A. General Authority

The Attorney General has authority to dispose of forfeited assets pursuant to 28 U.S.C. § 524(c) and other statutes. The exercise of these authorities is discretionary and the Attorney General may set conditions for any such disposal.

B. Owners and Lienholders

The Attorney General has the authority to grant petitions for remission or mitigation of forfeiture and restore forfeited property to owners and lienholders. In addition to innocent owners’ statutory ability to challenge forfeitures, the Attorney General has promulgated regulations governing the process by which owners and lienholders may seek remission or mitigation after forfeiture.

C. Federal Financial Institution Regulatory Agencies

The Attorney General has the authority to transfer forfeited assets to federal financial institution regulatory agencies to reimburse payments to claimants and creditors and to reimburse certain losses to the agency’s insurance fund as a result of a receivership or liquidation.

D. Victims

The Attorney General has the authority to grant petitions for remission and mitigation; to restore forfeited property to victims; and, in criminal cases, to take any other action to protect the rights of innocent persons which is in the interest of justice and which is not inconsistent with federal law. The Attorney General has promulgated regulations governing the process by which victims may seek compensation.

Recovering assets that may be used to compensate victims when authorized under federal law is one of the Program’s primary goals. Whenever possible, prosecutors should use asset forfeiture to recover assets to return to victims of crime, as permitted by law. The Department of Justice uses asset forfeiture authorities as an important tool, and sometimes the only available tool, to ensure assets are available to compensate victims.

E. International Sharing

The Attorney General or his designee may transfer any forfeited assets, as authorized by statute, to a foreign country that participated directly or indirectly in the seizure or forfeiture of the assets.

F. Federal Retention

The Attorney General has the authority to retain or transfer forfeited property for official use by any federal agency. No seized property shall be placed into official use until a final determination of forfeiture has been made and the request to place the property into official use has been approved by the appropriate official. Distributions to owners, lienholders, federal financial institution regulatory agencies, and victims take precedence over federal official use.

G. Equitable Sharing

The Attorney General has the authority to equitably transfer forfeited assets to tribal, state, and local agencies that directly participate in the law enforcement effort leading to the seizure and forfeiture of the assets. Through equitable sharing, any tribal, state, or local law enforcement agency that directly participates in a law enforcement effort that results in a federal forfeiture may either request to put tangible forfeited property into official use or to receive an equitable share of the net proceeds of the forfeiture. The Department of Justice sets requirements for tribal, state, and local agencies to establish their eligibility to request and receive equitable sharing, as well as for Department of Justice officials to determine equitable sharing amounts. Distributions to owners, lienholders, federal financial institution regulatory agencies, and victims, and federal retention, take precedence over equitable sharing.

H. Real Property Transfers

The Attorney General has the authority to warrant clear title upon transfer of forfeited real property. In certain circumstances, the Attorney General may execute a non-sale transfer of federally forfeited real property for official use; to meet other federal needs; to serve state recreational, preservation, or historic purposes; or to assist a state or local government, public, or non-profit agency in carrying out educational, treatment, rehabilitation, housing, and other community-based initiatives.

[updated February 2019]