[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 389 Reported in House (RH)]

<DOC>





                                                  Union Calendar No. 38
116th CONGRESS
  1st Session
                                H. R. 389

                          [Report No. 116-60]

  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.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 9, 2019

    Mr. Lynch (for himself, Mr. Cohen, and Mr. Budd) introduced the 
   following bill; which was referred to the Committee on Financial 
                                Services

                              May 14, 2019

     Additional sponsors: Miss Rice of New York and Mr. Fitzpatrick

                              May 14, 2019

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
[For text of introduced bill, see copy of bill as introduced on January 
                                9, 2019]


_______________________________________________________________________

                                 A BILL


 
  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 $450,000 for fiscal year 2020.
            ``(2) Limitation on annual payments.--Except as provided 
        under paragraph (3), the total amount of rewards paid pursuant 
        to this section may not exceed $25,000,000 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) Payment from stolen asset amounts.--In paying any 
        reward under this section with respect to information furnished 
        by an individual, the Secretary shall, to the extent possible, 
        make such payments using the stolen assets recovered based on 
        such information before using appropriated funds authorized 
        under paragraph (1).
    ``(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 $5,000,000, 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.''.
                                                  Union Calendar No. 38

116th CONGRESS

  1st Session

                               H. R. 389

                          [Report No. 116-60]

_______________________________________________________________________

                                 A BILL

  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.

_______________________________________________________________________

                              May 14, 2019

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed