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Investing.com -- As part of a continuing review by the U.S. Department of Justice, attorney general Eric Holder placed new limits on a controversial civil asset forfeiture program on Tuesday.

Under the new Justice Department policy, federal prosecutors must develop clear evidence that a crime has occurred before an account can be seized. The new directives issued on Tuesday will restrict authorities from seizing assets for "structuring offenses," involving bank deposits.

Structuring occurs when a person attempts to avoid federal and state bank reporting requirements by making numerous deposits under a $10,000 threshold, in lieu of a single, larger deposit. The new policy prevents the government from seizing structured funds unless there is compelling evidence that the actions were undertaken to hide other criminal activity. Furthermore, Holder indicated that the policy changes will restrict the government's ability to seize bank deposits to only the most nefarious illegal banking transactions.

"With this new policy, the Department of Justice is taking action to ensure that we are allocating our resources to address the most serious offenses," Attorney General Holder said. "Appropriate use of asset forfeiture law allows the Justice Department to safeguard the integrity, security and stability of our nation's financial system while protecting the civil liberties of all Americans. And as we continue our comprehensive review of the Asset Forfeiture Program, we will stay focused on deterring criminal activity, assisting victims of wrongdoing and defending the rights of our citizens."

The review comes in response to the release of several investigative reports condemning the longstanding program, launched in 1984 when Congress passed the comprehensive Crime Control Act. Last year, a Washington Post investigation found that police nationwide seized approximately $2.5 billion from more than 60,000 Americans over the last 15 years. In addition, a comprehensive study by the Institute for Justice determined the Internal Revenue Service (IRS) used the program to seize nearly $250 million involving 2,500 cases in between 2005 and 2012.

In approximately one-third of the cases, according to the Institute for Justice, the accounts were seized in the absence of any allegations that criminal activity had occurred. The program previously gave authorities the discretion to seize the accounts of small business owners solely on the suspicion of structuring.

Last year, the U.S. Marshals Service managed $2.2 billion in seized assets and distributed $1.9 billion to victims of criminal activity, according to a fact sheet on its web site.

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Eric Holder announces new restrictions to asset forfeiture program