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:

1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

2 (a) SHORT TITLE.—This Act may be cited as the

3 ‘‘Civil Asset Forfeiture Reform Act of 2000’’.

4 (b) TABLE OF CONTENTS.—The table of contents for

5 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.
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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.

1 SEC. 2. CREATION OF GENERAL RULES RELATING TO CIVIL

2 FORFEITURE PROCEEDINGS.

3 (a) IN GENERAL.—Chapter 46 of title 18, United

4 States Code, is amended by inserting after section 982 the

5 following:

6 ‘‘§ 983. General rules for civil forfeiture proceedings

7 ‘‘(a) NOTICE; CLAIM; COMPLAINT.—

8 ‘‘(1)(A)(i) Except as provided in clauses (ii)

9 through (v), in any nonjudicial civil forfeiture pro10 ceeding under a civil forfeiture statute, with respect

11 to which the Government is required to send written

12 notice to interested parties, such notice shall be sent

13 in a manner to achieve proper notice as soon as prac14 ticable, and in no case more than 60 days after the

15 date of the seizure.

16 ‘‘(ii) No notice is required if, before the 60-day

17 period expires, the Government files a civil judicial

18 forfeiture action against the property and provides

19 notice of that action as required by law.

20 ‘‘(iii) If, before the 60-day period expires, the

21 Government does not file a civil judicial forfeiture ac-
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1 tion, but does obtain a criminal indictment con2 taining an allegation that the property is subject to

3 forfeiture, the government shall either—

4 ‘‘(I) send notice within the 60 days and

5 continue the nonjudicial civil forfeiture pro6 ceeding under this section; or

7 ‘‘(II) terminate the nonjudicial civil for8 feiture proceeding, and take the steps necessary

9 to preserve its right to maintain custody of the

10 property as provided in the applicable criminal

11 forfeiture statute.

12 ‘‘(iv) In a case in which the property is seized

13 by a State or local law enforcement agency and

14 turned over to a Federal law enforcement agency for

15 the purpose of forfeiture under Federal law, notice

16 shall be sent not more than 90 days after the date of

17 seizure by the State or local law enforcement agency.

18 ‘‘(v) If the identity or interest of a party is not

19 determined until after the seizure or turnover but is

20 determined before a declaration of forfeiture is en21 tered, notice shall be sent to such interested party not

22 later than 60 days after the determination by the

23 Government of the identity of the party or the party’s

24 interest.
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1 ‘‘(B) A supervisory official in the headquarters

2 office of the seizing agency may extend the period for

3 sending notice under subparagraph (A) for a period

4 not to exceed 30 days (which period may not be fur5 ther extended except by a court), if the official deter6 mines that the conditions in subparagraph (D) are

7 present.

8 ‘‘(C) Upon motion by the Government, a court

9 may extend the period for sending notice under sub10 paragraph (A) for a period not to exceed 60 days,

11 which period may be further extended by the court for

12 60-day periods, as necessary, if the court determines,

13 based on a written certification of a supervisory offi14 cial in the headquarters office of the seizing agency,

15 that the conditions in subparagraph (D) are present.

16 ‘‘(D) The period for sending notice under this

17 paragraph may be extended only if there is reason to

18 believe that notice may have an adverse result,

19 including—

20 ‘‘(i) endangering the life or physical safety

21 of an individual;

22 ‘‘(ii) flight from prosecution;

23 ‘‘(iii) destruction of or tampering with evi24 dence;

25 ‘‘(iv) intimidation of potential witnesses; or
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1 ‘‘(v) otherwise seriously jeopardizing an in2 vestigation or unduly delaying a trial.

3 ‘‘(E) Each of the Federal seizing agencies con4 ducting nonjudicial forfeitures under this section shall

5 report periodically to the Committees on the Judici6 ary of the House of Representatives and the Senate

7 the number of occasions when an extension of time is

8 granted under subparagraph (B).

9 ‘‘(F) If the Government does not send notice of

10 a seizure of property in accordance with subpara11 graph (A) to the person from whom the property was

12 seized, and no extension of time is granted, the Gov13 ernment shall return the property to that person

14 without prejudice to the right of the Government to

15 commence a forfeiture proceeding at a later time. The

16 Government shall not be required to return contra17 band or other property that the person from whom the

18 property was seized may not legally possess.

19 ‘‘(2)(A) Any person claiming property seized in

20 a nonjudicial civil forfeiture proceeding under a civil

21 forfeiture statute may file a claim with the appro22 priate official after the seizure.

23 ‘‘(B) A claim under subparagraph (A) may be

24 filed not later than the deadline set forth in a per25 sonal notice letter (which deadline may be not earlier
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1 than 35 days after the date the letter is mailed), ex2 cept that if that letter is not received, then a claim

3 may be filed not later than 30 days after the date of

4 final publication of notice of seizure.

5 ‘‘(C) A claim shall—

6 ‘‘(i) identify the specific property being

7 claimed;

8 ‘‘(ii) state the claimant’s interest in such

9 property (and provide customary documentary

10 evidence of such interest if available) and state

11 that the claim is not frivolous; and

12 ‘‘(iii) be made under oath, subject to pen13 alty of perjury.

14 ‘‘(D) A claim need not be made in any par15 ticular form. Each Federal agency conducting non16 judicial forfeitures under this section shall make

17 claim forms generally available on request, which

18 forms shall be written in easily understandable lan19 guage.

20 ‘‘(E) Any person may make a claim under sub21 paragraph (A) without posting bond with respect to

22 the property which is the subject of the claim.

23 ‘‘(3)(A) Not later than 90 days after a claim has

24 been filed, the Government shall file a complaint for

25 forfeiture in the manner set forth in the Supplemental
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1 Rules for Certain Admiralty and Maritime Claims or

2 return the property pending the filing of a complaint,

3 except that a court in the district in which the com4 plaint will be filed may extend the period for filing

5 a complaint for good cause shown or upon agreement

6 of the parties.

7 ‘‘(B) If the Government does not—

8 ‘‘(i) file a complaint for forfeiture or return

9 the property, in accordance with subparagraph

10 (A); or

11 ‘‘(ii) before the time for filing a complaint

12 has expired—

13 ‘‘(I) obtain a criminal indictment con14 taining an allegation that the property is

15 subject to forfeiture; and

16 ‘‘(II) take the steps necessary to pre17 serve its right to maintain custody of the

18 property as provided in the applicable

19 criminal forfeiture statute,

20 the Government shall promptly release the property

21 pursuant to regulations promulgated by the Attorney

22 General, and may not take any further action to ef23 fect the civil forfeiture of such property in connection

24 with the underlying offense.
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1 ‘‘(C) In lieu of, or in addition to, filing a civil

2 forfeiture complaint, the Government may include a

3 forfeiture allegation in a criminal indictment. If

4 criminal forfeiture is the only forfeiture proceeding

5 commenced by the Government, the Government’s

6 right to continued possession of the property shall be

7 governed by the applicable criminal forfeiture statute.

8 ‘‘(D) No complaint may be dismissed on the

9 ground that the Government did not have adequate

10 evidence at the time the complaint was filed to estab11 lish the forfeitability of the property.

12 ‘‘(4)(A) In any case in which the Government

13 files in the appropriate United States district court

14 a complaint for forfeiture of property, any person

15 claiming an interest in the seized property may file

16 a claim asserting such person’s interest in the prop17 erty in the manner set forth in the Supplemental

18 Rules for Certain Admiralty and Maritime Claims,

19 except that such claim may be filed not later than 30

20 days after the date of service of the Government’s

21 complaint or, as applicable, not later than 30 days

22 after the date of final publication of notice of the fil23 ing of the complaint.

24 ‘‘(B) A person asserting an interest in seized

25 property, in accordance with subparagraph (A), shall
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1 file an answer to the Government’s complaint for for2 feiture not later than 20 days after the date of the fil3 ing of the claim.

4 ‘‘(b) REPRESENTATION.—

5 ‘‘(1)(A) If a person with standing to contest the

6 forfeiture of property in a judicial civil forfeiture pro7 ceeding under a civil forfeiture statute is financially

8 unable to obtain representation by counsel, and the

9 person is represented by counsel appointed under sec10 tion 3006A of this title in connection with a related

11 criminal case, the court may authorize counsel to rep12 resent that person with respect to the claim.

13 ‘‘(B) In determining whether to authorize coun14 sel to represent a person under subparagraph (A), the

15 court shall take into account such factors as—

16 ‘‘(i) the person’s standing to contest the for17 feiture; and

18 ‘‘(ii) whether the claim appears to be made

19 in good faith.

20 ‘‘(2)(A) If a person with standing to contest the

21 forfeiture of property in a judicial civil forfeiture pro22 ceeding under a civil forfeiture statute is financially

23 unable to obtain representation by counsel, and the

24 property subject to forfeiture is real property that is

25 being used by the person as a primary residence, the
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1 court, at the request of the person, shall insure that

2 the person is represented by an attorney for the Legal

3 Services Corporation with respect to the claim.

4 ‘‘(B)(i) At appropriate times during a represen5 tation under subparagraph (A), the Legal Services

6 Corporation shall submit a statement of reasonable

7 attorney fees and costs to the court.

8 ‘‘(ii) The court shall enter a judgment in favor

9 of the Legal Services Corporation for reasonable attor10 ney fees and costs submitted pursuant to clause (i)

11 and treat such judgment as payable under section

12 2465 of title 28, United States Code, regardless of the

13 outcome of the case.

14 ‘‘(3) The court shall set the compensation for

15 representation under this subsection, which shall be

16 equivalent to that provided for court-appointed rep17 resentation under section 3006A of this title.

18 ‘‘(c) BURDEN OF PROOF.—In a suit or action brought

19 under any civil forfeiture statute for the civil forfeiture of

20 any property—

21 ‘‘(1) the burden of proof is on the Government to

22 establish, by a preponderance of the evidence, that the

23 property is subject to forfeiture;

24 ‘‘(2) the Government may use evidence gathered

25 after the filing of a complaint for forfeiture to estab-
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1 lish, by a preponderance of the evidence, that prop2 erty is subject to forfeiture; and

3 ‘‘(3) if the Government’s theory of forfeiture is

4 that the property was used to commit or facilitate the

5 commission of a criminal offense, or was involved in

6 the commission of a criminal offense, the Government

7 shall establish that there was a substantial connection

8 between the property and the offense.

9 ‘‘(d) INNOCENT OWNER DEFENSE.—

10 ‘‘(1) An innocent owner’s interest in property

11 shall not be forfeited under any civil forfeiture stat12 ute. The claimant shall have the burden of proving

13 that the claimant is an innocent owner by a prepon14 derance of the evidence.

15 ‘‘(2)(A) With respect to a property interest in ex16 istence at the time the illegal conduct giving rise to

17 forfeiture took place, the term ‘innocent owner’ means

18 an owner who—

19 ‘‘(i) did not know of the conduct giving rise

20 to forfeiture; or

21 ‘‘(ii) upon learning of the conduct giving

22 rise to the forfeiture, did all that reasonably

23 could be expected under the circumstances to ter24 minate such use of the property.
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1 ‘‘(B)(i) For the purposes of this paragraph, ways

2 in which a person may show that such person did all

3 that reasonably could be expected may include dem4 onstrating that such person, to the extent permitted

5 by law—

6 ‘‘(I) gave timely notice to an appropriate

7 law enforcement agency of information that led

8 the person to know the conduct giving rise to a

9 forfeiture would occur or has occurred; and

10 ‘‘(II) in a timely fashion revoked or made

11 a good faith attempt to revoke permission for

12 those engaging in such conduct to use the prop13 erty or took reasonable actions in consultation

14 with a law enforcement agency to discourage or

15 prevent the illegal use of the property.

16 ‘‘(ii) A person is not required by this subpara17 graph to take steps that the person reasonably believes

18 would be likely to subject any person (other than the

19 person whose conduct gave rise to the forfeiture) to

20 physical danger.

21 ‘‘(3)(A) With respect to a property interest ac22 quired after the conduct giving rise to the forfeiture

23 has taken place, the term ‘innocent owner’ means a

24 person who, at the time that person acquired the in25 terest in the property—
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1 ‘‘(i) was a bona fide purchaser or seller for

2 value (including a purchaser or seller of goods or

3 services for value); and

4 ‘‘(ii) did not know and was reasonably

5 without cause to believe that the property was

6 subject to forfeiture.

7 ‘‘(B) An otherwise valid claim under subpara8 graph (A) shall not be denied on the ground that the

9 claimant gave nothing of value in exchange for the

10 property if—

11 ‘‘(i) the property is the primary residence of

12 the claimant;

13 ‘‘(ii) depriving the claimant of the property

14 would deprive the claimant of the means to

15 maintain reasonable shelter in the community

16 for the claimant and all dependents residing

17 with the claimant;

18 ‘‘(iii) the property is not, and is not trace19 able to, the proceeds of any criminal offense; and

20 ‘‘(iv) the claimant acquired his or her inter21 est in the property through marriage, divorce, or

22 legal separation, or the claimant was the spouse

23 or legal dependent of a person whose death re24 sulted in the transfer of the property to the

25 claimant through inheritance or probate;
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1 except that the court shall limit the value of any real

2 property interest for which innocent ownership is rec3 ognized under this subparagraph to the value nec4 essary to maintain reasonable shelter in the commu5 nity for such claimant and all dependents residing

6 with the claimant.

7 ‘‘(4) Notwithstanding any provision of this sub8 section, no person may assert an ownership interest

9 under this subsection in contraband or other property

10 that it is illegal to possess.

11 ‘‘(5) If the court determines, in accordance with

12 this section, that an innocent owner has a partial in13 terest in property otherwise subject to forfeiture, or a

14 joint tenancy or tenancy by the entirety in such prop15 erty, the court may enter an appropriate order—

16 ‘‘(A) severing the property;

17 ‘‘(B) transferring the property to the Gov18 ernment with a provision that the Government

19 compensate the innocent owner to the extent of

20 his or her ownership interest once a final order

21 of forfeiture has been entered and the property

22 has been reduced to liquid assets; or

23 ‘‘(C) permitting the innocent owner to re24 tain the property subject to a lien in favor of the
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1 Government to the extent of the forfeitable inter2 est in the property.

3 ‘‘(6) In this subsection, the term ‘owner’—

4 ‘‘(A) means a person with an ownership in5 terest in the specific property sought to be for6 feited, including a leasehold, lien, mortgage, re7 corded security interest, or valid assignment of

8 an ownership interest; and

9 ‘‘(B) does not include—

10 ‘‘(i) a person with only a general unse11 cured interest in, or claim against, the

12 property or estate of another;

13 ‘‘(ii) a bailee unless the bailor is iden14 tified and the bailee shows a colorable legiti15 mate interest in the property seized; or

16 ‘‘(iii) a nominee who exercises no do17 minion or control over the property.

18 ‘‘(e) MOTION TO SET ASIDE FORFEITURE.—

19 ‘‘(1) Any person entitled to written notice in any

20 nonjudicial civil forfeiture proceeding under a civil

21 forfeiture statute who does not receive such notice may

22 file a motion to set aside a declaration of forfeiture

23 with respect to that person’s interest in the property,

24 which motion shall be granted if—
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1 ‘‘(A) the Government knew, or reasonably

2 should have known, of the moving party’s inter3 est and failed to take reasonable steps to provide

4 such party with notice; and

5 ‘‘(B) the moving party did not know or

6 have reason to know of the seizure within suffi7 cient time to file a timely claim.

8 ‘‘(2)(A) Notwithstanding the expiration of any

9 applicable statute of limitations, if the court grants a

10 motion under paragraph (1), the court shall set aside

11 the declaration of forfeiture as to the interest of the

12 moving party without prejudice to the right of the

13 Government to commence a subsequent forfeiture pro14 ceeding as to the interest of the moving party.

15 ‘‘(B) Any proceeding described in subparagraph

16 (A) shall be commenced—

17 ‘‘(i) if nonjudicial, within 60 days of the

18 entry of the order granting the motion; or

19 ‘‘(ii) if judicial, within 6 months of the

20 entry of the order granting the motion.

21 ‘‘(3) A motion under paragraph (1) may be filed

22 not later than 5 years after the date of final publica23 tion of notice of seizure of the property.

24 ‘‘(4) If, at the time a motion made under para25 graph (1) is granted, the forfeited property has been
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1 disposed of by the Government in accordance with

2 law, the Government may institute proceedings

3 against a substitute sum of money equal to the value

4 of the moving party’s interest in the property at the

5 time the property was disposed of.

6 ‘‘(5) A motion filed under this subsection shall be

7 the exclusive remedy for seeking to set aside a declara8 tion of forfeiture under a civil forfeiture statute.

9 ‘‘(f) RELEASE OF SEIZED PROPERTY.—

10 ‘‘(1) A claimant under subsection (a) is entitled

11 to immediate release of seized property if—

12 ‘‘(A) the claimant has a possessory interest

13 in the property;

14 ‘‘(B) the claimant has sufficient ties to the

15 community to provide assurance that the prop16 erty will be available at the time of the trial;

17 ‘‘(C) the continued possession by the Gov18 ernment pending the final disposition of for19 feiture proceedings will cause substantial hard20 ship to the claimant, such as preventing the

21 functioning of a business, preventing an indi22 vidual from working, or leaving an individual

23 homeless;

24 ‘‘(D) the claimant’s likely hardship from the

25 continued possession by the Government of the
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1 seized property outweighs the risk that the prop2 erty will be destroyed, damaged, lost, concealed,

3 or transferred if it is returned to the claimant

4 during the pendency of the proceeding; and

5 ‘‘(E) none of the conditions set forth in

6 paragraph (8) applies.

7 ‘‘(2) A claimant seeking release of property

8 under this subsection must request possession of the

9 property from the appropriate official, and the re10 quest must set forth the basis on which the require11 ments of paragraph (1) are met.

12 ‘‘(3)(A) If not later than 15 days after the date

13 of a request under paragraph (2) the property has not

14 been released, the claimant may file a petition in the

15 district court in which the complaint has been filed

16 or, if no complaint has been filed, in the district court

17 in which the seizure warrant was issued or in the dis18 trict court for the district in which the property was

19 seized.

20 ‘‘(B) The petition described in subparagraph (A)

21 shall set forth—

22 ‘‘(i) the basis on which the requirements of

23 paragraph (1) are met; and
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1 ‘‘(ii) the steps the claimant has taken to se2 cure release of the property from the appropriate

3 official.

4 ‘‘(4) If the Government establishes that the

5 claimant’s claim is frivolous, the court shall deny the

6 petition. In responding to a petition under this sub7 section on other grounds, the Government may in ap8 propriate cases submit evidence ex parte in order to

9 avoid disclosing any matter that may adversely affect

10 an ongoing criminal investigation or pending crimi11 nal trial.

12 ‘‘(5) The court shall render a decision on a peti13 tion filed under paragraph (3) not later than 30 days

14 after the date of the filing, unless such 30-day limita15 tion is extended by consent of the parties or by the

16 court for good cause shown.

17 ‘‘(6) If—

18 ‘‘(A) a petition is filed under paragraph

19 (3); and

20 ‘‘(B) the claimant demonstrates that the re21 quirements of paragraph (1) have been met;

22 the district court shall order that the property be re23 turned to the claimant, pending completion of pro24 ceedings by the Government to obtain forfeiture of the

25 property.
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1 ‘‘(7) If the court grants a petition under para2 graph (3)—

3 ‘‘(A) the court may enter any order nec4 essary to ensure that the value of the property is

5 maintained while the forfeiture action is pend6 ing, including—

7 ‘‘(i) permitting the inspection,

8 photographing, and inventory of the prop9 erty;

10 ‘‘(ii) fixing a bond in accordance with

11 rule E(5) of the Supplemental Rules for

12 Certain Admiralty and Maritime Claims;

13 and

14 ‘‘(iii) requiring the claimant to obtain

15 or maintain insurance on the subject prop16 erty; and

17 ‘‘(B) the Government may place a lien

18 against the property or file a lis pendens to en19 sure that the property is not transferred to an20 other person.

21 ‘‘(8) This subsection shall not apply if the seized

22 property—

23 ‘‘(A) is contraband, currency, or other mon24 etary instrument, or electronic funds unless such

25 currency or other monetary instrument or elec-
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1 tronic funds constitutes the assets of a legitimate

2 business which has been seized;

3 ‘‘(B) is to be used as evidence of a violation

4 of the law;

5 ‘‘(C) by reason of design or other char6 acteristic, is particularly suited for use in illegal

7 activities; or

8 ‘‘(D) is likely to be used to commit addi9 tional criminal acts if returned to the claimant.

10 ‘‘(g) PROPORTIONALITY.—

11 ‘‘(1) The claimant under subsection (a)(4) may

12 petition the court to determine whether the forfeiture

13 was constitutionally excessive.

14 ‘‘(2) In making this determination, the court

15 shall compare the forfeiture to the gravity of the of16 fense giving rise to the forfeiture.

17 ‘‘(3) The claimant shall have the burden of estab18 lishing that the forfeiture is grossly disproportional

19 by a preponderance of the evidence at a hearing con20 ducted by the court without a jury.

21 ‘‘(4) If the court finds that the forfeiture is gross22 ly disproportional to the offense it shall reduce or

23 eliminate the forfeiture as necessary to avoid a viola24 tion of the Excessive Fines Clause of the Eighth

25 Amendment of the Constitution.
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1 ‘‘(h) CIVIL FINE.—

2 ‘‘(1) In any civil forfeiture proceeding under a

3 civil forfeiture statute in which the Government pre4 vails, if the court finds that the claimant’s assertion

5 of an interest in the property was frivolous, the court

6 may impose a civil fine on the claimant of an

7 amount equal to 10 percent of the value of the for8 feited property, but in no event shall the fine be less

9 than $250 or greater than $5,000.

10 ‘‘(2) Any civil fine imposed under this subsection

11 shall not preclude the court from imposing sanctions

12 under rule 11 of the Federal Rules of Civil Procedure.

13 ‘‘(3) In addition to the limitations of section

14 1915 of title 28, United States Code, in no event shall

15 a prisoner file a claim under a civil forfeiture statute

16 or appeal a judgment in a civil action or proceeding

17 based on a civil forfeiture statute if the prisoner has,

18 on 3 or more prior occasions, while incarcerated or

19 detained in any facility, brought an action or appeal

20 in a court of the United States that was dismissed on

21 the grounds that it is frivolous or malicious, unless

22 the prisoner shows extraordinary and exceptional cir23 cumstances.

24 ‘‘(i) CIVIL FORFEITURE STATUTE DEFINED.—In this

25 section, the term ‘civil forfeiture statute’—
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1 ‘‘(1) means any provision of Federal law pro2 viding for the forfeiture of property other than as a

3 sentence imposed upon conviction of a criminal of4 fense; and

5 ‘‘(2) does not include—

6 ‘‘(A) the Tariff Act of 1930 or any other

7 provision of law codified in title 19;

8 ‘‘(B) the Internal Revenue Code of 1986;

9 ‘‘(C) the Federal Food, Drug, and Cosmetic

10 Act (21 U.S.C. 301 et seq.);

11 ‘‘(D) the Trading with the Enemy Act (50

12 U.S.C. App. 1 et seq.); or

13 ‘‘(E) section 1 of title VI of the Act of June

14 15, 1917 (40 Stat. 233; 22 U.S.C. 401).’’.

15 (b) TECHNICAL AND CONFORMING AMENDMENT.—The

16 analysis for chapter 46 of title 18, United States Code, is

17 amended by inserting after the item relating to section 982

18 the following:

‘‘983. General rules for civil forfeiture proceedings.’’.

19 (c) STRIKING SUPERSEDED PROVISIONS.—

20 (1) CIVIL FORFEITURE.—Section 981(a) of title

21 18, United States Code, is amended—

22 (A) in paragraph (1), by striking ‘‘Except

23 as provided in paragraph (2), the’’ and inserting

24 ‘‘The’’; and

25 (B) by striking paragraph (2).
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1 (2) DRUG FORFEITURES.—Paragraphs (4), (6)

2 and (7) of section 511(a) of the Controlled Substances

3 Act (21 U.S.C. 881(a) (4), (6) and (7)) are each

4 amended by striking ‘‘, except that’’ and all that fol5 lows before the period at the end.

6 (3) AUTOMOBILES.—Section 518 of the Con7 trolled Substances Act (21 U.S.C. 888) is repealed.

8 (4) FORFEITURES IN CONNECTION WITH SEXUAL

9 EXPLOITATION OF CHILDREN.—Paragraphs (2) and

10 (3) of section 2254(a) of title 18, United States Code,

11 are each amended by striking ‘‘, except that’’ and all

12 that follows before the period at the end.

13 (d) LEGAL SERVICES CORPORATION REPRESENTA14 TION.—Section 1007(a) of the Legal Services Corporation

15 Act (42 U.S.C. 2996f(a)) is amended—

16 (1) in paragraph (9), by striking ‘‘and’’ after the

17 semicolon;

18 (2) In paragraph (10), by striking the period

19 and inserting ‘‘; and’’; and

20 (3) by adding at the end the following:

21 ‘‘(11) ensure that an indigent individual whose

22 primary residence is subject to civil forfeiture is rep23 resented by an attorney for the Corporation in such

24 civil action.’’
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1 SEC. 3. COMPENSATION FOR DAMAGE TO SEIZED PROP2 ERTY.

3 (a) TORT CLAIMS ACT.—Section 2680(c) of title 28,

4 United States Code, is amended—

5 (1) by striking ‘‘any goods or merchandise’’ and

6 inserting ‘‘any goods, merchandise, or other prop7 erty’’;

8 (2) by striking ‘‘law-enforcement’’ and inserting

9 ‘‘law enforcement’’; and

10 (3) by inserting before the period at the end the

11 following: ‘‘, except that the provisions of this chapter

12 and section 1346(b) of this title apply to any claim

13 based on injury or loss of goods, merchandise, or other

14 property, while in the possession of any officer of cus15 toms or excise or any other law enforcement officer,

16 if—

17 ‘‘(1) the property was seized for the purpose of

18 forfeiture under any provision of Federal law pro19 viding for the forfeiture of property other than as a

20 sentence imposed upon conviction of a criminal of21 fense;

22 ‘‘(2) the interest of the claimant was not for23 feited;

24 ‘‘(3) the interest of the claimant was not remit25 ted or mitigated (if the property was subject to for26 feiture); and
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1 ‘‘(4) the claimant was not convicted of a crime

2 for which the interest of the claimant in the property

3 was subject to forfeiture under a Federal criminal for4 feiture law.’’.

5 (b) DEPARTMENT OF JUSTICE.—

6 (1) IN GENERAL.—With respect to a claim that

7 cannot be settled under chapter 171 of title 28, United

8 States Code, the Attorney General may settle, for not

9 more than $50,000 in any case, a claim for damage

10 to, or loss of, privately owned property caused by an

11 investigative or law enforcement officer (as defined in

12 section 2680(h) of title 28, United States Code) who

13 is employed by the Department of Justice acting

14 within the scope of his or her employment.

15 (2) LIMITATIONS.—The Attorney General may

16 not pay a claim under paragraph (1) that—

17 (A) is presented to the Attorney General

18 more than 1 year after it accrues; or

19 (B) is presented by an officer or employee

20 of the Federal Government and arose within the

21 scope of employment.

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

23 (a) IN GENERAL.—Section 2465 of title 28, United

24 States Code, is amended to read as follows:
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1 ‘‘§ 2465. Return of property to claimant; liability for

2 wrongful seizure; attorney fees, costs, and

3 interest

4 ‘‘(a) Upon the entry of a judgment for the claimant

5 in any proceeding to condemn or forfeit property seized or

6 arrested under any provision of Federal law—

7 ‘‘(1) such property shall be returned forthwith to

8 the claimant or his agent; and

9 ‘‘(2) if it appears that there was reasonable

10 cause for the seizure or arrest, the court shall cause

11 a proper certificate thereof to be entered and, in such

12 case, neither the person who made the seizure or ar13 rest nor the prosecutor shall be liable to suit or judg14 ment on account of such suit or prosecution, nor shall

15 the claimant be entitled to costs, except as provided

16 in subsection (b).

17 ‘‘(b)(1) Except as provided in paragraph (2), in any

18 civil proceeding to forfeit property under any provision of

19 Federal law in which the claimant substantially prevails,

20 the United States shall be liable for—

21 ‘‘(A) reasonable attorney fees and other litigation

22 costs reasonably incurred by the claimant;

23 ‘‘(B) post-judgment interest, as set forth in sec24 tion 1961 of this title; and
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1 ‘‘(C) in cases involving currency, other nego2 tiable instruments, or the proceeds of an interlocutory

3 sale—

4 ‘‘(i) interest actually paid to the United

5 States from the date of seizure or arrest of the

6 property that resulted from the investment of the

7 property in an interest-bearing account or in8 strument; and

9 ‘‘(ii) an imputed amount of interest that

10 such currency, instruments, or proceeds would

11 have earned at the rate applicable to the 30-day

12 Treasury Bill, for any period during which no

13 interest was paid (not including any period

14 when the property reasonably was in use as evi15 dence in an official proceeding or in conducting

16 scientific tests for the purpose of collecting evi17 dence), commencing 15 days after the property

18 was seized by a Federal law enforcement agency,

19 or was turned over to a Federal law enforcement

20 agency by a State or local law enforcement agen21 cy.

22 ‘‘(2)(A) The United States shall not be required

23 to disgorge the value of any intangible benefits nor

24 make any other payments to the claimant not specifi25 cally authorized by this subsection.
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1 ‘‘(B) The provisions of paragraph (1) shall not

2 apply if the claimant is convicted of a crime for

3 which the interest of the claimant in the property was

4 subject to forfeiture under a Federal criminal for5 feiture law.

6 ‘‘(C) If there are multiple claims to the same

7 property, the United States shall not be liable for

8 costs and attorneys fees associated with any such

9 claim if the United States—

10 ‘‘(i) promptly recognizes such claim;

11 ‘‘(ii) promptly returns the interest of the

12 claimant in the property to the claimant, if the

13 property can be divided without difficulty and

14 there are no competing claims to that portion of

15 the property;

16 ‘‘(iii) does not cause the claimant to incur

17 additional, reasonable costs or fees; and

18 ‘‘(iv) prevails in obtaining forfeiture with

19 respect to one or more of the other claims.

20 ‘‘(D) If the court enters judgment in part for the

21 claimant and in part for the Government, the court

22 shall reduce the award of costs and attorney fees ac23 cordingly.’’.

24 (b) TECHNICAL AND CONFORMING AMENDMENT.—The

25 analysis for chapter 163 of title 28, United States Code,
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1 is amended by striking the item relating to section 2465

2 and inserting following:

‘‘2465. Return of property to claimant; liability for wrongful seizure; attorney

fees, costs, and interest.’’.

3 SEC. 5. SEIZURE WARRANT REQUIREMENT.

4 (a) IN GENERAL.—Section 981(b) of title 18, United

5 States Code, is amended to read as follows:

6 ‘‘(b)(1) Except as provided in section 985, any prop7 erty subject to forfeiture to the United States under sub8 section (a) may be seized by the Attorney General and, in

9 the case of property involved in a violation investigated by

10 the Secretary of the Treasury or the United States Postal

11 Service, the property may also be seized by the Secretary

12 of the Treasury or the Postal Service, respectively.

13 ‘‘(2) Seizures pursuant to this section shall be made

14 pursuant to a warrant obtained in the same manner as

15 provided for a search warrant under the Federal Rules of

16 Criminal Procedure, except that a seizure may be made

17 without a warrant if—

18 ‘‘(A) a complaint for forfeiture has been filed in

19 the United States district court and the court issued

20 an arrest warrant in rem pursuant to the Supple21 mental Rules for Certain Admiralty and Maritime

22 Claims;

23 ‘‘(B) there is probable cause to believe that the

24 property is subject to forfeiture and—
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1 ‘‘(i) the seizure is made pursuant to a law2 ful arrest or search; or

3 ‘‘(ii) another exception to the Fourth

4 Amendment warrant requirement would apply;

5 or

6 ‘‘(C) the property was lawfully seized by a State

7 or local law enforcement agency and transferred to a

8 Federal agency.

9 ‘‘(3) Notwithstanding the provisions of rule 41(a) of

10 the Federal Rules of Criminal Procedure, a seizure warrant

11 may be issued pursuant to this subsection by a judicial offi12 cer in any district in which a forfeiture action against the

13 property may be filed under section 1355(b) of title 28, and

14 may be executed in any district in which the property is

15 found, or transmitted to the central authority of any foreign

16 state for service in accordance with any treaty or other

17 international agreement. Any motion for the return of prop18 erty seized under this section shall be filed in the district

19 court in which the seizure warrant was issued or in the

20 district court for the district in which the property was

21 seized.

22 ‘‘(4)(A) If any person is arrested or charged in a for23 eign country in connection with an offense that would give

24 rise to the forfeiture of property in the United States under

25 this section or under the Controlled Substances Act, the At-
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1 torney General may apply to any Federal judge or mag2 istrate judge in the district in which the property is located

3 for an ex parte order restraining the property subject to

4 forfeiture for not more than 30 days, except that the time

5 may be extended for good cause shown at a hearing con6 ducted in the manner provided in rule 43(e) of the Federal

7 Rules of Civil Procedure.

8 ‘‘(B) The application for the restraining order shall

9 set forth the nature and circumstances of the foreign charges

10 and the basis for belief that the person arrested or charged

11 has property in the United States that would be subject to

12 forfeiture, and shall contain a statement that the restrain13 ing order is needed to preserve the availability of property

14 for such time as is necessary to receive evidence from the

15 foreign country or elsewhere in support of probable cause

16 for the seizure of the property under this subsection.’’.

17 (b) DRUG FORFEITURES.—Section 511(b) of the Con18 trolled Substances Act (21 U.S.C. 881(b)) is amended to

19 read as follows:

20 ‘‘(b) SEIZURE PROCEDURES.—Any property subject to

21 forfeiture to the United States under this section may be

22 seized by the Attorney General in the manner set forth in

23 section 981(b) of title 18, United States Code.’’.
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1 SEC. 6. USE OF FORFEITED FUNDS TO PAY RESTITUTION

2 TO CRIME VICTIMS.

3 Section 981(e) of title 18, United States Code, is

4 amended by striking paragraph (6) and inserting the fol5 lowing:

6 ‘‘(6) as restoration to any victim of the offense

7 giving rise to the forfeiture, including, in the case of

8 a money laundering offense, any offense constituting

9 the underlying specified unlawful activity; or’’.

10 SEC. 7. CIVIL FORFEITURE OF REAL PROPERTY.

11 (a) IN GENERAL.—Chapter 46 of title 18, United

12 States Code, is amended by inserting after section 984 the

13 following:

14 ‘‘§ 985. Civil forfeiture of real property

15 ‘‘(a) Notwithstanding any other provision of law, all

16 civil forfeitures of real property and interests in real prop17 erty shall proceed as judicial forfeitures.

18 ‘‘(b)(1) Except as provided in this section—

19 ‘‘(A) real property that is the subject of a

20 civil forfeiture action shall not be seized before

21 entry of an order of forfeiture; and

22 ‘‘(B) the owners or occupants of the real

23 property shall not be evicted from, or otherwise

24 deprived of the use and enjoyment of, real prop25 erty that is the subject of a pending forfeiture ac26 tion.
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1 ‘‘(2) The filing of a lis pendens and the execution

2 of a writ of entry for the purpose of conducting an

3 inspection and inventory of the property shall not be

4 considered a seizure under this subsection.

5 ‘‘(c)(1) The Government shall initiate a civil forfeiture

6 action against real property by—

7 ‘‘(A) filing a complaint for forfeiture;

8 ‘‘(B) posting a notice of the complaint on the

9 property; and

10 ‘‘(C) serving notice on the property owner, along

11 with a copy of the complaint.

12 ‘‘(2) If the property owner cannot be served with the

13 notice under paragraph (1) because the owner—

14 ‘‘(A) is a fugitive;

15 ‘‘(B) resides outside the United States and efforts

16 at service pursuant to rule 4 of the Federal Rules of

17 Civil Procedure are unavailing; or

18 ‘‘(C) cannot be located despite the exercise of due

19 diligence,

20 constructive service may be made in accordance with the

21 laws of the State in which the property is located.

22 ‘‘(3) If real property has been posted in accordance

23 with this subsection, it shall not be necessary for the court

24 to issue an arrest warrant in rem, or to take any other

25 action to establish in rem jurisdiction over the property.
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1 ‘‘(d)(1) Real property may be seized prior to the entry

2 of an order of forfeiture if—

3 ‘‘(A) the Government notifies the court that it

4 intends to seize the property before trial; and

5 ‘‘(B) the court—

6 ‘‘(i) issues a notice of application for war7 rant, causes the notice to be served on the prop8 erty owner and posted on the property, and con9 ducts a hearing in which the property owner has

10 a meaningful opportunity to be heard; or

11 ‘‘(ii) makes an ex parte determination that

12 there is probable cause for the forfeiture and that

13 there are exigent circumstances that permit the

14 Government to seize the property without prior

15 notice and an opportunity for the property

16 owner to be heard.

17 ‘‘(2) For purposes of paragraph (1)(B)(ii), to establish

18 exigent circumstances, the Government shall show that less

19 restrictive measures such as a lis pendens, restraining

20 order, or bond would not suffice to protect the Government’s

21 interests in preventing the sale, destruction, or continued

22 unlawful use of the real property.

23 ‘‘(e) If the court authorizes a seizure of real property

24 under subsection (d)(1)(B)(ii), it shall conduct a prompt
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1 post-seizure hearing during which the property owner shall

2 have an opportunity to contest the basis for the seizure.

3 ‘‘(f) This section—

4 ‘‘(1) applies only to civil forfeitures of real prop5 erty and interests in real property;

6 ‘‘(2) does not apply to forfeitures of the proceeds

7 of the sale of such property or interests, or of money

8 or other assets intended to be used to acquire such

9 property or interests; and

10 ‘‘(3) shall not affect the authority of the court to

11 enter a restraining order relating to real property.’’.

12 (b) TECHNICAL AND CONFORMING AMENDMENT.—The

13 analysis for chapter 46 of title 18, United States Code, is

14 amended by inserting after the item relating to section 984

15 the following:

‘‘985. Civil forfeiture of real property.’’.

16 SEC. 8. STAY OF CIVIL FORFEITURE CASE.

17 (a) IN GENERAL.—Section 981(g) of title 18, United

18 States Code, is amended to read as follows:

19 ‘‘(g)(1) Upon the motion of the United States, the court

20 shall stay the civil forfeiture proceeding if the court deter21 mines that civil discovery will adversely affect the ability

22 of the Government to conduct a related criminal investiga23 tion or the prosecution of a related criminal case.
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1 ‘‘(2) Upon the motion of a claimant, the court shall

2 stay the civil forfeiture proceeding with respect to that

3 claimant if the court determines that—

4 ‘‘(A) the claimant is the subject of a related

5 criminal investigation or case;

6 ‘‘(B) the claimant has standing to assert a claim

7 in the civil forfeiture proceeding; and

8 ‘‘(C) continuation of the forfeiture proceeding

9 will burden the right of the claimant against self-in10 crimination in the related investigation or case.

11 ‘‘(3) With respect to the impact of civil discovery de12 scribed in paragraphs (1) and (2), the court may determine

13 that a stay is unnecessary if a protective order limiting

14 discovery would protect the interest of 1 party without un15 fairly limiting the ability of the opposing party to pursue

16 the civil case. In no case, however, shall the court impose

17 a protective order as an alternative to a stay if the effect

18 of such protective order would be to allow 1 party to pursue

19 discovery while the other party is substantially unable to

20 do so.

21 ‘‘(4) In this subsection, the terms ‘related criminal

22 case’ and ‘related criminal investigation’ mean an actual

23 prosecution or investigation in progress at the time at

24 which the request for the stay, or any subsequent motion

25 to lift the stay is made. In determining whether a criminal
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1 case or investigation is ‘related’ to a civil forfeiture pro2 ceeding, the court shall consider the degree of similarity be3 tween the parties, witnesses, facts, and circumstances in4 volved in the 2 proceedings, without requiring an identity

5 with respect to any 1 or more factors.

6 ‘‘(5) In requesting a stay under paragraph (1), the

7 Government may, in appropriate cases, submit evidence ex

8 parte in order to avoid disclosing any matter that may ad9 versely affect an ongoing criminal investigation or pending

10 criminal trial.

11 ‘‘(6) Whenever a civil forfeiture proceeding is stayed

12 pursuant to this subsection, the court shall enter any order

13 necessary to preserve the value of the property or to protect

14 the rights of lienholders or other persons with an interest

15 in the property while the stay is in effect.

16 ‘‘(7) A determination by the court that the claimant

17 has standing to request a stay pursuant to paragraph (2)

18 shall apply only to this subsection and shall not preclude

19 the Government from objecting to the standing of the claim20 ant by dispositive motion or at the time of trial.’’.

21 (b) DRUG FORFEITURES.—Section 511(i) of the Con22 trolled Substances Act (21 U.S.C. 881(i)) is amended to

23 read as follows:
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1 ‘‘(i) The provisions of section 981(g) of title 18, United

2 States Code, regarding the stay of a civil forfeiture pro3 ceeding shall apply to forfeitures under this section.’’.

4 SEC. 9. CIVIL RESTRAINING ORDERS.

5 Section 983 of title 18, United States Code, as added

6 by this Act, is amended by adding at the end the following:

7 ‘‘(j) RESTRAINING ORDERS; PROTECTIVE ORDERS.—

8 ‘‘(1) Upon application of the United States, the

9 court may enter a restraining order or injunction, re10 quire the execution of satisfactory performance bonds,

11 create receiverships, appoint conservators, custodians,

12 appraisers, accountants, or trustees, or take any other

13 action to seize, secure, maintain, or preserve the

14 availability of property subject to civil forfeiture—

15 ‘‘(A) upon the filing of a civil forfeiture

16 complaint alleging that the property with respect

17 to which the order is sought is subject to civil

18 forfeiture; or

19 ‘‘(B) prior to the filing of such a complaint,

20 if, after notice to persons appearing to have an

21 interest in the property and opportunity for a

22 hearing, the court determines that—

23 ‘‘(i) there is a substantial probability

24 that the United States will prevail on the

25 issue of forfeiture and that failure to enter
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1 the order will result in the property being

2 destroyed, removed from the jurisdiction of

3 the court, or otherwise made unavailable for

4 forfeiture; and

5 ‘‘(ii) the need to preserve the avail6 ability of the property through the entry of

7 the requested order outweighs the hardship

8 on any party against whom the order is to

9 be entered.

10 ‘‘(2) An order entered pursuant to paragraph

11 (1)(B) shall be effective for not more than 90 days,

12 unless extended by the court for good cause shown, or

13 unless a complaint described in paragraph (1)(A) has

14 been filed.

15 ‘‘(3) A temporary restraining order under this

16 subsection may be entered upon application of the

17 United States without notice or opportunity for a

18 hearing when a complaint has not yet been filed with

19 respect to the property, if the United States dem20 onstrates that there is probable cause to believe that

21 the property with respect to which the order is sought

22 is subject to civil forfeiture and that provision of no23 tice will jeopardize the availability of the property for

24 forfeiture. Such a temporary order shall expire not

25 more than 10 days after the date on which it is en-
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1 tered, unless extended for good cause shown or unless

2 the party against whom it is entered consents to an

3 extension for a longer period. A hearing requested

4 concerning an order entered under this paragraph

5 shall be held at the earliest possible time and prior

6 to the expiration of the temporary order.

7 ‘‘(4) The court may receive and consider, at a

8 hearing held pursuant to this subsection, evidence and

9 information that would be inadmissible under the

10 Federal Rules of Evidence.’’.

11 SEC. 10. COOPERATION AMONG FEDERAL PROSECUTORS.

12 Section 3322(a) of title 18, United States Code, is

13 amended—

14 (1) by striking ‘‘civil forfeiture under section 981

15 of title 18, United States Code, of property described

16 in section 981(a)(1)(C) of such title’’ and inserting

17 ‘‘any civil forfeiture provision of Federal law’’; and

18 (2) by striking ‘‘concerning a banking law viola19 tion’’.

20 SEC. 11. STATUTE OF LIMITATIONS FOR CIVIL FORFEITURE

21 ACTIONS.

22 Section 621 of the Tariff Act of 1930 (19 U.S.C. 1621)

23 is amended by inserting ‘‘, or in the case of forfeiture, with24 in 2 years after the time when the involvement of the prop25 erty in the alleged offense was discovered, whichever was
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1 later’’ after ‘‘within five years after the time when the al2 leged offense was discovered’’.

3 SEC. 12. DESTRUCTION OR REMOVAL OF PROPERTY TO

4 PREVENT SEIZURE.

5 Section 2232 of title 18, United States Code, is

6 amended—

7 (1) by striking subsections (a) and (b);

8 (2) by inserting ‘‘(e) FOREIGN INTELLIGENCE

9 SURVEILLANCE.—’’ before ‘‘Whoever, having knowl10 edge that a Federal officer’’;

11 (3) by redesignating subsection (c) as subsection

12 (d); and

13 (4) by inserting before subsection (d), as redesig14 nated, the following:

15 ‘‘(a) DESTRUCTION OR REMOVAL OF PROPERTY TO

16 PREVENT SEIZURE.—Whoever, before, during, or after any

17 search for or seizure of property by any person authorized

18 to make such search or seizure, knowingly destroys, dam19 ages, wastes, disposes of, transfers, or otherwise takes any

20 action, or knowingly attempts to destroy, damage, waste,

21 dispose of, transfer, or otherwise take any action, for the

22 purpose of preventing or impairing the Government’s law23 ful authority to take such property into its custody or con24 trol or to continue holding such property under its lawful
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1 custody and control, shall be fined under this title or im2 prisoned not more than 5 years, or both.

3 ‘‘(b) IMPAIRMENT OF IN REM JURISDICTION.—Who4 ever, knowing that property is subject to the in rem jurisdic5 tion of a United States court for purposes of civil forfeiture

6 under Federal law, knowingly and without authority from

7 that court, destroys, damages, wastes, disposes of, transfers,

8 or otherwise takes any action, or knowingly attempts to de9 stroy, damage, waste, dispose of, transfer, or otherwise take

10 any action, for the purpose of impairing or defeating the

11 court’s continuing in rem jurisdiction over the property,

12 shall be fined under this title or imprisoned not more than

13 5 years, or both.

14 ‘‘(c) NOTICE OF SEARCH OR EXECUTION OF SEIZURE

15 WARRANT OR WARRANT OF ARREST IN REM.—Whoever,

16 having knowledge that any person authorized to make

17 searches and seizures, or to execute a seizure warrant or

18 warrant of arrest in rem, in order to prevent the authorized

19 seizing or securing of any person or property, gives notice

20 or attempts to give notice in advance of the search, seizure,

21 or execution of a seizure warrant or warrant of arrest in

22 rem, to any person shall be fined under this title or impris23 oned not more than 5 years, or both.’’.
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1 SEC. 13. FUNGIBLE PROPERTY IN BANK ACCOUNTS.

2 (a) IN GENERAL.—Section 984 of title 18, United

3 States Code, is amended—

4 (1) by striking subsection (a) and redesignating

5 subsections (b), (c), and (d) as subsections (a), (b),

6 and (c), respectively;

7 (2) in subsection (a), as redesignated—

8 (A) by striking ‘‘or other fungible property’’

9 and inserting ‘‘or precious metals’’; and

10 (B) in paragraph (2), by striking ‘‘sub11 section (c)’’ and inserting ‘‘subsection (b)’’;

12 (3) in subsection (c), as redesignated—

13 (A) by striking paragraph (1) and inserting

14 the following: ‘‘(1) Subsection (a) does not apply

15 to an action against funds held by a financial

16 institution in an interbank account unless the

17 account holder knowingly engaged in the offense

18 that is the basis for the forfeiture.’’; and

19 (B) in paragraph (2), by striking ‘‘(2) As

20 used in this section, the term’’ and inserting the

21 following:

22 ‘‘(2) In this subsection—

23 ‘‘(A) the term ‘financial institution’ includes a

24 foreign bank (as defined in section 1(b)(7) of the

25 International Banking Act of 1978 (12 U.S.C.

26 3101(b)(7))); and
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1 ‘‘(B) the term’’; and

2 (4) by adding at the end the following:

3 ‘‘(d) Nothing in this section may be construed to limit

4 the ability of the Government to forfeit property under any

5 provision of law if the property involved in the offense giv6 ing rise to the forfeiture or property traceable thereto is

7 available for forfeiture.’’.

8 SEC. 14. FUGITIVE DISENTITLEMENT.

9 (a) IN GENERAL.—Chapter 163 of title 28, United

10 States Code, is amended by adding at the end the following:

11 ‘‘§ 2466. Fugitive disentitlement

12 ‘‘A judicial officer may disallow a person from using

13 the resources of the courts of the United States in further14 ance of a claim in any related civil forfeiture action or a

15 claim in third party proceedings in any related criminal

16 forfeiture action upon a finding that such person—

17 ‘‘(1) after notice or knowledge of the fact that a

18 warrant or process has been issued for his apprehen19 sion, in order to avoid criminal prosecution—

20 ‘‘(A) purposely leaves the jurisdiction of the

21 United States;

22 ‘‘(B) declines to enter or reenter the United

23 States to submit to its jurisdiction; or
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1 ‘‘(C) otherwise evades the jurisdiction of the

2 court in which a criminal case is pending

3 against the person; and

4 ‘‘(2) is not confined or held in custody in any

5 other jurisdiction for commission of criminal conduct

6 in that jurisdiction.’’.

7 (b) CONFORMING AMENDMENT.—The analysis for

8 chapter 163 of title 28, United States Code, is amended by

9 adding at the end the following:

‘‘2466. Fugitive disentitlement.’’.

10 (c) EFFECTIVE DATE.—The amendments made by this

11 section shall apply to any case pending on or after the date

12 of enactment of this Act.

13 SEC. 15. ENFORCEMENT OF FOREIGN FORFEITURE JUDG14 MENT.

15 (a) IN GENERAL.—Chapter 163 of title 28, United

16 States Code, is amended by adding at the end the following:

17 ‘‘§ 2467. Enforcement of foreign judgment

18 ‘‘(a) DEFINITIONS.—In this section—

19 ‘‘(1) the term ‘foreign nation’ means a country

20 that has become a party to the United Nations Con21 vention Against Illicit Traffic in Narcotic Drugs and

22 Psychotropic Substances (referred to in this section as

23 the ‘United Nations Convention’) or a foreign juris24 diction with which the United States has a treaty or
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1 other formal international agreement in effect pro2 viding for mutual forfeiture assistance; and

3 ‘‘(2) the term ‘forfeiture or confiscation judg4 ment’ means a final order of a foreign nation compel5 ling a person or entity—

6 ‘‘(A) to pay a sum of money representing

7 the proceeds of an offense described in Article 3,

8 Paragraph 1, of the United Nations Convention,

9 or any foreign offense described in section

10 1956(c)(7)(B) of title 18, or property the value

11 of which corresponds to such proceeds; or

12 ‘‘(B) to forfeit property involved in or trace13 able to the commission of such offense.

14 ‘‘(b) REVIEW BY ATTORNEY GENERAL.—

15 ‘‘(1) IN GENERAL.—A foreign nation seeking to

16 have a forfeiture or confiscation judgment registered

17 and enforced by a district court of the United States

18 under this section shall first submit a request to the

19 Attorney General or the designee of the Attorney Gen20 eral, which request shall include—

21 ‘‘(A) a summary of the facts of the case and

22 a description of the proceedings that resulted in

23 the forfeiture or confiscation judgment;

24 ‘‘(B) certified copy of the forfeiture or con25 fiscation judgment;
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1 ‘‘(C) an affidavit or sworn declaration es2 tablishing that the defendant received notice of

3 the proceedings in sufficient time to enable the

4 defendant to defend against the charges and that

5 the judgment rendered is in force and is not sub6 ject to appeal; and

7 ‘‘(D) such additional information and evi8 dence as may be required by the Attorney Gen9 eral or the designee of the Attorney General.

10 ‘‘(2) CERTIFICATION OF REQUEST.—The Attor11 ney General or the designee of the Attorney General

12 shall determine whether, in the interest of justice, to

13 certify the request, and such decision shall be final

14 and not subject to either judicial review or review

15 under subchapter II of chapter 5, or chapter 7, of title

16 5 (commonly known as the ‘Administrative Procedure

17 Act’).

18 ‘‘(c) JURISDICTION AND VENUE.—

19 ‘‘(1) IN GENERAL.—If the Attorney General or

20 the designee of the Attorney General certifies a request

21 under subsection (b), the United States may file an

22 application on behalf of a foreign nation in district

23 court of the United States seeking to enforce the for24 eign forfeiture or confiscation judgment as if the judg-
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1 ment had been entered by a court in the United

2 States.

3 ‘‘(2) PROCEEDINGS.—In a proceeding filed under

4 paragraph (1)—

5 ‘‘(A) the United States shall be the appli6 cant and the defendant or another person or en7 tity affected by the forfeiture or confiscation

8 judgment shall be the respondent;

9 ‘‘(B) venue shall lie in the district court for

10 the District of Columbia or in any other district

11 in which the defendant or the property that may

12 be the basis for satisfaction of a judgment under

13 this section may be found; and

14 ‘‘(C) the district court shall have personal

15 jurisdiction over a defendant residing outside of

16 the United States if the defendant is served with

17 process in accordance with rule 4 of the Federal

18 Rules of Civil Procedure.

19 ‘‘(d) ENTRY AND ENFORCEMENT OF JUDGMENT.—

20 ‘‘(1) IN GENERAL.—The district court shall enter

21 such orders as may be necessary to enforce the judg22 ment on behalf of the foreign nation unless the court

23 finds that—

24 ‘‘(A) the judgment was rendered under a

25 system that provides tribunals or procedures in-
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1 compatible with the requirements of due process

2 of law;

3 ‘‘(B) the foreign court lacked personal juris4 diction over the defendant;

5 ‘‘(C) the foreign court lacked jurisdiction

6 over the subject matter;

7 ‘‘(D) the defendant in the proceedings in the

8 foreign court did not receive notice of the pro9 ceedings in sufficient time to enable him or her

10 to defend; or

11 ‘‘(E) the judgment was obtained by fraud.

12 ‘‘(2) PROCESS.—Process to enforce a judgment

13 under this section shall be in accordance with rule

14 69(a) of the Federal Rules of Civil Procedure.

15 ‘‘(e) FINALITY OF FOREIGN FINDINGS.—In entering

16 orders to enforce the judgment, the court shall be bound by

17 the findings of fact to the extent that they are stated in

18 the foreign forfeiture or confiscation judgment.

19 ‘‘(f) CURRENCY CONVERSION.—The rate of exchange in

20 effect at the time the suit to enforce is filed by the foreign

21 nation shall be used in calculating the amount stated in

22 any forfeiture or confiscation judgment requiring the pay23 ment of a sum of money submitted for registration.’’.
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1 (b) CONFORMING AMENDMENT.—The analysis for

2 chapter 163 of title 28, United States Code, is amended by

3 adding at the end the following:

‘‘2467. Enforcement of foreign judgment.’’.

4 SEC. 16. ENCOURAGING USE OF CRIMINAL FORFEITURE AS

5 AN ALTERNATIVE TO CIVIL FORFEITURE.

6 Section 2461 of title 28, United States Code, is amend7 ed by adding at the end the following:

8 ‘‘(c) If a forfeiture of property is authorized in connection

9 with a violation of an Act of Congress, and any person is

10 charged in an indictment or information with such viola11 tion but no specific statutory provision is made for crimi12 nal forfeiture upon conviction, the Government may include

13 the forfeiture in the indictment or information in accord14 ance with the Federal Rules of Criminal Procedure, and

15 upon conviction, the court shall order the forfeiture of the

16 property in accordance with the procedures set forth in sec17 tion 413 of the Controlled Substances Act (21 U.S.C. 853),

18 other than subsection (d) of that section.’’.

19 SEC. 17. ACCESS TO RECORDS IN BANK SECRECY JURISDIC20 TIONS.

21 Section 986 of title 18, United States Code, is amended

22 by adding at the end the following:

23 ‘‘(d) ACCESS TO RECORDS IN BANK SECRECY JURIS24 DICTIONS.—
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1 ‘‘(1) IN GENERAL.—In any civil forfeiture case,

2 or in any ancillary proceeding in any criminal for3 feiture case governed by section 413(n) of the Con4 trolled Substances Act (21 U.S.C. 853(n)), in which—

5 ‘‘(A) financial records located in a foreign

6 country may be material—

7 ‘‘(i) to any claim or to the ability of

8 the Government to respond to such claim; or

9 ‘‘(ii) in a civil forfeiture case, to the

10 ability of the Government to establish the

11 forfeitability of the property; and

12 ‘‘(B) it is within the capacity of the claim13 ant to waive the claimant’s rights under appli14 cable financial secrecy laws, or to obtain the

15 records so that such records can be made avail16 able notwithstanding such secrecy laws;

17 the refusal of the claimant to provide the records in

18 response to a discovery request or to take the action

19 necessary otherwise to make the records available

20 shall be grounds for judicial sanctions, up to and in21 cluding dismissal of the claim with prejudice.

22 ‘‘(2) PRIVILEGE.—This subsection shall not affect

23 the right of the claimant to refuse production on the

24 basis of any privilege guaranteed by the Constitution
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1 of the United States or any other provision of Federal

2 law.’’.

3 SEC. 18. APPLICATION TO ALIEN SMUGGLING OFFENSES.

4 (a) AMENDMENT OF THE IMMIGRATION AND NATION5 ALITY ACT.—Section 274(b) of the Immigration and Na6 tionality Act (8 U.S.C. 1324(b)) is amended to read as fol7 lows:

8 ‘‘(b) SEIZURE AND FORFEITURE.—

9 ‘‘(1) IN GENERAL.—Any conveyance, including

10 any vessel, vehicle, or aircraft, that has been or is

11 being used in the commission of a violation of sub12 section (a), the gross proceeds of such violation, and

13 any property traceable to such conveyance or pro14 ceeds, shall be seized and subject to forfeiture.

15 ‘‘(2) APPLICABLE PROCEDURES.—Seizures and

16 forfeitures under this subsection shall be governed by

17 the provisions of chapter 46 of title 18, United States

18 Code, relating to civil forfeitures, including section

19 981(d) of such title, except that such duties as are im20 posed upon the Secretary of the Treasury under the

21 customs laws described in that section shall be per22 formed by such officers, agents, and other persons as

23 may be designated for that purpose by the Attorney

24 General.
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1 ‘‘(3) PRIMA FACIE EVIDENCE IN DETERMINA2 TIONS OF VIOLATIONS.—In determining whether a

3 violation of subsection (a) has occurred, any of the

4 following shall be prima facie evidence that an alien

5 involved in the alleged violation had not received

6 prior official authorization to come to, enter, or reside

7 in the United States or that such alien had come to,

8 entered, or remained in the United States in violation

9 of law:

10 ‘‘(A) Records of any judicial or administra11 tive proceeding in which that alien’s status was

12 an issue and in which it was determined that

13 the alien had not received prior official author14 ization to come to, enter, or reside in the United

15 States or that such alien had come to, entered,

16 or remained in the United States in violation of

17 law.

18 ‘‘(B) Official records of the Service or of the

19 Department of State showing that the alien had

20 not received prior official authorization to come

21 to, enter, or reside in the United States or that

22 such alien had come to, entered, or remained in

23 the United States in violation of law.

24 ‘‘(C) Testimony, by an immigration officer

25 having personal knowledge of the facts con-
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1 cerning that alien’s status, that the alien had not

2 received prior official authorization to come to,

3 enter, or reside in the United States or that such

4 alien had come to, entered, or remained in the

5 United States in violation of law.’’.

6 (b) TECHNICAL CORRECTIONS TO EXISTING CRIMINAL

7 FORFEITURE AUTHORITY.—Section 982(a)(6) of title 18,

8 United States Code, is amended—

9 (1) in subparagraph (A)—

10 (A) by inserting ‘‘section 274(a),

11 274A(a)(1), or 274A(a)(2) of the Immigration

12 and Nationality Act or’’ before ‘‘section 1425’’

13 the first place it appears;

14 (B) in clause (i), by striking ‘‘a violation

15 of, or a conspiracy to violate, subsection (a)’’

16 and inserting ‘‘the offense of which the person is

17 convicted’’; and

18 (C) in subclauses (I) and (II) of clause (ii),

19 by striking ‘‘a violation of, or a conspiracy to

20 violate, subsection (a)’’ and all that follows

21 through ‘‘of this title’’ each place it appears and

22 inserting ‘‘the offense of which the person is con23 victed’’;

24 (2) by striking subparagraph (B); and

25 (3) in the second sentence—
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1 (A) by striking ‘‘The court, in imposing

2 sentence on such person’’ and inserting the fol3 lowing:

4 ‘‘(B) The court, in imposing sentence on a per5 son described in subparagraph (A)’’; and

6 (B) by striking ‘‘this subparagraph’’ and

7 inserting ‘‘that subparagraph’’.

8 SEC. 19. ENHANCED VISIBILITY OF THE ASSET FORFEITURE

9 PROGRAM.

10 Section 524(c)(6) of title 28, United States Code, is

11 amended to read as follows:

12 ‘‘(6)(A) The Attorney General shall transmit to Con13 gress and make available to the public, not later than 4

14 months after the end of each fiscal year, detailed reports

15 for the prior fiscal year as follows:

16 ‘‘(i) A report on total deposits to the Fund by

17 State of deposit.

18 ‘‘(ii) A report on total expenses paid from the

19 Fund, by category of expense and recipient agency,

20 including equitable sharing payments.

21 ‘‘(iii) A report describing the number, value, and

22 types of properties placed into official use by Federal

23 agencies, by recipient agency.
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1 ‘‘(iv) A report describing the number, value, and

2 types of properties transferred to State and local law

3 enforcement agencies, by recipient agency.

4 ‘‘(v) A report, by type of disposition, describing

5 the number, value, and types of forfeited property dis6 posed of during the year.

7 ‘‘(vi) A report on the year-end inventory of prop8 erty under seizure, but not yet forfeited, that reflects

9 the type of property, its estimated value, and the esti10 mated value of liens and mortgages outstanding on

11 the property.

12 ‘‘(vii) A report listing each property in the year13 end inventory, not yet forfeited, with an outstanding

14 equity of not less than $1,000,000.

15 ‘‘(B) The Attorney General shall transmit to Congress

16 and make available to the public, not later than 2 months

17 after final issuance, the audited financial statements for

18 each fiscal year for the Fund.

19 ‘‘(C) Reports under subparagraph (A) shall include in20 formation with respect to all forfeitures under any law en21 forced or administered by the Department of Justice.

22 ‘‘(D) The transmittal and publication requirements in

23 subparagraphs (A) and (B) may be satisfied by—
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1 ‘‘(i) posting the reports on an Internet website

2 maintained by the Department of Justice for a period

3 of not less than 2 years; and

4 ‘‘(ii) notifying the Committees on the Judiciary

5 of the House of Representatives and the Senate when

6 the reports are available electronically.’’.

7 SEC. 20. PROCEEDS.

8 (a) FORFEITURE OF PROCEEDS.—Section

9 981(a)(1)(C) of title 18, United States Code, is amended

10 by striking ‘‘or a violation of section 1341’’ and all that

11 follows and inserting ‘‘or any offense constituting ‘specified

12 unlawful activity’ (as defined in section 1956(c)(7) of this

13 title), or a conspiracy to commit such offense.’’.

14 (b) DEFINITION OF PROCEEDS.—Section 981(a) of

15 title 18, United States Code, is amended by adding at the

16 end the following:

17 ‘‘(2) For purposes of paragraph (1), the term ‘proceeds’

18 is defined as follows:

19 ‘‘(A) In cases involving illegal goods, illegal serv20 ices, unlawful activities, and telemarketing and health

21 care fraud schemes, the term ‘proceeds’ means prop22 erty of any kind obtained directly or indirectly, as

23 the result of the commission of the offense giving rise

24 to forfeiture, and any property traceable thereto, and
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1 is not limited to the net gain or profit realized from

2 the offense.

3 ‘‘(B) In cases involving lawful goods or lawful

4 services that are sold or provided in an illegal man5 ner, the term ‘proceeds’ means the amount of money

6 acquired through the illegal transactions resulting in

7 the forfeiture, less the direct costs incurred in pro8 viding the goods or services. The claimant shall have

9 the burden of proof with respect to the issue of direct

10 costs. The direct costs shall not include any part of

11 the overhead expenses of the entity providing the

12 goods or services, or any part of the income taxes

13 paid by the entity.

14 ‘‘(C) In cases involving fraud in the process of

15 obtaining a loan or extension of credit, the court shall

16 allow the claimant a deduction from the forfeiture to

17 the extent that the loan was repaid, or the debt was

18 satisfied, without any financial loss to the victim.’’.

19 SEC. 21. EFFECTIVE DATE.

20 Except as provided in section 14(c), this Act and the

21 amendments made by this Act shall apply to any forfeiture
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1 proceeding commenced on or after the date that is 120 days

2 after the date of enactment of this Act.

Attest:

Secretary.
106TH CONGRESS

2D SESSION H. R. 1658

AMENDMENT
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