Justice Management Division...Serving Justice - Securing Results

The Fund. The Department of Justice Assets Forfeiture Fund (hereafter referred to as the "Fund" or the "AFF") is a special fund established in the Treasury to receive the proceeds of forfeitures pursuant to any law enforced or administered by the Department of Justice, as defined in 28 U.S.C. 524(c), as well as the federal share of forfeitures under state, local and foreign law, and the proceeds of investments of Fund balances. All funds deposited to the AFF are considered "public" monies, i.e., funds belonging to the U.S. government. The monies deposited into the AFF are available to cover all expenditures in support of the asset forfeiture program that are allowable under the Fund statute. The Fund was created by the Comprehensive Crime Control Act of 1984 (P.L. 98-473, dated October 12, 1984) at title 28, United States Code, Section 524(c).

Purpose. The Fund exists to eliminate economic disincentives to operation of an extensive national asset forfeiture program by providing a stable source of funds to pay costs, not otherwise funded under agency appropriations, to execute forfeiture functions. This is made possible by depositing the proceeds of all forfeitures under any laws enforced or administered by the Department of Justice into the Fund, and using those receipts to finance expenses associated with asset forfeiture functions. Prior to creation of the Fund, costs associated with execution of asset forfeiture functions had to be absorbed against agency operating funds. In the absence of agency appropriations for these purposes, this created an economic disincentive to pursue asset forfeiture as a significant law enforcement sanction.

Scope. In general, property is forfeited "pursuant to any law enforced or administered by the Department" if (1) it is administratively forfeited by a Justice agency, or (2) it is judicially forfeited and, either the underlying seizure was made by a law enforcement agency participating in the Fund or the property was maintained by the U.S. Marshals Service.

Forfeiture Related Expenses. Consistent with the purpose of the AFF, Congress provides broad authority to the Attorney General to use the Fund to finance costs directly related to execution of forfeiture functions, including costs of:

• Contract services to identify and locate forfeitable property;
  
  
• Pre-seizure and post-seizure assessment of property to determine if forfeiture of the property should be pursued;
  
  
• Seizure of property subject to forfeiture;
  
  
• Detention, storage, management, protection, and maintenance of Fund related property;
  
  
• Notification, advertisement, transcripts, travel and other activities associated with accomplishing the legal forfeiture of the property;
  
  
• Compromise and satisfaction of valid liens, mortgages and other claims of innocent third parties as necessary to clear title to such property, once forfeited;
  
  
• Disposition of the property;
  
  
• Distribution of part of the net proceeds from the forfeiture to private parties (through awards based on the forfeiture) and to state and local law enforcement agencies (through equitable sharing) who directly contributed to the seizure or forfeiture of the property; and
  
  
• Administration of a national asset forfeiture program including the costs of training, printing, data processing, accounting, audits, management, and other administrative matters.

These forfeiture related expenses constitute a substantial majority of all costs paid from the Fund.

General Law Enforcement Expenses. In recognition that competent performance of these asset forfeiture functions is likely to produce revenues that exceed forfeiture related costs, Congress has provided the Attorney General authority to use Fund receipts for general law enforcement needs, subject to specific limitations. The Attorney General may use current year Fund receipts to finance (a) certain costs of state and local officers participating in joint investigations with an investigative agency participating in the Fund, (b) the storage, protection and destruction of controlled substances, and (c) subject to an annual statutory limitation, costs of awards to informants, purchase of evidence under certain statutes, and equipping of conveyances for law enforcement use. These discretionary uses are not central to the purpose for the Fund, and the level of funding available for these uses varies from year to year depending on program performance.

Surplus Balances. After a fiscal year closes, once all forfeiture related expenses have been covered, and any reserve necessary to support ongoing operations for the next fiscal year has been established, the Attorney General may use (subject to concurrence by the Congress) any excess unobligated balance remaining from the prior year's operations for any federal law enforcement, litigative/prosecutive, and correctional activity, or any other authorized purpose of the Department of Justice. Excess unobligated balances may not be available every year. Once declared, this surplus balance is available to the Attorney General until expended.

Related Holding Account. The Seized Asset Deposit Fund (SADF) is a holding account established administratively by the Department of Justice (DOJ) to receive seized cash, proceeds of sale from seized property, and receipts from income producing assets seized for forfeiture, pursuant to any law enforced or administered by the Department of Justice. In general, title to funds on deposit in the SADF are still in dispute. Thus, these funds are considered "non-public" monies and are not available for governmental purposes. The Department invests idle balances in the SADF.

Fund Related Property. The following represent Fund related property.

• Any property forfeited pursuant to any law enforced or administered by the Department of Justice, as defined in 28 U.S.C. 524(c), becomes property of the AFF upon forfeiture and is accounted for on the financial statements of the AFF, until final disposition. Such dispositions must be authorized by statute and be consistent with Departmental policy.
  
  
• Any property seized for forfeiture, or satisfaction of an open forfeiture judgment, under any law enforced or administered by the Department of Justice is considered property related to the Fund and is accounted for as seized property on the financial statements of the AFF until the property is forfeited or released, or the property is no longer being pursued for forfeiture.

Limitations on Use of AFF. Items not payable from the Fund by law or policy include:

• Expenses that are expressly limited by statute. Federal law prohibits the use of appropriations for certain activities unless expressly authorized in agency appropriations acts (e.g., construction, acquisition of aircraft, acquisition of motor vehicles, etc.);
  
  
• Personnel expenses (e.g., salaries, overtime and benefits) for employees of the United States, except as expressly approved by the Attorney General;
  
  
• Purchase of real property or any interests therein, except to acquire full title to or to satisfy liens or mortgages on forfeited property;
  
  
• Expenses in connection with the seizure, detention and disposition of property where the seizure was effected for debt collection, preservation of evidence of a crime, protection of the property, judgment enforcement, restitution, or other non-forfeiture purpose; unless the property also qualifies as Fund related property;
  
  
• Payments to compensate law enforcement agencies for a reduction in equitable sharing payments based on the value of property placed into official use by an agency participating in the Fund; and
  
  
• Absent express statutory authority to pay damages or costs, including attorneys fees, the AFF is not available to satisfy adverse judgments in asset forfeiture cases above the amount deposited to the AFF, less payments already made of eligible third party claims. The difference between this net deposit and the judgment amount is to be paid from other available appropriations, such as the Judgment Fund.