NEW YORK, May 31: The US Justice Department has begun seizing what they term “ill-gotten” money hidden by criminals in banks overseas, according to newspapers.

The justice department’s use of the sweeping Patriot Act has created tensions with the State Department, which has raised concerns over the practice, in part because most of the seizures have involved fraud and money laundering investigations unrelated to terrorism.

According to the New York Times, the Justice department has seized at least 15 foreign-based bank accounts in the United States in recent months.

So far no Pakistani bank has been affected by the operation.

US officials acknowledge the diplomatic problems that can be created by seizing money from foreign banks. They say they have sought to use the new power sparingly after considering all other legal options.

Officials also see the measure as a potentially powerful tool in seizing money from drug traffickers. In a case that resulted in a guilty plea in a federal court this week, authorities claimed seizing 310,000 dollars from four banks in New York City area that held correspondent accounts with foreign banks in Oman, India and Taiwan.