[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 1701 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                S. 1701

       To reform civil asset forfeiture, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 6, 1999

 Mr. Sessions (for himself, Mr. Schumer, Mr. Thurmond, Mr. Biden, Mrs. 
 Feinstein, Mr. Helms, and Mr. Cleland) introduced the following bill; 
  which was read twice and referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
       To reform civil asset forfeiture, 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 1999''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Burden of proof.
Sec. 3. Notice of administrative forfeiture; limitations period for 
                            challenges.
Sec. 4. Time for filing claim; waiver of cost bond.
Sec. 5. Time for filing a complaint.
Sec. 6. Probable cause hearing.
Sec. 7. Award of attorneys' fees to successful claimants.
Sec. 8. Special provisions for real property.
Sec. 9. Compensation for damage to seized property.
Sec. 10. Uniform innocent owner defense.
Sec. 11. Release of property in hardship cases.
Sec. 12. Stay of civil forfeiture case.
Sec. 13. Prejudgment interest.
Sec. 14. Seizure warrant requirement.
Sec. 15. Civil restraining orders.
Sec. 16. Excessive fines.
Sec. 17. Civil investigative demands.
Sec. 18. Access to records in bank secrecy jurisdictions.
Sec. 19. Cooperation among Federal prosecutors.
Sec. 20. Access to other records.
Sec. 21. Statute of limitations for civil forfeiture actions.
Sec. 22. Destruction or removal of property to prevent seizure.
Sec. 23. Fungible property in bank accounts.
Sec. 24. Currency seized from drug couriers.
Sec. 25. Use of forfeited funds to pay restitution to crime victims.
Sec. 26. Fugitive disentitlement.
Sec. 27. Enforcement of foreign forfeiture judgment.
Sec. 28. Encouraging use of criminal forfeiture as an alternative to 
                            civil forfeiture.
Sec. 29. Application of procedures for drug cases.
Sec. 30. Application of procedures to other civil forfeitures.
Sec. 31. Application to alien smuggling offenses.
Sec. 32. Effective dates.

SEC. 2. BURDEN OF PROOF.

    Section 981 of title 18, United States Code, is amended by adding 
at the end the following:
    ``(k) Burden of Proof at Trial.--
            ``(1) In general.--At trial--
                    ``(A) the Government shall have the burden of 
                proving that the property is subject to forfeiture by a 
                preponderance of the evidence; and
                    ``(B) the claimant shall have the burden of proving 
                any affirmative defense by a preponderance of the 
                evidence.
            ``(2) Timing.--No party shall be required to establish that 
        it is able to meet its burden of proof under paragraph (1) 
        until the time of trial, except that any party may file a 
        motion for summary judgment pursuant to rule 56 of the Federal 
        Rules of Civil Procedure at any time.''.

SEC. 3. NOTICE OF ADMINISTRATIVE FORFEITURE; LIMITATIONS PERIOD FOR 
              CHALLENGES.

    Section 981 of title 18, United States Code, is amended by adding 
at the end the following:
    ``(l) Administrative Forfeitures.--
            ``(1) Notice.--
                    ``(A) In general.--Whenever property, other than 
                real property, is seized by a Federal law enforcement 
                agency pursuant to subsection (b), or is turned over to 
                a Federal law enforcement agency by a State or local 
                law enforcement agency pursuant to subsection (b)(2)(C) 
                for the purpose of forfeiture under Federal law, the 
                Government shall commence administrative forfeiture 
                proceedings against the property pursuant to the 
                customs laws (19 U.S.C. 1602 et seq.) not later than 60 
                days after the seizure or turnover, unless the Attorney 
                General has filed a civil forfeiture complaint, or 
                included the property in a criminal indictment, before 
                such 60-day period has expired. Upon commencing 
                administrative forfeiture proceedings, the seizing 
                agency shall send notice of the proceedings, together 
                with information on the applicable procedures for 
                contesting the forfeiture, to each party known to the 
                seizing agency at the time of the seizure to have an 
                ownership or possessory interest, including a 
                lienholder's interest in the seized property. If the 
                identity or interest of a party is not determined until 
                after the seizure but is determined before a 
                declaration of forfeiture is entered, such written 
                notice and information shall be sent to such interested 
                party not later than 60 days after the determination of 
                the seizing agency of the identity of the party or the 
                party's interest.
                    ``(B) Return of property.--If the Government does 
                not send notice of a seizure of property to the person 
                from whom it was received in accordance with 
                subparagraph (A), 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. If 
                the property is returned under this paragraph, neither 
                the seizing agency nor any individual agent shall be 
                held liable for the failure to provide notice. 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) Extension.--
                    ``(A) In general.--The Attorney General, the 
                Secretary of the Treasury, or the United States Postal 
                Service, as applicable, may waive the requirements of 
                paragraph (1)(A) for good cause.
                    ``(B) Delegation of authority.--The power to grant 
                a waiver may be delegated to a person of supervisory 
                rank (as defined in section 7103(a)(10) of title 5) in 
                the headquarters office of the seizing agency.
            ``(3) Motion to set aside declaration of forfeiture.--
                    ``(A) In general.--Any person entitled to notice 
                under paragraph (1)(A) who does not receive such notice 
                may file, not later than 2 years after the date of 
                final publication of notice of seizure of the property, 
                a motion to set aside a declaration of forfeiture 
entered pursuant to section 609 of the Tariff Act of 1930 (19 U.S.C. 
1609), which motion shall be granted if--
                            ``(i) the moving party had an ownership or 
                        possessory interest in the forfeited property, 
                        and the Government knew, or reasonably should 
                        have known, of that party's interest and failed 
                        to take reasonable steps to provide such party 
                        with notice of the forfeiture; and
                            ``(ii) the moving party did not have actual 
                        notice of the seizure within sufficient time to 
                        file a claim within the time period provided by 
                        law.
                    ``(B) Setting aside declaration of forfeiture.--If 
                the court grants a motion made under subparagraph (A), 
                the court shall set aside the declaration of forfeiture 
                as to the interest of the moving party pending 
                forfeiture proceedings in accordance with the Tariff 
                Act of 1930 (19 U.S.C. 1602 et seq.), which proceedings 
                shall be instituted within 60 days of the entry of the 
                order granting the motion.
                    ``(C) Disposed property.--If, at the time a motion 
                made under this subparagraph (A) is granted, the 
                forfeited property has been disposed of by the 
                Government in accordance with law, the Government shall 
                institute forfeiture proceedings under subparagraph (B) 
                against a substitute sum of money equal to the value of 
                the forfeited property at the time the property was 
                disposed of, plus interest.
                    ``(D) Judicial review.--A motion made under this 
                subsection shall be the exclusive means of obtaining 
                judicial review of a declaration of forfeiture entered 
                by a seizing agency.''.

SEC. 4. TIME FOR FILING CLAIM; WAIVER OF COST BOND.

    (a) In General.--Section 608 of the Tariff Act of 1930 (19 U.S.C. 
1608) is amended to read as follows:

``SEC. 608. SEIZURES; CLAIMS; JUDICIAL CONDEMNATION.

    ``(a) In General.--Any person claiming such seized vessel, vehicle, 
aircraft, merchandise, or baggage may file a claim with the Customs 
Service at any time after the seizure, provided that the claim is filed 
not later than 30 days after the first publication of notice of 
seizure, or the deadline set forth in a personal notice letter received 
by such person, whichever is later. The claim shall be signed by the 
claimant under penalty of perjury and shall contain a brief statement 
of the nature and extent of the claimant's ownership interest in the 
property.
    ``(b) Bond.--Any person filing a claim pursuant to subsection (a) 
shall post the bond to the United States in the sum of $5,000 or 10 
percent of the value of the claimed property, whichever is less, but 
not less than $250, with sureties approved by the Customs Service. No 
bond shall be required if the Secretary approves a claim filed in forma 
pauperis. A claim filed in forma pauperis shall include the information 
required to complete form 4 in the appendix of forms following rule 48 
of the Federal Rules of Appellate Procedure.
    ``(c) Transmittal to United States Attorney.--Upon the filing of a 
claim pursuant to this section, the Customs Service shall transmit the 
claim, with a duplicate list and description of the articles seized, to 
the United States attorney for the district in which the property was 
seized, or any other district in which a forfeiture action may be filed 
pursuant to section 1355(b) of title 28, United States Code. The United 
States attorney, after reviewing the matter, may decide, in his or her 
discretion, to return the property to the claimant or to reach an 
appropriate compromise agreement with the claimant with respect to the 
property. Otherwise, the United States attorney shall proceed to a 
condemnation of the merchandise or other property in the manner 
prescribed in the Federal Rules of Civil Procedure, Supplemental Rules 
for Certain Admiralty and Maritime Claims, or shall proceed to include 
the merchandise or other property in an appropriate criminal 
indictment.''.
    (b) Conforming Amendment.--Section 609 of the Tariff Act of 1930 
(19 U.S.C. 1609) is amended by striking ``twenty'' and inserting 
``30''.
    (c) Exemption From Cost Bond Requirement.--Section 981(d) of title 
18, United States Code, is amended--
            (1) by inserting ``(1)'' after ``(d)''; and
            (2) by adding at the end the following:
    ``(2)(A) A cost bond otherwise required by section 608 of the 
Tariff Act of 1930 (19 U.S.C. 1608) shall not be required if the 
claimant--
            ``(i) pledges real or personal property having a value 
        greater than or equal to the value of the bond that would 
        otherwise be required under section 608(b) as security against 
        the costs of the Government;
            ``(ii) provides, in any case in which the pledged real or 
        personal property is subject to a Federal or State recording, 
        certificate of title, or registration statute, documentary 
        proof evidencing the ownership of the property by the claimant 
        or pledger; and
            ``(iii) files an affidavit under penalty of perjury setting 
        forth the value of the property and stating that the claimant 
        is the owner of the property.
    ``(B) Once the claim is referred to the United States attorney in 
accordance with section 608(c) of the Tariff Act of 1930 (19 U.S.C. 
1608), the United States attorney may ask the court to review the facts 
set forth in the affidavit filed under subparagraph (A)(ii).
    ``(C) At the conclusion of the case, the claimant may move for 
return of the cost bond, or to rescind the property pledge, and the 
court shall grant such motion if the court finds that the claim was 
substantially justified. If the court denies such motion, or if no such 
motion is made, the Government shall retain the bond to the extent 
necessary to recover its costs and return the balance to the claimant. 
In the case of a property pledge, the Government may--
            ``(i) serve upon the claimant an assessment of its costs, 
        which assessment shall be collectible as a debt owed to the 
        Government under chapter 176 of title 28; or
            ``(ii) foreclose on the pledged property to recover its 
        costs.''.

SEC. 5. TIME FOR FILING A COMPLAINT.

    Section 981 of title 18, United States Code, is amended by adding 
at the end the following:
    ``(m) Filing a Complaint.--
            ``(1) In general.--In any case in which property has been 
        seized or restrained by the Government and a claim has been 
        filed, the Attorney General shall--
                    ``(A) not later than 90 days after the date on 
                which the claim is filed (unless such requirement is 
                waived by mutual agreement between the Government and 
                the claimants), file a complaint for forfeiture in the 
                manner set forth in the Federal Rules of Civil 
                Procedure, Supplemental Rules for Certain Admiralty and 
                Maritime Claims, or include a forfeiture count in a 
                criminal indictment or information, or both; or
                    ``(B) return the property pending the filing of a 
                complaint or indictment.
            ``(2) Extension of time.--
                    ``(A) In general.--The Government may apply to a 
                Federal magistrate judge (as defined in the Federal 
                Rules of Criminal Procedure) in any district in which 
                venue for a forfeiture action would lie under section 
                1355(b) of title 28 for an extension of time in which 
                to comply with paragraph (1), which extension shall be 
                granted based on a showing of good cause.
                    ``(B) Ex parte applications.--If an extension is 
                sought under this paragraph on the basis that the 
                filing required by paragraph (1) would jeopardize an 
                ongoing criminal investigation or prosecution or court-
                authorized electronic surveillance, the application 
                under subparagraph (A) may be made ex parte.
            ``(3) Filing of claim and answer.--
                    ``(A) In general.--Subject to subparagraph (B), 
                upon the filing of a civil complaint, the claimant 
                shall file a claim and answer in accordance with the 
                Federal Rules of Civil Procedure, Supplemental Rules 
                for Certain Admiralty and Maritime Claims.
                    ``(B) Motion to dismiss.--After filing a timely 
                claim under subparagraph (A), a party with standing to 
                challenge the forfeiture may, within the time period 
                provided for filing of an answer under rule C(6) of the 
                Federal Rules of Civil Procedure, Supplemental Rules 
                for Certain Admiralty and Maritime Claims, file, in 
                lieu of an answer, a motion to dismiss the complaint 
                for failure to comply with rule E(2)(a) of the Federal 
                Rules of Civil Procedure, Supplemental Rules for 
                Certain Admiralty and Maritime Claims, or on any other 
                ground set for in rule 12(b) of the Federal Rules of 
                Civil Procedure. If such motion is denied, the claimant 
                shall file an answer within the period provided by rule 
                12(a)(4) of the Federal Rules of Civil Procedure, or 
                such other period as the court may determine.
            ``(4) Motion to dismiss complaint for forfeiture.--
                    ``(A) In general.--If a complaint for forfeiture is 
                filed, a party with standing to challenge the 
                forfeiture may move to dismiss the complaint for 
                failure to comply with rule E(2) of the Federal Rules 
                of Civil Procedure, Supplemental Rules for Certain 
                Admiralty and Maritime Claims, or on any other ground 
                set forth in rule 12(b) of the Federal Rules of Civil 
                Procedure.
            ``(B) Insufficiency of evidence.--Notwithstanding section 
        615 of the Tariff Act of 1930 (19 U.S.C. 1615), a party may not 
        move to dismiss the complaint on the ground that the evidence 
        in the possession of the Government at the time the Government 
        filed its complaint was insufficient to establish the 
        forfeitability of the property.''.

SEC. 6. PROBABLE CAUSE HEARING.

    Section 981 of title 18, United States Code, is amended by adding 
at the end the following:
    ``(n) Probable Cause Hearing.--A person with standing to challenge 
the forfeiture of property seized under this section may file a motion 
for the return of the property in the manner described in rule 41(e) of 
the Federal Rules of Criminal Procedure. If such motion is filed, the 
court shall conduct a hearing within 90 days and shall order the 
release of the property, pending trial on the forfeiture and the entry 
of judgment, unless--
            ``(1) the Government establishes probable cause to believe 
        that the property is subject to forfeiture, based on all 
        information available to the Government at the time of the 
        hearing;
            ``(2) the Government has filed a civil forfeiture complaint 
        against the property, and a magistrate judge has determined 
        there is probable cause for the issuance of a warrant of arrest 
        in rem pursuant to the Federal Rules of Civil Procedure, 
        Supplemental Rules for Certain Admiralty and Maritime Claims;
            ``(3) a grand jury has returned an indictment that includes 
        an allegation that the property is subject to criminal 
        forfeiture;
            ``(4) the party filing the motion had notice of the intent 
        of the Government to forfeit the property administratively 
        pursuant to section 607(c) of the Tariff Act of 1930 (19 U.S.C. 
        1607(c)), and failed to file a claim to the property within the 
        specified time period;
            ``(5) the property is contraband or other property that the 
        moving party may not legally possess; or
            ``(6) the property is needed as evidence in a criminal 
        investigation or prosecution.

SEC. 7. AWARD OF ATTORNEYS' FEES TO SUCCESSFUL CLAIMANTS.

    Section 981 of title 18, United States Code, is amended by adding 
at the end the following:
    ``(o) Attorney Fees, Costs, Sanctions.--
            ``(1) In general.--Except as provided in paragraph (3), if 
        the party filing a claim in a civil forfeiture case is not 
        charged with any criminal offense in a related criminal case, 
        and the court enters judgment for that party on any ground 
        other than a ground set forth in subsection (r), the court 
        shall order the Government to pay costs and reasonable 
        attorneys' fees to the claimant. 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 attorneys' fees 
        accordingly.
            ``(2) Sanctions.--If the court enters judgment for the 
        Government, and the court determines that the claim was 
        frivolous, counsel representing the claimant may be subject to 
        sanctions pursuant to rule 11 of the Federal Rules of Civil 
        Procedure, and the claimant may be ordered to reimburse the 
        Government for costs.
            ``(3) Exception.--If the claimant is a lienholder with a 
        secured interest in the property subject to forfeiture, and the 
        Government agrees to accept the claim and pay off the 
        lienholder at the conclusion of the case if the Government 
        prevails as to other claims, no costs or attorneys fees shall 
        be paid to the lienholder.''.

SEC. 8. SPECIAL PROVISIONS FOR REAL PROPERTY.

    Section 981 of title 18, United States Code, is amended by adding 
at the end the following:
    ``(p) Civil Forfeiture of Real Property.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, all civil forfeitures of real property and interests in 
        real property shall proceed as judicial forfeitures. The 
        administrative forfeiture provisions of the Tariff Act of 1930 
        (19 U.S.C. 1602 et seq.) do not apply to the forfeiture of real 
        property.
            ``(2) Procedures.--
                    ``(A) In general.--Except as otherwise provided in 
                this subsection, real property that is the subject of a 
                civil forfeiture action shall not be seized before 
                entry of an order of forfeiture nor shall the owners or 
                occupants of the real property be evicted from, or 
                otherwise deprived of the use and enjoyment of, real 
                property that is the subject of a pending forfeiture 
                action. In lieu of issuing an arrest warrant in rem as 
                prescribed by the Federal Rules of Civil Procedure, 
                Supplemental Rules for Certain Admiralty and Maritime 
                Claims, the court in which a civil forfeiture action 
                against real property is pending shall issue a notice 
                of complaint for forfeiture, which notice shall be 
                served on the property owner and posted on the 
                property. The posting of such notice shall be 
                sufficient to give the court in rem jurisdiction over 
                the property.
                    ``(B) Constructive service of process.--If the 
                property owner cannot be served with the notice of 
                complaint for forfeiture because such owner is a 
                fugitive or resides outside of the United States, and 
                efforts at service pursuant to rule 4 of the Federal 
                Rules of Civil Procedure, are unavailing, or 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) Seizure prior to entry of order of forfeiture.--Real 
        property may be seized prior to the entry of an order of 
        forfeiture if the Government notifies the court that the 
        Government intends to seize the property before trial, and the 
        court, before issuing any seizure warrant or arrest warrant in 
        rem--
                    ``(A) 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 to 
                determine if there is probable cause for the 
                forfeiture; or
                    ``(B) 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.
            ``(4) Post-seizure hearing.--If the court issues a seizure 
        warrant or arrest warrant in rem pursuant to paragraph (3)(B), 
        the court shall conduct a prompt post-seizure hearing during 
        which the property owner shall have an opportunity to contest 
        the basis for the seizure. If the real property is seized 
        before a complaint is filed, the Government shall file a 
        complaint, or institute criminal forfeiture proceedings, within 
        90 days of the seizure in accordance with subsection (m).
            ``(5) Actions not considered seizures.--For purposes of 
        this section, 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.
            ``(6) Applicability.--This subsection applies only to civil 
        forfeitures of real property and interests in real property and 
        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. 
        Nothing in this section may be construed to affect the 
        authority of the court to issue a restraining order affecting 
        real property.''.

SEC. 9. COMPENSATION FOR DAMAGE TO SEIZED 
              PROPERTY.

    Section 2680(c) of title 28, United States Code, is amended--
            (1) by striking ``law-enforcement'' and inserting ``law 
        enforcement''; and
            (2) by inserting before the period at the end the 
        following: ``, except that--
            ``(1) this chapter and section 1346(b) do apply to any 
        claim based on negligence involving the destruction, injury, or 
        loss of goods or merchandise while in the possession of any 
        officer of customs or excise or any other Federal law 
        enforcement officer, if--
                    ``(A) the property was seized solely for the 
                purpose of forfeiture;
                    ``(B) the interest of the claimant is not 
                forfeited; and
                    ``(C) the claimant is not convicted of a crime for 
                which the interest of the claimant in the property 
                would be subject to forfeiture under Federal or State 
                law; and
            ``(2) damage to property occurring in the course of 
        carrying out a lawful law enforcement function, such as the 
        disassembly of goods and merchandise, may not be construed to 
        be the result of negligence, unless the law enforcement 
        function was carried out in an unreasonable manner''.

SEC. 10. UNIFORM INNOCENT OWNER DEFENSE.

    (a) In General.--Chapter 46 of title 18, United States Code, is 
amended by inserting after section 982 the following:
``Sec. 983. Innocent owners
    ``(a) The interest of an innocent owner in property shall not be 
forfeited in any judicial action under any civil forfeiture provision 
of this title, the Controlled Substances Act, or the Immigration and 
Nationality Act.
    ``(b)(1) In this section, the term `innocent owner' means, with 
respect to a property interest in existence at the time the illegal act 
giving rise to forfeiture took place, an owner who--
            ``(A) did not know that the property was being used or was 
        likely to be used in the commission of such illegal act, or
            ``(B) upon learning that the property was being used or was 
        likely to be used in the commission of such illegal act, did 
        all that reasonably could be expected to terminate or to 
        prevent such use of the property.
    ``(2)(A) In this section, the term `innocent owner' means, with 
respect to a property interest acquired after the act giving rise to 
the forfeiture took place, a person who establishes, by a preponderance 
of the evidence, that the person acquired the property as a bona fide 
purchaser for value who at the time of the purchase did not know and 
was reasonably without cause to believe that the property was subject 
to forfeiture.
    ``(B) In this paragraph--
            ``(i) the term `purchaser' means a person who becomes an 
        owner of property or an interest in specific property by giving 
        money, goods, or services in exchange for such property;
            ``(ii) a purchaser is `reasonably without cause to believe 
        that the property was subject to forfeiture' if, in light of 
        the circumstances, the purchaser did all that reasonably could 
        be expected to ensure that he or she was not acquiring property 
        that was subject to forfeiture.
    ``(C) 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 principal residence of the 
        claimant;
            ``(ii) depriving the claimant of the property would deprive 
        the claimant of the claimant's only means of maintaining 
        adequate 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 adequate shelter in the 
community for such claimant and all dependents residing with the 
claimant.
    ``(3) Notwithstanding any provision of this section, no person may 
assert an ownership interest under this section in contraband or other 
property that is illegal to possess. Except as provided in paragraph 
(2)(A), no person may assert an ownership interest under this section 
in property that is the proceeds of any criminal offense, or is 
traceable to the proceeds of any criminal offense, irrespective of 
State property law.
    ``(4) An innocent owner defense under this section is an 
affirmative defense.
    ``(c) In this section--
            ``(1) the term `owner'--
                    ``(A) means a person with an ownership interest in 
                the specific property sought to be forfeited, including 
                a lien, mortgage, recorded security device, 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 person;
                            ``(ii) a bailee, unless the bailor is 
                        identified, and the bailor has authorized the 
                        bailee to claim in the forfeiture proceeding, 
                        pursuant to the Federal Rules of Civil 
                        Procedure, Supplemental Rules for Certain 
                        Admiralty and Maritime Claims;
                            ``(iii) a nominee who exercises no dominion 
                        or control over the property; or
                            ``(iv) a beneficiary of a constructive 
                        trust; and
            ``(2) a person shall be considered to have known that his 
        or her property was being used or was likely to be used in the 
        commission of an illegal act, if the Government establishes the 
        existence of facts and circumstances that should have created a 
        reasonable suspicion that the property was being or would be 
        used for an illegal purpose.
    ``(d)(1) 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 shall 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) if neither subparagraph (A) nor (B) is reasonably 
        practical under all of the circumstances, 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.
    ``(2) To effectuate the purposes of this subsection, a joint 
tenancy or tenancy by the entireties shall be converted to a tenancy in 
common by order of the court, irrespective of State law.''.
    (b) 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) and inserting the 
                following:
            ``(2) [Reserved].''.
            (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) 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.
    (c) 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. Innocent owners.''.

SEC. 11. RELEASE OF PROPERTY IN HARDSHIP CASES.

    (a) In General.--Chapter 46 of title 18, United States Code, is 
amended by inserting after section 984 the following:
``Sec. 985. Release of property to avoid hardship
    ``(a) In General.--A person who has filed a claim in a civil 
forfeiture action governed by the procedures set forth in this chapter 
is entitled to release pursuant to subsection (b) of seized property 
pending trial if--
            ``(1) the claimant has a possessory interest in the 
        property sufficient to establish standing to contest forfeiture 
        and has filed a nonfrivolous claim on the merits of the 
        forfeiture action;
            ``(2) the claimant has sufficient ties to the community to 
        provide assurance that the property will be available at the 
        time of the trial;
            ``(3) the continued possession by the United States pending 
        the final disposition of forfeiture proceedings will cause 
        substantial hardship to the claimant, such as preventing the 
        claimant from working, leaving the claimant homeless, or 
        preventing the functioning of a business;
            ``(4) the hardship to the claimant outweighs the risk that 
        the property will be destroyed, damaged, lost, concealed, 
        diminished in value or transferred if the property is returned 
to the claimant during the pendency of the proceeding; and
            ``(5) none of the conditions set forth in subsection (c) 
        applies.
    ``(b) Procedures.--
            ``(1) In general.--The claimant may make a request for the 
        release of property under this subsection at any time after the 
        claim is filed. If, at the time the request is made, the 
        seizing agency has not yet referred the claim to a United 
        States attorney pursuant to section 608 of the Tariff Act of 
        1930 (19 U.S.C. 1608), the request may only be filed with the 
        seizing agency or the United States attorney to whom the claim 
        was referred. In either case, the request shall set forth the 
        basis on which the requirements of subsection (a)(1) are met.
            ``(2) Motion for return of seized property.--If the seizing 
        agency, or the United States attorney, as the case may be, 
        denies the request or fails to act on the request by the 
        deadline for filing a complaint for forfeiture in response to 
        the claim, as required under this chapter, the claimant may 
        file the request as a motion for the return of seized property 
        in the district court for the district represented by the 
        United States attorney to whom the claim was referred, or if 
        the claim has not yet been referred, in the district court that 
        issued the seizure warrant for the property, or if no warrant 
        was issued, in any district court that would have jurisdiction 
        to consider a motion for the return of seized property under 
        rule 41(e) of the Federal Rules of Criminal Procedure. The 
        motion shall set forth the basis on which the requirements of 
        subsection (a) have been met and the steps the claimant has 
        taken to secure the release of the property from the 
        appropriate official.
            ``(3) Action by district court.--The district court shall 
        act on a motion made pursuant to this subsection within 30 days 
        or as soon thereafter as practicable, and shall grant the 
        motion if the claimant establishes that the requirements of 
        subsection (a) have been met. All factual evidence shall be 
        submitted through affidavit. The Government, in responding to a 
        motion under this subsection, may in appropriate cases, submit 
        evidence ex parte in order to avoid disclosing any matter 
        relating to an ongoing criminal investigation or pending trial.
            ``(4) Court order to maintain value of property.--If the 
        court grants the motion, the court shall enter any order 
        necessary to ensure that the value of the property is 
        maintained while the forfeiture action is pending, including 
        permitting the inspection, photographing, and inventory of the 
        property, and the court may take action in accordance with rule 
        E of the Federal Rules of Civil Procedure, Supplemental Rules 
        for Certain Admiralty and Maritime Claims. If the property to 
        be returned is an airplane, a vessel, or a motor vehicle with a 
        value of greater than $25,000, the claimant shall post a bond 
        equal to the value of the property, unless the court waives the 
        bond for good cause. 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. The Government, in 
        responding to a motion under this subsection, may, in 
        appropriate cases, submit evidence ex parte in order to avoid 
        disclosing any matter relating to an ongoing criminal 
        investigation or pending trial.
            ``(5) Reinstatement of insurance.--Any insurance on the 
        subject property at the time of seizure shall be kept in force, 
        or shall be reinstated if it has been discontinued since the 
        time of seizure, prior to return of the property pursuant to 
        this subsection, and the court, in appropriate cases, may also 
        order that such insurance be obtained by the claimant as a 
        condition of release of the property. If property returned to 
        the claimant under this section is lost, stolen, or diminished 
        in value, any insurance proceeds shall be paid to the United 
        States and such proceeds shall be subject to forfeiture in 
        place of the property originally seized.
    ``(c) Inapplicability.--This section does not apply if the seized 
property--
            ``(1) is contraband, currency, or other monetary 
        instrument, or electronic funds;
            ``(2) is evidence of a violation of the law;
            ``(3) by reason of design or other characteristic, is 
        particularly suited for use in illegal activities; or
            ``(4) is likely to be used to commit additional criminal 
        acts if returned to the claimant.
    ``(d) Change of Venue.--Once a motion for the release of property 
under this section is filed, the party filing the motion or the 
Government may request that the motion be transferred to another 
district in which venue for the forfeiture action would lie under 
section 1355(b) of title 28 pursuant to the change of venue provisions 
in section 1404 of title 28.''.
    (b) 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. Release of property to avoid hardship.''.

SEC. 12. STAY OF CIVIL FORFEITURE CASE.

    (a) In General.--Section 981(g) of title 18, United States Code, is 
amended to read as follows:
    ``(g) Stay of Civil Forfeiture Case.--
            ``(1) In general.--Upon the motion of the United States, 
        the court shall stay the civil forfeiture proceeding if the 
        court determines that civil discovery or trial could adversely 
        affect the ability of the Government to conduct a related 
        criminal investigation or the prosecution of a related criminal 
        case.
            ``(2) Stay of proceedings.--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 may 
                infringe upon the right of the claimant against self-
                incrimination in the related investigation or case.
            ``(3) Protective order limiting discovery.--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 1 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 
        1 party to pursue discovery while the other party is 
        substantially unable to do so.
            ``(4) Definitions.--In this subsection, the terms `related 
        criminal case' and `related criminal investigation' mean an 
        actual prosecution or investigation in progress at the time 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 2 
        proceedings without requiring an identity with respect to any 1 
        or more factors.
            ``(5) Presentations ex parte and under seal.--Any 
        presentation by the Government to the court under this 
        subsection that involves an ongoing criminal investigation or 
        prosecution shall be made ex parte and under seal.
            ``(6) Court order to preserve value of property.--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) Applicability of standing determination.--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. 13. PREJUDGMENT INTEREST.

    (a) In General.--Section 2465 of title 28, United States Code, is 
amended--
            (1) by striking ``Upon'' and inserting the following:
    ``(a) In General.--Upon''; and
            (2) by adding at the end the following:
    ``(b) Interest.--Upon entry of judgment for the claimant in any 
proceeding to condemn or forfeit property seized or arrested under 
provision of title 18, the Controlled Substances Act, or the 
Immigration and Nationality Act, the United States--
            ``(1) shall be liable for post-judgment interest as set 
        forth in section 1961;
            ``(2) shall not be liable for prejudgment interest, except 
        that in cases involving currency or other negotiable 
        instruments, the United States shall disgorge to the claimant 
        any funds representing interest actually paid to the United 
        States from the date of seizure or arrest of the property, if 
        such interest resulted from the investment of the property in 
        an interest-bearing account or instrument; and
            ``(3) shall not be required to disgorge the value of any 
        intangible benefits nor to make any other payments of interest 
        or other compensation to the claimant not specifically 
        authorized by this subsection.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to any judgment entered after the date of enactment of this Act.

SEC. 14. SEIZURE WARRANT REQUIREMENT.

    (a) In General.--Section 981(b) of title 18, United States Code, is 
amended to read as follows:
    ``(b) Seizure Warrant Requirement.--
            ``(1) In general.--Any property subject to forfeiture to 
        the United States under this section may be seized by the 
        Attorney General. In addition, 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 United States 
        Postal Service, respectively.
            ``(2) Warrant requirement.--Any seizure pursuant to this 
        section shall be made pursuant to a warrant, which may be 
        issued by a magistrate judge 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 district court and the court has issued an arrest 
                warrant in rem pursuant to the Federal Rules of Civil 
                Procedure, Supplemental Rules for Certain Admiralty and 
                Maritime Claims, based upon a showing of probable 
                cause;
                    ``(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 has been 
                transferred to a Federal agency.
            ``(3) Out-of-district warrants.--Notwithstanding 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 
        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. The judicial officer shall command the officer to 
        seize, within a specified period of time not to exceed 20 days, 
        the property specified in the warrant. Any motion for the 
        return of property seized under this section shall be filed in 
        the district in which the seizure warrant was issued.
            ``(4) Suppression of evidence.--A party with standing to 
        challenge a seizure and forfeiture under this section may move 
        to suppress the use of the property as evidence on the ground 
        that the Government lacked probable cause at the time of the 
        seizure. Suppression of the property as evidence shall not 
        affect the right of the Government to proceed with a forfeiture 
        action based on independently derived evidence.
            ``(5) Persons arrested abroad.--
                    ``(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) 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. 15. CIVIL RESTRAINING ORDERS.

    Section 981 of title 18, United States Code, is amended by adding 
at the end the following:
    ``(q) Restraining Orders.--The court, before or after the filing of 
a forfeiture complaint and on the application of the Government, may--
            ``(1) enter any restraining order or injunction pursuant to 
        section 413(e) of the Controlled Substances Act (21 U.S.C. 
        853(e));
            ``(2) require the execution of satisfactory performance 
        bonds;
            ``(3) create receiverships;
            ``(4) appoint conservators, custodians, appraisers, 
        accountants, or trustees; or
            ``(5) take any other action to seize, secure, maintain, or 
        preserve the availability of property subject to forfeiture 
        under this section.''.

SEC. 16. EXCESSIVE FINES.

    Section 981 of title 18, United States Code, is amended by adding 
at the end the following:
    ``(r) Excessive Fines.--At the conclusion of the trial and 
following the entry of a verdict of forfeiture--
            ``(1) the claimant may petition the court to determine 
        whether the excessive fines clause of the eighth amendment to 
        the Constitution of the United States applies, and if so, 
        whether the forfeiture is grossly disproportional to the 
        gravity of the offense;
            ``(2) the claimant shall have the burden of establishing 
        that the forfeiture is grossly disproportional by a 
        preponderance of the evidence at a hearing conducted in the 
        manner provided in rule 43(e) of the Federal Rules of Civil 
        Procedure, by the court without a jury; and
            ``(3) if the court determines that the forfeiture is 
        grossly disproportional to the gravity of the offense, the 
        court shall adjust the forfeiture to the extent necessary to 
        avoid the constitutional violation.''.

SEC. 17. CIVIL INVESTIGATIVE DEMANDS.

    (a) In General.--Section 981 of title 18, United States Code, is 
amended by adding at the end the following:
    ``(s) Civil Investigative Demand.--In any investigation relating to 
the seizure or forfeiture of property under this section, the Attorney 
General, the Secretary of the Treasury, or their designee, may issue in 
writing, and cause to be served, a subpoena for evidence of the nature, 
and in the manner, described in section 3486.''.
    (b) Obstruction of Civil Investigative Demand.--Section 1505 of 
title 18, United States Code, is amended by inserting ``section 981(s) 
of this title or'' before ``the Anti-Trust Civil Process Act''.
    (c) Right to Financial Privacy Act Amendment.--Section 1120(b)(1) 
of the Right to Financial Privacy Act (12 U.S.C. 3420(b)(1)) is amended 
by inserting ``or civil investigative demand'' after ``a grand jury 
subpoena''.
    (d) Fair Credit Reporting Act Amendment.--Section 604(a)(1) of the 
Fair Credit Reporting Act (15 U.S.C. 1681b(a)(1)) is amended by 
inserting ``or a civil investigative demand proceeding'' before the 
period at the end.

SEC. 18. 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 Located Abroad.--
            ``(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 his or her rights under applicable financial 
                secrecy laws, or to obtain the records himself or 
                herself, so that the records can be made available, the 
                refusal of the claimant to provide the records in 
                response to a discovery request or take the action 
                necessary otherwise to make the records available shall 
                result in the 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. 19. 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. 20. ACCESS TO OTHER RECORDS.

    Section 6103(i)(1) of the Internal Revenue Code of 1986 (26 U.S.C. 
6103(i)(1)) is amended--
            (1) in subparagraph (A)(i), by inserting ``or related civil 
        forfeiture'' after ``enforcement of a specifically designated 
        Federal criminal statute''; and
            (2) in subparagraph (B)(iii), by inserting ``or civil 
        forfeiture investigation or proceeding'' after ``Federal 
        criminal investigation or proceeding''.

SEC. 21. STATUTE OF LIMITATIONS FOR CIVIL FORFEITURE ACTIONS.

    Section 621 of the Tariff Act of 1930 (19 U.S.C. 1621) is amended--
            (1) by inserting ``, or in the case of forfeiture, within 
        five years after the time when the existence of the property 
        and the involvement of the property in the alleged offense were 
        discovered'' after ``within five years after the time when the 
        alleged offense was discovered'';
            (2) in paragraph (1), by striking ``and'' at the end;
            (3) in paragraph (2), by striking the period at the end and 
        inserting ``; and''; and
            (4) by adding at the end the following:
            ``(3) the provisions of section 2415(e) of title 28, United 
        States Code, shall apply to this section.''.

SEC. 22. DESTRUCTION OR REMOVAL OF PROPERTY TO PREVENT SEIZURE.

    Section 2232 of title 18, United States Code, is amended--
            (1) in subsection (a)--
                    (A) by inserting ``or seizure'' after ``Physical 
                interference with search'';
                    (B) by inserting ``, including seizure for 
                forfeiture,'' after ``after seizure'';
                    (C) by striking ``searches and seizures'' after 
                ``authorized to make'' and inserting ``searches or 
                seizures'';
                    (D) by striking ``or'' after ``wares,''; and
                    (E) by inserting ``, or other property, real or 
                personal,'' after ``merchandise''; and
            (2) in subsection (b)--
                    (A) by inserting ``or seizure'' after ``Notice of 
                search'';
                    (B) by striking ``searches and seizures'' after 
                ``authorized to make'' and inserting ``searches or 
                seizures'';
                    (C) by inserting ``, including seizure for 
                forfeiture,'' after ``likely to make a search or 
                seizure''; and
                    (D) by inserting ``real or personal,'' after 
                ``merchandise or other property,''.

SEC. 23. 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; and
            (2) by striking subsection (b), as redesignated, and 
        inserting the following:
    ``(b) The provisions of this section may be invoked only if the 
action for forfeiture was commenced by a seizure or an arrest in rem 
within 2 years of the offense that is the basis for the forfeiture.'';
            (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) by adding at the end the following:
            ``(3) In this subsection, 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).''; 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.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to any transaction occurring on or after October 28, 1992.

SEC. 24. CURRENCY SEIZED FROM DRUG COURIERS.

    Section 511 of the Controlled Substances Act (21 U.S.C. 881) is 
amended by inserting after subsection (j) the following:
    ``(k)(1) In any action with respect to the forfeiture of seized 
currency pursuant to subsection (a)(6) of this section, or subparagraph 
(A) or (B) of section 981(a)(1) of title 18, United States Code, the 
finder of fact shall determine the nexus between the currency and the 
drug trafficking offense based on the totality of the circumstances. 
The presence or absence of any 1 factor shall not be dispositive.
    ``(2) In making a determination under paragraph (1), the finder of 
fact may rely on any of the following factors as probative of a 
connection between large quantities of currency and drug trafficking:
            ``(A) The currency was in excess of the amount normally 
        carried by legitimate leisure and business travelers, and was, 
        at the time of seizure, being transported through an airport, 
        on a highway, or at a port-of-entry.
            ``(B) The currency was packaged in bundles, concealed in 
        paper bags, wrapped in cellophane or other plastic wrap, 
        concealed under clothing, or otherwise being transported in a 
        highly unusual manner.
            ``(C) The currency was packaged with, or found in proximity 
        to, products or chemicals intended to conceal odors from a drug 
        detection dog, or had recently been washed or cleaned with 
        water or chemicals designed to remove such odors.
            ``(D) The person transporting the property (or any portion 
        thereof) provided false information to any law enforcement 
        officer or inspector who lawfully stopped the person for 
        investigative purposes or for purposes of a United States 
        border inspection.
            ``(E) The currency was found in close proximity to a 
        measurable quantity of any controlled substance.
            ``(F) The currency was the subject of a positive alert by a 
        properly trained dog that did not alert to a controlled sample 
        of currency.
            ``(G) The currency at issue was acquired during a period of 
        time when the person who acquired the property was engaged in a 
        drug trafficking offense or within a reasonable time after such 
        period, and there is no likely source for such property other 
        than that offense.
            ``(H) The person transporting the currency had associated 
        with, or was carrying telephone numbers, pager numbers, or 
        other information providing a means of contacting, persons 
        engaged in the illegal sale and distribution of controlled 
        substances.
            ``(I) The currency was, or was intended to be, transported, 
        transmitted, or transferred to or from a major drug-transit 
        country, a major illicit drug producing country, or a major 
        money laundering country, as determined pursuant to sections 
        481(e) and 490(h) of the Foreign Assistance Act of 1961 (22 
        U.S.C. 2291(e) and 2291j(h)), as applicable.
            ``(J) Any person involved in the transportation or intended 
        delivery of the currency has been convicted in any Federal, 
        State, or foreign jurisdiction of a drug trafficking offense or 
        a felony involving money laundering, or is a fugitive from 
        prosecution for such offense.
    ``(3) The listing of probative factors in this subsection shall not 
preclude the development of other judicially recognized factors, or the 
establishment of a basis for forfeiture on criteria other than those 
set forth in this subsection.
    ``(4) In this subsection, the term `drug trafficking offense' means 
with respect to an action under--
            ``(A) subsection (a)(6), any illegal exchange involving a 
        controlled substance or other violation for which forfeiture is 
        authorized under that subsection;
            ``(B) section 981(a)(1)(B) of title 18, United States Code, 
        any offense against a foreign nation involving the manufacture, 
        importation, sale, or distribution of a controlled substance 
        for which forfeiture is authorized under that section; and
            ``(C) section 981(a)(1)(A) of title 18, United States Code, 
        an offense involving the felonious manufacture, importation, 
        receiving, concealment, buying, selling, or otherwise dealing 
        in a controlled substance, which constitutes a specified 
        unlawful activity (as defined in section 1956(c) of title 18, 
        United States Code).''.

SEC. 25. USE OF FORFEITED FUNDS TO PAY RESTITUTION TO CRIME VICTIMS.

    (a) In General.--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''.
    (b) Proceeds of Crime.--Section 981(a)(1)(C) of title 18, United 
States Code, is amended by striking ``affecting a financial 
institution''.

SEC. 26. 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
    ``Any person who, in order to avoid criminal prosecution, purposely 
leaves the jurisdiction of the United States, declines to enter or 
reenter the United States to submit to its jurisdiction, or otherwise 
evades the jurisdiction of the court in which a criminal case is 
pending against the person, may not use 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.''.
    (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 enactment this Act.

SEC. 27. 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 `value-based confiscation judgment' means a 
        final order of a foreign nation compelling a defendant, as a 
        consequence of his or her criminal conviction for 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, to pay a sum of money representing 
        the proceeds of such offense, or property the value of which 
        corresponds to such proceeds.
    ``(b) Review by Attorney General.--
            ``(1) In general.--A foreign nation seeking to have its 
        value-based 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 criminal proceeding that resulted in 
                the value-based confiscation judgment;
                    ``(B) certified copies of the judgment of 
                conviction and value-based 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 value-based 
                confiscation judgment rendered is in force and is not 
                subject to appeal;
                    ``(D) an affidavit or sworn declaration that all 
                reasonable efforts have been undertaken to enforce the 
                value-based confiscation judgment against the property 
                of the defendant, if any, in the foreign country; and
                    ``(E) 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, in consultation with the 
        Secretary of State or the designee of the Secretary, shall 
        determine whether 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 foreign nation may file a civil proceeding in district 
        court of the United States seeking to enforce the foreign 
        value-based 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 foreign nation shall be the plaintiff and 
                the person against whom the value-based confiscation 
                judgment was entered shall be the defendant;
                    ``(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.--Except as provided in paragraph (2), the 
        district court shall enter such orders as may be necessary to 
        enforce the value-based confiscation judgment on behalf of the 
        foreign nation if the court finds that--
                    ``(A) the value-based confiscation judgment was 
                rendered under a system that provides impartial 
                tribunals or procedures compatible with the 
                requirements of due process of law;
                    ``(B) the foreign court had personal jurisdiction 
                over the defendant;
                    ``(C) the foreign court had jurisdiction over the 
                subject matter;
                    ``(D) the defendant in the proceedings in the 
                foreign court received notice of the proceedings in 
                sufficient time to enable him or her to defend; and
                    ``(E) the judgment was not obtained by fraud.
            ``(2) Exception.--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.--Upon a finding by the district 
court that the conditions set forth in subsection (d) have been 
satisfied, the court shall be bound by the findings of facts to the 
extent that they are stated in the foreign judgment of conviction and 
value-based 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 value-based 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. 28. 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 
Comprehensive Drug Abuse Prevention and Control Act of 1970 (21 U.S.C. 
853).''.

SEC. 29. APPLICATION OF PROCEDURES FOR DRUG CASES.

    Section 511(d) of the Controlled Substances Act (21 U.S.C. 881(d)) 
is amended by adding at the end the following: ``Chapter 46 of title 
18, United States Code, applies to any seizure or forfeiture under this 
section, to the extent applicable and not inconsistent with this 
section.''.

SEC. 30. APPLICATION OF PROCEDURES TO OTHER CIVIL FORFEITURES.

    (a) In General.--Chapter 46 of title 18, United States Code, is 
amended by adding at the end the following:
``Sec. 987. Application of procedures
    ``The procedures set forth in this chapter relating to civil 
forfeiture shall apply to all civil forfeitures under any provision of 
this title.''.
    (b) Conforming Amendment.--The analysis for chapter 46 of title 18, 
United States Code, is amended by adding at the end the following:

``987. Application of procedures.''.

SEC. 31. 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)(7) of title 18, United States Code, is 
amended--
            (1) by striking ``(A)'';
            (2) by striking subparagraph (B); and
            (3) by redesignating clauses (i) and (ii) as subparagraphs 
        (A) and (B), respectively;
            (4) by redesignating subclauses (I) and (II) as clauses (i) 
        and (ii), respectively;
            (5) 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;
            (6) in subparagraph (A), as redesignated by this 
        subsection, by striking ``a violation of, or a conspiracy to 
        violate, subsection (a)'' and inserting ``the offense of which 
        the person is convicted''; and
            (7) in subparagraph (B)(i) and (ii), as redesignated by 
        this subsection, 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''.

SEC. 32. EFFECTIVE DATES.

    (a) In General.--Unless otherwise specified in this Act, the 
amendments made by this Act apply to any forfeiture proceeding 
commenced on or after the date of enactment of this Act.
    (b) Administrative Forfeitures.--The amendments made by this Act 
relating to seizures and administrative forfeitures shall apply to 
seizures occurring on or after the 90th day after the date of enactment 
of this Act.
    (c) Civil Judicial Forfeitures.--The amendments made by this Act 
relating to judicial procedures applicable once a civil forfeiture 
complaint is filed by the Government shall apply to any case in which 
the forfeiture complaint is filed on or after the date of enactment of 
this Act.
    (d) Substantive Law.--The amendments made by this Act expanding 
substantive forfeiture law to make property subject to civil or 
criminal forfeiture that was not previously subject to civil or 
criminal forfeiture shall apply to any offense occurring after the date 
of enactment of this Act.
                                 <all>