IIB 

116TH CONGRESS 

1ST SESSION H. R. 389 

IN THE SENATE OF THE UNITED STATES 

MAY 15, 2019 

Received; read twice and referred to the Committee on Banking, Housing, and 

Urban Affairs 

AN ACT 

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 Re5 covery Rewards Act’’. 

6 SEC. 2. FINDINGS; SENSE OF CONGRESS. 

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

8 (1) The Stolen Asset Recovery Initiative 

9 (StAR), a World Bank and United Nations anti10 money-laundering effort, estimates that between $20 

11 billion to $40 billion has been lost to developing 

12 countries annually 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 

17 the 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 

22 corruption and, where appropriate, return those pro23 ceeds to benefit the people harmed by these acts of 

24 corruption and abuse of office. 


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1 (4) Of the $20 billion to $40 billion lost by de2 veloping 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 

9 enforcement, and judicial institutions to aid in the 

10 fight 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 

2 the goal of bringing perpetrators to justice. 

3 (9) None of these existing rewards programs 

4 specifically provide monetary incentives for identi5 fying and recovering stolen assets linked solely to 

6 foreign government corruption, as opposed to crimi7 nal prosecutions 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 

20 to 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 govern24 ment resources to be expended in ways which are 

25 not transparent and may not be necessary or the reVerDate Sep 11 2014 03:07 May 16, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H389.RFS H389

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1 sult of open competition. These corrupt officials 

2 often use the United States and international finan3 cial system to hide their stolen assets and the pro4 ceeds of corruption. 

5 (12) The individuals who come forward to ex6 pose foreign governmental corruption and 

7 kleptocracy often do so at great risk to their own 

8 safety and that of their immediate family members 

9 and face retaliation from persons who exercise for10 eign political or governmental power. Monetary re11 wards can provide a necessary incentive to expose 

12 such corruption and provide a financial means to 

13 provide for their well-being and avoid retribution. 

14 (b) SENSE OF CONGRESS.—It is the sense of Con15 gress that a Department of the Treasury stolen asset re16 covery rewards program to help identify and recover stolen 

17 assets linked to foreign government corruption and the 

18 proceeds of such corruption hidden behind complex finan19 cial structures is needed in order to— 

20 (1) intensify the global fight against corruption; 

21 and 

22 (2) serve United States efforts to identify and 

23 recover such stolen assets, forfeit proceeds of such 

24 corruption, and, where appropriate and feasible, reVerDate Sep 11 2014 03:07 May 16, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H389.RFS H389

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1 turn the stolen assets or proceeds thereof to the 

2 country harmed by the acts of corruption. 

3 SEC. 3. IN GENERAL. 

4 (a) DEPARTMENT OF THE TREASURY KLEPTOCRACY

5 ASSET RECOVERY REWARDS PROGRAM.—Chapter 97 of 

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

7 end the following: 

8 ‘‘§ 9706. Department of the Treasury Kleptocracy 

9 Asset Recovery Rewards Program 

10 ‘‘(a) ESTABLISHMENT.— 

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

12 Department of the Treasury a program to be known 

13 as the ‘Kleptocracy Asset Recovery Rewards Pro14 gram’ for the payment of rewards to carry out the 

15 purposes of this section. 

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

17 designed to support U.S. Government programs and 

18 investigations aimed at restraining, seizing, for19 feiting, or repatriating stolen assets linked to foreign 

20 government corruption and the proceeds of such cor21 ruption. 

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

23 shall be administered by, and at the sole discretion 

24 of, the Secretary of the Treasury, in consultation, as 

25 appropriate, with the Secretary of State, the AttorVerDate Sep 11 2014 03:07 May 16, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H389.RFS H389

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1 ney General, and the heads of such other depart2 ments and agencies as the Secretary may find ap3 propriate. 

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

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

6 the heads of other relevant Federal departments or agen7 cies, the Secretary may pay a reward to any individual, 

8 or to any nonprofit humanitarian organization designated 

9 by such individual, if that individual furnishes information 

10 leading to— 

11 ‘‘(1) the restraining or seizure of stolen assets 

12 in an account at a U.S. financial institution (includ13 ing a U.S. branch of a foreign financial institution), 

14 that come within the United States, or that come 

15 within the possession or control of any United States 

16 person; 

17 ‘‘(2) the forfeiture of stolen assets in an ac18 count at a U.S. financial institution (including a 

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

20 come within the United States, or that come within 

21 the possession or control of any United States per22 son; or 

23 ‘‘(3) where appropriate, the repatriation of sto24 len assets in an account at a U.S. financial institu25 tion (including a U.S. branch of a foreign financial 


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

2 that come within the possession or control of any 

3 United States person. 

4 ‘‘(c) COORDINATION.— 

5 ‘‘(1) PROCEDURES.—To ensure that the pay6 ment of rewards pursuant to this section does not 

7 duplicate or interfere with any other payment au8 thorized by the Department of Justice or other Fed9 eral law enforcement agencies for the obtaining of 

10 information or other evidence, the Secretary of the 

11 Treasury, in consultation with the Secretary of 

12 State, the Attorney General, and the heads of such 

13 other agencies as the Secretary may find appro14 priate, shall establish procedures for the offering, 

15 administration, and payment of rewards under this 

16 section, including procedures for— 

17 ‘‘(A) identifying actions with respect to 

18 which rewards will be offered; 

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

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

21 of such payments. 

22 ‘‘(2) PRIOR APPROVAL OF THE ATTORNEY GEN23 ERAL REQUIRED.—Before making a reward under 

24 this section in a matter over which there is Federal 

25 criminal jurisdiction, the Secretary of the Treasury 


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1 shall obtain the written concurrence of the Attorney 

2 General. 

3 ‘‘(d) PAYMENT OF REWARDS.— 

4 ‘‘(1) AUTHORIZATION OF APPROPRIATIONS.— 

5 For the purpose of paying rewards pursuant to this 

6 section, there is authorized to be appropriated— 

7 ‘‘(A) $450,000 for fiscal year 2020; and 

8 ‘‘(B) for each fiscal year, any amount re9 covered in stolen assets described under sub10 section (b) that the Secretary determines is nec11 essary to carry out this program consistent with 

12 this section. 

13 ‘‘(2) LIMITATION ON ANNUAL PAYMENTS.—Ex14 cept as provided under paragraph (3), the total 

15 amount of rewards paid pursuant to this section 

16 may not exceed $25 million in any calendar year. 

17 ‘‘(3) PRESIDENTIAL AUTHORITY.—The Presi18 dent may waive the limitation under paragraph (2) 

19 with respect to a calendar year if the President pro20 vides written notice of such waiver to the appro21 priate committees of the Congress at least 30 days 

22 before any payment in excess of such limitation is 

23 made pursuant to this section. 

24 ‘‘(4) PAYMENTS TO BE MADE FIRST FROM STO25 LEN ASSET AMOUNTS.—In paying any reward under 


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1 this section, the Secretary shall, to the extent pos2 sible, make such reward payment— 

3 ‘‘(A) first, from appropriated funds au4 thorized under paragraph (1)(B); and 

5 ‘‘(B) second, from appropriated funds au6 thorized under paragraph (1)(A). 

7 ‘‘(e) LIMITATIONS.— 

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

9 may be made under this section based on informa10 tion submitted to the Secretary unless such informa11 tion is submitted under penalty of perjury. 

12 ‘‘(2) MAXIMUM AMOUNT.—No reward paid 

13 under this section may exceed $5 million, unless the 

14 Secretary— 

15 ‘‘(A) personally authorizes such greater 

16 amount in writing; 

17 ‘‘(B) determines that offer or payment of 

18 a reward of a greater amount is necessary due 

19 to the exceptional nature of the case; and 

20 ‘‘(C) notifies the appropriate committees of 

21 the Congress of such determination. 

22 ‘‘(3) APPROVAL.— 

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

24 may be paid under this section without the 

25 written approval of the Secretary. 


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1 ‘‘(B) DELEGATION.—The Secretary may 

2 not delegate the approval required under sub3 paragraph (A) to anyone other than an Under 

4 Secretary of the Department of the Treasury. 

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

6 determines that the identity of the recipient of a re7 ward or of the members of the recipient’s immediate 

8 family must be protected, the Secretary shall take 

9 such measures in connection with the payment of 

10 the reward as the Secretary considers necessary to 

11 effect such protection. 

12 ‘‘(5) FORMS OF REWARD PAYMENT.—The Sec13 retary may make a reward under this section in the 

14 form of a monetary payment. 

15 ‘‘(f) INELIGIBILITY, REDUCTION IN, OR DENIAL OF

16 REWARD.— 

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

18 employee of any entity of Federal, State, or local 

19 government or of a foreign government who, while in 

20 the performance of official duties, furnishes informa21 tion described under subsection (b) shall not be eligi22 ble for a reward under this section. 

23 ‘‘(2) PARTICIPATING INDIVIDUALS.—If the 

24 claim for a reward is brought by an individual who 

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1 ingly planned, initiated, directly participated in, or 

2 facilitated the actions that led to assets of a foreign 

3 state or governmental entity being stolen, misappro4 priated, or illegally diverted or to the payment of 

5 bribes or other foreign governmental corruption, the 

6 Secretary shall appropriately reduce, and may deny, 

7 such award. If such individual is convicted of crimi8 nal conduct arising from the role described in the 

9 preceding sentence, the Secretary shall deny or may 

10 seek to recover any reward, as the case may be. 

11 ‘‘(g) REPORT.— 

12 ‘‘(1) IN GENERAL.—Within 180 days of the en13 actment of this section, and annually thereafter for 

14 5 years, the Secretary shall issue a report to the ap15 propriate committees of the Congress— 

16 ‘‘(A) detailing to the greatest extent pos17 sible the amount, location, and ownership or 

18 beneficial ownership of any stolen assets that, 

19 on or after the date of the enactment of this 

20 section, come within the United States or that 

21 come within the possession or control of any 

22 United States person; 

23 ‘‘(B) discussing efforts being undertaken 

24 to identify more such stolen assets and their 

25 owners or beneficial owners; and 


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1 ‘‘(C) including a discussion of the inter2 actions of the Department of the Treasury with 

3 the international financial institutions (as de4 fined in section 1701(c)(2) of the International 

5 Financial Institutions Act) to identify the 

6 amount, location, and ownership, or beneficial 

7 ownership, of stolen assets held in financial in8 stitutions outside the United States. 

9 ‘‘(2) EXCEPTION FOR ONGOING INVESTIGA10 TIONS.—The report issued under paragraph (1) 

11 shall not include information related to ongoing in12 vestigations. 

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

14 ‘‘(1) APPROPRIATE COMMITTEES OF THE CON15 GRESS.—The term ‘appropriate committees of the 

16 Congress’ means the Committee on Financial Serv17 ices of the House of Representatives and the Com18 mittee on Banking, Housing, and Urban Affairs of 

19 the Senate. 

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

21 asset’ means any funds, investments, or ownership 

22 interests, as defined by the Secretary, that on or 

23 after the date of the enactment of this section come 

24 within the United States or that come within the 

25 possession or control of any United States person. 


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1 ‘‘(3) FOREIGN GOVERNMENT CORRUPTION.— 

2 The term ‘foreign government corruption’ includes 

3 bribery of a foreign public official, or the misappro4 priation, theft, or embezzlement of public funds or 

5 property by or for the benefit of a foreign public of6 ficial. 

7 ‘‘(4) FOREIGN PUBLIC OFFICIAL.—The term 

8 ‘foreign public official’ includes any person who oc9 cupies a public office by virtue of having been elect10 ed, appointed, or employed, including any military, 

11 civilian, special, honorary, temporary, or uncompen12 sated official. 

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

14 ‘immediate family member’, with respect to an indi15 vidual, has the meaning given the term ‘member of 

16 the immediate family’ under section 36(k) of the 

17 State Department Basic Authorities Act of 1956 (22 

18 U.S.C. 2708(k)). 

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

20 program’ means the program established in sub21 section (a)(1) of this section. 

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

23 the Secretary of the Treasury. 

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

25 means financial assets within the jurisdiction of the 


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1 United States, constituting, derived from, or trace2 able to, any proceeds obtained directly or indirectly 

3 from foreign government corruption.’’. 

4 (b) REPORT ON DISPOSITION OF RECOVERED AS5 SETS.—Within 360 days of the enactment of this Act, the 

6 Secretary of the Treasury shall issue a report to the ap7 propriate committees of Congress (as defined under sec8 tion 9706(h) of title 31, United States Code) describing 

9 policy choices and recommendations for disposition of sto10 len assets recovered pursuant to section 9706 of title 31, 

11 United States Code. 

12 (c) TABLE OF CONTENTS AMENDMENT.—The table 

13 of contents for chapter 97 of title 31, United States Code, 

14 is amended by adding at the end the following: 

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

Passed the House of Representatives May 14, 2019. 

Attest: CHERYL L. JOHNSON, 

Clerk. 


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