[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1658 Enrolled Bill (ENR)]
H.R.1658
One Hundred Sixth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Monday,
the twenty-fourth day of January, two thousand
An Act
To provide a more just and uniform procedure for Federal civil
forfeitures, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

9be5b0aef0d1b01b7a9f49ae6757955fe205cd0cf5a2e0532bed7b6088294f04

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

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4d9a6dca2b9c059045b4f36b826fadf168504fc7343aaf83b2a4375e3fa341c9

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cf587c55aca4c984db18eea13516274aa2b4111a9e6864b9c3e20b5c0a3bc0f9

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

1f56b3807a4ebe3cff7adcfde291aff55ccb815090147dfbc6eaf43190256d66

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

0341126bd49d033b9fb35698f4e12d721bd8e792bfef27819cac0724184f1f1c

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

129a4967ce4e32ed157cc5cb2f3c904a115acf7540a9a076c5ef3ffce2f330c0

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

2cc705c39e4bf93bc60f338ad37c3d413283667adda1757037ee04662b0e9b83

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

ee9564634aa209e99905a919ddb5f975a8983f4a41e8e1764a1df9ee380eb39e

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

c2ae15482e64f80fd79ccf9f1d24c71dcb095dc2cbf3459410eb1a4d7a78a111

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

2cc867374f5e0c63c948e56b5813bc98fcb7f86fe5c3af520cee9d1d03d11bae

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

f7eebc55cd3b5ba0aea09937edbc72a1b19e240415b9ef52726da423a28786a1

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

44df2922575cc7e8f26b6caf722241a20b7114fce3753c9848b677d0aa281e56

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

ecd2e8dd8e18ac25ba037cf0cd4d675543cdf3c3dd4f702317f36bc84fd2f6c0

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

9fb4791bfe268448d1c61d9f1ef06666d4d53ba5db36ce8371b157a175a95c20

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

728cb45855caae100a08360ed413648b8cb3eb05810d4776c2ced9bc70747f2d

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

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

cbc8d2059988f5920b283b0bbb4b88fec9b521a0854a023d2d840b19b90d53d5

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

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

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

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

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

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Civil Asset Forfeiture Reform Act of 2000

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