[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 402 Introduced in House (IH)]
<DOC>
117th CONGRESS
1st Session
H. R. 402
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 HOUSE OF REPRESENTATIVES
January 21, 2021
Mr. Keating (for himself and Mr. Fitzpatrick) introduced the following
bill; which was referred to the Committee on Foreign Affairs
_______________________________________________________________________
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. Statement of policy.
Sec. 5. Anti-Corruption Action Fund.
Sec. 6. Interagency Anti-Corruption Task Force.
Sec. 7. Designation of embassy anti-corruption points of contact.
Sec. 8. 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, weakens democratic governance, feeds
terrorist recruitment and transnational organized crime,
enables drug smuggling and human trafficking, and stymies
economic growth.
(3) Illicit financial flows often penetrate countries
through what appear 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 the Russian Federation is a leading
model of this type of kleptocratic system, using state-
sanctioned corruption to both erode democratic governance from
within and discredit democracy abroad, thereby strengthening
the authoritarian rule of Vladimir Putin.
(5) Corrupt individuals and entities in the Russian
Federation, often with the backing and encouragement of
political leadership, use stolen money--
(A) to purchase key assets in other countries,
often with a goal of attaining monopolistic control of
a sector;
(B) to gain access to and influence the policies of
other countries; and
(C) to advance Russian interests in other
countries, particularly those that undermine confidence
and trust in democratic systems.
(6) Systemic corruption in the People's Republic of China,
often tied to, directed by, or backed by the leadership of the
Chinese Communist Party and the Chinese Government is used--
(A) to provide unfair advantage to certain People's
Republic of China economic entities;
(B) to increase other countries' economic
dependence on the People's Republic of China to secure
greater deference to the People's Republic of China's
diplomatic and strategic goals; and
(C) to exploit corruption in foreign governments
and among other political elites to enable People's
Republic of China state-backed firms to pursue
predatory and exploitative economic practices.
(7) Thwarting these tactics by Russian, Chinese, and other
kleptocratic actors requires the international community to
strengthen democratic governance and the rule of law.
International cooperation in combating corruption and illicit
finance is vital to such efforts, especially by empowering
reformers in foreign countries during historic political
openings for the establishment of the rule of law in those
countries.
(8) Technical assistance programs that combat corruption
and strengthen the rule of law, including through assistance
provided by the Department of State's Bureau of International
Narcotics and Law Enforcement Affairs and the United States
Agency for International Development, and through programs like
the Department of Justice's Office of Overseas Prosecutorial
Development, Assistance and Training and the International
Criminal Investigative Training Assistance Program, can have
lasting and significant impacts for both foreign and United
States interests.
(9) There currently exist numerous international
instruments to combat corruption, kleptocracy, and illicit
finance, including--
(A) the Inter-American Convention against
Corruption of the Organization of American States, done
at Caracas March 29, 1996;
(B) the Convention on Combating Bribery of Foreign
Public Officials in International Business Transactions
of the Organisation of Economic Co-operation and
Development, done at Paris December 21, 1997 (commonly
referred to as the ``Anti-Bribery Convention'');
(C) the United Nations Convention against
Transnational Organized Crime, done at New York
November 15, 2000;
(D) the United Nations Convention against
Corruption, done at New York October 31, 2003;
(E) Recommendation of the Council for Further
Combating Bribery of Foreign Public Officials in
International Business Transactions, adopted November
26, 2009; and
(F) recommendations of the Financial Action Task
Force comprising the International Standards on
Combating Money Laundering and the Financing of
Terrorism and Proliferation.
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 the Judiciary of the Senate;
(E) the Committee on Foreign Affairs of the House
of Representatives;
(F) the Committee on Financial Services of the
House of Representatives;
(G) the Committee on Ways and Means of the House of
Representatives; and
(H) the Committee on the Judiciary 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''
includes the unlawful exercise of entrusted public power for
private gain, such as through bribery, nepotism, fraud,
extortion, 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. 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 international instruments to combat
corruption, kleptocracy, and illicit finance, including
instruments referred to in section 2(9), and other relevant
international standards and best practices, as such standards
and practices develop; and
(B) to promote the adoption and implementation of such
laws, 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 to penetrate their financial
systems;
(5) to help foreign partner countries to investigate,
prosecute, adjudicate, and more generally combat the use of
corruption by malign actors, including authoritarian
governments, particularly the Government of the Russian
Federation and the Government of the People's Republic of
China, 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, and the United Nations Convention
against Transnational Organized Crime, done at New York
November 15, 2000;
(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)) and section
7031(c) of the Department of State, Foreign Operations, and
Related Programs Appropriations Act, 2020 (division G of Public
Law 116-94), to identify and take action against corrupt
foreign actors;
(8) to ensure coordination between relevant Federal
departments and agencies 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. 5. ANTI-CORRUPTION ACTION FUND.
(a) Establishment.--There is established in the United States
Treasury a fund, to be known as the ``Anti-Corruption Action Fund'',
only for the purposes of--
(1) strengthening the capacity of foreign states to prevent
and fight public corruption;
(2) assisting foreign states to develop rule of law-based
governance structures, including accountable civilian police,
prosecutorial, and judicial institutions;
(3) supporting foreign states to strengthen domestic legal
and regulatory frameworks to combat public corruption,
including the adoption of best practices under international
law; and
(4) supplementing existing foreign assistance and diplomacy
with respect to efforts described in paragraphs (1), (2), and
(3).
(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 only for the purposes
described in subsection (a), without fiscal year limitation or
need for subsequent appropriation.
(3) Limitation.--None of the amounts made available to the
Secretary of State from the Anti-Corruption Action Fund may be
used inside the United States, except for administrative costs
related to overseas program implementation pursuant to
subsection (a).
(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 anti-
corruption activities.
(d) Allocation and Prioritization.--In programming foreign
assistance made available through the Anti-Corruption Action Fund, the
Secretary of State, in coordination with the Attorney General, shall
prioritize projects that--
(1) assist countries that are undergoing historic
opportunities for democratic transition, combating corruption,
and the establishment of the rule of law; and
(2) are important to United States national interests.
(e) Technical Assistance Providers.--For any technical assistance
to a foreign governmental party under this section, the Secretary of
State, in coordination with the Attorney General, shall prioritize
United States Government technical assistance providers as
implementers, in particular the Office of Overseas Prosecutorial
Development, Assistance and Training and the International Criminal
Investigative Training Assistance Program at the Department of Justice.
(f) 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.
(g) Reporting.--Not later than 1 year after the date of the
enactment of this Act and not less frequently than annually thereafter,
the Secretary of State shall submit a report to the appropriate
congressional committees that contains--
(1) the balance of the funding remaining in the Anti-
Corruption Action Fund;
(2) the amount of funds that have been deposited into the
Anti-Corruption Action Fund; and
(3) a summary of the obligation and expenditure of such
funds.
(h) Notification Requirements.--None of the amounts made available
to the Secretary of State from the Anti-Corruption Action Fund pursuant
to this section shall be available for obligation, or for transfer to
other departments, agencies, or entities, unless the Secretary of State
notifies the Committee on Foreign Relations of the Senate, the
Committee on Appropriations of the Senate, the Committee on Foreign
Affairs of the House of Representatives, and the Committee on
Appropriations of the House of Representatives, not later than 15 days
in advance of such obligation or transfer.
SEC. 6. INTERAGENCY ANTI-CORRUPTION TASK FORCE.
(a) In General.--The Secretary of State, in cooperation with the
Interagency Anti-Corruption 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 Anti-Corruption Task Force.--Not later than 180
days after the date of the enactment of this Act, the Secretary of
State shall establish and convene the Interagency Anti-Corruption Task
Force (referred to in this section as the ``Task Force''), which shall
be composed of 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.
(c) Additional Meetings.--The Task Force shall meet not less
frequently than twice per year.
(d) Duties.--The Task Force 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.
(e) Briefing Requirement.--Not later than 1 year after the date of
the enactment of this Act and not less frequently than annually
thereafter through the end of fiscal year 2026, the Secretary of State
shall provide a briefing to the appropriate congressional committees
regarding the ongoing work of the Task Force. Each briefing shall
include the participation of a representative of each of the
departments and agencies described in subsection (b), to the extent
feasible.
SEC. 7. 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 Anti-Corruption Task Force established pursuant to
section 6(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
countries of responsibility that aligns with United States
diplomatic engagement; and
(3) ensure that anti-corruption activities carried out
within their respective countries of responsibility are
included in regular reporting to the Secretary of State and the
Interagency Anti-Corruption 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. 8. REPORTING REQUIREMENTS.
(a) Report or Briefing on Progress Toward Implementation.--Not
later than 180 days 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, the Attorney General, and the Secretary of
the Treasury, shall submit a report or provide a briefing to the
appropriate congressional committees that summarizes progress made in
combating public corruption and in implementing this Act, including--
(1) identifying opportunities and priorities for outreach
with respect to promoting the adoption and implementation of
relevant international law and standards in combating public
corruption, kleptocracy, and illicit finance;
(2) 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 public corruption, kleptocracy,
and illicit finance; and
(B) how such offices coordinate their efforts with
each other and with other relevant Federal departments
and agencies;
(3) providing a description of how the provisions under
subsections (d) and (e) of section 5 have been applied to each
project funded by the Anti-Corruption Action Fund;
(4) providing an explanation as to why a United States
Government technical assistance provider was not used if
technical assistance to a foreign governmental entity is not
implemented by a United States Government technical assistance
provider;
(5) describing the activities of the Interagency Anti-
Corruption Task Force established pursuant to section 6(b);
(6) identifying--
(A) the designated anti-corruption points of
contact for foreign states; and
(B) any training provided to such points of
contact; and
(7) recommending additional measures that would enhance the
ability of the United States Government to combat public
corruption, kleptocracy, and illicit finance overseas.
(b) Online Platform.--The Secretary of State, in conjunction with
the Administrator of the United States Agency for International
Development, should consolidate existing reports 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, as appropriate, 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.
<all>