[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 3881 Introduced in Senate (IS)]

111th CONGRESS
  2d Session
                                S. 3881

 To require the Secretary of State to identify individuals responsible 
   for the detention, abuse, or death of Sergei Magnitsky or for the 
  conspiracy to defraud the Russian Federation of taxes on corporate 
profits through fraudulent transactions and lawsuits against Hermitage, 
and to impose a visa ban and certain financial measures with respect to 
     such individuals, until the Russian Federation has thoroughly 
  investigated the death of Sergei Magnitsky and brought the Russian 
   criminal justice system into compliance with international legal 
                   standards, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 29, 2010

Mr. Cardin (for himself and Mr. McCain) introduced the following bill; 
  which was read twice and referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
 To require the Secretary of State to identify individuals responsible 
   for the detention, abuse, or death of Sergei Magnitsky or for the 
  conspiracy to defraud the Russian Federation of taxes on corporate 
profits through fraudulent transactions and lawsuits against Hermitage, 
and to impose a visa ban and certain financial measures with respect to 
     such individuals, until the Russian Federation has thoroughly 
  investigated the death of Sergei Magnitsky and brought the Russian 
   criminal justice system into compliance with international legal 
                   standards, 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 TITLE.

    This Act may be cited as the ``Justice for Sergei Magnitsky Act of 
2010''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) The United States supports the people of the Russian 
        Federation in their efforts to realize their full economic 
        potential and to advance democracy, human rights, and the rule 
        of law.
            (2) The Russian Federation--
                    (A) is a member of the United Nations, the 
                Organization for Security and Cooperation in Europe, 
                and the International Monetary Fund;
                    (B) has ratified the Convention against Torture and 
                Other Cruel, Inhuman or Degrading Treatment or 
                Punishment, the International Covenant on Civil and 
                Political Rights, the International Covenant on 
                Economic, Social and Cultural Rights, and the United 
                Nations Convention against Corruption; and
                    (C) is bound by the legal obligations set forth in 
                the European Convention on Human Rights.
            (3) States voluntarily commit themselves to respect 
        obligations and responsibilities through the adoption of 
        international agreements and treaties, which must be observed 
        in good faith in order to maintain the stability of the 
        international order. Human rights are an integral part of 
        international law, and lie at the foundation of the 
        international order. The protection of human rights, therefore, 
        particularly in the case of a country that has incurred 
        obligations to protect human rights under an international 
        agreement to which it is a party, is not left exclusively to 
        the internal affairs of that country.
            (4) Good governance and anti-corruption measures are 
        instrumental in the protection of human rights and in achieving 
        sustainable economic growth, which benefits both the people of 
        the Russian Federation and the international community through 
        the creation of open and transparent markets.
            (5) Systemic corruption erodes trust and confidence in 
        democratic institutions, the rule of law, and human rights 
        protections. This is the case when public officials are allowed 
        to abuse their authority with impunity for political or 
        financial gains in collusion with private entities.
            (6) The President of the Russian Federation, Dmitry 
        Medvedev, has addressed corruption in many public speeches, 
        including stating in his 2009 address to Russia's Federal 
        Assembly, ``[Z]ero tolerance of corruption should become part 
        of our national culture. . . . In Russia we often say that 
        there are few cases in which corrupt officials are prosecuted. 
        . . . [S]imply incarcerating a few will not resolve the 
        problem. But incarcerated they must be.''. President Medvedev 
        went on to say, ``We shall overcome underdevelopment and 
        corruption because we are a strong and free people, and deserve 
        a normal life in a modern, prosperous democratic society.''. 
        Furthermore, President Medvedev has acknowledged Russia's 
        disregard for the rule of law and used the term ``legal 
        nihilism'' to describe a criminal justice system that continues 
        to imprison innocent people.
            (7) The systematic abuse of Sergei Magnitsky, including his 
        repressive arrest and torture in custody by the same officers 
        of the Ministry of the Interior of the Russian Federation that 
        Mr. Magnitsky had implicated in the embezzlement of funds from 
        the Russian Treasury and the misappropriation of 3 companies 
        from his client, Hermitage, reflects how deeply the protection 
        of human rights is affected by corruption.
            (8) The denial by all state bodies of the Russian 
        Federation of any justice or legal remedies to Mr. Magnitsky 
        during the nearly 12 full months he was kept without trial in 
        detention, and the impunity of state officials he testified 
        against for their involvement in corruption and the carrying 
        out of his repressive persecution since his death, shows the 
        politically motivated nature of the persecution of Mr. 
        Magnitsky.
            (9) Mr. Magnitsky died on November 16, 2009, at the age of 
        37, in Matrosskaya Tishina Prison in Moscow, Russia, and is 
        survived by a mother, a wife, and 2 sons.
            (10) There is extensive evidence that public officials from 
        the Ministry of the Interior of the Russian Federation, the 
        Russian federal tax authorities, the Prosecutor General's 
        Office of the Russian Federation, and the Russian Federal 
        Security Service, as well as regional courts and the prison 
        system of the Russian Federation, have abused their powers and 
        positions to commit serious human rights violations, embezzled 
        funds from the Russian Treasury, and retaliated against 
        whistleblowers.
            (11) While he was in detention, Sergei Magnitsky called 
        himself a hostage of officials who misappropriated companies 
        from his client, the Hermitage Fund, and embezzled funds from 
        the Russian Treasury. He said that his criminal prosecution, 
        arrest, and detention were organized as a retribution by police 
        officers who had the full knowledge of his innocence.
            (12) The Public Oversight Commission of the City of Moscow 
        for the Control of the Observance of Human Rights in Places of 
        Forced Detention, an organization empowered by Russian law to 
        independently monitor prison conditions, concluded, ``A man who 
        is kept in custody and is being detained is not capable of 
        using all the necessary means to protect either his life or his 
        health. This is a responsibility of a state which holds him 
        captive. Therefore, the case of Sergei Magnitsky can be 
        described as a breach of the right to life. The members of the 
        civic supervisory commission have reached the conclusion that 
        Magnitsky had been experiencing both psychological and physical 
        pressure in custody, and the conditions in some of the wards of 
        Butyrka can be justifiably called torturous. The people 
        responsible for this must be punished.''.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Admitted; alien; spouse.--The terms ``admitted'', 
        ``alien'', and ``spouse'' have the meanings given those terms 
        in section 101(a) of the Immigration and Nationality Act (8 
        U.S.C. 1101(a)).
            (2) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                    (A) the Committee on Foreign Affairs and the 
                Committee on Financial Services of the House of 
                Representatives; and
                    (B) the Committee on Foreign Relations and the 
                Committee on Banking, Housing, and Urban Affairs of the 
                Senate.
            (3) Financial institution; domestic financial agency; 
        domestic financial institution.--The terms ``financial 
        institution'', ``domestic financial agency'', and ``domestic 
        financial institution'' have the meanings given those terms in 
        section 5312 of title 31, United States Code.
            (4) Parent.--The term ``parent'' has the meaning given that 
        term in section 101(b) of the Immigration and Nationality Act 
        (8 U.S.C. 1101(b)).
            (5) United states person.--The term ``United States 
        person'' means--
                    (A) a United States citizen or an alien lawfully 
                admitted for permanent residence to the United States; 
                or
                    (B) an entity organized under the laws of the 
                United States or of any jurisdiction within the United 
                States, including a foreign branch of such an entity.

SEC. 4. IDENTIFICATION OF INDIVIDUALS RESPONSIBLE FOR THE DETENTION, 
              ABUSE, AND DEATH OF SERGEI MAGNITSKY AND FOR THE 
              CONSPIRACY TO DEFRAUD THE RUSSIAN FEDERATION OF TAXES ON 
              CERTAIN CORPORATE PROFITS.

    (a) In General.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of State, in consultation with the 
Secretary of the Treasury, shall publish a list of each individual the 
Secretary has reason to believe--
            (1) is responsible for the detention, abuse, or death of 
        Sergei Magnitsky;
            (2) conspired to defraud the Russian Federation of taxes on 
        corporate profits through fraudulent transactions and lawsuits 
        against the foreign investment company known as Hermitage and 
        to misappropriate entities owned or controlled by Hermitage; or
            (3) participated in efforts to conceal the detention, 
        abuse, or death of Sergei Magnitsky described in paragraph (1) 
        or the existence of the conspiracy described in paragraph (2).
    (b) Updates.--The Secretary of State shall update the list required 
by subsection (a) as new information becomes available.
    (c) Notice.--The Secretary of State shall, to the maximum extent 
practicable, provide notice and an opportunity for a hearing to an 
individual before the individual is placed on the list required by 
subsection (a).

SEC. 5. INADMISSIBILITY OF CERTAIN INDIVIDUALS.

    (a) Ineligibility for Visas.--An alien is ineligible to receive a 
visa to enter the United States and ineligible to be admitted to the 
United States if the alien--
            (1) is an individual on the list required by section 4(a); 
        or
            (2) is the spouse, son, daughter, or parent of an 
        individual on that list.
    (b) Current Visas Revoked.--The Secretary of State shall revoke, in 
accordance with section 221(i) of the Immigration and Nationality Act 
(8 U.S.C. 1201(i)), the visa or other documentation of any alien who 
would be ineligible to receive such a visa or documentation under 
subsection (a).
    (c) Waiver for National Interests.--The Secretary of State may 
waive the application of subsection (a) or (b) in the case of an alien 
if the Secretary determines that such a waiver is in the national 
interests of the United States. Upon granting such a waiver, the 
Secretary shall provide to the appropriate congressional committees 
notice of, and a justification for, the waiver.

SEC. 6. FINANCIAL MEASURES.

    (a) Special Measures.--The Secretary of the Treasury shall instruct 
domestic financial institutions and domestic financial agencies to take 
1 or more special measures described in section 5318A(b) of title 31, 
United States Code, if the Secretary of the Treasury makes a 
determination under section 5318A of such title with respect to money 
laundering relating to the conspiracy described in section 4(a)(2).
    (b) Freezing of Assets.--The Secretary of the Treasury shall freeze 
and prohibit all transactions in all property and interests in property 
of an individual that are in the United States, that come within the 
United States, or that are or come within the possession or control of 
a United States person if the individual--
            (1) is on the list required by section 4(a); or
            (2) acts as an agent of or on behalf of an individual on 
        the list in a matter relating to an act described in paragraph 
        (1), (2), or (3) of section 4(a).
    (c) Waiver for National Interests.--The Secretary of the Treasury 
may waive the application of subsection (a) or (b) if the Secretary 
determines that such a waiver is in the national interests of the 
United States. Upon granting such a waiver, the Secretary shall provide 
to the appropriate congressional committees notice of, and a 
justification for, the waiver.
    (d) Regulatory Authority.--The Secretary of the Treasury shall 
issue such regulations, licenses, and orders as are necessary to carry 
out this section.
    (e) Enforcement.--A person that violates, attempts to violate, 
conspires to violate, or causes a violation of this section or any 
regulation, license, or order issued to carry out this section shall be 
subject to the penalties set forth in subsections (b) and (c) of 
section 206 of the International Emergency Economic Powers Act (50 
U.S.C. 1705) to the same extent as a person that commits an unlawful 
act described in subsection (a) of such section.

SEC. 7. REPORT TO CONGRESS.

    (a) In General.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of State and the Secretary of the 
Treasury shall submit to the appropriate congressional committees a 
report on the actions taken to carry out this Act.
    (b) Updates.--The Secretary of State and the Secretary of the 
Treasury shall submit an updated version of the report required by 
subsection (a) as new information becomes available.

SEC. 8. EFFECTIVE DATE.

    This Act shall take effect on the date that is 90 days after the 
date of the enactment of this Act.

SEC. 9. TERMINATION.

    The provisions of this Act shall cease to be effective on the date 
on which the Secretary of State and the Secretary of the Treasury 
certify to the appropriate congressional committees that--
            (1) the Government of the Russian Federation has conducted 
        a thorough and impartial investigation into--
                    (A) the detention, abuse, and resulting death in 
                custody of Sergei Magnitsky; and
                    (B) the conspiracy (described in section 4(a)(2)) 
                to defraud the Russian Federation of taxes on corporate 
                profits and to misappropriate entities owned or 
                controlled by Hermitage;
            (2) the investigation described in paragraph (1) was 
        properly conducted, transparent, and free of political 
        influence;
            (3) the individuals responsible for the detention, abuse, 
        or resulting death of Sergei Magnitsky or for the conspiracy 
        referred to in paragraph (1)(B) have been brought to justice 
        according to the laws of the Russian Federation and pursuant to 
        the international legal obligations of the Russian Federation; 
        and
            (4) the Government of the Russian Federation--
                    (A) has taken significant steps to bring the 
                criminal justice system and penal system of the Russian 
                Federation into compliance with applicable 
                international legal standards;
                    (B) has substantially strengthened statutory 
                protections for individuals who disclose evidence of 
                illegal government activities; and
                    (C) has recognized the contribution of Sergei 
                Magnitsky to the fight against corruption and for the 
                rule of law.
                                 <all>