HR 5344 — Kleptocracy Asset Recovery Rewards Program Act

changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

 NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2021

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SEC. 2. ORGANIZATION OF ACT INTO DIVISIONS; TABLE OF CONTENTS.

 (a) Divisions.--This Act is organized into eight divisions as 
follows:
 (1) * * *

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 (b) Table of Contents.--The table of contents for this Act is 
as follows:

Sec. 1. Short title.
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 DIVISION H--OTHER MATTERS

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 TITLE XCVII--FINANCIAL SERVICES MATTERS

 Subtitle A--Kleptocracy Asset Recovery Rewards Act

Sec. 9701. Short title.
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Sec. 9703. Department of the Treasury [Kleptocracy Asset Recovery 
 Rewards Pilot Program] Kleptocracy Asset Recovery Rewards 
 Program.

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DIVISION H--OTHER MATTERS

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 TITLE XCVII--FINANCIAL SERVICES MATTERS

 Subtitle A--Kleptocracy Asset Recovery Rewards Act

Sec. 9701. Short title.
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Sec. 9703. Department of the Treasury [Kleptocracy Asset Recovery 
 Rewards Pilot Program] Kleptocracy Asset Recovery Rewards 
 Program.
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 Subtitle A--Kleptocracy Asset Recovery Rewards Act

SEC. 9701. SHORT TITLE.

 The subtitle may be cited as the ``Kleptocracy Asset Recovery 
Rewards Act''.

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SEC. 9703. DEPARTMENT OF THE TREASURY [KLEPTOCRACY ASSET RECOVERY 
 REWARDS PILOT PROGRAM.] KLEPTOCRACY ASSET RECOVERY 
 REWARDS PROGRAM.

 (a) Establishment.--
 (1) In general.--There is established in the 
 Department of the Treasury a program to be known as the 
 ``Kleptocracy Asset Recovery Rewards [Pilot] Program'' 
 for the payment of rewards to carry out the purposes of 
 this section.
 (2) Purpose.--The rewards program shall be designed 
 to support U.S. Government programs and investigations 
 aimed at restraining, seizing, forfeiting, or 
 repatriating stolen assets linked to foreign government 
 corruption and the proceeds of such corruption.
 (3) Implementation.--The rewards program shall be 
 administered by the Secretary of the Treasury, with the 
 concurrence of the Secretary of State and the Attorney 
 General, and in consultation, as appropriate, with the 
 heads of such other departments and agencies as the 
 Secretary may find appropriate.
 (b) Rewards Authorized.--The Secretary of the Treasury may, 
with the concurrence of the Secretary of State and the Attorney 
General, and in consultation, as appropriate, with the heads of 
other relevant Federal departments and agencies, pay a reward 
to any individual, if that individual furnishes information 
leading to--
 (1) the restraining or seizure of stolen assets in an 
 account at a U.S. financial institution (including a 
 U.S. branch of a foreign financial institution), that 
 come within the United States, or that come within the 
 possession or control of any United States person;
 (2) the forfeiture of stolen assets in an account at 
 a U.S. financial institution (including a U.S. branch 
 of a foreign financial institution), that come within 
 the United States, or that come within the possession 
 or control of any United States person; or
 (3) where appropriate, the repatriation of stolen 
 assets in an account at a U.S. financial institution 
 (including a U.S. branch of a foreign financial 
 institution), that come within the United States, or 
 that come within the possession or control of any 
 United States person.
 (c) Procedures.--To ensure that the payment of rewards 
pursuant to this section does not duplicate or interfere with 
any other payment authorized by the Department of Justice or 
other Federal agencies for the obtaining of information or 
other evidence, the Secretary of the Treasury, in consultation 
with the Secretary of State, the Attorney General, and the 
heads of such other agencies as the Secretary may find 
appropriate, shall establish procedures for the offering, 
administration, and payment of rewards under this section, 
including procedures for--
 (1) identifying actions with respect to which rewards 
 will be offered;
 (2) the receipt and analysis of data; and
 (3) the payment of rewards and approval of such 
 payments.
 (d) Payment of Rewards.--
 (1) Authorization of appropriations.--For the purpose 
 of paying rewards pursuant to this section, there is 
 authorized to be appropriated--
 (A) $450,000 for fiscal year 2021; and
 (B) for each fiscal year, any amount, not to 
 exceed the amount recovered during the fiscal 
 year in stolen assets described under 
 subsection (b), that the Secretary determines 
 is necessary to carry out this program 
 consistent with this section.
 (2) Limitation on annual payments.--Except as 
 provided under paragraph (3), the total amount of 
 rewards paid pursuant to this section may not exceed 
 $25 million in any calendar year.
 (3) Presidential authority.--The President may waive 
 the limitation under paragraph (2) with respect to a 
 calendar year if the President provides written notice 
 of such waiver to the appropriate committees of the 
 Congress at least 30 days before any payment in excess 
 of such limitation is made pursuant to this section.
 (4) Priority of payments.--In paying any reward under 
 this section, the Secretary shall, to the extent 
 possible, make such reward payment--
 (A) first, from appropriated funds authorized 
 under paragraph (1)(A); and
 (B) second, from appropriated funds 
 authorized under paragraph (1)(B).
 (e) Limitations.--
 (1) Submission of information.--No award may be made 
 under this section based on information submitted to 
 the Secretary unless such information is submitted 
 under penalty of perjury.
 (2) Maximum amount.--No reward paid under this 
 section may exceed $5 million, unless the Secretary--
 (A) personally authorizes such greater amount 
 in writing;
 (B) determines that offer or payment of a 
 reward of a greater amount is necessary due to 
 the exceptional nature of the case; and
 (C) notifies the appropriate committees of 
 the Congress of such determination.
 (3) Approval.--
 (A) In general.--No reward amount may be paid 
 under this section without the written approval 
 of the Secretary, with the concurrence of the 
 Secretary of State and the Attorney General.
 (B) Delegation.--The Secretary may not 
 delegate the approval required under 
 subparagraph (A) to anyone other than an Under 
 Secretary of the Department of the Treasury.
 (4) Protection measures.--If the Secretary determines 
 that the identity of the recipient of a reward or of 
 the members of the recipient's immediate family must be 
 protected, the Secretary shall, consistent with 
 applicable law, take such measures in connection with 
 the payment of the reward as the Secretary considers 
 necessary to effect such protection.
 (5) Forms of reward payment.--The Secretary may make 
 a reward under this section in the form of a monetary 
 payment.
 (f) Ineligibility, Reduction in, or Denial of Reward.--
 (1) Officer and employees.--An officer or employee of 
 any entity of Federal, State, or local government or of 
 a foreign government who, while in the performance of 
 official duties, furnishes information described under 
 subsection (b) shall not be eligible for a reward under 
 this section.
 (2) Participating individuals.--If the claim for a 
 reward is brought by an individual who the Secretary 
 has a reasonable basis to believe knowingly planned, 
 initiated, directly participated in, or facilitated the 
 actions that led to assets of a foreign state or 
 governmental entity being stolen, misappropriated, or 
 illegally diverted or to the payment of bribes or other 
 foreign governmental corruption, the Secretary shall 
 appropriately reduce, and may deny, such award. If such 
 individual is convicted of criminal conduct arising 
 from the role described in the preceding sentence, the 
 Secretary shall deny or may seek to recover any reward, 
 as the case may be.
 (g) Report.--
 (1) In general.--Within 180 days of the enactment of 
 this section, and annually thereafter [for 3 years], 
 the Secretary shall issue a report to the appropriate 
 committees of the Congress--
 (A) detailing to the greatest extent possible 
 the amount, location, and ownership or 
 beneficial ownership of any stolen assets that, 
 on or after the date of the enactment of this 
 section, come within the United States or that 
 come within the possession or control of any 
 United States person;
 (B) discussing efforts being undertaken to 
 identify more such stolen assets and their 
 owners or beneficial owners; and
 (C) including a discussion of the 
 interactions of the Department of the Treasury 
 with the international financial institutions 
 (as defined in section 1701(c)(2) of the 
 International Financial Institutions Act) to 
 identify the amount, location, and ownership, 
 or beneficial ownership, of stolen assets held 
 in financial institutions outside the United 
 States.
 (2) Exception.--The report issued under paragraph (1) 
 shall not include information related to ongoing 
 investigations or information related to closed 
 investigations that would reveal identities of 
 individuals not charged with a criminal offense, would 
 reveal identities of investigative sources or methods, 
 would reveal identities of witnesses, would compromise 
 subsequent investigations, or the disclosure of which 
 is otherwise prohibited by law, the Federal Rules of 
 Criminal Procedure, regulation, or court order.
 (h) Report on Disposition of Recovered Assets.--Within 360 
days of the enactment of this Act, the Secretary of the 
Treasury, with the concurrence of the Secretary of State and 
the Attorney General, shall issue a report to the appropriate 
committees of Congress describing policy choices and 
recommendations for disposition of stolen assets recovered 
pursuant to this section.
 [(i) Sunset of Pilot Program.--The authorities under this 
section, as well as the program established pursuant to this 
section, shall terminate three years after the date of the 
enactment of this Act.]
 (i) Sunset.--This section shall cease to have any force or 
effect after the end of the 7-year period beginning on the date 
of enactment of the Kleptocracy Asset Recovery Rewards Program 
Act.
 (j) Definitions.--For purposes of this section:
 (1) Appropriate committees of the congress.--The term 
 ``appropriate committees of the Congress'' means the 
 Committee on Financial Services of the House of 
 Representatives, the Committee on Banking, Housing, and 
 Urban Affairs of the Senate, the Committee on the 
 Judiciary of the House of Representatives, the 
 Committee on the Judiciary of the Senate, the Committee 
 on Foreign Affairs of the House of Representatives, and 
 the Committee on Foreign Relations of the Senate.
 (2) Financial asset.--The term ``financial asset'' 
 means any funds, investments, or ownership interests, 
 as defined by the Secretary, that on or after the date 
 of the enactment of this section come within the United 
 States or that come within the possession or control of 
 any United States person.
 (3) Foreign government corruption.--The term 
 ``foreign government corruption'' means corruption, as 
 defined by the United Nations Convention Against 
 Corruption.
 (4) Foreign public official.--The term ``foreign 
 public official'' includes any person who occupies a 
 public office by virtue of having been elected, 
 appointed, or employed, including any military, 
 civilian, special, honorary, temporary, or 
 uncompensated official.
 (5) Immediate family member.--The term ``immediate 
 family member'', with respect to an individual, has the 
 meaning given the term ``member of the immediate 
 family'' under section 36(k) of the State Department 
 Basic Authorities Act of 1956 (22 U.S.C. 2708(k)).
 (6) Rewards program.--The term ``rewards program'' 
 means the program established in subsection (a)(1) of 
 this section.
 (7) Secretary.--The term ``Secretary'' means the 
 Secretary of the Treasury.
 (8) Stolen assets.--The term ``stolen assets'' means 
 financial assets within the jurisdiction of the United 
 States, constituting, derived from, or traceable to, 
 any proceeds obtained directly or indirectly from 
 foreign government corruption.

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