S 3881 ISCommentsClose CommentsPermalink

To require the Secretary of State to identify individuals responsible for the detention, abuse, or death of Sergei Magnitsky or for the conspiracy to defraud the Russian Federation of taxes on corporate profits through fraudulent transactions and lawsuits against Hermitage, and to impose a visa ban and certain financial measures with respect to such individuals, until the Russian Federation has thoroughly investigated the death of Sergei Magnitsky and brought the Russian criminal justice system into compliance with international legal standards, and for other purposes.CommentsClose CommentsPermalink

September 29, 2010CommentsClose CommentsPermalink

Mr. CARDIN (for himself and Mr. MCCAIN) introduced the following bill; which was read twice and referred to the Committee on the JudiciaryCommentsClose CommentsPermalink

To require the Secretary of State to identify individuals responsible for the detention, abuse, or death of Sergei Magnitsky or for the conspiracy to defraud the Russian Federation of taxes on corporate profits through fraudulent transactions and lawsuits against Hermitage, and to impose a visa ban and certain financial measures with respect to such individuals, until the Russian Federation has thoroughly investigated the death of Sergei Magnitsky and brought the Russian criminal justice system into compliance with international legal standards, and for other purposes.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘Justice for Sergei Magnitsky Act of 2010’.CommentsClose CommentsPermalink

SEC. 2. FINDINGS.

Congress finds the following:CommentsClose CommentsPermalink





(1) The United States supports the people of the Russian Federation in their efforts to realize their full economic potential and to advance democracy, human rights, and the rule of law.CommentsClose CommentsPermalink





(2) The Russian Federation--CommentsClose CommentsPermalink





(A) is a member of the United Nations, the Organization for Security and Cooperation in Europe, and the International Monetary Fund;CommentsClose CommentsPermalink





(B) has ratified the Convention against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment, the International Covenant on Civil and Political Rights, the International Covenant on Economic, Social and Cultural Rights, and the United Nations Convention against Corruption; andCommentsClose CommentsPermalink





(C) is bound by the legal obligations set forth in the European Convention on Human Rights.CommentsClose CommentsPermalink





(3) States voluntarily commit themselves to respect obligations and responsibilities through the adoption of international agreements and treaties, which must be observed in good faith in order to maintain the stability of the international order. Human rights are an integral part of international law, and lie at the foundation of the international order. The protection of human rights, therefore, particularly in the case of a country that has incurred obligations to protect human rights under an international agreement to which it is a party, is not left exclusively to the internal affairs of that country.CommentsClose CommentsPermalink





(4) Good governance and anti-corruption measures are instrumental in the protection of human rights and in achieving sustainable economic growth, which benefits both the people of the Russian Federation and the international community through the creation of open and transparent markets.CommentsClose CommentsPermalink





(5) Systemic corruption erodes trust and confidence in democratic institutions, the rule of law, and human rights protections. This is the case when public officials are allowed to abuse their authority with impunity for political or financial gains in collusion with private entities.CommentsClose CommentsPermalink





(6) The President of the Russian Federation, Dmitry Medvedev, has addressed corruption in many public speeches, including stating in his 2009 address to Russia’s Federal Assembly, ‘[Z]ero tolerance of corruption should become part of our national culture. . . . In Russia we often say that there are few cases in which corrupt officials are prosecuted. . . . [S]imply incarcerating a few will not resolve the problem. But incarcerated they must be.’. President Medvedev went on to say, ‘We shall overcome underdevelopment and corruption because we are a strong and free people, and deserve a normal life in a modern, prosperous democratic society.’. Furthermore, President Medvedev has acknowledged Russia’s disregard for the rule of law and used the term ‘legal nihilism’ to describe a criminal justice system that continues to imprison innocent people.CommentsClose CommentsPermalink





(7) The systematic abuse of Sergei Magnitsky, including his repressive arrest and torture in custody by the same officers of the Ministry of the Interior of the Russian Federation that Mr. Magnitsky had implicated in the embezzlement of funds from the Russian Treasury and the misappropriation of 3 companies from his client, Hermitage, reflects how deeply the protection of human rights is affected by corruption.CommentsClose CommentsPermalink





(8) The denial by all state bodies of the Russian Federation of any justice or legal remedies to Mr. Magnitsky during the nearly 12 full months he was kept without trial in detention, and the impunity of state officials he testified against for their involvement in corruption and the carrying out of his repressive persecution since his death, shows the politically motivated nature of the persecution of Mr. Magnitsky.CommentsClose CommentsPermalink





(9) Mr. Magnitsky died on November 16, 2009, at the age of 37, in Matrosskaya Tishina Prison in Moscow, Russia, and is survived by a mother, a wife, and 2 sons.CommentsClose CommentsPermalink





(10) There is extensive evidence that public officials from the Ministry of the Interior of the Russian Federation, the Russian federal tax authorities, the Prosecutor General’s Office of the Russian Federation, and the Russian Federal Security Service, as well as regional courts and the prison system of the Russian Federation, have abused their powers and positions to commit serious human rights violations, embezzled funds from the Russian Treasury, and retaliated against whistleblowers.CommentsClose CommentsPermalink





(11) While he was in detention, Sergei Magnitsky called himself a hostage of officials who misappropriated companies from his client, the Hermitage Fund, and embezzled funds from the Russian Treasury. He said that his criminal prosecution, arrest, and detention were organized as a retribution by police officers who had the full knowledge of his innocence.CommentsClose CommentsPermalink





(12) The Public Oversight Commission of the City of Moscow for the Control of the Observance of Human Rights in Places of Forced Detention, an organization empowered by Russian law to independently monitor prison conditions, concluded, ‘A man who is kept in custody and is being detained is not capable of using all the necessary means to protect either his life or his health. This is a responsibility of a state which holds him captive. Therefore, the case of Sergei Magnitsky can be described as a breach of the right to life. The members of the civic supervisory commission have reached the conclusion that Magnitsky had been experiencing both psychological and physical pressure in custody, and the conditions in some of the wards of Butyrka can be justifiably called torturous. The people responsible for this must be punished.’.CommentsClose CommentsPermalink

SEC. 3. DEFINITIONS.

In this Act:CommentsClose CommentsPermalink





(1) ADMITTED; ALIEN; SPOUSE- The terms ‘admitted’, ‘alien’, and ‘spouse’ have the meanings given those terms in section 101(a) of the Immigration and Nationality Act (8 U.S.C. 1101(a)).CommentsClose CommentsPermalink





(2) APPROPRIATE CONGRESSIONAL COMMITTEES- The term ‘appropriate congressional committees’ means--CommentsClose CommentsPermalink





(A) the Committee on Foreign Affairs and the Committee on Financial Services of the House of Representatives; andCommentsClose CommentsPermalink





(B) the Committee on Foreign Relations and the Committee on Banking, Housing, and Urban Affairs of the Senate.CommentsClose CommentsPermalink





(3) FINANCIAL INSTITUTION; DOMESTIC FINANCIAL AGENCY; DOMESTIC FINANCIAL INSTITUTION- The terms ‘financial institution’, ‘domestic financial agency’, and ‘domestic financial institution’ have the meanings given those terms in section 5312 of title 31, United States Code.CommentsClose CommentsPermalink





(4) PARENT- The term ‘parent’ has the meaning given that term in section 101(b) of the Immigration and Nationality Act (8 U.S.C. 1101(b)).CommentsClose CommentsPermalink





(5) UNITED STATES PERSON- The term ‘United States person’ means--CommentsClose CommentsPermalink





(A) a United States citizen or an alien lawfully admitted for permanent residence to the United States; orCommentsClose CommentsPermalink





(B) an entity organized under the laws of the United States or of any jurisdiction within the United States, including a foreign branch of such an entity.CommentsClose CommentsPermalink

SEC. 4. IDENTIFICATION OF INDIVIDUALS RESPONSIBLE FOR THE DETENTION, ABUSE, AND DEATH OF SERGEI MAGNITSKY AND FOR THE CONSPIRACY TO DEFRAUD THE RUSSIAN FEDERATION OF TAXES ON CERTAIN CORPORATE PROFITS.

(a) In General- Not later than 180 days after the date of the enactment of this Act, the Secretary of State, in consultation with the Secretary of the Treasury, shall publish a list of each individual the Secretary has reason to believe--CommentsClose CommentsPermalink





(1) is responsible for the detention, abuse, or death of Sergei Magnitsky;CommentsClose CommentsPermalink





(2) conspired to defraud the Russian Federation of taxes on corporate profits through fraudulent transactions and lawsuits against the foreign investment company known as Hermitage and to misappropriate entities owned or controlled by Hermitage; orCommentsClose CommentsPermalink





(3) participated in efforts to conceal the detention, abuse, or death of Sergei Magnitsky described in paragraph (1) or the existence of the conspiracy described in paragraph (2).CommentsClose CommentsPermalink





(b) Updates- The Secretary of State shall update the list required by subsection (a) as new information becomes available.CommentsClose CommentsPermalink





(c) Notice- The Secretary of State shall, to the maximum extent practicable, provide notice and an opportunity for a hearing to an individual before the individual is placed on the list required by subsection (a).CommentsClose CommentsPermalink

SEC. 5. INADMISSIBILITY OF CERTAIN INDIVIDUALS.

(a) Ineligibility for Visas- An alien is ineligible to receive a visa to enter the United States and ineligible to be admitted to the United States if the alien--CommentsClose CommentsPermalink





(1) is an individual on the list required by section 4(a); orCommentsClose CommentsPermalink





(2) is the spouse, son, daughter, or parent of an individual on that list.CommentsClose CommentsPermalink





(b) Current Visas Revoked- The Secretary of State shall revoke, in accordance with section 221(i) of the Immigration and Nationality Act (8 U.S.C. 1201(i)), the visa or other documentation of any alien who would be ineligible to receive such a visa or documentation under subsection (a).CommentsClose CommentsPermalink





(c) Waiver for National Interests- The Secretary of State may waive the application of subsection (a) or (b) in the case of an alien if the Secretary determines that such a waiver is in the national interests of the United States. Upon granting such a waiver, the Secretary shall provide to the appropriate congressional committees notice of, and a justification for, the waiver.CommentsClose CommentsPermalink

SEC. 6. FINANCIAL MEASURES.

(a) Special Measures- The Secretary of the Treasury shall instruct domestic financial institutions and domestic financial agencies to take 1 or more special measures described in section 5318A(b) of title 31, United States Code, if the Secretary of the Treasury makes a determination under section 5318A of such title with respect to money laundering relating to the conspiracy described in section 4(a)(2).CommentsClose CommentsPermalink





(b) Freezing of Assets- The Secretary of the Treasury shall freeze and prohibit all transactions in all property and interests in property of an individual that are in the United States, that come within the United States, or that are or come within the possession or control of a United States person if the individual--CommentsClose CommentsPermalink





(1) is on the list required by section 4(a); orCommentsClose CommentsPermalink





(2) acts as an agent of or on behalf of an individual on the list in a matter relating to an act described in paragraph (1), (2), or (3) of section 4(a).CommentsClose CommentsPermalink





(c) Waiver for National Interests- The Secretary of the Treasury may waive the application of subsection (a) or (b) if the Secretary determines that such a waiver is in the national interests of the United States. Upon granting such a waiver, the Secretary shall provide to the appropriate congressional committees notice of, and a justification for, the waiver.CommentsClose CommentsPermalink





(d) Regulatory Authority- The Secretary of the Treasury shall issue such regulations, licenses, and orders as are necessary to carry out this section.CommentsClose CommentsPermalink





(e) Enforcement- A person that violates, attempts to violate, conspires to violate, or causes a violation of this section or any regulation, license, or order issued to carry out this section shall be subject to the penalties set forth in subsections (b) and (c) of section 206 of the International Emergency Economic Powers Act (50 U.S.C. 1705) to the same extent as a person that commits an unlawful act described in subsection (a) of such section.CommentsClose CommentsPermalink

SEC. 7. REPORT TO CONGRESS.

(a) In General- Not later than 180 days after the date of the enactment of this Act, the Secretary of State and the Secretary of the Treasury shall submit to the appropriate congressional committees a report on the actions taken to carry out this Act.CommentsClose CommentsPermalink





(b) Updates- The Secretary of State and the Secretary of the Treasury shall submit an updated version of the report required by subsection (a) as new information becomes available.CommentsClose CommentsPermalink

SEC. 8. EFFECTIVE DATE.

This Act shall take effect on the date that is 90 days after the date of the enactment of this Act.CommentsClose CommentsPermalink

SEC. 9. TERMINATION.

The provisions of this Act shall cease to be effective on the date on which the Secretary of State and the Secretary of the Treasury certify to the appropriate congressional committees that--CommentsClose CommentsPermalink





(1) the Government of the Russian Federation has conducted a thorough and impartial investigation into--CommentsClose CommentsPermalink





(A) the detention, abuse, and resulting death in custody of Sergei Magnitsky; andCommentsClose CommentsPermalink





(B) the conspiracy (described in section 4(a)(2)) to defraud the Russian Federation of taxes on corporate profits and to misappropriate entities owned or controlled by Hermitage;CommentsClose CommentsPermalink





(2) the investigation described in paragraph (1) was properly conducted, transparent, and free of political influence;CommentsClose CommentsPermalink





(3) the individuals responsible for the detention, abuse, or resulting death of Sergei Magnitsky or for the conspiracy referred to in paragraph (1)(B) have been brought to justice according to the laws of the Russian Federation and pursuant to the international legal obligations of the Russian Federation; andCommentsClose CommentsPermalink





(4) the Government of the Russian Federation--CommentsClose CommentsPermalink





(A) has taken significant steps to bring the criminal justice system and penal system of the Russian Federation into compliance with applicable international legal standards;CommentsClose CommentsPermalink





(B) has substantially strengthened statutory protections for individuals who disclose evidence of illegal government activities; andCommentsClose CommentsPermalink





(C) has recognized the contribution of Sergei Magnitsky to the fight against corruption and for the rule of law.CommentsClose CommentsPermalink