Types of Violations Triggering Forfeitures

Asset forfeiture is a powerful legal tool used by the federal government to seize property involved in or derived from criminal activity. While many associate forfeiture strictly with drug trafficking, the scope of “forfeitable offenses” in the United States is incredibly broad, encompassing everything from white-collar banking fraud to environmental violations.

The most commonly used forfeiture statutes can be classified by their function:

• 18 U.S.C. § 981 – Primary statute for Civil Asset Forfeiture.
• 18 U.S.C. § 982 – Primary statute for Criminal Asset Forfeiture.
• 18 U.S.C. § 1956(c)(7) – The “Laundry List” of Specified Unlawful Activities (SUA).
• 28 U.S.C. § 2461 – Allows criminal forfeiture for any act where civil forfeiture is authorized.

Money Laundering & Catch-All Forfeiture Statutes

These statutes serve as the “catch-all” for federal forfeiture, as they allow the government to seize property involved in laundering the proceeds of almost any other major crime (referred to as “Specified Unlawful Activity”).

• 18 U.S.C. § 981: Civil forfeiture for property used to facilitate, or proceeds of violations of, the money laundering and transmitting statutes.
• 18 U.S.C. § 1956: Financial transactions involving the proceeds of “specified unlawful activity” (the primary money laundering statute).
• 18 U.S.C. § 1957: Engaging in monetary transactions with the proceeds of federal crimes (specifically those exceeding $10,000).
• 18 U.S.C. § 1960: Forfeiture relating to the unlicensed operation of a money transmittal business. [*]

Incorporated Offenses via Section 1956

Under the money laundering umbrella, the government can seize assets related to a vast array of “Specified Unlawful Activities,” including but not limited to:

• 18 U.S.C. § 152: Bankruptcy fraud, concealment of assets, and false oaths.
• 18 U.S.C. § 215: Corruptly giving or receiving a commission or gift for procuring a loan.
• 18 U.S.C. §§ 500–503: Counterfeiting or forging money orders, postage stamps, or postmarking stamps.
• 18 U.S.C. § 513: Making, possessing, or passing forged securities.
• 18 U.S.C. § 656–657: Theft or embezzlement by bank officers or employees.
• 18 U.S.C. § 1201 & 1203: Kidnapping and hostage taking.
• 18 U.S.C. § 1708: Theft or receipt of stolen mail.
• 18 U.S.C. § 2113: Bank robbery.
• 18 U.S.C. § 2114: Robbery of a postal worker or person in control of U.S. property.

Currency Transaction Reporting Violations

Forfeiture is often triggered even if the money was legally earned, if the reporting requirements were intentionally bypassed. The following violations involve the failure to properly document the movement of large sums of cash:

• 31 U.S.C. § 5313 & § 5317: Failure to file reports for domestic monetary transactions (such as bank deposits exceeding $10,000).
• 31 U.S.C. § 5316 & § 5317: Violating reporting requirements for the physical importation and exportation of monetary instruments (e.g., carrying more than $10,000 across the border without declaration).
• 31 U.S.C. § 5324 & § 5317: Structuring Transactions. This is the act of breaking up a single large transaction into smaller increments (under $10,000) specifically to evade reporting requirements.
• 31 U.S.C. § 5332: Bulk Cash Smuggling. Forfeiture for attempting to smuggle large amounts of currency into or out of the United States.
• 31 U.S.C. § 5321: Civil penalties associated with Monetary Transaction Reports.

Alphabetical List of Forfeiture Provisions Listed by Primary Offense

Under federal law, specifically 18 U.S.C. § 981 (civil) and 18 U.S.C. § 982 (criminal), the government can seize assets linked to “Specified Unlawful Activities” (SUA). We added this alphabetical guide to the primary offenses that can trigger federal forfeiture.

• Agriculture & Animals
  • Federal authorities can seize assets related to the violation of agricultural quotas and marketing orders (7 U.S.C. § 608) or violations of the Federal Seed Act. Additionally, property involved in violations of the Animal Welfare Act (7 U.S.C. § 2156) is subject to seizure.
• Aircraft, Airports & Automobiles
  • Aviation: Destruction of aircraft, violence at international airports, and aircraft piracy are all high-level triggering offenses.
  • Vehicles: Forfeiture is commonly applied to vehicles used to transport illegal aliens (8 U.S.C. § 1324) or those involved in “chop shop” operations, such as altering VIN numbers (18 U.S.C. § 511). It also applies to carjacking and the interstate transportation of stolen vehicles.
• Banking & Financial Crimes
  • Banking offenses are among the most common triggers for civil forfeiture, including:
    • Theft & Embezzlement: Misapplication of funds by bank officers or employees.
    • Fraud: Bank fraud (18 U.S.C. § 1344), false statements to loan officers, and credit card/access device fraud.
    • Money Laundering: Under 18 U.S.C. § 1956 and § 1957, any property involved in laundering the proceeds of a “specified unlawful activity” is subject to forfeiture.
    • Reporting Violations: Failing to report domestic currency transactions or “structuring” deposits to avoid the $10,000 reporting threshold (31 U.S.C. § 5324).
• Copyright, Trademark & Counterfeiting
  • The government aggressively pursues the forfeiture of equipment and proceeds related to:
    • Intellectual Property: Trafficking in counterfeit labels, computer programs, or unauthorized recordings of live performances.
    • Counterfeit Currency: Forging U.S. or foreign obligations, securities, or postage stamps. This includes the forfeiture of the counterfeit money itself and the plates/tools used to create it.
• Customs & Smuggling
  • Any goods smuggled into the U.S. contrary to law, or the conveyances (ships, planes, trucks) used to move them, are subject to forfeiture, including;
    • Entry of goods via false statements or false classifications.Exportation of arms or munitions of war without proper licensing.
    • Violations of the Trading With the Enemy Act.
• Drug Offenses
  • Perhaps the most well-known area of forfeiture law, 21 U.S.C. § 881 allows for the civil forfeiture of:
    • Controlled substances.
    • Raw materials and equipment used to manufacture drugs.
    • Vehicles, boats, or planes used to facilitate drug transactions.
    • “Real property” (land/buildings) used to commit or facilitate a drug felony.
•  Environmental Crimes (Polluting)
  • Federal forfeiture acts as a deterrent for felony violations of environmental protection laws, including:
    • Federal Water Pollution Control Act: Significant pollution of U.S. waterways.
    • Safe Drinking Water Act: Violations that threaten public water supplies.
    • Ocean Dumping & Ship Pollution: Illegal disposal of waste in the ocean or felony violations of the Act to Prevent Pollution from Ships.
• Espionage & Terrorism
  • Offenses against national security carry heavy forfeiture penalties, including:
    • Gathering or transmitting national defense information (18 U.S.C. § 793).
    • Providing material support to terrorists or foreign terrorist organizations.
    • Financing terrorism or receiving military-style training from a terrorist group.
• Explosives & Firearms
  • Explosives: Importing or dealing in explosives without a license.
  • Firearms: Unlawful importation of firearms and the forfeiture of machine guns or “destructive devices” under the National Firearms Act (26 U.S.C. § 5872).
• Fraud & Corruption
  • A wide net of fraud-related crimes trigger forfeiture:
    • Mail and Wire Fraud: Using the postal service or electronic communications to carry out a scheme to defraud.
    • Identity Theft: Forfeiture of proceeds from identity theft and related fraud.
    • Government Fraud: Major fraud against the United States or bribery concerning programs receiving federal funds.
• Gambling & RICO
  • Gambling: Forfeiture of property and money used in illegal gambling businesses (18 U.S.C. § 1955).
  • RICO: Under the Racketeer Influenced and Corrupt Organizations Act, the government can seek the forfeiture of a defendant’s entire interest in an enterprise used for racketeering.
• Slavery, Human Trafficking & Sexual Exploitation
  • The federal government uses forfeiture to dismantle the financial incentives behind human rights violations, including:
    • Trafficking & Forced Labor: Property involved in peonage, slavery, involuntary servitude, or forced labor (18 U.S.C. §§ 1581–1592).
    • Sexual Exploitation of Children: Forfeiture of assets related to the production, sale, or transportation of child pornography.
    • Prostitution & Sex Trafficking: Assets linked to the interstate transportation of persons for prostitution or the sex trafficking of children.
•  Smuggling & Trade Violations
  • Beyond standard customs issues, forfeiture applies to:
    • Aviation & Maritime Smuggling: Using aircraft or vessels to smuggle goods or persons into the U.S.
    • Arms Exportation: The illegal export of munitions of war or defense articles.
    • International Economic Emergency Powers Act (IEEPA): Property involved in violating presidential orders regarding international trade sanctions.
•  Theft & Stolen Property
  • Forfeiture is a standard penalty for crimes involving the movement of stolen goods, including:
    • Bank & Postal Robbery: Money or property obtained through the robbery of a financial institution or a U.S. postal worker.
    • Interstate Transportation: Moving stolen securities, money, or goods valued over $5,000 across state lines.
    • Theft of Public Money: Embezzlement or theft of government property or funds from agencies receiving federal assistance.
•  Violent Crimes
  • Forfeiture is not limited to financial crimes; it also extends to violent acts, particularly when they involve property destruction or threats:
    • Murder for Hire: Assets involved in or derived from a murder-for-hire plot.
    • Kidnapping & Hostage Taking: Property linked to the transmission of ransom demands or the facilitation of kidnapping.
    • Property Destruction: The destruction of government property by fire or explosives, or violence against maritime navigation and fixed platforms.
•  War, National Defense & Terrorism
  • The government may seize assets tied to threats against the state, such as:
    • Biological & Chemical Weapons: Prohibitions regarding the production or possession of biological agents, variola virus (smallpox), or chemical weapons.
    • Nuclear Materials: Illegal transactions or possession of nuclear weapons or materials.
    • Foreign Corrupt Practices Act (FCPA): Felony violations involving the bribery of foreign officials to obtain or retain business.
•  Welfare & Public Assistance
  • Forfeiture is utilized to combat the abuse of social safety nets:
    • Food Stamp Fraud: Felony-level illegal transactions involving food stamps (typically exceeding $5,000).
    • Welfare Payments: Unlawful payments or loans involving employee welfare or pension benefit plans.

Common Offenses Triggering Forfeiture Proceedings

Civil asset forfeiture actions are related to various violations including:

• 18 U.S.C. § 1956 (Money laundering), and conspiracy to commit the foregoing offenses in violation of 18 U.S.C. §§ 371, 1349, and 1956(h).
  • 18 U.S.C. § 1956(a)(1)(A)(i) makes it a crime to conduct or attempt to conduct a financial transaction, knowing that the property involved in the
  • transaction represents the proceeds of some form of unlawful activity, and which in fact involves the proceeds of specified unlawful activity, with the intent to promote the carrying on of specified unlawful
    activity. This offense is sometimes referred to as promotional money laundering.
  • 18 U.S.C. § 1956(a)(1)(B)(i) makes it a crime to conduct or attempt to conduct a financial transaction, knowing that the property involved in the transaction represents the proceeds of some form of unlawful activity, and which in fact involves the proceeds of specified unlawful activity, knowing that the transaction is designed in whole or in part to conceal or disguise the nature, the location, the source, the ownership, or the control of the proceeds of specified unlawful activity. This offense is sometimes referred to as concealment money laundering.
  • The term “specified unlawful activity” is defined in 18 U.S.C. §§ 1956(c)(7) and 1961(1).
  • 18 U.S.C. § 1956(h) criminalizes a conspiracy to violate § 1956.
• 18 U.S.C. §1957 (Money laundering transactional)
  • engaging in monetary transactions greater than $10,000 in property derived from specified unlawful activity.
• 18 U.S.C. § 1028 (Identity theft)
  • 18 U.S.C. § 1028(a)(1) makes it a crime, inter alia, to knowingly and without lawful authority produce an identification document, authentication feature, or a false identification document.
  • 18 U.S.C. § 1028(a)(7) makes it a crime, inter alia, to knowingly transfer, possess, or use, without lawful authority, a means of identification of another person with the intent to commit, or to aid or abet, or in connection with, any unlawful activity that constitutes a violation of Federal law.
  • The term “means of identification” is defined in 18 U.S.C. § 1028(d)(7) and includes, inter alia, name, social security number, date of birth, official State or government issued driver’s license or identification number, alien registration number, government passport number, employer or taxpayer identification number.
• 18 U.S.C. § 1030 (Computer fraud and abuse)
  • 18 U.S.C. § 1030(a)(2)(C) makes it a crime, inter alia, to intentionally access a computer without authorization and thereby obtain information from any protected computer.
  • 18 U.S.C. § 1030(a)(4) makes it a crime, inter alia, to knowingly and with intent to defraud, access a protected computer without authorization, and by means of such conduct further the intended fraud and obtain anything of value.
  • The term “protected computer” is defined in 18 U.S.C. § 1030(e)(2) and includes, inter alia, a computer used in or affecting interstate or foreign commerce or communication, including a computer located outside the United States that is used in a manner that affects interstate or foreign commerce or communication of the United States.
  • In Van Buren v. United States, 141 S. Ct. 1648, 1652 (2021), the court defined protected computer under 18
    U.S.C. § 1030(e)(2)(B) to include “at a minimum . . . all computers that connect to the Internet”).
  • 18 U.S.C. § 371 prohibits a conspiracy to commit an offense or to defraud the United States, including violations of 18 U.S.C. § 1028(a)(7) and 1030(a)(2).
• 18 U.S.C. § 1343 (Wire fraud)
  • 18 U.S.C. § 1343 makes it a crime for anyone, having devised or intending to devise any scheme or artifice to defraud, or for obtaining money or property by means of false or fraudulent pretenses, representations, or promises, to transmit or cause to be transmitted by means of wire, radio, or television communication in interstate or foreign commerce, any writings, signs, signals, pictures, or sounds for the purpose of executing such scheme or artifice.
  • 18 U.S.C. § 1349 prohibits the attempt or conspiracy of a violation of 18 U.S.C. § 1343.

If you carry $10,000 or more in bulk cash into or out of the United States, you must filed a FinCEN105 Form. If you fail to make the proper report, the U.S. Currency might be seized for one of the following violations:

• 31 United States Code (“U.S.C.”) §§ 5332(a), (c) – Concealed Bulk Cash/Importation;
• 31 U.S.C. §§ 5317(c)(2), 5316(a)(1)(B) – Failure/Inaccurate Report of Over $10,000 into the United States; or
• 31 U.S.C. §§ 5317(c)(2), 5316(a)(1)(A) – Facilitating Failure/Inaccurate Report of Over $10,000 into the United States.

Seizures of bulk cash are common at international airports and other ports of entry into the United States.