Department of the Treasury

Treasury Forfeiture Fund

Congressional Budget 

Justification and Annual 

Performance Report and Plan

FY 2019
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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 .............................................................................................. 6

1.2 – Operating Levels Table...................................................................................................... 7

D – Appropriations Language and Explanation of Changes ...................................................... 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, U.S. Immigration and 

Customs Enforcement, the Internal Revenue Service, and the U.S. Secret Service, 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 enforcement-related purposes of any bureau participating in the Fund.

 Strategic Support (formerly known as Super Surplus) 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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Priorities: In FY 2019, 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. 

TEOAF focuses on supporting cases and investigations that meet the mission of disrupting and 

dismantling criminal enterprises. To this end, TEOAF prioritizes major case1initiatives 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 also combats 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 Secretaries of Homeland Security and the Treasury. If available, TEOAF plans to 

use Strategic Support (formerly super surplus) funds in FY 2019 to support such investments.

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 in the absence of Strategic Support all undermine 

both current and future financial investigations and forfeitures. FY 2017 total revenue was the 

lowest since FY 2007, and the substantial drop in “base” revenue (revenue from non-major 

forfeitures) that is relied upon to cover basic mandatory costs of the forfeiture program is 

especially troubling. Total FY 2017 “base” revenue was $349 million, as compared to $419

million in FY 2016, $387 million in FY 2015, and $410 million in FY 2014.

 

1A 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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The table below reflects forfeiture revenue from all sources including direct revenue, reverse 

asset sharing, and interest earned.

*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 is 

precluded from obligation.

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-impact2financial investigations that suffer the most from 

the absence of Strategic Support funding, as they require additional resources and cutting-edge 

capabilities (e.g., big data analytics, virtual currency tracking, mobile forensics). Undermining 

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

respond to priority threats such as identity theft, fentanyl trafficking, and network intrusion, 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 

 

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

$579 $556

$1,143

$931

$524

$1,715

$785 $795

$884

$516

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

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

Millions

Forfeiture Revenue from All Sources
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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.

1.1 – Appropriations Detail Table

Dollars in Thousands

Treasury Forfeiture Fund

Budgetary Resources

FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

Revenue/Offsetting Collections

Interest 0 $18,930 0 $24,000 0 $9,000 0 (15,000) 0 -62.50%

Restored Temporary Rescission 0 876,000 0 988,000 0 988,000 0 0 0 0.00%

Restored Sequestration 0 124,327 0 96,050 0 96,690 0 640 0 0.67%

Forfeiture Revenue 0 497,096 0 453,000 0 429,000 0 (24,000) 0 -5.30%

Recovery from Prior Years 0 41,622 0 40,000 0 30,000 0 (10,000) 0 -25.00%

Unobligated Balances from Prior Years 0 1,034,832 0 668,529 0 355,158 0 (313,371) 0 -46.87%

Total Revenue/Offsetting Collections $2,592,807 $2,269,579 $1,907,848 ($361,731) -15.94%

Expenses/Obligations

Asset Forfeiture

Mandatory1 25 $479,446 26 $489,833 26 $450,000 0 ($39,833) 0 -8.13%

Secretary's Enforcement Fund 0 7,014 0 25,898 0 10,000 0 (15,898) 0 -61.39%

Strategic Support2 0 39,768 0 TBD 0 TBD 0 NA 0 NA

Total Expenses/Obligations 25 $526,228 26 $515,731 26 $460,000 0 ($55,731) 0 -10.81%

Rescissions/Cancellations

Sequestration Reduction 3 0 (96,050) 0 (96,690) 0 0 0 96,690 0 -100.00%

Temporary Rescission 0 (988,000) 0 (988,000) 0 0 0 988,000 0 -100.00%

Permanent Cancellation 0 (314,000) 0 (314,000) 0 (400,000) 0 (86,000) 0 27.39%

Total Rescissions/Cancellations ($1,398,050) ($1,398,690) ($400,000) $998,690 -71.40%

Net Results $668,529 $355,158 $1,047,848 $692,690 195.04%

Contingent Liabilities $387,011 $355,000 $350,000 ($5,000) 0 -1.41%

FY 2017 FY 2018 FY 2019 FY 2018 to FY 2019

Actual Estimated4 Estimated $ Change % Change

1 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. 

2 For fiscal years 2018 and 2019, Treasury will revise Strategic Support (formerly known as Super Surplus) based on enacted 

appropriations and submit a plan to Congress if funding is available, once more is known about actual collections and expenses.

3 Treasury will compute the FY 2019 sequestration reduction once the OMB Report to Congress on the Joint Committee 

Sequestration for Fiscal Year 2019 is released. 

4 FY 2018 full-year appropriations were not enacted at the time the budget was prepared; therefore, the budget assumes this 

account is operating under the Continuing Appropriations Act, 2018 (Division D of P.L. 115-56, as amended) and that the 2017 

enacted rescission recurs in FY 2018.
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1.2 – Operating Levels Table

Dollars in Thousands

Treasury Forfeiture Fund FY 2017 FY 2018 FY 2019

Object Classification Actual Estimated Estimated

25.2 - Other services from non-Federal sources $56,124 $60,000 $52,000 

25.3 - Other goods and services from Federal sources 159,125 120,000 104,000

26.0 - Supplies and materials 19 19 15

41.0 - Grants, subsidies, and contributions 200,689 208,729 200,000

43.0 - Interests and dividends 32 30 30

44.0 - Refunds 43,557 64,953 55,955

94.0 - Financial transfers 46,682 62,000 48000

Total Non-Personnel $506,228 $515,731 $460,000 

Total Budgetary Resources $506,228 $515,731 $460,000 

FTE 25 26 26
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D – Appropriations Language and Explanation of Changes

Appropriations Language Explanation of Changes

DEPARTMENT OF THE TREASURY

TREASURY FORFEITURE FUND

(CANCELLATION)

Of the unobligated balances available under this heading, 

$400,000,000 are hereby permanently cancelled not later than 

September 30, 2019.

(INCLUDING RETURN OF FUNDS)

In addition, of amounts in the Treasury Forfeiture Fund, 

$38,800,000 from funds paid to the United States Government by 

BNP Paribas S.A. as part of, or related to, a plea agreement dated 

June 27, 2014, entered into between the Department of Justice and 

BNP Paribas S.A., and subject to a consent order entered by the 

United States District Court for the Southern District of New York 

on May 1, 2015, in United States v. BNPP, No. 14 Cr. 460 

(S.D.N.Y.), are hereby returned to the General Fund of the 

Treasury.

Note.— A full-year 2018 appropriation for this account was not 

enacted at the time the budget was prepared; therefore, the budget 

assumes this account is operating under the Continuing 

Appropriations Act, 2018 (Division D of P.L. 115-56). The 

amounts included for 2018 reflect the annualized level provided by 

the continuing resolution.

P.L. 114-113 rescinded

$3,800,000,000 of the 

$3,838,800,000 forfeited 

by BNP Paribas in 2015 

and prohibited Treasury 

from obligating the 

remaining balance. 

However, the remaining 

balance will remain in 

the Fund unless returned 

to the General Fund.

Return of these funds to 

Treasury is being done 

solely to remove them 

from the Fund’s account, 

but will not count as 

savings because the 

funds are already 

precluded from 

obligation.

E – Legislative Proposals

The Fund has no legislative proposals for FY 2019.
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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

Resource Level FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Actual Actual Actual Actual Actual Estimated Estimated

Expenses/Obligations $908,113 $787,849 $4,360,617 $508,746 $526,228 $515,731 $560,045 

Budget Activity Total $908,113 $787,849 $4,360,617 $508,746 $526,228 $515,731 $560,045 

 Measures FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2017 FY 2018 FY 2019

Actual Actual Actual Actual Actual Target Target Target

Percent of Forfeited Cash 

Proceeds Resulting from 

High-Impact Cases

95.09 86.73 98.25 89.09 81.79 80.00 80.00 80.00

Treasury Forfeiture Fund Budget Activity

Treasury Forfeiture Fund Budget and Performance 

($560,045,000 in obligations from revenue/offsetting collections): 

The Fund continues 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 

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 do the 

greatest damage to criminal organizations while accomplishing the ultimate objective, which is 

to disrupt and dismantle criminal activity. Member law enforcement bureaus participating in the 

Fund have met or exceeded the performance target since FY 2013. However; the performance 

declined from 89.09% to 81.79% from FY 2016 to FY 2017. This is attributable to large 

rescissions which resulted in no Strategic Support funding available to the participating agencies

in FY 2015 and FY 2016. For FY 2018 and FY 2019, 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. 
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With the publication of the Treasury Strategic Plan for FY 2018-2022, Treasury will work in FY 

2018 to baseline its performance against the new strategic objectives. This could result in 

additional changes to performance measures in the FY 2020 Budget.