Department of the Treasury

Treasury Executive Office of 

Asset Forfeiture

Congressional Budget 

Justification and Annual 

Performance Report and Plan

FY 2020
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Table of Contents

Section I – Purpose........................................................................................................................ 3

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

B – Summary of the Request ...................................................................................................... 3

1.1 – Appropriations Detail Table............................................................................................... 7

1.2 – Obligation Detail Table...................................................................................................... 8

1.3 – Operating Levels Table...................................................................................................... 8

E – Legislative Proposals............................................................................................................ 8

Section II – Annual Performance Plan and Report................................................................... 9

A – Strategic Alignment ............................................................................................................. 9

B – Budget and Performance by Budget Activity ...................................................................... 9

2.1.1 Treasury Forfeiture Fund Resources and Measures........................................................... 9
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Section I – Purpose

A – Mission Statement

To affirmatively influence the consistent and strategic use of asset forfeiture by law enforcement 

bureaus that participate in the Treasury Forfeiture Fund (the Fund) to disrupt and dismantle 

criminal enterprises.

B – Summary of the Request 

The Treasury Executive Office for Asset Forfeiture (TEOAF) administers the Fund, which is the 

receipt account for deposit of non-tax forfeitures made pursuant to laws enforced or administered 

by participating Treasury and Department of Homeland Security (DHS) bureaus. Principal 

revenue-producing bureaus include U.S. Customs and Border Protection (CBP), U.S. 

Immigration and Customs Enforcement (ICE), the Internal Revenue Service (IRS), the U.S. 

Secret Service (USSS), the U.S. Coast Guards (USCG), and Alcohol and Tobacco Tax and Trade 

Bureau (TTB), among others. The Fund is a special fund, defined as a Federal fund account for 

receipts earmarked for specific purposes and the expenditure of those receipts. The law (31 

U.S.C. 9705) allows TEOAF to use the funds for payment of all proper expenses of seizure or 

the proceedings of forfeiture and sale.

Revenues deposited in the Fund can be allocated and used as the result of a permanent indefinite 

appropriation provided by Congress. A forfeiture process begins once currency or property is 

seized. Seized currency is deposited into a suspense account (holding account) until forfeited. At 

that time, the forfeited amount is transferred (deposited) to the Fund as revenue. Forfeited 

properties are usually sold, and the proceeds are also deposited into the Fund as revenue. This 

revenue represents budget authority for meeting obligations and expenses of the program.

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

not exceed revenues.

• Mandatory expenses represent operating costs of the Fund, including storing and 

maintaining seized and forfeited assets, valid liens and mortgages, investigative expenses 

incurred in pursuing a seizure, information and inventory systems, remissions, victim 

restoration, and certain costs of local police agencies incurred in joint law enforcement 

operations. Following seizure, equitable shares may be 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) expenses are funded from revenue from equitable 

shares received from Department of Justice (DOJ) or U.S. Postal Service (USPS) forfeitures. 

These shares are proportionate to Treasury’s participation in the overall investigative effort 

that led to a DOJ or USPS forfeiture. SEF revenue is available for federal law enforcementrelated purposes of any bureau participating in the Fund. 

• Strategic Support authority, established by Congress in 31 U.S.C. 9705(g)(4)(B), allows 

TEOAF to fund priority federal law enforcement initiatives with remaining unobligated 

balances at the close of the fiscal year, after an amount is reserved for the next fiscal year’s 

operations.
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FY 2018 Case Highlights: The following case highlights are intended to provide examples of 

the types of investigative cases worked by the Fund’s law enforcement bureaus during FY 2018 

that resulted in the seizure and forfeiture of assets. Such cases as those profiled below are 

consistent with the strategic mission and vision of the Fund, which is to use high-impact asset 

forfeiture in investigative cases to disrupt and dismantle criminal enterprises.

• Rabobank Forfeits $318,701,259 as Part of Guilty Plea

Rabobank National Association (Rabobank) pleaded guilty to a felony conspiracy charge for 

impairing, impeding and obstructing its primary regulator, the Department of the Treasury’s 

Office of the Comptroller of the Currency (the OCC) by concealing deficiencies in its anti-money 

laundering (AML) program and for obstructing the OCC’s examination of Rabobank. The 

investigation was conducted by ICE Homeland Security Initiative (HSI), IRS Criminal 

Investigation (CI), and the Financial Investigations and Border Crimes Task Force, a multiagency 

Task Force based in San Diego and Imperial County. The investigation was funded by the 

TEOAF and occurred parallel to regulatory investigations by the OCC, IRS’ Office of General 

Counsel, and FinCEN’s Enforcement Division.

• New York Man Sentenced to 87 Months and Forfeits $1,624,172 for Multi-State 

Biodiesel Fraud Scheme

Andre Bernard, of Mount Kisco, New York, pleaded guilty for his participation in a multistate scheme to defraud biodiesel buyers and U.S. taxpayers by fraudulently selling biodiesel 

credits and fraudulently claiming tax credits. The IRS-CI was joined in this case by the USSS

and the Environmental Protection Agency’s Criminal Investigation Division.

• Minnesota Man who defrauded Hmong Community is Sentenced to 87 Months in 

Prison, Forfeits $1,612,451

The St. Paul Police Department contacted the USSS Minneapolis Field Office requesting 

assistance regarding the investigation of a large scale nationwide wire fraud scheme targeting 

a Southeast Asian ethnic group known as the Hmong people living in approximately 18 

known states in the U.S. Seng Xiong promoted his scheme in the Hmong language to solicit 

elderly members of the Hmong community to invest money in monthly payments to bank 

accounts in the name of Seng Xiong. Seng Xiong was convicted of wire fraud and mail fraud. 

The final order of forfeiture for $1,612,451 will be used for victim restitution. 

• Coast Guard Cutter Offloads Over 41.5 Tons of Cocaine 

In San Diego on January 25, 2018, the USGC Cutter Stratton offloaded more than 47,000 

pounds of cocaine worth over $721 million. U.S. and Canadian forces operating in 

international waters off the coast of Central and South America seized the cocaine in 23 

separate interdictions in the eastern Pacific Ocean. On March 20, 2018, the USCG offloaded 

approximately 36,000 pounds of cocaine, with an estimated value of $500 million. The 

seized narcotics were the result of 17 interdictions of suspected smuggling vessels off the 

coasts of Central and South America between early February and early March of 2018.

Priorities: In FY 2020, TEOAF will continue to support the investigations and activities of the 

participating law enforcement bureaus. The bulk of TEOAF expenses include supporting 

seizures and forfeitures to protect the health and safety of U.S. citizens and the commercial 

interests of U.S. businesses from pernicious criminal activity. Funds are expended for seizure, 

storage, maintenance, disposition, and destruction and all costs associated with those activities.
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TEOAF focuses on supporting cases and investigations that meet the mission of disrupting and 

dismantling criminal enterprises. To this end, TEOAF prioritizes major case1 initiatives when 

allocating funding to member agencies, including the purchase of evidence and information, joint 

operations expenses, investigative expenses leading to seizure, and asset identification and 

removal teams. Major case initiatives are aligned directly to the National Money Laundering and 

Southwest Border strategies.

TEOAF support for complex financial investigations initiated by the participating agencies 

reveals assets available for forfeiture. Many of these assets are the proceeds and result of 

fraudulent criminal enterprises that have victims. Significant resources are required to obtain a 

successful prosecution and forfeiture with the resulting revenue used to compensate the victims 

of the criminal activity.

Participating agencies also combat emerging patterns and practices that threaten our Nation’s 

financial stability. Funds are used to support anti-money laundering/combating financing of 

terrorism (AML/CFT) investigations and activities. To be effective, analysis of large data caches 

and cryptocurrency-related crime requires large investments in advanced information technology 

hardware, software, training, and other capabilities. These investments buttress the AML/CFT 

strategy of the Departments of Homeland Security and the Treasury. 

Challenges: Recently-enacted large rescissions have had a severe negative impact on the 

participating member agencies’ investigations. Insufficient and inconsistent funding support, 

uncertainty about future funding, investigations disrupted by cash flow problems, and inability to 

obtain necessary technology/infrastructure all undermine both current and future financial 

investigations and forfeitures. The Fund relies on base revenue (revenue from non-major 

forfeitures) to cover basic mandatory costs of the forfeiture program. Total FY 2018 base

revenue was $364 million, as compared to $349 million in FY 2017, $419 million in FY 2016, 

$387 million in FY 2015, and $410 million in FY 2014.

The table below reflects forfeiture revenue from all sources including revenue, reverse asset 

sharing, and interest earned.

 1 A major case refers to a case where the forfeiture results in a deposit greater than $5 million, or a case that disrupts, 

dismantles, or interrupts money laundering networks or other financial activities that threaten the financial stability, 

financial system, or financial interests of the United States.
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*FY 2015 data does not include the BNP Paribas S.A. forfeiture in the amount of $3,839 million. Of that amount, $3,800 million was 

permanently rescinded and transferred to the newly-created U.S. Victims of State Sponsored Terrorism Fund (USVSST) as directed by Congress 

under the Consolidated Appropriations Act of 2016, Pub. L. 114-113, Div. O, Tit. IV, §404(e) and §405(b). The remainder has been returned to 

the General Fund in FY 2018.

Participating agencies are seeing reluctance in the field to undertake complex major 

investigations due to the lack of assurance that their efforts would receive continuous support.

Strategic Support funding is especially critical as a strategic investment in the agencies’ 

operational capabilities and infrastructure supporting major cases. It provides law enforcement 

much-needed flexibility to respond in real time to unanticipated critical needs, such as those 

driven by technology advancements or emerging criminal threats. It often serves as seed funding 

for innovations that need to be tested and refined prior to full-scale implementation.

It is precisely the most important, high-impact2 financial investigations that TEOAF must 

continue to support due to resource needs and ultimate disposition of the forfeited assets. 

Undermining these major financial investigations will directly impact the ability of Treasury and 

DHS to respond to priority threats and to protect the integrity of the U.S. financial system.

In addition, TEOAF tracks future remission payments to third parties as contingent liabilities. 

However, these amounts are not recorded as obligations from the Fund until the Department of 

Justice grants the petition for remission. The third parties are predominantly victims of crimes 

that triggered the forfeiture (e.g., Ponzi scheme or kleptocracy victims). Amounts recorded are 

significant because remission payments from multiple years are recorded and carried forward.

The amounts change constantly as payments are made and amounts for new remission cases are 

added. TEOAF considers the amounts recorded as contingent liabilities as unavailable and 

believes that consideration of contingent liabilities provides a more accurate representation of the 

financial position of the Fund.

 2 A high-impact case refers to a case resulting in a cash forfeiture deposit equal to or greater than $100,000. 

$579 $556 

$1,143 

$931 

$524 

$1,715 

$785 $795 $884 

$516 

$1,279 

FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015* FY 2016 FY 2017 FY 2018

$0

$500

$1,000

$1,500

$2,000

Millions

FORFEITURE REVENUE FROM ALL SOURCES
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1.1 – Appropriations Detail Table

Dollars in Thousands

1 FY 2019 estimates are based on approved financial plan and exclude additional anticipated forfeitures of $359 million that may come in FY 

2019. 2 The Treasury Forfeiture Fund is staffed by Departmental Offices employees and positions are funded via reimbursable agreement. The FTE are 

shown here for clarity, but are also reflected in the Departmental Offices chapter in the reimbursable FTE total.

3 In February 2019, Treasury submitted a strategic support plan to the committees including two tranches. The first tranche of up to $242 million 

will be available for obligation 15 days after Treasury's plan was submitted. The second tranche of $359 million will be available for obligation 

after that date subject to the receipt of additional anticipated forfeitures. 4 The FY 2019 sequestration would increase by $22 million if the additional anticipated forfeitures of $359 million are finalized in FY 2019. 

Treasury will compute the FY 2020 sequestration reduction once the OMB Report to Congress on the Joint Committee Sequestration for Fiscal 

Year 2020 is released. 

Treasury Forfeiture Fund

Budgetary Resources

FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

Revenue/Offsetting Collections

Interest 0 $47,560 0 $31,000 0 $31,309 0 $309 NA 1%

Restored Prior Year Rescission 0 $988,000 0 $0 0 $0 0 $0 NA NA

Restored Prior Year Sequestration Reduction 0 $35,606 0 $84,405 0 $32,742 0 ($51,663) NA -61%

Restored Prior Year Sequestration of Restored 

Rescission 0 $60,444 0 $65,208 0 $0 0 ($65,208) NA -100%

Forfeited Revenue 0 $1,231,301 0 $497,096 0 $507,038 0 $9,942 NA 2%

Recovery from Prior Years 0 $16,933 0 $18,000 0 $18,000 0 $0 NA 0%

Unobligated Balances from Prior Years 0 $668,529 0 $825,172 0 $134,460 0 ($690,712) NA -84%

Total Revenue/Offsetting Collections $3,048,373 $1,520,881 $723,549 0 ($797,331) NA -52%

Expenses/Obligations

Mandatory Obligations2 26 $919,464 27 $527,772 27 $538,327 0 $10,555 0.00% 2%

Secretary's Enfrocement 0 $38,383 0 $22,316 0 $22,762 0 $446 NA 2%

Strategic Support 0 $49,579 0 $601,000 0 $0 0 ($601,000) NA -100%

First Tranche 3 0 $0 0 $242,000 0 $0 0 $0 NA NA

Second Tranche 3 0 $0 0 $359,000 0 $0 0 $0 NA NA

FY 2018 Strategic Support obligated in FY 2019 0 $0 0 $2,590 0 $0 0 ($2,590) NA -100%

Total Expenses/Obligations 26 $1,007,426 27 $1,153,678 27 $561,090 0 ($592,589) 0.00% -51%

Rescissions/Cancellations

Sequestration Reduction 4 0 ($149,613) ($32,742) TBD NA NA NA

Permanent Cancellation 0 ($1,066,162) ($200,000) $0 $200,000 NA -100%

Total Rescission/Cancellations ($1,215,775) ($232,742) $0 $200,000 NA -100%

Net Results $825,172 $134,460 $162,459 ($204,743) NA 21%

Contingent Liabilities $407,460 $400,000 $400,000 $0 NA 0%

FY 2018 FY 2019 FY 2020 FY 2019 to FY 2020

Actual Estimated1 Estimated $ Change % Change
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1.2 – Obligations Detail Table

Dollars in Thousands

1 Funding availability is based on actual receipts. TEOAF will reassess the funding availability in late FY 2019. 2 IRS’ FY 2018 Mandatory obligations included a large victim refund of $453 million. 3 This represents IRS’ FY 2018 Strategic Support funding obligated in FY 2019

1.3 – Operating Levels Table

Dollars in Thousands

E – Legislative Proposals

TEOAF has no legislative proposals.

Treasury Forfeiture Fund % Change

Obligations FY 2019 to 

FY 2020

CBP $64,161 $41,622 $42,454 2%

ICE $105,323 $199,988 $203,987 2%

IRS 2 $620,107 $150,485 $153,495 2%

USSS $31,796 $31,893 $32,531 2%

USCG $1,400 $1,400 $1,428 2%

TEOAF $79,251 $82,277 $83,923 2%

TTB $588 $600 $612 2%

DOJ $16,837 $19,506 $19,896 2%

Total Mandatory $919,464 $527,771 $538,327 2%

CBP $5,422 $4,000 $4,080 2%

ICE $14,963 $7,185 $7,329 2%

IRS $12,821 $7,050 $7,191 2%

USSS $5,177 $4,081 $4,163 2%

Total SEF $38,383 $22,316 $22,762 2%

CBP $9,925 $601,000 TBD NA

ICE $16,321 $0 TBD NA

IRS 3 $13,410 $2,590 TBD NA

USSS $6,500 $0 TBD NA

USCG $2,423 $0 TBD NA

TTB $1,000 $0 TBD NA

Total Strategic Support $49,579 $603,590 TBD NA

Total Expenses/Obligations $1,007,426 $1,153,678 $ 561,090 -51%

FY 2019 

Estimated

FY 2020 

Estimated 1

Mandatory

SEF

Strategic Support

FY 2018

 Actual

Treasury Forfeiture Fund FY 2018 FY 2019 FY 2020

Object Classification Actual Estimated Estimated

25.2 - Other services 58,598 60,496 61,000

25.3 - Other purchases of goods & serv frm Govt accounts 177,215 730,496 132,000

26.0 - Supplies and materials 15 138 25

41.0 - Grants, subsidies, and contributions 161,025 167,492 170,000

43.0 - Interest and dividends 56 59 65

44.0 - Refunds 522,556 103,499 105,000

94.0 - Financial Transfers 87,961 91,498 93,000

Total Non-Personnel 1,007,426 1,153,678 561,090

New Budgetary Resources $1,007,426 $1,153,678 $561,090

Budget Activities:

 Asset Forfeiture Fund $1,007,426 $1,153,678 $561,090

FTE 26 27 27
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Section II – Annual Performance Plan and Report

A – Strategic Alignment

The purpose of the Fund is to ensure resources are managed to cover the costs of an effective

asset seizure and forfeiture program, including the costs of seizure or the proceedings of

forfeiture and sale, including the expenses of detention, inventory, security, maintenance,

advertisement, or disposal of the property. Additionally, the Fund is used to support law

enforcement priorities, financial investigative capabilities, and the seizure of physical and

financial resources to disrupt and dismantle criminal enterprises. TEOAF supports the following

Department of the Treasury strategic goal and associated objectives:

• Goal 3: Enhance National Security:

o 3.1 Strategic Threat Disruption

o 3.2 AML/CFT Framework

B – Budget and Performance by Budget Activity

2.1.1 Treasury Forfeiture Fund Resources and Measures

Dollars in Thousands

Treasury Forfeiture Fund Budget and Performance

($561,090,000 in obligations from revenue/offsetting collections): 

The Fund continues to measure the performance of the participating law enforcement bureaus 

through the “percent of forfeited cash proceeds resulting from high-impact cases, “which are 

cases that yield a cash forfeiture deposit equal to or greater than $100,000.

Focusing on strategic cases and investigations that result in high-impact forfeitures will help to 

impede criminal organizations while accomplishing the ultimate objective, which is to disrupt 

and dismantle criminal enterprises. Member law enforcement bureaus participating in the Fund 

have met or exceeded the performance target since FY 2014. However; the performance declined 

to 81.79 percent in FY 2017 due to the inability of TEOAF to offer support for high-impact cases 

in prior years. The performance increased to 94.19 percent in FY 2018 because one major case 

resulted in $453 million which was used to compensate victims entirely. For FY 2019 and 

FY 2020, the target will remain at 80 percent. The 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.

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020

Actual Actual Actual Actual Actual Estimated Estimated

Expenses/Obligations $787,849 $4,323,908 $508,746 $526,228 $1,007,426 $1,153,678 $561,090

$787,849 $4,323,908 $508,746 $526,228 $1,007,426 $1,153,678 $561,090

 25 25 25 25 26 27 27

Measure FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020

Actual Actual Actual Actual Actual Target Target

 98.25 89.09 81.79 80.00 94.19 80.00 80.00 

Budget Activity Total

 Resource Level

FTE

Percent of Forfeited Cash Proceeds 

Resulting from High-Impact Cases