[Federal Register Volume 83, Number 23 (Friday, February 2, 2018)]
[Notices]
[Pages 4950-4953]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-02070]


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DEPARTMENT OF STATE

[Public Notice: 10258]


Global Magntisky Human Rights Accountability Act Annual Report

AGENCY: Department of State.

ACTION: Notice.

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SUMMARY: This notice contains the text of the report, submitted by the 
President required by the Global Magnitsky Human Rights Accountability 
Act, as submitted by the Secretary of State.

FOR FURTHER INFORMATION CONTACT: Benjamin A. Kraut, Email: Krautb@state 
gov, Phone: (202) 647-9452.

SUPPLEMENTARY INFORMATION: On December 21, 2017, The Secretary of State 
approved the following report pursuant to a delegation of authority 
from the President under Executive Order 13818. Executive Order 13818, 
which implements the Global Magnitsky Human Rights Accountability Act 
(Pub. L. 114-328, Subtitle F), was issued by the President on December 
20, 2017 with an effective date of December 21, 2017. The text of the 
report follows:
    As required by Section 1264 of the Global Magnitsky Human Rights 
Accountability Act of 2016 (Pub. L. 114-328, Subtitle F) (the ``Act''), 
and in accordance with the executive order (E.O.) issued to implement 
the Act, the Secretary of State, in consultation with the Secretary of 
the Treasury, submits this report to detail the Administration's 
implementation of the Act in 2017.
    Enacted on December 23, 2016, the Act authorizes the President to 
impose financial sanctions and visa restrictions on foreign persons 
responsible for acts of corruption or certain human rights violations. 
On December 20, 2017, the President issued an executive order to 
implement the Act. This executive order authorizes the Secretary of the 
Treasury, in consultation with the Secretary of State and the Attorney 
General, to impose financial sanctions on persons determined to be 
directly or indirectly responsible for serious human rights abuse or 
acts of significant corruption. The executive order also authorizes the 
Secretary of State to impose visa restrictions on persons designated 
pursuant to the executive order.
    The United States is committed to protecting and promoting human 
rights and combatting corruption around the world. These efforts 
advance a world order that reflects U.S. values and increases the 
security of the United States, its allies, and its partners. The United 
States has led, and is uniquely positioned to continue leading, the 
international community in efforts to combat human rights abuse and 
corruption on the international stage. Sanctions issued pursuant to the 
Act, as implemented by the executive order, are consistent with these 
longstanding efforts.
    The United States will, under the executive order, pursue tangible 
and significant consequences for those who commit serious human rights 
abuse and engage in corruption. This tool will be used without 
hesitation to advance U.S. interests in cases involving human rights 
abusers or corrupt actors who are beyond the reach of other U.S. 
sanctions authorities, but whose designation could have an impact on 
these and other malign actors.

Financial Sanctions

    Over the last year, various departments and agencies of the United 
States Government have actively collected information from multiple 
sources--including the Intelligence Community, U.S. missions around the 
world, non-governmental organizations,

[[Page 4951]]

and Congress--to support sanctions designations under the executive 
order.
    In the executive order, the President issued sanctions and visa 
restrictions on several persons around the world for human rights abuse 
or corruption. Simultaneously, the Department of the Treasury issued a 
number of designations targeting individuals and entities engaged in 
human rights abuse or corruption or supporting those sanctioned by the 
President. The Annex and designations issued this year pursuant to the 
executive order are detailed below:
    Yahya Jammeh: Yahya Jammeh (Jammeh), the former President of The 
Gambia who came to power in 1994 and stepped down in 2017, has a long 
history of engaging in serious human rights abuses and corruption. 
Jammeh created a terror and assassination squad called the Junglers 
that answered directly to him. Jammeh used the Junglers to threaten, 
terrorize, interrogate, and kill individuals whom Jammeh assessed to be 
threats. During Jammeh's tenure, he ordered the Junglers to kill a 
local religious leader, journalists, members of the political 
opposition, and former members of the government, among others. Jammeh 
used the Gambia's National Intelligence Agency (NIA) as a repressive 
tool of the regime--torturing political opponents and journalists. 
Throughout his presidency, Jammeh routinely ordered the abuse and 
murder of those he suspected of undermining his authority.
    During his tenure, Jammeh used a number of corrupt schemes to 
plunder The Gambia's state coffers or otherwise siphon off state funds 
for his personal gain. Ongoing investigations continue to reveal 
Jammeh's large-scale theft from state coffers prior to his departure. 
According to The Gambia's Justice Ministry, Jammeh personally, or 
through others acting under his instructions, directed the unlawful 
withdrawal of at least $50 million of state funds. The Gambian 
Government has since taken action to freeze Jammeh's assets within The 
Gambia.
    Related to Jammeh's designation, the Department of the Treasury 
also designated Africada Airways, Kanilai Group International, Kanilai 
Worni Family Farms Ltd, Royal Africa Capital Holding Ltd, Africada 
Financial Service & Bureau de Change Ltd, Africada Micro-Finance Ltd, 
Africada Insurance Company, Kora Media Corporation Ltd, Atlantic 
Pelican Company Ltd, Palm Grove Africa Dev't Corp. Ltd, Patriot 
Insurance Brokers Co. Ltd, and Royal Africa Securities Brokerage Co 
Ltd.
    Roberto Jose Rivas Reyes: As President of Nicaragua's Supreme 
Electoral Council, drawing a reported government salary of $60,000 per 
year, Roberto Jose Rivas Reyes (Rivas) has been accused in the press of 
amassing sizeable personal wealth, including multiple properties, 
private jets, luxury vehicles, and a yacht. Rivas has been described by 
a Nicaraguan Comptroller General as ``above the law,'' with 
investigations into his corruption having been blocked by Nicaraguan 
government officials. He has also perpetrated electoral fraud 
undermining Nicaragua's electoral institutions.
    Dan Gertler: Dan Gertler (Gertler) is an international businessman 
and billionaire who amassed his fortune through hundreds of millions of 
dollars' worth of opaque and corrupt mining and oil deals in the 
Democratic Republic of the Congo (DRC). Gertler has used his close 
friendship with DRC President Joseph Kabila to act as a middleman for 
mining asset sales in the DRC, requiring some multinational companies 
to go through Gertler to do business with the Congolese state. As a 
result, between 2010 and 2012 alone, the DRC reportedly lost over $1.36 
billion in revenues from the underpricing of mining assets that were 
sold to offshore companies linked to Gertler. The failure of the DRC to 
publish the full details of one of the sales prompted the International 
Monetary Fund to halt loans to the DRC totaling $225 million. In 2013, 
Gertler sold to the DRC government for $150 million the rights to an 
oil block that Gertler purchased from the government for just $500,000, 
a loss of $149.5 million in potential revenue. Gertler has acted for or 
on behalf of Kabila, helping Kabila organize offshore leasing 
companies.
    Related to Gertler's designation, the Department of the Treasury 
designated Pieter Albert Deboutte, Fleurette Properties Limited, 
Fleurette Holdings Netherlands B.V., Gertler Family Foundation, Oil of 
DR Congo SPRL, Jarvis Congo SARL, International Diamond Industries, 
D.G.D. Investments Ltd., D.G.I. Israel Ltd, Proglan Capital Ltd, Emaxon 
Finance International Inc., Africa Horizons Investment Limited, 
Caprikat Limited, Foxwhelp Limited, Caprikat and Foxwhelp SARL, Lora 
Enterprises Limited, Zuppa Holdings Limited, Orama Properties Ltd, DGI 
Mining Ltd, and Rozaro Development Limited.
    Slobodan Tesic: Slobodan Tesic (Tesic) is among the biggest dealers 
of arms and munitions in the Balkans; he spent nearly a decade on the 
United Nations (UN) Travel Ban List for violating UN sanctions against 
arms exports to Liberia. In order to secure arms contracts with various 
countries, Tesic would directly or indirectly provide bribes and 
financial assistance to officials. Tesic also took potential clients on 
high-value vacations, paid for their children's education at western 
schools or universities, and used large bribes to secure contracts. 
Tesic owns or controls two Serbian companies, Partizan Tech and 
Technoglobal Systems DOO Beograd, and two Cyprus-based companies Grawit 
Limited and Charso Limited. Tesic negotiates the sale of weapons via 
Charso Limited and used Grawit Limited as a mechanism to fund 
politicians.
    Related to Tesic's designation, the Department of the Treasury 
designated Preduzece Za Trgovinu Na Veliko I Malo Partizan Tech DOO 
Beograd-Savski Venac (``Partizan Tech''), Charso Limited, Grawit 
Limited, and Technoglobal Systems DOO Beograd.
    Maung Maung Soe: In his former role as chief of the Burmese Army's 
Western command, Maung Maung Soe oversaw the military operation in 
Burma's Rakhine State responsible for widespread human rights abuse 
against Rohingya civilians in response to attacks by the Arakan 
Rohingya Salvation Army. The Secretary of State determined on November 
22 that the situation in northern Rakhine state in Burma constituted 
ethnic cleansing. The United States Government examined credible 
evidence of Maung Maung Soe's activities, including allegations against 
Burmese security forces of extrajudicial killings, sexual violence, and 
arbitrary arrest as well as the widespread burning of villages. 
Security operations have led to hundreds of thousands of Rohingya 
refugees fleeing across Burma's border with Bangladesh. In August 2017, 
witnesses reportedly described mass killings and arson attacks by the 
Burmese Army and Burmese Border Guard Police, both then under Maung 
Maung Soe's command in northern Rakhine State. In August 2017, soldiers 
described as being from the Western Command allegedly entered a village 
and reportedly separated the inhabitants by gender. According to 
witnesses, soldiers opened fire on the men and older boys and committed 
multiple acts of rape. Many of the women and younger children were 
reportedly also shot. Other witnesses described soldiers setting huts 
on fire with villagers inside.
    Benjamin Bol Mel: Benjamin Bol Mel (Bol Mel) is the President of 
ABMC Thai-South Sudan Construction Company Limited (ABMC), and has 
served as the Chairman of the South Sudan Chamber of Commerce, 
Industry, and Agriculture. Bol Mel has also served

[[Page 4952]]

as South Sudanese President Salva Kiir's principal financial advisor, 
has been Kiir's private secretary, and was perceived within the 
government as being close to Kiir and the local business community. 
Several officials were linked to ABMC in spite of a constitutional 
prohibition on top government officials transacting commercial business 
or earning income from outside the government.
    Bol Mel oversees ABMC, which has been awarded contracts worth tens 
of millions of dollars by the Government of South Sudan. ABMC allegedly 
received preferential treatment from high-level officials, and the 
Government of South Sudan did not hold a competitive process for 
selecting ABMC to do roadwork on several roads in Juba and throughout 
South Sudan. Although this roadwork had been completed only a few years 
before, the government budgeted tens of millions of dollars more for 
maintenance of the same roads.
    Related to Bol Mel's designation, the Department of the Treasury 
designated ABMC Thai-South Sudan Construction Company Limited and Home 
and Away LTD.
    Mukhtar Hamid Shah: Mukhtar Hamid Shah (Shah) is a Pakistani 
surgeon specializing in kidney transplants who Pakistani police believe 
to be involved in kidnapping, wrongful confinement, and the removal of 
and trafficking in human organs. As an owner of the Kidney Centre in 
Rawalpindi, Pakistan, Shah was involved in the kidnapping and detention 
of, and removal of kidneys from, Pakistani laborers. Shah was arrested 
by Pakistani authorities in connection with an October 2016 incident in 
which 24 individuals from Punjab were found to be held against their 
will. Impoverished and illiterate Pakistanis from the countryside were 
reportedly lured to Rawalpindi with the promise of a job, and 
imprisoned for weeks. Doctors from the Kidney Centre were allegedly 
planning to steal their kidneys in order to sell them for a large 
profit. Police state that one of the accused arrested in connection 
with the events estimated that more than 400 people were imprisoned in 
the apartment at various times.
    Gulnara Karimova: Gulnara Karimova (Karimova), daughter of former 
Uzbekistan leader Islam Karimov, headed a powerful organized crime 
syndicate that leveraged state actors to expropriate businesses, 
monopolize markets, solicit bribes, and administer extortion rackets. 
In July 2017, the Uzbek Prosecutor General's Office charged Karimova 
with directly abetting the criminal activities of an organized crime 
group whose assets were worth over $1.3 billion. Karimova was also 
charged with hiding foreign currency through various means, including 
the receipt of payoffs in the accounts of offshore companies controlled 
by an organized criminal group, the illegal sale of radio frequencies 
and land parcels, siphoning off state funds through fraudulent dividend 
payments and stock sales, the illegal removal of cash, the non-
collection of currency earnings, and the import of goods at inflated 
prices. Karimova was also found guilty of embezzlement of state funds, 
theft, tax evasion, and concealment of documents. Karimova laundered 
the proceeds of corruption back to her own accounts through a complex 
network of subsidiary companies and segregated portfolio funds. 
Karimova's targeting of successful businesses to maximize her gains and 
enrich herself in some cases destroyed Uzbek competitors. Due in part 
to Karimova's corrupt activities in the telecom sector alone, Uzbeks 
paid some of the highest rates in the world for cellular service.
    Angel Rondon Rijo: Angel Rondon Rijo (Rondon) is a politically 
connected businessman and lobbyist in the Dominican Republic who 
funneled money from Odebrecht, a Brazilian construction company, to 
Dominican officials, who in turn awarded Odebrecht projects to build 
highways, dams, and other projects. According to the U.S. Department of 
Justice, Odebrecht is a Brazil-based global construction conglomerate 
that has pled guilty to charges of conspiracy to violate the anti-
bribery provisions of the Foreign Corrupt Practices Act, and agreed to 
a criminal fine of $4.5 billion. In 2017, Rondon was arrested by 
Dominican authorities and charged with corruption for the bribes paid 
by Odebrecht.
    Artem Chayka: Artem Chayka (Chayka) is the son of the Prosecutor 
General of the Russian Federation and has leveraged his father's 
position and ability to award his subordinates to unfairly win state-
owned assets and contracts and put pressure on business competitors. In 
2014, reconstruction of a highway began, and Chayka's competitor for 
supplying materials to the project suddenly fell under prosecutorial 
scrutiny. An anonymous complaint letter with a fake name initiated a 
government investigation against the competitor. Government inspectors 
did not produce any documents confirming the legality of the 
inspections, and did not inform subjects of the investigation of their 
rights. Traffic police were deployed along the route to the competitor, 
weight control stations were suddenly dispatched, and trees were dug up 
and left to block entrances. The competitor was forced to shut down, 
leaving Chayka in a position to non-competitively work on the highway 
project. Also in 2014, Chayka bid on a state-owned stone and gravel 
company, and was awarded the contract. His competitor contested the 
results and filed a lawsuit. Prosecutors thereafter raided his home. 
After Chayka's competitor withdrew the lawsuit, prosecutors dropped all 
charges.
    Gao Yan: Gao Yan (Gao) was the Beijing Public Security Bureau 
Chaoyang Branch director. During Gao's tenure, human rights activist 
Cao Shunli was detained at Beijing Municipal Public Security Bureau 
Chaoyang Branch where, in March 2014, Cao fell into a coma and died 
from organ failure, her body showing signs of emaciation and neglect. 
Cao had been arrested after attempting to board a flight to attend 
human rights training in Geneva, Switzerland. She was refused 
visitation by her lawyer, and was refused medical treatment while she 
suffered from tuberculosis.
    Sergey Kusiuk: Sergey Kusiuk (Kusiuk) was commander of an elite 
Ukrainian police unit, the Berkut. Ukraine's Special Investigations 
Department investigating crimes against activists identified Kusiuk as 
a leader of an attack on peaceful protesters on November 30, 2013, 
while in charge of 290 Berkut officers, many of whom took part in the 
beating of activists. Kusiuk has been named by the Ukrainian General 
Prosecutor's Office as an individual who took part in the killings of 
activists on Kyiv's Independence Square in February 2014. Kusiuk 
ordered the destruction of documentation related to the events, and has 
fled Ukraine and is now in hiding in Moscow, Russia, where he was 
identified dispersing protesters as part of a Russian riot police unit 
in June 2017.
    Julio Antonio Juarez Ramirez: Julio Antonio Juarez Ramirez (Juarez) 
is a Guatemalan Congressman accused of ordering an attack in which two 
journalists were killed and another injured. Guatemalan prosecutors and 
a UN-sponsored commission investigating corruption in Guatemala allege 
that Juarez hired hit men to kill Prensa Libre correspondent Danilo 
Efrain Zapan Lopez, whose reporting had hurt Juarez's plan to run for 
reelection. Fellow journalist Federico Benjamin Salazar of Radio Nuevo 
Mundo was also killed in the attack and is considered a

[[Page 4953]]

collateral victim. Another journalist was wounded in the attack.
    Yankuba Badjie: Yankuba Badjie (Badjie) was appointed as the 
Director General of The Gambia's NIA in December 2013 and is alleged to 
have presided over abuses throughout his tenure. During Badjie's tenure 
as Director General, abuses were prevalent and routine within the NIA, 
consisting of physical trauma and other mistreatment. In April 2016, 
Badjie oversaw the detention and murder of Solo Sandeng, a member of 
the political opposition. In February 2017, Badjie was charged along 
with eight subordinates with Sandeng's murder. Prior to becoming 
Director General, Badjie served as the NIA Deputy Director General for 
Operations. Prior to becoming a member of the NIA's senior leadership, 
Badjie led a paramilitary group known as the Junglers to the NIA's 
headquarters to beat a prisoner for approximately three hours, leaving 
the prisoner unconscious and with broken hands. The following day, 
Badjie and the Junglers returned to beat the prisoner again, leaving 
him on the verge of death.

Visa Restrictions

    Although no visa restrictions were imposed under the Act during the 
first year of its enactment, persons designated pursuant to the 
executive order may be subject to the visa restrictions articulated in 
Sec. 2. Sec. 2 contains restrictions pursuant to Presidential 
Proclamation 8693, which establishes a mechanism for imposing visa 
restrictions on Specially Designated Nationals and Blocked Persons 
(SDNs) designated under the executive order and certain other executive 
orders, as well as individuals designated otherwise for travel bans in 
UN Security Council resolutions. In addition, the Department of State 
continues to take action, as appropriate, to implement authorities 
pursuant to which it can impose visa restrictions on those responsible 
for human rights violations and corruption, including Presidential 
Proclamations 7750 and 8697, and Section 7031(c) of the FY2017 
Consolidated Appropriations Act. The Department of State continues to 
make visa ineligibility determinations pursuant to the Immigration and 
Nationality Act (INA), including Section 212(a)(3)(E) which makes 
individuals who have participated in acts of genocide or committed acts 
of torture, extrajudicial killings, and other human rights violations 
ineligible for visas.

Termination of Sanctions

    No sanctions imposed under the Act were terminated.

Efforts To Encourage Governments of Other Countries To Impose Sanctions 
Similar to Those Authorized by the Act

    The United States is committed to encouraging other countries to 
impose sanctions on a similar basis to those provided for by the Act. 
The Departments of State and Treasury have consulted closely with 
United Kingdom and Canadian government counterparts over the last year 
to encourage development and implementation of statutes similar to the 
Act by those governments. Both countries have enacted similar laws. The 
Departments of State and Treasury shared information with various 
foreign partners regarding sanctions and other actions that might be 
taken against persons pursuant to the Act, as implemented by the E.O., 
in parallel with other governments' relevant authorities.

Manisha Singh,
Assistant Secretary of State, Bureau of Economic and Business Affairs, 
Department of State.
[FR Doc. 2018-02070 Filed 2-1-18; 8:45 am]
 BILLING CODE 4710-AE-P