[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 389 Engrossed in House (EH)]
<DOC>
116th CONGRESS
1st Session
H. R. 389
_______________________________________________________________________
AN ACT
To authorize the Secretary of the Treasury to pay rewards under an
asset recovery rewards program to help identify and recover stolen
assets linked to foreign government corruption and the proceeds of such
corruption hidden behind complex financial structures in the United
States and abroad.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
The Act may be cited as the ``Kleptocracy Asset Recovery Rewards
Act''.
SEC. 2. FINDINGS; SENSE OF CONGRESS.
(a) Findings.--Congress finds the following:
(1) The Stolen Asset Recovery Initiative (StAR), a World
Bank and United Nations anti-money-laundering effort, estimates
that between $20 billion to $40 billion has been lost to
developing countries annually through corruption.
(2) In 2014, more than $480 million in corruption proceeds
hidden in bank accounts around the world by former Nigerian
dictator Sani Abacha and his co-conspirators was forfeited
through efforts by the Department of Justice.
(3) In 2010, the Department of Justice established the
Kleptocracy Asset Recovery Initiative, to work in partnership
with Federal law enforcement agencies to forfeit the proceeds
of foreign official corruption and, where appropriate, return
those proceeds to benefit the people harmed by these acts of
corruption and abuse of office.
(4) Of the $20 billion to $40 billion lost by developing
countries annually through corruption, only about $5 billion
has been repatriated in the last 15 years.
(5) Governments weakened by corruption and loss of assets
due to corruption have fewer resources to devote to the fight
against terrorism and fewer resources to devote to building
strong financial, law enforcement, and judicial institutions to
aid in the fight against the financing of terrorism.
(6) The United States has a number of effective programs to
reward individuals who provide valuable information that assist
in the identification, arrest, and conviction of criminal
actors and their associates, as well as seizure and forfeiture
of illicitly derived assets and the proceeds of criminal
activity.
(7) The Internal Revenue Service has the Whistleblower
Program, which pays awards to individuals who provide specific
and credible information to the IRS if the information results
in the collection of taxes, penalties, interest or other
amounts from noncompliant taxpayers.
(8) The Department of State administers rewards programs on
international terrorism, illegal narcotics, and transnational
organized crime with the goal of bringing perpetrators to
justice.
(9) None of these existing rewards programs specifically
provide monetary incentives for identifying and recovering
stolen assets linked solely to foreign government corruption,
as opposed to criminal prosecutions or civil or criminal
forfeitures.
(10) The recovery of stolen assets linked to foreign
government corruption and the proceeds of such corruption may
not always involve a BSA violation or lead to a forfeiture
action. In such cases there would be no ability to pay rewards
under existing Treasury Department authorities.
(11) Foreign government corruption can take many forms but
typically entails government officials stealing,
misappropriating, or illegally diverting assets and funds from
their own government treasuries to enrich their personal wealth
directly through embezzlement or bribes to allow government
resources to be expended in ways that are not transparent and
may not either be necessary or be the result of open
competition. Corruption also includes situations where public
officials take bribes to allow government resources to be
expended in ways which are not transparent and may not be
necessary or the result of open competition. These corrupt
officials often use the United States and international
financial system to hide their stolen assets and the proceeds
of corruption.
(12) The individuals who come forward to expose foreign
governmental corruption and kleptocracy often do so at great
risk to their own safety and that of their immediate family
members and face retaliation from persons who exercise foreign
political or governmental power. Monetary rewards can provide a
necessary incentive to expose such corruption and provide a
financial means to provide for their well-being and avoid
retribution.
(b) Sense of Congress.--It is the sense of Congress that a
Department of the Treasury stolen asset recovery rewards program to
help identify and recover stolen assets linked to foreign government
corruption and the proceeds of such corruption hidden behind complex
financial structures is needed in order to--
(1) intensify the global fight against corruption; and
(2) serve United States efforts to identify and recover
such stolen assets, forfeit proceeds of such corruption, and,
where appropriate and feasible, return the stolen assets or
proceeds thereof to the country harmed by the acts of
corruption.
SEC. 3. IN GENERAL.
(a) Department of the Treasury Kleptocracy Asset Recovery Rewards
Program.--Chapter 97 of title 31, United States Code, is amended by
adding at the end the following:
``Sec. 9706. Department of the Treasury Kleptocracy Asset Recovery
Rewards Program
``(a) Establishment.--
``(1) In general.--There is established in the Department
of the Treasury a program to be known as the `Kleptocracy Asset
Recovery Rewards Program' for the payment of rewards to carry
out the purposes of this section.
``(2) Purpose.--The rewards program shall be designed to
support U.S. Government programs and investigations aimed at
restraining, seizing, forfeiting, or repatriating stolen assets
linked to foreign government corruption and the proceeds of
such corruption.
``(3) Implementation.--The rewards program shall be
administered by, and at the sole discretion of, the Secretary
of the Treasury, in consultation, as appropriate, with the
Secretary of State, the Attorney General, and the heads of such
other departments and agencies as the Secretary may find
appropriate.
``(b) Rewards Authorized.--In the sole discretion of the Secretary
and in consultation, as appropriate, with the heads of other relevant
Federal departments or agencies, the Secretary may pay a reward to any
individual, or to any nonprofit humanitarian organization designated by
such individual, if that individual furnishes information leading to--
``(1) the restraining or seizure of stolen assets in an
account at a U.S. financial institution (including a U.S.
branch of a foreign financial institution), that come within
the United States, or that come within the possession or
control of any United States person;
``(2) the forfeiture of stolen assets in an account at a
U.S. financial institution (including a U.S. branch of a
foreign financial institution), that come within the United
States, or that come within the possession or control of any
United States person; or
``(3) where appropriate, the repatriation of stolen assets
in an account at a U.S. financial institution (including a U.S.
branch of a foreign financial institution), that come within
the United States, or that come within the possession or
control of any United States person.
``(c) Coordination.--
``(1) Procedures.--To ensure that the payment of rewards
pursuant to this section does not duplicate or interfere with
any other payment authorized by the Department of Justice or
other Federal law enforcement agencies for the obtaining of
information or other evidence, the Secretary of the Treasury,
in consultation with the Secretary of State, the Attorney
General, and the heads of such other agencies as the Secretary
may find appropriate, shall establish procedures for the
offering, administration, and payment of rewards under this
section, including procedures for--
``(A) identifying actions with respect to which
rewards will be offered;
``(B) the receipt and analysis of data; and
``(C) the payment of rewards and approval of such
payments.
``(2) Prior approval of the attorney general required.--
Before making a reward under this section in a matter over
which there is Federal criminal jurisdiction, the Secretary of
the Treasury shall obtain the written concurrence of the
Attorney General.
``(d) Payment of Rewards.--
``(1) Authorization of appropriations.--For the purpose of
paying rewards pursuant to this section, there is authorized to
be appropriated--
``(A) $450,000 for fiscal year 2020; and
``(B) for each fiscal year, any amount recovered in
stolen assets described under subsection (b) that the
Secretary determines is necessary to carry out this
program consistent with this section.
``(2) Limitation on annual payments.--Except as provided
under paragraph (3), the total amount of rewards paid pursuant
to this section may not exceed $25 million in any calendar
year.
``(3) Presidential authority.--The President may waive the
limitation under paragraph (2) with respect to a calendar year
if the President provides written notice of such waiver to the
appropriate committees of the Congress at least 30 days before
any payment in excess of such limitation is made pursuant to
this section.
``(4) Payments to be made first from stolen asset
amounts.--In paying any reward under this section, the
Secretary shall, to the extent possible, make such reward
payment--
``(A) first, from appropriated funds authorized
under paragraph (1)(B); and
``(B) second, from appropriated funds authorized
under paragraph (1)(A).
``(e) Limitations.--
``(1) Submission of information.--No award may be made
under this section based on information submitted to the
Secretary unless such information is submitted under penalty of
perjury.
``(2) Maximum amount.--No reward paid under this section
may exceed $5 million, unless the Secretary--
``(A) personally authorizes such greater amount in
writing;
``(B) determines that offer or payment of a reward
of a greater amount is necessary due to the exceptional
nature of the case; and
``(C) notifies the appropriate committees of the
Congress of such determination.
``(3) Approval.--
``(A) In general.--No reward amount may be paid
under this section without the written approval of the
Secretary.
``(B) Delegation.--The Secretary may not delegate
the approval required under subparagraph (A) to anyone
other than an Under Secretary of the Department of the
Treasury.
``(4) Protection measures.--If the Secretary determines
that the identity of the recipient of a reward or of the
members of the recipient's immediate family must be protected,
the Secretary shall take such measures in connection with the
payment of the reward as the Secretary considers necessary to
effect such protection.
``(5) Forms of reward payment.--The Secretary may make a
reward under this section in the form of a monetary payment.
``(f) Ineligibility, Reduction in, or Denial of Reward.--
``(1) Officer and employees.--An officer or employee of any
entity of Federal, State, or local government or of a foreign
government who, while in the performance of official duties,
furnishes information described under subsection (b) shall not
be eligible for a reward under this section.
``(2) Participating individuals.--If the claim for a reward
is brought by an individual who the Secretary has a reasonable
basis to believe knowingly planned, initiated, directly
participated in, or facilitated the actions that led to assets
of a foreign state or governmental entity being stolen,
misappropriated, or illegally diverted or to the payment of
bribes or other foreign governmental corruption, the Secretary
shall appropriately reduce, and may deny, such award. If such
individual is convicted of criminal conduct arising from the
role described in the preceding sentence, the Secretary shall
deny or may seek to recover any reward, as the case may be.
``(g) Report.--
``(1) In general.--Within 180 days of the enactment of this
section, and annually thereafter for 5 years, the Secretary
shall issue a report to the appropriate committees of the
Congress--
``(A) detailing to the greatest extent possible the
amount, location, and ownership or beneficial ownership
of any stolen assets that, on or after the date of the
enactment of this section, come within the United
States or that come within the possession or control of
any United States person;
``(B) discussing efforts being undertaken to
identify more such stolen assets and their owners or
beneficial owners; and
``(C) including a discussion of the interactions of
the Department of the Treasury with the international
financial institutions (as defined in section
1701(c)(2) of the International Financial Institutions
Act) to identify the amount, location, and ownership,
or beneficial ownership, of stolen assets held in
financial institutions outside the United States.
``(2) Exception for ongoing investigations.--The report
issued under paragraph (1) shall not include information
related to ongoing investigations.
``(h) Definitions.--For purposes of this section:
``(1) Appropriate committees of the congress.--The term
`appropriate committees of the Congress' means the Committee on
Financial Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the Senate.
``(2) Financial asset.--The term `financial asset' means
any funds, investments, or ownership interests, as defined by
the Secretary, that on or after the date of the enactment of
this section come within the United States or that come within
the possession or control of any United States person.
``(3) Foreign government corruption.--The term `foreign
government corruption' includes bribery of a foreign public
official, or the misappropriation, theft, or embezzlement of
public funds or property by or for the benefit of a foreign
public official.
``(4) Foreign public official.--The term `foreign public
official' includes any person who occupies a public office by
virtue of having been elected, appointed, or employed,
including any military, civilian, special, honorary, temporary,
or uncompensated official.
``(5) Immediate family member.--The term `immediate family
member', with respect to an individual, has the meaning given
the term `member of the immediate family' under section 36(k)
of the State Department Basic Authorities Act of 1956 (22
U.S.C. 2708(k)).
``(6) Rewards program.--The term `rewards program' means
the program established in subsection (a)(1) of this section.
``(7) Secretary.--The term `Secretary' means the Secretary
of the Treasury.
``(8) Stolen assets.--The term `stolen assets' means
financial assets within the jurisdiction of the United States,
constituting, derived from, or traceable to, any proceeds
obtained directly or indirectly from foreign government
corruption.''.
(b) Report on Disposition of Recovered Assets.--Within 360 days of
the enactment of this Act, the Secretary of the Treasury shall issue a
report to the appropriate committees of Congress (as defined under
section 9706(h) of title 31, United States Code) describing policy
choices and recommendations for disposition of stolen assets recovered
pursuant to section 9706 of title 31, United States Code.
(c) Table of Contents Amendment.--The table of contents for chapter
97 of title 31, United States Code, is amended by adding at the end the
following:
``9706. Department of the Treasury Kleptocracy Asset Recovery Rewards
Program.''.
Passed the House of Representatives May 14, 2019.
Attest:
Clerk.
116th CONGRESS
1st Session
H. R. 389
_______________________________________________________________________
AN ACT
To authorize the Secretary of the Treasury to pay rewards under an
asset recovery rewards program to help identify and recover stolen
assets linked to foreign government corruption and the proceeds of such
corruption hidden behind complex financial structures in the United
States and abroad.