Guatemala Rule of Law Accountability Act

I 116TH CONGRESS 1ST SESSION H. R. 1630 To impose sanctions under the Global Magnitsky Human Rights Account- ability Act to combat corruption, money laundering, and impunity in Guatemala, and for other purposes. IN THE HOUSE OF REPRESENTATIVES MARCH 7, 2019 Mrs. TORRES of California (for herself, Mr. MCGOVERN, Mr. LOWENTHAL, Ms. OMAR, Ms. HAALAND, Mr. RUSH, Mr. CICILLINE, Mr. POCAN, Mr. LEVIN of Michigan, Mr. HIMES, Mr. RASKIN, Ms. LEE of California, Mr. BLUMENAUER, Mr. ESPAILLAT, Mr. HUFFMAN, Mrs. NAPOLITANO, Ms. NORTON, Mr. BEYER, Mrs. WATSON COLEMAN, Mr. JOHNSON of Geor- gia, Mr. GALLEGO, Mr. DEFAZIO, and Mr. COHEN) introduced the fol- lowing bill; which was referred to the Committee on Foreign Affairs, and in addition to the Committee on the Judiciary, for a period to be subse- quently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To impose sanctions under the Global Magnitsky Human Rights Accountability Act to combat corruption, money laundering, and impunity in Guatemala, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 VerDate Sep 11 2014 23:07 Mar 21, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H1630.IH H1630 kjohnson on DSK79L0C42 with BILLS 2 •HR 1630 IH SECTION 1. SHORT TITLE. 1 This Act may be cited as the ‘‘Guatemala Rule of 2 Law Accountability Act’’. 3 SEC. 2. DEFINITIONS. 4 In this Act: 5 (1) APPROPRIATE CONGRESSIONAL COMMIT- 6 TEES.—The term ‘‘appropriate congressional com- 7 mittees’’ means— 8 (A) the Committee on Foreign Relations 9 and the Committee on Appropriations of the 10 Senate; and 11 (B) the Committee on Foreign Affairs and 12 the Committee on Appropriations of the House 13 of Representatives. 14 (2) FOREIGN PERSON.—The term ‘‘foreign per- 15 son’’ means a person that is not a United States 16 person. 17 (3) KNOWINGLY.—The term ‘‘knowingly’’, with 18 respect to conduct, a circumstance, or a result, 19 means that a person has actual knowledge, or should 20 have known, of the conduct, the circumstance, or the 21 result. 22 (4) UNITED STATES PERSON.—The term 23 ‘‘United States person’’ means— 24 (A) a natural person who is a citizen or 25 resident of the United States or a national of 26 VerDate Sep 11 2014 23:07 Mar 21, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1630.IH H1630 kjohnson on DSK79L0C42 with BILLS 3 •HR 1630 IH the United States (as such term is defined in 1 section 101(a) of the Immigration and Nation- 2 ality Act (8 U.S.C. 1101(a))); or 3 (B) an entity that is organized under the 4 laws of the United States or any jurisdiction 5 within the United States. 6 SEC. 3. FINDINGS. 7 Congress makes the following findings: 8 (1) The Department of State’s 2018 Inter- 9 national Narcotics Control Strategy Report stated 10 that, in Guatemala, ‘‘widespread corruption per- 11 meates public and private institutions and exacer- 12 bates the country’s security, governmental, and eco- 13 nomic challenges’’. 14 (2) The same report, discussing money laun- 15 dering in Guatemala, noted that ‘‘[d]rug trafficking 16 is a major source of illicit funds. Other sources in- 17 clude corruption, extortion, human trafficking, com- 18 merce of other illicit goods, and tax evasion. Money 19 is laundered primarily through real estate, ranching, 20 and the gaming industry. It is also laundered 21 through a series of small transactions below the U.S. 22 $10,000 reporting requirement, either in small 23 banks along the Guatemala-Mexico border, or by 24 travelers carrying cash to other countries’’. 25 VerDate Sep 11 2014 23:07 Mar 21, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H1630.IH H1630 kjohnson on DSK79L0C42 with BILLS 4 •HR 1630 IH (3) On August 10, 2018, Guatemala’s Attorney 1 General filed a request before the Supreme Court of 2 Guatemala to remove the immunity of Guatemala’s 3 President, Jimmy Morales, so that he could be 4 charged for the crime of illicit election financing, 5 based on investigations carried out jointly by the Of- 6 fice of the Attorney General and the International 7 Commission against Impunity in Guatemala 8 (CICIG). 9 (4) In August 2018, the Guatemalan Supreme 10 Court ruled that there was sufficient evidence for 11 the Guatemalan Congress to decide if President Mo- 12 rales should be investigated for illicit election financ- 13 ing. 14 (5) On January 7, 2019, the Government of 15 Guatemala announced that it was terminating the 16 agreement establishing CICIG effective immediately. 17 (6) The United Nations responded that the Sec- 18 retary-General ‘‘strongly rejects’’ the announcement, 19 stating ‘‘The mandate of the Commission is set to 20 end on 3 September 2019. Until that date, we ex- 21 pect the Government of Guatemala to entirely fulfill 22 its legal obligations under the Agreement. The Sec- 23 retary-General expects the Government of Guate- 24 mala to abide by its international undertakings to 25 VerDate Sep 11 2014 23:07 Mar 21, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H1630.IH H1630 kjohnson on DSK79L0C42 with BILLS 5 •HR 1630 IH ensure the protection of the CICIG personnel, both 1 international and national.’’. 2 SEC. 4. GLOBAL MAGNITSKY SANCTIONS AGAINST FOREIGN 3 PERSONS THAT ENGAGE IN CORRUPTION 4 AND OTHER ACTIVITIES IN GUATEMALA. 5 (a) IN GENERAL.—Not later than 90 days after the 6 date of the enactment of this Act and as appropriate 7 thereafter, the President shall impose the sanctions de- 8 scribed in subsection (b) on any foreign person who is a 9 current or former official of the Government of Guate- 10 mala, or any foreign person acting on behalf of or in co- 11 operation with an official of such Government, who has 12 knowingly— 13 (1) committed or facilitated significant corrup- 14 tion, money laundering, narcotics trafficking, or fi- 15 nancing political campaigns with the proceeds of 16 narcotics trafficking; 17 (2) obstructed investigations or prosecutions 18 carried out by Guatemalan officials of acts described 19 in paragraph (1); 20 (3) misused equipment provided by the Sec- 21 retary of State or the Secretary of Defense to the 22 Guatemalan military or national civilian police for 23 the purpose of combating drug trafficking or secur- 24 ing Guatemala’s border; 25 VerDate Sep 11 2014 23:07 Mar 21, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H1630.IH H1630 kjohnson on DSK79L0C42 with BILLS 6 •HR 1630 IH (4) disobeyed rulings of the Guatemalan Con- 1 stitutional Court, including rulings related to the 2 conduct of elections; or 3 (5) impeded or interfered with the work of any 4 United States Government agency or any institution 5 receiving contributions from the United States Gov- 6 ernment, including the International Commission 7 against Impunity in Guatemala (CICIG). 8 (b) SANCTIONS DESCRIBED.—The sanctions de- 9 scribed in this subsection are the sanctions described in 10 section 1263(b) of the Global Magnitsky Human Rights 11 Accountability Act (subtitle F of title XII of the National 12 Defense Authorization Act for Fiscal Year 2017 (Public 13 Law 114–328; 22 U.S.C. 2656 note)). 14 (c) REGULATORY AUTHORITY.—The President shall 15 issue such regulations, licenses, and orders as are nec- 16 essary to carry out this section. 17 (d) EXCEPTION TO COMPLY WITH UNITED NATIONS 18 HEADQUARTERS AGREEMENT.—Sanctions described in 19 subsection (b) shall not apply to an alien if admitting such 20 alien into the United States is necessary to permit the 21 United States to comply with the Agreement regarding the 22 Headquarters of the United Nations, signed at Lake Suc- 23 cess June 26, 1947, and entered into force November 21, 24 VerDate Sep 11 2014 23:07 Mar 21, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H1630.IH H1630 kjohnson on DSK79L0C42 with BILLS 7 •HR 1630 IH 1947, between the United Nations and the United States, 1 or other applicable international obligations. 2 (e) TERMINATION.—This section shall terminate on 3 the date that is two years after the date of the enactment 4 of this Act. 5 (f) REPORT.—Not later than 180 days after the date 6 of the enactment of this Act, the President shall transmit 7 to the appropriate congressional committees a report re- 8 garding steps taken to implement this section. 9 SEC. 5. CONDITIONS REGARDING USE OF EQUIPMENT 10 TRANSFERRED TO SECURITY FORCES. 11 (a) CONDITIONS.—Not later than 60 days after the 12 date of the enactment of this Act, the Secretary of State, 13 in coordination with the Administrator of the United 14 States Agency for International Development and the Sec- 15 retary of Defense, as appropriate, shall include, in each 16 contract, grant, license, or other mechanism providing for 17 the transfer of United States equipment to, or use by, the 18 Guatemalan military or national police, including for the 19 sale of such equipment, a provision that ensures that any 20 such equipment may be recovered by the United States 21 if such equipment is used in violation of an end use agree- 22 ment or otherwise for purposes other than for which such 23 equipment was transferred. 24 VerDate Sep 11 2014 23:07 Mar 21, 2019 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H1630.IH H1630 kjohnson on DSK79L0C42 with BILLS 8 •HR 1630 IH (b) DETERMINATION.—Not later than 90 days after 1 receiving a written request from the chairperson and rank- 2 ing member of any of the appropriate congressional com- 3 mittees with respect to whether equipment transferred or 4 licensed to be transferred to Guatemala by the United 5 States has been used in violation of an end use agreement 6 or otherwise for purposes other than for which such equip- 7 ment was transferred, the President shall— 8 (1) determine whether such equipment was 9 used in violation of such agreement or purposes; and 10 (2) transmit to the chairperson and ranking 11 member of such committee a report with respect to 12 such determination that includes— 13 (A) a statement of whether or not the 14 President has taken or intends to take remedial 15 action, including as provided for in this section 16 or in the Arms Export Control Act (22 U.S.C. 17 2753); and 18 (B) if the President has taken or intends 19 to take such remedial action, a description of 20 such remedial action, or if the President will 21 not take such action, a detailed justification re- 22 lating thereto. 23 Æ VerDate Sep 11 2014 23:07 Mar 21, 2019 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6301 E:\BILLS\H1630.IH H1630 kjohnson on DSK79L0C42 with BILLS