,i #aafth ,,congress #ast ,session ,h4 ,r4 #chdc ,,in ,,the ,,house ,,of ,,representatives ,july #ah1 #bjai,mr4 ,keating 7for himself1 ,mr4 ,fitzpatrick1 ,mr4 ,hastings1 ,mr4 ,wilson of ,south ,carolina1 ,mr4 ,cohen1 ,mr4 ,aderholt1 ,ms4 ,jackson ,lee1 ,mr4 ,hudson1 ,ms4 ,moore1 ,mr4 ,curtis1 ,mr4 ,suozzi1 and ,mr4 ,malinowski7 introduced the following bill2 which was referred to the ,committee on ,foreign ,affairs1 and in addition to the ,committee on ,financial ,services1 for a period to be subsequently determined by the ,speaker1 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 corruption1 kleptocracy1 and illicit finance by foreign officials and other foreign persons1 including through a new anti-corruption action fund1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,countering ,russian and ,other ,overseas ,kleptocracy ,act or the ,,crook ,act4 #b4 ,findings ,congress finds the following3 7#a7 ,authoritarian leaders in foreign countries abuse their power to steal assets from state institutions1 enrich themselves at the expense of their countries' economic development1 and use corruption as a strategic tool both to solidify their grip on power and to undermine democratic institutions abroad4 7#b7 ,global corruption harms the competitiveness of ,united ,states businesses1 feeds terrorist recruitment and transnational organized crime1 enables drug smuggling and human trafficking1 and stymies economic growth4 7#c7 ,illicit financial flows often inconspicuously penetrate a country through what appears to be legitimate financial transactions1 as kleptocrats launder money1 use shell companies1 amass offshore wealth1 and participate in a global shadow economy4 7#d7 ,the government of ,vladimir ,putin in ,russia is the leading model of this type of foreign kleptocratic system1 using corruption to erode democratic governance from within and discrediting democracy abroad1 thereby strengthening his authoritarian rule4 7#e7 ,russia uses stolen money to-- 7,a7 purchase key assets in other countries1 particularly with a goal of attaining monopolistic control of a sector2 7,b7 gain access to and influence the policies of democratic countries2 and 7,c7 directly fund political parties and organizations that advance ,russian interests in other countries1 particularly those that undermine confidence and trust in democratic systems4 7#f7 ,thwarting these tactics by ,russia and other kleptocratic governments requires the international community to strengthen democratic governance1 the rule of law1 and international cooperation in combating illicit finance1 especially by empowering reformers in foreign countries during historic political openings for the establishment of the rule of law in those countries4 7#g7 ,new reformers in foreign countries must act quickly to seize political openings for anti-corruption reform1 but as these reformers are often outsiders with little government experience1 they may need significant technical assistance to root out deep-seated corruption4 #c4 ,definitions ,in this ,act3 7#a7 ,rule of law ,the term rule of law means the principle of governance in which all persons1 institutions1 and entities1 whether public or private1 including the state itself1 are accountable to laws that are publicly promulgated1 equally enforced1 and independently adjudicated1 and which are consistent with international human rights norms and standards4 7#b7 ,foreign state ,the term foreign state has the meaning given such term in section #afjc of title #bh1 ,united ,states ,code4 7#c7 ,intelligence community ,the term intelligence community has the meaning given such term in section #c7d7 of the ,national ,security ,act of #aidg 7#ej ,u4,s4,c4 #cjjc7d774 7#d7 ,public corruption ,the term public corruption means the unlawful exercise of entrusted public power for private gain1 including by bribery1 nepotism1 fraud1 or embezzlement4 7#e7 ,foreign assistance ,the term foreign assistance means foreign assistance authorized under the ,foreign ,assistance ,act of #aifa4 7#f7 ,appropriate congressional committees ,the term appropriate congressional committees means-- 7,a7 the ,committee on ,foreign ,relations1 the ,committee on ,banking1 ,housing1 and ,urban ,affairs1 and the ,committee on ,finance of the ,senate2 and 7,b7 the ,committee on ,foreign ,affairs1 the ,committee on ,financial ,services1 and the ,committee on ,ways and ,means of the ,house of ,representatives4 #d4 ,international standards ,it is the sense of ,congress that the following international standards should be the foundation for foreign states to combat corruption1 kleptocracy1 and illicit finance3 7#a7 ,the ,united ,nations ,convention against ,corruption4 7#b7 ,recommendations of the ,financial ,action ,task ,force 7,,fatf7 comprising the ,international ,standards on ,combating ,money ,laundering and the ,financing of ,terrorism ,proliferation4 7#c7 ,the ,organisation for ,economic ,co-operation and ,development ,convention on ,combating ,bribery of ,foreign ,public ,officials in ,international ,business ,transactions 7,,oecd ,anti-,bribery ,convention71 the #bjji ,recommendation of the ,council for ,further ,combating ,bribery1 the #bjji ,recommendation on the ,tax ,deductibility of ,bribes to ,foreign ,public ,officials2 and other related instruments4 7#d7 ,legal instruments adopted by the ,council of ,europe and monitored by the ,group of ,states against ,corruption 7,,greco71 including the ,criminal ,law ,convention on ,corruption1 the ,civil ,law ,convention on ,corruption1 the ,additional ,protocol to the ,criminal ,law ,convention on ,corruption1 the ,twenty ,guiding ,principles against ,corruption1 the ,recommendation on ,codes of ,conduct for ,public ,officials1 and the ,recommendation on ,common ,rules against ,corruption in the ,funding of ,political ,parties and ,electoral ,campaigns4 7#e7 ,organization for ,security and ,cooperation in ,europe 7,,osce7 ,second ,dimension commitments on good governance1 anti-corruption1 anti-money laundering1 and related issues4 7#f7 ,the ,inter-,american ,convention ,against ,corruption under the ,organization of ,american ,states4 #e4 ,statement of policy ,it is the policy of the ,united ,states to-- 7#a7 leverage ,united ,states diplomatic engagement and foreign assistance to promote the rule of law2 7#b7 promote the international standards identified in section #d1 as well as other relevant international standards and best practices as such standards and practices develop1 and to seek the universal adoption and implementation of such standards and practices by foreign states2 7#c7 support foreign states in promoting good governance and combating public corruption2 7#d7 encourage and assist foreign partner countries to identify and close loopholes in their legal and financial architecture1 including the misuse of anonymous shell companies1 free trade zones1 and other legal structures1 that are enabling illicit finance and authoritarian capital to penetrate their financial systems2 7#e7 help foreign partner countries to investigate and combat the use of corruption by authoritarian governments1 particularly that of ,vladimir ,putin in ,russia1 as a tool of malign influence worldwide2 7#f7 make use of sanctions authorities1 such as the ,global ,magnitsky ,human ,rights ,accountability ,act 7enacted as subtitle ,f of title ,,xii of the ,national ,defense ,authorization ,act for ,fiscal ,year #bjag 7,public ,law #aad-cbh2 #bb ,u4,s4,c4 #bfef note771 to identify and take action against corrupt foreign actors2 and 7#g7 ensure coordination between the departments and agencies of the ,united ,states ,government with jurisdiction over the advancement of good governance in foreign states4 #f4 ,anti-corruption action fund 7a7 ,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 structures1 including accountable investigative1 prosecutorial1 and judicial bodies1 and supplement existing foreign assistance and diplomacy with respect to such efforts4 7b7 ,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 7a71 to be available without need for subsequent appropriation and without fiscal year limitation4 7c7 ,support ,the ,anti-,corruption ,action ,fund may support governmental and nongovernmental parties in advancing the goals specified in subsection 7a7 and shall be allocated in a manner complementary to existing ,united ,states foreign assistance1 diplomacy1 and the anti-corruption activities of other international donors4 7d7 ,preference ,in programing foreign assistance using the ,anti-,corruption ,action ,fund1 the ,secretary of ,state shall give preference to projects that-- 7#a7 assist countries that are undergoing historic opportunities for democratic transition1 combating corruption1 and the establishment of the rule of law2 7#b7 are important to ,united ,states national interests2 and 7#c7 where ,united ,states foreign assistance could significantly increase the chance of a successful transition described in paragraph 7#a74 7e7 ,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 section1 including by reducing the pressure that ,united ,states businesses face to pay bribes overseas1 thereby contributing to greater ,united ,states competitiveness4 #g4 ,interagency task force 7a7 ,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 agencies1 as well as with other donor organizations1 that have a role in promoting good governance in foreign states and enhancing the ability of foreign states to combat public corruption4 7b7 ,interagency task force ,not later than #ahj days after the date of the enactment of this ,act1 the ,secretary of ,state shall establish and convene an ,interagency ,task ,force composed of-- 7#a7 representatives appointed by the ,president from appropriate departments and agencies1 including the ,department of ,state1 the ,united ,states ,agency for ,international ,development 7,,usaid71 the ,department of ,justice1 the ,department of the ,treasury1 the ,department of ,homeland ,security1 the ,department of ,defense1 the ,department of ,commerce1 the ,millennium ,challenge ,corporation1 and the intelligence community2 and 7#b7 representatives from any other ,united ,states ,government departments or agencies1 as determined by the ,secretary4 7c7 ,additional meetings ,the ,interagency ,task ,force established in subsection 7b7 shall meet not less than twice per year4 7d7 ,duties ,the ,interagency ,task ,force established in subsection 7b7 shall-- 7#a7 evaluate1 on a general basis1 the effectiveness of existing foreign assistance programs1 including programs funded by the ,anti-,corruption ,action ,fund under section #f1 that have an impact on promoting good governance in foreign states and enhancing the ability of foreign states to combat public corruption2 7#b7 assist the ,secretary of ,state in managing the whole-of-government effort described in subsection 7a72 7#c7 identify general areas in which such whole-of-government effort could be enhanced2 and 7#d7 recommend specific programs for foreign states that may be used to enhance such whole-of-government effort4 #h4 ,designation of embassy anti-corruption points of contact 7a7 ,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 embassy4 7b7 ,duties ,the designated anti-corruption points of contact under subsection 7a7 shall-- 7#a7 with guidance from the ,interagency ,task ,force established under section #g1 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 states1 including all relevant ,united ,states ,government departments and agencies with a presence in such foreign states1 such as the ,department of ,state1 ,,usaid1 the ,department of ,justice1 the ,department of the ,treasury1 the ,department of ,homeland ,security1 the ,department of ,defense1 the ,millennium ,challenge ,corporation1 and the intelligence community2 7#b7 make recommendations regarding the use of the ,anti-,corruption ,action ,fund under section #f and other foreign assistance related to anti-corruption efforts in their respective foreign states1 aligning such assistance with ,united ,states diplomatic engagement2 and 7#c7 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 #g1 including ,united ,states embassy strategic planning documents and foreign assistance-related reporting1 as appropriate4 7c7 ,training ,the ,secretary of ,state shall develop and implement appropriate training for designated anti-corruption points of contact under this section4 #i4 ,reporting requirements 7a7 ,report on promoting international standards in combating corruption1 kleptocracy1 and illicit finance ,not later than #ahj days after the date of the enactment of this ,act1 the ,secretary of ,state1 in consultation with the ,administrator of the ,,usaid and the ,secretary of the ,treasury1 shall submit to the appropriate congressional committees a report that-- 7#a7 summarizes any progress made by foreign states to adopt and implement each of the international standards in combating corruption1 kleptocracy1 and illicit finance listed in section #d2 7#b7 details the efforts of the ,united ,states ,government to promote such international standards2 7#c7 identifies priority countries for outreach regarding such international standards2 and 7#d7 outlines a plan to encourage the adoption and implementation of such international standards1 including specific steps to take with the priority countries identified in accordance with paragraph 7#c74 7b7 ,report on progress toward implementation ,not later than one year after the date of the enactment of this ,act and annually thereafter for three years1 the ,secretary of ,state1 in consultation with the ,administrator of the ,,usaid1 shall submit to the appropriate congressional committees a report summarizing progress in implementing this ,act1 including-- 7#a7 a description of the bureaucratic structure of the offices within the ,department and ,,usaid that are engaged in activities to combat corruption1 kleptocracy1 and illicit finance1 and how such offices coordinate with one another2 7#b7 information relating to the amount of funds deposited in the ,anti-,corruption ,action ,fund established under section #f and the obligation1 expenditure1 and impact of such funds2 7#c7 the activities of the ,interagency ,task ,force established pursuant to section #g7;b72 7#d7 the designation of anti-corruption points of contact for foreign states pursuant to section #h7;a7 and any training provided to such points of contact pursuant to section #h7;c72 and 7#e7 additional resources or personnel needs to better achieve the goals of this ,act to combat corruption1 kleptocracy1 and illicit finance overseas4 7c7 ,online platform ,the ,secretary of ,state1 in conjunction with the ,administrator of the ,,usaid1 shall consolidate existing reports and briefings with anti-corruption components into one online1 public platform1 that includes the following3 7#a7 ,the ,annual ,country ,reports on ,human ,rights ,practices4 7#b7 ,the ,fiscal ,transparency ,report4 7#c7 ,the ,investment ,climate ,statement reports4 7#d7 ,the ,international ,narcotics ,control ,strategy ,report4 7#e7 ,any other relevant public reports4 7#f7 ,links to third-party indicators and compliance mechanisms used by the ,united ,states ,government to inform policy and programming1 such as the following3 7,a7 ,the ,international ,finance ,corporation's ,doing ,business surveys4 7,b7 ,the ,international ,budget ,partnership's ,open ,budget ,index4 7,c7 ,multilateral peer review anti-corruption compliance mechanisms1 such as the ,organisation for ,economic ,co-operation and ,development's ,working ,group on ,bribery in ,international ,business ,transactions1 the ,follow-,up ,mechanism for the ,inter-,american ,convention against ,corruption 7,,mesicic71 and the ,united ,nations ,convention against ,corruption1 done at ,new ,york ,october #ca1 #bjjc1 to further highlight expert international views on foreign state challenges and efforts4