Congress authorizes new anti-corruption sanctions in Central America
In 180 days, the Biden administration will be required to publish a list of corrupt officials in Central America.
Two weeks ago I wrote about the risks and opportunities that will arise due to the Biden administration’s coming crackdown on corruption in Central America.
The appropriations bill passed by Congress yesterday provides some funding and authorities to make that a reality. Thanks to Jeff Ernst for pointing it out on Twitter.
The bill, building off previous legislation sponsored by Reps Engel and McCaul, requires the next administration to publish a public report naming corrupt officials and sanctioning those officials by removing their visas and permission to enter the United States.
The individuals to be named and sanctioned are those that engage in corruption related to government contracts, bribery, extortion, money laundering and threats or violence against corruption investigators. The act also implies that officials who are undermining democracy should be named, shamed and sanctioned.
Some of this is redundant. The US already has the ability to sanction (or prosecute!) officials engaging in corruption, abuses of democracy and money laundering through a variety of other mechanisms including the Magnitsky Act. However, by requiring a public report Congress is forcing some accountability into this system. If the next administration refuses to name certain officials who have been linked to corruption by journalists and civil society, Congress can use this provision to demand to know why not.
On top of the sanctions, the bill appropriates just over $500 million for the Central America Regional Security Initiative including at least $45 million for Attorneys General and other offices that combat corruption. Some of that aid can be withheld based on anti-corruption and other certifications. Biden has promised to ask Congress to increase that funding up to a billion dollars per year.
Beyond the specific anti-corruption report and sanctions, the bill also requires the Biden administration to publish a five year strategy “to advance economic prosperity, combat corruption, strengthen democratic governance, and improve civilian security in El Salvador, Guatemala, and Honduras and to curb irregular migration from the region.” That’s something Biden’s team was probably going to do anyway.
Three comments
I’m disappointed that they didn’t include Nicaragua within this anti-corruption act. I think one thing the Biden administration should begin doing is aligning our policies across Central America to make sure there is consistency in how the US approaches corruption and democratic decline no matter whether the country is a nominal ally or antagonist. Placing Nicaragua into one category and Honduras and El Salvador into another is a Trump administration policy I’d like to see left behind.
Civil society in Central America should see this as an opportunity. First, it’s positive news that this bill specifically sanctions those that use threats and violence against those reporting on corruption. Second, the language in this bill means that conducting outside investigations and exposing corruption can force the hand of the US government to punish corrupt officials.
The private sector should see the writing on the wall and double check their partners, vendors and clients in Central America to make sure they are not connected to corrupt politicians. There is a new anti-corruption focus coming and nobody can say they weren’t warned.
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