a corporation knowingly 

falsifies a material fact in a certificate filed under subsection (a), 

the vessel (or its value) documented or operated under this 

section shall be forfeited.

(2) Transporting merchandise.—If a vessel transports 

merchandise for hire in violation of this section, the merchandise 

shall be forfeited to the United States Government.
132 • Asset Forfeiture Statutes

46 U.S.C. § 31327 

(3) Transporting passengers.—If a vessel transports 

passengers for hire in violation of this section, the vessel is 

liable for a penalty of $200 for each passenger so transported.

(4) Remission or mitigation.—A penalty or forfeiture 

incurred under this subsection may be remitted or mitigated 

under section 2107(b) of this title.

Enacted: Codification of Title 46, Pub. L. 109-304, § 5, Oct. 6, 

2006, 120 Stat. 1500.

46 U.S.C. § 31327. Forfeiture of mortgagee 

interest.

The interest of a mortgagee in a documented vessel or a vessel 

covered by a preferred mortgage under section 31322(d) of 

this title may be terminated by a forfeiture of the vessel for a 

violation of a law of the United States only if the mortgagee 

authorized, consented, or conspired to do the act, failure, or 

omission that is the basis of the violation.

Enacted: Pub. L. 100-710, Title I, § 102(c), Nov. 23, 1988, 102 

Stat. 4746.

46 U.S.C. § 55102. Transportation of 

merchandise.

(a) Definition.—In this section, the term “merchandise” 

includes—

(1) merchandise owned by the United States Government, 

a State, or a subdivision of a State; and

(2) valueless material.

(b) Requirements.—Except as otherwise provided in this 

chapter or chapter 121 of this title, a vessel may not provide 

any part of the transportation of merchandise by water, or by 

land and water, between points in the United States to which 

the coastwise laws apply, either directly or via a foreign port, 

unless the vessel—

(1) is wholly owned by citizens of the United States for 

purposes of engaging in the coastwise trade; and

(2) has been issued a certificate of documentation with a 

coastwise endorsement under chapter 121 or is exempt from 

documentation but would otherwise be eligible for such a 

certificate and endorsement.

(c) Penalty.—Merchandise transported in violation of 

subsection (b) is liable to seizure by and forfeiture to the 

Government. Alternatively, an amount equal to the value of 

the merchandise (as determined by the Secretary of Homeland 

Security) or the actual cost of the transportation, whichever is 

greater, may be recovered from any person transporting the 

merchandise or causing the merchandise to be transported.

Enacted: Codification of Title 46, Pub. L. 109-304, § 8(c), 

Oct. 6, 2006, 120 Stat. 1632.

46 U.S.C. § 55105. Transportation of hazardous 

waste.

(a) In general.—The transportation of hazardous waste, as 

defined in section 1004(5) of the Resource Conservation 

and Recovery Act of 1976 (42 U.S.C. 6903(5)), from a point 

in the United States to sea for incineration is deemed to be 

transportation of merchandise under section 55102 of this title.

(b) Nonapplication to certain foreign vessels.—

(1) In general.—Subsection (a) does not apply to 

transportation performed by a foreign ocean incineration 

vessel owned by or under construction on May 1, 1982, for 

a corporation wholly owned by citizens of the United States 

under section 50501(a)-(c) of this title.

(2) Standards for incineration equipment.—Incineration 

equipment on a vessel described in paragraph (1) must 

meet standards of the Coast Guard and the Environmental 

Protection Agency.

(3) Inspection.—A vessel described in paragraph (1) 

shall be inspected by the Coast Guard, regardless of whether 

inspected by the nation in which it is registered. The inspection 

shall be the same as would be required of a vessel of the United 

States, including drydock inspection and internal examination 

of tanks and void spaces. The inspection may be made 

concurrently with an inspection by that nation or within one 

year after the initial issuance or next scheduled issuance of the 

Safety of Life at Sea Safety Construction Certificate. In making 

the inspection, the Coast Guard shall refer to the condition of 

the hull and superstructure established by the initial foreign 

certification as the basis for evaluating the current condition 

of the hull and superstructure. The Coast Guard shall allow 

the substitution of fittings, material, apparatus, equipment, 

and appliances different from those required for vessels of 

the United States if satisfied they are equivalent and at least as 

effective as those required for vessels of the United States. A 

satisfactory inspection under this paragraph shall be certified 

in writing by the Secretary of Homeland Security.

(c) Effective date.—Subsection (a) is not effective until an 

appropriate vessel has been built and documented under 

chapter 121 of this title.

Amended: National Defense Authorization Act for Fiscal 

Year 2008, Pub. L. 110-181, Div. C, Title XXXV, § 3525(a)(4), 

Jan. 28, 2008, 122 Stat. 601.
Asset Forfeiture Statutes • 133

46 U.S.C. § 70507

46 U.S.C. § 70507. Forfeitures.

(a) In general.—Property described in section 511(a) of the 

Comprehensive Drug Abuse Prevention and Control Act of 

1970 (21 U.S.C. 881(a)) that is used or intended for use to 

commit, or to facilitate the commission of, an offense under 

section 70503 of this title may be seized and forfeited in the 

same manner that similar property may be seized and forfeited 

under section 511 of that Act (21 U.S.C. 881).

(b) Prima facie evidence of violation.—Practices commonly 

recognized as smuggling tactics may provide prima facie 

evidence of intent to use a vessel to commit, or to facilitate the 

commission of, an offense under section 70503 of this title, 

and may support seizure and forfeiture of the vessel, even in 

the absence of controlled substances aboard the vessel. The 

following indicia, among others, may be considered, in the 

totality of the circumstances, to be prima facie evidence that 

a vessel is intended to be used to commit, or to facilitate the 

commission of, such an offense:

(1) The construction or adaptation of the vessel in a manner 

that facilitates smuggling, including—

(A) the configuration of the vessel to ride low in the 

water or present a low hull profile to avoid being detected 

visually or by radar;

(B) the presence of any compartment or equipment that 

is built or fitted out for smuggling, not including items 

such as a safe or lock-box reasonably used for the storage 

of personal valuables;

(C) the presence of an auxiliary tank not installed in 

accordance with applicable law or installed in such a 

manner as to enhance the vessel’s smuggling capability;

(D) the presence of engines that are excessively overpowered in relation to the design and size of the vessel;

(E) the presence of materials used to reduce or alter the 

heat or radar signature of the vessel and avoid detection;

(F) the presence of a camouflaging paint scheme, 

or of materials used to camouflage the vessel, to avoid 

detection; or

(G) the display of false vessel registration numbers, 

false indicia of vessel nationality, false vessel name, or 

false vessel homeport.

(2) The presence or absence of equipment, personnel, or 

cargo inconsistent with the type or declared purpose of the 

vessel.

(3) The presence of excessive fuel, lube oil, food, water, 

or spare parts, inconsistent with legitimate vessel operation, 

inconsistent with the construction or equipment of the vessel, 

or inconsistent with the character of the vessel’s stated purpose.

(4) The operation of the vessel without lights during 

times lights are required to be displayed under applicable 

law or regulation and in a manner of navigation consistent 

with smuggling tactics used to avoid detection by law 

enforcement authorities.

(5) The failure of the vessel to stop or respond or heave to 

when hailed by government authority, especially where the 

vessel conducts evasive maneuvering when hailed.

(6) The declaration to government authority of apparently 

false information about the vessel, crew, or voyage or the 

failure to identify the vessel by name or country of registration 

when requested to do so by government authority.

(7) The presence of controlled substance residue on the 

vessel, on an item aboard the vessel, or on an individual 

aboard the vessel, of a quantity or other nature that reasonably 

indicates manufacturing or distribution activity.

(8) The use of petroleum products or other substances on 

the vessel to foil the detection of controlled substance residue.

(9) The presence of a controlled substance in the water in 

the vicinity of the vessel, where given the currents, weather 

conditions, and course and speed of the vessel, the quantity or 

other nature is such that it reasonably indicates manufacturing 

or distribution activity.

Enacted: Codification of Title 46, Pub. L. 109-304, § 10(2), 

Oct. 6, 2006, 120 Stat. 1688.
134 • Asset Forfeiture Statutes

49 U.S.C. § 80301 

TITLE 49

49 U.S.C. § 80301. Definitions.

In this chapter—

(1) “aircraft” means a contrivance used, or capable of being 

used, for transportation in the air.

(2) “vehicle” means a contrivance used, or capable of 

being used, for transportation on, below, or above land, but 

does not include aircraft.

(3) “vessel” means a contrivance used, or capable of being 

used, for transportation in water, but does not include aircraft.

Enacted: Revision of Title 49, United States Code Annotated, 

“Transportation,” Pub. L. 103-272, § 1(e), July 5, 1994, 

108 Stat. 745, 1353.

49 U.S.C. § 80302. Prohibitions.

(a) Definition.— In this section, “contraband” means—

(1) a narcotic drug (as defined in section 102 of the 

Comprehensive Drug Abuse Prevention and Control Act of 

1970 (21 U.S.C. § 802)), including marihuana (as defined in 

section 102 of that Act (21 U.S.C. § 802)), that—

(A) is possessed with intent to sell or offer for sale in 

violation of the laws and regulations of the United States;

(B) is acquired, possessed, sold, transferred, or offered 

for sale in violation of those laws;

(C) is acquired by theft, robbery, or burglary and 

transported—

(i) in the District of Columbia or a territory or 

possession of the United States; or

(ii) from a place in a State, the District of Columbia, 

or a territory or possession of the United States, to a 

place in another State, the District of Columbia, or a 

territory or possession; or

(D) does not bear tax-paid internal revenue stamps 

required by those laws or regulations;

(2) a firearm involved in a violation of chapter 53 of the 

Internal Revenue Code of 1986 (26 U.S.C. § 5801 et seq.);

(3) a forged, altered, or counterfeit-

(A) coin or an obligation or other security of the United 

States Government (as defined in section 8 of title 18); or

(B) coin, obligation, or other security of the government 

of a foreign country;

(4) material or equipment used, or intended to be used, 

in making a coin, obligation, or other security referred to in 

clause (3) of this subsection; or

(5) a cigarette involved in a violation of chapter 114 of 

title 18 or a regulation prescribed under chapter 114; or

(6)(A) a counterfeit label for a phonorecord, copy of a 

computer program or computer program documentation or 

packaging, or copy of a motion picture or other audiovisual 

work (as defined in section 2318 of title 18);

(B) a phonorecord or copy in violation of section 2319 

of title 18;

(C) a fixation of a sound recording or music video of 

a live musical performance in violation of section 2319A 

of title 18; or

(D) any good bearing a counterfeit mark (as defined in 

section 2320 of title 18).

(b) Prohibitions.— A person may not—

(1) transport contraband in an aircraft, vehicle, or vessel;

(2) conceal or possess contraband on an aircraft, vehicle, 

or vessel; or

(3) use an aircraft, vehicle, or vessel to facilitate the 

transportation, concealment, receipt, possession, purchase, 

sale, exchange, or giving away of contraband.

Amended: Anticounterfeiting Consumer Protection Act of 1996, 

Pub. L. 104-153, § 13, July 2, 1996, 110 Stat. 1386, 1389.

49 U.S.C. § 80303. Seizure and forfeiture.

The Secretary of the Treasury or the Governor of Guam 

or of the Northern Mariana Islands as provided in section 

80304 of this title or, when the violation of this chapter 

involves contraband described in paragraph (2) or (5) 

of section 80302(a), the Attorney General, or a person 

authorized by another law to enforce section 80302 of this 

title, shall seize an aircraft, vehicle, or vessel involved in a 

violation of section 80302 and place it in the custody of a 

person designated by the Secretary, the Attorney General, 

or appropriate Governor, as the case may be. The seized 

aircraft, vehicle, or vessel shall be forfeited, except when the 

owner establishes that a person except the owner committed 

the violation when the aircraft, vehicle, or vessel was in the 

possession of a person who got possession by violating a 

criminal law of the United States or a State. However, an 

aircraft, vehicle, or vessel used by a common carrier to 

provide transportation for compensation may be forfeited 

only when—
Asset Forfeiture Statutes • 135

49 U.S.C. § 80306

(1) the owner, conductor, driver, pilot, or other individual 

in charge of the aircraft or vehicle (except a rail car or engine) 

consents to, or knows of, the alleged violation when the 

violation occurs;

(2) the owner of the rail car or engine consents to, or knows 

of, the alleged violation when the violation occurs; or

(3) the master or owner of the vessel consents to, or 

knows of, the alleged violation when the violation occurs.

Amended: Homeland Security Act of 2002, Pub. L. 107-296, 

Title XI, § 1112(q), Nov. 25, 2002, 116 Stat. 2135, 2278.

49 U.S.C. § 80304. Administrative.

(a) General.— Except as provided in subsections (b), (c), and 

(d) of this section, the Secretary of the Treasury—

(1) may designated officers, employees, agents, or other 

persons to carry out this chapter; and

(2) shall prescribe regulations to carry out this chapter.

(b) In Guam.— The Governor of Guam—

(1) or officers of the government of Guam designated by 

the Governor shall carry out this chapter in Guam;

(2) may carry out laws referred to in section 80306(b) 

of this title with modifications the Governor decides are 

necessary to meet conditions in Guam; and

(3) may prescribe regulations to carry out this chapter in 

Guam.

(c) In Northern Mariana Islands.—The Governor of the 

Northern Mariana Islands—

(1) or officers of the government of the Northern Mariana 

Islands designated by the Governor shall carry out this chapter 

in the Northern Mariana Islands;

(2) may carry out laws referred to in section 80306(b) of this 

title with modifications the Governor decides are necessary to 

meet conditions in the Northern Mariana Islands; and

(3) may prescribe regulations to carry out this chapter in 

the Northern Mariana Islands.

(d) Attorney General.—The Attorney General, or officers, 

employees, or agents of the Bureau of Alcohol, Tobacco, 

Firearms, and Explosives, Department of Justice designated 

by the Attorney General, shall carry out the laws referred to 

in section 80306(b) of this title to the extent that the violation 

of this chapter involves contraband described in section 

80302(a)(2) or (a)(5).

(e) Customs laws on seizure and forfeiture.—The Secretary, 

or the Governor of Guam or of the Northern Mariana Islands 

as provided in subsections (b) and (c) of this section, shall 

carry out the customs laws on the seizure and forfeiture of 

aircraft, vehicles, and vessels under this chapter.

Amended: Homeland Security Act of 2002, Pub. L. 107-296, 

Title XI, § 1112(r), Nov. 25, 2002, 116 Stat. 2135, 2278.

49 U.S.C. § 80305. Availability of certain 

appropriations.

Appropriations for enforcing customs, narcotics, 

counterfeiting, or internal revenue laws are available to 

carry out this chapter.

Enacted: Revision of Title 49, United States Code Annotated, 

“Transportation,” Pub. L. 103-272, § 1(e), July 5, 1994, 

108 Stat. 745, 1355.

49 U.S.C. § 80306. Relationship to other laws.

(a) Chapter as additional law.— This chapter is in addition 

to another law—

(1) imposing, or authorizing the compromise of, fines, 

penalties, or forfeitures, or

(2) providing for seizure, condemnation, or disposition of 

forfeited property, or the proceeds from the property.

(b) Laws applicable to seizures and forfeitures.— To the extent 

applicable and consistent with this chapter, the following 

apply to a seizure or forfeiture under this chapter:

(1) provisions of law related to the seizure, forfeiture, and 

condemnation of vehicles and vessels violating the customs 

laws.

(2) provisions of law related to the disposition of those 

vehicles or vessels or the proceeds from the sale of those 

vehicles or vessels.

(3) provisions of law related to the compromise of those 

forfeitures or claims related to those forfeitures.

(4) provisions of law related to the award of compensation 

to an informer about those forfeitures.

Enacted: Revision of Title 49, United States Code Annotated, 

“Transportation,” Pub. L. 103-272, § 1(e), July 5, 1994, 

108 Stat. 745, 1355.
136 • Asset Forfeiture Statutes

50 U.S.C. App. § 16 

TITLE 50

50 U.S.C. App. § 16. Offenses; punishment; 

forfeitures of property. (Trading with the 

Enemy Act)

(a) Whoever shall willfully violate any of the provisions of this 

Act or of any license, rule, or regulation issued thereunder, and 

whoever shall willfully violate, neglect, or refuse to comply 

with any order of the President issued in compliance with 

the provisions of the Act shall, upon conviction, be fined not 

more than $1,000,000, or if a natural person, be imprisoned 

for not more than 20 years, or both.

(b)(1) A civil penalty of not to exceed $50,000 may be imposed 

by the Secretary of the Treasury on any person who violates 

any license, order, rule, or regulation issued in compliance 

with the provisions of this Act.

(2) Any property, funds, securities, papers, or other articles 

or documents, or any vessel, together with its tackle, apparel, 

furniture, and equipment, that is the subject of a violation 

under paragraph (1) shall, at the direction of the Secretary of 

the Treasury, be forfeited to the United States Government.

(3) The penalties provided under this subsection may be 

imposed only on the record after opportunity for an agency 

hearing in accordance with sections 554 through 557 of title 5, 

United States Code, with the right to prehearing discovery.

(4) Judicial review of any penalty imposed under this 

subsection may be had to the extent provided in section 702 

of title 5, United States Code.

(c) Upon conviction, any property, funds, securities, papers, or 

other articles or documents, or any vessel, together with tackle, 

apparel, furniture, and equipment, concerned in any violation 

of subsection (a) may be forfeited to the United States.

Amended: Comprehensive Iran Sanctions, Accountability, and 

Divestment Act of 2010, Pub. L. 111-195, Title I, § 107(a)(4), 

July 1, 2010, 124 Stat. 1337.

50 U.S.C. § 1702. Presidential authorities. (IEEPA)

(a)(1) At the times and to the extent specified in section 1701 of 

this title, the President may, under such regulations as he may 

prescribe, by means of instructions, licenses, or otherwise—

(A) investigate, regulate, or prohibit—

(i) any transactions in foreign exchange,

(ii) transfers of credit or payments between, by, 

through, or to any banking institution, to the extent that 

such transfers or payments involve any interest of any 

foreign country or a national thereof,

(iii) the importing or exporting of currency or 

securities,

by any person, or with respect to any property, subject to the 

jurisdiction of the United States;

(B) investigate, block during the pendency of an 

investigation, regulate, direct and compel, nullify, void, 

prevent or prohibit, any acquisition, holding, withholding, 

use, transfer, withdrawal, transportation, importation or 

exportation of, or dealing in, or exercising any right, power, 

or privilege with respect to, or transactions involving, any 

property in which any foreign country or a national thereof 

has any interest by any person, or with respect to any 

property, subject to the jurisdiction of the United States; and

(C) when the United States is engaged in armed 

hostilities or has been attacked by a foreign country 

or foreign nationals, confiscate any property, subject 

to the jurisdiction of the United States, of any foreign 

person, foreign organization, or foreign country that he 

determines has planned, authorized, aided, or engaged in 

such hostilities or attacks against the United States; and 

all right, title, and interest in any property so confiscated 

shall vest, when, as, and upon the terms directed by the 

President, in such agency or person as the President may 

designate from time to time, and upon such terms and 

conditions as the President may prescribe, such interest 

or property shall be held, used, administered, liquidated, 

sold, or otherwise dealt with in the interest of and for the 

benefit of the United States, and such designated agency 

or person may perform any and all acts incident to the 

accomplishment or furtherance of these purposes.

(2) In exercising the authorities granted by paragraph (1), 

the President may require any person to keep a full record of, 

and to furnish under oath, in the form of reports or otherwise, 

complete information relative to any act or transaction referred 

to in paragraph (1) either before, during, or after the completion 

thereof, or relative to any interest in foreign property, or relative 

to any property in which any foreign country or any national 

thereof has or has had any interest, or as may be otherwise 

necessary to enforce the provisions of such paragraph. In any 

case in which a report by a person could be required under 

this paragraph, the President may require the production of any 

books of account, records, contracts, letters, memoranda, or 

other papers, in the custody or control of such person.

(3) Compliance with any regulation, instruction, or 

direction issued under this chapter shall to the extent thereof 

be a full acquittance and discharge for all purposes of the 

obligation of the person making the same. No person shall be 

held liable in any court for or with respect to anything done or 

omitted in good faith in connection with the administration 

of, or pursuant to and in reliance on, this chapter, or any 

regulation, instruction, or direction issued under this chapter.
Asset Forfeiture Statutes • 137

50 U.S.C. App. § 2410(g)

(b) The authority granted to the President by this section does 

not include the authority to regulate or prohibit, directly or 

indirectly—

(1) any postal, telegraphic, telephonic, or other personal 

communication, which does not involve a transfer of anything 

of value;

(2) donations, by persons subject to the jurisdiction of the 

United States, of articles, such as food, clothing, and medicine, 

intended to be used to relieve human suffering, except to the 

extent that the President determines that such donations (A) 

would seriously impair his ability to deal with any national 

emergency declared under section 1701 of this title, (B) are in 

response to coercion against the proposed recipient or donor, 

or (C) would endanger Armed Forces of the United States 

which are engaged in hostilities or are in a situation where 

imminent involvement in hostilities is clearly indicated by 

the circumstances; or

(3) the importation from any country, or the exportation 

to any country, whether commercial or otherwise, regardless 

of format or medium of transmission, of any information 

or informational materials, including but not limited to, 

publications, films, posters, phonograph records, photographs, 

microfilms, microfiche, tapes, compact disks, CD ROMs, 

artworks, and news wire feeds. The exports exempted from 

regulation or prohibition by this paragraph do not include 

those which are otherwise controlled for export under section 

2404 of the Appendix to this title, or under section 2405 of 

the Appendix to this title to the extent that such controls 

promote the nonproliferation or antiterrorism policies of the 

United States, or with respect to which acts are prohibited by 

chapter 37 of Title 18;

(4) any transactions ordinarily incident to travel to or from 

any country, including importation of accompanied baggage 

for personal use, maintenance within any country including 

payment of living expenses and acquisition of goods or 

services for personal use, and arrangement or facilitation of 

such travel including nonscheduled air, sea, or land voyages.

(c) Classified information.—In any judicial review of a 

determination made under this section, if the determination 

was based on classified information (as defined in section 1(a) 

of the Classified Information Procedures Act) such information 

may be submitted to the reviewing court ex parte and in 

camera. This subsection does not confer or imply any right 

to judicial review.

Amended: Uniting and Strengthening America by Providing 

Appropriate Tools Required to Intercept and Obstruct Terrorism 

(USA PATRIOT) Act of 2001, Pub. L. 107-56, Title I, § 106, 

Oct. 26, 2001, 115 Stat. 272, 277.

50 U.S.C. App. § 2410(g). Violations. (Export 

Administration Act)

(g) Forfeiture of property interest and proceeds.

(1) Any person who is convicted under subsection (a) or 

(b) of a violation of an export control imposed under section 5 

of this Act (or any regulation, order, or license issued with 

respect to such control) shall, in addition to any other penalty, 

forfeit to the United States—

(A) any of that person’s interest in, security of, claim 

against, or property or contractual rights of any kind in 

the goods or tangible items that were the subject of the 

violation;

(B) any of that person’s interest in, security of, claim 

against, or property or contractual rights of any kind in 

tangible property that was used in the export or attempt to 

export that was the subject of the violation; and

(C) any of that person’s property constituting, or derived 

from, any proceeds obtained directly or indirectly as a 

result of the violation.

 (2) The procedures in any forfeiture under this subsection, 

and the duties and authority of the courts of the United States 

and the Attorney General with respect to any forfeiture action 

under this subsection or with respect to any property that 

may be subject to forfeiture under this subsection, shall be 

governed by the provisions of section 1963 of title 18, United 

States Code.

Amended: Export Enhancement Act of 1988, Pub. L. 100-418, 

Title II, Subtitle D, Part I, § 2426, Aug. 23, 1988, 102 Stat. 107, 

1361.
138 • Asset Forfeiture Statutes

28 C.F.R. § 9.1 

28 C.F.R. PART 9. 

REGULATIONS GOVERNING 

THE REMISSION OR 

MITIGATION OF CIVIL AND 

CRIMINAL FORFEITURES

28 C.F.R. § 9.1 Purpose, authority, and scope.

(a) Purpose. This part sets forth the procedures for agency 

officials to follow when considering remission or mitigation 

of administrative forfeitures under the jurisdiction of the 

agency, and civil judicial and criminal judicial forfeitures 

under the jurisdiction of the Department of Justice’s Criminal 

Division. The purpose of this part is to provide a basis for 

the partial or total remission of forfeiture for individuals 

who have an interest in the forfeited property but who did 

not participate in, or have knowledge of, the conduct that 

resulted in the property being subject to forfeiture and, where 

required, took all reasonable steps under the circumstances 

to ensure that such property would not be used, acquired, 

or disposed of contrary to law. Additionally, the regulations 

provide for partial or total mitigation of the forfeiture 

and imposition of alternative conditions in appropriate 

circumstances.

(b) Authority to grant remission and mitigation.

(1) Remission and mitigation functions in administrative 

forfeitures are performed by the agency seizing the property. 

Within the Federal Bureau of Investigation (FBI), authority to 

grant remission and mitigation is delegated to the Forfeiture 

Counsel, who is the Unit Chief, Legal Forfeiture Unit, 

Office of the General Counsel; within the Drug Enforcement 

Administration (DEA), authority to grant remission and 

mitigation is delegated to the Forfeiture Counsel, Office of 

Chief Counsel; and within the Bureau of Alcohol, Tobacco, 

Firearms, and Explosives (ATF), authority to grant remission 

and mitigation is delegated to the Associate Chief Counsel, 

Office of Chief Counsel.

(2) Remission and mitigation functions in judicial cases 

are performed by the Criminal Division of the Department 

of Justice. Within the Criminal Division, authority to grant 

remission and mitigation is delegated to the Chief, Asset 

Forfeiture and Money Laundering Section.

(3) The powers and responsibilities delegated by this part 

may be redelegated to attorneys or managers working under 

the supervision of the designated officials.

(c) Scope. This part governs any petition for remission filed 

with the Attorney General and supersedes any Department of 

Justice regulation governing petitions for remission, to the 

extent such regulation is inconsistent with this part.

(d) The time periods and internal requirements established in 

this part are designed to guide the orderly administration of 

the remission and mitigation process and are not intended to 

create rights or entitlements in favor of individuals seeking 

remission or mitigation. This part applies to all forfeiture 

actions commenced on or after October 12, 2012.

Amended: eff. Oct. 12, 2012.

28 C.F.R. § 9.2 Definitions.

As used in this part:

Administrative forfeiture means the process by which 

property may be forfeited by a seizing agency rather than 

through judicial proceedings. Administrative forfeiture has 

the same meaning as nonjudicial forfeiture, as that term is 

used in 18 U.S.C. 983.

Appraised value means the estimated market value of 

property at the time and place of seizure if such or similar 

property were freely offered for sale between a willing seller 

and a willing buyer.

Assets Forfeiture Fund means the Department of Justice 

Assets Forfeiture Fund or Department of the Treasury 

Forfeiture Fund, depending upon the identity of the seizing 

agency.

Attorney General means the Attorney General of the United 

States or his or her designee.

Beneficial owner means a person with actual use of, as well 

as an interest in, the property subject to forfeiture.

Chief, Asset Forfeiture and Money Laundering Section, and 

Chief, refer to the Chief of the Asset Forfeiture and Money 

Laundering Section, Criminal Division, United States 

Department of Justice.

General creditor means one whose claim or debt is not 

secured by a specific right to obtain satisfaction against the 

particular property subject to forfeiture.

Judgment creditor means one who has obtained a judgment 

against the debtor but has not yet received full satisfaction 

of the judgment.

Judicial forfeiture means either a civil or a criminal 

proceeding in a United States District Court that may result 

in a final judgment and order of forfeiture.

Lienholder means a creditor whose claim or debt is secured 

by a specific right to obtain satisfaction against the particular 

property subject to forfeiture. A lien creditor qualifies as a 

lienholder if the lien:
Asset Forfeiture Statutes • 139

28 C.F.R. § 9.2

(1) Was established by operation of law or contract;

(2) Was created as a result of an exchange of money, goods, 

or services; and

(3) Is perfected against the specific property forfeited for 

which remission or mitigation is sought (e.g., a real estate 

mortgage; a mechanic’s lien).

Net equity means the amount of a lienholder’s monetary 

interest in property subject to forfeiture. Net equity shall be 

computed by determining the amount of unpaid principal 

and unpaid interest at the time of seizure and by adding to 

that sum unpaid interest calculated from the date of seizure 

through the last full month prior to the date of the decision on 

the petition. Where a rate of interest is set forth in a security 

agreement, the rate of interest to be used in this computation 

will be the annual percentage rate so specified in the security 

agreement that is the basis of the lienholder’s interest. In 

this computation, however, there shall be no allowances 

for attorney fees, accelerated or enhanced interest charges, 

amounts set by contract as damages, unearned extended 

warranty fees, insurance, service contract charges incurred 

after the date of seizure, allowances for dealer’s reserve, or 

any other similar charges.

Nonjudicial forfeiture has the same meaning as administrative 

forfeiture as defined in this section.

Owner means the person in whom primary title is vested or 

whose interest is manifested by the actual and beneficial use 

of the property, even though the title is vested in another. 

A victim of an offense, as defined in this section, may also 

be an owner if he or she has a present legally cognizable 

ownership interest in the property forfeited. A nominal owner 

of property will not be treated as its true owner if he or she 

is not its beneficial owner.

Person means an individual, partnership, corporation, joint 

business enterprise, estate, or other legal entity capable of 

owning property.

Petition means a petition for remission or mitigation of 

forfeiture under the regulations in this part. This definition 

includes a petition for restoration of the proceeds of sale of 

forfeited property and a petition for the value of forfeited 

property placed into official use.

Petitioner means the person applying for remission, 

mitigation, or restoration of the proceeds of sale, or for 

the appraised value of forfeited property, under this part. 

A petitioner may be an owner as defined in this section, a 

lienholder as defined in this section, or a victim as defined 

in this section, subject to the limitations of § 9.8.

Property means real or personal property of any kind capable 

of being owned or possessed.

Record means two or more arrests for related crimes, unless 

the arrestee was acquitted or the charges were dismissed 

for lack of evidence, a conviction for a related crime or 

completion of sentence within ten years of the acquisition 

of the property subject to forfeiture, or two convictions for 

a related crime at any time in the past.

Related crime as used in this section and § 9.6(e) means any 

crime similar in nature to that which gives rise to the seizure 

of property for forfeiture. For example, where property is 

seized for a violation of the federal laws relating to drugs, 

a related crime would be any offense involving a violation 

of the federal laws relating to drugs or the laws of any state 

or political subdivision thereof relating to drugs.

Related offense as used in § 9.8 means:

(1) Any predicate offense charged in a federal Racketeer 

Influenced and Corrupt Organizations Act (RICO) count 

for which forfeiture was ordered; or

(2) An offense committed as part of the same scheme or 

design, or pursuant to the same conspiracy, as was involved 

in the offense for which forfeiture was ordered.

Ruling official means any official to whom decision-making 

authority has been delegated pursuant to § 9.1(b).

Seizing agency means the federal agency that seized the 

property or adopted the seizure of another agency for federal 

forfeiture.

Victim means a person who has incurred a pecuniary loss as 

a direct result of the commission of the offense underlying 

a forfeiture. A drug user is not considered a victim of a drug 

trafficking offense under this definition. A victim does not 

include one who acquires a right to sue the perpetrator of the 

criminal offense for any loss by assignment, subrogation, 

inheritance, or otherwise from the actual victim, unless 

that person has acquired an actual ownership interest in the 

forfeited property; provided however, that if a victim has 

received compensation from insurance or any other source 

with respect to a pecuniary loss, remission may be granted 

to the third party who provided the compensation, up to the 

amount of the victim’s pecuniary loss as defined in § 9.8(c).

Violator means the person whose use or acquisition of the 

property in violation of the law subjected such property to 

seizure for forfeiture.

Amended: eff. Oct. 12, 2012.
140 • Asset Forfeiture Statutes

28 C.F.R. § 9.3 

28 C.F.R. § 9.3 Petitions in administrative 

forfeiture cases.

(a) Notice of seizure. The notice of seizure and intent to forfeit 

the property shall advise any persons who may have a present 

ownership interest in the property to submit their petitions 

for remission or mitigation within 30 days of the date they 

receive the notice in order to facilitate processing. Petitions 

shall be considered any time after notice until the property has 

been forfeited, except in cases involving petitions to restore 

the proceeds from the sale of forfeited property. A notice of 

seizure shall include the title of the seizing agency, the ruling 

official, the mailing and street address of the official to whom 

petitions should be sent, and an asset identifier number.

(b) Persons who may file.

(1) A petition for remission or mitigation must be filed by 

a petitioner as defined in § 9.2 or as prescribed in § 9.9(g) 

and (h). A person or person on their behalf may not file a 

petition if, after notice or knowledge of the fact that a warrant 

or process has been issued for his apprehension, in order to 

avoid criminal prosecution, the person:

(i) Purposely leaves the jurisdiction of the United States;

(ii) Declines to enter or reenter the United States to 

submit to its jurisdiction; or

(iii) Otherwise evades the jurisdiction of the court in 

which a criminal matter is pending against the person.

(2) Paragraph (b)(1) of this section applies to a petition filed 

by a corporation if any majority shareholder, or individual 

filing the claim on behalf of the corporation:

(i) Purposely leaves the jurisdiction of the United States;

(ii) Declines to enter or reenter the United States to 

submit to its jurisdiction; or

(iii) Otherwise evades the jurisdiction of the court in 

which a criminal matter is pending against the person.

(c) Contents of petition.

(1) All petitions must include the following information 

in clear and concise terms:

(i) The name, address, and social security or other 

taxpayer identification number of the person claiming an 

interest in the seized property who is seeking remission 

or mitigation;

(ii) The name of the seizing agency, the asset identifier 

number, and the date and place of seizure;

(iii) A complete description of the property, including 

make, model, and serial numbers, if any; and

(iv) A description of the petitioner’s interest in the 

property as owner, lienholder, or otherwise, supported 

by original or certified bills of sale, contracts, deeds, 

mortgages, or other documentary evidence. Such 

documentation includes evidence establishing the source 

of funds for seized currency or the source of funds used 

to purchase the seized asset.

(2) Any factual recitation or documentation of any type in 

a petition must be supported by a declaration under penalty 

of perjury that meets the requirements of 28 U.S.C. 1746.

(d) Releases. In addition to the contents of the petition for 

remission or mitigation set forth in paragraph (c) of this 

section, upon request of the agency, the petitioner shall also 

furnish the agency with an instrument executed by the titled or 

registered owner and any other known claimant of an interest 

in the property releasing interest in such property.

(e) Filing petition with agency.

(1) A petition for remission or mitigation subject to 

administrative forfeiture is to be sent to the official address 

provided in the notice of seizure and shall be sworn to by the 

petitioner or by the petitioner’s attorney upon information and 

belief, supported by the client’s sworn notice of representation 

pursuant to 28 U.S.C. 1746, as set out in § 9.9(g).

(2) If the notice of seizure does not provide an official 

address, the petition shall be addressed to the appropriate 

federal agency as follows:

(i)(A) DEA: All submissions must be filed with the 

Forfeiture Counsel, Asset Forfeiture Section, Office of 

Chief Counsel, Drug Enforcement Administration, HQS 

Forfeiture Response, P.O. Box 1475, Quantico, Virginia 

22134–1475.

(B) Correspondence via private delivery must be 

filed with The Forfeiture Counsel, Asset Forfeiture 

Section (CCF), Office of Chief Counsel, Drug 

Enforcement Administration, 8701 Morrissette Drive, 

Springfield, Virginia 22152.

(C) Submission by facsimile or other electronic 

means will not be accepted.

(ii)(A) FBI: All submissions must be filed with the FBI 

Special Agent in Charge at the Field Office that seized 

the property.

(B) Submission by facsimile or other electronic 

means will not be accepted.

(iii)(A) ATF: All submissions must be filed with the 

Office of Chief Counsel, Attention: Forfeiture Counsel, 99 

New York Avenue NE., Washington, DC 20226.

(B) Submission by facsimile or other electronic 

means will not be accepted.
Asset Forfeiture Statutes • 141

28 C.F.R. § 9.4

(f) Agency investigation. Upon receipt of a petition, the 

seizing agency shall investigate the merits of the petition 

and may prepare a written report containing the results of 

that investigation. This report shall be submitted to the ruling 

official for review and consideration.

(g) Ruling. Upon receipt of the petition and the agency report, 

the ruling official for the seizing agency shall review the 

petition and the report, if any, and shall rule on the merits of 

the petition. No hearing shall be held.

(h) Petitions granted. If the ruling official grants a remission 

or mitigation of the forfeiture, a copy of the decision shall be 

mailed to the petitioner or, if represented by an attorney, to the 

petitioner’s attorney. A copy shall also be sent to the United 

States Marshals Service (USMS) or other property custodian. 

The written decision shall include the terms and conditions, 

if any, upon which the remission or mitigation is granted and 

the procedures the petitioner must follow to obtain release of 

the property or the monetary interest therein.

(i) Petitions denied. If the ruling official denies a petition, 

a copy of the decision shall be mailed to the petitioner or, 

if represented by an attorney, to the petitioner’s attorney of 

record. A copy of the decision shall also be sent to the USMS 

or other property custodian. The decision shall specify the 

reason that the petition was denied. The decision shall advise 

the petitioner that a request for reconsideration of the denial 

of the petition may be submitted to the ruling official in 

accordance with paragraph (j) of this section.

(j) Request for reconsideration.

(1) A request for reconsideration of the denial of the 

petition shall be considered if:

(i) It is postmarked or received by the office of the ruling 

official within 10 days from the receipt of the notice of 

denial of the petition by the petitioner; and

(ii) The request is based on information or evidence not 

previously considered that is material to the basis for the 

denial or presents a basis clearly demonstrating that the 

denial was erroneous.

(2) In no event shall a request for reconsideration be decided 

by the same ruling official who ruled on the original petition.

(3) Only one request for reconsideration of a denial of a 

petition shall be considered.

(k) Restoration of proceeds from sale.

(1) A petition for restoration of the proceeds from the sale 

of forfeited property, or for the appraised value of forfeited 

property when the forfeited property has been retained by 

or delivered to a government agency for official use, may 

be submitted by an owner or lienholder in cases in which 

the petitioner:

(i) Did not know of the seizure prior to the entry of a 

declaration of forfeiture; and

(ii) Could not reasonably have known of the seizure 

prior to the entry of a declaration of forfeiture.

(2) Such a petition shall be submitted pursuant to 

paragraphs (b) through (e) of this section within 90 days of 

the date the property is sold or otherwise disposed of.

Amended: eff. Oct. 12, 2012.

28 C.F.R. § 9.4 Petitions in judicial forfeiture 

cases.

(a) Notice of seizure. The notice of seizure and intent to forfeit 

the property shall advise any persons who may have a present 

ownership interest in the property to submit their petitions for 

remission or mitigation within 30 days of the date they receive 

the notice in order to facilitate processing. Petitions shall be 

considered any time after notice until such time as the forfeited 

property is placed in official use, sold, or otherwise disposed 

of according to law, except in cases involving petitions to 

restore property. A notice of seizure shall include the title of 

the ruling official and the mailing and street address of the 

official to whom petitions should be sent, the name of the 

agency seizing the property, an asset identifier number, and 

the district court docket number.

(b) Persons who may file. A petition for remission or 

mitigation must be filed by a petitioner as defined in § 9.2 or 

as prescribed in § 9.9(g) and (h).

(c) Contents of petition.

(1) All petitions must include the following information 

in clear and concise terms:

(i) The name, address, and social security or other 

taxpayer identification number of the person claiming an 

interest in the seized property who is seeking remission 

or mitigation;

(ii) The name of the seizing agency, the asset identifier 

number, and the date and place of seizure;

(iii) The district court docket number;

(iv) A complete description of the property, including 

the address or legal description of real property, and make, 

model, and serial numbers of personal property, if any; and

(v) A description of the petitioner’s interest in the 

property as owner, lienholder, or otherwise, supported 

by original or certified bills of sale, contracts, mortgages, 

deeds, or other documentary evidence.
142 • Asset Forfeiture Statutes

28 C.F.R. § 9.4 

(2) Any factual recitation or documentation of any type in 

a petition must be supported by a declaration under penalty 

of perjury that meets the requirements of 28 U.S.C. 1746.

(d) Releases. In addition to the content of the petition for 

remission or mitigation set forth in paragraph (c) of this 

section, the petitioner, upon request, also shall furnish the 

agency with an instrument executed by the titled or registered 

owner and any other known claimant of an interest in the 

property releasing the interest in such property.

(e) Filing petition with Department of Justice. A petition 

for remission or mitigation of a judicial forfeiture shall be 

addressed to the Attorney General; shall be sworn to by the 

petitioner or by the petitioner’s attorney upon information and 

belief, supported by the client’s sworn notice of representation 

pursuant to 28 U.S.C. 1746, as set forth in § 9.9(g); and shall 

be submitted to the U.S. Attorney for the district in which the 

judicial forfeiture proceedings are brought.

(f) Agency investigation and recommendation; U.S. 

Attorney’s recommendation. Upon receipt of a petition, the 

U.S. Attorney shall direct the seizing agency to investigate 

the merits of the petition based on the information provided 

by the petitioner and the totality of the agency’s investigation 

of the underlying basis for forfeiture. The agency shall 

submit to the U.S. Attorney a report of its investigation 

and its recommendation on whether the petition should be 

granted or denied. Upon receipt of the agency’s report and 

recommendation, the U.S. Attorney shall forward to the Chief, 

Asset Forfeiture and Money Laundering Section, the petition, 

the seizing agency’s report and recommendation, and the U.S. 

Attorney’s recommendation on whether the petition should 

be granted or denied.

(g) Ruling. The Chief shall rule on the petition. No hearing 

shall be held. The Chief shall not rule on any petition for 

remission if such remission was previously denied by the 

agency pursuant to § 9.3.

(h) Petitions under Internal Revenue Service liquor laws. The 

Chief shall accept and consider petitions submitted in judicial 

forfeiture proceedings under the Internal Revenue Service 

liquor laws only prior to the time a decree of forfeiture is 

entered. Thereafter, the district court has exclusive jurisdiction.

(i) Petitions granted. If the Chief grants a remission or mitigates 

the forfeiture, the Chief shall mail a copy of the decision to the 

petitioner (or, if represented by an attorney, to the petitioner’s 

attorney) and shall mail or transmit electronically a copy of 

the decision to the appropriate U.S. Attorney, the USMS 

or other property custodian, and the seizing agency. The 

written decision shall include the terms and conditions, if 

any, upon which the remission or mitigation is granted and 

the procedures the petitioner must follow to obtain release of 

the property or the monetary interest therein. The Chief shall 

advise the petitioner or the petitioner’s attorney to consult 

with the U.S. Attorney as to such terms and conditions. The 

U.S. Attorney shall confer with the seizing agency regarding 

the release and shall coordinate disposition of the property 

with that office and the USMS or other property custodian.

(j) Petitions denied. If the Chief denies a petition, a copy 

of that decision shall be mailed to the petitioner (or, if 

represented by an attorney, to the petitioner’s attorney of 

record) and mailed or transmitted electronically to the 

appropriate U.S. Attorney, the USMS or other property 

custodian, and to the seizing agency. The decision shall 

specify the reason that the petition was denied. The decision 

shall advise the petitioner that a request for reconsideration 

of the denial of the petition may be submitted to the Chief 

at the address provided in the decision, in accordance with 

paragraph (k) of this section.

(k) Request for reconsideration.

(1) A request for reconsideration of the denial shall be 

considered if:

(i) It is postmarked or received by the Asset 

Forfeiture and Money Laundering Section at the address 

contained in the decision denying the petition within 

10 days from the receipt of the notice of denial of the 

petition by the petitioner;

(ii) A copy of the request is also received by the 

appropriate U.S. Attorney within 10 days of the receipt of 

the denial by the petitioner; and

(iii) The request is based on information or evidence 

not previously considered that is material to the basis for 

the denial or presents a basis clearly demonstrating that 

the denial was erroneous.

(2) In no event shall a request for reconsideration be 

decided by the ruling official who ruled on the original petition.

(3) Only one request for reconsideration of a denial of a 

petition shall be considered.

(4) Upon receipt of the request for reconsideration of the 

denial of a petition, disposition of the property will be delayed 

pending notice of the decision at the request of the Chief. 

If the request for reconsideration is not received within the 

prescribed period, the USMS or other property custodian may 

dispose of the property.

(l) Restoration of proceeds from sale.

(1) A petition for restoration of the proceeds from the sale 

of forfeited property, or for the appraised value of forfeited 

property when the forfeited property has been retained by 

or delivered to a government agency for official use, may 

be submitted by an owner or lienholder in cases in which 

the petitioner:
Asset Forfeiture Statutes • 143

28 C.F.R. § 9.5

(i) Did not know of the seizure prior to the entry of a 

final order of forfeiture; and

(ii) Could not reasonably have known of the seizure 

prior to the entry of a final order of forfeiture.

(2) Such a petition must be submitted pursuant to 

paragraphs (b) through (e) of this section within 90 days of 

the date the property was sold or otherwise disposed of.

Amended: eff. Oct. 12, 2012.

28 C.F.R. § 9.5 Criteria governing administrative 

and judicial remission and mitigation.

(a) Remission.

(1) The ruling official shall not grant remission of a 

forfeiture unless the petitioner establishes that the petitioner 

has a valid, good faith, and legally cognizable interest in the 

seized property as owner or lienholder as defined in this part 

and is an innocent owner within the meaning of 18 U.S.C. 

983(d)(2)(A) or 983(d)(3)(A).

(2) For purposes of paragraph (a)(1) of this section, 

the knowledge and responsibilities of a petitioner’s 

representative, agent, or employee are imputed to the 

petitioner where the representative, agent, or employee 

was acting in the course of his or her employment and in 

furtherance of the petitioner’s business.

(3) The petitioner has the burden of establishing the basis 

for granting a petition for remission or mitigation of forfeited 

property, a restoration of proceeds of sale or appraised value 

of forfeited property, or a reconsideration of a denial of such 

a petition. Failure to provide information or documents and 

to submit to interviews, as requested, may result in a denial 

of the petition.

(4) The ruling official shall presume a valid forfeiture 

and shall not consider whether the evidence is sufficient to 

support the forfeiture.

(5) Willful, materially false statements or information 

made or furnished by the petitioner in support of a petition for 

remission or mitigation of forfeited property, the restoration 

of proceeds or appraised value of forfeited property, or the 

reconsideration of a denial of any such petition, shall be 

grounds for denial of such petition and possible prosecution 

for the filing of false statements.

(b) Mitigation.

(1) The ruling official may grant mitigation to a party 

not involved in the commission of the offense underlying 

forfeiture:

(i) Where the petitioner has not met the minimum 

conditions for remission, but the ruling official finds 

that some relief should be granted to avoid extreme 

hardship, and that return of the property combined with 

imposition of monetary or other conditions of mitigation 

in lieu of a complete forfeiture will promote the interest 

of justice and will not diminish the deterrent effect of the 

law. Extenuating circumstances justifying such a finding 

include those circumstances that reduce the responsibility 

of the petitioner for knowledge of the illegal activity, 

knowledge of the criminal record of a user of the property, 

or failure to take reasonable steps to prevent the illegal 

use or acquisition by another for some reason, such as a 

reasonable fear of reprisal; or

(ii) Where the minimum standards for remission have 

been satisfied but the overall circumstances are such that, 

in the opinion of the ruling official, complete relief is 

not warranted.

(2) The ruling official may in his or her discretion grant 

mitigation to a party involved in the commission of the offense 

underlying the forfeiture where certain mitigating factors 

exist, including, but not limited to: the lack of a prior record or 

evidence of similar criminal conduct; if the violation does not 

include drug distribution, manufacturing, or importation, the 

fact that the violator has taken steps, such as drug treatment, 

to prevent further criminal conduct; the fact that the violation 

was minimal and was not part of a larger criminal scheme; 

the fact that the violator has cooperated with federal, state, or 

local investigations relating to the criminal conduct underlying 

the forfeiture; or the fact that complete forfeiture of an asset is 

not necessary to achieve the legitimate purposes of forfeiture.

(3) Mitigation may take the form of a monetary condition 

or the imposition of other conditions relating to the continued 

use of the property, and the return of the property, in addition 

to the imposition of any other costs that would be chargeable 

as a condition to remission. This monetary condition is 

considered as an item of cost payable by the petitioner, and 

shall be deposited into the Assets Forfeiture Fund as an amount 

realized from forfeiture in accordance with the applicable 

statute. If the petitioner fails to accept the ruling official’s 

mitigation decision or any of its conditions, or fails to pay the 

monetary amount within 20 days of the receipt of the decision, 

the property shall be sold, and the monetary amount imposed 

and other costs chargeable as a condition to mitigation shall be 

subtracted from the proceeds of the sale before transmitting 

the remainder to the petitioner.

Amended: eff. Oct. 12, 2012.
144 • Asset Forfeiture Statutes

28 C.F.R. § 9.6 

28 C.F.R. § 9.6 Special rules for specific 

petitioners.

(a) General creditors. A general creditor may not be granted 

remission or mitigation of forfeiture unless he or she otherwise 

qualifies as petitioner under this part.

(b) Rival claimants. If the beneficial owner of the forfeited 

property and the owner of a security interest in the same 

property each file a petition, and if both petitions are found 

to be meritorious, the claims of the beneficial owner shall 

take precedence.

(c) Voluntary bailments. A petitioner who allows another to 

use his or her property without cost, and who is not in the 

business of lending money secured by property or of leasing 

or renting property for profit, shall be granted remission or 

mitigation of forfeiture in accordance with the provisions of 

§ 9.5.

(d) Lessors. A person engaged in the business of leasing or 

renting real or personal property on a long-term basis with 

the right to sublease shall not be entitled to remission or 

mitigation of a forfeiture of such property unless the lessor 

can demonstrate compliance with all the requirements of § 9.5.

(e) Straw owners. A petition by any person who has acquired 

a property interest recognizable under this part, and who knew 

or had reason to believe that the interest was conveyed by the 

previous owner for the purpose of circumventing seizure, 

forfeiture, or the regulations in this part, shall be denied. 

A petition by a person who purchases or owns property for 

another who has a record for related crimes as defined in 

§ 9.2, or a petition by a lienholder who knows or has reason 

to believe that the purchaser or owner of record is not the 

real purchaser or owner, shall be denied unless both the 

purchaser of record and the real purchaser or owner meet the 

requirements of § 9.5.

(f) Judgment creditors.

(1) A judgment creditor will be recognized as a lienholder if:

(i) The judgment was duly recorded before the seizure 

of the property for forfeiture;

(ii) Under applicable state or local law, the judgment 

constitutes a valid lien on the property that attached to it 

before the seizure of the property for forfeiture; and

(iii) The petitioner had no knowledge of the commission 

of any act or acts giving rise to the forfeiture at the time the 

judgment became a lien on the forfeited property.

(2) A judgment creditor will not be recognized as a 

lienholder if the property in question is not property of which 

the judgment debtor is entitled to claim ownership under 

applicable state or local law (e.g., stolen property). A judgment 

creditor is entitled under this part to no more than the amount 

of the judgment, exclusive of any interest, costs, or other fees 

including attorney fees associated with the action that led to 

the judgment or its collection.

(3) A judgment creditor’s lien must be registered in the 

district where the property is located if the judgment was 

obtained outside the district.

Amended: eff. Oct. 12, 2012.

28 C.F.R. § 9.7 Terms and conditions of 

remission and mitigation.

(a) Owners.

(1) An owner’s interest in property that has been forfeited 

is represented by the property itself or by a monetary interest 

equivalent to that interest at the time of seizure. Whether the 

property or a monetary equivalent will be remitted to an owner 

shall be determined at the discretion of the ruling official.

(2) If a civil judicial forfeiture action against the property 

is pending, release of the property must await an appropriate 

court order.

(3) Where the Government sells or disposes of the property 

prior to the grant of the remission, the owner shall receive the 

proceeds of that sale, less any costs incurred by the Government 

in the sale. The ruling official, at his or her discretion, may waive 

the deduction of costs and expenses incident to the forfeiture.

(4) Where the owner does not comply with the conditions 

imposed upon release of the property by the ruling official, the 

property shall be sold. Following the sale, the proceeds shall 

be used to pay all costs of the forfeiture and disposition of 

the property, in addition to any monetary conditions imposed. 

The remaining balance shall be paid to the owner.

(b) Lienholders.

(1) When the forfeited property is to be retained for official 

use or transferred to a state or local law enforcement agency 

or foreign government pursuant to law, and remission or 

mitigation has been granted to a lienholder, the recipient of 

the property shall assure that:

(i) In the case of remission, the lien is satisfied as 

determined through the petition process; or

(ii) In the case of mitigation, an amount equal to the 

net equity, less any monetary conditions imposed, is paid 

to the lienholder prior to the release of the property to the 

recipient agency or foreign government.

(2) When the forfeited property is not retained for official 

use or transferred to another agency or foreign government 

pursuant to law, the lienholder shall be notified by the ruling 

official of the right to select either of the following alternatives:
Asset Forfeiture Statutes • 145

28 C.F.R. § 9.8

(i) Return of property. The lienholder may obtain 

possession of the property after paying the United States, 

through the ruling official, the costs and expenses incident 

to the forfeiture, the amount, if any, by which the appraised 

value of the property exceeds the lienholder’s net equity 

in the property, and any amount specified in the ruling 

official’s decision as a condition to remit the property. The 

ruling official, at his or her discretion, may waive costs 

and expenses incident to the forfeiture. The ruling official 

shall forward a copy of the decision, a memorandum of 

disposition, and the original releases to the USMS or other 

property custodian who shall thereafter release the property 

to the lienholder; or

(ii) Sale of property and payment to lienholder. Subject 

to § 9.9(a), upon sale of the property, the lienholder may 

receive the payment of a monetary amount up to the sum 

of the lienholder’s net equity, less the expenses and costs 

incident to the forfeiture and sale of the property, and any 

other monetary conditions imposed. The ruling official, 

at his or her discretion, may waive costs and expenses 

incident to the forfeiture.

(3) If the lienholder does not notify the ruling official of the 

selection of one of the two options set forth in paragraph (b) (2) 

of this section within 20 days of the receipt of notification, 

the ruling official shall direct the USMS or other property 

custodian to sell the property and pay the lienholder an amount 

up to the net equity, less the costs and expenses incurred 

incident to the forfeiture and sale, and any monetary conditions 

imposed. In the event a lienholder subsequently receives a 

payment of any kind on the debt owed for which he or she 

received payment as a result of the granting of remission or 

mitigation, the lienholder shall reimburse the Assets Forfeiture 

Fund to the extent of the payment received.

(4) Where the lienholder does not comply with the 

conditions imposed upon the release of the property, the 

property shall be sold after forfeiture. From the proceeds of 

the sale, all costs incident to the forfeiture and sale shall first 

be deducted, and the balance up to the net equity, less any 

monetary conditions, shall be paid to the lienholder.

Amended: eff. Oct. 12, 2012.

28 C.F.R. § 9.8 Remission procedures for victims.

This section applies to victims of an offense underlying the 

forfeiture of property, or of a related offense, who do not have 

a present ownership interest in the forfeited property (or, in 

the case of multiple victims of an offense, who do not have 

a present ownership interest in the forfeited property that 

is clearly superior to that of other petitioner victims). This 

section applies only with respect to property forfeited pursuant 

to statutes that explicitly authorize restoration or remission of 

forfeited property to victims. A victim requesting remission 

under this section may concurrently request remission as an 

owner, pursuant to the regulations set forth in §§ 9.3, 9.4, and 

9.7. The claims of victims granted remission as both an owner 

and victim shall, like claims of other owners, have priority 

over the claims of any non-owner victims whose claims are 

recognized under this section.

(a) Remission procedure for victims.

(1) Where to file. Persons seeking remission as victims 

shall file petitions for remission with the appropriate deciding 

official as described in §§ 9.3(e) (administrative forfeiture) or 

9.4(e) (judicial forfeiture).

(2) Time of decision. The deciding official or his designee 

as described in § 9.1(b) may consider petitions filed by persons 

claiming eligibility for remission as victims at any time prior 

to the disposal of the forfeited property in accordance with law.

(3) Request for reconsideration. Persons denied remission 

under this section may request reconsideration of the denial, 

in accordance with §§ 9.3(j) (administrative forfeiture) or 

9.4(k) (judicial forfeiture).

(b) Qualification to file. A victim, as defined in § 9.2, may 

be granted remission, if in addition to complying with the 

other applicable provisions of § 9.8, the victim satisfactorily 

demonstrates that:

(1) A pecuniary loss of a specific amount has been directly 

caused by the criminal offense, or related offense, that was the 

underlying basis for the forfeiture, and that the loss is supported 

by documentary evidence including invoices and receipts;

(2) The pecuniary loss is the direct result of the illegal 

acts and is not the result of otherwise lawful acts that were 

committed in the course of a criminal offense;

(3) The victim did not knowingly contribute to, participate 

in, benefit from, or act in a willfully blind manner towards 

the commission of the offense, or related offense, that was 

the underlying basis of the forfeiture;

(4) The victim has not in fact been compensated for the 

wrongful loss of the property by the perpetrator or others; and

(5) The victim does not have recourse reasonably available 

to other assets from which to obtain compensation for the 

wrongful loss of the property.

(c) Pecuniary loss. The amount of the pecuniary loss 

suffered by a victim for which remission may be granted 

is limited to the fair market value of the property of which 

the victim was deprived as of the date of the occurrence of 

the loss. No allowance shall be made for interest forgone 

or for collateral expenses incurred to recover lost property 

or to seek other recompense.
146 • Asset Forfeiture Statutes

28 C.F.R. § 9.9 

(d) Torts. A tort associated with illegal activity that formed the 

basis for the forfeiture shall not be a basis for remission, unless 

it constitutes the illegal activity itself, nor shall remission be 

granted for physical injuries to a petitioner or for damage to 

a petitioner’s property.

(e) Denial of petition. In the exercise of his or her discretion, 

the ruling official may decline to grant remission where:

(1) There is substantial difficulty in calculating the 

pecuniary loss incurred by the victim or victims;

(2) The amount of the remission, if granted, would be 

small compared with the amount of expenses incurred by the 

Government in determining whether to grant remission; or

(3) The total number of victims is large and the monetary 

amount of the remission so small as to make its granting 

impractical.

(f) Pro rata basis. In granting remission to multiple victims 

pursuant to this section, the ruling official should generally 

grant remission on a pro rata basis to recognized victims when 

petitions cannot be granted in full due to the limited value 

of the forfeited property. However, the ruling official may 

consider the following factors, among others, in establishing 

appropriate priorities in individual cases:

(1) The specificity and reliability of the evidence 

establishing a loss;

(2) The fact that a particular victim is suffering an extreme 

financial hardship;

(3) The fact that a particular victim has cooperated with 

the Government in the investigation related to the forfeiture 

or to a related prosecution or civil action; and

(4) In the case of petitions filed by multiple victims of 

related offenses, the fact that a particular victim is a victim 

of the offense underlying the forfeiture.

(g) Reimbursement. Any petitioner granted remission 

pursuant to this part shall reimburse the Assets Forfeiture 

Fund for the amount received to the extent the individual later 

receives compensation for the loss of the property from any 

other source. The petitioner shall surrender the reimbursement 

upon payment from any secondary source.

(h) Claims of financial institution regulatory agencies. In cases 

involving property forfeitable under 18 U.S.C. 981(a) (1)(C) or 

(a)(1)(D), the ruling official may decline to grant a petition filed 

by a petitioner in whole or in part due to the lack of sufficient 

forfeitable funds to satisfy both the petition and claims of the 

financial institution regulatory agencies pursuant to 18 U.S.C. 

981(e)(3) or (7). Generally, claims of financial institution 

regulatory agencies pursuant to 18 U.S.C. 981(e) (3) or (7) 

shall take priority over claims of victims.

(i) Amount of remission. Consistent with the Assets Forfeiture 

Fund statute (28 U.S.C. 524(c)), the amount of remission 

shall not exceed the victim’s share of the net proceeds of the 

forfeitures associated with the activity that caused the victim’s 

loss. The calculation of net proceeds includes, but is not 

limited to, the deduction of allowable government expenses 

and valid third-party claims.

Amended: eff. Oct. 12, 2012.

28 C.F.R. § 9.9 Miscellaneous provisions.

(a) Priority of payment. Except where otherwise provided 

in this part, costs incurred by the USMS and other agencies 

participating in the forfeiture that were incident to the forfeiture, 

sale, or other disposition of the property shall be deducted 

from the amount available for remission or mitigation. Such 

costs include, but are not limited to, court costs, storage costs, 

brokerage and other sales-related costs, the amount of any liens 

and associated costs paid by the Government on the property, 

costs incurred in paying the ordinary and necessary expenses 

of a business seized for forfeiture, awards for information as 

authorized by statute, expenses of trustees or other assistants 

pursuant to paragraph (c) of this section, investigative or 

prosecutive costs specially incurred incident to the particular 

forfeiture, and costs incurred incident to the processing of the 

petition(s) for remission or mitigation. The remaining balance 

shall be available for remission or mitigation. The ruling 

official shall direct the distribution of the remaining balance 

in the following order of priority, except that the ruling official 

may exercise discretion in determining the priority between 

petitioners belonging to classes described in paragraphs (a)(3) 

and (4) of this section in exceptional circumstances:

(1) Owners;

(2) Lienholders;

(3) Federal financial institution regulatory agencies 

(pursuant to paragraph (e) of this section), not constituting 

owners or lienholders; and

(4) Victims not constituting owners or lienholders 

(pursuant to § 9.8).

(b) Sale or disposition of property prior to ruling. If forfeited 

property has been sold or otherwise disposed of prior to a 

ruling, the ruling official may grant relief in the form of a 

monetary amount. The amount realized by the sale of the 

property is presumed to be the value of the property. Monetary 

relief shall not be greater than the appraised value of the 

property at the time of seizure and shall not exceed the amount 

realized from the sale or other disposition. The proceeds of 

the sale shall be distributed as follows:
Asset Forfeiture Statutes • 147

28 C.F.R. § 9.9

(1) Payment of the Government’s expenses incurred 

incident to the forfeiture and sale, including court costs and 

storage charges, if any;

(2) Payment to the petitioner of an amount up to his or her 

interest in the property;

(3) Payment to the Assets Forfeiture Fund of all other costs 

and expenses incident to the forfeiture;

(4) In the case of victims, payment of any amount up to 

the amount of his or her loss; and

(5) Payment of the balance remaining, if any, to the Assets 

Forfeiture Fund.

(c) Trustees and other assistants. In the exercise of his or her 

discretion, the ruling official, with the approval of the Asset 

Forfeiture and Money Laundering Section, may use the 

services of a trustee, other government official, or appointed 

contractors to notify potential petitioners, process petitions, 

and make recommendations to the ruling official on the 

distribution of property to petitioners. The expense for such 

assistance shall be paid out of the forfeited funds.

(d) Other agencies of the United States. Where another agency 

of the United States is entitled to remission or mitigation of 

forfeited assets because of an interest that is recognizable 

under this part or is eligible for such transfer pursuant to 

18 U.S.C. 981(e)(6), such agency shall request the transfer 

in writing, in addition to complying with any applicable 

provisions of §§ 9.3 through 9.5. The decision to make such 

transfer shall be made in writing by the ruling official.

(e) Financial institution regulatory agencies. A ruling official 

may direct the transfer of property under 18 U.S.C. 981(e) to 

certain federal financial institution regulatory agencies or an 

entity acting on their behalf, upon receipt of a written request, 

in lieu of ruling on a petition for remission or mitigation.

(f) Transfers to foreign governments. A ruling official may 

decline to grant remission to any petitioner other than an 

owner or lienholder so that forfeited assets may be transferred 

to a foreign government pursuant to 18 U.S.C. 981(i)(1), 

19 U.S.C. 1616a(c)(2), or 21 U.S.C. 881(e)(1)(E).

(g) Filing by attorneys.

(1) A petition for remission or mitigation may be filed by 

a petitioner or by his or her attorney or legal guardian. If an 

attorney files on behalf of the petitioner, the petition must 

include a signed and sworn statement by the client-petitioner 

stating that:

(i) The attorney has the authority to represent the 

petitioner in this proceeding;

(ii) The petitioner has fully reviewed the petition; and

(iii) The petition is truthful and accurate in every respect.

(2) Verbal notification of representation is not acceptable. 

Responses and notification of rulings shall not be sent to an 

attorney claiming to represent a petitioner unless a written 

notice of representation is filed. No extensions of time shall 

be granted due to delays in submission of the notice of 

representation.

(h) Consolidated petitions. At the discretion of the ruling 

official in individual cases, a petition may be filed by one 

petitioner on behalf of other petitioners, provided the petitions 

are based on similar underlying facts, and the petitioner who 

files the petition has written authority to do so on behalf of the 

other petitioners. This authority must be either expressed in 

documents giving the petitioner the authority to file petitions 

for remission, or reasonably implied from documents giving 

the petitioner express authority to file claims or lawsuits 

related to the course of conduct in question on behalf of these 

petitioners. An insurer or an administrator of an employee 

benefit plan, for example, which itself has standing to file a 

petition as a “victim” within the meaning of § 9.2, may also 

file a petition on behalf of its insured or plan beneficiaries 

for any claims they may have based on co-payments made 

to the perpetrator of the offense underlying the forfeiture or 

the perpetrator of a “related offense” within the meaning of 

§ 9.2, if the authority to file claims or lawsuits is contained in 

the document or documents establishing the plan. Where such 

a petition is filed, any amounts granted as a remission must 

be transferred to the other petitioners, not the party filing the 

petition; although, in his or her discretion, the ruling official 

may use the actual petitioner as an intermediary for transferring 

the amounts authorized as a remission to the other petitioners.

Amended: eff. Oct. 12, 2012.
148 • Asset Forfeiture Statutes

Rule 26 

FEDERAL RULES OF CIVIL 

PROCEDURE

Rule 26. Duty to Disclose; General Provisions 

Governing Discovery.

(a) Required Disclosures.

(1) Initial Disclosure.

(A) In General. Except as exempted by Rule 26(a)(1)

(B) or as otherwise stipulated or ordered by the court, a 

party must, without awaiting a discovery request, provide 

to the other parties:

(i) the name and, if known, the address and 

telephone number of each individual likely to have 

discoverable information—along with the subjects of 

that information—that the disclosing party may use to 

support its claims or defenses, unless the use would be 

solely for impeachment;

(ii) a copy—or a description by category and 

location—of all documents, electronically stored 

information, and tangible things that the disclosing 

party has in its possession, custody, or control and may 

use to support its claims or defenses, unless the use 

would be solely for impeachment;

(iii) a computation of each category of damages 

claimed by the disclosing party—who must also make 

available for inspection and copying as under Rule 34 

the documents or other evidentiary material, unless 

privileged or protected from disclosure, on which each 

computation is based, including materials bearing on 

the nature and extent of injuries suffered; and

(iv) for inspection and copying as under Rule 34, 

any insurance agreement under which an insurance 

business may be liable to satisfy all or part of a possible 

judgment in the action or to indemnify or reimburse for 

payments made to satisfy the judgment.

(B) Proceedings Exempt from Initial Disclosure. The 

following proceedings are exempt from initial disclosure:

(i) an action for review on an administrative record;

(ii) a forfeiture action in rem arising from a federal 

statute;

(iii) a petition for habeas corpus or any other 

proceeding to challenge a criminal conviction or 

sentence;

(iv) an action brought without an attorney by a 

person in the custody of the United States, a state, or a 

state subdivision;

(v) an action to enforce or quash an administrative 

summons or subpoena;

(vi) an action by the United States to recover benefit 

payments;

(vii) an action by the United States to collect on a 

student loan guaranteed by the United States;

(viii) a proceeding ancillary to a proceeding in 

another court; and

(ix) an action to enforce an arbitration award.

(C) Time for Initial Disclosures—In General. A party 

must make the initial disclosures at or within 14 days 

after the parties’ Rule 26(f) conference unless a different 

time is set by stipulation or court order, or unless a party 

objects during the conference that initial disclosures are 

not appropriate in this action and states the objection in 

the proposed discovery plan. In ruling on the objection, 

the court must determine what disclosures, if any, are to 

be made and must set the time for disclosure.

(D) Time for Initial Disclosures—For Parties Served 

or Joined Later. A party that is first served or otherwise 

joined after the Rule 26(f) conference must make the initial 

disclosures within 30 days after being served or joined, 

unless a different time is set by stipulation or court order.

(E) Basis for Initial Disclosure; Unacceptable Excuses. 

A party must make its initial disclosures based on the 

information then reasonably available to it. A party is 

not excused from making its disclosures because it has 

not fully investigated the case or because it challenges 

the sufficiency of another party’s disclosures or because 

another party has not made its disclosures.

(2) Disclosure of Expert Testimony.

(A) In General. In addition to the disclosures required 

by Rule 26(a)(1), a party must disclose to the other parties 

the identity of any witness it may use at trial to present 

evidence under Federal Rule of Evidence 702, 703, or 705.

(B) Witnesses Who Must Provide a Written Report. 

Unless otherwise stipulated or ordered by the court, this 

disclosure must be accompanied by a written report—

prepared and signed by the witness—if the witness is one 

retained or specially employed to provide expert testimony 

in the case or one whose duties as the party’s employee 

regularly involve giving expert testimony. The report 

must contain:

(i) a complete statement of all opinions the witness 

will express and the basis and reasons for them;

(ii) the facts or data considered by the witness in 

forming them;
Asset Forfeiture Statutes • 149

Rule 26

(iii) any exhibits that will be used to summarize or 

support them;

(iv) the witness’s qualifications, including a list of all 

publications authored in the previous 10 years;

(v) a list of all other cases in which, during the 

previous 4 years, the witness testified as an expert at 

trial or by deposition; and

(vi) a statement of the compensation to be paid for 

the study and testimony in the case.

(C) Witnesses Who Do Not Provide a Written Report. 

Unless otherwise stipulated or ordered by the court, if the 

witness is not required to provide a written report, this 

disclosure must state:

(i) the subject matter on which the witness is 

expected to present evidence under Federal Rule of 

Evidence 702, 703, or 705; and

(ii) a summary of the facts and opinions to which 

the witness is expected to testify.

(D) Time to Disclose Expert Testimony. A party must 

make these disclosures at the times and in the sequence 

that the court orders. Absent a stipulation or a court order, 

the disclosures must be made:

(i) at least 90 days before the date set for trial or for 

the case to be ready for trial; or

(ii) if the evidence is intended solely to contradict 

or rebut evidence on the same subject matter identified 

by another party under Rule 26(a)(2)(B) or (C), within 

30 days after the other party’s disclosure.

(E) Supplementing the Disclosure. The parties must 

supplement these disclosures when required under Rule 

26(e).

(3) Pretrial Disclosures.

(A) In General. In addition to the disclosures required 

by Rule 26(a)(1) and (2), a party must provide to the other 

parties and promptly file the following information about 

the evidence that it may present at trial other than solely 

for impeachment:

(i) the name and, if not previously provided, the 

address and telephone number of each witness—

separately identifying those the party expects to present 

and those it may call if the need arises;

(ii) the designation of those witnesses whose 

testimony the party expects to present by deposition 

and, if not taken stenographically, a transcript of the 

pertinent parts of the deposition; and

(iii) an identification of each document or other 

exhibit, including summaries of other evidence—

separately identifying those items the party expects to 

offer and those it may offer if the need arises.

(B) Time for Pretrial Disclosures; Objections. Unless 

the court orders otherwise, these disclosures must be made 

at least 30 days before trial. Within 14 days after they are 

made, unless the court sets a different time, a party may 

serve and promptly file a list of the following objections: 

any objections to the use under Rule 32(a) of a deposition 

designated by another party under Rule 26(a)(3)(A)(ii); and 

any objection, together with the grounds for it, that may 

be made to the admissibility of materials identified under 

Rule 26(a)(3)(A)(iii). An objection not so made—except 

for one under Federal Rule of Evidence 402 or 403—is 

waived unless excused by the court for good cause.

(4) Form of Disclosures. Unless the court orders otherwise, 

all disclosures under Rule 26(a) must be in writing, signed, 

and served.

(b) Discovery Scope and Limits.

(1) Scope in General. Unless otherwise limited by court 

order, the scope of discovery is as follows: Parties may obtain 

discovery regarding any nonprivileged matter that is relevant 

to any party’s claim or defense—including the existence, 

description, nature, custody, condition, and location of any 

documents or other tangible things and the identity and 

location of persons who know of any discoverable matter. 

For good cause, the court may order discovery of any matter 

relevant to the subject matter involved in the action. Relevant 

information need not be admissible at the trial if the discovery 

appears reasonably calculated to lead to the discovery of 

admissible evidence. All discovery is subject to the limitations 

imposed by Rule 26(b)(2)(C).

(2) Limitations on Frequency and Extent.

(A) When Permitted. By order, the court may alter the 

limits in these rules on the number of depositions and 

interrogatories or on the length of depositions under Rule 

30. By order or local rule, the court may also limit the 

number of requests under Rule 36.

(B) Specific Limitations on Electronically Stored 

Information. A party need not provide discovery of 

electronically stored information from sources that the 

party identifies as not reasonably accessible because of 

undue burden or cost. On motion to compel discovery or 

for a protective order, the party from whom discovery is 

sought must show that the information is not reasonably 

accessible because of undue burden or cost. If that showing 

is made, the court may nonetheless order discovery from 

such sources if the requesting party shows good cause, 
150 • Asset Forfeiture Statutes

Rule 26 

considering the limitations of Rule 26(b)(2)(C). The court 

may specify conditions for the discovery.

(C) When Required. On motion or on its own, the court 

must limit the frequency or extent of discovery otherwise 

allowed by these rules or by local rule if it determines that:

(i) the discovery sought is unreasonably cumulative 

or duplicative, or can be obtained from some other 

source that is more convenient, less burdensome, or 

less expensive;

(ii) the party seeking discovery has had ample 

opportunity to obtain the information by discovery in 

the action; or

(iii) the burden or expense of the proposed discovery 

outweighs its likely benefit, considering the needs of the 

case, the amount in controversy, the parties’ resources, 

the importance of the issues at stake in the action, and 

the importance of the discovery in resolving the issues.

(3) Trial Preparation: Materials.

(A) Documents and Tangible Things. Ordinarily, a party 

may not discover documents and tangible things that are 

prepared in anticipation of litigation or for trial by or for 

another party or its representative (including the other 

party’s attorney, consultant, surety, indemnitor, insurer, 

or agent). But, subject to Rule 26(b)(4), those materials 

may be discovered if:

(i) they are otherwise discoverable under Rule 26(b)

(1); and

(ii) the party shows that it has substantial need for 

the materials to prepare its case and cannot, without 

undue hardship, obtain their substantial equivalent by 

other means.

(B) Protection Against Disclosure. If the court orders 

discovery of those materials, it must protect against 

disclosure of the mental impressions, conclusions, 

opinions, or legal theories of a party’s attorney or other 

representative concerning the litigation.

(C) Previous Statement. Any party or other person may, 

on request and without the required showing, obtain the 

person’s own previous statement about the action or its 

subject matter. If the request is refused, the person may 

move for a court order, and Rule 37(a)(5) applies to the 

award of expenses. A previous statement is either:

(i) a written statement that the person has signed or 

otherwise adopted or approved; or

(ii) a contemporaneous stenographic, mechanical, 

electrical, or other recording—or a transcription of 

it—that recites substantially verbatim the person’s 

oral statement.

(4) Trial Preparation: Experts.

(A) Deposition of an Expert Who May Testify. A party 

may depose any person who has been identified as an 

expert whose opinions may be presented at trial. If Rule 

26(a)(2)(B) requires a report from the expert, the deposition 

may be conducted only after the report is provided.

(B) Trial-Preparation Protection for Draft Reports or 

Disclosures. Rules 26(b)(3)(A) and (B) protect drafts of 

any report or disclosure required under Rule 26(a)(2), 

regardless of the form in which the draft is recorded.

(C) Trial-Preparation Protection for Communications 

Between a Party’s Attorney and Expert Witnesses. Rules 

26(b)(3)(A) and (B) protect communications between 

the party’s attorney and any witness required to provide 

a report under Rule 26(a)(2)(B), regardless of the form 

of the communications, except to the extent that the 

communications:

(i) relate to compensation for the expert’s study or 

testimony;

(ii) identify facts or data that the party’s attorney 

provided and that the expert considered in forming the 

opinions to be expressed; or

(iii) identify assumptions that the party’s attorney 

provided and that the expert relied on in forming the 

opinions to be expressed.

(D) Expert Employed Only for Trial Preparation. 

Ordinarily, a party may not, by interrogatories or 

deposition, discover facts known or opinions held by an 

expert who has been retained or specially employed by 

another party in anticipation of litigation or to prepare for 

trial and who is not expected to be called as a witness at 

trial. But a party may do so only:

(i) as provided in Rule 35(b); or

(ii) on showing exceptional circumstances under 

which it is impracticable for the party to obtain facts or 

opinions on the same subject by other means.

(E) Payment. Unless manifest injustice would result, 

the court must require that the party seeking discovery:

(i) pay the expert a reasonable fee for time spent 

in responding to discovery under Rule 26(b)(4)(A) or 

(D); and

(ii) for discovery under (D), also pay the other party 

a fair portion of the fees and expenses it reasonably 

incurred in obtaining the expert’s facts and opinions.

(5) Claiming Privilege or Protecting Trial-Preparation 

Materials.
Asset Forfeiture Statutes • 151

Rule 26

(A) Information Withheld. When a party withholds 

information otherwise discoverable by claiming that the 

information is privileged or subject to protection as trialpreparation material, the party must:

(i) expressly make the claim; and

(ii) describe the nature of the documents, 

communications, or tangible things not produced 

or disclosed—and do so in a manner that, without 

revealing information itself privileged or protected, 

will enable other parties to assess the claim.

(B) Information Produced. If information produced in 

discovery is subject to a claim of privilege or of protection 

as trial-preparation material, the party making the claim 

may notify any party that received the information of 

the claim and the basis for it. After being notified, a 

party must promptly return, sequester, or destroy the 

specified information and any copies it has; must not use 

or disclose the information until the claim is resolved; 

must take reasonable steps to retrieve the information 

if the party disclosed it before being notified; and may 

promptly present the information to the court under seal 

for a determination of the claim. The producing party must 

preserve the information until the claim is resolved.

(c) Protective Orders.

(1) In General. A party or any person from whom discovery 

is sought may move for a protective order in the court where 

the action is pending—or as an alternative on matters relating 

to a deposition, in the court for the district where the deposition 

will be taken. The motion must include a certification that the 

movant has in good faith conferred or attempted to confer with 

other affected parties in an effort to resolve the dispute without 

court action. The court may, for good cause, issue an order 

to protect a party or person from annoyance, embarrassment, 

oppression, or undue burden or expense, including one or 

more of the following:

(A) forbidding the disclosure or discovery;

(B) specifying terms, including time and place, for the 

disclosure or discovery;

(C) prescribing a discovery method other than the one 

selected by the party seeking discovery;

(D) forbidding inquiry into certain matters, or limiting 

the scope of disclosure or discovery to certain matters;

(E) designating the persons who may be present while 

the discovery is conducted;

(F) requiring that a deposition be sealed and opened 

only on court order;

(G) requiring that a trade secret or other confidential 

research, development, or commercial information not be 

revealed or be revealed only in a specified way; and

(H) requiring that the parties simultaneously file 

specified documents or information in sealed envelopes, 

to be opened as the court directs.

(2) Ordering Discovery. If a motion for a protective order 

is wholly or partly denied, the court may, on just terms, order 

that any party or person provide or permit discovery.

(3) Awarding Expenses. Rule 37(a)(5) applies to the award 

of expenses.

(d) Timing and Sequence of Discovery.

(1) Timing. A party may not seek discovery from any 

source before the parties have conferred as required by Rule 

26(f), except in a proceeding exempted from initial disclosure 

under Rule 26(a)(1)(B), or when authorized by these rules, 

by stipulation, or by court order.

(2) Sequence. Unless, on motion, the court orders 

otherwise for the parties’ and witnesses’ convenience and in 

the interests of justice:

(A) methods of discovery may be used in any sequence; 

and

(B) discovery by one party does not require any other 

party to delay its discovery.

(e) Supplementing Disclosures and Responses.

(1) In General. A party who has made a disclosure under 

Rule 26(a) —or who has responded to an interrogatory, request 

for production, or request for admission—must supplement 

or correct its disclosure or response:

(A) in a timely manner if the party learns that in some 

material respect the disclosure or response is incomplete 

or incorrect, and if the additional or corrective information 

has not otherwise been made known to the other parties 

during the discovery process or in writing; or

(B) as ordered by the court.

(2) Expert Witness. For an expert whose report must 

be disclosed under Rule 26(a)(2)(B), the party’s duty to 

supplement extends both to information included in the report 

and to information given during the expert’s deposition. Any 

additions or changes to this information must be disclosed 

by the time the party’s pretrial disclosures under Rule 26(a)

(3) are due.

(f) Conference of the Parties; Planning for Discovery.

(1) Conference Timing. Except in a proceeding exempted 

from initial disclosure under Rule 26(a)(1)(B) or when the 

court orders otherwise, the parties must confer as soon as 
152 • Asset Forfeiture Statutes

Rule 26 

practicable—and in any event at least 21 days before a 

scheduling conference is to be held or a scheduling order is 

due under Rule 16(b).

(2) Conference Content; Parties’ Responsibilities. In 

conferring, the parties must consider the nature and basis of 

their claims and defenses and the possibilities for promptly 

settling or resolving the case; make or arrange for the 

disclosures required by Rule 26(a)(1); discuss any issues about 

preserving discoverable information; and develop a proposed 

discovery plan. The attorneys of record and all unrepresented 

parties that have appeared in the case are jointly responsible 

for arranging the conference, for attempting in good faith to 

agree on the proposed discovery plan, and for submitting to 

the court within 14 days after the conference a written report 

outlining the plan. The court may order the parties or attorneys 

to attend the conference in person.

(3) Discovery Plan. A discovery plan must state the parties’ 

views and proposals on:

(A) what changes should be made in the timing, form, 

or requirement for disclosures under Rule 26(a), including 

a statement of when initial disclosures were made or will 

be made;

(B) the subjects on which discovery may be needed, 

when discovery should be completed, and whether 

discovery should be conducted in phases or be limited to 

or focused on particular issues;

(C) any issues about disclosure or discovery of 

electronically stored information, including the form or 

forms in which it should be produced;

(D) any issues about claims of privilege or of 

protection as trial-preparation materials, including—if 

the parties agree on a procedure to assert these claims 

after production—whether to ask the court to include their 

agreement in an order;

(E) what changes should be made in the limitations on 

discovery imposed under these rules or by local rule, and 

what other limitations should be imposed; and

(F) any other orders that the court should issue under 

Rule 26(c) or under Rule 16(b) and (c).

(4) Expedited Schedule. If necessary to comply with its 

expedited schedule for Rule 16(b) conferences, a court may 

by local rule:

(A) require the parties’ conference to occur less than 

21 days before the scheduling conference is held or a 

scheduling order is due under Rule 16(b); and

(B) require the written report outlining the discovery 

plan to be filed less than 14 days after the parties’ 

conference, or excuse the parties from submitting a written 

report and permit them to report orally on their discovery 

plan at the Rule 16(b) conference.

(g) Signing Disclosures and Discovery Requests, Responses, 

and Objections.

(1) Signature Required; Effect of Signature. Every 

disclosure under Rule 26(a)(1) or (a)(3) and every discovery 

request, response, or objection must be signed by at least 

one attorney of record in the attorney’s own name—or by 

the party personally, if unrepresented—and must state the 

signer’s address, e-mail address, and telephone number. By 

signing, an attorney or party certifies that to the best of the 

person’s knowledge, information, and belief formed after a 

reasonable inquiry:

(A) with respect to a disclosure, it is complete and 

correct as of the time it is made; and

(B) with respect to a discovery request, response, or 

objection, it is:

(i) consistent with these rules and warranted 

by existing law or by a nonfrivolous argument for 

extending, modifying, or reversing existing law, or for 

establishing new law;

(ii) not interposed for any improper purpose, such 

as to harass, cause unnecessary delay, or needlessly 

increase the cost of litigation; and

(iii) neither unreasonable nor unduly burdensome 

or expensive, considering the needs of the case, prior 

discovery in the case, the amount in controversy, and 

the importance of the issues at stake in the action.

(2) Failure to Sign. Other parties have no duty to act on 

an unsigned disclosure, request, response, or objection until 

it is signed, and the court must strike it unless a signature is 

promptly supplied after the omission is called to the attorney’s 

or party’s attention.

(3) Sanction for Improper Certification. If a certification 

violates this rule without substantial justification, the court, on 

motion or on its own, must impose an appropriate sanction on 

the signer, the party on whose behalf the signer was acting, or 

both. The sanction may include an order to pay the reasonable 

expenses, including attorney’s fees, caused by the violation.

Amended: eff. Dec. 1, 2010.
Asset Forfeiture Statutes • 153

Rule 1

FEDERAL RULES OF 

CRIMINAL PROCEDURE

Rule 1. Scope; definitions.

(a) Scope.

(1) In General. These rules govern the procedure in all 

criminal proceedings in the United States district courts, the 

United States courts of appeals, and the Supreme Court of 

the United States.

(2) State or Local Judicial Officer. When a rule so states, it 

applies to a proceeding before a state or local judicial officer.

(3) Territorial Courts. These rules also govern the 

procedure in all criminal proceedings in the following courts:

(A) the district court of Guam;

(B) the district court for the Northern Mariana Islands, 

except as otherwise provided by law; and

(C) the district court of the Virgin Islands, except 

that the prosecution of offenses in that court must be by 

indictment or information as otherwise provided by law.

(4) Removed Proceedings. Although these rules govern 

all proceedings after removal from a state court, state law 

governs a dismissal by the prosecution.

(5) Excluded Proceedings. Proceedings not governed by 

these rules include:

(A) the extradition and rendition of a fugitive;

(B) a civil property forfeiture for violating a federal 

statute;

(C) the collection of a fine or penalty;

(D) a proceeding under a statute governing juvenile 

delinquency to the extent the procedure is inconsistent 

with the statute, unless Rule 20(d) provides otherwise;

(E) a dispute between seamen under 22 U.S.C. §§ 

256-258; and

(F) a proceeding against a witness in a foreign country 

under 28 U.S.C. § 1784.

(b) Definitions. The following definitions apply to these 

rules:

(1) “Attorney for the government” means:

(A) the Attorney General or an authorized assistant;

(B) a United States attorney or an authorized assistant;

(C) when applicable to cases arising under Guam law, 

the Guam Attorney General or other person whom Guam 

law authorizes to act in the matter; and

(D) any other attorney authorized by law to conduct 

proceedings under these rules as a prosecutor.

(2) “Court” means a federal judge performing functions 

authorized by law.

(3) “Federal judge” means:

(A) a justice or judge of the United States as these 

terms are defined in 28 U.S.C. § 451;

(B) a magistrate judge; and

(C) a judge confirmed by the United States Senate and 

empowered by statute in any commonwealth, territory, 

or possession to perform a function to which a particular 

rule relates.

(4) “Judge” means a federal judge or a state or local 

judicial officer.

(5) “Magistrate judge” means a United States magistrate 

judge as defined in 28 U.S.C. §§ 631-639.

(6) “Oath” includes an affirmation.

(7) “Organization” is defined in 18 U.S.C. § 18.

(8) “Petty offense” is defined in 18 U.S.C. § 19.

(9) “State” includes the District of Columbia, and any 

commonwealth, territory, or possession of the United States.

(10) “State or local judicial officer” means:

(A) a state or local officer authorized to act under 18 

U.S.C. § 3041; and

(B) a judicial officer empowered by statute in the 

District of Columbia or in any commonwealth, territory, 

or possession to perform a function to which a particular 

rule relates.

(11) “Telephone” means any technology for transmitting 

live electronic voice communication.

(12) “Victim” means a “crime victim” as defined in 18 

U.S.C. § 3771(e).

(c) Authority of a Justice or Judge of the United States. 

When these rules authorize a magistrate judge to act, any 

other federal judge may also act.

Amended: eff. Dec. 1, 2011. 
154 • Asset Forfeiture Statutes

Rule 11 

Rule 11. Pleas.

(a) Entering a Plea.

(1) In General. A defendant may plead not guilty, guilty, 

or (with the court’s consent) nolo contendere.

(2) Conditional Plea. With the consent of the court and 

the government, a defendant may enter a conditional plea of 

guilty or nolo contendere, reserving in writing the right to 

have an appellate court review an adverse determination of a 

specified pretrial motion. A defendant who prevails on appeal 

may then withdraw the plea.

(3) Nolo Contendere Plea. Before accepting a plea of nolo 

contendere, the court must consider the parties’ views and 

the public interest in the effective administration of justice.

(4) Failure to Enter a Plea. If a defendant refuses to enter 

a plea or if a defendant organization fails to appear, the court 

must enter a plea of not guilty.

<[Text of subdivision (b) effective until 

December 1, 2013, absent contrary 

Congressional action.]> 

(b) Considering and Accepting a Guilty or Nolo 

Contendere Plea.

(1) Advising and Questioning the Defendant. Before the 

court accepts a plea of guilty or nolo contendere, the defendant 

may be placed under oath, and the court must address the 

defendant personally in open court. During this address, the 

court must inform the defendant of, and determine that the 

defendant understands, the following:

(A) the government’s right, in a prosecution for perjury 

or false statement, to use against the defendant any 

statement that the defendant gives under oath;

(B) the right to plead not guilty, or having already so 

pleaded, to persist in that plea;

(C) the right to a jury trial;

(D) the right to be represented by counsel—and if 

necessary have the court appoint counsel—at trial and at 

every other stage of the proceeding;

(E) the right at trial to confront and cross-examine 

adverse witnesses, to be protected from compelled selfincrimination, to testify and present evidence, and to 

compel the attendance of witnesses;

(F) the defendant’s waiver of these trial rights if the 

court accepts a plea of guilty or nolo contendere;

(G) the nature of each charge to which the defendant 

is pleading;

(H) any maximum possible penalty, including 

imprisonment, fine, and term of supervised release;

(I) any mandatory minimum penalty;

(J) any applicable forfeiture;

(K) the court’s authority to order restitution;

(L) the court’s obligation to impose a special assessment;

(M) in determining a sentence, the court’s obligation 

to calculate the applicable sentencing-guideline range 

and to consider that range, possible departures under the 

Sentencing Guidelines, and other sentencing factors under 

18 U.S.C. § 3553(a); and

(N) the terms of any plea-agreement provision waiving 

the right to appeal or to collaterally attack the sentence.

(2) Ensuring That a Plea Is Voluntary. Before accepting a 

plea of guilty or nolo contendere, the court must address the 

defendant personally in open court and determine that the plea 

is voluntary and did not result from force, threats, or promises 

(other than promises in a plea agreement).

(3) Determining the Factual Basis for a Plea. Before 

entering judgment on a guilty plea, the court must determine 

that there is a factual basis for the plea.

<[Text of subdivision (b) effective 

December 1, 2013, absent contrary 

Congressional action.]> 

(b) Considering and Accepting a Guilty or Nolo 

Contendere Plea.

(1) Advising and Questioning the Defendant. Before the 

court accepts a plea of guilty or nolo contendere, the defendant 

may be placed under oath, and the court must address the 

defendant personally in open court. During this address, the 

court must inform the defendant of, and determine that the 

defendant understands, the following:

(A) the government’s right, in a prosecution for perjury 

or false statement, to use against the defendant any 

statement that the defendant gives under oath;

(B) the right to plead not guilty, or having already so 

pleaded, to persist in that plea;

(C) the right to a jury trial;

(D) the right to be represented by counsel—and if 

necessary have the court appoint counsel—at trial and at 

every other stage of the proceeding;

(E) the right at trial to confront and cross-examine 

adverse witnesses, to be protected from compelled selfincrimination, to testify and present evidence, and to 

compel the attendance of witnesses;
Asset Forfeiture Statutes • 155

Rule 11

(F) the defendant’s waiver of these trial rights if the 

court accepts a plea of guilty or nolo contendere;

(G) the nature of each charge to which the defendant 

is pleading;

(H) any maximum possible penalty, including 

imprisonment, fine, and term of supervised release;

(I) any mandatory minimum penalty;

(J) any applicable forfeiture;

(K) the court’s authority to order restitution;

(L) the court’s obligation to impose a special assessment;

(M) in determining a sentence, the court’s obligation 

to calculate the applicable sentencing-guideline range 

and to consider that range, possible departures under the 

Sentencing Guidelines, and other sentencing factors under 

18 U.S.C. § 3553(a);

(N) the terms of any plea-agreement provision waiving 

the right to appeal or to collaterally attack the sentence; and

(O) that, if convicted, a defendant who is not a United 

States citizen may be removed from the United States, 

denied citizenship, and denied admission to the United 

States in the future.

(2) Ensuring That a Plea Is Voluntary. Before accepting a 

plea of guilty or nolo contendere, the court must address the 

defendant personally in open court and determine that the plea 

is voluntary and did not result from force, threats, or promises 

(other than promises in a plea agreement).

(3) Determining the Factual Basis for a Plea. Before 

entering judgment on a guilty plea, the court must determine 

that there is a factual basis for the plea.

(c) Plea Agreement Procedure.

(1) In General. An attorney for the government and the 

defendant’s attorney, or the defendant when proceeding pro 

se, may discuss and reach a plea agreement. The court must 

not participate in these discussions. If the defendant pleads 

guilty or nolo contendere to either a charged offense or a 

lesser or related offense, the plea agreement may specify that 

an attorney for the government will:

(A) not bring, or will move to dismiss, other charges;

(B) recommend, or agree not to oppose the defendant’s 

request, that a particular sentence or sentencing range is 

appropriate or that a particular provision of the Sentencing 

Guidelines, or policy statement, or sentencing factor does 

or does not apply (such a recommendation or request does 

not bind the court); or

(C) agree that a specific sentence or sentencing 

range is the appropriate disposition of the case, or that 

a particular provision of the Sentencing Guidelines, or 

policy statement, or sentencing factor does or does not 

apply (such a recommendation or request binds the court 

once the court accepts the plea agreement).

(2) Disclosing a Plea Agreement. The parties must disclose 

the plea agreement in open court when the plea is offered, 

unless the court for good cause allows the parties to disclose 

the plea agreement in camera.

(3) Judicial Consideration of a Plea Agreement.

(A) To the extent the plea agreement is of the type 

specified in Rule 11(c)(1)(A) or (C), the court may accept 

the agreement, reject it, or defer a decision until the court 

has reviewed the presentence report.

(B) To the extent the plea agreement is of the type 

specified in Rule 11(c)(1)(B), the court must advise the 

defendant that the defendant has no right to withdraw the 

plea if the court does not follow the recommendation or 

request.

(4) Accepting a Plea Agreement. If the court accepts the 

plea agreement, it must inform the defendant that to the extent 

the plea agreement is of the type specified in Rule 11(c)(1)(A) 

or (C), the agreed disposition will be included in the judgment.

(5) Rejecting a Plea Agreement. If the court rejects a plea 

agreement containing provisions of the type specified in 

Rule 11(c)(1)(A) or (C), the court must do the following on 

the record and in open court (or, for good cause, in camera):

(A) inform the parties that the court rejects the plea 

agreement;

(B) advise the defendant personally that the court is 

not required to follow the plea agreement and give the 

defendant an opportunity to withdraw the plea; and

(C) advise the defendant personally that if the plea 

is not withdrawn, the court may dispose of the case less 

favorably toward the defendant than the plea agreement 

contemplated.

(d) Withdrawing a Guilty or Nolo Contendere Plea. A 

defendant may withdraw a plea of guilty or nolo contendere:

(1) before the court accepts the plea, for any reason or no 

reason; or

(2) after the court accepts the plea, but before it imposes 

sentence if:

(A) the court rejects a plea agreement under 

Rule 11(c) (5); or

(B) the defendant can show a fair and just reason for 

requesting the withdrawal.
156 • Asset Forfeiture Statutes

Rule 32.2 

(e) Finality of a Guilty or Nolo Contendere Plea. After the 

court imposes sentence, the defendant may not withdraw a 

plea of guilty or nolo contendere, and the plea may be set 

aside only on direct appeal or collateral attack.

(f) Admissibility or Inadmissibility of a Plea, Plea Discussions, 

and Related Statements. The admissibility or inadmissibility 

of a plea, a plea discussion, and any related statement is 

governed by Federal Rule of Evidence 410.

(g) Recording the Proceedings. The proceedings during 

which the defendant enters a plea must be recorded by a court 

reporter or by a suitable recording device. If there is a guilty 

plea or a nolo contendere plea, the record must include the 

inquiries and advice to the defendant required under Rule 

11(b) and (c).

(h) Harmless Error. A variance from the requirements of this 

rule is harmless error if it does not affect substantial rights.

Amended: Apr. 16, 2013, eff. Dec. 1, 2013, absent contrary 

Congressional action. 

Rule 32.2. Criminal Forfeiture.

(a) Notice to the Defendant. A court must not enter a judgment 

of forfeiture in a criminal proceeding unless the indictment 

or information contains notice to the defendant that the 

government will seek the forfeiture of property as part of 

any sentence in accordance with the applicable statute. The 

notice should not be designated as a count of the indictment or 

information. The indictment or information need not identify 

the property subject to forfeiture or specify the amount of any 

forfeiture money judgment that the government seeks.

(b) Entering a Preliminary Order of Forfeiture.

(1) Forfeiture Phase of the Trial.

(A) Forfeiture Determinations. As soon as practical 

after a verdict or finding of guilty, or after a plea of 

guilty or nolo contendere is accepted, on any count in 

an indictment or information regarding which criminal 

forfeiture is sought, the court must determine what property 

is subject to forfeiture under the applicable statute. If the 

government seeks forfeiture of specific property, the court 

must determine whether the government has established 

the requisite nexus between the property and the offense. 

If the government seeks a personal money judgment, 

the court must determine the amount of money that the 

defendant will be ordered to pay.

(B) Evidence and Hearing. The court’s determination 

may be based on evidence already in the record, including 

any written plea agreement, and on any additional evidence 

or information submitted by the parties and accepted by the 

court as relevant and reliable. If the forfeiture is contested, 

on either party’s request the court must conduct a hearing 

after the verdict or finding of guilty.

(2) Preliminary Order.

(A) Contents of a Specific Order. If the court finds that 

property is subject to forfeiture, it must promptly enter a 

preliminary order of forfeiture setting forth the amount of 

any money judgment, directing the forfeiture of specific 

property, and directing the forfeiture of any substitute 

property if the government has met the statutory criteria. 

The court must enter the order without regard to any third 

party’s interest in the property. Determining whether a 

third party has such an interest must be deferred until any 

third party files a claim in an ancillary proceeding under 

Rule 32.2(c).

(B) Timing. Unless doing so is impractical, the court 

must enter the preliminary order sufficiently in advance 

of sentencing to allow the parties to suggest revisions or 

modifications before the order becomes final as to the 

defendant under Rule 32.2(b)(4).

(C) General Order. If, before sentencing, the court 

cannot identify all the specific property subject to forfeiture 

or calculate the total amount of the money judgment, the 

court may enter a forfeiture order that:

(i) lists any identified property;

(ii) describes other property in general terms; and

(iii) states that the order will be amended under 

Rule 32.2(e)(1) when additional specific property is 

identified or the amount of the money judgment has 

been calculated.

(3) Seizing Property. The entry of a preliminary order of 

forfeiture authorizes the Attorney General (or a designee) to 

seize the specific property subject to forfeiture; to conduct any 

discovery the court considers proper in identifying, locating, 

or disposing of the property; and to commence proceedings 

that comply with any statutes governing third-party rights. 

The court may include in the order of forfeiture conditions 

reasonably necessary to preserve the property’s value pending 

any appeal.

(4) Sentence and Judgment.

(A) When Final. At sentencing—or at any time before 

sentencing if the defendant consents—the preliminary 

forfeiture order becomes final as to the defendant. If the 

order directs the defendant to forfeit specific property, it 

remains preliminary as to third parties until the ancillary 

proceeding is concluded under Rule 32.2(c).
Asset Forfeiture Statutes • 157

Rule 32.2

(B) Notice and Inclusion in the Judgment. The court 

must include the forfeiture when orally announcing the 

sentence or must otherwise ensure that the defendant 

knows of the forfeiture at sentencing. The court must also 

include the forfeiture order, directly or by reference, in the 

judgment, but the court’s failure to do so may be corrected 

at any time under Rule 36.

(C) Time to Appeal. The time for the defendant or the 

government to file an appeal from the forfeiture order, or 

from the court’s failure to enter an order, begins to run when 

judgment is entered. If the court later amends or declines 

to amend a forfeiture order to include additional property 

under Rule 32.2(e), the defendant or the government may 

file an appeal regarding that property under Federal Rule 

of Appellate Procedure 4(b). The time for that appeal 

runs from the date when the order granting or denying the 

amendment becomes final.

(5) Jury Determination.

(A) Retaining the Jury. In any case tried before a jury, if 

the indictment or information states that the government is 

seeking forfeiture, the court must determine before the jury 

begins deliberating whether either party requests that the 

jury be retained to determine the forfeitability of specific 

property if it returns a guilty verdict.

(B) Special Verdict Form. If a party timely requests 

to have the jury determine forfeiture, the government 

must submit a proposed Special Verdict Form listing 

each property subject to forfeiture and asking the jury 

to determine whether the government has established 

the requisite nexus between the property and the offense 

committed by the defendant.

(6) Notice of the Forfeiture Order.

(A) Publishing and Sending Notice. If the court 

orders the forfeiture of specific property, the government 

must publish notice of the order and send notice to any 

person who reasonably appears to be a potential claimant 

with standing to contest the forfeiture in the ancillary 

proceeding.

(B) Content of the Notice. The notice must describe 

the forfeited property, state the times under the applicable 

statute when a petition contesting the forfeiture must be 

filed, and state the name and contact information for the 

government attorney to be served with the petition.

(C) Means of Publication; Exceptions to Publication 

Requirement. Publication must take place as described 

in Supplemental Rule G(4)(a)(iii) of the Federal Rules of 

Civil Procedure, and may be by any means described in 

Supplemental Rule G(4)(a)(iv). Publication is unnecessary 

if any exception in Supplemental Rule G(4)(a)(i) applies.

(D) Means of Sending the Notice. The notice may be 

sent in accordance with Supplemental Rules G(4)(b)(iii)-(v) 

of the Federal Rules of Civil Procedure.

(7) Interlocutory Sale. At any time before entry of a final 

forfeiture order, the court, in accordance with Supplemental 

Rule G(7) of the Federal Rules of Civil Procedure, may order 

the interlocutory sale of property alleged to be forfeitable.

(c) Ancillary Proceeding; Entering a Final Order of Forfeiture.

(1) In General. If, as prescribed by statute, a third party 

files a petition asserting an interest in the property to be 

forfeited, the court must conduct an ancillary proceeding, 

but no ancillary proceeding is required to the extent that the 

forfeiture consists of a money judgment.

(A) In the ancillary proceeding, the court may, on 

motion, dismiss the petition for lack of standing, for 

failure to state a claim, or for any other lawful reason. For 

purposes of the motion, the facts set forth in the petition 

are assumed to be true.

(B) After disposing of any motion filed under 

Rule 32.2(c)(1)(A) and before conducting a hearing on 

the petition, the court may permit the parties to conduct 

discovery in accordance with the Federal Rules of Civil 

Procedure if the court determines that discovery is 

necessary or desirable to resolve factual issues. When 

discovery ends, a party may move for summary judgment 

under Federal Rule of Civil Procedure 56.

(2) Entering a Final Order. When the ancillary proceeding 

ends, the court must enter a final order of forfeiture by 

amending the preliminary order as necessary to account for 

any third-party rights. If no third party files a timely petition, 

the preliminary order becomes the final order of forfeiture 

if the court finds that the defendant (or any combination 

of defendants convicted in the case) had an interest in the 

property that is forfeitable under the applicable statute. The 

defendant may not object to the entry of the final order on 

the ground that the property belongs, in whole or in part, to a 

codefendant or third party; nor may a third party object to the 

final order on the ground that the third party had an interest 

in the property.

(3) Multiple Petitions. If multiple third-party petitions 

are filed in the same case, an order dismissing or granting 

one petition is not appealable until rulings are made on all 

the petitions, unless the court determines that there is no just 

reason for delay.

(4) Ancillary Proceeding Not Part of Sentencing. An 

ancillary proceeding is not part of sentencing.

(d) Stay Pending Appeal. If a defendant appeals from a 

conviction or an order of forfeiture, the court may stay the 
158 • Asset Forfeiture Statutes

Rule 32.2 

order of forfeiture on terms appropriate to ensure that the 

property remains available pending appellate review. A stay 

does not delay the ancillary proceeding or the determination 

of a third party’s rights or interests. If the court rules in favor 

of any third party while an appeal is pending, the court 

may amend the order of forfeiture but must not transfer any 

property interest to a third party until the decision on appeal 

becomes final, unless the defendant consents in writing or 

on the record.

(e) Subsequently Located Property; Substitute Property.

(1) In General. On the government’s motion, the court may 

at any time enter an order of forfeiture or amend an existing 

order of forfeiture to include property that:

(A) is subject to forfeiture under an existing order of 

forfeiture but was located and identified after that order 

was entered; or

(B) is substitute property that qualifies for forfeiture 

under an applicable statute.

(2) Procedure. If the government shows that the property 

is subject to forfeiture under Rule 32.2(e)(1), the court must:

(A) enter an order forfeiting that property, or amend an 

existing preliminary or final order to include it; and

(B) if a third party files a petition claiming an interest 

in the property, conduct an ancillary proceeding under 

Rule 32. 2(c).

(3) Jury Trial Limited. There is no right to a jury trial under 

Rule 32. 2(e).

Amended: eff. Dec. 1, 2009.

Rule 32.2. Advisory Committee Notes.

2000 Adoption

Rule 32.2 consolidates a number of procedural rules 

governing the forfeiture of assets in a criminal case. 

Existing Rules 7(c)(2), 31(e) and 32(d)(2) are also 

amended to conform to the new rule. In addition, the 

forfeiture-related provisions of Rule 38(e) are stricken.

Subdivision (a). Subdivision (a) is derived from 

Rule 7(c) (2) which provides that notwithstanding 

statutory authority for the forfeiture of property following 

a criminal conviction, no forfeiture order may be entered 

unless the defendant was given notice of the forfeiture 

in the indictment or information. As courts have held, 

subdivision (a) is not intended to require that an itemized 

list of the property to be forfeited appear in the indictment 

or information itself. The subdivision reflects the trend 

in caselaw interpreting present Rule 7(c). Under the 

most recent cases, Rule 7(c) sets forth a requirement 

that the government give the defendant notice that it will 

be seeking forfeiture in accordance with the applicable 

statute. It does not require a substantive allegation in 

which the property subject to forfeiture, or the defendant’s 

interest in the property, must be described in detail. See 

United States v. DeFries, 129 F.3d 1293 (D.C. Cir. 1997) 

(it is not necessary to specify in either the indictment or a 

bill of particulars that the government is seeking forfeiture 

of a particular asset, such as the defendant’s salary; to 

comply with Rule 7(c), the government need only put the 

defendant on notice that it will seek to forfeit everything 

subject to forfeiture under the applicable statute, such as 

all property “acquired or maintained” as a result of a RICO 

violation). See also United States v. Moffitt, Zwerling & 

Kemler, P.C., 83 F.3d 660, 665 (4th Cir. 1996), aff’g 846 F.

Supp. 463 (E.D. Va. 1994) (Moffitt I) (indictment need 

not list each asset subject to forfeiture; under Rule 7(c), 

this can be done with bill of particulars); United States 

v. Voigt, 89 F.3d 1050 (3rd Cir. 1996) (court may amend 

order of forfeiture at any time to include substitute assets).

Subdivision (b). Subdivision (b) replaces Rule 31(e) 

which provides that the jury in a criminal case must return 

a special verdict “as to the extent of the interest or property 

subject to forfeiture.” See United States v. Saccoccia, 

58 F.3d 754 (1st Cir. 1995) (Rule 31(e) only applies to 

jury trials; no special verdict required when defendant 

waives right to jury on forfeiture issues).

One problem under Rule 31(e) concerns the scope of 

the determination that must be made prior to entering 

an order of forfeiture. This issue is the same whether the 

determination is made by the court or by the jury.

As mentioned, the current rule requires the jury to return a 

special verdict “as to the extent of the interest or property 

subject to forfeiture.” Some courts interpret this to mean 

only that the jury must answer “yes” or “no” when asked 

if the property named in the indictment is subject to 

forfeiture under the terms of the forfeiture statute—e.g.

was the property used to facilitate a drug offense? Other 

courts also ask the jury if the defendant has a legal interest 

in the forfeited property. Still other courts, including the 

Fourth Circuit, require the jury to determine the extent

of the defendant’s interest in the property vis a vis third 

parties. See United States v. Ham, 58 F.3d 78 (4th Cir. 

1995) (case remanded to the district court to impanel a 

jury to determine, in the first instance, the extent of the 

defendant’s forfeitable interest in the subject property).

The notion that the “extent” of the defendant’s interest 

must be established as part of the criminal trial is related 

to the fact that criminal forfeiture is an in personam action 
Asset Forfeiture Statutes • 159

Rule 32.2

§ 853(n)(7) and can market the property notwithstanding 

third party’s name on the deed).

Thus, the ancillary proceeding has become the forum 

for determining the extent of the defendant’s forfeitable 

interest in the property. This allows the court to conduct 

a proceeding in which all third party claimants can 

participate and which ensures that the property forfeited 

actually belongs to the defendant.

Since the enactment of the ancillary proceeding statutes, 

the requirement in Rule 31(e) that the court (or jury) 

determine the extent of the defendant’s interest in the 

property as part of the criminal trial has become an 

unnecessary anachronism that leads more often than not 

to duplication and a waste of judicial resources. There 

is no longer any reason to delay the conclusion of the 

criminal trial with a lengthy hearing over the extent of 

the defendant’s interest in property when the same issues 

will have to be litigated a second time in the ancillary 

proceeding if someone files a claim challenging the 

forfeiture. For example, in United States v. Messino, 

917 F. Supp. 1307 (N.D. Ill. 1996), the court allowed the 

defendant to call witnesses to attempt to establish that 

they, not he, were the true owners of the property. After the 

jury rejected this evidence and the property was forfeited, 

the court conducted an ancillary proceeding in which the 

same witnesses litigated their claims to the same property.

A more sensible procedure would be for the court, once 

it (or a jury) determines that property was involved in 

the criminal offense for which the defendant has been 

convicted, to order the forfeiture of whatever interest a 

defendant may have in the property without having to 

determine exactly what that interest is. If third parties 

assert that they have an interest in all or part of the 

property, those interests can be adjudicated at one time 

in the ancillary proceeding.

This approach would also address confusion that occurs 

in multi-defendant cases where it is clear that each 

defendant should forfeit whatever interest he may have in 

the property used to commit the offense, but it is not at all 

clear which defendant is the actual owner of the property. 

For example, suppose A and B are co-defendants in a drug 

and money laundering case in which the government 

seeks to forfeit property involved in the scheme that is 

held in B’s name but of which A may be the true owner. 

It makes no sense to invest the court’s time in determining 

which of the two defendants holds the interest that should 

be forfeited. Both defendants should forfeit whatever 

interest they may have. Moreover, if under the current 

rule the court were to find that A is the true owner of the 

property, then B would have the right to file a claim in the 

ancillary proceeding where he may attempt to recover the 

in which only the defendant’s interest in the property may 

be forfeited. United States v. Riley, 78 F.3d 367 (8th Cir. 

1996). When the criminal forfeiture statutes were first 

enacted in the 1970’s, it was clear that a forfeiture of 

property other than the defendant’s could not occur in a 

criminal case, but there was no mechanism designed to 

limit the forfeiture to the defendant’s interest. Accordingly, 

Rule 31(e) was drafted to make a determination of the 

“extent” of the defendant’s interest part of the verdict.

The problem is that third parties who might have an 

interest in the forfeited property are not parties to the 

criminal case. At the same time, a defendant who has no 

interest in property has no incentive, at trial, to dispute the 

government’s forfeiture allegations. Thus, it was apparent 

by the 1980’s that Rule 31(e) was an inadequate safeguard 

against the inadvertent forfeiture of property in which the 

defendant held no interest.

In 1984, Congress addressed this problem when it 

enacted a statutory scheme whereby third party interests 

in criminally forfeited property are litigated by the court 

in an ancillary proceeding following the conclusion of 

the criminal case and the entry of a preliminary order of 

forfeiture. See 21 U.S.C. § 853(n); 18 U.S.C. § 1963(1). 

Under this scheme, the court orders the forfeiture of 

the defendant’s interest in the property—whatever that 

interest may be—in the criminal case. At that point, 

the court conducts a separate proceeding in which all 

potential third party claimants are given an opportunity to 

challenge the forfeiture by asserting a superior interest in 

the property. This proceeding does not involve relitigation 

of the forfeitability of the property; its only purpose is to 

determine whether any third party has a legal interest in 

the forfeited property.

The notice provisions regarding the ancillary proceeding 

are equivalent to the notice provisions that govern civil 

forfeitures. Compare 21 U.S.C. § 853(n)(1) with 19 U.S.C. 

§ 1607(a); see United States v. Bouler, 927 F. Supp. 911 

(W.D.N.C. 1996) (civil notice rules apply to ancillary 

criminal proceedings). Notice is published and sent to 

third parties that have a potential interest. See United 

States v. BCCI Holdings (Luxembourg) S.A. (In re Petition 

of Indosuez Bank), 916 F. Supp. 1276 (D.D.C. 1996) 

(discussing steps taken by government to provide notice 

of criminal forfeiture to third parties). If no one files a 

claim, or if all claims are denied following a hearing, the 

forfeiture becomes final and the United States is deemed 

to have clear title to the property. 21 U.S.C. § 853(n) (7); 

United States v. Hentz, 1996 WL 355327 (E.D. Pa. 

June 20, 1996) (once third party fails to file a claim in 

the ancillary proceeding, government has clear title under 
160 • Asset Forfeiture Statutes

Rule 32.2 

property despite his criminal conviction. United States v. 

Real Property in Waterboro, 64 F.3d 752 (1st Cir. 1995) 

(co-defendant in drug/money laundering case who is not 

alleged to be the owner of the property is considered a 

third party for the purpose of challenging the forfeiture 

of the other co-defendant’s interest).

The new rule resolves these difficulties by postponing 

the determination of the extent of the defendant’s interest 

until the ancillary proceeding. As provided in (b)(1), the 

court, as soon as practicable after the verdict or finding 

of guilty in the criminal case, would determine if the 

property was subject to forfeiture in accordance with the 

applicable statute, e.g., whether the property represented 

the proceeds of the offense, was used to facilitate the 

offense, or was involved in the offense in some other way. 

The determination could be made based on the evidence 

in the record from the criminal trial or the facts set forth 

in a written plea agreement submitted to the court at the 

time of the defendant’s guilty plea, or the court could hold 

a hearing to determine if the requisite relationship existed 

between the property and the offense. Subdivision (b)(2) 

provides that it is not necessary to determine at this stage 

what interest any defendant might have in the property. 

Instead, the court would order the forfeiture of whatever 

interest each defendant might have in the property and 

conduct the ancillary proceeding.

Subdivision (b)(1) recognizes that there are different 

kinds of forfeiture judgments in criminal cases. One type 

is a personal judgment for a sum of money; another is 

a judgment forfeiting a specific asset. See, e.g., United 

States v. Voigt, 89 F.3d 1050 (3d Cir. 1996) (government 

is entitled to a personal money judgment equal to the 

amount involved in the money laundering offense, as well 

as order forfeiting specific assets involved in, or traceable 

to, the offense; in addition, if the statutory requirements are 

met, the government may be entitled to forfeit substitute 

assets); United States v. Cleveland, 1997 WL 537707 

(E.D. La. Aug. 26, 1997), modified, 1997 WL 602186 

(E.D. La. Sept. 29, 1997) (government entitled to a 

money judgment equal to the amount of money defendant 

laundered in money laundering case). The finding the 

court is required to make will depend on the nature of the 

forfeiture judgment. A number of cases have approved use 

of money judgment forfeitures. The Committee takes no 

position on the correctness of those rulings.

To the extent that the government is seeking forfeiture 

of a particular asset, such as the money on deposit in a 

particular bank account that is alleged to be the proceeds 

of a criminal offense, or a parcel of land that is traceable 

to that offense, the court must find that the government has 

established the requisite nexus between the property and 

the offense. To the extent that the government is seeking 

a money judgment, such as a judgment for the amount 

of money derived from a drug trafficking offense or the 

amount involved in a money laundering offense where the 

actual property subject to forfeiture has not been found 

or is unavailable, the court must determine the amount 

of money that the defendant should be ordered to forfeit.

The court may make the determination based on evidence 

in the record, or on additional evidence submitted by 

the defendant or evidence submitted by the government 

in support of the motion for the entry of a judgment of 

forfeiture. The defendant would have no standing to object 

to the forfeiture on the ground that the property belonged 

to someone else.

Under subdivision (b)(2), if the court finds that property is 

forfeitable, it must enter a preliminary order of forfeiture. 

It also recognizes that any determination of a third person’s 

interest in the property is deferred until an ancillary 

proceeding, if any, is held under subdivision (c).

Subdivision (b)(3) replaces Rule 32(d)(2) (effective 

December 1996). It provides that once the court enters 

a preliminary order of forfeiture directing the forfeiture 

of whatever interest each defendant may have in the 

forfeited property, the government may seize the property 

and commence an ancillary proceeding to determine the 

interests of any third party. The subdivision also provides 

that the Attorney General may designate someone outside 

of the Department of Justice to seize forfeited property. 

This is necessary because in cases in which the lead 

investigative agency is in the Treasury Department, for 

example, the seizure of the forfeited property is typically 

handled by agencies other than the Department of Justice.

If no third party files a claim, the court, at the time of 

sentencing, will enter a final order forfeiting the property 

in accordance with subdivision (c)(2), discussed infra. If a 

third party files a claim, the order of forfeiture will become 

final as to the defendant at the time of sentencing but will 

be subject to amendment in favor of a third party pending 

the conclusion of the ancillary proceeding.

Because the order of forfeiture becomes final as to the 

defendant at the time of sentencing, his right to appeal 

from that order begins to run at that time. As courts have 

held, because the ancillary hearing has no bearing on the 

defendant’s right to the property, the defendant has no 

right to appeal when a final order is, or is not, amended 

to recognize third party rights. See, e.g., United States v. 

Christunas, 126 F.3d 765 (6th Cir. 1997) (preliminary 

order of forfeiture is final as to the defendant and is 

immediately appealable).
Asset Forfeiture Statutes • 161

Rule 32.2

Because it is not uncommon for sentencing to be 

postponed for an extended period to allow a defendant 

to cooperate with the government in an ongoing 

investigation, the rule would allow the order of forfeiture 

to become final as to the defendant before sentencing, if 

the defendant agrees to that procedure. Otherwise, the 

government would be unable to dispose of the property 

until the sentencing took place.

Subdivision (b)(4) addresses the right of either party to 

request that a jury make the determination of whether any 

property is subject to forfeiture. The provision gives the 

defendant, in all cases where a jury has returned a guilty 

verdict, the option of asking that the jury be retained to 

hear additional evidence regarding the forfeitability of the 

property. The only issue for the jury in such cases would 

be whether the government has established the requisite 

nexus between the property and the offense. For example, 

if the defendant disputes the government’s allegation that 

a parcel of real property is traceable to the offense, the 

defendant would have the right to request that the jury hear 

evidence on that issue, and return a special verdict, in a 

bifurcated proceeding that would occur after the jury returns 

the guilty verdict. The government would have the same 

option of requesting a special jury verdict on this issue, as 

is the case under current law. See Rule 23(a) (trial by jury 

may be waived only with the consent of the government).

When Rule 31(e) was promulgated, it was assumed 

that criminal forfeiture was akin to a separate criminal 

offense on which evidence would be presented and the 

jury would have to return a verdict. In Libretti v. United 

States, 516 U.S. 29 (1995), however, the Supreme Court 

held that criminal forfeiture constitutes an aspect of the 

sentence imposed in a criminal case and that the defendant 

has no constitutional right to have the jury determine any 

part of the forfeiture. The special verdict requirement in 

Rule 31(e), the Court said, is in the nature of a statutory 

right that can be modified or repealed at any time.

Even before Libretti, lower courts had determined that 

criminal forfeiture is a sentencing matter and concluded 

that criminal trials therefore should be bifurcated so that 

the jury first returns a verdict on guilt or innocence and 

then returns to hear evidence regarding the forfeiture. 

In the second part of the bifurcated proceeding, the jury 

is instructed that the government must establish the 

forfeitability of the property by a preponderance of the 

evidence. See United States v. Myers, 21 F.3d 826 (8th Cir. 

1994) (preponderance standard applies because criminal 

forfeiture is part of the sentence in money laundering 

cases); United States v. Voigt, 89 F.3d 1050 (3rd Cir. 1996) 

(following Myers); United States v. Smith, 966 F.2d 1045, 

1050-53 (6th Cir. 1992) (same for drug cases); United 

States v. Bieri, 21 F.3d 819 (8th Cir. 1994) (same).

Although an argument could be made under Libretti, 

that a jury trial is no longer appropriate on any aspect 

of the forfeiture issue, which is a part of sentencing, the 

Committee decided to retain the right for the parties, 

in a trial held before a jury, to have the jury determine 

whether the government has established the requisite 

statutory nexus between the offense and the property to 

be forfeited. The jury, however, would not have any role 

in determining whether a defendant had an interest in the 

property to be forfeited. This is a matter for the ancillary 

proceeding which, by statute, is conducted “before the 

court alone, without a jury.” See 21 U.S.C. § 853(n)(2).

Subdivision (c). Subdivision (c) sets forth a set of rules 

governing the conduct of the ancillary proceeding. 

When the ancillary hearing provisions were added to 

18 U.S.C. § 1963 and 21 U.S.C. § 853 in 1984, Congress 

apparently assumed that the proceedings under the new 

provisions would involve simple questions of ownership 

that could, in the ordinary case, be resolved in 30 days. 

See 18 U.S.C. § 1963(1)(4). Presumably for that reason, 

the statute contains no procedures governing motions 

practice or discovery such as would be available in an 

ordinary civil case. Subdivision (c)(1) makes clear that 

no ancillary proceeding is required to the extent that 

the order of forfeiture consists of a money judgment. A 

money judgment is an in personam judgment against the 

defendant and not an order directed at specific assets in 

which any third party could have any interest.

Experience has shown that ancillary hearings can 

involve issues of enormous complexity that require 

years to resolve. See United States v. BCCI Holdings 

(Luxembourg) S.A., 833 F.Supp. 9 (D.D.C. 1993) 

(ancillary proceeding involving over 100 claimants and 

$451 million); United States v . Porcelli, CR- 85-00756 

(CPS), 1992 U.S. Dist. LEXIS 17928 (E.D.N.Y. Nov. 5, 

1992) (litigation over third party claim continuing 6 years 

after RICO conviction). In such cases, procedures akin to 

those available under the Federal Rules of Civil Procedure 

should be available to the court and the parties to aid in 

the efficient resolution of the claims.

Because an ancillary hearing is connected to a criminal 

case, it would not be appropriate to make the Civil Rules 

applicable in all respects. The amendment, however, 

describes several fundamental areas in which procedures 

analogous to those in the Civil Rules may be followed. 

These include the filing of a motion to dismiss a claim, 

conducting discovery, disposing of a claim on a motion 

for summary judgment, and appealing a final disposition 
162 • Asset Forfeiture Statutes

Rule 32.2 

of a claim. Where applicable, the amendment follows the 

prevailing case law on the issue. See, e.g., United States v. 

Lavin, 942 F.2d 177 (3rd Cir. 1991) (ancillary proceeding 

treated as civil case for purposes of applying Rules of 

Appellate Procedure); United States v. BCCI Holdings 

(Luxembourg) S.A. (In re Petitions of General Creditors), 

919 F. Supp. 31 (D.D.C. 1996) (“If a third party fails to 

allege in its petition all elements necessary for recovery, 

including those relating to standing, the court may dismiss 

the petition without providing a hearing”); United States 

v. BCCI (Holdings) Luxembourg S.A. (In re Petition of 

Department of Private Affairs), 1993 WL 760232 (D.D.C. 

Dec. 8, 1993) (applying court’s inherent powers to permit 

third party to obtain discovery from defendant in accordance 

with civil rules). The provision governing appeals in cases 

where there are multiple claims is derived from Fed.R. 

Civ. P. 54(b). See also United States v. BCCI Holdings 

(Luxembourg) S.A. (Petition of Banque Indosuez), 961 

F.Supp. 282 (D.D.C. 1997) (in resolving motion to dismiss 

court assumes all facts pled by third party petitioner to be 

true, applying Rule 12(b)(6) and denying government’s 

motion because whether claimant had superior title turned 

on factual dispute; government acted reasonably in not 

making any discovery requests in ancillary proceeding until 

court ruled on its motion to dismiss).

Subdivision (c)(2) provides for the entry of a final order 

of forfeiture at the conclusion of the ancillary proceeding. 

Under this provision, if no one files a claim in the ancillary 

proceeding, the preliminary order would become the final 

order of forfeiture, but the court would first have to make 

an independent finding that at least one of the defendants 

had an interest in the property such that it was proper to 

order the forfeiture of the property in a criminal case. 

In making that determination, the court may rely upon 

reasonable inferences. For example, the fact that the 

defendant used the property in committing the crime and 

no third party claimed an interest in the property may give 

rise to the inference that the defendant had a forfeitable 

interest in the property.

This subdivision combines and preserves two established 

tenets of current law. One is that criminal forfeitures are in 

personam actions that are limited to the property interests 

of the defendant. (This distinguishes criminal forfeiture, 

which is imposed as part of the defendant’s sentence, from 

civil forfeiture which may be pursued as an action against 

the property in rem without regard to who the owner may 

be.) The other tenet of current law is that if a third party has 

notice of the forfeiture but fails to file a timely claim, his or 

her interests are extinguished, and may not be recognized 

when the court enters the final order of forfeiture. See 

United States v. Hentz, 1996 WL 355327 (E.D. Pa. June 20, 

1996) (once third party fails to file a claim in the ancillary 

proceeding, government has clear title under 21 U.S.C. § 

853(n)(7) and can market the property notwithstanding 

third party’s name on the deed). In the rare event that a 

third party claims that he or she was not afforded adequate 

notice of a criminal forfeiture action, the person may file 

a motion under Rule 60(b) of the Federal Rules of Civil 

Procedure to reopen the ancillary proceeding. See United 

States v. Bouler, 927 F.Supp. 911 (W.D.N.C. 1996) (Rule 

60(b) is the proper means by which a third party may move 

to reopen an ancillary proceeding).

If no third parties assert their interests in the ancillary 

proceeding, the court must nonetheless determine that the 

defendant, or combination of defendants, had an interest 

in the property. Criminal defendants may be jointly and 

severally liable for the forfeiture of the entire proceeds of 

the criminal offense. See United States v. Hurley, 63 F.3d 1 

(1st Cir. 1995) (government can collect the proceeds 

only once, but subject to that cap, it can collect from any 

defendant so much of the proceeds as was foreseeable 

to that defendant); United States v. Cleveland, 1997 WL 

602186 (E.D. La. Sept. 29, 1997) (same); United States 

v. McCarroll, 1996 WL 355371 at *9 (N.D. Ill. June 25, 

1996) (following Hurley), aff’d sub nom. United States 

v. Jarrett, 133 F.3d 519 (7th Cir. 1998); United States v. 

DeFries, 909 F.Supp. 13, 19-20 (D.D.C. 1995) (defendants 

are jointly and severally liable even where government 

is able to determine precisely how much each defendant 

benefitted from the scheme), rev’d on other grounds, 

129 F.3d 1293 (D.C. Cir. 1997). Therefore, the conviction 

of any of the defendants is sufficient to support the 

forfeiture of the entire proceeds of the offense, even if the 

defendants have divided the money among themselves.

As noted in (c)(4), the ancillary proceeding is not 

considered a part of sentencing. Thus, the Federal Rules 

of Evidence would apply to the ancillary proceeding, as 

is the case currently.

Subdivision (d). Subdivision (d) replaces the forfeiture 

provisions of Rule 38(e) which provide that the court may 

stay an order of forfeiture pending appeal. The purpose 

of the provision is to ensure that the property remains 

intact and unencumbered so that it may be returned to the 

defendant in the event the appeal is successful. Subdivision 

(d) makes clear, however, that a district court is not divested 

of jurisdiction over an ancillary proceeding even if the 

defendant appeals his or her conviction. This allows the 

court to proceed with the resolution of third party claims 

even as the appellate court considers the appeal. Otherwise, 

third parties would have to await the conclusion of the 

appellate process even to begin to have their claims heard. 

See United States v. Messino, 907 F. Supp. 1231 (N.D. Ill. 
Asset Forfeiture Statutes • 163

Rule 32.2

1995) (the district court retains jurisdiction over forfeiture 

matters while an appeal is pending).

Finally, subdivision (d) provides a rule to govern what 

happens if the court determines that a third-party claim 

should be granted but the defendant’s appeal is still pending. 

The defendant is barred from filing a claim in the ancillary 

proceeding. See 18 U.S.C. § 1963(1)(2); 21 U.S.C. § 

853(n)(2). Thus, the court’s determination, in the ancillary 

proceeding, that a third party has an interest in the property 

superior to that of the defendant cannot be binding on the 

defendant. So, in the event that the court finds in favor of the 

third party, that determination is final only with respect to 

the government’s alleged interest. If the defendant prevails 

on appeal, he or she recovers the property as if no conviction 

or forfeiture ever took place. But if the order of forfeiture is 

affirmed, the amendment to the order of forfeiture in favor 

of the third party becomes effective.

Subdivision (e). Subdivision (e) makes clear, as courts 

have found, that the court retains jurisdiction to amend 

the order of forfeiture at any time to include subsequently 

located property which was originally included in the 

forfeiture order and any substitute property. See United 

States v. Hurley, 63 F.3d 1 (1st Cir. 1995) (court retains 

authority to order forfeiture of substitute assets after appeal 

is filed); United States v. Voigt, 89 F.3d 1050 (3rd Cir. 1996) 

(following Hurley). Third parties, of course, may contest the 

forfeiture of substitute assets in the ancillary proceeding. 

See United States v. Lester, 85 F.3d 1409 (9th Cir. 1996).

Subdivision (e)(1) makes clear that the right to a bifurcated 

jury trial to determine whether the government has 

established the requisite nexus between the property and 

the offense, see (b)(4), does not apply to the forfeiture of 

substitute assets or to the addition of newly-discovered 

property to an existing order of forfeiture. It is well 

established in the case law that the forfeiture of substitute 

assets is solely an issue for the court. See United States v. 

Hurley, 63 F.3d 1 (1st Cir. 1995) (court retains authority 

to order forfeiture of substitute assets after appeal is 

filed); United States v. Voigt, 89 F.3d 1050 (3d Cir. 1996) 

(following Hurley; court may amend order of forfeiture 

at any time to include substitute assets); United States v. 

Thompson, 837 F. Supp. 585 (S.D.N.Y. 1993) (court, not 

jury, orders forfeiture of substitute assets). As a practical 

matter, courts have also determined that they, not the jury, 

must determine the forfeitability of assets discovered 

after the trial is over and the jury has been dismissed. 

See United States v. Saccoccia, 898 F. Supp. 53 (D.R.I. 

1995) (government may conduct post-trial discovery to 

determine location and identity of forfeitable assets; posttrial discovery resulted in discovery of gold bars buried in 

defendant’s mother’s backyard several years after the entry 

of an order directing the defendant to forfeit all property, up 

to $137 million, involved in his money laundering offense).

GAP Report—Rule 32.2

The Committee amended the rule to clarify several key 

points. First, subdivision (b) was redrafted to make it clear 

that if no third party files a petition to assert property rights, 

the trial court must determine whether the defendant has 

an interest in the property to be forfeited and the extent of 

that interest. As published, the rule would have permitted 

the trial judge to order the defendant to forfeit the property 

in its entirety if no third party filed a claim.

Second, Rule 32.2(c)(4) was added to make it clear that 

the ancillary proceeding is not a part of sentencing.

Third, the Committee clarified the procedures to be used if 

the government (1) discovers property subject to forfeiture 

after the court has entered an order of forfeiture and (2) 

seeks the forfeiture of “substitute” property under a statute 

authorizing such substitution.

2009 Amendments

Subdivision (a). The amendment responds to some 

uncertainty regarding the form of the required notice 

that the government will seek forfeiture as part of the 

sentence, making it clear that the notice should not 

be designated as a separate count in an indictment or 

information. The amendment also makes it clear that 

the indictment or information need only provide general 

notice that the government is seeking forfeiture, without 

identifying the specific property being sought. This is 

consistent with the 2000 Committee Note, as well as 

many lower court decisions.

Although forfeitures are not charged as counts, the federal 

judiciary’s Case Management and Electronic Case Files 

system should note that forfeiture has been alleged so as to 

assist the parties and the court in tracking the subsequent 

status of forfeiture allegations.

The court may direct the government to file a bill of 

particulars to inform the defendant of the identity of 

the property that the government is seeking to forfeit or 

the amount of any money judgment sought if necessary 

to enable the defendant to prepare a defense or to 

avoid unfair surprise. See, e.g., United States v. Moffitt, 

Zwerdling, & Kemler, P.C., 83 F.3d 660, 665 (4th Cir. 

1996) (holding that the government need not list each 

asset subject to forfeiture in the indictment because 

notice can be provided in a bill of particulars); United 

States v. Vasquez-Ruiz, 136 F. Supp. 2d 941, 944 (N.D. 

Ill. 2001) (directing the government to identify in a bill 

of particulars, at least 30 days before trial, the specific 
164 • Asset Forfeiture Statutes

Rule 32.2 

items of property, including substitute assets, that it 

claims are subject to forfeiture); United States v. Best, 

657 F. Supp. 1179, 1182 (N.D. Ill. 1987) (directing the 

government to provide a bill of particulars apprising 

the defendants as to the time periods during which they 

obtained the specified classes of property through their 

alleged racketeering activity and the interest in each of 

these properties that was allegedly obtained unlawfully). 

See also United States v. Columbo, 2006 WL 2012511 

* 5 & n.13 (S.D. N.Y. 2006) (denying motion for bill of 

particulars and noting that government proposed sending 

letter detailing basis for forfeiture allegations).

Subdivision (b)(1). Rule 32.2(b)(1) sets forth the 

procedure for determining if property is subject to 

forfeiture. Subparagraph (A) is carried forward from the 

current Rule without change.

Subparagraph (B) clarifies that the parties may submit 

additional evidence relating to the forfeiture in the 

forfeiture phase of the trial, which may be necessary even 

if the forfeiture is not contested. Subparagraph (B) makes 

it clear that in determining what evidence or information 

should be accepted, the court should consider relevance 

and reliability. Finally, subparagraph (B) requires the 

court to hold a hearing when forfeiture is contested. The 

Committee foresees that in some instances live testimony 

will be needed to determine the reliability of proffered 

information. Cf. Rule 32.1(b)(1)(B)(iii) (providing the 

defendant in a proceeding for revocation of probation or 

supervised release with the opportunity, upon request, to 

question any adverse witness unless the judge determines 

this is not in the interest of justice).

Subdivision (b)(2)(A). Current Rule 32.2(b) provides the 

procedure for issuing a preliminary forfeiture order once 

the court finds that the government has established the 

nexus between the property and the offense (or the amount 

of the money judgment). The amendment makes clear that 

the preliminary order may include substitute assets if the 

government has met the statutory criteria.

Subdivision (b)(2)(B). This new subparagraph focuses on 

the timing of the preliminary forfeiture order, stating that 

the court should issue the order “sufficiently in advance 

of sentencing to allow the parties to suggest revisions 

or modifications before the order becomes final.” Many 

courts have delayed entry of the preliminary order until the 

time of sentencing. This is undesirable because the parties 

have no opportunity to advise the court of omissions 

or errors in the order before it becomes final as to the 

defendant (which occurs upon oral announcement of the 

sentence and the entry of the criminal judgment). Once the 

sentence has been announced, the rules give the sentencing 

court only very limited authority to correct errors or 

omissions in the preliminary forfeiture order. Pursuant 

to Rule 35(a), the district court may correct a sentence, 

including an incorporated forfeiture order, within seven 

days after oral announcement of the sentence. During 

the seven-day period, corrections are limited to those 

necessary to correct “arithmetical, technical, or other clear 

error.” See United States v. King, 368 F. Supp. 2d 509, 

512-13 (D.S.C. 2005). Corrections of clerical errors may 

also be made pursuant to Rule 36. If the order contains 

errors or omissions that do not fall within Rules 35(a) or 

36, and the court delays entry of the preliminary forfeiture 

order until the time of sentencing, the parties may be 

left with no alternative to an appeal, which is a waste of 

judicial resources. The amendment requires the court to 

enter the preliminary order in advance of sentencing to 

permit time for corrections, unless it is not practical to do 

so in an individual case.

Subdivision (b)(2)(C). The amendment explains how 

the court is to reconcile the requirement that it make the 

forfeiture order part of the sentence with the fact that in 

some cases the government will not have completed its 

post-conviction investigation to locate the forfeitable 

property by the time of sentencing. In that case the court 

is authorized to issue a forfeiture order describing the 

property in “general” terms, which order may be amended 

pursuant to Rule 32.2(e)(1) when additional specific 

property is identified.

The authority to issue a general forfeiture order should 

be used only in unusual circumstances and not as a 

matter of course. For cases in which a general order was 

properly employed, see United States v. BCCI Holdings 

(Luxembourg), 69 F. Supp. 2d 36 (D.D.C. 1999) (ordering 

forfeiture of all of a large, complex corporation’s assets in 

the United States, permitting the government to continue 

discovery necessary to identify and trace those assets); 

United States v. Saccoccia, 898 F. Supp. 53 (D.R.I. 

1995) (ordering forfeiture of up to a specified amount of 

laundered drug proceeds so that the government could 

continue investigation which led to the discovery and 

forfeiture of gold bars buried by the defendant in his 

mother’s back yard).

Subdivisions (b)(3) and (4). The amendment moves the 

language explaining when the forfeiture order becomes 

final as to the defendant to new subparagraph (b)(4)(A), 

where it is coupled with new language explaining that the 

order is not final as to third parties until the completion 

of the ancillary proceedings provided for in Rule 32.2(c).

New subparagraphs (B) and (C) are intended to clarify 

what the district court is required to do at sentencing, and 

to respond to conflicting decisions in the courts regarding 

the application of Rule 36 to correct clerical errors. The 

new subparagraphs add considerable detail regarding 

the oral announcement of the forfeiture at sentencing, 
Asset Forfeiture Statutes • 165

Rule 41

the reference to the forfeiture order in the judgment and 

commitment order, the availability of Rule 36 to correct 

the failure to include the forfeiture order in the judgment 

and commitment order, and the time to appeal.

New subparagraph (C) clarifies the time for appeals 

concerning forfeiture by the defendant or government 

from two kinds of orders: the original judgment of 

conviction and later orders amending or refusing to 

amend the judgment under Rule 32. 2(e) to add additional 

property. This provision does not address appeals by 

the government or a third party from orders in ancillary 

proceedings under Rule 32. 2(c).

Subdivision (b)(5)(A). The amendment clarifies the 

procedure for requesting a jury determination of forfeiture. 

The goal is to avoid an inadvertent waiver of the right 

to a jury determination, while also providing timely 

notice to the court and to the jurors themselves if they 

will be asked to make the forfeiture determination. The 

amendment requires that the court determine whether 

either party requests a jury determination of forfeiture 

in cases where the government has given notice that it 

is seeking forfeiture and a jury has been empaneled to 

determine guilt or innocence. The rule requires the court 

to make this determination before the jury retires. Jurors 

who know that they may face an additional task after they 

return their verdict will be more accepting of the additional 

responsibility in the forfeiture proceeding, and the court 

will be better able to plan as well.

Although the rule permits a party to make this request 

just before the jury retires, it is desirable, when possible, 

to make the request earlier, at the time when the jury is 

empaneled. This allows the court to plan, and also allows 

the court to tell potential jurors what to expect in terms 

of their service.

Subdivision (b)(5)(B) explains that “the government 

must submit a proposed Special Verdict Form listing 

each property subject to forfeiture.” Use of such a form 

is desirable, and the government is in the best position to 

draft the form.

Subdivisions (b)(6) and (7). These provisions are based 

upon the civil forfeiture provisions in Supplemental Rule 

G of the Federal Rules of Civil Procedure, which are also 

incorporated by cross reference. The amendment governs 

such mechanical and technical issues as the manner of 

publishing notice of forfeiture to third parties and the 

interlocutory sale of property, bringing practice under 

the Criminal Rules into conformity with the Civil Rules.

Rule 41. Search and Seizure.

(a) Scope and Definitions.

(1) Scope. This rule does not modify any statute regulating 

search or seizure, or the issuance and execution of a search 

warrant in special circumstances. 

(2) Definitions. The following definitions apply under 

this rule: 

(A) “Property” includes documents, books, papers, any 

other tangible objects, and information. 

(B) “Daytime” means the hours between 6:00 a.m. and 

10:00 p.m. according to local time. 

(C) “Federal law enforcement officer” means a 

government agent (other than an attorney for the 

government) who is engaged in enforcing the criminal 

laws and is within any category of officers authorized by 

the Attorney General to request a search warrant. 

(D) “Domestic terrorism” and “international terrorism” 

have the meanings set out in 18 U.S.C. § 2331. 

(E) “Tracking device” has the meaning set out in 18 

U.S.C. § 3117(b). 

(b) Authority to Issue a Warrant. At the request of a federal 

law enforcement officer or an attorney for the government:

(1) a magistrate judge with authority in the district — or if 

none is reasonably available, a judge of a state court of record 

in the district — has authority to issue a warrant to search 

for and seize a person or property located within the district; 

(2) a magistrate judge with authority in the district has 

authority to issue a warrant for a person or property outside the 

district if the person or property is located within the district 

when the warrant is issued but might move or be moved 

outside the district before the warrant is executed; 

(3) a magistrate judge—in an investigation of domestic 

terrorism or international terrorism—with authority in any 

district in which activities related to the terrorism may have 

occurred has authority to issue a warrant for a person or 

property within or outside that district; 

(4) a magistrate judge with authority in the district has 

authority to issue a warrant to install within the district a 

tracking device; the warrant may authorize use of the device 

to track the movement of a person or property located within 

the district, outside the district, or both; and 

(5) a magistrate judge having authority in any district where 

activities related to the crime may have occurred, or in the 

District of Columbia, may issue a warrant for property that 

is located outside the jurisdiction of any state or district, but 

within any of the following: 
166 • Asset Forfeiture Statutes

Rule 41 

(A) a United States territory, possession, or 

commonwealth; 

(B) the premises—no matter who owns them—of a 

United States diplomatic or consular mission in a foreign 

state, including any appurtenant building, part of a 

building, or land used for the mission’s purposes; or 

(C) a residence and any appurtenant land owned or 

leased by the United States and used by United States 

personnel assigned to a United States diplomatic or 

consular mission in a foreign state. 

(c) Persons or Property Subject to Search or Seizure. A warrant 

may be issued for any of the following:

(1) evidence of a crime; 

(2) contraband, fruits of crime, or other items illegally 

possessed; 

(3) property designed for use, intended for use, or used in 

committing a crime; or 

(4) a person to be arrested or a person who is unlawfully 

restrained. 

(d) Obtaining a Warrant.

(1) In General. After receiving an affidavit or other 

information, a magistrate judge—or if authorized by Rule 

41(b), a judge of a state court of record—must issue the 

warrant if there is probable cause to search for and seize a 

person or property or to install and use a tracking device. 

(2) Requesting a Warrant in the Presence of a Judge. 

(A) Warrant on an Affidavit. When a federal law 

enforcement officer or an attorney for the government 

presents an affidavit in support of a warrant, the judge may 

require the affiant to appear personally and may examine 

under oath the affiant and any witness the affiant produces. 

(B) Warrant on Sworn Testimony. The judge may 

wholly or partially dispense with a written affidavit and 

base a warrant on sworn testimony if doing so is reasonable 

under the circumstances. 

(C) Recording Testimony. Testimony taken in support 

of a warrant must be recorded by a court reporter or by 

a suitable recording device, and the judge must file the 

transcript or recording with the clerk, along with any 

affidavit. 

(3) Requesting a Warrant by Telephonic or Other Reliable 

Electronic Means. In accordance with Rule 4.1, a magistrate 

judge may issue a warrant based on information communicated 

by telephone or other reliable electronic means. 

(e) Issuing the Warrant.

(1) In General. The magistrate judge or a judge of a state 

court of record must issue the warrant to an officer authorized 

to execute it. 

(2) Contents of the Warrant. 

(A) Warrant to Search for and Seize a Person or 

Property. Except for a tracking-device warrant, the warrant 

must identify the person or property to be searched, identify 

any person or property to be seized, and designate the 

magistrate judge to whom it must be returned. The warrant 

must command the officer to: 

(i) execute the warrant within a specified time no 

longer than 14 days; 

(ii) execute the warrant during the daytime, unless 

the judge for good cause expressly authorizes execution 

at another time; and 

(iii) return the warrant to the magistrate judge 

designated in the warrant. 

(B) Warrant Seeking Electronically Stored Information. 

A warrant under Rule 41(e)(2)(A) may authorize the 

seizure of electronic storage media or the seizure or 

copying of electronically stored information. Unless 

otherwise specified, the warrant authorizes a later review 

of the media or information consistent with the warrant. 

The time for executing the warrant in Rule 41(e)(2)(A) 

and (f)(1)(A) refers to the seizure or on-site copying of 

the media or information, and not to any later off-site 

copying or review. 

(C) Warrant for a Tracking Device. A tracking-device 

warrant must identify the person or property to be tracked, 

designate the magistrate judge to whom it must be returned, 

and specify a reasonable length of time that the device may 

be used. The time must not exceed 45 days from the date 

the warrant was issued. The court may, for good cause, 

grant one or more extensions for a reasonable period not 

to exceed 45 days each. The warrant must command the 

officer to: 

(i) complete any installation authorized by the 

warrant within a specified time no longer than 10 days; 

(ii) perform any installation authorized by the warrant 

during the daytime, unless the judge for good cause 

expressly authorizes installation at another time; and 

(iii) return the warrant to the judge designated in 

the warrant. 

(f) Executing and Returning the Warrant.

(1) Warrant to Search for and Seize a Person or Property. 

(A) Noting the Time. The officer executing the warrant 

must enter on it the exact date and time it was executed. 
Asset Forfeiture Statutes • 167

Rule 41

(B) Inventory. An officer present during the execution 

of the warrant must prepare and verify an inventory of any 

property seized. The officer must do so in the presence of 

another officer and the person from whom, or from whose 

premises, the property was taken. If either one is not 

present, the officer must prepare and verify the inventory 

in the presence of at least one other credible person. In a 

case involving the seizure of electronic storage media or 

the seizure or copying of electronically stored information, 

the inventory may be limited to describing the physical 

storage media that were seized or copied. The officer may 

retain a copy of the electronically stored information that 

was seized or copied. 

(C) Receipt. The officer executing the warrant must 

give a copy of the warrant and a receipt for the property 

taken to the person from whom, or from whose premises, 

the property was taken or leave a copy of the warrant and 

receipt at the place where the officer took the property. 

(D) Return. The officer executing the warrant must 

promptly return it—together with a copy of the inventory—

to the magistrate judge designated on the warrant. The 

officer may do so by reliable electronic means. The judge 

must, on request, give a copy of the inventory to the person 

from whom, or from whose premises, the property was 

taken and to the applicant for the warrant. 

(2) Warrant for a Tracking Device. 

(A) Noting the Time. The officer executing a trackingdevice warrant must enter on it the exact date and time 

the device was installed and the period during which it 

was used. 

(B) Return. Within 10 days after the use of the tracking 

device has ended, the officer executing the warrant must 

return it to the judge designated in the warrant. The officer 

may do so by reliable electronic means. 

(C) Service. Within 10 days after the use of the tracking 

device has ended, the officer executing a tracking-device 

warrant must serve a copy of the warrant on the person 

who was tracked or whose property was tracked. Service 

may be accomplished by delivering a copy to the person 

who, or whose property, was tracked; or by leaving a copy 

at the person’s residence or usual place of abode with an 

individual of suitable age and discretion who resides at that 

location and by mailing a copy to the person’s last known 

address. Upon request of the government, the judge may 

delay notice as provided in Rule 41(f)(3). 

(3) Delayed Notice. Upon the government’s request, a 

magistrate judge—or if authorized by Rule 41(b), a judge of 

a state court of record—may delay any notice required by this 

rule if the delay is authorized by statute. 

(g) Motion to Return Property. A person aggrieved by an 

unlawful search and seizure of property or by the deprivation 

of property may move for the property’s return. The motion 

must be filed in the district where the property was seized. The 

court must receive evidence on any factual issue necessary 

to decide the motion. If it grants the motion, the court must 

return the property to the movant, but may impose reasonable 

conditions to protect access to the property and its use in later 

proceedings.

(h) Motion to Suppress. A defendant may move to suppress 

evidence in the court where the trial will occur, as Rule 12 

provides.

(i) Forwarding Papers to the Clerk. The magistrate judge to 

whom the warrant is returned must attach to the warrant a 

copy of the return, of the inventory, and of all other related 

papers and must deliver them to the clerk in the district where 

the property was seized.

Amended: eff. Dec. 1, 2011.
168 • Asset Forfeiture Statutes

Rule C 

SUPPLEMENTAL RULES FOR 

CERTAIN ADMIRALTY AND 

MARITIME CLAIMS

Rule C. In rem actions: special provisions.

(1) When Available. An action in rem may be brought:

(a) To enforce any maritime lien;

(b) Whenever a statute of the United States provides for 

a maritime action in rem or a proceeding analogous thereto.

Except as otherwise provided by law a party who may 

proceed in rem may also, or in the alternative, proceed in 

personam against any person who may be liable.

Statutory provisions exempting vessels or other property 

owned or possessed by or operated by or for the United States 

from arrest or seizure are not affected by this rule. When a 

statute so provides, an action against the United States or an 

instrumentality thereof may proceed on in rem principles.

(2) Complaint. In an action in rem the complaint must:

(a) be verified;

(b) describe with reasonable particularity the property that 

is the subject of the action; and

(c) state that the property is within the district or will be 

within the district while the action is pending.

(3) Judicial Authorization and Process.

(a) Arrest Warrant.

(i) The court must review the complaint and any 

supporting papers. If the conditions for an in rem action 

appear to exist, the court must issue an order directing the 

clerk to issue a warrant for the arrest of the vessel or other 

property that is the subject of the action.

(ii) If the plaintiff or the plaintiff’s attorney certifies that 

exigent circumstances make court review impracticable, 

the clerk must promptly issue a summons and a warrant 

for the arrest of the vessel or other property that is the 

subject of the action. The plaintiff has the burden in any 

post-arrest hearing under Rule E(4)(f) to show that exigent 

circumstances existed.

(b) Service.

(i) If the property that is the subject of the action is a 

vessel or tangible property on board a vessel, the warrant 

and any supplemental process must be delivered to the 

marshal for service.

(ii) If the property that is the subject of the action is 

other property, tangible or intangible, the warrant and 

any supplemental process must be delivered to a person 

or organization authorized to enforce it, who may be: (A) 

a marshal; (B) someone under contract with the United 

States; (C) someone specially appointed by the court for 

that purpose; or, (D) in an action brought by the United 

States, any officer or employee of the United States.

(c) Deposit in Court. If the property that is the subject of 

the action consists in whole or in part of freight, the proceeds 

of property sold, or other intangible property, the clerk must 

issue—in addition to the warrant—a summons directing any 

person controlling the property to show cause why it should 

not be deposited in court to abide the judgment.

(d) Supplemental Process. The clerk may upon application 

issue supplemental process to enforce the court’s order without 

further court order.

(4) Notice. No notice other than execution of process is 

required when the property that is the subject of the action has 

been released under Rule E(5). If the property is not released 

within 14 days after execution, the plaintiff must promptly—

or within the time that the court allows—give public notice 

of the action and arrest in a newspaper designated by court 

order and having general circulation in the district, but 

publication may be terminated if the property is released 

before publication is completed. The notice must specify 

the time under Rule C(6) to file a statement of interest in or 

right against the seized property and to answer. This rule does 

not affect the notice requirements in an action to foreclose a 

preferred ship mortgage under 46 U.S.C. §§ 31301 et seq., 

as amended.

(5) Ancillary Process. In any action in rem in which process 

has been served as provided by this rule, if any part of the 

property that is the subject of the action has not been brought 

within the control of the court because it has been removed 

or sold, or because it is intangible property in the hands of a 

person who has not been served with process, the court may, 

on motion, order any person having possession or control of 

such property or its proceeds to show cause why it should not 

be delivered into the custody of the marshal or other person or 

organization having a warrant for the arrest of the property, or 

paid into court to abide the judgment; and, after hearing, the 

court may enter such judgment as law and justice may require.

(6) Responsive Pleading; Interrogatories.

(a) Statement of Interest; Answer. In an action in rem:

(i) a person who asserts a right of possession or any 

ownership interest in the property that is the subject of the 

action must file a verified statement of right or interest:

(A) within 14 days after the execution of process, or

(B) within the time that the court allows;
Asset Forfeiture Statutes • 169

Rule E

(ii) the statement of right or interest must describe the 

interest in the property that supports the person’s demand 

for its restitution or right to defend the action;

(iii) an agent, bailee, or attorney must state the authority 

to file a statement of right or interest on behalf of another; 

and

(iv) a person who asserts a right of possession or any 

ownership interest must serve an answer within 21 days 

after filing the statement of interest or right.

(b) Interrogatories. Interrogatories may be served with the 

complaint in an in rem action without leave of court. Answers 

to the interrogatories must be served with the answer to the 

complaint.

Amended: eff. Dec. 1, 2009.

Rule E. Actions in rem and quasi in rem: 

general provisions. 

(1) Applicability. Except as otherwise provided, this rule applies 

to actions in personam with process of maritime attachment 

and garnishment, actions in rem, and petitory, possessory, and 

partition actions, supplementing Rules B, C, and D.

(2) Complaint; Security.

(a) Complaint. In actions to which this rule is applicable the 

complaint shall state the circumstances from which the claim 

arises with such particularity that the defendant or claimant 

will be able, without moving for a more definite statement, 

to commence an investigation of the facts and to frame a 

responsive pleading. 

(b) Security for Costs. Subject to the provisions of 

Rule 54(d) and of relevant statutes, the court may, on the 

filing of the complaint or on the appearance of any defendant, 

claimant, or any other party, or at any later time, require the 

plaintiff, defendant, claimant, or other party to give security, 

or additional security, in such sum as the court shall direct to 

pay all costs and expenses that shall be awarded against the 

party by any interlocutory order or by the final judgment, or 

on appeal by any appellate court. 

(3) Process.

(a) In admiralty and maritime proceedings process in rem 

or of maritime attachment and garnishment may be served 

only within the district. 

(b) Issuance and Delivery. Issuance and delivery of process 

in rem, or of maritime attachment and garnishment, shall be 

held in abeyance if the plaintiff so requests. 

(4) Execution of Process; Marshal’s Return; Custody of 

Property; Procedures for Release.

(a) In General. Upon issuance and delivery of the process, 

or, in the case of summons with process of attachment and 

garnishment, when it appears that the defendant cannot be 

found within the district, the marshal or other person or 

organization having a warrant shall forthwith execute the 

process in accordance with this subdivision (4), making due 

and prompt return. 

(b) Tangible Property. If tangible property is to be attached 

or arrested, the marshal or other person or organization having 

the warrant shall take it into the marshal’s possession for safe 

custody. If the character or situation of the property is such that 

the taking of actual possession is impracticable, the marshal or 

other person executing the process shall affix a copy thereof 

to the property in a conspicuous place and leave a copy of the 

complaint and process with the person having possession or 

the person’s agent. In furtherance of the marshal’s custody of 

any vessel the marshal is authorized to make a written request 

to the collector of customs not to grant clearance to such vessel 

until notified by the marshal or deputy marshal or by the clerk 

that the vessel has been released in accordance with these rules. 

(c) Intangible Property. If intangible property is to be 

attached or arrested the marshal or other person or organization 

having the warrant shall execute the process by leaving with 

the garnishee or other obligor a copy of the complaint and 

process requiring the garnishee or other obligor to answer as 

provided in Rules B(3)(a) and C(6); or the marshal may accept 

for payment into the registry of the court the amount owed to 

the extent of the amount claimed by the plaintiff with interest 

and costs, in which event the garnishee or other obligor shall 

not be required to answer unless alias process shall be served. 

(d) Directions. With Respect to Property in Custody. The 

marshal or other person or organization having the warrant 

may at any time apply to the court for directions with respect 

to property that has been attached or arrested, and shall give 

notice of such application to any or all of the parties as the 

court may direct. 

(e) Expenses of Seizing and Keeping Property; Deposit. 

These rules do not alter the provisions of Title 28, U.S.C., 

§ 1921, as amended, relative to the expenses of seizing and 

keeping property attached or arrested and to the requirement 

of deposits to cover such expenses. 

(f) Procedure for Release From Arrest or Attachment. 

Whenever property is arrested or attached, any person claiming 

an interest in it shall be entitled to a prompt hearing at which the 

plaintiff shall be required to show why the arrest or attachment 

should not be vacated or other relief granted consistent with 

these rules. This subdivision shall have no application to suits 

for seamen’s wages when process is issued upon a certification 

of sufficient cause filed pursuant to Title 46, U.S.C. §§ 603 

and 604 or to actions by the United States for forfeitures for 

violation of any statute of the United States. 
170 • Asset Forfeiture Statutes

Rule E 

(5) Release of Property.

(a) Special Bond. Whenever process of maritime 

attachment and garnishment or process in rem is issued the 

execution of such process shall be stayed, or the property 

released, on the giving of security, to be approved by the court 

or clerk, or by stipulation of the parties, conditioned to answer 

the judgment of the court or of any appellate court. The parties 

may stipulate the amount and nature of such security. In the 

event of the inability or refusal of the parties so to stipulate 

the court shall fix the principal sum of the bond or stipulation 

at an amount sufficient to cover the amount of the plaintiff’s 

claim fairly stated with accrued interest and costs; but the 

principal sum shall in no event exceed (i) twice the amount 

of the plaintiff’s claim or (ii) the value of the property on due 

appraisement, whichever is smaller. The bond or stipulation 

shall be conditioned for the payment of the principal sum and 

interest thereon at 6 per cent per annum. 

(b) General Bond. The owner of any vessel may file a general 

bond or stipulation, with sufficient surety, to be approved by 

the court, conditioned to answer the judgment of such court 

in all or any actions that may be brought thereafter in such 

court in which the vessel is attached or arrested. Thereupon the 

execution of all such process against such vessel shall be stayed 

so long as the amount secured by such bond or stipulation is 

at least double the aggregate amount claimed by plaintiffs in 

all actions begun and pending in which such vessel has been 

attached or arrested. Judgments and remedies may be had on 

such bond or stipulation as if a special bond or stipulation had 

been filed in each of such actions. The district court may make 

necessary orders to carry this rule into effect, particularly as to 

the giving of proper notice of any action against or attachment 

of a vessel for which a general bond has been filed. Such bond 

or stipulation shall be indorsed by the clerk with a minute of 

the actions wherein process is so stayed. Further security may 

be required by the court at any time. 

If a special bond or stipulation is given in a particular case, 

the liability on the general bond or stipulation shall cease as 

to that case. 

(c) Release by Consent or Stipulation; Order of Court 

or Clerk; Costs. Any vessel, cargo, or other property in the 

custody of the marshal or other person or organization having 

the warrant may be released forthwith upon the marshal’s 

acceptance and approval of a stipulation, bond, or other 

security, signed by the party on whose behalf the property is 

detained or the party’s attorney and expressly authorizing such 

release, if all costs and charges of the court and its officers shall 

have first been paid. Otherwise no property in the custody of 

the marshal, other person or organization having the warrant, 

or other officer of the court shall be released without an order 

of the court; but such order may be entered as of course by 

the clerk, upon the giving of approved security as provided by 

law and these rules, or upon the dismissal or discontinuance 

of the action; but the marshal or other person or organization 

having the warrant shall not deliver any property so released 

until the costs and charges of the officers of the court shall 

first have been paid. 

(d) Possessory, Petitory, and Partition Actions. The 

foregoing provisions of this subdivision (5) do not apply 

to petitory, possessory, and partition actions. In such cases 

the property arrested shall be released only by order of the 

court, on such terms and conditions and on the giving of such 

security as the court may require. 

(6) Reduction or Impairment of Security. Whenever security 

is taken the court may, on motion and hearing, for good cause 

shown, reduce the amount of security given; and if the surety 

shall be or become insufficient, new or additional sureties may 

be required on motion and hearing.

(7) Security on Counterclaim.

(a) When a person who has given security for damages 

in the original action asserts a counterclaim that arises 

from the transaction or occurrence that is the subject of the 

original action, a plaintiff for whose benefit the security has 

been given must give security for damages demanded in 

the counterclaim unless the court for cause shown, directs 

otherwise. Proceedings on the original claim must be stayed 

until this security is given unless the court directs otherwise. 

(b) The plaintiff is required to give security under Rule 

E(7)(a) when the United States or its corporate instrumentality 

counterclaims and would have been required to give security 

to respond in damages if a private party but is relieved by law 

from giving security. 

(8) Restricted Appearance. An appearance to defend against 

an admiralty and maritime claim with respect to which there 

has issued process in rem, or process of attachment and 

garnishment, may be expressly restricted to the defense of 

such claim, and in that event is not an appearance for the 

purposes of any other claim with respect to which such process 

is not available or has not been served.

(9) Disposition of Property; Sales.

(a) Interlocutory Sales; Delivery. 

(i) On application of a party, the marshal, or other person 

having custody of the property, the court may order all or 

part of the property sold—with the sales proceeds, or as 

much of them as will satisfy the judgment, paid into court 

to await further orders of the court—if: 

(A) the attached or arrested property is perishable, or 

liable to deterioration, decay, or injury by being detained 

in custody pending the action; 

(B) the expense of keeping the property is excessive 

or disproportionate; or 
Asset Forfeiture Statutes • 171

Rule G

(C) there is an unreasonable delay in securing release 

of the property. 

(ii) In the circumstances described in Rule E(9)(a)(i), 

the court, on motion by a defendant or a person filing a 

statement of interest or right under Rule C(6), may order 

that the property, rather than being sold, be delivered to the 

movant upon giving security under these rules. 

(b) Sales; Proceeds. All sales of property shall be made 

by the marshal or a deputy marshal, or by other person or 

organization having the warrant, or by any other person 

assigned by the court where the marshal or other person or 

organization having the warrant is a party in interest; and the 

proceeds of sale shall be forthwith paid into the registry of 

the court to be disposed of according to law. 

(10) Preservation of Property. When the owner or another 

person remains in possession of property attached or arrested 

under the provisions of Rule E(4)(b) that permit execution 

of process without taking actual possession, the court, on a 

party’s motion or on its own, may enter any order necessary 

to preserve the property and to prevent its removal.

Amended: eff. Dec. 1, 2006. 

Rule G. Forfeiture actions in rem. 

(1) Scope. This rule governs a forfeiture action in rem arising 

from a federal statute. To the extent that this rule does not 

address an issue, Supplemental Rules C and E and the Federal 

Rules of Civil Procedure also apply.

(2) Complaint. The complaint must:

(a) be verified;

(b) state the grounds for subject-matter jurisdiction, in rem 

jurisdiction over the defendant property, and venue;

(c) describe the property with reasonable particularity;

(d) if the property is tangible, state its location when any 

seizure occurred and—if different—its location when the 

action is filed;

(e) identify the statute under which the forfeiture action 

is brought; and

(f) state sufficiently detailed facts to support a reasonable 

belief that the government will be able to meet its burden of 

proof at trial.

(3) Judicial Authorization and Process.

(a) Real Property. If the defendant is real property, the 

government must proceed under 18 U.S.C. § 985.

(b) Other Property; Arrest Warrant. If the defendant is not 

real property:

(i) the clerk must issue a warrant to arrest the property 

if it is in the government’s possession, custody, or control;

(ii) the court—on finding probable cause—must issue a 

warrant to arrest the property if it is not in the government’s 

possession, custody, or control and is not subject to a 

judicial restraining order; and

(iii) a warrant is not necessary if the property is subject 

to a judicial restraining order.

(c) Execution of Process.

(i) The warrant and any supplemental process must be 

delivered to a person or organization authorized to execute 

it, who may be: (A) a marshal or any other United States 

officer or employee; (B) someone under contract with the 

United States; or (C) someone specially appointed by the 

court for that purpose.

(ii) The authorized person or organization must execute 

the warrant and any supplemental process on property in 

the United States as soon as practicable unless:

(A) the property is in the government’s possession, 

custody, or control; or

(B) the court orders a different time when the 

complaint is under seal, the action is stayed before the 

warrant and supplemental process are executed, or the 

court finds other good cause.

(iii) The warrant and any supplemental process may be 

executed within the district or, when authorized by statute, 

outside the district.

(iv) If executing a warrant on property outside the 

United States is required, the warrant may be transmitted 

to an appropriate authority for serving process where the 

property is located.

(4) Notice.

(a) Notice by Publication.

(i) When Publication Is Required. A judgment of 

forfeiture may be entered only if the government has 

published notice of the action within a reasonable time 

after filing the complaint or at a time the court orders. But 

notice need not be published if:

(A) the defendant property is worth less than $1,000 

and direct notice is sent under Rule G(4)(b) to every 

person the government can reasonably identify as a 

potential claimant; or

(B) the court finds that the cost of publication 

exceeds the property’s value and that other means of 

notice would satisfy due process.
172 • Asset Forfeiture Statutes

Rule G 

(ii) Content of the Notice. Unless the court orders 

otherwise, the notice must:

(A) describe the property with reasonable 

particularity;

(B) state the times under Rule G(5) to file a claim 

and to answer; and

(C) name the government attorney to be served with 

the claim and answer.

(iii) Frequency of Publication. Published notice must 

appear:

(A) once a week for three consecutive weeks; or

(B) only once if, before the action was filed, notice 

of nonjudicial forfeiture of the same property was 

published on an official internet government forfeiture 

site for at least 30 consecutive days, or in a newspaper 

of general circulation for three consecutive weeks in 

a district where publication is authorized under Rule 

G(4)(a)(iv).

(iv) Means of Publication. The government should 

select from the following options a means of publication 

reasonably calculated to notify potential claimants of the 

action:

(A) if the property is in the United States, publication 

in a newspaper generally circulated in the district where 

the action is filed, where the property was seized, or 

where property that was not seized is located;

(B) if the property is outside the United States, 

publication in a newspaper generally circulated in 

a district where the action is filed, in a newspaper 

generally circulated in the country where the property 

is located, or in legal notices published and generally 

circulated in the country where the property is located; or

(C) instead of (A) or (B), posting a notice on an 

official internet government forfeiture site for at least 

30 consecutive days.

(b) Notice to Known Potential Claimants.

(i) Direct Notice Required. The government must send 

notice of the action and a copy of the complaint to any 

person who reasonably appears to be a potential claimant 

on the facts known to the government before the end of the 

time for filing a claim under Rule G(5)(a)(ii)(B).

(ii) Content of the Notice. The notice must state:

(A) the date when the notice is sent;

(B) a deadline for filing a claim, at least 35 days 

after the notice is sent;

(C) that an answer or a motion under Rule 12 must 

be filed no later than 21 days after filing the claim; and

(D) the name of the government attorney to be served 

with the claim and answer.

(iii) Sending Notice.

(A) The notice must be sent by means reasonably 

calculated to reach the potential claimant.

(B) Notice may be sent to the potential claimant or 

to the attorney representing the potential claimant with 

respect to the seizure of the property or in a related 

investigation, administrative forfeiture proceeding, or 

criminal case.

(C) Notice sent to a potential claimant who is 

incarcerated must be sent to the place of incarceration.

(D) Notice to a person arrested in connection with 

an offense giving rise to the forfeiture who is not 

incarcerated when notice is sent may be sent to the 

address that person last gave to the agency that arrested 

or released the person.

(E) Notice to a person from whom the property was 

seized who is not incarcerated when notice is sent may 

be sent to the last address that person gave to the agency 

that seized the property.

(iv) When Notice Is Sent. Notice by the following means 

is sent on the date when it is placed in the mail, delivered 

to a commercial carrier, or sent by electronic mail.

(v) Actual Notice. A potential claimant who had actual 

notice of a forfeiture action may not oppose or seek relief 

from forfeiture because of the government’s failure to send 

the required notice.

(5) Responsive Pleadings.

(a) Filing a Claim.

(i) A person who asserts an interest in the defendant 

property may contest the forfeiture by filing a claim in the 

court where the action is pending. The claim must:

(A) identify the specific property claimed;

(B) identify the claimant and state the claimant’s 

interest in the property;

(C) be signed by the claimant under penalty of 

perjury; and

(D) be served on the government attorney designated 

under Rule G(4)(a)(ii)(C) or (b)(ii)(D).

(ii) Unless the court for good cause sets a different time, 

the claim must be filed:
Asset Forfeiture Statutes • 173

Rule G

(A) by the time stated in a direct notice sent under 

Rule G(4)(b);

(B) if notice was published but direct notice was 

not sent to the claimant or the claimant’s attorney, no 

later than 30 days after final publication of newspaper 

notice or legal notice under Rule G(4)(a) or no later than 

60 days after the first day of publication on an official 

internet government forfeiture site; or

(C) if notice was not published and direct notice 

was not sent to the claimant or the claimant’s attorney:

(1) if the property was in the government’s 

possession, custody, or control when the complaint 

was filed, no later than 60 days after the filing, not 

counting any time when the complaint was under seal 

or when the action was stayed before execution of a 

warrant issued under Rule G(3)(b); or

(2) if the property was not in the government’s 

possession, custody, or control when the complaint 

was filed, no later than 60 days after the government 

complied with 18 U.S.C. § 985(c) as to real property, 

or 60 days after process was executed on the property 

under Rule G(3).

(iii) A claim filed by a person asserting an interest as a 

bailee must identify the bailor, and if filed on the bailor’s 

behalf must state the authority to do so.

(b) Answer. A claimant must serve and file an answer to 

the complaint or a motion under Rule 12 within 21 days after 

filing the claim. A claimant waives an objection to in rem 

jurisdiction or to venue if the objection is not made by motion 

or stated in the answer.

(6) Special Interrogatories.

(a) Time and Scope. The government may serve special 

interrogatories limited to the claimant’s identity and 

relationship to the defendant property without the court’s 

leave at any time after the claim is filed and before discovery 

is closed. But if the claimant serves a motion to dismiss the 

action, the government must serve the interrogatories within 

21 days after the motion is served.

(b) Answers or Objections. Answers or objections to 

these interrogatories must be served within 21 days after the 

interrogatories are served.

(c) Government’s Response Deferred. The government 

need not respond to a claimant’s motion to dismiss the action 

under Rule G(8)(b) until 21 days after the claimant has 

answered these interrogatories.

(7) Preserving, Preventing Criminal Use, and Disposing of 

Property; Sales.

(a) Preserving and Preventing Criminal Use of Property. 

When the government does not have actual possession of 

the defendant property the court, on motion or on its own, 

may enter any order necessary to preserve the property, to 

prevent its removal or encumbrance, or to prevent its use in 

a criminal offense.

(b) Interlocutory Sale or Delivery.

(i) Order to Sell. On motion by a party or a person 

having custody of the property, the court may order all or 

part of the property sold if:

(A) the property is perishable or at risk of 

deterioration, decay, or injury by being detained in 

custody pending the action;

(B) the expense of keeping the property is excessive 

or is disproportionate to its fair market value;

(C) the property is subject to a mortgage or to taxes 

on which the owner is in default; or

(D) the court finds other good cause.

(ii) Who Makes the Sale. A sale must be made by a 

United States agency that has authority to sell the property, 

by the agency’s contractor, or by any person the court 

designates.

(iii) Sale Procedures. The sale is governed by 28 U.S.C. 

§§ 2001, 2002, and 2004, unless all parties, with the court’s 

approval, agree to the sale, aspects of the sale, or different 

procedures.

(iv) Sale Proceeds. Sale proceeds are a substitute res 

subject to forfeiture in place of the property that was sold. 

The proceeds must be held in an interest-bearing account 

maintained by the United States pending the conclusion 

of the forfeiture action.

(v) Delivery on a Claimant’s Motion. The court may 

order that the property be delivered to the claimant 

pending the conclusion of the action if the claimant shows 

circumstances that would permit sale under Rule G(7)(b) (i) 

and gives security under these rules.

(c) Disposing of Forfeited Property. Upon entry of a 

forfeiture judgment, the property or proceeds from selling the 

property must be disposed of as provided by law.

(8) Motions.

(a) Motion To Suppress Use of the Property as Evidence. 

If the defendant property was seized, a party with standing to 

contest the lawfulness of the seizure may move to suppress 

use of the property as evidence. Suppression does not affect 

forfeiture of the property based on independently derived 

evidence.
174 • Asset Forfeiture Statutes

Rule G 

(b) Motion To Dismiss the Action.

(i) A claimant who establishes standing to contest 

forfeiture may move to dismiss the action under Rule 12(b).

(ii) In an action governed by 18 U.S.C. § 983(a)(3)(D) 

the complaint may not be dismissed on the ground that the 

government did not have adequate evidence at the time 

the complaint was filed to establish the forfeitability of 

the property. The sufficiency of the complaint is governed 

by Rule G(2).

(c) Motion To Strike a Claim or Answer.

(i) At any time before trial, the government may move 

to strike a claim or answer:

(A) for failing to comply with Rule G(5) or (6), or

(B) because the claimant lacks standing.

(ii) The motion:

(A) must be decided before any motion by the 

claimant to dismiss the action; and

(B) may be presented as a motion for judgment 

on the pleadings or as a motion to determine after a 

hearing or by summary judgment whether the claimant 

can carry the burden of establishing standing by a 

preponderance of the evidence.

(d) Petition To Release Property.

(i) If a United States agency or an agency’s contractor 

holds property for judicial or nonjudicial forfeiture under 

a statute governed by 18 U.S.C. § 983(f), a person who 

has filed a claim to the property may petition for its release 

under § 983(f).

(ii) If a petition for release is filed before a judicial 

forfeiture action is filed against the property, the petition 

may be filed either in the district where the property 

was seized or in the district where a warrant to seize the 

property issued. If a judicial forfeiture action against 

the property is later filed in another district—or if the 

government shows that the action will be filed in another 

district—the petition may be transferred to that district 

under 28 U.S.C. § 1404.

(e) Excessive Fines. A claimant may seek to mitigate a 

forfeiture under the Excessive Fines Clause of the Eighth 

Amendment by motion for summary judgment or by motion 

made after entry of a forfeiture judgment if:

(i) the claimant has pleaded the defense under Rule 8; and

(ii) the parties have had the opportunity to conduct civil 

discovery on the defense.

(9) Trial. Trial is to the court unless any party demands trial 

by jury under Rule 38.

Amended: eff. Dec. 1, 2009.

Rule G. Advisory Committee Notes.

2006 Adoption

Rule G is added to bring together the central procedures 

that govern civil forfeiture actions. Civil forfeiture 

actions are in rem proceedings, as are many admiralty 

proceedings. As the number of civil forfeiture actions 

has increased, however, reasons have appeared to 

create sharper distinctions within the framework of 

the Supplemental Rules. Civil forfeiture practice will 

benefit from distinctive provisions that express and focus 

developments in statutory, constitutional, and decisional 

law. Admiralty practice will be freed from the pressures 

that arise when the needs of civil forfeiture proceedings 

counsel interpretations of common rules that may not be 

suitable for admiralty proceedings.

Rule G generally applies to actions governed by the Civil 

Asset Forfeiture Reform Act of 2000 (CAFRA) and also to 

actions excluded from it. The rule refers to some specific 

CAFRA provisions; if these statutes are amended, the rule 

should be adapted to the new provisions during the period 

required to amend the rule.

Rule G is not completely self-contained. Subdivision (1) 

recognizes the need to rely at times on other Supplemental 

Rules and the place of the Supplemental Rules within the 

basic framework of the Civil Rules.

Supplemental Rules A, C, and E are amended to reflect 

the adoption of Rule G.

Subdivision (1). Rule G is designed to include the 

distinctive procedures that govern a civil forfeiture action. 

Some details, however, are better supplied by relying on 

Rules C and E. Subdivision (1) incorporates those rules for 

issues not addressed by Rule G. This general incorporation 

is at times made explicit — subdivision (7)(b)(v), for 

example, invokes the security provisions of Rule E. But 

Rules C and E are not to be invoked to create conflicts 

with Rule G. They are to be used only when Rule G, fairly 

construed, does not address the issue.

The Civil Rules continue to provide the procedural 

framework within which Rule G and the other 

Supplemental Rules operate. Both Rule G(1) and Rule A 

state this basic proposition. Rule G, for example, does not 

address pleadings amendments. Civil Rule 15 applies, in 

light of the circumstances of a forfeiture action.
Asset Forfeiture Statutes • 175

Rule G

Subdivision (2). Rule E(2)(a) requires that the complaint 

in an admiralty action “state the circumstances from which 

the claim arises with such particularity that the defendant 

or claimant will be able, without moving for a more 

definite statement, to commence an investigation of the 

facts and to frame a responsive pleading.” Application of 

this standard to civil forfeiture actions has evolved to the 

standard stated in subdivision (2)(f). The complaint must 

state sufficiently detailed facts to support a reasonable 

belief that the government will be able to meet its burden 

of proof at trial. See U. S. v. Mondragon, 313 F.3d 862 

(4th Cir. 2002). Subdivision (2)(f) carries this forfeiture 

case law forward without change.

Subdivision (3). Subdivision (3) governs in rem process 

in a civil forfeiture action.

Paragraph (a). Paragraph (a) reflects the provisions of 

18 U.S.C. § 985.

Paragraph (b). Paragraph (b) addresses arrest warrants 

when the defendant is not real property. Subparagraph 

(i) directs the clerk to issue a warrant if the property 

is in the government’s possession, custody, or control. 

If the property is not in the government’s possession, 

custody, or control and is not subject to a restraining order, 

subparagraph (ii) provides that a warrant issues only if 

the court finds probable cause to arrest the property. This 

provision departs from former Rule C(3)(a)(i), which 

authorized issuance of summons and warrant by the clerk 

without a probable-cause finding. The probable-cause 

finding better protects the interests of persons interested in 

the property. Subparagraph (iii) recognizes that a warrant 

is not necessary if the property is subject to a judicial 

restraining order. The government remains free, however, 

to seek a warrant if it anticipates that the restraining order 

may be modified or vacated.

Paragraph (c). Subparagraph (ii) requires that the 

warrant and any supplemental process be served as 

soon as practicable unless the property is already in the 

government’s possession, custody, or control. But it 

authorizes the court to order a different time. The authority 

to order a different time recognizes that the government 

may have secured orders sealing the complaint in a civil 

forfeiture action or have won a stay after filing. The seal 

or stay may be ordered for reasons, such as protection of 

an ongoing criminal investigation, that would be defeated 

by prompt service of the warrant. Subparagraph (ii) does 

not reflect any independent ground for ordering a seal or 

stay, but merely reflects the consequences for execution 

when sealing or a stay is ordered. A court also may order 

a different time for service if good cause is shown for 

reasons unrelated to a seal or stay. Subparagraph (iv) 

reflects the uncertainty surrounding service of an arrest 

warrant on property not in the United States. It is not 

possible to identify in the rule the appropriate authority 

for serving process in all other countries. Transmission 

of the warrant to an appropriate authority, moreover, 

does not ensure that the warrant will be executed. The 

rule requires only that the warrant be transmitted to an 

appropriate authority.

Subdivision (4). Paragraph (a). Paragraph (a) reflects 

the traditional practice of publishing notice of an in rem 

action.

Subparagraph (i) recognizes two exceptions to the general 

publication requirement. Publication is not required if the 

defendant property is worth less than $1,000 and direct 

notice is sent to all reasonably identifiable potential 

claimants as required by subdivision (4)(b). Publication 

also is not required if the cost would exceed the property’s 

value and the court finds that other means of notice 

would satisfy due process. Publication on a governmentestablished internet forfeiture site, as contemplated by 

subparagraph (iv), would be at a low marginal publication 

cost, which would likely be the cost to compare to the 

property value.

Subparagraph (iv) states the basic criterion for selecting 

the means and method of publication. The purpose is to 

adopt a means reasonably calculated to reach potential 

claimants. The government should choose from among 

these means a method that is reasonably likely to 

reach potential claimants at a cost reasonable in the 

circumstances.

If the property is in the United States and newspaper 

notice is chosen, publication may be where the action is 

filed, where the property was seized, or — if the property 

was not seized — where the property is located. Choice 

among these places is influenced by the probable location 

of potential claimants.

If the property is not in the United States, account must be 

taken of the sensitivities that surround publication of legal 

notices in other countries. A foreign country may forbid 

local publication. If potential claimants are likely to be 

in the United States, publication in the district where the 

action is filed may be the best choice. If potential claimants 

are likely to be located abroad, the better choice may be 

publication by means generally circulated in the country 

where the property is located.

Newspaper publication is not a particularly effective 

means of notice for most potential claimants. Its traditional 

use is best defended by want of affordable alternatives. 

Paragraph (iv)(C) contemplates a government-created 

internet forfeiture site that would provide a single easily 

identified means of notice. Such a site could allow much 
176 • Asset Forfeiture Statutes

Rule G 

more direct access to notice as to any specific property 

than publication provides.

Paragraph (b). Paragraph (b) is entirely new. For the 

first time, Rule G expressly recognizes the due process 

obligation to send notice to any person who reasonably 

appears to be a potential claimant.

Subparagraph (i) states the obligation to send notice. Many 

potential claimants will be known to the government 

because they have filed claims during the administrative 

forfeiture stage. Notice must be sent, however, no matter 

what source of information makes it reasonably appear 

that a person is a potential claimant. The duty to send 

notice terminates when the time for filing a claim expires.

Notice of the action does not require formal service of 

summons in the manner required by Rule 4 to initiate 

a personal action. The process that begins an in rem 

forfeiture action is addressed by subdivision (3). This 

process commonly gives notice to potential claimants. 

Publication of notice is required in addition to this process. 

Due process requirements have moved beyond these 

traditional means of notice, but are satisfied by practical 

means that are reasonably calculated to accomplish actual 

notice.

Subparagraph (ii)(B) directs that the notice state a deadline 

for filing a claim that is at least 35 days after the notice is 

sent. This provision applies both in actions that fall within 

18 U.S.C. § 983(a)(4)(A) and in other actions. Section 

983(a)(4)(A) states that a claim should be filed no later 

than 30 days after service of the complaint. The variation 

introduced by subparagraph (ii)(B) reflects the procedure 

of § 983(a)(2)(B) for nonjudicial forfeiture proceedings. 

The nonjudicial procedure requires that a claim be filed 

“not later than the deadline set forth in a personal notice 

letter (which may be not earlier than 35 days after the 

date the letter is sent) * * *.” This procedure is as suitable 

in a civil forfeiture action as in a nonjudicial forfeiture 

proceeding. Thirty-five days after notice is sent ordinarily 

will extend the claim time by no more than a brief period; 

a claimant anxious to expedite proceedings can file 

the claim before the deadline; and the government has 

flexibility to set a still longer period when circumstances 

make that desirable.

Subparagraph (iii) begins by stating the basic requirement 

that notice must be sent by means reasonably calculated 

to reach the potential claimant. No attempt is made to 

list the various means that may be reasonable in different 

circumstances. It may be reasonable, for example, to 

rely on means that have already been established for 

communication with a particular potential claimant. 

The government’s interest in choosing a means likely 

to accomplish actual notice is bolstered by its desire 

to avoid post-forfeiture challenges based on arguments 

that a different method would have been more likely 

to accomplish actual notice. Flexible rule language 

accommodates the rapid evolution of communications 

technology.

Notice may be directed to a potential claimant through 

counsel, but only to counsel already representing the 

claimant with respect to the seizure of the property, or in a 

related investigation, administrative forfeiture proceeding, 

or criminal case.

Subparagraph (iii)(C) reflects the basic proposition that 

notice to a potential claimant who is incarcerated must 

be sent to the place of incarceration. Notice directed to 

some other place, such as a pre-incarceration residence, is 

less likely to reach the potential claimant. This provision 

does not address due process questions that may arise if 

a particular prison has deficient procedures for delivering 

notice to prisoners. See Dusenbery v. U.S., 534 U.S. 161 

(2002).

Items (D) and (E) of subparagraph (iii) authorize the 

government to rely on an address given by a person who 

is not incarcerated. The address may have been given to 

the agency that arrested or released the person, or to the 

agency that seized the property. The government is not 

obliged to undertake an independent investigation to 

verify the address.

Subparagraph (iv) identifies the date on which notice is 

considered to be sent for some common means, without 

addressing the circumstances for choosing among the 

identified means or other means. The date of sending 

should be determined by analogy for means not listed. 

Facsimile transmission, for example, is sent upon 

transmission. Notice by personal delivery is sent on 

delivery.

Subparagraph (v), finally, reflects the purpose to effect 

actual notice by providing that a potential claimant who 

had actual notice of a forfeiture proceeding cannot oppose 

or seek relief from forfeiture because the government 

failed to comply with subdivision (4)(b).

Subdivision (5). Paragraph (a). Paragraph (a) establishes 

that the first step of contesting a civil forfeiture action 

is to file a claim. A claim is required by 18 U.S.C. 

§ 983(a) (4) (A) for actions covered by § 983. Paragraph 

(a) applies this procedure as well to actions not covered 

by § 983. “Claim” is used to describe this first pleading 

because of the statutory references to claim and claimant. 

It functions in the same way as the statement of interest 

prescribed for an admiralty proceeding by Rule C(6), 
Asset Forfeiture Statutes • 177

Rule G

and is not related to the distinctive meaning of “claim” 

in admiralty practice.

If the claimant states its interest in the property to be as 

bailee, the bailor must be identified. A bailee who files a 

claim on behalf of a bailor must state the bailee’s authority 

to do so.

The claim must be signed under penalty of perjury by 

the person making it. An artificial body that can act only 

through an agent may authorize an agent to sign for it. 

Excusable inability of counsel to obtain an appropriate 

signature may be grounds for an extension of time to file 

the claim.

Paragraph (a)(ii) sets the time for filing a claim. Item 

(C) applies in the relatively rare circumstance in which 

notice is not published and the government did not send 

direct notice to the claimant because it did not know of 

the claimant or did not have an address for the claimant.

Paragraph (b). Under 18 U.S.C. § 983(a)(4)(B), which 

governs many forfeiture proceedings, a person who asserts 

an interest by filing a claim “shall file an answer to the 

Government’s complaint for forfeiture not later than 20 

days after the date of the filing of the claim.” Paragraph 

(b) recognizes that this statute works within the general 

procedures established by Civil Rule 12. Rule 12(a)(4) 

suspends the time to answer when a Rule 12 motion is 

served within the time allowed to answer. Continued 

application of this rule to proceedings governed by 

§ 983(a)(4)(B) serves all of the purposes advanced by 

Rule 12(a)(4), see U. S. v. $8,221,877.16, 330 F.3d 141 

(3d Cir. 2003); permits a uniform procedure for all civil 

forfeiture actions; and recognizes that a motion under Rule 

12 can be made only after a claim is filed that provides 

background for the motion.

Failure to present an objection to in rem jurisdiction or to 

venue by timely motion or answer waives the objection. 

Waiver of such objections is familiar. An answer may 

be amended to assert an objection initially omitted. But 

Civil Rule 15 should be applied to an amendment that for 

the first time raises an objection to in rem jurisdiction by 

analogy to the personal jurisdiction objection provision 

in Civil Rule 12(h)(1)(B). The amendment should be 

permitted only if it is permitted as a matter of course 

under Rule 15(a).

A claimant’s motion to dismiss the action is further 

governed by subdivisions (6)(c), (8)(b), and (8)(c).

Subdivision (6). Subdivision (6) illustrates the adaptation 

of an admiralty procedure to the different needs of civil 

forfeiture. Rule C(6) permits interrogatories to be served 

with the complaint in an in rem action without limiting 

the subjects of inquiry. Civil forfeiture practice does 

not require such an extensive departure from ordinary 

civil practice. It remains useful, however, to permit the 

government to file limited interrogatories at any time 

after a claim is filed to gather information that bears 

on the claimant’s standing. Subdivisions (8)(b) and (c) 

allow a claimant to move to dismiss only if the claimant 

has standing, and recognize the government’s right to 

move to dismiss a claim for lack of standing. Subdivision 

(6) interrogatories are integrated with these provisions 

in that the interrogatories are limited to the claimant’s 

identity and relationship to the defendant property. If the 

claimant asserts a relationship to the property as bailee, 

the interrogatories can inquire into the bailor’s interest 

in the property and the bailee’s relationship to the bailor. 

The claimant can accelerate the time to serve subdivision 

(6) interrogatories by serving a motion to dismiss — the 

interrogatories must be served within 20 days after the 

motion is served. Integration is further accomplished by 

deferring the government’s obligation to respond to a 

motion to dismiss until 20 days after the claimant moving 

to dismiss has answered the interrogatories.

Special interrogatories served under Rule G(6) do not 

count against the presumptive 25-interrogatory limit 

established by Rule 33(a). Rule 33 procedure otherwise 

applies to these interrogatories.

Subdivision (6) supersedes the discovery “moratorium” 

of Rule 26(d) and the broader interrogatories permitted 

for admiralty proceedings by Rule C(6).

Subdivision (7). Paragraph (a). Paragraph (a) is adapted 

from Rule E(9)(b). It provides for preservation orders 

when the government does not have actual possession 

of the defendant property. It also goes beyond Rule E(9) 

by recognizing the need to prevent use of the defendant 

property in ongoing criminal offenses.

Paragraph (b). Paragraph (b)(i)(C) recognizes the 

authority, already exercised in some cases, to order sale 

of property subject to a defaulted mortgage or to defaulted 

taxes. The authority is narrowly confined to mortgages and 

tax liens; other lien interests may be addressed, if at all, 

only through the general good-cause provision. The court 

must carefully weigh the competing interests in each case.

Paragraph (b)(i)(D) establishes authority to order sale for 

good cause. Good cause may be shown when the property 

is subject to diminution in value. Care should be taken 

before ordering sale to avoid diminished value.

Paragraph (b)(iii) recognizes that if the court approves, the 

interests of all parties may be served by their agreement 

to sale, aspects of the sale, or sale procedures that depart 

from governing statutory procedures.
178 • Asset Forfeiture Statutes

Rule G 

Paragraph (c) draws from Rule E(9)(a), (b), and (c). 

Disposition of the proceeds as provided by law may 

require resolution of disputed issues. A mortgagee’s claim 

to the property or sale proceeds, for example, may be 

disputed on the ground that the mortgage is not genuine. 

An undisputed lien claim, on the other hand, may be 

recognized by payment after an interlocutory sale.

Subdivision (8). Subdivision (8) addresses a number of 

issues that are unique to civil forfeiture actions.

Paragraph (a). Standing to suppress use of seized property 

as evidence is governed by principles distinct from the 

principles that govern claim standing. A claimant with 

standing to contest forfeiture may not have standing to 

seek suppression. Rule G does not of itself create a basis 

of suppression standing that does not otherwise exist.

Paragraph (b). Paragraph (b)(i) is one element of the 

system that integrates the procedures for determining a 

claimant’s standing to claim and for deciding a claimant’s 

motion to dismiss the action. Under paragraph (c)(ii), a 

motion to dismiss the action cannot be addressed until 

the court has decided any government motion to strike 

the claim or answer. This procedure is reflected in the (b)

(i) reminder that a motion to dismiss the forfeiture action 

may be made only by a claimant who establishes claim 

standing. The government, moreover, need not respond 

to a claimant’s motion to dismiss until 20 days after the 

claimant has answered any subdivision (6) interrogatories.

Paragraph (b)(ii) mirrors 18 U.S.C. § 983(a)(3)(D). It 

applies only to an action independently governed by 

§ 983(a)(3)(D), implying nothing as to actions outside 

§ 983(a)(3)(D). The adequacy of the complaint is 

measured against the pleading requirements of subdivision 

(2), not against the quality of the evidence available to the 

government when the complaint was filed.

Paragraph (c). As noted with paragraph (b), paragraph (c) 

governs the procedure for determining whether a claimant 

has standing. It does not address the principles that govern 

claim standing.

Paragraph (c)(i)(A) provides that the government may 

move to strike a claim or answer for failure to comply with 

the pleading requirements of subdivision (5) or to answer 

subdivision (6) interrogatories. As with other pleadings, 

the court should strike a claim or answer only if satisfied 

that an opportunity should not be afforded to cure the 

defects under Rule 15. Not every failure to respond to 

subdivision (6) interrogatories warrants an order striking 

the claim. But the special role that subdivision (6) plays 

in the scheme for determining claim standing may justify 

a somewhat more demanding approach than the general 

approach to discovery sanctions under Rule 37.

Paragraph (c)(ii) directs that a motion to strike a claim or 

answer be decided before any motion by the claimant to 

dismiss the action. A claimant who lacks standing is not 

entitled to challenge the forfeiture on the merits.

Paragraph (c)(ii) further identifies three procedures for 

addressing claim standing. If a claim fails on its face to 

show facts that support claim standing, the claim can be 

dismissed by judgment on the pleadings. If the claim 

shows facts that would support claim standing, those 

facts can be tested by a motion for summary judgment. If 

material facts are disputed, precluding a grant of summary 

judgment, the court may hold an evidentiary hearing. The 

evidentiary hearing is held by the court without a jury. The 

claimant has the burden to establish claim standing at a 

hearing; procedure on a government summary judgment 

motion reflects this allocation of the burden.

Paragraph (d). The hardship release provisions of 18 

U.S.C. § 983(f) do not apply to a civil forfeiture action 

exempted from § 983 by § 983(i).

Paragraph (d)(ii) reflects the venue provisions of 18 U.S.C. 

§ 983(f)(3)(A) as a guide to practitioners. In addition, it 

makes clear the status of a civil forfeiture action as a “civil 

action” eligible for transfer under 28 U.S.C. § 1404. A 

transfer decision must be made on the circumstances of 

the particular proceeding. The district where the forfeiture 

action is filed has the advantage of bringing all related 

proceedings together, avoiding the waste that flows from 

consideration of different parts of the same forfeiture 

proceeding in the court where the warrant issued or the 

court where the property was seized. Transfer to that court 

would serve consolidation, the purpose that underlies 

nationwide enforcement of a seizure warrant. But there 

may be offsetting advantages in retaining the petition 

where it was filed. The claimant may not be able to litigate, 

effectively or at all, in a distant court. Issues relevant to 

the petition may be better litigated where the property 

was seized or where the warrant issued. One element, for 

example, is whether the claimant has sufficient ties to the 

community to provide assurance that the property will be 

available at the time of trial. Another is whether continued 

government possession would prevent the claimant from 

working. Determining whether seizure of the claimant’s 

automobile prevents work may turn on assessing the 

realities of local public transit facilities.

Paragraph (e). The Excessive Fines Clause of the Eighth 

Amendment forbids an excessive forfeiture. U.S. v. 

Bajakajian, 524 U.S. 321 (1998). 18 U.S.C. § 983(g) 

provides a “petition” “to determine whether the forfeiture 

was constitutionally excessive” based on finding “that 

the forfeiture is grossly disproportional to the offense.” 

Paragraph (e) describes the procedure for § 983(g) 
Asset Forfeiture Statutes • 179

Rule G

mitigation petitions and adopts the same procedure 

for forfeiture actions that fall outside § 983(g). The 

procedure is by motion, either for summary judgment or 

for mitigation after a forfeiture judgment is entered. The 

claimant must give notice of this defense by pleading, 

but failure to raise the defense in the initial answer may 

be cured by amendment under Rule 15. The issues that 

bear on mitigation often are separate from the issues that 

determine forfeiture. For that reason it may be convenient 

to resolve the issue by summary judgment before trial 

on the forfeiture issues. Often, however, it will be more 

convenient to determine first whether the property is to be 

forfeited. Whichever time is chosen to address mitigation, 

the parties must have had the opportunity to conduct 

civil discovery on the defense. The extent and timing of 

discovery are governed by the ordinary rules.

Subdivision (9). Subdivision (9) serves as a reminder 

of the need to demand jury trial under Rule 38. It does 

not expand the right to jury trial. See U.S. v. One Parcel 

of Property Located at 32 Medley Lane, 2005 WL 

465421 (D.Conn.2005), ruling that the court, not the 

jury, determines whether a forfeiture is constitutionally 

excessive.

2009 Amendments

The times set in the former rule at 20 days have been 

revised to 21 days. See the Note to Rule 6.

TITLE 18..............................................................................................................................................1

18 U.S.C. § 981. Civil forfeiture..............................................................................................................................1

18 U.S.C. § 982. Criminal forfeiture........................................................................................................................6

18 U.S.C. § 983. General rules for civil forfeiture proceedings. .............................................................................8

18 U.S.C. § 984. Civil forfeiture of fungible property...........................................................................................13

18 U.S.C. § 986. Subpoenas for bank records........................................................................................................14

18 U.S.C. § 1956. Laundering of monetary instruments. .....................................................................................14

18 U.S.C. § 1957. Engaging in monetary transactions in property derived from specified unlawful activity. .....18

18 U.S.C. § 1960. Prohibition of unlicensed money transmitting businesses. ......................................................19

18 U.S.C. § 1961(1). Definitions...........................................................................................................................19

18 U.S.C. § 2339A. Providing material support to terrorists. ...............................................................................20

18 U.S.C. § 2339B. Providing material support or resources to designated foreign terrorist organizations. .......21

18 U.S.C. § 2339C. Prohibitions against the financing of terrorism.....................................................................23

TITLE 21............................................................................................................................................26

21 U.S.C. § 853. Criminal forfeitures. ...................................................................................................................26

TITLE 26............................................................................................................................................30

26 U.S.C. § 6050I. Returns relating to cash received in trade or business, etc. ....................................................30

TITLE 31............................................................................................................................................32

31 U.S.C. § 5312. Definitions and application. .....................................................................................................32

31 U.S.C. § 5313. Reports on domestic coins and currency transaction. .............................................................33

31 U.S.C. § 5316. Reports on exporting and importing monetary instruments.....................................................35

31 U.S.C. § 5317. Search and forfeiture of monetary instruments........................................................................35

31 U.S.C. § 5318. Compliance, exemptions, and summons authority...................................................................36

31 U.S.C. § 5318A. Special measures for jurisdictions, financial institutions, international transactions, or types 

of accounts of primary money laundering concern.............................................................................................42

31 U.S.C. § 5321. Civil penalties...........................................................................................................................45

31 U.S.C. § 5322. Criminal penalties. ...................................................................................................................47

31 U.S.C. § 5324. Structuring transactions involving financial institutions to evade reporting requirement 

prohibited. ...........................................................................................................................................................47

31 U.S.C. § 5326. Records of certain domestic coin and currency transactions. ..................................................48

31 U.S.C. § 5330. Registration of money transmitting businesses........................................................................49

31 U.S.C. § 5331. Reports relating to coins and currency received in nonfinancial trade or business. ................50

31 U.S.C. § 5332. Bulk cash smuggling into or out of the United States..............................................................51

Table of Contents

Part II—Money Laundering Statutes
ii • Money Laundering Statutes

Table of Contents

31 CFR CHAPTER X ........................................................................................................................53

CROSS REFERENCE INDEX.......................................................................................................53

31 CFR CHAPTER X ........................................................................................................................54

SUBJECT MATTER INDEX..........................................................................................................54

31 C.F.R. CHAPTER X. FINANCIAL CRIMES ENFORCEMENT NETWORK, DEPARTMENT OF 

THE TREASURY...........................................................................................................................55

31 C.F.R. § 1010.100. General definitions. ..........................................................................................................55

31 C.F.R. § 1010.306. Filing of reports. ..............................................................................................................62

31 C.F.R. § 1010.311. Filing obligations for reports of transactions in currency. ...............................................63

31 C.F.R. § 1010.312. Identification required. .....................................................................................................63

31 C.F.R. § 1010.313. Aggregation. ....................................................................................................................63

31 C.F.R. § 1010.314. Structured transactions. ....................................................................................................63

31 C.F.R. § 1010.315. Exemptions for non-bank financial institutions. ..............................................................64

31 C.F.R. § 1010.330. Reports relating to currency in excess of $10,000 received in a trade or business. ........64

31 C.F.R. § 1010.340. Reports of transportation of currency or monetary instruments. .....................................68

31 C.F.R. § 1010.350. Reports of foreign financial accounts. .............................................................................69

31 C.F.R. § 1010.370. Reports of certain domestic coin and currency transactions. ..........................................72

31 C.F.R. § 1010.410. Records to be made and retained by financial institutions. .............................................72

31 C.F.R. § 1010.415. Purchases of bank checks and drafts, cashier’s checks, money orders and traveler’s 

checks. ................................................................................................................................................................75

31 C.F.R. § 1010.610. Due diligence programs for correspondent accounts for foreign financial institutions. ..76

31 C.F.R. § 1010.620. Due diligence programs for private banking accounts. ...................................................78

31 C.F.R. § 1020.100. Definitions. ......................................................................................................................79

31 C.F.R. § 1020.220. Customer Identification Programs for banks, savings associations, credit unions, and 

certain non-Federally regulated banks. ..............................................................................................................80

31 C.F.R. § 1020.315. Transactions of exempt persons. ......................................................................................83

31 C.F.R. § 1020.320. Reports by banks of suspicious transactions. ..................................................................86

31 C.F.R. § 1020.410. Records to be made and retained by banks. .....................................................................87

31 C.F.R. § 1021.311. Filing obligations. .............................................................................................................91

31 C.F.R. § 1021.313. Aggregation. ....................................................................................................................91

31 C.F.R. § 1021.320. Reports by casinos of suspicious transactions. ................................................................92

31 C.F.R. § 1021.330. Exceptions to the reporting requirements of 31 U.S.C. 5331. .........................................93

31 C.F.R. § 1022.210. Anti-money laundering programs for money services businesses....................................94

31 C.F.R. § 1022.320. Reports by money services businesses of suspicious transactions. .................................95

31 C.F.R. § 1022.380. Registration of money services businesses.......................................................................97

31 C.F.R. § 1023.320. Reports by brokers or dealers in securities of suspicious transactions. ...........................99

31 C.F.R. § 1024.320. Reports by mutual funds of suspicious transactions. .....................................................101

31 C.F.R. § 1025.320. Reports by insurance companies of suspicious transactions. ........................................103

To be used for violations occurring on or after March 1, 2011.
Money Laundering Statutes • iii

Table of Contents

31 C.F.R. PART 103. FINANCIAL RECORDKEEPING AND REPORTING OF CURRENCY AND 

FOREIGN TRANSACTIONS.......................................................................................................106

31 C.F.R. § 103.11. Meaning of terms.................................................................................................................106

31 C.F.R. § 103.15. Reports by mutual funds of suspicious transactions. .......................................................... 111

31 C.F.R. § 103.16. Reports by insurance companies of suspicious transactions............................................... 112

31 C.F.R. § 103.18. Reports by banks of suspicious transactions....................................................................... 114

31 C.F.R. § 103.19. Reports by brokers or dealers in securities of suspicious transactions. .............................. 115

31 C.F.R. § 103.20. Reports by money services businesses of suspicious transactions...................................... 117

31 C.F.R. § 103.21. Reports by casinos of suspicious transactions..................................................................... 118

31 C.F.R. § 103.22. Reports of transactions in currency. .................................................................................... 119

31 C.F.R. § 103.23. Reports of transportation of currency or monetary instruments..........................................124

31 C.F.R. § 103.24. Reports of foreign financial accounts. ................................................................................124

31 C.F.R. § 103.26. Reports of certain domestic coin and currency transactions. ..............................................125

31 C.F.R. § 103.27. Filing of reports...................................................................................................................125

31 C.F.R. § 103.28. Identification required. ........................................................................................................126

31 C.F.R. § 103.29. Purchases of bank checks and drafts, cashier’s checks, money orders and traveler’s 

checks................................................................................................................................................................126

31 C.F.R. § 103.30. Reports relating to currency in excess of $10,000 received in a trade or business.............127

31 C.F.R. § 103.33. Records to be made and retained by financial institutions..................................................132

31 C.F.R. § 103.41. Registration of money services businesses. ........................................................................137

31 C.F.R. § 103.121. Customer Identification Programs for banks, savings associations, credit unions, and 

certain non-Federally regulated banks. .............................................................................................................139

31 C.F.R. § 103.125. Anti-money laundering programs for money services businesses....................................142

31 C.F.R. § 103.176. Due diligence programs for correspondent accounts for foreign financial institutions. ...143

31 C.F.R. § 103.178. Due diligence programs for private banking accounts......................................................145

To be used for violations occurring before March 1, 2011.

Money Laundering Statutes • 1

18 U.S.C. § 981

TITLE 18

18 U.S.C. § 981. Civil forfeiture.

(a)(1) The following property is subject to forfeiture to the 

United States:

(A) Any property, real or personal, involved in a 

transaction or attempted transaction in violation of section 

1956, 1957 or 1960 of this title, or any property traceable 

to such property.

(B) Any property, real or personal, within the 

jurisdiction of the United States, constituting, derived 

from, or traceable to, any proceeds obtained directly or 

indirectly from an offense against a foreign nation, or any 

property used to facilitate such an offense, if the offense—

(i) involves trafficking in nuclear, chemical, 

biological, or radiological weapons technology or 

material, or the manufacture, importation, sale, or 

distribution of a controlled substance (as that term is 

defined for purposes of the Controlled Substances Act), 

or any other conduct described in section 1956(c)(7)(B);

(ii) would be punishable within the jurisdiction of 

the foreign nation by death or imprisonment for a term 

ex-ceeding 1 year; and

(iii) would be punishable under the laws of the 

United States by imprisonment for a term exceeding 1 

year, if the act or activity constituting the offense had 

occurred within the jurisdiction of the United States.

(C) Any property, real or personal, which constitutes or 

is derived from proceeds traceable to a violation of section 

215, 471, 472, 473, 474, 476, 477, 478, 479, 480, 481, 485, 

486, 487, 488, 501, 502, 510, 542, 545, 656, 657, 670, 842, 

844, 1005, 1006, 1007, 1014, 1028, 1029, 1030, 1032, or 

1344 of this title or any offense constituting “specified 

unlawful activity” (as defined in section 1956(c)(7) of this 

title), or a conspiracy to commit such offense.

See Appendix A for a list of all violations of federal 

and state or foreign law identified as “specified 

unlawful activity” under 18 U.S.C. § 1956(c)(7). See 

also text of section 1956(c)(7) at page 55.

(D) Any property, real or personal, which represents 

or is traceable to the gross receipts obtained, directly or 

indirectly, from a violation of—

(i) section 666(a)(1) (relating to Federal program 

fraud);

(ii) section 1001 (relating to fraud and false 

statements);

(iii) section 1031 (relating to major fraud against 

the United States);

(iv) section 1032 (relating to concealment of assets 

from conservator or receiver of insured financial 

institution);

(v) section 1341 (relating to mail fraud); or

(vi) section 1343 (relating to wire fraud),

if such violation relates to the sale of assets acquired 

or held by the the Federal Deposit Insurance Corporation, as conservator or receiver for a financial 

institution, or any other conservator for a financial 

institution appointed by the Office of the Comptroller 

of the Currency or the National Credit Union 

Administration, as conservator or liquidating agent for 

a financial institution.

(E) With respect to an offense listed in subsection 

(a)(1)(D) committed for the purpose of executing or 

attempting to execute any scheme or artifice to defraud, 

or for obtaining money or property by means of false 

or fraudulent statements, pretenses, representations or 

promises, the gross receipts of such an offense shall include 

all property, real or personal, tangible or intangible, which 

thereby is obtained, directly or indirectly.

(F) Any property, real or personal, which represents 

or is traceable to the gross proceeds obtained, directly or 

in-directly, from a violation of—

(i) section 511 (altering or removing motor vehicle 

identification numbers);

(ii) section 553 (importing or exporting stolen motor 

vehicles);

(iii) section 2119 (armed robbery of automobiles);

(iv) section 2312 (transporting stolen motor vehicles 

in interstate commerce); or

(v) section 2313 (possessing or selling a stolen motor 

vehicle that has moved in interstate commerce).

(G) All assets, foreign or domestic—

(i) of any individual, entity, or organization engaged 

in planning or perpetrating any any Federal crime of 

terrorism (as defined in section 2332b(g)(5)) against the 

United States, citizens or residents of the United States, 

or their property, and all assets, foreign or domestic, 

affording any person a source of influence over any 

such entity or organization;

(ii) acquired or maintained by any person with the 

intent and for the purpose of supporting, planning, 

conducting, or concealing any Federal crime of 

terrorism (as defined in section 2332b(g)(5) against 
2 • Money Laundering Statutes

18 U.S.C. § 981 

the United States, citizens or residents of the United 

States, or their property;

(iii) derived from, involved in, or used or intended 

to be used to commit any Federal crime of terrorism 

(as defined in section 2332b(g)(5)) against the United 

States, citizens or residents of the United States, or 

their property; or

(iv) of any individual, entity, or organization 

engaged in planning or perpetrating any act of 

international terrorism (as defined in section 2331) 

against any international organization (as defined in 

section 209 of the State Department Basic Authorities 

Act of 1956 (22 U.S.C. 4309(b)) or against any foreign 

Government. Where the property sought for forfeiture 

is located beyond the territorial boundaries of the 

United States, an act in further-ance of such planning or 

perpetration must have occurred within the jurisdiction 

of the United States.

18 U.S.C. § 981(a)(1)(G). Note.

[The following provision was enacted as section 316 of 

Pub. L. 107-56 but was not codified to any section of the 

United States Code.]

(a) Right to contest.- An owner of property that is 

confiscated under any provision of law relating to the 

confiscation of assets of suspected international terrorists, 

may contest that confiscation by filing a claim in the 

manner set forth in the Federal Rules of Civil Procedure 

(Supplemental Rules for Certain Admiralty and Maritime 

Claims), and asserting as an affirmative defense that—

(1) the property is not subject to confiscation under such 

provision of law; or

(2) the innocent owner provisions of section 983(d) of 

title 18, United States Code, apply to the case.

(b) Evidence.- In considering a claim filed under this 

section, the Court may admit evidence that is otherwise 

inadmissible under the Federal Rules of Evidence, if a 

court determines that such evidence is reliable, and that 

compliance with the Federal Rules of Evidence may 

jeopardize the national security interests of the United 

States.

(c) Clarifications.– 

(1) Protection of rights.– The exclusion of certain 

provisions of Federal law from the definition of the term 

“civil forfeiture statute” in section 981(i) of title 18, United 

States Code, shall not be construed to deny an owner of 

property the right to contest the confiscation of assets of 

suspected international terrorists under —

(A) subsection (a) of this section;

(B) the Constitution; or

(C) subchapter II of chapter 5 of title 5, United 

States Code (commonly known as the “Administrative 

Procedure Act”).

(2) Savings clause.– Nothing in this section shall 

limit or otherwise affect any other remedies that may be 

available to an owner of property under section 983 of 

title 18, United States Code, or any other provision of law.

(H) Any property, real or personal, involved in a 

violation or attempted violation, or which constitutes or is 

derived from proceeds traceable to a violation, of section 

2339C of this title.

(2) For purposes of paragraph (1), the term “proceeds” is 

defined as follows:

(A) In cases involving illegal goods, illegal services, 

unlawful activities, and telemarketing and health care 

fraud schemes, the term “proceeds” means property of 

any kind obtained directly or indirectly, as the result of 

the commission of the offense giving rise to forfeiture, and 

any property traceable thereto, and is not limited to the net 

gain or profit realized from the offense.

(B) In cases involving lawful goods or lawful services 

that are sold or provided in an illegal manner, the term 

“proceeds” means the amount of money acquired through 

the illegal transactions resulting in the forfeiture, less the 

direct costs incurred in providing the goods or services. 

The claimant shall have the burden of proof with respect to 

the issue of direct costs. The direct costs shall not include 

any part of the overhead expenses of the entity providing 

the goods or services, or any part of the income taxes paid 

by the entity.

(C) In cases involving fraud in the process of obtaining 

a loan or extension of credit, the court shall allow the 

claimant a deduction from the forfeiture to the extent that 

the loan was repaid, or the debt was satisfied, without any 

financial loss to the victim.

(b)(1) Except as provided in section 985, any property subject 

to forfeiture to the United States under subsection (a) may be 

seized by the Attorney General and, in the case of property 

involved in a violation investigated by the Secretary of the 

Treasury or the United States Postal Service, the property may 

also be seized by the Secretary of the Treasury or the Postal 

Service, respectively.

(2) Seizures pursuant to this section shall be made pursuant 

to a warrant obtained in the same manner as provided for a 

search warrant under the Federal Rules of Criminal Procedure, 

except that a seizure may be made without a warrant if—
Money Laundering Statutes • 3

18 U.S.C. § 981

(A) a complaint for forfeiture has been filed in the 

United States district court and the court issued an arrest 

warrant in rem pursuant to the Supplemental Rules for 

Certain Admiralty and Maritime Claims;

(B) there is probable cause to believe that the property 

is subject to forfeiture and—

(i) the seizure is made pursuant to a lawful arrest 

or search; or

(ii) another exception to the Fourth Amendment 

warrant requirement would apply; or

(C) the property was lawfully seized by a State or 

local law enforcement agency and transferred to a Federal 

agency.

(3) Notwithstanding the provisions of rule 41(a) of the 

Federal Rules of Criminal Procedure, a seizure warrant may 

be issued pursuant to this subsection by a judicial officer in 

any district in which a forfeiture action against the property 

may be filed under section 1355(b) of title 28, and may be 

executed in any district in which the property is found, or 

transmitted to the central authority of any foreign state for 

service in accordance with any treaty or other international 

agreement. Any motion for the return of property seized 

under this section shall be filed in the district court in which 

the seizure warrant was issued or in the district court for the 

district in which the property was seized.

(4)(A) If any person is arrested or charged in a foreign 

country in connection with an offense that would give rise 

to the forfeiture of property in the United States under this 

section or under the Controlled Substances Act, the Attorney 

General may apply to any Federal judge or magistrate judge 

in the district in which the property is located for an ex parte 

order restraining the property subject to forfeiture for not more 

than 30 days, except that the time may be extended for good 

cause shown at a hearing conducted in the manner provided 

in rule 43(e) of the Federal Rules of Civil Procedure.

(B) The application for the restraining order shall set 

forth the nature and circumstances of the foreign charges 

and the basis for belief that the person arrested or charged 

has property in the United States that would be subject to 

forfeiture, and shall contain a statement that the restraining 

order is needed to preserve the availability of property 

for such time as is necessary to receive evidence from the 

foreign country or elsewhere in support of probable cause 

for the seizure of the property under this subsection.

(c) Property taken or detained under this section shall not 

be repleviable, but shall be deemed to be in the custody of 

the Attorney General, the Secretary of the Treasury, or the 

Postal Service, as the case may be, subject only to the orders 

and decrees of the court or the official having jurisdiction 

thereof. Whenever property is seized under this subsection, 

the Attorney General, the Secretary of the Treasury, or the 

Postal Service, as the case may be, may—

(1) place the property under seal;

(2) remove the property to a place designated by him; or

(3) require that the General Services Administration take 

custody of the property and remove it, if practicable, to an 

appropriate location for disposition in accordance with law.

(d) For purposes of this section, the provisions of the customs 

laws relating to the seizure, summary and judicial forfeiture, 

condemnation of property for violation of the customs laws, 

the disposition of such property or the proceeds from the 

sale of such property under this section, the remission or 

mitigation of such forfeitures, and the compromise of claims 

(19 U.S.C. 1602 et seq.), insofar as they are applicable and 

not inconsistent with the provisions of this section, shall 

apply to seizures and forfeitures incurred, or alleged to have 

been incurred, under this section, except that such duties as 

are imposed upon the customs officer or any other person 

with respect to the seizure and forfeiture of property under 

the customs laws shall be performed with respect to seizures 

and forfeitures of property under this section by such officers, 

agents, or other persons as may be authorized or designated 

for that purpose by the Attorney General, the Secretary of 

the Treasury, or the Postal Service, as the case may be. The 

Attorney General shall have sole responsibility for disposing 

of petitions for remission or mitigation with respect to property 

involved in a judicial forfeiture proceeding.

(e) Notwithstanding any other provision of the law, except 

section 3 of the Anti Drug Abuse Act of 1986, the Attorney 

General, the Secretary of the Treasury, or the Postal Service, 

as the case may be, is authorized to retain property forfeited 

pursuant to this section, or to transfer such property on such 

terms and conditions as he may determine—

(1) to any other Federal agency;

(2) to any State or local law enforcement agency which 

participated directly in any of the acts which led to the seizure 

or forfeiture of the property;

(3) in the case of property referred to in subsection (a)(1)

(C), to any Federal financial institution regulatory agency—

(A) to reimburse the agency for payments to claimants 

or creditors of the institution; and

(B) to reimburse the insurance fund of the agency for 

losses suffered by the fund as a result of the receivership 

or liquidation;

(4) in the case of property referred to in subsection (a)

(1)(C), upon the order of the appropriate Federal financial 

institution regulatory agency, to the financial institution as 

restitution, with the value of the property so transferred to be 
4 • Money Laundering Statutes

18 U.S.C. § 981 

set off against any amount later recovered by the financial 

institution as compensatory damages in any State or Federal 

proceeding;

(5) in the case of property referred to in subsection (a)(1)

(C), to any Federal financial institution regulatory agency, 

to the extent of the agency’s contribution of resources to, 

or expenses involved in, the seizure and forfeiture, and the 

investigation leading directly to the seizure and forfeiture, of 

such property;

(6) as restoration to any victim of the offense giving rise 

to the forfeiture, including, in the case of a money laundering 

offense, any offense constituting the underlying specified 

unlawful activity; or

(7) In the case of property referred to in subsection (a)

(1)(D), to the Resolution Trust Corporation, the Federal 

Deposit Insurance Corporation, or any other Federal financial 

institution regulatory agency (as defined in section 8(e)(7)(D) 

of the Federal Deposit Insurance Act).

The Attorney General, the Secretary of the Treasury, or 

the Postal Service, as the case may be, shall ensure the equitable transfer pursuant to paragraph (2) of any forfeited 

property to the appropriate State or local law enforcement 

agency so as to reflect generally the contribution of any 

such agency participating directly in any of the acts which 

led to the seizure or forfeiture of such property. A decision 

by the Attorney General, the Secretary of the Treasury, or 

the Postal Service pursuant to paragraph (2) shall not be 

subject to review. The United States shall not be liable in 

any action arising out of the use of any property the custody 

of which was transferred pursuant to this section to any nonFederal agency. The Attorney General, the Secretary of the 

Treasury, or the Postal Service may order the dis-continuance 

of any forfeiture proceedings under this section in favor of 

the institution of forfeiture proceedings by State or local 

authorities under an appropriate State or local statute. After 

the filing of a complaint for forfeiture under this section, the 

Attorney General may seek dismissal of the complaint in favor 

of forfeiture proceedings under State or local law. Whenever 

forfeiture proceedings are discontinued by the United States 

in favor of State or local proceedings, the United States may 

transfer custody and possession of the seized property to 

the appropriate State or local official immediately upon the 

initiation of the proper actions by such officials. Whenever 

forfeiture proceedings are discontinued by the United States in 

favor of State or local proceedings, notice shall be sent to all 

known interested parties advising them of the discontinuance 

or dismissal. The United States shall not be liable in any 

action arising out of the seizure, detention, and transfer of 

seized property to State or local officials. The United States 

shall not be liable in any action arising out of a transfer under 

paragraph (3), (4), or (5) of this subsection.

(f) All right, title, and interest in property described in 

subsection (a) of this section shall vest in the United States 

upon commission of the act giving rise to forfeiture under 

this section.

(g)(1) Upon the motion of the United States, the court shall 

stay the civil forfeiture proceeding if the court determines 

that civil discovery will adversely affect the ability of the 

Government to conduct a related criminal investigation or 

the prosecution of a related criminal case.

(2) Upon the motion of a claimant, the court shall stay the 

civil forfeiture proceeding with respect to that claimant if the 

court determines that—

(A) the claimant is the subject of a related criminal 

investigation or case;

(B) the claimant has standing to assert a claim in the 

civil forfeiture proceeding; and

(C) continuation of the forfeiture proceeding will 

burden the right of the claimant against self-incrimination 

in the related investigation or case.

(3) With respect to the impact of civil discovery described 

in paragraphs (1) and (2), the court may determine that a stay 

is unnecessary if a protective order limiting discovery would 

protect the interest of one party without unfairly limiting the 

ability of the opposing party to pursue the civil case. In no 

case, however, shall the court impose a pro-tective order as 

an alternative to a stay if the effect of such protective order 

would be to allow one party to pursue discovery while the 

other party is substantially unable to do so.

(4) In this subsection, the terms “related criminal 

case” and “related criminal investigation” mean an actual 

prosecution or investigation in progress at the time at which 

the request for the stay, or any subsequent motion to lift 

the stay is made. In determining whether a criminal case 

or investigation is “related” to a civil forfeiture proceeding, 

the court shall consider the degree of similarity between the 

parties, witnesses, facts, and circumstances involved in the 

two proceedings, without requiring an identity with respect 

to any one or more factors.

(5) In requesting a stay under paragraph (1), the 

Government may, in appropriate cases, submit evidence 

ex parte in order to avoid disclosing any matter that may 

adversely affect an ongoing criminal investigation or pending 

criminal trial.

(6) Whenever a civil forfeiture proceeding is stayed 

pursuant to this subsection, the court shall enter any order 

nec-essary to preserve the value of the property or to protect 

the rights of lienholders or other persons with an interest in 

the property while the stay is in effect.
Money Laundering Statutes • 5

18 U.S.C. § 981

(7) A determination by the court that the claimant has 

standing to request a stay pursuant to paragraph (2) shall apply 

only to this subsection and shall not preclude the Government 

from objecting to the standing of the claimant by dispositive 

motion or at the time of trial.

(h) In addition to the venue provided for in section 1395 of 

title 28 or any other provision of law, in the case of property 

of a defendant charged with a violation that is the basis for 

forfeiture of the property under this section, a proceeding for 

forfeiture under this section may be brought in the judicial 

district in which the defendant owning such property is found 

or in the judicial district in which the criminal prosecution 

is brought.

(i)(1) Whenever property is civilly or criminally forfeited 

under this chapter, the Attorney General or the Secretary of 

the Treasury, as the case may be, may transfer the forfeited 

personal property or the proceeds of the sale of any forfeited 

personal or real property to any foreign country which 

participated directly or indirectly in the seizure or forfeiture 

of the property, if such a transfer—

(A) has been agreed to by the Secretary of State;

(B) is authorized in an international agreement between 

the United States and the foreign country; and

(C) is made to a country which, if applicable, has been 

certified under section 481(h) of the Foreign Assistance 

Act of 1961.

A decision by the Attorney General or the Secretary 

of the Treasury pursuant to this paragraph shall not be 

subject to review. The foreign country shall, in the event of 

a transfer of property or proceeds of sale of property under 

this subsection, bear all expenses incurred by the United 

States in the seizure, maintenance, inventory, storage, 

forfeiture, and disposition of the property, and all transfer 

costs. The payment of all such expenses, and the transfer of 

assets pursuant to this paragraph, shall be upon such terms 

and conditions as the Attorney General or the Secretary of 

the Treasury may, in his discretion, set.

(2) The provisions of this section shall not be construed 

as limiting or superseding any other authority of the United 

States to provide assistance to a foreign country in obtaining 

property related to a crime committed in the foreign country, 

including property which is sought as evidence of a crime 

committed in the foreign country.

(3) A certified order or judgment of forfeiture by a court 

of competent jurisdiction of a foreign country concerning 

property which is the subject of forfeiture under this section 

and was determined by such court to be the type of property 

described in subsection (a)(1)(B) of this section, and any 

certified recordings or transcripts of testimony taken in a 

foreign judicial proceeding concerning such order or judgment 

of forfeiture, shall be admissible in evidence in a proceeding 

brought pursuant to this section. Such certified order or 

judgment of forfeiture, when admitted into evi-dence, shall 

constitute probable cause that the property forfeited by such 

order or judgment of forfeiture is subject to forfeiture under 

this section and creates a rebuttable presumption of the 

forfeitability of such property under this section.

(4) A certified order or judgment of conviction by a court 

of competent jurisdiction of a foreign country concerning an 

unlawful drug activity which gives rise to forfeiture under 

this section and any certified recordings or transcripts of 

testimony taken in a foreign judicial proceeding concerning 

such order or judgment of conviction shall be admissible in 

evidence in a proceeding brought pursuant to this section. 

Such certified order or judgment of conviction, when admitted 

into evidence, creates a rebuttable presumption that the 

unlawful drug activity giving rise to forfeiture under this 

section has occurred.

(5) The provisions of paragraphs (3) and (4) of this 

subsection shall not be construed as limiting the admissibility 

of any evidence otherwise admissible, nor shall they limit the 

ability of the United States to establish probable cause that 

property is subject to forfeiture by any evidence otherwise 

admissible.

(j) For purposes of this section—

(1) the term “Attorney General” means the Attorney 

General or his delegate; and

(2) the term “Secretary of the Treasury” means the 

Secretary of the Treasury or his delegate.

(k) Interbank accounts.—

(1) In general.—

(A) In general.—For the purpose of a forfeiture under 

this section or under the Controlled Substances Act (21 

U.S.C. 801 et seq.), if funds are deposited into an account at 

a foreign financial institution (as defined in section 984(c)

(2)(A) of this title), and that foreign financial institution 

(as defined in section 984(c)(2)(A) of this title) has an 

interbank account in the United States with a covered 

financial institution (as defined in section 5318(j)(1) of 

title 31), the funds shall be deemed to have been deposited 

into the interbank account in the United States, and any 

restraining order, seizure warrant, or arrest warrant in rem 

regarding the funds may be served on the covered financial 

institution, and funds in the interbank account, up to the 

value of the funds deposited into the account at the foreign 

financial institution (as defined in section 984(c)(2)(A) of 

this title), may be restrained, seized, or arrested.

(B) Authority to suspend.—The Attorney General, 

in consultation with the Secretary of the Treasury, may 
6 • Money Laundering Statutes

18 U.S.C. § 982 

suspend or terminate a forfeiture under this section if 

the Attorney General determines that a conflict of law 

exists between the laws of the jurisdiction in which the 

foreign financial institution (as defined in section 984(c)

(2)(A) of this title) is located and the laws of the United 

States with respect to liabilities arising from the restraint, 

seizure, or arrest of such funds, and that such suspension 

or termination would be in the interest of justice and would 

not harm the national interests of the United States.

(2) No requirement for Government to trace funds.—If a 

forfeiture action is brought against funds that are re-strained, 

seized, or arrested under paragraph (1), it shall not be 

necessary for the Government to establish that the funds are 

directly traceable to the funds that were deposited into the 

foreign financial institution (as defined in section 984(c)(2)

(A) of this title), nor shall it be necessary for the Government 

to rely on the application of section 984.

(3) Claims brought by owner of the funds.—If a forfeiture 

action is instituted against funds restrained, seized, or arrested 

under paragraph (1), the owner of the funds deposited into 

the account at the foreign financial institution (as defined in 

section 984(c)(2)(A) of this title) may contest the forfeiture 

by filing a claim under section 983.

(4) Definitions.—For purposes of this subsection, the 

following definitions shall apply:

(A) Interbank account.—The term “interbank account” 

has the same meaning as in section 984(c)(2)(B).

(B) Owner.—

(i) In general.—Except as provided in clause (ii), 

the term “owner”—

(I) means the person who was the owner, as that 

term is defined in section 983(d)(6), of the funds that 

were deposited into the foreign financial institution 

(as defined in section 984(c)(2)(A) of this title) at 

the time such funds were deposited; and

(II) does not include either the foreign financial 

institution (as defined in section 984(c)(2)(A) of 

this title) or any financial institution acting as an 

intermediary in the transfer of the funds into the 

interbank account.

(ii) Exception.—The foreign financial institution (as 

defined in section 984(c)(2)(A) of this title) may be considered the “owner” of the funds (and no other person 

shall qualify as the owner of such funds) only if—

(I) the basis for the forfeiture action is wrongdoing 

committed by the foreign financial institution (as 

defined in section 984(c)(2)(A) of this title); or

(II) the foreign financial institution (as defined 

in section 984(c)(2)(A) of this title) establishes, by 

a pre-ponderance of the evidence, that prior to the 

restraint, seizure, or arrest of the funds, the foreign 

financial institution (as defined in section 984(c)

(2)(A) of this title) had discharged all or part of its 

obligation to the prior owner of the funds, in which 

case the foreign financial institution (as defined in 

section 984(c)(2)(A) of this title) shall be deemed the 

owner of the funds to the extent of such discharged 

obligation.

Amended: Strengthening and Focusing Enforcement to Deter 

Organized Stealing and Enhance Safety Act of 2012, Pub. L. 

112-186, § 3, Oct. 5, 2012, 126 Stat. 1428.

18 U.S.C. § 982. Criminal forfeiture.

(a)(1) The court, in imposing sentence on a person convicted 

of an offense in violation of section 1956, 1957, or 1960 of 

this title, shall order that the person forfeit to the United States 

any property, real or personal, involved in such offense, or 

any property traceable to such property.

(2) The court, in imposing sentence on a person convicted 

of a violation of, or a conspiracy to violate—

(A) section 215, 656, 657, 1005, 1006, 1007, 1014, 

1341, 1343, or 1344 of this title, affecting a financial 

institution, or

(B) section 471, 472, 473, 474, 476, 477, 478, 479, 480, 

481, 485, 486, 487, 488, 501, 502, 510, 542, 545, 555, 842, 

844, 1028, 1029, or 1030 of this title,

shall order that the person forfeit to the United States 

any property constituting, or derived from, proceeds the 

person obtained directly or indirectly, as the result of such 

violation.

(3) The court, in imposing a sentence on a person convicted 

of an offense under—

(A) section 666(a)(1) (relating to Federal program 

fraud);

(B) section 1001 (relating to fraud and false statements);

(C) section 1031 (relating to major fraud against the 

United States);

(D) section 1032 (relating to concealment of assets 

from conservator, receiver, or liquidating agent of insured 

financial institution);

(E) section 1341 (relating to mail fraud); or

(F) section 1343 (relating to wire fraud),
Money Laundering Statutes • 7

18 U.S.C. § 982

(I) that constitutes, or is derived from or is 

traceable to the proceeds obtained directly or 

indirectly from the commission of the offense of 

which the person is convicted; or

(II) that is used to facilitate, or is intended to be 

used to facilitate, the commission of the offense of 

which the person is convicted.

(B) The court, in imposing sentence on a person 

described in subparagraph (A), shall order that the person 

forfeit to the United States all property described in that 

subparagraph.

(7) The court, in imposing sentence on a person convicted 

of a Federal health care offense, shall order the person to 

forfeit property, real or personal, that constitutes or is derived, 

directly or indirectly, from gross proceeds traceable to the 

commission of the offense.

(8) The court, in sentencing a defendant convicted of an 

offense under section 1028, 1029, 1341, 1342, 1343, or 1344, 

or of a conspiracy to commit such an offense, if the offense 

involves telemarketing (as that term is defined in section 

2325), shall order that the defendant forfeit to the United 

States any real or personal property—

(A) used or intended to be used to commit, to facilitate, 

or to promote the commission of such offense; and

(B) constituting, derived from, or traceable to the gross 

proceeds that the defendant obtained directly or indirectly 

as a result of the offense.

(b)(1) The forfeiture of property under this section, including 

any seizure and disposition of the property and any related 

judicial or administrative proceeding, shall be governed by 

the provisions of section 413 (other than subsection (d) of 

that section) of the Comprehensive Drug Abuse Prevention 

and Control Act of 1970 (21 U.S.C. 853).

(2) The substitution of assets provisions of subsection 

413(p) shall not be used to order a defendant to forfeit assets 

in place of the actual property laundered where such defendant 

acted merely as an intermediary who handled but did not retain 

the property in the course of the money laundering offense 

unless the defendant, in committing the offense or offenses 

giving rise to the forfeiture, conducted three or more separate 

transactions involving a total of $100,000 or more in any 

twelve month period.

Amended: Border Tunnel Prevention Act, Pub. L. 112-127, § 5, 

June 5, 2012, 126 Stat. 371.

involving the sale of assets acquired or held by the 

the [FN1] Federal Deposit Insurance Corporation, as 

conservator or receiver for a financial institution or any 

other conservator for a financial institution appointed 

by the Office of the Comptroller of the Currency, or the 

National Credit Union Administration, as conservator or 

liquidating agent for a financial institution, shall order 

that the person forfeit to the United States any property, 

real or personal, which represents or is traceable to the 

gross receipts obtained, directly or indirectly, as a result 

of such violation.

(4) With respect to an offense listed in subsection (a)(3) 

committed for the purpose of executing or attempting to 

execute any scheme or artifice to defraud, or for obtaining 

money or property by means of false or fraudulent statements, 

pretenses, representations, or promises, the gross receipts of 

such an offense shall include any property, real or personal, 

tangible or intangible, which is obtained, directly or indirectly, 

as a result of such offense.

(5) The court, in imposing sentence on a person convicted 

of a violation or conspiracy to violate—

(A) section 511 (altering or removing motor vehicle 

identification numbers);

(B) section 553 (importing or exporting stolen motor 

vehicles);

(C) section 2119 (armed robbery of automobiles);

(D) section 2312 (transporting stolen motor vehicles in 

interstate commerce); or

(E) section 2313 (possessing or selling a stolen motor 

vehicle that has moved in interstate commerce);

shall order that the person forfeit to the United States 

any property, real or personal, which represents or is 

traceable to the gross proceeds obtained, directly or 

indirectly, as a result of such violation.

(6)(A) The court, in imposing sentence on a person 

convicted of a violation of, or conspiracy to violate, section 

274(a), 274A(a)(1), or 274A(a)(2) of the Immigration and 

Nationality Act or section 555, 1425, 1426, 1427, 1541, 

1542, 1543, 1544, or 1546 of this title, or a violation of, or 

conspiracy to violate, section 1028 of this title if committed in 

connection with passport or visa issuance or use, shall order 

that the person forfeit to the United States, regardless of any 

provision of State law—

(i) any conveyance, including any vessel, vehicle, or 

aircraft used in the commission of the offense of which 

the person is convicted; and

(ii) any property real or personal—
8 • Money Laundering Statutes

18 U.S.C. § 983 

necessary, if the court determines, based on a written 

certification of a supervisory official in the headquarters 

office of the seizing agency, that the conditions in 

subparagraph (D) are present. 

(D) The period for sending notice under this paragraph 

may be extended only if there is reason to believe that 

notice may have an adverse result, including—

(i) endangering the life or physical safety of an 

individual;

(ii) flight from prosecution;

(iii) destruction of or tampering with evidence;

(iv) intimidation of potential witnesses; or

(v) otherwise seriously jeopardizing an investigation 

or unduly delaying a trial.

(E) Each of the Federal seizing agencies conducting 

nonjudicial forfeitures under this section shall report 

periodically to the Committees on the Judiciary of the 

House of Representatives and the Senate the number of 

occasions when an extension of time is granted under 

subparagraph (B).

(F) If the Government does not send notice of a seizure 

of property in accordance with subparagraph (A) to 

the person from whom the property was seized, and no 

extension of time is granted, the Government shall return 

the property to that person without prejudice to the right 

of the Government to commence a forfeiture proceeding 

at a later time. The Government shall not be required to 

return contraband or other property that the person from 

whom the property was seized may not legally possess.

(2)(A) Any person claiming property seized in a nonjudicial 

civil forfeiture proceeding under a civil forfeiture statute may 

file a claim with the appropriate official after the seizure.

(B) A claim under subparagraph (A) may be filed not 

later than the deadline set forth in a personal notice letter 

(which deadline may be not earlier than 35 days after the 

date the letter is mailed), except that if that letter is not 

received, then a claim may be filed not later than 30 days 

after the date of final publication of notice of seizure.

(C) A claim shall—

(i) identify the specific property being claimed;

(ii) state the claimant’s interest in such property; and

(iii) be made under oath, subject to penalty of 

perjury.

(D) A claim need not be made in any particular form. 

Each Federal agency conducting nonjudicial forfeitures 

under this section shall make claim forms generally 

18 U.S.C. § 983. General rules for civil 

forfeiture proceedings.

(a) Notice; claim; complaint.—

(1)(A)(i) Except as provided in clauses (ii) through (v), 

in any nonjudicial civil forfeiture proceeding under a civil 

forfeiture statute, with respect to which the Government is 

required to send written notice to interested parties, such 

notice shall be sent in a manner to achieve proper notice as 

soon as practicable, and in no case more than 60 days after 

the date of the seizure.

(ii) No notice is required if, before the 60-day period 

expires, the Government files a civil judicial forfeiture 

action against the property and provides notice of that 

action as required by law.

(iii) If, before the 60-day period expires, the 

Government does not file a civil judicial forfeiture 

action, but does obtain a criminal indictment containing 

an allegation that the property is subject to forfeiture, 

the Government shall either—

(I) send notice within the 60 days and continue 

the nonjudicial civil forfeiture proceeding under 

this section; or

(II) terminate the nonjudicial civil forfeiture 

proceeding, and take the steps necessary to preserve 

its right to maintain custody of the property as 

provided in the applicable criminal forfeiture statute.

(iv) In a case in which the property is seized by a 

State or local law enforcement agency and turned over 

to a Federal law enforcement agency for the purpose 

of forfeiture under Federal law, notice shall be sent not 

more than 90 days after the date of seizure by the State 

or local law enforcement agency.

(v) If the identity or interest of a party is not 

determined until after the seizure or turnover but is 

determined before a declaration of forfeiture is entered, 

notice shall be sent to such interested party not later than 

60 days after the determination by the Government of 

the identity of the party or the party’s interest.

(B) A supervisory official in the headquarters office 

of the seizing agency may extend the period for sending 

notice under subparagraph (A) for a period not to exceed 

30 days (which period may not be further extended except 

by a court), if the official determines that the conditions in 

subparagraph (D) are present.

(C) Upon motion by the Government, a court may 

extend the period for sending notice under subparagraph 

(A) for a period not to exceed 60 days, which period may 

be further extended by the court for 60-day periods, as 
Money Laundering Statutes • 9

18 U.S.C. § 983

or, as applicable, not later than 30 days after the date of final 

publication of notice of the filing of the complaint.

(B) A person asserting an interest in seized property, in 

accordance with subparagraph (A), shall file an answer to 

the Government’s complaint for forfeiture not later than 

20 days after the date of the filing of the claim.

(b) Representation.—

(1)(A) If a person with standing to contest the forfeiture of 

property in a judicial civil forfeiture proceeding under a civil 

forfeiture statute is financially unable to obtain representation 

by counsel, and the person is represented by counsel appointed 

under section 3006A of this title in connection with a related 

criminal case, the court may authorize counsel to represent 

that person with respect to the claim.

(B) In determining whether to authorize counsel to 

represent a person under subparagraph (A), the court shall 

take into account such factors as—

(i) the person’s standing to contest the forfeiture; and

(ii) whether the claim appears to be made in good 

faith.

(2)(A) If a person with standing to contest the forfeiture of 

property in a judicial civil forfeiture proceeding under a civil 

forfeiture statute is financially unable to obtain representation 

by counsel, and the property subject to forfeiture is real 

property that is being used by the person as a primary 

residence, the court, at the request of the person, shall insure 

that the person is represented by an attorney for the Legal 

Services Corporation with respect to the claim.

(B)(i) At appropriate times during a representation 

under subparagraph (A), the Legal Services Corporation 

shall submit a statement of reasonable attorney fees and 

costs to the court.

(ii) The court shall enter a judgment in favor of the 

Legal Services Corporation for reasonable attorney 

fees and costs submitted pursuant to clause (i) and 

treat such judgment as payable under section 2465 of 

title 28, United States Code, regardless of the outcome 

of the case.

(3) The court shall set the compensation for representation 

under this subsection, which shall be equivalent to that 

provided for court-appointed representation under section 

3006A of this title.

(c) Burden of proof.—In a suit or action brought under any 

civil forfeiture statute for the civil forfeiture of any property—

(1) the burden of proof is on the Government to establish, 

by a preponderance of the evidence, that the property is 

subject to forfeiture;

available on request, which forms shall be written in easily 

understandable language.

(E) Any person may make a claim under subparagraph 

(A) without posting bond with respect to the property 

which is the subject of the claim.

(3)(A) Not later than 90 days after a claim has been 

filed, the Government shall file a complaint for forfeiture in 

the manner set forth in the Supplemental Rules for Certain 

Admiralty and Maritime Claims or return the property pending 

the filing of a complaint, except that a court in the district in 

which the complaint will be filed may extend the period for 

filing a complaint for good cause shown or upon agreement 

of the parties.

(B) If the Government does not—

(i) file a complaint for forfeiture or return the 

property, in accordance with subparagraph (A); or

(ii) before the time for filing a complaint has 

expired—

(I) obtain a criminal indictment containing an 

allegation that the property is subject to forfeiture; 

and

(II) take the steps necessary to preserve its right 

to maintain custody of the property as provided in 

the applicable criminal forfeiture statute,

the Government shall promptly release the property pursuant 

to regulations promulgated by the Attorney General, and may 

not take any further action to effect the civil forfeiture of such 

property in connection with the underlying offense.

(C) In lieu of, or in addition to, filing a civil forfeiture 

complaint, the Government may include a forfeiture 

allegation in a criminal indictment. If criminal forfeiture 

is the only forfeiture proceeding commenced by the 

Government, the Government’s right to continued 

possession of the property shall be governed by the 

applicable criminal forfeiture statute.

(D) No complaint may be dismissed on the ground that 

the Government did not have adequate evidence at the 

time the complaint was filed to establish the forfeitability 

of the property.

(4)(A) In any case in which the Government files in 

the appropriate United States district court a complaint 

for forfeiture of property, any person claiming an interest 

in the seized property may file a claim asserting such 

person’s interest in the property in the manner set forth in 

the Supplemental Rules for Certain Admiralty and Maritime 

Claims, except that such claim may be filed not later than 30 

days after the date of service of the Government’s complaint 
10 • Money Laundering Statutes

18 U.S.C. § 983 

(i) was a bona fide purchaser or seller for value 

(including a purchaser or seller of goods or services 

for value); and

(ii) did not know and was reasonably without cause 

to believe that the property was subject to forfeiture.

(B) An otherwise valid claim under subparagraph (A) 

shall not be denied on the ground that the claimant gave 

nothing of value in exchange for the property if—

(i) the property is the primary residence of the 

claimant;

(ii) depriving the claimant of the property would 

deprive the claimant of the means to maintain 

reasonable shelter in the community for the claimant 

and all dependents residing with the claimant;

(iii) the property is not, and is not traceable to, the 

proceeds of any criminal offense; and

(iv) the claimant acquired his or her interest in the 

property through marriage, divorce, or legal separation, 

or the claimant was the spouse or legal dependent of 

a person whose death resulted in the transfer of the 

property to the claimant through inheritance or probate,

except that the court shall limit the value of any real property 

interest for which innocent ownership is recognized under this 

subparagraph to the value necessary to maintain reasonable 

shelter in the community for such claimant and all dependents 

residing with the claimant.

(4) Notwithstanding any provision of this subsection, no 

person may assert an ownership interest under this subsection 

in contraband or other property that it is illegal to possess.

(5) If the court determines, in accordance with this section, 

that an innocent owner has a partial interest in property 

otherwise subject to forfeiture, or a joint tenancy or tenancy 

by the entirety in such property, the court may enter an 

appropriate order—

(A) severing the property;

(B) transferring the property to the Government with a 

provision that the Government compensate the innocent 

owner to the extent of his or her ownership interest once a 

final order of forfeiture has been entered and the property 

has been reduced to liquid assets; or

(C) permitting the innocent owner to retain the property 

subject to a lien in favor of the Government to the extent 

of the forfeitable interest in the property.

(6) In this subsection, the term “owner“—

(A) means a person with an ownership interest in 

the specific property sought to be forfeited, including a 

(2) the Government may use evidence gathered after 

the filing of a complaint for forfeiture to establish, by a 

preponderance of the evidence, that property is subject to 

forfeiture; and

(3) if the Government’s theory of forfeiture is that the 

property was used to commit or facilitate the commission of 

a criminal offense, or was involved in the commission of a 

criminal offense, the Government shall establish that there was 

a substantial connection between the property and the offense.

(d) Innocent owner defense.—

(1) An innocent owner’s interest in property shall not be 

forfeited under any civil forfeiture statute. The claimant shall 

have the burden of proving that the claimant is an innocent 

owner by a preponderance of the evidence.

(2)(A) With respect to a property interest in existence at the 

time the illegal conduct giving rise to forfeiture took place, 

the term “innocent owner” means an owner who—

(i) did not know of the conduct giving rise to 

forfeiture; or

(ii) upon learning of the conduct giving rise to the 

forfeiture, did all that reasonably could be expected 

under the circumstances to terminate such use of the 

property.

(B)(i) For the purposes of this paragraph, ways in which 

a person may show that such person did all that reasonably 

could be expected may include demonstrating that such 

person, to the extent permitted by law—

(I) gave timely notice to an appropriate law 

enforcement agency of information that led the 

person to know the conduct giving rise to a forfeiture 

would occur or has occurred; and

(II) in a timely fashion revoked or made a 

good faith attempt to revoke permission for those 

engaging in such conduct to use the property or 

took reasonable actions in consultation with a law 

enforcement agency to discourage or prevent the 

illegal use of the property.

(ii) A person is not required by this subparagraph to 

take steps that the person reasonably believes would 

be likely to subject any person (other than the person 

whose conduct gave rise to the forfeiture) to physical 

danger.

(3)(A) With respect to a property interest acquired after 

the conduct giving rise to the forfeiture has taken place, the 

term “innocent owner” means a person who, at the time that 

person acquired the interest in the property—
Money Laundering Statutes • 11

18 U.S.C. § 983

(5) A motion filed under this subsection shall be the 

exclusive remedy for seeking to set aside a declaration of 

forfeiture under a civil forfeiture statute.

(f) Release of seized property.—

(1) A claimant under subsection (a) is entitled to immediate 

release of seized property if—

(A) the claimant has a possessory interest in the 

property;

(B) the claimant has sufficient ties to the community 

to provide assurance that the property will be available at 

the time of the trial;

(C) the continued possession by the Government 

pending the final disposition of forfeiture proceedings 

will cause substantial hardship to the claimant, such as 

preventing the functioning of a business, preventing 

an individual from working, or leaving an individual 

homeless;

(D) the claimant’s likely hardship from the continued 

possession by the Government of the seized property 

outweighs the risk that the property will be destroyed, 

damaged, lost, concealed, or transferred if it is returned to 

the claimant during the pendency of the proceeding; and

(E) none of the conditions set forth in paragraph (8) 

applies.

(2) A claimant seeking release of property under this 

subsection must request possession of the property from the 

appropriate official, and the request must set forth the basis 

on which the requirements of paragraph (1) are met.

(3)(A) If not later than 15 days after the date of a request 

under paragraph (2) the property has not been released, the 

claimant may file a petition in the district court in which the 

complaint has been filed or, if no complaint has been filed, 

in the district court in which the seizure warrant was issued 

or in the district court for the district in which the property 

was seized.

(B) The petition described in subparagraph (A) shall 

set forth—

(i) the basis on which the requirements of paragraph 

(1) are met; and

(ii) the steps the claimant has taken to secure release 

of the property from the appropriate official.

(4) If the Government establishes that the claimant’s claim 

is frivolous, the court shall deny the petition. In responding 

to a petition under this subsection on other grounds, the 

Government may in appropriate cases submit evidence 

ex parte in order to avoid disclosing any matter that may 

leasehold, lien, mortgage, recorded security interest, or 

valid assignment of an ownership interest; and

(B) does not include—

(i) a person with only a general unsecured interest 

in, or claim against, the property or estate of another;

(ii) a bailee unless the bailor is identified and the 

bailee shows a colorable legitimate interest in the 

property seized; or

(iii) a nominee who exercises no dominion or control 

over the property.

(e) Motion to set aside forfeiture.—

(1) Any person entitled to written notice in any nonjudicial 

civil forfeiture proceeding under a civil forfeiture statute who 

does not receive such notice may file a motion to set aside a 

declaration of forfeiture with respect to that person’s interest 

in the property, which motion shall be granted if—

(A) the Government knew, or reasonably should have 

known, of the moving party’s interest and failed to take 

reasonable steps to provide such party with notice; and

(B) the moving party did not know or have reason to 

know of the seizure within sufficient time to file a timely 

claim.

(2)(A) Notwithstanding the expiration of any applicable 

statute of limitations, if the court grants a motion under 

paragraph (1), the court shall set aside the declaration of 

forfeiture as to the interest of the moving party without 

prejudice to the right of the Government to commence a 

subsequent forfeiture proceeding as to the interest of the 

moving party.

(B) Any proceeding described in subparagraph (A) shall 

be commenced—

(i) if nonjudicial, within 60 days of the entry of the 

order granting the motion; or

(ii) if judicial, within 6 months of the entry of the 

order granting the motion.

(3) A motion under paragraph (1) may be filed not later 

than 5 years after the date of final publication of notice of 

seizure of the property.

(4) If, at the time a motion made under paragraph (1) is 

granted, the forfeited property has been disposed of by the 

Government in accordance with law, the Government may 

institute proceedings against a substitute sum of money equal 

to the value of the moving party’s interest in the property at 

the time the property was disposed of.
12 • Money Laundering Statutes

18 U.S.C. § 983 

(3) The claimant shall have the burden of establishing that 

the forfeiture is grossly disproportional by a preponderance of 

the evidence at a hearing conducted by the court without a jury.

(4) If the court finds that the forfeiture is grossly 

disproportional to the offense it shall reduce or eliminate the 

forfeiture as necessary to avoid a violation of the Excessive 

Fines Clause of the Eighth Amendment of the Constitution.

(h) Civil fine.—

(1) In any civil forfeiture proceeding under a civil forfeiture 

statute in which the Government prevails, if the court finds 

that the claimant’s assertion of an interest in the property was 

frivolous, the court may impose a civil fine on the claimant 

of an amount equal to 10 percent of the value of the forfeited 

property, but in no event shall the fine be less than $250 or 

greater than $5,000.

(2) Any civil fine imposed under this subsection shall not 

preclude the court from imposing sanctions under rule 11 of 

the Federal Rules of Civil Procedure.

(3) In addition to the limitations of section 1915 of title 

28, United States Code, in no event shall a prisoner file a 

claim under a civil forfeiture statute or appeal a judgment in 

a civil action or proceeding based on a civil forfeiture statute 

if the prisoner has, on three or more prior occasions, while 

incarcerated or detained in any facility, brought an action or 

appeal in a court of the United States that was dismissed on 

the grounds that it is frivolous or malicious, unless the prisoner 

shows extraordinary and exceptional circumstances.

(i) Civil forfeiture statute defined.—In this section, the term 

“civil forfeiture statute”—

(1) means any provision of Federal law providing for the 

forfeiture of property other than as a sentence imposed upon 

conviction of a criminal offense; and

(2) does not include—

(A) the Tariff Act of 1930 or any other provision of law 

codified in title 19;

(B) the Internal Revenue Code of 1986;

(C) the Federal Food, Drug, and Cosmetic Act 

(21 U.S.C. § 301 et seq.);

(D) the Trading with the Enemy Act (50 U.S.C. App. § 1 

et seq.) or the International Emergency Economic Powers 

Act (IEEPA) (50 U.S.C. § 1701 et seq.); or

(E) section 1 of title VI of the Act of June 15, 1917 

(40 Stat. 233; 22 U.S.C. § 401).

(j) Restraining orders; protective orders.—

(1) Upon application of the United States, the court may 

enter a restraining order or injunction, require the execution of 

adversely affect an ongoing criminal investigation or pending 

criminal trial.

(5) The court shall render a decision on a petition filed 

under paragraph (3) not later than 30 days after the date of the 

filing, unless such 30-day limitation is extended by consent of 

the parties or by the court for good cause shown.

(6) If—

(A) a petition is filed under paragraph (3); and

(B) the claimant demonstrates that the requirements of 

paragraph (1) have been met,

the district court shall order that the property be returned 

to the claimant, pending completion of proceedings by the 

Government to obtain forfeiture of the property.

(7) If the court grants a petition under paragraph (3)—

(A) the court may enter any order necessary to ensure 

that the value of the property is maintained while the 

forfeiture action is pending, including—

(i) permitting the inspection, photographing, and 

inventory of the property;

(ii) fixing a bond in accordance with rule E(5) of 

the Supplemental Rules for Certain Admiralty and 

Maritime Claims; and

(iii) requiring the claimant to obtain or maintain 

insurance on the subject property; and

(B) the Government may place a lien against the 

property or file a lis pendens to ensure that the property is 

not transferred to another person.

(8) This subsection shall not apply if the seized property—

(A) is contraband, currency, or other monetary 

instrument, or electronic funds unless such currency or 

other monetary instrument or electronic funds constitutes 

the assets of a legitimate business which has been seized;

(B) is to be used as evidence of a violation of the law;

(C) by reason of design or other characteristic, is 

particularly suited for use in illegal activities; or

(D) is likely to be used to commit additional criminal 

acts if returned to the claimant.

(g) Proportionality.—

(1) The claimant under subsection (a)(4) may petition the 

court to determine whether the forfeiture was constitutionally 

excessive.

(2) In making this determination, the court shall compare 

the forfeiture to the gravity of the offense giving rise to the 

forfeiture.
Money Laundering Statutes • 13

18 U.S.C. § 984

satisfactory performance bonds, create receiverships, appoint 

conservators, custodians, appraisers, accountants, or trustees, 

or take any other action to seize, secure, maintain, or preserve 

the availability of property subject to civil forfeiture—

(A) upon the filing of a civil forfeiture complaint 

alleging that the property with respect to which the order 

is sought is subject to civil forfeiture; or

(B) prior to the filing of such a complaint, if, after notice 

to persons appearing to have an interest in the property 

and opportunity for a hearing, the court determines that—

(i) there is a substantial probability that the United 

States will prevail on the issue of forfeiture and that 

failure to enter the order will result in the property 

being destroyed, removed from the jurisdiction of the 

court, or otherwise made unavailable for forfeiture; and

(ii) the need to preserve the availability of the 

property through the entry of the requested order 

outweighs the hardship on any party against whom the 

order is to be entered.

(2) An order entered pursuant to paragraph (1)(B) shall be 

effective for not more than 90 days, unless extended by the 

court for good cause shown, or unless a complaint described 

in paragraph (1)(A) has been filed.

(3) A temporary restraining order under this subsection 

may be entered upon application of the United States without 

notice or opportunity for a hearing when a complaint has 

not yet been filed with respect to the property, if the United 

States demonstrates that there is probable cause to believe 

that the property with respect to which the order is sought 

is subject to civil forfeiture and that provision of notice will 

jeopardize the availability of the property for forfeiture. Such 

a temporary order shall expire not more than 14 days after the 

date on which it is entered, unless extended for good cause 

shown or unless the party against whom it is entered consents 

to an extension for a longer period. A hearing requested 

concerning an order entered under this paragraph shall be 

held at the earliest possible time and prior to the expiration 

of the temporary order.

(4) The court may receive and consider, at a hearing held 

pursuant to this subsection, evidence and information that 

would be inadmissible under the Federal Rules of Evidence.

Amended: Statutory Time-Periods Technical Amendments Act of 

2009, Pub. L. 111-16, § 3(1), May 7, 2009, 123 Stat. 1607.

18 U.S.C. § 984. Civil forfeiture of fungible 

property.

(a)(1) In any forfeiture action in rem in which the subject 

property is cash, monetary instruments in bearer form, funds 

deposited in an account in a financial institution (as defined 

in section 20 of this title), or precious metals—

(A) it shall not be necessary for the Government to 

identify the specific property involved in the offense that 

is the basis for the forfeiture; and

(B) it shall not be a defense that the property involved 

in such an offense has been removed and replaced by 

identical property.

(2) Except as provided in subsection (b), any identical 

property found in the same place or account as the property 

involved in the offense that is the basis for the forfeiture shall 

be subject to forfeiture under this section.

(b) No action pursuant to this section to forfeit property 

not traceable directly to the offense that is the basis for the 

forfeiture may be commenced more than 1 year from the date 

of the offense.

(c)(1) Subsection (a) does not apply to an action against funds 

held by a financial institution in an interbank account unless 

the account holder knowingly engaged in the offense that is 

the basis for the forfeiture.

(2) In this subsection—

(A) the term “financial institution” includes a foreign 

bank (as defined in section 1(b)(7) of the International 

Banking Act of 1978 (12 U.S.C. § 3101(b)(7)); and

(B) the term “interbank account” means an account 

held by one financial institution at another financial 

institution primarily for the purpose of facilitating customer 

transactions.

(d) Nothing in this section may be construed to limit the ability 

of the Government to forfeit property under any provision 

of law if the property involved in the offense giving rise to 

the forfeiture or property traceable thereto is available for 

forfeiture.

Amended: Civil Asset Forfeiture Reform Act (CAFRA) of 2000, 

Pub. L. 106-185, § 13(a), Apr. 25, 2000, 114 Stat. 202, 218.
14 • Money Laundering Statutes

18 U.S.C. § 986 

18 U.S.C. § 986. Subpoenas for bank records.

(a) At any time after the commencement of any action for 

forfeiture in rem brought by the United States under section 

1956, 1957, or 1960 of this title, section 5322 or 5324 of 

title 31, United States Code, or the Controlled Substances Act, 

any party may request the Clerk of the Court in the district in 

which the proceeding is pending to issue a subpoena duces 

tecum to any financial institution, as defined in section 5312(a) 

of title 31, United States Code, to produce books, records and 

any other documents at any place designated by the requesting 

party. All parties to the proceeding shall be notified of the 

issuance of any such subpoena. The procedures and limitations 

set forth in section 985 of this title shall apply to subpoenas 

issued under this section.

(b) Service of a subpoena issued pursuant to this section shall 

be by certified mail. Records produced in response to such 

a subpoena may be produced in person or by mail, common 

carrier, or such other method as may be agreed upon by the 

party requesting the subpoena and the custodian of records. 

The party requesting the subpoena may require the custodian 

of records to submit an affidavit certifying the authenticity 

and completeness of the records and explaining the omission 

of any record called for in the subpoena.

(c) Nothing in this section shall preclude any party from 

pursuing any form of discovery pursuant to the Federal Rules 

of Civil Procedure.

(d) Access to records in bank secrecy jurisdictions.—

(1) In general.—In any civil forfeiture case, or in any 

ancillary proceeding in any criminal forfeiture case governed 

by section 413(n) of the Controlled Substances Act (21 U.S.C. 

§ 853(n)), in which—

(A) financial records located in a foreign country may 

be material—

(i) to any claim or to the ability of the Government 

to respond to such claim; or

(ii) in a civil forfeiture case, to the ability of the 

Government to establish the forfeitability of the 

property; and

(B) it is within the capacity of the claimant to waive the 

claimant’s rights under applicable financial secrecy laws, 

or to obtain the records so that such records can be made 

available notwithstanding such secrecy laws,

the refusal of the claimant to provide the records in response 

to a discovery request or to take the action necessary otherwise 

to make the records available shall be grounds for judicial 

sanctions, up to and including dismissal of the claim with 

prejudice.

(2) Privilege.—This subsection shall not affect the right of 

the claimant to refuse production on the basis of any privilege 

guaranteed by the Constitution of the United States or any 

other provision of Federal law.

Amended: Civil Asset Forfeiture Reform Act (CAFRA) of 2000, 

Pub. L. 106-185, § 17, Apr. 25, 2000, 114 Stat. 202, 221.

18 U.S.C. § 1956. Laundering of monetary 

instruments. 

(a)(1) Whoever, knowing that the property involved in a 

financial transaction represents the proceeds of some form 

of unlawful activity, conducts or attempts to conduct such a 

financial transaction which in fact involves the proceeds of 

specified unlawful activity—

(A)(i) with the intent to promote the carrying on of 

specified unlawful activity; or

(ii) with intent to engage in conduct constituting 

a violation of section 7201 or 7206 of the Internal 

Revenue Code of 1986; or

(B) knowing that the transaction is designed in whole 

or in part—

(i) to conceal or disguise the nature, the location, the 

source, the ownership, or the control of the proceeds of 

specified unlawful activity; or

(ii) to avoid a transaction reporting requirement 

under State or Federal law,

shall be sentenced to a fine of not more than 

$500,000 or twice the value of the property involved in 

the transaction, whichever is greater, or imprisonment 

for not more than twenty years, or both. For purposes 

of this paragraph, a financial transaction shall be 

considered to be one involving the proceeds of specified 

unlawful activity if it is part of a set of parallel or 

dependent transactions, any one of which involves the 

proceeds of specified unlawful activity, and all of which 

are part of a single plan or arrangement.

(2) Whoever transports, transmits, or transfers, or attempts 

to transport, transmit, or transfer a monetary instrument or 

funds from a place in the United States to or through a place 

outside the United States or to a place in the United States 

from or through a place outside the United States—

(A) with the intent to promote the carrying on of 

specified unlawful activity; or

(B) knowing that the monetary instrument or funds 

involved in the transportation, transmission, or transfer 

represent the proceeds of some form of unlawful activity 
Money Laundering Statutes • 15

18 U.S.C. § 1956

and knowing that such transportation, transmission, or 

transfer is designed in whole or in part—

(i) to conceal or disguise the nature, the location, the 

source, the ownership, or the control of the proceeds of 

specified unlawful activity; or

(ii) to avoid a transaction reporting requirement 

under State or Federal law,

shall be sentenced to a fine of not more than 

$500,000 or twice the value of the monetary instrument 

or funds involved in the transportation, transmission, or 

transfer whichever is greater, or imprisonment for not 

more than twenty years, or both. For the purpose of the 

offense described in subparagraph (B), the defendant’s 

knowledge may be established by proof that a law 

enforcement officer represented the matter specified 

in subparagraph (B) as true, and the defendant’s 

subsequent statements or actions indicate that the 

defendant believed such representations to be true.

(3) Whoever, with the intent—

(A) to promote the carrying on of specified unlawful 

activity;

(B) to conceal or disguise the nature, location, source, 

ownership, or control of property believed to be the 

proceeds of specified unlawful activity; or

(C) to avoid a transaction reporting requirement under 

State or Federal law,

conducts or attempts to conduct a financial transaction 

involving property represented to be the proceeds of 

specified unlawful activity, or property used to conduct or 

facilitate specified unlawful activity, shall be fined under 

this title or imprisoned for not more than 20 years, or both. 

For purposes of this paragraph and paragraph (2), the term 

“repre-sented” means any representation made by a law 

enforcement officer or by another person at the direction 

of, or with the approval of, a Federal official authorized to 

investigate or prosecute violations of this section.

(b) Penalties.—

(1) In general.—Whoever conducts or attempts to conduct 

a transaction described in subsection (a)(1) or (a)(3), or section 

1957, or a transportation, transmission, or transfer described 

in subsection (a)(2), is liable to the United States for a civil 

penalty of not more than the greater of—

(A) the value of the property, funds, or monetary 

instruments involved in the transaction; or

(B) $10,000.

(2) Jurisdiction over foreign persons.—For purposes of 

adjudicating an action filed or enforcing a penalty ordered 

under this section, the district courts shall have jurisdiction 

over any foreign person, including any financial insti-tution 

authorized under the laws of a foreign country, against whom 

the action is brought, if service of process upon the foreign 

person is made under the Federal Rules of Civil Procedure 

or the laws of the country in which the foreign person is 

found, and—

(A) the foreign person commits an offense under 

subsection (a) involving a financial transaction that occurs 

in whole or in part in the United States;

(B) the foreign person converts, to his or her own use, 

property in which the United States has an ownership 

interest by virtue of the entry of an order of forfeiture by 

a court of the United States; or

(C) the foreign person is a financial institution that 

maintains a bank account at a financial institution in the 

United States.

(3) Court authority over assets.—A court may issue a 

pretrial restraining order or take any other action necessary 

to ensure that any bank account or other property held by 

the defendant in the United States is available to satisfy a 

judgment under this section.

(4) Federal receiver.—

(A) In general.—A court may appoint a Federal 

Receiver, in accordance with subparagraph (B) of this 

paragraph, to collect, marshal, and take custody, control, 

and possession of all assets of the defendant, wherever 

located, to satisfy a civil judgment under this subsection, 

a forfeiture judgment under section 981 or 982, or a 

criminal sentence under section 1957 or subsection (a) of 

this section, including an order of restitution to any victim 

of a specified unlawful activity.

(B) Appointment and authority.—A Federal Receiver 

described in subparagraph (A)—

(i) may be appointed upon application of a Federal 

prosecutor or a Federal or State regulator, by the court 

having jurisdiction over the defendant in the case;

(ii) shall be an officer of the court, and the powers 

of the Federal Receiver shall include the powers set 

out in section 754 of title 28, United States Code; and

(iii) shall have standing equivalent to that of a 

Federal prosecutor for the purpose of submitting 

requests to obtain information regarding the assets of 

the defendant—

(I) from the Financial Crimes Enforcement 

Network of the Department of the Treasury; or

(II) from a foreign country pursuant to a mutual 

legal assistance treaty, multilateral agreement, or 
16 • Money Laundering Statutes

18 U.S.C. § 1956 

other ar-rangement for international law enforcement 

assistance, provided that such requests are in 

accordance with the policies and procedures of the 

Attorney General.

(c) As used in this section—

(1) the term “knowing that the property involved in a 

financial transaction represents the proceeds of some form of 

unlawful activity” means that the person knew the property 

involved in the transaction represented proceeds from some 

form, though not necessarily which form, of activity that 

constitutes a felony under State, Federal, or foreign law, 

regardless of whether or not such activity is specified in 

paragraph (7);

(2) the term “conducts” includes initiating, concluding, or 

participating in initiating, or concluding a transaction;

(3) the term “transaction” includes a purchase, sale, 

loan, pledge, gift, transfer, delivery, or other disposition, 

and with respect to a financial institution includes a deposit, 

withdrawal, transfer between accounts, exchange of currency, 

loan, extension of credit, purchase or sale of any stock, bond, 

certificate of deposit, or other monetary instrument, use of a 

safe deposit box, or any other payment, transfer, or delivery 

by, through, or to a financial institution, by whatever means 

effected;

(4) the term “financial transaction” means (A) a transaction 

which in any way or degree affects interstate or foreign 

commerce (i) involving the movement of funds by wire 

or other means or (ii) involving one or more monetary instruments, or (iii) involving the transfer of title to any real 

property, vehicle, vessel, or aircraft, or (B) a transaction 

involving the use of a financial institution which is engaged in, 

or the activities of which affect, interstate or foreign commerce 

in any way or degree;

(5) the term “monetary instruments” means (i) coin or 

currency of the United States or of any other country, travelers’ checks, personal checks, bank checks, and money 

orders, or (ii) investment securities or negotiable instruments, 

in bearer form or otherwise in such form that title thereto 

passes upon delivery;

(6) the term “financial institution” includes—

(A) any financial institution, as defined in section 

5312(a)(2) of title 31, United States Code, or the 

regulations promulgated thereunder; and

(B) any foreign bank, as defined in section 1 of the 

International Banking Act of 1978 (12 U.S.C. 3101);

(7) the term “specified unlawful activity” means—

(A) any act or activity constituting an offense listed in 

section 1961(1) of this title except an act which is indictable 

under subchapter II of chapter 53 of title 31;

(B) with respect to a financial transaction occurring in 

whole or in part in the United States, an offense against a 

foreign nation involving—

(i) the manufacture, importation, sale, or distribution 

of a controlled substance (as such term is defined for the 

purposes of the Controlled Substances Act);

(ii) murder, kidnapping, robbery, extortion, 

destruction of property by means of explosive or fire, 

or a crime of violence (as defined in section 16);

(iii) fraud, or any scheme or attempt to defraud, by 

or against a foreign bank (as defined in paragraph 7 of 

section 1(b) of the International Banking Act of 1978)); 

(iv) bribery of a public official, or the 

misappropriation, theft, or embezzlement of public 

funds by or for the benefit of a public official;

(v) smuggling or export control violations 

involving—

(I) an item controlled on the United States 

Munitions List established under section 38 of the 

Arms Export Control Act (22 U.S.C. 2778); or

(II) an item controlled under regulations under 

the Export Administration Regulations (15 C.F.R. 

Parts 730-774);

(vi) an offense with respect to which the United 

States would be obligated by a multilateral treaty, either 

to extradite the alleged offender or to submit the case 

for prosecution, if the offender were found within the 

ter-ritory of the United States; or

(vii) trafficking in persons, selling or buying of 

children, sexual exploitation of children, or transporting, 

re-cruiting or harboring a person, including a child, for 

commercial sex acts;

(C) any act or acts constituting a continuing criminal 

enterprise, as that term is defined in section 408 of the 

Controlled Substances Act (21 U.S.C. 848);

(D) an offense under section 32 (relating to the 

destruction of aircraft), section 37 (relating to violence at 

inter-national airports), section 115 (relating to influencing, 

impeding, or retaliating against a Federal official by 

threatening or injuring a family member), section 152 

(relating to concealment of assets; false oaths and claims; 

bribery), section 175c (relating to the variola virus), section 

215 (relating to commissions or gifts for procuring loans), 

section 351 (relating to congressional or Cabinet officer 

assassination), any of sections 500 through 503 (relating 
Money Laundering Statutes • 17

18 U.S.C. § 1956

to certain counterfeiting offenses), section 513 (relating 

to securities of States and private entities), section 541 

(relating to goods falsely classified), section 542 (relating 

to entry of goods by means of false statements), section 545 

(relating to smuggling goods into the United States), section 

549 (relating to removing goods from Customs custody), 

section 554 (relating to smuggling goods from the United 

States), section 555 (relating to border tunnels), section 

641 (relating to public money, property, or records), section 

656 (relating to theft, embezzlement, or misapplication 

by bank officer or employee), section 657 (relating to 

lending, credit, and insurance institutions), section 658 

(relating to property mortgaged or pledged to farm 

credit agencies), section 666 (relating to theft or bribery 

concerning programs receiving Federal funds), section 793, 

794, or 798 (relating to espionage), section 831 (relating 

to prohibited transactions involving nuclear materials), 

section 844(f) or (i) (relating to destruction by explosives 

or fire of Government property or property affecting 

interstate or foreign commerce), section 875 (relating to 

interstate communications), section 922(1) (relating to the 

unlawful importation of firearms), section 924(n) (relating 

to firearms trafficking), section 956 (relating to conspiracy 

to kill, kidnap, maim, or injure certain property in a foreign 

country), section 1005 (relating to fraudulent bank entries), 

1006 (relating to fraudulent Federal credit institution 

entries), 1007 (relating to fraudulent Federal Deposit 

Insurance transactions), 1014 (relating to fraudulent loan 

or credit applications), section 1030 (relating to computer 

fraud and abuse), 1032 (relating to concealment of 

assets from conservator, receiver, or liquidating agent of 

financial institution), section 1111 (relating to murder), 

section 1114 (relating to murder of United States law 

enforcement officials), section 1116 (relating to murder of 

foreign officials, official guests, or internationally protected 

persons), section 1201 (relating to kidnaping), section 1203 

(relating to hostage taking), section 1361 (relating to willful 

injury of Government property), section 1363 (relating 

to destruction of property within the special maritime 

and territorial jurisdiction), section 1708 (theft from the 

mail), section 1751 (relating to Presidential assassination), 

section 2113 or 2114 (relating to bank and postal robbery 

and theft), section 2252A (relating to child pornography) 

where the child pornography contains a visual depiction 

of an actual minor en-gaging in sexually explicit conduct, 

section 2260 (production of certain child pornography for 

importation into the United States), section 2280 (relating 

to violence against maritime navigation), section 2281 

(relating to violence against maritime fixed platforms), 

section 2319 (relating to copyright infringement), section 

2320 (relating to trafficking in counterfeit goods and 

services), section 2332 (relating to terrorist acts abroad 

against United States nationals), section 2332a (relating 

to use of weapons of mass destruction), section 2332b 

(relating to international terrorist acts transcending national 

boundaries), section 2332g (relating to missile systems 

designed to destroy aircraft), section 2332h (relating to 

radiological dispersal devices), section 2339A or 2339B 

(relating to providing material support to terrorists), section 

2339C (relating to financing of terrorism), or section 

2339D (relating to receiving military-type training from 

a foreign terrorist organization) of this title, section 46502 

of title 49, United States Code, a felony violation of the 

Chemical Diversion and Trafficking Act of 1988 (relating 

to precursor and essential chemicals), section 590 of the 

Tariff Act of 1930 (19 U.S.C. 1590) (relating to aviation 

smuggling), section 422 of the Controlled Substances 

Act (relating to transportation of drug paraphernalia), 

section 38(c) (relating to criminal violations) of the Arms 

Export Control Act, section 11 (relating to violations) 

of the Export Administration Act of 1979, section 206 

(relating to penalties) of the International Emergency 

Economic Powers Act, section 16 (relating to offenses and 

punishment) of the Trading with the Enemy Act, any felony 

violation of section 15 of the Food and Nutrition Act of 2008 

[7 U.S.C.A. § 2024] (relating to supplemental nutrition 

assistance program benefits fraud) involving a quantity 

of benefits having a value of not less than $5,000, any 

violation of section 543(a)(1) of the Housing Act of 1949 

[42 U.S.C.A. § 1490s(a)(1)] (relating to equity skimming), 

any felony violation of the Foreign Agents Registration 

Act of 1938, any felony violation of the Foreign Corrupt 

Practices Act, or section 92 of the Atomic Energy Act of 

1954 (42 U.S.C. 2122) (relating to prohibitions governing 

atomic weapons) 

(E) Environmental crimes. A felony violation of the 

Federal Water Pollution Control Act (33 U.S.C. 1251 et 

seq.), the Ocean Dumping Act (33 U.S.C. 1401 et seq.), 

the Act to Prevent Pollution from Ships (33 U.S.C. 1901 

et seq.), the Safe Drinking Water Act (42 U.S.C. 300f et 

seq.), or the Resources Conservation and Recovery Act 

(42 U.S.C. 6901 et seq.); or

(F) any act or activity constituting an offense involving 

a Federal health care offense;

(8) the term “State” includes a State of the United States, 

the District of Columbia, and any commonwealth, territory, 

or possession of the United States; and

(9) the term “proceeds” means any property derived from 

or obtained or retained, directly or indirectly, through some 

form of unlawful activity, including the gross receipts of 

such activity.

(d) Nothing in this section shall supersede any provision of 

Federal, State, or other law imposing criminal penalties or 

affording civil remedies in addition to those provided for in 

this section.
18 • Money Laundering Statutes

18 U.S.C. § 1957 

(e) Violations of this section may be investigated by such 

components of the Department of Justice as the Attorney 

General may direct, and by such components of the 

Department of the Treasury as the Secretary of the Treasury 

may direct, as appropriate, and, with respect to offenses over 

which the Department of Homeland Security has jurisdiction, 

by such components of the Department of Homeland Security 

as the Secretary of Homeland Security may direct, and, with 

respect to offenses over which the United States Postal Service 

has jurisdiction, by the Postal Service. Such authority of the 

Secretary of the Treasury, the Secretary of Homeland Security, 

and the Postal Service shall be exercised in accordance with 

an agreement which shall be entered into by the Secretary of 

the Treasury, the Secretary of Homeland Security, the Postal 

Service, and the Attorney General. Violations of this section 

involving offenses de-scribed in paragraph (c)(7)(E) may 

be investigated by such components of the Department of 

Justice as the Attorney General may direct, and the National 

Enforcement Investigations Center of the Environmental 

Protection Agency.

(f) There is extraterritorial jurisdiction over the conduct 

prohibited by this section if—

(1) the conduct is by a United States citizen or, in the case 

of a non-United States citizen, the conduct occurs in part in 

the United States; and

(2) the transaction or series of related transactions involves 

funds or monetary instruments of a value exceeding $10,000.

(g) Notice of conviction of financial institutions.—If any 

financial institution or any officer, director, or employee of 

any financial institution has been found guilty of an offense 

under this section, section 1957 or 1960 of this title, or section 

5322 or 5324 of title 31, the Attorney General shall provide 

written notice of such fact to the appropriate regulatory agency 

for the financial institution.

(h) Any person who conspires to commit any offense defined 

in this section or section 1957 shall be subject to the same 

penalties as those prescribed for the offense the commission 

of which was the object of the conspiracy.

(i) Venue.—

(1) Except as provided in paragraph (2), a prosecution 

for an offense under this section or section 1957 may be 

brought in—

(A) any district in which the financial or monetary 

transaction is conducted; or

(B) any district where a prosecution for the underlying 

specified unlawful activity could be brought, if the 

defendant participated in the transfer of the proceeds of the 

specified unlawful activity from that district to the district 

where the financial or monetary transaction is conducted.

(2) A prosecution for an attempt or conspiracy offense 

under this section or section 1957 may be brought in the 

district where venue would lie for the completed offense 

under paragraph (1), or in any other district where an act in 

furtherance of the attempt or conspiracy took place.

(3) For purposes of this section, a transfer of funds from 1 

place to another, by wire or any other means, shall constitute 

a single, continuing transaction. Any person who conducts 

(as that term is defined in subsection (c)(2)) any portion of 

the transaction may be charged in any district in which the 

transaction takes place.

Amended: Border Tunnel Prevention Act of 2012, Pub. L. 112-

127, § 6, June 5, 2012, 126 Stat. 371.

18 U.S.C. § 1957. Engaging in monetary 

transactions in property derived from 

specified unlawful activity.

(a) Whoever, in any of the circumstances set forth in 

subsection (d), knowingly engages or attempts to engage in a 

monetary transaction in criminally derived property of a value 

greater than $10,000 and is derived from specified unlawful 

activity, shall be punished as provided in subsection (b).

(b)(1) Except as provided in paragraph (2), the punishment 

for an offense under this section is a fine under title 18, United 

States Code, or imprisonment for not more than ten years or 

both. If the offense involves a pre-retail medical product (as 

defined in section 670) the punishment for the offense shall 

be the same as the punishment for an offense under section 

670 unless the punishment under this subsection is greater.

(2) The court may impose an alternate fine to that 

imposable under paragraph (1) of not more than twice the 

amount of the criminally derived property involved in the 

transaction.

(c) In a prosecution for an offense under this section, the 

Government is not required to prove the defendant knew that 

the offense from which the criminally derived property was 

derived was specified unlawful activity.

(d) The circumstances referred to in subsection (a) are—

(1) that the offense under this section takes place in 

the United States or in the special maritime and territorial 

jurisdiction of the United States; or

(2) that the offense under this section takes place outside 

the United States and such special jurisdiction, but the 

defendant is a United States person (as defined in section 3077 

of this title, but excluding the class described in paragraph 

(2)(D) of such section).
Money Laundering Statutes • 19

18 U.S.C. § 1961(1)

(e) Violations of this section may be investigated by such 

components of the Department of Justice as the Attorney 

General may direct, and by such components of the 

Department of the Treasury as the Secretary of the Treasury 

may direct, as appropriate, and, with respect to offenses over 

which the Department of Homeland Security has jurisdiction, 

by such components of the Department of Homeland Security 

as the Secretary of Homeland Security may direct, and, with 

respect to offenses over which the United States Postal Service 

has jurisdiction, by the Postal Service. Such authority of the 

Secretary of the Treasury, the Secretary of Homeland Security, 

and the Postal Service shall be exercised in accordance with 

an agreement which shall be entered into by the Secretary of 

the Treasury, the Secretary of Homeland Security, the Postal 

Service, and the Attorney General.

(f) As used in this section—

(1) the term “monetary transaction” means the deposit, 

withdrawal, transfer, or exchange, in or affecting interstate 

or foreign commerce, of funds or a monetary instrument (as 

defined in section 1956(c)(5) of this title) by, through, or to a 

financial institution (as defined in section 1956 of this title), 

including any transaction that would be a financial transaction 

under section 1956(c)(4)(B) of this title, but such term does 

not include any transaction necessary to preserve a person’s 

right to representation as guaranteed by the sixth amendment 

to the Constitution;

(2) the term “criminally derived property” means any 

property constituting, or derived from, proceeds obtained 

from a criminal offense; and

(3) the terms “specified unlawful activity” and “proceeds” 

shall have the meaning given those terms in section 1956 of 

this title. 

Amended: Strengthening and Focusing Enforcement to Deter 

Organized Stealing and Enhance Safety Act of 2012, Pub. L. 

112-186, § 4(b)(2), Oct. 5, 2012, 126 Stat. 1429.

18 U.S.C. § 1960. Prohibition of unlicensed 

money transmitting businesses.

(a) Whoever knowingly conducts, controls, manages, 

supervises, directs, or owns all or part of an unlicensed money 

transmitting business, shall be fined in accordance with this 

title or imprisoned not more than 5 years, or both.

(b) As used in this section—

(1) the term “unlicensed money transmitting business” 

means a money transmitting business which affects interstate 

or foreign commerce in any manner or degree and—

(A) is operated without an appropriate money transmitting 

license in a State where such operation is punishable as a 

misdemeanor or a felony under State law, whether or not 

the defendant knew that the operation was required to be 

licensed or that the operation was so punishable;

(B) fails to comply with the money transmitting 

business registration requirements under section 5330 

of title 31, United States Code, or regulations prescribed 

under such section; or

(C) otherwise involves the transportation or transmission 

of funds that are known to the defendant to have been 

derived from a criminal offense or are intended to be used 

to promote or support unlawful activity;

(2) the term “money transmitting” includes transferring 

funds on behalf of the public by any and all means including 

but not limited to transfers within this country or to locations 

abroad by wire, check, draft, facsimile, or courier; and

(3) the term “State” means any State of the United States, 

the District of Columbia, the Northern Mariana Islands, and any 

commonwealth, territory, or possession of the United States.

Amended: Violence Against Women and Department of Justice 

Reauthorization Act of 2005, Pub. L. 109-162, Title XI, 

§ 1171(a)(2), Jan. 5, 2006, 119 Stat. 2960, 3123.

18 U.S.C. § 1961(1). Definitions.

As used in this chapter—

(1) “racketeering activity” means (A) any act or threat 

involving murder, kidnapping, gambling, arson, robbery, 

bribery, extortion, dealing in obscene matter, or dealing in a 

controlled substance or listed chemical (as defined in section 

102 of the Controlled Substances Act), which is chargeable 

under State law and punishable by imprisonment for more 

than one year; (B) any act which is indictable under any of the 

following provisions of title 18, United States Code: Section 

201 (relating to bribery), section 224 (relating to sports bribery), 

sections 471, 472, and 473 (relating to counterfeiting), section 

659 (relating to theft from interstate shipment) if the act 

indictable under section 659 is felonious, section 664 (relating 

to embezzlement from pension and welfare funds), sections 

891-894 (relating to extortionate credit transactions), section 

1028 (relating to fraud and related activity in connection with 

identification documents), section 1029 (relating to fraud and 

related activity in connection with access devices), section 

1084 (relating to the transmission of gambling information), 

section 1341 (relating to mail fraud), section 1343 (relating to 

wire fraud), section 1344 (relating to financial institution fraud), 

section 1351 (relating to fraud in foreign labor contracting), 

section 1425 (relating to the procurement of citizenship or 

nationalization unlawfully), section 1426 (relating to the 

reproduction of naturalization or citizenship papers), section 

1427 (relating to the sale of naturalization or citizenship papers), 
20 • Money Laundering Statutes

18 U.S.C. § 2339A 

sections 1461-1465 (relating to obscene matter), section 1503 

(relating to obstruction of justice), section 1510 (relating to 

obstruction of criminal investigations), section 1511 (relating to 

the obstruction of State or local law enforcement), section 1512 

(relating to tampering with a witness, victim, or an informant), 

section 1513 (relating to retaliating against a witness, victim, 

or an informant), section 1542 (relating to false statement in 

application and use of passport), section 1543 (relating to 

forgery or false use of passport), section 1544 (relating to misuse 

of passport), section 1546 (relating to fraud and misuse of visas, 

permits, and other documents), sections 1581-1592 (relating 

to peonage, slavery, and trafficking in persons), section 1951 

(relating to interference with commerce, robbery, or extortion), 

section 1952 (relating to racketeering), section 1953 (relating 

to interstate transportation of wagering paraphernalia), section 

1954 (relating to unlawful welfare fund payments), section 1955 

(relating to the prohibition of illegal gambling businesses), 

section 1956 (relating to the laundering of monetary 

instruments), section 1957 (relating to engaging in monetary 

transactions in property derived from specified unlawful 

activity), section 1958 (relating to use of interstate commerce 

facilities in the commission of murder-for-hire), section 1960 

(relating to illegal money transmitters), sections 2251, 2251A, 

2252, and 2260 (relating to sexual exploitation of children), 

sections 2312 and 2313 (relating to interstate transportation 

of stolen motor vehicles), sections 2314 and 2315 (relating 

to interstate transportation of stolen property), section 2318 

(relating to trafficking in counterfeit labels for phonorecords, 

computer programs or computer program documentation or 

packaging and copies of motion pictures or other audiovisual 

works), section 2319 (relating to criminal infringement of a 

copyright), section 2319A (relating to unauthorized fixation of 

and trafficking in sound recordings and music videos of live 

musical performances), section 2320 (relating to trafficking 

in goods or services bearing counterfeit marks), section 2321 

(relating to trafficking in certain motor vehicles or motor 

vehicle parts), sections 2341-2346 (relating to trafficking in 

contraband cigarettes), sections 2421-24 (relating to white 

slave traffic), sections 175-178 (relating to biological weapons), 

sections 229-229F (relating to chemical weapons), section 831 

(relating to nuclear materials), (C) an act which is indictable 

under title 29, United States Code, section 186 (dealing with 

restrictions on payments and loans to labor organizations) or 

section 501(c) (relating to embezzlement from union funds), 

(D) any offense involving fraud connected with a case under 

title 11 (except a case under section 157 of this title), fraud in 

the sale of securities, or the felonious manufacture, importation, 

receiving, concealment, buying, selling, or otherwise dealing in 

a controlled substance or listed chemical (as defined in section 

102 of the Controlled Substances Act), punishable under any 

law of the United States, (E) any act which is indictable under 

the Currency and Foreign Transactions Reporting Act, (F) any 

act which is indictable under the Immigration and Nationality 

Act, section 274 (relating to bringing in and harboring certain 

aliens), section 277 (relating to aiding or assisting certain 

aliens to enter the United States), or section 278 (relating to 

importation of alien for immoral purpose) if the act indictable 

under such section of such Act was committed for the purpose 

of financial gain, or (G) any act that is indictable under any 

provision listed in section 2332b(g)(5)(B).

Amended: Violence Against Women Reauthorization Act of 

2013, Pub. L. 113-4, Title XII, § 1211(a), March 7, 2013, 127 

Stat. 142.

18 U.S.C. § 2339A. Providing material support 

to terrorists.

(a) Offense. Whoever provides material support or resources 

or conceals or disguises the nature, location, source, or 

ownership of material support or resources, knowing or 

intending that they are to be used in preparation for, or in 

carrying out, a violation of section 32, 37, 81, 175, 229, 351, 

831, 842 (m) or (n), 844 (f) or (i), 930(c), 956, 1091, 1114, 

1116, 1203, 1361, 1362, 1363, 1366, 1751, 1992, 2155, 2156, 

2280, 2281, 2332, 2332a, 2332b, 2332f, 2340A, or 2442 

of this title, section 236 of the Atomic Energy Act of 1954 

(42 U.S.C. 2284), section 46502 or 60123(b) of title 49, or any 

offense listed in section 2332b(g)(5)(B) (except for sections 

2339A and 2339B) or in preparation for, or in carrying out, 

the concealment of an escape from the commission of any 

such violation, or attempts or conspires to do such an act, 

shall be fined under this title, imprisoned not more than 15 

years, or both, and, if the death of any person results, shall be 

imprisoned for any term of years or for life. A violation of this 

section may be prosecuted in any Federal judicial district in 

which the underlying offense was committed, or in any other 

Federal judicial district as provided by law. 

(b) Definitions. As used in this section—

(1) the term “material support or resources” means 

any property, tangible or intangible, or service, including 

currency or monetary instruments or financial securities, 

financial services, lodging, training, expert advice or 

assistance, safehouses, false documentation or identification, 

communications equipment, facilities, weapons, lethal 

substances, explosives, personnel (1 or more individuals 

who may be or include oneself), and transportation, except 

medicine or religious materials;

(2) the term “training” means instruction or teaching designed 

to impart a specific skill, as opposed to general knowledge; and

(3) the term “expert advice or assistance” means advice 

or assistance derived from scientific, technical or other 

specialized knowledge.

Amended: Human Rights Enforcement Act of 2009, Pub. L. 111-

122, § 3(d), Dec. 22, 2009, 123 Stat. 3481.
Money Laundering Statutes • 21

18 U.S.C. § 2339B

18 U.S.C. § 2339B. Providing material support 

or resources to designated foreign terrorist 

organizations.

(a) Prohibited activities.—

(1) Unlawful conduct.—Whoever knowingly provides 

material support or resources to a foreign terrorist 

organization, or attempts or conspires to do so, shall be fined 

under this title or imprisoned not more than 15 years, or both, 

and, if the death of any person results, shall be imprisoned 

for any term of years or for life. To violate this paragraph, 

a person must have knowledge that the organization is a 

designated terrorist organization (as defined in subsection 

(g)(6)), that the organization has engaged or engages in 

terrorist activity (as defined in section 212(a)(3)(B) of the 

Immigration and Nationality Act), or that the organization 

has engaged or engages in terrorism (as defined in section 

140(d)(2) of the Foreign Relations Authorization Act, Fiscal 

Years 1988 and 1989).

(2) Financial institutions.—Except as authorized by the 

Secretary, any financial institution that becomes aware that it 

has possession of, or control over, any funds in which a foreign 

terrorist organization, or its agent, has an interest, shall—

(A) retain possession of, or maintain control over, such 

funds; and

(B) report to the Secretary the existence of such funds 

in accordance with regulations issued by the Secretary.

(b) Civil penalty.—Any financial institution that knowingly 

fails to comply with subsection (a)(2) shall be subject to a 

civil penalty in an amount that is the greater of—

(A) $50,000 per violation; or

(B) twice the amount of which the financial institution 

was required under subsection (a)(2) to retain possession 

or control.

(c) Injunction.—Whenever it appears to the Secretary or the 

Attorney General that any person is engaged in, or is about 

to engage in, any act that constitutes, or would constitute, a 

violation of this section, the Attorney General may initiate 

civil action in a district court of the United States to enjoin 

such violation.

(d) Extraterritorial jurisdiction.—

(1) In general.—There is jurisdiction over an offense under 

subsection (a) if—

(A) an offender is a national of the United States (as 

defined in section 101(a)(22) of the Immigration and 

Nationality Act (8 U.S.C. § 1101(a)(22))) or an alien 

lawfully admitted for permanent residence in the United 

States (as defined in section 101(a)(20) of the Immigration 

and Nationality Act (8 U.S.C. § 1101(a)(20)));

(B) an offender is a stateless person whose habitual 

residence is in the United States;

(C) after the conduct required for the offense occurs 

an offender is brought into or found in the United States, 

even if the conduct required for the offense occurs outside 

the United States;

(D) the offense occurs in whole or in part within the 

United States;

(E) the offense occurs in or affects interstate or foreign 

commerce; or

(F) an offender aids or abets any person over whom 

jurisdiction exists under this paragraph in committing an 

offense under subsection (a) or conspires with any person 

over whom jurisdiction exists under this paragraph to 

commit an offense under subsection (a).

(2) Extraterritorial jurisdiction.—There is extraterritorial 

Federal jurisdiction over an offense under this section.

(e) Investigations.—

(1) In general.—The Attorney General shall conduct any 

investigation of a possible violation of this section, or of any 

license, order, or regulation issued pursuant to this section.

(2) Coordination with the Department of the Treasury.—

The Attorney General shall work in coordination with the 

Secretary in investigations relating to—

(A) the compliance or noncompliance by a financial 

institution with the requirements of subsection (a)(2); and

(B) civil penalty proceedings authorized under 

subsection (b).

(3) Referral.—Any evidence of a criminal violation of 

this section arising in the course of an investigation by the 

Secretary or any other Federal agency shall be referred 

immediately to the Attorney General for further investigation. 

The Attorney General shall timely notify the Secretary of any 

action taken on referrals from the Secretary, and may refer 

investigations to the Secretary for remedial licensing or civil 

penalty action.

(f) Classified information in civil proceedings brought by the 

United States.—

(1) Discovery of classified information by defendants.—

(A) Request by United States.—In any civil proceeding 

under this section, upon request made ex parte and in 

writing by the United States, a court, upon a sufficient 

showing, may authorize the United States to—
22 • Money Laundering Statutes

18 U.S.C. § 2339B 

(i) redact specified items of classified information 

from documents to be introduced into evidence or made 

available to the defendant through discovery under the 

Federal Rules of Civil Procedure;

(ii) substitute a summary of the information for such 

classified documents; or

(iii) substitute a statement admitting relevant facts 

that the classified information would tend to prove.

(B) Order granting request.—If the court enters an 

order granting a request under this paragraph, the entire 

text of the documents to which the request relates shall be 

sealed and preserved in the records of the court to be made 

available to the appellate court in the event of an appeal.

(C) Denial of request.—If the court enters an order 

denying a request of the United States under this paragraph, 

the United States may take an immediate, interlocutory 

appeal in accordance with paragraph (5). For purposes 

of such an appeal, the entire text of the documents to 

which the request relates, together with any transcripts 

of arguments made ex parte to the court in connection 

therewith, shall be maintained under seal and delivered 

to the appellate court.

(2) Introduction of classified information; precautions 

by court.—

(A) Exhibits.—To prevent unnecessary or inadvertent 

disclosure of classified information in a civil proceeding 

brought by the United States under this section, the United 

States may petition the court ex parte to admit, in lieu of 

classified writings, recordings, or photographs, one or 

more of the following:

(i) Copies of items from which classified information 

has been redacted.

(ii) Stipulations admitting relevant facts that specific 

classified information would tend to prove.

(iii) A declassified summary of the specific classified 

information.

(B) Determination by court.—The court shall grant 

a request under this paragraph if the court finds that the 

redacted item, stipulation, or summary is sufficient to allow 

the defendant to prepare a defense.

(3) Taking of trial testimony.—

(A) Objection.—During the examination of a witness 

in any civil proceeding brought by the United States 

under this subsection, the United States may object to any 

question or line of inquiry that may require the witness 

to disclose classified information not previously found 

to be admissible.

(B) Action by court.—In determining whether a 

response is admissible, the court shall take precautions 

to guard against the compromise of any classified 

information, including—

(i) permitting the United States to provide the court, 

ex parte, with a proffer of the witness’s response to the 

question or line of inquiry; and

(ii) requiring the defendant to provide the court 

with a proffer of the nature of the information that the 

defendant seeks to elicit.

(C) Obligation of defendant.—In any civil proceeding 

under this section, it shall be the defendant’s obligation to 

establish the relevance and materiality of any classified 

information sought to be introduced.

(4) Appeal.—If the court enters an order denying a request 

of the United States under this subsection, the United States 

may take an immediate interlocutory appeal in accordance 

with paragraph (5).

(5) Interlocutory appeal.—

(A) Subject of appeal.—An interlocutory appeal by the 

United States shall lie to a court of appeals from a decision 

or order of a district court—

(i) authorizing the disclosure of classified information;

(ii) imposing sanctions for nondisclosure of 

classified information; or

(iii) refusing a protective order sought by the 

United States to prevent the disclosure of classified 

information.

(B) Expedited consideration.—

(i) In general.—An appeal taken pursuant to this 

paragraph, either before or during trial, shall be 

expedited by the court of appeals.

(ii) Appeals prior to trial.—If an appeal is of an order 

made prior to trial, an appeal shall be taken not later than 

14 days after the decision or order appealed from, and 

the trial shall not commence until the appeal is resolved.

(iii) Appeals during trial.—If an appeal is taken 

during trial, the trial court shall adjourn the trial until 

the appeal is resolved, and the court of appeals—

(I) shall hear argument on such appeal not later 

than 14 days after the adjournment of the trial, 

excluding intermediate weekends and holidays;

(II) may dispense with written briefs other than 

the supporting materials previously submitted to 

the trial court;
Money Laundering Statutes • 23

18 U.S.C. § 2339C

(III) shall render its decision not later than 4 days 

after argument on appeal, excluding intermediate 

weekends and holidays; and

(IV) may dispense with the issuance of a written 

opinion in rendering its decision.

(C) Effect of ruling.—An interlocutory appeal and 

decision shall not affect the right of the defendant, in a 

subsequent appeal from a final judgment, to claim as error 

reversal by the trial court on remand of a ruling appealed 

from during trial.

(6) Construction.—Nothing in this subsection shall prevent 

the United States from seeking protective orders or asserting 

privileges ordinarily available to the United States to protect 

against the disclosure of classified information, including the 

invocation of the military and State secrets privilege.

(g) Definitions.—As used in this section—

(1) the term “classified information” has the meaning 

given that term in section 1(a) of the Classified Information 

Procedures Act (18 U.S.C. § App.);

(2) the term “financial institution” has the same meaning 

as in section 5312(a)(2) of title 31, United States Code;

(3) the term “funds” includes coin or currency of the United 

States or any other country, traveler’s checks, personal checks, 

bank checks, money orders, stocks, bonds, debentures, drafts, 

letters of credit, any other negotiable instrument, and any 

electronic representation of any of the foregoing;

(4) the term “material support or resources” has the same 

meaning given that term in section 2339A (including the 

definitions of “training” and “expert advice or assistance” 

in that section);

(5) the term “Secretary” means the Secretary of the 

Treasury; and

(6) the term “terrorist organization” means an organization 

designated as a terrorist organization under section 219 of the 

Immigration and Nationality Act.

(h) Provision of personnel.—No person may be prosecuted 

under this section in connection with the term “personnel” 

unless that person has knowingly provided, attempted to 

provide, or conspired to provide a foreign terrorist organization 

with 1 or more individuals (who may be or include himself) 

to work under that terrorist organization’s direction or control 

or to organize, manage, supervise, or otherwise direct the 

operation of that organization. Individuals who act entirely 

independently of the foreign terrorist organization to advance 

its goals or objectives shall not be considered to be working 

under the foreign terrorist organization’s direction and control.

(i) Rule of construction.—Nothing in this section shall be 

construed or applied so as to abridge the exercise of rights 

guaranteed under the First Amendment to the Constitution 

of the United States.

(j) Exception.—No person may be prosecuted under this 

section in connection with the term “personnel“, “training“, or 

“expert advice or assistance” if the provision of that material 

support or resources to a foreign terrorist organization was 

approved by the Secretary of State with the concurrence of the 

Attorney General. The Secretary of State may not approve the 

provision of any material support that may be used to carry 

out terrorist activity (as defined in section 212(a)(3)(B)(iii) 

of the Immigration and Nationality Act).

Amended: Statutory Time-Periods Technical Amendments Act of 

2009, Pub. L. 111-16, § 3(6) to (8), May 7, 2009, 123 Stat. 1608.

18 U.S.C. § 2339C. Prohibitions against the 

financing of terrorism.

(a) Offenses.

(1) In general. Whoever, in a circumstance described in 

subsection (b), by any means, directly or indirectly, unlawfully 

and willfully provides or collects funds with the intention that 

such funds be used, or with the knowledge that such funds are 

to be used, in full or in part, in order to carry out—

(A) an act which constitutes an offense within the scope 

of a treaty specified in subsection (e)(7), as implemented 

by the United States, or

(B) any other act intended to cause death or serious 

bodily injury to a civilian, or to any other person not 

taking an active part in the hostilities in a situation of 

armed conflict, when the purpose of such act, by its nature 

or context, is to intimidate a population, or to compel a 

government or an international organization to do or to 

abstain from doing any act,

shall be punished as prescribed in subsection (d)(1).

(2) Attempts and conspiracies. Whoever attempts or 

conspires to commit an offense under paragraph (1) shall be 

punished as prescribed in subsection (d)(1).

(3) Relationship to predicate act. For an act to constitute 

an offense set forth in this subsection, it shall not be necessary 

that the funds were actually used to carry out a predicate act.

(b) Jurisdiction. There is jurisdiction over the offenses in 

subsection (a) in the following circumstances—

(1) the offense takes place in the United States and—

(A) a perpetrator was a national of another state or a 

stateless person;
24 • Money Laundering Statutes

18 U.S.C. § 2339C 

(B) on board a vessel flying the flag of another state or 

an aircraft which is registered under the laws of another 

state at the time the offense is committed;

(C) on board an aircraft which is operated by the 

government of another state;

(D) a perpetrator is found outside the United States;

(E) was directed toward or resulted in the carrying out 

of a predicate act against—

(i) a national of another state; or

(ii) another state or a government facility of such 

state, including its embassy or other diplomatic or 

consular premises of that state;

(F) was directed toward or resulted in the carrying 

out of a predicate act committed in an attempt to compel 

another state or international organization to do or abstain 

from doing any act; or

(G) was directed toward or resulted in the carrying out 

of a predicate act—

(i) outside the United States; or

(ii) within the United States, and either the offense or 

the predicate act was conducted in, or the results thereof 

affected, interstate or foreign commerce;

(2) the offense takes place outside the United States and—

(A) a perpetrator is a national of the United States or 

is a stateless person whose habitual residence is in the 

United States;

(B) a perpetrator is found in the United States; or

(C) was directed toward or resulted in the carrying out 

of a predicate act against—

(i) any property that is owned, leased, or used by the 

United States or by any department or agency of the 

United States, including an embassy or other diplomatic 

or consular premises of the United States;

(ii) any person or property within the United States;

(iii) any national of the United States or the property 

of such national; or

(iv) any property of any legal entity organized under 

the laws of the United States, including any of its States, 

districts, commonwealths, territories, or possessions;

(3) the offense is committed on board a vessel flying the flag 

of the United States or an aircraft which is registered under the 

laws of the United States at the time the offense is committed;

(4) the offense is committed on board an aircraft which is 

operated by the United States; or

(5) the offense was directed toward or resulted in the 

carrying out of a predicate act committed in an attempt to 

compel the United States to do or abstain from doing any act.

(c) Concealment. Whoever—

(1)(A) is in the United States; or

(B) is outside the United States and is a national of the 

United States or a legal entity organized under the laws 

of the United States (including any of its States, districts, 

commonwealths, territories, or possessions); and

(2) knowingly conceals or disguises the nature, location, 

source, ownership, or control of any material support or 

resources, or any funds or proceeds of such funds—

(A) knowing or intending that the support or resources 

are to be provided, or knowing that the support or resources 

were provided, in violation of section 2339B of this title; or

(B) knowing or intending that any such funds are to 

be provided or collected, or knowing that the funds were 

provided or collected, in violation of subsection (a),

shall be punished as prescribed in subsection (d)(2).

(d) Penalties.

(1) Subsection (a). Whoever violates subsection (a) shall 

be fined under this title, imprisoned for not more than 20 

years, or both.

(2) Subsection (c). Whoever violates subsection (c) shall 

be fined under this title, imprisoned for not more than 10 

years, or both.

(e) Definitions. In this section—

(1) the term “funds” means assets of every kind, whether 

tangible or intangible, movable or immovable, however 

acquired, and legal documents or instruments in any form, 

including electronic or digital, evidencing title to, or interest 

in, such assets, including coin, currency, bank credits, travelers 

checks, bank checks, money orders, shares, securities, bonds, 

drafts, and letters of credit;

(2) the term “government facility” means any permanent 

or temporary facility or conveyance that is used or occupied 

by representatives of a state, members of a government, the 

legislature, or the judiciary, or by officials or employees of a 

state or any other public authority or entity or by employees 

or officials of an intergovernmental organization in connection 

with their official duties;

(3) the term “proceeds” means any funds derived from or 

obtained, directly or indirectly, through the commission of an 

offense set forth in subsection (a);

(4) the term “provides” includes giving, donating, and 

transmitting;
Money Laundering Statutes • 25

18 U.S.C. § 2339C

(5) the term “collects” includes raising and receiving;

(6) the term “predicate act” means any act referred to in 

subparagraph (A) or (B) of subsection (a)(1);

(7) the term “treaty” means—

(A) the Convention for the Suppression of Unlawful 

Seizure of Aircraft, done at The Hague on December 16, 

1970;

(B) the Convention for the Suppression of Unlawful 

Acts against the Safety of Civil Aviation, done at Montreal 

on September 23, 1971;

(C) the Convention on the Prevention and Punishment 

of Crimes against Internationally Protected Persons, 

including Diplomatic Agents, adopted by the General 

Assembly of the United Nations on December 14, 1973;

(D) the International Convention against the Taking of 

Hostages, adopted by the General Assembly of the United 

Nations on December 17, 1979;

(E) the Convention on the Physical Protection of 

Nuclear Material, adopted at Vienna on March 3, 1980;

(F) the Protocol for the Suppression of Unlawful Acts of 

Violence at Airports Serving International Civil Aviation, 

supplementary to the Convention for the Suppression of 

Unlawful Acts against the Safety of Civil Aviation, done 

at Montreal on February 24, 1988;

(G) the Convention for the Suppression of Unlawful 

Acts against the Safety of Maritime Navigation, done at 

Rome on March 10, 1988;

(H) the Protocol for the Suppression of Unlawful 

Acts against the Safety of Fixed Platforms located on the 

Continental Shelf, done at Rome on March 10, 1988; or

(I) the International Convention for the Suppression of 

Terrorist Bombings, adopted by the General Assembly of 

the United Nations on December 15, 1997;

(8) the term “intergovernmental organization” includes 

international organizations;

(9) the term “international organization” has the same 

meaning as in section 1116(b)(5) of this title;

(10) the term “armed conflict” does not include internal 

disturbances and tensions, such as riots, isolated and sporadic 

acts of violence, and other acts of a similar nature;

(11) the term “serious bodily injury” has the same meaning 

as in section 1365(g)(3) of this title;

(12) the term “national of the United States” has the 

meaning given that term in section 101(a)(22) of the 

Immigration and Nationality Act (8 U.S.C. 1101(a)(22));

(13) the term “material support or resources” has the 

same meaning given that term in section 2339B(g)(4) of this 

title; and

(14) the term “state” has the same meaning as that 

term has under international law, and includes all political 

subdivisions thereof.

(f) Civil penalty. In addition to any other criminal, civil, or 

administrative liability or penalty, any legal entity located 

within the United States or organized under the laws of 

the United States, including any of the laws of its States, 

districts, commonwealths, territories, or possessions, shall 

be liable to the United States for the sum of at least $10,000, 

if a person responsible for the management or control of that 

legal entity has, in that capacity, committed an offense set 

forth in subsection (a).

Amended: USA Patriot Improvement and Reauthorization Act of 

2005, Pub. L. 109-177, Title IV, § 408, Mar. 9, 2006, 120 Stat. 

192, 245.
26 • Money Laundering Statutes

21 U.S.C. § 853 

TITLE 21

21 U.S.C. § 853. Criminal forfeitures.

(a) Property subject to criminal forfeiture. Any person 

convicted of a violation of this title or title III punishable 

by imprisonment for more than one year shall forfeit to the 

United States, irrespective of any provision of State law—

(1) any property constituting, or derived from, any 

proceeds the person obtained, directly or indirectly, as the 

result of such violation;

(2) any of the person’s property used, or intended to be 

used, in any manner or part, to commit, or to facilitate the 

commission of, such violation; and

(3) in the case of a person convicted of engaging in a 

continuing criminal enterprise in violation of section 408 of this 

title (21 U.S.C. 848), the person shall forfeit, in addition to any 

property described in paragraph (1) or (2), any of his interest 

in, claims against, and property or contractual rights affording 

a source of control over, the continuing criminal enterprise. 

The court, in imposing sentence on such person, shall order, 

in addition to any other sentence imposed pursuant to this 

title or title III, that the person forfeit to the United States 

all property described in this subsection. In lieu of a fine 

otherwise authorized by this part, a defendant who derives 

profits or other proceeds from an offense may be fined not 

more than twice the gross profits or other proceeds.

(b) Meaning of term “property”. Property subject to criminal 

forfeiture under this section includes—

(1) real property, including things growing on, affixed to, 

and found in land; and

(2) tangible and intangible personal property, including 

rights, privileges, interests, claims, and securities.

(c) Third party transfers. All right, title, and interest in property 

described in subsection (a) vests in the United States upon 

the commission of the act giving rise to forfeiture under this 

section. Any such property that is subsequently transferred to a 

person other than the defendant may be the subject of a special 

verdict of forfeiture and thereafter shall be ordered forfeited to 

the United States, unless the transferee establishes in a hearing 

pursuant to subsection (n) that he is a bona fide purchaser 

for value of such property who at the time of purchase was 

reasonably without cause to believe that the property was 

subject to forfeiture under this section.

(d) Rebuttable presumption. There is a rebuttable presumption 

at trial that any property of a person convicted of a felony 

under this title or title III is subject to forfeiture under this 

section if the United States establishes by a preponderance 

of the evidence that—

(1) such property was acquired by such person during 

the period of the violation of this title or title III or within a 

reasonable time after such period; and

(2) there was no likely source for such property other than 

the violation of this title or title III.

(e) Protective orders.

(1) Upon application of the United States, the court may 

enter a restraining order or injunction, require the execution 

of a satisfactory performance bond, or take any other 

action to preserve the availability of property described in 

subsection (a) for forfeiture under this section—

(A) upon the filing of an indictment or information 

charging a violation of this title or title III for which 

criminal forfeiture may be ordered under this section and 

alleging that the property with respect to which the order 

is sought would, in the event of conviction, be subject to 

forfeiture under this section; or

(B) prior to the filing of such an indictment or 

information, if, after notice to persons appearing to have 

an interest in the property and opportunity for a hearing, 

the court determines that—

(i) there is a substantial probability that the United 

States will prevail on the issue of forfeiture and that 

failure to enter the order will result in the property 

being destroyed, removed from the jurisdiction of the 

court, or otherwise made unavailable for forfeiture; and

(ii) the need to preserve the availability of the 

property through the entry of the requested order 

outweighs the hardship on any party against whom the 

order is to be entered:

Provided, however, That an order entered pursuant to 

subparagraph (B) shall be effective for not more than 

ninety days, unless extended by the court for good cause 

shown or unless an indictment or information described in 

subparagraph (A) has been filed.

(2) A temporary restraining order under this subsection 

may be entered upon application of the United States without 

notice or opportunity for a hearing when an information or 

indictment has not yet been filed with respect to the property, 

if the United States demonstrates that there is probable cause 

to believe that the property with respect to which the order is 

sought would, in the event of conviction, be subject to forfeiture 

under this section and that provision of notice will jeopardize 

the availability of the property for forfeiture. Such a temporary 

order shall expire not more than fourteen days after the date 

on which it is entered, unless extended for good cause shown 

or unless the party against whom it is entered consents to an 

extension for a longer period. A hearing requested concerning 

an order entered under this paragraph shall be held at the earliest 

possible time and prior to the expiration of the temporary order.
Money Laundering Statutes • 27

21 U.S.C. § 853

(3) The court may receive and consider, at a hearing held 

pursuant to this subsection, evidence and information that 

would be inadmissible under the Federal Rules of Evidence.

(4) Order to repatriate and deposit.

(A) In general. Pursuant to its authority to enter a 

pretrial restraining order under this section, the court may 

order a defendant to repatriate any property that may be 

seized and forfeited, and to deposit that property pending 

trial in the registry of the court, or with the United States 

Marshals Service or the Secretary of the Treasury, in an 

interest-bearing account, if appropriate.

(B) Failure to comply. Failure to comply with an order 

under this subsection, or an order to repatriate property 

under subsection (p), shall be punishable as a civil or 

criminal contempt of court, and may also result in an 

enhancement of the sentence of the defendant under the 

obstruction of justice provision of the Federal Sentencing 

Guidelines.

(f) Warrant of seizure. The Government may request the 

issuance of a warrant authorizing the seizure of property 

subject to forfeiture under this section in the same manner 

as provided for a search warrant. If the court determines that 

there is probable cause to believe that the property to be seized 

would, in the event of conviction, be subject to forfeiture and 

that an order under subsection (e) may not be sufficient to 

assure the availability of the property for forfeiture, the court 

shall issue a warrant authorizing the seizure of such property.

(g) Execution. Upon entry of an order of forfeiture under 

this section, the court shall authorize the Attorney General 

to seize all property ordered forfeited upon such terms and 

conditions as the court shall deem proper. Following entry 

of an order declaring the property forfeited, the court may, 

upon application of the United States, enter such appropriate 

restraining orders or injunctions, require the execution 

of satisfactory performance bonds, appoint receivers, 

conservators, appraisers, accountants, or trustees, or take 

any other action to protect the interest of the United States 

in the property ordered forfeited. Any income accruing to or 

derived from property ordered forfeited under this section 

may be used to offset ordinary and necessary expenses to the 

property which are required by law, or which are necessary 

to protect the interests of the United States or third parties.

(h) Disposition of property. Following the seizure of property 

ordered forfeited under this section, the Attorney General 

shall direct the disposition of the property by sale or any other 

commercially feasible means, making due provision for the 

rights of any innocent persons. Any property right or interest 

not exercisable by, or transferable for value to, the United 

States shall expire and shall not revert to the defendant, nor 

shall the defendant or any person acting in concert with him 

or on his behalf be eligible to purchase forfeited property 

at any sale held by the United States. Upon application of a 

person, other than the defendant or a person acting in concert 

with him or on his behalf, the court may restrain or stay the 

sale or disposition of the property pending the conclusion of 

any appeal of the criminal case giving rise to the forfeiture, 

if the applicant demonstrates that proceeding with the sale 

or disposition of the property will result in irreparable injury, 

harm, or loss to him.

(i) Authority of the Attorney General. With respect to property 

ordered forfeited under this section, the Attorney General is 

authorized to—

(1) grant petitions for mitigation or remission of forfeiture, 

restore forfeited property to victims of a violation of this 

title, or take any other action to protect the rights of innocent 

persons which is in the interest of justice and which is not 

inconsistent with the provisions of this section;

(2) compromise claims arising under this section;

(3) award compensation to persons providing information 

resulting in a forfeiture under this section;

(4) direct the disposition by the United States, in accordance 

with the provisions of section 511(e) of this title (21 U.S.C. 

881(e)), of all property ordered forfeited under this section 

by public sale or any other commercially feasible means, 

making due provision for the rights of innocent persons; and

(5) take appropriate measures necessary to safeguard and 

maintain property ordered forfeited under this section pending 

its disposition.

(j) Applicability of civil forfeiture provisions. Except to the 

extent that they are inconsistent with the provisions of this 

section, the provisions of section 511(d) of this title (21 U.S.C. 

881(d)) shall apply to a criminal forfeiture under this section.

(k) Bar on intervention. Except as provided in subsection (n), 

no party claiming an interest in property subject to forfeiture 

under this section may— 

(1) intervene in a trial or appeal of a criminal case involving 

the forfeiture of such property under this section; or

(2) commence an action at law or equity against the 

United States concerning the validity of his alleged interest 

in the property subsequent to the filing of an indictment or 

information alleging that the property is subject to forfeiture 

under this section.

(l) Jurisdiction to enter orders. The district courts of the United 

States shall have jurisdiction to enter orders as provided in this 

section without regard to the location of any property which 

may be subject to forfeiture under this section or which has 

been ordered forfeited under this section.

(m) Depositions. In order to facilitate the identification and 

location of property declared forfeited and to facilitate the 
28 • Money Laundering Statutes

21 U.S.C. § 853 

disposition of petitions for remission or mitigation of forfeiture, 

after the entry of an order declaring property forfeited to the 

United States, the court may, upon application of the United 

States, order that the testimony of any witness relating to 

the property forfeited be taken by deposition and that any 

designated book, paper, document, record, recording, or other 

material not privileged be produced at the same time and place, 

in the same manner as provided for the taking of depositions 

under Rule 15 of the Federal Rules of Criminal Procedure.

(n) Third party interests.

(1) Following the entry of an order of forfeiture under this 

section, the United States shall publish notice of the order 

and of its intent to dispose of the property in such manner 

as the Attorney General may direct. The Government may 

also, to the extent practicable, provide direct written notice to 

any person known to have alleged an interest in the property 

that is the subject of the order of forfeiture as a substitute for 

published notice as to those persons so notified.

(2) Any person, other than the defendant, asserting a 

legal interest in property which has been ordered forfeited to 

the United States pursuant to this section may, within thirty 

days of the final publication of notice or his receipt of notice 

under paragraph (1), whichever is earlier, petition the court 

for a hearing to adjudicate the validity of his alleged interest 

in the property. The hearing shall be held before the court 

alone, without a jury.

(3) The petition shall be signed by the petitioner under 

penalty of perjury and shall set forth the nature and extent of 

the petitioner’s right, title, or interest in the property, the time 

and circumstances of the petitioner’s acquisition of the right, 

title, or interest in the property, any additional facts supporting 

the petitioner’s claim, and the relief sought.

(4) The hearing on the petition shall, to the extent 

practicable and consistent with the interests of justice, be 

held within thirty days of the filing of the petition. The court 

may consolidate the hearing on the petition with a hearing on 

any other petition filed by a person other than the defendant 

under this subsection.

(5) At the hearing, the petitioner may testify and present 

evidence and witnesses on his own behalf, and cross-examine 

witnesses who appear at the hearing. The United States may 

present evidence and witnesses in rebuttal and in defense of 

its claim to the property and cross-examine witnesses who 

appear at the hearing. In addition to testimony and evidence 

presented at the hearing, the court shall consider the relevant 

portions of the record of the criminal case which resulted in 

the order of forfeiture.

(6) If, after the hearing, the court determines that 

the petitioner has established by a preponderance of the 

evidence that—

(A) the petitioner has a legal right, title, or interest in 

the property, and such right, title, or interest renders the 

order of forfeiture invalid in whole or in part because the 

right, title, or interest was vested in the petitioner rather 

than the defendant or was superior to any right, title, or 

interest of the defendant at the time of the commission of 

the acts which gave rise to the forfeiture of the property 

under this section; or

(B) the petitioner is a bona fide purchaser for value of 

the right, title, or interest in the property and was at the 

time of purchase reasonable without cause to believe that 

the property was subject to forfeiture under this section;

the court shall amend the order of forfeiture in accordance 

with its determination.

(7) Following the court’s disposition of all petitions filed 

under this subsection, or if no such petitions are filed following 

the expiration of the period provided in paragraph (2) for the 

filing of such petitions, the United States shall have clear title 

to property that is the subject of the order of forfeiture and may 

warrant good title to any subsequent purchaser or transferee.

(o) Construction. The provisions of this section shall be 

liberally construed to effectuate its remedial purposes.

(p) Forfeiture of substitute property.

(1) In general. Paragraph (2) of this subsection shall apply, 

if any property described in subsection (a), as a result of any 

act or omission of the defendant—

(A) cannot be located upon the exercise of due diligence;

(B) has been transferred or sold to, or deposited with, 

a third party;

(C) has been placed beyond the jurisdiction of the court;

(D) has been substantially diminished in value; or

(E) has been commingled with other property which 

cannot be divided without difficulty.

(2) Substitute property. In any case described in any of 

subparagraphs (A) through (E) of paragraph (1), the court shall 

order the forfeiture of any other property of the defendant, up 

to the value of any property described in subparagraphs (A) 

through (E) of paragraph (1), as applicable.

(3) Return of property to jurisdiction. In the case of 

property described in paragraph (1)(C), the court may, in 

addition to any other action authorized by this subsection, 

order the defendant to return the property to the jurisdiction 

of the court so that the property may be seized and forfeited.

(q) Restitution for cleanup of clandestine laboratory sites. 

The court, when sentencing a defendant convicted of an 

offense under this title or title III involving the manufacture, 
Money Laundering Statutes • 29

21 U.S.C. § 853

the possession, or the possession with intent to distribute, of 

amphetamine or methamphetamine, shall—

(1) order restitution as provided in sections 3612 and 3664 

of title 18, United States Code;

(2) order the defendant to reimburse the United States, the 

State or local government concerned, or both the United States 

and the State or local government concerned for the costs 

incurred by the United States or the State or local government 

concerned, as the case may be, for the cleanup associated with 

the manufacture of amphetamine or methamphetamine by the 

defendant, or on premises or in property that the defendant 

owns, resides, or does business in; and

 (3) order restitution to any person injured as a result of 

the offense as provided in section 3663A of title 18, United 

States Code.

Amended: Statutory Time-Periods Amendments Act of 2009, 

Pub. L. 111-16, § 5, May 7, 2009, 123 Stat. 1608.
30 • Money Laundering Statutes

26 U.S.C. § 6050I 

TITLE 26

26 U.S.C. § 6050I. Returns relating to cash 

received in trade or business, etc.

(a) Cash receipts of more than 10,000.—Any person—

(1) who is engaged in a trade or business, and

(2) who, in the course of such trade or business, receives 

more than $10,000 in cash in 1 transaction (or 2 or more 

related transactions),

shall make the return described in subsection (b) with respect 

to such transaction (or related transactions) at such time as 

the Secretary may by regulations prescribe.

(b) Form and manner of returns.—A return is described in 

this subsection if such return—

(1) is in such form as the Secretary may prescribe,

(2) contains—

(A) the name, address, and TIN of the person from 

whom the cash was received,

(B) the amount of cash received,

(C) the date and nature of the transaction, and

(D) such other information as the Secretary may prescribe.

(c) Exceptions.—

(1) Cash received by financial institutions.— Subsection 

(a) shall not apply to—

(A) cash received in a transaction reported under title 

31, United States Code, if the Secretary determines that 

reporting under this section would duplicate the reporting 

to the Treasury under title 31, United States Code, or

(B) cash received by any financial institution (as defined 

in subparagraphs (A), (B), (C), (D), (E), (F), (G), (J), 

(K), (R), and (S) of section 5312(a)(2) of title 31, United 

States Code).

(2) Transactions occurring outside the United States.—

Except to the extent provided in regulations prescribed by the 

Secretary, subsection (a) shall not apply to any transaction if 

the entire transaction occurs outside the United States.

(d) Cash includes foreign currency and certain monetary 

transactions.—For the purposes of this section, the term 

“cash” includes— 

(1) foreign currency, and

(2) to the extent provided in regulations prescribed by the 

Secretary, any monetary instrument (whether or not in bearer 

form) with a face amount of not more than $10,000.

Paragraph (2) shall not apply to any check drawn on the 

account of the writer in a financial institution referred to in 

subsection (c)(1)(B).

(e) Statements to be furnished to persons with respect to 

whom information is required.—Every person required to 

make a return under subsection (a) shall furnish to each person 

whose name is required to be set forth in such return a written 

statement showing—

(1)the name, address and phone number of the information 

contact of the person required to make such return, and

(2) the aggregate amount of cash described in subsection 

(a) received by the person required to make such return.

The written statement required under the preceding sentence 

shall be furnished to the person on or before January 31 of the 

year following the calendar year for which the return under 

subsection (a) was required to be made.

(f) Structuring transactions to evade reporting requirements 

prohibited.—

(1) In general.—No person shall for the purpose of evading 

the return requirements of this section—

(A) cause or attempt to cause a trade or business to fail 

to file a return required under this section;

(B) cause or attempt to cause a trade or business to file 

a return required under this section that contains a material 

omission or misstatement of fact, or

(C) structure or assist in structuring, or attempt to 

structure or assist in structuring, any transaction with one 

or more trades or businesses.

(2) Penalties.—A person violating paragraph (1) of this 

subsection shall be subject to the same civil and criminal 

sanctions applicable to a person which fails to file or completes 

a false or incorrect return under this section.

(g) Cash received by criminal court clerks.—

(1) In general.—Every clerk of a Federal or State criminal 

court who receives more than $10,000 in cash as bail or any 

individual charged with specified in paragraph (2) (at such 

time as the Secretary may by regulations prescribe) with 

respect to the receipt of such bail.

(2) Return.—A return is described in this paragraph if 

such return— 

(A) is in such form as the Secretary may prescribe, and

(B) contains— 

(i) The name, address, and TIN of— 

(I) the individual charged with the specified 

criminal offense, and
Money Laundering Statutes • 31

26 U.S.C. § 6050I

(II) each person posting the bail (other than a 

person licensed as a bail bondsman),

(ii) the amount of cash received,

(iii) the date the cash was received, and

(iv) such other information as the Secretary may 

prescribe.

(3) Specified criminal offense.—For purposes of this 

subsection, the term “specified criminal offense” means— 

(A) any Federal criminal offense involving a controlled 

substance,

(B) racketeering (as defined in section 1951, 1952, or 

1955 of title 18, United States Code),

(C) money laundering (as defined in section 1956 or 

1957 of such title), and

(D) any State criminal offense substantially similar 

to an offense described in subparagraph (A), (B), or (C).

(4) Information to Federal prosecutors.—Each clerk 

required to include a return under paragraph (1) the 

information described in paragraph (2)(B) with respect to an 

individual described in paragraph (2)(B)(i)(I) shall furnish 

(at such time as the Secretary may by regulations prescribe) 

a written statement showing such information to the United 

States Attorney for the jurisdiction in which such individual 

resides and the jurisdiction in which the specified criminal 

offense occurred.

(5) Information to payors of bail.—Each clerk required to 

make a return under paragraph (1) shall furnish (at such time 

as the Secretary may by regulations prescribe) to each person 

whose name is required to be set forth in such return by reason 

of paragraph (2)(B)(i)(II) a written statement showing— 

(A) the name and address of the clerk’s office required 

to make the return, and 

(B) the aggregate amount of cash described in 

paragraph (1) received by such clerk. 

Amended: Taxpayer Bill of Rights 2, Pub. L. 104-168, Title XII, 

§ 1201(a)(9), July 30, 1996, 110 Stat. 1452, 1469.

26 U.S.C. § 6050I. Note.

In some cases, Tax Division approval is required before 

a case can be brought under 26 U.S.C. § 6050I, and the 

statute does not authorize forfeiture. We recommend using 

31U.S.C. § 5331 instead. When charged in conjunction with 

31 U.S.C. § 5324 (structuring), section 5331 carries civil and 

criminal forfeiture authority pursuant to 31 U.S.C. § 5317.
32 • Money Laundering Statutes

31 U.S.C. § 5312 

TITLE 31

31 U.S.C. § 5312. Definitions and application.

 (a) In this subchapter—

 (1) “financial agency” means a person acting for a person 

(except for a country, a monetary or financial authority acting 

as a monetary or financial authority, or an international 

financial institution of which the United States Government 

is a member) as a financial institution, bailee, depository 

trustee, or agent, or acting in a similar way related to money, 

credit, securities, gold, or a transaction in money, credit, 

securities, or gold.

 (2) “financial institution” means—

(A) an insured bank (as defined in section 3(h) of the 

Federal Deposit Insurance Act (12 U.S.C. § 1813(h)));

(B) a commercial bank or trust company;

(C) a private banker;

(D) an agency or branch of a foreign bank in the United 

States;

(E) any credit union;

(F) a thrift institution;

(G) a broker or dealer registered with the Securities and 

Exchange Commission under the Securities Exchange Act 

of 1934 (15 U.S.C. § 78a et seq.);

(H) a broker or dealer in securities or commodities;

(I) an investment banker or investment company;

(J) a currency exchange;

(K) an issuer, redeemer, or cashier of travelers’ checks, 

checks, money orders, or similar instruments;

(L) an operator of a credit card system;

(M) an insurance company;

(N) a dealer in precious metals, stones, or jewels;

(O) a pawnbroker;

(P) a loan or finance company;

(Q) a travel agency;

(R) a licensed sender of money or any other person 

who engages as a business in the transmission of funds, 

including any person who engages as a business in an 

informal money transfer system or any network of people 

who engage as a business in facilitating the transfer of 

money domestically or internationally outside of the 

conventional financial institutions system;

(S) a telegraph company;

(T) a business engaged in vehicle sales, including 

automobile, airplane, and boat sales;

(U) persons involved in real estate closings and 

settlements;

(V) the United States Postal Service;

(W) an agency of the United States Government or of 

a State or local government carrying out a duty or power 

of a business described in this paragraph;

(X) a casino, gambling casino, or gaming establishment 

with an annual gaming revenue of more than $1,000,000 

which;

(i) is licensed as a casino, gambling casino, or 

gaming establishment under the laws of any State or 

any political subdivision of any State; or

(ii) is an Indian gaming operation conducted under 

or pursuant to the Indian Gaming Regulatory Act other 

than an operation which is limited to class I gaming (as 

defined in section 4(6) of such Act);

(Y) any business or agency which engages in any 

activity which the Secretary of the Treasury determines, 

by regulation, to be an activity which is similar to, related 

to, or a substitute for any activity in which any business 

described in this paragraph is authorized to engage; or

(Z) any other business designated by the Secretary 

whose cash transactions have a high degree of usefulness 

in criminal, tax, or regulatory matters.

(3) “monetary instruments” means—

(A) United States coins and currency;

(B) as the Secretary may prescribe by regulation, coins 

and currency of a foreign country, travelers’ checks, bearer 

negotiable instruments, bearer investment securities, bearer 

securities, stock on which title is passed on delivery, and 

similar material; and

(C) as the Secretary of the Treasury shall provide by 

regulation for purposes of sections 5316 and 5331, checks, 

drafts, notes, money orders, and other similar instruments 

which are drawn on or by a foreign financial institution 

and are not in bearer form.

(4) Nonfinancial trade or business.—The term “nonfinancial 

trade or business” means any trade or business other than a 

financial institution that is subject to the reporting requirements 

of section 5313 and regulations prescribed under such section.

(5) “person“, in addition to its meaning under section 1 

of title 1, includes a trustee, a representative of an estate and, 

when the Secretary prescribes, a governmental entity.
Money Laundering Statutes • 33

31 U.S.C. § 5313

(6) “United States” means the States of the United States, 

the District of Columbia, and, when the Secretary prescribes 

by regulation, the Commonwealth of Puerto Rico, the Virgin 

Islands, Guam, the Northern Mariana Islands, American 

Samoa, the Trust Territory of the Pacific Islands, a territory 

or possession of the United States, or a military or diplomatic 

establishment.

(b) In this subchapter—

(1) “domestic financial agency” and “domestic financial 

institution” apply to an action in the United States of a 

financial agency or institution.

(2) “foreign financial agency” and “foreign financial 

institution” apply to an action outside the United States of a 

financial agency or institution.

(c) Additional definitions.—For purposes of this subchapter, 

the following definitions shall apply:

(1) Certain institutions included in definition.—The term 

“financial institution” (as defined in subsection (a)) includes 

the following:

(A) Any futures commission merchant, commodity 

trading advisor, or commodity pool operator registered, 

or required to register, under the Commodity Exchange 

Act [7 U.S.C.A. § 1 et seq.].

Amended: Intelligence Reform and Terrorism Prevention Act of 

2004, Pub. L. 108-458, Title VI, §§ 6202(g), 6203(b), Dec. 17, 

2004, 118 Stat. 3638, 3746.

31 U.S.C. § 5313. Reports on domestic coins 

and currency transaction. 

(a) When a domestic financial institution is involved in a 

transaction for the payment, receipt, or transfer of United 

States coins or currency (or other monetary instruments 

the Secretary of the Treasury prescribes), in an amount, 

denomination, or amount and denomination, or under 

circumstances the Secretary prescribes by regulation, the 

institution and any other participant in the transaction the 

Secretary may prescribe shall file a report on the transaction at 

the time and in the way the Secretary prescribes. A participant 

acting for another person shall make the report as the agent 

or bailee of the person and identify the person for whom the 

transaction is being made.

(b) The Secretary may designate a domestic financial 

institution as an agent of the United States Government to 

receive a report under this section. However, the Secretary 

may designate a domestic financial institution that is not 

insured, chartered, examined, or registered as a domestic 

financial institution only if the institution consents. The 

Secretary may suspend or revoke a designation for a violation 

of this subchapter or a regulation under this subchapter 

(except a violation of section 5315 of this title or a regulation 

prescribed under section 5315), section 411 of the National 

Housing Act (12 U.S.C. § 1730d), or section 21 of the Federal 

Deposit Insurance Act (12 U.S.C. § 1829b).

(c)(1) A person (except a domestic financial institution 

designated under subsection (b) of this section) required to 

file a report under this section shall file the report—

(A) with the institution involved in the transaction if 

the institution was designated;

(B) in the way the Secretary prescribes when the 

institution was not designated; or 

(C) with the Secretary.

(2) The Secretary shall prescribe—

(A) the filing procedure for a domestic financial 

institution designated under subsection (b) of this section; 

and

(B) the way the institution shall submit reports filed 

with it.

(d) Mandatory exemptions from reporting requirements.—

(1) In general.—The Secretary of the Treasury shall 

exempt, pursuant to section 5318(a)(6), a depository 

institution from the reporting requirements of subsection (a) 

with respect to transactions between the depository institution 

and the following categories of entities:

(A) Another depository institution.

(B) A department or agency of the United States, any 

State, or any political subdivision of any State.

(C) Any entity established under the laws of the United 

States, any State, or any political subdivision of any State, 

or under an interstate compact between 2 or more States, 

which exercises governmental authority on behalf of the 

United States or any such State or political subdivision.

(D) Any business or category of business the law reports 

on which have little or no value for law enforcement 

purposes.

(2) Notice of exemption.—The Secretary of the Treasury 

shall publish in the Federal Register at such times as the 

Secretary determines to be appropriate (but not less frequently 

than once each year) a list of all the entities whose transactions 

with a depository institution are exempt under this subsection 

from the reporting requirements of subsection (a).

(e) Discretionary exemptions from reporting requirements.—

(1) In general.—The Secretary of the Treasury may 

exempt, pursuant to section 5318(a)(6), a depository 

institution from the reporting requirements of subsection 
34 • Money Laundering Statutes

31 U.S.C. § 5313 

(a) with respect to transactions between the depository 

institution and a qualified business customer of the institution 

on the basis of information submitted to the Secretary by the 

institution in accordance with procedures which the Secretary 

shall establish.

(2) Qualified business customer defined.— For purposes 

of this subsection, the term “qualified business customer” 

means a business which—

(A) maintains a transaction account (as defined in 

section 19(b)(1)(C) of the Federal Reserve Act) at the 

depository institution;

(B) frequently engages in transactions with the 

depository institution which are subject to the reporting 

requirements of subsection (a); and

(C) meets criteria which the Secretary determines are 

sufficient to ensure that the purposes of this subchapter 

are carried out without requiring a report with respect to 

such transactions.

(3) Criteria for exemption.— The Secretary of the Treasury 

shall establish, by regulation, the criteria for granting and 

maintaining an exemption under paragraph (1).

(4) Guidelines.—

(A) In general.—The Secretary of the Treasury shall 

establish guidelines for depository institutions to follow in 

selecting customers for an exemption under this subsection.

(B) Contents.—The guidelines may include a 

description of the types of businesses or an itemization of 

specific businesses for which no exemption will be granted 

under this subsection to any depository institution.

(5) Annual review.—The Secretary of the Treasury shall 

prescribe regulations requiring each depository institution 

to—

(A) review, at least once each year, the qualified business 

customers of such institution with respect to whom an 

exemption has been granted under this subsection; and

(B) upon the completion of such review, resubmit 

information about such customers, with such modifications 

as the institution determines to be appropriate, to the 

Secretary for the Secretary’s approval.

(6) 2-Year phase-in provision.—During the 2-year 

period beginning on the date of enactment of the Money 

Laundering Suppression Act of 1994, this subsection shall be 

applied by the Secretary on the basis of such criteria as the 

Secretary determines to be appropriate to achieve an orderly 

implementation of the requirements of this subsection.

(f) Provisions applicable to mandatory and discretionary 

exemptions.— 

(1) Limitation on liability of depository institutions.— No 

depository institution shall be subject to any penalty which 

may be imposed under this subchapter for the failure of the 

institution to file a report with respect to a transaction with 

a customer for whom an exemption has been granted under 

subsection (d) or (e) unless the institution—

(A) knowingly files false or incomplete information to 

the Secretary with respect to the transaction or the customer 

engaging in the transaction; or

(B) has reason to believe at the time the exemption is 

granted or the transaction is entered into that the customer 

or the transaction does not meet the criteria established for 

granting such exemption.

(2) Coordination with other provisions.—Any exemption 

granted by the Secretary of the Treasury under section 5318(a) 

in accordance with this section, and any transaction which 

is subject to such exemption, shall be subject to any other 

provision of law applicable to such exemption, including—

(A) the authority of the Secretary, under section 

5318(a) (6), to revoke such exemption to any time; and

(B) any requirement to report, or any authority to 

require a report on, any possible violation of any law or 

regulation or any suspected criminal activity.

(g) Depository institution defined.—For purposes of this 

section, the term “depository institution“—

(1) has the meaning given to such term in section 

19(b)(1)(A) of the Federal Reserve Act; and

(2) includes—

(A) any branch, agency, or commercial lending 

company (as such terms are defined in section 1(b) of the 

International Banking Act of 1978);

(B) any corporation chartered under section 25A of the 

Federal Reserve Act; and

(C) any corporation having an agreement or undertaking 

with the Board of Governors of the Federal Reserve System 

under section 25 of the Federal Reserve Act.

Amended: Riegle Community Development and Regulatory 

Improvement Act of 1994, Pub. L. 103-325, Title IV, § 402(a), 

Sept. 23, 1994, 108 Stat. 2160, 2243.
Money Laundering Statutes • 35

31 U.S.C. § 5317

31 U.S.C. § 5316. Reports on exporting and 

importing monetary instruments.

(a) Except as provided in subsection (c) of this section, a 

person or an agent or bailee of the person shall file a report 

under subsection (b) of this section when the person, agent, 

or bailee knowingly—

(1) transports, is about to transport, or has transported, 

monetary instruments of more than $10,000 at one time—

(A) from a place in the United States to or through a 

place outside the United States; or 

(B) to a place in the United States from or through a 

place outside the United States; or

(2) receives monetary instruments of more than $10,000 at 

one time transported into the United States from or through a 

place outside the United States.

(b) A report under this section shall be filed at the time and 

place the Secretary of the Treasury prescribes. The report shall 

contain the following information to the extent the Secretary 

prescribes:

(1) the legal capacity in which the person filing the report 

is acting.

(2) the origin, destination, and route of the monetary 

instruments.

(3) when the monetary instruments are not legally 

and beneficially owned by the person transporting the 

instruments, or if the person transporting the instruments 

personally is not going to use them, the identity of the person 

that gave the instruments to the person transporting them, 

the identity of the person who is to receive them, or both.

(4) the amount and kind of monetary instruments 

transported.

(5) additional information.

(c) This section or a regulation under this section does not 

apply to a common carrier of passengers when a passenger 

possesses a monetary instrument, or to a common carrier of 

goods if the shipper does not declare the instrument.

(d) Cumulation of closely related events.— The Secretary 

of the Treasury may prescribe regulations under this section 

defining the term “at one time” for purposes of subsection (a). 

Such regulations may permit the cumulation of closely related 

events in order that such events may collectively be considered 

to occur at one time for the purposes of subsection (a).

Amended: Anti-Drug Abuse Act of 1986, Pub. L. 99-570, Title 

I, § 1358, Title III, § 3153, Oct. 27, 1986, 100 Stat. 3207-26 and 

3207-94.

31 U.S.C. § 5317. Search and forfeiture of 

monetary instruments.

(a) The Secretary of the Treasury may apply to a court 

of competent jurisdiction for a search warrant when the 

Secretary reasonably believes a monetary instrument is being 

transported and a report on the instrument under section 5316 

of this title has not been filed or contains a material omission 

or misstatement. The Secretary shall include a statement 

of information in support of the warrant. On a showing of 

probable cause, the court may issue a search warrant for 

a designated person or a designated or described place or 

physical object. This subsection does not affect the authority 

of the Secretary under another law.

(b) Searches at border.—For purposes of ensuring compliance 

with the requirements of section 5316, a customs officer 

may stop and search, at the border and without a search 

warrant, any vehicle, vessel, aircraft, or other conveyance, 

any envelope or other container, and any person entering or 

departing from the United States.

(c) Forfeiture.—

(1) Criminal forfeiture.—

(A) In general.—The court in imposing sentence for 

any violation of section 5313, 5316, or 5324 of this title, 

or any conspiracy to commit such violation, shall order the 

defendant to forfeit all property, real or personal, involved 

in the offense and any property traceable thereto.

(B) Procedure.—Forfeitures under this paragraph shall 

be governed by the procedures established in section 413 

of the Controlled Substances Act.

(2) Civil forfeiture.—Any property involved in a violation 

of section 5313, 5316, or 5324 of this title, or any conspiracy to 

commit any such violation, and any property traceable to any 

such violation or conspiracy, may be seized and forfeited to 

the United States in accordance with the procedures governing 

civil forfeitures in money laundering cases pursuant to section 

981(a)(1)(A) of title 18, United States Code.

Amended: Uniting and Strengthening America by Providing 

Appropriate Tools Required to Intercept and Obstruct Terrorism 

(USA PATRIOT) Act of 2001, Pub. L. 107-56, Title III, 

§§ 365(b)(2)(B), 372(a), Oct. 26, 2001, 115 Stat. 272, 335, 338.
36 • Money Laundering Statutes

31 U.S.C. § 5318 

31 U.S.C. § 5318. Compliance, exemptions, 

and summons authority.

(a) General powers of Secretary.—The Secretary of the 

Treasury may (except under section 5315 of this title and 

regulations prescribed under section 5315)—

(1) except as provided in subsection (b)(2), delegate 

duties and powers under this subchapter to an appropriate 

supervising agency and the United States Postal Service;

(2) require a class of domestic financial institutions or 

nonfinancial trades or businesses to maintain appropriate 

procedures to ensure compliance with this subchapter and 

regulations prescribed under this subchapter or to guard 

against money laundering;

(3) examine any books, papers, records, or other data 

of domestic financial institutions or nonfinancial trades 

or businesses relevant to the recordkeeping or reporting 

requirements of this subchapter;

(4) summon a financial institution or nonfinancial trade or 

business, an officer or employee of a financial institution or 

nonfinancial trade or business (including a former officer or 

employee), or any person having possession, custody, or care 

of the reports and records required under this subchapter, to 

appear before the Secretary of the Treasury or his delegate at 

a time and place named in the summons and to produce such 

books, papers, records, or other data, and to give testimony, 

under oath, as may be relevant or material to an investigation 

described in subsection (b);

(5) exempt from the requirements of this subchapter 

any class of transactions within any State if the Secretary 

determines that—

(A) under the laws of such State, that class of 

transactions is subject to requirements substantially similar 

to those imposed under this subchapter; and

(B) there is adequate provision for the enforcement of 

such requirements; and

(6) rely on examinations conducted by a State supervisory 

agency of a category of financial institution, if the Secretary 

determines that––

(A) the category of financial institution is required to 

comply with this subchapter and regulations prescribed 

under this subchapter; and

(B) the State supervisory agency examines the category 

of financial institution for compliance with this subchapter 

and regulations prescribed under this subchapter; and

(7) prescribe an appropriate exemption from a requirement 

under this subchapter and regulations prescribed under this 

subchapter. The Secretary may revoke an exemption under 

this paragraph or paragraph (5) by actually or constructively 

notifying the parties affected. A revocation is effective during 

judicial review.

(b) Limitations on summons power.—

(1) Scope of power.—The Secretary of the Treasury may 

take any action described in paragraph (3) or (4) of subsection 

(a) only in connection with investigations for the purpose of 

civil enforcement of violations of this subchapter, section 21 of 

the Federal Deposit Insurance Act, section 411 of the National 

Housing Act, or chapter 2 of Public Law 91-508 (12 U.S.C. 

1951 et seq.) or any regulation under any such provision.

(2) Authority to issue.—A summons may be issued 

under subsection (a)(4) only by, or with the approval of, the 

Secretary of the Treasury or a supervisory level delegate of 

the Secretary of the Treasury.

(c) Administrative aspects of summons.—

(1) Production at designated site.—A summons issued 

pursuant to this section may require that books, papers, 

records, or other data stored or maintained at any place be 

produced at any designated location in any State or in any 

territory or other place subject to the jurisdiction of the United 

States not more than 500 miles distant from any place where 

the financial institution or nonfinancial trade or business 

operates or conducts business in the United States.

(2) Fees and travel expenses.—Persons summoned under 

this section shall be paid the same fees and mileage for travel 

in the United States that are paid witnesses in the courts of 

the United States.

(3) No liability for expenses.—The United States shall not 

be liable for any expense, other than an expense described 

in paragraph (2), incurred in connection with the production 

of books, papers, records, or other data under this section.

(d) Service of summons.—Service of a summons issued 

under this section may be by registered mail or in such other 

manner calculated to give actual notice as the Secretary may 

prescribe by regulation.

(e) Contumacy or refusal.—

(1) Referral to Attorney General.—In case of contumacy 

by a person issued a summons under paragraph (3) or (4) 

of subsection (a) or a refusal by such person to obey such 

summons, the Secretary of the Treasury shall refer the matter 

to the Attorney General.

(2) Jurisdiction of court.—The Attorney General may 

invoke the aid of any court of the United States within the 

jurisdiction of which—

(A) the investigation which gave rise to the summons 

is being or has been carried on;
Money Laundering Statutes • 37

31 U.S.C. § 5318

(B) the person summoned is an inhabitant; or

(C) the person summoned carries on business or may 

be found, to compel compliance with the summons.

(3) Court order.—The court may issue an order requiring 

the person summoned to appear before the Secretary or his 

delegate to produce books, papers, records, and other data, 

to give testimony as may be necessary to explain how such 

material was compiled and maintained, and to pay the costs 

of the proceeding.

(4) Failure to comply with order.—Any failure to obey 

the order of the court may be punished by the court as a 

contempt thereof.

(5) Service of process.—All process in any case under this 

subsection may be served in any judicial district in which such 

person may be found.

(f) Written and signed statement required.—No person shall 

qualify for an exemption under subsection (a)(5) unless the 

relevant financial institution or nonfinancial trade or business 

prepares and maintains a statement which—

(1) describes in detail the reasons why such person is 

qualified for such exemption; and

(2) contains the signature of such person.

(g) Reporting of suspicious transactions.—

(1) In general.—The Secretary may require any financial 

institution, and any director, officer, employee, or agent of 

any financial institution, to report any suspicious transaction 

relevant to a possible violation of law or regulation.

(2) Notification prohibited.—

(A) In general.—If a financial institution or any director, 

officer, employee, or agent of any financial institution, 

voluntarily or pursuant to this section or any other 

authority, reports a suspicious transaction to a government 

agency—

(i) neither the financial institution, director, officer, 

employee, or agent of such institution (whether or not 

any such person is still employed by the institution), 

nor any other current or former director, officer, or 

employee of, or contractor for, the financial institution 

or other reporting person, may notify any person 

involved in the transaction that the transaction has been 

reported; and

(ii) no current or former officer or employee of or 

contractor for the Federal Government or of or for any 

State, local, tribal, or territorial government within the 

United States, who has any knowledge that such report 

was made may disclose to any person involved in the 

transaction that the transaction has been reported, other 

than as necessary to fulfill the official duties of such 

officer or employee.

(B) Disclosures in certain employment references.—

(i) Rule of construction.—Notwithstanding the 

application of subparagraph (A) in any other context, 

subparagraph (A) shall not be construed as prohibiting 

any financial institution, or any director, officer, 

employee, or agent of such in-stitution, from including 

information that was included in a report to which 

subparagraph (A) applies—

(I) in a written employment reference that is 

provided in accordance with section 18(w) of the 

Federal Deposit In-surance Act in response to a 

request from another financial institution; or

(II) in a written termination notice or employment 

reference that is provided in accordance with the 

rules of a self-regulatory organization registered 

with the Securities and Exchange Commission or 

the Commodity Futures Trading Commission,

except that such written reference or notice may 

not disclose that such information was also included 

in any such report, or that such report was made.

(ii) Information not required.—Clause (i) shall not 

be construed, by itself, to create any affirmative duty to 

include any information described in clause (i) in any 

employment reference or termination notice referred 

to in clause (i).

(3) Liability for disclosures.—

(A) In general.—Any financial institution that makes 

a voluntary disclosure of any possible violation of law or 

regulation to a government agency or makes a disclosure 

pursuant to this subsection or any other authority, and any 

director, officer, employee, or agent of such institution who 

makes, or requires another to make any such disclosure, 

shall not be liable to any person under any law or regulation 

of the United States, any constitution, law, or regulation of 

any State or political subdivision of any State, or under any 

contract or other legally enforceable agreement (including 

any arbitration agree-ment), for such disclosure or for any 

failure to provide notice of such disclosure to the person 

who is the subject of such disclosure or any other person 

identified in the disclosure.

(B) Rule of construction.—Subparagraph (A) shall not 

be construed as creating—

(i) any inference that the term “person”, as used in 

such subparagraph, may be construed more broadly 

than its ordinary usage so as to include any government 

or agency of government; or
38 • Money Laundering Statutes

31 U.S.C. § 5318 

(ii) any immunity against, or otherwise affecting, any 

civil or criminal action brought by any government or 

agency of government to enforce any constitution, law, 

or regulation of such government or agency.

(4) Single designee for reporting suspicious transactions.—

(A) In general.—In requiring reports under paragraph 

(1) of suspicious transactions, the Secretary of the Treasury 

shall designate, to the extent practicable and appropriate, 

a single officer or agency of the United States to whom 

such reports shall be made.

(B) Duty of designee.—The officer or agency of 

the United States designated by the Secretary of the 

Treasury pursuant to subparagraph (A) shall refer any 

report of a suspicious transaction to any appropriate 

law enforcement, supervisory agency, or United States 

intelligence agency for use in the conduct of intelligence 

or counterintelligence activities, including analysis, to 

protect against international terrorism.

(C) Coordination with other reporting requirements.—

Subparagraph (A) shall not be construed as precluding 

any su-pervisory agency for any financial institution from 

requiring the financial institution to submit any information 

or report to the agency or another agency pursuant to any 

other applicable provision of law.

(h) Anti-money laundering programs.—

(1) In general.—In order to guard against money 

laundering through financial institutions, each financial 

institution shall establish anti-money laundering programs, 

including, at a minimum—

(A) the development of internal policies, procedures, 

and controls;

(B) the designation of a compliance officer;

(C) an ongoing employee training program; and

(D) an independent audit function to test programs.

(2) Regulations.—The Secretary of the Treasury, after 

consultation with the appropriate Federal functional regulator 

(as defined in section 509 of the Gramm-Leach-Bliley Act), 

may prescribe minimum standards for programs established 

under paragraph (1), and may exempt from the application 

of those standards any financial institution that is not subject 

to the provisions of the rules contained in part 103 of title 

31, of the Code of Federal Regulations, or any successor rule 

thereto, for so long as such financial institution is not subject 

to the provisions of such rules.

(3) Concentration accounts.—The Secretary may prescribe 

regulations under this subsection that govern maintenance of 

concentration accounts by financial institutions, in order to 

ensure that such accounts are not used to prevent association 

of the identity of an individual customer with the movement of 

funds of which the customer is the direct or beneficial owner, 

which regulations shall, at a minimum—

(A) prohibit financial institutions from allowing clients 

to direct transactions that move their funds into, out of, 

or through the concentration accounts of the financial 

institution;

(B) prohibit financial institutions and their employees 

from informing customers of the existence of, or the means of 

identifying, the concentration accounts of the institution; and

(C) require each financial institution to establish written 

procedures governing the documentation of all transactions 

in-volving a concentration account, which procedures 

shall ensure that, any time a transaction involving a 

concentration account commingles funds belonging to 1 

or more customers, the identity of, and specific amount 

belonging to, each customer is documented.

(i) Due diligence for United States private banking and 

correspondent bank accounts involving foreign persons.—

(1) In general.—Each financial institution that establishes, 

maintains, administers, or manages a private banking account 

or a correspondent account in the United States for a nonUnited States person, including a foreign individual visiting 

the United States, or a representative of a non-United States 

person shall establish appropriate, specific, and, where 

necessary, enhanced, due diligence policies, procedures, and 

controls that are reasonably designed to detect and report 

instances of money laundering through those accounts.

(2) Additional standards for certain correspondent accounts.—

(A) In general.—Subparagraph (B) shall apply if a 

correspondent account is requested or maintained by, or 

on behalf of, a foreign bank operating—

(i) under an offshore banking license; or

(ii) under a banking license issued by a foreign 

country that has been designated—

(I) as noncooperative with international antimoney laundering principles or procedures by 

an intergovernmental group or organization of 

which the United States is a member, with which 

designation the United States representative to the 

group or organization concurs; or

(II) by the Secretary of the Treasury as warranting 

special measures due to money laundering concerns.

(B) Policies, procedures, and controls.—The enhanced due 

diligence policies, procedures, and controls required under 

paragraph (1) shall, at a minimum, ensure that the financial 

institution in the United States takes reasonable steps—
Money Laundering Statutes • 39

31 U.S.C. § 5318

(i) to ascertain for any such foreign bank, the shares 

of which are not publicly traded, the identity of each 

of the owners of the foreign bank, and the nature and 

extent of the ownership interest of each such owner;

(ii) to conduct enhanced scrutiny of such account 

to guard against money laundering and report any 

suspicious trans-actions under subsection (g); and

(iii) to ascertain whether such foreign bank provides 

correspondent accounts to other foreign banks and, if 

so, the identity of those foreign banks and related due 

diligence information, as appropriate under paragraph (1).

(3) Minimum standards for private banking accounts.—If 

a private banking account is requested or maintained by, or on 

behalf of, a non-United States person, then the due diligence 

policies, procedures, and controls required under paragraph 

(1) shall, at a minimum, ensure that the financial institution 

takes reasonable steps—

(A) to ascertain the identity of the nominal and 

beneficial owners of, and the source of funds deposited 

into, such account as needed to guard against money 

laundering and report any suspicious transactions under 

subsection (g); and

(B) to conduct enhanced scrutiny of any such account 

that is requested or maintained by, or on behalf of, a senior 

foreign political figure, or any immediate family member 

or close associate of a senior foreign political figure, that is 

reasonably designed to detect and report transactions that 

may involve the proceeds of foreign corruption.

(4) Definitions.—For purposes of this subsection, the 

following definitions shall apply:

(A) Offshore banking license.—The term “offshore 

banking license” means a license to conduct banking 

activities which, as a condition of the license, prohibits 

the licensed entity from conducting banking activities with 

the citizens of, or with the local currency of, the country 

which issued the license.

(B) Private banking account.—The term “private 

banking account” means an account (or any combination 

of accounts) that—

(i) requires a minimum aggregate deposits of funds 

or other assets of not less than $1,000,000;

(ii) is established on behalf of 1 or more individuals 

who have a direct or beneficial ownership interest in 

the account; and

(iii) is assigned to, or is administered or managed 

by, in whole or in part, an officer, employee, or agent 

of a financial institution acting as a liaison between the 

financial institution and the direct or beneficial owner 

of the account.

(j) Prohibition on United States correspondent accounts with 

foreign shell banks.—

(1) In general.—A financial institution described in 

subparagraphs (A) through (G) of section 5312(a)(2) (in this 

subsection referred to as a “covered financial institution”) 

shall not establish, maintain, administer, or manage a 

correspondent account in the United States for, or on behalf 

of, a foreign bank that does not have a physical presence 

in any country.

(2) Prevention of indirect service to foreign shell 

banks.—A covered financial institution shall take reasonable 

steps to ensure that any correspondent account established, 

maintained, administered, or managed by that covered 

financial institution in the United States for a foreign bank 

is not being used by that foreign bank to indirectly provide 

banking services to another foreign bank that does not have 

a physical presence in any country. The Secretary of the 

Treasury shall, by regulation, delineate the reasonable steps 

necessary to comply with this paragraph.

(3) Exception.—Paragraphs (1) and (2) do not prohibit a 

covered financial institution from providing a correspondent 

account to a foreign bank, if the foreign bank—

(A) is an affiliate of a depository institution, credit 

union, or foreign bank that maintains a physical presence 

in the United States or a foreign country, as applicable; and

(B) is subject to supervision by a banking authority in 

the country regulating the affiliated depository institution, 

credit union, or foreign bank described in subparagraph 

(A), as applicable.

(4) Definitions.—For purposes of this subsection—

(A) the term “affiliate” means a foreign bank that is 

controlled by or is under common control with a depository 

institution, credit union, or foreign bank; and

(B) the term “physical presence” means a place of 

business that—

(i) is maintained by a foreign bank;

(ii) is located at a fixed address (other than solely 

an electronic address) in a country in which the foreign 

bank is au-thorized to conduct banking activities, at 

which location the foreign bank—

(I) employs 1 or more individuals on a full-time 

basis; and

(II) maintains operating records related to its 

banking activities; and
40 • Money Laundering Statutes

31 U.S.C. § 5318 

(iii) is subject to inspection by the banking authority 

which licensed the foreign bank to conduct banking 

activities.

(k) Bank records related to anti-money laundering programs.—

(1) Definitions.—For purposes of this subsection, the 

following definitions shall apply:

(A) Appropriate Federal banking agency.—The term 

“appropriate Federal banking agency” has the same 

meaning as in section 3 of the Federal Deposit Insurance 

Act (12 U.S.C. 1813).

(B) Incorporated term.—The term “correspondent 

account” has the same meaning as in section 5318A(e)(1)(B).

(2) 120-hour rule.—Not later than 120 hours after receiving 

a request by an appropriate Federal banking agency for information related to anti-money laundering compliance by a 

covered financial institution or a customer of such institution, 

a covered financial institution shall provide to the appropriate 

Federal banking agency, or make available at a location 

specified by the representative of the appropriate Federal 

banking agency, information and account documentation for 

any account opened, maintained, administered or managed in 

the United States by the covered financial institution.

(3) Foreign bank records.—

(A) Summons or subpoena of records.—

(i) In general.—The Secretary of the Treasury or the 

Attorney General may issue a summons or subpoena 

to any foreign bank that maintains a correspondent 

account in the United States and request records related 

to such correspondent account, including records 

maintained outside of the United States relating to the 

deposit of funds into the foreign bank.

(ii) Service of summons or subpoena.—A summons 

or subpoena referred to in clause (i) may be served on 

the foreign bank in the United States if the foreign bank 

has a representative in the United States, or in a foreign 

country pursuant to any mutual legal assistance treaty, 

multilateral agreement, or other request for international 

law enforcement assistance.

(B) Acceptance of service.—

(i) Maintaining records in the United States.—

Any covered financial institution which maintains 

a correspondent account in the United States for a 

foreign bank shall maintain records in the United 

States identifying the owners of such foreign bank 

and the name and address of a person who resides in 

the United States and is authorized to accept service of 

legal process for records regarding the correspondent 

account.

(ii) Law enforcement request.—Upon receipt of a 

written request from a Federal law enforcement officer 

for infor-mation required to be maintained under 

this paragraph, the covered financial institution shall 

provide the information to the requesting officer not 

later than 7 days after receipt of the request.

(C) Termination of correspondent relationship.—

(i) Termination upon receipt of notice.—A covered 

financial institution shall terminate any correspondent 

relationship with a foreign bank not later than 10 

business days after receipt of written notice from the 

Secretary or the Attorney General (in each case, after 

consultation with the other) that the foreign bank has 

failed—

(I) to comply with a summons or subpoena issued 

under subparagraph (A); or

(II) to initiate proceedings in a United States court 

contesting such summons or subpoena.

(ii) Limitation on liability.—A covered financial 

institution shall not be liable to any person in any 

court or arbitration proceeding for terminating a 

correspondent relationship in accordance with this 

subsection.

(iii) Failure to terminate relationship.—Failure to 

terminate a correspondent relationship in accordance 

with this subsection shall render the covered financial 

institution liable for a civil penalty of up to $10,000 

per day until the cor-respondent relationship is so 

terminated.

(l) Identification and verification of accountholders.—

(1) In general.—Subject to the requirements of this 

subsection, the Secretary of the Treasury shall prescribe 

regulations setting forth the minimum standards for financial 

institutions and their customers regarding the identity of the 

customer that shall apply in connection with the opening of 

an account at a financial institution.

(2) Minimum requirements.—The regulations shall, at a 

minimum, require financial institutions to implement, and 

cus-tomers (after being given adequate notice) to comply 

with, reasonable procedures for—

(A) verifying the identity of any person seeking to open 

an account to the extent reasonable and practicable;

(B) maintaining records of the information used to 

verify a person’s identity, including name, address, and 

other identifying information; and

(C) consulting lists of known or suspected terrorists or 

terrorist organizations provided to the financial institution 
Money Laundering Statutes • 41

31 U.S.C. § 5318

(2) Limitation on reporting requirements.—Information 

required to be reported by the regulations prescribed under 

par-agraph (1) shall not exceed the information required to 

be retained by the reporting financial institution pursuant 

to section 21 of the Federal Deposit Insurance Act and the 

regulations promulgated thereunder, unless—

(A) the Board of Governors of the Federal Reserve 

System and the Secretary jointly determine that a particular 

item or items of information are not currently required to 

be retained under such section or such regulations; and

(B) the Secretary determines, after consultation with the 

Board of Governors of the Federal Reserve System, that the 

re-porting of such information is reasonably necessary to 

conduct the efforts of the Secretary to identify cross-border 

money laundering and terrorist financing.

(3) Form and manner of reports.—In prescribing the 

regulations required under paragraph (1), the Secretary shall, 

subject to paragraph (2), determine the appropriate form, 

manner, content, and frequency of filing of the required 

reports.

(4) Feasibility report.—

(A) In general.—Before prescribing the regulations 

required under paragraph (1), and as soon as is practicable 

after the date of enactment of the Intelligence Reform and 

Terrorism Prevention Act of 2004, the Secretary shall 

submit a report to the Committee on Banking, Housing, 

and Urban Affairs of the Senate and the Committee on 

Financial Services of the House of Representatives that—

(i) identifies the information in cross-border 

electronic transmittals of funds that may be found in 

particular cases to be reasonably necessary to conduct 

the efforts of the Secretary to identify money laundering 

and terrorist financing, and outlines the criteria to be 

used by the Secretary to select the situations in which 

reporting under this subsection may be required;

(ii) outlines the appropriate form, manner, content, 

and frequency of filing of the reports that may be 

required under such regulations;

(iii) identifies the technology necessary for the 

Financial Crimes Enforcement Network to receive, 

keep, exploit, protect the security of, and disseminate 

information from reports of cross-border electronic 

transmittals of funds to law en-forcement and other 

entities engaged in efforts against money laundering 

and terrorist financing; and

(iv) discusses the information security protections 

required by the exercise of the Secretary’s authority 

under this sub-section.

by any government agency to determine whether a person 

seeking to open an account appears on any such list.

(3) Factors to be considered.—In prescribing regulations 

under this subsection, the Secretary shall take into 

consideration the various types of accounts maintained by 

various types of financial institutions, the various methods 

of opening accounts, and the various types of identifying 

information available.

(4) Certain financial institutions.—In the case of any 

financial institution the business of which is engaging in 

financial activities described in section 4(k) of the Bank 

Holding Company Act of 1956 (including financial activities 

subject to the jurisdiction of the Commodity Futures Trading 

Commission), the regulations prescribed by the Secretary 

under paragraph (1) shall be prescribed jointly with each 

Federal functional regulator (as defined in section 509 of 

the Gramm-Leach-Bliley Act, including the Commodity 

Futures Trading Commission) appropriate for such financial 

institution.

(5) Exemptions.—The Secretary (and, in the case of any 

financial institution described in paragraph (4), any Federal 

agency described in such paragraph) may, by regulation or 

order, exempt any financial institution or type of account from 

the re-quirements of any regulation prescribed under this 

subsection in accordance with such standards and procedures 

as the Secretary may prescribe.

(6) Effective date.—Final regulations prescribed under 

this subsection shall take effect before the end of the 1-year 

period beginning on the date of enactment of the International 

Money Laundering Abatement and Financial Anti-Terrorism 

Act of 2001.

(m) Applicability of rules.—Any rules promulgated pursuant 

to the authority contained in section 21 of the Federal Deposit 

Insurance Act (12 U.S.C. 1829b) shall apply, in addition to 

any other financial institution to which such rules apply, to 

any person that engages as a business in the transmission of 

funds, including any person who engages as a business in an 

informal money transfer system or any network of people 

who engage as a business in facilitating the transfer of money 

domestically or internationally outside of the conventional 

financial institutions system.

(n) Reporting of certain cross-border transmittals of funds.—

(1) In general.—Subject to paragraphs (3) and (4), the 

Secretary shall prescribe regulations requiring such financial 

institu-tions as the Secretary determines to be appropriate to 

report to the Financial Crimes Enforcement Network certain 

cross-border electronic transmittals of funds, if the Secretary 

determines that reporting of such transmittals is reasonably 

necessary to conduct the efforts of the Secretary against money 

laundering and terrorist financing.
42 • Money Laundering Statutes

31 U.S.C. § 5318A 

(B) Consultation.—In reporting the feasibility report 

under subparagraph (A), the Secretary may consult with 

the Bank Secrecy Act Advisory Group established by the 

Secretary, and any other group considered by the Secretary 

to be relevant.

(5) Regulations.—

(A) In general.—Subject to subparagraph (B), the 

regulations required by paragraph (1) shall be prescribed in 

final form by the Secretary, in consultation with the Board 

of Governors of the Federal Reserve System, before the end 

of the 3-year period beginning on the date of enactment of 

the National Intelligence Reform Act of 2004.

(B) Technological feasibility.—No regulations shall 

be prescribed under this subsection before the Secretary 

certifies to the Congress that the Financial Crimes 

Enforcement Network has the technological systems in 

place to effectively and efficiently receive, keep, exploit, 

protect the security of, and disseminate information from 

reports of cross-border elec-tronic transmittals of funds 

to law enforcement and other entities engaged in efforts 

against money laundering and terrorist financing.

Amended: Money Remittances Improvement Act of 2014, Pub. 

L. 113-156, § 2(a), Aug. 8, 2014, 128 Stat. 1829.

31 U.S.C. § 5318A. Special measures for 

jurisdictions, financial institutions, international 

transactions, or types of accounts of primary 

money laundering concern.

(a) International counter-money laundering requirements.—

(1) In general.—The Secretary of the Treasury may 

require domestic financial institutions and domestic financial 

agencies to take 1 or more of the special measures described 

in subsection (b) if the Secretary finds that reasonable grounds 

exist for concluding that a jurisdiction outside of the United 

States, 1 or more financial institutions operating outside of 

the United States, 1 or more classes of transactions within, 

or involving, a jurisdiction outside of the United States, or 

1 or more types of accounts is of primary money laundering 

concern, in accordance with subsection (c).

(2) Form of requirement.—The special measures 

described in—

(A) subsection (b) may be imposed in such sequence or 

combination as the Secretary shall determine;

(B) paragraphs (1) through (4) of subsection (b) may 

be imposed by regulation, order, or otherwise as permitted 

by law; and

(C) subsection (b)(5) may be imposed only by regulation.

(3) Duration of orders; rulemaking.—Any order by which 

a special measure described in paragraphs (1) through (4) of 

subsection (b) is imposed (other than an order described in 

section 5326)—

(A) shall be issued together with a notice of proposed 

rulemaking relating to the imposition of such special 

measure; and

(B) may not remain in effect for more than 120 days, 

except pursuant to a rule promulgated on or before the end 

of the 120-day period beginning on the date of issuance 

of such order.

(4) Process for selecting special measures.—In selecting 

which special measure or measures to take under this 

subsection, the Secretary of the Treasury—

(A) shall consult with the Chairman of the Board of 

Governors of the Federal Reserve System, any other 

appropriate Federal banking agency (as defined in section 

3 of the Federal Deposit Insurance Act), the Secretary 

of State, the Securities and Exchange Commission, 

the Commodity Futures Trading Commission, the 

National Credit Union Administration Board, and in 

the sole discretion of the Secretary, such other agencies 

and interested parties as the Secretary may find to be 

appropriate; and

(B) shall consider—

(i) whether similar action has been or is being taken 

by other nations or multilateral groups;

(ii) whether the imposition of any particular special 

measure would create a significant competitive 

disadvantage, including any undue cost or burden 

associated with compliance, for financial institutions 

organized or licensed in the United States;

(iii) the extent to which the action or the timing of 

the action would have a significant adverse systemic 

impact on the international payment, clearance, and 

settlement system, or on legitimate business activities 

involving the particular jurisdiction, institution, class 

of transactions, or type of account; and

(iv) the effect of the action on United States national 

security and foreign policy.

(5) No limitation on other authority.—This section shall 

not be construed as superseding or otherwise restricting any 

other authority granted to the Secretary, or to any other agency, 

by this subchapter or otherwise.

(b) Special measures.—The special measures referred to in 

subsection (a), with respect to a jurisdiction outside of the 

United States, financial institution operating outside of the 

United States, class of transaction within, or involving, a 
Money Laundering Statutes • 43

31 U.S.C. § 5318A

jurisdiction outside of the United States, or 1 or more types 

of accounts are as follows:

(1) Recordkeeping and reporting of certain financial 

transactions.—

(A) In general.—The Secretary of the Treasury may 

require any domestic financial institution or domestic 

financial agency to maintain records, file reports, or both, 

concerning the aggregate amount of transactions, or 

concerning each transaction, with respect to a jurisdiction 

outside of the United States, 1 or more financial institutions 

operating outside of the United States, 1 or more classes 

of transactions within, or involving, a jurisdiction outside 

of the United States, or 1 or more types of accounts if the 

Secretary finds any such jurisdiction, institution, class of 

transactions, or type of account to be of primary money 

laundering concern.

(B) Form of records and reports.—Such records and 

reports shall be made and retained at such time, in such 

manner, and for such period of time, as the Secretary 

shall determine, and shall include such information as the 

Secretary may determine, including—

(i) the identity and address of the participants in a 

transaction or relationship, including the identity of the 

originator of any funds transfer;

(ii) the legal capacity in which a participant in any 

transaction is acting;

(iii) the identity of the beneficial owner of the funds 

involved in any transaction, in accordance with such 

procedures as the Secretary determines to be reasonable 

and practicable to obtain and retain the information; and

(iv) a description of any transaction.

(2) Information relating to beneficial ownership.—In 

addition to any other requirement under any other provision 

of law, the Secretary may require any domestic financial 

institution or domestic financial agency to take such steps as 

the Secretary may determine to be reasonable and practicable 

to obtain and retain information concerning the beneficial 

ownership of any account opened or maintained in the United 

States by a foreign person (other than a foreign entity whose 

shares are subject to public reporting requirements or are 

listed and traded on a regulated exchange or trading market), 

or a representative of such a foreign person, that involves a 

jurisdiction outside of the United States, 1 or more financial 

institutions operating outside of the United States, 1 or more 

classes of transactions within, or involving, a jurisdiction 

outside of the United States, or 1 or more types of accounts 

if the Secretary finds any such jurisdiction, institution, 

or transaction or type of account to be of primary money 

laundering concern.

(3) Information relating to certain payable-through 

accounts.—If the Secretary finds a jurisdiction outside of 

the United States, 1 or more financial institutions operating 

outside of the United States, or 1 or more classes of 

transactions within, or involving, a jurisdiction outside of the 

United States to be of primary money laundering concern, 

the Secretary may require any domestic financial institution 

or domestic financial agency that opens or maintains a 

payable-through account in the United States for a foreign 

financial institution involving any such jurisdiction or any 

such financial institution operating outside of the United 

States, or a payable through account through which any such 

transaction may be conducted, as a condition of opening or 

maintaining such account—

(A) to identify each customer (and representative 

of such customer) of such financial institution who is 

permitted to use, or whose transactions are routed through, 

such payable-through account; and

(B) to obtain, with respect to each such customer (and 

each such representative), information that is substantially 

comparable to that which the depository institution obtains 

in the ordinary course of business with respect to its 

customers residing in the United States.

(4) Information relating to certain correspondent 

accounts.—If the Secretary finds a jurisdiction outside of the 

United States, 1 or more financial institutions operating outside 

of the United States, or 1 or more classes of transactions 

within, or involving, a jurisdiction outside of the United States 

to be of primary money laundering concern, the Secretary may 

require any domestic financial institution or domestic financial 

agency that opens or maintains a correspondent account in the 

United States for a foreign financial institution involving any 

such jurisdiction or any such financial institution operating 

outside of the United States, or a correspondent account 

through which any such transaction may be conducted, as a 

condition of opening or maintaining such account—

(A) to identify each customer (and representative of 

such customer) of any such financial institution who is 

permitted to use, or whose transactions are routed through, 

such correspondent account; and

(B) to obtain, with respect to each such customer (and 

each such representative), information that is substantially 

comparable to that which the depository institution obtains 

in the ordinary course of business with respect to its 

customers residing in the United States.

(5) Prohibitions or conditions on opening or maintaining 

certain correspondent or payable-through accounts.—If the 

Secretary finds a jurisdiction outside of the United States, 

1 or more financial institutions operating outside of the 

United States, or 1 or more classes of transactions within, 

or involving, a jurisdiction outside of the United States to 
44 • Money Laundering Statutes

31 U.S.C. § 5318A 

be of primary money laundering concern, the Secretary, 

in consultation with the Secretary of State, the Attorney 

General, and the Chairman of the Board of Governors of the 

Federal Reserve System, may prohibit, or impose conditions 

upon, the opening or maintaining in the United States of a 

correspondent account or payable- through account by any 

domestic financial institution or domestic financial agency 

for or on behalf of a foreign banking institution, if such 

correspondent account or payable-through account involves 

any such jurisdiction or institution, or if any such transaction 

may be conducted through such correspondent account or 

payable-through account.

(c) Consultations and information to be considered in finding 

jurisdictions, institutions, types of accounts, or transactions 

to be of primary money laundering concern.—

(1) In general.—In making a finding that reasonable 

grounds exist for concluding that a jurisdiction outside of 

the United States, 1 or more financial institutions operating 

outside of the United States, 1 or more classes of transactions 

within, or involving, a jurisdiction outside of the United 

States, or 1 or more types of accounts is of primary money 

laundering concern so as to authorize the Secretary of the 

Treasury to take 1 or more of the special measures described 

in subsection (b), the Secretary shall consult with the 

Secretary of State and the Attorney General.

(2) Additional considerations.—In making a finding 

described in paragraph (1), the Secretary shall consider in 

addition such information as the Secretary determines to be 

relevant, including the following potentially relevant factors:

(A) Jurisdictional factors.—In the case of a particular 

jurisdiction—

(i) evidence that organized criminal groups, 

international terrorists, or entities involved in the 

proliferation of weapons of mass destruction or 

missiles, have transacted business in that jurisdiction;

(ii) the extent to which that jurisdiction or financial 

institutions operating in that jurisdiction offer 

bank secrecy or special regulatory advantages to 

nonresidents or nondomiciliaries of that jurisdiction;

(iii) the substance and quality of administration of 

the bank supervisory and counter-money laundering 

laws of that jurisdiction;

(iv) the relationship between the volume of 

financial transactions occurring in that jurisdiction and 

the size of the economy of the jurisdiction;

(v) the extent to which that jurisdiction is 

characterized as an offshore banking or secrecy haven 

by credible international organizations or multilateral 

expert groups;

(vi) whether the United States has a mutual legal 

assistance treaty with that jurisdiction, and the 

experience of United States law enforcement officials 

and regulatory officials in obtaining information about 

transactions originating in or routed through or to such 

jurisdiction; and

(vii) the extent to which that jurisdiction is 

characterized by high levels of official or institutional 

corruption.

(B) Institutional factors.—In the case of a decision 

to apply 1 or more of the special measures described 

in subsection (b) only to a financial institution or 

institutions, or to a transaction or class of transactions, 

or to a type of account, or to all 3, within or involving a 

particular jurisdiction—

(i) the extent to which such financial institutions, 

transactions, or types of accounts are used to facilitate 

or promote money laundering in or through the 

jurisdiction, including any money laundering activity 

by organized criminal groups, international terrorists, 

or entities involved in the proliferation of weapons of 

mass destruction or missiles;

(ii) the extent to which such institutions, 

transactions, or types of accounts are used for 

legitimate business purposes in the jurisdiction; and

(iii) the extent to which such action is sufficient 

to ensure, with respect to transactions involving 

the jurisdiction and institutions operating in the 

jurisdiction, that the purposes of this subchapter 

continue to be fulfilled, and to guard against 

international money laundering and other financial 

crimes.

(d) Notification of special measures invoked by the 

Secretary.—Not later than 10 days after the date of any action 

taken by the Secretary of the Treasury under subsection (a)

(1), the Secretary shall notify, in writing, the Committee on 

Financial Services of the House of Representatives and the 

Committee on Banking, Housing, and Urban Affairs of the 

Senate of any such action.

(e) Definitions.—Notwithstanding any other provision of 

this subchapter, for purposes of this section and subsections 

(i) and (j) of section 5318, the following definitions shall 

apply:

(1) Bank definitions.—The following definitions shall 

apply with respect to a bank:

(A) Account.—The term “account“—

(i) means a formal banking or business relationship 

established to provide regular services, dealings, and 

other financial transactions; and
Money Laundering Statutes • 45

31 U.S.C. § 5321

(ii) includes a demand deposit, savings deposit, or 

other transaction or asset account and a credit account 

or other extension of credit.

(B) Correspondent account.—The term “correspondent 

account” means an account established to receive deposits 

from, make payments on behalf of a foreign financial 

institution, or handle other financial transactions related 

to such institution.

(C) Payable-through account.—The term “payablethrough account” means an account, including a 

transaction account (as defined in section 19(b)(1)(C) 

of the Federal Reserve Act), opened at a depository 

institution by a foreign financial institution by means 

of which the foreign financial institution permits 

its customers to engage, either directly or through a 

subaccount, in banking activities usual in connection with 

the business of banking in the United States.

(2) Definitions applicable to institutions other than 

banks.—With respect to any financial institution other 

than a bank, the Secretary shall, after consultation with 

the appropriate Federal functional regulators (as defined 

in section 509 of the Gramm-Leach-Bliley Act), define by 

regulation the term “account“, and shall include within the 

meaning of that term, to the extent, if any, that the Secretary 

deems appropriate, arrangements similar to payable- through 

and correspondent accounts.

(3) Regulatory definition of beneficial ownership.—The 

Secretary shall promulgate regulations defining beneficial 

ownership of an account for purposes of this section and 

subsections (i) and (j) of section 5318. Such regulations 

shall address issues related to an individual’s authority to 

fund, direct, or manage the account (including, without 

limitation, the power to direct payments into or out of 

the account), and an individual’s material interest in the 

income or corpus of the account, and shall ensure that the 

identification of individuals under this section or subsection 

(i) or (j) of section 5318 does not extend to any individual 

whose beneficial interest in the income or corpus of the 

account is immaterial.

(4) Other terms.—The Secretary may, by regulation, 

further define the terms in paragraphs (1), (2), and (3), and 

define other terms for the purposes of this section, as the 

Secretary deems appropriate.

(f) Classified information.—In any judicial review of a 

finding of the existence of a primary money laundering 

concern, or of the requirement for 1 or more special measures 

with respect to a primary money laundering concern, made 

under this section, if the designation or imposition, or 

both, were based on classified information (as defined in 

section 1(a) of the Classified Information Procedures Act), 

such information may be submitted by the Secretary to the 

reviewing court ex parte and in camera. This subsection 

does not confer or imply any right to judicial review of any 

finding made or any requirement imposed under this section.

Amended: Iran Freedom Support Act, Pub. L. 109-293, Title V, 

§ 501, Sept. 30, 2006, 120 Stat. 1350.

31 U.S.C. § 5321. Civil penalties.

(a)(1) A domestic financial institution or nonfinancial trade 

or business, and a partner, director, officer, or employee of a 

domestic financial institution or nonfinancial trade or business, 

willfully violating this subchapter or a regulation prescribed 

or order issued under this subchapter (except sections 5314 

and 5315 of this title or a regulation prescribed under sections 

5314 and 5315), or willfully violating a regulation prescribed 

under section 21 of the Federal Deposit Insurance Act or 

section 123 of Public Law 91-508, is liable to the United 

States Government for a civil penalty of not more than the 

greater of the amount (not to exceed $100,000) involved in 

the transaction (if any) or $25,000. For a violation of section 

5318(a)(2) of this title or a regulation prescribed under 

section 5318(a)(2), a separate violation occurs for each day 

the violation continues and at each office, branch, or place of 

business at which a violation occurs or continues.

(2) The Secretary of the Treasury may impose an additional 

civil penalty on a person not filing a report, or filing a report 

containing a material omission or misstatement, under section 

5316 of this title or a regulation prescribed under section 5316. 

A civil penalty under this paragraph may not be more than 

the amount of the monetary instrument for which the report 

was required. A civil penalty under this paragraph is reduced 

by an amount forfeited under section 5317(b) of this title.

(3) A person not filing a report under a regulation 

prescribed under section 5315 of this title or not complying 

with an injunction under section 5320 of this title enjoining 

a violation of, or enforcing compliance with, section 5315 or 

a regulation prescribed under section 5315, is liable to the 

Government for a civil penalty of not more than $10,000.

(4) Structured transaction violation.—

(A) Penalty authorized.—The Secretary of the Treasury 

may impose a civil money penalty on any person who 

violates any provision of section 5324.

(B) Maximum amount limitation.—The amount of any 

civil money penalty imposed under subparagraph (A) shall 

not exceed the amount of the coins and currency (or such 

other monetary instruments as the Secretary may prescribe) 

involved in the transaction with respect to which such 

penalty is imposed.
46 • Money Laundering Statutes

31 U.S.C. § 5321 

(C) Coordination with forfeiture provision.—The 

amount of any civil money penalty imposed by the 

Secretary under subparagraph (A) shall be reduced by the 

amount of any forfeiture to the United States in connection 

with the transaction with respect to which such penalty is 

imposed.

(5) Foreign financial agency transaction violation.—

(A) Penalty authorized.—The Secretary of the Treasury 

may impose a civil money penalty on any person who 

violates, or causes any violation of, any provision of 

section 5314.

(B) Amount of penalty.—

(i) In general.—Except as provided in subparagraph 

(C), the amount of any civil penalty imposed under 

subparagraph (A) shall not exceed $10,000.

(ii) Reasonable cause exception.—No penalty shall 

be imposed under subparagraph (A) with respect to any 

violation if—

(I) such violation was due to reasonable cause, 

and

(II) the amount of the transaction or the balance 

in the account at the time of the transaction was 

properly reported.

(C) Willful violations.—In the case of any person 

willfully violating, or willfully causing any violation of, 

any provision of section 5314—

(i) the maximum penalty under subparagraph (B)(i) 

shall be increased to the greater of—

(I) $100,000, or

(II) 50 percent of the amount determined under 

subparagraph (D), and

(ii) subparagraph (B)(ii) shall not apply.

(D) Amount.—The amount determined under this 

subparagraph is—

(i) in the case of a violation involving a transaction, 

the amount of the transaction, or

(ii) in the case of a violation involving a failure to 

report the existence of an account or any identifying 

information required to be provided with respect to an 

account, the balance in the account at the time of the 

violation.

(6) Negligence.—

(A) In general.—The Secretary of the Treasury may 

impose a civil money penalty of not more than $500 on 

any financial institution or nonfinancial trade or business 

which negligently violates any provision of this subchapter 

or any regulation prescribed under this subchapter.

(B) Pattern of negligent activity.—If any financial 

institution or nonfinancial trade or business engages 

in a pattern of negligent violations of any provision of 

this subchapter or any regulation prescribed under this 

subchapter, the Secretary of the Treasury may, in addition 

to any penalty imposed under subparagraph (A) with 

respect to any such violation, impose a civil money penalty 

of not more than $50,000 on the financial institution or 

nonfinancial trade or business.

(7) Penalties for international counter money laundering 

violations.—The Secretary may impose a civil money penalty 

in an amount equal to not less than 2 times the amount of the 

transaction, but not more than $1,000,000, on any financial 

institution or agency that violates any provision of subsection 

(i) or (j) of section 5318 or any special measures imposed 

under section 5318A.

(b) Time limitations for assessments and commencement of 

civil actions.—

(1) Assessments.—The Secretary of the Treasury may 

assess a civil penalty under subsection (a) at any time before 

the end of the 6-year period beginning on the date of the 

transaction with respect to which the penalty is assessed.

(2) Civil actions.—The Secretary may commence a civil 

action to recover a civil penalty assessed under subsection 

(a) at any time before the end of the 2-year period beginning 

on the later of—

(A) the date the penalty was assessed; or

(B) the date any judgment becomes final in any criminal 

action under section 5322 in connection with the same 

transaction with respect to which the penalty is assessed.

(c) The Secretary may remit any part of a forfeiture under 

subsection (c) or (d) of section 5317 of this title or civil penalty 

under subsection (a)(2) of this section.

(d) Criminal penalty not exclusive of civil penalty.—A civil 

money penalty may be imposed under subsection (a) with 

respect to any violation of this subchapter notwithstanding 

the fact that a criminal penalty is imposed with respect to the 

same violation.

(e) Delegation of assessment authority to banking agencies.—

(1) In general.—The Secretary of the Treasury shall 

delegate, in accordance with section 5318(a)(1) and subject 

to such terms and conditions as the Secretary may impose 

in accordance with paragraph (3), any authority of the 

Secretary to assess a civil money penalty under this section 

on depository institutions (as defined in section 3 of the 
Money Laundering Statutes • 47

31 U.S.C. § 5324

Federal Deposit Insurance Act) to the appropriate Federal 

banking agencies (as defined in such section 3).

(2) Authority of agencies.—Subject to any term or 

condition imposed by the Secretary of the Treasury under 

paragraph (3), the provisions of this section shall apply to an 

appropriate Federal banking agency to which is delegated 

any authority of the Secretary under this section in the same 

manner such provisions apply to the Secretary.

(3) Terms and conditions.—

(A) In general.—The Secretary of the Treasury shall 

prescribe by regulation the terms and conditions which 

shall apply to any delegation under paragraph (1).

(B) Maximum dollar amount.—The terms and 

conditions authorized under subparagraph (A) may 

include, in the Secretary’s sole discretion, a limitation on 

the amount of any civil penalty which may be assessed 

by an appropriate Federal banking agency pursuant to a 

delegation under paragraph (1).

Amended: American Jobs Creation Act of 2004, Pub. L. 108-

357, Title VIII, § 821(a), Oct. 22, 2004, 118 Stat. 1418, 1586.

31 U.S.C. § 5322. Criminal penalties.

(a) A person willfully violating this subchapter or a regulation 

prescribed or order issued under this subchapter (except 

section 5315 or 5324 of this title or a regulation prescribed 

under section 5315 or 5324), or willfully violating a regulation 

prescribed under section 21 of the Federal Deposit Insurance 

Act or section 123 of Public Law 91-508, shall be fined not 

more than $250,000, or imprisoned for not more than five 

years, or both.

(b) A person willfully violating this subchapter or a regulation 

prescribed or order issued under this subchapter (except 

section 5315 or 5324 of this title or a regulation prescribed 

under section 5315 or 5324), or willfully violating a regulation 

prescribed under section 21 of the Federal Deposit Insurance 

Act or section 123 of Public Law 91-508, while violating 

another law of the United States or as part of a pattern of any 

illegal activity involving more than $100,000 in a 12-month 

period, shall be fined not more than $500,000, imprisoned for 

not more than 10 years, or both.

(c) For a violation of section 5318(a)(2) of this title or a 

regulation prescribed under section 5318(a)(2), a separate 

violation occurs for each day the violation continues and at 

each office, branch, or place of business at which a violation 

occurs or continues.

(d) A financial institution or agency that violates any provision 

of subsection (i) or (j) of section 5318, or any special measures 

imposed under section 5318A, or any regulation prescribed 

under subsection (i) or (j) of section 5318 or section 5318A, 

shall be fined in an amount equal to not less than 2 times the 

amount of the transaction, but not more than $1,000,000.

Amended: Uniting and Strengthening America by Providing 

Appropriate Tools Required to Intercept and Obstruct Terrorism 

(USA PATRIOT) Act of 2001, Pub. L. 107-56, Title III, 

§§ 353(b), 363(b), Oct. 26, 2001, 115 Stat. 272, 323, 332.

31 U.S.C. § 5324. Structuring transactions 

involving financial institutions to evade 

reporting requirement prohibited.1

(a) Domestic coin and currency transactions involving 

financial institutions.—No person shall, for the purpose of 

evading the reporting requirements of section 5313(a) or 

5325 or any regulation prescribed under any such section, 

the reporting or recordkeeping requirements imposed by 

any order issued under section 5326, or the recordkeeping 

requirements imposed by any regulation prescribed under 

section 21 of the Federal Deposit Insurance Act or section 

123 of Public Law 91-508—

(1) cause or attempt to cause a domestic financial institution 

to fail to file a report required under section 5313(a) or 5325 

or any regulation prescribed under any such section, to file 

a report or to maintain a record required by an order issued 

under section 5326, or to maintain a record required pursuant 

to any regulation prescribed under section 21 of the Federal 

Deposit Insurance Act or section 123 of Public Law 91-508;

(2) cause or attempt to cause a domestic financial institution 

to file a report required under section 5313(a) or 5325 or any 

regulation prescribed under any such section, to file a report 

or to maintain a record required by any order issued under 

section 5326, or to maintain a record required pursuant to 

any regulation prescribed under section 5326, or to maintain 

a record required pursuant to any regulation prescribed under 

section 21 of the Federal Deposit Insurance Act or section 123 

of Public Law 91-508, that contains a material omission or 

misstatement of fact; or

1

 Section 5324 makes it an offense to engage in certain 

conduct with respect to four different reporting or 

recordkeeping requirements: section 5313 (currency 

transaction reports); section 5325 (recordkeeping 

requirement pertaining to purchase of monetary instruments 

such as bank checks, cashier’s checks, traveler’s checks, 

and money orders); section 5326 (special recordkeeping 

and reporting requirements pursuant to a geographic 

targeting order); and section 21 of the Federal Deposit 

Insurance Act (codified at 12 U.S.C. § 1829b), pertaining 

to recordkeeping requirements involving wire transfers. 

The regulations covering recordkeeping requirements for 

wire transfers can be found at 31 C.F.R. §§ 103.33(e)-(g).
48 • Money Laundering Statutes

31 U.S.C. § 5325 

(3) structure or assist in structuring, or attempt to structure 

or assist in structuring, any transaction with one or more 

domestic financial institutions.

(b) Domestic coin and currency transactions involving 

nonfinancial trades or businesses.—No person shall, for the 

purpose of evading the report requirements of section 5331 

or any regulation prescribed under such section—

(1) cause or attempt to cause a nonfinancial trade or 

business to fail to file a report required under section 5331 or 

any regulation prescribed under such section;

(2) cause or attempt to cause a nonfinancial trade or 

business to file a report required under section 5331 or any 

regulation prescribed under such section that contains a 

material omission or misstatement of fact; or

(3) structure or assist in structuring, or attempt to structure 

or assist in structuring, any transaction with 1 or more 

nonfinancial trades or businesses.

(c) International monetary instrument transactions.—No 

person shall, for the purpose of evading the reporting 

requirements of section 5316—

(1) fail to file a report required by section 5316, or cause 

or attempt to cause a person to fail to file such a report;

(2) file or cause or attempt to cause a person to file a report 

required under section 5316 that contains a material omission 

or misstatement of fact; or

(3) structure or assist in structuring, or attempt to structure 

or assist in structuring, any importation or exportation of 

monetary instruments.

(d) Criminal penalty.—

(1) In general.—Whoever violates this section shall 

be fined in accordance with title 18, United States Code, 

imprisoned for not more than 5 years, or both.

(2) Enhanced penalty for aggravated cases.—Whoever 

violates this section while violating another law of the United 

States or as part of a pattern of any illegal activity involving 

more than $100,000 in a 12-month period shall be fined twice 

the amount provided in subsection (b)(3) or (c)(3) (as the 

case may be) of section 3571 of title 18, United States Code, 

imprisoned for not more than 10 years, or both.

Amended: Intelligence Reform and Terrorism Prevention Act 

of 2004, Pub. L. 108-458, Title VI, § 6203(g), Dec. 17, 2004, 

118 Stat. 3638, 3747.

31 U.S.C. § 5325. Identification required to 

purchase certain monetary instruments.

(a) In general.—No financial institution may issue or sell a 

bank check, cashier’s check, traveler’s check, or money order 

to any individual in connection with a transaction or group 

of such contemporaneous transactions which involves United 

States coins or currency (or such other monetary instruments 

as the Secretary may prescribe) in amounts or denominations 

of $3,000 or more unless—

(1) the individual has a transaction account with such 

financial institution and the financial institution—

(A) verifies that fact through a signature card or other 

information maintained by such institution in connection 

with the account of such individual; and

(B) records the method of verification in accordance 

with regulations which the Secretary of the Treasury shall 

prescribe; or

(2) the individual furnishes the financial institution with 

such forms of identification as the Secretary of the Treasury 

may require in regulations which the Secretary shall 

prescribe and the financial institution verifies and records 

such information in accordance with regulations which such 

Secretary shall prescribe.

(b) Report to secretary upon request.—Any information 

required to be recorded by any financial institution under 

paragraph (1) or (2) of subsection (a) shall be reported by 

such institution to the Secretary of the Treasury at the request 

of such Secretary.

(c) Transaction account defined.—For purposes of this section, 

the term “transaction account” has the meaning given to such 

term in section 19(b)(1)(C) of the Federal Reserve Act.

Enacted: Anti-Drug Abuse Act of 1988, Pub. L. 100-690, 

Title VI, § 6185(b), Nov. 18, 1988, 102 Stat. 4181, 4355.

31 U.S.C. § 5326. Records of certain domestic 

coin and currency transactions.

(a) In general.—If the Secretary of the Treasury finds, upon the 

Secretary’s own initiative or at the request of an appropriate 

Federal or State law enforcement official, that reasonable 

grounds exist for concluding that additional recordkeeping and 

reporting requirements are necessary to carry out the purposes 

of this subtitle and prevent evasions thereof, the Secretary 

may issue an order requiring any domestic financial institution 

or nonfinancial trade or business or group of domestic 

financial institutions or nonfinancial trades or businesses in 

a geographic area—
Money Laundering Statutes • 49

31 U.S.C. § 5330

(1) to obtain such information as the Secretary may 

describe in such order concerning—

(A) any transaction in which such financial institution or 

nonfinancial trade or business is involved for the payment, 

receipt, or transfer of United States coins or currency (or 

such other monetary instruments as the Secretary may 

describe in such order) the total amounts or denominations 

of which are equal to or greater than an amount which the 

Secretary may prescribe; and

(B) any other person participating in such transaction;

(2) to maintain a record of such information for such period 

of time as the Secretary may require; and

(3) to file a report with respect to any transaction described 

in paragraph (1)(A) in the manner and to the extent specified 

in the order.

(b) Authority to order depository institutions to obtain reports 

from customers.—

(1) In general.—The Secretary of the Treasury may, by 

regulation or order, require any depository institution (as 

defined in section 3(c) of the Federal Deposit Insurance Act)—

(A) to request any financial institution or nonfinancial 

trade or business (other than a depository institution) 

which engages in any reportable transaction with the 

depository institution to provide the depository institution 

with a copy of any report filed by the financial institution 

or nonfinancial trade or business under this subtitle with 

respect to any prior transaction (between such financial 

institution or nonfinancial trade or business and any 

other person) which involved any portion of the coins or 

currency (or monetary instruments) which are involved in 

the reportable transaction with the depository institution; 

and

(B) if no copy of any report described in subparagraph 

(A) is received by the depository institution in connection 

with any reportable transaction to which such subparagraph 

applies, to submit (in addition to any report required under 

this subtitle with respect to the reportable transaction) a 

written notice to the Secretary that the financial institution 

or nonfinancial trade or business failed to provide any copy 

of such report.

(2) Reportable transaction defined.—For purposes of 

this subsection, the term “reportable transaction” means 

any transaction involving coins or currency (or such other 

monetary instruments as the Secretary may describe in the 

regulation or order) the total amounts or denominations 

of which are equal to or greater than an amount which the 

Secretary may prescribe.

(c) Nondisclosure of orders.—No financial institution or 

nonfinancial trade or business or officer, director, employee 

or agent of a financial institution or nonfinancial trade or 

business subject to an order under this section may disclose 

the existence of, or terms of, the order to any person except 

as prescribed by the Secretary.

(d) Maximum effective period for order.—No order issued 

under subsection (a) shall be effective for more than 180 days 

unless renewed pursuant to the requirements of subsection (a).

Amended: Uniting and Strengthening America by Providing 

Appropriate Tools Required to Intercept and Obstruct Terrorism 

(USA PATRIOT) Act of 2001, Pub. L. 107-56, Title III, 

§§ 353(d), 365(c)(2)(B), Oct. 26, 2001, 115 Stat. 272, 323, 335.

31 U.S.C. § 5330. Registration of money 

transmitting businesses.

(a) Registration with Secretary of the Treasury required.—

(1) In general.—Any person who owns or controls a money 

transmitting business shall register the business (whether or 

not the business is licensed as a money transmitting business 

in any State) with the Secretary of the Treasury not later than 

the end of the 180-day period beginning on the later of—

(A) the date of enactment of the Money Laundering 

Suppression Act of 1994; or

(B) the date on which the business is established.

(2) Form and manner of registration.—Subject to the 

requirements of subsection (b), the Secretary of the Treasury 

shall prescribe, by regulation, the form and manner for 

registering a money transmitting business pursuant to 

paragraph (1).

(3) Businesses remain subject to State law.—This section 

shall not be construed as superseding any requirement of 

State law relating to money transmitting businesses operating 

in such State.

(4) False and incomplete information.—The filing of 

false or materially incomplete information in connection 

with the registration of a money transmitting business shall 

be considered as a failure to comply with the requirements 

of this subchapter.

(b) Contents of registration.—The registration of a money 

transmitting business under subsection (a) shall include the 

following information:

(1) The name and location of the business.

(2) The name and address of each person who—

(A) owns or controls the business;

(B) is a director or officer of the business; or
50 • Money Laundering Statutes

31 U.S.C. § 5331 

(C) otherwise participates in the conduct of the affairs 

of the business.

(3) The name and address of any depository institution 

at which the business maintains a transaction account (as 

defined in section 19(b)(1)(C) of the Federal Reserve Act).

(4) An estimate of the volume of business in the coming 

year (which shall be reported annually to the Secretary).

(5) Such other information as the Secretary of the Treasury 

may require.

(c) Agents of money transmitting businesses.—

(1) Maintenance of lists of agents of money transmitting 

businesses.—Pursuant to regulations which the Secretary 

of the Treasury shall prescribe, each money transmitting 

business shall—

(A) maintain a list containing the names and addresses 

of all persons authorized to act as an agent for such business 

in connection with activities described in subsection 

(d) (1) (A) and such other information about such agents 

as the Secretary may require; and

(B) make the list and other information available on 

request to any appropriate law enforcement agency.

(2) Treatment of agent as money transmitting business.—

The Secretary of the Treasury shall prescribe regulations 

establishing, on the basis of such criteria as the Secretary 

determines to be appropriate, a threshold point for treating 

an agent of a money transmitting business as a money 

transmitting business for purposes of this section.

(d) Definitions.—For purposes of this section, the following 

definitions shall apply:

(1) Money transmitting business.—The term “money 

transmitting business” means any business other than the 

United States Postal Service which—

(A) provides check cashing, currency exchange, or 

money transmitting or remittance services, or issues 

or redeems money orders, travelers’ checks, and other 

similar instruments or any other person who engages as 

a business in the transmission of funds, including any 

person who engages as a business in an informal money 

transfer system or any network of people who engage as a 

business in facilitating the transfer of money domestically 

or internationally outside of the conventional financial 

institutions system;

(B) is required to file reports under section 5313; and

(C) is not a depository institution (as defined in 

section 5313(g)).

(2) Money transmitting service.—The term “money 

transmitting service” includes accepting currency or funds 

denominated in the currency of any country and transmitting 

the currency or funds, or the value of the currency or funds, by 

any means through a financial agency or institution, a Federal 

reserve bank or other facility of the Board of Governors of 

the Federal Reserve System, or an electronic funds transfer 

network.

(e) Civil penalty for failure to comply with registration 

requirements.—

(1) In general.—Any person who fails to comply with 

any requirement of this section or any regulation prescribed 

under this section shall be liable to the United States for a 

civil penalty of $5,000 for each such violation.

(2) Continuing violation.—Each day a violation described 

in paragraph (1) continues shall constitute a separate violation 

for purposes of such paragraph.

(3) Assessments.—Any penalty imposed under this 

subsection shall be assessed and collected by the Secretary 

of the Treasury in the manner provided in section 5321 and 

any such assessment shall be subject to the provisions of 

such section.

Amended: Uniting and Strengthening America by Providing 

Appropriate Tools Required to Intercept and Obstruct Terrorism 

(USA PATRIOT) Act of 2001, Pub. L. 107-56, Title III, 

§ 359(b), Oct. 26, 2001, 115 Stat. 328.

31 U.S.C. § 5331. Reports relating to coins 

and currency received in nonfinancial trade or 

business.

(a) Coin and currency receipts of more than $10,000.—Any 

person—

(1)(A) who is engaged in a trade or business, and

(B) who, in the course of such trade or business, 

receives more than $10,000 in coins or currency in 1 

transaction (or 2 or more related transactions), or

(2) who is required to file a report under section 6050I(g) 

of the Internal Revenue Code of 1986,

shall file a report described in subsection (b) with respect 

to such transaction (or related transactions) with the Financial 

Crimes Enforcement Network at such time and in such manner 

as the Secretary may, by regulation, prescribe.

(b) Form and manner of reports.—A report is described in 

this subsection if such report—

(1) is in such form as the Secretary may prescribe;

(2) contains—
Money Laundering Statutes • 51

31 U.S.C. § 5332

(A) the name and address, and such other identification 

information as the Secretary may require, of the person 

from whom the coins or currency was received;

(B) the amount of coins or currency received;

(C) the date and nature of the transaction; and

(D) such other information, including the identification 

of the person filing the report, as the Secretary may 

prescribe.

(c) Exceptions.—

(1) Amounts received by financial institutions.—

Subsection (a) shall not apply to amounts received in a 

transaction reported under section 5313 and regulations 

prescribed under such section.

(2) Transactions occurring outside the United States.—

Except to the extent provided in regulations prescribed by the 

Secretary, subsection (a) shall not apply to any transaction if 

the entire transaction occurs outside the United States.

(d) Currency includes foreign currency and certain monetary 

instruments.—

(1) In general.—For purposes of this section, the term 

“currency” includes—

(A) foreign currency; and

(B) to the extent provided in regulations prescribed by 

the Secretary, any monetary instrument (whether or not in 

bearer form) with a face amount of not more than $10,000.

(2) Scope of application.—Paragraph (1)(B) shall not apply 

to any check drawn on the account of the writer in a financial 

institution referred to in subparagraph (A), (B), (C), (D), (E), 

(F), (G), (J), (K), (R), or (S) of section 5312(a)(2).

Amended: Consolidated Appropriations Act, 2012, Pub. L. 112-

74, Div. C, Title I, § 120, Dec. 23, 2011, 125 Stat. 891.

31 U.S.C. § 5332. Bulk cash smuggling into or 

out of the United States.

(a) Criminal offense.—

(1) In general.—Whoever, with the intent to evade 

a currency reporting requirement under section 5316, 

knowingly conceals more than $10,000 in currency or other 

monetary instruments on the person of such individual or in 

any conveyance, article of luggage, merchandise, or other 

container, and transports or transfers or attempts to transport 

or transfer such currency or monetary instruments from a place 

within the United States to a place outside of the United States, 

or from a place outside the United States to a place within the 

United States, shall be guilty of a currency smuggling offense 

and subject to punishment pursuant to subsection (b).

(2) Concealment on person.—For purposes of this section, 

the concealment of currency on the person of any individual 

includes concealment in any article of clothing worn by the 

individual or in any luggage, backpack, or other container 

worn or carried by such individual.

(b) Penalty.—

(1) Term of imprisonment.—A person convicted of 

a currency smuggling offense under subsection (a), or a 

conspiracy to commit such offense, shall be imprisoned for 

not more than 5 years.

(2) Forfeiture.—In addition, the court, in imposing sentence 

under paragraph (1), shall order that the defendant forfeit to 

the United States, any property, real or personal, involved 

in the offense, and any property traceable to such property.

(3) Procedure.—The seizure, restraint, and forfeiture of 

property under this section shall be governed by section 413 

of the Controlled Substances Act.

(4) Personal money judgment.—If the property subject 

to forfeiture under paragraph (2) is unavailable, and the 

defendant has insufficient substitute property that may 

be forfeited pursuant to section 413(p) of the Controlled 

Substances Act, the court shall enter a personal money 

judgment against the defendant for the amount that would 

be subject to forfeiture.

(c) Civil forfeiture.—

(1) In general.—Any property involved in a violation of 

subsection (a), or a conspiracy to commit such violation, and 

any property traceable to such violation or conspiracy, may 

be seized and forfeited to the United States.

(2) Procedure.—The seizure and forfeiture shall be 

governed by the procedures governing civil forfeitures in 

money laundering cases pursuant to section 981(a)(1)(A) of 

title 18, United States Code.

(3) Treatment of certain property as involved in the 

offense.—For purposes of this subsection and subsection (b), 

any currency or other monetary instrument that is concealed 

or intended to be concealed in violation of subsection (a) or 

a conspiracy to commit such violation, any article, container, 

or conveyance used, or intended to be used, to conceal or 

transport the currency or other monetary instrument, and any 

other property used, or intended to be used, to facilitate the 

offense, shall be considered property involved in the offense.

Amended: Intelligence Reform and Terrorism Prevention 

Act of 2004, Pub. L. 108-458, Title VI, § 6203(h), Dec. 17, 

2004, 118 Stat. 3638, 3747.
52 • Money Laundering Statutes

31 U.S.C. § 5332 

(b) PURPOSES—The purposes of this section are—

(1) to make the act of smuggling bulk cash itself a 

criminal offense;

(2) to authorize forfeiture of any cash or instruments of 

the smuggling offense;

(3) to emphasize the seriousness of the act of bulk cash 

smuggling.

31 U.S.C. § 5332. Note.

[The following “findings” and “purposes” are part of 

section 371 of Pub. L. 107-56, but are not codified to any 

section of the United States Code.]

(a) FINDINGS.- Congress finds that—

(1) Effective enforcement of the currency reporting 

requirements of subchapter II of chapter 53 of title 31, 

United States Code [commonly referred to as the Bank 

Secrecy Act], and the regulations prescribed under such 

subchapter, has forced drug dealers and other criminals 

engaged in cash-based businesses to avoid using traditional 

financial institutions.

(2) In their effort to avoid using traditional financial 

institutions, drug dealers and other criminals are forced 

to move large quantities of currency in bulk form to and 

through the airports, border crossings, and other ports of 

entry where the currency can be smuggled out of the United 

States and placed in a foreign financial institution or sold 

on the black market.

(3) The transportation and smuggling of cash in bulk 

form may now be the most common form of money 

laundering, and the movement of large sums of cash is 

one of the most reliable warning signs of drug trafficking, 

terrorism, money laundering, racketeering, tax evasion 

and similar crimes.

(4) The intentional transportation into or out of the 

United States of large amounts of currency or monetary 

instruments, in a manner designed to circumvent the 

mandatory reporting provisions of subchapter II of chapter 

53 of title 31, United States Code,,[sic] is the equivalent 

of, and creates the same harm as, the smuggling of goods.

(5) The arrest and prosecution of bulk cash smugglers 

are important parts of law enforcement’s effort to stop 

the laundering of criminal proceeds, but the couriers 

who attempt to smuggle the cash out of the United States 

are typically low-level employees of large criminal 

organizations, and thus are easily replaced. Accordingly, 

only the confiscation of the smuggled bulk cash can 

effectively break the cycle of criminal activity of which 

the laundering of the bulk cash is a critical part.

(6) The current penalties for violations of the currency 

reporting requirements are insufficient to provide a 

deterrent to the laundering of criminal proceeds. In 

particular, in cases where the only criminal violation 

under current law is a reporting offense, the law does 

not adequately provide for the confiscation of smuggled 

currency. In contrast, if the smuggling of bulk cash were 

itself an offense, the cash could be confiscated as the corpus 

delicti of the smuggling offense.
103.11............................................1010.100

103.15(a)–(g) ................................1024.320(a)–(g)

103.16(a).......................................Deleted

103.16(b)–(i).................................1025.320(a)–(h)

103.18(a)–(f).................................1020.320(a)–(f)

103.19(a)–(h) ................................1023.320(a)–(h)

103.20(a)–(f).................................1022.320(a)–(f)

103.21(a)–(g) ................................1021.320(a)–(g)

103.22(a).......................................Deleted

103.22(b)(1) ..................................1010.311

103.22(b)(2)(i)–(iii) ......................1021.311(a)–(c)

103.22(c)(1) & (2).........................1010.313(a) & (b)

103.22(c)(3) ..................................1021.313

103.22(d)(1) sentences 1 and 3 .....1020.315(a)

103.22(d)(1) sentence 2 ................1010.315

103.22(d)(2)–(9)............................1020.315(b)–(i)

103.23(a)–(d) ................................1010.340(a)–(d)

103.24............................................1010.350

103.26(a)–(d) ................................1010.370(a)–(d)

103.27(a)(1) ..................................1010.306(a)(1)

103.27(a)(2) ..................................Deleted

103.27(a)(3) & (4).........................1010.306(a)(2) & (3)

103.27(b)–(e) ................................1010.306(b)–(e)

103.28............................................1010.312

103.29(a)–(c).................................1010.415(a)–(c)

103.30(a)–(c).................................1010.330(a)–(c)

103.30(d)(1)(i)–(iv).......................1021.330(a)–(d)

103.30(d)(2) ..................................1010.330(d)(2)

103.30(d)(3) ..................................1010.330(d)(1)

103.30(e).......................................1010.330(e)

103.33(a)–(d) ................................1010.410(a)–(d)

103.33(e).......................................1020.410(a)

103.33(f) & (g)..............................1010.410(e) & (f)

103.41(a)–(f).................................1022.380(a)–(f)

103.121(a)(1) ................................1020.100(a)

103.121(a)(2) ................................1020.100(b)

103.121(a)(3) ................................1020.100(c)

103.121(a)(4) ................................Deleted

103.121(a)(5) ................................1020.100(d)(2)

103.121(a)(6) ................................1010.100(yy)

103.121(a)(7) ................................1010.100(iii)

103.121(a)(8) ................................1010.100(iii)

103.121(b)–(d) ..............................1020.220(a)–(c)

103.125(a)–(e)...............................1022.210(a)–(e)

103.176(a)–(g) ..............................1010.610(a)–(g)

103.178(a)–(e)...............................1010.620(a)–(e)

31 C.F.R. CHAPTER X

CROSS REFERENCE INDEX

31 CFR Part 103 31 CFR Chapter X 31 CFR Part 103 31 CFR Chapter X

31 C.F.R. Chapter X: Cross Reference Index

Money Laundering Statutes • 53
31 C.F.R. CHAPTER X

SUBJECT MATTER INDEX

1000–1009 [Reserved]

1011–1019 1010.10 to 1010.980 General Provisions

1010 [Reserved]

1020 1020.100 to 1020.670 Rule for Banks

1021 1021.100 to 1021.670 Rules for Casinos and Card Clubs

1022 1022.100 to 1022.610–1022.670 Rules for Money Services Businesses

1023 1023.100 to 1023.670 Rules for Brokers or Dealers in Securities

1024 1024.100 to 1024.640–1024.670 Rules for Mutual Funds

1025 1025.100 to 1025.600–1025.670 Rules for Insurance Companies

1026 1026.100 to 1026.670 Rules for Futures Commission Merchants and Introducing 

Brokers in Commodities

1027 1027.100 to 1027.600–1027.670 Rules for Dealers in Precious Metals, Precious Stones, or Jewels

1028 1028.100 to 1028.600–1028.670 Rules for Operators of Credit Card Systems

1029–1099 [Reserved]

Part Table of Contents Headings

54 • Money Laundering Statutes

31 C.F.R. Chapter X: Subject Matter Index
Money Laundering Statutes • 55

31 C.F.R. § 1010.100

See the Cross Reference Index on page 53.

31 C.F.R. CHAPTER X. 

FINANCIAL CRIMES 

ENFORCEMENT NETWORK, 

DEPARTMENT OF THE 

TREASURY

31 C.F.R. § 1010.100. General definitions. 

To be used for violations occurring on or after

March 1, 2011.

When used in this chapter and in forms prescribed under 

this chapter, where not otherwise distinctly expressed or 

manifestly incompatible with the intent thereof, terms shall 

have the meanings ascribed in this subpart. Terms applicable 

to a particular type of financial institution or specific part or 

subpart of this chapter are located in that part or subpart. Terms 

may have different meanings in different parts or subparts.

(a) Accept. A receiving financial institution, other than the 

recipient’s financial institution, accepts a transmittal order 

by executing the transmittal order. A recipient’s financial 

institution accepts a transmittal order by paying the recipient, 

by notifying the recipient of the receipt of the order or by 

otherwise becoming obligated to carry out the order.

(b) At one time. For purposes of § 1010.340 of this part, a 

person who transports, mails, ships or receives; is about to or 

attempts to transport, mail or ship; or causes the transportation, 

mailing, shipment or receipt of monetary instruments, is 

deemed to do so “at one time” if:

(1) That person either alone, in conjunction with or on 

behalf of others; 

(2) Transports, mails, ships or receives in any manner; is 

about to transport, mail or ship in any manner; or causes the 

transportation, mailing, shipment or receipt in any manner of; 

(3) Monetary instruments; 

(4) Into the United States or out of the United States; 

(5) Totaling more than $10,000; 

(6)(i) On one calendar day; or 

(ii) If for the purpose of evading the reporting 

requirements of § 1010.340, on one or more days. 

(c) Attorney General. The Attorney General of the United 

States.

(d) Bank. Each agent, agency, branch or office within the 

United States of any person doing business in one or more 

of the capacities listed below:

(1) A commercial bank or trust company organized under 

the laws of any State or of the United States; 

(2) A private bank; 

(3) A savings and loan association or a building and loan 

association organized under the laws of any State or of the 

United States; 

(4) An insured institution as defined in section 401 of the 

National Housing Act; 

(5) A savings bank, industrial bank or other thrift institution; 

(6) A credit union organized under the law of any State or 

of the United States; 

(7) Any other organization(except a money services 

business) chartered under the banking laws of any state and 

subject to the supervision of the bank supervisory authorities 

of a State; 

(8) A bank organized under foreign law; 

(9) Any national banking association or corporation acting 

under the provisions of section 25(a) of the Act of Dec. 23, 

1913, as added by the Act of Dec. 24, 1919, ch. 18, 41 Stat. 

378, as amended(12 U.S.C. 611–32). 

(e) Bank Secrecy Act. The Currency and Foreign Transactions 

Reporting Act, its amendments, and the other statutes relating 

to the subject matter of that Act, have come to be referred to 

as the Bank Secrecy Act. These statutes are codified at 12 

U.S.C. 1829b, 12 U.S.C. 1951–1959, 18 U.S.C. 1956, 18 

U.S.C. 1957, 18 U.S.C. 1960, and 31 U.S.C. 5311–5314 and 

5316–5332 and notes thereto.

(f) Beneficiary. The person to be paid by the beneficiary’s 

bank.

(g) Beneficiary’s bank. The bank or foreign bank identified 

in a payment order in which an account of the beneficiary is 

to be credited pursuant to the order or which otherwise is to 

make payment to the beneficiary if the order does not provide 

for payment to an account.

(h) Broker or dealer in securities. A broker or dealer in 

securities, registered or required to be registered with the 

Securities and Exchange Commission under the Securities 

Exchange Act of 1934, except persons who register pursuant 

to section 15(b)(11) of the Securities Exchange Act of 1934.

(i) Business day. As used in this chapter with respect to banks, 

business day means that day, as normally communicated to 

its depository customers, on which a bank routinely posts a 

particular transaction to its customer’s account.
56 • Money Laundering Statutes

31 C.F.R. § 1010.100 

(j) Commodity. Any good, article, service, right, or interest 

described in section 1a(4) of the Commodity Exchange 

Act(“CEA”), 7 U.S.C. 1a(4).

(k) Common carrier. Any person engaged in the business of 

transporting individuals or goods for a fee who holds himself 

out as ready to engage in such transportation for hire and who 

undertakes to do so indiscriminately for all persons who are 

prepared to pay the fee for the particular service offered.

(l) Contract of sale. Any sale, agreement of sale, or agreement 

to sell as described in section 1a(7) of the CEA, 7 U.S.C. 1a(7).

(m) Currency. The coin and paper money of the United States 

or of any other country that is designated as legal tender and 

that circulates and is customarily used and accepted as a 

medium of exchange in the country of issuance. Currency 

includes U.S. silver certificates, U.S. notes and Federal 

Reserve notes. Currency also includes official foreign bank 

notes that are customarily used and accepted as a medium of 

exchange in a foreign country.

(n) Deposit account. Deposit accounts include transaction 

accounts described in paragraph(ccc) of this section, savings 

accounts, and other time deposits.

(o) Domestic. When used herein, refers to the doing of 

business within the United States, and limits the applicability 

of the provision where it appears to the performance by such 

institutions or agencies of functions within the United States.

(p) Established customer. A person with an account with the 

financial institution, including a loan account or deposit or 

other asset account, or a person with respect to which the 

financial institution has obtained and maintains on file the 

person’s name and address, as well as taxpayer identification 

number(e.g., social security or employer identification 

number) or, if none, alien identification number or passport 

number and country of issuance, and to which the financial 

institution provides financial services relying on that 

information.

(q) Execution date. The day on which the receiving financial 

institution may properly issue a transmittal order in execution 

of the sender’s order. The execution date may be determined 

by instruction of the sender but cannot be earlier than the day 

the order is received, and, unless otherwise determined, is the 

day the order is received. If the sender’s instruction states a 

payment date, the execution date is the payment date or an 

earlier date on which execution is reasonably necessary to 

allow payment to the recipient on the payment date.

(r) Federal functional regulator.

(1) The Board of Governors of the Federal Reserve System; 

(2) The Office of the Comptroller of the Currency; 

(3) The Board of Directors of the Federal Deposit Insurance 

Corporation; 

(4) The Office of Thrift Supervision; 

(5) The National Credit Union Administration; 

(6) The Securities and Exchange Commission; or 

(7) The Commodity Futures Trading Commission. 

(s) FinCEN. FinCEN means the Financial Crimes Enforcement 

Network, a bureau of the Department of the Treasury.

(t) Financial institution. Each agent, agency, branch, or office 

within the United States of any person doing business, whether 

or not on a regular basis or as an organized business concern, 

in one or more of the capacities listed below:

(1) A bank (except bank credit card systems); 

(2) A broker or dealer in securities; 

(3) A money services business as defined in paragraph(ff) 

of this section; 

(4) A telegraph company; 

(5)(i) Casino. A casino or gambling casino that: Is duly 

licensed or authorized to do business as such in the United 

States, whether under the laws of a State or of a Territory or 

Insular Possession of the United States, or under the Indian 

Gaming Regulatory Act or other Federal, State, or tribal law 

or arrangement affecting Indian lands(including, without 

limitation, a casino operating on the assumption or under 

the view that no such authorization is required for casino 

operation on Indian lands); and has gross annual gaming 

revenue in excess of $1 million. The term includes the 

principal headquarters and every domestic branch or place 

of business of the casino. 

(ii) For purposes of this paragraph(t)(5), “gross annual 

gaming revenue” means the gross gaming revenue received 

by a casino, during either the previous business year or the 

current business year of the casino. A casino or gambling 

casino which is a casino for purposes of this chapter 

solely because its gross annual gaming revenue exceeds 

$1,000,000 during its current business year, shall not be 

considered a casino for purposes of this chapter prior to 

the time in its current business year that its gross annual 

gaming revenue exceeds $1,000,000. 

(iii) Any reference in this chapter, other than in this 

paragraph(t)(5) and in paragraph(t)(6) of this section, 

to a casino shall also include a reference to a card club, 

unless the provision in question contains specific language 

varying its application to card clubs or excluding card clubs 

from its application; 

(6)(i) Card club. A card club, gaming club, card room, 

gaming room, or similar gaming establishment that is duly 

licensed or authorized to do business as such in the United 

States, whether under the laws of a State, of a Territory or 

Insular Possession of the United States, or of a political 
Money Laundering Statutes • 57

31 C.F.R. § 1010.100

subdivision of any of the foregoing, or under the Indian 

Gaming Regulatory Act or other Federal, State, or tribal law 

or arrangement affecting Indian lands(including, without 

limitation, an establishment operating on the assumption 

or under the view that no such authorization is required 

for operation on Indian lands for an establishment of such 

type), and that has gross annual gaming revenue in excess 

of $1,000,000. The term includes the principal headquarters 

and every domestic branch or place of business of the 

establishment. The term “casino,” as used in this chapter shall 

include a reference to “card club” to the extent provided in 

paragraph(t)(5)(iii) of this section. 

(ii) For purposes of this paragraph(t)(6), “gross annual 

gaming revenue” means the gross revenue derived from 

or generated by customer gaming activity(whether in the 

form of per-game or per-table fees, however computed, 

rentals, or otherwise) and received by an establishment, 

during either the establishment’s previous business year 

or its current business year. A card club that is a financial 

institution for purposes of this chapter solely because 

its gross annual revenue exceeds $1,000,000 during its 

current business year, shall not be considered a financial 

institution for purposes of this chapter prior to the time in 

its current business year when its gross annual revenue 

exceeds $1,000,000; 

(7) A person subject to supervision by any state or Federal 

bank supervisory authority; 

(8) A futures commission merchant; 

(9) An introducing broker in commodities; or 

(10) A mutual fund. 

(u) Foreign bank. A bank organized under foreign law, or an 

agency, branch or office located outside the United States of 

a bank. The term does not include an agent, agency, branch 

or office within the United States of a bank organized under 

foreign law.

(v) Foreign financial agency. A person acting outside the 

United States for a person(except for a country, a monetary or 

financial authority acting as a monetary or financial authority, 

or an international financial institution of which the United 

States Government is a member) as a financial institution, 

bailee, depository trustee, or agent, or acting in a similar way 

related to money, credit, securities, gold, or a transaction in 

money, credit, securities, or gold.

(w) Funds transfer. The series of transactions, beginning 

with the originator’s payment order, made for the purpose 

of making payment to the beneficiary of the order. The term 

includes any payment order issued by the originator’s bank 

or an intermediary bank intended to carry out the originator’s 

payment order. A funds transfer is completed by acceptance by 

the beneficiary’s bank of a payment order for the benefit of the 

beneficiary of the originator’s payment order. Funds transfers 

governed by the Electronic Fund Transfer Act of 1978(Title 

XX, Pub.L. 95–630, 92 Stat. 3728, 15 U.S.C. 1693, et seq.), 

as well as any other funds transfers that are made through an 

automated clearinghouse, an automated teller machine, or a 

point-of-sale system, are excluded from this definition.

(x) Futures commission merchant. Any person registered or 

required to be registered as a futures commission merchant 

with the Commodity Futures Trading Commission(“CFTC”) 

under the CEA, except persons who register pursuant to 

section 4f(a)(2) of the CEA, 7 U.S.C. 6f(a)(2).

(y) Indian Gaming Regulatory Act. The Indian Gaming 

Regulatory Act of 1988, codified at 25 U.S.C. 2701–2721 

and 18 U.S.C. 1166–68.

(z) Intermediary bank. A receiving bank other than the 

originator’s bank or the beneficiary’s bank.

(aa) Intermediary financial institution. A receiving financial 

institution, other than the transmittor’s financial institution 

or the recipient’s financial institution. The term intermediary 

financial institution includes an intermediary bank.

(bb) Introducing broker-commodities. Any person registered 

or required to be registered as an introducing broker with the 

CFTC under the CEA, except persons who register pursuant 

to section 4f(a)(2) of the CEA, 7 U.S.C. 6f(a)(2).

(cc) Investment security. An instrument which:

(1) Is issued in bearer or registered form; 

(2) Is of a type commonly dealt in upon securities 

exchanges or markets or commonly recognized in any area 

in which it is issued or dealt in as a medium for investment; 

(3) Is either one of a class or series or by its terms is 

divisible into a class or series of instruments; and 

(4) Evidences a share, participation or other interest in 

property or in an enterprise or evidences an obligation of 

the issuer. 

(dd) Monetary instruments.

(1) Monetary instruments include: 

(i) Currency; 

(ii) Traveler’s checks in any form; 

(iii) All negotiable instruments(including personal 

checks, business checks, official bank checks, cashier’s 

checks, third-party checks, promissory notes(as that term 

is defined in the Uniform Commercial Code), and money 

orders) that are either in bearer form, endorsed without 

restriction, made out to a fictitious payee(for the purposes 

of § 1010.340), or otherwise in such form that title thereto 

passes upon delivery; 

(iv) Incomplete instruments(including personal checks, 

business checks, official bank checks, cashier’s checks, 
58 • Money Laundering Statutes

31 C.F.R. § 1010.100 

third-party checks, promissory notes(as that term is defined 

in the Uniform Commercial Code), and money orders) 

signed but with the payee’s name omitted; and 

(v) Securities or stock in bearer form or otherwise in 

such form that title thereto passes upon delivery. 

(2) Monetary instruments do not include warehouse 

receipts or bills of lading. 

(ee) [Reserved]

(ff) Money services business. A person wherever located doing 

business, whether or not on a regular basis or as an organized 

or licensed business concern, wholly or in substantial part 

within the United States, in one or more of the capacities 

listed in paragraphs(ff)(1) through(ff)(7) of this section. 

This includes but is not limited to maintenance of any agent, 

agency, branch, or office within the United States.

(1) Dealer in foreign exchange. A person that accepts 

the currency, or other monetary instruments, funds, or other 

instruments denominated in the currency, of one or more 

countries in exchange for the currency, or other monetary 

instruments, funds, or other instruments denominated in the 

currency, of one or more other countries in an amount greater 

than $1,000 for any other person on any day in one or more 

transactions, whether or not for same-day delivery. 

(2) Check casher— 

(i) In general. A person that accepts checks(as 

defined in the Uniform Commercial Code), or monetary 

instruments(as defined at § 1010.100(dd)(1)(ii),(iii),(iv), 

and(v)) in return for currency or a combination of currency 

and other monetary instruments or other instruments, in 

an amount greater than $1,000 for any person on any day 

in one or more transactions. 

(ii) Facts and circumstances; Limitations. Whether a 

person is a check casher as described in this section is a 

matter of facts and circumstances. The term “check casher” 

shall not include: 

(A) A person that sells prepaid access in exchange for 

a check(as defined in the Uniform Commercial Code), 

monetary instrument or other instrument; 

(B) A person that solely accepts monetary instruments 

as payment for goods or services other than check 

cashing services; 

(C) A person that engages in check cashing for the 

verified maker of the check who is a customer otherwise 

buying goods and services; 

(D) A person that redeems its own checks; or 

(E) A person that only holds a customer’s check 

as collateral for repayment by the customer of a loan. 

(3) Issuer or seller of traveler’s checks or money orders. 

A person that 

(i) Issues traveler’s checks or money orders that are 

sold in an amount greater than $1,000 to any person on 

any day in one or more transactions; or 

(ii) Sells traveler’s checks or money orders in an amount 

greater than $1,000 to any person on any day in one or 

more transactions. 

(4) Provider of prepaid access— 

(i) In general. A provider of prepaid access is the 

participant within a prepaid program that agrees to serve 

as the principal conduit for access to information from 

its fellow program participants. The participants in each 

prepaid access program must determine a single participant 

within the prepaid program to serve as the provider of 

prepaid access. 

(ii) Considerations for provider determination. In the 

absence of registration as the provider of prepaid access for 

a prepaid program by one of the participants in a prepaid 

access program, the provider of prepaid access is the person 

with principal oversight and control over the prepaid 

program. Which person exercises “principal oversight and 

control” is a matter of facts and circumstances. Activities 

that indicate “principal oversight and control” include: 

(A) Organizing the prepaid program; 

(B) Setting the terms and conditions of the prepaid 

program and determining that the terms have not been 

exceeded; 

(C) Determining the other businesses that will 

participate in the prepaid program, which may include 

the issuing bank, the payment processor, or the 

distributor; 

(D) Controlling or directing the appropriate party to 

initiate, freeze, or terminate prepaid access; and 

(E) Engaging in activity that demonstrates oversight 

and control of the prepaid program. 

(iii) Prepaid program. A prepaid program is an 

arrangement under which one or more persons acting 

together provide(s) prepaid access. However, an 

arrangement is not a prepaid program if: 

(A) It provides closed loop prepaid access to funds 

not to exceed $2,000 maximum value that can be 

associated with a prepaid access device or vehicle on 

any day; 

(B) It provides prepaid access solely to funds 

provided by a Federal, State, local, Territory and Insular 

Possession, or Tribal government agency; 
Money Laundering Statutes • 59

31 C.F.R. § 1010.100

(C) It provides prepaid access solely to funds from 

pre-tax flexible spending arrangements for health 

care and dependent care expenses, or from Health 

Reimbursement Arrangements(as defined in 26 U.S.C. 

105(b) and 125) for health care expenses; or 

(D)(1) It provides prepaid access solely to: 

(i) Employment benefits, incentives, 

wages or salaries; or 

(ii) Funds not to exceed $1,000 

maximum value and from which no 

more than $1,000 maximum value can be 

initially or subsequently loaded, used, or 

withdrawn on any day through a device 

or vehicle; and 

(2) It does not permit: 

(i) Funds or value to be transmitted 

internationally; 

(ii) Transfers between or among users of 

prepaid access within a prepaid program; or 

(iii) Loading additional funds or the 

value of funds from non-depository sources. 

(5) Money transmitter— 

(i) In general. 

(A) A person that provides money transmission 

services. The term “money transmission services” 

means the acceptance of currency, funds, or other value 

that substitutes for currency from one person and the 

transmission of currency, funds, or other value that 

substitutes for currency to another location or person 

by any means. “Any means” includes, but is not limited 

to, through a financial agency or institution; a Federal 

Reserve Bank or other facility of one or more Federal 

Reserve Banks, the Board of Governors of the Federal 

Reserve System, or both; an electronic funds transfer 

network; or an informal value transfer system; or 

(B) Any other person engaged in the transfer of funds. 

(ii) Facts and circumstances; Limitations. Whether a 

person is a money transmitter as described in this section 

is a matter of facts and circumstances. The term “money 

transmitter” shall not include a person that only: 

(A) Provides the delivery, communication, or 

network access services used by a money transmitter 

to support money transmission services; 

(B) Acts as a payment processor to facilitate the 

purchase of, or payment of a bill for, a good or service 

through a clearance and settlement system by agreement 

with the creditor or seller; 

(C) Operates a clearance and settlement system 

or otherwise acts as an intermediary solely between 

BSA regulated institutions. This includes but is not 

limited to the Fedwire system, electronic funds transfer 

networks, certain registered clearing agencies regulated 

by the Securities and Exchange Commission(“SEC”), 

and derivatives clearing organizations, or other 

clearinghouse arrangements established by a financial 

agency or institution; 

(D) Physically transports currency, other monetary 

instruments, other commercial paper, or other value that 

substitutes for currency as a person primarily engaged 

in such business, such as an armored car, from one 

person to the same person at another location or to an 

account belonging to the same person at a financial 

institution, provided that the person engaged in physical 

transportation has no more than a custodial interest 

in the currency, other monetary instruments, other 

commercial paper, or other value at any point during 

the transportation; 

(E) Provides prepaid access; or 

(F) Accepts and transmits funds only integral to the 

sale of goods or the provision of services, other than 

money transmission services, by the person who is 

accepting and transmitting the funds. 

(6) U.S. Postal Service. The United States Postal 

Service, except with respect to the sale of postage 

or philatelic products. 

(7) Seller of prepaid access. Any person that 

receives funds or the value of funds in exchange for 

an initial loading or subsequent loading of prepaid 

access if that person: 

(i) Sells prepaid access offered under a 

prepaid program that can be used before 

verification of customer identification 

under § 1022.210(d)(1)(iv); or 

(ii) Sells prepaid access(including 

closed loop prepaid access) to funds that 

exceed $10,000 to any person during any 

one day, and has not implemented policies 

and procedures reasonably adapted to 

prevent such a sale. 

(8) Limitation. For the purposes of this section, 

the term “money services business” shall not include: 

(i) A bank or foreign bank; 

(ii) A person registered with, and 

functionally regulated or examined by, the 

SEC or the CFTC, or a foreign financial 

agency that engages in financial activities 
60 • Money Laundering Statutes

31 C.F.R. § 1010.100 

that, if conducted in the United States, 

would require the foreign financial agency 

to be registered with the SEC or CFTC; or 

(iii) A natural person who engages in 

an activity identified in paragraphs(ff)

(1) through(ff)(5) of this section on an 

infrequent basis and not for gain or profit. 

(gg) Mutual fund. An “investment company” (as the term 

is defined in section 3 of the Investment Company Act(15 

U.S.C. 80a–3)) that is an “open-end company” (as that term 

is defined in section 5 of the Investment Company Act(15 

U.S.C. 80a–5)) that is registered or is required to register with 

the Commission under section 8 of the Investment Company 

Act(15 U.S.C. 80a–8).

(hh) Option on a commodity. Any agreement, contract, or 

transaction described in section 1a(26) of the CEA, 7 U.S.C. 

1a(26).

(ii) Originator. The sender of the first payment order in a 

funds transfer.

(jj) Originator’s bank. The receiving bank to which the 

payment order of the originator is issued if the originator is 

not a bank or foreign bank, or the originator if the originator 

is a bank or foreign bank.

(kk) Payment date. The day on which the amount of the 

transmittal order is payable to the recipient by the recipient’s 

financial institution. The payment date may be determined by 

instruction of the sender, but cannot be earlier than the day 

the order is received by the recipient’s financial institution 

and, unless otherwise prescribed by instruction, is the date 

the order is received by the recipient’s financial institution.

(ll) Payment order. An instruction of a sender to a receiving 

bank, transmitted orally, electronically, or in writing, to pay, 

or to cause another bank or foreign bank to pay, a fixed or 

determinable amount of money to a beneficiary if:

(1) The instruction does not state a condition to payment 

to the beneficiary other than time of payment; 

(2) The receiving bank is to be reimbursed by debiting 

an account of, or otherwise receiving payment from, the 

sender; and 

(3) The instruction is transmitted by the sender directly to 

the receiving bank or to an agent, funds transfer system, or 

communication system for transmittal to the receiving bank. 

(mm) Person. An individual, a corporation, a partnership, 

a trust or estate, a joint stock company, an association, a 

syndicate, joint venture, or other unincorporated organization 

or group, an Indian Tribe (as that term is defined in the Indian 

Gaming Regulatory Act), and all entities cognizable as legal 

personalities.

(nn) Receiving bank. The bank or foreign bank to which the 

sender’s instruction is addressed.

(oo) Receiving financial institution. The financial institution 

or foreign financial agency to which the sender’s instruction 

is addressed. The term receiving financial institution includes 

a receiving bank.

(pp) Recipient. The person to be paid by the recipient’s 

financial institution. The term recipient includes a beneficiary, 

except where the recipient’s financial institution is a financial 

institution other than a bank.

(qq) Recipient’s financial institution. The financial institution 

or foreign financial agency identified in a transmittal order in 

which an account of the recipient is to be credited pursuant to 

the transmittal order or which otherwise is to make payment 

to the recipient if the order does not provide for payment 

to an account. The term recipient’s financial institution 

includes a beneficiary’s bank, except where the beneficiary 

is a recipient’s financial institution.

(rr) Secretary. The Secretary of the Treasury or any person 

duly authorized by the Secretary to perform the function 

mentioned.

(ss) Security. Security means any instrument or interest 

described in section 3(a)(10) of the Securities Exchange Act 

of 1934, 15 U.S.C. 78c(a)(10).

(tt) Self-regulatory organization:

(1) Shall have the same meaning as provided in section 

3(a)(26) of the Securities Exchange Act of 1934 (15 U.S.C. 

78c(a)(26)); and 

(2) Means a “registered entity” or a “registered futures 

association” as provided in section 1a(29) or 17, respectively, 

of the Commodity Exchange Act (7 U.S.C. 1a(29), 21). 

(uu) Sender. The person giving the instruction to the receiving 

financial institution.

(vv) State. The States of the United States and, wherever 

necessary to carry out the provisions of this chapter, the 

District of Columbia.

(ww) Prepaid access. Access to funds or the value of funds that 

have been paid in advance and can be retrieved or transferred 

at some point in the future through an electronic device or 

vehicle, such as a card, code, electronic serial number, mobile 

identification number, or personal identification number.

(xx) Structure (structuring). For purposes of § 1010.314, a 

person structures a transaction if that person, acting alone, or 

in conjunction with, or on behalf of, other persons, conducts 

or attempts to conduct one or more transactions in currency, 

in any amount, at one or more financial institutions, on one 

or more days, in any manner, for the purpose of evading 

the reporting requirements under §§ 1010.311, 1010.313, 
Money Laundering Statutes • 61

31 C.F.R. § 1010.100

1020.315, 1021.311 and 1021.313 of this chapter. “In any 

manner” includes, but is not limited to, the breaking down 

of a single sum of currency exceeding $10,000 into smaller 

sums, including sums at or below $10,000, or the conduct of 

a transaction, or series of currency transactions at or below 

$10,000. The transaction or transactions need not exceed the 

$10,000 reporting threshold at any single financial institution 

on any single day in order to constitute structuring within the 

meaning of this definition.

(yy) Taxpayer Identification Number. Taxpayer Identification 

Number (“TIN”) is defined by section 6109 of the Internal 

Revenue Code of 1986 (26 U.S.C. 6109) and the Internal 

Revenue Service regulations implementing that section(e.g., 

social security number or employer identification number).

(zz) Territories and Insular Possessions. The Commonwealth 

of Puerto Rico, the United States Virgin Islands, Guam, the 

Commonwealth of the Northern Mariana Islands, and all other 

territories and possessions of the United States other than the 

Indian lands and the District of Columbia.

(aaa) [Reserved]

(bbb) Transaction.

(1) Except as provided in paragraph (bbb)(2) of this section, 

transaction means a purchase, sale, loan, pledge, gift, transfer, 

delivery, or other disposition, and with respect to a financial 

institution includes a deposit, withdrawal, transfer between 

accounts, exchange of currency, loan, extension of credit, 

purchase or sale of any stock, bond, certificate of deposit, 

or other monetary instrument, security, contract of sale of a 

commodity for future delivery, option on any contract of sale 

of a commodity for future delivery, option on a commodity, 

purchase or redemption of any money order, payment or order 

for any money remittance or transfer, purchase or redemption 

of casino chips or tokens, or other gaming instruments or 

any other payment, transfer, or delivery by, through, or to a 

financial institution, by whatever means effected. 

(2) For purposes of §§ 1010.311, 1010.313, 1020.315, 

1021.311, 1021.313, and other provisions of this chapter 

relating solely to the report required by those sections, the term 

“transaction in currency” shall mean a transaction involving 

the physical transfer of currency from one person to another. 

A transaction which is a transfer of funds by means of bank 

check, bank draft, wire transfer, or other written order, and 

which does not include the physical transfer of currency, is 

not a transaction in currency for this purpose. 

(ccc) Transaction account. Transaction accounts include 

those accounts described in 12 U.S.C. 461(b)(1)(C), money 

market accounts and similar accounts that take deposits and 

are subject to withdrawal by check or other negotiable order.

(ddd) Transmittal of funds. A series of transactions beginning 

with the transmittor’s transmittal order, made for the purpose 

of making payment to the recipient of the order. The term 

includes any transmittal order issued by the transmittor’s 

financial institution or an intermediary financial institution 

intended to carry out the transmittor’s transmittal order. 

The term transmittal of funds includes a funds transfer. 

A transmittal of funds is completed by acceptance by the 

recipient’s financial institution of a transmittal order for the 

benefit of the recipient of the transmittor’s transmittal order. 

Funds transfers governed by the Electronic Fund Transfer Act 

of 1978 (Title XX, Pub.L. 95–630, 92 Stat. 3728, 15 U.S.C. 

1693, et seq.), as well as any other funds transfers that are 

made through an automated clearinghouse, an automated 

teller machine, or a point-of-sale system, are excluded from 

this definition.

(eee) Transmittal order. The term transmittal order includes a 

payment order and is an instruction of a sender to a receiving 

financial institution, transmitted orally, electronically, or in 

writing, to pay, or cause another financial institution or foreign 

financial agency to pay, a fixed or determinable amount of 

money to a recipient if:

(1) The instruction does not state a condition to payment 

to the recipient other than time of payment; 

(2) The receiving financial institution is to be reimbursed 

by debiting an account of, or otherwise receiving payment 

from, the sender; and 

(3) The instruction is transmitted by the sender directly 

to the receiving financial institution or to an agent or 

communication system for transmittal to the receiving 

financial institution. 

(fff) Transmittor. The sender of the first transmittal order 

in a transmittal of funds. The term transmittor includes an 

originator, except where the transmittor’s financial institution 

is a financial institution or foreign financial agency other than 

a bank or foreign bank.

(ggg) Transmittor’s financial institution. The receiving 

financial institution to which the transmittal order of the 

transmittor is issued if the transmittor is not a financial 

institution or foreign financial agency, or the transmittor if 

the transmittor is a financial institution or foreign financial 

agency. The term transmittor’s financial institution includes an 

originator’s bank, except where the originator is a transmittor’s 

financial institution other than a bank or foreign bank.

(hhh) United States. The States of the United States, the 

District of Columbia, the Indian lands (as that term is defined 

in the Indian Gaming Regulatory Act), and the Territories and 

Insular Possessions of the United States.

(iii) U.S. person.

(1) A United States citizen; or 

(2) A person other than an individual (such as a corporation, 

partnership or trust), that is established or organized under the 
62 • Money Laundering Statutes

31 C.F.R. § 1010.306 

laws of a State or the United States. Non–U.S. person means 

a person that is not a U.S. person. 

(jjj) U.S. Postal Service. The United States Postal Service, 

except with respect to the sale of postage or philatelic 

products.

(kkk) Closed loop prepaid access. Prepaid access to funds or 

the value of funds that can be used only for goods or services 

in transactions involving a defined merchant or location (or 

set of locations), such as a specific retailer or retail chain, a 

college campus, or a subway system.

(lll) Loan or finance company. A person engaged in activities 

that take place wholly or in substantial part within the United 

States in one or more of the capacities listed below, whether 

or not on a regular basis or as an organized business concern. 

This includes but is not limited to maintenance of any agent, 

agency, branch, or office within the United States. For the 

purposes of this paragraph (lll), the term “loan or finance 

company” shall include a sole proprietor acting as a loan 

or finance company, and shall not include: A bank, a person 

registered with and functionally regulated or examined by 

the Securities and Exchange Commission or the Commodity 

Futures Trading Commission, any government sponsored 

enterprise regulated by the Federal Housing Finance Agency, 

any Federal or state agency or authority administering 

mortgage or housing assistance, fraud prevention or 

foreclosure prevention programs, or an individual employed 

by a loan or finance company or financial institution under this 

part. A loan or finance company is not a financial institution 

as defined in the regulations in this part at 1010.100(t).

(1) Residential mortgage lender or originator. A residential 

mortgage lender or originator includes: 

(i) Residential mortgage lender. The person to whom 

the debt arising from a residential mortgage loan is initially 

payable on the face of the evidence of indebtedness 

or, if there is no such evidence of indebtedness, by 

agreement, or to whom the obligation is initially assigned 

at or immediately after settlement. The term “residential 

mortgage lender” shall not include an individual who 

finances the sale of the individual’s own dwelling or real 

property. 

(ii) Residential mortgage originator. A person who 

accepts a residential mortgage loan application or offers 

or negotiates terms of a residential mortgage loan. 

(iii) Residential mortgage loan. A loan that is secured by 

a mortgage, deed of trust, or other equivalent consensual 

security interest on: 

(A) A residential structure that contains one to four 

units, including, if used as a residence, an individual 

condominium unit, cooperative unit, mobile home or 

trailer; or 

(B) Residential real estate upon which such a 

structure is constructed or intended to be constructed. 

(2) [Reserved] 

Note: §1010.100 was previously §103.11. §1010.100(yy) 

was previously §103.21(a)(6). §1010.100(iii) was previously 

§103.121(a)(7) & (8).

This section was further amended on Feb. 14, 2012. The 

changes went into effect April 16, 2012.

31 C.F.R. § 1010.306. Filing of reports. 

To be used for violations occurring on or after

March 1, 2011.

(a)(1) A report required by § 1010.311 or § 1021.311, shall be 

filed by the financial institution within 15 days following the 

day on which the reportable transaction occurred.

(2) A copy of each report filed pursuant to §§ 1010.311, 

1010.313, 1020.315, 1021.311 and 1021.313, shall be retained 

by the financial institution for a period of five years from the 

date of the report. 

(3) All reports required to be filed by §§ 1010.311, 1010.313, 

1020.315, 1021.311 and 1021.313, shall be filed with the 

Commissioner of Internal Revenue, unless otherwise specified. 

(b)(1) A report required by § 1010.340(a) shall be filed at 

the time of entry into the United States or at the time of 

departure, mailing or shipping from the United States, unless 

otherwise specified by the Commissioner of Customs and 

Border Protection.

(2) A report required by § 1010.340(b) shall be filed within 15 

days after receipt of the currency or other monetary instruments. 

(3) All reports required by § 1010.340 shall be filed 

with the Customs officer in charge at any port of entry or 

departure, or as otherwise specified by the Commissioner 

of Customs and Border Protection. Reports required by 

§ 1010.340(a) for currency or other monetary instruments not 

physically accompanying a person entering or departing from 

the United States, may be filed by mail on or before the date 

of entry, departure, mailing or shipping. All reports required 

by § 1010.340(b) may also be filed by mail. Reports filed 

by mail shall be addressed to the Commissioner of Customs 

and Border Protection, Attention: Currency Transportation 

Reports, Washington, DC 20229. 

(c) Reports required to be filed by § 1010.350 shall be filed 

with the Commissioner of Internal Revenue on or before June 

30 of each calendar year with respect to foreign financial 

accounts exceeding $10,000 maintained during the previous 

calendar year.
Money Laundering Statutes • 63

31 C.F.R. § 1010.314

(d) Reports required by § 1010.311, § 1010.313, § 1010.340, 

§ 1010.350, § 1020.315, § 1021.311 or § 1021.313 of this 

chapter shall be filed on forms prescribed by the Secretary. 

All information called for in such forms shall be furnished.

(e) Forms to be used in making the reports required by 

§ 1010.311, § 1010.313, § 1010.350, § 1020.315, § 1021.311 

or § 1021.313 of this chapter may be obtained from the 

Internal Revenue Service. Forms to be used in making the 

reports required by § 1010.340 may be obtained from the 

U.S. Customs and Border Protection.

Note: §1010.306(a)(1) was previously §103.27(a)(1). 

§1010.306(a)(2) & (3) was previously §103.27(a)(3) & (4).

31 C.F.R. § 1010.311. Filing obligations for 

reports of transactions in currency. 

To be used for violations occurring on or after

March 1, 2011.

Each financial institution other than a casino shall file a 

report of each deposit, withdrawal, exchange of currency or 

other payment or transfer, by, through, or to such financial 

institution which involves a transaction in currency of more 

than $10,000, except as otherwise provided in this section. In 

the case of the U.S. Postal Service, the obligation contained in 

the preceding sentence shall not apply to payments or transfers 

made solely in connection with the purchase of postage or 

philatelic products.

Note: §1010.311 was previously §103.22(b)(1).

31 C.F.R. § 1010.312. Identification required. 

To be used for violations occurring on or after

March 1, 2011.

Before concluding any transaction with respect to which a 

report is required under § 1010.311, § 1010.313, § 1020.315, 

§ 1021.311 or § 1021.313 of this chapter, a financial institution 

shall verify and record the name and address of the individual 

presenting a transaction, as well as record the identity, account 

number, and the social security or taxpayer identification 

number, if any, of any person or entity on whose behalf such 

transaction is to be effected. Verification of the identity of an 

individual who indicates that he or she is an alien or is not a 

resident of the United States must be made by passport, alien 

identification card, or other official document evidencing 

nationality or residence (e.g., a Provincial driver’s license 

with indication of home address). Verification of identity in 

any other case shall be made by examination of a document, 

other than a bank signature card, that is normally acceptable 

within the banking community as a means of identification 

when cashing checks for nondepositors (e.g., a driver’s license 

or credit card). A bank signature card may be relied upon only 

if it was issued after documents establishing the identity of 

the individual were examined and notation of the specific 

information was made on the signature card. In each instance, 

the specific identifying information (i.e., the account number 

of the credit card, the driver’s license number, etc.) used in 

verifying the identity of the customer shall be recorded on the 

report, and the mere notation of “known customer” or “bank 

signature card on file” on the report is prohibited.

Note: §1010.312 was previously §103.28

31 C.F.R. § 1010.313. Aggregation. 

To be used for violations occurring on or after

March 1, 2011.

(a) Multiple branches. A financial institution includes all of 

its domestic branch offices, and any recordkeeping facility, 

wherever located, that contains records relating to the 

transactions of the institution’s domestic offices, for purposes 

of the transactions in currency reporting requirements in this 

chapter.

(b) Multiple transactions. In the case of financial institutions 

other than casinos, for purposes of the transactions in currency 

reporting requirements in this chapter, multiple currency 

transactions shall be treated as a single transaction if the 

financial institution has knowledge that they are by or on 

behalf of any person and result in either cash in or cash out 

totaling more than $10,000 during any one business day (or 

in the case of the U.S. Postal Service, any one day). Deposits 

made at night or over a weekend or holiday shall be treated 

as if received on the next business day following the deposit..

Note: §1010.313(a)–(b) was previously §103.22(c)(1)–(2).

31 C.F.R. § 1010.314. Structured transactions.

To be used for violations occurring on or after

March 1, 2011.

No person shall for the purpose of evading the transactions in 

currency reporting requirements of this chapter with respect 

to such transaction:

(a) Cause or attempt to cause a domestic financial institution to 

fail to file a report required under the transactions in currency 

reporting requirements of this chapter;

(b) Cause or attempt to cause a domestic financial institution 

to file a report required under the transactions in currency 
64 • Money Laundering Statutes

31 C.F.R. § 1010.315 

reporting requirements of this chapter that contains a material 

omission or misstatement of fact; or

(c) Structure (as that term is defined in § 1010.100(xx)) 

or assist in structuring, or attempt to structure or assist in 

structuring, any transaction with one or more domestic 

financial institutions.

31 C.F.R. § 1010.315. Exemptions for non-bank 

financial institutions. 

To be used for violations occurring on or after

March 1, 2011.

A non-bank financial institution is not required to file a report 

otherwise required by § 1010.311 with respect to a transaction 

in currency between the institution and a commercial bank.

Note: §1010.315 was previously §103.22(d)(1) sentence 2.

31 C.F.R. § 1010.330. Reports relating to 

currency in excess of $10,000 received in a 

trade or business. 

To be used for violations occurring on or after

March 1, 2011.

(a) Reporting requirement—

(1) Reportable transactions— 

(i) In general. Any person (solely for purposes of section 

5331 of title 31, United States Code and this section, 

“person” shall have the same meaning as under 26 U.S.C. 

7701(a)(1)) who, in the course of a trade or business 

in which such person is engaged, receives currency in 

excess of $10,000 in 1 transaction (or 2 or more related 

transactions) shall, except as otherwise provided, make 

a report of information with respect to the receipt of 

currency. This section does not apply to amounts received 

in a transaction reported under 31 U.S.C. 5313 and §§ 

1010.311, 1010.313, 1020.315, 1021.311 or 1021.313 of 

this chapter. 

(ii) Certain financial transactions. Section 6050I of 

title 26 of the United States Code requires persons to 

report information about financial transactions to the IRS, 

and 31 U.S.C. 5331 requires persons to report the same 

information to the Financial Crimes Enforcement Network. 

This information shall be reported on the same form as 

prescribed by the Secretary. 

(2) Currency received for the account of another. Currency 

in excess of $10,000 received by a person for the account 

of another must be reported under this section. Thus, for 

example, a person who collects delinquent accounts receivable 

for an automobile dealer must report with respect to the receipt 

of currency in excess of $10,000 from the collection of a 

particular account even though the proceeds of the collection 

are credited to the account of the automobile dealer (i.e., where 

the rights to the proceeds from the account are retained by 

the automobile dealer and the collection is made on a feefor-service basis). 

(3) Currency received by agents— 

(i) General rule. Except as provided in paragraph (a)(3)

(ii) of this section, a person who in the course of a trade or 

business acts as an agent (or in some other similar capacity) 

and receives currency in excess of $10,000 from a principal 

must report the receipt of currency under this section. 

(ii) Exception. An agent who receives currency from a 

principal and uses all of the currency within 15 days in a 

currency transaction (the “second currency transaction”) 

which is reportable under section 5312 of title 31, or 31 

U.S.C. 5331 and this section, and who discloses the name, 

address, and TIN of the principal to the recipient in the 

second currency transaction need not report the initial 

receipt of currency under this section. An agent will be 

deemed to have met the disclosure requirements of this 

paragraph (a)(3)(ii) if the agent discloses only the name 

of the principal and the agent knows that the recipient has 

the principal’s address and taxpayer identification number. 

(iii) Example. The following example illustrates the 

application of the rules in paragraphs (a)(3)(i) and (ii) of 

this section: 

Example. B, the principal, gives D, an attorney, $75,000 

in currency to purchase real property on behalf of B. Within 

15 days D purchases real property for currency from E, 

a real estate developer, and discloses to E, B’s name, 

address, and taxpayer identification number. Because 

the transaction qualifies for the exception provided in 

paragraph (a)(3)(ii) of this section, D need not report 

with respect to the initial receipt of currency under this 

section. The exception does not apply, however, if D pays 

E by means other than currency, or effects the purchase 

more than 15 days following receipt of the currency from 

B, or fails to disclose B’s name, address, and taxpayer 

identification number (assuming D does not know that 

E already has B’s address and taxpayer identification 

number), or purchases the property from a person whose 

sale of the property is not in the course of that person’s 

trade or business. In any such case, D is required to report 

the receipt of currency from B under this section. 

(b) Multiple payments. The receipt of multiple currency 

deposits or currency installment payments (or other similar 

payments or prepayments) relating to a single transaction (or 
Money Laundering Statutes • 65

31 C.F.R. § 1010.330

two or more related transactions), is reported as set forth in 

paragraphs (b)(1) through (b)(3) of this section.

(1) Initial payment in excess of $10,000. If the initial 

payment exceeds $10,000, the recipient must report the 

initial payment within 15 days of its receipt. 

(2) Initial payment of $10,000 or less. If the initial 

payment does not exceed $10,000, the recipient must 

aggregate the initial payment and subsequent payments 

made within one year of the initial payment until the 

aggregate amount exceeds $10,000, and report with respect 

to the aggregate amount within 15 days after receiving 

the payment that causes the aggregate amount to exceed 

$10,000. 

(3) Subsequent payments. In addition to any other 

required report, a report must be made each time that 

previously unreportable payments made within a 12–

month period with respect to a single transaction (or two or 

more related transactions), individually or in the aggregate, 

exceed $10,000. The report must be made within 15 days 

after receiving the payment in excess of $10,000 or the 

payment that causes the aggregate amount received in the 

12–month period to exceed $10,000. (If more than one 

report would otherwise be required for multiple currency 

payments within a 15–day period that relate to a single 

transaction (or two or more related transactions), the 

recipient may make a single combined report with respect 

to the payments. The combined report must be made no 

later than the date by which the first of the separate reports 

would otherwise be required to be made.) 

(4) Example. The following example illustrates the 

application of the rules in paragraphs (b)(1) through (b)

(3) of this section: 

Example. On January 10, Year 1, M receives an 

initial payment in currency of $11,000 with respect to a 

transaction. M receives subsequent payments in currency 

with respect to the same transaction of $4,000 on February 

15, Year 1, $6,000 on March 20, Year 1, and $12,000 on 

May 15, Year 1. M must make a report with respect to 

the payment received on January 10, Year 1, by January 

25, Year 1. M must also make a report with respect to the 

payments totaling $22,000 received from February 15, 

Year 1, through May 15, Year 1. This report must be made 

by May 30, Year 1, that is, within 15 days of the date that 

the subsequent payments, all of which were received within 

a 12–month period, exceeded $10,000. 

(c) Meaning of terms. The following definitions apply for 

purposes of this section—

(1) Currency. The term currency means— 

(i) The coin and currency of the United States or of any 

other country, which circulate in and are customarily used 

and accepted as money in the country in which issued; and 

(ii) A cashier’s check (by whatever name called, 

including “treasurer’s check” and “bank check”), bank 

draft, traveler’s check, or money order having a face 

amount of not more than $10,000— 

(A) Received in a designated reporting transaction 

as defined in paragraph (c)(2) of this section (except 

as provided in paragraphs (c)(3), (4), and (5) of this 

section), or 

(B) Received in any transaction in which the 

recipient knows that such instrument is being used in an 

attempt to avoid the reporting of the transaction under 

section 5331 and this section. 

(2) Designated reporting transaction. A designated 

reporting transaction is a retail sale (or the receipt of funds 

by a broker or other intermediary in connection with a retail 

sale) of— 

(i) A consumer durable, 

(ii) A collectible, or 

(iii) A travel or entertainment activity. 

(3) Exception for certain loans. A cashier’s check, bank 

draft, traveler’s check, or money order received in a designated 

reporting transaction is not treated as currency pursuant 

to paragraph (c)(1)(ii)(A) of this section if the instrument 

constitutes the proceeds of a loan from a bank. The recipient 

may rely on a copy of the loan document, a written statement 

from the bank, or similar documentation (such as a written lien 

instruction from the issuer of the instrument) to substantiate 

that the instrument constitutes loan proceeds. 

(4) Exception for certain installment sales. A cashier’s 

check, bank draft, traveler’s check, or money order received 

in a designated reporting transaction is not treated as currency 

pursuant to paragraph (c)(1)(ii)(A) of this section if the 

instrument is received in payment on a promissory note or an 

installment sales contract (including a lease that is considered 

to be a sale for Federal income tax purposes). However, the 

preceding sentence applies only if— 

(i) Promissory notes or installment sales contracts 

with the same or substantially similar terms are used in 

the ordinary course of the recipient’s trade or business in 

connection with sales to ultimate consumers; and 

(ii) The total amount of payments with respect to the 

sale that are received on or before the 60th day after the 

date of the sale does not exceed 50 percent of the purchase 

price of the sale. 
66 • Money Laundering Statutes

31 C.F.R. § 1010.330 

(5) Exception for certain down payment plans. A cashier’s 

check, bank draft, traveler’s check, or money order received 

in a designated reporting transaction is not treated as currency 

pursuant to paragraph (c)(1)(ii)(A) of this section if the 

instrument is received pursuant to a payment plan requiring 

one or more down payments and the payment of the balance 

of the purchase price by a date no later than the date of the sale 

(in the case of an item of travel or entertainment, a date no later 

than the earliest date that any item of travel or entertainment 

pertaining to the same trip or event is furnished). However, 

the preceding sentence applies only if— 

(i) The recipient uses payment plans with the same 

or substantially similar terms in the ordinary course of 

its trade or business in connection with sales to ultimate 

consumers; and 

(ii) The instrument is received more than 60 days prior 

to the date of the sale (in the case of an item of travel or 

entertainment, the date on which the final payment is due). 

(6) Examples. The following examples illustrate the 

definition of “currency” set forth in paragraphs (c)(1) through 

(c)(5) of this section: 

Example 1. D, an individual, purchases gold coins from M, 

a coin dealer, for $13,200. D tenders to M in payment United 

States currency in the amount of $6,200 and a cashier’s check 

in the face amount of $7,000 which D had purchased. Because 

the sale is a designated reporting transaction, the cashier’s 

check is treated as currency for purposes of 31 U.S.C. 5331 

and this section. Therefore, because M has received more than 

$10,000 in currency with respect to the transaction, M must 

make the report required by 31 U.S.C. 5331 and this section. 

Example 2. E, an individual, purchases an automobile 

from Q, an automobile dealer, for $11,500. E tenders to Q 

in payment United States currency in the amount of $2,000 

and a cashier’s check payable to E and Q in the amount of 

$9,500. The cashier’s check constitutes the proceeds of a loan 

from the bank issuing the check. The origin of the proceeds is 

evident from provisions inserted by the bank on the check that 

instruct the dealer to cause a lien to be placed on the vehicle as 

security for the loan. The sale of the automobile is a designated 

reporting transaction. However, under paragraph (c)(3) of this 

section, because E has furnished Q documentary information 

establishing that the cashier’s check constitutes the proceeds 

of a loan from the bank issuing the check, the cashier’s check 

is not treated as currency pursuant to paragraph (c)(1)(ii)(A) 

of this section. 

Example 3. F, an individual, purchases an item of jewelry 

from S, a retail jeweler, for $12,000. F gives S traveler’s 

checks totaling $2,400 and pays the balance with a personal 

check payable to S in the amount of $9,600. Because the sale 

is a designated reporting transaction, the traveler’s checks 

are treated as currency for purposes of section 5331 and this 

section. However, because the personal check is not treated as 

currency for purposes of section 5331 and this section, S has 

not received more than $10,000 in currency in the transaction 

and no report is required to be filed under section 5331 and 

this section. 

Example 4. G, an individual, purchases a boat from T, 

a boat dealer, for $16,500. G pays T with a cashier’s check 

payable to T in the amount of $16,500. The cashier’s check is 

not treated as currency because the face amount of the check 

is more than $10,000. Thus, no report is required to be made 

by T under section 5331 and this section. 

Example 5. H, an individual, arranges with W, a travel 

agent, for the chartering of a passenger aircraft to transport a 

group of individuals to a sports event in another city. H also 

arranges with W for hotel accommodations for the group and 

for admission tickets to the sports event. In payment, H tenders 

to W money orders which H had previously purchased. The 

total amount of the money orders, none of which individually 

exceeds $10,000 in face amount, exceeds $10,000. Because 

the transaction is a designated reporting transaction, the 

money orders are treated as currency for purposes of section 

5331 and this section. Therefore, because W has received 

more than $10,000 in currency with respect to the transaction, 

W must make the report required by section 5331 and this 

section. 

(7) Consumer durable. The term consumer durable means 

an item of tangible personal property of a type that is suitable 

under ordinary usage for personal consumption or use, that 

can reasonably be expected to be useful for at least 1 year 

under ordinary usage, and that has a sales price of more 

than $10,000. Thus, for example, a $20,000 automobile is a 

consumer durable (whether or not it is sold for business use), 

but a $20,000 dump truck or a $20,000 factory machine is not. 

(8) Collectible. The term collectible means an item 

described in paragraphs (A) through (D) of section 408 (m)

(2) of title 26 of the United States Code (determined without 

regard to section 408 (m)(3) of title 26 of the United States 

Code). 

(9) Travel or entertainment activity. The term travel or 

entertainment activity means an item of travel or entertainment 

(within the meaning of 26 CFR 1.274–2(b)(1)) pertaining to 

a single trip or event where the aggregate sales price of the 

item and all other items pertaining to the same trip or event 

that are sold in the same transaction (or related transactions) 

exceeds $10,000. 

(10) Retail sale. The term retail sale means any sale 

(whether for resale or for any other purpose) made in 

the course of a trade or business if that trade or business 

principally consists of making sales to ultimate consumers. 
Money Laundering Statutes • 67

31 C.F.R. § 1010.330

(11) Trade or business. The term trade or business has 

the same meaning as under section 162 of title 26, United 

States Code. 

(12) Transaction. 

(i) Solely for purposes of 31 U.S.C. 5331 and this 

section, the term transaction means the underlying 

event precipitating the payer’s transfer of currency to 

the recipient. In this context, transactions include (but 

are not limited to) a sale of goods or services; a sale of 

real property; a sale of intangible property; a rental of 

real or personal property; an exchange of currency for 

other currency; the establishment or maintenance of or 

contribution to a custodial, trust, or escrow arrangement; 

a payment of a preexisting debt; a conversion of currency 

to a negotiable instrument; a reimbursement for expenses 

paid; or the making or repayment of a loan. A transaction 

may not be divided into multiple transactions in order to 

avoid reporting under this section. 

(ii) The term related transactions means any transaction 

conducted between a payer (or its agent) and a recipient of 

currency in a 24–hour period. Additionally, transactions 

conducted between a payer (or its agent) and a currency 

recipient during a period of more than 24 hours are related 

if the recipient knows or has reason to know that each 

transaction is one of a series of connected transactions. 

(iii) The following examples illustrate the definition of 

paragraphs (c)(12)(i) and (ii) of this section: 

Example 1. A person has a tacit agreement with a gold 

dealer to purchase $36,000 in gold bullion. The $36,000 

purchase represents a single transaction under paragraph 

(c)(12)(i) of this section and the reporting requirements 

of this section cannot be avoided by recasting the single 

sales transaction into 4 separate $9,000 sales transactions. 

Example 2. An attorney agrees to represent a client in a 

criminal case with the attorney’s fee to be determined on 

an hourly basis. In the first month in which the attorney 

represents the client, the bill for the attorney’s services 

comes to $8,000 which the client pays in currency. In the 

second month in which the attorney represents the client, 

the bill for the attorney’s services comes to $4,000, which 

the client again pays in currency. The aggregate amount of 

currency paid ($12,000) relates to a single transaction as 

defined in paragraph (c)(12)(i) of this section, the sale of 

legal services relating to the criminal case, and the receipt 

of currency must be reported under this section. 

Example 3. A person intends to contribute a total of 

$45,000 to a trust fund, and the trustee of the fund knows 

or has reason to know of that intention. The $45,000 

contribution is a single transaction under paragraph (c)

(12)(i) of this section and the reporting requirement of 

this section cannot be avoided by the grantor’s making 

five separate $9,000 contributions of currency to a single 

fund or by making five $9,000 contributions of currency 

to five separate funds administered by a common trustee. 

Example 4. K, an individual, attends a one day auction 

and purchases for currency two items, at a cost of $9,240 

and $1,732.50 respectively (tax and buyer’s premium 

included). Because the transactions are related transactions 

as defined in paragraph (c)(12)(ii) of this section, the 

auction house is required to report the aggregate amount 

of currency received from the related sales ($10,972.50), 

even though the auction house accounts separately on its 

books for each item sold and presents the purchaser with 

separate bills for each item purchased. 

Example 5. F, a coin dealer, sells for currency $9,000 

worth of gold coins to an individual on three successive 

days. Under paragraph (c)(12)(ii) of this section the three 

$9,000 transactions are related transactions aggregating 

$27,000 if F knows, or has reason to know, that each 

transaction is one of a series of connected transactions. 

(13) Recipient. 

(i) The term recipient means the person receiving the 

currency. Except as provided in paragraph (c)(13)(ii) of 

this section, each store, division, branch, department, 

headquarters, or office (“branch”) (regardless of physical 

location) comprising a portion of a person’s trade or 

business shall for purposes of this section be deemed a 

separate recipient. 

(ii) A branch that receives currency payments will not 

be deemed a separate recipient if the branch (or a central 

unit linking such branch with other branches) would in 

the ordinary course of business have reason to know the 

identity of payers making currency payments to other 

branches of such person. 

(iii) Examples. The following examples illustrate the 

application of the rules in paragraphs (c)(13)(i) and (ii) 

of this section: 

Example 1. N, an individual, purchases regulated futures 

contracts at a cost of $7,500 and $5,000, respectively, 

through two different branches of Commodities Broker X 

on the same day. N pays for each purchase with currency. 

Each branch of Commodities Broker X transmits the 

sales information regarding each of N’s purchases to a 

central unit of Commodities Broker X (which settles the 

transactions against N’s account). Under paragraph (c)(13)

(ii) of this section the separate branches of Commodities 

Broker X are not deemed to be separate recipients; 

therefore, Commodities Broker X must report with respect 

to the two related regulated futures contracts sales in 

accordance with this section. 
68 • Money Laundering Statutes

31 C.F.R. § 1010.340 

Example 2. P, a corporation, owns and operates a 

racetrack. P’s racetrack contains 100 betting windows at 

which pari-mutuel wagers may be made. R, an individual, 

places currency wagers of $3,000 each at five separate 

betting windows. Assuming that in the ordinary course 

of business each betting window (or a central unit linking 

windows) does not have reason to know the identity of 

persons making wagers at other betting windows, each 

betting window would be deemed to be a separate currency 

recipient under paragraph (c)(13)(i) of this section. As 

no individual recipient received currency in excess of 

$10,000, no report need be made by P under this section. 

(d) Exceptions to the reporting requirements of 31 U.S.C. 

5331—

(1) Receipt is made with respect to a foreign currency 

transaction— 

(i) In general. Generally, there is no requirement 

to report with respect to a currency transaction if the 

entire transaction occurs outside the United States (the 

fifty states and the District of Columbia). An entire 

transaction consists of both the transaction as defined 

in paragraph (c)(12)(i) of this section and the receipt of 

currency by the recipient. If, however, any part of an entire 

transaction occurs in the Commonwealth of Puerto Rico 

or a possession or territory of the United States and the 

recipient of currency in that transaction is subject to the 

general jurisdiction of the Internal Revenue Service under 

title 26 of the United States Code, the recipient is required 

to report the transaction under this section. 

(ii) Example. The following example illustrates the 

application of the rules in paragraph (d)(1)(i) of this 

section: 

Example. W, an individual engaged in the trade or 

business of selling aircraft, reaches an agreement to sell an 

airplane to a U.S. citizen living in Mexico. The agreement, 

no portion of which is formulated in the United States, calls 

for a purchase price of $125,000 and requires delivery of 

and payment for the airplane to be made in Mexico. Upon 

delivery of the airplane in Mexico, W receives $125,000 

in currency. W is not required to report under 31 U.S.C. 

5331 or this section because the exception provided in 

paragraph (d)(1)(i) of this section (“foreign transaction 

exception”) applies. If, however, any part of the agreement 

to sell had been formulated in the United States, the foreign 

transaction exception would not apply and W would be 

required to report the receipt of currency under 31 U.S.C. 

5331 and this section. 

(2) Receipt of currency not in the course of the recipient’s 

trade or business. The receipt of currency in excess of $10,000 

by a person other than in the course of the person’s trade or 

business is not reportable under 31 U.S.C. 5331. Thus, for 

example, F, an individual in the trade or business of selling 

real estate, sells a motorboat for $12,000, the purchase price of 

which is paid in currency. F did not use the motorboat in any 

trade or business in which F was engaged. F is not required 

to report under 31 U.S.C. 5331 or this section because the 

exception provided in this paragraph (d)(2) applies. 

(e) Time, manner, and form of reporting—

(1) In general. The reports required by paragraph (a) of 

this section must be made by filing a Form 8300, as specified 

in 26 CFR 1.6050I–1(e)(2). The reports must be filed at the 

time and in the manner specified in 26 CFR 1.6050I–1(e)(1) 

and (3) respectively. 

(2) Verification. A person making a report of information 

under this section must verify the identity of the person from 

whom the reportable currency is received. Verification of the 

identity of a person who purports to be an alien must be made 

by examination of such person’s passport, alien identification 

card, or other official document evidencing nationality or 

residence. Verification of the identity of any other person may 

be made by examination of a document normally acceptable 

as a means of identification when cashing or accepting checks 

(for example, a driver’s license or a credit card). In addition, 

a report will be considered incomplete if the person required 

to make a report knows (or has reason to know) that an agent 

is conducting the transaction for a principal, and the return 

does not identify both the principal and the agent. 

(3) Retention of reports. A person required to make a report 

under this section must keep a copy of each report filed for 

five years from the date of filing.

Note: §1010.330(a)–(c) was previously §103.30(a)– (c). 

§1010.330(d)(1) was previously §103.30(d)(3). 

§1010.330(d)(2) was previously §103.30(d)(2). 

§1010.330(e) was previously §103.30(e).

This section was further amended on June 7, 2012. The 

changes went into effect on July 9, 2012.

31 C.F.R. § 1010.340. Reports of transportation 

of currency or monetary instruments. 

To be used for violations occurring on or after

March 1, 2011.

(a) Each person who physically transports, mails, or ships, 

or causes to be physically transported, mailed, or shipped, 

or attempts to physically transport, mail or ship, or attempts 

to cause to be physically transported, mailed or shipped, 

currency or other monetary instruments in an aggregate 

amount exceeding $10,000 at one time from the United 

States to any place outside the United States, or into the 
Money Laundering Statutes • 69

31 C.F.R. § 1010.350

United States from any place outside the United States, shall 

make a report thereof. A person is deemed to have caused 

such transportation, mailing or shipping when he aids, abets, 

counsels, commands, procures, or requests it to be done by a 

financial institution or any other person.

(b) Each person who receives in the U.S. currency or other 

monetary instruments in an aggregate amount exceeding 

$10,000 at one time which have been transported, mailed, 

or shipped to such person from any place outside the United 

States with respect to which a report has not been filed under 

paragraph (a) of this section, whether or not required to be filed 

thereunder, shall make a report thereof, stating the amount, 

the date of receipt, the form of monetary instruments, and the 

person from whom received.

(c) This section shall not require reports by:

(1) A Federal Reserve; 

(2) A bank, a foreign bank, or a broker or dealer in securities, 

in respect to currency or other monetary instruments mailed 

or shipped through the postal service or by common carrier; 

(3) A commercial bank or trust company organized under 

the laws of any State or of the United States with respect to 

overland shipments of currency or monetary instruments 

shipped to or received from an established customer 

maintaining a deposit relationship with the bank, in amounts 

which the bank may reasonably conclude do not exceed 

amounts commensurate with the customary conduct of the 

business, industry or profession of the customer concerned; 

(4) A person who is not a citizen or resident of the United 

States in respect to currency or other monetary instruments 

mailed or shipped from abroad to a bank or broker or dealer 

in securities through the postal service or by common carrier; 

(5) A common carrier of passengers in respect to currency 

or other monetary instruments in the possession of its 

passengers; 

(6) A common carrier of goods in respect to shipments of 

currency or monetary instruments not declared to be such by 

the shipper; 

(7) A travelers’ check issuer or its agent in respect to the 

transportation of travelers’ checks prior to their delivery to 

selling agents for eventual sale to the public; 

(8) By a person with respect to a restrictively endorsed 

traveler’s check that is in the collection and reconciliation 

process after the traveler’s check has been negotiated; 

(9) Nor by a person engaged as a business in the 

transportation of currency, monetary instruments and other 

commercial papers with respect to the transportation of 

currency or other monetary instruments overland between 

established offices of banks or brokers or dealers in securities 

and foreign persons. 

(d) A transfer of funds through normal banking procedures 

which does not involve the physical transportation of currency 

or monetary instruments is not required to be reported by 

this section. This section does not require that more than one 

report be filed covering a particular transportation, mailing 

or shipping of currency or other monetary instruments with 

respect to which a complete and truthful report has been filed 

by a person. However, no person required by paragraph (a) 

or (b) of this section to file a report shall be excused from 

liability for failure to do so if, in fact, a complete and truthful 

report has not been filed.

Note: §1010.340(a)–(d). was previously §103.23(a)–(d).

31 C.F.R. § 1010.350. Reports of foreign 

financial accounts. 

To be used for violations occurring on or after

March 1, 2011.

(a) In general. Each United States person having a financial 

interest in, or signature or other authority over, a bank, 

securities, or other financial account in a foreign country 

shall report such relationship to the Commissioner of Internal 

Revenue for each year in which such relationship exists and 

shall provide such information as shall be specified in a 

reporting form prescribed under 31 U.S.C. 5314 to be filed 

by such persons. The form prescribed under section 5314 is 

the Report of Foreign Bank and Financial Accounts (TD–F 

90–22.1), or any successor form. See paragraphs (g)(1) and 

(g)(2) of this section for a special rule for persons with a 

financial interest in 25 or more accounts, or signature or other 

authority over 25 or more accounts.

(b) United States person. For purposes of this section, the 

term “United States person” means—

(1) A citizen of the United States; 

(2) A resident of the United States. A resident of the United 

States is an individual who is a resident alien under 26 U.S.C. 

7701(b) and the regulations thereunder but using the definition 

of “United States” provided in 31 CFR 1010.100(hhh) rather 

than the definition of “United States” in 26 CFR 301.7701(b)–

1(c)(2)(ii); and 

(3) An entity, including but not limited to, a corporation, 

partnership, trust, or limited liability company created, 

organized, or formed under the laws of the United States, 

any State, the District of Columbia, the Territories and Insular 

Possessions of the United States, or the Indian Tribes. 
70 • Money Laundering Statutes

31 C.F.R. § 1010.350 

(c) Types of reportable accounts. For purposes of this 

section—

(1) Bank account. The term “bank account” means a 

savings deposit, demand deposit, checking, or any other 

account maintained with a person engaged in the business 

of banking. 

(2) Securities account. The term “securities account” 

means an account with a person engaged in the business of 

buying, selling, holding or trading stock or other securities. 

(3) Other financial account. The term “other financial 

account” means— 

(i) An account with a person that is in the business of 

accepting deposits as a financial agency; 

(ii) An account that is an insurance or annuity policy 

with a cash value; 

(iii) An account with a person that acts as a broker or 

dealer for futures or options transactions in any commodity 

on or subject to the rules of a commodity exchange or 

association; or 

(iv) An account with— 

(A) Mutual fund or similar pooled fund. A mutual 

fund or similar pooled fund which issues shares 

available to the general public that have a regular net 

asset value determination and regular redemptions; or 

(B) Other investment fund. [Reserved] 

(4) Exceptions for certain accounts. 

(i) An account of a department or agency of the United 

States, an Indian Tribe, or any State or any political 

subdivision of a State, or a wholly-owned entity, agency 

or instrumentality of any of the foregoing is not required 

to be reported. In addition, reporting is not required with 

respect to an account of an entity established under the 

laws of the United States, of an Indian Tribe, of any State, 

or of any political subdivision of any State, or under an 

intergovernmental compact between two or more States 

or Indian Tribes, that exercises governmental authority on 

behalf of the United States, an Indian Tribe, or any such 

State or political subdivision. For this purpose, an entity 

generally exercises governmental authority on behalf of 

the United States, an Indian Tribe, a State, or a political 

subdivision only if its authorities include one or more of 

the powers to tax, to exercise the power of eminent domain, 

or to exercise police powers with respect to matters within 

its jurisdiction. 

(ii) An account of an international financial institution 

of which the United States government is a member is not 

required to be reported. 

(iii) An account in an institution known as a “United 

States military banking facility” (or “United States military 

finance facility”) operated by a United States financial 

institution designated by the United States Government 

to serve United States government installations abroad is 

not required to be reported even though the United States 

military banking facility is located in a foreign country. 

(iv) Correspondent or nostro accounts that are 

maintained by banks and used solely for bank-to-bank 

settlements are not required to be reported. 

(d) Foreign country. A foreign country includes all geographical 

areas located outside of the United States as defined in 31 CFR 

1010.100(hhh).

(e) Financial interest. A financial interest in a bank, securities 

or other financial account in a foreign country means an 

interest described in this paragraph (e):

(1) Owner of record or holder of legal title. A United States 

person has a financial interest in each bank, securities or other 

financial account in a foreign country for which he is the owner 

of record or has legal title whether the account is maintained 

for his own benefit or for the benefit of others. If an account is 

maintained in the name of more than one person, each United 

States person in whose name the account is maintained has a 

financial interest in that account. 

(2) Other financial interest. A United States person has a 

financial interest in each bank, securities or other financial 

account in a foreign country for which the owner of record 

or holder of legal title is— 

(i) A person acting as an agent, nominee, attorney or in 

some other capacity on behalf of the United States person 

with respect to the account; 

(ii) A corporation in which the United States person 

owns directly or indirectly more than 50 percent of the 

voting power or the total value of the shares, a partnership 

in which the United States person owns directly or 

indirectly more than 50 percent of the interest in profits 

or capital, or any other entity (other than an entity in 

paragraphs (e)(2)(iii) through (iv) of this section) in which 

the United States person owns directly or indirectly more 

than 50 percent of the voting power, total value of the 

equity interest or assets, or interest in profits; 

(iii) A trust, if the United States person is the trust 

grantor and has an ownership interest in the trust for United 

States Federal tax purposes. See 26 U.S.C. 671–679 and 

the regulations thereunder to determine if a grantor has an 

ownership interest in the trust for the year; or 

(iv) A trust in which the United States person either has 

a present beneficial interest in more than 50 percent of the 

assets or from which such person receives more than 50 

percent of the current income. 
Money Laundering Statutes • 71

31 C.F.R. § 1010.350

(3) Anti-avoidance rule. A United States person that 

causes an entity, including but not limited to a corporation, 

partnership, or trust, to be created for a purpose of evading this 

section shall have a financial interest in any bank, securities, 

or other financial account in a foreign country for which the 

entity is the owner of record or holder of legal title. 

(f) Signature or other authority—

(1) In general. Signature or other authority means the 

authority of an individual (alone or in conjunction with 

another) to control the disposition of money, funds or other 

assets held in a financial account by direct communication 

(whether in writing or otherwise) to the person with whom 

the financial account is maintained. 

(2) Exceptions— 

(i) An officer or employee of a bank that is examined 

by the Office of the Comptroller of the Currency, the 

Board of Governors of the Federal Reserve System, the 

Federal Deposit Insurance Corporation, the Office of Thrift 

Supervision, or the National Credit Union Administration 

need not report that he has signature or other authority 

over a foreign financial account owned or maintained by 

the bank if the officer or employee has no financial interest 

in the account. 

(ii) An officer or employee of a financial institution 

that is registered with and examined by the Securities and 

Exchange Commission or Commodity Futures Trading 

Commission need not report that he has signature or 

other authority over a foreign financial account owned or 

maintained by such financial institution if the officer or 

employee has no financial interest in the account. 

(iii) An officer or employee of an Authorized Service 

Provider need not report that he has signature or other 

authority over a foreign financial account owned or 

maintained by an investment company that is registered 

with the Securities and Exchange Commission if the 

officer or employee has no financial interest in the 

account. “Authorized Service Provider” means an entity 

that is registered with and examined by the Securities 

and Exchange Commission and that provides services to 

an investment company registered under the Investment 

Company Act of 1940. 

(iv) An officer or employee of an entity with a class of 

equity securities listed (or American depository receipts 

listed) on any United States national securities exchange 

need not report that he has signature or other authority 

over a foreign financial account of such entity if the officer 

or employee has no financial interest in the account. An 

officer or employee of a United States subsidiary of a 

United States entity with a class of equity securities listed 

on a United States national securities exchange need not 

file a report concerning signature or other authority over 

a foreign financial account of the subsidiary if he has no 

financial interest in the account and the United States 

subsidiary is included in a consolidated report of the parent 

filed under this section. 

(v) An officer or employee of an entity that has a class 

of equity securities registered (or American depository 

receipts in respect of equity securities registered) under 

section 12(g) of the Securities Exchange Act need not 

report that he has signature or other authority over the 

foreign financial accounts of such entity or if he has no 

financial interest in the accounts. 

(g) Special rules—

(1) Financial interest in 25 or more foreign financial 

accounts. A United States person having a financial interest 

in 25 or more foreign financial accounts need only provide 

the number of financial accounts and certain other basic 

information on the report, but will be required to provide 

detailed information concerning each account when so 

requested by the Secretary or his delegate. 

(2) Signature or other authority over 25 or more foreign 

financial accounts. A United States person having signature 

or other authority over 25 or more foreign financial accounts 

need only provide the number of financial accounts and certain 

other basic information on the report, but will be required to 

provide detailed information concerning each account when 

so requested by the Secretary or his delegate. 

(3) Consolidated reports. An entity that is a United States 

person and which owns directly or indirectly more than a 50 

percent interest in one or more other entities required to report 

under this section will be permitted to file a consolidated report 

on behalf of itself and such other entities. 

(4) Participants and beneficiaries in certain retirement plans. 

Participants and beneficiaries in retirement plans under sections 

401(a), 403(a) or 403(b) of the Internal Revenue Code as well 

as owners and beneficiaries of individual retirement accounts 

under section 408 of the Internal Revenue Code or Roth IRAs 

under section 408A of the Internal Revenue Code are not 

required to file an FBAR with respect to a foreign financial 

account held by or on behalf of the retirement plan or IRA. 

(5) Certain trust beneficiaries. A beneficiary of a trust 

described in paragraph (e)(2)(iv) of this section is not required 

to report the trust’s foreign financial accounts if the trust, 

trustee of the trust, or agent of the trust is a United States 

person that files a report under this section disclosing the 

trust’s foreign financial accounts.

Note: §1010.350 was previously §103.24.

This section was further amended on June 24, 2011. The 

changes went into effect on June 24, 2011.
72 • Money Laundering Statutes

31 C.F.R. § 1010.370 

31 C.F.R. § 1010.370. Reports of certain 

domestic coin and currency transactions. 

To be used for violations occurring on or after

March 1, 2011.

(a) If the Secretary of the Treasury finds, upon the Secretary’s 

own initiative or at the request of an appropriate Federal or 

State law enforcement official, that reasonable grounds exist 

for concluding that additional recordkeeping and/or reporting 

requirements are necessary to carry out the purposes of this 

chapter and to prevent persons from evading the reporting/

recordkeeping requirements of this chapter, the Secretary may 

issue an order requiring any domestic financial institution or 

group of domestic financial institutions in a geographic area 

and any other person participating in the type of transaction 

to file a report in the manner and to the extent specified in 

such order. The order shall contain such information as the 

Secretary may describe concerning any transaction in which 

such financial institution is involved for the payment, receipt, 

or transfer of United States coins or currency (or such other 

monetary instruments as the Secretary may describe in such 

order) the total amounts or denominations of which are 

equal to or greater than an amount which the Secretary may 

prescribe.

(b) An order issued under paragraph (a) of this section shall 

be directed to the Chief Executive Officer of the financial 

institution and shall designate one or more of the following 

categories of information to be reported: Each deposit, 

withdrawal, exchange of currency or other payment or 

transfer, by, through or to such financial institution specified 

in the order, which involves all or any class of transactions in 

currency and/or monetary instruments equal to or exceeding 

an amount to be specified in the order.

(c) In issuing an order under paragraph (a) of this section, the 

Secretary will prescribe:

(1) The dollar amount of transactions subject to the 

reporting requirement in the order; 

(2) The type of transaction or transactions subject to or 

exempt from a reporting requirement in the order; 

(3) The appropriate form for reporting the transactions 

required in the order; 

(4) The address to which reports required in the order are 

to be sent or from which they will be picked up; 

(5) The starting and ending dates by which such 

transactions specified in the order are to be reported; 

(6) The name of a Treasury official to be contacted for any 

additional information or questions; 

(7) The amount of time the reports and records of reports 

generated in response to the order will have to be retained by 

the financial institution; and 

(8) Any other information deemed necessary to carry out 

the purposes of the order. 

(d)(1) No order issued pursuant to paragraph (a) of this section 

shall prescribe a reporting period of more than 60 days unless 

renewed pursuant to the requirements of paragraph (a).

(2) Any revisions to an order issued under this section 

will not be effective until made in writing by the Secretary. 

(3) Unless otherwise specified in the order, a bank receiving 

an order under this section may continue to use the exemptions 

granted under § 1020.315 of this chapter prior to the receipt 

of the order, but may not grant additional exemptions. 

(4) For purposes of this section, the term geographic area 

means any area in one or more States of the United States, 

the District of Columbia, the Commonwealth of Puerto Rico, 

the United States Virgin Islands, Guam, the Commonwealth 

of the Northern Mariana Islands, American Samoa, the Trust 

Territory of the Pacific Islands, the territories and possessions 

of the United States, and/or political subdivision or 

subdivisions thereof, as specified in an order issued pursuant 

to paragraph (a) of this section. 

Note: §1010.370(a)–(d) was previously §103.26(a)–(d).

31 C.F.R. § 1010.410. Records to be made and 

retained by financial institutions. 

To be used for violations occurring on or after

March 1, 2011.

Each financial institution shall retain either the original or 

a microfilm or other copy or reproduction of each of the 

following:

(a) A record of each extension of credit in an amount in 

excess of $10,000, except an extension of credit secured by an 

interest in real property, which record shall contain the name 

and address of the person to whom the extension of credit is 

made, the amount thereof, the nature or purpose thereof, and 

the date thereof;

(b) A record of each advice, request, or instruction received 

or given regarding any transaction resulting (or intended to 

result and later canceled if such a record is normally made) in 

the transfer of currency or other monetary instruments, funds, 

checks, investment securities, or credit, of more than $10,000 to 

or from any person, account, or place outside the United States.

(c) A record of each advice, request, or instruction given to 

another financial institution or other person located within or 
Money Laundering Statutes • 73

31 C.F.R. § 1010.410

without the United States, regarding a transaction intended to 

result in the transfer of funds, or of currency, other monetary 

instruments, checks, investment securities, or credit, of 

more than $10,000 to a person, account or place outside the 

United States.

(d) A record of such information for such period of time as the 

Secretary may require in an order issued under § 1010.370(a), 

not to exceed five years.

(e) Nonbank financial institutions. Each agent, agency, 

branch, or office located within the United States of a financial 

institution other than a bank is subject to the requirements of 

this paragraph (e) with respect to a transmittal of funds in the 

amount of $3,000 or more:

(1) Recordkeeping requirements. 

(i) For each transmittal order that it accepts as a 

transmittor’s financial institution, a financial institution 

shall obtain and retain either the original or a microfilm, 

other copy, or electronic record of the following 

information relating to the transmittal order: 

(A) The name and address of the transmittor; 

(B) The amount of the transmittal order; 

(C) The execution date of the transmittal order; 

(D) Any payment instructions received from the 

transmittor with the transmittal order; 

(E) The identity of the recipient’s financial institution; 

(F) As many of the following items as are received 

with the transmittal order: 

(1) The name and address of the recipient; 

(2) The account number of the recipient; and 

(3) Any other specific identifier of the recipient; and 

(G) Any form relating to the transmittal of funds 

that is completed or signed by the person placing the 

transmittal order. 

(ii) For each transmittal order that it accepts as an 

intermediary financial institution, a financial institution 

shall retain either the original or a microfilm, other copy, 

or electronic record of the transmittal order. 

(iii) For each transmittal order that it accepts as a 

recipient’s financial institution, a financial institution shall 

retain either the original or a microfilm, other copy, or 

electronic record of the transmittal order. 

(2) Transmittors other than established customers. In the 

case of a transmittal order from a transmittor that is not an 

established customer, in addition to obtaining and retaining 

the information required in paragraph (e)(1)(i) of this section: 

(i) If the transmittal order is made in person, prior to 

acceptance the transmittor’s financial institution shall 

verify the identity of the person placing the transmittal 

order. If it accepts the transmittal order, the transmittor’s 

financial institution shall obtain and retain a record of the 

name and address, the type of identification reviewed, and 

the number of the identification document (e.g., driver’s 

license), as well as a record of the person’s taxpayer 

identification number (e.g., social security or employer 

identification number) or, if none, alien identification 

number or passport number and country of issuance, or a 

notation in the record of the lack thereof. If the transmittor’s 

financial institution has knowledge that the person placing 

the transmittal order is not the transmittor, the transmittor’s 

financial institution shall obtain and retain a record of the 

transmittor’s taxpayer identification number (e.g., social 

security or employer identification number) or, if none, 

alien identification number or passport number and country 

of issuance, if known by the person placing the order, or a 

notation in the record of the lack thereof. 

(ii) If the transmittal order accepted by the transmittor’s 

financial institution is not made in person, the transmittor’s 

financial institution shall obtain and retain a record of the 

name and address of the person placing the transmittal 

order, as well as the person’s taxpayer identification 

number (e.g., social security or employer identification 

number) or, if none, alien identification number or passport 

number and country of issuance, or a notation in the record 

of the lack thereof, and a copy or record of the method of 

payment (e.g., check or credit card transaction) for the 

transmittal of funds. If the transmittor’s financial institution 

has knowledge that the person placing the transmittal order 

is not the transmittor, the transmittor’s financial institution 

shall obtain and retain a record of the transmittor’s taxpayer 

identification number (e.g., social security or employer 

identification number) or, if none, alien identification 

number or passport number and country of issuance, if 

known by the person placing the order, or a notation in 

the record of the lack thereof. 

(3) Recipients other than established customers. For each 

transmittal order that it accepts as a recipient’s financial 

institution for a recipient that is not an established customer, 

in addition to obtaining and retaining the information required 

in paragraph (e)(1)(iii) of this section: 

(i) If the proceeds are delivered in person to the recipient 

or its representative or agent, the recipient’s financial 

institution shall verify the identity of the person receiving the 

proceeds and shall obtain and retain a record of the name and 

address, the type of identification reviewed, and the number 

of the identification document (e.g., driver’s license), as well 

as a record of the person’s taxpayer identification number 

(e.g., social security or employer identification number) or, 
74 • Money Laundering Statutes

31 C.F.R. § 1010.410 

if none, alien identification number or passport number and 

country of issuance, or a notation in the record of the lack 

thereof. If the recipient’s financial institution has knowledge 

that the person receiving the proceeds is not the recipient, 

the recipient’s financial institution shall obtain and retain 

a record of the recipient’s name and address, as well as 

the recipient’s taxpayer identification number (e.g., social 

security or employer identification number) or, if none, alien 

identification number or passport number and country of 

issuance, if known by the person receiving the proceeds, 

or a notation in the record of the lack thereof. 

(ii) If the proceeds are delivered other than in person, 

the recipient’s financial institution shall retain a copy of 

the check or other instrument used to effect payment, or 

the information contained thereon, as well as the name and 

address of the person to which it was sent. 

(4) Retrievability. The information that a transmittor’s 

financial institution must retain under paragraphs (e)(1)(i) and 

(e)(2) of this section shall be retrievable by the transmittor’s 

financial institution by reference to the name of the transmittor. 

If the transmittor is an established customer of the transmittor’s 

financial institution and has an account used for transmittals of 

funds, then the information also shall be retrievable by account 

number. The information that a recipient’s financial institution 

must retain under paragraphs (e)(1)(iii) and (e)(3) of this section 

shall be retrievable by the recipient’s financial institution by 

reference to the name of the recipient. If the recipient is an 

established customer of the recipient’s financial institution 

and has an account used for transmittals of funds, then the 

information also shall be retrievable by account number. This 

information need not be retained in any particular manner, so 

long as the financial institution is able to retrieve the information 

required by this paragraph, either by accessing transmittal of 

funds records directly or through reference to some other record 

maintained by the financial institution. 

(5) Verification. Where verification is required under 

paragraphs (e)(2) and (e)(3) of this section, a financial 

institution shall verify a person’s identity by examination of 

a document (other than a customer signature card), preferably 

one that contains the person’s name, address, and photograph, 

that is normally acceptable by financial institutions as a means 

of identification when cashing checks for persons other than 

established customers. Verification of the identity of an 

individual who indicates that he or she is an alien or is not a 

resident of the United States may be made by passport, alien 

identification card, or other official document evidencing 

nationality or residence (e.g., a foreign driver’s license with 

indication of home address). 

(6) Exceptions. The following transmittals of funds are not 

subject to the requirements of this section: 

(i) Transmittals of funds where the transmittor and the 

recipient are any of the following: 

(A) A bank; 

(B) A wholly-owned domestic subsidiary of a bank 

chartered in the United States; 

(C) A broker or dealer in securities; 

(D) A wholly-owned domestic subsidiary of a broker 

or dealer in securities; 

(E) A futures commission merchant or an introducing 

broker in commodities; 

(F) A wholly-owned domestic subsidiary of a futures 

commission merchant or an introducing broker in 

commodities; 

(G) The United States; 

(H) A state or local government; or 

(I) A Federal, State or local government agency or 

instrumentality; or 

(J) A mutual fund; and 

(ii) Transmittals of funds where both the transmittor 

and the recipient are the same person and the transmittor’s 

financial institution and the recipient’s financial institution 

are the same broker or dealer in securities. 

(f) Any transmittor’s financial institution or intermediary 

financial institution located within the United States shall 

include in any transmittal order for a transmittal of funds in 

the amount of $3,000 or more, information as required in 

this paragraph (f):

(1) A transmittor’s financial institution shall include in a 

transmittal order, at the time it is sent to a receiving financial 

institution, the following information: 

(i) The name and, if the payment is ordered from an 

account, the account number of the transmittor; 

(ii) The address of the transmittor, except for a 

transmittal order through Fedwire until such time as the 

bank that sends the order to the Federal Reserve Bank 

completes its conversion to the expanded Fedwire format; 

(iii) The amount of the transmittal order; 

(iv) The execution date of the transmittal order; 

(v) The identity of the recipient’s financial institution; 

(vi) As many of the following items as are received 

with the transmittal order: 

(A) The name and address of the recipient; 

(B) The account number of the recipient; 

(C) Any other specific identifier of the recipient; and 
Money Laundering Statutes • 75

31 C.F.R. § 1010.415

(vii) Either the name and address or numerical identifier 

of the transmittor’s financial institution. 

(2) A receiving financial institution that acts as an 

intermediary financial institution, if it accepts a transmittal 

order, shall include in a corresponding transmittal order at the 

time it is sent to the next receiving financial institution, the 

following information, if received from the sender: 

(i) The name and the account number of the transmittor; 

(ii) The address of the transmittor, except for a 

transmittal order through Fedwire until such time as the 

bank that sends the order to the Federal Reserve Bank 

completes its conversion to the expanded Fedwire format; 

(iii) The amount of the transmittal order; 

(iv) The execution date of the transmittal order; 

(v) The identity of the recipient’s financial institution; 

(vi) As many of the following items as are received 

with the transmittal order: 

(A) The name and address of the recipient; 

(B) The account number of the recipient; 

(C) Any other specific identifier of the recipient; and 

(vii) Either the name and address or numerical identifier 

of the transmittor’s financial institution. 

(3) Safe harbor for transmittals of funds prior to conversion 

to the expanded Fedwire message format. The following 

provisions apply to transmittals of funds effected through the 

Federal Reserve’s Fedwire funds transfer system or otherwise 

by a financial institution before the bank that sends the order 

to the Federal Reserve Bank or otherwise completes its 

conversion to the expanded Fedwire message format. 

(i) Transmittor’s financial institution. A transmittor’s 

financial institution will be deemed to be in compliance 

with the provisions of paragraph (f)(1) of this section if it: 

(A) Includes in the transmittal order, at the time 

it is sent to the receiving financial institution, the 

information specified in paragraphs (f)(1)(iii) through 

(v), and the information specified in paragraph (f)(1)

(vi) of this section to the extent that such information 

has been received by the financial institution, and 

(B) Provides the information specified in paragraphs 

(f)(1)(i), (ii) and (vii) of this section to a financial 

institution that acted as an intermediary financial 

institution or recipient’s financial institution in 

connection with the transmittal order, within a 

reasonable time after any such financial institution 

makes a request therefor in connection with the 

requesting financial institution’s receipt of a lawful 

request for such information from a Federal, State, or 

local law enforcement or financial regulatory agency, or 

in connection with the requesting financial institution’s 

own Bank Secrecy Act compliance program. 

(ii) Intermediary financial institution. An intermediary 

financial institution will be deemed to be in compliance 

with the provisions of paragraph (f)(2) of this section if it: 

(A) Includes in the transmittal order, at the time it is 

sent to the receiving financial institution, the information 

specified in paragraphs (f)(2)(iii) through (f)(2)(vi) of 

this section, to the extent that such information has been 

received by the intermediary financial institution; and 

(B) Provides the information specified in paragraphs 

(f)(2)(i), (ii) and (vii) of this section, to the extent that 

such information has been received by the intermediary 

financial institution, to a financial institution that acted 

as an intermediary financial institution or recipient’s 

financial institution in connection with the transmittal 

order, within a reasonable time after any such financial 

institution makes a request therefor in connection with 

the requesting financial institution’s receipt of a lawful 

request for such information from a Federal, State, 

or local law enforcement or regulatory agency, or in 

connection with the requesting financial institution’s 

own Bank Secrecy Act compliance program. 

(iii) Obligation of requesting financial institution. Any 

information requested under paragraph (f)(3)(i)(B) or (f)

(3)(ii)(B) of this section shall be treated by the requesting 

institution, once received, as if it had been included in the 

transmittal order to which such information relates. 

(4) Exceptions. The requirements of this paragraph (f) shall 

not apply to transmittals of funds that are listed in paragraph 

(e)(6) of this section or § 1020.410(a)(6) of this chapter.

Note: §1010.410(a)–(d) was previously §103.33(a)–(d). 

§1010.410(e) & (f) was previously §103.33(f) & (g).

31 C.F.R. § 1010.415. Purchases of bank 

checks and drafts, cashier’s checks, money 

orders and traveler’s checks. 

To be used for violations occurring on or after

March 1, 2011.

(a) No financial institution may issue or sell a bank check or 

draft, cashier’s check, money order or traveler’s check for 

$3,000 or more in currency unless it maintains records of 

the following information, which must be obtained for each 

issuance or sale of one or more of these instruments to any 

individual purchaser which involves currency in amounts of 

$3,000–$10,000 inclusive: 
76 • Money Laundering Statutes

31 C.F.R. § 1010.610 

(1) If the purchaser has a deposit account with the 

financial institution: 

(i)(A) The name of the purchaser; 

(B) The date of purchase; 

(C) The type(s) of instrument(s) purchased; 

(D) The serial number(s) of each of the instrument(s) 

purchased; and 

(E) The amount in dollars of each of the instrument(s) 

purchased. 

(ii) In addition, the financial institution must verify that 

the individual is a deposit accountholder or must verify the 

individual’s identity. Verification may be either through 

a signature card or other file or record at the financial 

institution provided the deposit accountholder’s name 

and address were verified previously and that information 

was recorded on the signature card or other file or record; 

or by examination of a document which is normally 

acceptable within the banking community as a means of 

identification when cashing checks for nondepositors and 

which contains the name and address of the purchaser. 

If the deposit accountholder’s identity has not been 

verified previously, the financial institution shall verify 

the deposit accountholder’s identity by examination of a 

document which is normally acceptable within the banking 

community as a means of identification when cashing 

checks for nondepositors and which contains the name 

and address of the purchaser, and shall record the specific 

identifying information (e.g., State of issuance and number 

of driver’s license). 

(2) If the purchaser does not have a deposit account with 

the financial institution: 

(i)(A) The name and address of the purchaser; 

(B) The social security number of the purchaser, or 

if the purchaser is an alien and does not have a social 

security number, the alien identification number; 

(C) The date of birth of the purchaser; 

(D) The date of purchase; 

(E) The type(s) of instrument(s) purchased; 

(F) The serial number(s) of the instrument(s) 

purchased; and 

(G) The amount in dollars of each of the instrument(s) 

purchased. 

(ii) In addition, the financial institution shall verify 

the purchaser’s name and address by examination of a 

document which is normally acceptable within the banking 

community as a means of identification when cashing 

checks for nondepositors and which contains the name 

and address of the purchaser, and shall record the specific 

identifying information (e.g., State of issuance and number 

of driver’s license). 

(b) Contemporaneous purchases of the same or different 

types of instruments totaling $3,000 or more shall be treated 

as one purchase. Multiple purchases during one business 

day totaling $3,000 or more shall be treated as one purchase 

if an individual employee, director, officer, or partner of the 

financial institution has knowledge that these purchases have 

occurred. 

(c) Records required to be kept shall be retained by the 

financial institution for a period of five years and shall be 

made available to the Secretary upon request at any time. 

Note: §1010.415(a)–(c) was previously §103.29(a)–(c).

31 C.F.R. § 1010.610. Due diligence programs 

for correspondent accounts for foreign 

financial institutions. 

To be used for violations occurring on or after

March 1, 2011.

(a) In general. A covered financial institution shall establish a 

due diligence program that includes appropriate, specific, riskbased, and, where necessary, enhanced policies, procedures, 

and controls that are reasonably designed to enable the 

covered financial institution to detect and report, on an 

ongoing basis, any known or suspected money laundering 

activity conducted through or involving any correspondent 

account established, maintained, administered, or managed 

by such covered financial institution in the United States for 

a foreign financial institution. The due diligence program 

required by this section shall be a part of the anti-money 

laundering program otherwise required by this chapter. Such 

policies, procedures, and controls shall include: 

(1) Determining whether any such correspondent account 

is subject to paragraph (b) of this section; 

(2) Assessing the money laundering risk presented by such 

correspondent account, based on a consideration of all relevant 

factors, which shall include, as appropriate: 

(i) The nature of the foreign financial institution’s 

business and the markets it serves; 

(ii) The type, purpose, and anticipated activity of such 

correspondent account; 

(iii) The nature and duration of the covered financial 

institution’s relationship with the foreign financial 

institution (and any of its affiliates); 
Money Laundering Statutes • 77

31 C.F.R. § 1010.610

(iv) The anti-money laundering and supervisory regime 

of the jurisdiction that issued the charter or license to 

the foreign financial institution, and, to the extent that 

information regarding such jurisdiction is reasonably 

available, of the jurisdiction in which any company that is 

an owner of the foreign financial institution is incorporated 

or chartered; and 

(v) Information known or reasonably available to the 

covered financial institution about the foreign financial 

institution’s anti-money laundering record; and 

(3) Applying risk-based procedures and controls to each 

such correspondent account reasonably designed to detect 

and report known or suspected money laundering activity, 

including a periodic review of the correspondent account 

activity sufficient to determine consistency with information 

obtained about the type, purpose, and anticipated activity of 

the account. 

(b) Enhanced due diligence for certain foreign banks. In the 

case of a correspondent account established, maintained, 

administered, or managed in the United States for a foreign 

bank described in paragraph (c) of this section, the due 

diligence program required by paragraph (a) of this section 

shall include enhanced due diligence procedures designed to 

ensure that the covered financial institution, at a minimum, 

takes reasonable steps to: 

(1) Conduct enhanced scrutiny of such correspondent 

account to guard against money laundering and to identify 

and report any suspicious transactions in accordance with 

applicable law and regulation. This enhanced scrutiny shall 

reflect the risk assessment of the account and shall include, 

as appropriate: 

(i) Obtaining and considering information relating to the 

foreign bank’s anti-money laundering program to assess 

the risk of money laundering presented by the foreign 

bank’s correspondent account; 

(ii) Monitoring transactions to, from, or through the 

correspondent account in a manner reasonably designed 

to detect money laundering and suspicious activity; and 

(iii)(A) Obtaining information from the foreign bank 

about the identity of any person with authority to direct 

transactions through any correspondent account that is a 

payable-through account, and the sources and beneficial 

owner of funds or other assets in the payable-through 

account. 

(B) For purposes of paragraph (b)(1)(iii)(A) of 

this section, a payable-through account means a 

correspondent account maintained by a covered 

financial institution for a foreign bank by means of 

which the foreign bank permits its customers to engage, 

either directly or through a subaccount, in banking 

activities usual in connection with the business of 

banking in the United States. 

(2) Determine whether the foreign bank for which the 

correspondent account is established or maintained in turn 

maintains correspondent accounts for other foreign banks 

that use the foreign correspondent account established or 

maintained by the covered financial institution and, if so, take 

reasonable steps to obtain information relevant to assess and 

mitigate money laundering risks associated with the foreign 

bank’s correspondent accounts for other foreign banks, 

including, as appropriate, the identity of those foreign banks. 

(3)(i) Determine, for any correspondent account established 

or maintained for a foreign bank whose shares are not publicly 

traded, the identity of each owner of the foreign bank and the 

nature and extent of each owner’s ownership interest. 

(ii) For purposes of paragraph (b)(3)(i) of this section: 

(A) Owner means any person who directly or 

indirectly owns, controls, or has the power to vote 10 

percent or more of any class of securities of a foreign 

bank. For purposes of this paragraph (b)(3)(ii)(A): 

(1) Members of the same family shall be 

considered to be one person; and 

(2) Same family has the meaning provided in § 

1010.605(j)(2)(ii). 

(B) Publicly traded means shares that are traded on 

an exchange or an organized over-the-counter market 

that is regulated by a foreign securities authority as 

defined in section 3(a)(50) of the Securities Exchange 

Act of 1934 (15 U.S.C. 78c(a)(50)). 

(c) Foreign banks to be accorded enhanced due diligence. The 

due diligence procedures described in paragraph (b) of this 

section are required for any correspondent account maintained 

for a foreign bank that operates under: 

(1) An offshore banking license; 

(2) A banking license issued by a foreign country that 

has been designated as non-cooperative with international 

anti-money laundering principles or procedures by an 

intergovernmental group or organization of which the United 

States is a member and with which designation the U.S. 

representative to the group or organization concurs; or 

(3) A banking license issued by a foreign country that 

has been designated by the Secretary as warranting special 

measures due to money laundering concerns. 

(d) Special procedures when due diligence or enhanced due 

diligence cannot be performed. The due diligence program 

required by paragraphs (a) and (b) of this section shall include 

procedures to be followed in circumstances in which a covered 

financial institution cannot perform appropriate due diligence 
78 • Money Laundering Statutes

31 C.F.R. § 1010.620 

or enhanced due diligence with respect to a correspondent 

account, including when the covered financial institution 

should refuse to open the account, suspend transaction activity, 

file a suspicious activity report, or close the account. 

(e) Applicability rules for general due diligence. The 

provisions of paragraph (a) of this section apply to covered 

financial institutions as follows: 

(1) General rules—

(i) Correspondent accounts established on or after 

July 5, 2006. Effective July 5, 2006, the requirements 

of paragraph (a) of this section shall apply to each 

correspondent account established on or after that date. 

(ii) Correspondent accounts established before July 

5, 2006. Effective October 2, 2006, the requirements 

of paragraph (a) of this section shall apply to each 

correspondent account established before July 5, 2006. 

(2) Special rules for certain banks. Until the requirements 

of paragraph (a) of this section become applicable as set 

forth in paragraph (e)(1) of this section, the due diligence 

requirements of 31 U.S.C. 5318(i)(1) shall continue to apply 

to any covered financial institution listed in § 1010.605(e)

(1)(i) through (vi). 

(3) Special rules for all other covered financial institutions. 

The due diligence requirements of 31 U.S.C. 5318(i)(1) 

shall not apply to a covered financial institution listed in 

§ 1010.605(e)(1)(vii) through (x) until the requirements of 

paragraph (a) of this section become applicable as set forth 

in paragraph (e)(1) of this section. 

(f) Applicability rules for enhanced due diligence. The 

provisions of paragraph (b) of this section apply to covered 

financial institutions as follows: 

(1) General rules—

(i) Correspondent accounts established on or after 

February 5, 2008. Effective February 5, 2008, the 

requirements of paragraph (b) of this section shall apply 

to each correspondent account established on or after 

such date. 

(ii) Correspondent accounts established before 

February 5, 2008. Effective May 5, 2008, the requirements 

of paragraph (b) of this section shall apply to each 

correspondent account established before February 5, 

2008. 

(2) Special rules for certain banks. Until the requirements 

of paragraph (b) of this section become applicable as set forth 

in paragraph (f)(1) of this section, the enhanced due diligence 

requirements of 31 U.S.C. 5318(i)(2) shall continue to apply 

to any covered financial institutions listed in § 1010.605(e)

(1)(i) through (vi). 

(3) Special rules for all other covered financial institutions. 

The enhanced due diligence requirements of 31 U.S.C. 5318(i)

(2) shall not apply to a covered financial institution listed in 

§ 1010.605(e)(1)(vii) through (x) until the requirements of 

paragraph (b) of this section become applicable, as set forth 

in paragraph (f)(1) of this section. 

(g) Exemptions—

(1) Exempt financial institutions. Except as provided in this 

section, a financial institution defined in 31 U.S.C. 5312(a)(2) 

or (c)(1), or § 1010.100(t) is exempt from the requirements of 

31 U.S.C. 5318(i)(1) and (i)(2) pertaining to correspondent 

accounts. 

(2) Other compliance obligations of financial institutions 

unaffected. Nothing in paragraph (g) of this section 

shall be construed to relieve a financial institution from 

its responsibility to comply with any other applicable 

requirement of law or regulation, including title 31, United 

States Code, and this chapter. 

Note: §1010.610(a)–(g) was previously §103.176(a)–(g).

31 C.F.R. § 1010.620. Due diligence programs 

for private banking accounts. 

To be used for violations occurring on or after

March 1, 2011.

(a) In general. A covered financial institution shall maintain a 

due diligence program that includes policies, procedures, and 

controls that are reasonably designed to detect and report any 

known or suspected money laundering or suspicious activity 

conducted through or involving any private banking account 

that is established, maintained, administered, or managed 

in the United States by such financial institution. The due 

diligence program required by this section shall be a part of 

the anti-money laundering program otherwise required by 

this chapter. 

(b) Minimum requirements. The due diligence program 

required by paragraph (a) of this section shall be designed 

to ensure, at a minimum, that the financial institution takes 

reasonable steps to: 

(1) Ascertain the identity of all nominal and beneficial 

owners of a private banking account; 

(2) Ascertain whether any person identified under 

paragraph (b)(1) of this section is a senior foreign political 

figure; 

(3) Ascertain the source(s) of funds deposited into a private 

banking account and the purpose and expected use of the 

account; and 
Money Laundering Statutes • 79

31 C.F.R. § 1020.100

(4) Review the activity of the account to ensure that it is 

consistent with the information obtained about the client’s 

source of funds, and with the stated purpose and expected 

use of the account, as needed to guard against money 

laundering, and to report, in accordance with applicable law 

and regulation, any known or suspected money laundering or 

suspicious activity conducted to, from, or through a private 

banking account. 

(c) Special requirements for senior foreign political figures. 

(1) In the case of a private banking account for which a 

senior foreign political figure is a nominal or beneficial owner, 

the due diligence program required by paragraph (a) of this 

section shall include enhanced scrutiny of such account that 

is reasonably designed to detect and report transactions that 

may involve the proceeds of foreign corruption. 

(2) For purposes of this paragraph (c), the term proceeds 

of foreign corruption means any asset or property that is 

acquired by, through, or on behalf of a senior foreign political 

figure through misappropriation, theft, or embezzlement of 

public funds, the unlawful conversion of property of a foreign 

government, or through acts of bribery or extortion, and shall 

include any other property into which any such assets have 

been transformed or converted. 

(d) Special procedures when due diligence cannot be performed. 

The due diligence program required by paragraph (a) of this 

section shall include procedures to be followed in circumstances 

in which a covered financial institution cannot perform 

appropriate due diligence with respect to a private banking 

account, including when the covered financial institution should 

refuse to open the account, suspend transaction activity, file a 

suspicious activity report, or close the account. 

(e) Applicability rules. The provisions of this section apply 

to covered financial institutions as follows: 

(1) General rules—

(i) Private banking accounts established on or after 

July 5, 2006. Effective July 5, 2006, the requirements of 

this section shall apply to each private banking account 

established on or after such date. 

(ii) Private banking accounts established before July 

5, 2006. Effective October 2, 2006, the requirements of 

this section shall apply to each private banking account 

established before July 5, 2006. 

(2) Special rules for certain banks and for brokers or dealers 

in securities, futures commission merchants, and introducing 

brokers. Until the requirements of this section become 

applicable as set forth in paragraph (e)(1) of this section, the 

requirements of 31 U.S.C. 5318(i)(3) shall continue to apply 

to a covered financial institution listed in § 1010.605(e)(1)(i) 

through (vi), (viii), or (ix). 

(3) Special rules for federally regulated trust banks or 

trust companies, and mutual funds. Until the requirements 

of this section become applicable as set forth in paragraph 

(e)(1) of this section, the requirements of 31 U.S.C. 5318(i)

(3) shall not apply to a covered financial institution listed in 

§ 1010.605(e)(1)(vii) or (x). 

(4) Exemptions—

(i) Exempt financial institutions. Except as provided 

in this section, a financial institution defined in 31 U.S.C. 

5312(a)(2) or (c)(1) or § 1010.100(t) is exempt from the 

requirements of 31 U.S.C. 5318(i)(3) pertaining to private 

banking accounts. 

(ii) Other compliance obligations of financial institutions 

unaffected. Nothing in paragraph (e)(4) of this section 

shall be construed to relieve a financial institution from 

its responsibility to comply with any other applicable 

requirement of law or regulation, including title 31, United 

States Code, and this chapter. 

Note: §1010.620(a)–(e) was previously §103.178(a)–(e).

31 C.F.R. § 1020.100. Definitions. 

To be used for violations occurring on or after

March 1, 2011.

Refer to § 1010.100 of this Chapter for general definitions 

not noted herein. To the extent there is a differing definition 

in § 1010.100 of this Chapter, the definition in this Section 

is what applies to Part 1020. Unless otherwise indicated, for 

purposes of this Part:

(a) Account. For purposes of § 1020.220:

(1) Account means a formal banking relationship 

established to provide or engage in services, dealings, or other 

financial transactions including a deposit account, a transaction 

or asset account, a credit account, or other extension of credit. 

Account also includes a relationship established to provide 

a safety deposit box or other safekeeping services, or cash 

management, custodian, and trust services. 

(2) Account does not include: 

(i) A product or service where a formal banking 

relationship is not established with a person, such as checkcashing, wire transfer, or sale of a check or money order; 

(ii) An account that the bank acquires through an 

acquisition, merger, purchase of assets, or assumption of 

liabilities; or 

(iii) An account opened for the purpose of participating 

in an employee benefit plan established under the 

Employee Retirement Income Security Act of 1974. 
80 • Money Laundering Statutes

31 C.F.R. § 1020.220 

(b) Bank. For the purposes of § 1020.220, means:

(1) A bank, as that term is defined in § 1010.100(d), that 

is subject to regulation by a Federal functional regulator; and 

(2) A credit union, private bank, and trust company, as set 

forth in § 1010.100(d) of this Chapter, that does not have a 

Federal functional regulator. 

(c) Customer. For the purposes of § 1020.220:

(1) Customer means: 

(i) A person that opens a new account; and 

(ii) An individual who opens a new account for: 

(A) An individual who lacks legal capacity, such 

as a minor; or 

(B) An entity that is not a legal person, such as a 

civic club. 

(2) Customer does not include: 

(i) A financial institution regulated by a Federal 

functional regulator or a bank regulated by a State bank 

regulator; 

(ii) A person described in § 1020.315(b)(2) through 

(b)(4); or 

(iii) A person that has an existing account with the bank, 

provided that the bank has a reasonable belief that it knows 

the true identity of the person. 

(d) Financial institution means:

(1) For the purposes of § 1020.210, a financial institution 

defined in 31 U.S.C. 5312(a)(2) or (c)(1) that is subject 

to regulation by a Federal functional regulator or a selfregulatory organization. 

(2) For the purposes of § 1020.220, financial institution is 

defined at 31 U.S.C. 5312(a)(2) and (c)(1).

Note: §1020.100(a) was previously §103.121(a)(1). 

§1020.100(b) was previously §103.121(a)(2). §1020.100(c) 

was previously §103.121(a)(3). §103.121(a)(4) was deleted. 

§1020.100(d)(2) was previously §103.121(a)(5).

This section was further amended on Feb. 25, 2011. The 

changes went into effect on March 1, 2011.

31 C.F.R. § 1020.220. Customer Identification 

Programs for banks, savings associations, 

credit unions, and certain non-Federally 

regulated banks. 

To be used for violations occurring on or after

March 1, 2011.

(a) Customer Identification Program: minimum requirements—

(1) In general. A bank must implement a written Customer 

Identification Program (CIP) appropriate for its size and 

type of business that, at a minimum, includes each of the 

requirements of paragraphs (a)(1) through (5) of this section. 

If a bank is required to have an anti-money laundering 

compliance program under the regulations implementing 31 

U.S.C. 5318(h), 12 U.S.C. 1818(s), or 12 U.S.C. 1786(q)(1), 

then the CIP must be a part of the anti-money laundering 

compliance program. Until such time as credit unions, private 

banks, and trust companies without a Federal functional 

regulator are subject to such a program, their CIPs must be 

approved by their boards of directors. 

(2) Identity verification procedures. The CIP must 

include risk-based procedures for verifying the identity of 

each customer to the extent reasonable and practicable. 

The procedures must enable the bank to form a reasonable 

belief that it knows the true identity of each customer. These 

procedures must be based on the bank’s assessment of the 

relevant risks, including those presented by the various types 

of accounts maintained by the bank, the various methods of 

opening accounts provided by the bank, the various types 

of identifying information available, and the bank’s size, 

location, and customer base. At a minimum, these procedures 

must contain the elements described in this paragraph (a)(2). 

(i) Customer information required— 

(A) In general. The CIP must contain procedures 

for opening an account that specify the identifying 

information that will be obtained from each customer. 

Except as permitted by paragraphs (a)(2)(i)(B) and (C) 

of this section, the bank must obtain, at a minimum, 

the following information from the customer prior to 

opening an account: 

(1) Name; 

(2) Date of birth, for an individual; 

(3) Address, which shall be: 

(i) For an individual, a residential or 

business street address; 

(ii) For an individual who does not have 

a residential or business street address, an 

Army Post Office (APO) or Fleet Post 
Money Laundering Statutes • 81

31 C.F.R. § 1020.220

Office (FPO) box number, or the residential 

or business street address of next of kin or 

of another contact individual; or 

(iii) For a person other than an individual 

(such as a corporation, partnership, or 

trust), a principal place of business, local 

office, or other physical location; and 

(4) Identification number, which shall be: 

(i) For a U.S. person, a taxpayer 

identification number; or 

(ii) For a non–U.S. person, one or more 

of the following: A taxpayer identification 

number; passport number and country of 

issuance; alien identification card number; 

or number and country of issuance of 

any other government-issued document 

evidencing nationality or residence and 

bearing a photograph or similar safeguard. 

Note to Paragraph(a)(2)(i)(A)(4 )(ii): 

When opening an account for a foreign 

business or enterprise that does not have 

an identification number, the bank must 

request alternative government-issued 

documentation certifying the existence of 

the business or enterprise. 

(B) Exception for persons applying for a taxpayer 

identification number. Instead of obtaining a taxpayer 

identification number from a customer prior to opening 

the account, the CIP may include procedures for 

opening an account for a customer that has applied for, 

but has not received, a taxpayer identification number. 

In this case, the CIP must include procedures to confirm 

that the application was filed before the customer opens 

the account and to obtain the taxpayer identification 

number within a reasonable period of time after the 

account is opened. 

(C) Credit card accounts. In connection with a 

customer who opens a credit card account, a bank may 

obtain the identifying information about a customer 

required under paragraph (a)(2)(i)(A) by acquiring it 

from a third-party source prior to extending credit to 

the customer. 

(ii) Customer verification. The CIP must contain 

procedures for verifying the identity of the customer, 

using information obtained in accordance with paragraph 

(a)(2)(i) of this section, within a reasonable time after the 

account is opened. The procedures must describe when 

the bank will use documents, non-documentary methods, 

or a combination of both methods as described in this 

paragraph (a)(2)(ii). 

(A) Verification through documents. For a bank 

relying on documents, the CIP must contain procedures 

that set forth the documents that the bank will use. These 

documents may include: 

(1) For an individual, unexpired governmentissued identification evidencing nationality or 

residence and bearing a photograph or similar 

safeguard, such as a driver’s license or passport; and 

(2) For a person other than an individual (such 

as a corporation, partnership, or trust), documents 

showing the existence of the entity, such as certified 

articles of incorporation, a government-issued 

business license, a partnership agreement, or trust 

instrument. 

(B) Verification through non-documentary methods. 

For a bank relying on non-documentary methods, the 

CIP must contain procedures that describe the nondocumentary methods the bank will use. 

(1) These methods may include contacting a 

customer; independently verifying the customer’s 

identity through the comparison of information 

provided by the customer with information obtained 

from a consumer reporting agency, public database, 

or other source; checking references with other 

financial institutions; and obtaining a financial 

statement. 

(2) The bank’s non-documentary procedures 

must address situations where an individual is 

unable to present an unexpired government-issued 

identification document that bears a photograph or 

similar safeguard; the bank is not familiar with the 

documents presented; the account is opened without 

obtaining documents; the customer opens the account 

without appearing in person at the bank; and where the 

bank is otherwise presented with circumstances that 

increase the risk that the bank will be unable to verify 

the true identity of a customer through documents. 

(C) Additional verification for certain customers. 

The CIP must address situations where, based on the 

bank’s risk assessment of a new account opened by a 

customer that is not an individual, the bank will obtain 

information about individuals with authority or control 

over such account, including signatories, in order to 

verify the customer’s identity. This verification method 

applies only when the bank cannot verify the customer’s 

true identity using the verification methods described in 

paragraphs (a)(2)(ii)(A) and (B) of this section. 

(iii) Lack of verification. The CIP must include 

procedures for responding to circumstances in which the 

bank cannot form a reasonable belief that it knows the true 

identity of a customer. These procedures should describe: 
82 • Money Laundering Statutes

31 C.F.R. § 1020.220 

(A) When the bank should not open an account; 

(B) The terms under which a customer may use an 

account while the bank attempts to verify the customer’s 

identity; 

(C) When the bank should close an account, after 

attempts to verify a customer’s identity have failed; and 

(D) When the bank should file a Suspicious 

Activity Report in accordance with applicable law and 

regulation. 

(3) Recordkeeping. The CIP must include procedures for 

making and maintaining a record of all information obtained 

under the procedures implementing paragraph (a) of this 

section. 

(i) Required records. At a minimum, the record must 

include: 

(A) All identifying information about a customer 

obtained under paragraph (a)(2)(i) of this section; 

(B) A description of any document that was relied on 

under paragraph (a)(2)(ii)(A) of this section noting the 

type of document, any identification number contained 

in the document, the place of issuance and, if any, the 

date of issuance and expiration date; 

(C) A description of the methods and the results of 

any measures undertaken to verify the identity of the 

customer under paragraph (a)(2)(ii)(B) or (C) of this 

section; and 

(D) A description of the resolution of any substantive 

discrepancy discovered when verifying the identifying 

information obtained. 

(ii) Retention of records. The bank must retain the 

information in paragraph (a)(3)(i)(A) of this section for 

five years after the date the account is closed or, in the 

case of credit card accounts, five years after the account 

is closed or becomes dormant. The bank must retain the 

information in paragraphs (a)(3)(i)(B), (C), and (D) of this 

section for five years after the record is made. 

(4) Comparison with government lists. The CIP must 

include procedures for determining whether the customer 

appears on any list of known or suspected terrorists or terrorist 

organizations issued by any Federal government agency 

and designated as such by Treasury in consultation with the 

Federal functional regulators. The procedures must require the 

bank to make such a determination within a reasonable period 

of time after the account is opened, or earlier, if required by 

another Federal law or regulation or Federal directive issued 

in connection with the applicable list. The procedures must 

also require the bank to follow all Federal directives issued 

in connection with such lists. 

(5)(i) Customer notice. The CIP must include procedures 

for providing bank customers with adequate notice that the 

bank is requesting information to verify their identities. 

(ii) Adequate notice. Notice is adequate if the bank 

generally describes the identification requirements of this 

section and provides the notice in a manner reasonably 

designed to ensure that a customer is able to view the 

notice, or is otherwise given notice, before opening an 

account. For example, depending upon the manner in 

which the account is opened, a bank may post a notice 

in the lobby or on its Web site, include the notice on its 

account applications, or use any other form of written or 

oral notice. 

(iii) Sample notice. If appropriate, a bank may use 

the following sample language to provide notice to its 

customers: 

Important Information About Procedures for Opening 

a New Account

To help the government fight the funding of terrorism 

and money laundering activities, Federal law requires 

all financial institutions to obtain, verify, and record 

information that identifies each person who opens an 

account. 

What this means for you: When you open an account, 

we will ask for your name, address, date of birth, and other 

information that will allow us to identify you. We may 

also ask to see your driver’s license or other identifying 

documents. 

(6) Reliance on another financial institution. The CIP may 

include procedures specifying when a bank will rely on the 

performance by another financial institution (including an 

affiliate) of any procedures of the bank’s CIP, with respect 

to any customer of the bank that is opening, or has opened, 

an account or has established a similar formal banking or 

business relationship with the other financial institution to 

provide or engage in services, dealings, or other financial 

transactions, provided that: 

(i) Such reliance is reasonable under the circumstances; 

(ii) The other financial institution is subject to a rule 

implementing 31 U.S.C. 5318(h) and is regulated by a 

Federal functional regulator; and 

(iii) The other financial institution enters into a contract 

requiring it to certify annually to the bank that it has 

implemented its anti-money laundering program, and that 

it will perform (or its agent will perform) the specified 

requirements of the bank’s CIP. 

(b) Exemptions. The appropriate Federal functional regulator, 

with the concurrence of the Secretary, may, by order or 

regulation, exempt any bank or type of account from the 
Money Laundering Statutes • 83

31 C.F.R. § 1020.315

requirements of this section. The Federal functional regulator 

and the Secretary shall consider whether the exemption is 

consistent with the purposes of the Bank Secrecy Act and with 

safe and sound banking, and may consider other appropriate 

factors. The Secretary will make these determinations for any 

bank or type of account that is not subject to the authority of 

a Federal functional regulator.

(c) Other requirements unaffected. Nothing in this section 

relieves a bank of its obligation to comply with any other 

provision in this chapter, including provisions concerning 

information that must be obtained, verified, or maintained in 

connection with any account or transaction.

Note: §1020.220(a)–(c) was previously §103.121(b)–(d).

This section was further amended on Feb. 25, 2011. The 

changes went into effect on March 1, 2011.

31 C.F.R. § 1020.315. Transactions of exempt 

persons. 

To be used for violations occurring on or after

March 1, 2011.

(a) General. No bank is required to file a report otherwise 

required by § 1010.311 with respect to any transaction in 

currency between an exempt person and such bank, or, to the 

extent provided in paragraph (e)(6) of this section, between 

such exempt person and other banks affiliated with such bank. 

(A limitation on the exemption described in this paragraph 

(a) is set forth in paragraph (f) of this section.)

(b) Exempt person. For purposes of this section, an exempt 

person is:

(1) A bank, to the extent of such bank’s domestic 

operations; 

(2) A department or agency of the United States, of any 

State, or of any political subdivision of any State; 

(3) Any entity established under the laws of the United 

States, of any State, or of any political subdivision of any 

State, or under an interstate compact between two or more 

States, that exercises governmental authority on behalf of 

the United States or any such State or political subdivision; 

(4) Any entity, other than a bank, whose common stock or 

analogous equity interests are listed on the New York Stock 

Exchange or the American Stock Exchange or whose common 

stock or analogous equity interests have been designated as a 

NASDAQ National Market Security listed on the NASDAQ 

Stock Market (except stock or interests listed under the 

separate “NASDAQ Capital Markets Companies” heading), 

provided that, for purposes of this paragraph (b)(4), a person 

that is a financial institution, other than a bank, is an exempt 

person only to the extent of its domestic operations; 

(5) Any subsidiary, other than a bank, of any entity 

described in paragraph (b)(4) of this section (a “listed entity”) 

that is organized under the laws of the United States or of 

any State and at least 51 percent of whose common stock 

or analogous equity interest is owned by the listed entity, 

provided that, for purposes of this paragraph (b)(5), a person 

that is a financial institution, other than a bank, is an exempt 

person only to the extent of its domestic operations; 

(6) To the extent of its domestic operations and only with 

respect to transactions conducted through its exemptible 

accounts, any other commercial enterprise (for purposes of 

this section, a “non-listed business”), other than an enterprise 

specified in paragraph (e)(8) of this section, that: 

(i) Maintains a transaction account, as defined in 

paragraph (e)(9) of this section, at the bank for at least 

two months, except as provided in paragraph (c)(2)(ii) of 

this section; 

(ii) Frequently engages in transactions in currency with 

the bank in excess of $10,000; and 

(iii) Is incorporated or organized under the laws of the 

United States or a State, or is registered as and eligible to 

do business within the United States or a State; or 

(7) With respect solely to withdrawals for payroll purposes 

from existing exemptible accounts, any other person (for 

purposes of this section, a “payroll customer”) that: 

(i) Maintains a transaction account, as defined in 

paragraph (e)(9) of this section, at the bank for at least 

two months, except as provided in paragraph (c)(2)(ii) of 

this section; 

(ii) Operates a firm that frequently withdraws more 

than $10,000 in order to pay its United States employees 

in currency; and 

(iii) Is incorporated or organized under the laws of the 

United States or a State, or is registered as and eligible to 

do business within the United States or a State. 

(c) Designation of certain exempt persons—

(1) General. Except as provided in paragraph (c)(2) of this 

section, a bank must designate an exempt person by filing 

FinCEN Form 110. Such designation must occur by the close 

of the 30–calendar day period beginning after the day of the 

first reportable transaction in currency with that person sought 

to be exempted from reporting under the terms of this section. 

The designation must be made separately by each bank that 

treats the customer as an exempt person, except as provided 

in paragraph (e)(6) of this section. 

(2) Special rules. 
84 • Money Laundering Statutes

31 C.F.R. § 1020.315 

(i) A bank is not required to file a FinCEN Form 110 

with respect to the transfer of currency to or from: 

(A) Any of the twelve Federal Reserve Banks; or 

(B) Any exempt person as described in paragraphs 

(b)(1) to (3) of this section. 

(ii) Notwithstanding subparagraphs (b)(6)(i) and (b)

(7)(i) of this section, and if the requirements under this 

section are otherwise satisfied, a bank may designate a 

non-listed business or a payroll customer, as described 

in paragraphs (b)(6) and (7) of this section, as an exempt 

person before the customer has maintained a transaction 

account at the bank for at least two months if the bank 

conducts and documents a risk-based assessment of the 

customer and forms a reasonable belief that the customer 

has a legitimate business purpose for conducting frequent 

transactions in currency. 

(d) Annual review. At least once each year, a bank must review 

the eligibility of an exempt person described in paragraphs 

(b)(4) to (7) of this section to determine whether such person 

remains eligible for an exemption. As part of its annual review, 

a bank must review the application of the monitoring system 

required to be maintained by paragraph (h)(2) of this section 

to each existing account of an exempt person described in 

paragraphs (b)(6) or (b)(7) of this section.

(e) Operating rules—

(1) General rule. Subject to the specific rules of this section, 

a bank must take such steps to assure itself that a person is an 

exempt person (within the meaning of the applicable provision 

of paragraph (b) of this section), to document the basis for its 

conclusions, and document its compliance, with the terms of 

this section, that a reasonable and prudent bank would take and 

document to protect itself from loan or other fraud or loss based 

on misidentification of a person’s status, and in the case of the 

monitoring system requirement set forth in paragraph (h)(2) 

of this section, such steps that a reasonable and prudent bank 

would take and document to identify suspicious transactions as 

required by paragraph (h)(2) of this section. 

(2) Governmental departments and agencies. A bank may 

treat a person as a governmental department, agency, or entity if 

the name of such person reasonably indicates that it is described 

in paragraph (b)(2) or (b)(3) of this section, or if such person is 

known generally in the community to be a State, the District of 

Columbia, a tribal government, a Territory or Insular Possession 

of the United States, or a political subdivision or a whollyowned agency or instrumentality of any of the foregoing. An 

entity generally exercises governmental authority on behalf of 

the United States, a State, or a political subdivision, for purposes 

of paragraph (b)(3) of this section, only if its authorities include 

one or more of the powers to tax, to exercise the authority of 

eminent domain, or to exercise police powers with respect to 

matters within its jurisdiction. Examples of entities that exercise 

governmental authority include, but are not limited to, the New 

Jersey Turnpike Authority and the Port Authority of New York 

and New Jersey. 

(3) Stock exchange listings. In determining whether a 

person is described in paragraph (b)(4) of this section, a bank 

may rely on any New York, American, or NASDAQ Stock 

Market listing published in a newspaper of general circulation, 

on any commonly accepted or published stock symbol guide, 

on any information contained in the Securities and Exchange 

Commission “EDGAR” System, or on any information 

contained on an Internet site or sites maintained by the New 

York Stock Exchange, the American Stock Exchange, or the 

NASDAQ. 

(4) Listed company subsidiaries. In determining whether 

a person is described in paragraph (b)(5) of this section, a 

bank may rely upon: 

(i) Any reasonably authenticated corporate officer’s 

certificate; 

(ii) Any reasonably authenticated photocopy of Internal 

Revenue Service Form 851 (Affiliation Schedule) or the 

equivalent thereof for the appropriate tax year; or 

(iii) A person’s Annual Report or Form 10–K, as filed in 

each case with the Securities and Exchange Commission. 

(5) Aggregated accounts. In determining the qualification 

of a customer as a non-listed business or a payroll customer, 

a bank may treat all exemptible accounts of the customer as a 

single account. If a bank elects to treat all exemptible accounts 

of a customer as a single account, the bank must continue 

to treat such accounts consistently as a single account for 

purposes of determining the qualification of the customer as 

a non-listed business or payroll customer. 

(6) Affiliated banks. The designation required by paragraph 

(c) of this section may be made by a parent bank holding 

company or one of its bank subsidiaries on behalf of all bank 

subsidiaries of the holding company, so long as the designation 

lists each bank subsidiary to which the designation shall apply. 

(7) Sole proprietorships. A sole proprietorship may be 

treated as a non-listed business if it otherwise meets the 

requirements of paragraph (b)(6) of this section, as applicable. 

In addition, a sole proprietorship may be treated as a payroll 

customer if it otherwise meets the requirements of paragraph 

(b)(7) of this section, as applicable. 

(8) Ineligible businesses. A business engaged primarily 

in one or more of the following activities may not be treated 

as a non-listed business for purposes of this section: Serving 

as financial institutions or agents of financial institutions of 

any type; purchase or sale to customers of motor vehicles of 

any kind, vessels, aircraft, farm equipment or mobile homes; 

the practice of law, accountancy, or medicine; auctioning of 

goods; chartering or operation of ships, buses, or aircraft; 
Money Laundering Statutes • 85

31 C.F.R. § 1020.315

gaming of any kind (other than licensed parimutuel betting 

at race tracks); investment advisory services or investment 

banking services; real estate brokerage; pawn brokerage; 

title insurance and real estate closing; trade union activities; 

and any other activities that may be specified by FinCEN. A 

business that engages in multiple business activities may be 

treated as a non-listed business so long as no more than 50% 

of its gross revenues are derived from one or more of the 

ineligible business activities listed in this paragraph (e)(8). 

(9) Exemptible accounts of a non-listed business or 

payroll customer. The exemptible accounts of a non-listed 

business or payroll customer include transaction accounts 

and money market deposit accounts. However, money market 

deposit accounts maintained other than in connection with 

a commercial enterprise are not exemptible accounts. A 

transaction account, for purposes of this section, is any account 

described in section 19(b)(1)(C) of the Federal Reserve Act, 

12 U.S.C. 461(b)(1)(C), and its implementing regulations (12 

CFR part 204). A money market deposit account, for purposes 

of this section, is any interest-bearing account that is described 

as a money market deposit account in 12 CFR 204.2(d)(2). 

(10) Documentation. The records maintained by a bank 

to document its compliance with and administration of the 

rules of this section shall be maintained in accordance with 

the provisions of § 1010.430. 

(f) Limitation on exemption. A transaction carried out by 

an exempt person as an agent for another person who is 

the beneficial owner of the funds that are the subject of a 

transaction in currency is not subject to the exemption from 

reporting contained in paragraph (a) of this section.

(g) Limitation on liability.

(1) No bank shall be subject to penalty under this chapter 

for failure to file a report required by § 1010.311 with respect 

to a transaction in currency by an exempt person with respect 

to which the requirements of this section have been satisfied, 

unless the bank: 

(i) Knowingly files false or incomplete information 

with respect to the transaction or the customer engaging 

in the transaction; or 

(ii) Has reason to believe that the customer does not 

meet the criteria established by this section for treatment 

of the transactor as an exempt person or that the transaction 

is not a transaction of the exempt person. 

(2) Subject to the specific terms of this section, and absent 

any specific knowledge of information indicating that a 

customer no longer meets the requirements of an exempt 

person, a bank satisfies the requirements of this section to the 

extent it continues to treat that customer as an exempt person 

until the completion of that customer’s next required periodic 

review, which as required by paragraph (d) of this section for 

an exempt person described in paragraph (b)(4) to (7) of this 

section, shall occur no less than once each year. 

(3) A bank that files a report with respect to a currency 

transaction by an exempt person rather than treating such 

person as exempt shall remain subject, with respect to each such 

report, to the rules for filing reports, and the penalties for filing 

false or incomplete reports that are applicable to reporting of 

transactions in currency by persons other than exempt persons. 

(h) Obligations to file suspicious activity reports and maintain 

system for monitoring transactions in currency.

(1) Nothing in this section relieves a bank of the obligation, 

or reduces in any way such bank’s obligation, to file a report 

required by § 1020.320 with respect to any transaction, 

including any transaction in currency that a bank knows, 

suspects, or has reason to suspect is a transaction or attempted 

transaction that is described in § 1020.320(a)(2)(i), (ii), or 

(iii), or relieves a bank of any reporting or recordkeeping 

obligation imposed by this chapter (except the obligation 

to report transactions in currency pursuant to this chapter 

to the extent provided in this section). Thus, for example, 

a sharp increase from one year to the next in the gross total 

of currency transactions made by an exempt customer, or 

similarly anomalous transactions trends or patterns, may 

trigger the obligation of a bank under § 1020.320. 

(2) Consistent with its annual review obligations under 

paragraph (d) of this section, a bank shall establish and maintain 

a monitoring system that is reasonably designed to detect, for 

each account of a non-listed business or payroll customer, 

those transactions in currency involving such account that 

would require a bank to file a suspicious transaction report. The 

statement in the preceding sentence with respect to accounts 

of non-listed business and payroll customers does not limit 

the obligation of banks generally to take the steps necessary 

to satisfy the terms of paragraph (h)(1) of this section and 

§ 1020.320 with respect to all exempt persons. 

(i) Revocation. Without any action on the part of the 

Department of the Treasury and subject to the limitation on 

liability contained in paragraph (g)(2) of this section:

(1) The status of an entity as an exempt person under 

paragraph (b)(4) of this section ceases once such entity ceases 

to be listed on the applicable stock exchange; and 

(2) The status of a subsidiary as an exempt person under 

paragraph (b)(5) of this section ceases once such subsidiary 

ceases to have at least 51 per cent of its common stock or 

analogous equity interest owned by a listed entity.

Note: §1020.315(a) was previously §103.22(d)(1) sentences 

1 and 3. §1021.315(b)–(i) was previously §103.22(d)(2)–(9).

This section was further amended on June 7, 2012. The 

changes went into effect on June 7, 2012.
86 • Money Laundering Statutes

31 C.F.R. § 1020.320 

31 C.F.R. § 1020.320. Reports by banks of 

suspicious transactions. 

To be used for violations occurring on or after

March 1, 2011.

(a) General.

(1) Every bank shall file with the Treasury Department, to 

the extent and in the manner required by this section, a report 

of any suspicious transaction relevant to a possible violation 

of law or regulation. A bank may also file with the Treasury 

Department by using the Suspicious Activity Report specified 

in paragraph (b)(1) of this section or otherwise, a report of 

any suspicious transaction that it believes is relevant to the 

possible violation of any law or regulation but whose reporting 

is not required by this section. 

(2) A transaction requires reporting under the terms of 

this section if it is conducted or attempted by, at, or through 

the bank, it involves or aggregates at least $5,000 in funds 

or other assets, and the bank knows, suspects, or has reason 

to suspect that: 

(i) The transaction involves funds derived from illegal 

activities or is intended or conducted in order to hide or 

disguise funds or assets derived from illegal activities 

(including, without limitation, the ownership, nature, 

source, location, or control of such funds or assets) as part 

of a plan to violate or evade any Federal law or regulation 

or to avoid any transaction reporting requirement under 

Federal law or regulation; 

(ii) The transaction is designed to evade any 

requirements of this chapter or of any other regulations 

promulgated under the Bank Secrecy Act; or 

(iii) The transaction has no business or apparent 

lawful purpose or is not the sort in which the particular 

customer would normally be expected to engage, 

and the bank knows of no reasonable explanation for 

the transaction after examining the available facts, 

including the background and possible purpose of the 

transaction. 

(b) Filing procedures—

(1) What to file. A suspicious transaction shall be reported 

by completing a Suspicious Activity Report (“SAR”), and 

collecting and maintaining supporting documentation as 

required by paragraph (d) of this section. 

(2) Where to file. The SAR shall be filed with FinCEN in 

a central location, to be determined by FinCEN, as indicated 

in the instructions to the SAR. 

(3) When to file. A bank is required to file a SAR no later 

than 30 calendar days after the date of initial detection by the 

bank of facts that may constitute a basis for filing a SAR. If 

no suspect was identified on the date of the detection of the 

incident requiring the filing, a bank may delay filing a SAR 

for an additional 30 calendar days to identify a suspect. In no 

case shall reporting be delayed more than 60 calendar days 

after the date of initial detection of a reportable transaction. 

In situations involving violations that require immediate 

attention, such as, for example, ongoing money laundering 

schemes, the bank shall immediately notify, by telephone, an 

appropriate law enforcement authority in addition to filing 

timely a SAR. 

(c) Exceptions. A bank is not required to file a SAR for a 

robbery or burglary committed or attempted that is reported to 

appropriate law enforcement authorities, or for lost, missing, 

counterfeit, or stolen securities with respect to which the 

bank files a report pursuant to the reporting requirements of 

17 CFR 240.17f–1.

(d) Retention of records. A bank shall maintain a copy of any 

SAR filed and the original or business record equivalent of 

any supporting documentation for a period of five years from 

the date of filing the SAR. Supporting documentation shall be 

identified, and maintained by the bank as such, and shall be 

deemed to have been filed with the SAR. A bank shall make 

all supporting documentation available to FinCEN or any 

Federal, State, or local law enforcement agency, or any Federal 

regulatory authority that examines the bank for compliance 

with the Bank Secrecy Act, or any State regulatory authority 

administering a State law that requires the bank to comply 

with the Bank Secrecy Act or otherwise authorizes the State 

authority to ensure that the institution complies with the Bank 

Secrecy Act, upon request.

(e) Confidentiality of SARs. A SAR, and any information that 

would reveal the existence of a SAR, are confidential and shall 

not be disclosed except as authorized in this paragraph (e). 

For purposes of this paragraph (e) only, a SAR shall include 

any suspicious activity report filed with FinCEN pursuant to 

any regulation in this chapter.

(1) Prohibition on disclosures by banks— 

(i) General rule. No bank, and no director, officer, 

employee, or agent of any bank, shall disclose a SAR or 

any information that would reveal the existence of a SAR. 

Any bank, and any director, officer, employee, or agent 

of any bank that is subpoenaed or otherwise requested to 

disclose a SAR or any information that would reveal the 

existence of a SAR, shall decline to produce the SAR or 

such information, citing this section and 31 U.S.C. 5318(g)

(2)(A)(i), and shall notify FinCEN of any such request and 

the response thereto. 

(ii) Rules of Construction. Provided that no person 

involved in any reported suspicious transaction is notified 
Money Laundering Statutes • 87

31 C.F.R. § 1020.410

that the transaction has been reported, this paragraph (e)

(1) shall not be construed as prohibiting: 

(A) The disclosure by a bank, or any director, officer, 

employee, or agent of a bank, of: 

(1) A SAR, or any information that would 

reveal the existence of a SAR, to FinCEN or any 

Federal, State, or local law enforcement agency, or 

any Federal regulatory authority that examines the 

bank for compliance with the Bank Secrecy Act, 

or any State regulatory authority administering a 

State law that requires the bank to comply with the 

Bank Secrecy Act or otherwise authorizes the State 

authority to ensure that the bank complies with the 

Bank Secrecy Act; or 

(2) The underlying facts, transactions, and 

documents upon which a SAR is based, including 

but not limited to, disclosures: 

(i) To another financial institution, or 

any director, officer, employee, or agent of 

a financial institution, for the preparation 

of a joint SAR; or 

(ii) In connection with certain 

employment references or termination 

notices, to the full extent authorized in 31 

U.S.C. 5318(g)(2)(B); or 

(B) The sharing by a bank, or any director, officer, 

employee, or agent of the bank, of a SAR, or any 

information that would reveal the existence of a SAR, 

within the bank’s corporate organizational structure for 

purposes consistent with Title II of the Bank Secrecy 

Act as determined by regulation or in guidance. 

(2) Prohibition on disclosures by government authorities. 

A Federal, State, local, territorial, or Tribal government 

authority, or any director, officer, employee, or agent of any 

of the foregoing, shall not disclose a SAR, or any information 

that would reveal the existence of a SAR, except as necessary 

to fulfill official duties consistent with Title II of the Bank 

Secrecy Act. For purposes of this section, “official duties” 

shall not include the disclosure of a SAR, or any information 

that would reveal the existence of a SAR, in response to a 

request for disclosure of non-public information or a request 

for use in a private legal proceeding, including a request 

pursuant to 31 CFR 1.11. 

(f) Limitation on liability. A bank, and any director, officer, 

employee, or agent of any bank, that makes a voluntary 

disclosure of any possible violation of law or regulation to 

a government agency or makes a disclosure pursuant to this 

section or any other authority, including a disclosure made 

jointly with another institution, shall be protected from 

liability to any person for any such disclosure, or for failure 

to provide notice of such disclosure to any person identified 

in the disclosure, or both, to the full extent provided by 31 

U.S.C. 5318(g)(3).

(g) Compliance. Banks shall be examined by FinCEN or its 

delegatees for compliance with this section. Failure to satisfy 

the requirements of this section may be a violation of the Bank 

Secrecy Act and of this chapter. Such failure may also violate 

provisions of Title 12 of the Code of Federal Regulations.

Note: §1020.320(a)–(f) was previously § 103.18(a)–(f).

This section was further amended on Feb. 25, 2011. The 

changes went into effect on March 1, 2011.

31 C.F.R. § 1020.410. Records to be made and 

retained by banks. 

To be used for violations occurring on or after

March 1, 2011.

(a) Each agent, agency, branch, or office located within the 

United States of a bank is subject to the requirements of this 

paragraph (a) with respect to a funds transfer in the amount 

of $3,000 or more, and is required to retain either the original 

or a microfilm or other copy or reproduction of each of the 

following:

(1) Recordkeeping requirements. 

(i) For each payment order that it accepts as an 

originator’s bank, a bank shall obtain and retain either the 

original or a microfilm, other copy, or electronic record of 

the following information relating to the payment order: 

(A) The name and address of the originator; 

(B) The amount of the payment order; 

(C) The execution date of the payment order; 

(D) Any payment instructions received from the 

originator with the payment order; 

(E) The identity of the beneficiary’s bank; and 

(F) As many of the following items as are received 

with the payment order: 

(1) The name and address of the beneficiary; 

(2) The account number of the beneficiary; and 

(3) Any other specific identifier of the beneficiary. 

(ii) For each payment order that 

it accepts as an intermediary bank, a 

bank shall retain either the original or a 

microfilm, other copy, or electronic record 

of the payment order. 
88 • Money Laundering Statutes

31 C.F.R. § 1020.410 

(iii) For each payment order that it 

accepts as a beneficiary’s bank, a bank shall 

retain either the original or a microfilm, 

other copy, or electronic record of the 

payment order. 

(2) Originators other than established customers. In the 

case of a payment order from an originator that is not an 

established customer, in addition to obtaining and retaining 

the information required in paragraph (a)(1)(i) of this section: 

(i) If the payment order is made in person, prior to 

acceptance the originator’s bank shall verify the identity 

of the person placing the payment order. If it accepts 

the payment order, the originator’s bank shall obtain 

and retain a record of the name and address, the type of 

identification reviewed, the number of the identification 

document (e.g., driver’s license), as well as a record of 

the person’s taxpayer identification number (e.g., social 

security or employer identification number) or, if none, 

alien identification number or passport number and 

country of issuance, or a notation in the record of the lack 

thereof. If the originator’s bank has knowledge that the 

person placing the payment order is not the originator, the 

originator’s bank shall obtain and retain a record of the 

originator’s taxpayer identification number (e.g., social 

security or employer identification number) or, if none, 

alien identification number or passport number and country 

of issuance, if known by the person placing the order, or a 

notation in the record of the lack thereof. 

(ii) If the payment order accepted by the originator’s 

bank is not made in person, the originator’s bank shall 

obtain and retain a record of name and address of 

the person placing the payment order, as well as the 

person’s taxpayer identification number (e.g., social 

security or employer identification number) or, if 

none, alien identification number or passport number 

and country of issuance, or a notation in the record of 

the lack thereof, and a copy or record of the method of 

payment (e.g., check or credit card transaction) for the 

funds transfer. If the originator’s bank has knowledge 

that the person placing the payment order is not the 

originator, the originator’s bank shall obtain and retain 

a record of the originator’s taxpayer identification 

number (e.g., social security or employer identification 

number) or, if none, alien identification number or 

passport number and country of issuance, if known by 

the person placing the order, or a notation in the record 

of the lack thereof. 

(3) Beneficiaries other than established customers. For 

each payment order that it accepts as a beneficiary’s bank for 

a beneficiary that is not an established customer, in addition to 

obtaining and retaining the information required in paragraph 

(a)(1)(iii) of this section: 

(i) If the proceeds are delivered in person to the 

beneficiary or its representative or agent, the beneficiary’s 

bank shall verify the identity of the person receiving the 

proceeds and shall obtain and retain a record of the name 

and address, the type of identification reviewed, and the 

number of the identification document (e.g., driver’s 

license), as well as a record of the person’s taxpayer 

identification number (e.g., social security or employer 

identification number) or, if none, alien identification 

number or passport number and country of issuance, or a 

notation in the record of the lack thereof. If the beneficiary’s 

bank has knowledge that the person receiving the proceeds 

is not the beneficiary, the beneficiary’s bank shall obtain 

and retain a record of the beneficiary’s name and address, 

as well as the beneficiary’s taxpayer identification number 

(e.g., social security or employer identification number) 

or, if none, alien identification number or passport number 

and country of issuance, if known by the person receiving 

the proceeds, or a notation in the record of the lack thereof. 

(ii) If the proceeds are delivered other than in person, 

the beneficiary’s bank shall retain a copy of the check or 

other instrument used to effect payment, or the information 

contained thereon, as well as the name and address of the 

person to which it was sent. 

(4) Retrievability. The information that an originator’s bank 

must retain under paragraphs (a)(1)(i) and (a)(2) of this section 

shall be retrievable by the originator’s bank by reference to 

the name of the originator. If the originator is an established 

customer of the originator’s bank and has an account used for 

funds transfers, then the information also shall be retrievable 

by account number. The information that a beneficiary’s 

bank must retain under paragraphs (a)(1)(iii) and (a)(3) of 

this section shall be retrievable by the beneficiary’s bank by 

reference to the name of the beneficiary. If the beneficiary is 

an established customer of the beneficiary’s bank and has an 

account used for funds transfers, then the information also 

shall be retrievable by account number. This information need 

not be retained in any particular manner, so long as the bank 

is able to retrieve the information required by this paragraph, 

either by accessing funds transfer records directly or through 

reference to some other record maintained by the bank. 

(5) Verification. Where verification is required under 

paragraphs (a)(2) and (a)(3) of this section, a bank shall verify 

a person’s identity by examination of a document (other than a 

bank signature card), preferably one that contains the person’s 

name, address, and photograph, that is normally acceptable 

by financial institutions as a means of identification when 

cashing checks for persons other than established customers. 

Verification of the identity of an individual who indicates that 

he or she is an alien or is not a resident of the United States 

may be made by passport, alien identification card, or other 
Money Laundering Statutes • 89

31 C.F.R. § 1020.410

official document evidencing nationality or residence (e.g., 

a foreign driver’s license with indication of home address). 

(6) Exceptions. The following funds transfers are not 

subject to the requirements of this section: 

(i) Funds transfers where the originator and beneficiary 

are any of the following: 

(A) A bank; 

(B) A wholly owned domestic subsidiary of a bank 

chartered in the United States; 

(C) A broker or dealer in securities; 

(D) A wholly owned domestic subsidiary of a broker 

or dealer in securities; 

(E) A futures commission merchant or an introducing 

broker in commodities; 

(F) A wholly owned domestic subsidiary of a futures 

commission merchant or an introducing broker in 

commodities; 

(G) The United States; 

(H) A state or local government; 

(I) A Federal, State or local government agency or 

instrumentality; or 

(J) A mutual fund; and 

(ii) Funds transfers where both the originator and the 

beneficiary are the same person and the originator’s bank 

and the beneficiary’s bank are the same bank. 

(b)(1) With respect to each certificate of deposit sold or 

redeemed after May 31, 1978, and before October 1, 2003, or 

each deposit or share account opened with a bank after June 

30, 1972, and before October 1, 2003, a bank shall, within 

30 days from the date such a transaction occurs or an account 

is opened, secure and maintain a record of the taxpayer 

identification number of the customer involved; or where the 

account or certificate is in the names of two or more persons, 

the bank shall secure the taxpayer identification number of a 

person having a financial interest in the certificate or account. 

In the event that a bank has been unable to secure, within the 

30–day period specified, the required identification, it shall 

nevertheless not be deemed to be in violation of this section 

if it has made a reasonable effort to secure such identification, 

and it maintains a list containing the names, addresses, and 

account numbers of those persons from whom it has been 

unable to secure such identification, and makes the names, 

addresses, and account numbers of those persons available to 

the Secretary as directed by him. A bank acting as an agent for 

another person in the purchase or redemption of a certificate 

of deposit issued by another bank is responsible for obtaining 

and recording the required taxpayer identification, as well 

as for maintaining the records referred to in paragraphs (c)

(11) and (12) of this section. The issuing bank can satisfy the 

recordkeeping requirement by recording the name and address 

of the agent together with a description of the instrument and 

the date of the transaction. Where a person is a non-resident 

alien, the bank shall also record the person’s passport number 

or a description of some other government document used to 

verify his identity.

(2) The 30–day period provided for in paragraph (b)(1) 

of this section shall be extended where the person opening 

the account has applied for a taxpayer identification or social 

security number on Form SS–4 or SS–5, until such time as 

the person maintaining the account has had a reasonable 

opportunity to secure such number and furnish it to the bank. 

(3) A taxpayer identification number required under 

paragraph (b)(1) of this section need not be secured for 

accounts or transactions with the following: 

(i) Agencies and instrumentalities of Federal, State, 

local or foreign governments; 

(ii) Judges, public officials, or clerks of courts of record 

as custodians of funds in controversy or under the control 

of the court; 

(iii) Aliens who are ambassadors, ministers, career 

diplomatic or consular officers, or naval, military or other 

attaches of foreign embassies and legations, and for the 

members of their immediate families; 

(iv) Aliens who are accredited representatives of 

international organizations which are entitled to enjoy 

privileges, exemptions and immunities as an international 

organization under the International Organization 

Immunities Act of December 29, 1945 (22 U.S.C. 288), 

and the members of their immediate families; 

(v) Aliens temporarily residing in the United States for 

a period not to exceed 180 days; 

(vi) Aliens not engaged in a trade or business in the 

United States who are attending a recognized college 

or university or any training program, supervised or 

conducted by any agency of the Federal Government; 

(vii) Unincorporated subordinate units of a tax exempt 

central organization which are covered by a group 

exemption letter, 

(viii) A person under 18 years of age with respect to an 

account opened as a part of a school thrift savings program, 

provided the annual interest is less than $10; 

(ix) A person opening a Christmas club, vacation club 

and similar installment savings programs, provided the 

annual interest is less than $10; and 
90 • Money Laundering Statutes

31 C.F.R. § 1020.410 

(x) Non-resident aliens who are not engaged in a trade 

or business in the United States. 

(4) In instances described in paragraphs (b)(3)(viii) and 

(ix) of this section, the bank shall, within 15 days following 

the end of any calendar year in which the interest accrued 

in that year is $10 or more use its best effort to secure and 

maintain the appropriate taxpayer identification number or 

application form therefor. 

(5) The rules and regulations issued by the Internal 

Revenue Service under section 6109 of the Internal Revenue 

Code of 1954 shall determine what constitutes a taxpayer 

identification number and whose number shall be obtained 

in the case of an account maintained by one or more persons. 

(c) Each bank shall, in addition, retain either the original 

or a microfilm or other copy or reproduction of each of the 

following:

(1) Each document granting signature authority over each 

deposit or share account, including any notations, if such are 

normally made, of specific identifying information verifying 

the identity of the signer (such as a driver’s license number 

or credit card number); 

(2) Each statement, ledger card or other record on each 

deposit or share account, showing each transaction in, or with 

respect to, that account; 

(3) Each check, clean draft, or money order drawn on the 

bank or issued and payable by it, except those drawn for $100 

or less or those drawn on accounts which can be expected to 

have drawn on them an average of at least 100 checks per 

month over the calendar year or on each occasion on which 

such checks are issued, and which are: 

(i) Dividend checks, 

(ii) Payroll checks, 

(iii) Employee benefit checks, 

(iv) Insurance claim checks, 

(v) Medical benefit checks, 

(vi) Checks drawn on government agency accounts, 

(vii) Checks drawn by brokers or dealers in securities, 

(viii) Checks drawn on fiduciary accounts, 

(ix) Checks drawn on other financial institutions, or 

(x) Pension or annuity checks; 

(4) Each item in excess of $100 (other than bank charges 

or periodic charges made pursuant to agreement with the 

customer), comprising a debit to a customer’s deposit or 

share account, not required to be kept, and not specifically 

exempted, under paragraph (c)(3) of this section; 

(5) Each item, including checks, drafts, or transfers of 

credit, of more than $10,000 remitted or transferred to a 

person, account or place outside the United States; 

(6) A record of each remittance or transfer of funds, or of 

currency, other monetary instruments, checks, investment 

securities, or credit, of more than $10,000 to a person, account 

or place outside the United States; 

(7) Each check or draft in an amount in excess of $10,000 

drawn on or issued by a foreign bank which the domestic 

bank has paid or presented to a nonbank drawee for payment; 

(8) Each item, including checks, drafts or transfers of 

credit, of more than $10,000 received directly and not through 

a domestic financial institution, by letter, cable or any other 

means, from a bank, broker or dealer in foreign exchange 

outside the United States; 

(9) A record of each receipt of currency, other monetary 

instruments, investment securities or checks, and of each 

transfer of funds or credit, of more than $10,000 received on 

any one occasion directly and not through a domestic financial 

institution, from a bank, broker or dealer in foreign exchange 

outside the United States; and 

(10) Records prepared or received by a bank in the ordinary 

course of business, which would be needed to reconstruct a 

transaction account and to trace a check in excess of $100 

deposited in such account through its domestic processing 

system or to supply a description of a deposited check in 

excess of $100. This subparagraph shall be applicable only 

with respect to demand deposits. 

(11) A record containing the name, address, and taxpayer 

identification number as determined under section 6109 of the 

Internal Revenue Code of 1986, if available, of the purchaser 

of each certificate of deposit, as well as a description of the 

instrument, a notation of the method of payment, and the date 

of the transaction. 

(12) A record containing the name, address and taxpayer 

identification number as determined under section 6109 of the 

Internal Revenue Code of 1986, if available, of any person 

presenting a certificate of deposit for payment, as well as a 

description of the instrument and the date of the transaction. 

(13) Each deposit slip or credit ticket reflecting a 

transaction in excess of $100 or the equivalent record for direct 

deposit or other wire transfer deposit transactions. The slip 

or ticket shall record the amount of any currency involved.

Note: §1020.410(a) was previously §103.33(e).

This section was further amended on Feb. 25, 2011. The 

changes went into effect on March 1, 2011.
Money Laundering Statutes • 91

31 C.F.R. § 1021.313

31 C.F.R. § 1021.311. Filing obligations.

To be used for violations occurring on or after

March 1, 2011.

Each casino shall file a report of each transaction in currency, 

involving either cash in or cash out, of more than $10,000.

(a) Transactions in currency involving cash in include, but 

are not limited to:

(1) Purchases of chips, tokens, and other gaming instruments; 

(2) Front money deposits; 

(3) Safekeeping deposits; 

(4) Payments on any form of credit, including markers 

and counter checks; 

(5) Bets of currency, including money plays; 

(6) Currency received by a casino for transmittal of funds 

through wire transfer for a customer; 

(7) Purchases of a casino’s check; 

(8) Exchanges of currency for currency, including foreign 

currency; and 

(9) Bills inserted into electronic gaming devices. 

(b) Transactions in currency involving cash out include, but 

are not limited to:

(1) Redemptions of chips, tokens, tickets, and other gaming 

instruments; 

(2) Front money withdrawals; 

(3) Safekeeping withdrawals; 

(4) Advances on any form of credit, including markers 

and counter checks; 

(5) Payments on bets; 

(6) Payments by a casino to a customer based on receipt 

of funds through wire transfers; 

(7) Cashing of checks or other negotiable instruments; 

(8) Exchanges of currency for currency, including foreign 

currency; 

(9) Travel and complimentary expenses and gaming 

incentives; and 

(10) Payment for tournament, contests, and other promotions. 

(c) Other provisions of this chapter notwithstanding, casinos 

are exempted from the reporting obligations found in this 

section and § 1021.313 for the following transactions in 

currency or currency transactions:

(1) Transactions between a casino and a dealer in foreign 

exchange, or between a casino and a check casher, as those 

terms are defined in § 1010.100(ff) of this Chapter, so long 

as such transactions are conducted pursuant to a contractual 

or other arrangement with a casino covering the financial 

services in paragraphs (a)(8), (b)(7), and (b)(8) of this section; 

(2) Cash out transactions to the extent the currency is 

won in a money play and is the same currency the customer 

wagered in the money play, or cash in transactions to the extent 

the currency is the same currency the customer previously 

wagered in a money play on the same table game without 

leaving the table; 

(3) Bills inserted into electronic gaming devices in multiple 

transactions (unless a casino has knowledge pursuant to § 

1021.313 in which case this exemption would not apply); and 

(4) Jackpots from slot machines or video lottery terminals.

Note: §1021.311(a)–(c) was previously §103.22(b)(2)(i)–(iii).

This section was further amended on July 21, 2011. The 

changes went into effect on Sept. 19, 2011.

31 C.F.R. § 1021.313. Aggregation. 

To be used for violations occurring on or after

March 1, 2011.

In the case of a casino, multiple currency transactions shall be 

treated as a single transaction if the casino has knowledge that 

they are by or on behalf of any person and result in either cash 

in or cash out totaling more than $10,000 during any gaming 

day. For purposes of this section, a casino shall be deemed to 

have the knowledge described in the preceding sentence, if: 

Any sole proprietor, partner, officer, director, or employee of 

the casino, acting within the scope of his or her employment, 

has knowledge that such multiple currency transactions have 

occurred, including knowledge from examining the books, 

records, logs, information retained on magnetic disk, tape 

or other machine-readable media, or in any manual system, 

and similar documents and information, which the casino 

maintains pursuant to any law or regulation or within the 

ordinary course of its business, and which contain information 

that such multiple currency transactions have occurred.

Note: §1021.313 was previously §103.22(c)(3).

This section was further amended on Feb. 25, 2011. The 

changes went into effect on March 1, 2011.
92 • Money Laundering Statutes

31 C.F.R. § 1021.320 

31 C.F.R. § 1021.320. Reports by casinos of 

suspicious transactions. 

To be used for violations occurring on or after

March 1, 2011.

(a) General.

(1) Every casino shall file with FinCEN, to the extent 

and in the manner required by this section, a report of any 

suspicious transaction relevant to a possible violation of law or 

regulation. A casino may also file with FinCEN, by using the 

form specified in paragraph (b)(1) of this section, or otherwise, 

a report of any suspicious transaction that it believes is relevant 

to the possible violation of any law or regulation but whose 

reporting is not required by this section. 

(2) A transaction requires reporting under the terms of 

this section if it is conducted or attempted by, at, or through 

a casino, and involves or aggregates at least $5,000 in funds 

or other assets, and the casino knows, suspects, or has reason 

to suspect that the transaction (or a pattern of transactions of 

which the transaction is a part): 

(i) Involves funds derived from illegal activity or is 

intended or conducted in order to hide or disguise funds 

or assets derived from illegal activity (including, without 

limitation, the ownership, nature, source, location, or 

control of such funds or assets) as part of a plan to violate 

or evade any Federal law or regulation or to avoid any 

transaction reporting requirement under Federal law or 

regulation; 

(ii) Is designed, whether through structuring or other 

means, to evade any requirements of this chapter or of any 

other regulations promulgated under the Bank Secrecy Act; 

(iii) Has no business or apparent lawful purpose or 

is not the sort in which the particular customer would 

normally be expected to engage, and the casino knows 

of no reasonable explanation for the transaction after 

examining the available facts, including the background 

and possible purpose of the transaction; or 

(iv) Involves use of the casino to facilitate criminal 

activity. 

(b) Filing procedures—

(1) What to file. A suspicious transaction shall be reported 

by completing a Suspicious Activity Report by Casinos 

(“SARC”), and collecting and maintaining supporting 

documentation as required by paragraph (d) of this section. 

(2) Where to file. The SARC shall be filed with FinCEN in 

a central location, to be determined by FinCEN, as indicated 

in the instructions to the SARC. 

(3) When to file. A SARC shall be filed no later than 30 

calendar days after the date of the initial detection by the 

casino of facts that may constitute a basis for filing a SARC 

under this section. If no suspect is identified on the date of 

such initial detection, a casino may delay filing a SARC for an 

additional 30 calendar days to identify a suspect, but in no case 

shall reporting be delayed more than 60 calendar days after the 

date of such initial detection. In situations involving violations 

that require immediate attention, such as ongoing money 

laundering schemes, the casino shall immediately notify 

by telephone an appropriate law enforcement authority in 

addition to filing timely a SARC. Casinos wishing voluntarily 

to report suspicious transactions that may relate to terrorist 

activity may call FinCEN’s Financial Institutions Hotline 

at 1–866–556–3974 in addition to filing timely a SARC if 

required by this section. 

(c) Exceptions. A casino is not required to file a SARC for a 

robbery or burglary committed or attempted that is reported 

to appropriate law enforcement authorities.

(d) Retention of records. A casino shall maintain a copy of any 

SARC filed and the original or business record equivalent of 

any supporting documentation for a period of five years from 

the date of filing the SARC. Supporting documentation shall 

be identified as such and maintained by the casino, and shall 

be deemed to have been filed with the SARC. A casino shall 

make all supporting documentation available to FinCEN or 

any Federal, State, or local law enforcement agency, or any 

Federal regulatory authority that examines the casino for 

compliance with the Bank Secrecy Act, or any State regulatory 

authority administering a State law that requires the casino to 

comply with the Bank Secrecy Act or otherwise authorizes 

the State authority to ensure that the casino complies with 

the Bank Secrecy Act, or any tribal regulatory authority 

administering a tribal law that requires the casino to comply 

with the Bank Secrecy Act or otherwise authorizes the tribal 

regulatory authority to ensure that the casino complies with 

the Bank Secrecy Act, upon request.

(e) Confidentiality of SARs. A SAR, and any information that 

would reveal the existence of a SAR, are confidential and shall 

not be disclosed except as authorized in this paragraph (e). 

For purposes of this paragraph (e) only, a SAR shall include 

any suspicious activity report filed with FinCEN pursuant to 

any regulation in this chapter.

(1) Prohibition on disclosures by casinos— 

(i) General rule. No casino, and no director, officer, 

employee, or agent of any casino, shall disclose a SAR or 

any information that would reveal the existence of a SAR. 

Any casino, and any director, officer, employee, or agent 

of any casino that is subpoenaed or otherwise requested to 

disclose a SAR or any information that would reveal the 

existence of a SAR, shall decline to produce the SAR or 
Money Laundering Statutes • 93

31 C.F.R. § 1021.330

such information, citing this section and 31 U.S.C. 5318(g)

(2)(A)(i), and shall notify FinCEN of any such request and 

the response thereto. 

(ii) Rules of Construction. Provided that no person 

involved in any reported suspicious transaction is notified 

that the transaction has been reported, this paragraph (e)(1) 

shall not be construed as prohibiting: 

(A) The disclosure by a casino, or any director, 

officer, employee, or agent of a casino, of: 

(1) A SAR, or any information that would 

reveal the existence of a SAR, to FinCEN or any 

Federal, State, or local law enforcement agency, or 

any Federal regulatory authority that examines the 

casino for compliance with the Bank Secrecy Act, 

or any State regulatory authority administering a 

State law that requires the casino to comply with the 

Bank Secrecy Act or otherwise authorizes the State 

authority to ensure that the casino complies with the 

Bank Secrecy Act, or any tribal regulatory authority 

administering a tribal law that requires the casino 

to comply with the Bank Secrecy Act or otherwise 

authorizes the tribal regulatory authority to ensure 

that casino complies with the Bank Secrecy Act; or 

(2) The underlying facts, transactions, and 

documents upon which a SAR is based, including 

but not limited to, disclosures to another financial 

institution, or any director, officer, employee, or 

agent of a financial institution, for the preparation 

of a joint SAR. 

(B) The sharing by a casino, or any director, officer, 

employee, or agent of the casino, of a SAR, or any 

information that would reveal the existence of a SAR, 

within the casino’s corporate organizational structure 

for purposes consistent with Title II of the Bank Secrecy 

Act as determined by regulation or in guidance. 

(2) Prohibition on disclosures by government authorities. 

A Federal, State, local, territorial, or Tribal government 

authority, or any director, officer, employee, or agent of any 

of the foregoing, shall not disclose a SAR, or any information 

that would reveal the existence of a SAR, except as necessary 

to fulfill official duties consistent with Title II of the Bank 

Secrecy Act (BSA). For purposes of this section, “official 

duties” shall not include the disclosure of a SAR, or any 

information that would reveal the existence of a SAR, in 

response to a request for disclosure of non-public information 

or a request for use in a private legal proceeding, including a 

request pursuant to 31 CFR 1.11. 

(f) Limitation on liability. A casino, and any director, officer, 

employee, or agent of any casino, that makes a voluntary 

disclosure of any possible violation of law or regulation to 

a government agency or makes a disclosure pursuant to this 

section or any other authority, including a disclosure made 

jointly with another institution, shall be protected from 

liability to any person for any such disclosure, or for failure 

to provide notice of such disclosure to any person identified 

in the disclosure, or both, to the full extent provided by 

31 U.S.C. 5318(g)(3).

(g) Compliance. Casinos shall be examined by FinCEN or its 

delegatees for compliance with this section. Failure to satisfy 

the requirements of this section may be a violation of the Bank 

Secrecy Act and of this chapter.

(h) Applicability date. This section applies to transactions 

occurring after March 25, 2003.

Note: §1021.320(a)–(g) was previously §103.21(a)–(g).

This section was further amended on Feb. 25, 2011. The 

changes went into effect on March 1, 2011.

31 C.F.R. § 1021.330. Exceptions to the 

reporting requirements of 31 U.S.C. 5331. 

To be used for violations occurring on or after

March 1, 2011.

(a) Receipt of currency by certain casinos having gross annual 

gaming revenue in excess of $1,000,000—In general. If a casino 

receives currency in excess of $10,000 and is required to report 

the receipt of such currency directly to the Treasury Department 

under § 1010.306, § 1021.311, or § 1021.313 and is subject to 

the recordkeeping requirements of § 1021.410, then the casino 

is not required to make a report with respect to the receipt of 

such currency under 31 U.S.C. 5331 and this section.

(b) Casinos exempt under § 1010.970(c). Pursuant to 

§ 1010.970, the Secretary may exempt from the reporting 

and recordkeeping requirements under § 1010.306, § 

1021.311, § 1021.313 or § 1021.410 casinos in any state 

whose regulatory system substantially meets the reporting and 

recordkeeping requirements of this chapter. Such casinos shall 

not be required to report receipt of currency under 31 U.S.C. 

5331 and this section.

(c) Reporting of currency received in a non-gaming business. 

Non-gaming businesses (such as shops, restaurants, 

entertainment, and hotels) at casino hotels and resorts are 

separate trades or businesses in which the receipt of currency 

in excess of $10,000 is reportable under section 5331 and these 

regulations. Thus, a casino exempt under paragraph (a) or (b) 

of this section must report with respect to currency in excess 

of $10,000 received in its non-gaming businesses.

(d) Example. The following example illustrates the application 

of the rules in paragraphs (a) and (c) of this section:
94 • Money Laundering Statutes

31 C.F.R. § 1022.210 

Example. A and B are casinos having gross annual gaming 

revenue in excess of $1,000,000. C is a casino with gross 

annual gaming revenue of less than $1,000,000. Casino A 

receives $15,000 in currency from a customer with respect to 

a gaming transaction which the casino reports to the Treasury 

Department under §§ 1010.306, 1021.311, and 1021.313. 

Casino B receives $15,000 in currency from a customer in 

payment for accommodations provided to that customer at 

Casino B’s hotel. Casino C receives $15,000 in currency from 

a customer with respect to a gaming transaction. Casino A is 

not required to report the transaction under 31 U.S.C. 5331 or 

this section because the exception for certain casinos provided 

in paragraph (a) of this section (“the casino exception”) 

applies. Casino B is required to report under 31 U.S.C. 5331 

and this section because the casino exception does not apply 

to the receipt of currency from a nongaming activity. Casino 

C is required to report under 31 U.S.C. 5331 and this section 

because the casino exception does not apply to casinos having 

gross annual gaming revenue of $1,000,000 or less which 

do not have to report to the Treasury Department under §§ 

1010.306, 1021.311, and 1021.313.

Note: §1021.330(a)–(d) was previously §103.30(d)(1)(i)–(iv).

This section was further amended on Feb. 25, 2011. The 

changes went into effect on March 1, 2011.

31 C.F.R. § 1022.210. Anti-money laundering 

programs for money services businesses.

To be used for violations occurring on or after

March 1, 2011.

(a) Each money services business, as defined by § 1010.100(ff) 

of this Chapter, shall develop, implement, and maintain an 

effective anti-money laundering program. An effective antimoney laundering program is one that is reasonably designed 

to prevent the money services business from being used to 

facilitate money laundering and the financing of terrorist 

activities.

(b) The program shall be commensurate with the risks posed 

by the location and size of, and the nature and volume of the 

financial services provided by, the money services business.

(c) The program shall be in writing, and a money services 

business shall make copies of the anti-money laundering 

program available for inspection to the Department of the 

Treasury upon request.

(d) At a minimum, the program shall:

(1) Incorporate policies, procedures, and internal controls 

reasonably designed to assure compliance with this chapter. 

(i) Policies, procedures, and internal controls developed 

and implemented under this section shall include 

provisions for complying with the requirements of this 

chapter including, to the extent applicable to the money 

services business, requirements for: 

(A) Verifying customer identification, including as 

set forth in paragraph (d)(1)(iv) of this section; 

(B) Filing Reports; 

(C) Creating and retaining records; 

(D) Responding to law enforcement requests. 

(ii) Money services businesses that have automated 

data processing systems should integrate their compliance 

procedures with such systems. 

(iii) A person that is a money services business solely 

because it is an agent for another money services business 

as set forth in § 1022.380(a)(3), and the money services 

business for which it serves as agent, may by agreement 

allocate between them responsibility for development 

of policies, procedures, and internal controls required 

by this paragraph (d)(1). Each money services business 

shall remain solely responsible for implementation of the 

requirements set forth in this section, and nothing in this 

paragraph (d)(1) relieves any money services business 

from its obligation to establish and maintain an effective 

anti-money laundering program. 

(iv) A money services business that is a provider or 

seller of prepaid access must establish procedures to verify 

the identity of a person who obtains prepaid access under 

a prepaid program and obtain identifying information 

concerning such a person, including name, date of birth, 

address, and identification number. Sellers of prepaid 

access must also establish procedures to verify the identity 

of a person who obtains prepaid access to funds that 

exceed $10,000 during any one day and obtain identifying 

information concerning such a person, including name, 

date of birth, address, and identification number. Providers 

of prepaid access must retain access to such identifying 

information for five years after the last use of the prepaid 

access device or vehicle; such information obtained by 

sellers of prepaid access must be retained for five years from 

the date of the sale of the prepaid access device or vehicle. 

(2) Designate a person to assure day to day compliance 

with the program and this chapter. The responsibilities of such 

person shall include assuring that: 

(i) The money services business properly files reports, 

and creates and retains records, in accordance with 

applicable requirements of this chapter; 
Money Laundering Statutes • 95

31 C.F.R. § 1022.320

(ii) The compliance program is updated as necessary 

to reflect current requirements of this chapter, and related 

guidance issued by the Department of the Treasury; and 

(iii) The money services business provides appropriate 

training and education in accordance with paragraph (d)

(3) of this section. 

(3) Provide education and/or training of appropriate 

personnel concerning their responsibilities under the program, 

including training in the detection of suspicious transactions 

to the extent that the money services business is required to 

report such transactions under this chapter. 

(4) Provide for independent review to monitor and maintain 

an adequate program. The scope and frequency of the review 

shall be commensurate with the risk of the financial services 

provided by the money services business. Such review may 

be conducted by an officer or employee of the money services 

business so long as the reviewer is not the person designated 

in paragraph (d)(2) of this section. 

(e) Compliance date. A money services business must 

develop and implement an anti-money laundering program 

that complies with the requirements of this section on or 

before the later of July 24, 2002, and the end of the 90–day 

period beginning on the day following the date the business 

is established.

Note: §1022.210(a)–(e) was previously §103.125(a)–(e).

This section was further amended on July 29, 2011. The 

changes went into effect on Sept. 27, 2011.

31 C.F.R. § 1022.320. Reports by money 

services businesses of suspicious 

transactions. 

To be used for violations occurring on or after

March 1, 2011.

(a) General.

(1) Every money services business described in § 

1010.100(ff)(1), (3), (4), (5), (6), and (7) of this chapter, 

shall file with the Treasury Department, to the extent and 

in the manner required by this section, a report of any 

suspicious transaction relevant to a possible violation of law 

or regulation. Any money services business may also file 

with the Treasury Department, by using the form specified 

in paragraph (b)(1) of this section, or otherwise, a report of 

any suspicious transaction that it believes is relevant to the 

possible violation of any law or regulation but whose reporting 

is not required by this section. 

(2) A transaction requires reporting under the terms of 

this section if it is conducted or attempted by, at, or through a 

money services business, involves or aggregates funds or other 

assets of at least $2,000 (except as provided in paragraph (a)

(3) of this section), and the money services business knows, 

suspects, or has reason to suspect that the transaction (or a 

pattern of transactions of which the transaction is a part): 

(i) Involves funds derived from illegal activity or is 

intended or conducted in order to hide or disguise funds 

or assets derived from illegal activity (including, without 

limitation, the ownership, nature, source, location, or 

control of such funds or assets) as part of a plan to violate 

or evade any Federal law or regulation or to avoid any 

transaction reporting requirement under Federal law or 

regulation; 

(ii) Is designed, whether through structuring or other 

means, to evade any requirements of this chapter or of any 

other regulations promulgated under the Bank Secrecy 

Act; or 

(iii) Serves no business or apparent lawful purpose, 

and the reporting money services business knows of no 

reasonable explanation for the transaction after examining 

the available facts, including the background and possible 

purpose of the transaction. 

(iv) Involves use of the money services business to 

facilitate criminal activity. 

(3) To the extent that the identification of transactions 

required to be reported is derived from a review of clearance 

records or other similar records of money orders or traveler’s 

checks that have been sold or processed, an issuer of money 

orders or traveler’s checks shall only be required to report 

a transaction or pattern of transactions that involves or 

aggregates funds or other assets of at least $5,000. 

(4) The obligation to identify and properly and timely to 

report a suspicious transaction rests with each money services 

business involved in the transaction, provided that no more 

than one report is required to be filed by the money services 

businesses involved in a particular transaction (so long as the 

report filed contains all relevant facts). Whether, in addition to 

any liability on its own for failure to report, a money services 

business that issues the instrument or provides the funds 

transfer service involved in the transaction may be liable for 

the failure of another money services business involved in 

the transaction to report that transaction depends upon the 

nature of the contractual or other relationship between the 

businesses, and the legal effect of the facts and circumstances 

of the relationship and transaction involved, under general 

principles of the law of agency. 

(b) Filing procedures—
96 • Money Laundering Statutes

31 C.F.R. § 1022.320 

(1) What to file. A suspicious transaction shall be 

reported by completing a Suspicious Activity Report–MSB 

(“SAR–MSB”), and collecting and maintaining supporting 

documentation as required by paragraph (c) of this section. 

(2) Where to file. The SAR–MSB shall be filed in a central 

location to be determined by FinCEN, as indicated in the 

instructions to the SAR–MSB. 

(3) When to file. A money services business subject to 

this section is required to file each SAR–MSB no later than 

30 calendar days after the date of the initial detection by 

the money services business of facts that may constitute a 

basis for filing a SAR–MSB under this section. In situations 

involving violations that require immediate attention, 

such as ongoing money laundering schemes, the money 

services business shall immediately notify by telephone an 

appropriate law enforcement authority in addition to filing a 

SAR–MSB. Money services businesses wishing voluntarily 

to report suspicious transactions that may relate to terrorist 

activity may call FinCEN’s Financial Institutions Hotline at 

1–866–556–3974 in addition to filing timely a SAR–MSB if 

required by this section. 

(c) Retention of records. A money services business shall 

maintain a copy of any SAR–MSB filed and the original or 

business record equivalent of any supporting documentation 

for a period of five years from the date of filing the SAR–

MSB. Supporting documentation shall be identified as such 

and maintained by the money services business, and shall 

be deemed to have been filed with the SAR–MSB. A money 

services business shall make all supporting documentation 

available to FinCEN or any Federal, State, or local law 

enforcement agency, or any Federal regulatory authority 

that examines the money services business for compliance 

with the Bank Secrecy Act, or any State regulatory authority 

administering a State law that requires the money services 

business to comply with the Bank Secrecy Act or otherwise 

authorizes the State authority to ensure that the money services 

business complies with the Bank Secrecy Act.

(d) Confidentiality of SARs. A SAR, and any information that 

would reveal the existence of a SAR, are confidential and shall 

not be disclosed except as authorized in this paragraph (d). 

For purposes of this paragraph (d) only, a SAR shall include 

any suspicious activity report filed with FinCEN pursuant to 

any regulation in this chapter.

(1) Prohibition on disclosures by money services 

businesses— 

(i) General rule. No money services business, and no 

director, officer, employee, or agent of any money services 

business, shall disclose a SAR or any information that 

would reveal the existence of a SAR. Any money services 

business, and any director, officer, employee, or agent 

of any money services business that is subpoenaed or 

otherwise requested to disclose a SAR or any information 

that would reveal the existence of a SAR, shall decline to 

produce the SAR or such information, citing this section 

and 31 U.S.C. 5318(g)(2)(A)(i), and shall notify FinCEN 

of any such request and the response thereto. 

(ii) Rules of Construction. Provided that no person 

involved in any reported suspicious transaction is notified 

that the transaction has been reported, this paragraph (d)

(1) shall not be construed as prohibiting: 

(A) The disclosure by a money services business, 

or any director, officer, employee, or agent of a money 

services business, of: 

(1) A SAR, or any information that would 

reveal the existence of a SAR, to FinCEN or any 

Federal, State, or local law enforcement agency, or 

any Federal regulatory authority that examines the 

money services business for compliance with the 

Bank Secrecy Act, or any State regulatory authority 

administering a State law that requires the money 

services business to comply with the Bank Secrecy 

Act or otherwise authorizes the State authority to 

ensure that the money services business complies 

with the Bank Secrecy Act; or 

(2) The underlying facts, transactions, and 

documents upon which a SAR is based, including 

but not limited to, disclosures to another financial 

institution, or any director, officer, employee, or 

agent of a financial institution, for the preparation 

of a joint SAR. 

(B) The sharing by a money services business, or 

any director, officer, employee, or agent of the money 

services business, of a SAR, or any information that 

would reveal the existence of a SAR, within the money 

services business’s corporate organizational structure 

for purposes consistent with Title II of the Bank Secrecy 

Act as determined by regulation or in guidance. 

(2) Prohibition on disclosures by government authorities. 

A Federal, State, local, territorial, or Tribal government 

authority, or any director, officer, employee, or agent of any 

of the foregoing, shall not disclose a SAR, or any information 

that would reveal the existence of a SAR, except as necessary 

to fulfill official duties consistent with Title II of the Bank 

Secrecy Act. For purposes of this section, “official duties” 

shall not include the disclosure of a SAR, or any information 

that would reveal the existence of a SAR, in response to a 

request for disclosure of non-public information or a request 

for use in a private legal proceeding, including a request 

pursuant to 31 CFR 1.11. 

(e) Limitation on liability. A money services business, and any 

director, officer, employee, or agent of any money services 
Money Laundering Statutes • 97

31 C.F.R. § 1022.380

business, that makes a voluntary disclosure of any possible 

violation of law or regulation to a government agency or 

makes a disclosure pursuant to this section or any other 

authority, including a disclosure made jointly with another 

institution, shall be protected from liability to any person for 

any such disclosure, or for failure to provide notice of such 

disclosure to any person identified in the disclosure, or both, 

to the full extent provided by 31 U.S.C. 5318(g)(3).

(f) Compliance. Money services businesses shall be examined 

by FinCEN or its delegatees for compliance with this section. 

Failure to satisfy the requirements of this section may be a 

violation of the Bank Secrecy Act and of this chapter.

(g) Applicability date. This section applies to transactions 

occurring after December 31, 2001.

Note: §1022.320(a)–(f) was previously §103.20(a)–(f).

This section was further amended on July 29, 2011. The 

changes went into effect on Sept. 27, 2011.

31 C.F.R. § 1022.380. Registration of money 

services businesses.

To be used for violations occurring on or after

March 1, 2011.

(a) Registration requirement—

(1) In general. Except as provided in paragraph (a)(3) of 

this section, relating to agents, and except for sellers of prepaid 

access as defined in § 1010.100(ff)(7) of this chapter to the 

extent that they are not already agents, each money services 

business (whether or not licensed as a money services business 

by any State) must register with FinCEN. Each provider of 

prepaid access must identify each prepaid program for which 

it is the provider of prepaid access. Each money services 

business must, as part of its registration, maintain a list of its 

agents as required by 31 U.S.C. 5330 and this section. This 

section does not apply to the United States Postal Service, to 

agencies of the United States, of any State, or of any political 

subdivision of a State. 

(2) Foreign-located Money Services Business. Each 

foreign-located person doing business, whether or not on a 

regular basis or as an organized or licensed business concern, 

in the United States as a money services business shall 

designate the name and address of a person who resides in the 

United States and is authorized, and has agreed, to be an agent 

to accept service of legal process with respect to compliance 

with this chapter, and shall identify the address of the location 

within the United States for records pertaining to paragraph 

(b)(1)(iii) of this section. 

(3) Agents. A person that is a money services business 

solely because that person serves as an agent of another 

money services business, see § 1010.100(ff) of this Chapter, 

is not required to register under this section, but a money 

services business that engages in activities described in § 

1010.100(ff) of this Chapter both on its own behalf and as an 

agent for others must register under this section. For example, 

a supermarket corporation that acts as an agent for an issuer of 

money orders and performs no other services of a nature and 

value that would cause the corporation to be a money services 

business, is not required to register; the answer would be the 

same if the supermarket corporation served as an agent both 

of a money order issuer and of a money transmitter. However, 

registration would be required if the supermarket corporation, 

in addition to acting as an agent of an issuer of money orders, 

cashed checks or exchanged currencies (other than as an 

agent for another business) in an amount greater than $1,000 

in currency or monetary or other instruments for any person 

on any day, in one or more transactions. 

(4) Agency status. The determination whether a person is 

an agent depends on all the facts and circumstances. 

(b) Registration procedures—

(1) In general. 

(i) A money services business must be registered by 

filing such form as FinCEN may specify with the Enterprise 

Computing Center in Detroit of the Internal Revenue Service 

(or such other location as the form may specify). The 

information required by 31 U.S.C. 5330(b) and any other 

information required by the form must be reported in the 

manner and to the extent required by the form. 

(ii) A branch office of a money services business is not 

required to file its own registration form. A money services 

business must, however, report information about its 

branch locations or offices as provided by the instructions 

to the registration form. 

(iii) A money services business must retain a copy 

of any registration form filed under this section and any 

registration number that may be assigned to the business at 

a location in the United States and for the period specified 

in § 1010.430(d) of this Chapter. 

(2) Registration period. A money services business must be 

registered for the initial registration period and each renewal 

period. The initial registration period is the two-calendar-year 

period beginning with the calendar year in which the money 

services business is first required to be registered. However, 

the initial registration period for a money services business 

required to register by December 31, 2001 (see paragraph (b)

(3) of this section) is the two-calendar year period beginning 

2002. Each two-calendar-year period following the initial 

registration period is a renewal period. 
98 • Money Laundering Statutes

31 C.F.R. § 1022.380 

(3) Due date. The registration form for the initial 

registration period must be filed on or before the end of the 

180–day period beginning on the day following the date the 

business is established. The registration form for a renewal 

period must be filed on or before the last day of the calendar 

year preceding the renewal period. 

(4) Events requiring re-registration. If a money services 

business registered as such under the laws of any State 

experiences a change in ownership or control that requires 

the business to be re-registered under State law, the money 

services business must also be re-registered under this section. 

In addition, if there is a transfer of more than 10 percent of the 

voting power or equity interests of a money services business 

(other than a money services business that must report such 

transfer to the Securities and Exchange Commission), the 

money services business must be re-registered under this 

section. Finally, if a money services business experiences a 

more than 50–per cent increase in the number of its agents 

during any registration period, the money services business 

must be re-registered under this section. The registration 

form must be filed not later than 180 days after such change 

in ownership, transfer of voting power or equity interests, or 

increase in agents. The calendar year in which the change, 

transfer, or increase occurs is treated as the first year of a new 

two-year registration period. 

(c) Persons required to file the registration form. Under 

31 U.S.C. 5330(a), any person who owns or controls a money 

services business is responsible for registering the business; 

however, only one registration form is required to be filed 

for each registration period. A person is treated as owning or 

controlling a money services business for purposes of filing 

the registration form only to the extent provided by the form. 

If more than one person owns or controls a money services 

business, the owning or controlling persons may enter into an 

agreement designating one of them to register the business. 

The failure of the designated person to register the money 

services business does not, however, relieve any of the other 

persons who own or control the business of liability for the 

failure to register the business. See paragraph (e) of this 

section, relating to consequences of the failure to comply 

with 31 U.S.C. 5330 or this section.

(d) List of agents—

(1) In general. A money services business must prepare 

and maintain a list of its agents. The initial list of agents must 

be prepared by January 1, 2002, and must be revised each 

January 1, for the immediately preceding 12 month period; 

for money services businesses established after December 31, 

2001, the initial agent list must be prepared by the due date of 

the initial registration form and must be revised each January 

1 for the immediately preceding 12–month period. The list is 

not filed with the registration form but must be maintained at 

the location in the United States reported on the registration 

form under paragraph (b)(1) of this section. Upon request, a 

money services business must make its list of agents available 

to FinCEN and any other appropriate law enforcement agency 

(including, without limitation, the examination function of the 

Internal Revenue Service in its capacity as delegee of Bank 

Secrecy Act examination authority). Requests for information 

made pursuant to the preceding sentence shall be coordinated 

through FinCEN in the manner and to the extent determined 

by FinCEN. The original list of agents and any revised list 

must be retained for the period specified in § 1010.430(d) of 

this Chapter. 

(2) Information included on the list of agents— 

(i) In general. Except as provided in paragraph (d)(2)

(ii) of this section, a money services business must include 

the following information with respect to each agent on the 

list (including any revised list) of its agents— 

(A) The name of the agent, including any trade 

names or doing-business-as names; 

(B) The address of the agent, including street 

address, city, state, and ZIP code; 

(C) The telephone number of the agent; 

(D) The type of service or services (money orders, 

traveler’s checks, check sales, check cashing, currency 

exchange, and money transmitting) the agent provides; 

(E) A listing of the months in the 12 months 

immediately preceding the date of the most recent agent 

list in which the gross transaction amount of the agent 

with respect to financial products or services issued 

by the money services business maintaining the agent 

list exceeded $100,000. For this purpose, the money 

services gross transaction amount is the agent’s gross 

amount (excluding fees and commissions) received 

from transactions of one or more businesses described 

in § 1010.100(ff) of this Chapter; 

(F) The name and address of any depository 

institution at which the agent maintains a transaction 

account (as defined in 12 U.S.C. 461(b)(1)(C)) for 

all or part of the funds received in or for the financial 

products or services issued by the money services 

business maintaining the list, whether in the agent’s or 

the business principal’s name; 

(G) The year in which the agent first became an agent 

of the money services business; and 

(H) The number of branches or subagents the agent 

has. 

(ii) Special rules. Information about agent volume must 

be current within 45 days of the due date of the agent list. The 

information described by paragraphs (d)(2)(i)(G) and (d)(2)
Money Laundering Statutes • 99

31 C.F.R. § 1023.320

(i)(H) of this section is not required to be included in an agent 

list with respect to any person that is an agent of the money 

services business maintaining the list before the first day of 

the month beginning after February 16, 2000 so long as the 

information described by paragraphs (d)(2)(i)(G) and (d)(2)

(i)(H) of this section is made available upon the request of 

FinCEN and any other appropriate law enforcement agency 

(including, without limitation, the examination function of 

the Internal Revenue Service in its capacity as delegee of 

Bank Secrecy Act examination authority). 

(e) Consequences of failing to comply with 31 U.S.C. 5330 

or the regulations thereunder. It is unlawful to do business 

without complying with 31 U.S.C. 5330 and this section. 

A failure to comply with the requirements of 31 U.S.C. 

5330 or this section includes the filing of false or materially 

incomplete information in connection with the registration of 

a money services business. Any person who fails to comply 

with any requirement of 31 U.S.C. 5330 or this section shall 

be liable for a civil penalty of $5,000 for each violation. Each 

day a violation of 31 U.S.C. 5330 or this section continues 

constitutes a separate violation. In addition, under 31 U.S.C. 

5320, the Secretary of the Treasury may bring a civil action to 

enjoin the violation. See 18 U.S.C. 1960 for a criminal penalty 

for failure to comply with the registration requirements of 31 

U.S.C. 5330 or this section.

(f) Applicability date. This section is applicable as of 

September 20, 1999. Registration of money services 

businesses under this section will not be required prior to 

December 31, 2001.

Note: §1022.380(a)–(f) was previously §103.41(a)–(f).

This section was further amended on July 29, 2011. The 

changes went into effect on Sept. 27, 2011.

31 C.F.R. § 1023.320. Reports by brokers 

or dealers in securities of suspicious 

transactions. 

To be used for violations occurring on or after

March 1, 2011.

(a) General.

(1) Every broker or dealer in securities within the United 

States (for purposes of this section, a “broker-dealer”) shall 

file with FinCEN, to the extent and in the manner required by 

this section, a report of any suspicious transaction relevant to 

a possible violation of law or regulation. A broker-dealer may 

also file with FinCEN a report of any suspicious transaction 

that it believes is relevant to the possible violation of any 

law or regulation but whose reporting is not required by this 

section. Filing a report of a suspicious transaction does not 

relieve a broker-dealer from the responsibility of complying 

with any other reporting requirements imposed by the 

Securities and Exchange Commission or a self-regulatory 

organization (“SRO”) (as defined in section 3(a)(26) of the 

Securities Exchange Act of 1934, 15 U.S.C. 78c(a)(26)). 

(2) A transaction requires reporting under the terms of 

this section if it is conducted or attempted by, at, or through 

a broker-dealer, it involves or aggregates funds or other assets 

of at least $5,000, and the broker-dealer knows, suspects, 

or has reason to suspect that the transaction (or a pattern of 

transactions of which the transaction is a part): 

(i) Involves funds derived from illegal activity or is 

intended or conducted in order to hide or disguise funds 

or assets derived from illegal activity (including, without 

limitation, the ownership, nature, source, location, or control 

of such funds or assets) as part of a plan to violate or evade 

any Federal law or regulation or to avoid any transaction 

reporting requirement under Federal law or regulation; 

(ii) Is designed, whether through structuring or other 

means, to evade any requirements of this chapter or of any 

other regulations promulgated under the Bank Secrecy Act; 

(iii) Has no business or apparent lawful purpose or is not 

the sort in which the particular customer would normally 

be expected to engage, and the broker-dealer knows of no 

reasonable explanation for the transaction after examining 

the available facts, including the background and possible 

purpose of the transaction; or 

(iv) Involves use of the broker-dealer to facilitate 

criminal activity. 

(3) The obligation to identify and properly and timely to 

report a suspicious transaction rests with each broker-dealer 

involved in the transaction, provided that no more than one 

report is required to be filed by the broker-dealers involved 

in a particular transaction (so long as the report filed contains 

all relevant facts). 

(b) Filing procedures—

(1) What to file. A suspicious transaction shall be 

reported by completing a Suspicious Activity Report by the 

Securities and Futures Industry (“SAR–SF”), and collecting 

and maintaining supporting documentation as required by 

paragraph (d) of this section. 

(2) Where to file. The SAR–SF shall be filed with FinCEN 

in a central location, to be determined by FinCEN, as indicated 

in the instructions to the SAR–SF. 

(3) When to file. A SAR–SF shall be filed no later than 

30 calendar days after the date of the initial detection by the 

reporting broker-dealer of facts that may constitute a basis for 

filing a SAR–SF under this section. If no suspect is identified 

on the date of such initial detection, a broker-dealer may delay 
100 • Money Laundering Statutes

31 C.F.R. § 1023.320 

filing a SAR–SF for an additional 30 calendar days to identify 

a suspect, but in no case shall reporting be delayed more 

than 60 calendar days after the date of such initial detection. 

In situations involving violations that require immediate 

attention, such as terrorist financing or ongoing money 

laundering schemes, the broker-dealer shall immediately 

notify by telephone an appropriate law enforcement authority 

in addition to filing timely a SAR–SF. Broker-dealers wishing 

voluntarily to report suspicious transactions that may relate 

to terrorist activity may call FinCEN’s Financial Institutions 

Hotline at 1–866–556–3974 in addition to filing timely 

a SAR–SF if required by this section. The broker-dealer 

may also, but is not required to, contact the Securities and 

Exchange Commission to report in such situations. 

(c) Exceptions.

(1) A broker-dealer is not required to file a SAR–SF to report: 

(i) A robbery or burglary committed or attempted 

of the broker-dealer that is reported to appropriate law 

enforcement authorities, or for lost, missing, counterfeit, 

or stolen securities with respect to which the broker-dealer 

files a report pursuant to the reporting requirements of 17 

CFR 240.17f–1; 

(ii) A violation otherwise required to be reported under 

this section of any of the Federal securities laws or rules 

of an SRO by the broker-dealer or any of its officers, 

directors, employees, or other registered representatives, 

other than a violation of 17 CFR 240.17a–8 or 17 CFR 

405.4, so long as such violation is appropriately reported 

to the SEC or an SRO. 

(2) A broker-dealer may be required to demonstrate that it 

has relied on an exception in paragraph (c)(1) of this section, 

and must maintain records of its determinations to do so for 

the period specified in paragraph (d) of this section. To the 

extent that a Form RE–3, Form U–4, or Form U–5 concerning 

the transaction is filed consistent with the SRO rules, a copy 

of that form will be a sufficient record for purposes of this 

paragraph (c)(2). 

(3) For the purposes of this paragraph (c) the term “Federal 

securities laws” means the “securities laws,” as that term is 

defined in section 3(a)(47) of the Securities Exchange Act 

of 1934, 15 U.S.C. 78c(a)(47), and the rules and regulations 

promulgated by the Securities and Exchange Commission 

under such laws. 

(d) Retention of records. A broker-dealer shall maintain a 

copy of any SAR–SF filed and the original or business record 

equivalent of any supporting documentation for a period of 

five years from the date of filing the SAR–SF. Supporting 

documentation shall be identified as such and maintained 

by the broker-dealer, and shall be deemed to have been filed 

with the SAR–SF. A broker-dealer shall make all supporting 

documentation available to FinCEN or any Federal, State, 

or local law enforcement agency, or any Federal regulatory 

authority that examines the broker-dealer for compliance 

with the Bank Secrecy Act, upon request; or to any SRO 

that examines the broker-dealer for compliance with the 

requirements of this section, upon the request of the Securities 

and Exchange Commission.

(e) Confidentiality of SARs. A SAR, and any information that 

would reveal the existence of a SAR, are confidential and shall 

not be disclosed except as authorized in this paragraph (e). 

For purposes of this paragraph (e) only, a SAR shall include 

any suspicious activity report filed with FinCEN pursuant to 

any regulation in this chapter.

(1) Prohibition on disclosures by brokers or dealers in 

securities. 

(i) General rule. No broker-dealer, and no director, 

officer, employee, or agent of any broker-dealer, shall 

disclose a SAR or any information that would reveal the 

existence of a SAR. Any broker-dealer, and any director, 

officer, employee, or agent of any broker-dealer that is 

subpoenaed or otherwise requested to disclose a SAR or 

any information that would reveal the existence of a SAR, 

shall decline to produce the SAR or such information, citing 

this section and 31 U.S.C. 5318(g)(2)(A)(i), and shall notify 

FinCEN of any such request and the response thereto. 

(ii) Rules of Construction. Provided that no person 

involved in any reported suspicious transaction is notified 

that the transaction has been reported, this paragraph (e)

(1) shall not be construed as prohibiting: 

(A) The disclosure by a broker-dealer, or any director, 

officer, employee, or agent of a broker-dealer, of: 

(1) A SAR, or any information that would reveal 

the existence of a SAR, to FinCEN or any Federal, 

State, or local law enforcement agency, or any Federal 

regulatory authority that examines the broker-dealer 

for compliance with the Bank Secrecy Act; or to any 

SRO that examines the broker-dealer for compliance 

with the requirements of this section, upon the request 

of the Securities Exchange Commission; or 

(2) The underlying facts, transactions, and 

documents upon which a SAR is based, including 

but not limited to, disclosures: 

(i) To another financial institution, or 

any director, officer, employee, or agent of 

a financial institution, for the preparation 

of a joint SAR; or 

(ii) In connection with certain 

employment references or termination 

notices, to the full extent authorized in 31 

U.S.C. 5318(g)(2)(B); or 
Money Laundering Statutes • 101

31 C.F.R. § 1024.320

(B) The sharing by a broker-dealer, or any director, 

officer, employee, or agent of the broker-dealer, of 

a SAR, or any information that would reveal the 

existence of a SAR, within the broker-dealer’s corporate 

organizational structure for purposes consistent with 

Title II of the Bank Secrecy Act as determined by 

regulation or in guidance. 

(2) Prohibition on disclosures by government authorities. A 

Federal, State, local, territorial, or Tribal government authority, or 

any director, officer, employee, or agent of any of the foregoing, 

shall not disclose a SAR, or any information that would reveal 

the existence of a SAR, except as necessary to fulfill official 

duties consistent with Title II of the Bank Secrecy Act. For 

purposes of this section, “official duties” shall not include the 

disclosure of a SAR, or any information that would reveal the 

existence of a SAR, in response to a request for disclosure of 

non-public information or a request for use in a private legal 

proceeding, including a request pursuant to 31 CFR 1.11. 

(3) Prohibition on disclosures by Self–Regulatory 

Organizations. Any self-regulatory organization registered 

with the Securities and Exchange Commission, or any 

director, officer, employee, or agent of any of the foregoing, 

shall not disclose a SAR, or any information that would 

reveal the existence of a SAR except as necessary to fulfill 

self-regulatory duties with the consent of the Securities 

Exchange Commission, in a manner consistent with Title II 

of the Bank Secrecy Act. For purposes of this section, “selfregulatory duties” shall not include the disclosure of a SAR, or 

any information that would reveal the existence of a SAR, in 

response to a request for disclosure of non-public information 

or a request for use in a private legal proceeding. 

(f) Limitation on liability. A broker-dealer, and any director, 

officer, employee, or agent of any broker-dealer, that makes 

a voluntary disclosure of any possible violation of law or 

regulation to a government agency or makes a disclosure 

pursuant to this section or any other authority, including a 

disclosure made jointly with another institution, shall be 

protected from liability to any person for any such disclosure, 

or for failure to provide notice of such disclosure to any person 

identified in the disclosure, or both, to the full extent provided 

by 31 U.S.C. 5318(g)(3).

(g) Compliance. Broker-dealers shall be examined by FinCEN 

or its delegatees for compliance with this section. Failure to 

satisfy the requirements of this section may be a violation of 

the Bank Secrecy Act and of this chapter.

(h) Applicability date. This section applies to transactions 

occurring after December 30, 2002.

Note: §1023.320(a)–(h) was previously §103.19(a)–(h).

This section was further amended on Feb. 25, 2011. The 

changes went into effect on March 1, 2011.

31 C.F.R. § 1024.320. Reports by mutual funds 

of suspicious transactions. 

To be used for violations occurring on or after

March 1, 2011.

(a) General.

(1) Every investment company (as defined in section 3 

of the Investment Company Act of 1940 (15 U.S.C. 80a–3) 

(“Investment Company Act”) that is an open-end company 

(as defined in section 5 of the Investment Company Act (15 

U.S.C. 80a–5)) and that is registered, or is required to register, 

with the Securities and Exchange Commission pursuant to that 

Act (for purposes of this section, a “mutual fund”), shall file 

with the Financial Crimes Enforcement Network, to the extent 

and in the manner required by this section, a report of any 

suspicious transaction relevant to a possible violation of law 

or regulation. A mutual fund may also file with the Financial 

Crimes Enforcement Network a report of any suspicious 

transaction that it believes is relevant to the possible violation 

of any law or regulation, but whose reporting is not required 

by this section. Filing a report of a suspicious transaction 

does not relieve a mutual fund from the responsibility of 

complying with any other reporting requirements imposed 

by the Securities and Exchange Commission. 

(2) A transaction requires reporting under this section if it 

is conducted or attempted by, at, or through a mutual fund, it 

involves or aggregates funds or other assets of at least $5,000, 

and the mutual fund knows, suspects, or has reason to suspect 

that the transaction (or a pattern of transactions of which the 

transaction is a part): 

(i) Involves funds derived from illegal activity or is 

intended or conducted in order to hide or disguise funds 

or assets derived from illegal activity (including, without 

limitation, the ownership, nature, source, location, or 

control of such funds or assets) as part of a plan to violate 

or evade any Federal law or regulation or to avoid any 

transaction reporting requirement under Federal law or 

regulation; 

(ii) Is designed, whether through structuring or other 

means, to evade any requirements of this chapter or any 

other regulations promulgated under the Bank Secrecy Act; 

(iii) Has no business or apparent lawful purpose or is not 

the sort in which the particular customer would normally 

be expected to engage, and the mutual fund knows of no 

reasonable explanation for the transaction after examining 

the available facts, including the background and possible 

purpose of the transaction; or 

(iv) Involves use of the mutual fund to facilitate criminal 

activity. 
102 • Money Laundering Statutes

31 C.F.R. § 1024.320 

(3) More than one mutual fund may have an obligation 

to report the same transaction under this section, and other 

financial institutions may have separate obligations to report 

suspicious activity with respect to the same transaction 

pursuant to other provisions of this chapter. In those instances, 

no more than one report is required to be filed by the mutual 

fund(s) and other financial institution(s) involved in the 

transaction, provided that the report filed contains all relevant 

facts, including the name of each financial institution and 

the words “joint filing” in the narrative section, and each 

institution maintains a copy of the report filed, along with 

any supporting documentation. 

(b) Filing and notification procedures—

(1) What to file. A suspicious transaction shall be reported 

by completing a Suspicious Activity Report by Securities 

and Futures Industries (“SAR–SF”), and collecting and 

maintaining supporting documentation as required by 

paragraph (c) of this section. 

(2) Where to file. Form SAR–SF shall be filed with the 

Financial Crimes Enforcement Network in accordance with 

the instructions to the Form SAR–SF. 

(3) When to file. A Form SAR–SF shall be filed no later 

than 30 calendar days after the date of the initial detection by 

the reporting mutual fund of facts that may constitute a basis 

for filing a Form SAR–SF under this section. If no suspect is 

identified on the date of such initial detection, a mutual fund 

may delay filing a Form SAR–SF for an additional 30 calendar 

days to identify a suspect, but in no case shall reporting be 

delayed more than 60 calendar days after the date of such 

initial detection. 

(4) Mandatory notification to law enforcement. In situations 

involving violations that require immediate attention, such as 

suspected terrorist financing or ongoing money laundering 

schemes, a mutual fund shall immediately notify by telephone 

an appropriate law enforcement authority in addition to filing 

timely a Form SAR–SF. 

(5) Voluntary notification to the Financial Crimes 

Enforcement Network or the Securities and Exchange 

Commission. Mutual funds wishing voluntarily to report 

suspicious transactions that may relate to terrorist activity may 

call the Financial Crimes Enforcement Network’s Financial 

Institutions Hotline at 1–866–556–3974 in addition to filing 

timely a Form SAR–SF if required by this section. The mutual 

fund may also, but is not required to, contact the Securities 

and Exchange Commission to report in such situations. 

(c) Retention of records. A mutual fund shall maintain a 

copy of any Form SAR–SF filed by the fund or on its behalf 

(including joint reports), and the original (or business record 

equivalent) of any supporting documentation concerning 

any Form SAR–SF that it files (or is filed on its behalf), for a 

period of five years from the date of filing the Form SAR–SF. 

Supporting documentation shall be identified as such and 

maintained by the mutual fund, and shall be deemed to have 

been filed with the Form SAR–SF. The mutual fund shall 

make all supporting documentation available to FinCEN or 

any Federal, State, or local law enforcement agency, or any 

Federal regulatory authority that examines the mutual fund 

for compliance with the Bank Secrecy Act, upon request.

(d) Confidentiality of SARs. A SAR, and any information that 

would reveal the existence of a SAR, are confidential and shall 

not be disclosed except as authorized in this paragraph (d). 

For purposes of this paragraph (d) only, a SAR shall include 

any suspicious activity report filed with FinCEN pursuant to 

any regulation in this chapter.

(1) Prohibition on disclosures by mutual funds— 

(i) General rule. No mutual fund, and no director, 

officer, employee, or agent of any mutual fund, shall 

disclose a SAR or any information that would reveal the 

existence of a SAR. Any mutual fund, and any director, 

officer, employee, or agent of any mutual fund that is 

subpoenaed or otherwise requested to disclose a SAR or 

any information that would reveal the existence of a SAR, 

shall decline to produce the SAR or such information, 

citing this section and 31 U.S.C. 5318(g)(2)(A)(i), and 

shall notify FinCEN of any such request and the response 

thereto. 

(ii) Rules of construction. Provided that no person 

involved in any reported suspicious transaction is notified 

that the transaction has been reported, this paragraph (d)(1) 

shall not be construed as prohibiting: 

(A) The disclosure by a mutual fund, or any director, 

officer, employee, or agent of a mutual fund, of: 

(1) A SAR, or any information that would 

reveal the existence of a SAR, to FinCEN or any 

Federal, State, or local law enforcement agency, or 

any Federal regulatory authority that examines the 

mutual fund for compliance with the Bank Secrecy 

Act; or 

(2) The underlying facts, transactions, and 

documents upon which a SAR is based, including 

but not limited to, disclosures to another financial 

institution, or any director, officer, employee, or 

agent of a financial institution, for the preparation 

of a joint SAR; or 

(B) The sharing by a mutual fund, or any director, 

officer, employee, or agent of the mutual fund, of 

a SAR, or any information that would reveal the 

existence of a SAR, within the mutual fund’s corporate 

organizational structure for purposes consistent with 

Title II of the Bank Secrecy Act as determined by 

regulation or in guidance. 
Money Laundering Statutes • 103

31 C.F.R. § 1025.320

(2) Prohibition on disclosures by government authorities. 

A Federal, State, local, territorial, or Tribal government 

authority, or any director, officer, employee, or agent of any 

of the foregoing, shall not disclose a SAR, or any information 

that would reveal the existence of a SAR, except as necessary 

to fulfill official duties consistent with Title II of the Bank 

Secrecy Act. For purposes of this section, “official duties” 

shall not include the disclosure of a SAR, or any information 

that would reveal the existence of a SAR, in response to a 

request for disclosure of non-public information or a request 

for use in a private legal proceeding, including a request 

pursuant to 31 CFR 1.11. 

(e) Limitation on liability. A mutual fund, and any director, 

officer, employee, or agent of any mutual fund, that makes 

a voluntary disclosure of any possible violation of law or 

regulation to a government agency or makes a disclosure 

pursuant to this section or any other authority, including a 

disclosure made jointly with another institution, shall be 

protected from liability to any person for any such disclosure, 

or for failure to provide notice of such disclosure to any person 

identified in the disclosure, or both, to the full extent provided 

by 31 U.S.C. 5318(g)(3).

(f) Compliance. Mutual funds shall be examined by FinCEN 

or its delegatees for compliance with this section. Failure to 

satisfy the requirements of this section may be a violation of 

the Bank Secrecy Act and of this chapter.

(g) Applicability date. This section applies to transactions 

occurring after October 31, 2006.

Note: §1024.320(a)–(g) was previously §103.15(a)–(g).

This section was further amended on Feb. 25, 2011. The 

changes went into effect on March 1, 2011.

31 C.F.R. § 1025.320. Reports by insurance 

companies of suspicious transactions. 

To be used for violations occurring on or after

March 1, 2011.

(a) General.

(1) Each insurance company shall file with the Financial 

Crimes Enforcement Network, to the extent and in the manner 

required by this section, a report of any suspicious transaction 

involving a covered product that is relevant to a possible 

violation of law or regulation. An insurance company may 

also file with the Financial Crimes Enforcement Network by 

using the form specified in paragraph (b)(1) of this section or 

otherwise, a report of any suspicious transaction that it believes 

is relevant to the possible violation of any law or regulation but 

the reporting of which is not required by this section. 

(2) A transaction requires reporting under this section if 

it is conducted or attempted by, at, or through an insurance 

company, and involves or aggregates at least $5,000 in funds 

or other assets, and the insurance company knows, suspects, 

or has reason to suspect that the transaction (or a pattern of 

transactions of which the transaction is a part): 

(i) Involves funds derived from illegal activity or is 

intended or conducted in order to hide or disguise funds 

or assets derived from illegal activity (including, without 

limitation, the ownership, nature, source, location, or control 

of such funds or assets) as part of a plan to violate or evade 

any Federal law or regulation or to avoid any transaction 

reporting requirement under Federal law or regulation; 

(ii) Is designed, whether through structuring or other 

means, to evade any requirements of this chapter or of any 

other regulations promulgated under the Bank Secrecy Act; 

(iii) Has no business or apparent lawful purpose or is not 

the sort in which the particular customer would normally 

be expected to engage, and the insurance company knows 

of no reasonable explanation for the transaction after 

examining the available facts, including the background 

and possible purpose of the transaction; or 

(iv) Involves use of the insurance company to facilitate 

criminal activity. 

(3)(i) An insurance company is responsible for reporting 

suspicious transactions conducted through its insurance agents 

and insurance brokers. Accordingly, an insurance company shall 

establish and implement policies and procedures reasonably 

designed to obtain customer-related information necessary to 

detect suspicious activity from all relevant sources, including 

from its insurance agents and insurance brokers, and shall report 

suspicious activity based on such information. 

(ii) Certain insurance agents may have a separate 

obligation to report suspicious activity pursuant to other 

provisions of this chapter. In those instances, no more than 

one report is required to be filed by the financial institutions 

involved in the transaction, as long as the report filed 

contains all relevant facts, including the names of both 

institutions and the words “joint filing” in the narrative 

section, and both institutions maintain a copy of the report 

filed, along with any supporting documentation. 

(iii) An insurance company that issues variable 

insurance products funded by separate accounts that meet 

the definition of a mutual fund in § 1024.320(a)(1) of 

this Chapter shall file reports of suspicious transactions 

pursuant to § 1024.320 of this Chapter. 

(b) Filing procedures—

(1) What to file. A suspicious transaction shall be reported 

by completing a Suspicious Activity Report by Insurance 
104 • Money Laundering Statutes

31 C.F.R. § 1025.320 

Companies (SAR–IC), and collecting and maintaining 

supporting documentation as required by paragraph (d) of 

this section. 

(2) Where to file. The SAR–IC shall be filed with the 

Financial Crimes Enforcement Network as indicated in the 

instructions to the SAR–IC. 

(3) When to file. A SAR–IC shall be filed no later than 

30 calendar days after the date of the initial detection by the 

insurance company of facts that may constitute a basis for 

filing a SAR–IC under this section. If no suspect is identified 

on the date of such initial detection, an insurance company 

may delay filing a SAR–IC for an additional 30 calendar days 

to identify a suspect, but in no case shall reporting be delayed 

more than 60 calendar days after the date of such initial 

detection. In situations that require immediate attention, such 

as terrorist financing or ongoing money laundering schemes, 

the insurance company shall immediately notify by telephone 

an appropriate law enforcement authority in addition to filing 

timely a SAR–IC. Insurance companies wishing voluntarily 

to report suspicious transactions that may relate to terrorist 

activity may call the Financial Crimes Enforcement Network’s 

Financial Institutions Hotline at 1–866–556–3974 in addition 

to filing timely a SAR–IC if required by this section. 

(c) Exception. An insurance company is not required to file a 

SAR–IC to report the submission to it of false or fraudulent 

information to obtain a policy or make a claim, unless the 

company has reason to believe that the false or fraudulent 

submission relates to money laundering or terrorist financing.

(d) Retention of records. An insurance company shall maintain 

a copy of any SAR–IC filed and the original or business record 

equivalent of any supporting documentation for a period of 

five years from the date of filing the SAR–IC. Supporting 

documentation shall be identified as such and maintained by 

the insurance company and shall be deemed to have been filed 

with the SAR–IC. When an insurance company has filed or is 

identified as a filer in a joint Suspicious Activity Report, the 

insurance company shall maintain a copy of such joint report 

(together with copies of any supporting documentation) for 

a period of five years from the date of filing. An insurance 

company shall make all supporting documentation available to 

FinCEN or any Federal, State, or local law enforcement agency, 

or any Federal regulatory authority that examines the insurance 

company for compliance with the Bank Secrecy Act, or any 

State regulatory authority administering a State law that requires 

the insurance company to comply with the Bank Secrecy Act 

or otherwise authorizes the State authority to ensure that the 

institution complies with the Bank Secrecy Act, upon request.

(e) Confidentiality of SARs. A SAR, and any information that 

would reveal the existence of a SAR, are confidential and shall 

not be disclosed except as authorized in this paragraph (e). 

For purposes of this paragraph (e) only, a SAR shall include 

any suspicious activity report filed with FinCEN pursuant to 

any regulation in this chapter.

(1) Prohibition on disclosures by insurance companies— 

(i) General rule. No insurance company, and no director, 

officer, employee, or agent of any insurance company, 

shall disclose a SAR or any information that would reveal 

the existence of a SAR. Any insurance company, and any 

director, officer, employee, or agent of any insurance 

company that is subpoenaed or otherwise requested to 

disclose a SAR or any information that would reveal the 

existence of a SAR, shall decline to produce the SAR or 

such information, citing this section and 31 U.S.C. 5318(g)

(2)(A)(i), and shall notify FinCEN of any such request and 

the response thereto. 

(ii) Rules of Construction. Provided that no person 

involved in any reported suspicious transaction is notified 

that the transaction has been reported, this paragraph (e)

(1) shall not be construed as prohibiting: 

(A) The disclosure by an insurance company, or any 

director, officer, employee, or agent of an insurance 

company, of: 

(1) A SAR, or any information that would reveal 

the existence of a SAR, to FinCEN or any Federal, 

State, or local law enforcement agency, or any Federal 

regulatory authority that examines the insurance 

company for compliance with the Bank Secrecy Act, 

or any State regulatory authority administering a State 

law that requires the insurance company to comply 

with the Bank Secrecy Act or otherwise authorizes the 

State authority to ensure that the institution complies 

with the Bank Secrecy Act; or 

(2) The underlying facts, transactions, and 

documents upon which a SAR is based, including 

but not limited to, disclosures to another financial 

institution, or any director, officer, employee, or 

agent of a financial institution, for the preparation 

of a joint SAR. 

(B) The sharing by an insurance company, or any 

director, officer, employee, or agent of the insurance 

company, of a SAR, or any information that would 

reveal the existence of a SAR, within the insurance 

company’s corporate organizational structure for 

purposes consistent with Title II of the Bank Secrecy 

Act as determined by regulation or in guidance. 

(2) Prohibition on disclosures by government authorities. 

A Federal, State, local, territorial, or Tribal government 

authority, or any director, officer, employee, or agent of any 

of the foregoing, shall not disclose a SAR, or any information 

that would reveal the existence of a SAR, except as necessary 

to fulfill official duties consistent with Title II of the Bank 
Money Laundering Statutes • 105

31 C.F.R. § 1025.320

Secrecy Act. For purposes of this section, “official duties” 

shall not include the disclosure of a SAR, or any information 

that would reveal the existence of a SAR, in response to a 

request for disclosure of non-public information or a request 

for use in a private legal proceeding, including a request 

pursuant to 31 CFR 1.11. 

(f) Limitation on liability. An insurance company, and 

any director, officer, employee, or agent of any insurance 

company, that makes a voluntary disclosure of any possible 

violation of law or regulation to a government agency or 

makes a disclosure pursuant to this section or any other 

authority, including a disclosure made jointly with another 

institution, shall be protected from liability to any person for 

any such disclosure, or for failure to provide notice of such 

disclosure to any person identified in the disclosure, or both, 

to the full extent provided by 31 U.S.C. 5318(g)(3).

(g) Compliance. Insurance companies shall be examined by 

FinCEN or its delegatees for compliance with this section. 

Failure to satisfy the requirements of this section may be a 

violation of the Bank Secrecy Act and of this chapter.

(h) Suspicious transaction reporting requirements for 

insurance companies registered or required to register with 

the Securities and Exchange Commission as broker-dealers in 

securities. An insurance company that is registered or required 

to register with the Securities and Exchange Commission as 

a broker-dealer in securities shall be deemed to have satisfied 

the requirements of this section for its broker-dealer activities 

to the extent that the company complies with the reporting 

requirements applicable to such activities pursuant to § 

1023.320 of this Chapter.

(i) Applicability date. This section applies to transactions 

occurring after May 2, 2006.

Note: §1025.320(a)–(h) was previously §103.16(b)–(i). 

§103.16(a) was deleted.

This section was further amended on Feb. 25, 2011. The 

changes went into effect on March 1, 2011.
106 • Money Laundering Statutes

31 C.F.R. § 103.11 

See the Cross Reference Index on page 53.

31 C.F.R. PART 103. 

FINANCIAL RECORDKEEPING 

AND REPORTING OF 

CURRENCY AND FOREIGN 

TRANSACTIONS

31 C.F.R. § 103.11. Meaning of terms.

To be used for violations occurring before

March 1, 2011.

When used in this part and in forms prescribed under this 

part, where not otherwise distinctly expressed or manifestly 

incompatible with the intent thereof, terms shall have the 

meanings ascribed in this section.

(a) Accept. A receiving financial institution, other than the 

recipient’s financial institution, accepts a transmittal order 

by executing the transmittal order. A recipient’s financial 

institution accepts a transmittal order by paying the recipient, 

by notifying the recipient of the receipt of the order or by 

otherwise becoming obligated to carry out the order.

(b) At one time. For purposes of Sec. 103.23 of this part, a 

person who transports, mails, ships or receives; is about to or 

attempts to transport, mail or ship; or causes the transportation, 

mailing, shipment or receipt of monetary instruments, is 

deemed to do so “at one time” if:

(1) That person either alone, in conjunction with or on 

behalf of others;

(2) Transports, mails, ships or receives in any manner; is 

about to transport, mail or ship in any manner; or causes the 

transportation, mailing, shipment or receipt in any manner of;

(3) Monetary instruments;

(4) Into the United States or out of the United States;

(5) Totaling more than $10,000;

(6)(i) On one calendar day or (ii) if for the purpose of 

evading the reporting requirements of Sec. 103.23, on one 

or more days.

(c) Bank. Each agent, agency, branch or office within the 

United States of any person doing business in one or more 

of the capacities listed below:

(1) A commercial bank or trust company organized under 

the laws of any State or of the United States;

(2) A private bank;

(3) A savings and loan association or a building and loan 

association organized under the laws of any State or of the 

United States;

(4) An insured institution as defined in section 401 of the 

National Housing Act;

(5) A savings bank, industrial bank or other thrift institution;

(6) A credit union organized under the law of any State or 

of the United States;

(7) Any other organization (except a money services 

business) chartered under the banking laws of any state and 

subject to the supervision of the bank supervisory authorities 

of a State;

(8) A bank organized under foreign law;

(9) Any national banking association or corporation acting 

under the provisions of section 25(a) of the Act of Dec. 23, 

1913, as added by the Act of Dec. 24, 1919, ch. 18, 41 Stat. 

378, as amended (12 U.S.C. 611-32).

(d) Beneficiary. The person to be paid by the beneficiary’s 

bank.

(e) Beneficiary’s bank. The bank or foreign bank identified 

in a payment order in which an account of the beneficiary is 

to be credited pursuant to the order or which otherwise is to 

make payment to the beneficiary if the order does not provide 

for payment to an account.

(f) Broker or dealer in securities. A broker or dealer in 

securities, registered or required to be registered with the 

Securities and Exchange Commission under the Securities 

Exchange Act of 1934, except persons who register pursuant 

to section 15(b)(11) of the Securities Exchange Act of 1934.

(g) Common carrier. Any person engaged in the business of 

transporting individuals or goods for a fee who holds himself 

out as ready to engage in such transportation for hire and who 

undertakes to do so indiscriminately for all persons who are 

prepared to pay the fee for the particular service offered.

(h) Currency. The coin and paper money of the United States 

or of any other country that is designated as legal tender and 

that circulates and is customarily used and accepted as a 

medium of exchange in the country of issuance. Currency 

includes U.S. silver certificates, U.S. notes and Federal 

Reserve notes. Currency also includes official foreign bank 

notes that are customarily used and accepted as a medium of 

exchange in a foreign country.

(i) [Reserved]

(j) Deposit account. Deposit accounts include transaction 

accounts described in paragraph (hh) of this section, savings 

accounts, and other time deposits.
Money Laundering Statutes • 107

31 C.F.R. § 103.11

(k) Domestic. When used herein, refers to the doing of 

business within the United States, and limits the applicability 

of the provision where it appears to the performance by such 

institutions or agencies of functions within the United States.

(l) Established customer. A person with an account with the 

financial institution, including a loan account or deposit or 

other asset account, or a person with respect to which the 

financial institution has obtained and maintains on file the 

person’s name and address, as well as taxpayer identification 

number (e.g., social security or employer identification 

number) or, if none, alien identification number or passport 

number and country of issuance, and to which the financial 

institution provides financial services relying on that 

information.

(m) Execution date. The day on which the receiving financial 

institution may properly issue a transmittal order in execution 

of the sender’s order. The execution date may be determined 

by instruction of the sender but cannot be earlier than the day 

the order is received, and, unless otherwise determined, is the 

day the order is received. If the sender’s instruction states a 

payment date, the execution date is the payment date or an 

earlier date on which execution is reasonably necessary to 

allow payment to the recipient on the payment date.

(n) Financial institution. Each agent, agency, branch, or office 

within the United States of any person doing business, whether 

or not on a regular basis or as an organized business concern, 

in one or more of the capacities listed below:

(1) A bank (except bank credit card systems);

(2) A broker or dealer in securities;

(3) A money services business as defined in paragraph 

(uu) of this section;

(4) A telegraph company;

(5)(i) Casino. A casino or gambling casino that: Is duly 

licensed or authorized to do business as such in the United 

States, whether under the laws of a State or of a Territory or 

Insular Possession of the United States, or under the Indian 

Gaming Regulatory Act or other federal, state, or tribal law 

or arrangement affecting Indian lands (including, without 

limitation, a casino operating on the assumption or under 

the view that no such authorization is required for casino 

operation on Indian lands); and has gross annual gaming 

revenue in excess of $1 million. The term includes the 

principal headquarters and every domestic branch or place 

of business of the casino.

(ii) For purposes of this paragraph (n)(5), “gross 

annual gaming revenue” means the gross gaming revenue 

received by a casino, during either the previous business 

year or the current business year of the casino. A casino 

or gambling casino which is a casino for purposes of 

this part solely because its gross annual gaming revenue 

exceeds $1,000,000 during its current business year, shall 

not be considered a casino for purposes of this part prior 

to the time in its current business year that its gross annual 

gaming revenue exceeds $1,000,000.

(iii) Any reference in this part, other than in this 

paragraph (n)(5) and in paragraph (n)(6) of this section, 

to a casino shall also include a reference to a card club, 

unless the provision in question contains specific language 

varying its application to card clubs or excluding card clubs 

from its application;

(6)(i) Card club. A card club, gaming club, card room, 

gaming room, or similar gaming establishment that is duly 

licensed or authorized to do business as such in the United 

States, whether under the laws of a State, of a Territory or 

Insular Possession of the United States, or of a political 

subdivision of any of the foregoing, or under the Indian 

Gaming Regulatory Act or other federal, state, or tribal law 

or arrangement affecting Indian lands (including, without 

limitation, an establishment operating on the assumption 

or under the view that no such authorization is required 

for operation on Indian lands for an establishment of such 

type), and that has gross annual gaming revenue in excess 

of $1,000,000. The term includes the principal headquarters 

and every domestic branch or place of business of the 

establishment. The term “casino,” as used in this Part shall 

include a reference to “card club” to the extent provided in 

paragraph (n)(5)(iii) of this section.

(ii) For purposes of this paragraph (n)(6), gross annual 

gaming revenue means the gross revenue derived from or 

generated by customer gaming activity (whether in the 

form of per-game or per-table fees, however computed, 

rentals, or otherwise) and received by an establishment, 

during either the establishment’s previous business year 

or its current business year. A card club that is a financial 

institution for purposes of this Part solely because its 

gross annual revenue exceeds $1,000,000 during its 

current business year, shall not be considered a financial 

institution for purposes of this Part prior to the time in 

its current business year when its gross annual revenue 

exceeds $1,000,000;

(7) A person subject to supervision by any state or federal 

bank supervisory authority.

(8) A futures commission merchant;

(9) An introducing broker in commodities.

(o) Foreign bank. A bank organized under foreign law, or an 

agency, branch or office located outside the United States of 

a bank. The term does not include an agent, agency, branch 

or office within the United States of a bank organized under 

foreign law.
108 • Money Laundering Statutes

31 C.F.R. § 103.11 

(p) Foreign financial agency. A person acting outside the 

United States for a person (except for a country, a monetary or 

financial authority acting as a monetary or financial authority, 

or an international financial institution of which the United 

States Government is a member) as a financial institution, 

bailee, depository trustee, or agent, or acting in a similar way 

related to money, credit, securities, gold, or a transaction in 

money, credit, securities, or gold.

(q) Funds transfer. The series of transactions, beginning 

with the originator’s payment order, made for the purpose 

of making payment to the beneficiary of the order. The term 

includes any payment order issued by the originator’s bank 

or an intermediary bank intended to carry out the originator’s 

payment order. A funds transfer is completed by acceptance 

by the beneficiary’s bank of a payment order for the benefit 

of the beneficiary of the originator’s payment order. Funds 

transfers governed by the Electronic Fund Transfer Act of 1978 

(Title XX, Pub. L. 95-630, 92 Stat. 3728, 15 U.S.C. 1693, et 

seq.), as well as any other funds transfers that are made through 

an automated clearinghouse, an automated teller machine, or a 

point-of-sale system, are excluded from this definition.

(r) Intermediary bank. A receiving bank other than the 

originator’s bank or the beneficiary’s bank.

(s) Intermediary financial institution. A receiving financial 

institution, other than the transmittor’s financial institution 

or the recipient’s financial institution. The term intermediary 

financial institution includes an intermediary bank.

(t) Investment security. An instrument which:

(1) Is issued in bearer or registered form;

(2) Is of a type commonly dealt in upon securities 

exchanges or markets or commonly recognized in any area 

in which it is issued or dealt in as a medium for investment;

(3) Is either one of a class or series or by its terms is 

divisible into a class or series of instruments; and

(4) Evidences a share, participation or other interest in 

property or in an enterprise or evidences an obligation of 

the issuer.

(u) Monetary instruments. 

(1) Monetary instruments include:

(i) Currency;

(ii) Traveler’s checks in any form;

(iii) All negotiable instruments (including personal 

checks, business checks, official bank checks, cashier’s 

checks, third-party checks, promissory notes (as that term 

is defined in the Uniform Commercial Code), and money 

orders) that are either in bearer form, endorsed without 

restriction, made out to a fictitious payee (for the purposes 

of Sec. 103.23), or otherwise in such form that title thereto 

passes upon delivery;

(iv) Incomplete instruments (including personal checks, 

business checks, official bank checks, cashier’s checks, 

third-party checks, promissory notes (as that term is 

defined in the Uniform Commercial Code), and money 

orders) signed but with the payee’s name omitted; and

(v) Securities or stock in bearer form or otherwise in 

such form that title thereto passes upon delivery.

(2) Monetary instruments do not include warehouse 

receipts or bills of lading.

(v) Originator. The sender of the first payment order in a 

funds transfer.

(w) Originator’s bank. The receiving bank to which the 

payment order of the originator is issued if the originator is 

not a bank or foreign bank, or the originator if the originator 

is a bank or foreign bank.

(x) Payment date. The day on which the amount of the 

transmittal order is payable to the recipient by the recipient’s 

financial institution. The payment date may be determined by 

instruction of the sender, but cannot be earlier than the day 

the order is received by the recipient’s financial institution 

and, unless otherwise prescribed by instruction, is the date 

the order is received by the recipient’s financial institution.

(y) Payment order. An instruction of a sender to a receiving 

bank, transmitted orally, electronically, or in writing, to pay, 

or to cause another bank or foreign bank to pay, a fixed or 

determinable amount of money to a beneficiary if:

(1) The instruction does not state a condition to payment 

to the beneficiary other than time of payment;

(2) The receiving bank is to be reimbursed by debiting 

an account of, or otherwise receiving payment from, the 

sender; and

(3) The instruction is transmitted by the sender directly to 

the receiving bank or to an agent, funds transfer system, or 

communication system for transmittal to the receiving bank.

(z) Person. An individual, a corporation, a partnership, a trust 

or estate, a joint stock company, an association, a syndicate, 

joint venture, or other unincorporated organization or 

group, an Indian Tribe (as that term is defined in the Indian 

Gaming Regulatory Act), and all entities cognizable as legal 

personalities.

(aa) Receiving bank. The bank or foreign bank to which the 

sender’s instruction is addressed.

(bb) Receiving financial institution. The financial institution 

or foreign financial agency to which the sender’s instruction 

is addressed. The term receiving financial institution includes 

a receiving bank.
Money Laundering Statutes • 109

31 C.F.R. § 103.11

(cc) Recipient. The person to be paid by the recipient’s 

financial institution. The term recipient includes a beneficiary, 

except where the recipient’s financial institution is a financial 

institution other than a bank.

(dd) Recipient’s financial institution. The financial institution 

or foreign financial agency identified in a transmittal order in 

which an account of the recipient is to be credited pursuant to 

the transmittal order or which otherwise is to make payment 

to the recipient if the order does not provide for payment 

to an account. The term recipient’s financial institution 

includes a beneficiary’s bank, except where the beneficiary 

is a recipient’s financial institution.

(ee) Secretary. The Secretary of the Treasury or any person 

duly authorized by the Secretary to perform the function 

mentioned.

(ff) Sender. The person giving the instruction to the receiving 

financial institution.

(gg) Structure (structuring). For purposes of section 103.53, a 

person structures a transaction if that person, acting alone, or 

in conjunction with, or on behalf of, other persons, conducts 

or attempts to conduct one or more transactions in currency, 

in any amount, at one or more financial institutions, on one 

or more days, in any manner, for the purpose of evading the 

reporting requirements under section 103.22 of this part. “In 

any manner” includes, but is not limited to, the breaking 

down of a single sum of currency exceeding $10,000 into 

smaller sums, including sums at or below $10,000, or the 

conduct of a transaction, or series of currency transactions, 

including transactions at or below $10,000. The transaction or 

transactions need not exceed the $10,000 reporting threshold 

at any single financial institution on any single day in order 

to constitute structuring within the meaning of this definition.

(hh) Transaction account. Transaction accounts include 

those accounts described in 12 U.S.C. 461(b)(1)(C), money 

market accounts and similar accounts that take deposits and 

are subject to withdrawal by check or other negotiable order.

(ii) Transaction.

(1) Except as provided in paragraph (ii)(2) of this section, 

transaction means a purchase, sale, loan, pledge, gift, transfer, 

delivery, or other disposition, and with respect to a financial 

institution includes a deposit, withdrawal, transfer between 

accounts, exchange of currency, loan, extension of credit, 

purchase or sale of any stock, bond, certificate of deposit, 

or other monetary instrument, security, contract of sale of a 

commodity for future delivery, option on any contract of sale 

of a commodity for future delivery, option on a commodity, 

purchase or redemption of any money order, payment or order 

for any money remittance or transfer, purchase or redemption 

of casino chips or tokens, or other gaming instruments or 

any other payment, transfer, or delivery by, through, or to a 

financial institution, by whatever means effected.

(2) For purposes of Sec. 103.22, and other provisions of 

this part relating solely to the report required by that section, 

the term “transaction in currency” shall mean a transaction 

involving the physical transfer of currency from one person 

to another. A transaction which is a transfer of funds by means 

of bank check, bank draft, wire transfer, or other written order, 

and which does not include the physical transfer of currency, 

is not a transaction in currency for this purpose.

(jj) Transmittal of funds. A series of transactions beginning 

with the transmittor’s transmittal order, made for the purpose 

of making payment to the recipient of the order. The term 

includes any transmittal order issued by the transmittor’s 

financial institution or an intermediary financial institution 

intended to carry out the transmittor’s transmittal order. The 

term transmittal of funds includes a funds transfer. A transmittal 

of funds is completed by acceptance by the recipient’s financial 

institution of a transmittal order for the benefit of the recipient 

of the transmittor’s transmittal order. Funds transfers governed 

by the Electronic Fund Transfer Act of 1978 (Title XX, Pub. 

L. 95-630, 92 Stat. 3728, 15 U.S.C. 1693, et seq.), as well as 

any other funds transfers that are made through an automated 

clearinghouse, an automated teller machine, or a point-of-sale 

system, are excluded from this definition.

(kk) Transmittal order. The term transmittal order includes a 

payment order and is an instruction of a sender to a receiving 

financial institution, transmitted orally, electronically, or in 

writing, to pay, or cause another financial institution or foreign 

financial agency to pay, a fixed or determinable amount of 

money to a recipient if:

(1) The instruction does not state a condition to payment 

to the recipient other than time of payment;

(2) The receiving financial institution is to be reimbursed 

by debiting an account of, or otherwise receiving payment 

from, the sender; and

(3) The instruction is transmitted by the sender directly 

to the receiving financial institution or to an agent or 

communication system for transmittal to the receiving 

financial institution.

(ll) Transmittor. The sender of the first transmittal order 

in a transmittal of funds. The term transmittor includes an 

originator, except where the transmittor’s financial institution 

is a financial institution or foreign financial agency other than 

a bank or foreign bank.

(mm) Transmittor’s financial institution. The receiving 

financial institution to which the transmittal order of the 

transmittor is issued if the transmittor is not a financial 

institution or foreign financial agency, or the transmittor if 

the transmittor is a financial institution or foreign financial 

agency. The term transmittor’s financial institution includes an 

originator’s bank, except where the originator is a transmittor’s 

financial institution other than a bank or foreign bank.
110 • Money Laundering Statutes

31 C.F.R. § 103.11 

(nn) United States. The States of the United States, the District 

of Columbia, the Indian lands (as that term is defined in the 

Indian Gaming Regulatory Act), and the Territories and 

Insular Possessions of the United States.

(oo) Business day. Business day, as used in this part with 

respect to banks, means that day, as normally communicated 

to its depository customers, on which a bank routinely posts 

a particular transaction to its customer’s account.

(pp) Postal Service. The United States Postal Service.

(qq) FinCEN. FinCEN means the Financial Crimes 

Enforcement Network, an office within the Office of the Under 

Secretary (Enforcement) of the Department of the Treasury.

(rr) Indian Gaming Regulatory Act. The Indian Gaming 

Regulatory Act of 1988, codified at 25 U.S.C. 2701-2721 

and 18 U.S.C. 1166-68.

(ss) State. The States of the United States and, wherever 

necessary to carry out the provisions of this part, the District 

of Columbia.

(tt) Territories and Insular Possessions. The Commonwealth 

of Puerto Rico, the United States Virgin Islands, Guam, the 

Commonwealth of the Northern Mariana Islands, and all other 

territories and possessions of the United States other than the 

Indian lands and the District of Columbia.

(uu) Money services business. Each agent, agency, branch, or 

office within the United States of any person doing business, 

whether or not on a regular basis or as an organized business 

concern, in one or more of the capacities listed in paragraphs 

(uu)(1) through (uu)(6) of this section. Notwithstanding the 

preceding sentence, the term “money services business” shall 

not include a bank, nor shall it include a person registered with, 

and regulated or examined by, the Securities and Exchange 

Commission or the Commodity Futures Trading Commission.

(1) Currency dealer or exchanger. A currency dealer 

or exchanger (other than a person who does not exchange 

currency in an amount greater than $1,000 in currency or 

monetary or other instruments for any person on any day in 

one or more transactions).

(2) Check casher. A person engaged in the business of a 

check casher (other than a person who does not cash checks 

in an amount greater than $1,000 in currency or monetary or 

other instruments for any person on any day in one or more 

transactions).

(3) Issuer of traveler’s checks, money orders, or stored 

value. An issuer of traveler’s checks, money orders, or, stored 

value (other than a person who does not issue such checks 

or money orders or stored value in an amount greater than 

$1,000 in currency or monetary or other instruments to any 

person on any day in one or more transactions).

(4) Seller or redeemer of traveler’s checks, money orders, 

or stored value. A seller or redeemer of traveler’s checks, 

money orders, or stored value (other than a person who 

does not sell such checks or money orders or stored value 

in an amount greater than $1,000 in currency or monetary 

or other instruments to or redeem such instruments for an 

amount greater than $1,000 in currency or monetary or other 

instruments from, any person on any day in one or more 

transactions).

(5) Money transmitter—

(i) In general. Money transmitter:

(A) Any person, whether or not licensed or required 

to be licensed, who engages as a business in accepting 

currency, or funds denominated in currency, and 

transmits the currency or funds, or the value of the 

currency or funds, by any means through a financial 

agency or institution, a Federal Reserve Bank or other 

facility of one or more Federal Reserve Banks, the 

Board of Governors of the Federal Reserve System, or 

both, or an electronic funds transfer network; or

(B) Any other person engaged as a business in the 

transfer of funds.

(ii) Facts and circumstances; Limitation. Whether a 

person “engages as a business” in the activities described in 

paragraph (uu)(5)(i) of this section is a matter of facts and 

circumstances. Generally, the acceptance and transmission 

of funds as an integral part of the execution and settlement 

of a transaction other than the funds transmission itself (for 

example, in connection with a bona fide sale of securities 

or other property), will not cause a person to be a money 

transmitter within the meaning of paragraph (uu)(5)(i) of 

this section.

(6) United States Postal Service. The United States Postal 

Service, except with respect to the sale of postage or philatelic 

products.

(vv) Stored value. Funds or monetary value represented in 

digital electronics format (whether or not specially encrypted) 

and stored or capable of storage on electronic media in such 

a way as to be retrievable and transferable electronically.

(ww) Security. Security means any instrument or interest 

described in section 3(a)(10) of the Securities Exchange Act 

of 1934, 15 U.S.C. 78c(a)(10).

(xx) Commodity. Any good, article, service, right, or interest 

described in section 1a(4) of the Commodity Exchange Act 

(“CEA”), 7 U.S.C. 1a(4).

(yy) Contract of sale. Any sale, agreement of sale, or 

agreement to sell as described in section 1a(7) of the CEA, 

7 U.S.C. 1a(7).
Money Laundering Statutes • 111

31 C.F.R. § 103.15

(zz) Futures commission merchant. Any person registered or 

required to be registered as a futures commission merchant 

with the Commodity Futures Trading Commission (“CFTC”) 

under the CEA, except persons who register pursuant to 

section 4f(a)(2) of the CEA, 7 U.S.C. 6f(a)(2).

(aaa) Introducing broker-commodities. Any person registered 

or required to be registered as an introducing broker with the 

CFTC under the CEA, except persons who register pursuant 

to section 4f(a)(2) of the CEA, 7 U.S.C. 6f(a)(2).

(bbb) Option on a commodity. Any agreement, contract, 

or transaction described in section 1a(26) of the CEA, 

7 U.S.C. 1a(26).

31 C.F.R. § 103.15. Reports by mutual funds of 

suspicious transactions.

To be used for violations occurring before

March 1, 2011.

(a) General. 

(1) Every investment company (as defined in section 3 

of the Investment Company Act of 1940 (15 U.S.C. 80a-3) 

(“Investment Company Act”) that is an open-end company (as 

defined in section 5 of the Investment Company Act (15 U.S.C. 

80a-5)) and that is registered, or is required to register, with 

the Securities and Exchange Commission pursuant to that 

Act (for purposes of this section, a “mutual fund”), shall file 

with the Financial Crimes Enforcement Network, to the extent 

and in the manner required by this section, a report of any 

suspicious transaction relevant to a possible violation of law 

or regulation. A mutual fund may also file with the Financial 

Crimes Enforcement Network a report of any suspicious 

transaction that it believes is relevant to the possible violation 

of any law or regulation, but whose reporting is not required 

by this section. Filing a report of a suspicious transaction does 

not relieve a mutual fund from the responsibility of complying 

with any other reporting requirements imposed by the Securities 

and Exchange Commission.

(2) A transaction requires reporting under this section if it 

is conducted or attempted by, at, or through a mutual fund, it 

involves or aggregates funds or other assets of at least $5,000, 

and the mutual fund knows, suspects, or has reason to suspect 

that the transaction (or a pattern of transactions of which the 

transaction is a part):

(i) Involves funds derived from illegal activity or is 

intended or conducted in order to hide or disguise funds 

or assets derived from illegal activity (including, without 

limitation, the ownership, nature, source, location, or control 

of such funds or assets) as part of a plan to violate or evade 

any Federal law or regulation or to avoid any transaction 

reporting requirement under Federal law or regulation;

(ii) Is designed, whether through structuring or other 

means, to evade any requirements of this part or any other 

regulations promulgated under the Bank Secrecy Act, 

Public Law 91-508, as amended, codified at 12 U.S.C. 

1829b, 12 U.S.C. 1951-1959, and 31 U.S.C. 5311-5314, 

5316-5332;

(iii) Has no business or apparent lawful purpose or is not 

the sort in which the particular customer would normally 

be expected to engage, and the mutual fund knows of no 

reasonable explanation for the transaction after examining 

the available facts, including the background and possible 

purpose of the transaction; or

(iv) Involves use of the mutual fund to facilitate criminal 

activity.

(3) More than one mutual fund may have an obligation 

to report the same transaction under this section, and other 

financial institutions may have separate obligations to report 

suspicious activity with respect to the same transaction 

pursuant to other provisions of this part. In those instances, 

no more than one report is required to be filed by the mutual 

fund(s) and other financial institution(s) involved in the 

transaction, provided that the report filed contains all relevant 

facts, including the name of each financial institution and 

the words “joint filing” in the narrative section, and each 

institution maintains a copy of the report filed, along with 

any supporting documentation.

(b) Filing and notification procedures—

(1) What to file. A suspicious transaction shall be reported 

by completing a Suspicious Activity Report by Securities 

and Futures Industries (“SAR-SF”), and collecting and 

maintaining supporting documentation as required by 

paragraph (c) of this section.

(2) Where to file. Form SAR-SF shall be filed with the 

Financial Crimes Enforcement Network in accordance with 

the instructions to the Form SAR-SF.

(3) When to file. A Form SAR-SF shall be filed no later 

than 30 calendar days after the date of the initial detection by 

the reporting mutual fund of facts that may constitute a basis 

for filing a Form SAR-SF under this section. If no suspect is 

identified on the date of such initial detection, a mutual fund 

may delay filing a Form SAR-SF for an additional 30 calendar 

days to identify a suspect, but in no case shall reporting be 

delayed more than 60 calendar days after the date of such 

initial detection.

(4) Mandatory notification to law enforcement. In 

situations involving violations that require immediate 

attention, such as suspected terrorist financing or ongoing 

money laundering schemes, a mutual fund shall immediately 

notify by telephone an appropriate law enforcement authority 

in addition to filing timely a Form SAR-SF.
112 • Money Laundering Statutes

31 C.F.R. § 103.16 

(5) Voluntary notification to the Financial Crimes 

Enforcement Network or the Securities and Exchange 

Commission. Mutual funds wishing voluntarily to report 

suspicious transactions that may relate to terrorist activity may 

call the Financial Crimes Enforcement Network’s Financial 

Institutions Hotline at 1-866-556-3974 in addition to filing 

timely a Form SAR-SF if required by this section. The mutual 

fund may also, but is not required to, contact the Securities 

and Exchange Commission to report in such situations.

(c) Retention of records. A mutual fund shall maintain a 

copy of any Form SAR-SF filed by the fund or on its behalf 

(including joint reports), and the original (or business record 

equivalent) of any supporting documentation concerning 

any Form SAR-SF that it files (or is filed on its behalf), for 

a period of five years from the date of filing the Form SARSF. Supporting documentation shall be identified as such and 

maintained by the mutual fund, and shall be deemed to have 

been filed with the Form SAR-SF. The mutual fund shall 

make all supporting documentation available to the Financial 

Crimes Enforcement Network, any other appropriate law 

enforcement agencies or federal or state securities regulators, 

and for purposes of an examination of a broker-dealer pursuant 

to Sec. 103.19(g) regarding a joint report, to a self-regulatory 

organization (as defined in section 3(a)(26) of the Securities 

Exchange Act of 1934, 15 U.S.C. 78c(a)(26)) registered with 

the Securities and Exchange Commission, upon request.

(d) Confidentiality of reports. No mutual fund, and no director, 

officer, employee, or agent of any mutual fund, who reports a 

suspicious transaction under this part (whether such a report 

is required by this section or made voluntarily), may notify 

any person involved in the transaction that the transaction has 

been reported, except to the extent permitted by paragraph 

(a)(3) of this section. Any person subpoenaed or otherwise 

required to disclose a Form SAR-SF or the information 

contained in a Form SAR-SF, including a Form SAR-SF filed 

jointly with another financial institution involved in the same 

transaction (except where such disclosure is requested by the 

Financial Crimes Enforcement Network, the Securities and 

Exchange Commission, another appropriate law enforcement 

or regulatory agency, or, in the case of a joint report involving 

a broker-dealer, a self-regulatory organization registered with 

the Securities and Exchange Commission conducting an 

examination of such broker-dealer pursuant to Sec. 103.19(g)), 

shall decline to produce Form SAR-SF or to provide any 

information that would disclose that a Form SAR-SF has 

been prepared or filed, citing this paragraph (d) and 31 U.S.C. 

5318(g)(2), and shall notify the Financial Crimes Enforcement 

Network of any such request and its response thereto.

(e) Limitation of liability. A mutual fund, and any director, 

officer, employee, or agent of such mutual fund, that makes a 

report of any possible violation of law or regulation pursuant 

to this section, including a joint report (whether such report is 

required by this section or made voluntarily) shall be protected 

from liability for any disclosure contained in, or for failure to 

disclose the fact of, such report, or both, to the extent provided 

in 31 U.S.C. 5318(g)(3).

(f) Examinations and enforcement. Compliance with this section 

shall be examined by the Department of the Treasury, through 

the Financial Crimes Enforcement Network or its delegees, 

under the terms of the Bank Secrecy Act. Failure to satisfy the 

requirements of this section may constitute a violation of the 

reporting rules of the Bank Secrecy Act and of this part.

(g) Effective date. This section applies to transactions 

occurring after October 31, 2006.

31 C.F.R. § 103.16. Reports by insurance 

companies of suspicious transactions.

To be used for violations occurring before

March 1, 2011.

(a) Definitions. For purposes of this section:

(1) Annuity contract means any agreement between the 

insurer and the contract owner whereby the insurer promises to 

pay out a fixed or variable income stream for a period of time.

(2) Bank has the same meaning as provided in Sec. 

103.11(c).

(3) Broker-dealer in securities has the same meaning as 

provided in Sec. 103.11(f).

(4) Covered product means:

(i) A permanent life insurance policy, other than a group 

life insurance policy;

(ii) An annuity contract, other than a group annuity 

contract; or

(iii) Any other insurance product with features of cash 

value or investment.

(5) Group annuity contract means a master contract providing 

annuities to a group of persons under a single contract.

(6) Group life insurance policy means any life insurance 

policy under which a number of persons and their dependents, 

if appropriate, are insured under a single policy.

(7) Insurance agent means a sales and/or service 

representative of an insurance company. The term “insurance 

agent” encompasses any person that sells, markets, distributes, 

or services an insurance company’s covered products, 

including, but not limited to, a person who represents only one 

insurance company, a person who represents more than one 

insurance company, and a bank or broker-dealer in securities 

that sells any covered product of an insurance company.
Money Laundering Statutes • 113

31 C.F.R. § 103.16

(8) Insurance broker means a person who, by acting as the 

customer’s representative, arranges and/or services covered 

products on behalf of the customer.

(9) Insurance company or insurer.

(i) Except as provided in paragraph (a)(9)(ii) of this 

section, the term “insurance company” or “insurer” means 

any person engaged within the United States as a business 

in the issuing or underwriting of any covered product.

(ii) The term “insurance company” or “insurer” does 

not include an insurance agent or insurance broker.

(10) Permanent life insurance policy means an agreement 

that contains a cash value or investment element and that 

obligates the insurer to indemnify or to confer a benefit upon 

the insured or beneficiary to the agreement contingent upon 

the death of the insured.

(11) Person has the same meaning as provided in Sec. 

103.11(z).

(12) United States has the same meaning as provided in 

Sec. 103.11(nn).

(b) General.

(1) Each insurance company shall file with the Financial 

Crimes Enforcement Network, to the extent and in the manner 

required by this section, a report of any suspicious transaction 

involving a covered product that is relevant to a possible 

violation of law or regulation. An insurance company may 

also file with the Financial Crimes Enforcement Network by 

using the form specified in paragraph 

(c)(1) of this section or otherwise, a report of any suspicious 

transaction that it believes is relevant to the possible violation 

of any law or regulation but the reporting of which is not 

required by this section.

(2) A transaction requires reporting under this section if 

it is conducted or attempted by, at, or through an insurance 

company, and involves or aggregates at least $5,000 in funds 

or other assets, and the insurance company knows, suspects, 

or has reason to suspect that the transaction (or a pattern of 

transactions of which the transaction is a part):

(i) Involves funds derived from illegal activity or is 

intended or conducted in order to hide or disguise funds 

or assets derived from illegal activity (including, without 

limitation, the ownership, nature, source, location, or 

control of such funds or assets) as part of a plan to violate 

or evade any federal law or regulation or to avoid any 

transaction reporting requirement under federal law or 

regulation;

(ii) Is designed, whether through structuring or other 

means, to evade any requirements of this part or of any 

other regulations promulgated under the Bank Secrecy 

Act, Public Law 91-508, as amended, codified at 12 U.S.C. 

1829b, 12 U.S.C. 1951-1959, and 31 U.S.C. 5311-5314; 

5316-5332;

(iii) Has no business or apparent lawful purpose or is not 

the sort in which the particular customer would normally 

be expected to engage, and the insurance company knows 

of no reasonable explanation for the transaction after 

examining the available facts, including the background 

and possible purpose of the transaction; or

(iv) Involves use of the insurance company to facilitate 

criminal activity.

(3)(i) An insurance company is responsible for reporting 

suspicious transactions conducted through its insurance agents 

and insurance brokers. Accordingly, an insurance company 

shall establish and implement policies and procedures 

reasonably designed to obtain customer-related information 

necessary to detect suspicious activity from all relevant 

sources, including from its insurance agents and insurance 

brokers, and shall report suspicious activity based on such 

information.

(ii) Certain insurance agents may have a separate 

obligation to report suspicious activity pursuant to other 

provisions of this part. In those instances, no more than one 

report is required to be filed by the financial institutions 

involved in the transaction, as long as the report filed 

contains all relevant facts, including the names of both 

institutions and the words “joint filing” in the narrative 

section, and both institutions maintain a copy of the report 

filed, along with any supporting documentation.

(iii) An insurance company that issues variable 

insurance products funded by separate accounts that meet 

the definition of a mutual fund in Sec. 103.15(a)(1) shall 

file reports of suspicious transactions pursuant to Sec. 

103.15.

(c) Filing procedures—

(1) What to file. A suspicious transaction shall be reported 

by completing a Suspicious Activity Report by Insurance 

Companies (SAR-IC), and collecting and maintaining 

supporting documentation as required by paragraph (e) of 

this section.

(2) Where to file. The SAR-IC shall be filed with the 

Financial Crimes Enforcement Network as indicated in the 

instructions to the SAR-IC.

(3) When to file. A SAR-IC shall be filed no later than 

30 calendar days after the date of the initial detection by the 

insurance company of facts that may constitute a basis for 

filing a SAR-IC under this section. If no suspect is identified 

on the date of such initial detection, an insurance company 

may delay filing a SAR-IC for an additional 30 calendar days 
114 • Money Laundering Statutes

31 C.F.R. § 103.18 

to identify a suspect, but in no case shall reporting be delayed 

more than 60 calendar days after the date of such initial 

detection. In situations that require immediate attention, such 

as terrorist financing or ongoing money laundering schemes, 

the insurance company shall immediately notify by telephone 

an appropriate law enforcement authority in addition to filing 

timely a SAR-IC. Insurance companies wishing voluntarily 

to report suspicious transactions that may relate to terrorist 

activity may call the Financial Crimes Enforcement Network’s 

Financial Institutions Hotline at 1-866-556-3974 in addition 

to filing timely a SAR-IC if required by this section.

(d) Exception. An insurance company is not required to file 

a SAR-IC to report the submission to it of false or fraudulent 

information to obtain a policy or make a claim, unless the 

company has reason to believe that the false or fraudulent 

submission relates to money laundering or terrorist financing.

(e) Retention of records. An insurance company shall maintain 

a copy of any SAR-IC filed and the original or business record 

equivalent of any supporting documentation for a period of 

five years from the date of filing the SAR-IC. Supporting 

documentation shall be identified as such and maintained by 

the insurance company and shall be deemed to have been filed 

with the SAR-IC. When an insurance company has filed or is 

identified as a filer in a joint Suspicious Activity Report, the 

insurance company shall maintain a copy of such joint report 

(together with copies of any supporting documentation) for 

a period of five years from the date of filing. An insurance 

company shall make all supporting documentation available 

to the Financial Crimes Enforcement Network and any other 

appropriate law enforcement agencies or supervisory agencies 

upon request.

(f) Confidentiality of reports; limitation of liability. No 

insurance company, and no director, officer, employee, agent, 

or broker of any insurance company, who reports a suspicious 

transaction under this part (whether such a report is required 

by this section or made voluntarily), may notify any person 

involved in the transaction that the transaction has been 

reported, except to the extent permitted by paragraph (b)(3) 

of this section. Thus, any insurance company subpoenaed or 

otherwise requested to disclose a SAR-IC or the information 

contained in a SAR-IC (or a copy of a joint Suspicious Activity 

Report filed with another financial institution involved in 

the same transaction, including an insurance agent), except 

where such disclosure is requested by the Financial Crimes 

Enforcement Network or another appropriate law enforcement 

or supervisory agency, shall decline to produce the Suspicious 

Activity Report or to provide any information that would 

disclose that a Suspicious Activity Report has been prepared 

or filed, citing as authority 31 CFR 103.16 and 31 U.S.C. 

5318(g)(2), and shall notify the Financial Crimes Enforcement 

Network of any such request and its response thereto. An 

insurance company, and any director, officer, employee, agent, 

or broker of such insurance company, that makes a report 

pursuant to this section, including a joint report (whether such 

report is required by this section or made voluntarily) shall 

be protected from liability for any disclosure contained in, or 

for failure to disclose the fact of, such report, or both, to the 

extent provided by 31 U.S.C. 5318(g)(3).

(g) Compliance. Compliance with this section shall be 

examined by the Department of the Treasury, through the 

Financial Crimes Enforcement Network or its delegees, under 

the terms of the Bank Secrecy Act. Failure to comply with 

the requirements of this section may constitute a violation of 

the reporting rules of the Bank Secrecy Act and of this part.

(h) Suspicious transaction reporting requirements for insurance 

companies registered or required to register with the Securities 

and Exchange Commission as broker-dealers in securities. An 

insurance company that is registered or required to register with 

the Securities and Exchange Commission as a broker-dealer in 

securities shall be deemed to have satisfied the requirements of 

this section for its broker-dealer activities to the extent that the 

company complies with the reporting requirements applicable 

to such activities pursuant to Sec. 103.19.

(i) Applicability date. This section applies to transactions 

occurring after May 2, 2006.

31 C.F.R. § 103.18. Reports by banks of 

suspicious transactions.

To be used for violations occurring before

March 1, 2011.

(a) General.

(1) Every bank shall file with the Treasury Department, to 

the extent and in the manner required by this section, a report 

of any suspicious transaction relevant to a possible violation 

of law or regulation. A bank may also file with the Treasury 

Department by using the Suspicious Activity Report specified 

in paragraph (b)(1) of this section or otherwise, a report of 

any suspicious transaction that it believes is relevant to the 

possible violation of any law or regulation but whose reporting 

is not required by this section.

(2) A transaction requires reporting under the terms of 

this section if it is conducted or attempted by, at, or through 

the bank, it involves or aggregates at least $5,000 in funds 

or other assets, and the bank knows, suspects, or has reason 

to suspect that:

(i) The transaction involves funds derived from illegal 

activities or is intended or conducted in order to hide or 

disguise funds or assets derived from illegal activities 

(including, without limitation, the ownership, nature, 

source, location, or control of such funds or assets) as part 
Money Laundering Statutes • 115

31 C.F.R. § 103.19

of a plan to violate or evade any federal law or regulation 

or to avoid any transaction reporting requirement under 

federal law or regulation;

(ii) The transaction is designed to evade any requirements 

of this part or of any other regulations promulgated under 

the Bank Secrecy Act, Pub. L. 91-508, as amended, 

codified at 12 U.S.C. 1829b, 12 U.S.C. 1951-1959, and 

31 U.S.C. 5311-5330; or

(iii) The transaction has no business or apparent lawful 

purpose or is not the sort in which the particular customer 

would normally be expected to engage, and the bank knows 

of no reasonable explanation for the transaction after 

examining the available facts, including the background 

and possible purpose of the transaction.

(b) Filing procedures—

(1) What to file. A suspicious transaction shall be reported 

by completing a Suspicious Activity Report (“SAR”), and 

collecting and maintaining supporting documentation as 

required by paragraph (d) of this section.

(2) Where to file. The SAR shall be filed with FinCEN in 

a central location, to be determined by FinCEN, as indicated 

in the instructions to the SAR.

(3) When to file. A bank is required to file a SAR no later 

than 30 calendar days after the date of initial detection by the 

bank of facts that may constitute a basis for filing a SAR. If 

no suspect was identified on the date of the detection of the 

incident requiring the filing, a bank may delay filing a SAR 

for an additional 30 calendar days to identify a suspect. In no 

case shall reporting be delayed more than 60 calendar days 

after the date of initial detection of a reportable transaction. In 

situations involving violations that require immediate attention, 

such as, for example, ongoing money laundering schemes, the 

bank shall immediately notify, by telephone, an appropriate 

law enforcement authority in addition to filing timely a SAR.

(c) Exceptions. A bank is not required to file a SAR for a 

robbery or burglary committed or attempted that is reported to 

appropriate law enforcement authorities, or for lost, missing, 

counterfeit, or stolen securities with respect to which the 

bank files a report pursuant to the reporting requirements of 

17 CFR 240.17f-1.

(d) Retention of records. A bank shall maintain a copy of any 

SAR filed and the original or business record equivalent of 

any supporting documentation for a period of five years from 

the date of filing the SAR. Supporting documentation shall be 

identified, and maintained by the bank as such, and shall be 

deemed to have been filed with the SAR. A bank shall make 

all supporting documentation available to FinCEN and any 

appropriate law enforcement agencies or bank supervisory 

agencies upon request.

(e) Confidentiality of reports; limitation of liability. No bank or 

other financial institution, and no director, officer, employee, 

or agent of any bank or other financial institution, who reports 

a suspicious transaction under this part, may notify any 

person involved in the transaction that the transaction has 

been reported. Thus, any person subpoenaed or otherwise 

requested to disclose a SAR or the information contained in a 

SAR, except where such disclosure is requested by FinCEN or 

an appropriate law enforcement or bank supervisory agency, 

shall decline to produce the SAR or to provide any information 

that would disclose that a SAR has been prepared or filed, 

citing this paragraph (e) and 31 U.S.C. 5318(g)(2), and shall 

notify FinCEN of any such request and its response thereto. 

A bank, and any director, officer, employee, or agent of such 

bank, that makes a report pursuant to this section (whether 

such report is required by this section or is made voluntarily) 

shall be protected from liability for any disclosure contained 

in, or for failure to disclose the fact of such report, or both, to 

the full extent provided by 31 U.S.C. 5318(g)(3).

(f) Compliance. Compliance with this section shall be audited 

by the Department of the Treasury, through FinCEN or its 

delegees under the terms of the Bank Secrecy Act. Failure to 

satisfy the requirements of this section may be a violation of 

the reporting rules of the Bank Secrecy Act and of this part. 

Such failure may also violate provisions of Title 12 of the 

Code of Federal Regulations.

31 C.F.R. § 103.19. Reports by brokers 

or dealers in securities of suspicious 

transactions.

To be used for violations occurring before

March 1, 2011.

(a) General.

(1) Every broker or dealer in securities within the United 

States (for purposes of this section, a “broker-dealer”) shall 

file with FinCEN, to the extent and in the manner required by 

this section, a report of any suspicious transaction relevant to 

a possible violation of law or regulation. A broker-dealer may 

also file with FinCEN a report of any suspicious transaction 

that it believes is relevant to the possible violation of any 

law or regulation but whose reporting is not required by this 

section. Filing a report of a suspicious transaction does not 

relieve a broker-dealer from the responsibility of complying 

with any other reporting requirements imposed by the 

Securities and Exchange Commission or a self-regulatory 

organization (“SRO”) (as defined in section 3(a)(26) of the 

Securities Exchange Act of 1934, 15 U.S.C. 78c(a)(26)).

(2) A transaction requires reporting under the terms of 

this section if it is conducted or attempted by, at, or through 

a broker-dealer, it involves or aggregates funds or other assets 
116 • Money Laundering Statutes

31 C.F.R. § 103.19 

of at least $5,000, and the broker-dealer knows, suspects, 

or has reason to suspect that the transaction (or a pattern of 

transactions of which the transaction is a part):

(i) Involves funds derived from illegal activity or is 

intended or conducted in order to hide or disguise funds 

or assets derived from illegal activity (including, without 

limitation, the ownership, nature, source, location, or control 

of such funds or assets) as part of a plan to violate or evade 

any federal law or regulation or to avoid any transaction 

reporting requirement under federal law or regulation;

(ii) Is designed, whether through structuring or other 

means, to evade any requirements of this part or of any 

other regulations promulgated under the Bank Secrecy 

Act, Public Law 91-508, as amended, codified at 12 U.S.C. 

1829b, 12 U.S.C. 1951-1959, and 31 U.S.C. 5311-5332;

(iii) Has no business or apparent lawful purpose or is not 

the sort in which the particular customer would normally 

be expected to engage, and the broker-dealer knows of no 

reasonable explanation for the transaction after examining 

the available facts, including the background and possible 

purpose of the transaction; or

(iv) Involves use of the broker-dealer to facilitate 

criminal activity.

(3) The obligation to identify and properly and timely to 

report a suspicious transaction rests with each broker-dealer 

involved in the transaction, provided that no more than one 

report is required to be filed by the broker-dealers involved 

in a particular transaction (so long as the report filed contains 

all relevant facts).

(b) Filing procedures—

(1) What to file. A suspicious transaction shall be reported 

by completing a Suspicious Activity Report—Brokers 

or Dealers in Securities (“SAR-S-F”), and collecting and 

maintaining supporting documentation as required by 

paragraph (d) of this section.

(2) Where to file. The SAR-BD shall be filed with FinCEN 

in a central location, to be determined by FinCEN, as indicated 

in the instructions to the SAR-S-F.

(3) When to file. A SAR-S-F shall be filed no later than 

30 calendar days after the date of the initial detection by the 

reporting broker-dealer of facts that may constitute a basis for 

filing a SAR-S-F under this section. If no suspect is identified 

on the date of such initial detection, a broker-dealer may delay 

filing a SAR-S-F for an additional 30 calendar days to identify 

a suspect, but in no case shall reporting be delayed more 

than 60 calendar days after the date of such initial detection. 

In situations involving violations that require immediate 

attention, such as terrorist financing or ongoing money 

laundering schemes, the broker-dealer shall immediately 

notify by telephone an appropriate law enforcement authority 

in addition to filing timely a SAR-S-F. Broker-dealers wishing 

voluntarily to report suspicious transactions that may relate 

to terrorist activity may call FinCEN’s Financial Institutions 

Hotline at 1-866-556-3974 in addition to filing timely a SARS-F if required by this section. The broker-dealer may also, 

but is not required to, contact the Securities and Exchange 

Commission to report in such situations.

(c) Exceptions.

(1) A broker-dealer is not required to file a SAR-S-F to 

report:

(i) A robbery or burglary committed or attempted 

of the broker-dealer that is reported to appropriate law 

enforcement authorities, or for lost, missing, counterfeit, 

or stolen securities with respect to which the broker-dealer 

files a report pursuant to the reporting requirements of 

17 CFR 240.17f-1;

(ii) A violation otherwise required to be reported under 

this section of any of the federal securities laws or rules 

of an SRO by the broker-dealer or any of its officers, 

directors, employees, or other registered representatives, 

other than a violation of 17 CFR 240.17a-8 or 17 CFR 

405.4, so long as such violation is appropriately reported 

to the SEC or an SRO.

(2) A broker-dealer may be required to demonstrate that it 

has relied on an exception in paragraph (c)(1) of this section, 

and must maintain records of its determinations to do so for 

the period specified in paragraph (d) of this section. To the 

extent that a Form RE-3, Form U-4, or Form U-5 concerning 

the transaction is filed consistent with the SRO rules, a copy 

of that form will be a sufficient record for purposes of this 

paragraph (c)(2).

(3) For the purposes of this paragraph (c) the term “federal 

securities laws” means the “securities laws,” as that term is 

defined in section 3(a)(47) of the Securities Exchange Act 

of 1934, 15 U.S.C. 78c(a)(47), and the rules and regulations 

promulgated by the Securities and Exchange Commission 

under such laws.

(d) Retention of records. A broker-dealer shall maintain a 

copy of any SAR-S-F filed and the original or business record 

equivalent of any supporting documentation for a period of 

five years from the date of filing the SAR-S-F. Supporting 

documentation shall be identified as such and maintained 

by the broker-dealer, and shall be deemed to have been filed 

with the SAR-S-F. A broker-dealer shall make all supporting 

documentation available to FinCEN, any other appropriate 

law enforcement agencies or federal or state securities 

regulators, and for purposes of paragraph (g) of this section, 

to an SRO registered with the Securities and Exchange 

Commission, upon request.
Money Laundering Statutes • 117

31 C.F.R. § 103.20

(e) Confidentiality of reports. No financial institution, and 

no director, officer, employee, or agent of any financial 

institution, who reports a suspicious transaction under this 

part, may notify any person involved in the transaction 

that the transaction has been reported, except to the extent 

permitted by paragraph (a) (3) of this section. Thus, any 

person subpoenaed or otherwise requested to disclose 

a SAR-S-F or the information contained in a SAR-S-F, 

except where such disclosure is requested by FinCEN, the 

Securities and Exchange Commission, or another appropriate 

law enforcement or regulatory agency, or for purposes of 

paragraph (g) of this section, an SRO registered with the 

Securities and Exchange Commission, shall decline to 

produce the SAR-S-F or to provide any information that 

would disclose that a SAR-S-F has been prepared or filed, 

citing this paragraph (e) and 31 U.S.C. 5318(g)(2), and shall 

notify FinCEN of any such request and its response thereto.

(f) Limitation of liability. A broker-dealer, and any director, 

officer, employee, or agent of such broker-dealer, that makes a 

report of any possible violation of law or regulation pursuant 

to this section or any other authority (or voluntarily) shall 

not be liable to any person under any law or regulation of 

the United States (or otherwise to the extent also provided in 

31 U.S.C. 5318(g)(3), including in any arbitration proceeding) 

for any disclosure contained in, or for failure to disclose the 

fact of, such report.

(g) Examination and enforcement. Compliance with this 

section shall be examined by the Department of the Treasury, 

through FinCEN or its delegees, under the terms of the 

Bank Secrecy Act. Reports filed under this section shall be 

made available to an SRO registered with the Securities 

and Exchange Commission examining a broker-dealer for 

compliance with the requirements of this section. Failure 

to satisfy the requirements of this section may constitute a 

violation of the reporting rules of the Bank Secrecy Act and 

of this part.

(h) Effective date. This section applies to transactions 

occurring after December 30, 2002.

31 C.F.R. § 103.20. Reports by money services 

businesses of suspicious transactions.

To be used for violations occurring before

March 1, 2011.

(a) General.

(1) Every money services business, described in Sec. 

103.11(uu) (1), (3), (4), (5), or (6), shall file with the Treasury 

Department, to the extent and in the manner required by this 

section, a report of any suspicious transaction relevant to a 

possible violation of law or regulation. Any money services 

business may also file with the Treasury Department, by 

using the form specified in paragraph (b)(1) of this section, 

or otherwise, a report of any suspicious transaction that it 

believes is relevant to the possible violation of any law or 

regulation but whose reporting is not required by this section.

(2) A transaction requires reporting under the terms of 

this section if it is conducted or attempted by, at, or through 

a money services business, involves or aggregates funds or 

other assets of at least $2,000 (except as provided in paragraph 

(a) (3) of this section), and the money services business knows, 

suspects, or has reason to suspect that the transaction (or a 

pattern of transactions of which the transaction is a part):

(i) Involves funds derived from illegal activity or is 

intended or conducted in order to hide or disguise funds 

or assets derived from illegal activity (including, without 

limitation, the ownership, nature, source, location, or 

control of such funds or assets) as part of a plan to violate 

or evade any federal law or regulation or to avoid any 

transaction reporting requirement under federal law or 

regulation;

(ii) Is designed, whether through structuring or other 

means, to evade any requirements of this part or of any 

other regulations promulgated under the Bank Secrecy 

Act, Public Law 91-508, as amended, codified at 12 U.S.C. 

1829b, 12 U.S.C. 1951-1959, and 31 U.S.C. 5311-5330; or

(iii) Serves no business or apparent lawful purpose, 

and the reporting money services business knows of no 

reasonable explanation for the transaction after examining 

the available facts, including the background and possible 

purpose of the transaction.

(iv) Involves use of the money services business to 

facilitate criminal activity.

(3) To the extent that the identification of transactions 

required to be reported is derived from a review of clearance 

records or other similar records of money orders or traveler’s 

checks that have been sold or processed, an issuer of money 

orders or traveler’s checks shall only be required to report 

a transaction or pattern of transactions that involves or 

aggregates funds or other assets of at least $5,000.

(4) The obligation to identify and properly and timely to 

report a suspicious transaction rests with each money services 

business involved in the transaction, provided that no more 

than one report is required to be filed by the money services 

businesses involved in a particular transaction (so long as the 

report filed contains all relevant facts). Whether, in addition to 

any liability on its own for failure to report, a money services 

business that issues the instrument or provides the funds 

transfer service involved in the transaction may be liable for 

the failure of another money services business involved in 

the transaction to report that transaction depends upon the 
118 • Money Laundering Statutes

31 C.F.R. § 103.21 

nature of the contractual or other relationship between the 

businesses, and the legal effect of the facts and circumstances 

of the relationship and transaction involved, under general 

principles of the law of agency.

(5) Notwithstanding the provisions of this section, a 

transaction that involves solely the issuance, or facilitation of 

the transfer of stored value, or the issuance, sale, or redemption 

of stored value, shall not be subject to reporting under this 

paragraph (a), until the promulgation of rules specifically 

relating to such reporting.

(b) Filing procedures—

(1) What to file. A suspicious transaction shall be 

reported by completing a Suspicious Activity Report-MSB 

(“SAR-MSB”), and collecting and maintaining supporting 

documentation as required by paragraph (c) of this section.

(2) Where to file. The SAR-MSB shall be filed in a central 

location to be determined by FinCEN, as indicated in the 

instructions to the SAR-MSB.

(3) When to file. A money services business subject to 

this section is required to file each SAR-MSB no later than 

30 calendar days after the date of the initial detection by 

the money services business of facts that may constitute a 

basis for filing a SAR-MSB under this section. In situations 

involving violations that require immediate attention, such 

as ongoing money laundering schemes, the money services 

business shall immediately notify by telephone an appropriate 

law enforcement authority in addition to filing a SAR-MSB. 

Money services businesses wishing voluntarily to report 

suspicious transactions that may relate to terrorist activity 

may call FinCEN’s Financial Institutions Hotline at 1-866-

556-3974 in addition to filing timely a SAR-MSB if required 

by this section.

(c) Retention of records. A money services business shall 

maintain a copy of any SAR-MSB filed and the original or 

business record equivalent of any supporting documentation 

for a period of five years from the date of filing the SARMSB. Supporting documentation shall be identified as such 

and maintained by the money services business, and shall 

be deemed to have been filed with the SAR-MSB. A money 

services business shall make all supporting documentation 

available to FinCEN and any other appropriate law 

enforcement agencies or supervisory agencies upon request.

(d) Confidentiality of reports; limitation of liability. No 

financial institution, and no director, officer, employee, or 

agent of any financial institution, who reports a suspicious 

transaction under this part, may notify any person involved 

in the transaction that the transaction has been reported. Thus, 

any person subpoenaed or otherwise requested to disclose 

a SAR-MSB or the information contained in a SAR-MSB, 

except where such disclosure is requested by FinCEN or 

an appropriate law enforcement or supervisory agency, 

shall decline to produce the SAR-MSB or to provide any 

information that would disclose that a SAR-MSB has been 

prepared or filed, citing this paragraph (d) and 31 U.S.C. 

5318(g)(2), and shall notify FinCEN of any such request and 

its response thereto. A reporting money services business, and 

any director, officer, employee, or agent of such reporting 

money services business, that makes a report pursuant to 

this section (whether such report is required by this section 

or made voluntarily) shall be protected from liability for any 

disclosure contained in, or for failure to disclose the fact of, 

such report, or both, to the extent provided by 31 U.S.C. 

5318(g)(3).

(e) Compliance. Compliance with this section shall be audited 

by the Department of the Treasury, through FinCEN or its 

delegees under the terms of the Bank Secrecy Act. Failure 

to satisfy the requirements of this section may constitute a 

violation of the reporting rules of the Bank Secrecy Act and 

of this part.

(f) Effective date. This section applies to transactions 

occurring after December 31, 2001.

31 C.F.R. § 103.21 Reports by casinos of 

suspicious transactions.

To be used for violations occurring before

March 1, 2011.

(a) General. 

(1) Every casino shall file with FinCEN, to the extent 

and in the manner required by this section, a report of any 

suspicious transaction relevant to a possible violation of law or 

regulation. A casino may also file with FinCEN, by using the 

form specified in paragraph (b)(1) of this section, or otherwise, 

a report of any suspicious transaction that it believes is relevant 

to the possible violation of any law or regulation but whose 

reporting is not required by this section.

(2) A transaction requires reporting under the terms of 

this section if it is conducted or attempted by, at, or through 

a casino, and involves or aggregates at least $5,000 in funds 

or other assets, and the casino knows, suspects, or has reason 

to suspect that the transaction (or a pattern of transactions of 

which the transaction is a part):

(i) Involves funds derived from illegal activity or is 

intended or conducted in order to hide or disguise funds 

or assets derived from illegal activity (including, without 

limitation, the ownership, nature, source, location, or control 

of such funds or assets) as part of a plan to violate or evade 

any federal law or regulation or to avoid any transaction 

reporting requirement under federal law or regulation;
Money Laundering Statutes • 119

31 C.F.R. § 103.22

(ii) Is designed, whether through structuring or other 

means, to evade any requirements of this part or of any 

other regulations promulgated under the Bank Secrecy 

Act, Public Law 91-508, as amended, codified at 12 U.S.C. 

1829b, 12 U.S.C. 1951-1959, and 31 U.S.C. 5311-5332;

(iii) Has no business or apparent lawful purpose or 

is not the sort in which the particular customer would 

normally be expected to engage, and the casino knows 

of no reasonable explanation for the transaction after 

examining the available facts, including the background 

and possible purpose of the transaction; or

(iv) Involves use of the casino to facilitate criminal 

activity.

(b) Filing procedures—

(1) What to file. A suspicious transaction shall be reported 

by completing a Suspicious Activity Report by Casinos 

(“SARC”), and collecting and maintaining supporting 

documentation as required by paragraph (d) of this section.

(2) Where to file. The SARC shall be filed with FinCEN in 

a central location, to be determined by FinCEN, as indicated 

in the instructions to the SARC.

(3) When to file. A SARC shall be filed no later than 30 

calendar days after the date of the initial detection by the 

casino of facts that may constitute a basis for filing a SARC 

under this section. If no suspect is identified on the date of 

such initial detection, a casino may delay filing a SARC for an 

additional 30 calendar days to identify a suspect, but in no case 

shall reporting be delayed more than 60 calendar days after the 

date of such initial detection. In situations involving violations 

that require immediate attention, such as ongoing money 

laundering schemes, the casino shall immediately notify by 

telephone an appropriate law enforcement authority in addition 

to filing timely a SARC. Casinos wishing voluntarily to report 

suspicious transactions that may relate to terrorist activity may 

call FinCEN’s Financial Institutions Hotline at 1-866-556-3974 

in addition to filing timely a SARC if required by this section.

(c) Exceptions. A casino is not required to file a SARC for a 

robbery or burglary committed or attempted that is reported 

to appropriate law enforcement authorities.

(d) Retention of records. A casino shall maintain a copy of any 

SARC filed and the original or business record equivalent of 

any supporting documentation for a period of five years from 

the date of filing the SARC. Supporting documentation shall 

be identified as such and maintained by the casino, and shall 

be deemed to have been filed with the SARC. A casino shall 

make all supporting documentation available to FinCEN, any 

other appropriate law enforcement agencies or federal, state, 

local, or tribal gaming regulators upon request.

(e) Confidentiality of reports; limitation of liability. No casino, 

and no director, officer, employee, or agent of any casino, who 

reports a suspicious transaction under this part, may notify any 

person involved in the transaction that the transaction has been 

reported. Thus, any person subpoenaed or otherwise requested 

to disclose a SARC or the information contained in a SARC, 

except where such disclosure is requested by FinCEN or 

another appropriate law enforcement or regulatory agency, shall 

decline to produce the SARC or to provide any information that 

would disclose that a SARC has been prepared or filed, citing 

this paragraph (e) and 31 U.S.C. 5318(g)(2), and shall notify 

FinCEN of any such request and its response thereto. A casino, 

and any director, officer, employee, or agent of such casino, that 

makes a report pursuant to this section (whether such report is 

required by this section or made voluntarily) shall be protected 

from liability for any disclosure contained in, or for failure to 

disclose the fact of, such report, or both, to the extent provided 

by 31 U.S.C. 5318(g)(3).

(f) Compliance. Compliance with this section shall be audited 

by the Department of the Treasury, through FinCEN or its 

delegees, under the terms of the Bank Secrecy Act. Failure 

to satisfy the requirements of this section may constitute a 

violation of the reporting rules of the Bank Secrecy Act and 

of this part.

(g) Effective date. This section applies to transactions 

occurring after March 25, 2003.

31 C.F.R. § 103.22. Reports of transactions in 

currency.

To be used for violations occurring before

March 1, 2011.

(a) General. This section sets forth the rules for the reporting 

by financial institutions of transactions in currency. The 

reporting obligations themselves are stated in paragraph (b) 

of this section. The reporting rules relating to aggregation are 

stated in paragraph (c) of this section. Rules permitting banks 

to exempt certain transactions from the reporting obligations 

appear in paragraph (d) of this section.

(b) Filing obligations—

(1) Financial institutions other than casinos. Each financial 

institution other than a casino shall file a report of each 

deposit, withdrawal, exchange of currency or other payment 

or transfer, by, through, or to such financial institution which 

involves a transaction in currency of more than $10,000, 

except as otherwise provided in this section. In the case of 

the Postal Service, the obligation contained in the preceding 

sentence shall not apply to payments or transfers made solely 

in connection with the purchase of postage or philatelic 

products.
120 • Money Laundering Statutes

31 C.F.R. § 103.22 

(2) Casinos. Each casino shall file a report of each 

transaction in currency, involving either cash in or cash out, 

of more than $10,000.

(i) Transactions in currency involving cash in include, 

but are not limited to:

(A) Purchases of chips, tokens, and other gaming 

instruments;

(B) Front money deposits;

(C) Safekeeping deposits;

(D) Payments on any form of credit, including 

markers and counter checks;

(E) Bets of currency, including money plays;

(F) Currency received by a casino for transmittal of 

funds through wire transfer for a customer;

(G) Purchases of a casino’s check;

(H) Exchanges of currency for currency, including 

foreign currency; and

(I) Bills inserted into electronic gaming devices.

(ii) Transactions in currency involving cash out include, 

but are not limited to:

(A) Redemptions of chips, tokens, tickets, and other 

gaming instruments;

(B) Front money withdrawals;

(C) Safekeeping withdrawals;

(D) Advances on any form of credit, including 

markers and counter checks;

(E) Payments on bets;

(F) Payments by a casino to a customer based on 

receipt of funds through wire transfers;

(G) Cashing of checks or other negotiable 

instruments;

(H) Exchanges of currency for currency, including 

foreign currency;

(I) Travel and complimentary expenses and gaming 

incentives; and

(J) Payment for tournament, contests, and other 

promotions.

(iii) Other provisions of this part notwithstanding, 

casinos are exempted from the reporting obligations 

found in Sec. 103.22(b)(2) and (c)(3) for the following 

transactions in currency or currency transactions:

(A) Transactions between a casino and a currency 

dealer or exchanger, or between a casino and a check 

casher, as those terms are defined in Sec. 103.11(uu), 

so long as such transactions are conducted pursuant to a 

contractual or other arrangement with a casino covering 

the financial services in Sec. 103.22(b) (2) (i) (H), 

103.22(b)(2)(ii)(G), and 103.22(b)(2)(ii)(H);

(B) Cash out transactions to the extent the currency 

is won in a money play and is the same currency 

the customer wagered in the money play, or cash in 

transactions to the extent the currency is the same 

currency the customer previously wagered in a money 

play on the same table game without leaving the table;

(C) Bills inserted into electronic gaming devices in 

multiple transactions (unless a casino has knowledge 

pursuant to Sec. 103.22(c)(3) in which case this 

exemption would not apply); and

(D) Jackpots from slot machines or video lottery 

terminals.

(c) Aggregation—

(1) Multiple branches. A financial institution includes 

all of its domestic branch offices, and any recordkeeping 

facility, wherever located, that contains records relating to the 

transactions of the institution’s domestic offices, for purposes 

of this section’s reporting requirements.

(2) Multiple transactions—general. In the case of financial 

institutions other than casinos, for purposes of this section, 

multiple currency transactions shall be treated as a single 

transaction if the financial institution has knowledge that they 

are by or on behalf of any person and result in either cash in or 

cash out totaling more than $10,000 during any one business 

day (or in the case of the Postal Service, any one day). Deposits 

made at night or over a weekend or holiday shall be treated 

as if received on the next business day following the deposit.

(3) Multiple transactions—casinos. In the case of a casino, 

multiple currency transactions shall be treated as a single 

transaction if the casino has knowledge that they are by or 

on behalf of any person and result in either cash in or cash 

out totaling more than $10,000 during any gaming day. For 

purposes of this paragraph (c)(3), a casino shall be deemed to 

have the knowledge described in the preceding sentence, if: 

any sole proprietor, partner, officer, director, or employee of 

the casino, acting within the scope of his or her employment, 

has knowledge that such multiple currency transactions have 

occurred, including knowledge from examining the books, 

records, logs, information retained on magnetic disk, tape 

or other machine-readable media, or in any manual system, 

and similar documents and information, which the casino 

maintains pursuant to any law or regulation or within the 

ordinary course of its business, and which contain information 

that such multiple currency transactions have occurred.
Money Laundering Statutes • 121

31 C.F.R. § 103.22

(d) Transactions of exempt persons—

(1) General. No bank is required to file a report otherwise 

required by paragraph (b) of this section with respect to any 

transaction in currency between an exempt person and such 

bank, or, to the extent provided in paragraph (d)(5)(vi) of 

this section, between such exempt person and other banks 

affiliated with such bank. In addition, a non-bank financial 

institution is not required to file a report otherwise required 

by paragraph (b) of this section with respect to a transaction 

in currency between the institution and a commercial bank. 

(A limitation on the exemption described in this paragraph 

(d) (1) is set forth in paragraph (d)(6) of this section.)

(2) Exempt person. For purposes of this section, an exempt 

person is:

(i) A bank, to the extent of such bank’s domestic 

operations;

(ii) A department or agency of the United States, of any 

State, or of any political subdivision of any State;

(iii) Any entity established under the laws of the United 

States, of any State, or of any political subdivision of any 

State, or under an interstate compact between two or more 

States, that exercises governmental authority on behalf of 

the United States or any such State or political subdivision;

(iv) Any entity, other than a bank, whose common stock 

or analogous equity interests are listed on the New York 

Stock Exchange or the American Stock Exchange or whose 

common stock or analogous equity interests have been 

designated as a NASDAQ National Market Security listed 

on the NASDAQ Stock Market (except stock or interests 

listed under the separate “NASDAQ Capital Markets 

Companies” heading), provided that, for purposes of this 

paragraph (d)(2)(iv), a person that is a financial institution, 

other than a bank, is an exempt person only to the extent 

of its domestic operations;

(v) Any subsidiary, other than a bank, of any entity 

described in paragraph (d)(2)(iv) of this section (a “listed 

entity”) that is organized under the laws of the United 

States or of any State and at least 51 percent of whose 

common stock or analogous equity interest is owned by the 

listed entity, provided that, for purposes of this paragraph 

(d)(2)(v), a person that is a financial institution, other 

than a bank, is an exempt person only to the extent of its 

domestic operations;

(vi) To the extent of its domestic operations and 

only with respect to transactions conducted through its 

exemptible accounts, any other commercial enterprise (for 

purposes of this paragraph (d), a “non-listed business”), 

other than an enterprise specified in paragraph (d)(5)(viii) 

of this section, that: 

(A) Maintains a transaction account, as defined in 

paragraph (d)(5)(ix) of this section, at the bank for 

at least two months, except as provided in paragraph 

(d)(3)(ii)(B) of this section;

(B) Frequently engages in transactions in currency 

with the bank in excess of $10,000; and

(C) Is incorporated or organized under the laws 

of the United States or a State, or is registered as and 

eligible to do business within the United States or a 

State; or

(vii) With respect solely to withdrawals for payroll 

purposes from existing exemptible accounts, any other 

person (for purposes of this paragraph (d), a “payroll 

customer”) that:

(A) Maintains a transaction account, as defined in 

paragraph (d)(5)(ix) of this section, at the bank for 

at least two months, except as provided in paragraph 

(d)(3)(ii)(B) of this section;

(B) Operates a firm that regularly withdraws more 

than $10,000 in order to pay its United States employees 

in currency; and

(C) Is incorporated or organized under the laws 

of the United States or a State, or is registered as and 

eligible to do business within the United States or a 

State.

(3) Designation of certain exempt persons—

(i) General. Except as provided in paragraph (d)(3)(ii) 

of this section, a bank must designate an exempt person 

by filing FinCEN Form 110. Such designation must occur 

by the close of the 30-calendar day period beginning after 

the day of the first reportable transaction in currency with 

that person sought to be exempted from reporting under 

the terms of this paragraph (d). The designation must be 

made separately by each bank that treats the customer 

as an exempt person, except as provided in paragraph 

(d)(5)(vi) of this section.

(ii) Special rules.—

(A) A bank is not required to file a FinCEN Form 

110 with respect to the transfer of currency to or from:

(1) Any of the twelve Federal Reserve Banks; or

(2) Any exempt person as described in paragraphs 

(d)(2)(i) to (iii) of this section.

(B) Notwithstanding subparagraphs (d)(2)(vi)(A) 

and (d)(2)(vii)(A) of this section, and if the requirements 

under this paragraph (d) of this section are otherwise 

satisfied, a bank may designate a non-listed business or 

a payroll customer, as described in paragraphs (d)(2) (vi) 
122 • Money Laundering Statutes

31 C.F.R. § 103.22 

and (vii) of this section, as an exempt person before the 

customer has maintained a transaction account at the 

bank for at least two months if the bank conducts and 

documents a risk-based assessment of the customer 

and forms a reasonable belief that the customer has a 

legitimate business purpose for conducting frequent 

transactions in currency.

(4) Annual review. At least once each year, a bank must 

review the eligibility of an exempt person described in 

paragraphs (d)(2)(iv) to (vii) of this section to determine 

whether such person remains eligible for an exemption. As 

part of its annual review, a bank must review the application 

of the monitoring system required to be maintained by 

paragraph (d)(8)(ii) of this section to each existing account 

of an exempt person described in paragraphs (d)(2)(vi) or 

(d)(2)(vii) of this section.

(5) Operating rules—

(i) General rule. Subject to the specific rules of this 

paragraph (d), a bank must take such steps to assure itself 

that a person is an exempt person (within the meaning of 

the applicable provision of paragraph (d)(2) of this section), 

to document the basis for its conclusions, and document 

its compliance, with the terms of this paragraph (d), that 

a reasonable and prudent bank would take and document 

to protect itself from loan or other fraud or loss based on 

misidentification of a person’s status, and in the case of 

the monitoring system requirement set forth in paragraph 

(d)(8)(ii) of this section, such steps that a reasonable and 

prudent bank would take and document to identify suspicious 

transactions as required by paragraph (d)(8) (ii) of this section.

(ii) Governmental departments and agencies. A bank 

may treat a person as a governmental department, agency, 

or entity if the name of such person reasonably indicates 

that it is described in paragraph (d)(2)(ii) or (d)(2)(iii) 

of this section, or if such person is known generally in 

the community to be a State, the District of Columbia, a 

tribal government, a Territory or Insular Possession of the 

United States, or a political subdivision or a wholly-owned 

agency or instrumentality of any of the foregoing. An entity 

generally exercises governmental authority on behalf of the 

United States, a State, or a political subdivision, for purposes 

of paragraph (d)(2)(iii) of this section, only if its authorities 

include one or more of the powers to tax, to exercise the 

authority of eminent domain, or to exercise police powers 

with respect to matters within its jurisdiction. Examples of 

entities that exercise governmental authority include, but are 

not limited to, the New Jersey Turnpike Authority and the 

Port Authority of New York and New Jersey.

(iii) Stock exchange listings. In determining whether a 

person is described in paragraph (d)(2)(iv) of this section, a 

bank may rely on any New York, American, or NASDAQ 

Stock Market listing published in a newspaper of general 

circulation, on any commonly accepted or published 

stock symbol guide, on any information contained in the 

Securities and Exchange Commission “EDGAR” System, 

or on any information contained on an Internet site or 

sites maintained by the New York Stock Exchange, the 

American Stock Exchange, or the NASDAQ.

(iv) Listed company subsidiaries. In determining 

whether a person is described in paragraph (d)(2)(v) of 

this section, a bank may rely upon:

(A) Any reasonably authenticated corporate officer’s 

certificate;

(B) Any reasonably authenticated photocopy 

of Internal Revenue Service Form 851 (Affiliation 

Schedule) or the equivalent thereof for the appropriate 

tax year; or

(C) A person’s Annual Report or Form 10-K, as 

filed in each case with the Securities and Exchange 

Commission.

(v) Aggregated accounts. In determining the 

qualification of a customer as a non-listed business or a 

payroll customer, a bank may treat all exemptible accounts 

of the customer as a single account. If a bank elects to 

treat all exemptible accounts of a customer as a single 

account, the bank must continue to treat such accounts 

consistently as a single account for purposes of determining 

the qualification of the customer as a non-listed business 

or payroll customer.

(vi) Affiliated banks. The designation required by 

paragraph (d)(3) of this section may be made by a parent 

bank holding company or one of its bank subsidiaries on 

behalf of all bank subsidiaries of the holding company, so 

long as the designation lists each bank subsidiary to which 

the designation shall apply.

(vii) Sole proprietorships. A sole proprietorship may 

be treated as a non-listed business if it otherwise meets 

the requirements of paragraph (d)(2)(vi) of this section, as 

applicable. In addition, a sole proprietorship may be treated 

as a payroll customer if it otherwise meets the requirements 

of paragraph (d)(2)(vii) of this section, as applicable.

(viii) Ineligible businesses. A business engaged primarily 

in one or more of the following activities may not be treated 

as a non-listed business for purposes of this paragraph 

(d): serving as financial institutions or agents of financial 

institutions of any type; purchase or sale to customers of 

motor vehicles of any kind, vessels, aircraft, farm equipment 

or mobile homes; the practice of law, accountancy, or 

medicine; auctioning of goods; chartering or operation of 

ships, buses, or aircraft; gaming of any kind (other than 

licensed parimutuel betting at race tracks); investment 
Money Laundering Statutes • 123

31 C.F.R. § 103.22

advisory services or investment banking services; real estate 

brokerage; pawn brokerage; title insurance and real estate 

closing; trade union activities; and any other activities that 

may be specified by FinCEN. A business that engages in 

multiple business activities may be treated as a non-listed 

business so long as no more than 50% of its gross revenues 

are derived from one or more of the ineligible business 

activities listed in this paragraph (d)(5)(viii).

(ix) Exemptible accounts of a non-listed business or 

payroll customer. The exemptible accounts of a nonlisted business or payroll customer include transaction 

accounts and money market deposit accounts. However, 

money market deposit accounts maintained other than 

in connection with a commercial enterprise are not 

exemptible accounts. A transaction account, for purposes 

of this paragraph (d), is any account described in section 

19(b)(1)(C) of the Federal Reserve Act, 12 U.S.C. 

461(b)(1)(C), and its implementing regulations (12 CFR 

part 204). A money market deposit account, for purposes 

of this paragraph (d), is any interest-bearing account that 

is described as a money market deposit account in 12 CFR 

204.2(d)(2).

(x) Documentation. The records maintained by a bank 

to document its compliance with and administration of 

the rules of this paragraph (d) shall be maintained in 

accordance with the provisions of Sec. 103.38.

(6) Limitation on exemption. A transaction carried out 

by an exempt person as an agent for another person who is 

the beneficial owner of the funds that are the subject of a 

transaction in currency is not subject to the exemption from 

reporting contained in paragraph (d)(1) of this section.

(7) Limitation on liability.

(i) No bank shall be subject to penalty under this part 

for failure to file a report required by paragraph (b) of 

this section with respect to a transaction in currency by 

an exempt person with respect to which the requirements 

of this paragraph (d) have been satisfied, unless the bank:

(A) Knowingly files false or incomplete information 

with respect to the transaction or the customer engaging 

in the transaction; or

(B) Has reason to believe that the customer does not 

meet the criteria established by this paragraph (d) for 

treatment of the transactor as an exempt person or that 

the transaction is not a transaction of the exempt person.

(ii) Subject to the specific terms of this paragraph 

(d), and absent any specific knowledge of information 

indicating that a customer no longer meets the requirements 

of an exempt person, a bank satisfies the requirements of 

this paragraph (d) to the extent it continues to treat that 

customer as an exempt person until the completion of 

that customer’s next required periodic review, which as 

required by paragraph (d)(4) of this section for an exempt 

person described in paragraph (d)(2)(iv) to (vii) of this 

section, shall occur no less than once each year.

(iii) A bank that files a report with respect to a currency 

transaction by an exempt person rather than treating such 

person as exempt shall remain subject, with respect to each 

such report, to the rules for filing reports, and the penalties 

for filing false or incomplete reports that are applicable 

to reporting of transactions in currency by persons other 

than exempt persons.

(8) Obligations to file suspicious activity reports and 

maintain system for monitoring transactions in currency.

(i) Nothing in this paragraph (d) relieves a bank of the 

obligation, or reduces in any way such bank’s obligation, 

to file a report required by Sec. 103.18 with respect to 

any transaction, including any transaction in currency 

that a bank knows, suspects, or has reason to suspect is 

a transaction or attempted transaction that is described 

in Sec. 103.18(a)(2)(i), (ii), or (iii), or relieves a bank of 

any reporting or recordkeeping obligation imposed by 

this part (except the obligation to report transactions in 

currency pursuant to this section to the extent provided in 

this paragraph (d)). Thus, for example, a sharp increase 

from one year to the next in the gross total of currency 

transactions made by an exempt customer, or similarly 

anomalous transactions trends or patterns, may trigger the 

obligation of a bank under Sec. 103.18.

(ii) Consistent with its annual review obligations under 

paragraph (d)(4)of this section, a bank shall establish and 

maintain a monitoring system that is reasonably designed 

to detect, for each account of a non-listed business or 

payroll customer, those transactions in currency involving 

such account that would require a bank to file a suspicious 

transaction report. The statement in the preceding sentence 

with respect to accounts of non-listed business and payroll 

customers does not limit the obligation of banks generally 

to take the steps necessary to satisfy the terms of paragraph 

(d)(8)(i) of this section and Sec. 103.18 with respect to all 

exempt persons.

(9) Revocation. Without any action on the part of the 

Department of the Treasury and subject to the limitation on 

liability contained in paragraph (d)(7)(ii) of this section: 

(i) The status of an entity as an exempt person under 

paragraph (d)(2)(iv) of this section ceases once such entity 

ceases to be listed on the applicable stock exchange; and

(ii) The status of a subsidiary as an exempt person 

under paragraph (d)(2)(v) of this section ceases once such 

subsidiary ceases to have at least 51 per cent of its common 

stock or analogous equity interest owned by a listed entity.
124 • Money Laundering Statutes

31 C.F.R. § 103.23 

31 C.F.R. § 103.23. Reports of transportation of 

currency or monetary instruments.

To be used for violations occurring before

March 1, 2011.

(a) Each person who physically transports, mails, or ships, 

or causes to be physically transported, mailed, or shipped, 

or attempts to physically transport, mail or ship, or attempts 

to cause to be physically transported, mailed or shipped, 

currency or other monetary instruments in an aggregate 

amount exceeding $10,000 at one time from the United 

States to any place outside the United States, or into the 

United States from any place outside the United States, shall 

make a report thereof. A person is deemed to have caused 

such transportation, mailing or shipping when he aids, abets, 

counsels, commands, procures, or requests it to be done by a 

financial institution or any other person.

(b) Each person who receives in the U.S. currency or other 

monetary instruments in an aggregate amount exceeding 

$10,000 at one time which have been transported, mailed, 

or shipped to such person from any place outside the United 

States with respect to which a report has not been filed under 

paragraph (a) of this section, whether or not required to be filed 

thereunder, shall make a report thereof, stating the amount, 

the date of receipt, the form of monetary instruments, and the 

person from whom received.

(c) This section shall not require reports by:

(1) A Federal Reserve;

(2) A bank, a foreign bank, or a broker or dealer in securities, 

in respect to currency or other monetary instruments mailed 

or shipped through the postal service or by common carrier;

(3) A commercial bank or trust company organized under 

the laws of any State or of the United States with respect to 

overland shipments of currency or monetary instruments 

shipped to or received from an established customer 

maintaining a deposit relationship with the bank, in amounts 

which the bank may reasonably conclude do not exceed 

amounts commensurate with the customary conduct of the 

business, industry or profession of the customer concerned;

(4) A person who is not a citizen or resident of the United 

States in respect to currency or other monetary instruments 

mailed or shipped from abroad to a bank or broker or dealer 

in securities through the postal service or by common carrier;

(5) A common carrier of passengers in respect to currency 

or other monetary instruments in the possession of its 

passengers;

(6) A common carrier of goods in respect to shipments of 

currency or monetary instruments not declared to be such by 

the shipper;

(7) A travelers’ check issuer or its agent in respect to the 

transportation of travelers’ checks prior to their delivery to 

selling agents for eventual sale to the public;

(8) By a person with respect to a restrictively endorsed 

traveler’s check that is in the collection and reconciliation 

process after the traveler’s check has been negotiated,

(9) Nor by a person engaged as a business in the 

transportation of currency, monetary instruments and other 

commercial papers with respect to the transportation of 

currency or other monetary instruments overland between 

established offices of banks or brokers or dealers in securities 

and foreign persons.

(d) A transfer of funds through normal banking procedures 

which does not involve the physical transportation of currency 

or monetary instruments is not required to be reported by 

this section. This section does not require that more than one 

report be filed covering a particular transportation, mailing 

or shipping of currency or other monetary instruments with 

respect to which a complete and truthful report has been filed 

by a person. However, no person required by paragraph (a) 

or (b) of this section to file a report shall be excused from 

liability for failure to do so if, in fact, a complete and truthful 

report has not been filed.

31 C.F.R. § 103.24. Reports of foreign financial 

accounts. 

To be used for violations occurring before

March 1, 2011.

(a) Each person subject to the jurisdiction of the United 

States (except a foreign subsidiary of a U.S. person) having 

a financial interest in, or signature or other authority over, a 

bank, securities or other financial account in a foreign country 

shall report such relationship to the Commissioner of the 

Internal Revenue for each year in which such relationship 

exists, and shall provide such information as shall be specified 

in a reporting form prescribed by the Secretary to be filed 

by such persons. Persons having a financial interest in 25 or 

more foreign financial accounts need only note that fact on 

the form. Such persons will be required to provide detailed 

information concerning each account when so requested by 

the Secretary or his delegate.
Money Laundering Statutes • 125

31 C.F.R. § 103.27

31 C.F.R. § 103.26. Reports of certain domestic 

coin and currency transactions.

To be used for violations occurring before

March 1, 2011.

(a) If the Secretary of the Treasury finds, upon the Secretary’s 

own initiative or at the request of an appropriate Federal or 

State law enforcement official, that reasonable grounds exist 

for concluding that additional recordkeeping and/or reporting 

requirements are necessary to carry out the purposes of this 

part and to prevent persons from evading the reporting/

recordkeeping requirements of this part, the Secretary may 

issue an order requiring any domestic financial institution or 

group of domestic financial institutions in a geographic area 

and any other person participating in the type of transaction 

to file a report in the manner and to the extent specified in 

such order. The order shall contain such information as the 

Secretary may describe concerning any transaction in which 

such financial institution is involved for the payment, receipt, 

or transfer of United States coins or currency (or such other 

monetary instruments as the Secretary may describe in such 

order) the total amounts or denominations of which are 

equal to or greater than an amount which the Secretary may 

prescribe.

(b) An order issued under paragraph (a) of this section shall 

be directed to the Chief Executive Officer of the financial 

institution and shall designate one or more of the following 

categories of information to be reported: Each deposit, 

withdrawal, exchange of currency or other payment or 

transfer, by, through or to such financial institution specified 

in the order, which involves all or any class of transactions in 

currency and/or monetary instruments equal to or exceeding 

an amount to be specified in the order.

(c) In issuing an order under paragraph (a) of this section, the 

Secretary will prescribe:

(1) The dollar amount of transactions subject to the 

reporting requirement in the order;

(2) The type of transaction or transactions subject to or 

exempt from a reporting requirement in the order;

(3) The appropriate form for reporting the transactions 

required in the order;

(4) The address to which reports required in the order are 

to be sent or from which they will be picked up;

(5) The starting and ending dates by which such 

transactions specified in the order are to be reported;

(6) The name of a Treasury official to be contacted for any 

additional information or questions;

(7) The amount of time the reports and records of reports 

generated in response to the order will have to be retained by 

the financial institution; and

(8) Any other information deemed necessary to carry out 

the purposes of the order.

(d)(1) No order issued pursuant to paragraph (a) of this section 

shall prescribe a reporting period of more than 60 days unless 

renewed pursuant to the requirements of paragraph (a).

(2) Any revisions to an order issued under this section 

will not be effective until made in writing by the Secretary.

(3) Unless otherwise specified in the order, a bank receiving 

an order under this section may continue to use the exemptions 

granted under Sec. 103.22 of this part prior to the receipt of 

the order, but may not grant additional exemptions.

(4) For purposes of this section, the term geographic area 

means any area in one or more States of the United States, 

the District of Columbia, the Commonwealth of Puerto Rico, 

the United States Virgin Islands, Guam, the Commonwealth 

of the Northern Mariana Islands, American Samoa, the Trust 

Territory of the Pacific Islands, the territories and possessions 

of the United States, and/or political subdivision or 

subdivisions thereof, as specified in an order issued pursuant 

to paragraph (a) of this section.

31 C.F.R. § 103.27. Filing of reports.

To be used for violations occurring before

March 1, 2011.

(a)(1) A report required by Sec. 103.22(a) shall be filed by 

the financial institution within 15 days following the day on 

which the reportable transaction occurred.

(2) A report required by Sec. 103.22(g) shall be filed by the 

bank within 15 days after receiving a request for the report. 

(3) A copy of each report filed pursuant to Sec. 103.22 

shall be retained by the financial institution for a period of 

five years from the date of the report.

(4) All reports required to be filed by Sec. 103.22 shall 

be filed with the Commissioner of Internal Revenue, unless 

otherwise specified.

(b)(1) A report required by Sec. 103.23(a) shall be filed at the 

time of entry into the United States or at the time of departure, 

mailing or shipping from the United States, unless otherwise 

specified by the Commissioner of Customs.

(2) A report required by Sec. 103.23(b) shall be filed within 15 

days after receipt of the currency or other monetary instruments.

(3) All reports required by Sec. 103.23 shall be filed 

with the Customs officer in charge at any port of entry or 
126 • Money Laundering Statutes

31 C.F.R. § 103.28 

departure, or as otherwise specified by the Commissioner of 

Customs. Reports required by Sec. 103.23(a) for currency or 

other monetary instruments not physically accompanying a 

person entering or departing from the United States, may be 

filed by mail on or before the date of entry, departure, mailing 

or shipping. All reports required by Sec. 103.23(b) may also 

be filed by mail. Reports filed by mail shall be addressed 

to the Commissioner of Customs, Attention: Currency 

Transportation Reports, Washington, DC 20229.

(c) Reports required to be filed by Sec. 103.24 shall be filed 

with the Commissioner of Internal Revenue on or before June 

30 of each calendar year with respect to foreign financial 

accounts exceeding $10,000 maintained during the previous 

calendar year.

(d) Reports required by Sec. 103.22, Sec. 103.23 or Sec. 

103.24 shall be filed on forms prescribed by the Secretary. 

All information called for in such forms shall be furnished.

(e) Forms to be used in making the reports required by Sec. 

103.22 and 103.24 may be obtained from the Internal Revenue 

Service. Forms to be used in making the reports required by 

Sec. 103.23 may be obtained from the U.S. Customs Service.

31 C.F.R. § 103.28. Identification required.

To be used for violations occurring before

March 1, 2011.

Before concluding any transaction with respect to which a 

report is required under Sec. 103.22, a financial institution 

shall verify and record the name and address of the individual 

presenting a transaction, as well as record the identity, account 

number, and the social security or taxpayer identification 

number, if any, of any person or entity on whose behalf such 

transaction is to be effected. Verification of the identity of an 

individual who indicates that he or she is an alien or is not a 

resident of the United States must be made by passport, alien 

identification card, or other official document evidencing 

nationality or residence (e.g., a Provincial driver’s license 

with indication of home address). Verification of identity in 

any other case shall be made by examination of a document, 

other than a bank signature card, that is normally acceptable 

within the banking community as a means of identification 

when cashing checks for nondepositors (e.g., a drivers license 

or credit card). A bank signature card may be relied upon only 

if it was issued after documents establishing the identity of 

the individual were examined and notation of the specific 

information was made on the signature card. In each instance, 

the specific identifying information (i.e., the account number 

of the credit card, the driver’s license number, etc.) used in 

verifying the identity of the customer shall be recorded on the 

report, and the mere notation of “known customer” or “bank 

signature card on file” on the report is prohibited.

31 C.F.R. § 103.29. Purchases of bank checks 

and drafts, cashier’s checks, money orders 

and traveler’s checks.

To be used for violations occurring before

March 1, 2011.

(a) No financial institution may issue or sell a bank check or 

draft, cashier’s check, money order or traveler’s check for 

$3,000 or more in currency unless it maintains records of 

the following information, which must be obtained for each 

issuance or sale of one or more of these instruments to any 

individual purchaser which involves currency in amounts of 

$3,000-$10,000 inclusive:

(1) If the purchaser has a deposit account with the financial 

institution:

(i)(A) The name of the purchaser;

(B) The date of purchase;

(C) The type(s) of instrument(s) purchased;

(D) The serial number(s) of each of the instrument(s) 

purchased; and

(E) The amount in dollars of each of the instrument(s) 

purchased.

(ii) In addition, the financial institution must verify that 

the individual is a deposit accountholder or must verify the 

individual’s identity. Verification may be either through 

a signature card or other file or record at the financial 

institution provided the deposit accountholder’s name and 

address were verified previously and that information was 

recorded on the signature card or other file or record; or by 

examination of a document which is normally acceptable 

within the banking community as a means of identification 

when cashing checks for nondepositors and which contains 

the name and address of the purchaser. If the deposit 

accountholder’s identity has not been verified previously, the 

financial institution shall verify the deposit accountholder’s 

identity by examination of a document which is normally 

acceptable within the banking community as a means of 

identification when cashing checks for nondepositors and 

which contains the name and address of the purchaser, and 

shall record the specific identifying information (e.g., State 

of issuance and number of driver’s license).

(2) If the purchaser does not have a deposit account with 

the financial institution:

(i)(A) The name and address of the purchaser;

(B) The social security number of the purchaser, or 

if the purchaser is an alien and does not have a social 

security number, the alien identification number;
Money Laundering Statutes • 127

31 C.F.R. § 103.30

(C) The date of birth of the purchaser;

(D) The date of purchase;

(E) The type(s) of instrument(s) purchased;

(F) The serial number(s) of the instrument(s) 

purchased; and

(G) The amount in dollars of each of the instrument(s) 

purchased.

(ii) In addition, the financial institution shall verify 

the purchaser’s name and address by examination of a 

document which is normally acceptable within the banking 

community as a means of identification when cashing 

checks for nondepositors and which contains the name 

and address of the purchaser, and shall record the specific 

identifying information (e.g., State of issuance and number 

of driver’s license).

(b) Contemporaneous purchases of the same or different 

types of instruments totaling $3,000 or more shall be treated 

as one purchase. Multiple purchases during one business 

day totaling $3,000 or more shall be treated as one purchase 

if an individual employee, director, officer, or partner of the 

financial institution has knowledge that these purchases have 

occurred.

(c) Records required to be kept shall be retained by the 

financial institution for a period of five years and shall be 

made available to the Secretary upon request at any time.

31 C.F.R. § 103.30. Reports relating to currency 

in excess of $10,000 received in a trade or 

business.

To be used for violations occurring before

March 1, 2011.

(a) Reporting requirement—

(1) Reportable transactions—

(i) In general. Any person (solely for purposes of section 

5331 of title 31, United States Code and this section, 

“person” shall have the same meaning as under 26 U.S.C. 

7701 (a)(1)) who, in the course of a trade or business 

in which such person is engaged, receives currency in 

excess of $10,000 in 1 transaction (or 2 or more related 

transactions) shall, except as otherwise provided, make a 

report of information with respect to the receipt of currency. 

This section does not apply to amounts received in a 

transaction reported under 31 U.S.C. 5313 and Sec. 103.22.

(ii) Certain financial transactions. Section 6050I of 

title 26 of the United States Code requires persons to 

report information about financial transactions to the IRS, 

and 31 U.S.C. 5331 requires persons to report similar 

information about certain transactions to the Financial 

Crimes Enforcement Network. This information shall be 

reported on the same form as prescribed by the Secretary.

(2) Currency received for the account of another. Currency 

in excess of $10,000 received by a person for the account 

of another must be reported under this section. Thus, for 

example, a person who collects delinquent accounts receivable 

for an automobile dealer must report with respect to the receipt 

of currency in excess of $10,000 from the collection of a 

particular account even though the proceeds of the collection 

are credited to the account of the automobile dealer (i.e., where 

the rights to the proceeds from the account are retained by 

the automobile dealer and the collection is made on a feefor-service basis).

(3) Currency received by agents—(i) General rule. Except 

as provided in paragraph (a)(3)(ii) of this section, a person 

who in the course of a trade or business acts as an agent (or in 

some other similar capacity) and receives currency in excess 

of $10,000 from a principal must report the receipt of currency 

under this section.

(ii) Exception. An agent who receives currency from a 

principal and uses all of the currency within 15 days in a 

currency transaction (the “second currency transaction”) 

which is reportable under section 5312 of title 31, or 

31 U.S.C. 5331 and this section, and who discloses 

the name, address, and taxpayer identification number 

of the principal to the recipient in the second currency 

transaction need not report the initial receipt of currency 

under this section. An agent will be deemed to have met 

the disclosure requirements of this paragraph (a)(3)(ii) if 

the agent discloses only the name of the principal and the 

agent knows that the recipient has the principal’s address 

and taxpayer identification number.

(iii) Example. The following example illustrates the 

application of the rules in paragraphs (a)(3)(i) and (ii) of 

this section:

Example. B, the principal, gives D, an attorney, $75,000 

in currency to purchase real property on behalf of B. Within 

15 days D purchases real property for currency from E, 

a real estate developer, and discloses to E, B’s name, 

address, and taxpayer identification number. Because 

the transaction qualifies for the exception provided in 

paragraph (a)(3)(ii) of this section, D need not report 

with respect to the initial receipt of currency under this 

section. The exception does not apply, however, if D pays 

E by means other than currency, or effects the purchase 

more than 15 days following receipt of the currency from 

B, or fails to disclose B’s name, address, and taxpayer 

identification number (assuming D does not know that 

E already has B’s address and taxpayer identification 
128 • Money Laundering Statutes

31 C.F.R. § 103.30 

number), or purchases the property from a person whose 

sale of the property is not in the course of that person’s 

trade or business. In any such case, D is required to report 

the receipt of currency from B under this section.

(b) Multiple payments. The receipt of multiple currency 

deposits or currency installment payments (or other similar 

payments or prepayments) relating to a single transaction (or 

two or more related transactions), is reported as set forth in 

paragraphs (b)(1) through (b)(3) of this section.

(1) Initial payment in excess of $10,000. If the initial 

payment exceeds $10,000, the recipient must report the initial 

payment within 15 days of its receipt.

(2) Initial payment of $10,000 or less. If the initial payment 

does not exceed $10,000, the recipient must aggregate the 

initial payment and subsequent payments made within one 

year of the initial payment until the aggregate amount exceeds 

$10,000, and report with respect to the aggregate amount 

within 15 days after receiving the payment that causes the 

aggregate amount to exceed $10,000.

(3) Subsequent payments. In addition to any other required 

report, a report must be made each time that previously 

unreportable payments made within a 12-month period 

with respect to a single transaction (or two or more related 

transactions), individually or in the aggregate, exceed 

$10,000. The report must be made within 15 days after 

receiving the payment in excess of $10,000 or the payment 

that causes the aggregate amount received in the 12-month 

period to exceed $10,000. (If more than one report would 

otherwise be required for multiple currency payments within 

a 15-day period that relate to a single transaction (or two or 

more related transactions), the recipient may make a single 

combined report with respect to the payments. The combined 

report must be made no later than the date by which the first of 

the separate reports would otherwise be required to be made.)

(4) Example. The following example illustrates the 

application of the rules in paragraphs (b)(1) through (b)(3) 

of this section:

Example. On January 10, Year 1, M receives an initial 

payment in currency of $11,000 with respect to a transaction. 

M receives subsequent payments in currency with respect 

to the same transaction of $4,000 on February 15, Year 1, 

$6,000 on March 20, Year 1, and $12,000 on May 15, Year 1. 

M must make a report with respect to the payment received 

on January 10, Year 1, by January 25, Year 1. M must also 

make a report with respect to the payments totaling $22,000 

received from February 15, Year 1, through May 15, Year 1. 

This report must be made by May 30, Year 1, that is, within 

15 days of the date that the subsequent payments, all of which 

were received within a 12-month period, exceeded $10,000.

(c) Meaning of terms. The following definitions apply for 

purposes of this section—

(1) Currency. Solely for purposes of 31 U.S.C. 5331 and 

this section, currency means—

(i) The coin and currency of the United States or of any 

other country, which circulate in and are customarily used 

and accepted as money in the country in which issued; and

(ii) A cashier’s check (by whatever name called, 

including “treasurer’s check” and “bank check”), bank 

draft, traveler’s check, or money order having a face 

amount of not more than $10,000—

(A) Received in a designated reporting transaction 

as defined in paragraph (c)(2) of this section (except 

as provided in paragraphs (c)(3), (4), and (5) of this 

section), or

(B) Received in any transaction in which the 

recipient knows that such instrument is being used in an 

attempt to avoid the reporting of the transaction under 

section 5331 and this section.

(2) Designated reporting transaction. A designated reporting 

transaction is a retail sale (or the receipt of funds by a broker 

or other intermediary in connection with a retail sale) of—

(i) A consumer durable, (ii) A collectible, or

(iii) A travel or entertainment activity.

(3) Exception for certain loans. A cashier’s check, bank 

draft, traveler’s check, or money order received in a designated 

reporting transaction is not treated as currency pursuant 

to paragraph (c)(1)(ii)(A) of this section if the instrument 

constitutes the proceeds of a loan from a bank. The recipient 

may rely on a copy of the loan document, a written statement 

from the bank, or similar documentation (such as a written lien 

instruction from the issuer of the instrument) to substantiate 

that the instrument constitutes loan proceeds.

(4) Exception for certain installment sales. A cashier’s 

check, bank draft, traveler’s check, or money order received 

in a designated reporting transaction is not treated as currency 

pursuant to paragraph (c)(1)(ii)(A) of this section if the 

instrument is received in payment on a promissory note or an 

installment sales contract (including a lease that is considered 

to be a sale for Federal income tax purposes). However, the 

preceding sentence applies only if—

(i) Promissory notes or installment sales contracts 

with the same or substantially similar terms are used in 

the ordinary course of the recipient’s trade or business in 

connection with sales to ultimate consumers; and

(ii) The total amount of payments with respect to the 

sale that are received on or before the 60th day after the 

date of the sale does not exceed 50 percent of the purchase 

price of the sale.
Money Laundering Statutes • 129

31 C.F.R. § 103.30

(5) Exception for certain down payment plans. A cashier’s 

check, bank draft, traveler’s check, or money order received 

in a designated reporting transaction is not treated as currency 

pursuant to paragraph (c)(1)(ii)(A) of this section if the 

instrument is received pursuant to a payment plan requiring 

one or more down payments and the payment of the balance 

of the purchase price by a date no later than the date of the sale 

(in the case of an item of travel or entertainment, a date no later 

than the earliest date that any item of travel or entertainment 

pertaining to the same trip or event is furnished). However, 

the preceding sentence applies only if—

(i) The recipient uses payment plans with the same 

or substantially similar terms in the ordinary course of 

its trade or business in connection with sales to ultimate 

consumers; and

(ii) The instrument is received more than 60 days prior 

to the date of the sale (in the case of an item of travel or 

entertainment, the date on which the final payment is due).

(6) Examples. The following examples illustrate the 

definition of “currency” set forth in paragraphs (c)(1) through 

(c)(5) of this section:

Example 1. D, an individual, purchases gold coins from M, 

a coin dealer, for $13,200. D tenders to M in payment United 

States currency in the amount of $6,200 and a cashier’s check 

in the face amount of $7,000 which D had purchased. Because 

the sale is a designated reporting transaction, the cashier’s 

check is treated as currency for purposes of 31 U.S.C. 5331 

and this section. Therefore, because M has received more than 

$10,000 in currency with respect to the transaction, M must 

make the report required by 31 U.S.C. 5331 and this section.

Example 2. E, an individual, purchases an automobile 

from Q, an automobile dealer, for $11,500. E tenders to Q 

in payment United States currency in the amount of $2,000 

and a cashier’s check payable to E and Q in the amount of 

$9,500. The cashier’s check constitutes the proceeds of a loan 

from the bank issuing the check. The origin of the proceeds is 

evident from provisions inserted by the bank on the check that 

instruct the dealer to cause a lien to be placed on the vehicle as 

security for the loan. The sale of the automobile is a designated 

reporting transaction. However, under paragraph (c)(3) of this 

section, because E has furnished Q documentary information 

establishing that the cashier’s check constitutes the proceeds 

of a loan from the bank issuing the check, the cashier’s check 

is not treated as currency pursuant to paragraph (c)(1)(ii)(A) 

of this section.

Example 3. F, an individual, purchases an item of jewelry 

from S, a retail jeweler, for $12,000. F gives S traveler’s 

checks totaling $2,400 and pays the balance with a personal 

check payable to S in the amount of $9,600. Because the sale 

is a designated reporting transaction, the traveler’s checks 

are treated as currency for purposes of section 5331 and this 

section. However, because the personal check is not treated as 

currency for purposes of section 5331 and this section, S has 

not received more than $10,000 in currency in the transaction 

and no report is required to be filed under section 5331 and 

this section.

Example 4. G, an individual, purchases a boat from T, 

a boat dealer, for $16,500. G pays T with a cashier’s check 

payable to T in the amount of $16,500. The cashier’s check is 

not treated as currency because the face amount of the check 

is more than $10,000. Thus, no report is required to be made 

by T under section 5331 and this section.

Example 5. H, an individual, arranges with W, a travel 

agent, for the chartering of a passenger aircraft to transport a 

group of individuals to a sports event in another city. H also 

arranges with W for hotel accommodations for the group and 

for admission tickets to the sports event. In payment, H tenders 

to W money orders which H had previously purchased. The 

total amount of the money orders, none of which individually 

exceeds $10,000 in face amount, exceeds $10,000. Because 

the transaction is a designated reporting transaction, the 

money orders are treated as currency for purposes of section 

5331 and this section. Therefore, because W has received 

more than $10,000 in currency with respect to the transaction, 

W must make the report required by section 5331 and this 

section.

(7) Consumer durable. The term consumer durable means 

an item of tangible personal property of a type that is suitable 

under ordinary usage for personal consumption or use, that 

can reasonably be expected to be useful for at least 1 year 

under ordinary usage, and that has a sales price of more 

than $10,000. Thus, for example, a $20,000 automobile is a 

consumer durable (whether or not it is sold for business use), 

but a $20,000 dump truck or a $20,000 factory machine is not.

(8) Collectible. The term collectible means an item 

described in paragraphs (A) through (D) of section 408 (m) (2) 

of title 26 of the United States Code (determined without 

regard to section 408 (m)(3) of title 26 of the United States 

Code).

(9) Travel or entertainment activity. The term travel or 

entertainment activity means an item of travel or entertainment 

(within the meaning of 26 CFR 1.274-2(b)(1)) pertaining to 

a single trip or event where the aggregate sales price of the 

item and all other items pertaining to the same trip or event 

that are sold in the same transaction (or related transactions) 

exceeds $10,000.

(10) Retail sale. The term retail sale means any sale 

(whether for resale or for any other purpose) made in 

the course of a trade or business if that trade or business 

principally consists of making sales to ultimate consumers.
130 • Money Laundering Statutes

31 C.F.R. § 103.30 

(11) Trade or business. The term trade or business has 

the same meaning as under section 162 of title 26, United 

States Code.

(12) Transaction.

(i) Solely for purposes of 31 U.S.C. 5331 and this 

section, the term transaction means the underlying 

event precipitating the payer’s transfer of currency to 

the recipient. In this context, transactions include (but 

are not limited to) a sale of goods or services; a sale of 

real property; a sale of intangible property; a rental of 

real or personal property; an exchange of currency for 

other currency; the establishment or maintenance of or 

contribution to a custodial, trust, or escrow arrangement; 

a payment of a preexisting debt; a conversion of currency 

to a negotiable instrument; a reimbursement for expenses 

paid; or the making or repayment of a loan. A transaction 

may not be divided into multiple transactions in order to 

avoid reporting under this section.

(ii) The term related transactions means any transaction 

conducted between a payer (or its agent) and a recipient 

of currency in a 24-hour period. Additionally, transactions 

conducted between a payer (or its agent) and a currency 

recipient during a period of more than 24 hours are related 

if the recipient knows or has reason to know that each 

transaction is one of a series of connected transactions.

(iii) The following examples illustrate the definition of 

paragraphs (c)(12) (i) and (ii) of this section:

Example 1. A person has a tacit agreement with a gold 

dealer to purchase $36,000 in gold bullion. The $36,000 

purchase represents a single transaction under paragraph 

(c)(12)(i) of this section and the reporting requirements 

of this section cannot be avoided by recasting the single 

sales transaction into 4 separate $9,000 sales transactions.

Example 2. An attorney agrees to represent a client in a 

criminal case with the attorney’s fee to be determined on 

an hourly basis. In the first month in which the attorney 

represents the client, the bill for the attorney’s services 

comes to $8,000 which the client pays in currency. In the 

second month in which the attorney represents the client, 

the bill for the attorney’s services comes to $4,000, which 

the client again pays in currency. The aggregate amount of 

currency paid ($12,000) relates to a single transaction as 

defined in paragraph (c)(12)(i) of this section, the sale of 

legal services relating to the criminal case, and the receipt 

of currency must be reported under this section.

Example 3. A person intends to contribute a total of 

$45,000 to a trust fund, and the trustee of the fund knows 

or has reason to know of that intention. The $45,000 

contribution is a single transaction under paragraph 

(c)(12)(i) of this section and the reporting requirement of 

this section cannot be avoided by the grantor’s making 

five separate $9,000 contributions of currency to a single 

fund or by making five $9,000 contributions of currency 

to five separate funds administered by a common trustee.

Example 4. K, an individual, attends a one day auction 

and purchases for currency two items, at a cost of $9,240 

and $1,732.50 respectively (tax and buyer’s premium 

included). Because the transactions are related transactions 

as defined in paragraph (c)(12)(ii) of this section, the 

auction house is required to report the aggregate amount 

of currency received from the related sales ($10,972.50), 

even though the auction house accounts separately on its 

books for each item sold and presents the purchaser with 

separate bills for each item purchased.

Example 5. F, a coin dealer, sells for currency $9,000 

worth of gold coins to an individual on three successive 

days. Under paragraph (c)(12)(ii) of this section the three 

$9,000 transactions are related transactions aggregating 

$27,000 if F knows, or has reason to know, that each 

transaction is one of a series of connected transactions.

(13) Recipient. (i) The term recipient means the person 

receiving the currency. Except as provided in paragraph 

(c)(13)(ii) of this section, each store, division, branch, 

department, headquarters, or office (“branch”) (regardless 

of physical location) comprising a portion of a person’s trade 

or business shall for purposes of this section be deemed a 

separate recipient.

(ii) A branch that receives currency payments will not 

be deemed a separate recipient if the branch (or a central 

unit linking such branch with other branches) would in 

the ordinary course of business have reason to know the 

identity of payers making currency payments to other 

branches of such person.

(iii) Examples. The following examples illustrate the 

application of the rules in paragraphs (c)(13)(i) and (ii) 

of this section:

Example 1. N, an individual, purchases regulated futures 

contracts at a cost of $7,500 and $5,000, respectively, 

through two different branches of Commodities Broker X 

on the same day. N pays for each purchase with currency. 

Each branch of Commodities Broker X transmits the 

sales information regarding each of N’s purchases to a 

central unit of Commodities Broker X (which settles 

the transactions against N’s account). Under paragraph 

(c)(13) (ii) of this section the separate branches of 

Commodities Broker X are not deemed to be separate 

recipients; therefore, Commodities Broker X must report 

with respect to the two related regulated futures contracts 

sales in accordance with this section.
Money Laundering Statutes • 131

31 C.F.R. § 103.30

Example 2. P, a corporation, owns and operates a 

racetrack. P’s racetrack contains 100 betting windows at 

which pari-mutuel wagers may be made. R, an individual, 

places currency wagers of $3,000 each at five separate 

betting windows. Assuming that in the ordinary course 

of business each betting window (or a central unit linking 

windows) does not have reason to know the identity of 

persons making wagers at other betting windows, each 

betting window would be deemed to be a separate currency 

recipient under paragraph (c)(13)(i) of this section. As 

no individual recipient received currency in excess of 

$10,000, no report need be made by P under this section.

(d) Exceptions to the reporting requirements of 31 U.S.C. 

5331—

(1) Receipt of currency by certain casinos having gross 

annual gaming revenue in excess of $1,000,000—

(i) In general. If a casino receives currency in excess 

of $10,000 and is required to report the receipt of such 

currency directly to the Treasury Department under 

Sec. 103.22 (a)(2) and 103.25 and is subject to the 

recordkeeping requirements of Sec. 103.36, then the casino 

is not required to make a report with respect to the receipt 

of such currency under 31 U.S.C. 5331 and this section.

(ii) Casinos exempt under Sec. 103.55(c). Pursuant to 

Sec. 103.55, the Secretary may exempt from the reporting 

and recordkeeping requirements under Sec. 103.22, 103.25 

and 103.36 casinos in any state whose regulatory system 

substantially meets the reporting and recordkeeping 

requirements of this part. Such casinos shall not be required 

to report receipt of currency under 31 U.S.C. 5331 and 

this section.

(iii) Reporting of currency received in a nongaming 

business. Nongaming businesses (such as shops, 

restaurants, entertainment, and hotels) at casino hotels 

and resorts are separate trades or businesses in which the 

receipt of currency in excess of $10,000 is reportable under 

section 5331 and these regulations. Thus, a casino exempt 

under paragraph (d)(1)(i) or (ii) of this section must report 

with respect to currency in excess of $10,000 received in 

its nongaming businesses.

(iv) Example. The following example illustrates the 

application of the rules in paragraphs (d)(2) (i) and (iii) 

of this section:

Example. A and B are casinos having gross annual 

gaming revenue in excess of $1,000,000. C is a casino 

with gross annual gaming revenue of less than $1,000,000. 

Casino A receives $15,000 in currency from a customer 

with respect to a gaming transaction which the casino 

reports to the Treasury Department under Sec. 103.22(a)

(2) and 103.25. Casino B receives $15,000 in currency 

from a customer in payment for accommodations provided 

to that customer at Casino B’s hotel. Casino C receives 

$15,000 in currency from a customer with respect to a 

gaming transaction. Casino A is not required to report the 

transaction under 31 U.S.C. 5331 or this section because 

the exception for certain casinos provided in paragraph 

(d)(1)(i) of this section (“the casino exception”) applies. 

Casino B is required to report under 31 U.S.C. 5331 and 

this section because the casino exception does not apply 

to the receipt of currency from a nongaming activity. 

Casino C is required to report under 31 U.S.C. 5331 

and this section because the casino exception does not 

apply to casinos having gross annual gaming revenue 

of $1,000,000 or less which do not have to report to the 

Treasury Department under Sec. 103.22(a)(2) and 103.25.

(2) Receipt of currency not in the course of the recipient’s 

trade or business. The receipt of currency in excess of $10,000 

by a person other than in the course of the person’s trade or 

business is not reportable under 31 U.S.C. 5331. Thus, for 

example, F, an individual in the trade or business of selling 

real estate, sells a motorboat for $12,000, the purchase price of 

which is paid in currency. F did not use the motorboat in any 

trade or business in which F was engaged. F is not required 

to report under 31 U.S.C. 5331 or this section because the 

exception provided in this paragraph (d)(2) applies.

(3) Receipt is made with respect to a foreign currency 

transaction—

(i) In general. Generally, there is no requirement 

to report with respect to a currency transaction if the 

entire transaction occurs outside the United States (the 

fifty states and the District of Columbia). An entire 

transaction consists of both the transaction as defined 

in paragraph (c)(12)(i) of this section and the receipt of 

currency by the recipient. If, however, any part of an entire 

transaction occurs in the Commonwealth of Puerto Rico 

or a possession or territory of the United States and the 

recipient of currency in that transaction is subject to the 

general jurisdiction of the Internal Revenue Service under 

title 26 of the United States Code, the recipient is required 

to report the transaction under this section.

(ii) Example. The following example illustrates the 

application of the rules in paragraph (d)(3)(i) of this 

section:

Example. W, an individual engaged in the trade or 

business of selling aircraft, reaches an agreement to sell an 

airplane to a U.S. citizen living in Mexico. The agreement, 

no portion of which is formulated in the United States, calls 

for a purchase price of $125,000 and requires delivery of 

and payment for the airplane to be made in Mexico. Upon 

delivery of the airplane in Mexico, W receives $125,000 in 

currency. W is not required to report under 31 U.S.C. 5331 
132 • Money Laundering Statutes

31 C.F.R. § 103.33 

or this section because the exception provided in paragraph 

(d)(3)(i) of this section (“foreign transaction exception”) 

applies. If, however, any part of the agreement to sell had 

been formulated in the United States, the foreign transaction 

exception would not apply and W would be required to report 

the receipt of currency under 31 U.S.C. 5331 and this section.

(e) Time, manner, and form of reporting—

(1) In general. The reports required by paragraph (a) of 

this section must be made by filing a Form 8300, as specified 

in 26 CFR 1.6050I-1(e)(2). The reports must be filed at the 

time and in the manner specified in 26 CFR 1.6050I-1(e)(1) 

and (3) respectively.

(2) Verification. A person making a report of information 

under this section must verify the identity of the person from 

whom the reportable currency is received. Verification of the 

identity of a person who purports to be an alien must be made 

by examination of such person’s passport, alien identification 

card, or other official document evidencing nationality or 

residence. Verification of the identity of any other person may 

be made by examination of a document normally acceptable 

as a means of identification when cashing or accepting checks 

(for example, a driver’s license or a credit card). In addition, 

a report will be considered incomplete if the person required 

to make a report knows (or has reason to know) that an agent 

is conducting the transaction for a principal, and the return 

does not identify both the principal and the agent.

(3) Retention of reports. A person required to make a report 

under this section must keep a copy of each report filed for 

five years from the date of filing.

31 C.F.R. § 103.33. Records to be made and 

retained by financial institutions.

To be used for violations occurring before

March 1, 2011.

Each financial institution shall retain either the original or 

a microfilm or other copy or reproduction of each of the 

following:

(a) A record of each extension of credit in an amount in 

excess of $10,000, except an extension of credit secured by an 

interest in real property, which record shall contain the name 

and address of the person to whom the extension of credit is 

made, the amount thereof, the nature or purpose thereof, and 

the date thereof;

(b) A record of each advice, request, or instruction received 

or given regarding any transaction resulting (or intended to 

result and later canceled if such a record is normally made) in 

the transfer of currency or other monetary instruments, funds, 

checks, investment securities, or credit, of more than $10,000 to 

or from any person, account, or place outside the United States.

(c) A record of each advice, request, or instruction given to 

another financial institution or other person located within or 

without the United States, regarding a transaction intended to 

result in the transfer of funds, or of currency, other monetary 

instruments, checks, investment securities, or credit, of more than 

$10,000 to a person, account or place outside the United States.

(d) A record of such information for such period of time as the 

Secretary may require in an order issued under Sec. 103.26(a), 

not to exceed five years.

(e) Banks. Each agent, agency, branch, or office located within 

the United States of a bank is subject to the requirements of 

this paragraph (e) with respect to a funds transfer in the amount 

of $3,000 or more:

(1) Recordkeeping requirements.

(i) For each payment order that it accepts as an 

originator’s bank, a bank shall obtain and retain either the 

original or a microfilm, other copy, or electronic record of 

the following information relating to the payment order:

(A) The name and address of the originator;

(B) The amount of the payment order;

(C) The execution date of the payment order;

(D) Any payment instructions received from the 

originator with the payment order;

(E) The identity of the beneficiary’s bank; and

(F) As many of the following items as are received 

with the payment order:1

(1) The name and address of the beneficiary;

(2) The account number of the beneficiary; and

(3) Any other specific identifier of the beneficiary.

(ii) For each payment order that it accepts as an 

intermediary bank, a bank shall retain either the original 

or a microfilm, other copy, or electronic record of the 

payment order.

(iii) For each payment order that it accepts as a 

beneficiary’s bank, a bank shall retain either the original 

or a microfilm, other copy, or electronic record of the 

payment order.

(2) Originators other than established customers. In the case 

of a payment order from an originator that is not an established 

customer, in addition to obtaining and retaining the information 

required in paragraph (e)(1)(i) of this section:

1

 For funds transfers effected through the Federal 

Reserve’s Fedwire funds transfer system, only one of 

the items is required to be retained, if received with the 

payment order, until such time as the bank that sends 

the order to the Federal Reserve Bank completes its 

conversion to the expanded Fedwire message format.
Money Laundering Statutes • 133

31 C.F.R. § 103.33

(i) If the payment order is made in person, prior to 

acceptance the originator’s bank shall verify the identity 

of the person placing the payment order. If it accepts the 

payment order, the originator’s bank shall obtain and retain 

a record of the name and address, the type of identification 

reviewed, the number of the identification document (e.g., 

driver’s license), as well as a record of the person’s taxpayer 

identification number (e.g., social security or employer 

identification number) or, if none, alien identification 

number or passport number and country of issuance, or a 

notation in the record of the lack thereof. If the originator’s 

bank has knowledge that the person placing the payment 

order is not the originator, the originator’s bank shall obtain 

and retain a record of the originator’s taxpayer identification 

number (e.g., social security or employer identification 

number) or, if none, alien identification number or passport 

number and country of issuance, if known by the person 

placing the order, or a notation in the record of the lack 

thereof.

(ii) If the payment order accepted by the originator’s 

bank is not made in person, the originator’s bank shall 

obtain and retain a record of name and address of the person 

placing the payment order, as well as the person’s taxpayer 

identification number (e.g., social security or employer 

identification number) or, if none, alien identification 

number or passport number and country of issuance, or 

a notation in the record of the lack thereof, and a copy or 

record of the method of payment (e.g., check or credit card 

transaction) for the funds transfer. If the originator’s bank 

has knowledge that the person placing the payment order 

is not the originator, the originator’s bank shall obtain and 

retain a record of the originator’s taxpayer identification 

number (e.g., social security or employer identification 

number) or, if none, alien identification number or passport 

number and country of issuance, if known by the person 

placing the order, or a notation in the record of the lack 

thereof.

(3) Beneficiaries other than established customers. For 

each payment order that it accepts as a beneficiary’s bank for 

a beneficiary that is not an established customer, in addition to 

obtaining and retaining the information required in paragraph 

(e)(1)(iii) of this section:

(i) if the proceeds are delivered in person to the 

beneficiary or its representative or agent, the beneficiary’s 

bank shall verify the identity of the person receiving the 

proceeds and shall obtain and retain a record of the name 

and address, the type of identification reviewed, and the 

number of the identification document (e.g., driver’s 

license), as well as a record of the person’s taxpayer 

identification number (e.g., social security or employer 

identification number) or, if none, alien identification 

number or passport number and country of issuance, or a 

notation in the record of the lack thereof. If the beneficiary’s 

bank has knowledge that the person receiving the proceeds 

is not the beneficiary, the beneficiary’s bank shall obtain 

and retain a record of the beneficiary’s name and address, 

as well as the beneficiary’s taxpayer identification number 

(e.g., social security or employer identification number) or, 

if none, alien identification number or passport number and 

country of issuance, if known by the person receiving the 

proceeds, or a notation in the record of the lack thereof.

(ii) if the proceeds are delivered other than in person, 

the beneficiary’s bank shall retain a copy of the check or 

other instrument used to effect payment, or the information 

contained thereon, as well as the name and address of the 

person to which it was sent.

(4) Retrievability. The information that an originator’s bank 

must retain under paragraphs (e)(1)(i) and (e)(2) of this section 

shall be retrievable by the originator’s bank by reference to 

the name of the originator. If the originator is an established 

customer of the originator’s bank and has an account used for 

funds transfers, then the information also shall be retrievable 

by account number. The information that a beneficiary’s 

bank must retain under paragraphs (e)(1)(iii) and (e)(3) of 

this section shall be retrievable by the beneficiary’s bank by 

reference to the name of the beneficiary. If the beneficiary is 

an established customer of the beneficiary’s bank and has an 

account used for funds transfers, then the information also 

shall be retrievable by account number. This information need 

not be retained in any particular manner, so long as the bank 

is able to retrieve the information required by this paragraph, 

either by accessing funds transfer records directly or through 

reference to some other record maintained by the bank.

(5) Verification. Where verification is required under 

paragraphs (e)(2) and (e)(3) of this section, a bank shall verify 

a person’s identity by examination of a document (other than a 

bank signature card), preferably one that contains the person’s 

name, address, and photograph, that is normally acceptable 

by financial institutions as a means of identification when 

cashing checks for persons other than established customers. 

Verification of the identity of an individual who indicates that 

he or she is an alien or is not a resident of the United States 

may be made by passport, alien identification card, or other 

official document evidencing nationality or residence (e.g., 

a foreign driver’s license with indication of home address).

(6) Exceptions. The following funds transfers are not 

subject to the requirements of this section:

(i) Funds transfers where the originator and beneficiary 

are any of the following:

(A) A bank;

(B) A wholly-owned domestic subsidiary of a bank 

chartered in the United States;
134 • Money Laundering Statutes

31 C.F.R. § 103.33 

(C) A broker or dealer in securities;

(D) A wholly-owned domestic subsidiary of a broker 

or dealer in securities;

(E) A futures commission merchant or an introducing 

broker in commodities;

(F) A wholly-owned domestic subsidiary of a futures 

commission merchant or an introducing broker in 

commodities;

(G) The United States;

(H) A state or local government; or

(I) A federal, state or local government agency or 

instrumentality; and

(ii) Funds transfers where both the originator and the 

beneficiary are the same person and the originator’s bank 

and the beneficiary’s bank are the same bank.

(f) Nonbank financial institutions. Each agent, agency, branch, 

or office located within the United States of a financial 

institution other than a bank is subject to the requirements of 

this paragraph (f) with respect to a transmittal of funds in the 

amount of $3,000 or more:

(1) Recordkeeping requirements.

(i) For each transmittal order that it accepts as a 

transmittor’s financial institution, a financial institution 

shall obtain and retain either the original or a microfilm, 

other copy, or electronic record of the following information 

relating to the transmittal order:

(A) The name and address of the transmittor;

(B) The amount of the transmittal order;

(C) The execution date of the transmittal order;

(D) Any payment instructions received from the 

transmittor with the transmittal order;

(E) The identity of the recipient’s financial institution;

(F) As many of the following items as are received 

with the transmittal order:2

(1) The name and address of the recipient;

(2) The account number of the recipient; and

(3) Any other specific identifier of the recipient; 

and

2

 For transmittals of funds effected through the Federal 

Reserve’s Fedwire funds transfer system by a domestic 

broker or dealers in securities, only one of the items is 

required to be retained, if received with the transmittal 

order, until such time as the bank that sends the order to 

the Federal Reserve Bank completes its conversion to the 

expanded Fedwire message format.

(G) Any form relating to the transmittal of funds 

that is completed or signed by the person placing the 

transmittal order.

(ii) For each transmittal order that it accepts as an 

intermediary financial institution, a financial institution 

shall retain either the original or a microfilm, other copy, 

or electronic record of the transmittal order.

(iii) for each transmittal order that it accepts as a 

recipient’s financial institution, a financial institution shall 

retain either the original or a microfilm, other copy, or 

electronic record of the transmittal order.

(2) Transmittors other than established customers. In the 

case of a transmittal order from a transmittor that is not an 

established customer, in addition to obtaining and retaining 

the information required in paragraph (f)(1)(i) of this section:

(i) If the transmittal order is made in person, prior to 

acceptance the transmittor’s financial institution shall verify 

the identity of the person placing the transmittal order. If 

it accepts the transmittal order, the transmittor’s financial 

institution shall obtain and retain a record of the name and 

address, the type of identification reviewed, and the number of 

the identification document (e.g., driver’s license), as well as 

a record of the person’s taxpayer identification number (e.g., 

social security or employer identification number) or, if none, 

alien identification number or passport number and country 

of issuance, or a notation in the record the lack thereof. If 

the transmittor’s financial institution has knowledge that the 

person placing the transmittal order is not the transmittor, 

the transmittor’s financial institution shall obtain and retain 

a record of the transmittor’s taxpayer identification number 

(e.g., social security or employer identification number) or, 

if none, alien identification number or passport number and 

country of issuance, if known by the person placing the order, 

or a notation in the record the lack thereof.

(ii) If the transmittal order accepted by the transmittor’s 

financial institution is not made in person, the transmittor’s 

financial institution shall obtain and retain a record of the 

name and address of the person placing the transmittal order, 

as well as the person’s taxpayer identification number (e.g., 

social security or employer identification number) or, if 

none, alien identification number or passport number and 

country of issuance, or a notation in the record of the lack 

thereof, and a copy or record of the method of payment (e.g., 

check or credit card transaction) for the transmittal of funds. 

If the transmittor’s financial institution has knowledge that 

the person placing the transmittal order is not the transmittor, 

the transmittor’s financial institution shall obtain and retain 

a record of the transmittor’s taxpayer identification number 

(e.g., social security or employer identification number) 

or, if none, alien identification number or passport number 

and country of issuance, if known by the person placing the 

order, or a notation in the record the lack thereof.
Money Laundering Statutes • 135

31 C.F.R. § 103.33

(3) Recipients other than established customers. For each 

transmittal order that it accepts as a recipient’s financial 

institution for a recipient that is not an established customer, 

in addition to obtaining and retaining the information required 

in paragraph (f)(1)(iii) of this section:

(i) If the proceeds are delivered in person to the recipient 

or its representative or agent, the recipient’s financial 

institution shall verify the identity of the person receiving 

the proceeds and shall obtain and retain a record of the 

name and address, the type of identification reviewed, and 

the number of the identification document (e.g., driver’s 

license), as well as a record of the person’s taxpayer 

identification number (e.g., social security or employer 

identification number) or, if none, alien identification 

number or passport number and country of issuance, or a 

notation in the record of the lack thereof. If the recipient’s 

financial institution has knowledge that the person receiving 

the proceeds is not the recipient, the recipient’s financial 

institution shall obtain and retain a record of the recipient’s 

name and address, as well as the recipient’s taxpayer 

identification number (e.g., social security or employer 

identification number) or, if none, alien identification 

number or passport number and country of issuance, if 

known by the person receiving the proceeds, or a notation 

in the record of the lack thereof.

(ii) If the proceeds are delivered other than in person, 

the recipient’s financial institution shall retain a copy of 

the check or other instrument used to effect payment, or 

the information contained thereon, as well as the name and 

address of the person to which it was sent.

(4) Retrievability. The information that a transmittor’s 

financial institution must retain under paragraphs (f) (1) (i) and 

(f)(2) of this section shall be retrievable by the transmittor’s 

financial institution by reference to the name of the transmittor. 

If the transmittor is an established customer of the transmittor’s 

financial institution and has an account used for transmittals 

of funds, then the information also shall be retrievable by 

account number. The information that a recipient’s financial 

institution must retain under paragraphs (f)(1)(iii) and (f)(3) 

of this section shall be retrievable by the recipient’s financial 

institution by reference to the name of the recipient. If the 

recipient is an established customer of the recipient’s financial 

institution and has an account used for transmittals of funds, 

then the information also shall be retrievable by account 

number. This information need not be retained in any particular 

manner, so long as the financial institution is able to retrieve 

the information required by this paragraph, either by accessing 

transmittal of funds records directly or through reference to 

some other record maintained by the financial institution.

(5) Verification. Where verification is required under 

paragraphs (f)(2) and (f)(3) of this section, a financial 

institution shall verify a person’s identity by examination of a 

document (other than a customer signature card), preferably 

one that contains the person’s name, address, and photograph, 

that is normally acceptable by financial institutions as a means 

of identification when cashing checks for persons other than 

established customers. Verification of the identity of an 

individual who indicates that he or she is an alien or is not a 

resident of the United States may be made by passport, alien 

identification card, or other official document evidencing 

nationality or residence (e.g., a foreign driver’s license with 

indication of home address).

(6) Exceptions. The following transmittals of funds are not 

subject to the requirements of this section:

(i) Transmittals of funds where the transmittor and the 

recipient are any of the following:

(A) A bank;

(B) A wholly-owned domestic subsidiary of a bank 

chartered in the United States;

(C) A broker or dealer in securities;

(D) A wholly-owned domestic subsidiary of a broker 

or dealer in securities;

(E) A futures commission merchant or an introducing 

broker in commodities;

(F) A wholly-owned domestic subsidiary of a futures 

commission merchant or an introducing broker in 

commodities;

(G) The United States;

(H) A state or local government; or

(I) A federal, state or local government agency or 

instrumentality; and

(ii) Transmittals of funds where both the transmittor 

and the recipient are the same person and the transmittor’s 

financial institution and the recipient’s financial institution 

are the same broker or dealer in securities.

(g) Any transmittor’s financial institution or intermediary 

financial institution located within the United States shall 

include in any transmittal order for a transmittal of funds in 

the amount of $3,000 or more, information as required in this 

paragraph (g):

(1) A transmittor’s financial institution shall include in a 

transmittal order, at the time it is sent to a receiving financial 

institution, the following information:

(i) The name and, if the payment is ordered from an 

account, the account number of the transmittor;

(ii) The address of the transmittor, except for a 

transmittal order through Fedwire until such time as the 
136 • Money Laundering Statutes

31 C.F.R. § 103.33 

bank that sends the order to the Federal Reserve Bank 

completes its conversion to the expanded Fedwire format;

(iii) The amount of the transmittal order;

(iv) The execution date of the transmittal order;

(v) The identity of the recipient’s financial institution;

(vi) As many of the following items as are received with 

the transmittal order:3

(A) The name and address of the recipient;

(B) The account number of the recipient;

(C) Any other specific identifier of the recipient; and

(vii) Either the name and address or numerical identifier 

of the transmittor’s financial institution.

(2) A receiving financial institution that acts as an 

intermediary financial institution, if it accepts a transmittal 

order, shall include in a corresponding transmittal order at the 

time it is sent to the next receiving financial institution, the 

following information, if received from the sender:

(i) The name and the account number of the transmittor;

(ii) The address of the transmittor, except for a 

transmittal order through Fedwire until such time as the 

bank that sends the order to the Federal Reserve Bank 

completes its conversion to the expanded Fedwire format;

(iii) The amount of the transmittal order;

(iv) The execution date of the transmittal order;

(v) The identity of the recipient’s financial institution;

(vi) As many of the following items as are received with 

the transmittal order:4

(A) The name and address of the recipient;

(B) The account number of the recipient;

(C) Any other specific identifier of the recipient; and

(vii) Either the name and address or numerical identifier 

of the transmittor’s financial institution.

3

 For transmittals of funds effected through the Federal 

Reserve’s Fedwire funds transfer system by a financial 

institution, only one of the items is required to be included 

in the transmittal order, if received with the sender’s 

transmittal order, until such time as the bank that sends 

the order to the Federal Reserve Bank completes its 

conversion to the expanded Fedwire message format.

4

 For transmittals of funds effected through the Federal 

Reserve’s Fedwire funds transfer system by a financial 

institution, only one of the items is required to be included 

in the transmittal order, if received with the sender’s 

transmittal order, until such time as the bank that sends 

the order to the Federal Reserve Bank completes its 

conversion to the expanded Fedwire message format.

(3) Safe harbor for transmittals of funds prior to conversion 

to the expanded Fedwire message format. The following 

provisions apply to transmittals of funds effected through the 

Federal Reserve’s Fedwire funds transfer system or otherwise 

by a financial institution before the bank that sends the order 

to the Federal Reserve Bank or otherwise completes its 

conversion to the expanded Fedwire message format.

(i) Transmittor’s financial institution. A transmittor’s 

financial institution will be deemed to be in compliance 

with the provisions of paragraph (g)(1) of this section if it:

(A) Includes in the transmittal order, at the time it is 

sent to the receiving financial institution, the information 

specified in paragraphs (g)(1)(iii) through (v), and the 

information specified in paragraph (g) (1) (vi) of this 

section to the extent that such information has been 

received by the financial institution, and

(B) Provides the information specified in paragraphs 

(g)(1)(i), (ii) and (vii) of this section to a financial 

institution that acted as an intermediary financial 

institution or recipient’s financial institution in 

connection with the transmittal order, within a 

reasonable time after any such financial institution 

makes a request therefor in connection with the 

requesting financial institution’s receipt of a lawful 

request for such information from a federal, state, or 

local law enforcement or financial regulatory agency, or 

in connection with the requesting financial institution’s 

own Bank Secrecy Act compliance program.

(ii) Intermediary financial institution. An intermediary 

financial institution will be deemed to be in compliance 

with the provisions of paragraph (g)(2) of this section if it:

(A) Includes in the transmittal order, at the time it is 

sent to the receiving financial institution, the information 

specified in paragraphs (g)(2)(iii) through (g)(2)(vi) of 

this section, to the extent that such information has been 

received by the intermediary financial institution; and

(B) Provides the information specified in paragraphs 

(g)(2)(i), (ii) and (vii) of this section, to the extent that 

such information has been received by the intermediary 

financial institution, to a financial institution that acted 

as an intermediary financial institution or recipient’s 

financial institution in connection with the transmittal 

order, within a reasonable time after any such financial 

institution makes a request therefor in connection with 

the requesting financial institution’s receipt of a lawful 

request for such information from a federal, state, 

or local law enforcement or regulatory agency, or in 

connection with the requesting financial institution’s 

own Bank Secrecy Act compliance program.

(iii) Obligation of requesting financial institution. Any 

information requested under paragraph (g)(3)(i)(B) or 
Money Laundering Statutes • 137

31 C.F.R. § 103.41

(g)(3)(ii)(B) of this section shall be treated by the requesting 

institution, once received, as if it had been included in the 

transmittal order to which such information relates.

(4) Exceptions. The requirements of this paragraph (g) shall 

not apply to transmittals of funds that are listed in paragraph 

(e)(6) or (f)(6) of this section.

31 C.F.R. § 103.41. Registration of money 

services businesses.

To be used for violations occurring before

March 1, 2011.

(a) Registration requirement—

(1) In general. Except as provided in paragraph (a)(2) of 

this section, relating to agents, each money services business 

(whether or not licensed as a money services business by 

any State) must register with the Department of the Treasury 

and, as part of that registration, maintain a list of its agents as 

required by 31 U.S.C. 5330 and this section. This section does 

not apply to the United States Postal Service, to agencies of 

the United States, of any State, or of any political subdivision 

of a State, or to a person to the extent that the person is an 

issuer, seller, or redeemer of stored value.

(2) Agents. A person that is a money services business 

solely because that person serves as an agent of another 

money services business, see Sec. 103.11(uu), is not required 

to register under this section, but a money services business 

that engages in activities described in Sec. 103.11(uu) both on 

its own behalf and as an agent for others must register under 

this section. For example, a supermarket corporation that 

acts as an agent for an issuer of money orders and performs 

no other services of a nature and value that would cause the 

corporation to be a money services business, is not required 

to register; the answer would be the same if the supermarket 

corporation served as an agent both of a money order issuer 

and of a money transmitter. However, registration would be 

required if the supermarket corporation, in addition to acting 

as an agent of an issuer of money orders, cashed checks or 

exchanged currencies (other than as an agent for another 

business) in an amount greater than $1,000 in currency or 

monetary or other instruments for any person on any day, in 

one or more transactions.

(3) Agency status. The determination whether a person is 

an agent depends on all the facts and circumstances.

(b) Registration procedures—

(1) In general.

(i) A money services business must be registered by 

filing such form as FinCEN may specify with the Detroit 

Computing Center of the Internal Revenue Service (or such 

other location as the form may specify). The information 

required by 31 U.S.C. 5330(b) and any other information 

required by the form must be reported in the manner and 

to the extent required by the form.

(ii) A branch office of a money services business is not 

required to file its own registration form. A money services 

business must, however, report information about its 

branch locations or offices as provided by the instructions 

to the registration form.

(iii) A money services business must retain a copy 

of any registration form filed under this section and any 

registration number that may be assigned to the business at 

a location in the United States and for the period specified 

in Sec. 103.38(d).

(2) Registration period. A money services business must be 

registered for the initial registration period and each renewal 

period. The initial registration period is the two-calendar-year 

period beginning with the calendar year in which the money 

services business is first required to be registered. However, 

the initial registration period for a money services business 

required to register by December 31, 2001 (see paragraph 

(b) (3) of this section) is the two-calendar year period 

beginning 2002. Each two-calendar-year period following 

the initial registration period is a renewal period.

(3) Due date. The registration form for the initial registration 

period must be filed on or before the later of December 31, 

2001, and the end of the 180-day period beginning on the day 

following the date the business is established. The registration 

form for a renewal period must be filed on or before the last 

day of the calendar year preceding the renewal period.

(4) Events requiring re-registration. If a money services 

business registered as such under the laws of any State 

experiences a change in ownership or control that requires 

the business to be re-registered under State law, the money 

services business must also be re-registered under this section. 

In addition, if there is a transfer of more than 10 percent of the 

voting power or equity interests of a money services business 

(other than a money services business that must report such 

transfer to the Securities and Exchange Commission), the 

money services business must be re-registered under this section. 

Finally, if a money services business experiences a more than 

50 percent increase in the number of its agents during any 

registration period, the money services business must be reregistered under this section. The registration form must be filed 

not later than 180 days after such change in ownership, transfer 

of voting power or equity interests, or increase in agents. The 

calendar year in which the change, transfer, or increase occurs 

is treated as the first year of a new two-year registration period.

(c) Persons required to file the registration form. Under 

31 U.S.C. 5330(a), any person who owns or controls a money 

services business is responsible for registering the business; 

however, only one registration form is required to be filed 

for each registration period. A person is treated as owning or 
138 • Money Laundering Statutes

31 C.F.R. § 103.41 

controlling a money services business for purposes of filing 

the registration form only to the extent provided by the form. 

If more than one person owns or controls a money services 

business, the owning or controlling persons may enter into an 

agreement designating one of them to register the business. 

The failure of the designated person to register the money 

services business does not, however, relieve any of the other 

persons who own or control the business of liability for the 

failure to register the business. See paragraph (e) of this 

section, relating to consequences of the failure to comply 

with 31 U.S.C. 5330 or this section.

(d) List of agents—

(1) In general. A money services business must prepare 

and maintain a list of its agents. The initial list of agents must 

be prepared by January 1, 2002, and must be revised each 

January 1, for the immediately preceding 12 month period; 

for money services businesses established after December 31, 

2001, the initial agent list must be prepared by the due date of 

the initial registration form and must be revised each January 

1 for the immediately preceding 12-month period. The list is 

not filed with the registration form but must be maintained at 

the location in the United States reported on the registration 

form under paragraph (b)(1) of this section. Upon request, a 

money services business must make its list of agents available 

to FinCEN and any other appropriate law enforcement agency 

(including, without limitation, the examination function of the 

Internal Revenue Service in its capacity as delegee of Bank 

Secrecy Act examination authority). Requests for information 

made pursuant to the preceding sentence shall be coordinated 

through FinCEN in the manner and to the extent determined 

by FinCEN. The original list of agents and any revised list 

must be retained for the period specified in Sec. 103.38(d).

(2) Information included on the list of agents—

(i) In general. Except as provided in paragraph (d)(2) (ii) 

of this section, a money services business must include the 

following information with respect to each agent on the 

list (including any revised list) of its agents—

(A) The name of the agent, including any trade 

names or doing-business-as names;

(B) The address of the agent, including street 

address, city, state, and ZIP code;

(C) The telephone number of the agent;

(D) The type of service or services (money orders, 

traveler’s checks, check sales, check cashing, currency 

exchange, and money transmitting) the agent provides;

(E) A listing of the months in the 12 months 

immediately preceding the date of the most recent agent 

list in which the gross transaction amount of the agent 

with respect to financial products or services issued 

by the money services business maintaining the agent 

list exceeded $100,000. For this purpose, the money 

services gross transaction amount is the agent’s gross 

amount (excluding fees and commissions) received 

from transactions of one or more businesses described 

in Sec. 103.11(uu);

(F) The name and address of any depository 

institution at which the agent maintains a transaction 

account (as defined in 12 U.S.C. 461(b)(1)(C)) for 

all or part of the funds received in or for the financial 

products or services issued by the money services 

business maintaining the list, whether in the agent’s or 

the business principal’s name;

(G) The year in which the agent first became an agent 

of the money services business; and

(H) The number of branches or subagents the agent 

has.

(ii) Special rules. Information about agent volume must 

be current within 45 days of the due date of the agent list. 

The information described by paragraphs (d) (2) (i) (G) 

and (d)(2)(i)(H) of this section is not required to be 

included in an agent list with respect to any person that 

is an agent of the money services business maintaining 

the list before the first day of the month beginning after 

February 16, 2000 so long as the information described 

by paragraphs (d) (2) (i) (G) and (d)(2)(i)(H) of this section 

is made available upon the request of FinCEN and any 

other appropriate law enforcement agency (including, 

without limitation, the examination function of the Internal 

Revenue Service in its capacity as delegee of Bank Secrecy 

Act examination authority).

(e) Consequences of failing to comply with 31 U.S.C. 5330 

or the regulations thereunder. It is unlawful to do business 

without complying with 31 U.S.C. 5330 and this section. A 

failure to comply with the requirements of 31 U.S.C 5330 or 

this section includes the filing of false or materially incomplete 

information in connection with the registration of a money 

services business. Any person who fails to comply with 

any requirement of 31 U.S.C. 5330 or this section shall be 

liable for a civil penalty of $5,000 for each violation. Each 

day a violation of 31 U.S.C. 5330 or this section continues 

constitutes a separate violation. In addition, under 31 U.S.C. 

5320, the Secretary of the Treasury may bring a civil action to 

enjoin the violation. See 18 U.S.C. 1960 for a criminal penalty 

for failure to comply with the registration requirements of 

31 U.S.C. 5330 or this section.

(f) Effective date. This section is effective September 20, 

1999. Registration of money services businesses under this 

section will not be required prior to December 31, 2001.
Money Laundering Statutes • 139

31 C.F.R. § 103.121

31 C.F.R. § 103.121. Customer Identification 

Programs for banks, savings associations, 

credit unions, and certain non-Federally 

regulated banks.

To be used for violations occurring before

March 1, 2011.

(a) Definitions. For purposes of this section:

(1)(i) Account means a formal banking relationship 

established to provide or engage in services, dealings, or other 

financial transactions including a deposit account, a transaction 

or asset account, a credit account, or other extension of credit. 

Account also includes a relationship established to provide 

a safety deposit box or other safekeeping services, or cash 

management, custodian, and trust services.

(ii) Account does not include:

(A) A product or service where a formal banking 

relationship is not established with a person, such 

as check-cashing, wire transfer, or sale of a check or 

money order;

(B) An account that the bank acquires through an 

acquisition, merger, purchase of assets, or assumption 

of liabilities; or

(C) An account opened for the purpose of participating 

in an employee benefit plan established under the 

Employee Retirement Income Security Act of 1974.

(2) Bank means:

(i) A bank, as that term is defined in Sec. 103.11(c), that 

is subject to regulation by a Federal functional regulator; and

(ii) A credit union, private bank, and trust company, as 

set forth in Sec. 103.11(c), that does not have a Federal 

functional regulator.

(3)(i) Customer means:

(A) A person that opens a new account; and

(B) An individual who opens a new account for:

(1) An individual who lacks legal capacity, such 

as a minor; or

(2) An entity that is not a legal person, such as 

a civic club.

(ii) Customer does not include:

(A) A financial institution regulated by a Federal 

functional regulator or a bank regulated by a state bank 

regulator;

(B) A person described in Sec. 103.22(d)(2)(ii) 

through (iv); or

(C) A person that has an existing account with the 

bank, provided that the bank has a reasonable belief 

that it knows the true identity of the person.

(4) Federal functional regulator is defined at Sec. 

103.120(a)(2).

(5) Financial institution is defined at 31 U.S.C. 5312(a) (2) 

and (c)(1).

(6) Taxpayer identification number is defined by section 

6109 of the Internal Revenue Code of 1986 (26 U.S.C. 6109) 

and the Internal Revenue Service regulations implementing 

that section (e.g., social security number or employer 

identification number).

(7) U.S. person means:

(i) A United States citizen; or

(ii) A person other than an individual (such as a 

corporation, partnership, or trust), that is established or 

organized under the laws of a State or the United States.

(8) Non-U.S. person means a person that is not a U.S. person.

(b) Customer Identification Program: minimum 

requirements—

(1) In general. A bank must implement a written Customer 

Identification Program (CIP) appropriate for its size and 

type of business that, at a minimum, includes each of the 

requirements of paragraphs (b)(1) through (5) of this section. 

If a bank is required to have an anti-money laundering 

compliance program under the regulations implementing 31 

U.S.C. 5318(h), 12 U.S.C. 1818(s), or 12 U.S.C. 1786(q)(1), 

then the CIP must be a part of the anti-money laundering 

compliance program. Until such time as credit unions, private 

banks, and trust companies without a Federal functional 

regulator are subject to such a program, their CIPs must be 

approved by their boards of directors.

(2) Identity verification procedures. The CIP must 

include risk-based procedures for verifying the identity of 

each customer to the extent reasonable and practicable. 

The procedures must enable the bank to form a reasonable 

belief that it knows the true identity of each customer. These 

procedures must be based on the bank’s assessment of the 

relevant risks, including those presented by the various types 

of accounts maintained by the bank, the various methods of 

opening accounts provided by the bank, the various types 

of identifying information available, and the bank’s size, 

location, and customer base. At a minimum, these procedures 

must contain the elements described in this paragraph (b)(2).

(i) Customer information required—
140 • Money Laundering Statutes

31 C.F.R. § 103.121 

(A) In general. The CIP must contain procedures 

for opening an account that specify the identifying 

information that will be obtained from each customer. 

Except as permitted by paragraphs (b)(2)(i)(B) and (C) 

of this section, the bank must obtain, at a minimum, 

the following information from the customer prior to 

opening an account:

(1) Name;

(2) Date of birth, for an individual;

(3) Address, which shall be:

(i) For an individual, a residential or 

business street address;

(ii) For an individual who does not have 

a residential or business street address, an 

Army Post Office (APO) or Fleet Post 

Office (FPO) box number, or the residential 

or business street address of next of kin or 

of another contact individual; or

(iii) For a person other than an individual 

(such as a corporation, partnership, or 

trust), a principal place of business, local 

office, or other physical location; and

(4) Identification number, which shall be:

(i) For a U.S. person, a taxpayer 

identification number; or

(ii) For a non-U.S. person, one or more 

of the following: a taxpayer identification 

number; passport number and country of 

issuance; alien identification card number; 

or number and country of issuance of 

any other government-issued document 

evidencing nationality or residence and 

bearing a photograph or similar safeguard.

Note to paragraph (b)(2)(i)(A)(4)(ii): 

When opening an account for a foreign 

business or enterprise that does not have 

an identification number, the bank must 

request alternative government-issued 

documentation certifying the existence of 

the business or enterprise.

(B) Exception for persons applying for a taxpayer 

identification number. Instead of obtaining a taxpayer 

identification number from a customer prior to opening 

the account, the CIP may include procedures for 

opening an account for a customer that has applied for, 

but has not received, a taxpayer identification number. 

In this case, the CIP must include procedures to confirm 

that the application was filed before the customer opens 

the account and to obtain the taxpayer identification 

number within a reasonable period of time after the 

account is opened.

(C) Credit card accounts. In connection with a 

customer who opens a credit card account, a bank may 

obtain the identifying information about a customer 

required under paragraph (b)(2)(i)(A) by acquiring it 

from a third-party source prior to extending credit to 

the customer.

(ii) Customer verification. The CIP must contain 

procedures for verifying the identity of the customer, 

using information obtained in accordance with paragraph 

(b)(2)(i) of this section, within a reasonable time after the 

account is opened. The procedures must describe when 

the bank will use documents, non-documentary methods, 

or a combination of both methods as described in this 

paragraph (b)(2)(ii).

(A) Verification through documents. For a bank 

relying on documents, the CIP must contain procedures 

that set forth the documents that the bank will use. These 

documents may include:

(1) For an individual, unexpired governmentissued identification evidencing nationality or 

residence and bearing a photograph or similar 

safeguard, such as a driver’s license or passport; and

(2) For a person other than an individual (such 

as a corporation, partnership, or trust), documents 

showing the existence of the entity, such as certified 

articles of incorporation, a government-issued 

business license, a partnership agreement, or trust 

instrument.

(B) Verification through non-documentary methods. 

For a bank relying on non-documentary methods, the 

CIP must contain procedures that describe the nondocumentary methods the bank will use.

(1) These methods may include contacting a 

customer; independently verifying the customer’s 

identity through the comparison of information 

provided by the customer with information obtained 

from a consumer reporting agency, public database, 

or other source; checking references with other 

financial institutions; and obtaining a financial 

statement.

(2) The bank’s non-documentary procedures 

must address situations where an individual is 

unable to present an unexpired government-issued 

identification document that bears a photograph 

or similar safeguard; the bank is not familiar with 

the documents presented; the account is opened 

without obtaining documents; the customer opens 
Money Laundering Statutes • 141

31 C.F.R. § 103.121

the account without appearing in person at the bank; 

and where the bank is otherwise presented with 

circumstances that increase the risk that the bank will 

be unable to verify the true identity of a customer 

through documents.

(C) Additional verification for certain customers. 

The CIP must address situations where, based on the 

bank’s risk assessment of a new account opened by a 

customer that is not an individual, the bank will obtain 

information about individuals with authority or control 

over such account, including signatories, in order to 

verify the customer’s identity. This verification method 

applies only when the bank cannot verify the customer’s 

true identity using the verification methods described in 

paragraphs (b)(2)(ii)(A) and (B) of this section.

(iii) Lack of verification. The CIP must include 

procedures for responding to circumstances in which the 

bank cannot form a reasonable belief that it knows the true 

identity of a customer. These procedures should describe:

(A) When the bank should not open an account;

(B) The terms under which a customer may use an 

account while the bank attempts to verify the customer’s 

identity;

(C) When the bank should close an account, after 

attempts to verify a customer’s identity have failed; and

(D) When the bank should file a Suspicious 

Activity Report in accordance with applicable law and 

regulation.

(3) Recordkeeping. The CIP must include procedures for 

making and maintaining a record of all information obtained 

under the procedures implementing paragraph (b) of this 

section.

(i) Required records. At a minimum, the record must 

include:

(A) All identifying information about a customer 

obtained under paragraph (b)(2)(i) of this section;

(B) A description of any document that was relied on 

under paragraph (b)(2)(ii)(A) of this section noting the 

type of document, any identification number contained 

in the document, the place of issuance and, if any, the 

date of issuance and expiration date;

(C) A description of the methods and the results of 

any measures undertaken to verify the identity of the 

customer under paragraph (b)(2)(ii)(B) or (C) of this 

section; and

(D) A description of the resolution of any substantive 

discrepancy discovered when verifying the identifying 

information obtained.

(ii) Retention of records. The bank must retain the 

information in paragraph (b)(3)(i)(A) of this section for 

five years after the date the account is closed or, in the 

case of credit card accounts, five years after the account 

is closed or becomes dormant. The bank must retain the 

information in paragraphs (b)(3)(i)(B), (C), and (D) of this 

section for five years after the record is made.

(4) Comparison with government lists. The CIP must 

include procedures for determining whether the customer 

appears on any list of known or suspected terrorists or terrorist 

organizations issued by any Federal government agency 

and designated as such by Treasury in consultation with the 

Federal functional regulators. The procedures must require the 

bank to make such a determination within a reasonable period 

of time after the account is opened, or earlier, if required by 

another Federal law or regulation or Federal directive issued 

in connection with the applicable list. The procedures must 

also require the bank to follow all Federal directives issued 

in connection with such lists.

(5)(i) Customer notice. The CIP must include procedures 

for providing bank customers with adequate notice that the 

bank is requesting information to verify their identities.

(ii) Adequate notice. Notice is adequate if the bank 

generally describes the identification requirements of this 

section and provides the notice in a manner reasonably 

designed to ensure that a customer is able to view the 

notice, or is otherwise given notice, before opening an 

account. For example, depending upon the manner in 

which the account is opened, a bank may post a notice in 

the lobby or on its website, include the notice on its account 

applications, or use any other form of written or oral notice.

(iii) Sample notice. If appropriate, a bank may use 

the following sample language to provide notice to its 

customers:

I M P O RTA N T I N F O R M AT I O N A B O U T 

PROCEDURES FOR OPENING A NEW ACCOUNT

To help the government fight the funding of terrorism 

and money laundering activities, Federal law requires 

all financial institutions to obtain, verify, and record 

information that identifies each person who opens an 

account.

What this means for you: When you open an account, 

we will ask for your name, address, date of birth, and other 

information that will allow us to identify you. We may 

also ask to see your driver’s license or other identifying 

documents.

(6) Reliance on another financial institution. The CIP may 

include procedures specifying when a bank will rely on the 

performance by another financial institution (including an 

affiliate) of any procedures of the bank’s CIP, with respect 
142 • Money Laundering Statutes

31 C.F.R. § 103.125 

to any customer of the bank that is opening, or has opened, 

an account or has established a similar formal banking or 

business relationship with the other financial institution to 

provide or engage in services, dealings, or other financial 

transactions, provided that:

(i) Such reliance is reasonable under the circumstances;

(ii) The other financial institution is subject to a rule 

implementing 31 U.S.C. 5318(h) and is regulated by a 

Federal functional regulator; and

(iii) The other financial institution enters into a contract 

requiring it to certify annually to the bank that it has 

implemented its anti-money laundering program, and that 

it will perform (or its agent will perform) the specified 

requirements of the bank’s CIP.

(c) Exemptions. The appropriate Federal functional regulator, 

with the concurrence of the Secretary, may, by order or 

regulation, exempt any bank or type of account from the 

requirements of this section. The Federal functional regulator 

and the Secretary shall consider whether the exemption is 

consistent with the purposes of the Bank Secrecy Act and with 

safe and sound banking, and may consider other appropriate 

factors. The Secretary will make these determinations for any 

bank or type of account that is not subject to the authority of 

a Federal functional regulator.

(d) Other requirements unaffected. Nothing in this section 

relieves a bank of its obligation to comply with any other 

provision in this part, including provisions concerning 

information that must be obtained, verified, or maintained in 

connection with any account or transaction.

31 C.F.R. § 103.125. Anti-money laundering 

programs for money services businesses.

To be used for violations occurring before

March 1, 2011.

(a) Each money services business, as defined by Sec. 

103.11(uu), shall develop, implement, and maintain an effective 

anti-money laundering program. An effective anti-money 

laundering program is one that is reasonably designed to prevent 

the money services business from being used to facilitate money 

laundering and the financing of terrorist activities.

(b) The program shall be commensurate with the risks posed 

by the location and size of, and the nature and volume of the 

financial services provided by, the money services business.

(c) The program shall be in writing, and a money services 

business shall make copies of the anti-money laundering 

program available for inspection to the Department of the 

Treasury upon request.

(d) At a minimum, the program shall:

(1) Incorporate policies, procedures, and internal controls 

reasonably designed to assure compliance with this part.

(i) Policies, procedures, and internal controls developed 

and implemented under this section shall include 

provisions for complying with the requirements of this part 

including, to the extent applicable to the money services 

business, requirements for:

(A) Verifying customer identification;

(B) Filing reports;

(C) Creating and retaining records; and

(D) Responding to law enforcement requests.

(ii) Money services businesses that have automated 

data processing systems should integrate their compliance 

procedures with such systems.

(iii) A person that is a money services business solely 

because it is an agent for another money services business 

as set forth in Sec. 103.41(a)(2), and the money services 

business for which it serves as agent, may by agreement 

allocate between them responsibility for development 

of policies, procedures, and internal controls required 

by this paragraph (d)(1). Each money services business 

shall remain solely responsible for implementation of the 

requirements set forth in this section, and nothing in this 

paragraph (d)(1) relieves any money services business 

from its obligation to establish and maintain an effective 

anti-money laundering program.

(2) Designate a person to assure day to day compliance 

with the program and this part. The responsibilities of such 

person shall include assuring that:

(i) The money services business properly files reports, 

and creates and retains records, in accordance with 

applicable requirements of this part;

(ii) The compliance program is updated as necessary 

to reflect current requirements of this part, and related 

guidance issued by the Department of the Treasury; and

(iii) The money services business provides appropriate 

training and education in accordance with paragraph (d) (3) 

of this section.

(3) Provide education and/or training of appropriate 

personnel concerning their responsibilities under the program, 

including training in the detection of suspicious transactions 

to the extent that the money services business is required to 

report such transactions under this part.

(4) Provide for independent review to monitor and maintain 

an adequate program. The scope and frequency of the review 

shall be commensurate with the risk of the financial services 

provided by the money services business. Such review may 

be conducted by an officer or employee of the money services 
Money Laundering Statutes • 143

31 C.F.R. § 103.176

business so long as the reviewer is not the person designated 

in paragraph (d)(2) of this section.

(e) Effective date. A money services business must develop and 

implement an anti-money laundering program that complies 

with the requirements of this section on or before the later of 

July 24, 2002, and the end of the 90-day period beginning on 

the day following the date the business is established.

31 C.F.R. § 103.176. Due diligence programs 

for correspondent accounts for foreign 

financial institutions.

(a) In general. A covered financial institution shall establish a 

due diligence program that includes appropriate, specific, riskbased, and, where necessary, enhanced policies, procedures, 

and controls that are reasonably designed to enable the 

covered financial institution to detect and report, on an 

ongoing basis, any known or suspected money laundering 

activity conducted through or involving any correspondent 

account established, maintained, administered, or managed 

by such covered financial institution in the United States for 

a foreign financial institution. The due diligence program 

required by this section shall be a part of the anti-money 

laundering program otherwise required by this subpart. Such 

policies, procedures, and controls shall include:

(1) Determining whether any such correspondent account 

is subject to paragraph (b) of this section;

(2) Assessing the money laundering risk presented by such 

correspondent account, based on a consideration of all relevant 

factors, which shall include, as appropriate:

(i) The nature of the foreign financial institution’s 

business and the markets it serves;

(ii) The type, purpose, and anticipated activity of such 

correspondent account;

(iii) The nature and duration of the covered financial 

institution’s relationship with the foreign financial 

institution (and any of its affiliates);

(iv) The anti-money laundering and supervisory regime 

of the jurisdiction that issued the charter or license to 

the foreign financial institution, and, to the extent that 

information regarding such jurisdiction is reasonably 

available, of the jurisdiction in which any company that is 

an owner of the foreign financial institution is incorporated 

or chartered; and

(v) Information known or reasonably available to the 

covered financial institution about the foreign financial 

institution’s anti-money laundering record; and

(3) Applying risk-based procedures and controls to each such 

correspondent account reasonably designed to detect and report 

known or suspected money laundering activity, including a 

periodic review of the correspondent account activity sufficient 

to determine consistency with information obtained about the 

type, purpose, and anticipated activity of the account.

(b) Enhanced due diligence for certain foreign banks. In the 

case of a correspondent account established, maintained, 

administered, or managed in the United States for a foreign 

bank described in paragraph (c) of this section, the due 

diligence program required by paragraph (a) of this section 

shall include enhanced due diligence procedures designed to 

ensure that the covered financial institution, at a minimum, 

takes reasonable steps to:

(1) Conduct enhanced scrutiny of such correspondent 

account to guard against money laundering and to identify and 

report any suspicious transactions in accordance with applicable 

law and regulation. This enhanced scrutiny shall reflect the risk 

assessment of the account and shall include, as appropriate:

(i) Obtaining and considering information relating to the 

foreign bank’s anti-money laundering program to assess 

the risk of money laundering presented by the foreign 

bank’s correspondent account;

(ii) Monitoring transactions to, from, or through the 

correspondent account in a manner reasonably designed 

to detect money laundering and suspicious activity; and

(iii)(A) Obtaining information from the foreign bank 

about the identity of any person with authority to direct 

transactions through any correspondent account that is a 

payable-through account, and the sources and beneficial 

owner of funds or other assets in the payable-through 

account.

(B) For purposes of paragraph (b)(1)(iii)(A) of 

this section, a payable-through account means a 

correspondent account maintained by a covered 

financial institution for a foreign bank by means of 

which the foreign bank permits its customers to engage, 

either directly or through a subaccount, in banking 

activities usual in connection with the business of 

banking in the United States.

(2) Determine whether the foreign bank for which the 

correspondent account is established or maintained in turn 

maintains correspondent accounts for other foreign banks 

that use the foreign correspondent account established or 

maintained by the covered financial institution and, if so, take 

reasonable steps to obtain information relevant to assess and 

mitigate money laundering risks associated with the foreign 

bank’s correspondent accounts for other foreign banks, 

including, as appropriate, the identity of those foreign banks.

(3)(i) Determine, for any correspondent account established 

or maintained for a foreign bank whose shares are not publicly 

traded, the identity of each owner of the foreign bank and the 

nature and extent of each owner’s ownership interest.
144 • Money Laundering Statutes

31 C.F.R. § 103.176 

(ii) For purposes of paragraph (b)(3)(i) of this section:

(A) Owner means any person who directly or 

indirectly owns, controls, or has the power to vote 10 

percent or more of any class of securities of a foreign 

bank. For purposes of this paragraph (b)(3)(ii)(A):

(1) Members of the same family shall be 

considered to be one person; and

(2) Same family has the meaning provided in 

Sec. 103.175(l)(2)(ii).

(B) Publicly traded means shares that are traded on 

an exchange or an organized over-the-counter market 

that is regulated by a foreign securities authority as 

defined in section 3(a)(50) of the Securities Exchange 

Act of 1934 (15 U.S.C. 78c(a)(50)).

(c) Foreign banks to be accorded enhanced due diligence. The 

due diligence procedures described in paragraph (b) of this 

section are required for any correspondent account maintained 

for a foreign bank that operates under:

(1) An offshore banking license;

(2) A banking license issued by a foreign country that 

has been designated as non-cooperative with international 

anti-money laundering principles or procedures by an 

intergovernmental group or organization of which the United 

States is a member and with which designation the U.S. 

representative to the group or organization concurs; or

(3) A banking license issued by a foreign country that 

has been designated by the Secretary as warranting special 

measures due to money laundering concerns.

(d) Special procedures when due diligence or enhanced due 

diligence cannot be performed. The due diligence program 

required by paragraphs (a) and (b) of this section shall include 

procedures to be followed in circumstances in which a covered 

financial institution cannot perform appropriate due diligence 

or enhanced due diligence with respect to a correspondent 

account, including when the covered financial institution 

should refuse to open the account, suspend transaction activity, 

file a suspicious activity report, or close the account.

(e) Applicability rules for general due diligence. The 

provisions of paragraph (a) of this section apply to covered 

financial institutions as follows:

(1) General rules—

(i) Correspondent accounts established on or after 

July 5, 2006. Effective July 5, 2006, the requirements 

of paragraph (a) of this section shall apply to each 

correspondent account established on or after that date.

(ii) Correspondent accounts established before July 5, 

2006. Effective October 2, 2006, the requirements 

of paragraph (a) of this section shall apply to each 

correspondent account established before July 5, 2006.

(2) Special rules for certain banks. Until the requirements 

of paragraph (a) of this section become applicable as set 

forth in paragraph (e)(1) of this section, the due diligence 

requirements of 31 U.S.C. 5318(i)(1) shall continue to 

apply to any covered financial institution listed in Sec. 

103.175(f) (1) (i) through (vi).

(3) Special rules for all other covered financial institutions. 

The due diligence requirements of 31 U.S.C 5318(i)(1) 

shall not apply to a covered financial institution listed in 

Sec. 103.175(f)(1)(vii) through (x) until the requirements of 

paragraph (a) of this section become applicable as set forth 

in paragraph (e)(1) of this section.

(f) Applicability rules for enhanced due diligence. The 

provisions of paragraph (b) of this section apply to covered 

financial institutions as follows:

(1) General rules—

(i) Correspondent accounts established on or after 

February 5, 2008. Effective February 5, 2008, the 

requirements of paragraph (b) of this section shall apply to 

each correspondent account established on or after such date.

(ii) Correspondent accounts established before February 

5, 2008. Effective May 5, 2008, the requirements 

of paragraph (b) of this section shall apply to each 

correspondent account established before February 5, 2008.

(2) Special rules for certain banks. Until the requirements 

of paragraph (b) of this section become applicable as set 

forth in paragraph (f)(1) of this section, the enhanced due 

diligence requirements of 31 U.S.C. 5318(i)(2) shall continue 

to apply to any covered financial institutions listed in Sec. 

103.175(f) (1) (i) through (vi).

(3) Special rules for all other covered financial institutions. 

The enhanced due diligence requirements of 31 U.S.C. 

5318(i) (2) shall not apply to a covered financial institution 

listed in Sec. 103.175(f)(1)(vii) through (x) until the 

requirements of paragraph (b) of this section become 

applicable, as set forth in paragraph (f)(1) of this section.

(g) Exemptions—

(1) Exempt financial institutions. Except as provided 

in this section, a financial institution defined in 31 U.S.C. 

5312(a)(2) or (c)(1), or Sec. 103.11(n) is exempt from the 

requirements of 31 U.S.C. 5318(i)(1) and (i)(2) pertaining to 

correspondent accounts.

(2) Other compliance obligations of financial institutions 

unaffected. Nothing in paragraph (g) of this section shall be 

construed to relieve a financial institution from its responsibility 

to comply with any other applicable requirement of law or 

regulation, including title 31, United States Code, and this part.
Money Laundering Statutes • 145

31 C.F.R. § 103.178

31 C.F.R. § 103.178. Due diligence programs 

for private banking accounts.

To be used for violations occurring before

March 1, 2011.

(a) In general. A covered financial institution shall maintain a 

due diligence program that includes policies, procedures, and 

controls that are reasonably designed to detect and report any 

known or suspected money laundering or suspicious activity 

conducted through or involving any private banking account 

that is established, maintained, administered, or managed in the 

United States by such financial institution. The due diligence 

program required by this section shall be a part of the antimoney laundering program otherwise required by this subpart.

(b) Minimum requirements. The due diligence program 

required by paragraph (a) of this section shall be designed 

to ensure, at a minimum, that the financial institution takes 

reasonable steps to:

(1) Ascertain the identity of all nominal and beneficial 

owners of a private banking account;

(2) Ascertain whether any person identified under 

paragraph (b)(1) of this section is a senior foreign political 

figure;

(3) Ascertain the source(s) of funds deposited into a private 

banking account and the purpose and expected use of the 

account; and

(4) Review the activity of the account to ensure that it is 

consistent with the information obtained about the client’s 

source of funds, and with the stated purpose and expected 

use of the account, as needed to guard against money 

laundering, and to report, in accordance with applicable law 

and regulation, any known or suspected money laundering or 

suspicious activity conducted to, from, or through a private 

banking account.

(c) Special requirements for senior foreign political figures.

(1) In the case of a private banking account for which a 

senior foreign political figure is a nominal or beneficial owner, 

the due diligence program required by paragraph (a) of this 

section shall include enhanced scrutiny of such account that 

is reasonably designed to detect and report transactions that 

may involve the proceeds of foreign corruption.

(2) For purposes of this paragraph (c), the term proceeds 

of foreign corruption means any asset or property that is 

acquired by, through, or on behalf of a senior foreign political 

figure through misappropriation, theft, or embezzlement of 

public funds, the unlawful conversion of property of a foreign 

government, or through acts of bribery or extortion, and shall 

include any other property into which any such assets have 

been transformed or converted.

(d) Special procedures when due diligence cannot be 

performed. The due diligence program required by paragraph 

(a) of this section shall include procedures to be followed 

in circumstances in which a covered financial institution 

cannot perform appropriate due diligence with respect to 

a private banking account, including when the covered 

financial institution should refuse to open the account, suspend 

transaction activity, file a suspicious activity report, or close 

the account.

(e) Applicability rules. The provisions of this section apply 

to covered financial institutions as follows:

(1) General rules—

(i) Private banking accounts established on or after 

July 5, 2006. Effective July 5, 2006, the requirements of 

this section shall apply to each private banking account 

established on or after such date.

(ii) Private banking accounts established before July 5, 

2006. Effective October 2, 2006, the requirements of 

this section shall apply to each private banking account 

established before July 5, 2006.

(2) Special rules for certain banks and for brokers or dealers 

in securities, futures commission merchants, and introducing 

brokers. Until the requirements of this section become 

applicable as set forth in paragraph (e)(1) of this section, the 

requirements of 31 U.S.C. 5318(i)(3) shall continue to apply 

to a covered financial institution listed in Sec. 103.175(f) (1) (i) 

through (vi), (viii), or (ix).

(3) Special rules for federally regulated trust banks or trust 

companies, and mutual funds. Until the requirements of this 

section become applicable as set forth in paragraph (e) (1) of 

this section, the requirements of 31 U.S.C. 5318(i) (3) shall 

not apply to a covered financial institution listed in Sec. 

103.175(f)(1)(vii), or (x).

(4) Exemptions—

(i) Exempt financial institutions. Except as provided 

in this section, a financial institution defined in 31 U.S.C. 

5312(a)(2) or (c)(1) or Sec. 103.11(n) is exempt from the 

requirements of 31 U.S.C. 5318(i)(3) pertaining to private 

banking accounts.

(ii) Other compliance obligations of financial institutions 

unaffected. Nothing in paragraph (e)(4) of this section 

shall be construed to relieve a financial institution from 

its responsibility to comply with any other applicable 

requirement of law or regulation, including title 31, United 

States Code, and this part.

Appendix A—Specified Unlawful Activity (SUAs) 

that apply to money laundering

The following Table lists all of those violations of federal and state or foreign law identified as 

“specified unlawful activity” under 18 U.S.C. § 1956(c)(7):

SPECIFIED UNLAWFUL ACTIVITY1

18 U.S.C. § 1956 and § 1957

[Money Laundering Control Act of 1986 as amended]

Title: Section: Violations of Federal Law Relating to: Appearing in

Title 18, §:

Effective 

Date:

7 2024 Food Stamp Program

(felony violations involving a quantity of coupons 

having a value of not less than $5,000)

1956(c)(7)(D) 10/28/94

8 1324 Immigration and Nationality

(bringing in and harboring certain aliens)

1961(1)(F) 4/24/96

8 1327 Immigration and Nationality

(aiding or assisting certain aliens to enter)

1961(1)(F) 4/24/96

8 1328 Immigration and Nationality

(importation of alien for immoral purpose)

1961(1)(F) 4/24/96

11 101

et seq.

Bankruptcy

(any offense involving fraud connected with a case 

under Title 11 including 18 U.S.C. §§ 153-156)

1961(1)(D) 10/27/86

15 78m

78dd-1

78dd-2

78ff

Foreign Corrupt Practices Act

(felony violations of the Foreign Corrupt Practices Act)

1956(c)(7)(D) 10/28/92

18 32 Aircraft and Motor Vehicles

(destruction of aircraft or aircraft facilities)

1956(c)(7)(D)

1961(1)(G)

4/24/96

10/26/01

18 37 Aircraft and Motor Vehicles

(violence at international airports)

1956(c)(7)(D)

1961(1)(G)

4/24/96

10/26/01

18 81 Arson

(arson within special maritime and territorial jurisdiction)

1961(1)(G) 10/26/01

18 115 Assault

(influencing, impeding, or retaliating against a Federal 

official by threatening or injuring a family member)

1956(c)(7)(D) 4/24/96

1

 Also included, but not listed in the chart above, are any offenses involving fraud in the sale of securities (18 U.S.C. § 1961(1)(D)).
2 • Specified Unlawful Activity Table

Title 18, Section 152

Title: Section: Violations of Federal Law Relating to: Appearing in

Title 18, §:

Effective 

Date:

18 152 Bankruptcy

(concealment of assets; false oaths and claims; bribery)

1956(c)(7)(D) 10/27/86

18 175

175b

Biological Weapons

(prohibitions with respect to biological weapons)

1956(1)(G)

1956(1)(B)

10/26/01

12/17/04

18 175c Biological Weapons

(variola virus)

1956(c)(7)(D)

1961(1)(B)

1961(1)(G)

12/17/04

12/17/04

12/17/04

18 201 Bribery, Graft and Conflicts of Interest

(bribery of public officials and witnesses)

1961(1)(B) 10/27/86

18 215 Bribery, Graft and Conflicts of Interest

(receipt of commissions or gifts for procuring loans)

1956(c)(7)(D) 10/27/86

18 224 Bribery, Graft and Conflicts of Interest

(bribery in sporting contests)

1961(1)(B) 10/27/86

18 229 Chemical Weapons

(prohibitions with respect to chemical weapons)

1956(1)(G)

1956(1)(B)

10/26/01

12/17/04

18 287 False, Fictitious, or Fraudulent Claims Involving Health 

Care Programs

1956(c)(7)(F);

See: 24(a)(2)

8/21/96

18 351(a),

(b), (c), 

or (d)

Congressional, Cabinet, and Supreme Court 

Assassination, Kidnapping, and Assault

(Congressional, Cabinet, and Supreme Court 

assassination and assault; penalties)

1956(c)(7)(D)

1961(1)(G)

4/24/96

10/26/01

18 371 Conspiracy to Commit Offense or to Defraud Involving 

Health Care Programs

1956(c)(7)(F);

See: 24(a)(2)

8/21/96

18 471 Counterfeiting and Forgery

(obligations or securities of the United States)

1961(1)(B) 10/27/86

18 472 Counterfeiting and Forgery

(uttering counterfeit obligations or securities)

1961(1)(B) 10/27/86

18 473 Counterfeiting and Forgery

(dealing in counterfeit obligations or securities)

1961(1)(B) 10/27/86

18 500 Counterfeiting and Forgery

(money orders)

1956(c)(7)(D) 10/27/86

18 501 Counterfeiting and Forgery

(postage stamps, postage meter stamps, and postal cards)

1956(c)(7)(D) 10/27/86
Specified Unlawful Activity Table • 3

Title 18, Section 664

Title: Section: Violations of Federal Law Relating to: Appearing in

Title 18, §:

Effective 

Date:

18 502 Counterfeiting and Forgery

(postage and revenue stamps of foreign governments)

1956(c)(7)(D) 10/27/86

18 503 Counterfeiting and Forgery

(postmarking stamps)

1956(c)(7)(D) 10/27/86

18 513 Counterfeiting and Forgery

(securities of the States and private entities)

1956(c)(7)(D) 10/27/86

18 541 Customs

(goods falsely classified)

1956(c)(7)(D) 10/26/01

18 542 Customs

(entry of goods by means of false statements)

1965(c)(7)(D) 11/18/88

18 545 Customs

(smuggling goods into the United States)

1956(c)(7)(D) 10/27/86

18 549 Customs

(removing goods from Customs’ custody, breaking seals)

1956(c)(7)(D) 11/18/88

18 554 Customs

(smuggling goods from the United States)

1956(c)(7)(D) 3/9/06

18 555 Customs

(border tunnels and passages)

1956(c)(7)(D) 5/20/09

18 641 Embezzlement and Theft

(public money, property or records)

1956(c)(7)(D) 10/27/86

18 656 Embezzlement and Theft

(theft, embezzlement, or misapplication by bank officer 

or employee)

1956(c)(7)(D) 10/27/86

18 657 Embezzlement and Theft

(lending, credit, and insurance institutions)

1956(c)(7)(D) 11/18/88

18 658 Embezzlement and Theft

(property mortgaged or pledged to farm credit agencies)

1956(c)(7)(D) 11/18/88

18 659 Embezzlement and Theft

(felonious theft from interstate shipment)

1961(1)(B) 10/27/86

18 664 Embezzlement and Theft

(theft or embezzlement from pension and welfare funds)

- and - 

Involving a Health Care Offense

1961(1)(B)

1956(c)(7)(F);

See: 24(a)(2)

10/27/89

8/21/96
4 • Specified Unlawful Activity Table

Title 18, Section 666

Title: Section: Violations of Federal Law Relating to: Appearing in

Title 18, §:

Effective 

Date:

18 666 Embezzlement and Theft

(theft or bribery concerning programs receiving Federal 

funds)

- and - 

Involving a Health Care Offense

1956(c)(7)(D)

1956(c)(7)(F);

See: 24(a)(2)

10/27/86

8/21/96

18 669 Theft and Embezzlement

involving Heath Care Offenses

1956(c)(7)(F);

See: 24(a)(1)

8/21/96

18 793 Espionage and Censorship

(gathering, transmitting, or losing defense information)

1956(c)(7)(D) 10/27/86

18 794 Espionage and Censorship

(gathering or delivering defense information to aid 

foreign government)

1956(c)(7)(D) 10/27/86

18 798 Espionage and Censorship

(disclosure of classified information)

1956(c)(7)(D) 10/27/86

18 831 Explosives and Other Dangerous Articles

(prohibited transactions involving nuclear materials)

1956(c)(7)(D)

1961(1)(G)

1961(1)(B)

4/24/96

10/26/01

12/17/04

18 832 Explosives and Other Dangerous Articles

(participation in nuclear and weapons of mass 

destruction threats to the United States)

1961(1)(G) 12/17/04

18 842(m)

or (n)

Explosive Materials

(plastic explosives)

1961(1)(G) 10/26/01

18 844(f)

844(i)

Importation, Manufacture, Distribution and Storage of 

Explosive Materials

(damage or destruction by means of fire or explosives 

of Government property or property used in interstate 

commerce risking or causing death)

1956(c)(7)(D)

1961(1)(G)

4/24/96

10/26/01

18 875 Extortion and Threats

(interstate communications)

1956(c)(7)(D) 10/27/86

18 892 Extortionate Credit Transactions

(making extortionate extensions of credit)

1961(1)(B) 10/27/86

18 893 Extortionate Credit Transactions

(financing extortionate extensions of credit)

1961(1)(B) 10/27/86

18 894 Extortionate Credit Transactions

(collection of extensions of credit by extortionate means)

1961(1)(B) 10/27/86
Specified Unlawful Activity Table • 5

Title 18, Section 1030

Title: Section: Violations of Federal Law Relating to: Appearing in

Title 18, §:

Effective 

Date:

18 922(l) Firearms

(unlawful importation of firearms)

1956(c)(7)(D) 10/26/01

18 924(n) Firearms

(firearms trafficking)

1956(c)(7)(D) 10/26/01

18 930(c) Firearms

(killing or attempted killing during attack on Federal 

facility with a dangerous weapon)

1961(1)(G) 10/26/01

18 956 Foreign Relations

(conspiracy to kill, kidnap, maim, or injure persons or 

damage property in a foreign country)

1956(c)(7)(D) 4/24/96

18 956(a)(1) Foreign Relations

(conspiracy to murder, kidnap, or maim persons abroad)

1961(1)(G) 10/26/01

18 1001 Fraud and False Statements

involving a Health Care Offense

1956(c)(7)(F);

See: 24(a)(2)

8/21/96

18 1005 Fraud and False Statements

(fraudulent bank entries, reports and transactions)

1956(c)(7)(D) 11/29/90

18 1006 Fraud and False Statements

(fraudulent Federal credit institution entries, reports and 

transactions)

1956(c)(7)(D) 11/29/90

18 1007 Fraud and False Statements

(fraudulent Federal Deposit Insurance Corporation 

transactions)

1956(c)(7)(D) 11/29/90

18 1014 Fraud and False Statements

(fraudulent loan and credit applications)

1956(c)(7)(D) 11/29/90

18 1027 False statement/ERISA

involving Health Care Offenses

1956(c)(7)(F);

See: 24(a)(2)

8/21/96

18 1028 Fraud and False Statements

(fraud and related activity in connection with 

identification documents)

1961(1)(B) 4/24/96

18 1029 Fraud and False Statements

(fraud and related activity in connection with access 

devices)

1961(1)(B) 11/18/88

18 1030 Fraud and False Statements

(computer fraud and abuse; protection of computers)

1956(c)(7)(D)

1961(1)(G)

10/26/01
6 • Specified Unlawful Activity Table

Title 18, Section 1032

Title: Section: Violations of Federal Law Relating to: Appearing in

Title 18, §:

Effective 

Date:

18 1032 Fraud and False Statements

(concealment of assets from conservator, receiver, or 

liquidating agent of financial institution)

1956(c)(7)(D) 11/29/90

18 1035 False Statements regarding Health Care Offenses 1956(c)(7)(F);

See: 24(a)(1)

8/21/96

18 1084 Gambling

(transmission of wagering information)

1961(1)(B) 10/27/86

18 1111 Homicide

(murder)

1956(c)(7)(D) 4/24/96

18 1114 Homicide

(protection of officers and employees of the United States)

1956(c)(7)(D)

1961(1)(G)

4/24/96

10/26/01

18 1116 Homicide

(murder or manslaughter of foreign officials, official 

guests, or internationally protected persons)

1956(c)(7)(D)

1961(1)(G)

4/24/96

10/26/01

18 1201 Kidnapping 1956(c)(7)(D) 10/27/86

18 1203 Kidnapping

(hostage taking)

1956(c)(7)(D)

1961(1)(G)

10/27/86

10/26/01

18 1341 Mail Fraud

(frauds and swindles)

- and - 

Involving a Health Care Offense

1961(1)(B)

1956(c)(7)(F);

See: 24(a)(2)

10/27/86

8/21/96

18 1343 Wire Fraud

(fraud by wire, radio, or television)

- and - 

Involving a Health Care Offense

1961(1)(B)

1956(c)(7)(F);

See: 24(a)(2)

10/27/86

8/21/96

18 1344 Bank Fraud

(defrauding a federally chartered or insured financial 

institution)

1961(1)(B) 8/9/89

18 1347 Health Care Fraud 1956(c)(7)(F);

See: 24(a)(1)

8/21/96

18 1349 Attempt and Conspiracy

(Health Care Fraud)

1956(c)(7)(F);

See: 24(a)(2)

3/23/10

18 1351 Fraud in Foreign Labor Contracts

(Fraud in Hiring Outside of the U.S.)

1961(1)(B) 3/7/13
Specified Unlawful Activity Table • 7

Title 18, Section 1512

Title: Section: Violations of Federal Law Relating to: Appearing in

Title 18, §:

Effective 

Date:

18 1361 Malicious Mischief

(Government property or contracts)

1956(c)(7)(D)

1961(1)(G)

4/24/96

10/26/01

18 1362 Malicious Mischief

(destruction of communication lines, stations, or systems)

1961(1)(G) 10/26/01

18 1363 Malicious Mischief

(damage or destruction of buildings or property within 

special maritime and territorial jurisdiction of the 

United States)

1956(c)(7)(D)

1961(1)(G)

4/24/96

10/26/01

18 1366(a) Malicious Mischief

(destruction of an energy facility)

1961(1)(G) 10/26/01

18 1425 Nationality and Citizenship

(unlawful procurement of citizenship or naturalization)

1961(1)(B) 9/30/96

18 1426 Nationality and Citizenship

(reproduction of naturalization or citizenship papers)

1961(1)(B) 9/30/96

18 1427 Nationality and Citizenship

(sale of naturalization or citizenship papers)

1961(1)(B) 9/30/96

18 1461 Obscenity

(mailing obscene or crime-inciting matter)

1961(1)(B) 10/27/86

18 1462 Obscenity

(importation or transportation of obscene matters)

1961(1)(B) 10/27/86

18 1463 Obscenity

(mailing indecent matter on wrappers or envelopes)

1961(1)(B) 10/27/86

18 1464 Obscenity

(broadcasting obscene language)

1961(1)(B) 10/27/86

18 1465 Obscenity

(transportation of obscene matters for sale or 

distribution)

1961(1)(B) 10/27/86

18 1503 Obstruction of Justice

(influencing or injuring officer or juror generally)

1961(1)(B) 10/27/86

18 1510 Obstruction of Justice

(obstruction of criminal investigations)

1961(1)(B) 10/27/86

18 1511 Obstruction of Justice

(obstruction of State or local law enforcement)

1961(1)(B) 10/27/86

18 1512 Obstruction of Justice

(tampering with a witness, victim, or informant)

1961(1)(B) 11/10/86
8 • Specified Unlawful Activity Table

Title 18, Section 1513

Title: Section: Violations of Federal Law Relating to: Appearing in

Title 18, §:

Effective 

Date:

18 1513 Obstruction of Justice

(retaliating against a witness, victim, or informant)

1961(1)(B) 11/10/86

18 1518 Obstruction of Justice

(obstruction of criminal investigations regarding a 

Health Care Offense)

1956(c)(7)(F);

See: 24(a)(1)

8/21/96

18 1542 Passports and Visas

(false statement in application and use of a passport)

1961(1)(B) 4/24/96

18 1543 Passports and Visas

(forgery or false use of passport)

1961(1)(B) 4/24/96

18 1544 Passports and Visas

(misuse of a passport)

1961(1)(B) 4/24/96

18 1546 Passports and Visas

(fraud and misuse of visas, permits, and other 

documents)

1961(1)(B) 4/24/96

18 1581 Peonage and Slavery

(peonage; obstructing enforcement)

1961(1)(B) 4/24/96

18 1582 Peonage and Slavery

(vessels for slave trade)

1961(1)(B) 4/24/96

18 1583 Peonage and Slavery

(enticement into slavery)

1961(1)(B) 4/24/96

18 1584 Peonage and Slavery

(sale into involuntary servitude)

1961(1)(B) 4/24/96

18 1585 Peonage and Slavery

(seizure, detention, transportation or sale of slaves)

1961(1)(B) 4/24/96

18 1586 Peonage and Slavery

(service on vessels in slave trade)

1961(1)(B) 4/24/96

18 1587 Peonage and Slavery

(possession of slaves aboard a vessel)

1961(1)(B) 4/24/96

18 1588 Peonage and Slavery

(transportation of slaves from the United States)

1961(1)(B) 4/24/96

18 1589 Peonage and Slavery

(forced labor)

1961(1)(B) 12/19/03

18 1590 Peonage and Slavery

(trafficking with respect to peonage, slavery, 

involuntary servitude, or forced labor)

1961(1)(B) 12/19/03
Specified Unlawful Activity Table • 9

Title 18, Section 1960

Title: Section: Violations of Federal Law Relating to: Appearing in

Title 18, §:

Effective 

Date:

18 1591 Peonage and Slavery

(sex trafficking of children or by force, fraud, or 

coercion)

1961(1)(B) 12/19/03

18 1592 Peonage and Slavery

(unlawful conduct with respect to documents in 

furtherance of trafficking, peonage, slavery, involuntary 

servitude, or forced labor)

1961(1)(B) 1/10/06

18 1708 Theft from the Mail 1956(c)(7)(D) 10/28/92

18 1751 Presidential and Presidential Staff Assassination, 

Kidnapping, and Assault

1956(c)(7)(D)

1961(1)(G)

4/24/96

10/26/01

18 1951 Racketeering

(interference with commerce by threats or violence)

1961(1)(B) 10/27/86

18 1952 Racketeering

(interstate and foreign travel or transportation in aid of 

racketeering enterprises)

1961(1)(B) 10/27/86

18 1953 Racketeering

(interstate transportation of wagering paraphernalia)

1961(1)(B) 10/27/86

18 1954 Racketeering

(offer, acceptance, or solicitation to influence operations 

of employee benefit plan)

- and - 

Involving a Health Care Offense

1961(1)(B)

1956(c)(7)(F);

See: 24(a)(2)

10/27/86

8/21/96

18 1955 Racketeering

(prohibition of illegal gambling businesses)

1961(1)(B) 10/27/86

18 1956 Racketeering

(laundering of monetary instruments)

1961(1)(B) 10/27/86

18 1957 Racketeering

(engaging in monetary transactions in property derived 

from specified unlawful activity)

1961(1)(B) 10/27/86

18 1958 Racketeering

(use of interstate commerce facilities in the commission 

of murder-for-hire)

1961(1)(B) 11/18/88

18 1960 Racketeering

(money transmitting business)

1961(1)(B) 3/9/06
10 • Specified Unlawful Activity Table

Title 18, Section 1992

Title: Section: Violations of Federal Law Relating to: Appearing in

Title 18, §:

Effective 

Date:

18 1992 Railroads

(terrorist attacks and other acts of violence against 

railroad carriers and against mass transportation systems 

on land, on water, or through the air)

1961(1)(G) 10/26/01

18 2113 Robbery and Burglary

(bank robbery and incidental crimes)

1956(c)(7)(D) 10/27/86

18 2114 Robbery and Burglary

(mail, money, or other property of the United States)

1956(c)(7)(D) 10/27/86

18 2155 Sabotage

(destruction of national defense materials, premises, or 

utilities)

1961(1)(G) 10/26/01

18 2156 Sabotage

(production of defective national defense material, 

premises, or utilities)

1961(1)(G) 12/17/04

18 2251 Sexual Exploitation and Other Abuse of Children

(sexual exploitation of children)

1961(1)(B) 11/18/88

18 2251A Sexual Exploitation and Other Abuse of Children

(selling or buying of children)

1961(1)(B) 11/18/88

18 2252 Sexual Exploitation and Other Abuse of Children

(certain activities relating to material involving the 

sexual exploitation of minors)

1961(1)(B) 11/18/88

18 2252A Sexual Exploitation and Other Abuse of Children

(certain activities relating to material constituting or 

containing child pornography)

1956(c)(7)(D) 10/22/08

18 2260 Sexual Exploitation and Other Abuse of Children

(production of sexually explicit depictions of a minor 

for importation into the United States)

1961(1)(B)

1956(c)(7)(D)

9/13/96

18 2280 Shipping

(violence against maritime navigation)

1956(c)(7)(D)

1961(1)(G)

4/24/96

10/26/01

18 2281 Shipping

(violence against maritime fixed platforms)

1956(c)(7)(D)

1961(1)(G)

4/24/96

10/26/01

18 2312 Stolen Property

(interstate transportation of stolen motor vehicles)

1961(1)(B) 10/27/86

18 2313 Stolen Property

(sale or receipt of stolen motor vehicles)

1961(1)(B) 10/27/86
Specified Unlawful Activity Table • 11

Title 18, Section 2339

Title: Section: Violations of Federal Law Relating to: Appearing in

Title 18, §:

Effective 

Date:

18 2314 Stolen Property

(interstate transportation of stolen property)

1961(1)(B) 10/27/86

18 2315 Stolen Property

(sale, receipt, or possession of stolen property moved 

interstate)

1961(1)(B) 10/27/86

18 2318 Stolen Property

(trafficking in counterfeit labels for phonorecords, 

computer programs or computer program 

documentation or packaging and copies of motion 

pictures or other audio visual works)

1961(1)(B) 7/2/96

18 2319 Stolen Property

(criminal infringement of a copyright)

1956(c)(7)(D)

1961(1)(B)

11/18/88

7/2/96

18 2319A Stolen Property

(unauthorized fixation of and trafficking in sound 

recordings and music videos of live musical performances)

1961(1)(B) 7/2/96

18 2320 Stolen Property

(trafficking in counterfeit goods or services)

1956(c)(7)(D)

1961(1)(B)

9/13/94

7/2/96

18 2321 Stolen Property

(trafficking in certain motor vehicles or motor vehicle parts)

1961(1)(B) 10/27/86

18 2332 Terrorism

(terrorist acts abroad against U.S. Nationals)

1956(c)(7)(D)

1961(1)(G)

4/24/96

10/26/01

18 2332a Terrorism

(use of weapons of mass destruction)

1956(c)(7)(D)

1961(1)(G)

4/24/96

10/26/01

18 2332b Terrorism

(international terrorist acts transcending national 

boundaries)

1956(c)(7)(D)

1961(1)(G)

4/24/96

10/26/01

18 2332f Terrorism

(bombing of public places and facilities)

1961(1)(G) 6/25/02

18 2332g Terrorism

(missile systems designed to destroy aircraft)

1956(c)(7)(D)

1961(1)(G)

12/17/04

12/17/04

18 2332h Terrorism

(radiological dispersal devices)

1956(c)(7)(D)

1961(1)(G)

12/17/04

12/17/04

18 2339 Terrorism

(harboring terrorists)

1961(1)(G) 10/26/01
12 • Specified Unlawful Activity Table

Title 18, Section 2339A 2339B

Title: Section: Violations of Federal Law Relating to: Appearing in

Title 18, §:

Effective 

Date:

18 2339A

2339B

Terrorism

(providing material support to terrorists or terrorist 

organizations)

1956(c)(7)(D)

1961(1)(G)

4/24/96

10/26/01

18 2339C Terrorism

(financing of terrorism)

1956(c)(7)(D)

1961(1)(G)

3/9/06

6/25/02

18 2339D Terrorism

(military-type training from a foreign terrorist organization)

1956(c)(7)(D)

1961(1)(G)

3/9/06

18 2340A Torture 1961(1)(G) 10/26/01

18 2342 Trafficking in Contraband Cigarettes

(unlawful acts)

1961(1)(B) 10/27/86

18 2343 Trafficking in Contraband Cigarettes

(recordkeeping and inspection)

1961(1)(B) 10/27/86

18 2344 Trafficking in Contraband Cigarettes

(penalties)

1961(1)(B) 10/27/86

18 2345 Trafficking in Contraband Cigarettes

(effect on State law)

1961(1)(B) 10/27/86

18 2346 Trafficking in Contraband Cigarettes

(enforcement and regulations)

1961(1)(B) 10/27/86

18 2421 Transportation for Illegal Sexual Activity

(transportation of an individual interstate to engage in 

criminal sexual activity)

1961(1)(B) 10/27/86

18 2422 Transportation for Illegal Sexual Activity

(coercion and enticement to travel interstate to engage 

in criminal sexual activity)

1961(1)(B) 10/27/86

18 2423 Transportation for Illegal Sexual Activity

(transportation of minors interstate to engage in 

criminal sexual activity)

1961(1)(B) 10/27/86

18 2424 Transportation for Illegal Sexual Activity

(filing factual statements about alien individuals)

1961(1)(B) 10/27/86

19 1590 Tariff Act of 1930

(aviation smuggling)

1956(c)(7)(D) 11/18/88

21 331 Federal Food, Drug, and Cosmetic Act

(adulterated or misbranded food, drug, device, or 

cosmetic in interstate commerce)

1956(c)(7)(F);

See: 24(a)(2)

3/23/10
Specified Unlawful Activity Table • 13

Title 21, Section 864

Title: Section: Violations of Federal Law Relating to: Appearing in

Title 18, §:

Effective 

Date:

21 841 Drug Abuse Prevention and Control

(felony violations of certain prohibited acts)

1961(1)(D)

1956(c)(7)(D)

10/27/86

11/29/90

21 842 Drug Abuse Prevention and Control

(subsequent violations of subparagraph (A) after one or 

more prior convictions of a drug-related offense)

1961(1)(D)

1956(c)(7)(D)

10/27/86

11/29/90

21 843 Drug Abuse Prevention and Control

(felony violations of certain other prohibited acts)

1961(1)(D)

1956(c)(7)(D)

10/27/86

11/29/90

21 844 Drug Abuse Prevention and Control

(penalties for simple possession after one or more prior 

convictions for any drug or narcotic offense)

1961(1)(D) 10/27/86

21 846 Drug Abuse Prevention and Control

(attempt and conspiracy to commit any felonious 

offense defined in Subchapter I)

1961(1)(D) 10/27/86

21 848 Drug Abuse Prevention and Control

(continuing criminal enterprise)

1956(c)(7)(C) 

1961(1)(D)

10/27/86

10/27/86

21 849 Drug Abuse Prevention and Control

(transportation safety offenses)

1961(1)(D) 10/27/86

21 854 Drug Abuse Prevention and Control

(investment of illicit drug profits obtained from a 

felonious violation of either Subchapter I or II)

1961(1)(D) 10/27/86

21 856 Drug Abuse Prevention and Control

(establishment of manufacturing operations)

1961(1)(D) 10/27/86

21 858 Drug Abuse Prevention and Control

(endangering human life while illegally manufacturing 

a controlled substance)

1961(1)(D) 10/27/86

21 859 Drug Abuse Prevention and Control

(felonious distribution to persons under age twenty-one)

1961(1)(D) 10/27/86

21 860 Drug Abuse Prevention and Control

(felonious distribution or manufacturing in or near 

schools and colleges)

1961(1)(D) 10/27/86

21 861 Drug Abuse Prevention and Control

(employment of persons under 18 years of age)

1961(1)(D) 10/27/86

21 863 Drug Abuse Prevention and Control

(transportation of drug paraphernalia)

1961(1)(D)

1956(c)(7)(D)

10/27/86

11/18/88

21 864 Drug Abuse Prevention and Control

(stolen anhydrous ammonia)

1961(1)(D) 10/27/86
14 • Specified Unlawful Activity Table

Title 21, Section 952

Title: Section: Violations of Federal Law Relating to: Appearing in

Title 18, §:

Effective 

Date:

21 952 Drug Abuse Prevention and Control

(importation of controlled substances)

1961(1)(D) 10/27/86

21 953 Drug Abuse Prevention and Control

(exportation of controlled substances)

1961(1)(D) 10/27/86

21 955 Drug Abuse Prevention and Control

(felonious possession on board vessels, etc., arriving in 

or departing from the United States)

1961(1)(D) 10/27/86

21 957 Drug Abuse Prevention and Control

(felonious offenses by persons required to register)

1961(1)(D) 10/27/86

21 959 Drug Abuse Prevention and Control

(felonious possession, manufacture, or distribution of a 

controlled substance)

1961(1)(D) 10/27/86

21 960 Drug Abuse Prevention and Control

(knowingly or intentionally imports/exports; brings/

possesses on board a vessel, aircraft or vehicle; or 

manufacture, possesses with intent to distribute, or 

distributes a controlled substance)

1961(1)(D) 10/27/86

21 960a Drug Abuse Prevention and Control

(foreign terrorist organizations, terrorist persons and 

groups; narco-terrorism)

1961(1)(D)

1961(1)(G)

3/9/06

21 962 Drug Abuse Prevention and Control

(second or subsequent offenses penalties defined)

1961(1)(D) 10/27/86

21 963 Drug Abuse Prevention and Control

(attempt and conspiracy)

1961(1)(D) 10/27/86

22 611

et seq.

Foreign Agents Registration Act of 1938

(felonious violations of FARA of 1938)

1956(c)(7)(D) 10/26/01

22 2778(c) Arms Export Control

(criminal violations of Arms Export Control Act of 1979)

1956(c)(7)(D) 10/27/86

29 186 Labor-Management Relations

(restrictions on payments and loans to labor organizations)

1961(1)(C) 10/27/86

29 501(c) Reporting and Disclosure

(fiduciary responsibility of officers of labor 

organizations; embezzlement of assets)

1961(1)(C) 10/27/86

29 1141 Employee Retirement Income Security Act of 1974

(coercive interference of participant/beneficiary)

1956(c)(7)(F);

See: 24(a)(2)

3/23/10

29 1148 Employee Retirement Income Security Act of 1974

(disasters and terroristic or military actions)

1956(c)(7)(F);

See: 24(a)(2)

3/23/10
Specified Unlawful Activity Table • 15

Title 49, Section 46506

Title: Section: Violations of Federal Law Relating to: Appearing in

Title 18, §:

Effective 

Date:

33 1251

et seq.

Federal Water Pollution Control Act

(felonious violations concerning the discharge of 

pollutants into the Nation’s waters)

1956(c)(7)(E) 11/29/90

33 1401

et seq.

Ocean Dumping Act

(felony violations concerning the dumping of materials 

into ocean waters)

1956(c)(7)(E) 11/29/90

33 1901

et seq.

Act to Prevent Pollution from Ships

(felony violations concerning the discharge of pollutants 

from ships)

1956(c)(7)(E) 11/29/90

42 1320a-7b Social Security Act

(false statements, illegal remunerations, illegal patient 

admittance and retention practices)

1956(c)(7)(F);

See: 24(a)(1)

3/23/10

42 1490s(a) Housing Act of 1949

(equity skimming)

1956(c)(7)(D) 12/27/00

42 2122

(Sec. 92)

Atomic Energy Act of 1954

(prohibitions governing atomic weapons)

1956(c)(7)(D)

1961(1)(G)

12/17/04

12/17/04

42 2284

(Sec.236)

Atomic Energy Act of 1954

(sabotage of nuclear facilities or fuel)

1961(1)(G) 10/26/01

42 300f

et seq.

Safe Drinking Water Act

(felony violations concerning the safety of public water 

systems)

1956(c)(7)(E) 11/29/90

42 6901

et seq.

Resources Conservation and Recovery Act

(felony violations concerning resource conservation and 

recovery)

1956(c)(7)(E) 11/29/90

49 46502 Special Aircraft Jurisdiction of the United States

(aircraft piracy)

1956(c)(7)(D)

1961(1)(G)

4/24/96

10/26/01

49 46504

(2nd

sentence)

Special Aircraft Jurisdiction of the United States

(assault on a flight crew with a dangerous weapon)

1961(1)(G) 10/26/01

49 46505

(b)(3)

or (c) 

Special Aircraft Jurisdiction of the United States

(explosive or incendiary devices, or endangerment of 

human life by means of weapons, on an aircraft)

1961(1)(G) 10/26/01

49 46506 Special Aircraft Jurisdiction of the United States

(application of certain criminal laws to acts on aircraft if 

homicide or attempted homicide is involved)

1961(1)(G) 10/26/01
16 • Specified Unlawful Activity Table

Title 49, Section 60123(b)

Title: Section: Violations of Federal Law Relating to: Appearing in

Title 18, §:

Effective 

Date:

49 60123(b) Safety

(destruction of interstate gas or hazardous liquid 

pipeline facility)

1961(1)(G) 10/26/01

50 1705 Emergency Economic Powers

(willful violations of the International Emergency 

Economic Powers Act)

1956(c)(7)(D) 10/27/86

50 App. 16 Trading with Enemy Act

(offenses and punishment)

1956(c)(7)(D) 10/27/86

50 App.

2410

Export Regulation

(knowingly violating the provisions of the Export 

Administration Act of 1979)

1956(c)(7)(D) 10/27/86
Specified Unlawful Activity Table • 17

Any Act of Threat (chargeable under State Law and punishable by 

imprisonment for more than one year) Involving:

Appearing in

18 U.S.C., 

Section:

Effective 

Date:

Murder 1961(1)(A) 10/27/86

Kidnapping 1961(1)(A) 10/27/86

Gambling 1961(1)(A) 10/27/86

Arson 1961(1)(A) 10/27/86

Robbery 1961(1)(A) 10/27/86

Bribery 1961(1)(A) 10/27/86

Extortion 1961(1)(A) 10/27/86

Dealing in Obscene Matter 1961(1)(A) 10/27/86

Dealing in a Controlled Substance or Listed Chemical

(as defined in 21 U.S.C. §802)

1961(1)(A) 10/27/86
18 • Specified Unlawful Activity Table

An Offense Against a Foreign Nation (with respect to a financial 

transaction occurring in whole or in part in the United States) 

Involving:

Appearing in

18 U.S.C., Section:

Effective 

Date

The Manufacture, Importation, Sale, or Distribution of a Controlled Substance 1956(c)(7)(B)(i) 10/27/86

Murder 1956(c)(7)(B)(ii) 4/24/96

Kidnapping 1956(c)(7)(B)(ii) 10/28/92

Robbery 1956(c)(7)(B)(ii) 10/28/92

Extortion 1956(c)(7)(B)(ii) 10/28/92

Destruction of Property by Means of Explosive or Fire or a Crime of Violence

(as defined in 18 U.S.C. §16)

1956(c)(7)(B)(ii) 4/24/96

Fraud, or Any Scheme or Attempt to Defraud, by or Against a Foreign Bank

(as defined in 12 U.S.C. §3101(7))

1956(c)(7)(B)(iii) 10/28/92

Bribery of a Public Official, or the Misappropriation, Theft, or Embezzlement of 

Public Funds by or for the Benefit of a Public Official

1956(c)(7)(B)(iv) 10/26/01

Smuggling or Export Control Violations

(involving an item controlled on the U.S. Munitions List, Section 38 of the Arms 

Export Control Act (22 U.S.C. 2778) or an item controlled under the Export 

Administration Regulations (15 C.F.R. Parts 730-774))

1956(c)(7)(B)(v) 10/26/01

U.S. Obligation by a Multilateral Treaty to Extradite or Prosecute the Offender

(if offender located within territory of U.S.)

1956(c)(7)(B)(vi) 10/26/01

Trafficking in Persons, Selling or Buying of Children, Sexual Exploitation of 

Children, or Transporting, Recruiting or Harboring a Person, including a Child, 

for Commercial Sex Acts

1956(c)(7)(B)(vii) 1/10/06