-CITE-

18 USC CHAPTER 46 - FORFEITURE 01/06/03

-EXPCITE-

TITLE 18 - CRIMES AND CRIMINAL PROCEDURE

PART I - CRIMES

CHAPTER 46 - FORFEITURE

.

-HEAD-

CHAPTER 46 - FORFEITURE

-MISC1-

Sec.

981. Civil forfeiture.

982. Criminal forfeiture.

983. General rules for civil forfeiture proceedings.

984. Civil forfeiture of fungible property.

985. Civil forfeiture of real property.

986. Subpoenas for bank records.

AMENDMENTS

2000 - Pub. L. 106-185, Sec. 2(b), 7(b), Apr. 25, 2000, 114 Stat.

210, 215, added items 983 and 985.

1992 - Pub. L. 102-550, title XV, Sec. 1522(b), 1523(b), Oct. 28,

1992, 106 Stat. 4063, 4064, added items 984 and 986.

1988 - Pub. L. 100-690, title VII, Sec. 7069, Nov. 18, 1988, 102

Stat. 4405, substituted ''forfeiture'' for ''Forfeiture'' in items

981 and 982.

-SECREF-

CHAPTER REFERRED TO IN OTHER SECTIONS

This chapter is referred to in sections 1594, 3663 of this title;

title 8 section 1324; title 31 section 5352.

-CITE-

18 USC Sec. 981 01/06/03

-EXPCITE-

TITLE 18 - CRIMES AND CRIMINAL PROCEDURE

PART I - CRIMES

CHAPTER 46 - FORFEITURE

-HEAD-

Sec. 981. Civil forfeiture

-STATUTE-

(a)(1) The following property is subject to forfeiture to the

United States:

(A) Any property, real or personal, involved in a transaction

or attempted transaction in violation of section 1956, 1957 or

1960 of this title, or any property traceable to such property.

(B) Any property, real or personal, within the jurisdiction of

the United States, constituting, derived from, or traceable to,

any proceeds obtained directly or indirectly from an offense

against a foreign nation, or any property used to facilitate such

an offense, if the offense -

(i) involves the manufacture, importation, sale, or

distribution of a controlled substance (as that term is defined

for purposes of the Controlled Substances Act), or any other

conduct described in section 1956(c)(7)(B);

(ii) would be punishable within the jurisdiction of the

foreign nation by death or imprisonment for a term exceeding 1

year; and

(iii) would be punishable under the laws of the United States

by imprisonment for a term exceeding 1 year, if the act or

activity constituting the offense had occurred within the

jurisdiction of the United States.

(C) Any property, real or personal, which constitutes or is

derived from proceeds traceable to a violation of section 215,

471, 472, 473, 474, 476, 477, 478, 479, 480, 481, 485, 486, 487,

488, 501, 502, 510, 542, 545, 656, 657, 842, 844, 1005, 1006,

1007, 1014, 1028, 1029, 1030, 1032, or 1344 of this title or any

offense constituting ''specified unlawful activity'' (as defined

in section 1956(c)(7) of this title), or a conspiracy to commit

such offense.

(D) Any property, real or personal, which represents or is

traceable to the gross receipts obtained, directly or indirectly,

from a violation of -

(i) section 666(a)(1) (relating to Federal program fraud);

(ii) section 1001 (relating to fraud and false statements);

(iii) section 1031 (relating to major fraud against the

United States);

(iv) section 1032 (relating to concealment of assets from

conservator or receiver of insured financial institution);

(v) section 1341 (relating to mail fraud); or

(vi) section 1343 (relating to wire fraud),

if such violation relates to the sale of assets acquired or held

by the Resolution Trust Corporation, the Federal Deposit

Insurance Corporation, as conservator or receiver for a financial

institution, or any other conservator for a financial institution

appointed by the Office of the Comptroller of the Currency or the

Office of Thrift Supervision or the National Credit Union

Administration, as conservator or liquidating agent for a

financial institution.

(E) With respect to an offense listed in subsection (a)(1)(D)

committed for the purpose of executing or attempting to execute

any scheme or artifice to defraud, or for obtaining money or

property by means of false or fraudulent statements, pretenses,

representations or promises, the gross receipts of such an

offense shall include all property, real or personal, tangible or

intangible, which thereby is obtained, directly or indirectly.

(F) Any property, real or personal, which represents or is

traceable to the gross proceeds obtained, directly or indirectly,

from a violation of -

(i) section 511 (altering or removing motor vehicle

identification numbers);

(ii) section 553 (importing or exporting stolen motor

vehicles);

(iii) section 2119 (armed robbery of automobiles);

(iv) section 2312 (transporting stolen motor vehicles in

interstate commerce); or

(v) section 2313 (possessing or selling a stolen motor

vehicle that has moved in interstate commerce).

(G) All assets, foreign or domestic -

(i) of any individual, entity, or organization engaged in

planning or perpetrating any act of domestic or international

terrorism (as defined in section 2331) against the United

States, citizens or residents of the United States, or their

property, and all assets, foreign or domestic, affording any

person a source of influence over any such entity or

organization;

(ii) acquired or maintained by any person with the intent and

for the purpose of supporting, planning, conducting, or

concealing an act of domestic or international terrorism (as

defined in section 2331) against the United States, citizens or

residents of the United States, or their property; or

(iii) derived from, involved in, or used or intended to be

used to commit any act of domestic or international terrorism

(as defined in section 2331) against the United States,

citizens or residents of the United States, or their property.

(H) Any property, real or personal, involved in a violation or

attempted violation, or which constitutes or is derived from

proceeds traceable to a violation, of section 2339C of this

title.

(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.

(b)(1) Except as provided in section 985, any property subject to

forfeiture to the United States under subsection (a) may be seized

by the Attorney General and, in the case of property involved in a

violation investigated by the Secretary of the Treasury or the

United States Postal Service, the property may also be seized by

the Secretary of the Treasury or the Postal Service, respectively.

(2) Seizures pursuant to this section shall be made pursuant to a

warrant obtained in the same manner as provided for a search

warrant under the Federal Rules of Criminal Procedure, except that

a seizure may be made without a warrant if -

(A) a complaint for forfeiture has been filed in the United

States district court and the court issued an arrest warrant in

rem pursuant to the Supplemental Rules for Certain Admiralty and

Maritime Claims;

(B) there is probable cause to believe that the property is

subject to forfeiture and -

(i) the seizure is made pursuant to a lawful arrest or

search; or

(ii) another exception to the Fourth Amendment warrant

requirement would apply; or

(C) the property was lawfully seized by a State or local law

enforcement agency and transferred to a Federal agency.

(3) Notwithstanding the provisions of rule 41(a) of the Federal

Rules of Criminal Procedure, a seizure warrant may be issued

pursuant to this subsection by a judicial officer in any district

in which a forfeiture action against the property may be filed

under section 1355(b) of title 28, and may be executed in any

district in which the property is found, or transmitted to the

central authority of any foreign state for service in accordance

with any treaty or other international agreement. Any motion for

the return of property seized under this section shall be filed in

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

the district court for the district in which the property was

seized.

(4)(A) If any person is arrested or charged in a foreign country

in connection with an offense that would give rise to the

forfeiture of property in the United States under this section or

under the Controlled Substances Act, the Attorney General may apply

to any Federal judge or magistrate judge in the district in which

the property is located for an ex parte order restraining the

property subject to forfeiture for not more than 30 days, except

that the time may be extended for good cause shown at a hearing

conducted in the manner provided in rule 43(e) of the Federal Rules

of Civil Procedure.

(B) The application for the restraining order shall set forth the

nature and circumstances of the foreign charges and the basis for

belief that the person arrested or charged has property in the

United States that would be subject to forfeiture, and shall

contain a statement that the restraining order is needed to

preserve the availability of property for such time as is necessary

to receive evidence from the foreign country or elsewhere in

support of probable cause for the seizure of the property under

this subsection.

(c) Property taken or detained under this section shall not be

repleviable, but shall be deemed to be in the custody of the

Attorney General, the Secretary of the Treasury, or the Postal

Service, as the case may be, subject only to the orders and decrees

of the court or the official having jurisdiction thereof. Whenever

property is seized under this subsection, the Attorney General, the

Secretary of the Treasury, or the Postal Service, as the case may

be, may -

(1) place the property under seal;

(2) remove the property to a place designated by him; or

(3) require that the General Services Administration take

custody of the property and remove it, if practicable, to an

appropriate location for disposition in accordance with law.

(d) For purposes of this section, the provisions of the customs

laws relating to the seizure, summary and judicial forfeiture,

condemnation of property for violation of the customs laws, the

disposition of such property or the proceeds from the sale of such

property under this section, the remission or mitigation of such

forfeitures, and the compromise of claims (19 U.S.C. 1602 et seq.),

insofar as they are applicable and not inconsistent with the

provisions of this section, shall apply to seizures and forfeitures

incurred, or alleged to have been incurred, under this section,

except that such duties as are imposed upon the customs officer or

any other person with respect to the seizure and forfeiture of

property under the customs laws shall be performed with respect to

seizures and forfeitures of property under this section by such

officers, agents, or other persons as may be authorized or

designated for that purpose by the Attorney General, the Secretary

of the Treasury, or the Postal Service, as the case may be. The

Attorney General shall have sole responsibility for disposing of

petitions for remission or mitigation with respect to property

involved in a judicial forfeiture proceeding.

(e) Notwithstanding any other provision of the law, except

section 3 of the Anti Drug Abuse Act of 1986, the Attorney General,

the Secretary of the Treasury, or the Postal Service, as the case

may be, is authorized to retain property forfeited pursuant to this

section, or to transfer such property on such terms and conditions

as he may determine -

(1) to any other Federal agency;

(2) to any State or local law enforcement agency which

participated directly in any of the acts which led to the seizure

or forfeiture of the property;

(3) in the case of property referred to in subsection

(a)(1)(C), to any Federal financial institution regulatory agency

-

(A) to reimburse the agency for payments to claimants or

creditors of the institution; and

(B) to reimburse the insurance fund of the agency for losses

suffered by the fund as a result of the receivership or

liquidation;

(4) in the case of property referred to in subsection

(a)(1)(C), upon the order of the appropriate Federal financial

institution regulatory agency, to the financial institution as

restitution, with the value of the property so transferred to be

set off against any amount later recovered by the financial

institution as compensatory damages in any State or Federal

proceeding;

(5) in the case of property referred to in subsection

(a)(1)(C), to any Federal financial institution regulatory

agency, to the extent of the agency's contribution of resources

to, or expenses involved in, the seizure and forfeiture, and the

investigation leading directly to the seizure and forfeiture, of

such property;

(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

(7) In (FOOTNOTE 1) the case of property referred to in

subsection (a)(1)(D), to the Resolution Trust Corporation, the

Federal Deposit Insurance Corporation, or any other Federal

financial institution regulatory agency (as defined in section

8(e)(7)(D) of the Federal Deposit Insurance Act).

(FOOTNOTE 1) So in original. Probably should not be

capitalized.

The Attorney General, the Secretary of the Treasury, or the Postal

Service, as the case may be, shall ensure the equitable transfer

pursuant to paragraph (2) of any forfeited property to the

appropriate State or local law enforcement agency so as to reflect

generally the contribution of any such agency participating

directly in any of the acts which led to the seizure or forfeiture

of such property. A decision by the Attorney General, the

Secretary of the Treasury, or the Postal Service pursuant to

paragraph (2) shall not be subject to review. The United States

shall not be liable in any action arising out of the use of any

property the custody of which was transferred pursuant to this

section to any non-Federal agency. The Attorney General, the

Secretary of the Treasury, or the Postal Service may order the

discontinuance of any forfeiture proceedings under this section in

favor of the institution of forfeiture proceedings by State or

local authorities under an appropriate State or local statute.

After the filing of a complaint for forfeiture under this section,

the Attorney General may seek dismissal of the complaint in favor

of forfeiture proceedings under State or local law. Whenever

forfeiture proceedings are discontinued by the United States in

favor of State or local proceedings, the United States may transfer

custody and possession of the seized property to the appropriate

State or local official immediately upon the initiation of the

proper actions by such officials. Whenever forfeiture proceedings

are discontinued by the United States in favor of State or local

proceedings, notice shall be sent to all known interested parties

advising them of the discontinuance or dismissal. The United

States shall not be liable in any action arising out of the

seizure, detention, and transfer of seized property to State or

local officials. The United States shall not be liable in any

action arising out of a transfer under paragraph (3), (4), or (5)

of this subsection.

(f) All right, title, and interest in property described in

subsection (a) of this section shall vest in the United States upon

commission of the act giving rise to forfeiture under this section.

(g)(1) Upon the motion of the United States, the court shall stay

the civil forfeiture proceeding if the court determines that civil

discovery will adversely affect the ability of the Government to

conduct a related criminal investigation or the prosecution of a

related criminal case.

(2) Upon the motion of a claimant, the court shall stay the civil

forfeiture proceeding with respect to that claimant if the court

determines that -

(A) the claimant is the subject of a related criminal

investigation or case;

(B) the claimant has standing to assert a claim in the civil

forfeiture proceeding; and

(C) continuation of the forfeiture proceeding will burden the

right of the claimant against self-incrimination in the related

investigation or case.

(3) With respect to the impact of civil discovery described in

paragraphs (1) and (2), the court may determine that a stay is

unnecessary if a protective order limiting discovery would protect

the interest of 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.

(h) In addition to the venue provided for in section 1395 of

title 28 or any other provision of law, in the case of property of

a defendant charged with a violation that is the basis for

forfeiture of the property under this section, a proceeding for

forfeiture under this section may be brought in the judicial

district in which the defendant owning such property is found or in

the judicial district in which the criminal prosecution is brought.

(i)(1) Whenever property is civilly or criminally forfeited under

this chapter, the Attorney General or the Secretary of the

Treasury, as the case may be, may transfer the forfeited personal

property or the proceeds of the sale of any forfeited personal or

real property to any foreign country which participated directly or

indirectly in the seizure or forfeiture of the property, if such a

transfer -

(A) has been agreed to by the Secretary of State;

(B) is authorized in an international agreement between the

United States and the foreign country; and

(C) is made to a country which, if applicable, has been

certified under section 481(h) (FOOTNOTE 2) of the Foreign

Assistance Act of 1961.

(FOOTNOTE 2) See References in Text below.

A decision by the Attorney General or the Secretary of the Treasury

pursuant to this paragraph shall not be subject to review. The

foreign country shall, in the event of a transfer of property or

proceeds of sale of property under this subsection, bear all

expenses incurred by the United States in the seizure, maintenance,

inventory, storage, forfeiture, and disposition of the property,

and all transfer costs. The payment of all such expenses, and the

transfer of assets pursuant to this paragraph, shall be upon such

terms and conditions as the Attorney General or the Secretary of

the Treasury may, in his discretion, set.

(2) The provisions of this section shall not be construed as

limiting or superseding any other authority of the United States to

provide assistance to a foreign country in obtaining property

related to a crime committed in the foreign country, including

property which is sought as evidence of a crime committed in the

foreign country.

(3) A certified order or judgment of forfeiture by a court of

competent jurisdiction of a foreign country concerning property

which is the subject of forfeiture under this section and was

determined by such court to be the type of property described in

subsection (a)(1)(B) of this section, and any certified recordings

or transcripts of testimony taken in a foreign judicial proceeding

concerning such order or judgment of forfeiture, shall be

admissible in evidence in a proceeding brought pursuant to this

section. Such certified order or judgment of forfeiture, when

admitted into evidence, shall constitute probable cause that the

property forfeited by such order or judgment of forfeiture is

subject to forfeiture under this section and creates a rebuttable

presumption of the forfeitability of such property under this

section.

(4) A certified order or judgment of conviction by a court of

competent jurisdiction of a foreign country concerning an unlawful

drug activity which gives rise to forfeiture under this section and

any certified recordings or transcripts of testimony taken in a

foreign judicial proceeding concerning such order or judgment of

conviction shall be admissible in evidence in a proceeding brought

pursuant to this section. Such certified order or judgment of

conviction, when admitted into evidence, creates a rebuttable

presumption that the unlawful drug activity giving rise to

forfeiture under this section has occurred.

(5) The provisions of paragraphs (3) and (4) of this subsection

shall not be construed as limiting the admissibility of any

evidence otherwise admissible, nor shall they limit the ability of

the United States to establish probable cause that property is

subject to forfeiture by any evidence otherwise admissible.

(j) For purposes of this section -

(1) the term ''Attorney General'' means the Attorney General or

his delegate; and

(2) the term ''Secretary of the Treasury'' means the Secretary

of the Treasury or his delegate.

(k) Interbank Accounts. -

(1) In general. -

(A) In general. - For the purpose of a forfeiture under this

section or under the Controlled Substances Act (21 U.S.C. 801

et seq.), if funds are deposited into an account at a foreign

bank, and that foreign bank has an interbank account in the

United States with a covered financial institution (as defined

in section 5318(j)(1) of title 31), the funds shall be deemed

to have been deposited into the interbank account in the United

States, and any restraining order, seizure warrant, or arrest

warrant in rem regarding the funds may be served on the covered

financial institution, and funds in the interbank account, up

to the value of the funds deposited into the account at the

foreign bank, may be restrained, seized, or arrested.

(B) Authority to suspend. - The Attorney General, in

consultation with the Secretary of the Treasury, may suspend or

terminate a forfeiture under this section if the Attorney

General determines that a conflict of law exists between the

laws of the jurisdiction in which the foreign bank is located

and the laws of the United States with respect to liabilities

arising from the restraint, seizure, or arrest of such funds,

and that such suspension or termination would be in the

interest of justice and would not harm the national interests

of the United States.

(2) No requirement for government to trace funds. - If a

forfeiture action is brought against funds that are restrained,

seized, or arrested under paragraph (1), it shall not be

necessary for the Government to establish that the funds are

directly traceable to the funds that were deposited into the

foreign bank, nor shall it be necessary for the Government to

rely on the application of section 984.

(3) Claims brought by owner of the funds. - If a forfeiture

action is instituted against funds restrained, seized, or

arrested under paragraph (1), the owner of the funds deposited

into the account at the foreign bank may contest the forfeiture

by filing a claim under section 983.

(4) Definitions. - For purposes of this subsection, the

following definitions shall apply:

(A) Interbank account. - The term ''interbank account'' has

the same meaning as in section 984(c)(2)(B).

(B) Owner. -

(i) In general. - Except as provided in clause (ii), the

term ''owner'' -

(I) means the person who was the owner, as that term is

defined in section 983(d)(6), of the funds that were

deposited into the foreign bank at the time such funds were

deposited; and

(II) does not include either the foreign bank or any

financial institution acting as an intermediary in the

transfer of the funds into the interbank account.

(ii) Exception. - The foreign bank may be considered the

''owner'' of the funds (and no other person shall qualify as

the owner of such funds) only if -

(I) the basis for the forfeiture action is wrongdoing

committed by the foreign bank; or

(II) the foreign bank establishes, by a preponderance of

the evidence, that prior to the restraint, seizure, or

arrest of the funds, the foreign bank had discharged all or

part of its obligation to the prior owner of the funds, in

which case the foreign bank shall be deemed the owner of

the funds to the extent of such discharged obligation.

-SOURCE-

(Added Pub. L. 99-570, title I, Sec. 1366(a), Oct. 27, 1986, 100

Stat. 3207-35; amended Pub. L. 100-690, title VI, Sec. 6463(a),

(b), 6469(b), 6470(b), (e), (f), 6471(c), Nov. 18, 1988, 102 Stat.

4374, 4377, 4378; Pub. L. 101-73, title IX, Sec. 963(a), (b), Aug.

9, 1989, 103 Stat. 504; Pub. L. 101-647, title I, Sec. 103, title

XXV, Sec. 2508, 2524, 2525(a), title XXXV, Sec. 3531, Nov. 29,

1990, 104 Stat. 4791, 4862, 4873, 4874, 4924; Pub. L. 102-393,

title VI, Sec. 638(d), Oct. 6, 1992, 106 Stat. 1788; Pub. L.

102-519, title I, Sec. 104(a), Oct. 25, 1992, 106 Stat. 3385; Pub.

L. 102-550, title XV, Sec. 1525(c)(1), 1533, Oct. 28, 1992, 106

Stat. 4065, 4066; Pub. L. 103-322, title XXXIII, Sec. 330011(s)(2),

Sept. 13, 1994, 108 Stat. 2146; Pub. L. 103-447, title I, Sec.

102(b), Nov. 2, 1994, 108 Stat. 4693; Pub. L. 106-185, Sec.

2(c)(1), 5(a), 6, 8(a), 20, Apr. 25, 2000, 114 Stat. 210, 213-215,

224; Pub. L. 107-56, title III, Sec. 319(a), 320, 372(b)(1),

373(b), title VIII, Sec. 806, Oct. 26, 2001, 115 Stat. 311, 315,

339, 340, 378; Pub. L. 107-197, title III, Sec. 301(d), June 25,

2002, 116 Stat. 728; Pub. L. 107-273, div. B, title IV, Sec.

4002(a)(2), Nov. 2, 2002, 116 Stat. 1806.)

-REFTEXT-

REFERENCES IN TEXT

The Controlled Substances Act, referred to in subsecs.

(a)(1)(B)(i), (b)(4)(A), and (k)(1)(A), is title II of Pub. L.

91-513, Oct. 27, 1970, 84 Stat. 1242, as amended, which is

classified principally to subchapter I (Sec. 801 et seq.) of

chapter 13 of Title 21, Food and Drugs. For complete classification

of this Act to the Code, see Short Title note set out under section

801 of Title 21 and Tables.

The Federal Rules of Criminal Procedure, referred to in subsec.

(b)(2), (3), are set out in the Appendix to this title.

The Supplemental Rules for Certain Admiralty and Maritime Claims,

referred to in subsec. (b)(2)(A), are set out as part of the

Federal Rules of Civil Procedure in the Appendix to Title 28,

Judiciary and Judicial Procedure.

The Federal Rules of Civil Procedure, referred to in subsec.

(b)(4)(A), are set out in the Appendix to Title 28, Judiciary and

Judicial Procedure.

The customs laws, referred to in subsec. (d), are classified

generally to Title 19, Customs Duties. See, particularly, sections

1902 to 1919 of Title 19.

Section 3 of the Anti Drug Abuse Act of 1986, referred to in

subsec. (e), is section 3 of Pub. L. 99-570, which is set out as a

note under section 801 of Title 21, Food and Drugs.

Section 8(e)(7)(D) of the Federal Deposit Insurance Act, referred

to in subsec. (e)(7), is classified to section 1818(e)(7)(D) of

Title 12, Banks and Banking.

Section 481(h) of the Foreign Assistance Act of 1961, referred to

in subsec. (i)(1)(C), was classified to section 2291(h) of Title

22, Foreign Relations and Intercourse, prior to repeal of subsec.

(h) by Pub. L. 102-583, Sec. 6(b)(2), Nov. 2, 1992, 106 Stat. 4932.

Reference to section 481(h) of the Foreign Assistance Act of 1961

probably should be to section 490(a)(1) of the Act, which is

classified to section 2291j(a)(1) of Title 22.

-MISC2-

AMENDMENTS

2002 - Subsec. (a)(1)(H). Pub. L. 107-197 added subpar. (H).

Subsec. (d). Pub. L. 107-273 substituted ''proceeds from the sale

of such property under this section'' for ''proceeds from the sale

of this section''.

2001 - Subsec. (a)(1)(A). Pub. L. 107-56, Sec. 372(b)(1), 373(b),

struck out ''of section 5313(a) or 5324(a) of title 31, or'' after

''transaction or attempted transaction in violation'', substituted

'', 1957 or 1960'' for ''or 1957'', and struck out at end

''However, no property shall be seized or forfeited in the case of

a violation of section 5313(a) of title 31 by a domestic financial

institution examined by a Federal bank supervisory agency or a

financial institution regulated by the Securities and Exchange

Commission or a partner, director, or employee thereof.''

Subsec. (a)(1)(B). Pub. L. 107-56, Sec. 320, amended subpar. (B)

generally. Prior to amendment, subpar. (B) read as follows: ''Any

property, real or personal, within the jurisdiction of the United

States, constituting, derived from, or traceable to, any proceeds

obtained directly or indirectly from an offense against a foreign

nation involving the manufacture, importation, sale, or

distribution of a controlled substance (as such term is defined for

the purposes of the Controlled Substances Act), within whose

jurisdiction such offense would be punishable by death or

imprisonment for a term exceeding one year and which would be

punishable under the laws of the United States by imprisonment for

a term exceeding one year if such act or activity constituting the

offense against the foreign nation had occurred within the

jurisdiction of the United States.''

Subsec. (a)(1)(G). Pub. L. 107-56, Sec. 806, added subpar. (G).

Subsec. (k). Pub. L. 107-56, Sec. 319(a), added subsec. (k).

2000 - Subsec. (a)(1). Pub. L. 106-185, Sec. 2(c)(1)(A),

substituted ''The'' for ''Except as provided in paragraph (2),

the'' in introductory provisions.

Subsec. (a)(1)(C). Pub. L. 106-185, Sec. 20(a), substituted ''or

any offense constituting 'specified unlawful activity' (as defined

in section 1956(c)(7) of this title), or a conspiracy to commit

such offense.'' for ''or a violation of section 1341 or 1343 of

such title affecting a financial institution.''

Subsec. (a)(2). Pub. L. 106-185, Sec. 2(c)(1)(B), 20(b), added

par. (2) and struck out former par. (2) which read as follows: ''No

property shall be forfeited under this section to the extent of the

interest of an owner or lienholder by reason of any act or omission

established by that owner or lienholder to have been committed

without the knowledge of that owner or lienholder.''

Subsec. (b). Pub. L. 106-185, Sec. 5(a), amended subsec. (b)

generally. Prior to amendment, subsec. (b) read as follows:

''(b)(1) Any property -

''(A) subject to forfeiture to the United States under

subparagraph (A) or (B) of subsection (a)(1) of this section -

''(i) may be seized by the Attorney General; or

''(ii) in the case of property involved in a violation of

section 5313(a) or 5324 of title 31, United States Code, or

section 1956 or 1957 of this title investigated by the

Secretary of the Treasury or the United States Postal Service,

may be seized by the Secretary of the Treasury or the Postal

Service; and

''(B) subject to forfeiture to the United States under

subparagraph (C) of subsection (a)(1) of this section may be

seized by the Attorney General, the Secretary of the Treasury, or

the Postal Service.

''(2) Property shall be seized under paragraph (1) of this

subsection upon process issued pursuant to the Supplemental Rules

for certain Admiralty and Maritime Claims by any district court of

the United States having jurisdiction over the property, except

that seizure without such process may be made when -

''(A) the seizure is pursuant to a lawful arrest or search; or

''(B) the Attorney General, the Secretary of the Treasury, or

the Postal Service, as the case may be, has obtained a warrant

for such seizure pursuant to the Federal Rules of Criminal

Procedure, in which event proceedings under subsection (d) of

this section shall be instituted promptly.''

Subsec. (e)(6). Pub. L. 106-185, Sec. 6, added par. (6) and

struck out former par. (6) which read as follows: ''in the case of

property referred to in subsection (a)(1)(C), restore forfeited

property to any victim of an offense described in subsection

(a)(1)(C); or''.

Subsec. (g). Pub. L. 106-185, Sec. 8(a), amended subsec. (g)

generally. Prior to amendment, subsec. (g) read as follows: ''The

filing of an indictment or information alleging a violation of law,

Federal, State, or local, which is also related to a forfeiture

proceeding under this section shall, upon motion of the United

States and for good cause shown, stay the forfeiture proceeding.''

1994 - Subsec. (e)(7). Pub. L. 103-322, Sec. 330011(s)(2),

amended directory language of Pub. L. 101-647, Sec. 2525(a)(2). See

1990 Amendment note below.

Subsec. (i)(1)(C). Pub. L. 103-447, which directed substitution

of ''section 490(a)(1) of the Foreign Assistance Act of 1961'' for

''paragraph (1)(A) of section 481(h) of the Foreign Assistance Act

of 1961'', could not be executed because the words ''paragraph

(1)(A) of'' do not appear in text.

1992 - Subsec. (a)(1)(A). Pub. L. 102-550, Sec. 1525(c)(1),

substituted ''5324(a)'' for ''5324''.

Subsec. (a)(1)(C). Pub. L. 102-393 inserted provisions relating

to sections 471, 472, 473, 474, 476, 477, 478, 479, 480, 481, 485,

486, 487, 488, 501, 502, 510, 542, 545, 842, 844, 1028, 1029, and

1030 of this title.

Subsec. (a)(1)(F). Pub. L. 102-519 added subpar. (F).

Subsec. (e). Pub. L. 102-550, Sec. 1533, struck out penultimate

sentence of concluding provisions which read as follows: ''The

authority granted to the Secretary of the Treasury and the Postal

Service pursuant to this subsection shall apply only to property

that has been administratively forfeited.''

1990 - Subsec. (a)(1)(C). Pub. L. 101-647, Sec. 2524(1), inserted

''1032,'' after ''1014,'' and ''or a violation of section 1341 or

1343 of such title affecting a financial institution'' before

period at end.

Subsec. (a)(1)(D), (E). Pub. L. 101-647, Sec. 2525(a)(1), added

subpars. (D) and (E).

Subsec. (b). Pub. L. 101-647, Sec. 2524(2), added par. (1) and

par. (2) introductory provisions, redesignated former pars. (1) and

(2) as subpars. (A) and (B) of par. (2), and struck out former

introductory provisions which read as follows: ''Any property

subject to forfeiture to the United States under subsection

(a)(1)(A) or (a)(1)(B) of this section may be seized by the

Attorney General or, with respect to property involved in a

violation of section 5313(a) or 5324 of title 31 or of section 1956

or 1957 of this title investigated by the Secretary of the Treasury

or the Postal Service may be seized by the Secretary of the

Treasury or the Postal Service, in each case upon process issued

pursuant to the Supplemental Rules for certain Admiralty and

Maritime Claims by any district court of the United States having

jurisdiction over the property, except that seizure without such

process may be made when - ''.

Subsec. (d). Pub. L. 101-647, Sec. 3531, inserted a period at

end.

Subsec. (e)(3), (4). Pub. L. 101-647, Sec. 2524(3), (4), struck

out ''(if the affected financial institution is in receivership or

liquidation)'' after ''subsection (a)(1)(C)''.

Subsec. (e)(6). Pub. L. 101-647, Sec. 2508, added par. (6).

Subsec. (e)(7). Pub. L. 101-647, Sec. 2525(a)(2), as amended by

Pub. L. 103-322, Sec. 330011(s)(2), added par. (7).

Subsec. (i). Pub. L. 101-647, Sec. 103(1), struck out

introductory provisions which read as follows: ''In the case of

property subject to forfeiture under subsection (a)(1)(B), the

following additional provisions shall, to the extent provided by

treaty, apply:''.

Subsec. (i)(1). Pub. L. 101-647, Sec. 103(3), substituted first

sentence for ''Notwithstanding any other provision of law, except

section 3 of the Anti Drug Abuse Act of 1986, whenever property is

civilly or criminally forfeited under the Controlled Substances

Act, the Attorney General may, with the concurrence of the

Secretary of State, equitably transfer any conveyance, currency,

and any other type of personal property which the Attorney General

may designate by regulation for equitable transfer, or any amounts

realized by the United States from the sale of any real or personal

property forfeited under the Controlled Substances Act to an

appropriate foreign country to reflect generally the contribution

of any such foreign country participating directly or indirectly in

any acts which led to the seizure or forfeiture of such property.

Such property when forfeited pursuant to subsection (a)(1)(B) of

this section may also be transferred to a foreign country pursuant

to a treaty providing for the transfer of forfeited property to

such foreign country.''

Pub. L. 101-647, Sec. 103(2), (4), (5), inserted ''or the

Secretary of the Treasury'' after ''Attorney General'' in two

places, realigned margin, and struck out at end ''Transfers may be

made under this subsection during a fiscal year to a country that

is subject to paragraph (1)(A) of section 481(h) of the Foreign

Assistance Act of 1961 (relating to restrictions on United States

assistance) only if there is a certification in effect with respect

to that country for that fiscal year under paragraph (2) of that

section.''

Subsec. (i)(2) to (5). Pub. L. 101-647, Sec. 103(2), realigned

margins.

1989 - Subsec. (a)(1)(C). Pub. L. 101-73, Sec. 963(a), added

subpar. (C).

Subsec. (e). Pub. L. 101-73, Sec. 963(b), substituted ''determine

- '' for ''determine to - '' in introductory provisions, inserted

''The United States shall not be liable in any action arising out

of a transfer under paragraph (3), (4), or (5) of this

subsection.'' in closing provisions, added pars. (1) to (5), and

struck out former pars. (1) and (2) which read as follows:

''(1) any other Federal agency; or

''(2) any State or local law enforcement agency which

participated directly in any of the acts which led to the seizure

or forfeiture of the property.''

1988 - Subsec. (a)(1)(A). Pub. L. 100-690, Sec. 6463(a)(1), added

subpar. (A) and struck out former subpar. (A) which read as

follows: ''Any property, real or personal, which represents the

gross receipts a person obtains, directly or indirectly, as a

result of a violation of section 1956 or 1957 of this title, or

which is traceable to such gross receipts.''

Subsec. (a)(1)(B). Pub. L. 100-690, Sec. 6470(b), inserted '',

real or personal,'' after ''property'', substituted ''constituting,

derived from, or traceable to, any proceeds obtained directly or

indirectly from'' for ''which represents the proceeds of'', ''such

offense would'' for ''such offense or activity would'', and

''punishable under the laws of the United States by imprisonment''

for ''punishable by imprisonment'', and inserted ''constituting the

offense against the foreign nation'' after ''such act or

activity''.

Subsec. (a)(1)(C). Pub. L. 100-690, Sec. 6463(a)(2), struck out

subpar. (C) which read as follows: ''Any coin and currency (or

other monetary instrument as the Secretary of the Treasury may

prescribe) or any interest in other property, including any deposit

in a financial institution, traceable to such coin or currency

involved in a transaction or attempted transaction in violation of

section 5313(a) or 5324 of title 31 may be seized and forfeited to

the United States Government. No property or interest in property

shall be seized or forfeited if the violation is by a domestic

financial institution examined by a Federal bank supervisory agency

or a financial institution regulated by the Securities and Exchange

Commission or a partner, director, officer, or employee thereof.''

Subsec. (a)(2). Pub. L. 100-690, Sec. 6470(e), substituted

''omission'' for ''emission''.

Subsec. (b). Pub. L. 100-690, Sec. 6463(b), which directed

amendment of subsec. (b) by substituting ''involved in a violation

of section 5313(a) or 5324 of title 31 or of section 1956 or 1957

of this title investigated by the Secretary of the Treasury'' for

''involved in a violation of section 1956 or 1957 of this title

investigated by the Secretary of the Treasury, and any property

subject to forfeiture under subsection (a)(1)(C) of this section''

was executed by substituting the new language for ''involved in a

violation of section 1956 or 1957 of this title investigated by the

Secretary of the Treasury, may be seized by the Secretary of the

Treasury, and any property subject to forfeiture under subsection

(a)(1)(C) of this section'' in introductory provisions, to reflect

the probable intent of Congress.

Pub. L. 100-690, Sec. 6469(b)(1), inserted ''or the Postal

Service'' after ''Secretary of the Treasury'' in two places in

introductory provisions.

Subsec. (b)(2). Pub. L. 100-690, Sec. 6469(b)(2), substituted

''the Attorney General, the Secretary of the Treasury, or the

Postal Service'' for ''the Attorney General or the Secretary of the

Treasury''.

Subsec. (c). Pub. L. 100-690, Sec. 6469(b)(2), substituted ''the

Attorney General, the Secretary of the Treasury, or the Postal

Service'' for ''the Attorney General or the Secretary of the

Treasury'' in two places.

Subsec. (d). Pub. L. 100-690, Sec. 6469(b)(2), (3), substituted

''the Attorney General, the Secretary of the Treasury, or the

Postal Service'' for ''the Attorney General or the Secretary of the

Treasury'' and inserted provision that Attorney General have sole

responsibility for disposing of petitions for remission or

mitigation with respect to property involved in a judicial

forfeiture proceeding.

Subsec. (e). Pub. L. 100-690, Sec. 6469(b)(2), which directed the

substitution of ''the Attorney General, the Secretary of the

Treasury, or the Postal Service'' for ''the Attorney General or the

Secretary of the Treasury'' was executed to reflect the probable

intent of Congress by making the substitution in four places

without regard as to whether or not the initial article ''the'' was

capitalized.

Pub. L. 100-690, Sec. 6469(b)(4), inserted provision that the

authority granted to the Secretary of the Treasury and the Postal

Service apply only to property that has been administratively

forfeited.

Subsec. (g). Pub. L. 100-690, Sec. 6471(c), inserted '', Federal,

State or local,'' after ''law''.

Subsec. (i)(1). Pub. L. 100-690, Sec. 6470(f), substituted

''subsection'' for ''subchapter'' in fourth sentence.

TERMINATION DATE OF 2001 AMENDMENT

Amendments by title III of Pub. L. 107-56 to terminate effective

on and after the first day of fiscal year 2005 if Congress enacts a

joint resolution that such amendments no longer have the force of

law, see section 303 of Pub. L. 107-56, set out as a Four-Year

Congressional Review; Expedited Consideration note under section

5311 of Title 31, Money and Finance.

EFFECTIVE DATE OF 2000 AMENDMENT

Amendment by Pub. L. 106-185 applicable to any forfeiture

proceeding commenced on or after the date that is 120 days after

Apr. 25, 2000, see section 21 of Pub. L. 106-185, set out as a note

under section 1324 of Title 8, Aliens and Nationality.

EFFECTIVE DATE OF 1994 AMENDMENT

Section 330011(s)(2) of Pub. L. 103-322 provided that the

amendment made by that section is effective as of the date on which

section 2525(a)(2) of Pub. L. 101-647 took effect.

SHORT TITLE OF 2000 AMENDMENT

Pub. L. 106-185, Sec. 1(a), Apr. 25, 2000, 114 Stat. 202,

provided that: ''This Act (enacting sections 983 and 985 of this

title and sections 2466 and 2467 of Title 28, Judiciary and

Judicial Procedure, amending this section, sections 982 to 984,

986, 2232, 2254, and 3322 of this title, section 1324 of Title 8,

Aliens and Nationality, section 1621 of Title 19, Customs Duties,

section 881 of Title 21, Food and Drugs, sections 524, 2461, 2465,

and 2680 of Title 28, and section 2996f of Title 42, The Public

Health and Welfare, repealing section 888 of Title 21, and enacting

provisions set out as notes under section 1324 of Title 8, section

2466 of Title 28, and section 3724 of Title 31, Money and Finance)

may be cited as the 'Civil Asset Forfeiture Reform Act of 2000'.''

SHORT TITLE OF 1988 AMENDMENT

Section 6181 of Pub. L. 100-690 provided that: ''This subtitle

(subtitle E (Sec. 6181-6187) of title VI of Pub. L. 100-690,

enacting sections 5325 and 5326 of Title 31, Money and Finance,

amending sections 1956 and 1957 of this title, sections 1730d,

1829b, 1953, 1955, 3403, 3412, 3413, 3417, and 3420 of Title 12,

Banks and Banking, and sections 5312, 5318, and 5321 of Title 31)

may be cited as the 'Money Laundering Prosecution Improvements Act

of 1988'.''

SHORT TITLE OF 1986 AMENDMENT

Section 1351 of Pub. L. 99-570 provided that: ''This subtitle

(subtitle H (Sec.1351-1367) of title I of Pub. L. 99-570, enacting

this section, sections 982, 1956, and 1957 of this title and

section 5324 of Title 31, Money and Finance, amending sections

1952, 1961, and 2516 of this title, sections 1464, 1730, 1786,

1817, 1818, 3403, and 3413 of Title 12, Banks and Banking, and

sections 5312, 5316 to 5318, 5321, and 5322 of Title 31, and

enacting provisions set out as notes under this section, sections

1464 and 1730 of Title 12, and sections 5315 to 5317, 5321, and

5324 of Title 31) may be cited as the 'Money Laundering Control Act

of 1986'.''

SEVERABILITY

Section 1367 of Pub. L. 99-570 provided that: ''If any provision

of this subtitle (see Short Title of 1986 Amendment note above) or

any amendment made by this Act (see Short Title of 1986 Amendment

note set out under section 801 of Title 21, Food and Drugs), or the

application thereof to any person or circumstances is held invalid,

the provisions of every other part, and their application, shall

not be affected thereby.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1956 of this title; title

8 section 1324; title 12 sections 1831k, 3412; title 19 section

1613b; title 21 section 881; title 31 sections 5317, 5332, 9703.

-CITE-

18 USC Sec. 982 01/06/03

-EXPCITE-

TITLE 18 - CRIMES AND CRIMINAL PROCEDURE

PART I - CRIMES

CHAPTER 46 - FORFEITURE

-HEAD-

Sec. 982. Criminal forfeiture

-STATUTE-

(a)(1) The court, in imposing sentence on a person convicted of

an offense in violation of section 1956, 1957, or 1960 of this

title, shall order that the person forfeit to the United States any

property, real or personal, involved in such offense, or any

property traceable to such property.

(2) The court, in imposing sentence on a person convicted of a

violation of, or a conspiracy to violate -

(A) section 215, 656, 657, 1005, 1006, 1007, 1014, 1341, 1343,

or 1344 of this title, affecting a financial institution, or

(B) section 471, 472, 473, 474, 476, 477, 478, 479, 480, 481,

485, 486, 487, 488, 501, 502, 510, 542, 545, 842, 844, 1028,

1029, or 1030 of this title,

shall order that the person forfeit to the United States any

property constituting, or derived from, proceeds the person

obtained directly or indirectly, as the result of such violation.

(3) The court, in imposing a sentence on a person convicted of an

offense under -

(A) section 666(a)(1) (relating to Federal program fraud);

(B) section 1001 (relating to fraud and false statements);

(C) section 1031 (relating to major fraud against the United

States);

(D) section 1032 (relating to concealment of assets from

conservator, receiver, or liquidating agent of insured financial

institution);

(E) section 1341 (relating to mail fraud); or

(F) section 1343 (relating to wire fraud),

involving the sale of assets acquired or held by the Resolution

Trust Corporation, the Federal Deposit Insurance Corporation, as

conservator or receiver for a financial institution or any other

conservator for a financial institution appointed by the Office of

the Comptroller of the Currency or the Office of Thrift

Supervision, or the National Credit Union Administration, as

conservator or liquidating agent for a financial institution, shall

order that the person forfeit to the United States any property,

real or personal, which represents or is traceable to the gross

receipts obtained, directly or indirectly, as a result of such

violation.

(4) With respect to an offense listed in subsection (a)(3)

committed for the purpose of executing or attempting to execute any

scheme or artifice to defraud, or for obtaining money or property

by means of false or fraudulent statements, pretenses,

representations, or promises, the gross receipts of such an offense

shall include any property, real or personal, tangible or

intangible, which is obtained, directly or indirectly, as a result

of such offense.

(5) The court, in imposing sentence on a person convicted of a

violation or conspiracy to violate -

(A) section 511 (altering or removing motor vehicle

identification numbers);

(B) section 553 (importing or exporting stolen motor vehicles);

(C) section 2119 (armed robbery of automobiles);

(D) section 2312 (transporting stolen motor vehicles in

interstate commerce); or

(E) section 2313 (possessing or selling a stolen motor vehicle

that has moved in interstate commerce);

shall order that the person forfeit to the United States any

property, real or personal, which represents or is traceable to the

gross proceeds obtained, directly or indirectly, as a result of

such violation.

(6)(A) The court, in imposing sentence on a person convicted of a

violation of, or conspiracy to violate, section 274(a), 274A(a)(1),

or 274A(a)(2) of the Immigration and Nationality Act or section

1425, 1426, 1427, 1541, 1542, 1543, 1544, or 1546 of this title, or

a violation of, or conspiracy to violate, section 1028 of this

title if committed in connection with passport or visa issuance or

use, shall order that the person forfeit to the United States,

regardless of any provision of State law -

(i) any conveyance, including any vessel, vehicle, or aircraft

used in the commission of the offense of which the person is

convicted; and

(ii) any property real or personal -

(I) that constitutes, or is derived from or is traceable to

the proceeds obtained directly or indirectly from the

commission of the offense of which the person is convicted; or

(II) that is used to facilitate, or is intended to be used to

facilitate, the commission of the offense of which the person

is convicted.

(B) The court, in imposing sentence on a person described in

subparagraph (A), shall order that the person forfeit to the United

States all property described in that subparagraph.

(7) The court, in imposing sentence on a person convicted of a

Federal health care offense, shall order the person to forfeit

property, real or personal, that constitutes or is derived,

directly or indirectly, from gross proceeds traceable to the

commission of the offense.

(8) The court, in sentencing a defendant convicted of an offense

under section 1028, 1029, 1341, 1342, 1343, or 1344, or of a

conspiracy to commit such an offense, if the offense involves

telemarketing (as that term is defined in section 2325), shall

order that the defendant forfeit to the United States any real or

personal property -

(A) used or intended to be used to commit, to facilitate, or to

promote the commission of such offense; and

(B) constituting, derived from, or traceable to the gross

proceeds that the defendant obtained directly or indirectly as a

result of the offense.

(b)(1) The forfeiture of property under this section, including

any seizure and disposition of the property and any related

judicial or administrative proceeding, shall be governed by the

provisions of section 413 (other than subsection (d) of that

section) of the Comprehensive Drug Abuse Prevention and Control Act

of 1970 (21 U.S.C. 853).

(2) The substitution of assets provisions of subsection 413(p)

shall not be used to order a defendant to forfeit assets in place

of the actual property laundered where such defendant acted merely

as an intermediary who handled but did not retain the property in

the course of the money laundering offense unless the defendant, in

committing the offense or offenses giving rise to the forfeiture,

conducted three or more separate transactions involving a total of

$100,000 or more in any twelve month period.

-SOURCE-

(Added Pub. L. 99-570, title I, Sec. 1366(a), Oct. 27, 1986, 100

Stat. 3207-39; amended Pub. L. 100-690, title VI, Sec. 6463(c),

6464, Nov. 18, 1988, 102 Stat. 4374, 4375; Pub. L. 101-73, title

IX, Sec. 963(c), Aug. 9, 1989, 103 Stat. 504; Pub. L. 101-647,

title XIV, Sec. 1401, 1403, title XXV, Sec. 2525(b), Nov. 29, 1990,

104 Stat. 4835, 4874; Pub. L. 102-393, title VI, Sec. 638(e), Oct.

6, 1992, 106 Stat. 1788; Pub. L. 102-519, title I, Sec. 104(b),

Oct. 25, 1992, 106 Stat. 3385; Pub. L. 102-550, title XV, Sec.

1512(c), Oct. 28, 1992, 106 Stat. 4058; Pub. L. 103-322, title

XXXIII, Sec. 330011(s)(1), Sept. 13, 1994, 108 Stat. 2145; Pub. L.

104-191, title II, Sec. 249(a), (b), Aug. 21, 1996, 110 Stat. 2020;

Pub. L. 104-208, div. C, title II, Sec. 217, Sept. 30, 1996, 110

Stat. 3009-573; Pub. L. 105-184, Sec. 2, June 23, 1998, 112 Stat.

520; Pub. L. 105-318, Sec. 6(a), Oct. 30, 1998, 112 Stat. 3010;

Pub. L. 106-185, Sec. 18(b), Apr. 25, 2000, 114 Stat. 223; Pub. L.

107-56, title III, Sec. 372(b)(2), Oct. 26, 2001, 115 Stat. 339;

Pub. L. 107-273, div. B, title IV, Sec. 4002(b)(10), Nov. 2, 2002,

116 Stat. 1808.)

-REFTEXT-

REFERENCES IN TEXT

Sections 274 and 274A of the Immigration and Nationality Act,

referred to in subsec. (a)(6)(A), are classified to sections 1324

and 1324a, respectively, of Title 8, Aliens and Nationality.

-MISC2-

AMENDMENTS

2002 - Subsec. (a)(8). Pub. L. 107-273 substituted ''court'' for

''Court''.

2001 - Subsec. (a)(1). Pub. L. 107-56 struck out ''of section

5313(a), 5316, or 5324 of title 31, or'' before ''of section 1956,

1957, or 1960 of this title'' and struck out at end ''However, no

property shall be seized or forfeited in the case of a violation of

section 5313(a) of title 31 by a domestic financial institution

examined by a Federal bank supervisory agency or a financial

institution regulated by the Securities and Exchange Commission or

a partner, director, or employee thereof.''

2000 - Subsec. (a)(6). Pub. L. 106-185, Sec. 18(b)(2), (3),

designated concluding provisions of subpar. (A) as subpar. (B),

substituted ''The court, in imposing sentence on a person described

in subparagraph (A)'' for ''The court, in imposing sentence on such

person'' and ''that subparagraph'' for ''this subparagraph'', and

struck out former subpar. (B), which read as follows: ''The

criminal forfeiture of property under subparagraph (A), including

any seizure and disposition of the property and any related

administrative or judicial proceeding, shall be governed by the

provisions of section 413 of the Comprehensive Drug Abuse

Prevention and Control Act of 1970 (21 U.S.C. 853), other than

subsections (a) and (d) of such section 413.''

Subsec. (a)(6)(A). Pub. L. 106-185, Sec. 18(b)(1)(A), inserted

''section 274(a), 274A(a)(1), or 274A(a)(2) of the Immigration and

Nationality Act or'' after ''a person convicted of a violation of,

or conspiracy to violate,'' in introductory provisions.

Subsec. (a)(6)(A)(i). Pub. L. 106-185, Sec. 18(b)(1)(B),

substituted ''the offense of which the person is convicted'' for

''a violation of, or a conspiracy to violate, subsection (a)''.

Subsec. (a)(6)(A)(ii)(I), (II). Pub. L. 106-185, Sec.

18(b)(1)(C), substituted ''the offense of which the person is

convicted'' for ''a violation of, or a conspiracy to violate,

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

and Nationality Act, or section 1028, 1425, 1426, 1427, 1541, 1542,

1543, 1544, or 1546 of this title''.

1998 - Subsec. (a)(6), (7). Pub. L. 105-184, Sec. 2(1)(A), which

directed the amendment of subsec. (a) ''by redesignating the second

paragraph designated as paragraph (6) as paragraph (7)'', was

executed by redesignating par. (6), relating to forfeitures for

Federal health care offenses, as (7), to reflect the probable

intent of Congress.

Subsec. (a)(8). Pub. L. 105-184, Sec. 2(1)(B), added par. (8).

Subsec. (b)(1). Pub. L. 105-318 amended par. (1) generally.

Prior to amendment, par. (1) read as follows: ''Property subject to

forfeiture under this section, any seizure and disposition thereof,

and any administrative or judicial proceeding in relation thereto,

shall be governed -

''(A) in the case of a forfeiture under subsection (a)(1),

(a)(6), or (a)(8) of this section, by subsections (c) and (e)

through (p) of section 413 of the Comprehensive Drug Abuse

Prevention and Control Act of 1970 (21 U.S.C. 853); and

''(B) in the case of a forfeiture under subsection (a)(2) of

this section, by subsections (b), (c), (e), and (g) through (p)

of section 413 of such Act.''

Subsec. (b)(1)(A). Pub. L. 105-184, Sec. 2(2), substituted

''(a)(1), (a)(6), or (a)(8)'' for ''(a)(1) or (a)(6)''.

1996 - Subsec. (a)(6). Pub. L. 104-208 added par. (6) relating to

criminal forfeiture for passport and visa related offenses.

Pub. L. 104-191, Sec. 249(a), added par. (6) relating to

forfeitures for Federal health care offenses.

Subsec. (b)(1)(A). Pub. L. 104-191, Sec. 249(b), inserted ''or

(a)(6)'' after ''(a)(1)''.

1994 - Subsec. (a)(1). Pub. L. 103-322, Sec. 330011(s)(1),

amended directory language of Pub. L. 101-647, Sec. 1401. See 1990

Amendment note below.

1992 - Subsec. (a)(1). Pub. L. 102-550 substituted '', 1957, or

1960'' for ''or 1957''.

Subsec. (a)(2). Pub. L. 102-393 amended par. (2) generally.

Prior to amendment, par. (2) read as follows: ''The court, in

imposing sentence on a person convicted of a violation of, or a

conspiracy to violate, section 215, 656, 657, 1005, 1006, 1007,

1014, 1341, 1343, or 1344 of this title, affecting a financial

institution, shall order that the person forfeit to the United

States any property constituting, or derived from, proceeds the

person obtained directly or indirectly, as the result of such

violation.''

Subsec. (a)(5). Pub. L. 102-519 added par. (5).

1990 - Subsec. (a)(1). Pub. L. 101-647, Sec. 1401, as amended by

Pub. L. 103-322, Sec. 330011(s)(1), inserted '', 5316,'' after

''5313(a)'', the first place appearing.

Subsec. (a)(3), (4). Pub. L. 101-647, Sec. 2525(b), added pars.

(3) and (4).

Subsec. (b)(2). Pub. L. 101-647, Sec. 1403, inserted before

period at end ''unless the defendant, in committing the offense or

offenses giving rise to the forfeiture, conducted three or more

separate transactions involving a total of $100,000 or more in any

twelve month period''.

1989 - Subsec. (a). Pub. L. 101-73, Sec. 963(c)(1), designated

existing provisions as par. (1) and added par. (2).

Subsec. (b). Pub. L. 101-73, Sec. 963(c)(2), struck out ''The

provisions of subsections 413(c) and (e) through (p) of the

Comprehensive Drug Abuse Prevention and Control Act of 1970 (21

U.S.C. 853(c) and (e)-(p)) shall apply to property subject to

forfeiture under this section, to any seizure or disposition

thereof, and to any administrative or judicial proceeding in

relation thereto, if not inconsistent with this section. However,

the'', added par. (1), and inserted ''(2) The'' before

''substitution of assets''.

1988 - Subsec. (a). Pub. L. 100-690, Sec. 6463(c), amended

subsec. (a) generally. Prior to amendment, subsec. (a) read as

follows: ''The court, in imposing sentence on a person convicted of

an offense under section 1956 or 1957 of this title shall order

that the person forfeit to the United States any property, real or

personal, which represents the gross receipts the person obtained,

directly or indirectly, as a result of such offense, or which is

traceable to such gross receipts.''

Subsec. (b). Pub. L. 100-690, Sec. 6464, substituted ''(p)'' for

''(o)'' in two places and inserted at end ''However, the

substitution of assets provisions of subsection 413(p) not be used

to order a defendant to forfeit assets in place of the actual

property laundered where such defendant acted merely as an

intermediary who handled but did not retain the property in the

course of the money laundering offense.''

TERMINATION DATE OF 2001 AMENDMENT

Amendments by title III of Pub. L. 107-56 to terminate effective

on and after the first day of fiscal year 2005 if Congress enacts a

joint resolution that such amendments no longer have the force of

law, see section 303 of Pub. L. 107-56, set out as a Four-Year

Congressional Review; Expedited Consideration note under section

5311 of Title 31, Money and Finance.

EFFECTIVE DATE OF 2000 AMENDMENT

Amendment by Pub. L. 106-185 applicable to any forfeiture

proceeding commenced on or after the date that is 120 days after

Apr. 25, 2000, see section 21 of Pub. L. 106-185, set out as a note

under section 1324 of Title 8, Aliens and Nationality.

EFFECTIVE DATE OF 1994 AMENDMENT

Section 330011(s)(1) of Pub. L. 103-322 provided that the

amendment made by that section is effective as of the date on which

section 1401 of Pub. L. 101-647 took effect.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1956 of this title; title

12 sections 1831k, 3412; title 31 section 9703.

-CITE-

18 USC Sec. 983 01/06/03

-EXPCITE-

TITLE 18 - CRIMES AND CRIMINAL PROCEDURE

PART I - CRIMES

CHAPTER 46 - FORFEITURE

-HEAD-

Sec. 983. General rules for civil forfeiture proceedings

-STATUTE-

(a) Notice; Claim; Complaint. -

(1)(A)(i) Except as provided in clauses (ii) through (v), in

any nonjudicial civil forfeiture proceeding under a civil

forfeiture statute, with respect to which the Government is

required to send written notice to interested parties, such

notice shall be sent in a manner to achieve proper notice as soon

as practicable, and in no case more than 60 days after the date

of the seizure.

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

expires, the Government files a civil judicial forfeiture action

against the property and provides notice of that action as

required by law.

(iii) If, before the 60-day period expires, the Government does

not file a civil judicial forfeiture action, but does obtain a

criminal indictment containing an allegation that the property is

subject to forfeiture, the Government shall either -

(I) send notice within the 60 days and continue the

nonjudicial civil forfeiture proceeding under this section; or

(II) terminate the nonjudicial civil forfeiture proceeding,

and take the steps necessary to preserve its right to maintain

custody of the property as provided in the applicable criminal

forfeiture statute.

(iv) In a case in which the property is seized by a State or

local law enforcement agency and turned over to a Federal law

enforcement agency for the purpose of forfeiture under Federal

law, notice shall be sent not more than 90 days after the date of

seizure by the State or local law enforcement agency.

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

until after the seizure or turnover but is determined before a

declaration of forfeiture is entered, notice shall be sent to

such interested party not later than 60 days after the

determination by the Government of the identity of the party or

the party's interest.

(B) A supervisory official in the headquarters office of the

seizing agency may extend the period for sending notice under

subparagraph (A) for a period not to exceed 30 days (which period

may not be further extended except by a court), if the official

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

(C) Upon motion by the Government, a court may extend the

period for sending notice under subparagraph (A) for a period not

to exceed 60 days, which period may be further extended by the

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

based on a written certification of a supervisory official in the

headquarters office of the seizing agency, that the conditions in

subparagraph (D) are present.

(D) The period for sending notice under this paragraph may be

extended only if there is reason to believe that notice may have

an adverse result, including -

(i) endangering the life or physical safety of an individual;

(ii) flight from prosecution;

(iii) destruction of or tampering with evidence;

(iv) intimidation of potential witnesses; or

(v) otherwise seriously jeopardizing an investigation or

unduly delaying a trial.

(E) Each of the Federal seizing agencies conducting nonjudicial

forfeitures under this section shall report periodically to the

Committees on the Judiciary of the House of Representatives and

the Senate the number of occasions when an extension of time is

granted under subparagraph (B).

(F) If the Government does not send notice of a seizure of

property in accordance with subparagraph (A) to the person from

whom the property was seized, and no extension of time is

granted, the Government shall return the property to that person

without prejudice to the right of the Government to commence a

forfeiture proceeding at a later time. The Government shall not

be required to return contraband or other property that the

person from whom the property was seized may not legally possess.

(2)(A) Any person claiming property seized in a nonjudicial

civil forfeiture proceeding under a civil forfeiture statute may

file a claim with the appropriate official after the seizure.

(B) A claim under subparagraph (A) may be filed not later than

the deadline set forth in a personal notice letter (which

deadline may be not earlier than 35 days after the date the

letter is mailed), except that if that letter is not received,

then a claim may be filed not later than 30 days after the date

of final publication of notice of seizure.

(C) A claim shall -

(i) identify the specific property being claimed;

(ii) state the claimant's interest in such property; and

(iii) be made under oath, subject to penalty of perjury.

(D) A claim need not be made in any particular form. Each

Federal agency conducting nonjudicial forfeitures under this

section shall make claim forms generally available on request,

which forms shall be written in easily understandable language.

(E) Any person may make a claim under subparagraph (A) without

posting bond with respect to the property which is the subject of

the claim.

(3)(A) Not later than 90 days after a claim has been filed, the

Government shall file a complaint for forfeiture in the manner

set forth in the Supplemental Rules for Certain Admiralty and

Maritime Claims or return the property pending the filing of a

complaint, except that a court in the district in which the

complaint will be filed may extend the period for filing a

complaint for good cause shown or upon agreement of the parties.

(B) If the Government does not -

(i) file a complaint for forfeiture or return the property,

in accordance with subparagraph (A); or

(ii) before the time for filing a complaint has expired -

(I) obtain a criminal indictment containing an allegation

that the property is subject to forfeiture; and

(II) take the steps necessary to preserve its right to

maintain custody of the property as provided in the

applicable criminal forfeiture statute,

the Government shall promptly release the property pursuant to

regulations promulgated by the Attorney General, and may not take

any further action to effect the civil forfeiture of such

property in connection with the underlying offense.

(C) In lieu of, or in addition to, filing a civil forfeiture

complaint, the Government may include a forfeiture allegation in

a criminal indictment. If criminal forfeiture is the only

forfeiture proceeding commenced by the Government, the

Government's right to continued possession of the property shall

be governed by the applicable criminal forfeiture statute.

(D) No complaint may be dismissed on the ground that the

Government did not have adequate evidence at the time the

complaint was filed to establish the forfeitability of the

property.

(4)(A) In any case in which the Government files in the

appropriate United States district court a complaint for

forfeiture of property, any person claiming an interest in the

seized property may file a claim asserting such person's interest

in the property in the manner set forth in the Supplemental Rules

for Certain Admiralty and Maritime Claims, except that such claim

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

the Government's complaint or, as applicable, not later than 30

days after the date of final publication of notice of the filing

of the complaint.

(B) A person asserting an interest in seized property, in

accordance with subparagraph (A), shall file an answer to the

Government's complaint for forfeiture not later than 20 days

after the date of the filing of the claim.

(b) Representation. -

(1)(A) If a person with standing to contest the forfeiture of

property in a judicial civil forfeiture proceeding under a civil

forfeiture statute is financially unable to obtain representation

by counsel, and the person is represented by counsel appointed

under section 3006A of this title in connection with a related

criminal case, the court may authorize counsel to represent that

person with respect to the claim.

(B) In determining whether to authorize counsel to represent a

person under subparagraph (A), the court shall take into account

such factors as -

(i) the person's standing to contest the forfeiture; and

(ii) whether the claim appears to be made in good faith.

(2)(A) If a person with standing to contest the forfeiture of

property in a judicial civil forfeiture proceeding under a civil

forfeiture statute is financially unable to obtain representation

by counsel, and the property subject to forfeiture is real

property that is being used by the person as a primary residence,

the court, at the request of the person, shall insure that the

person is represented by an attorney for the Legal Services

Corporation with respect to the claim.

(B)(i) At appropriate times during a representation under

subparagraph (A), the Legal Services Corporation shall submit a

statement of reasonable attorney fees and costs to the court.

(ii) The court shall enter a judgment in favor of the Legal

Services Corporation for reasonable attorney fees and costs

submitted pursuant to clause (i) and treat such judgment as

payable under section 2465 of title 28, United States Code,

regardless of the outcome of the case.

(3) The court shall set the compensation for representation

under this subsection, which shall be equivalent to that provided

for court-appointed representation under section 3006A of this

title.

(c) Burden of Proof. - In a suit or action brought under any

civil forfeiture statute for the civil forfeiture of any property -

(1) the burden of proof is on the Government to establish, by a

preponderance of the evidence, that the property is subject to

forfeiture;

(2) the Government may use evidence gathered after the filing

of a complaint for forfeiture to establish, by a preponderance of

the evidence, that property is subject to forfeiture; and

(3) if the Government's theory of forfeiture is that the

property was used to commit or facilitate the commission of a

criminal offense, or was involved in the commission of a criminal

offense, the Government shall establish that there was a

substantial connection between the property and the offense.

(d) Innocent Owner Defense. -

(1) An innocent owner's interest in property shall not be

forfeited under any civil forfeiture statute. The claimant shall

have the burden of proving that the claimant is an innocent owner

by a preponderance of the evidence.

(2)(A) With respect to a property interest in existence at the

time the illegal conduct giving rise to forfeiture took place,

the term ''innocent owner'' means an owner who -

(i) did not know of the conduct giving rise to forfeiture; or

(ii) upon learning of the conduct giving rise to the

forfeiture, did all that reasonably could be expected under the

circumstances to terminate such use of the property.

(B)(i) For the purposes of this paragraph, ways in which a

person may show that such person did all that reasonably could be

expected may include demonstrating that such person, to the

extent permitted by law -

(I) gave timely notice to an appropriate law enforcement

agency of information that led the person to know the conduct

giving rise to a forfeiture would occur or has occurred; and

(II) in a timely fashion revoked or made a good faith attempt

to revoke permission for those engaging in such conduct to use

the property or took reasonable actions in consultation with a

law enforcement agency to discourage or prevent the illegal use

of the property.

(ii) A person is not required by this subparagraph to take

steps that the person reasonably believes would be likely to

subject any person (other than the person whose conduct gave rise

to the forfeiture) to physical danger.

(3)(A) With respect to a property interest acquired after the

conduct giving rise to the forfeiture has taken place, the term

''innocent owner'' means a person who, at the time that person

acquired the interest in the property -

(i) was a bona fide purchaser or seller for value (including

a purchaser or seller of goods or services for value); and

(ii) did not know and was reasonably without cause to believe

that the property was subject to forfeiture.

(B) An otherwise valid claim under subparagraph (A) shall not

be denied on the ground that the claimant gave nothing of value

in exchange for the property if -

(i) the property is the primary residence of the claimant;

(ii) depriving the claimant of the property would deprive the

claimant of the means to maintain reasonable shelter in the

community for the claimant and all dependents residing with the

claimant;

(iii) the property is not, and is not traceable to, the

proceeds of any criminal offense; and

(iv) the claimant acquired his or her interest in the

property through marriage, divorce, or legal separation, or the

claimant was the spouse or legal dependent of a person whose

death resulted in the transfer of the property to the claimant

through inheritance or probate,

except that the court shall limit the value of any real property

interest for which innocent ownership is recognized under this

subparagraph to the value necessary to maintain reasonable

shelter in the community for such claimant and all dependents

residing with the claimant.

(4) Notwithstanding any provision of this subsection, no person

may assert an ownership interest under this subsection in

contraband or other property that it is illegal to possess.

(5) If the court determines, in accordance with this section,

that an innocent owner has a partial interest in property

otherwise subject to forfeiture, or a joint tenancy or tenancy by

the entirety in such property, the court may enter an appropriate

order -

(A) severing the property;

(B) transferring the property to the Government with a

provision that the Government compensate the innocent owner to

the extent of his or her ownership interest once a final order

of forfeiture has been entered and the property has been

reduced to liquid assets; or

(C) permitting the innocent owner to retain the property

subject to a lien in favor of the Government to the extent of

the forfeitable interest in the property.

(6) In this subsection, the term ''owner'' -

(A) means a person with an ownership interest in the specific

property sought to be forfeited, including a leasehold, lien,

mortgage, recorded security interest, or valid assignment of an

ownership interest; and

(B) does not include -

(i) a person with only a general unsecured interest in, or

claim against, the property or estate of another;

(ii) a bailee unless the bailor is identified and the

bailee shows a colorable legitimate interest in the property

seized; or

(iii) a nominee who exercises no dominion or control over

the property.

(e) Motion To Set Aside Forfeiture. -

(1) Any person entitled to written notice in any nonjudicial

civil forfeiture proceeding under a civil forfeiture statute who

does not receive such notice may file a motion to set aside a

declaration of forfeiture with respect to that person's interest

in the property, which motion shall be granted if -

(A) the Government knew, or reasonably should have known, of

the moving party's interest and failed to take reasonable steps

to provide such party with notice; and

(B) the moving party did not know or have reason to know of

the seizure within sufficient time to file a timely claim.

(2)(A) Notwithstanding the expiration of any applicable statute

of limitations, if the court grants a motion under paragraph (1),

the court shall set aside the declaration of forfeiture as to the

interest of the moving party without prejudice to the right of

the Government to commence a subsequent forfeiture proceeding as

to the interest of the moving party.

(B) Any proceeding described in subparagraph (A) shall be

commenced -

(i) if nonjudicial, within 60 days of the entry of the order

granting the motion; or

(ii) if judicial, within 6 months of the entry of the order

granting the motion.

(3) A motion under paragraph (1) may be filed not later than 5

years after the date of final publication of notice of seizure of

the property.

(4) If, at the time a motion made under paragraph (1) is

granted, the forfeited property has been disposed of by the

Government in accordance with law, the Government may institute

proceedings against a substitute sum of money equal to the value

of the moving party's interest in the property at the time the

property was disposed of.

(5) A motion filed under this subsection shall be the exclusive

remedy for seeking to set aside a declaration of forfeiture under

a civil forfeiture statute.

(f) Release Of Seized Property. -

(1) A claimant under subsection (a) is entitled to immediate

release of seized property if -

(A) the claimant has a possessory interest in the property;

(B) the claimant has sufficient ties to the community to

provide assurance that the property will be available at the

time of the trial;

(C) the continued possession by the Government pending the

final disposition of forfeiture proceedings will cause

substantial hardship to the claimant, such as preventing the

functioning of a business, preventing an individual from

working, or leaving an individual homeless;

(D) the claimant's likely hardship from the continued

possession by the Government of the seized property outweighs

the risk that the property will be destroyed, damaged, lost,

concealed, or transferred if it is returned to the claimant

during the pendency of the proceeding; and

(E) none of the conditions set forth in paragraph (8)

applies.

(2) A claimant seeking release of property under this

subsection must request possession of the property from the

appropriate official, and the request must set forth the basis on

which the requirements of paragraph (1) are met.

(3)(A) If not later than 15 days after the date of a request

under paragraph (2) the property has not been released, the

claimant may file a petition in the district court in which the

complaint has been filed or, if no complaint has been filed, in

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

the district court for the district in which the property was

seized.

(B) The petition described in subparagraph (A) shall set forth

-

(i) the basis on which the requirements of paragraph (1) are

met; and

(ii) the steps the claimant has taken to secure release of

the property from the appropriate official.

(4) If the Government establishes that the claimant's claim is

frivolous, the court shall deny the petition. In responding to a

petition under this subsection on other grounds, the Government

may in appropriate cases submit evidence ex parte in order to

avoid disclosing any matter that may adversely affect an ongoing

criminal investigation or pending criminal trial.

(5) The court shall render a decision on a petition filed under

paragraph (3) not later than 30 days after the date of the

filing, unless such 30-day limitation is extended by consent of

the parties or by the court for good cause shown.

(6) If -

(A) a petition is filed under paragraph (3); and

(B) the claimant demonstrates that the requirements of

paragraph (1) have been met,

the district court shall order that the property be returned to

the claimant, pending completion of proceedings by the Government

to obtain forfeiture of the property.

(7) If the court grants a petition under paragraph (3) -

(A) the court may enter any order necessary to ensure that

the value of the property is maintained while the forfeiture

action is pending, including -

(i) permitting the inspection, photographing, and inventory

of the property;

(ii) fixing a bond in accordance with rule E(5) of the

Supplemental Rules for Certain Admiralty and Maritime Claims;

and

(iii) requiring the claimant to obtain or maintain

insurance on the subject property; and

(B) the Government may place a lien against the property or

file a lis pendens to ensure that the property is not

transferred to another person.

(8) This subsection shall not apply if the seized property -

(A) is contraband, currency, or other monetary instrument, or

electronic funds unless such currency or other monetary

instrument or electronic funds constitutes the assets of a

legitimate business which has been seized;

(B) is to be used as evidence of a violation of the law;

(C) by reason of design or other characteristic, is

particularly suited for use in illegal activities; or

(D) is likely to be used to commit additional criminal acts

if returned to the claimant.

(g) Proportionality. -

(1) The claimant under subsection (a)(4) may petition the court

to determine whether the forfeiture was constitutionally

excessive.

(2) In making this determination, the court shall compare the

forfeiture to the gravity of the offense giving rise to the

forfeiture.

(3) The claimant shall have the burden of establishing that the

forfeiture is grossly disproportional by a preponderance of the

evidence at a hearing conducted by the court without a jury.

(4) If the court finds that the forfeiture is grossly

disproportional to the offense it shall reduce or eliminate the

forfeiture as necessary to avoid a violation of the Excessive

Fines Clause of the Eighth Amendment of the Constitution.

(h) Civil Fine. -

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

statute in which the Government prevails, if the court finds that

the claimant's assertion of an interest in the property was

frivolous, the court may impose a civil fine on the claimant of

an amount equal to 10 percent of the value of the forfeited

property, but in no event shall the fine be less than $250 or

greater than $5,000.

(2) Any civil fine imposed under this subsection shall not

preclude the court from imposing sanctions under rule 11 of the

Federal Rules of Civil Procedure.

(3) In addition to the limitations of section 1915 of title 28,

United States Code, in no event shall a prisoner file a claim

under a civil forfeiture statute or appeal a judgment in a civil

action or proceeding based on a civil forfeiture statute if the

prisoner has, on 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 the International Emergency Economic Powers Act (IEEPA) (50

U.S.C. 1701 et seq.); or

(E) section 1 of title VI of the Act of June 15, 1917 (40

Stat. 233; 22 U.S.C. 401).

(j) Restraining Orders; Protective Orders. -

(1) Upon application of the United States, the court may enter

a restraining order or injunction, require the execution of

satisfactory performance bonds, create receiverships, appoint

conservators, custodians, appraisers, accountants, or trustees,

or take any other action to seize, secure, maintain, or preserve

the availability of property subject to civil forfeiture -

(A) upon the filing of a civil forfeiture complaint alleging

that the property with respect to which the order is sought is

subject to civil forfeiture; or

(B) prior to the filing of such a complaint, if, after notice

to persons appearing to have an interest in the property and

opportunity for a hearing, the court determines that -

(i) there is a substantial probability that the United

States will prevail on the issue of forfeiture and that

failure to enter the order will result in the property being

destroyed, removed from the jurisdiction of the court, or

otherwise made unavailable for forfeiture; and

(ii) the need to preserve the availability of the property

through the entry of the requested order outweighs the

hardship on any party against whom the order is to be

entered.

(2) An order entered pursuant to paragraph (1)(B) shall be

effective for not more than 90 days, unless extended by the court

for good cause shown, or unless a complaint described in

paragraph (1)(A) has been filed.

(3) A temporary restraining order under this subsection may be

entered upon application of the United States without notice or

opportunity for a hearing when a complaint has not yet been filed

with respect to the property, if the United States demonstrates

that there is probable cause to believe that the property with

respect to which the order is sought is subject to civil

forfeiture and that provision of notice will jeopardize the

availability of the property for forfeiture. Such a temporary

order shall expire not more than 10 days after the date on which

it is entered, unless extended for good cause shown or unless the

party against whom it is entered consents to an extension for a

longer period. A hearing requested concerning an order entered

under this paragraph shall be held at the earliest possible time

and prior to the expiration of the temporary order.

(4) The court may receive and consider, at a hearing held

pursuant to this subsection, evidence and information that would

be inadmissible under the Federal Rules of Evidence.

-SOURCE-

(Added and amended Pub. L. 106-185, Sec. 2(a), 9, Apr. 25, 2000,

114 Stat. 202, 216; Pub. L. 106-561, Sec. 3(a), Dec. 21, 2000, 114

Stat. 2791; Pub. L. 107-56, title III, Sec. 316(d), Oct. 26, 2001,

115 Stat. 310.)

-REFTEXT-

REFERENCES IN TEXT

The Supplemental Rules for Certain Admiralty and Maritime Claims,

referred to in subsecs. (a)(3)(A), (4)(A) and (f)(7)(A)(ii), are

set out as part of the Federal Rules of Civil Procedure in the

Appendix to Title 28, Judiciary and Judicial Procedure.

The Federal Rules of Civil Procedure, referred to in subsec.

(h)(2), are set out in the Appendix to Title 28, Judiciary and

Judicial Procedure.

The Tariff Act of 1930, referred to in subsec. (i)(2)(A), is act

June 17, 1930, ch. 497, 46 Stat. 590, as amended, which is

classified generally to chapter 4 (Sec. 1202 et seq.) of Title 19,

Customs Duties. For complete classification of this Act to the

Code, see section 1654 of Title 19 and Tables.

The Internal Revenue Code of 1986, referred to in subsec.

(i)(2)(B), is classified generally to Title 26, Internal Revenue

Code.

The Federal Food, Drug, and Cosmetic Act, referred to in subsec.

(i)(2)(C), is act June 25, 1938, ch. 675, 52 Stat. 1040, as

amended, which is classified generally to chapter 9 (Sec. 301 et

seq.) of Title 21, Food and Drugs. For complete classification of

this Act to the Code, see section 301 of Title 21 and Tables.

The Trading with the Enemy Act, referred to in subsec. (i)(2)(D),

is act Oct. 6, 1917, ch. 106, 40 Stat. 411, as amended, which is

classified to sections 1 to 6, 7 to 39 and 41 to 44 of Title 50,

Appendix, War and National Defense. For complete classification of

this Act to the Code, see Tables.

The International Emergency Economic Powers Act, referred to in

(i)(2)(D), is title II of Pub. L. 95-223, Dec. 28, 1977, 91 Stat.

1626, as amended, which is classified generally to chapter 35 (Sec.

1701 et seq.) of Title 50, War and National Defense. For complete

classification of this Act to the Code, see Short Title note set

out under section 1701 of Title 50 and Tables.

The Federal Rules of Evidence, referred to in subsec. (j)(4), are

set out in the Appendix to Title 28, Judiciary and Judicial

Procedure.

-MISC2-

AMENDMENTS

2001 - Subsec. (i)(2)(D). Pub. L. 107-56 inserted ''or the

International Emergency Economic Powers Act (IEEPA) (50 U.S.C. 1701

et seq.)'' before semicolon.

2000 - Subsec. (a)(2)(C)(ii). Pub. L. 106-561 struck out ''(and

provide customary documentary evidence of such interest if

available) and state that the claim is not frivolous'' after ''such

property''.

Subsec. (j). Pub. L. 106-185, Sec. 9, added subsec. (j).

TERMINATION DATE OF 2001 AMENDMENT

Amendments by title III of Pub. L. 107-56 to terminate effective

on and after the first day of fiscal year 2005 if Congress enacts a

joint resolution that such amendments no longer have the force of

law, see section 303 of Pub. L. 107-56, set out as a Four-Year

Congressional Review; Expedited Consideration note under section

5311 of Title 31, Money and Finance.

EFFECTIVE DATE OF 2000 AMENDMENT

Pub. L. 106-561, Sec. 3(b), Dec. 21, 2000, 114 Stat. 2791,

provided that: ''The amendment made by this section (amending this

section) shall take effect as if included in the amendment made by

section 2(a) of Public Law 106-185.''

EFFECTIVE DATE

Section applicable to any forfeiture proceeding commenced on or

after the date that is 120 days after Apr. 25, 2000, see section 21

of Pub. L. 106-185, set out as an Effective Date of 2000 Amendment

note under section 1324 of Title 8, Aliens and Nationality.

ANTI-TERRORIST FORFEITURE PROTECTION

Pub. L. 107-56, title III, Sec. 316(a)-(c), Oct. 26, 2001, 115

Stat. 309, provided that:

''(a) Right to Contest. - An owner of property that is

confiscated under any provision of law relating to the confiscation

of assets of suspected international terrorists, may contest that

confiscation by filing a claim in the manner set forth in the

Federal Rules of Civil Procedure (Supplemental Rules for Certain

Admiralty and Maritime Claims) (28 App. U.S.C.), and asserting as

an affirmative defense that -

''(1) the property is not subject to confiscation under such

provision of law; or

''(2) the innocent owner provisions of section 983(d) of title

18, United States Code, apply to the case.

''(b) Evidence. - In considering a claim filed under this

section, a court may admit evidence that is otherwise inadmissible

under the Federal Rules of Evidence (28 App. U.S.C.), if the court

determines that the evidence is reliable, and that compliance with

the Federal Rules of Evidence may jeopardize the national security

interests of the United States.

''(c) Clarifications. -

''(1) Protection of rights. - The exclusion of certain

provisions of Federal law from the definition of the term 'civil

forfeiture statute' in section 983(i) of title 18, United States

Code, shall not be construed to deny an owner of property the

right to contest the confiscation of assets of suspected

international terrorists under -

''(A) subsection (a) of this section;

''(B) the Constitution; or

''(C) subchapter II of chapter 5 of title 5, United States

Code (commonly known as the 'Administrative Procedure Act').

''(2) Savings clause. - Nothing in this section shall limit or

otherwise affect any other remedies that may be available to an

owner of property under section 983 of title 18, United States

Code, or any other provision of law.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 981, 3051 of this title;

title 28 section 2467.

-CITE-

18 USC Sec. 984 01/06/03

-EXPCITE-

TITLE 18 - CRIMES AND CRIMINAL PROCEDURE

PART I - CRIMES

CHAPTER 46 - FORFEITURE

-HEAD-

Sec. 984. Civil forfeiture of fungible property

-STATUTE-

(a)(1) In any forfeiture action in rem in which the subject

property is cash, monetary instruments in bearer form, funds

deposited in an account in a financial institution (as defined in

section 20 of this title), or precious metals -

(A) it shall not be necessary for the Government to identify

the specific property involved in the offense that is the basis

for the forfeiture; and

(B) it shall not be a defense that the property involved in

such an offense has been removed and replaced by identical

property.

(2) Except as provided in subsection (b), any identical property

found in the same place or account as the property involved in the

offense that is the basis for the forfeiture shall be subject to

forfeiture under this section.

(b) No action pursuant to this section to forfeit property not

traceable directly to the offense that is the basis for the

forfeiture may be commenced more than 1 year from the date of the

offense.

(c)(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.

(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))); (FOOTNOTE 1) and

(FOOTNOTE 1) See References in Text note below.

(B) the term ''interbank account'' means an account held by one

financial institution at another financial institution primarily

for the purpose of facilitating customer transactions.

(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.

-SOURCE-

(Added Pub. L. 102-550, title XV, Sec. 1522(a), Oct. 28, 1992, 106

Stat. 4063; amended Pub. L. 103-325, title IV, Sec. 411(c)(2)(E),

Sept. 23, 1994, 108 Stat. 2253; Pub. L. 106-185, Sec. 13(a), Apr.

25, 2000, 114 Stat. 218.)

-REFTEXT-

REFERENCES IN TEXT

Section 1(b)(7) of the International Banking Act of 1978,

referred to in subsec. (c)(2)(A), is classified to section 3101(7)

of Title 12, Banks and Banking.

-MISC2-

AMENDMENTS

2000 - Subsec. (a). Pub. L. 106-185, Sec. 13(a)(1), (2),

redesignated subsec. (b) as (a), substituted ''or precious metals''

for ''or other fungible property'' in introductory provisions of

par. (1) and ''subsection (b)'' for ''subsection (c)'' in par. (2),

and struck out former subsec. (a) which read as follows: ''This

section shall apply to any action for forfeiture brought by the

Government in connection with any offense under section 1956, 1957,

or 1960 of this title or section 5322 or 5324 of title 31, United

States Code.''

Subsec. (b). Pub. L. 106-185, Sec. 13(a)(1), redesignated subsec.

(c) as (b). Former subsec. (b) redesignated (a).

Subsec. (c). Pub. L. 106-185, Sec. 13(a)(1), redesignated subsec.

(d) as (c). Former subsec. (c) redesignated (b).

Subsec. (c)(1). Pub. L. 106-185, Sec. 13(a)(3)(A), added par. (1)

and struck out former par. (1) which read as follows: ''No action

pursuant to this section to forfeit property not traceable directly

to the offense that is the basis for the forfeiture may be taken

against funds held by a financial institution in an interbank

account, unless the financial institution holding the account

knowingly engaged in the offense.''

Subsec. (c)(2). Pub. L. 106-185, Sec. 13(a)(3)(B), substituted

''In this subsection - '' for ''As used in this section, the

term'', added subpar. (A), and inserted ''(B) the term'' before

'''interbank account' means''.

Subsec. (d). Pub. L. 106-185, Sec. 13(a)(4), added subsec. (d).

Former subsec. (d) redesignated (c).

1994 - Subsec. (a). Pub. L. 103-325 substituted ''section 5322 or

5324 of title 31'' for ''section 5322 of title 31''.

EFFECTIVE DATE OF 2000 AMENDMENT

Amendment by Pub. L. 106-185 applicable to any forfeiture

proceeding commenced on or after the date that is 120 days after

Apr. 25, 2000, see section 21 of Pub. L. 106-185, set out as a note

under section 1324 of Title 8, Aliens and Nationality.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 981 of this title.

-CITE-

18 USC Sec. 985 01/06/03

-EXPCITE-

TITLE 18 - CRIMES AND CRIMINAL PROCEDURE

PART I - CRIMES

CHAPTER 46 - FORFEITURE

-HEAD-

Sec. 985. Civil forfeiture of real property

-STATUTE-

(a) Notwithstanding any other provision of law, all civil

forfeitures of real property and interests in real property shall

proceed as judicial forfeitures.

(b)(1) Except as provided in this section -

(A) real property that is the subject of a civil forfeiture

action shall not be seized before entry of an order of

forfeiture; and

(B) the owners or occupants of the real property shall not be

evicted from, or otherwise deprived of the use and enjoyment of,

real property that is the subject of a pending forfeiture action.

(2) The filing of a lis pendens and the execution of a writ of

entry for the purpose of conducting an inspection and inventory of

the property shall not be considered a seizure under this

subsection.

(c)(1) The Government shall initiate a civil forfeiture action

against real property by -

(A) filing a complaint for forfeiture;

(B) posting a notice of the complaint on the property; and

(C) serving notice on the property owner, along with a copy of

the complaint.

(2) If the property owner cannot be served with the notice under

paragraph (1) because the owner -

(A) is a fugitive;

(B) resides outside the United States and efforts at service

pursuant to rule 4 of the Federal Rules of Civil Procedure are

unavailing; or

(C) cannot be located despite the exercise of due diligence,

constructive service may be made in accordance with the laws of the

State in which the property is located.

(3) If real property has been posted in accordance with this

subsection, it shall not be necessary for the court to issue an

arrest warrant in rem, or to take any other action to establish in

rem jurisdiction over the property.

(d)(1) Real property may be seized prior to the entry of an order

of forfeiture if -

(A) the Government notifies the court that it intends to seize

the property before trial; and

(B) the court -

(i) issues a notice of application for warrant, causes the

notice to be served on the property owner and posted on the

property, and conducts a hearing in which the property owner

has a meaningful opportunity to be heard; or

(ii) makes an ex parte determination that there is probable

cause for the forfeiture and that there are exigent

circumstances that permit the Government to seize the property

without prior notice and an opportunity for the property owner

to be heard.

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

circumstances, the Government shall show that less restrictive

measures such as a lis pendens, restraining order, or bond would

not suffice to protect the Government's interests in preventing the

sale, destruction, or continued unlawful use of the real property.

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

subsection (d)(1)(B)(ii), it shall conduct a prompt post-seizure

hearing during which the property owner shall have an opportunity

to contest the basis for the seizure.

(f) This section -

(1) applies only to civil forfeitures of real property and

interests in real property;

(2) does not apply to forfeitures of the proceeds of the sale

of such property or interests, or of money or other assets

intended to be used to acquire such property or interests; and

(3) shall not affect the authority of the court to enter a

restraining order relating to real property.

-SOURCE-

(Added Pub. L. 106-185, Sec. 7(a), Apr. 25, 2000, 114 Stat. 214.)

-REFTEXT-

REFERENCES IN TEXT

The Federal Rules of Civil Procedure, referred to in subsec.

(c)(2)(B), are set out in the Appendix to Title 28, Judiciary and

Judicial Procedure.

-MISC2-

EFFECTIVE DATE

Section applicable to any forfeiture proceeding commenced on or

after the date that is 120 days after Apr. 25, 2000, see section 21

of Pub. L. 106-185, set out as an Effective Date of 2000 Amendment

note under section 1324 of Title 8, Aliens and Nationality.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 981 of this title.

-CITE-

18 USC Sec. 986 01/06/03

-EXPCITE-

TITLE 18 - CRIMES AND CRIMINAL PROCEDURE

PART I - CRIMES

CHAPTER 46 - FORFEITURE

-HEAD-

Sec. 986. Subpoenas for bank records

-STATUTE-

(a) At any time after the commencement of any action for

forfeiture in rem brought by the United States under section 1956,

1957, or 1960 of this title, section 5322 or 5324 of title 31,

United States Code, or the Controlled Substances Act, any party may

request the Clerk of the Court in the district in which the

proceeding is pending to issue a subpoena duces tecum to any

financial institution, as defined in section 5312(a) of title 31,

United States Code, to produce books, records and any other

documents at any place designated by the requesting party. All

parties to the proceeding shall be notified of the issuance of any

such subpoena. The procedures and limitations set forth in section

985 (FOOTNOTE 1) of this title shall apply to subpoenas issued

under this section.

(FOOTNOTE 1) See References in Text note below.

(b) Service of a subpoena issued pursuant to this section shall

be by certified mail. Records produced in response to such a

subpoena may be produced in person or by mail, common carrier, or

such other method as may be agreed upon by the party requesting the

subpoena and the custodian of records. The party requesting the

subpoena may require the custodian of records to submit an

affidavit certifying the authenticity and completeness of the

records and explaining the omission of any record called for in the

subpoena.

(c) Nothing in this section shall preclude any party from

pursuing any form of discovery pursuant to the Federal Rules of

Civil Procedure.

(d) Access to Records in Bank Secrecy Jurisdictions. -

(1) In general. - In any civil forfeiture case, or in any

ancillary proceeding in any criminal forfeiture case governed by

section 413(n) of the Controlled Substances Act (21 U.S.C.

853(n)), in which -

(A) financial records located in a foreign country may be

material -

(i) to any claim or to the ability of the Government to

respond to such claim; or

(ii) in a civil forfeiture case, to the ability of the

Government to establish the forfeitability of the property;

and

(B) it is within the capacity of the claimant to waive the

claimant's rights under applicable financial secrecy laws, or

to obtain the records so that such records can be made

available notwithstanding such secrecy laws,

the refusal of the claimant to provide the records in response to

a discovery request or to take the action necessary otherwise to

make the records available shall be grounds for judicial

sanctions, up to and including dismissal of the claim with

prejudice.

(2) Privilege. - This subsection shall not affect the right of

the claimant to refuse production on the basis of any privilege

guaranteed by the Constitution of the United States or any other

provision of Federal law.

-SOURCE-

(Added Pub. L. 102-550, title XV, Sec. 1523(a), Oct. 28, 1992, 106

Stat. 4063; amended Pub. L. 103-325, title IV, Sec. 411(c)(2)(E),

Sept. 23, 1994, 108 Stat. 2253; Pub. L. 106-185, Sec. 17, Apr. 25,

2000, 114 Stat. 221.)

-REFTEXT-

REFERENCES IN TEXT

The Controlled Substances Act, referred to in subsec. (a), is

title II of Pub. L. 91-513, Oct. 27, 1970, 84 Stat. 1242, as

amended, which is classified principally to subchapter I (Sec. 801

et seq.) of chapter 13 of Title 21, Food and Drugs. For complete

classification of this Act to the Code, see Short Title note set

out under section 801 of Title 21 and Tables.

Section 985 of this title, referred to in subsec. (a), was

enacted by Pub. L. 106-185, and relates to civil forfeitures of

real property and not to procedures and limitations for subpoenas.

The reference to section 985 was included in this section when it

was enacted by Pub. L. 102-550, but at that time there was no

section 985 of this title.

The Federal Rules of Civil Procedure, referred to in subsec. (c),

are set out in Title 28, Appendix, Judiciary and Judicial

Procedure.

-MISC2-

AMENDMENTS

2000 - Subsec. (d). Pub. L. 106-185 added subsec. (d).

1994 - Subsec. (a). Pub. L. 103-325 substituted ''section 5322 or

5324 of title 31'' for ''section 5322 of title 31''.

EFFECTIVE DATE OF 2000 AMENDMENT

Amendment by Pub. L. 106-185 applicable to any forfeiture

proceeding commenced on or after the date that is 120 days after

Apr. 25, 2000, see section 21 of Pub. L. 106-185, set out as a note

under section 1324 of Title 8, Aliens and Nationality.

-CITE-