[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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