H.R. 5548: Fraud Accountability and Recovery Act

The bill titled the "Fraud Accountability and Recovery Act" proposes amendments to the Foreign Assistance Act of 1961, specifically focusing on the provision of U.S. assistance to foreign governments. Here’s a breakdown of what the bill would do:

Prohibition on Assistance

The bill adds a new subsection to the Foreign Assistance Act of 1961 stating that the President cannot provide assistance to any country that:

• Has failed to extradite individuals convicted of committing fraud against the United States or who have benefited from fraud against the U.S.; or
• Has not taken appropriate actions to help recover U.S. funds that were fraudulently obtained. This includes measures like identifying, freezing, seizing, and returning those funds.

Findings

The bill outlines several findings regarding fraud against the U.S. government:

• The U.S. government has reported losses due to fraud ranging from $233 billion to $521 billion annually from fiscal years 2018 to 2022.
• A significant fraud scheme involving a nonprofit in Minnesota, which misappropriated over $250 million intended to feed children during the COVID-19 pandemic, involved the submission of false claims and other illegal activities.
• As of the time of the bill's introduction, the Department of Justice had charged multiple individuals related to this scheme, leading to several convictions for crimes such as wire fraud, conspiracy, theft of government funds, and other financial crimes.

Sense of Congress

The bill expresses Congress's view that:

• The U.S. lacks sufficient tools to recover stolen taxpayer funds when foreign jurisdictions do not cooperate.
• It is necessary to strengthen systems to recoup stolen funds and to prevent convicted fraudsters from escaping U.S. justice by seeking refuge in other countries.
• Deterring potential fraud by removing safe havens abroad is crucial for preventing future fraudulent activities.

Waiver Provision

The bill allows the President to waive the restrictions on providing assistance if it is certified that such prohibition is contrary to the national security interests of the U.S. However, the President must notify Congress 15 days prior to implementing any waivers, including justifications for these actions.

Reporting Requirements

Within 180 days of the bill's enactment, and annually thereafter, the Secretary of State is required to report to Congress on:

• Countries that have failed to take appropriate measures to address the specified fraud issues.
• The total amount of funds fraudulently obtained, as well as any legal remedies resulting from those failures, including recoveries and fines.

Relevant Companies

• None found