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Agency Budget Summary
Department of Justice
Assets Forfeiture Fund
I. Resource Summary
II. Methodology
- All Department of Justice Asset Forfeiture Funds are 100 percent drug-related.
III. Program Summary
- The Comprehensive Crime Control Act of 1984 established the Justice Department's Assets Forfeiture Fund (AFF), into which forfeited cash and the proceeds of the sale of forfeited properties are deposited. Most assets are forfeited because they were used in or acquired as a result of, violations of racketeering, money laundering, or drug trafficking statutes.
- Until December 1994, the fund was administered by the Executive Office for Asset Forfeiture, Office of the Deputy Attorney General. Since that time, that fund has been administered by the Asset Forfeiture Management Staff, Justice Management Division.
- The AFF supports Goal 2, "Increase the safety of America's citizens by substantially reducing drug-related crime and violence" and Goal 5, "Break foreign and domestic drug sources of supply" of the Strategy. The AFF funds may be used for several purposes:
- Asset Management Expenses. These include expenses incurred in connection with the seizure, inventory, appraisal, packaging, movement, storage, maintenance, security, and disposition (including destruction) of assets.
- Other Asset Specific Expenses. These include case-specific expenses incurred in connection with normal proceedings undertaken to perfect the United States' interest in seized property through forfeiture. Such expenses include fees and other costs of advertising, translation, court reporting, expert witness fees, courtroom exhibit services, travel, and subsistence related to a specific proceeding, and other related items. Also included are payments of qualified third party interests, such as expenses incurred in the payment of valid liens, mortgages, and ownership interests pursuant to court order or a favorable ruling on a petition for remission or mitigation of the forfeiture.
- Equitable Sharing Payments. These include distributions of the net proceeds (after recovering direct costs) of forfeitures to foreign governments and to state and local law enforcement agencies in proportion to the degree of their direct participation in the law enforcement effort that resulted in the forfeiture.
- Program Management Expenses. These include expenses incurred in carrying out forfeiture program responsibilities that are not related to any one specific asset or to any one specific seizure or forfeiture (e.g., audits and evaluations). Also included are expenses of forfeiture related automated data processing; contracting for services directly related to the processing of and accounting for assets and forfeiture cases; forfeiture-related printing and graphic services; asset seizure and forfeiture training; the storage, protection, and destruction of controlled substances; and contracting for services directly related to the identification of forfeitable assets.
- Investigative Expenses. These include certain specific expenses incurred in support of or in furtherance of criminal investigations. Current authorities provide (1) awards for information or assistance directly related to violations of the criminal drug laws of the United States or of Sections 1956 and 1957 of Title 18, Sections 5313 and 5324 of Title 31, and Section 6050I of the Internal Revenue Code of 1986, or leading to a civil or criminal forfeiture by any federal agency participating in the Fund; (2) purchases of evidence of any violation of the controlled Substances Act, the Controlled Substances Import and Export Act, RICO, or 18 U.S.C. 1956 and 1957; and (3) equipping of conveyances for law enforcement functions.
- Other Uses. These include payments under the permanent indefinite portion of the fund for overtime salaries, travel, fuel, training, equipment, and similar costs incurred by state or local law enforcement officers in a joint law enforcement operation with afederal law enforcement agency participating in the fund.
- Transfers to Other Accounts. These reflect the transfer to other accounts of proceeds in excess of the amounts required for the above activities. Congress provided for excess funds, if any, to be transferred to the Bureau of Prisons (1988-1989), the U.S. Attorneys (1989), and the Special Forfeiture Fund (1990-1997). Title 28 U.S.C. 524(c)(8)(E) provides for the use of any remaining excess balance by the Attorney General for any federal law enforcement, litigative/prosecutive, and correctional activities, or any other authorized purpose of the Department of Justice.
IV. Budget Summary
1999 Program
- The FY 1999 level totals $523 million, which includes $23 million in definite authority, $394.7 million in permanent indefinite authority, and $105.3 million in unobligated Super Surplus funds.
- The FY 1999 program level includes $509.8 million for state and local assistance, investigative and prosecution activities in support of Goal 2 of the Strategy and $13.2 million for investigative and prosecution activities, as well as for domestic and international drug-trafficking activities, which support Goal 5 of the Strategy.
- Deposits to the fund are estimated at $434 million for FY 1999. This estimate represents a three percent decrease from the FY 1998 receipts of $448.9 million.
2000 Request
- The FY 2000 drug control budget request totals $433 million, a decrease of $90 million from the FY 1999 level. This decrease reflects the obligation of all available Super Surplus balances during FY 1999. A Super Surplus of $2 million rescinded by Public Law 105-277 will be available for obligation in FY 2000.
- Included in the $433 million request is $23 million in definite authority, $408 million in permanent indefinite authority, and $2 million in rescinded Super Surplus funds. The drug control request resource distribution includes $416.3 million for Goal 2 activities and $16.7 million to support Goal 5 activities.
- Based on current projections, receipts to the Fund in FY 2000 will be $448 million, excluding interest earned on the Bank of Credit and Commerce International (BCCI) and McNamara balances ($4.9 million) which is not available for general operations of the Fund.
V. Program Accomplishments
- At the end of 1998, a total of 24,903 seized assets were on hand with a total of $1 billion on deposit in the Seized Assets Deposit Fund. This consists of 7,799 cash seizures with a value of $349.2 million; 1,181 real properties valued at $204.5 million; 45 businesses valued at $48.7 million; and 15,878 other assets with an estimated value of $397.9 million.
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