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[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1658 Engrossed Amendment Senate (EAS)]

  
  
  
  
  
  
  
  
  
  

                  In the Senate of the United States,

                                                        March 27, 2000.
    Resolved, That the bill from the House of Representatives (H.R. 
1658) entitled ``An Act to provide a more just and uniform procedure 
for Federal civil forfeitures, and for other purposes.'', do pass with 
the following

                               AMENDMENT:

            Strike out all after the enacting clause and insert:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Civil Asset 
Forfeiture Reform Act of 2000''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Creation of general rules relating to civil forfeiture 
                            proceedings.
Sec. 3. Compensation for damage to seized property.
Sec. 4. Attorney fees, costs, and interest.
Sec. 5. Seizure warrant requirement.
Sec. 6. Use of forfeited funds to pay restitution to crime victims.
Sec. 7. Civil forfeiture of real property.
Sec. 8. Stay of civil forfeiture case.
Sec. 9. Civil restraining orders.
Sec. 10. Cooperation among Federal prosecutors.
Sec. 11. Statute of limitations for civil forfeiture actions.
Sec. 12. Destruction or removal of property to prevent seizure.
Sec. 13. Fungible property in bank accounts.
Sec. 14. Fugitive disentitlement.
Sec. 15. Enforcement of foreign forfeiture judgment.
Sec. 16. Encouraging use of criminal forfeiture as an alternative to 
                            civil forfeiture.
Sec. 17. Access to records in bank secrecy jurisdictions
Sec. 18. Application to alien smuggling offenses.
Sec. 19. Enhanced visibility of the asset forfeiture program.
Sec. 20. Proceeds.
Sec. 21. Effective date.

SEC. 2. CREATION OF GENERAL RULES RELATING TO CIVIL FORFEITURE 
              PROCEEDINGS.

    (a) In General.--Chapter 46 of title 18, United States Code, is 
amended by inserting after section 982 the following:
``Sec. 983. General rules for civil forfeiture proceedings
    ``(a) Notice; Claim; Complaint.--
            ``(1)(A)(i) Except as provided in clauses (ii) through (v), 
        in any nonjudicial civil forfeiture proceeding under a civil 
        forfeiture statute, with respect to which the Government is 
        required to send written notice to interested parties, such 
        notice shall be sent in a manner to achieve proper notice as 
        soon as practicable, and in no case more than 60 days after the 
        date of the seizure.
            ``(ii) No notice is required if, before the 60-day period 
        expires, the Government files a civil judicial forfeiture 
        action against the property and provides notice of that action 
        as required by law.
            ``(iii) If, before the 60-day period expires, the 
        Government does not file a civil judicial forfeiture action, 
        but does obtain a criminal indictment containing an allegation 
        that the property is subject to forfeiture, the government 
        shall either--
                    ``(I) send notice within the 60 days and continue 
                the nonjudicial civil forfeiture proceeding under this 
                section; or
                    ``(II) terminate the nonjudicial civil forfeiture 
                proceeding, and take the steps necessary to preserve 
                its right to maintain custody of the property as 
                provided in the applicable criminal forfeiture statute.
            ``(iv) In a case in which the property is seized by a State 
        or local law enforcement agency and turned over to a Federal 
        law enforcement agency for the purpose of forfeiture under 
        Federal law, notice shall be sent not more than 90 days after 
        the date of seizure by the State or local law enforcement 
        agency.
            ``(v) If the identity or interest of a party is not 
        determined until after the seizure or turnover but is 
        determined before a declaration of forfeiture is entered, 
        notice shall be sent to such interested party not later than 60 
        days after the determination by the Government of the identity 
        of the party or the party's interest.
            ``(B) A supervisory official in the headquarters office of 
        the seizing agency may extend the period for sending notice 
        under subparagraph (A) for a period not to exceed 30 days 
        (which period may not be further extended except by a court), 
        if the official determines that the conditions in subparagraph 
        (D) are present.
            ``(C) Upon motion by the Government, a court may extend the 
        period for sending notice under subparagraph (A) for a period 
        not to exceed 60 days, which period may be further extended by 
        the court for 60-day periods, as necessary, if the court 
        determines, based on a written certification of a supervisory 
        official in the headquarters office of the seizing agency, that 
        the conditions in subparagraph (D) are present.
            ``(D) The period for sending notice under this paragraph 
        may be extended only if there is reason to believe that notice 
        may have an adverse result, including--
                    ``(i) endangering the life or physical safety of an 
                individual;
                    ``(ii) flight from prosecution;
                    ``(iii) destruction of or tampering with evidence;
                    ``(iv) intimidation of potential witnesses; or
                    ``(v) otherwise seriously jeopardizing an 
                investigation or unduly delaying a trial.
            ``(E) Each of the Federal seizing agencies conducting 
        nonjudicial forfeitures under this section shall report 
        periodically to the Committees on the Judiciary of the House of 
        Representatives and the Senate the number of occasions when an 
        extension of time is granted under subparagraph (B).
            ``(F) If the Government does not send notice of a seizure 
        of property in accordance with subparagraph (A) to the person 
        from whom the property was seized, and no extension of time is 
        granted, the Government shall return the property to that 
        person without prejudice to the right of the Government to 
        commence a forfeiture proceeding at a later time. The 
        Government shall not be required to return contraband or other 
        property that the person from whom the property was seized may 
        not legally possess.
            ``(2)(A) Any person claiming property seized in a 
        nonjudicial civil forfeiture proceeding under a civil 
        forfeiture statute may file a claim with the appropriate 
        official after the seizure.
            ``(B) A claim under subparagraph (A) may be filed not later 
        than the deadline set forth in a personal notice letter (which 
        deadline may be not earlier than 35 days after the date the 
        letter is mailed), except that if that letter is not received, 
        then a claim may be filed not later than 30 days after the date 
        of final publication of notice of seizure.
            ``(C) A claim shall--
                    ``(i) identify the specific property being claimed;
                    ``(ii) state the claimant's interest in such 
                property (and provide customary documentary evidence of 
                such interest if available) and state that the claim is 
                not frivolous; and
                    ``(iii) be made under oath, subject to penalty of 
                perjury.
            ``(D) A claim need not be made in any particular form. Each 
        Federal agency conducting nonjudicial forfeitures under this 
        section shall make claim forms generally available on request, 
        which forms shall be written in easily understandable language.
            ``(E) Any person may make a claim under subparagraph (A) 
        without posting bond with respect to the property which is the 
        subject of the claim.
            ``(3)(A) Not later than 90 days after a claim has been 
        filed, the Government shall file a complaint for forfeiture in 
        the manner set forth in the Supplemental Rules for Certain 
        Admiralty and Maritime Claims or return the property pending 
        the filing of a complaint, except that a court in the district 
        in which the complaint will be filed may extend the period for 
        filing a complaint for good cause shown or upon agreement of 
        the parties.
            ``(B) If the Government does not--
                    ``(i) file a complaint for forfeiture or return the 
                property, in accordance with subparagraph (A); or
                    ``(ii) before the time for filing a complaint has 
                expired--
                            ``(I) obtain a criminal indictment 
                        containing an allegation that the property is 
                        subject to forfeiture; and
                            ``(II) take the steps necessary to preserve 
                        its right to maintain custody of the property 
                        as provided in the applicable criminal 
                        forfeiture statute,
        the Government shall promptly release the property pursuant to 
        regulations promulgated by the Attorney General, and may not 
        take any further action to effect the civil forfeiture of such 
        property in connection with the underlying offense.
            ``(C) In lieu of, or in addition to, filing a civil 
        forfeiture complaint, the Government may include a forfeiture 
        allegation in a criminal indictment. If criminal forfeiture is 
        the only forfeiture proceeding commenced by the Government, the 
        Government's right to continued possession of the property 
        shall be governed by the applicable criminal forfeiture 
        statute.
            ``(D) No complaint may be dismissed on the ground that the 
        Government did not have adequate evidence at the time the 
        complaint was filed to establish the forfeitability of the 
        property.
            ``(4)(A) In any case in which the Government files in the 
        appropriate United States district court a complaint for 
        forfeiture of property, any person claiming an interest in the 
        seized property may file a claim asserting such person's 
        interest in the property in the manner set forth in the 
        Supplemental Rules for Certain Admiralty and Maritime Claims, 
        except that such claim may be filed not later than 30 days 
        after the date of service of the Government's complaint or, as 
        applicable, not later than 30 days after the date of final 
        publication of notice of the filing of the complaint.
            ``(B) A person asserting an interest in seized property, in 
        accordance with subparagraph (A), shall file an answer to the 
        Government's complaint for forfeiture not later than 20 days 
        after the date of the filing of the claim.
    ``(b) Representation.--
            ``(1)(A) If a person with standing to contest the 
        forfeiture of property in a judicial civil forfeiture 
        proceeding under a civil forfeiture statute is financially 
        unable to obtain representation by counsel, and the person is 
        represented by counsel appointed under section 3006A of this 
        title in connection with a related criminal case, the court may 
        authorize counsel to represent that person with respect to the 
        claim.
            ``(B) In determining whether to authorize counsel to 
        represent a person under subparagraph (A), the court shall take 
        into account such factors as--
                    ``(i) the person's standing to contest the 
                forfeiture; and
                    ``(ii) whether the claim appears to be made in good 
                faith.
            ``(2)(A) If a person with standing to contest the 
        forfeiture of property in a judicial civil forfeiture 
        proceeding under a civil forfeiture statute is financially 
        unable to obtain representation by counsel, and the property 
        subject to forfeiture is real property that is being used by 
        the person as a primary residence, the court, at the request of 
        the person, shall insure that the person is represented by an 
        attorney for the Legal Services Corporation with respect to the 
        claim.
            ``(B)(i) At appropriate times during a representation under 
        subparagraph (A), the Legal Services Corporation shall submit a 
        statement of reasonable attorney fees and costs to the court.
            ``(ii) The court shall enter a judgment in favor of the 
        Legal Services Corporation for reasonable attorney fees and 
        costs submitted pursuant to clause (i) and treat such judgment 
        as payable under section 2465 of title 28, United States Code, 
        regardless of the outcome of the case.
            ``(3) The court shall set the compensation for 
        representation under this subsection, which shall be equivalent 
        to that provided for court-appointed representation under 
        section 3006A of this title.
    ``(c) Burden of Proof.--In a suit or action brought under any civil 
forfeiture statute for the civil forfeiture of any property--
            ``(1) the burden of proof is on the Government to 
        establish, by a preponderance of the evidence, that the 
        property is subject to forfeiture;
            ``(2) the Government may use evidence gathered after the 
        filing of a complaint for forfeiture to establish, by a 
        preponderance of the evidence, that property is subject to 
        forfeiture; and
            ``(3) if the Government's theory of forfeiture is that the 
        property was used to commit or facilitate the commission of a 
        criminal offense, or was involved in the commission of a 
        criminal offense, the Government shall establish that there was 
        a substantial connection between the property and the offense.
    ``(d) Innocent Owner Defense.--
            ``(1) An innocent owner's interest in property shall not be 
        forfeited under any civil forfeiture statute. The claimant 
        shall have the burden of proving that the claimant is an 
        innocent owner by a preponderance of the evidence.
            ``(2)(A) With respect to a property interest in existence 
        at the time the illegal conduct giving rise to forfeiture took 
        place, the term `innocent owner' means an owner who--
                    ``(i) did not know of the conduct giving rise to 
                forfeiture; or
                    ``(ii) upon learning of the conduct giving rise to 
                the forfeiture, did all that reasonably could be 
                expected under the circumstances to terminate such use 
                of the property.
            ``(B)(i) For the purposes of this paragraph, ways in which 
        a person may show that such person did all that reasonably 
        could be expected may include demonstrating that such person, 
        to the extent permitted by law--
                    ``(I) gave timely notice to an appropriate law 
                enforcement agency of information that led the person 
                to know the conduct giving rise to a forfeiture would 
                occur or has occurred; and
                    ``(II) in a timely fashion revoked or made a good 
                faith attempt to revoke permission for those engaging 
                in such conduct to use the property or took reasonable 
                actions in consultation with a law enforcement agency 
                to discourage or prevent the illegal use of the 
                property.
            ``(ii) A person is not required by this subparagraph to 
        take steps that the person reasonably believes would be likely 
        to subject any person (other than the person whose conduct gave 
        rise to the forfeiture) to physical danger.
            ``(3)(A) With respect to a property interest acquired after 
        the conduct giving rise to the forfeiture has taken place, the 
        term `innocent owner' means a person who, at the time that 
        person acquired the interest in the property--
                    ``(i) was a bona fide purchaser or seller for value 
                (including a purchaser or seller of goods or services 
                for value); and
                    ``(ii) did not know and was reasonably without 
                cause to believe that the property was subject to 
                forfeiture.
            ``(B) An otherwise valid claim under subparagraph (A) shall 
        not be denied on the ground that the claimant gave nothing of 
        value in exchange for the property if--
                    ``(i) the property is the primary residence of the 
                claimant;
                    ``(ii) depriving the claimant of the property would 
                deprive the claimant of the means to maintain 
                reasonable shelter in the community for the claimant 
                and all dependents residing with the claimant;
                    ``(iii) the property is not, and is not traceable 
                to, the proceeds of any criminal offense; and
                    ``(iv) the claimant acquired his or her interest in 
                the property through marriage, divorce, or legal 
                separation, or the claimant was the spouse or legal 
                dependent of a person whose death resulted in the 
                transfer of the property to the claimant through 
                inheritance or probate;
        except that the court shall limit the value of any real 
        property interest for which innocent ownership is recognized 
        under this subparagraph to the value necessary to maintain 
        reasonable shelter in the community for such claimant and all 
        dependents residing with the claimant.
            ``(4) Notwithstanding any provision of this subsection, no 
        person may assert an ownership interest under this subsection 
        in contraband or other property that it is illegal to possess.
            ``(5) If the court determines, in accordance with this 
        section, that an innocent owner has a partial interest in 
        property otherwise subject to forfeiture, or a joint tenancy or 
        tenancy by the entirety in such property, the court may enter 
        an appropriate order--
                    ``(A) severing the property;
                    ``(B) transferring the property to the Government 
                with a provision that the Government compensate the 
                innocent owner to the extent of his or her ownership 
                interest once a final order of forfeiture has been 
                entered and the property has been reduced to liquid 
                assets; or
                    ``(C) permitting the innocent owner to retain the 
                property subject to a lien in favor of the Government 
                to the extent of the forfeitable interest in the 
                property.
            ``(6) In this subsection, the term `owner'--
                    ``(A) means a person with an ownership interest in 
                the specific property sought to be forfeited, including 
                a leasehold, lien, mortgage, recorded security 
                interest, or valid assignment of an ownership interest; 
                and
                    ``(B) does not include--
                            ``(i) a person with only a general 
                        unsecured interest in, or claim against, the 
                        property or estate of another;
                            ``(ii) a bailee unless the bailor is 
                        identified and the bailee shows a colorable 
                        legitimate interest in the property seized; or
                            ``(iii) a nominee who exercises no dominion 
                        or control over the property.
    ``(e) Motion To Set Aside Forfeiture.--
            ``(1) Any person entitled to written notice in any 
        nonjudicial civil forfeiture proceeding under a civil 
        forfeiture statute who does not receive such notice may file a 
        motion to set aside a declaration of forfeiture with respect to 
        that person's interest in the property, which motion shall be 
        granted if--
                    ``(A) the Government knew, or reasonably should 
                have known, of the moving party's interest and failed 
                to take reasonable steps to provide such party with 
                notice; and
                    ``(B) the moving party did not know or have reason 
                to know of the seizure within sufficient time to file a 
                timely claim.
            ``(2)(A) Notwithstanding the expiration of any applicable 
        statute of limitations, if the court grants a motion under 
        paragraph (1), the court shall set aside the declaration of 
        forfeiture as to the interest of the moving party without 
        prejudice to the right of the Government to commence a 
        subsequent forfeiture proceeding as to the interest of the 
        moving party.
            ``(B) Any proceeding described in subparagraph (A) shall be 
        commenced--
                    ``(i) if nonjudicial, within 60 days of the entry 
                of the order granting the motion; or
                    ``(ii) if judicial, within 6 months of the entry of 
                the order granting the motion.
            ``(3) A motion under paragraph (1) may be filed not later 
        than 5 years after the date of final publication of notice of 
        seizure of the property.
            ``(4) If, at the time a motion made under paragraph (1) is 
        granted, the forfeited property has been disposed of by the 
        Government in accordance with law, the Government may institute 
        proceedings against a substitute sum of money equal to the 
        value of the moving party's interest in the property at the 
        time the property was disposed of.
            ``(5) A motion filed under this subsection shall be the 
        exclusive remedy for seeking to set aside a declaration of 
        forfeiture under a civil forfeiture statute.
    ``(f) Release Of Seized Property.--
            ``(1) A claimant under subsection (a) is entitled to 
        immediate release of seized property if--
                    ``(A) the claimant has a possessory interest in the 
                property;
                    ``(B) the claimant has sufficient ties to the 
                community to provide assurance that the property will 
                be available at the time of the trial;
                    ``(C) the continued possession by the Government 
                pending the final disposition of forfeiture proceedings 
                will cause substantial hardship to the claimant, such 
                as preventing the functioning of a business, preventing 
                an individual from working, or leaving an individual 
                homeless;
                    ``(D) the claimant's likely hardship from the 
                continued possession by the Government of the seized 
                property outweighs the risk that the property will be 
                destroyed, damaged, lost, concealed, or transferred if 
                it is returned to the claimant during the pendency of 
                the proceeding; and
                    ``(E) none of the conditions set forth in paragraph 
                (8) applies.
            ``(2) A claimant seeking release of property under this 
        subsection must request possession of the property from the 
        appropriate official, and the request must set forth the basis 
        on which the requirements of paragraph (1) are met.
            ``(3)(A) If not later than 15 days after the date of a 
        request under paragraph (2) the property has not been released, 
        the claimant may file a petition in the district court in which 
        the complaint has been filed or, if no complaint has been 
        filed, in the district court in which the seizure warrant was 
        issued or in the district court for the district in which the 
        property was seized.
            ``(B) The petition described in subparagraph (A) shall set 
        forth--
                    ``(i) the basis on which the requirements of 
                paragraph (1) are met; and
                    ``(ii) the steps the claimant has taken to secure 
                release of the property from the appropriate official.
            ``(4) If the Government establishes that the claimant's 
        claim is frivolous, the court shall deny the petition. In 
        responding to a petition under this subsection on other 
        grounds, the Government may in appropriate cases submit 
        evidence ex parte in order to avoid disclosing any matter that 
        may adversely affect an ongoing criminal investigation or 
        pending criminal trial.
            ``(5) The court shall render a decision on a petition filed 
        under paragraph (3) not later than 30 days after the date of 
        the filing, unless such 30-day limitation is extended by 
        consent of the parties or by the court for good cause shown.
            ``(6) If--
                    ``(A) a petition is filed under paragraph (3); and
                    ``(B) the claimant demonstrates that the 
                requirements of paragraph (1) have been met;
        the district court shall order that the property be returned to 
        the claimant, pending completion of proceedings by the 
        Government to obtain forfeiture of the property.
            ``(7) If the court grants a petition under paragraph (3)--
                    ``(A) the court may enter any order necessary to 
                ensure that the value of the property is maintained 
                while the forfeiture action is pending, including--
                            ``(i) permitting the inspection, 
                        photographing, and inventory of the property;
                            ``(ii) fixing a bond in accordance with 
                        rule E(5) of the Supplemental Rules for Certain 
                        Admiralty and Maritime Claims; and
                            ``(iii) requiring the claimant to obtain or 
                        maintain insurance on the subject property; and
                    ``(B) the Government may place a lien against the 
                property or file a lis pendens to ensure that the 
                property is not transferred to another person.
            ``(8) This subsection shall not apply if the seized 
        property--
                    ``(A) is contraband, currency, or other monetary 
                instrument, or electronic funds unless such currency or 
                other monetary instrument or electronic funds 
                constitutes the assets of a legitimate business which 
                has been seized;
                    ``(B) is to be used as evidence of a violation of 
                the law;
                    ``(C) by reason of design or other characteristic, 
                is particularly suited for use in illegal activities; 
                or
                    ``(D) is likely to be used to commit additional 
                criminal acts if returned to the claimant.
    ``(g) Proportionality.--
            ``(1) The claimant under subsection (a)(4) may petition the 
        court to determine whether the forfeiture was constitutionally 
        excessive.
            ``(2) In making this determination, the court shall compare 
        the forfeiture to the gravity of the offense giving rise to the 
        forfeiture.
            ``(3) The claimant shall have the burden of establishing 
        that the forfeiture is grossly disproportional by a 
        preponderance of the evidence at a hearing conducted by the 
        court without a jury.
            ``(4) If the court finds that the forfeiture is grossly 
        disproportional to the offense it shall reduce or eliminate the 
        forfeiture as necessary to avoid a violation of the Excessive 
        Fines Clause of the Eighth Amendment of the Constitution.
    ``(h) Civil Fine.--
            ``(1) In any civil forfeiture proceeding under a civil 
        forfeiture statute in which the Government prevails, if the 
        court finds that the claimant's assertion of an interest in the 
        property was frivolous, the court may impose a civil fine on 
        the claimant of an amount equal to 10 percent of the value of 
        the forfeited property, but in no event shall the fine be less 
        than $250 or greater than $5,000.
            ``(2) Any civil fine imposed under this subsection shall 
        not preclude the court from imposing sanctions under rule 11 of 
        the Federal Rules of Civil Procedure.
            ``(3) In addition to the limitations of section 1915 of 
        title 28, United States Code, in no event shall a prisoner file 
        a claim under a civil forfeiture statute or appeal a judgment 
        in a civil action or proceeding based on a civil forfeiture 
        statute if the prisoner has, on 3 or more prior occasions, 
        while incarcerated or detained in any facility, brought an 
        action or appeal in a court of the United States that was 
        dismissed on the grounds that it is frivolous or malicious, 
        unless the prisoner shows extraordinary and exceptional 
        circumstances.
    ``(i) Civil Forfeiture Statute Defined.--In this section, the term 
`civil forfeiture statute'--
            ``(1) means any provision of Federal law providing for the 
        forfeiture of property other than as a sentence imposed upon 
        conviction of a criminal offense; and
            ``(2) does not include--
                    ``(A) the Tariff Act of 1930 or any other provision 
                of law codified in title 19;
                    ``(B) the Internal Revenue Code of 1986;
                    ``(C) the Federal Food, Drug, and Cosmetic Act (21 
                U.S.C. 301 et seq.);
                    ``(D) the Trading with the Enemy Act (50 U.S.C. 
                App. 1 et seq.); or
                    ``(E) section 1 of title VI of the Act of June 15, 
                1917 (40 Stat. 233; 22 U.S.C. 401).''.
    (b) Technical and Conforming Amendment.--The analysis for chapter 
46 of title 18, United States Code, is amended by inserting after the 
item relating to section 982 the following:

``983. General rules for civil forfeiture proceedings.''.
    (c) Striking Superseded Provisions.--
            (1) Civil forfeiture.--Section 981(a) of title 18, United 
        States Code, is amended--
                    (A) in paragraph (1), by striking ``Except as 
                provided in paragraph (2), the'' and inserting ``The''; 
                and
                    (B) by striking paragraph (2).
            (2) Drug forfeitures.--Paragraphs (4), (6) and (7) of 
        section 511(a) of the Controlled Substances Act (21 U.S.C. 
        881(a) (4), (6) and (7)) are each amended by striking ``, 
        except that'' and all that follows before the period at the 
        end.
            (3) Automobiles.--Section 518 of the Controlled Substances 
        Act (21 U.S.C. 888) is repealed.
            (4) Forfeitures in connection with sexual exploitation of 
        children.--Paragraphs (2) and (3) of section 2254(a) of title 
        18, United States Code, are each amended by striking ``, except 
        that'' and all that follows before the period at the end.
    (d) Legal Services Corporation Representation.--Section 1007(a) of 
the Legal Services Corporation Act (42 U.S.C. 2996f(a)) is amended--
            (1) in paragraph (9), by striking ``and'' after the 
        semicolon;
            (2) In paragraph (10), by striking the period and inserting 
        ``; and''; and
            (3) by adding at the end the following:
            ``(11) ensure that an indigent individual whose primary 
        residence is subject to civil forfeiture is represented by an 
        attorney for the Corporation in such civil action.''

SEC. 3. COMPENSATION FOR DAMAGE TO SEIZED PROPERTY.

    (a) Tort Claims Act.--Section 2680(c) of title 28, United States 
Code, is amended--
            (1) by striking ``any goods or merchandise'' and inserting 
        ``any goods, merchandise, or other property'';
            (2) by striking ``law-enforcement'' and inserting ``law 
        enforcement''; and
            (3) by inserting before the period at the end the 
        following: ``, except that the provisions of this chapter and 
        section 1346(b) of this title apply to any claim based on 
        injury or loss of goods, merchandise, or other property, while 
        in the possession of any officer of customs or excise or any 
        other law enforcement officer, if--
            ``(1) the property was seized for the purpose of forfeiture 
        under any provision of Federal law providing for the forfeiture 
        of property other than as a sentence imposed upon conviction of 
        a criminal offense;
            ``(2) the interest of the claimant was not forfeited;
            ``(3) the interest of the claimant was not remitted or 
        mitigated (if the property was subject to forfeiture); and
            ``(4) the claimant was not convicted of a crime for which 
        the interest of the claimant in the property was subject to 
        forfeiture under a Federal criminal forfeiture law.''.
    (b) Department of Justice.--
            (1) In general.--With respect to a claim that cannot be 
        settled under chapter 171 of title 28, United States Code, the 
        Attorney General may settle, for not more than $50,000 in any 
        case, a claim for damage to, or loss of, privately owned 
        property caused by an investigative or law enforcement officer 
        (as defined in section 2680(h) of title 28, United States Code) 
        who is employed by the Department of Justice acting within the 
        scope of his or her employment.
            (2) Limitations.--The Attorney General may not pay a claim 
        under paragraph (1) that--
                    (A) is presented to the Attorney General more than 
                1 year after it accrues; or
                    (B) is presented by an officer or employee of the 
                Federal Government and arose within the scope of 
                employment.

SEC. 4. ATTORNEY FEES, COSTS, AND INTEREST.

    (a) In general.--Section 2465 of title 28, United States Code, is 
amended to read as follows:
``Sec. 2465. Return of property to claimant; liability for wrongful 
              seizure; attorney fees, costs, and interest
    ``(a) Upon the entry of a judgment for the claimant in any 
proceeding to condemn or forfeit property seized or arrested under any 
provision of Federal law--
            ``(1) such property shall be returned forthwith to the 
        claimant or his agent; and
            ``(2) if it appears that there was reasonable cause for the 
        seizure or arrest, the court shall cause a proper certificate 
        thereof to be entered and, in such case, neither the person who 
        made the seizure or arrest nor the prosecutor shall be liable 
        to suit or judgment on account of such suit or prosecution, nor 
        shall the claimant be entitled to costs, except as provided in 
        subsection (b).
    ``(b)(1) Except as provided in paragraph (2), in any civil 
proceeding to forfeit property under any provision of Federal law in 
which the claimant substantially prevails, the United States shall be 
liable for--
            ``(A) reasonable attorney fees and other litigation costs 
        reasonably incurred by the claimant;
            ``(B) post-judgment interest, as set forth in section 1961 
        of this title; and
            ``(C) in cases involving currency, other negotiable 
        instruments, or the proceeds of an interlocutory sale--
                    ``(i) interest actually paid to the United States 
                from the date of seizure or arrest of the property that 
                resulted from the investment of the property in an 
                interest-bearing account or instrument; and
                    ``(ii) an imputed amount of interest that such 
                currency, instruments, or proceeds would have earned at 
                the rate applicable to the 30-day Treasury Bill, for 
                any period during which no interest was paid (not 
                including any period when the property reasonably was 
                in use as evidence in an official proceeding or in 
                conducting scientific tests for the purpose of 
                collecting evidence), commencing 15 days after the 
                property was seized by a Federal law enforcement 
                agency, or was turned over to a Federal law enforcement 
                agency by a State or local law enforcement agency.
            ``(2)(A) The United States shall not be required to 
        disgorge the value of any intangible benefits nor make any 
        other payments to the claimant not specifically authorized by 
        this subsection.
            ``(B) The provisions of paragraph (1) shall not apply if 
        the claimant is convicted of a crime for which the interest of 
        the claimant in the property was subject to forfeiture under a 
        Federal criminal forfeiture law.
            ``(C) If there are multiple claims to the same property, 
        the United States shall not be liable for costs and attorneys 
        fees associated with any such claim if the United States--
                    ``(i) promptly recognizes such claim;
                    ``(ii) promptly returns the interest of the 
                claimant in the property to the claimant, if the 
                property can be divided without difficulty and there 
                are no competing claims to that portion of the 
                property;
                    ``(iii) does not cause the claimant to incur 
                additional, reasonable costs or fees; and
                    ``(iv) prevails in obtaining forfeiture with 
                respect to one or more of the other claims.
            ``(D) If the court enters judgment in part for the claimant 
        and in part for the Government, the court shall reduce the 
        award of costs and attorney fees accordingly.''.
    (b) Technical and Conforming Amendment.--The analysis for chapter 
163 of title 28, United States Code, is amended by striking the item 
relating to section 2465 and inserting following:

``2465. Return of property to claimant; liability for wrongful seizure; 
                            attorney fees, costs, and interest.''.

SEC. 5. SEIZURE WARRANT REQUIREMENT.

    (a) In General.--Section 981(b) of title 18, United States Code, is 
amended to read as follows:
    ``(b)(1) Except as provided in section 985, any property subject to 
forfeiture to the United States under subsection (a) may be seized by 
the Attorney General and, in the case of property involved in a 
violation investigated by the Secretary of the Treasury or the United 
States Postal Service, the property may also be seized by the Secretary 
of the Treasury or the Postal Service, respectively.
    ``(2) Seizures pursuant to this section shall be made pursuant to a 
warrant obtained in the same manner as provided for a search warrant 
under the Federal Rules of Criminal Procedure, except that a seizure 
may be made without a warrant if--
            ``(A) a complaint for forfeiture has been filed in the 
        United States district court and the court issued an arrest 
        warrant in rem pursuant to the Supplemental Rules for Certain 
        Admiralty and Maritime Claims;
            ``(B) there is probable cause to believe that the property 
        is subject to forfeiture and--
                    ``(i) the seizure is made pursuant to a lawful 
                arrest or search; or
                    ``(ii) another exception to the Fourth Amendment 
                warrant requirement would apply; or
            ``(C) the property was lawfully seized by a State or local 
        law enforcement agency and transferred to a Federal agency.
    ``(3) Notwithstanding the provisions of rule 41(a) of the Federal 
Rules of Criminal Procedure, a seizure warrant may be issued pursuant 
to this subsection by a judicial officer in any district in which a 
forfeiture action against the property may be filed under section 
1355(b) of title 28, and may be executed in any district in which the 
property is found, or transmitted to the central authority of any 
foreign state for service in accordance with any treaty or other 
international agreement. Any motion for the return of property seized 
under this section shall be filed in the district court in which the 
seizure warrant was issued or in the district court for the district in 
which the property was seized.
    ``(4)(A) If any person is arrested or charged in a foreign country 
in connection with an offense that would give rise to the forfeiture of 
property in the United States under this section or under the 
Controlled Substances Act, the Attorney General may apply to any 
Federal judge or magistrate judge in the district in which the property 
is located for an ex parte order restraining the property subject to 
forfeiture for not more than 30 days, except that the time may be 
extended for good cause shown at a hearing conducted in the manner 
provided in rule 43(e) of the Federal Rules of Civil Procedure.
    ``(B) The application for the restraining order shall set forth the 
nature and circumstances of the foreign charges and the basis for 
belief that the person arrested or charged has property in the United 
States that would be subject to forfeiture, and shall contain a 
statement that the restraining order is needed to preserve the 
availability of property for such time as is necessary to receive 
evidence from the foreign country or elsewhere in support of probable 
cause for the seizure of the property under this subsection.''.
    (b) Drug Forfeitures.--Section 511(b) of the Controlled Substances 
Act (21 U.S.C. 881(b)) is amended to read as follows:
    ``(b) Seizure Procedures.--Any property subject to forfeiture to 
the United States under this section may be seized by the Attorney 
General in the manner set forth in section 981(b) of title 18, United 
States Code.''.

SEC. 6. USE OF FORFEITED FUNDS TO PAY RESTITUTION TO CRIME VICTIMS.

    Section 981(e) of title 18, United States Code, is amended by 
striking paragraph (6) and inserting the following:
            ``(6) as restoration to any victim of the offense giving 
        rise to the forfeiture, including, in the case of a money 
        laundering offense, any offense constituting the underlying 
        specified unlawful activity; or''.

SEC. 7. CIVIL FORFEITURE OF REAL PROPERTY.

    (a) In General.--Chapter 46 of title 18, United States Code, is 
amended by inserting after section 984 the following:
``Sec. 985. Civil forfeiture of real property
    ``(a) Notwithstanding any other provision of law, all civil 
forfeitures of real property and interests in real property shall 
proceed as judicial forfeitures.
    ``(b)(1) Except as provided in this section--
                    ``(A) real property that is the subject of a civil 
                forfeiture action shall not be seized before entry of 
                an order of forfeiture; and
                    ``(B) the owners or occupants of the real property 
                shall not be evicted from, or otherwise deprived of the 
                use and enjoyment of, real property that is the subject 
                of a pending forfeiture action.
            ``(2) The filing of a lis pendens and the execution of a 
        writ of entry for the purpose of conducting an inspection and 
        inventory of the property shall not be considered a seizure 
        under this subsection.
    ``(c)(1) The Government shall initiate a civil forfeiture action 
against real property by--
            ``(A) filing a complaint for forfeiture;
            ``(B) posting a notice of the complaint on the property; 
        and
            ``(C) serving notice on the property owner, along with a 
        copy of the complaint.
    ``(2) If the property owner cannot be served with the notice under 
paragraph (1) because the owner--
            ``(A) is a fugitive;
            ``(B) resides outside the United States and efforts at 
        service pursuant to rule 4 of the Federal Rules of Civil 
        Procedure are unavailing; or
            ``(C) cannot be located despite the exercise of due 
        diligence,
constructive service may be made in accordance with the laws of the 
State in which the property is located.
    ``(3) If real property has been posted in accordance with this 
subsection, it shall not be necessary for the court to issue an arrest 
warrant in rem, or to take any other action to establish in rem 
jurisdiction over the property.
    ``(d)(1) Real property may be seized prior to the entry of an order 
of forfeiture if--
            ``(A) the Government notifies the court that it intends to 
        seize the property before trial; and
            ``(B) the court--
                    ``(i) issues a notice of application for warrant, 
                causes the notice to be served on the property owner 
                and posted on the property, and conducts a hearing in 
                which the property owner has a meaningful opportunity 
                to be heard; or
                    ``(ii) makes an ex parte determination that there 
                is probable cause for the forfeiture and that there are 
                exigent circumstances that permit the Government to 
                seize the property without prior notice and an 
                opportunity for the property owner to be heard.
    ``(2) For purposes of paragraph (1)(B)(ii), to establish exigent 
circumstances, the Government shall show that less restrictive measures 
such as a lis pendens, restraining order, or bond would not suffice to 
protect the Government's interests in preventing the sale, destruction, 
or continued unlawful use of the real property.
    ``(e) If the court authorizes a seizure of real property under 
subsection (d)(1)(B)(ii), it shall conduct a prompt post-seizure 
hearing during which the property owner shall have an opportunity to 
contest the basis for the seizure.
    ``(f) This section--
            ``(1) applies only to civil forfeitures of real property 
        and interests in real property;
            ``(2) does not apply to forfeitures of the proceeds of the 
        sale of such property or interests, or of money or other assets 
        intended to be used to acquire such property or interests; and
            ``(3) shall not affect the authority of the court to enter 
        a restraining order relating to real property.''.
    (b) Technical and Conforming Amendment.--The analysis for chapter 
46 of title 18, United States Code, is amended by inserting after the 
item relating to section 984 the following:

``985. Civil forfeiture of real property.''.

SEC. 8. STAY OF CIVIL FORFEITURE CASE.

    (a) In General.--Section 981(g) of title 18, United States Code, is 
amended to read as follows:
    ``(g)(1) Upon the motion of the United States, the court shall stay 
the civil forfeiture proceeding if the court determines that civil 
discovery will adversely affect the ability of the Government to 
conduct a related criminal investigation or the prosecution of a 
related criminal case.
    ``(2) Upon the motion of a claimant, the court shall stay the civil 
forfeiture proceeding with respect to that claimant if the court 
determines that--
            ``(A) the claimant is the subject of a related criminal 
        investigation or case;
            ``(B) the claimant has standing to assert a claim in the 
        civil forfeiture proceeding; and
            ``(C) continuation of the forfeiture proceeding will burden 
        the right of the claimant against self-incrimination in the 
        related investigation or case.
    ``(3) With respect to the impact of civil discovery described in 
paragraphs (1) and (2), the court may determine that a stay is 
unnecessary if a protective order limiting discovery would protect the 
interest of 1 party without unfairly limiting the ability of the 
opposing party to pursue the civil case. In no case, however, shall the 
court impose a protective order as an alternative to a stay if the 
effect of such protective order would be to allow 1 party to pursue 
discovery while the other party is substantially unable to do so.
    ``(4) In this subsection, the terms `related criminal case' and 
`related criminal investigation' mean an actual prosecution or 
investigation in progress at the time at which the request for the 
stay, or any subsequent motion to lift the stay is made. In determining 
whether a criminal case or investigation is `related' to a civil 
forfeiture proceeding, the court shall consider the degree of 
similarity between the parties, witnesses, facts, and circumstances 
involved in the 2 proceedings, without requiring an identity with 
respect to any 1 or more factors.
    ``(5) In requesting a stay under paragraph (1), the Government may, 
in appropriate cases, submit evidence ex parte in order to avoid 
disclosing any matter that may adversely affect an ongoing criminal 
investigation or pending criminal trial.
    ``(6) Whenever a civil forfeiture proceeding is stayed pursuant to 
this subsection, the court shall enter any order necessary to preserve 
the value of the property or to protect the rights of lienholders or 
other persons with an interest in the property while the stay is in 
effect.
    ``(7) A determination by the court that the claimant has standing 
to request a stay pursuant to paragraph (2) shall apply only to this 
subsection and shall not preclude the Government from objecting to the 
standing of the claimant by dispositive motion or at the time of 
trial.''.
    (b) Drug Forfeitures.--Section 511(i) of the Controlled Substances 
Act (21 U.S.C. 881(i)) is amended to read as follows:
    ``(i) The provisions of section 981(g) of title 18, United States 
Code, regarding the stay of a civil forfeiture proceeding shall apply 
to forfeitures under this section.''.

SEC. 9. CIVIL RESTRAINING ORDERS.

    Section 983 of title 18, United States Code, as added by this Act, 
is amended by adding at the end the following:
    ``(j) Restraining Orders; Protective Orders.--
            ``(1) Upon application of the United States, the court may 
        enter a restraining order or injunction, require the execution 
        of satisfactory performance bonds, create receiverships, 
        appoint conservators, custodians, appraisers, accountants, or 
        trustees, or take any other action to seize, secure, maintain, 
        or preserve the availability of property subject to civil 
        forfeiture--
                    ``(A) upon the filing of a civil forfeiture 
                complaint alleging that the property with respect to 
                which the order is sought is subject to civil 
                forfeiture; or
                    ``(B) prior to the filing of such a complaint, if, 
                after notice to persons appearing to have an interest 
                in the property and opportunity for a hearing, the 
                court determines that--
                            ``(i) there is a substantial probability 
                        that the United States will prevail on the 
                        issue of forfeiture and that failure to enter 
                        the order will result in the property being 
                        destroyed, removed from the jurisdiction of the 
                        court, or otherwise made unavailable for 
                        forfeiture; and
                            ``(ii) the need to preserve the 
                        availability of the property through the entry 
                        of the requested order outweighs the hardship 
                        on any party against whom the order is to be 
                        entered.
            ``(2) An order entered pursuant to paragraph (1)(B) shall 
        be effective for not more than 90 days, unless extended by the 
        court for good cause shown, or unless a complaint described in 
        paragraph (1)(A) has been filed.
            ``(3) A temporary restraining order under this subsection 
        may be entered upon application of the United States without 
        notice or opportunity for a hearing when a complaint has not 
        yet been filed with respect to the property, if the United 
        States demonstrates that there is probable cause to believe 
        that the property with respect to which the order is sought is 
        subject to civil forfeiture and that provision of notice will 
        jeopardize the availability of the property for forfeiture. 
        Such a temporary order shall expire not more than 10 days after 
        the date on which it is entered, unless extended for good cause 
        shown or unless the party against whom it is entered consents 
        to an extension for a longer period. A hearing requested 
        concerning an order entered under this paragraph shall be held 
        at the earliest possible time and prior to the expiration of 
        the temporary order.
            ``(4) The court may receive and consider, at a hearing held 
        pursuant to this subsection, evidence and information that 
        would be inadmissible under the Federal Rules of Evidence.''.

SEC. 10. COOPERATION AMONG FEDERAL PROSECUTORS.

    Section 3322(a) of title 18, United States Code, is amended--
            (1) by striking ``civil forfeiture under section 981 of 
        title 18, United States Code, of property described in section 
        981(a)(1)(C) of such title'' and inserting ``any civil 
        forfeiture provision of Federal law''; and
            (2) by striking ``concerning a banking law violation''.

SEC. 11. STATUTE OF LIMITATIONS FOR CIVIL FORFEITURE ACTIONS.

    Section 621 of the Tariff Act of 1930 (19 U.S.C. 1621) is amended 
by inserting ``, or in the case of forfeiture, within 2 years after the 
time when the involvement of the property in the alleged offense was 
discovered, whichever was later'' after ``within five years after the 
time when the alleged offense was discovered''.

SEC. 12. DESTRUCTION OR REMOVAL OF PROPERTY TO PREVENT SEIZURE.

    Section 2232 of title 18, United States Code, is amended--
            (1) by striking subsections (a) and (b);
            (2) by inserting ``(e) Foreign Intelligence Surveillance.--
        '' before ``Whoever, having knowledge that a Federal officer'';
            (3) by redesignating subsection (c) as subsection (d); and
            (4) by inserting before subsection (d), as redesignated, 
        the following:
    ``(a) Destruction or Removal of Property To Prevent Seizure.--
Whoever, before, during, or after any search for or seizure of property 
by any person authorized to make such search or seizure, knowingly 
destroys, damages, wastes, disposes of, transfers, or otherwise takes 
any action, or knowingly attempts to destroy, damage, waste, dispose 
of, transfer, or otherwise take any action, for the purpose of 
preventing or impairing the Government's lawful authority to take such 
property into its custody or control or to continue holding such 
property under its lawful custody and control, shall be fined under 
this title or imprisoned not more than 5 years, or both.
    ``(b) Impairment of In Rem Jurisdiction.--Whoever, knowing that 
property is subject to the in rem jurisdiction of a United States court 
for purposes of civil forfeiture under Federal law, knowingly and 
without authority from that court, destroys, damages, wastes, disposes 
of, transfers, or otherwise takes any action, or knowingly attempts to 
destroy, damage, waste, dispose of, transfer, or otherwise take any 
action, for the purpose of impairing or defeating the court's 
continuing in rem jurisdiction over the property, shall be fined under 
this title or imprisoned not more than 5 years, or both.
    ``(c) Notice of Search or Execution of Seizure Warrant or Warrant 
of Arrest In Rem.--Whoever, having knowledge that any person authorized 
to make searches and seizures, or to execute a seizure warrant or 
warrant of arrest in rem, in order to prevent the authorized seizing or 
securing of any person or property, gives notice or attempts to give 
notice in advance of the search, seizure, or execution of a seizure 
warrant or warrant of arrest in rem, to any person shall be fined under 
this title or imprisoned not more than 5 years, or both.''.

SEC. 13. FUNGIBLE PROPERTY IN BANK ACCOUNTS.

    (a) In General.--Section 984 of title 18, United States Code, is 
amended--
            (1) by striking subsection (a) and redesignating 
        subsections (b), (c), and (d) as subsections (a), (b), and (c), 
        respectively;
            (2) in subsection (a), as redesignated--
                    (A) by striking ``or other fungible property'' and 
                inserting ``or precious metals''; and
                    (B) in paragraph (2), by striking ``subsection 
                (c)'' and inserting ``subsection (b)'';
            (3) in subsection (c), as redesignated--
                    (A) by striking paragraph (1) and inserting the 
                following: ``(1) Subsection (a) does not apply to an 
                action against funds held by a financial institution in 
                an interbank account unless the account holder 
                knowingly engaged in the offense that is the basis for 
                the forfeiture.''; and
                    (B) in paragraph (2), by striking ``(2) As used in 
                this section, the term'' and inserting the following:
    ``(2) In this subsection--
            ``(A) the term `financial institution' includes a foreign 
        bank (as defined in section 1(b)(7) of the International 
        Banking Act of 1978 (12 U.S.C. 3101(b)(7))); and
            ``(B) the term''; and
            (4) by adding at the end the following:
    ``(d) Nothing in this section may be construed to limit the ability 
of the Government to forfeit property under any provision of law if the 
property involved in the offense giving rise to the forfeiture or 
property traceable thereto is available for forfeiture.''.

SEC. 14. FUGITIVE DISENTITLEMENT.

    (a) In General.--Chapter 163 of title 28, United States Code, is 
amended by adding at the end the following:
``Sec. 2466. Fugitive disentitlement
    ``A judicial officer may disallow a person from using the resources 
of the courts of the United States in furtherance of a claim in any 
related civil forfeiture action or a claim in third party proceedings 
in any related criminal forfeiture action upon a finding that such 
person--
            ``(1) after notice or knowledge of the fact that a warrant 
        or process has been issued for his apprehension, in order to 
        avoid criminal prosecution--
                    ``(A) purposely leaves the jurisdiction of the 
                United States;
                    ``(B) declines to enter or reenter the United 
                States to submit to its jurisdiction; or
                    ``(C) otherwise evades the jurisdiction of the 
                court in which a criminal case is pending against the 
                person; and
            ``(2) is not confined or held in custody in any other 
        jurisdiction for commission of criminal conduct in that 
        jurisdiction.''.
    (b) Conforming Amendment.--The analysis for chapter 163 of title 
28, United States Code, is amended by adding at the end the following:

``2466. Fugitive disentitlement.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to any case pending on or after the date of enactment of this 
Act.

SEC. 15. ENFORCEMENT OF FOREIGN FORFEITURE JUDGMENT.

    (a) In General.--Chapter 163 of title 28, United States Code, is 
amended by adding at the end the following:
``Sec. 2467. Enforcement of foreign judgment
    ``(a) Definitions.--In this section--
            ``(1) the term `foreign nation' means a country that has 
        become a party to the United Nations Convention Against Illicit 
        Traffic in Narcotic Drugs and Psychotropic Substances (referred 
        to in this section as the `United Nations Convention') or a 
        foreign jurisdiction with which the United States has a treaty 
        or other formal international agreement in effect providing for 
        mutual forfeiture assistance; and
            ``(2) the term `forfeiture or confiscation judgment' means 
        a final order of a foreign nation compelling a person or 
        entity--
                    ``(A) to pay a sum of money representing the 
                proceeds of an offense described in Article 3, 
                Paragraph 1, of the United Nations Convention, or any 
                foreign offense described in section 1956(c)(7)(B) of 
                title 18, or property the value of which corresponds to 
                such proceeds; or
                    ``(B) to forfeit property involved in or traceable 
                to the commission of such offense.
    ``(b) Review by Attorney General.--
            ``(1) In general.--A foreign nation seeking to have a 
        forfeiture or confiscation judgment registered and enforced by 
        a district court of the United States under this section shall 
        first submit a request to the Attorney General or the designee 
        of the Attorney General, which request shall include--
                    ``(A) a summary of the facts of the case and a 
                description of the proceedings that resulted in the 
                forfeiture or confiscation judgment;
                    ``(B) certified copy of the forfeiture or 
                confiscation judgment;
                    ``(C) an affidavit or sworn declaration 
                establishing that the defendant received notice of the 
                proceedings in sufficient time to enable the defendant 
                to defend against the charges and that the judgment 
                rendered is in force and is not subject to appeal; and
                    ``(D) such additional information and evidence as 
                may be required by the Attorney General or the designee 
                of the Attorney General.
            ``(2) Certification of request.--The Attorney General or 
        the designee of the Attorney General shall determine whether, 
        in the interest of justice, to certify the request, and such 
        decision shall be final and not subject to either judicial 
        review or review under subchapter II of chapter 5, or chapter 
        7, of title 5 (commonly known as the `Administrative Procedure 
        Act').
    ``(c) Jurisdiction and Venue.--
            ``(1) In general.--If the Attorney General or the designee 
        of the Attorney General certifies a request under subsection 
        (b), the United States may file an application on behalf of a 
        foreign nation in district court of the United States seeking 
        to enforce the foreign forfeiture or confiscation judgment as 
        if the judgment had been entered by a court in the United 
        States.
            ``(2) Proceedings.--In a proceeding filed under paragraph 
        (1)--
                    ``(A) the United States shall be the applicant and 
                the defendant or another person or entity affected by 
                the forfeiture or confiscation judgment shall be the 
                respondent;
                    ``(B) venue shall lie in the district court for the 
                District of Columbia or in any other district in which 
                the defendant or the property that may be the basis for 
                satisfaction of a judgment under this section may be 
                found; and
                    ``(C) the district court shall have personal 
                jurisdiction over a defendant residing outside of the 
                United States if the defendant is served with process 
                in accordance with rule 4 of the Federal Rules of Civil 
                Procedure.
    ``(d) Entry and Enforcement of Judgment.--
            ``(1) In general.--The district court shall enter such 
        orders as may be necessary to enforce the judgment on behalf of 
        the foreign nation unless the court finds that--
                    ``(A) the judgment was rendered under a system that 
                provides tribunals or procedures incompatible with the 
                requirements of due process of law;
                    ``(B) the foreign court lacked personal 
                jurisdiction over the defendant;
                    ``(C) the foreign court lacked jurisdiction over 
                the subject matter;
                    ``(D) the defendant in the proceedings in the 
                foreign court did not receive notice of the proceedings 
                in sufficient time to enable him or her to defend; or
                    ``(E) the judgment was obtained by fraud.
            ``(2) Process.--Process to enforce a judgment under this 
        section shall be in accordance with rule 69(a) of the Federal 
        Rules of Civil Procedure.
    ``(e) Finality of Foreign Findings.--In entering orders to enforce 
the judgment, the court shall be bound by the findings of fact to the 
extent that they are stated in the foreign forfeiture or confiscation 
judgment.
    ``(f) Currency Conversion.--The rate of exchange in effect at the 
time the suit to enforce is filed by the foreign nation shall be used 
in calculating the amount stated in any forfeiture or confiscation 
judgment requiring the payment of a sum of money submitted for 
registration.''.
    (b) Conforming Amendment.--The analysis for chapter 163 of title 
28, United States Code, is amended by adding at the end the following:

``2467. Enforcement of foreign judgment.''.

SEC. 16. ENCOURAGING USE OF CRIMINAL FORFEITURE AS AN ALTERNATIVE TO 
              CIVIL FORFEITURE.

    Section 2461 of title 28, United States Code, is amended by adding 
at the end the following:
  ``(c) If a forfeiture of property is authorized in connection with a 
violation of an Act of Congress, and any person is charged in an 
indictment or information with such violation but no specific statutory 
provision is made for criminal forfeiture upon conviction, the 
Government may include the forfeiture in the indictment or information 
in accordance with the Federal Rules of Criminal Procedure, and upon 
conviction, the court shall order the forfeiture of the property in 
accordance with the procedures set forth in section 413 of the 
Controlled Substances Act (21 U.S.C. 853), other than subsection (d) of 
that section.''.

SEC. 17. ACCESS TO RECORDS IN BANK SECRECY JURISDICTIONS.

    Section 986 of title 18, United States Code, is amended by adding 
at the end the following:
    ``(d) Access to Records in Bank Secrecy Jurisdictions.--
            ``(1) In general.--In any civil forfeiture case, or in any 
        ancillary proceeding in any criminal forfeiture case governed 
        by section 413(n) of the Controlled Substances Act (21 U.S.C. 
        853(n)), in which--
                    ``(A) financial records located in a foreign 
                country may be material--
                            ``(i) to any claim or to the ability of the 
                        Government to respond to such claim; or
                            ``(ii) in a civil forfeiture case, to the 
                        ability of the Government to establish the 
                        forfeitability of the property; and
                    ``(B) it is within the capacity of the claimant to 
                waive the claimant's rights under applicable financial 
                secrecy laws, or to obtain the records so that such 
                records can be made available notwithstanding such 
                secrecy laws;
        the refusal of the claimant to provide the records in response 
        to a discovery request or to take the action necessary 
        otherwise to make the records available shall be grounds for 
        judicial sanctions, up to and including dismissal of the claim 
        with prejudice.
            ``(2) Privilege.--This subsection shall not affect the 
        right of the claimant to refuse production on the basis of any 
        privilege guaranteed by the Constitution of the United States 
        or any other provision of Federal law.''.

SEC. 18. APPLICATION TO ALIEN SMUGGLING OFFENSES.

    (a) Amendment of the Immigration and Nationality Act.--Section 
274(b) of the Immigration and Nationality Act (8 U.S.C. 1324(b)) is 
amended to read as follows:
    ``(b) Seizure and Forfeiture.--
            ``(1) In general.--Any conveyance, including any vessel, 
        vehicle, or aircraft, that has been or is being used in the 
        commission of a violation of subsection (a), the gross proceeds 
        of such violation, and any property traceable to such 
        conveyance or proceeds, shall be seized and subject to 
        forfeiture.
            ``(2) Applicable procedures.--Seizures and forfeitures 
        under this subsection shall be governed by the provisions of 
        chapter 46 of title 18, United States Code, relating to civil 
        forfeitures, including section 981(d) of such title, except 
        that such duties as are imposed upon the Secretary of the 
        Treasury under the customs laws described in that section shall 
        be performed by such officers, agents, and other persons as may 
        be designated for that purpose by the Attorney General.
            ``(3) Prima facie evidence in determinations of 
        violations.--In determining whether a violation of subsection 
        (a) has occurred, any of the following shall be prima facie 
        evidence that an alien involved in the alleged violation had 
        not received prior official authorization to come to, enter, or 
        reside in the United States or that such alien had come to, 
        entered, or remained in the United States in violation of law:
                    ``(A) Records of any judicial or administrative 
                proceeding in which that alien's status was an issue 
                and in which it was determined that the alien had not 
                received prior official authorization to come to, 
                enter, or reside in the United States or that such 
                alien had come to, entered, or remained in the United 
                States in violation of law.
                    ``(B) Official records of the Service or of the 
                Department of State showing that the alien had not 
                received prior official authorization to come to, 
                enter, or reside in the United States or that such 
                alien had come to, entered, or remained in the United 
                States in violation of law.
                    ``(C) Testimony, by an immigration officer having 
                personal knowledge of the facts concerning that alien's 
                status, that the alien had not received prior official 
                authorization to come to, enter, or reside in the 
                United States or that such alien had come to, entered, 
                or remained in the United States in violation of 
                law.''.
    (b) Technical Corrections to Existing Criminal Forfeiture 
Authority.--Section 982(a)(6) of title 18, United States Code, is 
amended--
            (1) in subparagraph (A)--
                    (A) by inserting ``section 274(a), 274A(a)(1), or 
                274A(a)(2) of the Immigration and Nationality Act or'' 
                before ``section 1425'' the first place it appears;
                    (B) in clause (i), by striking ``a violation of, or 
                a conspiracy to violate, subsection (a)'' and inserting 
                ``the offense of which the person is convicted''; and
                    (C) in subclauses (I) and (II) of clause (ii), by 
                striking ``a violation of, or a conspiracy to violate, 
                subsection (a)'' and all that follows through ``of this 
                title'' each place it appears and inserting ``the 
                offense of which the person is convicted'';
            (2) by striking subparagraph (B); and
            (3) in the second sentence--
                    (A) by striking ``The court, in imposing sentence 
                on such person'' and inserting the following:
            ``(B) The court, in imposing sentence on a person described 
        in subparagraph (A)''; and
                    (B) by striking ``this subparagraph'' and inserting 
                ``that subparagraph''.

SEC. 19. ENHANCED VISIBILITY OF THE ASSET FORFEITURE PROGRAM.

    Section 524(c)(6) of title 28, United States Code, is amended to 
read as follows:
    ``(6)(A) The Attorney General shall transmit to Congress and make 
available to the public, not later than 4 months after the end of each 
fiscal year, detailed reports for the prior fiscal year as follows:
            ``(i) A report on total deposits to the Fund by State of 
        deposit.
            ``(ii) A report on total expenses paid from the Fund, by 
        category of expense and recipient agency, including equitable 
        sharing payments.
            ``(iii) A report describing the number, value, and types of 
        properties placed into official use by Federal agencies, by 
        recipient agency.
            ``(iv) A report describing the number, value, and types of 
        properties transferred to State and local law enforcement 
        agencies, by recipient agency.
            ``(v) A report, by type of disposition, describing the 
        number, value, and types of forfeited property disposed of 
        during the year.
            ``(vi) A report on the year-end inventory of property under 
        seizure, but not yet forfeited, that reflects the type of 
        property, its estimated value, and the estimated value of liens 
        and mortgages outstanding on the property.
            ``(vii) A report listing each property in the year-end 
        inventory, not yet forfeited, with an outstanding equity of not 
        less than $1,000,000.
    ``(B) The Attorney General shall transmit to Congress and make 
available to the public, not later than 2 months after final issuance, 
the audited financial statements for each fiscal year for the Fund.
    ``(C) Reports under subparagraph (A) shall include information with 
respect to all forfeitures under any law enforced or administered by 
the Department of Justice.
    ``(D) The transmittal and publication requirements in subparagraphs 
(A) and (B) may be satisfied by--
            ``(i) posting the reports on an Internet website maintained 
        by the Department of Justice for a period of not less than 2 
        years; and
            ``(ii) notifying the Committees on the Judiciary of the 
        House of Representatives and the Senate when the reports are 
        available electronically.''.

SEC. 20. PROCEEDS.

    (a) Forfeiture of Proceeds.--Section 981(a)(1)(C) of title 18, 
United States Code, is amended by striking ``or a violation of section 
1341'' and all that follows and inserting ``or any offense constituting 
`specified unlawful activity' (as defined in section 1956(c)(7) of this 
title), or a conspiracy to commit such offense.''.
    (b) Definition of Proceeds.--Section 981(a) of title 18, United 
States Code, is amended by adding at the end the following:
    ``(2) For purposes of paragraph (1), the term `proceeds' is defined 
as follows:
            ``(A) In cases involving illegal goods, illegal services, 
        unlawful activities, and telemarketing and health care fraud 
        schemes, the term `proceeds' means property of any kind 
        obtained directly or indirectly, as the result of the 
        commission of the offense giving rise to forfeiture, and any 
        property traceable thereto, and is not limited to the net gain 
        or profit realized from the offense.
            ``(B) In cases involving lawful goods or lawful services 
        that are sold or provided in an illegal manner, the term 
        `proceeds' means the amount of money acquired through the 
        illegal transactions resulting in the forfeiture, less the 
        direct costs incurred in providing the goods or services. The 
        claimant shall have the burden of proof with respect to the 
        issue of direct costs. The direct costs shall not include any 
        part of the overhead expenses of the entity providing the goods 
        or services, or any part of the income taxes paid by the 
        entity.
            ``(C) In cases involving fraud in the process of obtaining 
        a loan or extension of credit, the court shall allow the 
        claimant a deduction from the forfeiture to the extent that the 
        loan was repaid, or the debt was satisfied, without any 
        financial loss to the victim.''.

SEC. 21. EFFECTIVE DATE.

    Except as provided in section 14(c), this Act and the amendments 
made by this Act shall apply to any forfeiture proceeding commenced on 
or after the date that is 120 days after the date of enactment of this 
Act.

            Attest:

                                                             Secretary.
106th CONGRESS

  2d Session

                               H. R. 1658

_______________________________________________________________________

                               AMENDMENT

HR 1658 EAS----2
HR 1658 EAS----3
HR 1658 EAS----4
HR 1658 EAS----5
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