Treasury Forfeiture Fund 

FY 2014 

President’s Budget 

 
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Table of Contents

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

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

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

1B – Vision, Priorities and Context ............................................................................................ 3

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

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

2B – Appropriations Language and Explanation of Changes ..................................................... 6

2C – Legislative Proposals.......................................................................................................... 6

Section 3 – Budget and Performance Plan ................................................................................. 7

3A – Asset Forfeiture Fund......................................................................................................... 7

3.1.1 – Asset Forfeiture Fund Budget and Performance Plan..................................................... 8

Section 4 – Supplemental Information ........................................................................................ 9

4A – Summary of Capital Investments ....................................................................................... 9
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Section 1 – Purpose

1A – Mission Statement

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

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

Forfeiture Fund. 

1.1 – Resource Detail Table

Dollars in Thousands

Treasury Forfeiture Fund FY 2012 FY 2013 FY 2014 Change % Change

Budgetary Resources Actual Estimated Estimated FY 2012 to FY 2014 FY 2012 to FY 2014

FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

Revenue/Offsetting Collections

Interest 0 1,047 0 1,000 0 1,000 0 (47) .00 -4.49%

Restoration of temporary rescission 0 422,600 0 950,000 0 950,000 0 527,400 .00 124.80%

Other Income 0 522,530 0 1,852,100 0 562,500 0 39,970 .00 7.65%

Recovery from Prior Years 0 29,748 0 30,000 0 30,000 0 252 .00 0.85%

Unobligated Balances from Prior Years 0 646,405 0 144,913 0 492,180 0 (154,225) .00 -23.86%

Total Revenue/Offsetting Collections 0 1,622,330 0 2,978,013 0 2,035,680 0 413,350 .00 25.48%

Expenses/Obligations

Asset Forfeiture

Mandatory Obligations 24 406,356 25 1,475,033 25 500,000 1 93,644 4.17% 23.04%

Secretary’s Enforcement Fund 0 42,931 0 15,900 0 16,000 0 (26,931) 0 -62.73%

Super Surplus Obligations 0 78,130 0 44,900 0 200,000* 0 121,870 0 155.98%

Total Expenses/Obligations 24 527,417 25 1,535,833 25 716,000 1 188,583 4.17% 35.76%

Rescissions/Cancellations

Rescission of Unobligated Balances 0 (950,000) 0 (950,000) 0 0 0 950,000 .00 N/A

Cancellation of Unobligated Balances 0 0 0 0 0 (950,000) 0 (950,000) .00 N/A

Total Rescissions/Cancellations 0 (950,000) 0 (950,000) 0 (950,000) 0 0 .00 N/A

Net Results 0 144,913 0 492,180 0 369,680 0 224,767 .00 155.10%

*These estimates are preliminary. Actual spending will depend on actual collections and future decisions on the 

best use of TEOAF resources.

1B – Vision, Priorities and Context

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

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

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

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

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

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

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

Department of Homeland Security, as the result of a longstanding close law enforcement 

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

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

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

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

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

accomplish the ultimate mission of the Fund to disrupt and dismantle criminal enterprises. The 

enhancement of forfeiture activity requires longer more in-depth investigations. To this end, 

TEOAF emphasizes the use of mandatory funding authorities that support large case initiatives 
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including the purchase of evidence and information, joint operations expenses, investigative 

expenses leading to seizure, and asset identification and removal teams. In addition, it is also a 

priority to fund revenue-enhancing projects such as major case funding, database development, 

and computer forensics through the use of the Secretary’s Enforcement Fund or Super Surplus 

funds when available. 

Goals and Relationship to Departmental Goal(s): The goal of the Treasury Forfeiture Fund is 

to support the asset forfeiture programs of member law enforcement bureaus in a manner that 

results in federal law enforcement’s continued and effective use of asset forfeiture as a highimpact law enforcement sanction to punish and deter criminal activity. “High impact” is defined 

as a cash forfeiture equal to or greater than $100,000 in value. 

The Goal of the Treasury Forfeiture Fund relates to Goal #3 of the Department’s Strategic Plan: 

“Protect our National Security through Targeted Financial Actions.” A primary feature of asset 

forfeiture as a criminal sanction is that it disrupts and dismantles criminal syndicates by 

removing their financial assets and, thereby, interfering with or disabling their viability. This 

strategic feature of asset forfeiture relates to the following strategy listed under Goal #3: “Disrupt 

and dismantle the financial networks of those who threaten national security or engage in illicit 

financing.” 

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

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

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

following priorities for mission success: 

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

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

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

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

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

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

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

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

quality of criminal investigations; and 

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

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

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

in FY 2012, representing the forfeiture interests of law enforcement components of the 

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

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

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

justice. 

 

FY 2012: FY 2012 was another successful revenue year for the Treasury Forfeiture Fund with 

income of $553 million from forfeitures, recoveries and interest. Among these forfeitures, 
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several large equitable shares were received from the Department of Justice (DOJ) forfeiture 

fund reflecting the substantial role of Treasury Forfeiture Fund member bureaus in the forfeiture 

of assets by that Department. Shares received in FY 2012 included just under $60 million from 

the Google Inc. forfeiture to DOJ. In total, Google agreed to forfeit $500 million in ill-gotten 

gains for taking advertisements from online Canadian pharmacies; i.e., the shipment of 

prescription drugs from pharmacies outside the United States to customers in the United States 

typically violates the Federal Food, Drug and Cosmetic Act and in the case of controlled 

prescription drugs, the Controlled Substances Act. 

Regarding another equitable share received from the DOJ forfeiture fund in FY 2012, in March 

2010, Wachovia Bank, N.A. entered into a Deferred Prosecution Agreement (DPA) in which the 

bank accepted responsibility for failing to maintain an effective anti-money laundering program. 

Wachovia failed to block Mexican currency exchange houses from laundering billions of dollars, 

including drug-trafficking proceeds, through the bank. Wachovia acknowledged that more than 

$110 million was involved in transactions in accounts in violation of 18 U.S.C. §1956 and 

§1957, and, therefore, the funds were subject to forfeiture to the United States. The Treasury 

Forfeiture Fund’s equitable share from the DOJ forfeiture fund in this case was $34.6 million. 

Forfeiture revenue from these two major cases alone totaled $94.6 million in FY 2012. In 

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

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

the U.S. border into Mexico. 

FY 2013 Plans and Changed Projections since the President’s Budget Submission: TEOAF 

forecasts a continued successful forfeiture program for FY 2013 w ith forfeiture revenue from 

cases and prior year obligation recoveries estimated at $1.883 billion, an increase over the 

revenue projection included in the FY 2013 President’s Budget of $1.300 billion. The FY 2013 

estimate reflects the net of adjustments for major cases projected for FY 2013 and nonrecurring 

cases in FY 2012. 

In addition, the FY 2013 President’s Budget proposed a cancellation of $830 million in 

unobligated balances from the Treasury Forfeiture Fund. This estimate instead shows a $950 

million rescission consistent with the current continuing resolution. 

FY 2014 Plans: TEOAF intends to maintain a dynamic and evolving asset forfeiture program 

that is responsive to the needs of member law enforcement bureaus. At this time, the Treasury 

Forfeiture Fund estimates $593 million in revenue from forfeitures, recoveries and interest in FY 

2014. 
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Section 2 – Budget Adjustments and Appropriation Language 

2.2 – Operating Levels Table 

Dollars in Thousands

Treasury Forfeiture Fund FY 2012 FY 2013 FY 2014

Object Classification Actual Estimated Estimated

25.2 - Other services 162,604 245,733 115,000

25.3 - Other purchases of goods & serv frm Govt accounts 225,756 307,167 143,000

41.0 - Grants, subsidies, and contributions 139,057 982,933 458,000

Total Non-Personnel 527,417 1,535,833 716,000

Total Budgetary Resources $527,417 $1,535,833 $716,000

Budget Activities:

Asset Forfeiture Fund 527,417 1,535,833 716,000

Total Budgetary Resources $527,417 $1,535,833 $716,000

FTE 24 25 25

2B – Appropriations Language and Explanation of Changes 

Appropriations Language Explanation of Changes

DEPARTMENT OF THE TREASURY

TREASURY FORFEITURE FUND

Of the unobligated balances available under this 

heading, $950,000,000, are hereby permanently 

cancelled.

2C – Legislative Proposals 

The Treasury Forfeiture Fund has no legislative proposals for FY 2014. 
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Section 3 – Budget and Performance Plan

3A – Asset Forfeiture Fund

($716,000,000 from revenue/offsetting collections): 

The function of the Treasury Forfeiture Fund (the Fund) is to ensure that resources are managed 

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

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

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

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

Executive Office for Asset Forfeiture. 

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

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

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

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

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

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

Congress. 

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

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

revenue. Physical properties, once forfeited are sold and the proceeds are deposited into the 

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

meeting the expenses of running the Treasury Forfeiture Fund program. 

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

may not exceed revenue in the Fund. 

Types of spending authority of the Fund: The mandatory authority items are generally used 

to meet the operating costs of the Fund, including expenses of storing and maintaining seized and 

forfeited assets, valid liens and mortgages, investigative expenses incurred in pursuing a seizure, 

information and inventory systems, and certain costs of local police agencies incurred in joint 

law enforcement operations. Following seizure, equitable shares are paid to state and local law 

enforcement agencies that contributed to the seizure activity at a level proportionate to their 

involvement. 

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

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

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

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

participating in the Treasury Forfeiture Fund. 
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Super Surplus represents the remaining unobligated balance at the close of the fiscal year after 

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

any federal law enforcement purpose. 

3.1.1 – Asset Forfeiture Fund Budget and Performance Plan

Dollars in Thousands

Asset Forfeiture Fund Budget Activity

Resource Level FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Actual Actual Actual Actual Actual Actual Estimated Estimated

 Revenue/Offsetting Collections $391,512 $597,287 $483,586 $852,078 $590,415 $527,417 $1,535,833 $716,000

Budget Activity Total $391,512 $597,287 $483,586 $852,078 $590,415 $527,417 $1,535,833 $716,000

Measure FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Actual Actual Actual Actual Actual Actual Target Target

Percent of Forfeited Cash 

Proceeds Resulting from HighImpact Cases (%) 

84.18 86.91 87.65 93.11 91.44 76.38 80.0 80.0

Key: N/A - Not in Effect; DISC - Discontinued; B - Baseline

Description of Performance: 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 high impact cases, which are cases resulting in 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, which will help to accomplish the ultimate objective 

of disrupting and dismantling criminal activity. Member law enforcement bureaus participating 

in the Treasury Forfeiture Fund met or exceeded the performance target in eight of the ten fiscal 

years since inception of the measure in FY 2002 through FY 2011. For this reason, the target 

was increased from 75% for fiscal years 2002 through FY 2010 to 80% beginning in FY 2011. 

The Forfeiture Fund maintains a target of 80 percent because some cases may be important to 

pursue, even if they are not high-impact cases and result in deposits of less than $100,000. 

For FY 2012, the member bureaus achieved a 76.38% high impact performance level for the 

fiscal year, missing the new higher target by less than 4 percentages points, and exceeding the 

former target of 75 percent. 

For FY 2013, it is anticipated that member bureaus will reach the target of 80%, although 

financial challenges facing the member bureaus could have a negative impact. See Section 1B 

for a discussion of these issues. 

A target of 80 percent has also been set for this performance measure in FY 2014. 
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Section 4 – Supplemental Information

4A – Summary of Capital Investments

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

A summary of capital investment resources, including major information technology and nontechnology investments is available.