Civil Asset Forfeiture Reform Act

Civil Asset Forfeiture Reform Act - Amends the Federal criminal code to provide for the creation of general rules relating to civil forfeiture proceedings. Requires the seizure notice required by an agency under the Tariff Act of 1930 with respect to any nonjudicial civil forfeiture proceeding under a civil forfeiture statute to be sent, together with information on the applicable procedures, not later than 60 days after the seizure to each party known to the agency to have an ownership or possessory interest in the seized article.

Authorizes: (1) the Government to apply to a Federal magistrate judge for an extension of time to comply under specified circumstances; (2) a person with such an interest who failed to file a claim within the prescribed time period, on motion made within two years after the date of final publication of notice of seizure, to move to set aside a declaration of forfeiture; and (3) a person claiming seized property to file a claim with the appropriate official within 30 days after the date of final publication of notice of seizure or, in the case of a person receiving written notice, the date that such notice is received.

Directs the Attorney General, in cases where property has been seized or restrained by the Government and a claim has been filed, to file a complaint for forfeiture in the appropriate court in the manner set forth in the Supplemental Rules for Certain Admiralty and Maritime Claims, or to include a forfeiture count in a criminal indictment or information, or both, not later than 90 days after the claim was filed, or return the property pending the filing of a complaint or indictment. Permits the 90-day filing requirement to be waived by mutual agreement between the Government and the claimants.

Authorizes the Government to apply to a Federal magistrate judge in any district where venue for a forfeiture action would lie for an extension of time in which to comply with such requirement, based on a showing of good cause. Specifies that, if the reason for the extension is that the filing would jeopardize an ongoing criminal investigation or prosecution or court-authorized electronic surveillance, the application may be ex parte. Directs the claimant, upon the filing of a civil complaint, to file a claim and answer in accordance with the Supplemental Rules for Certain Admiralty and Maritime Claims.

Authorizes the court to appoint counsel to represent a person regarding a claim if the person filing the claim is financially unable to obtain representation by counsel and requests that counsel be appointed. Directs the court to consider the nature and value of the property subject to forfeiture, the claimant's standing to contest the forfeiture, and whether the claim appears to be made in good faith or to be frivolous. Sets forth provisions regarding attorney compensation.

Places the burden of proof at trial on the United States, in all suits or actions brought for the civil forfeiture of any property, to establish, by a preponderance of the evidence, that the property is subject to forfeiture. Places the burden on the claimant, if the Government proves that the property is subject to forfeiture, to establish any affirmative defense by a preponderance of the evidence.

Specifies that an innocent owner's interest in property shall not be forfeited in any civil forfeiture action.

Sets forth requirements regarding: (1) motions to suppress seized evidence; (2) the use of hearsay at pretrial hearings; (3) stipulations; (4) preservation of property subject to forfeiture; (5) excessive fines; and (6) a pre-discovery standard of forfeitability.

Entitles a person who has filed a claim to release of seized property pending trial if: (1) the claimant has a possessory interest in the property sufficient to establish standing to contest forfeiture, has filed a nonfrivolous claim on the merits of the forfeiture action, and has sufficient ties to the community to provide assurance that the property will be available at time of trial; (2) the continued possession by the Government pending the final disposition of forfeiture proceedings will cause substantial hardship to the claimant; (3) the claimant's hardship outweighs the risk that the property will be destroyed, damaged, lost, concealed, diminished in value, or transferred if it is returned to the claimant during the pendency of the proceeding; and (4) the seized property is not contraband, currency (not constituting business assets), evidence of a violation of law, particularly suited for use in illegal activities, or likely to be used to commit additional criminal acts if returned.

(Sec. 3) Amends the Federal Tort Claims Act to make such Act applicable to any claim based on the negligent destruction, injury, or loss of goods, merchandise, or other property while in the possession of any officer of customs or excise or any other law enforcement officer, if the property was seized for the purpose of forfeiture but the interest of the claimant is not forfeited.

Authorizes the Attorney General to settle certain claims, for up to $50,000 per case, for damage to or loss of privately owned property caused by an investigative or law enforcement officer who is employed by the Department of Justice acting within the scope of his or her employment.

(Sec. 4) Makes the United States liable for post-judgment interest upon entry of judgment for the claimant in any proceeding to condemn or forfeit property seized or arrested under any Act of Congress, but not for prejudgment interest, with exceptions. Specifies that the United States shall not be required to disgorge the value of any intangible benefits nor make any other payments to the claimant not specifically authorized.

(Sec. 5) Amends civil forfeiture provisions of the code to require that seizures be made pursuant to a warrant obtained in the same manner as provided for a search warrant under the Federal Rules of Criminal Procedure (FRCrP), with exceptions.

(Sec. 6) Provides that, in any civil forfeiture case or in an ancillary proceeding in a criminal forfeiture case under the Controlled Substances Act (CSA), the refusal of the claimant to provide records in response to a discovery request or to take action necessary to make the records available shall result in the dismissal of the claim with prejudice where: (1) financial records located in a foreign country may be material to any claim or to the ability of the Government to respond to such claim, or in a civil forfeiture case, to the Government's ability to establish the forfeitability of the property; and (2) it is within the capacity of the claimant to waive the claimant's rights under such secrecy laws or to obtain the records, so that the records can be made available.

(Sec. 7) Amends: (1) the Internal Revenue Code to provide for the disclosure of tax returns and return information for use in criminal investigations involving civil forfeitures; and (2) the Federal criminal code to expand the provision authorizing disclosure of grand jury information to Federal prosecutors to cover any use in connection with any civil forfeiture provision of Federal law, regardless of whether it concerns a banking law violation.

(Sec. 9) Authorizes the use of forfeited funds to pay restitution to financial institutions and regulatory agencies. Establishes procedures for the enforcement of foreign forfeiture judgments. Provides for the admissibility into evidence of foreign business records under specified circumstances.

(Sec. 13) Amends: (1) the code and the CSA to make cost bond and burden of proof provisions of the Tariff Act inapplicable to forfeitures governed by the procedures set forth in the code regarding civil forfeitures; (2) Tariff Act provisions regarding judicial condemnation to require that a customs officer transmit a claim and bond and specified information to the United States attorney for the district in which a forfeiture action could be filed; and (3) the code to authorize sharing forfeited property with cooperating foreign governments whenever property is civilly or criminally forfeited under any provision of Federal law.

(Sec. 20) Authorizes the forfeiture of: (1) property used to facilitate foreign drug crimes; (2) proceeds traceable to facilitating property in drug cases; (3) proceeds of specified foreign crimes; and (4) coins and currency in confiscated gambling devices.

(Sec. 26) Amends: (1) the Tariff Act regarding the statute of limitations for civil forfeiture actions; (2) the code to expand the scope of provisions prohibiting the destruction or removal of property to prevent seizure; (3) code provisions to provide that any criminal forfeiture, including any seizure and disposition of the property and any related administrative or judicial proceeding, shall be governed by the Comprehensive Drug Abuse Prevention and Control Act of 1970, with an exception; (4) the code and the CSA to make inapplicable a provision under FRCrP 15 requiring the defendant's consent and the defendant's presence at the deposition where property has been declared forfeited; and (5) the code to allow a party to pursue discovery of bank records pursuant to the FRCrP.

(Sec. 32) Requires the court to order criminal forfeiture for money laundering conspiracies.

(Sec. 34) Amends: (1) the CSA to authorize the court to order the repatriation of property placed beyond the jurisdiction of the court and provide that any property that is transferred to a person other than the defendant after the U.S. interest in the property has vested shall be ordered forfeited to the United States, with an exception; (2) the Archeological Resources Protection Act of 1979 to provide that if a forfeiture count is included within an indictment in accordance with the FRCrP and the defendant is convicted of the offense giving rise to the forfeiture, the forfeiture may be ordered as part of the criminal sentence; (3) the code to provide for forfeiture of instrumentalities of terrorism, telemarketing fraud, and other specified offenses, criminal proceeds transported in interstate commerce, and counterfeit paraphernalia, and for odometer tampering offenses; and (4) the Federal Food, Drug, and Cosmetic Act to provide for civil and criminal forfeiture of proceeds of violations of the Act.

(Sec. 41) Amends the CSA to: (1) eliminate the use of bankruptcy to defeat criminal forfeitures; (2) authorize the enforcement of forfeiture orders in the manner provided for the collection and payment of fines under the code, or in the same manner as a judgment in a civil action; (3) make it unnecessary to seize or restrain property already in U.S. custody for criminal forfeiture purposes; (4) require the court to afford the defendant a prompt post-restraint hearing under specified circumstances and to exempt from such restraint such property as may reasonably be needed by the defendant to pay attorney's fees, necessary cost-of-living expenses, and expenses of maintaining restrained assets pending the entry of judgment in the criminal case; and (5) authorize the court to hold a pretrial hearing under specified circumstances to determine whether the restraining order should be vacated or modified for certain reasons, such as that restrained property would not be subject to forfeiture or that the defendant establishes that assets are needed to retain counsel, subject to specified requirements.