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UNITED STATES CODE ANNOTATED 

TITLE 18. CRIMES AND CRIMINAL PROCEDURE 

PART I--CRIMES

CHAPTER 46--FORFEITURE

§ 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 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 

exceeding 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, 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.

(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 Resolution Trust Corporation, 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 Office of Thrift 
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Supervision 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 

indirectly, 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 act of domestic or

international terrorism (as defined in section 2331) 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 an act of domestic or international terrorism (as defined in section 2331) against the 

United States, citizens or residents of the United States, or their property; or

(iii) derived from, involved in, or used or intended to be used to commit any act of domestic or international 

terrorism (as defined in section 2331) against the United States, citizens or residents of the United States, or 

their property.

(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 
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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.
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(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 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;
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(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 [FN1] 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 non-Federal agency. The Attorney General, the Secretary of the Treasury, or the Postal Service may 

order the discontinuance 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 
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limiting the ability of the opposing party to pursue the civil case. In no case, however, shall the court impose a 

protective 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 

necessary 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 
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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 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 bank, and that foreign bank has an 

interbank account in the United States with a covered financial institution (as defined in section 5318(j)(1) of 
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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 bank, 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 bank 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 

restrained, 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 bank, 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 bank 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 bank at the time such funds were deposited; and

(II) does not include either the foreign bank or any financial institution acting as an intermediary in the 

transfer of the funds into the interbank account.

(ii) Exception.--The foreign bank 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 bank; or

(II) the foreign bank establishes, by a preponderance of the evidence, that prior to the restraint, seizure, or 

arrest of the funds, the foreign bank had discharged all or part of its obligation to the prior owner of the 

funds, in which case the foreign bank shall be deemed the owner of the funds to the extent of such 

discharged obligation.

[FN1] So in original. Probably should not be capitalized.

Current through P.L. 108-198, approved 12-19-03 

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