DEPARTMENT OF THE TREASURY

Office of the Under Secretary for 

Terrorism and Financial Intelligence

April 2020

Guidelines for Treasury Forfeiture Fund Agencies on 

Refunds Pursuant to Court Orders, Petitions for 

Remission, or Restoration Requests and Payments to the 

Fund for United States

Victims of State Sponsored Terrorism
APRIL 2020 Page 1

Table of Contents

I. PURPOSE................................................................................................................ 2

II. SCOPE AND BACKGROUND .............................................................................. 2

III. AGENCY REQUIREMENTS................................................................................. 3

IV. COURT ORDERS ................................................................................................... 4

A. Overview of Legal Authority................................................................................... 4

B. Agency Requirements.............................................................................................. 5

V. PETITIONS FOR REMISSION OR MITIGATION OF FORFEITURE............... 5

A. Overview of Legal Authority................................................................................... 5

B. Process for Administrative Forfeitures.................................................................... 6

C. Process for Judicial Forfeitures................................................................................ 7

VI. REQUESTS FOR RESTORATION OF FORFEITED ASSETS TO VICTIMS TO 

SATISFY A RESTITUTION ORDER............................................................................. 10

A. Overview of Legal Authority and Policy for Restoration...................................... 10

B. Process for Restoration Requests........................................................................... 11

VII. MLARS COURTESIES AND OBLIGATIONS................................................... 13

VIII. TIME LIMITS ....................................................................................................... 14

IX. COSTS AND EXPENSES IN REMISSION AND RESTORATION CASES..... 14

X. UNITED STATES VICTIMS OF STATE SPONSORED TERRORISM FUND 

(USVSST Fund)................................................................................................................ 14

A. Background............................................................................................................ 15

B. Qualifying Cases for the USVSST Fund ............................................................... 15

C. Important Considerations....................................................................................... 17

D. Template Memos and Disposition Instructions ..................................................... 18

Exhibits:

A. TFF Agency Future Expenditure Form 

B. TFF Obligation Form 

C. Instructions for Forms 

D. Templates for USVSST Fund Cases

E. Forms 2

F. Forms 7

G. ACH and IPAC Forms
APRIL 2020 Page 2

GUIDELINES FOR TREASURY FORFEITURE FUND AGENCIES ON 

PROCESSING REFUNDS PURSUANT TO COURT ORDERS, PETITIONS FOR 

REMISSION, OR RESTORATION REQUESTS

AS WELL AS FORFEITURES PAYABLE TO THE FUND

FOR UNITED STATES VICTIMS OF STATE SPONSORED TERRORISM1

I. PURPOSE

This directive is intended to provide guidance to the Treasury Forfeiture Fund (TFF) 

agencies when requesting that the Treasury Executive Office for Asset Forfeiture 

(TEOAF) account for future potential payments, and later, make such payments 

(“refunds”), pursuant to a court order, a petition for remission or mitigation, or a 

restoration request.

This directive also provides guidance to the TFF agencies for forfeiture cases in which 

forfeited proceeds are to be deposited to the United States Victims of State-Sponsored 

Terrorism Fund (USVSST Fund) instead of the TFF. The USVSST Fund was created by 

an act of Congress on December 18, 20152 to provide compensation to certain U.S. 

persons who were injured in acts of international state sponsored terrorism.

II. SCOPE AND BACKGROUND

This directive applies to all TFF agencies.3 This directive sets forth the process for 

accounting for forfeited funds that may have victims or other refund liabilities associated 

with them, and the handling of refund requests. This directive explains the remission and 

restoration processes and includes the appropriate forms and instructions for the agencies 

to use when submitting requests to TEOAF. 4

 

One of the missions of the forfeiture program is to compensate victims of crime where 

authorized, and to return property to innocent owners. Presently, each TFF agency 

handles such payment requests in accordance with its own agency procedures, with the 

request eventually reaching TEOAF. This directive aims to clarify the overall process for 

 1 This document is also referred to as TEOAF’s “Blue Book”. These 2020 updates address a 2016 

accounting change that resulted in a new process for tracking and obligating refunds, primarily to victims. 

It also contains a new section to address the Fund for U.S. Victims of State Sponsored Terrorism. 

2

 The USVSST Fund was created by the 2016 Consolidated Appropriations Act, Pub. L. 114-113, Div. O, 

Tit. IV, § 404(e) (codified at 34 U.S.C. § 20144). 

3

 In practice, this will apply most directly to the TFF agencies with seizure and forfeiture authority and 

authority to process refunds. Currently, these agencies are Internal Revenue Service-Criminal 

Investigations (IRS-CI), U.S. Immigration and Customs Enforcement-Homeland Security Investigations

(ICE-HSI), the United States Secret Service (USSS), and Customs and Border Protection (CBP).

4

 This directive does not create or confer any rights, privileges or benefits on prospective or actual claimants, 

defendants, petitioners, victims or other payees. Likewise, this directive is not intended to have force of law. 

See United States v. Caceres, 440 U.S. 471 (1979).
APRIL 2020 Page 3

reserving the funds for these victims and other payees soon after forfeiture, and for 

requesting such payments promptly after the refund ruling document has been issued. 

Because petitions for remission or restoration requests, particularly in victim cases, take 

precedence over other uses for the funds, including equitable sharing and federal official 

use, it is important to ensure that the funds remain available pending resolution of the 

petition or restoration request.

To ensure that forfeited funds remain available for future payments to victims and others,

the TFF agencies must submit a TFF Agency Future Expenditure Form (Exhibit A) 

to TEOAF soon after forfeiture for appropriate cases as defined below. This 

treatment will allow TEOAF to reserve the funds until the decision on the petition 

or restoration request is granted.5 Further, once a petition or restoration request is 

granted, an obligation must be recorded accordingly and timely.

III. AGENCY REQUIREMENTS

As always, agencies must actively remain aware of the status of their cases, particularly 

where victims or other types of potential payees are involved.6 Agencies must 

familiarize themselves with these procedures and processes to ensure full compliance. 

Agency responsibilities are summarized as follows:

Immediately after receiving the monthly Detailed Collection Report (DCR), the 

agencies must analyze each deposit to identify all the cases that have potential 

victims.

7 Agencies must notify TEOAF at TEOAF_Refund@treasury.gov of all

anticipated victim payments or refunds by submitting a TFF Agency Future Expenditure

Form in the following cases:

1. A petition for remission has been filed but not yet ruled upon.

 5 The obligations for refund will be recorded when sufficient evidence (such as a ruling letter granting a 

petition for remission or restoration request) is available to support such recording. Until a granted ruling 

letter is issued, however, these procedures are intended to allow TEOAF to account for and track these 

future obligations to ensure funds are available to pay them when they are due. See GAO Red Book, Ch. 7 

(stating that where funds are payable but recording is not required, the agency should “nevertheless

administratively reserve sufficient funds to cover” the expense to, among other reasons, avoid a possible 

violation of the Antideficiency Act.”) GAO-06-382SP Appropriations Law—Vol. II, at 7-44

6

 Agencies must develop and maintain procedures to ensure that case agents and forfeiture personnel 

remain in communication with the United States Attorney’s Offices so that the agency is up-to-date on the 

status of any cases in which seized or forfeited funds may be sought for victim or other third-party 

payments.

7 More specifically, the TFF Agency Future Expenditure Form should be submitted upon 

confirmation of deposit to the TFF. In practice, the agencies will only be able to declare a future 

expenditure after they receive and review the DCR.
APRIL 2020 Page 4

2. A restoration request has been submitted to the Department of Justice (DOJ),

Money Laundering & Asset Recovery Section (MLARS)

8 but not yet ruled 

upon.

3. A restitution order has been entered, there is a corresponding forfeiture (civil 

judicial, criminal, or administrative) and the United States Attorney’s Office 

(USAO) has indicated it will seek restoration.

4. No petition or restoration request has yet been filed but is anticipated.

9

5. An agency learns a prior year forfeiture might be vacated.10

To request a reservation of funds, agencies must submit the TFF Agency Future

Expenditure Form and other required supporting documentation to

TEOAF_Refund@treasury.gov as soon as practicable after forfeiture. 11

To prevent reduction to your current year funding level, it is imperative to submit the 

TFF Agency Future Expenditure Form timely.

IV. COURT ORDERS

A. Overview of Legal Authority

Often, the court specifically directs the government to make a payment to a certain party. 

The court may direct that the payment be made either from seized funds in the suspense 

account or from forfeited funds.

12 Examples include, but are not limited to, payments to 

a lienholder or innocent owner; payments from the proceeds of a negotiated or 

interlocutory sale; certain attorney’s fees; payments pursuant to a settlement agreement;

or a return of seized and/or forfeited currency for various other reasons, to include a 

forfeiture that has been vacated. The court order should state the legal authority and/or 

reason for making such a payment, and the name of the payee.

 8 Until January 2017, this section was formerly known as the Asset Forfeiture and Money Laundering 

Section (AFMLS).

9 This category may warrant an administrative reservation of funds even if it does not yet rise to the level of 

a future expenditure. These cases may be reviewed further by TEOAF to determine the most appropriate 

treatment.

10 Same as above. Please consult with TEOAF on the best way to handle a vacated forfeiture. 

11 This requirement may be in addition to any requirements imposed by your agency. Each agency must 

develop procedures for sending a TFF Agency Future Expenditure Form, with supporting documentation, 

to TEOAF in an efficient, timely manner. For example, IRS-CI and the U.S. Secret Service send their 

requests monthly through Headquarters. For HSI and CBP, it may be more efficient for the Fines, Penalties 

& Forfeitures Office to send the requests directly to TEOAF with a copy to Headquarters. 

12 The court has no authority to direct distribution of forfeited assets. However, courts occasionally enter 

orders instructing the government to take action as to the disposition of forfeited (as opposed to seized) 

funds. Please consult your agency counsel or TEOAF counsel on these matters.
APRIL 2020 Page 5

B. Agency Requirements

When submitting payments pursuant to a court order, the agency must use Form 2, 

Disposition Instructions for Currency Held in Treasury Suspense Account or Form 7,

Request for Post Forfeiture Refund respectively, depending on whether the funds are 

coming from seized funds in the suspense account or from forfeited funds in the TFF. 

Pursuant to Exhibit C, along with the appropriate form, the agency shall include in the 

package:

1. The court order or other relevant legal document specifying the payment to be 

made.

2. A completed Automated Clearing House (ACH) form if the agency is seeking 

to make the payment electronically, which is the required payment method;

checks may be issued on a case by case basis.13

3. Any other relevant or helpful documentation or identifying information.14

4. For refunds from the TFF, a request to obligate the funds15 at the time of the 

payment, or proof of an existing obligation (this usually would be a signed 

TFF Agency Obligation Form (Exhibit B)).

TEOAF will then process the payment through the U. S. Customs & Border Protection 

(CBP) National Finance Center (NFC). TEOAF Legal Counsel may also review the 

package to ensure that the court order complies with all applicable legal standards. When 

needed, TEOAF may request additional information from the agency. TEOAF will not 

process a request without the required documentation.

V. PETITIONS FOR REMISSION OR MITIGATION OF FORFEITURE

A. Overview of Legal Authority

The remission or mitigation of forfeiture is a remedy designed to lessen the harshness of 

the forfeiture sanction. A remission or mitigation is the pardon of the property or an 

interest therein, based on either the good faith of the petitioner and his/her innocence or 

the lack of knowledge of the underlying unlawful conduct, or on the petitioner’s status as 

a victim. In the case of the violator, it is a plea for leniency. The majority of petitions 

filed are from victims, although lien holders, innocent owners and other claimants or 

 13 If the payee is another federal agency, a completed Intra-Governmental Payment and Collection (IPAC) 

request input form is required in lieu of an ACH form.

14 This may include sales costs sheets, expense reports, and proof of deposit to the Treasury Suspense 

Account (TSA) or TFF.

15 Where used in this document, the phrase “request to obligate” means a request to TEOAF (using the TFF 

Agency Obligation Form) to review to ensure that a legal financial obligation exists and if so, to submit the 

info to the NFC to promptly record the obligation.
APRIL 2020 Page 6

violators often file as well. Petitions for remission or mitigation take priority over other 

potential uses for forfeited funds, including official use requests and equitable sharing.16 

When an agency believes a meritorious petition will be filed or sought by the USAO, it 

must request that TEOAF reserve a specific amount of the forfeited funds by submitting 

the TFF Agency Future Expenditure Form along with supporting documentation. See 

Exhibit A.

In administrative forfeitures, the agencies have sole responsibility pursuant to their 

various authorities to remit and mitigate forfeitures.17 However, the Attorney General 

has the sole responsibility for ruling on petitions for remission or mitigation with respect 

to property involved in a judicial forfeiture proceeding, even in cases in which a TFF 

agency was the lead agency. See, e.g., 18 U.S.C. § 981(d); 21 U.S.C. § 853(i)(1). This 

responsibility has been delegated to the DOJ, specifically, to the Chief of MLARS. The 

regulations governing petitions for remission or mitigation of judicial forfeitures are 

found at 28 C.F.R. Part 9. 

The next sections explain the procedures for agencies to follow for petitions in 

administrative and judicial forfeitures. 

B. Process for Administrative Forfeitures

In administrative forfeitures, the agency handles and is the ruling entity on any petitions 

for remission or mitigation. CBP processes its own refunds from the suspense account of 

seized but not-yet-forfeited funds.

18 For all other agencies and for all forfeited funds

that have been moved into the TFF, the request must come from the agency to TEOAF to 

process the payment through the NFC. A few common scenarios shall be handled as 

follows:

1. Funds are administratively forfeited, a petition is filed, and the agency 

intends to grant it during the same fiscal year in which the funds were 

deposited: Once the agency has granted the petition, a financial obligation is 

legally established. Agency must submit a TFF Agency Obligation Form, the 

grant letter, a Form 7 and any other required supporting documentation 

(pursuant to Exhibit C) to TEOAF_Refund@treasury.gov. However, if it will 

take a while to assemble a Form 7 package (e.g., because there are 

multiple victims and the agency is awaiting ACH information; there are 

multiple assets that will require waiting on cost sheets; or the package 

will otherwise be delayed) the agency MUST submit the TFF Agency

Obligation Form promptly after the ruling letter is issued to ensure that 

the obligation is recorded timely and removed from the future 

expenditure schedule. The Form 7 should be submitted when it is ready.

 16 Pending victim payments take priority over sharing even where the victim is a federal agency.

17 See, e.g., 19 C.F.R. parts 171 and 172.2; 26 C.F.R. Part 403, Subpart D. The TFF’s authority to make 

payments authorized by law with respect to remission and mitigation is in 31 U.S.C. § 9705(a) (1)(E).

18 This directive does not intend to cover on-site mitigation or remission done by HSI or CBP. 
APRIL 2020 Page 7

2. Funds are administratively forfeited, a petition is filed or expected, but 

the agency does not expect to grant it until a subsequent fiscal year: The 

agency shall submit a completed TFF Agency Future Expenditure Form for 

the amount that the agency expects to be granted. 

3. A petition has been denied in whole by the agency, and the time for any 

appeal or reconsideration has expired: If the agency had previously 

submitted a TFF Agency Future Expenditure Form for the assets at issue, the 

agency shall request that TEOAF remove them from the future expenditure

schedule.

4. IMPORTANT: If a claim has been filed and the case becomes judicial, 

coordination and communication with the Assistant United States Attorney

(AUSA) is important for determining the status of the petition. The AUSA 

may wish to settle with the petitioner or deal with their claim before the court 

and have the petitioner withdraw their petition. Or, the petition maybe ruled 

upon at a later date, post-forfeiture, by MLARS.

5. If a vehicle or other personal property is at issue, sometimes a decision will be 

made to sell the property pending resolution of the petition. This occurs 

sometimes in cases where the litigation is protracted and lengthy, and thus 

sale of the asset is sometimes necessary to preserve the value of the property 

or avoid wasting the value of perishable property. The petitioner would then 

receive the sale proceeds, after costs, if his or her petition is granted. 

Agencies must track the sale of property subject to a refund, and must submit 

a TFF Agency Future Expenditure Form for any funds being sought, up to the 

amount that was forfeited or received from sale of the property. 

6. Funds are administratively forfeited and become the subject of a 

restoration request to satisfy a restitution order in a related criminal 

case: DOJ must seek approval from the agency before granting restoration of 

administratively forfeited funds. If an agency approves, or intends to approve, 

use of administratively forfeited funds or sales proceeds for a restoration 

request, the agency shall submit an Agency Future Expenditure Form to 

TEOAF. Please see Section VI for more information about restoration. 

C. Process for Judicial Forfeitures

In judicial forfeiture cases, pursuant to 28 C.F.R. Part 9, the following generally occurs: 

1. A third party with an interest files a petition. Petitioner may be a victim, 

lienholder, innocent owner, or even the violator. Petitioners may include 

individuals, corporations, businesses, non-profits or other organizations, or 

local, state, or federal agencies. The petition should be sent to the USAO, 

MLARS, and the seizing agency, though this does not always happen.
APRIL 2020 Page 8

a. Note that in victim cases, USAOs have access to a model victim 

petition developed by MLARS. Agencies should work with their 

AUSAs to get this model petition to their victims to fill out for ease. 

Petitioners should include any documentation they have available with 

their petitions. Further, in cases with multiple victims, sometimes a 

claims administrator is hired to assist in the collection and processing 

of petitions. If agencies anticipate a case will have a large number of 

victims, it should consult with the USAO and MLARS as soon as 

practicable to determine whether a claims administrator will be hired. 

2. When the agency receives a copy or otherwise learns of the petition,19 it 

should promptly submit to TEOAF a TFF Agency Future Expenditure Form 

for any funds being sought, up to the amount that was forfeited or that resulted 

from the forfeiture (such as sales proceeds). The agency shall track the 

disposition of all real and personal property that resulted from the forfeiture 

for possible return to a successful petitioner.

3. The remission regulations require a seizing agency report on the merits of the 

petition for remission or mitigation. The USAO asks the seizing agency to 

investigate the merits of the petition. The seizing agency’s report is evaluated

by the USAO and MLARS, so this is the agency’s opportunity to be thorough 

and to clearly justify any conclusions it may reach about the merits of any 

particular petition.

20

4. USAO makes a recommendation on the merits of the petition, as required by 

the applicable remission regulations. Some USAOs defer to the agency. 

Others are very proactive and will assist in determining the actual amounts (or 

percentages) each victim/petitioner should receive.

5. The seizing agency and USAO recommendations are forwarded to MLARS

by the USAO. MLARS reviews all the documentation and recommendations 

in light of applicable federal laws and regulations and issues a ruling either 

granting or denying the petition. MLARS sends the ruling letter to the 

petitioner.

 19 Additionally, as noted, in cases with a large number of victims, a claims administrator is often hired. 

The hiring of the administrator is another good trigger that the funds will be required for a future obligation 

for future payments to victim petitioners. TEOAF may request additional information from the agency, the 

USAO or MLARS concerning the timing and likelihood of the petitions being granted when determining 

whether to set aside funds.

20 Conclusions in a petition investigation that are unsupported by documentation or explanation may not be 

given fullest deference. Agencies are should use the applicable guidelines or regulations, and to be as clear 

and as thorough as possible, particularly if they are recommending that a petition be denied. Additionally, 

agencies must include the agency case and seizure numbers on their investigation reports so that MLARS 

may include these numbers in its ruling letters. This facilitates faster identification of assets subject to a 

ruling letter.
APRIL 2020 Page 9

a. In cases involving Treasury agencies or assets, MLARS also sends a 

copy of the ruling letter to TEOAF Legal Counsel, the Seizing Agency 

Field Office and/or the appropriate asset forfeiture contact at agency 

headquarters. 

6. If the Petition is Granted: Upon the seizing agency’s receipt of notification 

that a petition has been GRANTED, the agency shall use the TFF Agency

Obligation Form to instruct TEOAF to post an obligation against forfeited 

funds and any sales proceeds from the sale of forfeited property. A Form 7 

package must also be submitted to pay the petitioner. The TFF Agency 

Obligation Form and the Form 7 package may be submitted simultaneously. 

However, if it will take a while to assemble a Form 7 package (i.e., 

because there are multiple victims and the agency is awaiting ACH 

information; there are multiple assets that will require waiting on cost 

sheets; or the package will otherwise be delayed) the agency MUST 

submit the TFF Agency Obligation Form promptly after the ruling letter 

is issued to ensure that the obligation is recorded timely. The Form 7 

package should be submitted as soon as it is ready. 

a. The general policy is that the obligation must be recorded in the same 

fiscal year in which the grant letter was issued.

b. For any granted petition, if needed, the agencies must provide the 

ACH information and Taxpayer ID Numbers to make electronic 

payments through the Treasury Offset Program System. This also 

applies to granted reconsideration requests.

7. If the Petition is DENIED: Petitioners have ten days from the date they 

RECEIVE the ruling letter to file a reconsideration request. Under 28 C.F.R. 

9.4(k), the reconsideration request must be sent to MLARS and the USAO.

a. MLARS will email TEOAF Legal Counsel, and often the seizing 

agency, once it receives a reconsideration request. TEOAF Legal 

Counsel will then forward the email to the appropriate agency 

personnel (if not already on the MLARS email), with a copy to 

TEOAF Revenue Team, so that the agency can ensure that the

anticipated future expenditure or set aside remains.

b. The agency should maintain the future expenditure on ANY denial 

for 90 days from the date of the ruling letter to ensure that no 

reconsideration request has been filed.21 

 21 Why 90 days when the petitioner has only 10 days to file a reconsideration request? Ninety days will 

allow enough time for: (1) the petitioner to receive the ruling; (2) the petitioner to file its reconsideration 

request; (3) the USAO to receive it and forward it to MLARS; (4) MLARS to notify TEOAF.
APRIL 2020 Page 10

8. If no reconsideration request is received after the 90 days, or if a 

reconsideration request is received and denied, the agency shall request that 

TEOAF remove the seizure numbers at issue from its future expenditure

schedule. The funds then may be disposed of pursuant to 31 U.S.C. § 9705.

9. If a reconsideration request is filed and granted, the steps in section V.C.6 

above must be followed.

10. TEOAF will forward the paperwork to the NFC for refund.

VI. REQUESTS FOR RESTORATION OF FORFEITED ASSETS TO VICTIMS

TO SATISFY A RESTITUTION ORDER22

A. Overview of Legal Authority and Policy for Restoration

The Attorney General has the authority to restore forfeited property to the victims of 

crimes underlying the forfeiture or of related criminal offenses, in satisfaction of a 

restitution order in a criminal case related to the forfeiture.23 The property at issue may 

be forfeited judicially (criminally or civilly) or administratively. The purpose of this 

authority is to be able to use forfeited assets to compensate victims for whom there is a 

restitution order without requiring these victims to file petitions for remission.24

Restoration is appropriate only in cases where there has been a criminal conviction and a 

restitution order has been entered, and there is a related civil judicial, administrative, or 

criminal forfeiture.

25 Restoration is generally appropriate only where:

 22 The DOJ’s policy on remission and restoration is included in its Forfeiture Policy Manual (2016), 

Chapter 12, available at http://www.justice.gov/criminal-MLARS/publications. 

23 See, e.g., 21 U.S.C. § 853(I) (1); 18 U.S.C. § 981(e)(6). The Secretary of the Treasury has its own 

restoration authority in civil forfeiture under 18 U.S.C. § 981(e)(6). However, by agreement, the TFF 

agencies are subject to MLARS’s currently established procedures for restoration in TFF agency cases.

24 Victims may still file petitions. Owners, lien holders and owner-victims, whether in the remission or 

the restoration process, have priority over non-owner victims. A restoration request may be granted subject 

to pending decisions on the petitions filed by owners and lien holders. Assuming remaining funds, 

restoration payments would be made after costs and after recognizing the interests of owners and lien 

holders.

25 The following items are examples of common situations that are NOT a complete restoration case. 

Cases in which there is: 

- A restitution order only with no associated forfeiture. (A related forfeiture is required, along 

with USAO intent to seek restoration or have the victims file petitions. If a related forfeiture exists 

– it could be civil forfeiture – and the USAO confirms that restoration or petitions will be 

forthcoming, the agency must submit a TFF Agency Future Expenditure Form.)

- A civil forfeiture only (whether it is administrative or judicial) with no restitution order in the 

related criminal case. (Restoration requires a restitution order in a criminal case. If you have a 

civil forfeiture only, the TFF agency must ask if the USAO will solicit petitions. If yes, the agency 

must submit a TFF Agency Future Expenditure Form.)
APRIL 2020 Page 11

• ALL (not just some) of the victims have been included in the restitution order.

• The USAO has consulted with the seizing agency and determined that: 

o The restitution order reflects the victim’s remaining loss after considering 

any other sources of compensation (such as insurance) the victim may 

have received;

o no other assets are available; and 

o the victims were not complicit in or willfully blind to the offenses 

underlying the forfeiture or to related offenses.

• The property to be restored was forfeited pursuant to a statute that expressly 

authorizes restoration or remission.26

B. Process for Restoration Requests

1. The USAO must make a formal request to MLARS to apply the forfeited 

proceeds to a restitution order. In making a restoration request, the USAO 

must provide a copy of the request to the TFF seizing agency and consult with 

the agency to validate victims’ losses as incorporated in the restitution order.

a. In DOJ cases, the USAO may place a hold on the use of assets in the 

Consolidated Asset Tracking System (CATS) pending the resolution of 

the restoration request. This includes assets that may not be part of the 

criminal case.

i. CATS is not the Treasury inventory system of record and therefore 

the agency must remain aware of the status of their victim cases 

through other communication with the USAO. Once a TFF agency 

 

-A Judgment & Conviction (J & C) that states that restitution will be made from forfeited assets. 

(This situation would still require a restitution order AND a formal restoration request granted by 

MLARS that forfeited assets be used to satisfy the restitution order. The TFF agency must submit a 

TFF Agency Future Expenditure Form when the restoration request is made by the USAO, and 

must request obligation and payment once the request is granted by MLARS.)

Should a TFF agency receive an inappropriate or incomplete request to use forfeited assets to pay 

restitution, the agency shall not process the request but shall refer it back to the USAO with a 

reference to this policy. The TFF will set aside funds for a future obligation only upon written

confirmation from the USAO, MLARS, or other appropriate agency headquarters official, that the 

proceeds will be needed to compensate victims pursuant to a proper restoration request or petition 

process. As with all cases discussed in this Guide, TEOAF may request additional information from 

the agency, the USAO or MLARS about the case and likelihood that the restoration or petitions will 

be granted before determining the best accounting treatment for those funds.

26 For example, such statutes include 18 U.S.C. §981(e)(6), 982(b)(1)(by cross-reference to 21 U.S.C. § 

853), and 21 U.S.C. § 853(i) authorizes remission and restoration. Other federal laws may also authorize 

remission and restoration.
APRIL 2020 Page 12

receives information that a USAO is considering making a 

restoration request, the agency shall submit a TFF Agency Future 

Expenditure Form for the forfeited funds or the proceeds from the 

sale of the forfeited property in that case.

b. In cases involving administratively forfeited assets by a TFF agency,

the USAO must obtain written concurrence of the TFF seizing agency 

Special Agent in Charge or other appropriate TFF agency official. 

i. When the TFF agency receives a request from a USAO for written 

concurrence to use administratively forfeited assets for restoration, 

the TFF agency, assuming it concurs, must submit a completed 

TFF Agency Future Expenditure Form to request reservation of 

funds.

27

ii. If this written concurrence was not obtained in the year in which the 

funds were forfeited or soon thereafter, and funds are no longer 

available for this purpose, TEOAF may not honor the restoration 

ruling.28

2. MLARS reviews all the documentation and recommendations in light of 

applicable federal laws and regulations and issues a ruling either granting or 

denying the restoration request. MLARS sends the ruling letter to the seizing 

agency with a copy to the USAO.

a. If the restoration request is granted, the ruling will also include sample 

language for the seizing agency to include in a cover letter29 to the 

clerk of the court when forwarding the payment.30 Any restitution 

payment made the TFF must not exceed the amount of restitution 

ordered and owed by the defendant.

 27 Agencies must educate and instruct their field offices and agents to inform the forfeiture personnel at 

HQ of restoration requests. It is incumbent upon the agencies to be aware of every case in which the 

USAO is filing a restoration request and to inform agency HQ. The agency HQ must then inform TEOAF 

so that TEOAF can reserve the funds pending resolution of the claims. Agencies must use their sound 

discretion, in keeping with the mission of the forfeiture program, in determining whether to concur with a 

request from a USAO to use administratively forfeited assets for restoration.

28 Further, MLARS generally will not accept or approve restoration requests for assets that have been 

disposed of for over five years unless there are unique circumstances surrounding the delay, nor will 

TEOAF honor such requests.

29 TEOAF does not require the TFF agency to send letters to the clerk of the court. Rather, NFC includes 

all pertinent case identification information in the electronic payment (via IPAC) transfer that is received 

by the clerk of the court.

30 Payments are not made directly to the victim in a restoration case; rather, payments are made to the clerk 

of the court. This is because the court will need to keep track of the defendant’s restitution liability. 

Additionally, consistent with Treasury’s policy, TEOAF does not issue checks to any federal court. Most 

federal courts are capable of receiving payments electronically via IPAC, and TEOAF and NFC will assist 

if a particular court does not have their IPAC account set up. 
APRIL 2020 Page 13

b. Additionally, before granting restoration of an asset administratively 

forfeited by a TFF agency, MLARS must ensure that the timely

concurrence of the TFF seizing agency was obtained.

3. In cases involving Treasury agencies or assets, MLARS also sends a copy of 

the ruling letter to TEOAF Legal Counsel. 

4. If Restoration Is Granted: The seizing agency must submit a TFF 

Obligation Form and a Form 7 package containing the appropriate paperwork

pursuant to Exhibit C to TEOAF_Refund@treasury.gov for processing. 

TEOAF will forward it to the NFC for payment. Any restoration payment 

made by the TFF must not exceed the amount of restitution ordered and owed 

by the defendant.

5. If Restoration Is Denied: It is rare that restoration is denied; however, if it 

is, please note there is no appeal or reconsideration period for such denial. 

Thus, if the agency had previously submitted a TFF Agency Future 

Expenditure Form for the assets at issue, the agency shall request that TEOAF 

remove them from the future expenditure schedule. 

VII. MLARS COURTESIES AND OBLIGATIONS

MLARS currently copies the TFF agency and TEOAF Legal Counsel on all ruling letters 

on petitions for remission, reconsiderations requests, and restoration requests involving 

TFF agencies. This practice will continue. MLARS has agreed to assist the TFF 

agencies and TEOAF in tracking petitions, reconsideration requests, and restoration 

requests by undertaking the following additional activities:

6. MLARS will email TEOAF Legal Counsel when a reconsideration request has 

been filed on any particular case.

a. TEOAF will then forward the email to the TFF agency with a copy to 

TEOAF Revenue Team or other appropriate TEOAF officials. The 

agency must work with TEOAF to ensure that any future expenditure

remain on the funds pending MLARS’s decision on the 

reconsideration request. Because no law or regulation currently 

mandates that TEOAF or the TFF agency be notified of a 

reconsideration request, this courtesy is extremely helpful to TEOAF 

in ensuring that the funds are accounted for. 

7. On all decision letters (restoration, remission, or reconsideration), to the 

extent available, MLARS will include the TFF agency seizure number and 

any other identifying case or asset numbers available. (The CATS numbers 

provided are for DOJ use only.)
APRIL 2020 Page 14

8. DOJ provides TEOAF with a monthly CATS-generated report of pending 

petitions for remission, which TEOAF will share with the TFF agencies. This 

list, however, excludes pending restoration requests.

9. Upon request from TEOAF, MLARS will provide TEOAF with a list of 

pending TFF petitions for remission, restoration requests, and reconsideration 

requests under review at MLARS.

These courtesies provided by MLARS do not negate or alleviate the duty of the TFF 

agencies to remain current on the nature and status of their victim cases (or other cases in 

which a future obligation exists) and to be diligent in their communication efforts with 

the USAOs; and to request the posting of future expenditures or obligations on funds 

where appropriate.

VIII. TIME LIMITS

For refunds pursuant to a petition for remission or restoration ruling, in order to ensure 

availability of funds, TEOAF must be notified of the future expenditure as soon as 

practicable after forfeiture as explained in this directive (i.e. within the same fiscal year 

as when the funds were forfeited). If no such notification was provided within the 

same fiscal years of the date of deposit to the TFF, funds may not be available from the 

TFF for the payment. Such determination is within the sole discretion of the Director of

TEOAF. Further, MLARS will not accept or approve restoration requests for assets that 

have been disposed of for over five years unless there are unique circumstances 

surrounding the delay, nor will TEOAF honor such requests.

IX. COSTS AND EXPENSES IN REMISSION AND RESTORATION CASES

Generally, costs incident to the forfeiture, sale or other disposition of the forfeited 

property are deducted from the total forfeiture proceeds prior to payment of remission or 

restoration. The remaining balance, or net proceeds, is distributed to the payee (either the 

petitioner or the court, depending on whether the TFF is paying a petition or a 

restoration.) Expenses that may be deducted include but are not limited to storage fees, 

liens, taxes, sales commissions and other related costs. See, e.g., 28 C.F.R. §9.9; 19 

C.F.R. §§162.51, 162.96, 171.24. 

Note that costs related to the disposition of the asset may include a sequestration 

deduction where deemed required, and costs incurred incident to the processing of the 

petition(s) for remission or mitigation, or the restoration request, to include contractor 

expenses.

Where appropriate, the seizing agency may request waiver of some costs in certain 

limited situations. Please consult with your HQ officials for further information. 

X. UNITED STATES VICTIMS OF STATE SPONSORED TERRORISM FUND 

(USVSST Fund)
APRIL 2020 Page 15

A. Background

In December 2015, Congress created the Fund for United States Victims of State 

Sponsored Terrorism (“USVSST Fund”), when it enacted the Justice for United States 

Victims of State Sponsored Terrorism Act (the “Act”), 34 U.S.C. § 20144 (2015) (and 

later amended it with section 1701 of Public Law 116-69 on Nov. 21, 2019). The DOJ, 

Criminal Division, MLARS, is responsible for administering this fund. The Act 

establishes a program, overseen by a Special Master, to provide compensation to certain 

victims of state sponsored terrorism. 

The USVSST Fund will last until at least January 2, 2030, under current law and is 

replenishing; the Act directs that certain funds and property forfeited or paid to the United 

States as criminal or civil penalties or fines after the enactment of the Act on December 

18, 2015 be transferred to the USVSST Fund, for eventual disbursement to eligible 

victims. These amounts should be transferred from the Treasury Suspense Account to the 

USVSST Fund at the time of forfeiture and should not be deposited into the TFF first. 

The Act provides that the following funds shall be transferred to the USVSST Fund: 

All funds, and the net proceeds from the sale of property, forfeited or paid to the 

United States after December 18, 2015, as a criminal penalty or fine arising from 

a violation of any license, order, regulation, or prohibition issued under the 

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

Enemy Act (TWEA), or any related criminal conspiracy, scheme, or other Federal 

offense arising from the actions of, or doing business with or acting on behalf of, 

a state sponsor of terrorism. 

34 U.S.C. § 20144(e)(2)(A)(i) (emphasis added, internal citations omitted). 

The Act initially provided for the transfer of one-half of such funds and net sale proceeds 

forfeited or paid as a civil penalty or fine from violations of the same provisions. 34

U.S.C. § 20144(e)(2)(A)(ii) (emphasis added.) This includes civil judicial and civil 

administrative forfeitures. This amount was increased by law to seventy-five percent for 

all forfeitures completed on or after November 21, 2019.

In enforcement actions in which the United States obtains funds or property described in

these provisions, i.e., either as criminal or civil forfeitures, penalties, or fines that meet 

these criteria, TEOAF must ensure those amounts are deposited in the USVSST Fund as 

mandated by the Act.

B. Qualifying Cases for the USVSST Fund

TEOAF and the TFF agencies headquarters have issued guidance on determining which 

cases are eligible for deposit to the USVSST Fund. You should follow this guidance. 

Generally, if your agency is working on a case involving a state sponsor of terrorism, 
APRIL 2020 Page 16

please consult with your agency counsel to coordinate proper review of the matter. Your 

agency HQ must notify TEOAF of any potentially eligible case. TEOAF is available to 

consult with the agencies as needed. Further, TEOAF’s Director has mandated that 

agencies report monthly to TEOAF as to whether they have any cases the might be 

eligible for the USVSST Fund.

While DOJ is the agency with ultimate authority to confirm the eligibility of a forfeiture 

case for the USVSST Fund, TFF agencies, their counsel and TEOAF counsel have a role 

in helping to identify such cases. To identify qualifying cases, agencies should perform a 

threshold examination of each case to determine: 

• Step 1: Does the case include any violation “arising from the actions of, or 

doing business with or acting on behalf of, a state sponsor of terrorism”? If no 

state sponsor of terrorism is involved, then any resulting forfeiture, penalty, or 

fine shall be processed in the usual manner to into the Treasury Forfeiture 

Fund at the time of forfeiture. If a state sponsor of terrorism is involved, go to 

the next step below.

• Step 2: Does the case include “a violation of any license, order, regulation, or 

prohibition issued under IEEPA or TWEA? If yes, these IEEPA and TWEA 

violations qualify to have penalties or fines deposited in the USVSST Fund. 

If the case does not include a direct IEEPA or TWEA violation, go to the next 

step below.

• Step 3: Does the case include “any ... conspiracy, scheme, or other Federal 

offense” related to an IEEPA or TWEA violation? If yes, these offenses 

qualify to have penalties or fines deposited in the USVSST Fund.

Some cases may include qualifying violations as well as violations unrelated to state 

sponsors of terrorism, IEEPA, or TWEA. In such cases, agencies, in coordination with 

agency counsel and any applicable DOJ attorneys, must track how much of the forfeiture, 

penalty, or fine is attributable to qualifying violations. Working with applicable counsel, 

MLARS and TEOAF, agencies will direct the correct amount into the USVSST Fund, 

while handling the balance of the forfeiture, penalty, or fine in accordance with usual 

agency practice. 

The chart below indicates countries designated by the Secretary of State as state sponsors 

of terrorism. As of April 2020, only Iran, North Korea, Sudan, and Syria are designated. 

It is important to note that even after a country is no longer designated as a state sponsor 

of terrorism, country-based sanctions under IEEPA or TWEA may remain in place. For 

example, while Cuba was removed from the list of state sponsors of terrorism in 2015, 

certain sanctions remain in place. The designation must have been in place at the time 

the violations occurred in order for the case to qualify to have funds deposited in the 

USVSST Fund. 
APRIL 2020 Page 17

Periods of 

Designation for 

State Sponsors of 

Terrorism State 

Designation Date Removal from List 

Cuba March 1, 1982 May 29, 2015 

Iran January 19, 1984 Still listed 

Iraq (1) December 29, 1979 1982 

Iraq (2) September 13, 1990 September 24, 2004 

Libya December 29, 1979 May 12, 2006 

North Korea (1) January 20, 1988 June 26, 2008 

North Korea (2) November 20, 2017 Still listed

South Yemen December 29, 1979 1990 

Sudan August 12, 1993 Still listed 

Syria December 29, 1979 Still listed 

C. Important Considerations

1. The government can retain its costs where an asset was sold by the 

government. In a civil case where an asset was sold, 75% of the net proceeds 

shall be transferred. If any asset is eligible for deposit to the USVSST Fund 

and has costs associated with it, please consult with your agency HQ as well 

as TEOAF counsel.

2. Rental income, whether collected pre- or post-forfeiture, for real properties 

that were forfeited pursuant to an eligible violation shall NOT be deposited 

into the TFF.31 Rather, such funds shall remain in the TSA until a final 

accounting and determination are made concerning the amount that must be 

deposited to the USVSST Fund. Rental income maintained in the TSA 

pursuant to this section will be held in class code 773. This is the same class 

code for interlocutory sales and the rental income can be separately identified 

within this class code.

3. Any transfer to the USVSST Fund should come from the TSA. Funds 

intended to go to the USVSST Fund, even when forfeited, should NOT be 

moved into the TFF. This point is particularly important for CBP, which 

has the ability to move money from the suspense account to the TFF 

without going through TEOAF. Any erroneous movement of funds into 

the TFF must be immediately reported to TEOAF for corrective action.

4. Communication between the agencies and TEOAF is important in any 

administrative cases that might be eligible. TEOAF can facilitate discussions 

with DOJ to determine whether a case is eligible for transfer to the USVSST 

Fund.

 31 See also TEOAF Directive 3, “Occupancy Agreements” (March 23, 2017), Section F, discussing rental 

income.
APRIL 2020 Page 18

5. In any case that is judicial, or in which a Deferred or Non-Prosecution 

Agreement (DPA or NPA) is being considered, the seizing agency shall 

communicate first with the AUSA and then consult with and advise TEOAF. 

DOJ has provided guidance to the U.S. Attorney’s Offices on this matter.

6. Use the Templates (Exhibit D) when funds are to be transferred to the 

USVSST Fund, or are anticipated to be transferred. The Form 2 and Form 7 

must be clearly labeled with the term “USVSST Fund.” You can do this by 

stamping or handwriting in block letters, “USVSST FUND” in the top right 

corner.

7. Seizing agencies should separately track all cases that may go to the USVSST 

Fund so that they can ensure all deposits are properly made into the USVSST 

Fund and not into the TFF.

8. For each individual case, the agencies will need to be able to distinguish funds 

being forfeited that have the requisite nexus to state sponsors of terrorism and 

IEEPA and TWEA violations, versus funds forfeited in the same case that do 

not have a nexus to state sponsors of terrorism and IEEPA and TWEA, and 

thus will not go into the USVSST Fund.

9. For purposes of the USVSST, an entity is considered a state sponsor of 

terrorism if it was so designated at the time the violation that is the basis for 

the forfeiture was committed. At the time of this writing, there are four 

countries designated as state sponsors of terrorism (Iran, North Korea, Sudan, 

and Syria). The list has changed over time – most recently with the de-listing 

of Cuba in May 2015 and the re-listing of North Korea in November 2017.

10. The USVSST Fund currently has a sunset date of January 2, 2030, (subject to 

change by legislation) so these reviews for relevant forfeitures must become 

part of a regular process for each agency until that date. Unobligated amounts 

in the USVSST Fund after that date shall be transferred, as appropriate, to the 

TFF or to the DOJ AFF.

11. If forfeited funds are mistakenly deposited into the TFF that should go to the 

USVSST Fund, the agencies should immediately notify TEOAF. Such funds 

mistakenly placed into the TFF cannot be spent for any purpose.

D. Template Memos and Disposition Instructions

1. When the forfeiture is final and the eligible case proceeds are ready to be 

deposited, the agency must provide to TEOAF a disposition package, clearly 

marked USVSST FUND, which includes the following:

a. A memorandum from the agency explaining which portion of the 

forfeiture stays in the suspense account and the amount that will be 

transferred to the USVSST Fund. (See Exhibit D for Templates)
APRIL 2020 Page 19

In a civil case, a Form 2 must be submitted which instructs that 25% of the 

eligible portion of the forfeiture be moved to the TFF. Generally, in a 

civil case 75% will stay in suspense, and the remaining 25% will be 

moved to the TFF. If the proceeds are forfeited criminally, usually all the 

funds attributed to state sponsored terrorism will stay in the suspense 

account. A Form 2 is required only if a portion of the criminal forfeiture

does not qualify for transfer to the USVSST Fund.

b. A copy of the Final Order of Forfeiture, or Declaration of Forfeiture, and 

Settlement Agreement, if applicable.

c. Copy of the designation memorandum from TEOAF or DOJ.

2. Once it is time to transfer the money to the USVSST Fund from the suspense 

account, the package must be clearly marked “USVSST FUND” and 

include:

a. Form 2 moving the funds from the suspense account to the USVSST 

Fund.

b. Under “Third Party,” insert “Victims of State Sponsored Terrorism Fund.”

c. Please complete the IPAC Input Form accurately.

For the USVSST Fund, please include the following:

• Treasury Account Symbol - 15 X 5608001

• Customer Agency Location Code (ALC) – 15010005

• Receiver BETC – COLAVRCT

Tips to avoid delays:

• Double check the dollar value of case proceeds

• Input the proper Treasury Account Symbol

• Provide the case number and title in the description of the IPAC

• Provide the name and phone number to reach a “real” person 

responsible for the IPAC 

• Transaction Description – Case Number and Title

d. Copy of the memorandum from the TFF seizing agency from when the 

funds were initially forfeited which explains why the funds are to go to the 

USVSST Fund.

e. Copy of the TEOAF or DOJ designation memorandum

Questions regarding the USVSST Fund may be directed to Melissa Nasrah, TEOAF 

Legal Counsel at (202) 622-2566; Jeffrey Warner, Attorney-Advisor, at (202) 622-8351; 

Irina Dline, Assistant Director, at (202) 622-2028; or Toni Davis, Program Analyst, at 

(202) 622-5891.
APRIL 2020 Page 20

Any questions about this Guide (the “blue book”) should be directed to your agency 

headquarters personnel, or to TEOAF’s Legal Counsel or the TEOAF Refund Team at 

(202) 622-9600.