DOJ Outlines Legislative Proposals to Strengthen Kleptocracy Asset Recovery Efforts

In a Fact Sheet, the DOJ outlined proposed legislation to add resources and capabilities "to isolate and target the crimes of Russian officials, government-aligned elites, and those who aid or conceal their unlawful conduct."

The President's "legislative proposals in support of kleptocracy asset recovery" would:

• enable the DOJ, Treasury and the Department of State to work together to return forfeited Kleptocrat funds to Ukraine;

• expand the scope of forfeiture under the International Emergency Economic Powers Act ("IEEPA") to include property used to facilitate the violations of sanctions;

• broaden the definition of "racketeering activity" in the Racketeer Influenced and Corrupt Organizations Act ("RICO") to include sanctions evasion and export control violations;

• extend the statute of limitations for prosecuting sanctions violations and the statute of limitations for seeking forfeitures based on those offenses from 5 years to 10 years; and

• build upon existing laws to improve the ability of the United States to facilitate enforcement of foreign restraint and forfeiture orders for criminal property and improve the ability to take these actions in the United States in support of international efforts to forfeit criminal property.

Since U.S. Attorney General Merrick Garland's launch of "Task Force KleptoCapture" in March (see previous coverage), the DOJ and international partners worked jointly to seize a $90 million yacht held by a Russian oligarch and roughly $625,000 from other individuals and entities whose assets were held at nine U.S. financial institutions (see previous coverage).