[House Report 116-60]
[From the U.S. Government Publishing Office]
116th Congress } { Report
HOUSE OF REPRESENTATIVES
1st Session } { 116-60
======================================================================
KLEPTOCRACY ASSET RECOVERY REWARDS ACT
_______
May 14, 2019.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Ms. Maxine Waters of California, from the Committee on Financial
Services, submitted the following
R E P O R T
[To accompany H.R. 389]
[Including cost estimate of the Congressional Budget Office]
The Committee on Financial Services, to whom was referred
the bill (H.R. 389) 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,
having considered the same, report favorably thereon with an
amendment and recommend that the bill as amended do pass.
CONTENTS
Page
Purpose and Summary.............................................. 5
Background and Need for Legislation.............................. 5
Section-by-Section Analysis...................................... 6
Hearings......................................................... 7
Committee Consideration.......................................... 8
Committee Votes.................................................. 8
Statement of Oversight Findings and Recommendations of the
Committee...................................................... 8
Statement of Performance Goals and Objectives.................... 8
New Budget Authority and CBO Cost Estimate....................... 8
Committee Cost Estimate.......................................... 10
Unfunded Mandate Statement....................................... 10
Advisory Committee............................................... 10
Application of Law to the Legislative Branch..................... 10
Earmark Statement................................................ 10
Duplication of Federal Programs.................................. 10
Changes to Existing Law.......................................... 11
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
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.''.
Purpose and Summary
H.R. 389, the Kleptocracy Asset Recovery Rewards Act, would
establish a program within the U.S. Department of the Treasury
to provide monetary incentives to individuals furnishing
information leading to the restraining, seizure, forfeiture, or
repatriation of stolen assets linked to foreign government
corruption. H.R. 389 also provides for the administration of
the program, including reward payment and eligibility.
Background and Need for Legislation
According to World Bank data, more than $1 trillion in
bribes are paid worldwide every year.\1\ This corruption has a
significant impact on developing countries, with estimates as
high as $40 billion per year stolen by public officials.\2\
Addressing such corruption and its cross-border impact has
become an increasing focus of the international community.
---------------------------------------------------------------------------
\1\Global Cost of Corruption at Least 5% of World GDP. United
Nations, September 2018. https://www.un.org/press/en/2018/
sc13493.doc.htm.
\2\Few and Far: The Hard Facts on Stolen Asset Recovery, United
Nations Office on Drugs and Crime, The World Bank, September 2014.
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The United Nations Convention Against Corruption (``the
Convention''),\3\ ratified by the United States on October 30,
2006, introduces a comprehensive set of standards that its 140
signatories and 186 Parties apply to strengthen domestic and
international anticorruption regimes. Significantly, this
multilateral agreement includes a chapter on asset recovery,
aimed at completing the legal steps necessary to turn
identified proceeds of crime into confiscated property and
ultimately into assets that are recovered and returned to prior
legitimate owners. Member states maintain confiscated property
as custodians for those from whom the property was stolen.
Further, the Convention is bolstered by bilateral and
multilateral agreements to facilitate the recovery process,
whether through Mutual Legal Assistance Treaties or other
agreements made on a case-by-case basis pursuant to the of the
Convention. Within the bounds of this anticorruption regime,
countries that are part of the regimes (both the countries
requesting and providing requested stolen asset recovery
assistance) can determine the disposition of the recovered
property and the parameters for allowing the government that is
the custodian of the confiscated stolen property to keep a
portion of the proceeds for administrative costs and other
purposes.
---------------------------------------------------------------------------
\3\UNGA Res. A/58/422 (Oct. 31, 2003), entered into force Dec. 14,
2005.
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To assist in recovering these proceeds of crime for victims
and to punish the bad acts of the criminals, H.R. 389
establishes a rewards program to incentivize individuals to
notify the U.S. government of stolen assets linked to foreign
corruption that are found in the U.S. or within U.S. financial
institutions, or held or controlled by U.S. persons. Rewards
are paid with funds from the recovered stolen assets.
On March 13, 2019, Mr. Dennis Lormel, a retired FBI agent
who co-founded that agency's Terror Financing Operations
Section, said in his written testimony at a Subcommittee
hearing that H.R. 389 would ``serve as a viable tool for law
enforcement to develop evidence for prosecution, as well as
identify, recover and repatriate stolen funds to victim
countries.''\4\ The FACT Coalition, a non-partisan alliance of
more than 100 state, national, and international organizations
promoting anti-corruption practices, wrote that rewards program
``is a sensible tool to safeguard American citizens and
businesses from the scourge of corruption.''\5\
---------------------------------------------------------------------------
\4\Testimony of Dennis M. Lormel, House Financial Services
Committee, Marsh 13, 2019. https://financialservices.house.gov/
calendar/eventsingle.aspx?EventID=402387.
\5\Letter to HFSC Chair, Ranking Member, and Members of the House
Financial Services Committee, March 13, 2019.
---------------------------------------------------------------------------
Section-by-Section Analysis
Section 1. Short title
This section states that the title of the bill is the
Kleptocracy Asset Recovery Rewards Act.
Section 2. Findings; sense of Congress
Subsection (a) lays out a series of findings describing,
among other things, U.S. and international efforts to recover
the proceeds of foreign official corruption and, where
appropriate return those proceeds to benefit the people harmed
by the acts of corruption; how countries weakened by corruption
often have fewer resources to fight corruption; how the U.S.
Government has a number of rewards programs, but does not
include specifically providing monetary incentives for
identifying and recovering stolen assets linked solely to
foreign government corruption; and how monetary rewards can
provide necessary incentives to expose such corruption and
provide a financial means to individuals who come forward with
information on such corruption to provide for their well-being
and avoid retribution.
Subsection (b) states the sense of Congress that a
Department of Treasury stolen asset recovery rewards program to
help identify and recover stolen assets linked to foreign
government corruption is needed.
Section 3. In general
Subsection (a) amends title 31, United States Code, by
adding a new section 9706 at the end establishing in the
Department of the Treasury a program to be known as the
``Kleptocracy Asset Recovery Rewards Program.''
Subsection (a) of the new section 9706 provides that the
rewards program is administered by and at the sole discretion
of the Secretary of the Treasury, in consultation with other
agency heads as the Secretary finds appropriate.
Subsection (b) of the new section 9706 authorizes the
Secretary to pay a reward to an individual or any nonprofit
humanitarian organization designated by such individual, if
that individual furnishes information leading to the
restraining, seizure, forfeiture, or repatriation of stolen
assets in an account at a U.S. financial institution, that come
within the United States, or that come within the possession or
control of any United States person.
Subsection (c) of this new section 9706 requires the
Secretary to establish procedures to avoid duplication or
interference with any other payments authorized by Federal law
enforcement.
For the purpose of paying rewards under this program,
subsection (d) of the new section 9706 authorizes $450,000 to
be appropriated for fiscal year 2020. The total amount of
rewards paid under this program may not exceed $25,000,000
yearly, unless the President provides written notice of a
waiver to Congress at least 30 days in advance. However, this
subsection also provides that the Secretary must, to the extent
possible, make rewards payments using the stolen assets
recovered based on such information before using appropriated
funds. The Committee expects the Treasury Department to do so
in every possible instance. Moreover, the Committee further
expects that funds set aside for rewards would not in any
circumstance become U.S. funds, but would remain in accounts
that the U.S. Government administers as a custodian until they
were used to pay the rewards themselves. While the character of
these rewards may change over the course of the legislative
process, the recovered assets would continue to belong to the
foreign nationals or entities from which the assets were
stolen.
Subsection (e) of new section 9706 provides that no reward
paid under this rewards program may exceed $5,000,000 unless
the Secretary personally authorizes a greater amount,
determines that it is necessary due to the exceptional nature
of the case, and notifies Congress.
Subsection (b) of Section 3 requires a report within 360
days of the enactment of the Act describing policy choices and
recommendations for disposition of stolen assets recovered
pursuant to section 9706 of title 31. The program incentivizes
individuals to notify the U.S. government of assets in U.S.
financial institutions that are linked to foreign corruption,
allowing authorities to recover and return these assets and
prevent further enabling foreign corruption and terrorist
financing. Rewards are paid with funds taken from the recovered
stolen assets.
Hearings
For the purposes of section 103(i) of H. Res. 6 for the
116th Congress--
(1) the Subcommittee on National Security,
International Development and Monetary Policy of the
Committee on Financial Services held a hearing to
consider H.R. 389 entitled ``Promoting Corporate
Transparency: Examining Legislative Proposals to Detect
and Deter Crime'' on Wednesday, March 13, 2019.
Testifying before the Subcommittee was Jacob Cohen,
Former Director of the Office of Stakeholder
Engagement, FinCEN; Dennis Lormel, President & CEO, DML
Associates, LLC; Amit Sharma, CEO FinClusive; and Gary
Shiffman, Ph.D., founder and Chief Executive Officer,
Gian Oak, Inc.
(2) In addition, the Committee held a related hearing
entitled, ``Holding Megabanks Accountable: A Review of
Global Systemically Important Banks 10 years after the
Financial Crisis,'' on April 10, 2019. Testifying on a
single-panel was: Mr. Michael L. Corbat, Chief
Executive Officer, Citigroup; Mr. James Dimon, Chairman
& Chief Executive Officer, JP Morgan Chase & Co.; Mr.
James P. Gorman, Chairman & Chief Executive Officer,
Morgan Stanley; Mr. Brian T. Moynihan, Chairman & Chief
Executive Officer, Bank of America; Mr. Ronald P.
O'Hanley, President & Chief Executive Officer, State
Street Corporation; Mr. Charles W. Scharf, Chairman &
Chief Executive Officer, Bank of New York Mellon; and
Mr. David M. Solomon, Chairman & Chief Executive
Officer, Goldman Sachs.
Committee Consideration
The Committee on Financial Services met in open session on
March 26-28, 2019, and ordered H.R. 389 to be reported
favorably to the House with an amendment in the nature of a
substitute by unanimous consent, a quorum being present.
Committee Votes and Roll Call Votes
In compliance with clause 3(b) of rule XIII of the Rules of
the House of Representatives, the Committee advises there were
no roll call votes on H.R. 389.
Statement of Oversight Findings and Recommendations of the Committee
In compliance with clause 3(c)(1) of rule XIII and clause
2(b)(1) of rule X of the Rules of the House of Representatives,
the Committee's oversight findings and recommendations are
reflected in the descriptive portions of this report.
Statement of Performance Goals and Objectives
Pursuant to clause (3)(c) of rule XIII of the Rules of the
House of Representatives, the goals of H.R. 389 are to
establish in the Department of the Treasury a program to be
known as the ``Kleptocracy Asset Recovery Rewards Program.''
New Budget Authority and CBO Cost Estimate
Pursuant to clause 3(c)(2) of rule XIII of the Rules of the
House of Representatives and section 308(a) of the
Congressional Budget Act of 1974, and pursuant to clause
3(c)(3) of rule XIII of the Rules of the House of
Representatives and section 402 of the Congressional Budget Act
of 1974, the Committee has received the following estimate for
H.R. 389 from the Director of the Congressional Budget Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, April 15, 2019.
Hon. Maxine Waters,
Chairwoman, Committee on Financial Services,
House of Representatives, Washington, DC.
Dear Madam Chairwoman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 389, the
Kleptocracy Asset Recovery Rewards Act.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Matthew
Pickford.
Sincerely,
Keith Hall,
Director.
Enclosure.
H.R. 389 would amend federal law to establish within the
Department of the Treasury the Kleptocracy Asset Recovery
Rewards Program. H.R. 389 defines kleptocracy as a government
with corrupt leaders that use their power to exploit their
people and natural resources to extend their personal wealth
and political power. The bill would authorize the appropriation
of $450,000 for rewards to individuals providing information to
the government about such assets of a corrupt foreign
government that are on deposit with a U.S. financial
institution. CBO estimates that implementing H.R. 389 would
cost less than $500,000; any spending would be subject to the
availability of appropriated funds.
Most of the bill's provisions would codify existing policy
and practice. There is a Kleptocracy Asset Recovery Initiative
within the Department of Justice that investigates and
prosecutes corrupt foreign leaders. Since 2010 the Initiative
has helped repatriate more than $150 million in assets to
foreign governments that was previously lost to corruption. In
addition, the Department of State and the Internal Revenue
Service have similar programs.
Under H.R. 389, any funds recovered by the Treasury from
such corrupt governments in future years would be available for
such rewards. Treasury also would report to the Congress on the
implementation of the program. It is unclear whether any assets
seized by the government from U.S. financial institutions on
behalf of the rightful owners of those assets could be used by
the federal government to reward informers. Generally when the
federal government takes control of assets that belong to
others, those amounts are considered nonbudgetary and their
collection and disbursement do not affect the deficit.
The CBO staff contact for this estimate is Matthew
Pickford. The estimate was reviewed by Theresa Gullo, Assistant
Director for Budget Analysis.
Committee Cost Estimate
Clause 3(d)(1) of rule XIII of the Rules of the House of
Representatives requires an estimate and a comparison of the
costs that would be incurred in carrying out H.R. 389. However,
clause 3(d)(2)(B) of that rule provides that this requirement
does not apply when the committee has included in its report a
timely submitted cost estimate of the bill prepared by the
Director of the Congressional Budget Office under section 402
of the Congressional Budget Act.
Unfunded Mandate Statement
Pursuant to Section 423 of the Congressional Budget and
Impoundment Control Act (as amended by Section 101(a)(2) of the
Unfunded Mandates Reform Act, Pub. L. 104-4), the Committee
adopts as its own the estimate of federal mandates regarding
H.R. 389, as amended, prepared by the Director of the
Congressional Budget Office.
Advisory Committee
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
Application of Law to the Legislative Branch
Pursuant to section 102(b)(3) of the Congressional
Accountability Act, Pub. L. No. 104-1, H.R. 389, as amended,
does not apply to terms and conditions of employment or to
access to public services or accommodations within the
legislative branch.
Earmark Statement
In accordance with clause 9 of rule XXI of the Rules of the
House of Representatives, H.R. 389 does not contain any
congressional earmarks, limited tax benefits, or limited tariff
benefits as described in clauses 9(e), 9(f), and 9(g) of rule
XXI.
Duplication of Federal Programs
Pursuant to clause 3(c)(5) of rule XIII of the Rules of the
House of Representatives, the Committee states that no
provision of H.R.389 establishes or reauthorizes a program of
the Federal Government known to be duplicative of another
federal program, a program that was included in any report from
the Government Accountability Office to Congress pursuant to
section 21 of Public Law 111-139, or a program related to a
program identified in the most recent Catalog of Federal
Domestic Assistance.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, H.R. 7, as reported, are shown as follows:
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (new matter is
printed in italic and existing law in which no change is
proposed is shown in roman):
TITLE 31, UNITED STATES CODE
* * * * * * *
SUBTITLE VI--MISCELLANEOUS
* * * * * * *
CHAPTER 97--MISCELLANEOUS
Sec.
9701. Fees and charges for Government services and things of value.
* * * * * * *
9706. Department of the Treasury Kleptocracy Asset Recovery Rewards
Program.
* * * * * * *
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.