Countering Russian and Other Overseas Kleptocracy Act or the CROOK Act
This bill directs the Department of State to take various actions designed to combat public corruption in foreign countries.
The State Department shall establish the Anti-Corruption Action fund to help foreign states fight public corruption and develop rule-of-law-based governance structures. A portion (5%) of fines and penalties imposed under the Foreign Corrupt Practices Act shall be deposited into the fund.
The State Department shall (1) take primary responsibility in managing U.S. government efforts to fight foreign public corruption, and (2) establish an interagency task force to assist in coordinating such efforts.
Each U.S. embassy shall have a point of contact responsible for coordinating the embassy's anti-corruption efforts.
The State Department shall report to Congress on its anti-corruption activities and make various reports publicly available online.
[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>
Introduced in House
Introduced in House
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.
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.
Committee Consideration and Mark-up Session Held.
Ordered to be Reported (Amended) by Unanimous Consent.
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