IB 

Union Calendar No. 38 

116TH CONGRESS 

1ST SESSION H. R. 389 

[Report No. 116–60] 

To authorize the Secretary of the Treasury to pay rewards under an asset 

recovery rewards program to help identify and recover stolen assets 

linked to foreign government corruption and the proceeds of such corruption hidden behind complex financial structures in the United States 

and abroad. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 9, 2019 

Mr. LYNCH (for himself, Mr. COHEN, and Mr. BUDD) introduced the following 

bill; which was referred to the Committee on Financial Services 

MAY 14, 2019 

Additional sponsors: Miss RICE of New York and Mr. FITZPATRICK

MAY 14, 2019 

Reported with an amendment, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 

[Strike out all after the enacting clause and insert the part printed in italic] 

[For text of introduced bill, see copy of bill as introduced on January 9, 2019] 


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A BILL 

To authorize the Secretary of the Treasury to pay rewards 

under an asset recovery rewards program to help identify 

and recover stolen assets linked to foreign government 

corruption and the proceeds of such corruption hidden 

behind complex financial structures in the United States 

and abroad. 


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1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 The Act may be cited as the ‘‘Kleptocracy Asset Recov5 ery Rewards Act’’. 

6 SEC. 2. FINDINGS; SENSE OF CONGRESS. 

7 (a) FINDINGS.—Congress finds the following: 

8 (1) The Stolen Asset Recovery Initiative (StAR), 

9 a World Bank and United Nations anti-money-laun10 dering effort, estimates that between $20 billion to 

11 $40 billion has been lost to developing countries an12 nually through corruption. 

13 (2) In 2014, more than $480 million in corrup14 tion proceeds hidden in bank accounts around the 

15 world by former Nigerian dictator Sani Abacha and 

16 his co-conspirators was forfeited through efforts by the 

17 Department of Justice. 

18 (3) In 2010, the Department of Justice estab19 lished the Kleptocracy Asset Recovery Initiative, to 

20 work in partnership with Federal law enforcement 

21 agencies to forfeit the proceeds of foreign official cor22 ruption and, where appropriate, return those proceeds 

23 to benefit the people harmed by these acts of corrup24 tion and abuse of office. 


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1 (4) Of the $20 billion to $40 billion lost by devel2 oping countries annually through corruption, only 

3 about $5 billion has been repatriated in the last 15 

4 years. 

5 (5) Governments weakened by corruption and 

6 loss of assets due to corruption have fewer resources 

7 to devote to the fight against terrorism and fewer re8 sources to devote to building strong financial, law en9 forcement, and judicial institutions to aid in the fight 

10 against the financing of terrorism. 

11 (6) The United States has a number of effective 

12 programs to reward individuals who provide valuable 

13 information that assist in the identification, arrest, 

14 and conviction of criminal actors and their associ15 ates, as well as seizure and forfeiture of illicitly de16 rived assets and the proceeds of criminal activity. 

17 (7) The Internal Revenue Service has the Whis18 tleblower Program, which pays awards to individuals 

19 who provide specific and credible information to the 

20 IRS if the information results in the collection of 

21 taxes, penalties, interest or other amounts from non22 compliant taxpayers. 

23 (8) The Department of State administers re24 wards programs on international terrorism, illegal 


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1 narcotics, and transnational organized crime with the 

2 goal of bringing perpetrators to justice. 

3 (9) None of these existing rewards programs spe4 cifically provide monetary incentives for identifying 

5 and recovering stolen assets linked solely to foreign 

6 government corruption, as opposed to criminal pros7 ecutions or civil or criminal forfeitures. 

8 (10) The recovery of stolen assets linked to for9 eign government corruption and the proceeds of such 

10 corruption may not always involve a BSA violation 

11 or lead to a forfeiture action. In such cases there 

12 would be no ability to pay rewards under existing 

13 Treasury Department authorities. 

14 (11) Foreign government corruption can take 

15 many forms but typically entails government officials 

16 stealing, misappropriating, or illegally diverting as17 sets and funds from their own government treasuries 

18 to enrich their personal wealth directly through em19 bezzlement or bribes to allow government resources to 

20 be expended in ways that are not transparent and 

21 may not either be necessary or be the result of open 

22 competition. Corruption also includes situations 

23 where public officials take bribes to allow government 

24 resources to be expended in ways which are not trans25 parent and may not be necessary or the result of open 


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1 competition. These corrupt officials often use the 

2 United States and international financial system to 

3 hide their stolen assets and the proceeds of corruption. 

4 (12) The individuals who come forward to expose 

5 foreign governmental corruption and kleptocracy often 

6 do so at great risk to their own safety and that of 

7 their immediate family members and face retaliation 

8 from persons who exercise foreign political or govern9 mental power. Monetary rewards can provide a nec10 essary incentive to expose such corruption and pro11 vide a financial means to provide for their well-being 

12 and avoid retribution. 

13 (b) SENSE OF CONGRESS.—It is the sense of Congress 

14 that a Department of the Treasury stolen asset recovery re15 wards program to help identify and recover stolen assets 

16 linked to foreign government corruption and the proceeds 

17 of such corruption hidden behind complex financial struc18 tures is needed in order to— 

19 (1) intensify the global fight against corruption; 

20 and 

21 (2) serve United States efforts to identify and re22 cover such stolen assets, forfeit proceeds of such cor23 ruption, and, where appropriate and feasible, return 

24 the stolen assets or proceeds thereof to the country 

25 harmed by the acts of corruption. 


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1 SEC. 3. IN GENERAL. 

2 (a) DEPARTMENT OF THE TREASURY KLEPTOCRACY

3 ASSET RECOVERY REWARDS PROGRAM.—Chapter 97 of 

4 title 31, United States Code, is amended by adding at the 

5 end the following: 

6 ‘‘§ 9706. Department of the Treasury Kleptocracy Asset 

7 Recovery Rewards Program 

8 ‘‘(a) ESTABLISHMENT.— 

9 ‘‘(1) IN GENERAL.—There is established in the 

10 Department of the Treasury a program to be known 

11 as the ‘Kleptocracy Asset Recovery Rewards Program’ 

12 for the payment of rewards to carry out the purposes 

13 of this section. 

14 ‘‘(2) PURPOSE.—The rewards program shall be 

15 designed to support U.S. Government programs and 

16 investigations aimed at restraining, seizing, for17 feiting, or repatriating stolen assets linked to foreign 

18 government corruption and the proceeds of such cor19 ruption. 

20 ‘‘(3) IMPLEMENTATION.—The rewards program 

21 shall be administered by, and at the sole discretion of, 

22 the Secretary of the Treasury, in consultation, as ap23 propriate, with the Secretary of State, the Attorney 

24 General, and the heads of such other departments and 

25 agencies as the Secretary may find appropriate. 


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1 ‘‘(b) REWARDS AUTHORIZED.—In the sole discretion 

2 of the Secretary and in consultation, as appropriate, with 

3 the heads of other relevant Federal departments or agencies, 

4 the Secretary may pay a reward to any individual, or to 

5 any nonprofit humanitarian organization designated by 

6 such individual, if that individual furnishes information 

7 leading to— 

8 ‘‘(1) the restraining or seizure of stolen assets in 

9 an account at a U.S. financial institution (including 

10 a U.S. branch of a foreign financial institution), that 

11 come within the United States, or that come within 

12 the possession or control of any United States person; 

13 ‘‘(2) the forfeiture of stolen assets in an account 

14 at a U.S. financial institution (including a U.S. 

15 branch of a foreign financial institution), that come 

16 within the United States, or that come within the 

17 possession or control of any United States person; or 

18 ‘‘(3) where appropriate, the repatriation of sto19 len assets in an account at a U.S. financial institu20 tion (including a U.S. branch of a foreign financial 

21 institution), that come within the United States, or 

22 that come within the possession or control of any 

23 United States person. 

24 ‘‘(c) COORDINATION.— 


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1 ‘‘(1) PROCEDURES.—To ensure that the payment 

2 of rewards pursuant to this section does not duplicate 

3 or interfere with any other payment authorized by the 

4 Department of Justice or other Federal law enforce5 ment agencies for the obtaining of information or 

6 other evidence, the Secretary of the Treasury, in con7 sultation with the Secretary of State, the Attorney 

8 General, and the heads of such other agencies as the 

9 Secretary may find appropriate, shall establish proce10 dures for the offering, administration, and payment 

11 of rewards under this section, including procedures 

12 for— 

13 ‘‘(A) identifying actions with respect to 

14 which rewards will be offered; 

15 ‘‘(B) the receipt and analysis of data; and 

16 ‘‘(C) the payment of rewards and approval 

17 of such payments. 

18 ‘‘(2) PRIOR APPROVAL OF THE ATTORNEY GEN19 ERAL REQUIRED.—Before making a reward under 

20 this section in a matter over which there is Federal 

21 criminal jurisdiction, the Secretary of the Treasury 

22 shall obtain the written concurrence of the Attorney 

23 General. 

24 ‘‘(d) PAYMENT OF REWARDS.— 


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1 ‘‘(1) AUTHORIZATION OF APPROPRIATIONS.—For 

2 the purpose of paying rewards pursuant to this sec3 tion, there is authorized to be appropriated $450,000 

4 for fiscal year 2020. 

5 ‘‘(2) LIMITATION ON ANNUAL PAYMENTS.—Ex6 cept as provided under paragraph (3), the total 

7 amount of rewards paid pursuant to this section may 

8 not exceed $25,000,000 in any calendar year. 

9 ‘‘(3) PRESIDENTIAL AUTHORITY.—The President 

10 may waive the limitation under paragraph (2) with 

11 respect to a calendar year if the President provides 

12 written notice of such waiver to the appropriate com13 mittees of the Congress at least 30 days before any 

14 payment in excess of such limitation is made pursu15 ant to this section. 

16 ‘‘(4) PAYMENT FROM STOLEN ASSET AMOUNTS.— 

17 In paying any reward under this section with respect 

18 to information furnished by an individual, the Sec19 retary shall, to the extent possible, make such pay20 ments using the stolen assets recovered based on such 

21 information before using appropriated funds author22 ized under paragraph (1). 

23 ‘‘(e) LIMITATIONS.— 

24 ‘‘(1) SUBMISSION OF INFORMATION.—No award 

25 may be made under this section based on information 


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1 submitted to the Secretary unless such information is 

2 submitted under penalty of perjury. 

3 ‘‘(2) MAXIMUM AMOUNT.—No reward paid under 

4 this section may exceed $5,000,000, unless the Sec5 retary— 

6 ‘‘(A) personally authorizes such greater 

7 amount in writing; 

8 ‘‘(B) determines that offer or payment of a 

9 reward of a greater amount is necessary due to 

10 the exceptional nature of the case; and 

11 ‘‘(C) notifies the appropriate committees of 

12 the Congress of such determination. 

13 ‘‘(3) APPROVAL.— 

14 ‘‘(A) IN GENERAL.—No reward amount 

15 may be paid under this section without the writ16 ten approval of the Secretary. 

17 ‘‘(B) DELEGATION.—The Secretary may not 

18 delegate the approval required under subpara19 graph (A) to anyone other than an Under Sec20 retary of the Department of the Treasury. 

21 ‘‘(4) PROTECTION MEASURES.—If the Secretary 

22 determines that the identity of the recipient of a re23 ward or of the members of the recipient’s immediate 

24 family must be protected, the Secretary shall take 

25 such measures in connection with the payment of the 


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1 reward as the Secretary considers necessary to effect 

2 such protection. 

3 ‘‘(5) FORMS OF REWARD PAYMENT.—The Sec4 retary may make a reward under this section in the 

5 form of a monetary payment. 

6 ‘‘(f) INELIGIBILITY, REDUCTION IN, OR DENIAL OF RE7 WARD.— 

8 ‘‘(1) OFFICER AND EMPLOYEES.—An officer or 

9 employee of any entity of Federal, State, or local gov10 ernment or of a foreign government who, while in the 

11 performance of official duties, furnishes information 

12 described under subsection (b) shall not be eligible for 

13 a reward under this section. 

14 ‘‘(2) PARTICIPATING INDIVIDUALS.—If the claim 

15 for a reward is brought by an individual who the Sec16 retary has a reasonable basis to believe knowingly 

17 planned, initiated, directly participated in, or facili18 tated the actions that led to assets of a foreign state 

19 or governmental entity being stolen, misappropriated, 

20 or illegally diverted or to the payment of bribes or 

21 other foreign governmental corruption, the Secretary 

22 shall appropriately reduce, and may deny, such 

23 award. If such individual is convicted of criminal 

24 conduct arising from the role described in the preVerDate Sep 11 2014 01:14 May 15, 2019 Jkt 089200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6203 \\ALPHA3\E\BILLS\H389.RH H389

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1 ceding sentence, the Secretary shall deny or may seek 

2 to recover any reward, as the case may be. 

3 ‘‘(g) REPORT.— 

4 ‘‘(1) IN GENERAL.—Within 180 days of the en5 actment of this section, and annually thereafter for 5 

6 years, the Secretary shall issue a report to the appro7 priate committees of the Congress— 

8 ‘‘(A) detailing to the greatest extent possible 

9 the amount, location, and ownership or bene10 ficial ownership of any stolen assets that, on or 

11 after the date of the enactment of this section, 

12 come within the United States or that come 

13 within the possession or control of any United 

14 States person; 

15 ‘‘(B) discussing efforts being undertaken to 

16 identify more such stolen assets and their owners 

17 or beneficial owners; and 

18 ‘‘(C) including a discussion of the inter19 actions of the Department of the Treasury with 

20 the international financial institutions (as de21 fined in section 1701(c)(2) of the International 

22 Financial Institutions Act) to identify the 

23 amount, location, and ownership, or beneficial 

24 ownership, of stolen assets held in financial in25 stitutions outside the United States. 


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1 ‘‘(2) EXCEPTION FOR ONGOING INVESTIGA2 TIONS.—The report issued under paragraph (1) shall 

3 not include information related to ongoing investiga4 tions. 

5 ‘‘(h) DEFINITIONS.—For purposes of this section: 

6 ‘‘(1) APPROPRIATE COMMITTEES OF THE CON7 GRESS.—The term ‘appropriate committees of the 

8 Congress’ means the Committee on Financial Services 

9 of the House of Representatives and the Committee on 

10 Banking, Housing, and Urban Affairs of the Senate. 

11 ‘‘(2) FINANCIAL ASSET.—The term ‘financial 

12 asset’ means any funds, investments, or ownership in13 terests, as defined by the Secretary, that on or after 

14 the date of the enactment of this section come within 

15 the United States or that come within the possession 

16 or control of any United States person. 

17 ‘‘(3) FOREIGN GOVERNMENT CORRUPTION.—The 

18 term ‘foreign government corruption’ includes bribery 

19 of a foreign public official, or the misappropriation, 

20 theft, or embezzlement of public funds or property by 

21 or for the benefit of a foreign public official. 

22 ‘‘(4) FOREIGN PUBLIC OFFICIAL.—The term ‘for23 eign public official’ includes any person who occupies 

24 a public office by virtue of having been elected, ap25 pointed, or employed, including any military, civilVerDate Sep 11 2014 01:14 May 15, 2019 Jkt 089200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6203 \\ALPHA3\E\BILLS\H389.RH H389

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1 ian, special, honorary, temporary, or uncompensated 

2 official. 

3 ‘‘(5) IMMEDIATE FAMILY MEMBER.—The term 

4 ‘immediate family member’, with respect to an indi5 vidual, has the meaning given the term ‘member of 

6 the immediate family’ under section 36(k) of the State 

7 Department Basic Authorities Act of 1956 (22 U.S.C. 

8 2708(k)). 

9 ‘‘(6) REWARDS PROGRAM.—The term ‘rewards 

10 program’ means the program established in subsection 

11 (a)(1) of this section. 

12 ‘‘(7) SECRETARY.—The term ‘Secretary’ means 

13 the Secretary of the Treasury. 

14 ‘‘(8) STOLEN ASSETS.—The term ‘stolen assets’ 

15 means financial assets within the jurisdiction of the 

16 United States, constituting, derived from, or traceable 

17 to, any proceeds obtained directly or indirectly from 

18 foreign government corruption.’’. 

19 (b) REPORT ON DISPOSITION OF RECOVERED AS20 SETS.—Within 360 days of the enactment of this Act, the 

21 Secretary of the Treasury shall issue a report to the appro22 priate committees of Congress (as defined under section 

23 9706(h) of title 31, United States Code) describing policy 

24 choices and recommendations for disposition of stolen assets 


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1 recovered pursuant to section 9706 of title 31, United States 

2 Code. 

3 (c) TABLE OF CONTENTS AMENDMENT.—The table of 

4 contents for chapter 97 of title 31, United States Code, is 

5 amended by adding at the end the following: 

‘‘9706. Department of the Treasury Kleptocracy Asset Recovery Rewards Program.’’. 


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Union Calendar No. 38 

116TH CONGRESS 

1ST SESSION H. R. 389 

[Report No. 116–60] 

A BILL 

To authorize the Secretary of the Treasury to pay 

abroad. plex financial structures in the United States and proceeds of such corruption hidden behind comlinked to foreign government corruption and the gram to help identify and recover stolen assets rewards under an asset recovery rewards proMAY 14, 2019 

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


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