2233

Administrative Forfeiture of Bank Accounts

Section 1607(a) (4) states that "monetary instruments" may be administratively forfeited without regard to dollar value and incorporates by reference 31 U.S.C. § 5312(a)(3) which defines the term "monetary instrument" to mean currency, travelers checks, various forms of bearer paper, and "similar material." The legislative history of 31 U.S.C. § 5312(a)(3) indicates that Congress intended the term "monetary instrument" to apply only to highly liquid assets. (H. Rep. No. 91-975, 91st Cong. 1, 2d Sess., reprinted in 1970 U.S. Code Cong. & Admin. News 4407. "It is not the intention of your committee, however, that this broadened authority be expanded any further than necessary to cover those types of bearer instruments which may substitute for currency.") The relevant regulatory definition of "monetary instruments," 31 C.F.R §  103.11(m), cannot be construed as encompassing bank accounts. Consequently, section 1607(a)(4) may not be used as a basis for the administrative forfeiture of seized bank accounts. By contrast, section 1607(a)(1) may be used as a basis for administratively forfeiting bank accounts of a value of $500,000 or less. When incorporated by reference into substantive forfeiture statutes, the provisions of the customs laws are to be viewed as procedural rules only and do not define or limit the scope of those substantive forfeiture statutes. The only limitation on the scope of property forfeitable under the procedures set out in 19 U.S.C. § 1607(a)(1) is the "$500,000 or less" language. The listing of specific types of property in 1607(a)(1) merely refers to the types of property forfeitable under the customs laws and in no way disallows the application of the procedures in section 1607 to other types of property forfeitable under other forfeiture statutes. Moreover, 18 U.S.C. § 981(d) and 21 U.S.C. §  881(d) expressly state that the provisions of the customs laws relating to the seizure and forfeiture of property for violation of the customs laws (i.e., 19 U.S.C. § 1602 et seq.) apply to forfeitures under those statues "insofar as they are applicable and not inconsistent with" their provisions. Consequently, property valued at $500,000 or less which is forfeitable under the governing forfeiture statute may be administratively forfeited pursuant to the procedures set forth at 19 U.S.C. § 1602, et seq. In sum, administrative proceedings are not to be used to forfeit bank accounts exceeding $500,000 in value. The Criminal Division's Asset Forfeiture and Money Laundering Section (AFMLS), (202) 514-1263, is available to provide guidance regarding these issues and should be notified of any challenges to the validity of previously concluded administrative forfeitures of bank accounts. [cited in USAM 9-112.120]