Treasury Forfeiture Fund

FY 2013

President’s Budget

Submission
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Table of Contents

Section 1 – Purpose ....................................................................................................................... 3

1A – Mission Statement.............................................................................................................. 3

1.1 – Resource Detail Table ........................................................................................................ 3

1B – Mission Priorities and Context ........................................................................................... 3

Section 2 – Budget Adjustments and Appropriation Language............................................... 6

2.2 – Operating Levels Table ...................................................................................................... 6

2B – Appropriations Language and Explanation of Changes..................................................... 7

2C – Legislative Proposals.......................................................................................................... 7

Section 3 – Budget and Performance Report and Plan............................................................. 8

3.1.1 Asset Forfeiture Fund Budget and Performance Report and Plan ..................................... 9

Section 4 – Supplemental Information...................................................................................... 10

4A – Capital Investment Strategy ............................................................................................. 10
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Section 1 – Purpose

1A – Mission Statement

The mission of the Treasury Forfeiture Fund is to affirmatively influence the consistent and 

strategic use of asset forfeiture by law enforcement bureaus participating in the Treasury 

Forfeiture Fund to disrupt and dismantle criminal enterprises.

1.1 – Resource Detail Table

Dollars in Thousands

% Change

FY 2011 FY 2012 FY 2013 FY 2012

Actual Estimated Estimated to FY 2013

FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

Budgetary Resources:

Revenue/Offsetting Collections

Interest $1,425 $1,000 $1,000 N/A

Other Income $929,746 $532,000 $552,000 3.8%

Total Revenue/Offsetting Collections $931,171 $533,000 $553,000 3.8%

Unobligated balances, Start of year $580,785 $646,405 $103,762 (83.9%)

Recoveries of prior year obligations $57,464 $30,000 $30,000 N/A

Restoration of temporary rescission $90,000 $422,600 $950,000 124.8%

Total Budgetary Resources Available $1,659,420 $1,632,005 $1,636,762 0.3%

Expenses/Obligations

Mandatory Obligations 24 $461,676 24 $517,238 24 $541,000 N/A 4.6%

Secretary's Enforcement Fund 0 $0 0 $42,000 0 $42,000 N/A N/A

Super Surplus Obligations 0 $128,739 0 $19,005 0 $123,762 N/A 551.2%

Total Expenses/Obligations 24 $590,415 24 $578,243 24 $706,762 N/A 22.2%

Rescissions/Cancellations

Rescission of Unobligated Balances $(422,600) $(950,000) $0 (100%)

Cancellation of Unobligated Balances $0 $0 $(830,000) N/A

Total Rescissions/Cancellations $(422,600) $(950,000) $(830,000) (12.6%)

Net Results $646,405 $103,762 $100,000 (3.6%)

1B – Mission Priorities and Context

The Treasury Forfeiture Fund (the Fund) is the receipt account for the deposit of non-tax 

forfeitures made pursuant to laws enforced or administered by bureaus participating in the 

Treasury Forfeiture Fund. The principal revenue-producing member bureaus include the Internal 

Revenue Service’s Criminal Investigation (IRS-CI), Customs and Border Protection (CBP), 

Immigration and Customs Enforcement (ICE), and the U.S. Secret Service (Secret Service.) The 

latter three bureaus are part of the Department of Homeland Security, transferred as part of the 

Homeland Security Act of 2002. These member bureaus are joined by the U.S. Coast Guard, 

Department of Homeland Security, as the result of a long-standing close law enforcement 

relationship with CBP and ICE. The Treasury Forfeiture Fund supports the Department’s 

strategic goal to “protect our national security through targeted financial actions.” The Treasury 

Executive Office for Asset Forfeiture (TEOAF) manages the Treasury Forfeiture Fund.

Vision: TEOAF focuses on supporting strategic cases and investigations that result in high 

impact forfeitures. This approach will have the greatest impact on criminal organizations and 

thus will accomplish the ultimate mission of the Fund to disrupt and dismantle criminal 

enterprises. The enhancement of forfeiture activity requires longer, more in-depth investigations. 
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To this end, TEOAF emphasizes the use of mandatory funding authorities that support large case 

initiatives including the purchase of evidence and information, joint operations expenses, 

investigative expenses leading to seizure, and asset identification and removal teams. In 

addition, it is also a priority to fund revenue-enhancing projects such as major case funding, 

database development and computer forensics through the use of the Secretary’s Enforcement 

Fund or Super Surplus funds when available.

Priorities: Asset seizure and forfeiture is a priority for the Fund’s participating law 

enforcement organizations, as well as the Department of the Treasury, and is linked directly to 

the National Money Laundering and Southwest Border Strategies. In this regard, TEOAF has 

identified the following priorities for mission success:

 Continue to educate and focus stakeholders, and others, on the vision and mission of 

Treasury’s multi-Departmental asset forfeiture program (i.e., affirmatively influence the 

consistent and strategic use of asset forfeiture by law enforcement bureaus participating in 

the Treasury Forfeiture Fund to disrupt and dismantle criminal enterprises);

 Focus resources in a manner that enhances support of law enforcement’s National Money 

Laundering Strategy, Southwest Border Strategy and anti-terrorism financing efforts;

 Foster and support the investment of forfeiture resources in the needs of our participating law 

enforcement bureaus in order to promote program excellence and strengthen the overall 

quality of criminal investigations; and

 Develop and modify forfeiture training and awareness programs that are responsive to 

today’s needs and continually re-evaluate such training initiatives for best practices.

Context: The Treasury Forfeiture Fund continued in its capacity as a multi-Departmental Fund 

in FY 2011, representing the forfeiture interests of law enforcement components of the 

Department of the Treasury and the Department of Homeland Security. In the midst of this 

period of growth and change, the Fund’s law enforcement bureaus continued their hard work of 

federal law enforcement and the application of asset forfeiture as a sanction to bring criminals to 

justice. 

FY 2011: FY 2011 was another robust revenue year for the Treasury Forfeiture Fund 

with income from forfeitures and recoveries of $988.6 million. Among these forfeitures, 

the Deutsche Bank AG (Deutsche Bank) forfeited $403.8 million in late September 2011. 

In addition, Deutsche Bank paid a $149 million penalty, admitting criminal wrongdoing 

to settle a long-running probe over fraudulent tax shelters that allowed clients to avoid 

paying billions of dollars in U.S. taxes. Also during FY 2011, the Fund received some 

large forfeiture deposits in the form of equitable shares from the Department of Justice 

Assets Forfeiture Fund reflecting a Treasury Forfeiture Fund member bureau’s role in 

those forfeitures. Barclays Bank PLC, a United Kingdom Corporation headquartered in 

London, agreed to forfeit a combined total of $298 million to the United States and to the 

New York County District Attorney’s Office in connection with violations of the 

International Emergency Economic Powers Act (IEEPA) and the Trading with the 

Enemy Act (TWEA). Barclays publicly admitted its illegal acts and announced 

implementation of stringent compliance measures. Of the $149 million forfeited to the 

Department of Justice Assets Forfeiture Fund, one-half ($74.5 million) was equitably 
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shared with the Treasury Forfeiture Fund pursuant to IRS-CI’s contributions to the 

forfeiture. 

Forfeiture revenue from these two major cases alone total $478.3 million in FY 2011. In 

addition to these major cases, bulk cash interdiction at the Southwest Border continues to 

bring in millions of dollars in forfeitures as smugglers attempt to take undeclared U.S. 

currency across the U.S. border into Mexico. 

FY 2012 Plans and Changed Projections since the President’s Budget Submission: 

TEOAF forecasts a continued successful forfeiture program for FY 2012 with forfeiture 

revenue from cases and prior year obligation recoveries estimated at $563 million. As 

the result of pending major cases, the Fund was expected to achieve higher than average 

forfeiture revenue deposits during FY 2012. However, the projected revenue has 

declined from 1.1 billion, due to uncertainty about the forfeiture status of a $500 million 

case. For FY 2012, TEOAF continue to support strategic investigative initiatives that will 

have the greatest impact on national and international criminal enterprise including 

valuable training and investigative expense funding that emphasizes high impact 

forfeiture cases. 

In addition, the Consolidated Appropriations Act, 2012 temporarily rescinds $950 million 

in unobligated balances from the Treasury Forfeiture Fund.

FY 2013 Plans: TEOAF intends to maintain a dynamic and evolving asset forfeiture 

program that is responsive to the needs of member law enforcement bureaus. At this 

time, the Forfeiture Fund estimates $583 million in revenue from forfeiture deposits and 

recoveries in FY 2013. The FY 2013 President’s Budget proposes to permanently cancel 

$830 million in unobligated balances from the Treasury Forfeiture Fund. 
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Section 2 – Budget Adjustments and Appropriation Language

2.2 – Operating Levels Table

Dollars in thousands

 FY 2011 FY 2012 FY 2013

Treasury Forfeiture Fund Actual Estimated Estimated

FTE 20 24 24

Object Classification

25.2 - Other services 157,009 187,060 187,060

25.3 - Other purchases of goods and services from Govt. accounts 226,310 174,883 279,640

41 - Grants, subsidies, and contributions 207,096 216,300 240,062

Total Budget Authority 590,415 578,243 706,762

Budget Activities:

Asset Forfeiture Fund 590,415 578,243 706,762

Total Budget Authority 590,415 578,243 706,762
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2B – Appropriations Language and Explanation of Changes 

Appropriations Language Explanation of Changes

DEPARTMENT OF THE TREASURY

TREASURY FORFEITURE FUND

Of the unobligated balances available under this 

heading, [950,000,000] $830,000,000 are [rescinded] 

hereby permanently cancelled. (Department of the 

Treasury Appropriations Act, 2012.

For FY 2013, $830,000,000 in 

unobligated balances is 

proposed for permanent 

cancellation.

2C – Legislative Proposals

The Treasury Forfeiture Fund has no legislative proposals for FY 2013. 
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Section 3 – Budget and Performance Report and Plan

3A - Asset Forfeiture Fund

($706,762,000 from revenue/offsetting collections):

The function of the Treasury Forfeiture Fund is to ensure resources are managed to cover the 

costs of an effective asset seizure and forfeiture program, including the costs of seizing, 

evaluating, inventorying, maintaining, protecting, advertising, forfeiting and disposing of 

property. Asset forfeiture is used by federal law enforcement to disrupt and dismantle criminal 

enterprises. The goal owner for this budget activity is the Director of the Treasury Executive 

Office for Asset Forfeiture.

Summary of Treasury Forfeiture Fund Authorities: The Treasury Forfeiture Fund is a special 

fund with permanent, indefinite authority. Special funds are federal fund collections that are 

earmarked by law for a specific purpose, and which consist of separate receipt and expenditure 

accounts. The enabling legislation for the Treasury Forfeiture Fund (31 U.S.C. § 9703) defines 

those purposes for which the Fund’s revenue may be used. Forfeiture revenue on deposit in the 

Fund can be allocated and used as the result of a permanent indefinite appropriation provided by 

Congress.

A forfeiture process begins once property or cash is seized. Upon forfeiture, seized currency, 

initially deposited into a suspense, or holding account, is transferred to the Fund as forfeited 

revenue. Once forfeited, physical properties are sold and the proceeds are deposited into the 

Fund as forfeited revenue. It is forfeiture revenue that composes the budget authority for 

meeting expenses of running the Treasury Forfeiture Fund program.

Expenses of the Fund are set in a relative priority so that operating costs are met first. Expenses 

may not exceed revenue in the Fund.

Types of spending authority of the Fund:

The mandatory authority items are generally used to meet the operating costs of the Fund, 

including expenses of storing and maintaining seized and forfeited assets, valid liens and 

mortgages, investigative expenses incurred in pursuing a seizure, information and inventory 

systems, and certain costs of local police agencies incurred in joint law enforcement operations. 

Following seizure, equitable shares are paid to state and local law enforcement agencies that 

contributed to the seizure activity at a level proportionate to their involvement. 

Secretary’s Enforcement Fund (SEF) is derived from equitable shares received from the 

Department of Justice or U.S. Postal Service (USPS) forfeitures. These shares represent 

Treasury’s portion in the overall investigative effort that led to a Justice or USPS forfeiture. SEF 

revenue is available for federal law enforcement purposes of any law enforcement organization 

participating in the Treasury Forfeiture Fund.

Super Surplus represents the remaining unobligated balance at the close of the fiscal year after 

an amount is reserved for Fund operations in the next fiscal year. Super Surplus can be used for 

any federal law enforcement purpose.
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3.1.1 Asset Forfeiture Fund Budget and Performance Report and Plan

Dollars in Thousands

Asset Forfeiture Fund Budget Activity

Resource Level FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013

Actual Actual Actual Actual Actual Actual Actual Estimate

 Revenue/Offsetting Collections $313,957 $391,512 $597,287 $483,586 $852,078 $590,415 $578,243 $706,762

Total Resources $313,957 $391,512 $597,287 $483,586 $852,078 $590,415 $578,243 $706,762

Budget Activity Total $313,957 $391,512 $597,287 $483,586 $852,078 $590,415 $578,243 $706,762

Measure FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013

Actual Actual Actual Actual Actual Actual Target Target

Percent of Forfeited Cash 

Proceeds Resulting from 

High-Impact Cases (%) 

72.93 84.18 86.91 87.65 93.11 91.44 80.0 80.0

Key: DISC - Discontinued and B - Baseline

Description of Performance: 

For FY 2013, the Fund will continue to measure the performance of the participating law 

enforcement bureaus through the use of the performance measure: percent of forfeited cash 

proceeds resulting from high impact cases. This measures the percentage of forfeited cash 

proceeds resulting from high impact cases, which are cases resulting in a cash forfeiture deposit 

equal to or greater than $100,000. 

A target of 80 percent has been set for this performance measure in FY 2013. Focusing on 

strategic cases and investigations that result in high impact forfeitures will do the greatest 

damage to criminal organizations while accomplishing the ultimate objective which is to disrupt 

and dismantle criminal activity. However, the Forfeiture Fund maintains a target of 80 percent 

because some cases may be important to pursue, even if they are not high impact cases and result 

in deposits of less than $100,000. Member law enforcement bureaus participating in the 

Treasury Forfeiture Fund have met or exceeded the performance target in seven of the nine fiscal 

years since inception of the measure in FY 2002.

For detailed information about each performance measure, including definition, verification and 

validation, please go to: http://www.treasury.gov/offices/management/dcfo/accountabilityreports/
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Section 4 – Supplemental Information

4A – Capital Investment Strategy

TEOAF uses Departmental Offices’ (DO) systems and is part of DO’s capital investment 

strategy.