[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3026 Introduced in Senate (IS)]
<DOC>
116th CONGRESS
1st Session
S. 3026
To promote international efforts in combating corruption, kleptocracy,
and illicit finance by foreign officials and other foreign persons,
including through a new anti-corruption action fund, and for other
purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
December 11, 2019
Mr. Cardin (for himself and Mr. Wicker) introduced the following bill;
which was read twice and referred to the Committee on Foreign Relations
_______________________________________________________________________
A BILL
To promote international efforts in combating corruption, kleptocracy,
and illicit finance by foreign officials and other foreign persons,
including through a new anti-corruption action fund, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLES; TABLE OF CONTENTS.
(a) Short Titles.--This Act may be cited as the ``Countering
Russian and Other Overseas Kleptocracy Act'' or the ``CROOK Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short titles; table of contents.
Sec. 2. Findings.
Sec. 3. Definitions.
Sec. 4. Sense of Congress regarding international standards.
Sec. 5. Statement of policy.
Sec. 6. Anti-Corruption Action Fund.
Sec. 7. Interagency Task Force.
Sec. 8. Designation of embassy anti-corruption points of contact.
Sec. 9. Reporting requirements.
SEC. 2. FINDINGS.
Congress finds the following:
(1) Authoritarian leaders in foreign countries abuse their
power to steal assets from state institutions, enrich
themselves at the expense of their countries' economic
development, and use corruption as a strategic tool both to
solidify their grip on power and to undermine democratic
institutions abroad.
(2) Global corruption harms the competitiveness of United
States businesses, feeds terrorist recruitment and
transnational organized crime, enables drug smuggling and human
trafficking, and stymies economic growth.
(3) Illicit financial flows often inconspicuously penetrate
a country through what appears to be legitimate financial
transactions, as kleptocrats launder money, use shell
companies, amass offshore wealth, and participate in a global
shadow economy.
(4) The government of Vladimir Putin in Russia is the
leading model of this type of foreign kleptocratic system,
using corruption to erode democratic governance from within and
discrediting democracy abroad, thereby strengthening his
authoritarian rule.
(5) Russia uses stolen money--
(A) to purchase key assets in other countries,
particularly with a goal of attaining monopolistic
control of a sector;
(B) to gain access to and influence the policies of
democratic countries; and
(C) to directly fund political parties and
organizations that advance Russian interests in other
countries, particularly those that undermine confidence
and trust in democratic systems.
(6) Thwarting these tactics by Russia and other
kleptocratic governments requires the international community
to strengthen democratic governance, the rule of law, and
international cooperation in combating illicit finance,
especially by empowering reformers in foreign countries during
historic political openings for the establishment of the rule
of law in those countries.
(7) New reformers in foreign countries must act quickly to
seize political openings for anti-corruption reform. Since such
reformers are often outsiders with little government
experience, they may need significant technical assistance to
root out deep-seated corruption.
SEC. 3. DEFINITIONS.
In this Act:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Foreign Relations of the
Senate;
(B) the Committee on Banking, Housing, and Urban
Affairs of the Senate;
(C) the Committee on Finance of the Senate;
(D) the Committee on Foreign Affairs of the House
of Representatives;
(E) the Committee on Financial Services of the
House of Representatives; and
(F) the Committee on Ways and Means of the House of
Representatives.
(2) Foreign assistance.--The term ``foreign assistance''
means foreign assistance authorized under the Foreign
Assistance Act of 1961 (22 U.S.C. 2251 et seq.).
(3) Foreign state.--The term ``foreign state'' has the
meaning given such term in section 1603(a) of title 28, United
States Code.
(4) Intelligence community.--The term ``intelligence
community'' has the meaning given such term in section 3(4) of
the National Security Act of 1947 (50 U.S.C. 3003(4)).
(5) Public corruption.--The term ``public corruption''
means the unlawful exercise of entrusted public power for
private gain, including by bribery, nepotism, fraud, or
embezzlement.
(6) Rule of law.--The term ``rule of law'' means the
principle of governance in which all persons, institutions, and
entities, whether public or private, including the state, are
accountable to laws that are--
(A) publicly promulgated;
(B) equally enforced;
(C) independently adjudicated; and
(D) consistent with international human rights
norms and standards.
SEC. 4. SENSE OF CONGRESS REGARDING INTERNATIONAL STANDARDS.
It is the sense of Congress that the foundation for foreign states
to fight corruption, kleptocracy, and illicit finance includes--
(1) the United Nations Convention against Corruption, done
at New York October 31, 2003;
(2) recommendations of the Financial Action Task Force
comprising the International Standards on Combating Money
Laundering and the Financing of Terrorism & Proliferation;
(3)(A) the Convention on Combating Bribery of Foreign
Public Officials in International Business Transactions of the
Organisation for Economic Co-operation and Development, done at
Paris December 17, 1997 (commonly referred to as the ``Anti-
Bribery Convention'');
(B) the Recommendation of the Council for Further Combating
Bribery of Foreign Public Officials in International Business
Transactions, adopted November 26, 2009;
(C) the Recommendation of the Council on the Tax
Deductibility of Bribes to Foreign Public Officials, adopted on
April 11, 1996; and
(D) other related instruments;
(4) legal instruments adopted by the Council of Europe and
monitored by the Group of States against Corruption,
including--
(A) the Criminal Law Convention on Corruption, done
at Strasbourg January 27, 1999;
(B) the Civil Law Convention on Corruption, done at
Strasbourg, November 4, 1999;
(C) the Additional Protocol to the Criminal Law
Convention on Corruption, done at Strasbourg May 15,
2003;
(D) the Twenty Guiding Principles for the Fight
against Corruption, done at Strasbourg November 6,
1997;
(E) the Recommendation on Codes of Conduct for
Public Officials, done at Strasbourg May 11, 2000; and
(F) the Recommendation on Common Rules against
Corruption in the Funding of Political Parties and
Electoral Campaigns, done at Strasbourg April 8, 2003;
(5) Second Dimension commitments of the Organization for
Security and Cooperation in Europe regarding good governance,
anti-corruption, anti-money laundering, and related issues; and
(6) the Inter-American Convention Against Corruption of the
Organization of American States, done at Caracas March 29,
1996.
SEC. 5. STATEMENT OF POLICY.
It is the policy of the United States--
(1) to leverage United States diplomatic engagement and
foreign assistance to promote the rule of law;
(2)(A) to promote the international standards referred to
in section 4 and other relevant international standards and
best practices, as such standards and practices develop; and
(B) to seek the universal adoption and implementation of
such standards and practices by foreign states;
(3) to support foreign states in promoting good governance
and combating public corruption;
(4) to encourage and assist foreign partner countries to
identify and close loopholes in their legal and financial
architecture, including the misuse of anonymous shell
companies, free trade zones, and other legal structures, that
are enabling illicit finance and authoritarian capital to
penetrate their financial systems;
(5) to help foreign partner countries to investigate and
combat the use of corruption by authoritarian governments,
particularly the government of Vladimir Putin in Russia, as a
tool of malign influence worldwide;
(6) to assist in the recovery of kleptocracy-related stolen
assets for victims, including through the use of appropriate
bilateral arrangements and international agreements, such as
the United Nations Convention against Corruption, done at New
York October 31, 2003;
(7) to use sanctions authorities, such as the Global
Magnitsky Human Rights Accountability Act (subtitle F of title
XII of the National Defense Authorization Act for Fiscal Year
2017 (Public Law 114-328; 22 U.S.C. 2656 note)), to identify
and take action against corrupt foreign actors;
(8) to ensure coordination between departments and agencies
of the United States Government with jurisdiction over the
advancement of good governance in foreign states; and
(9) to lead the creation of a formal grouping of like-
minded states--
(A) to coordinate efforts to counter corruption,
kleptocracy, and illicit finance; and
(B) to strengthen collective financial defense.
SEC. 6. ANTI-CORRUPTION ACTION FUND.
(a) Establishment.--There is established in the United States
Treasury a trust fund, to be known as the ``Anti-Corruption Action
Fund'', for the purpose of aiding foreign states--
(1) to prevent and fight public corruption;
(2) to develop rule of law-based governance structures,
including accountable investigation, prosecutorial, and
judicial bodies; and
(3) to supplement existing foreign assistance and diplomacy
with respect to efforts described in paragraphs (1) and (2).
(b) Funding.--
(1) Transfers.--Beginning on or after the date of the
enactment of this Act, if total criminal fines and penalties in
excess of $50,000,000 are imposed against a person under the
Foreign Corrupt Practices Act of 1977 (Public Law 95-213) or
section 13, 30A, or 32 of the Securities Exchange Act of 1934
(15 U.S.C. 78m, 78dd-1, and 78ff), whether pursuant to a
criminal prosecution, enforcement proceeding, deferred
prosecution agreement, nonprosecution agreement, a declination
to prosecute or enforce, or any other resolution, the court (in
the case of a conviction) or the Attorney General shall impose
an additional prevention payment equal to $5,000,000 against
such person, which shall be deposited in the Anti-Corruption
Action Fund established under subsection (a).
(2) Availability of funds.--Amounts deposited into the
Anti-Corruption Action Fund pursuant to paragraph (1) shall be
available to the Secretary of State, without fiscal year
limitation or need for subsequent appropriation, for the
purposes set forth in this section.
(c) Support.--The Anti-Corruption Action Fund--
(1) may support governmental and nongovernmental parties in
advancing the purposes described in subsection (a); and
(2) shall be allocated in a manner complementary to
existing United States foreign assistance, diplomacy, and the
anti-corruption activities of other international donors.
(d) Preference.--In deciding how funding from the Anti-Corruption
Action Fund will be allocated, the Secretary of State shall give
preference to projects that--
(1) assist countries that are undergoing historic
opportunities for democratic transition, combating corruption,
and the establishment of the rule of law;
(2) are important to United States national interests; and
(3) could significantly increase the chance of a successful
transition described in paragraph (1).
(e) Public Diplomacy.--The Secretary of State shall announce that
funds deposited in the Anti-Corruption Action Fund are derived from
actions brought under the Foreign Corrupt Practices Act to demonstrate
that the use of such funds are--
(1) contributing to international anti-corruption work; and
(2) reducing the pressure that United States businesses
face to pay bribes overseas, thereby contributing to greater
competitiveness of United States companies.
SEC. 7. INTERAGENCY TASK FORCE.
(a) In General.--The Secretary of State, in cooperation with the
Interagency Task Force established pursuant to subsection (b), shall
manage a whole-of-government effort to improve coordination among
Federal departments and agencies and donor organizations with a role
in--
(1) promoting good governance in foreign states; and
(2) enhancing the ability of foreign states to combat
public corruption.
(b) Interagency Task Force.--Not later than 180 days after the date
of the enactment of this Act, the Secretary of State shall establish
and convene an Interagency Task Force composed of--
(1) representatives appointed by the President from
appropriate departments and agencies, including the Department
of State, the United States Agency for International
Development, the Department of Justice, the Department of the
Treasury, the Department of Homeland Security, the Department
of Defense, the Department of Commerce, the Millennium
Challenge Corporation, and the intelligence community; and
(2) representatives appointed by the Secretary of State
from any Federal department or agency not referred to in
paragraph (1).
(c) Additional Meetings.--The Interagency Task Force established
pursuant to subsection (b) shall meet not less frequently than twice
per year.
(d) Duties.--The Interagency Task Force established pursuant to
subsection (b) shall--
(1) evaluate, on a general basis, the effectiveness of
existing foreign assistance programs, including programs funded
by the Anti-Corruption Action Fund, that have an impact on--
(A) promoting good governance in foreign states;
and
(B) enhancing the ability of foreign states to
combat public corruption;
(2) assist the Secretary of State in managing the whole-of-
government effort described in subsection (a);
(3) identify general areas in which such whole-of-
government effort could be enhanced; and
(4) recommend specific programs for foreign states that may
be used to enhance such whole-of-government effort.
SEC. 8. DESIGNATION OF EMBASSY ANTI-CORRUPTION POINTS OF CONTACT.
(a) Embassy Anti-Corruption Point of Contact.--The chief of mission
of each United States embassy shall designate an anti-corruption point
of contact for each such embassy.
(b) Duties.--The designated anti-corruption points of contact
designated pursuant to subsection (a) shall--
(1) coordinate, in accordance with guidance from the
Interagency Task Force established pursuant to section 7(b), an
interagency approach within United States embassies to combat
public corruption in the foreign states in which such embassies
are located that is tailored to the needs of such foreign
states, including all relevant Federal departments and agencies
with a presence in such foreign states, such as the Department
of State, the United States Agency for International
Development, the Department of Justice, the Department of the
Treasury, the Department of Homeland Security, the Department
of Defense, the Millennium Challenge Corporation, and the
intelligence community;
(2) make recommendations regarding the use of the Anti-
Corruption Action Fund and other foreign assistance funding
related to anti-corruption efforts in their respective foreign
states that aligns with United States diplomatic engagement;
and
(3) ensure that anti-corruption activities carried out
within their respective foreign states are included in regular
reporting to the Secretary of State and the Interagency Task
Force, including United States embassy strategic planning
documents and foreign assistance-related reporting, as
appropriate.
(c) Training.--The Secretary of State shall develop and implement
appropriate training for the designated anti-corruption points of
contact.
SEC. 9. REPORTING REQUIREMENTS.
(a) Report on Promoting International Standards in Combating
Corruption, Kleptocracy, and Illicit Finance.--Not later than 180 days
after the date of the enactment of this Act, the Secretary of State, in
consultation with the Administrator of the United States Agency for
International Development and the Secretary of the Treasury, shall
submit a report to the appropriate congressional committees that--
(1) summarizes any progress made by foreign states to adopt
and implement each of the international standards in combating
corruption, kleptocracy, and illicit finance referred to in
section 4;
(2) details the efforts of the United States Government to
promote such international standards;
(3) identifies priority countries for outreach regarding
such international standards; and
(4) outlines a plan to encourage the adoption and
implementation of such international standards, including
specific steps to take with the priority countries identified
pursuant to paragraph (3).
(b) Report or Briefing on Progress Toward Implementation.--Not
later than 1 year after the date of the enactment of this Act, and
annually thereafter for the following 3 years, the Secretary of State,
in consultation with the Administrator of the United States Agency for
International Development, shall submit a report or provide a briefing
to the appropriate congressional committees that summarizes progress
made in implementing this Act, including--
(1) describing--
(A) the bureaucratic structure of the offices
within the Department of State and the United States
Agency for International Development that are engaged
in activities to combat corruption, kleptocracy, and
illicit finance; and
(B) how such offices coordinate their efforts;
(2) identifying--
(A) the amount of funds that have been deposited
into the Anti-Corruption Action Fund; and
(B) the obligation, expenditure, and impact of such
funds;
(3) describing the activities of the Interagency Task Force
established pursuant to section 7(b);
(4) identifying--
(A) the designated anti-corruption points of
contact for foreign states; and
(B) any training provided to such points of
contact; and
(5) recommending additional resources or personnel that
would enhance the ability of the Secretary to combat
corruption, kleptocracy, and illicit finance overseas.
(c) Online Platform.--The Secretary of State, in conjunction with
the Administrator of the United States Agency for International
Development, shall consolidate existing reports and briefings with
anti-corruption components into a single online, public platform, that
includes--
(1) the Annual Country Reports on Human Rights Practices
required under section 116 of the Foreign Assistance Act of
1961 (22 U.S.C. 2151n);
(2) the Fiscal Transparency Report required under section
7031(b) of the Department of State, Foreign Operations and
Related Programs Appropriations Act, 2019 (division F of Public
Law 116-6);
(3) the Investment Climate Statement reports;
(4) the International Narcotics Control Strategy Report;
(5) any other relevant public reports; and
(6) links to third-party indicators and compliance
mechanisms used by the United States Government to inform
policy and programming, such as--
(A) the International Finance Corporation's Doing
Business surveys;
(B) the International Budget Partnership's Open
Budget Index; and
(C) multilateral peer review anti-corruption
compliance mechanisms, such as--
(i) the Organisation for Economic Co-
operation and Development's Working Group on
Bribery in International Business Transactions;
(ii) the Follow-Up Mechanism for the Inter-
American Convention Against Corruption; and
(iii) the United Nations Convention Against
Corruption, done at New York October 31, 2003.
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