What This Bill Does
This bill requires the U.S. State Department to rank all foreign countries based on how well their governments fight corruption. Countries get ranked as tier 1 (doing well), tier 2 (trying but struggling), or tier 3 (doing little or nothing). The bill also tells the State Department to look at whether foreign government officials engaged in major corruption should face U.S. sanctions.
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Who It Affects
- The Secretary of State (must create and publish the rankings)
- Foreign governments (will be ranked and evaluated)
- Foreign government officials and their companies (may face sanctions)
- U.S. diplomats stationed abroad (will coordinate anti-corruption efforts)
- Congressional committees that receive reports on sanctions
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Key Provisions
- The Secretary of State must publish an annual ranking of all foreign countries on a publicly accessible website showing their tier status (Sec. 3)
- Countries rank as tier 1 if they meet minimum anti-corruption standards, tier 2 if they are making efforts but falling short, and tier 3 if they are making minimal or no efforts (Sec. 3)
- The Secretary of State, working with the Treasury Department, must evaluate whether foreign persons engaged in significant corruption should face sanctions under the Global Magnitsky Human Rights Accountability Act in all tier 3 countries (Sec. 5)
- The Secretary of State must report to Congress within 180 days of publishing the ranking list, and annually thereafter, with information about which foreign persons received sanctions and why (Sec. 5)
- The State Department must name an anti-corruption contact person at each U.S. embassy in tier 2 or tier 3 countries to coordinate government efforts to fight corruption (Sec. 6)
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What Changes
If this law passes, foreign countries will face public ranking based on corruption levels for the first time under U.S. law. Government officials from tier 3 countries who engage in significant corruption may be sanctioned, which could freeze their assets in the United States and prevent them from doing business here. U.S. embassies will be required to focus more resources on anti-corruption work in countries that need it most.
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Important Definitions
**Corruption:** Using government power unlawfully for personal gain, including bribery, nepotism, fraud, or embezzlement (Sec. 2)
**Significant corruption:** High-level government corruption that illegally distorts major government decisions or involves large-scale government activities (Sec. 2)
**Corrupt actor:** A foreign government official or entity responsible for or helping with corruption, or a company where such an official has a significant ownership stake (Sec. 2)
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Effective Date
Not specified in bill text
I
118TH CONGRESS
1ST SESSION
H. R. 457
To identify and combat corruption in countries, to establish a tiered list
of countries with respect to levels of corruption by their governments
and their efforts to combat such corruption, and to evaluate whether
foreign persons engaged in significant corruption should be specially
designated nationals under the Global Magnitsky Human Rights Account-
ability Act.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 24, 2023
Mr. COHEN (for himself, Mr. KEATING, Mr. WILSON of South Carolina, and
Ms. SALAZAR) introduced the following bill; which was referred to the
Committee on Foreign Affairs, and in addition to the Committee on the
Judiciary, for a period to be subsequently determined by the Speaker, in
each case for consideration of such provisions as fall within the jurisdic-
tion of the committee concerned
A BILL
To identify and combat corruption in countries, to establish
a tiered list of countries with respect to levels of corrup-
tion by their governments and their efforts to combat
such corruption, and to evaluate whether foreign persons
engaged in significant corruption should be specially des-
ignated nationals under the Global Magnitsky Human
Rights Accountability Act.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
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•HR 457 IH
SECTION 1. SHORT TITLE.
1
This Act may be cited as the ‘‘Combating Global Cor-
2
ruption Act of 2023’’.
3
SEC. 2. DEFINITIONS.
4
In this Act:
5
(1) CORRUPT
ACTOR.—The term ‘‘corrupt
6
actor’’ means—
7
(A) any foreign person or entity that is a
8
government official or government entity re-
9
sponsible for, or complicit in, an act of corrup-
10
tion; and
11
(B) any company, in which a person or en-
12
tity described in subparagraph (A) has a sig-
13
nificant stake, which is responsible for, or
14
complicit in, an act of corruption.
15
(2)
CORRUPTION.—The
term
‘‘corruption’’
16
means the unlawful exercise of entrusted public
17
power for private gain, including by bribery, nepo-
18
tism, fraud, or embezzlement.
19
(3) SIGNIFICANT CORRUPTION.—The term ‘‘sig-
20
nificant corruption’’ means corruption committed at
21
a high level of government that—
22
(A) illegitimately distorts major decision
23
making, such as policy or resource determina-
24
tions, or other fundamental functions of govern-
25
ance; and
26
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•HR 457 IH
(B) involves economically or socially large-
1
scale government activities.
2
SEC. 3. PUBLICATION OF TIERED RANKING LIST.
3
(a) IN GENERAL.—The Secretary of State shall an-
4
nually publish, on a publicly accessible website, a tiered
5
ranking of all foreign countries.
6
(b) TIER 1 COUNTRIES.—A country shall be ranked
7
as a tier 1 country in the ranking published under sub-
8
section (a) if the government of such country is complying
9
with the minimum standards set forth in section 4.
10
(c) TIER 2 COUNTRIES.—A country shall be ranked
11
as a tier 2 country in the ranking published under sub-
12
section (a) if the government of such country is making
13
efforts to comply with the minimum standards set forth
14
in section 4, but is not achieving the requisite level of com-
15
pliance to be ranked as a tier 1 country.
16
(d) TIER 3 COUNTRIES.—A country shall be ranked
17
as a tier 3 country in the ranking published under sub-
18
section (a) if the government of such country is making
19
de minimis or no efforts to comply with the minimum
20
standards set forth in section 4.
21
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•HR 457 IH
SEC. 4. MINIMUM STANDARDS FOR THE ELIMINATION OF
1
CORRUPTION AND ASSESSMENT OF EFFORTS
2
TO COMBAT CORRUPTION.
3
(a) IN GENERAL.—The government of a country is
4
complying with the minimum standards for the elimi-
5
nation of corruption if the government—
6
(1) has enacted and implemented laws and es-
7
tablished government structures, policies, and prac-
8
tices that prohibit and generally deter corruption, in-
9
cluding significant corruption;
10
(2) enforces the laws described in paragraph (1)
11
by punishing any person who is found, through a
12
fair judicial process, to have violated such laws;
13
(3) prescribes punishment for significant cor-
14
ruption that is commensurate with the punishment
15
prescribed for serious crimes; and
16
(4) is making serious and sustained efforts to
17
address corruption, including through prevention.
18
(b) FACTORS
FOR ASSESSING GOVERNMENT EF-
19
FORTS TO COMBAT CORRUPTION.—In determining wheth-
20
er a government is making serious and sustained efforts
21
to address corruption, the Secretary of State shall con-
22
sider, to the extent relevant or appropriate, factors such
23
as—
24
(1) whether the government of the country has
25
criminalized corruption, investigates and prosecutes
26
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•HR 457 IH
acts of corruption, and convicts and sentences per-
1
sons responsible for such acts over which it has ju-
2
risdiction, including, as appropriate, incarcerating
3
individuals convicted of such acts;
4
(2) whether the government of the country vig-
5
orously investigates, prosecutes, convicts, and sen-
6
tences public officials who participate in or facilitate
7
corruption, including nationals of the country who
8
are deployed in foreign military assignments, trade
9
delegations abroad, or other similar missions, who
10
engage in or facilitate significant corruption;
11
(3) whether the government of the country has
12
adopted measures to prevent corruption, such as
13
measures to inform and educate the public, including
14
potential victims, about the causes and consequences
15
of corruption;
16
(4) whether the government of the country has
17
taken steps to prohibit government officials from
18
participating in, facilitating, or condoning corrup-
19
tion, including the investigation, prosecution, and
20
conviction of such officials;
21
(5) the extent to which the country provides ac-
22
cess, or, as appropriate, makes adequate resources
23
available, to civil society organizations and other in-
24
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•HR 457 IH
stitutions to combat corruption, including reporting,
1
investigating, and monitoring;
2
(6) whether an independent judiciary or judicial
3
body in the country is responsible for, and effectively
4
capable of, deciding corruption cases impartially, on
5
the basis of facts and in accordance with the law,
6
without any improper restrictions, influences, in-
7
ducements, pressures, threats, or interferences (di-
8
rect or indirect);
9
(7) whether the government of the country is
10
assisting
in
international
investigations
of
11
transnational corruption networks and in other coop-
12
erative efforts to combat significant corruption, in-
13
cluding, as appropriate, cooperating with the govern-
14
ments of other countries to extradite corrupt actors;
15
(8) whether the government of the country rec-
16
ognizes the rights of victims of corruption, ensures
17
their access to justice, and takes steps to prevent
18
victims from being further victimized or persecuted
19
by corrupt actors, government officials, or others;
20
(9) whether the government of the country pro-
21
tects victims of corruption or whistleblowers from re-
22
prisal due to such persons having assisted in expos-
23
ing corruption, and refrains from other discrimina-
24
tory treatment of such persons;
25
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•HR 457 IH
(10) whether the government of the country is
1
willing and able to recover and, as appropriate, re-
2
turn the proceeds of corruption;
3
(11) whether the government of the country is
4
taking steps to implement financial transparency
5
measures in line with the Financial Action Task
6
Force recommendations, including due diligence and
7
beneficial ownership transparency requirements;
8
(12) whether the government of the country is
9
facilitating corruption in other countries in connec-
10
tion with state-directed investment, loans or grants
11
for major infrastructure, or other initiatives; and
12
(13) such other information relating to corrup-
13
tion as the Secretary of State considers appropriate.
14
(c) ASSESSING GOVERNMENT EFFORTS TO COMBAT
15
CORRUPTION
IN
RELATION
TO
RELEVANT
INTER-
16
NATIONAL COMMITMENTS.—In determining whether a
17
government is making serious and sustained efforts to ad-
18
dress corruption, the Secretary of State shall consider the
19
government of a country’s compliance with the following,
20
as relevant:
21
(1) The Inter-American Convention against
22
Corruption of the Organization of American States,
23
done at Caracas March 29, 1996.
24
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•HR 457 IH
(2) The Convention on Combating Bribery of
1
Foreign Public Officials in International Business
2
Transactions of the Organisation of Economic Co-
3
operation and Development, done at Paris December
4
21, 1997 (commonly referred to as the ‘‘Anti-Brib-
5
ery Convention’’).
6
(3) The United Nations Convention against
7
Transnational Organized Crime, done at New York
8
November 15, 2000.
9
(4) The United Nations Convention against
10
Corruption, done at New York October 31, 2003.
11
(5) Such other treaties, agreements, and inter-
12
national standards as the Secretary of State con-
13
siders appropriate.
14
SEC. 5. IMPOSITION OF SANCTIONS UNDER GLOBAL
15
MAGNITSKY
HUMAN
RIGHTS
ACCOUNT-
16
ABILITY ACT.
17
(a) IN GENERAL.—The Secretary of State, in coordi-
18
nation with the Secretary of the Treasury, should evaluate
19
whether there are foreign persons engaged in significant
20
corruption for the purposes of potential imposition of
21
sanctions under the Global Magnitsky Human Rights Ac-
22
countability Act (subtitle F of title XII of Public Law
23
114–328; 22 U.S.C. 2656 note) in all countries identified
24
as tier 3 countries under section 3.
25
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•HR 457 IH
(b) REPORT REQUIRED.—Not later than 180 days
1
after publishing the list required by section 3(a) and annu-
2
ally thereafter, the Secretary of State shall submit to the
3
committees specified in subsection (e) a report that in-
4
cludes—
5
(1) a list of foreign persons with respect to
6
which the President imposed sanctions pursuant to
7
the evaluation under subsection (a);
8
(2) the dates on which such sanctions were im-
9
posed; and
10
(3) the reasons for imposing such sanctions.
11
(c) FORM OF REPORT.—Each report required by sub-
12
section (b) shall be submitted in unclassified form but may
13
include a classified annex.
14
(d) BRIEFING IN LIEU OF REPORT.—The Secretary
15
of State, in coordination with the Secretary of the Treas-
16
ury, may provide a briefing to the committees specified
17
in subsection (e) instead of submitting a written report
18
required under subsection (b), if doing so would better
19
serve existing United States anti-corruption efforts or the
20
national interests of the United States.
21
(e) COMMITTEES SPECIFIED.—The committees speci-
22
fied in this subsection are—
23
(1) the Committee on Foreign Relations, the
24
Committee on Appropriations, the Committee on
25
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•HR 457 IH
Banking, Housing, and Urban Affairs, and the Com-
1
mittee on the Judiciary of the Senate; and
2
(2) the Committee on Foreign Affairs, the
3
Committee on Appropriations, the Committee on Fi-
4
nancial Services, and the Committee on the Judici-
5
ary of the House of Representatives.
6
SEC. 6. DESIGNATION OF EMBASSY ANTI-CORRUPTION
7
POINTS OF CONTACT.
8
(a) IN GENERAL.—The Secretary of State shall an-
9
nually designate an anti-corruption point of contact at the
10
United States diplomatic post to each country identified
11
as tier 2 or tier 3 under section 3, or which the Secretary
12
otherwise determines is in need of such a point of contact.
13
The point of contact shall be the chief of mission or the
14
chief of mission’s designee.
15
(b) RESPONSIBILITIES.—Each anti-corruption point
16
of contact designated under subsection (a) shall be respon-
17
sible for enhancing coordination and promoting the imple-
18
mentation of a whole-of-government approach among the
19
relevant Federal departments and agencies undertaking
20
efforts to—
21
(1) promote good governance in foreign coun-
22
tries; and
23
(2) enhance the ability of such countries—
24
(A) to combat public corruption; and
25
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•HR 457 IH
(B) to develop and implement corruption
1
risk assessment tools and mitigation strategies.
2
(c) TRAINING.—The Secretary of State shall imple-
3
ment appropriate training for anti-corruption points of
4
contact designated under subsection (a).
5
Æ
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