International seizure and forfeiture are an important and integral aspect of IRS Criminal Investigation’s asset forfeiture program. This section will discuss the procedures used to conduct international seizures and forfeitures and the methods used to obtain information and cooperation from other countries.

See IRM 9.1.2.7, Authority to Seize Property for Forfeiture, for the delegated authority relating to IRM 9.7.10, International Seizures and Forfeitures.

The Director, Asset Recovery and Investigative Services is responsible for developing, maintaining, and overseeing this IRM and ensuring compliance with current policies and procedures.

The Director, Asset Recovery and Investigative Services will:

The Director, Asset Recovery and Investigative Services will oversee this program, ensuring employee compliance to given instruction, and review all IRS documents that pertain to this IRM for procedural, operational, and editorial changes.

The following table lists the acronyms and terms used throughout this IRM section and their definitions:

Department of Justice, Money Laundering and Asset Recovery Section, Asset Forfeiture Policy Manual.

IRM 9.4.2, Sources of Information.

IRM 9.4.4, Requests for Information.

IRM 9.7.4, Pre-Seizure Planning.

IRM 9.11.2, Domestic and Foreign Travel.

The first step in any seizure action is to identify the asset(s) to be seized and to properly plan the seizure. Pre-seizure planning is one of the most important steps in the seizure process. As with any other seizure action, it is vitally important to determine both the benefits and the detriments of a potential seizure before it is affected.

For international seizures and forfeitures, considerations must be given to the laws of the country where the property is located, as well as the proper methods to obtain information from that country. Once a determination is made regarding the potential to seize an asset, the Asset Forfeiture Coordinator (AFC) must be contacted to discuss the matter. A primary investigation (PI) or subject criminal investigation (SCI) with approved seizure investigative activity should be opened, once it is apparent a seizure action might take place.

The AFC will begin the pre-seizure planning stage, ensure that the criteria for a successful seizure are met, and assist with other steps required.

After the AFC, the next point of contact for all international investigative matters, including possible seizure and forfeiture, must be the CI Country Attaché for the country where the asset is located. Follow the procedures outlined in IRM 9.4.4.4, Information from Foreign Countries, to obtain information on the international assistance process.

Prior to initiating a seizure of an asset located in another country, proper planning, engaging, with the correct points of contact, and following established procedures is necessary to ensure existing treaties and/or another country’s laws are not violated. Detailed information can be found in IRM 9.7.4, Pre-Seizure Planning.

When considering an international seizure, agents must contact the Attaché covering the country where the asset to be seized is located. A listing of all attachés and their countries of responsibility can be found on the International Operations SharePoint site.

Before making an international seizure, the extent of the cooperation from the country where the subject assets are located must be determined. An agent must submit a request for information or assistance from a foreign country per IRM 9.4.4, Requests for Information. The Assistant United States Attorney (AUSA) assigned to the investigation should also contact OIA and MLARS.

All international seizure and/or forfeiture actions must be first approved, and then coordinated, by OIA. The exception to this would be situations where the defendant cooperates with the government and voluntarily repatriates the asset that is located abroad.

The method used to affect a seizure and/or forfeiture will depend on whether the defendant agrees to cooperate, by way of a plea agreement or other arrangement.

There are two types of forfeiture actions initiated by the U.S. against assets with international considerations: the forfeiture and recovery of assets located abroad under U.S. law and the forfeiture of assets located in the U.S. under foreign law. Both types involve taking legal action pursuant to the laws of the U.S.

If a plea agreement or other arrangement can be utilized to allow for repatriation of the asset(s), without involving the foreign government, those arrangement can, and should, be made. If coordination with the other country is necessary, one of the five methods described in subsection 9.7.10.3 must be utilized.

The proper legal tool to use will depend on the type of agreement that exists between the U.S. and the country where the asset is located. This activity must be arranged through OIA.

Once it is determined to secure assets located abroad, actions should take place quickly to “freeze or seize” the property. This will require coordination with the local AUSA and OIA, to prepare an MLAT request.

Following submission of the MLAT request, OIA will continue to monitor the progress of the request with the foreign government. OIA will contact the special agent or the AUSA for supplemental information, if needed.

Section 319(b) of the USA PATRIOT Act is codified in 31 USC 5318(k), and it authorizes the Attorney General and the Secretary of the Treasury to issue subpoenas to foreign banks that maintain accounts with correspondent accounts in the U.S. If the foreign bank fails to either provide the requested records or initiate proceedings to contest it, the domestic financial institution shall terminate its correspondent relationship with that foreign bank not later than ten business days after receipt of written notice from the Secretary or the Attorney General. Failure to terminate the correspondent relationship shall render the financial institution liable for a civil penalty of up to $10,000 per day until the relationship is terminated.

18 USC 981(k) authorizes the U.S., in a civil forfeiture action, to restrain, seize, and forfeit funds deposited into an account at a foreign financial institution by restraining, seizing, and forfeiting an equivalent amount of funds from a correspondent or interbank account held in the U.S. by the foreign financial institution where the funds are deposited.

Approval authority to use 18 USC 981(k) rests with the Chief of MLARS, in consultation with appropriate OIA, Department of the Treasury, and Department of the State officials. MLARS is responsible for coordinating the approval process and must approve the use of this provision in writing. MLARS will grant this approval only in extraordinary cases.