Innocent foundations beware: the US Government’s far-reaching power of civil asset forfeiture, and what innocent foundations and other fiduciaries need to know to prepare

Abstract

With the recent acquittal of former Credit Suisse executive Raoul Weil exposing cracks in the US Government’s prosecution of offshore tax offences, the US authorities may increasingly look for simpler alternatives. Civil asset forfeiture actions are a far-reaching option for the Government to seize property—including property located overseas—linked to or derived from alleged tax-related offences. Recent cases suggest that the US Government is already turning to civil asset forfeiture actions as part of its offshore enforcement strategy. Prudent foreign foundations and other fiduciary structures should be aware of the civil asset forfeiture laws in the USA and plan accordingly.