[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,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Civil Asset 
Forfeiture Reform Act of 2000''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:
Sec.  1. Short title; table of contents.
Sec.  2. Creation of general rules relating to civil forfeiture 
          proceedings.
Sec.  3. Compensation for damage to seized property.
Sec.  4. Attorney fees, costs, and interest.
Sec.  5. Seizure warrant requirement.
Sec.  6. Use of forfeited funds to pay restitution to crime victims.
Sec.  7. Civil forfeiture of real property.
Sec.  8. Stay of civil forfeiture case.
Sec.  9. Civil restraining orders.
Sec. 10. Cooperation among Federal prosecutors.
Sec. 11. Statute of limitations for civil forfeiture actions.
Sec. 12. Destruction or removal of property to prevent seizure.
Sec. 13. Fungible property in bank accounts.
Sec. 14. Fugitive disentitlement.
Sec. 15. Enforcement of foreign forfeiture judgment.
Sec. 16. Encouraging use of criminal forfeiture as an alternative to 
          civil forfeiture.
Sec. 17. Access to records in bank secrecy jurisdictions.
Sec. 18. Application to alien smuggling offenses.
Sec. 19. Enhanced visibility of the asset forfeiture program.
Sec. 20. Proceeds.
Sec. 21. Effective date.

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

    (a) In General.--Chapter 46 of title 18, United States Code, is 
amended by inserting after section 982 the following:

``Sec. 983. General rules for civil forfeiture proceedings

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

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

SEC. 3. COMPENSATION FOR DAMAGE TO SEIZED PROPERTY.

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

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

    (a) In general.--Section 2465 of title 28, United States Code, is 
amended to read as follows:

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

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

SEC. 5. SEIZURE WARRANT REQUIREMENT.

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

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

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

SEC. 7. CIVIL FORFEITURE OF REAL PROPERTY.

    (a) In General.--Chapter 46 of title 18, United States Code, is 
amended by inserting after section 984 the following:

``Sec. 985. Civil forfeiture of real property

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

SEC. 8. STAY OF CIVIL FORFEITURE CASE.

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

SEC. 9. CIVIL RESTRAINING ORDERS.

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

SEC. 10. COOPERATION AMONG FEDERAL PROSECUTORS.

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

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

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

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

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

SEC. 13. FUNGIBLE PROPERTY IN BANK ACCOUNTS.

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

SEC. 14. FUGITIVE DISENTITLEMENT.

    (a) In General.--Chapter 163 of title 28, United States Code, is 
amended by adding at the end the following:

``Sec. 2466. Fugitive disentitlement

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

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

SEC. 15. ENFORCEMENT OF FOREIGN FORFEITURE JUDGMENT.

    (a) In General.--Chapter 163 of title 28, United States Code, is 
amended by adding at the end the following:

``Sec. 2467. Enforcement of foreign judgment

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

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

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

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

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

SEC. 18. APPLICATION TO ALIEN SMUGGLING OFFENSES.

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

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

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

SEC. 20. PROCEEDS.

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

SEC. 21. EFFECTIVE DATE.

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

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.