What is administrative forfeiture and when is it used?

• A. A judicial process requiring court action
• B. A non-judicial forfeiture process where certain assets are forfeited under statute without court action, subject to notice and rights to contest
• C. A voluntary surrender by owner
• D. Only applicable to real property

Answer: (B)

Administrative forfeiture is a non-judicial process allowed by statute that lets an agency forfeit assets without going to court, while giving notice to the owner or other interested parties and a chance to contest. This path is used to move assets tied to criminal activity quickly when the statute authorizes it and there isn’t a need for a full judicial proceeding to establish ownership. If no one contests within the designated period, the property is forfeited administratively; if someone does contest, the matter can proceed in court.

This approach contrasts with typical court-based forfeiture, which requires a judicial action, and it isn’t simply a voluntary surrender by the owner. It also isn’t limited to real property—administrative forfeiture can apply to various assets, whereas real property often requires a court process.