```

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3843 Introduced in House (IH)]

<DOC>

116th CONGRESS
  1st Session
                                H. R. 3843

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

                             July 18, 2019

Mr. Keating (for himself, Mr. Fitzpatrick, Mr. Hastings, Mr. Wilson of 
 South Carolina, Mr. Cohen, Mr. Aderholt, Ms. Jackson Lee, Mr. Hudson, 
 Ms. Moore, Mr. Curtis, Mr. Suozzi, and Mr. Malinowski) introduced the 
following bill; which was referred to the Committee on Foreign Affairs, 
and in addition to the Committee on Financial Services, for a period to 
      be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

_______________________________________________________________________

                                 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 TITLE.

    This Act may be cited as the ``Countering Russian and Other 
Overseas Kleptocracy Act'' or the ``CROOK Act''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) Authoritarian leaders in foreign countries abuse their 
        power to steal assets from state institutions, enrich 
        themselves at the expense of their countries' economic 
        development, and use corruption as a strategic tool both to 
        solidify their grip on power and to undermine democratic 
        institutions abroad.
            (2) Global corruption harms the competitiveness of United 
        States businesses, feeds terrorist recruitment and 
        transnational organized crime, enables drug smuggling and human 
        trafficking, and stymies economic growth.
            (3) Illicit financial flows often inconspicuously penetrate 
        a country through what appears to be legitimate financial 
        transactions, as kleptocrats launder money, use shell 
        companies, amass offshore wealth, and participate in a global 
        shadow economy.
            (4) The government of Vladimir Putin in Russia is the 
        leading model of this type of foreign kleptocratic system, 
        using corruption to erode democratic governance from within and 
        discrediting democracy abroad, thereby strengthening his 
        authoritarian rule.
            (5) Russia uses stolen money to--
                    (A) purchase key assets in other countries, 
                particularly with a goal of attaining monopolistic 
                control of a sector;
                    (B) gain access to and influence the policies of 
                democratic countries; and
                    (C) directly fund political parties and 
                organizations that advance Russian interests in other 
                countries, particularly those that undermine confidence 
                and trust in democratic systems.
            (6) Thwarting these tactics by Russia and other 
        kleptocratic governments requires the international community 
        to strengthen democratic governance, the rule of law, and 
        international cooperation in combating illicit finance, 
        especially by empowering reformers in foreign countries during 
        historic political openings for the establishment of the rule 
        of law in those countries.
            (7) New reformers in foreign countries must act quickly to 
        seize political openings for anti-corruption reform, but as 
        these reformers are often outsiders with little government 
        experience, they may need significant technical assistance to 
        root out deep-seated corruption.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) 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 
        itself, are accountable to laws that are publicly promulgated, 
        equally enforced, and independently adjudicated, and which are 
        consistent with international human rights norms and standards.
            (2) Foreign state.--The term ``foreign state'' has the 
        meaning given such term in section 1603 of title 28, United 
        States Code.
            (3) 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)).
            (4) Public corruption.--The term ``public corruption'' 
        means the unlawful exercise of entrusted public power for 
        private gain, including by bribery, nepotism, fraud, or 
        embezzlement.
            (5) Foreign assistance.--The term ``foreign assistance'' 
        means foreign assistance authorized under the Foreign 
        Assistance Act of 1961.
            (6) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                    (A) the Committee on Foreign Relations, the 
                Committee on Banking, Housing, and Urban Affairs, and 
                the Committee on Finance of the Senate; and
                    (B) the Committee on Foreign Affairs, the Committee 
                on Financial Services, and the Committee on Ways and 
                Means of the House of Representatives.

SEC. 4. INTERNATIONAL STANDARDS.

    It is the sense of Congress that the following international 
standards should be the foundation for foreign states to combat 
corruption, kleptocracy, and illicit finance:
            (1) The United Nations Convention against Corruption.
            (2) Recommendations of the Financial Action Task Force 
        (FATF) comprising the International Standards on Combating 
        Money Laundering and the Financing of Terrorism & 
        Proliferation.
            (3) The Organisation for Economic Co-operation and 
        Development Convention on Combating Bribery of Foreign Public 
        Officials in International Business Transactions (OECD Anti-
        Bribery Convention), the 2009 Recommendation of the Council for 
        Further Combating Bribery, the 2009 Recommendation on the Tax 
        Deductibility of Bribes to Foreign Public Officials; and other 
        related instruments.
            (4) Legal instruments adopted by the Council of Europe and 
        monitored by the Group of States against Corruption (GRECO), 
        including the Criminal Law Convention on Corruption, the Civil 
        Law Convention on Corruption, the Additional Protocol to the 
        Criminal Law Convention on Corruption, the Twenty Guiding 
        Principles against Corruption, the Recommendation on Codes of 
        Conduct for Public Officials, and the Recommendation on Common 
        Rules against Corruption in the Funding of Political Parties 
        and Electoral Campaigns.
            (5) Organization for Security and Cooperation in Europe 
        (OSCE) ``Second Dimension'' commitments on good governance, 
        anti-corruption, anti-money laundering, and related issues.
            (6) The Inter-American Convention Against Corruption under 
        the Organization of American States.

SEC. 5. STATEMENT OF POLICY.

    It is the policy of the United States to--
            (1) leverage United States diplomatic engagement and 
        foreign assistance to promote the rule of law;
            (2) promote the international standards identified in 
        section 4, as well as other relevant international standards 
        and best practices as such standards and practices develop, and 
        to seek the universal adoption and implementation of such 
        standards and practices by foreign states;
            (3) support foreign states in promoting good governance and 
        combating public corruption;
            (4) encourage and assist foreign partner countries to 
        identify and close loopholes in their legal and financial 
        architecture, including the misuse of anonymous shell 
        companies, free trade zones, and other legal structures, that 
        are enabling illicit finance and authoritarian capital to 
        penetrate their financial systems;
            (5) help foreign partner countries to investigate and 
        combat the use of corruption by authoritarian governments, 
        particularly that of Vladimir Putin in Russia, as a tool of 
        malign influence worldwide;
            (6) make use of sanctions authorities, such as the Global 
        Magnitsky Human Rights Accountability Act (enacted as subtitle 
        F of title XII of the National Defense Authorization Act for 
        Fiscal Year 2017 (Public Law 114-328; 22 U.S.C. 2656 note)), to 
        identify and take action against corrupt foreign actors; and
            (7) ensure coordination between the departments and 
        agencies of the United States Government with jurisdiction over 
        the advancement of good governance in foreign states.

SEC. 6. ANTI-CORRUPTION ACTION FUND.

    (a) In General.--The Secretary of State shall establish in the 
Department of State a fund to be known as the ``Anti-Corruption Action 
Fund'' to aid foreign states to prevent and fight public corruption and 
develop rule of law-based governance structures, including accountable 
investigative, prosecutorial, and judicial bodies, and supplement 
existing foreign assistance and diplomacy with respect to such efforts.
    (b) Funding.--An amount equal to five percent of each civil and 
criminal fine and penalty imposed pursuant to actions brought under the 
Foreign Corrupt Practices Act on or after the date of the enactment of 
this Act that would otherwise be deposited in the Treasury of the 
United States shall be deposited in the Anti-Corruption Action Fund 
under subsection (a), to be available without need for subsequent 
appropriation and without fiscal year limitation.
    (c) Support.--The Anti-Corruption Action Fund may support 
governmental and nongovernmental parties in advancing the goals 
specified in subsection (a) and shall be allocated in a manner 
complementary to existing United States foreign assistance, diplomacy, 
and the anti-corruption activities of other international donors.
    (d) Preference.--In programing foreign assistance using the Anti-
Corruption Action Fund, the Secretary of State shall give preference to 
projects that--
            (1) assist countries that are undergoing historic 
        opportunities for democratic transition, combating corruption, 
        and the establishment of the rule of law;
            (2) are important to United States national interests; and
            (3) where United States foreign assistance could 
        significantly increase the chance of a successful transition 
        described in paragraph (1).
    (e) Public Diplomacy.--The Secretary of State shall publicize that 
funds provided to the Anti-Corruption Action Fund originate from 
actions brought under the Foreign Corrupt Practices Act so as to 
demonstrate that monies obtained under such Act are contributing to 
international anti-corruption work under this section, including by 
reducing the pressure that United States businesses face to pay bribes 
overseas, thereby contributing to greater United States 
competitiveness.

SEC. 7. INTERAGENCY TASK FORCE.

    (a) In General.--The Secretary of State shall have primary 
responsibility for managing a whole-of-government effort to improve 
coordination among United States Government departments and agencies, 
as well as with other donor organizations, that have a role in 
promoting good governance in foreign states and enhancing the ability 
of foreign states to combat public corruption.
    (b) Interagency Task Force.--Not later than 180 days after the date 
of the enactment of this Act, the Secretary of State shall establish 
and convene an Interagency Task Force composed of--
            (1) representatives appointed by the President from 
        appropriate departments and agencies, including the Department 
        of State, the United States Agency for International 
        Development (USAID), the Department of Justice, the Department 
        of the Treasury, the Department of Homeland Security, the 
        Department of Defense, the Department of Commerce, the 
        Millennium Challenge Corporation, and the intelligence 
        community; and
            (2) representatives from any other United States Government 
        departments or agencies, as determined by the Secretary.
    (c) Additional Meetings.--The Interagency Task Force established in 
subsection (b) shall meet not less than twice per year.
    (d) Duties.--The Interagency Task Force established in subsection 
(b) shall--
            (1) evaluate, on a general basis, the effectiveness of 
        existing foreign assistance programs, including programs funded 
        by the Anti-Corruption Action Fund under section 6, that have 
        an impact on promoting good governance in foreign states and 
        enhancing the ability of foreign states to combat public 
        corruption;
            (2) assist the Secretary of State in managing the whole-of-
        government effort described in subsection (a);
            (3) identify general areas in which such whole-of-
        government effort could be enhanced; and
            (4) recommend specific programs for foreign states that may 
        be used to enhance such whole-of-government effort.

SEC. 8. DESIGNATION OF EMBASSY ANTI-CORRUPTION POINTS OF CONTACT.

    (a) Embassy Anti-Corruption Point of Contact.--The chief of mission 
of each United States embassy shall designate an anti-corruption point 
of contact for each such embassy.
    (b) Duties.--The designated anti-corruption points of contact under 
subsection (a) shall--
            (1) with guidance from the Interagency Task Force 
        established under section 7, coordinate 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 United States Government departments and agencies with 
        a presence in such foreign states, such as the Department of 
        State, USAID, 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 under section 6 and other foreign 
        assistance related to anti-corruption efforts in their 
        respective foreign states, aligning such assistance with United 
        States diplomatic engagement; and
            (3) ensure that anti-corruption activities carried out 
        within their respective foreign states are included in regular 
        reporting to the Secretary of State and the Interagency Task 
        Force under section 7, 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 designated anti-corruption points of contact 
under this section.

SEC. 9. REPORTING REQUIREMENTS.

    (a) Report on Promoting International Standards in Combating 
Corruption, Kleptocracy, and Illicit Finance.--Not later than 180 days 
after the date of the enactment of this Act, the Secretary of State, in 
consultation with the Administrator of the USAID and the Secretary of 
the Treasury, shall submit to the appropriate congressional committees 
a report that--
            (1) summarizes any progress made by foreign states to adopt 
        and implement each of the international standards in combating 
        corruption, kleptocracy, and illicit finance listed in section 
        4;
            (2) details the efforts of the United States Government to 
        promote such international standards;
            (3) identifies priority countries for outreach regarding 
        such international standards; and
            (4) outlines a plan to encourage the adoption and 
        implementation of such international standards, including 
        specific steps to take with the priority countries identified 
        in accordance with paragraph (3).
    (b) Report on Progress Toward Implementation.--Not later than one 
year after the date of the enactment of this Act and annually 
thereafter for three years, the Secretary of State, in consultation 
with the Administrator of the USAID, shall submit to the appropriate 
congressional committees a report summarizing progress in implementing 
this Act, including--
            (1) a description of the bureaucratic structure of the 
        offices within the Department and USAID that are engaged in 
        activities to combat corruption, kleptocracy, and illicit 
        finance, and how such offices coordinate with one another;
            (2) information relating to the amount of funds deposited 
        in the Anti-Corruption Action Fund established under section 6 
        and the obligation, expenditure, and impact of such funds;
            (3) the activities of the Interagency Task Force 
        established pursuant to section 7(b);
            (4) the designation of anti-corruption points of contact 
        for foreign states pursuant to section 8(a) and any training 
        provided to such points of contact pursuant to section 8(c); 
        and
            (5) additional resources or personnel needs to better 
        achieve the goals of this Act to combat corruption, 
        kleptocracy, and illicit finance overseas.
    (c) Online Platform.--The Secretary of State, in conjunction with 
the Administrator of the USAID, shall consolidate existing reports and 
briefings with anti-corruption components into one online, public 
platform, that includes the following:
            (1) The Annual Country Reports on Human Rights Practices.
            (2) The Fiscal Transparency Report.
            (3) The Investment Climate Statement reports.
            (4) The International Narcotics Control Strategy Report.
            (5) Any other relevant public reports.
            (6) Links to third-party indicators and compliance 
        mechanisms used by the United States Government to inform 
        policy and programming, such as the following:
                    (A) The International Finance Corporation's Doing 
                Business surveys.
                    (B) The International Budget Partnership's Open 
                Budget Index.
                    (C) Multilateral peer review anti-corruption 
                compliance mechanisms, such as the Organisation for 
                Economic Co-operation and Development's Working Group 
                on Bribery in International Business Transactions, the 
                Follow-Up Mechanism for the Inter-American Convention 
                against Corruption (MESICIC), and the United Nations 
                Convention against Corruption, done at New York October 
                31, 2003, to further highlight expert international 
                views on foreign state challenges and efforts.
                                 <all>
```