H. R. 1658

One Hundred Sixth Congress

of the

United States of America

AT THE SECOND SESSION

Begun and held at the City of Washington on Monday,

the twenty-fourth day of January, two thousand

An Act

To provide a more just and uniform procedure for Federal civil forfeitures, and

for other purposes.

Be it enacted by the Senate and House of Representatives of

the United States of America in Congress assembled,

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:

‘‘§ 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
H. R. 1658—2

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
H. R. 1658—3

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
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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;
H. R. 1658—5

‘‘(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
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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.
H. R. 1658—7

‘‘(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—
H. R. 1658—8

‘‘(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
H. R. 1658—9

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 three 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.
H. R. 1658—10

(4) FORFEITURES IN CONNECTION WITH SEXUAL EXPLOI- TATION 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:
H. R. 1658—11

‘‘§ 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
H. R. 1658—12

‘‘(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 the 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
H. R. 1658—13

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:

‘‘§ 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;
H. R. 1658—14

‘‘(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.
H. R. 1658—15

‘‘(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 one 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 one

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 two proceedings, without requiring an identity with respect

to any one 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,
H. R. 1658—16

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’’.
H. R. 1658—17

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 SURVEIL- LANCE.—’’ 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 SEI- ZURE.—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
H. R. 1658—18

(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:

‘‘§ 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 the 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:

‘‘§ 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—
H. R. 1658—19

‘‘(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.—
H. R. 1658—20

‘‘(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—
H. R. 1658—21

‘‘(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 VIOLA- TIONS.—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,
H. R. 1658—22

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.
H. R. 1658—23

‘‘(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.’’.
H. R. 1658—24

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 the enactment of this Act.

Speaker of the House of Representatives.

Vice President of the United States and

President of the Senate.