The Biden Administration is proposing that funds from assets like seized superyachts belonging to sanctioned Russian individuals benefit Ukraine. The proposals would extend the timeline to seek forfeitures, too. Plus, they would enable broader enforcement of foreign restraint and penalization orders.
The proposals, sent to Congress for votes, are part of supplemental budget and legislative requests to support Ukraine. In March, U.S. Attorney General Merrick Garland (above) launched Task Force KleptoCapture, which brings together several law-enforcement agencies under Justice Department prosecutors. It enforces sanctions and other economic measures stemming from Russia’s invasion of Ukraine. Since then, the Justice Department has taken hold of funds at nine U.S. financial institutions, plus several yachts. The arrest of Tango is one of a few situations involving seized superyachts globally, the first under a U.S.-issued warrant. Just today, Fiji’s High Court approved an arrest for Amadea as requested by the United States.
Under the proposals, the Justice and Treasury Departments would have a streamlined administrative process for forfeiting seized superyachts, along with other property. “A forfeiture decision would be reviewable in federal court on an expedited basis,” according to a White House fact sheet. Currently, a federal judge must review all government requests for forfeiture and subsequent auctions to recover funds.
Additionally, the proposals call for:
- transferring proceeds to Ukraine. Generally, funds from forfeited assets compensate victims of crimes for which the penalties took place. The funds go toward law enforcement, too. This proposal therefore would require amendments to several statutes.
- expanding the time limit to prosecute violators and seek forfeitures. Currently, the statute of limitations is five years, so the Administration is seeking 10 years.
- allowing “forfeiture of property that Russian oligarchs can use to facilitate the evasion of sanctions,” the Justice Department indicates. Presently, U.S. law allows only forfeiting proceeds of sanctions violations. Additionally, sanctions evasion would fall under racketeering laws.
Notably, the proposals go further than current Congressional legislation. For instance, the House of Representatives passed the Asset Seizure for Ukraine Reconstruction Act last week. It would permit the President to confiscate and sell off property from sanctioned individuals, but for limited purposes.
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