,,ii #aadth ,,congress #b;d ,session ,s4 #cbaj ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,july #ad1 #bjaf ,mr4 ,cardin introduced the following bill2 which was read twice and referred to the ,committee on ,foreign ,relations ,a ,,bill ,to identify and combat corruption in countries1 to establish a tiered system of countries with respect to levels of corruption by their governments and their efforts to combat such corruption1 and to assess ,united ,states assistance to designated countries in order to advance anti-corruption efforts in those countries and better serve ,united ,states taxpayers4 #a4 ,short title ,this ,act may be cited as the ,combating ,global ,corruption and ,ensuring ,accountability ,act of #bjaf4 #b4 ,findings and purposes 7a7 ,findings ,congress finds the following3 7#a7 ,corruption erodes trust and confidence in democratic institutions1 the rule of law1 and human rights protections4 7#b7 ,highly corrupt governments deliberately weaken state institutions1 especially those associated with democratic accountability1 in order to improve their chances of remaining in power4 7#c7 ,a direct correlation exists between highly corrupt governments and human rights abuses within countries ruled by such governments4 7#d7 ,corruption-- 7,a7 frustrates the ability of the ,united ,states to combat terrorism2 7,b7 helps to foster the conditions for violent extremism2 and 7,c7 endangers national and international security4 7#e7 ,corruption damages ,united ,states competitiveness globally and creates barriers to economic growth overseas4 7#f7 ,anti-corruption measures are instrumental in protecting human rights and achieving sustainable economic growth1 which benefits a country's citizens and the international community through the creation of open and transparent markets4 7#g7 ,eliminating corruption requires greater transparency and accountability and effective civilian oversight4 7#h7 ,deterring corruption requires the credible threat of prosecution to deter corrupt public servants from abusing their authority with impunity for political or financial gains1 in collusion with private entities4 7#i7 ,the ,united ,states is a signatory to the ,united ,nations ,convention ,against ,corruption1 having ratified the treaty on ,october #cj1 #bjjf4 7#aj7 ,united ,states foreign assistance could be used to encourage actors within highly corrupt countries to support a more inclusive1 just1 and democratic political and economic system that ultimately contributes to regional stability1 credible and legitimate ,united ,states partners1 and markets for goods produced in the ,united ,states4 7#aa7 ,preventing corruption requires implementing democracy and governance programs within countries receiving ,united ,states foreign assistance1 including-- 7,a7 anti-corruption training2 7,b7 anti-corruption technical assistance to national human rights institutions2 7,c7 support for civilian anti-corruption oversight capabilities2 7,d7 the development of anti-corruption legal mechanisms2 and 7,e7 increased asset recovery and auditing capabilities4 7#ab7 ,poorly directed foreign assistance could inadvertently contribute to exclusive political and economic systems that-- 7,a7 contribute to insecurity within the countries receiving such assistance2 7,b7 stymie their citizens' democratic and economic aspirations2 7,c7 discourage a free press and civil society2 and 7,d7 impede ,united ,states foreign policy goals4 7#ac7 ,effective corruption risk assessment and analysis before1 during1 and after the provision of foreign assistance is a key element for reducing and eliminating corruption4 7#ad7 ,comprehensive and timely data on foreign assistance programs is the first step to greater accountability and scrutiny by donor institutions1 recipient states1 and civil society4 7#ae7 ,foreign assistance provided to the security sector of a foreign country is not effective at strengthening weak defense and security forces unless it is properly provided and closely monitored for corruption1 including diversion and misuse4 7b7 ,purposes ,the purposes of this ,act are-- 7#a7 to combat corruption in countries by requiring the ,secretary of ,state to establish and report on corruption in such countries and the efforts of the governments of such countries in combating such corruption2 7#b7 to assess ,united ,states foreign assistance to designated countries based on the corruption reports2 and 7#c7 to improve the transparency and accountability of ,united ,states foreign assistance4 #c4 ,definitions ,in this ,act3 7#a7 ,appropriate congressional committees ,the term appropriate congressional committees means-- 7,a7 the ,committee on ,foreign ,relations of the ,senate2 7,b7 the ,committee on ,armed ,services of the ,senate2 7,c7 the ,committee on ,foreign ,affairs of the ,house of ,representatives2 and 7,d7 the ,committee on ,armed ,services of the ,house of ,representatives4 7#b7 ,corrupt actor ,the term corrupt actor means-- 7,a7 any foreign person or entity that is a government official or government entity responsible for1 or complicit in-- 7i7 ordering or otherwise directing acts of significant corruption2 or 7ii7 facilitating or transferring the proceeds of corruption to foreign jurisdictions2 or 7,b7 any company1 in which a person or entity described in subparagraph 7,a7 has a significant stake1 which is complicit in-- 7i7 directing or participating in significant corruption2 or 7ii7 facilitating or transferring the proceeds of corruption to foreign jurisdictions4 7#c7 ,corruption ,the term corruption means the extent to which public power is exercised for private gain1 including by bribery1 nepotism1 fraud1 or embezzlement4 7#d7 ,foreign assistance ,the term foreign assistance means-- 7,a7 aid given by the ,united ,states ,government to other countries-- 7i7 to support global peace1 security1 government capacity-building1 democracy1 and development efforts2 or 7ii7 to provide humanitarian relief during times of crisis2 and 7,b7 programs authorized under title #aj1 ,united ,states ,code1 or under any ,act of ,congress that has been placed in title #bb1 ,united ,states ,code1 that provide funds1 military training or education1 or military equipment1 weaponry1 or services to another country for its military forces and security forces1 including police and paramilitary forces4 7#e7 ,grand corruption ,the term grand corruption means corruption committed at a high level of government that-- 7,a7 distorts policies or the central functioning of the country2 and 7,b7 enables leaders to benefit at the expense of the public good4 7#f7 ,petty corruption ,the term petty corruption means the abuse of entrusted power by low- and mid-level public officials in their interactions with ordinary citizens4 #d4 ,annual report and tiered ranking system 7a7 ,annual report ,to ensure the transparency1 accountability1 and effectiveness of ,united ,states foreign assistance programs1 not later than ,june #a of each year1 the ,secretary of ,state shall submit a report to the appropriate congressional committees that-- 7#a7 describes the status of corruption in foreign countries2 7#b7 includes an assessment of the efforts by the government of each country to combat corruption1 including identifying which countries are meeting the minimum standards for the elimination of corruption set forth in section #e1 using an appropriate index or indices for measuring corruption2 and 7#c7 describes the status of each country's active membership in voluntary multisectoral global governance initiatives as evidence of the country's government-led efforts to combat corruption4 7b7 ,publication of tiered ranking list 7#a7 ,in general ,the ,secretary of ,state shall annually publish1 on a publicly accessible website1 a tiered ranking that includes all countries whose governments do not fully comply with the minimum standards set forth in section #e4 7#b7 ,tier #a countries ,a country included in the ranking published under paragraph 7#a7 shall be ranked as a tier #a country if the government of such country is making serious and sustained efforts to comply with the minimum standards set forth in section #e4 7#c7 ,tier #b countries ,a country included in the ranking published under paragraph 7#a7 shall be ranked as a tier #b country if the government of such country is making significant efforts to comply with the minimum standards set forth in section #e4 7#d7 ,tier #c countries ,a country included in the ranking published under paragraph 7#a7 shall be ranked as a tier #c country if the government of such country is making minimal efforts to comply with the minimum standards set forth in section #e4 7#e7 ,tier #d countries ,a country included in the ranking published under paragraph 7#a7 shall be ranked as a tier #d country if the government of such country is making de minimis or no efforts to comply with the minimum standards set forth in section #e4 #e4 ,minimum standards for the elimination of corruption and assessment of efforts to combat corruption 7a7 ,in general ,the government of a country is complying with the minimum standards for the elimination of corruption if the government-- 7#a7 has enacted laws and established government structures1 policies1 and practices that prohibit corruption1 including grand corruption and petty corruption2 7#b7 enforces the laws described in paragraph 7#a7 by punishing any person who is found1 through a fair judicial process1 to have violated such laws2 7#c7 prescribes punishment for grand corruption that is commensurate with the punishment prescribed for serious crimes2 7#d7 prescribes punishment for petty corruption that-- 7,a7 provides a sufficiently stringent deterrent2 and 7,b7 adequately reflects the nature of the offense2 and 7#e7 is making serious and sustained efforts to eliminate corruption4 7b7 ,factors for assessing government efforts ,to combat corruption ,in assessing a government's efforts ,to combat corruption1 the ,secretary of ,state shall consider-- 7#a7 whether the government of the country vigorously investigates and prosecutes acts of corruption and convicts and sentences persons responsible for such acts that take place wholly or partly within such country1 including1 as appropriate1 requiring incarceration of individuals convicted of such acts2 7#b7 whether the government of the country has adopted measures to prevent corruption1 such as measures to inform and educate the public1 including potential victims1 about the causes and consequences of corruption2 7#c7 whether government authorities in the country participate in1 facilitate1 or condone corruption2 7#d7 what steps the government of the country has taken to prohibit government officials from participating in1 facilitating1 or condoning corruption1 including the investigation1 prosecution1 and conviction of such officials2 7#e7 which government authorities in the country are involved in activities to combat corruption2 7#f7 the extent to which the country provides access1 or1 as appropriate1 makes adequate resources available1 to civil society organizations and other institutions to combat corruption1 including reporting1 investigating1 and monitoring2 7#g7 what steps the government of the country has taken to prohibit nongovernment individuals from participating in corruption1 including-- 7,a7 the investigation1 prosecution1 and conviction of individuals involved in corruption2 7,b7 the criminal and civil penalties for corruption2 and 7,c7 the efficacy of the penalties referred to in subparagraph 7,b7 in eliminating or reducing corruption2 7#h7 whether there is an independent judiciary or judicial body in the country responsible for1 and effectively capable of1 deciding corruption cases impartially1 on the basis of facts and in accordance with the law1 without any restrictions1 improper influences1 inducements1 pressures1 threats1 or interferences1 direct or indirect1 from any quarter or for any reason2 7#i7 whether the government of the country vigorously investigates1 prosecutes1 convicts1 and sentences public officials who participate in or facilitate corruption1 including nationals of the country who are deployed in foreign military assignments1 trade delegations abroad1 or other similar missions1 who engage in or facilitate severe forms of corruption2 7#aj7 whether the government of the country-- 7,a7 is cooperating with governments of other countries to extradite corrupt actors when requested2 or 7,b7 to the extent that such cooperation would be inconsistent with the laws of such country or with extradition treaties to which such country is a party1 is taking all appropriate measures to modify or replace such laws and treaties so as to permit such cooperation2 7#aa7 whether the government of the country is assisting in international investigations of transnational corruption networks and in other cooperative efforts to combat grand corruption2 7#ab7 whether the government of the country recognizes the rights of victims of corruption and ensures their access to justice2 7#ac7 the steps taken by the government of the country to assist victims of corruption1 including efforts to prevent victims from being further victimized or persecuted by corrupt actors1 government officials1 or others2 7#ad7 whether the government of the country refrains from prosecuting victims of corruption or whistleblowers due to such persons having assisted in exposing corruption1 and refrains from other discriminatory treatment of such persons2 7#ae7 whether the government of the country1 consistent with the capacity of such government-- 7,a7 systematically monitors its efforts to satisfy the criteria described in paragraphs 7#a7 through 7#ab72 and 7,b7 makes publicly available a periodic assessment of such efforts2 and 7#af7 such other information relating to corruption as the ,secretary of ,state considers appropriate4 #f4 ,transparency and accountability 7a7 ,in general ,notwithstanding any other provision of law1 prior to obligation by any ,united ,states agency of foreign assistance1 except acute humanitarian and disaster assistance1 to a country ranked as a tier #c or tier #d country under section #d7;b71 the ,secretary of ,state1 in coordination with the ,administrator of the ,united ,states ,agency for ,international ,development 7,,usaid7 and the ,secretary of ,defense1 as appropriate1 shall-- 7#a7 conduct a corruption risk assessment and create a corruption mitigation strategy for all ,united ,states foreign assistance programs to that country2 7#b7 require the inclusion of anti-corruption clauses for all foreign assistance contracts1 grants1 and cooperative agreements1 which allow for the termination of the contract1 grant1 or cooperative agreement without penalty if credible indicators of corruption are discovered2 7#c7 require the inclusion of appropriate clawback clauses for all foreign assistance contracts1 grants1 and cooperative agreements to recover ,united ,states taxpayer funds that have been misappropriated from the prime contractor1 grantee1 or cooperative agreement participant through corruption2 7#d7 require the disclosure of the beneficial ownership of all contractors1 subcontractors1 grantees1 cooperative agreement participants1 and other organizations receiving funding from the ,united ,states ,government for foreign assistance programs2 and 7#e7 establish a mechanism for investigating allegations of misappropriated foreign assistance funds or equipment4 7b7 ,additional requirements ,in meeting the requirements under subsection 7a7 and overseeing the implementation of foreign assistance programs in ,tier #c and ,tier #d countries1 the ,secretary of ,state1 in coordination with the ,administrator of ,,usaid and the ,secretary of ,defense1 as appropriate1 shall consider-- 7#a7 implementing appropriate safeguards to ensure that disclosure of information about award recipients does not create additional security risks for those operating in restrictive environments2 7#b7 the need to respond in a timely manner to programmatic needs and prevent significant delays in the obligation of foreign assistance funding1 which could disrupt the implementation of programs and reduce program effectiveness2 7#c7 programming foreign assistance resources1 including democracy1 rights1 and governance assistance1 based on need1 foreign policy1 and development priorities1 strategic planning1 and where assistance can be most effective2 and 7#d7 criteria for making a recommendation regarding the termination of any contracts1 grants1 or cooperative agreements determined to be associated with corruption and criminality4 7c7 ,strategy for incorporating corruption risk assessments ,in order to ensure meaningful follow-through on the ,united ,states ,government's recent commitment to strengthen attention to anti-corruption in security cooperation and the provision of security assistance at the ,united ,global ,anti-,corruption ,summit1 the ,secretary of ,state and the ,secretary of ,defense1 not later than #ahj days after the date of the enactment of this ,act1 shall submit a strategy to the appropriate congressional committees that details-- 7#a7 how the ,united ,states ,government will incorporate corruption risk assessments during security sector assistance with foreign security forces2 and 7#b7 how security sector assistance will improve security sector governance1 as appropriate4 #g4 ,resources and reporting requirements 7a7 ,annual report 7#a7 ,in general ,the ,secretary of ,state shall submit an annual report to the appropriate congressional committees that outlines the resources needed to meet the objectives and reports under sections #d through #f1 including-- 7,a7 intelligence data collection needs2 7,b7 personnel needs2 7,c7 information technology requirements2 and 7,d7 a description of the bureaucratic structure of the offices within the ,department of ,state and ,,usaid that are engaged in anti-corruption activities4 7#b7 ,form ,the report submitted under paragraph 7#a7 shall be submitted in unclassified form1 but may include a classified annex4 7b7 ,online platform ,the ,secretary of ,state and the ,administrator of ,,usaid shall consolidate existing reports with anti-corruption components into one online1 public platform1 which shall-- 7#a7 include-- 7,a7 the ,human ,rights ,report2 7,b7 the ,fiscal ,transparency ,report2 7,c7 the ,investment ,climate ,statement reports2 7,d7 the ,international ,narcotics ,control ,strategy ,report2 and 7,e7 any other relevant public reports2 7#b7 link to third-party indicators used by the ,united ,states ,government to inform policy and programming1 such as-- 7,a7 the ,world ,bank ,control of ,corruption indicator2 7,b7 the ,world ,bank's ,actionable ,governance ,index ,data ,portal2 7,c7 the ,international ,finance ,corporation's ,doing ,business surveys2 7,d7 the ,international ,budget ,partnership's ,open ,budget ,index2 7,e7 the ,global ,integrity ,index2 and 7,f7 multilateral peer review anti-corruption compliance mechanisms1 such as the ,,oecd ,working ,group on ,bribery and ,united ,nations ,convention ,against ,corruption1 to further highlight expert international views on country challenges and country efforts4 7c7 ,training ,to increase the ability of ,department of ,state and ,,usaid personnel to support anti-corruption as a foreign policy and development priority1 and strengthen their ability to design1 implement1 and evaluate more effective anti-corruption programming around the world1 including enhanced skills to better evaluate and mitigate corruption risks in assistance programs1 the ,secretary of ,state and the ,administrator of ,,usaid shall incorporate anti-corruption components into existing ,foreign ,service and ,civil ,service training courses4 #h4 ,sense of ,congress on corruption and beneficial ownership ,it is the sense of ,congress that identifying the true beneficial owners of companies formed in the ,united ,states or abroad1 and property that has been removed from a country in connection with corrupt activities by corrupt leaders or other corrupt actors1 is an important part of combating corruption1 and the ,president should develop a comprehensive approach to requiring such beneficial ownership information for companies formed in the ,united ,states or abroad1 and intensify cooperative efforts with ,u4,s4 allies toward those ends4