H.R. 3843 (116^th): Countering Russian and Other Overseas Kleptocracy Act

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.

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.

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.

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.

Russia uses stolen money to—

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.

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.

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.

Foreign state

The term foreign state has the meaning given such term in section 1603 of title 28, United States Code.

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)).

Public corruption

The term public corruption means the unlawful exercise of entrusted public power for private gain, including by bribery, nepotism, fraud, or embezzlement.

Foreign assistance

The term foreign assistance means foreign assistance authorized under the Foreign Assistance Act of 1961.

Appropriate congressional committees

The term appropriate congressional committees means—

The United Nations Convention against Corruption.

Recommendations of the Financial Action Task Force (FATF) comprising the International Standards on Combating Money Laundering and the Financing of Terrorism & Proliferation.

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.

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.

Organization for Security and Cooperation in Europe (OSCE) Second Dimension commitments on good governance, anti-corruption, anti-money laundering, and related issues.

The Inter-American Convention Against Corruption under the Organization of American States.

leverage United States diplomatic engagement and foreign assistance to promote the rule of law;

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;

support foreign states in promoting good governance and combating public corruption;

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;

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;

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

ensure coordination between the departments and agencies of the United States Government with jurisdiction over the advancement of good governance in foreign states.