Title

Business Roundtable: The Helsinki Process

Thursday, November 14, 1991
Room BH340 Rayburn House Office Building
Washington, DC 20515
United States

In this briefing, Samuel Wise, staff director at the Commission, introduces the Helsinki Process and the countries it involves, focusing on the section of economic cooperation in The Helsinki Final Act. The briefing assesses the usefulness of the Helsinki Final Act and of the Commission in American business with Eastern Europe and the Soviet Union.

Wise was joined by Jane Fisher, deputy staff director at the Commission, who called upon the participation of the audience in assessing the compliance of the countries of Eastern and Central Europe and the Republics of the Soviet Union. The conversation includes Commissioners and members of the audience with diverse experience.   

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  • Cardin and Wicker Discuss July 2021 Congressional Delegation in Colloquy

    Mr. CARDIN. Madam President, I take this time to talk about the work of the U.S. Helsinki Commission in a recent opportunity we had to participate in the OSCE Parliamentary Assembly. I am joined on the floor by Senator Wicker, who is the Republican chair of the Helsinki Commission. The two of us have worked together in a nonpartisan, bipartisan manner in regards to the work of the Helsinki Commission. I just want to spend a few minutes, and then I am going to yield the floor and allow Senator WICKER to give his comments. The OSCE, as the chair is fully aware as a member of the Commission, represents the U.S. participation in the Organization for Security and Co-operation in Europe—57 states, which includes all of Europe, all of the former Republics of the Soviet Union, and Canada and the United States. The Commission works on the principle of three buckets: one for political affairs and security, another for economic and environmental progress, and the third on democracy and human rights. But it recognizes—and I think this has been the hallmark of the Helsinki Commission—that you can’t have advancements on political affairs or security or economic or environmental progress unless you make progress on democracy and human rights, that they are interwoven. In the Helsinki Commission, the OSCE is best known for its advancements for basic human rights. So I think of the initiatives that we have had in the Helsinki Commission for dealing with trafficking in humans and the legislation that came out of that and how we led the global response to dealing with trafficking. I think about the efforts we made in regards to tolerance, dealing with anti-Semitism, racism, and intolerance and how we have made progress throughout the entire OSCE region. I think about the issues we did in regards to sanctions against human rights violators so they cannot use our banking system or visit our country, the Magnitsky-type sanctions. All of that came out of the work of the Helsinki Commission. So one of the major arms of our work is the OSCE Parliamentary Assembly, which is the group of parliamentarians who meet every year and have meetings throughout the year to exchange views and to carry out the principles of the Helsinki Final Act. For the last year and a half, we have been compromised because we haven’t had an opportunity to meet in person, and it required us to meet by internet, and we have, but we had a unique opportunity during the last recess period to actually travel and meet with the parliamentarians. We had an OSCE Parliamentary Assembly annual meeting in Vienna. And we had a chance to do this in a hybrid manner. So we were able to travel 12-strong from the U.S. Congress to be at that meeting, and we were joined by five others here in the United States, including our Presiding Officer, to participate in the Parliamentary Assembly, and we were able to advance a lot of very important issues. But I must tell you, we were noticed at this meeting. The U.S. presence was critically important in dealing with some very timely issues. I know that Senator Wickerwill talk about this. He is one of the great leaders of the Parliamentary Assembly. He is Vice-President of the Parliamentary Assembly. We are very proud of the leadership position that he holds. By the way, his election was in Vienna to be the Vice President of the Parliamentary Assembly. We had multiple candidates and several elected to Vice-Presidents, but Senator Wicker led the ballot with the largest number of votes, which I think speaks to his well-thought-of respect among the OSCE parliamentarians. We wanted to make sure that this was a substantive meeting. Quite frankly, the leadership of the Parliamentary Assembly said: Let’s just get in there and get it over with and not bring up anything controversial. But that is not the way we operate. We have to take up current issues. So we took up the issue of tolerance. I was happy to sponsor a resolution that ultimately passed by unanimous vote that speaks to anti-Semitism, racism, intolerance, and the growth of hate in the OSCE region. But we also made sure that we considered the recent elections in Belarus and how unfair those elections were and how Mr. Lukashenko has been acting in a way that is so contrary to the human rights of the people who live there, and the election results there do not reflect the will of the people. We also had a chance to make sure we took up the issues concerning Ukraine. Once again, there was a lot of controversy on why you should bring that up during this meeting. We did. We supported that to make it clear that Russia’s aggression and its occupation of Crimea and its interference in eastern Ukraine will never be recognized as legitimate by the United States or, by that matter, the Parliamentary Assembly, because we responded in all of those areas. I am pleased to tell you that we supported Margareta Cederfelt, who is going to be the President of the OSCE Parliamentary Assembly in Sweden, and we look forward to her visit here in the United States. Richard Hudson, Representative Hudson, will be the chair of the first committee. So we are going to have active participation in the Parliamentary Assembly. We had the chance to visit some other countries. But if I might, I think I am going to yield the floor and give my good friend and the leader of our congressional delegation trip an opportunity to expand on some of the things we were able to do in the OSCE Parliamentary Assembly. With that, I yield the floor. Mr. WICKER. Madam President, I thank my colleague from Maryland, who has been such a leader in the area of human rights and international recognition of the challenges that our world faces today. I do appreciate his leadership and his partnership. We have worked shoulder to shoulder on so many issues. Yes, I proudly rise with him this afternoon to talk about a very valuable series of meetings that our 12-member delegation had in 4 countries in Europe in recent days. This was Republicans and Democrats from the House and Senate, a truly bipartisan and bicameral delegation—a very large delegation—which I think my colleague will agree made a strong statement on behalf of the United States of America and on behalf of the U.S. House and Senate about the way we view European engagement and our partnership and friendship with the 50-plus member countries of the OSCE and their Parliamentary Assembly. We visited Vienna, Austria, for the OSCE Parliamentary Assembly. As Senator Cardin mentioned, we met with great success. Yes, I was reelected to the position of vice president, and I appreciate the support of Democrats and Republicans in the House and Senate in helping me get those votes to receive another three-year term there. Richard Hudson, our colleague from the House of Representatives, has been very active as chairman of Committee No. 1 in the Parliamentary Assembly. He is highly regarded. He was reelected without opposition. So there are two bits of success there. And then the great piece of work, actually, was with regard to Senator Cardin's initiative on the rising hate and intolerance that we are seeing all around the world, particularly among member countries of the Organization for Security and Co-operation in Europe. Senator Cardin actually took the lead in challenging the leadership of the Parliamentary Assembly in saying that issues should be discussed. Even though they weren’t in an immediate, like, three-week crisis mode, they deserved to be brought forward. And Senator Cardin was able to get his resolution considered and passed overwhelmingly, and we made a strong statement on behalf of countering the rising hate and intolerance and countering the use of these things to buttress authoritarianism and to stoke conflict around the world. We also passed a very important resolution about the tragedy, the outrage that has gone on in Belarus. I can tell you, the opposition party leader from Belarus was in this Capitol building just yesterday talking about the importance of support from places like the United States Congress. I can tell you, Madam President, that Senator Shaheen and I are about to send a letter to our colleagues asking any and all of us to join a Freedom Caucus for the Belarusian people, the Belarus Freedom Caucus. We asked the opposition leader, Sviatlana Tsikhanouskaya, to tell us whether that would be helpful. She said the formation of this caucus to support the freedom movement in Belarus would be a strong signal. It would be well received and effective on behalf of the opposition leadership there in Belarus. Then, again, we reiterated our opposition to what Russia has done in Ukraine and particularly to the recent Russian military buildup and ongoing aggression in Ukraine. We did a lot there with the Parliamentary Assembly. We went on to Estonia, met with leadership there—a former President, the current Prime Minister, other leaders. And, also, we had a chance to travel to the very easternmost part of Estonia and actually travel on the Narva River and look right across to Russia and the security guards there, understanding what our Estonian allies are up against with Putin’s Russia staring right across the river at their freedom and democracy. From there, we joined the Three Seas conference in Sofia, Bulgaria. I can tell you, this is a group of Eastern European former Soviet Bloc countries that are striving to be in charge of their own infrastructure and rely less on the Chinese Belt and Road Initiative. I think the fact that 12 Americans showed up, participated, met with Heads of state at that conference made a very strong statement of American support for freedom and for looking westwardly in trying to get their problems solved and their infrastructure needs met. We also had a very meaningful visit to Norway, where we saw some American-Norwegian defense initiatives. I am very proud of the partnership that this Helsinki Commission—our organ of the American OSCE PA—and the way that we joined together to express our support for freedom, for democracy, for the rule of law, for opposing corruption, both at the petty local level and also at the larger State-sponsored level. One other thing before I yield back and let my friend close. Particularly in Bulgaria, but also all during our trip, we were met with hearty thanks for the United States leadership in the global Magnitsky Act. This began as an initiative with Senator Cardin, Senator Lieberman, Senator McCain, and me several years ago directed—during the Obama administration—directed toward individual Russians who had violated human rights and individual liberty in a very outrageous and gross way, allowing us to sanction individuals rather than causing harm to the people of Russia in that case. That has been expanded now to the global level and other countries are adopting this. But I can tell you, when we arrived in Bulgaria, we were met with great thanks from people who are trying to combat lawlessness and corruption at the top level of government. I just have to say, of course, Ben Cardin has been the premier leader in this worldwide effort. It was gratifying to know and to learn firsthand on the ground there in Sofia, Bulgaria, that an initiative that began right here in this U.S. Senate years ago, and continues to this day, is having a beneficial effect on the people all across Europe and particularly in some of the countries that we visited. I yield back to the Senator from Maryland. The PRESIDING OFFICER. The Senator from Maryland. Mr. CARDIN. Madam President, let me again thank Senator Wicker. Thank you for your leadership on so many issues. But on this congressional delegation, for those who are not familiar, it is not easy to put together the type of opportunities to advance American values. And Senator Wicker took the responsibility as the leader of our delegation to make sure that we had the opportunities to advance American values. I thank him for all the effort he put into it. It was certainly extremely successful. I just want to emphasize a few things before closing. One, in Vienna, we did have an opportunity to meet with Rafael Grossi, who is the Director General of the IAEA. That is the International Atomic Energy Agency, which has the responsibility of monitoring the nuclear programs throughout the world. Obviously, it has played a bigger role in regard to the program in Iran, and it was monitoring exactly what was happening in Iran under the JCPOA. They now don’t have the same access, and we had a chance to talk with the Director General as to the challenges with the Iranian program. And I think it was helpful for all of us to understand exactly the role that the IAEA can play in regard to getting us information about what is happening on the ground in Iran. Senator Wicker talked about our visit to Estonia, a strong ally partner, NATO partner. We showed our support by going to Narva, which is on the Russian border. It is a town that has a majority of Russian-speaking Estonians. It is an interesting community. But we could see across the river, very clearly, the Russian patrol boats. We know and heard firsthand of the concern of the Estonians. They saw what happened in Ukraine and they worry that same thing could happen in Estonia with Russian aggression. I must tell you, our presence to reinforce the NATO commitment, I think, was an extremely important message that we gave to the Estonian people. Mr. WICKER. Would the gentleman yield on that point? Mr. CARDIN. I would be glad to yield. The PRESIDING OFFICER. The Senator from Mississippi. Mr. WICKER. If I might add, people in Narva, Estonia, and people in the city across the river have access to each other across a bridge there. And it is clear to the people on the Russian side that their cousins and friends in Narva, Estonia, live a better life and have a better standard of living in this free country, this NATO ally called Estonia, than the Russian cousins and friends have on the other side. I just thought I would add that to the discourse before Senator Cardin moves on to discussing Norway and Bulgaria. Thank you. The PRESIDING OFFICER. The Senator from Maryland. Mr. CARDIN. Madam President, let me move onto Bulgaria very briefly. Senator Wicker did cover Bulgaria. The Three Seas Initiative, I wasn’t that familiar with it before traveling to Bulgaria. It is an initiative by twelve states that are basically part of the Eastern European Coalition, states that are developing democratic institutions and democratic economies after the fall of the Soviet Union. They need to build up their resilience as a collective entity in energy, transportation, and digital infrastructure. The Three Seas Initiative is to attract investment to connect the twelve countries together on infrastructure needs. It is for many reasons. It is for its own economic strength and growth, but also for resiliency against the efforts of China on its Belt and Road Initiative, which is trying to infiltrate these countries and convert their way of economy to more of the Chinese system. The Three Seas Initiative is an effort to have their own independent way of attracting capital. The United States is participating in the Three Seas. We are not a member, but we are participating and providing resources for the fund that is being developed that would be leveraged for these type of investments. While we were in Bulgaria, we had a chance to have bilateral meetings. There were twelve heads of state there. We had bilateral meetings with the President of Poland, Bulgaria, Latvia, and Romania. We had very constructive discussions about what is happening in their country. We raised Helsinki issues with all these countries. Senator Wicker already talked about how we were welcomed by the Bulgarian leadership in regards to the imposition of the Magnitsky sanctions. We are heroes. They feel like they have a second chance to try to develop the type of anti-corruption mechanisms that they desperately need. Our visit to Varna, which is on the Black Sea, was very educational to see how Russia is trying to dominate the Black Sea area and one of the reasons why they are so aggressive in Ukraine and the Crimea. I think that was extremely helpful for us to understand the security risks and how we have to work with our NATO partners to protect the Black Sea area, particularly from the potential aggression—not potential—from the aggression of Russia. Also in Bulgaria, we had a chance to visit a Roma village. It is not my first visit to a Roma village. I have visited over the years. It is a real tragic situation. The Roma population have been in Europe for centuries. They lived in communities for hundreds of years, yet they do not have property rights. They have lived in their homes, and yet they do not have the opportunity to have their homes registered. And at any time, the government can come in and take away their property without compensation. They rarely have reliable utilities. The village we visited did not have water systems, so they had to use outhouses, et cetera. They had limited availability of fresh water. Their utility service is not reliable. And they go to segregated schools. They don’t have the same employment opportunities. So we, once again, will raise the rights of the Roma population as part of our commitment under the Helsinki Commission, and we are following up with the local officials to try to help in that regard. Then, lastly, on our way back, we visited Norway. I learned a lot because I did not know about the pre-positioning program. I know my friend Senator Wicker already knew about this from his Armed Services service, but it is where we pre-position equipment so that we can respond rapidly to a circumstance anywhere in the world. The Norway pre-positioning is actually used to help us in regard to the Middle East and our needs in the Middle East. So it was an extremely, extremely, I think, productive visit to these countries. I think we did carry out our commitment under the Helsinki Commission, and we advanced American values. I think we represented our country well, and we were very well noticed. With that, I yield the floor. The PRESIDING OFFICER. The Senator from Mississippi. Mr. WICKER. Madam President, one other thing that our colleagues might not understand about the OSCE is their role in election observation. As we were leaving Sofia on the morning of July 11, we crossed paths with some other representatives from the OSCE from European countries who were there to observe the parliamentary elections being held in Bulgaria that very day. Also, on the same day, Moldova, another member of the OSCE, was having parliamentary elections.  We have every hope that the results of these elections will be a further resolve in those two nation members to counter the corruption at the highest level, and we want to congratulate both of those member states of the OSCE for free and fair elections in Europe. With that, I thank my colleague. I yield the floor.

  • Helsinki Commission Commemorates 45 Years of Advancing Comprehensive Security in the OSCE Region

    WASHINGTON—To commemorate the 45th anniversary of the Commission on Security and Cooperation in Europe, also known as the U.S. Helsinki Commission, on June 3, Chairman Sen. Ben Cardin (MD) and commission leaders Sen. Roger Wicker (MS) and Rep. Joe Wilson (SC-02) issued the following statements: “The Helsinki Commission has played a vital role in elevating the moral dimension of U.S. foreign policy and prioritizing the protection of fundamental freedoms in our dealings with other nations,” said Chairman Cardin. “From fighting for fair treatment of Jews in the Soviet Union, to developing landmark legislation to address human trafficking, to demanding sanctions on human rights violators and kleptocrats, and so much more, the commission consistently has broken new ground.” “For 45 years, the commission has flourished as a bipartisan and bicameral platform for collaboration within the federal government. Its purpose is not to support a specific party or administration, but instead to advance transatlantic cooperation, promote regional security and stability, and hold OSCE participating States accountable to their promises,” said Sen. Wicker. “Our commissioners’ united front against threats to democracy and human rights worldwide has become a pillar of U.S. international engagement.” “I am grateful to have experienced the crucial role played by U.S. engagement in the Helsinki Process, both as an election observer in Bulgaria in 1990, and later as a lawmaker and commissioner,” said Rep. Wilson. “The Helsinki Commission is unique in its ability to adapt to evolving global challenges. The defense of human rights and democracy looks different now than it did during the Cold War, but we continue to unite over the same resilient principles and commitment to fundamental freedoms.” On June 3, 1976, U.S. President Gerald Ford signed the Helsinki Commission into existence through Public Law 94-304 to encourage compliance with the Helsinki Final Act of 1975—the founding document that lays out the ten principles guiding the inter-state relations among today’s OSCE participating States. The agreement created new opportunities to engage with European partners on human rights, cooperative security, economic opportunities, and territorial disputes, and the commission played an integral role in ensuring that human rights became a key component of U.S. foreign policy. Forty-five years after its founding, the Helsinki Commission continues to engage with participating States to confront severe and persistent violations of human rights and democratic norms. Since its establishment, the Helsinki Commission has convened more than 500 public hearings and briefings. It regularly works with U.S. officials in the executive branch and Congress to draw attention to human rights and security challenges in participating States, including racism, anti-Semitism, and intolerance; corruption; human trafficking; and Russia’s persistent violations of the Helsinki Final Act in its relations with Ukraine and other OSCE countries.

  • The OSCE Celebrates 30 Years of the Charter of Paris

    By Emma Derr, Max Kampelman Fellow November 21, 2020, marks the 30th anniversary of the Charter of Paris for a New Europe,  a groundbreaking document of the Conference on Security and Cooperation in Europe (CSCE). The charter was signed by 34 heads of state and government during a CSCE Summit in the French capital from November 19 to 21, 1990. The political agreement charted a path forward following Cold War confrontation and division caused by Soviet domination in the east. It ushered in a new era as states made an unprecedented commitment to domestic individual freedoms, democratic governance, human rights, and transnational cooperation. By institutionalizing the CSCE as a platform to realize peace and security, this process transformed the multilateral Conference into the Organization for Security and Cooperation in Europe (OSCE), which today is the world’s largest regional security organization, comprising 57 participating States. The charter states, “Europe is liberating itself from the legacy of the past. The courage of men and women, the strength of the will of the peoples and the power of the ideas of the Helsinki Final Act have opened a new era of democracy, peace and unity in Europe.” Known by many as the “Helsinki Process,” both the CSCE and its OSCE successor have been based on ten principles guiding relations between participating States, enshrined in the Helsinki Final Act. The charter marks a triumph of the comprehensive definition of security these principles represent and a moment of unity, which participating States hoped to maintain through enhanced cooperation. During the OSCE’s three-session Security Days event in October “Revitalizing Trust and Co-operation in Europe: Lessons of the Paris Charter,” former U.S. Secretary of State James A. Baker III, who played a leading role in the charter’s formation, recalled signing the agreement as an “optimistic, almost festive event.” “It encapsulated so much that was positive about the process that had begun with the Helsinki Final Act in 1975,” he said. “It envisioned a new and inclusive continent based largely on western values, particularly the value of democracy.” The Enduring Value of the OSCE Since 1990, the OSCE has acted as a forum for political dialogue and a platform for joint action across North America, Europe, and Asia through its institutions, structures, and field operations. As its occupation of Crimea and military intervention in Eastern Ukraine have led to Russia’s isolation and sanctions by the United States and others in recent years, the OSCE is one of the few remaining multilateral forums for American diplomats to directly engage with their Russian counterparts. As an organization promoting the principles of democracy and as a forum for conflict resolution, the OSCE is a valuable tool to hold authoritarian regimes accountable throughout the region, which stretches from Vancouver to Vladivostok. Chairman of the U.S. Helsinki Commission Rep. Alcee L. Hastings and U.S. Ambassador to the OSCE James S. Gilmore III see the OSCE as a forum where the United States remains engaged and committed to the ideals cemented in the Charter of Paris. “Through the OSCE, the United States directly confronts the deceit of Russia and other authoritarian powers. By raising our voices, through our participation and leadership, we reassure our friends that the United States stands with them and supports our shared values against the growing tide of autocracy,” Rep. Hastings and Amb. Gilmore stated in an August 2020 op-ed. The organization continues to play a critical role in regional conflicts in and amongst participating States. The OSCE’s Special Monitoring Mission (SMM) to Ukraine is the only independent observer group with a permanent presence in the war zone. “The OSCE’s broad membership and comprehensive definition of security make it an ideal platform to advocate for our interests in a vital region,” stated Helsinki Commission Co-Chairman Sen. Roger Wicker and Ranking Member Sen. Ben Cardin in a 2018 article describing the OSCE’s timeless value. “Its institutions remain singularly placed to moderate regional conflicts, promote respect for human rights, and safeguard essential elements of democracy.” The OSCE operates field missions in 13 participating States with the goal of supporting the development of host countries’ democratic institutions, legal frameworks, and ability to meet various human rights, media freedom, and policing commitments. OSCE field mission staff are praised by Carnegie Europe Senior Fellow Thomas de Waal as “some of the unsung heroes of Europe’s darkest corners.” The Charter of Paris articulated a new era of economic commitments, and the OSCE provides frequent opportunities for representatives of OSCE governments to discuss best practices concerning free market economies, economic cooperation and environmental issues. The OSCE also organizes international election observation missions to transitional and well-established democracies alike, observing and reporting on adherence to democratic election commitments. New Challenges Much has changed since the end of the Cold War, and the anniversary of the charter provides an opportunity to renew commitments to cooperation and examine how the OSCE will meet current and emerging challenges. During October’s Security Days event, former OSCE Secretary General and former High Commissioner on National Minorities Ambassador Lamberto Zannier called for reinvigorated political support and investment by participating States to enable the OSCE to continue its vital work. He cited the post-Soviet transition in Ukraine and Serbian elections in Kosovo as examples of these efforts. During his remarks at the event, Baker concluded that in this spirit, the OSCE can find new methods of cooperation to meet 21 century challenges. “Our message should not be much different than it was three decades ago,” he said. “States should fulfill the promises they made in the Paris charter 30 years ago.” The 30th anniversary inspired other webinar discussions, such as IFSH Hamburg’s Event, “30 Years Charter of Paris: Lessons for Pragmatic Cooperation in the OSCE Area,” which discussed the strengths and weaknesses of the Charter of Paris, as well as potential reforms to the OSCE. The Stockholm International Peace Research Institute (SIPRI) also engaged in the anniversary and hosted the event “(Dis)functional International Security Institutions? The Organization for Security and Cooperation in Europe (OSCE) Today.” The OSCE’s Parliamentary Assembly and the French Delegation to the Assembly held an online, public discussion “The 30th Anniversary of the Charter of Paris: A Parliamentary Perspective,” on November 20, which discussed how to the OSCE can continue to provide value within today’s complex international framework. Finally, on November 20, the Woodrow Wilson Center in cooperation with the U.S. Helsinki Commission also hosted an event, “Marking the 30th Anniversary of the Charter of Paris for a New Europe - Europe Whole and Free: The Future of the OSCE.” The discussion included the U.S. Helsinki Commission’s Ranking Member Sen. Ben Cardin and Commissioner Rep. Robert Aderholt, as well as other leading voices on European security and cooperation.   Photos Courtesy of the Ministry of Foreign Affairs of France​

  • Hastings and Wicker Call for Free and Fair Elections, Anti-Corruption Action, and Protection of Human Rights in Kyrgyzstan

    WASHINGTON—In response to the tumultuous change of power in Kyrgyzstan, Helsinki Commission Chairman Rep. Alcee L. Hastings (FL-20) and Co-Chairman Sen. Roger Wicker (MS) issued the following statement: “Kyrgyzstan should ensure that changes to its electoral system adhere to the rule of law, are transparent, and allow for input from civil society. Its citizens, many of whom took to the streets in protest over allegations of vote buying and corruption during the annulled October 4 parliamentary election, should have confidence that the system is fair and that new elections are conducted properly and reflect the will of the people. “For the country to move forward, authorities should seriously address endemic corruption and protect private businesses and foreign investment. We are also disturbed by reports of pressure and harassment directed toward political opposition, human rights activists, and journalists. We urge Kyrgyzstan to ensure that human rights are protected during this difficult time, including the rights of persons belonging to ethnic minorities. “We believe that the Organization for Security and Cooperation in Europe could play an instrumental role in assisting Kyrgyzstan with any electoral or constitutional changes, as well as preparations for and observation of new elections. It also could support the role of civil society and independent media. Kyrgyzstan should take full advantage of this possibility.” What started as a popular revolt by youth and opposition groups over fraudulent elections on October 4 and endemic corruption resulted in the resignation of President Jeenbekov and the installation of Sadyr Japarov as both Kyrgyzstan’s acting president and prime minister. OSCE election observers concluded that the October 4 parliamentary election “was competitive and candidates could, in general, conduct their activities freely” but “credible allegations of vote buying remain a serious concern” and “a number of controversial CEC decisions raised questions about its impartiality.” The country will hold both new parliamentary and new presidential elections. Presidential elections have been scheduled for January 10, but the timing for parliamentary elections remains unclear. Parliament has already made some changes to the electoral code and is discussing further reform. Japarov announced that he would step down as president in December to allow him to run for president and thereby get around a constitutional provision that bans the acting president from doing so.

  • Hastings: Petty Parochialism Denies OSCE Vital Leadership During Global Crisis

    WASHINGTON—Following yesterday’s failure of OSCE representatives to renew the mandates of four leadership positions—the OSCE Secretary General, the High Commissioner on National Minorities, the Representative on Freedom of the Media, and the Director of the Office for Democratic Institutions and Human Rights—Helsinki Commission Chairman Rep. Alcee L. Hastings (FL-20) issued the following statement: “We are in trouble when petty parochialism denies us vital leadership in the midst of a global crisis. Now more than ever, reliable multilateral institutions are needed to forge solutions during and after the current pandemic.  “Azerbaijan, Tajikistan, Turkey, and other OSCE participating States who have blocked consensus on extending dedicated public servants should be ashamed of themselves. History will show the folly of abandoning essential leadership for cooperation.” Negotiations to renew each mandate collapsed in part in response to the written objections of Azerbaijan, Tajikistan, and Turkey, and the subsequent withholding of consensus by other participating States. Even efforts to devise interim extensions failed, leaving vital OSCE leadership positions vacant during an unprecedented global crisis. The failure highlights the unwillingness of some OSCE participating States to live up to their stated commitments to democratic institutions, the rule of law, media pluralism, and free and fair elections. Leaving key leadership roles unfilled drastically weakens the OSCE’s ability to hold countries accountable for their actions and undermines the principles of the Helsinki Final Act.  The Organization for Security and Cooperation in Europe (OSCE) is the world’s largest regional security organization. It spans 57 participating States reaching from Vancouver to Vladivostok. The OSCE sets standards in fields including military security, economic and environmental cooperation, and human rights and humanitarian concerns. In addition, the OSCE undertakes a variety of initiatives designed to prevent, manage, and resolve conflict within and among the participating States.

  • Congressional Delegation Led by Chairman Hastings Champions U.S. Leadership in Transatlantic Security, Human Rights

    WASHINGTON—Helsinki Commission Chairman Rep. Alcee L. Hastings (FL-20) last week led a bicameral, bipartisan congressional delegation to the OSCE Parliamentary Assembly’s (OSCE PA) 19th Winter Meeting in Vienna, Austria. At the meeting, Chairman Hastings and other members of the delegation engaged with OSCE officials, delegations from other OSCE participating States, and diplomats to advance U.S. interests while assuring friends, allies, and potential adversaries of the U.S. commitment to security and cooperation in Europe.   The 11-member delegation was among the largest U.S. delegations ever to attend the annual gathering, which attracted more than 300 parliamentarians from 53 OSCE participating States. Chairman Hastings, a former president of the OSCE PA, was joined in Austria by Helsinki Commission Co-Chairman Sen. Roger Wicker (MS), Ranking Member Rep. Joe Wilson (SC-02), and Helsinki Commissioners Rep. Emanuel Cleaver (MO-05), Rep. Gwen Moore (WI-04), Rep. Steve Cohen (TN-09), Rep. Robert Aderholt (AL-04), and Rep. Richard Hudson (NC-08). Rep. Gregory Meeks (NY-05), Rep. Lloyd Doggett (TX-35), and Rep. Andy Harris (MD-01) also joined the delegation, which benefited from the active support of Ambassador James Gilmore, the U.S. Representative to the OSCE.  In the Standing Committee, which oversees the OSCE PA’s work, Chairman Hastings highlighted recommendations resulting from a seminar for young parliamentarians on “Future Leadership for Political Inclusion in the OSCE Region,” hosted in Washington in early February by the Helsinki Commission and the OSCE PA. “We brought together some 35 young parliamentarians from 19 OSCE participating States and three partner States to learn from each other and incubate the solutions of the future,” Chairman Hastings said. “As I called on all of you at our last meeting in Marrakech, we must counter the economic and social despair afflicting our youth and we all have a role.”  At the same committee, Co-Chairman Wicker, who serves as a vice president of the assembly, shared his recent experience at the Munich Security Conference.  The committee also reviewed a written report submitted by former Helsinki Commissioner Rep. Chris Smith (NJ-04), OSCE PA Special Representative on Human Trafficking Issues. In the committee focused on security issues, Rep. Hudson condemned Russia’s violations of Helsinki principles related to its aggression against Ukraine, while in the committee focusing on economic issues Rep. Harris cautioned Europe regarding the growing Chinese presence in the region.   During a special debate on confronting anti-Semitism and other forms of intolerance in the OSCE region, Helsinki Commission Ranking Member Sen. Ben Cardin (MD), who serves as the OSCE PA Special Representative on Anti-Semitism, Racism and Intolerance, delivered introductory remarks by video. “It is our responsibility to safeguard our democracies by speaking out and using our tools and voices as legislators against those who would divide our societies,” Sen. Cardin said. Later in the debate, Rep. Cohen urged participating States “to teach Holocaust history, which a fourth of the people in Europe or more don't understand or remember, and teach it so that the most horrific crime against humanity will be remembered so that it will not be repeated.” Rep. Cleaver linked anti-Semitism to broader trends of intolerance in society, and called OSCE participating States to action, stating, “There are many scary things in our world, but there is nothing quite able to generate fright like prejudice inspired by ignorance and nationalism manufactured by fear.” Rep. Hudson chaired a meeting of the OSCE PA Ad Hoc Committee on Countering Terrorism, and Rep. Moore participated in a similar meeting of the Ad Hoc Committee on Migration. On the margins of the Winter Meeting’s official sessions, members of Congress met with the Ukrainian delegation to the OSCE PA to discuss U.S. support for Ukraine’s territorial integrity and sovereignty in the face of unrelenting Russian aggression. Delegation members also met with OSCE Secretary General Thomas Greminger, Office for Democratic Institutions and Human Rights Director Ingibjörg Sólrún Gísladóttir, Special Representative and Coordinator for Combatting Trafficking in Human Beings Valiant Richey, and High Commissioner for National Minorities Lamberto Zannier.

  • Public Diplomacy, Democracy, and Global Leadership

    For more than a century, the United States has advanced shared human rights, economic, and security policy goals in the transatlantic relationship by cultivating people-to-people ties through public diplomacy initiatives.  As democracies around the world face new challenges emanating from demographic shifts, technological advancements, and evolving security threats, the need for public diplomacy initiatives that cultivate leaders who espouse democratic principles, including inclusive and representative governance, grows more relevant. The U.S. Helsinki Commission convened a hearing to focus on U.S.-led public diplomacy international exchange initiatives that strengthen democratic institutions by targeting young and diverse leaders, encouraging civic engagement, and fostering social inclusion and cohesion in the OSCE region. Presiding over the hearing, Chairman Alcee L. Hastings (FL-20) stated, “This year, under my leadership, the Helsinki Commission has held events on the importance of international election observation, good governance, and focused on democratic backsliding in particular countries as part of our continued commitment to the underlying principles of the Helsinki Final Act.  Common to all of these issues is the role good leaders can play in ensuring free and fair elections; laws that are equitable, transparent, and enforced; and laying the groundwork to ensure protections and rights for all in their constituencies […] for the long-term stability of our nation and the transatlantic partnership.”  In his opening remarks, Chairman Hastings also noted that he planned to introduce legislation to support of leadership exchanges and knowledge-building between diverse transatlantic policymakers, and to encourage representative democracies. He also announced a February program for young OSCE parliamentarians to strengthen their political inclusion and advance peace and security efforts. Chairman Hastings was joined by Commissioners Rep. Emanuel Cleaver, II (MO-05) and Rep. Marc Veasey (TX-33). Rep. Veasey raised the importance of metrics in assessing the impact of leadership programs and soft diplomacy, while Rep. Cleaver stated, “For the first time since the end of World War II, the extreme right is actually winning seats in the German Parliament,” highlighting increased security risks related to public diplomacy programs operating in countries that have seen an increase in hate crimes and racial prejudice. Witnesses included Cordell Carter, II, Executive Director of the Socrates Program at the Aspen Institute; Stacie Walters Fujii, Chair of the American Council of Young Political Leaders; and Lora Berg, Counselor for Inclusive Leadership at the German Marshall Fund of the United States. Carter reviewed the Aspen Institute’s public policy programming on transatlantic relations and discussed the importance of promoting democratic values, including efforts to strengthen the capacity of congressional staff and encourage dialogues around the United States on being an “inclusive republic.”  He concluded by asking Congress to create more opportunities for public discourse on issues that threaten the stability of democracies around the world. Fujii discussed the importance of international exchanges in supporting democracies and the work of American Council of Young Political Leaders (ACYPL). ACYPL was founded in 1966 to strengthen transatlantic relationships by promoting mutual understanding among young political leaders in Western Europe and the former Soviet Union.  Critical aspects of the program include offering international leaders the opportunity to come to the U.S. to observe campaigning, polling stations, election returns, and the response of the American people to elections, complemented by follow-on educational conversations about democratic processes in their countries.  Berg highlighted the importance of public diplomacy initiatives in advancing inclusive leadership and observed that nations gain in richness and capacity when diversity is reflected in leadership. She also noted that inclusive leadership not only plays an important role in promoting social harmony, but it also helps to ensure economic growth, stating that “the places with the highest social cohesion are the most reliable for investment.” Berg explained that the GMF’s Transatlantic Inclusion Leaders Network (TILN) grew out of work she engaged in while working for the Department of State. TILN is an innovative network of young, diverse leaders across the United States and Europe supported by the Helsinki Commission and State Department.    Berg argued for the expansion of U.S. Government-supported public diplomacy inclusive leadership initiatives targeting youth and diverse populations in western democracies, including through public-private partnerships, the creation of a public diplomacy officer position in Europe to foster Europe-wide next generation transatlantic leadership, and increased political participation measures domestically and abroad for diverse populations.   

  • Helsinki Commission to Review Role of Professional Exchanges in Strengthening Democratic Institutions

    WASHINGTON—The Commission on Security and Cooperation in Europe, also known as the Helsinki Commission, today announced the following hearing: PUBLIC DIPLOMACY, DEMOCRACY, AND GLOBAL LEADERSHIP An Approach for the 21st Century Thursday, December 5, 2019 10:00 a.m. Longworth House Office Building Room 1334 Live Webcast: www.youtube.com/HelsinkiCommission For more than a century, the United States has advanced human rights, economic, and security policy goals in Europe by cultivating people-to-people ties across the Atlantic. More than 500 heads of state, 100 Members of Congress, and thousands of professionals have participated in U.S. Government-sponsored exchanges, including the State Department’s International Visitor Leadership Program, while public and private organizations have hosted similar programs to bring leaders together.    Witnesses at the hearing will explore the origins and role of professional exchanges and other public diplomacy programs that strengthen relationships with U.S. allies in the face of shared challenges including eroding trust in democratic institutions, demographic shifts, technological advancements, and evolving security threats. In particular, the hearing will focus on international exchange initiatives that strengthen democratic institutions by targeting young and diverse leaders, encouraging civic engagement, and fostering social inclusion and cohesion in the OSCE region.  The following witnesses are scheduled to participate: Lora Berg, Senior Fellow, Leadership Programs, German Marshall Fund of the United States Cordell Carter, II, Executive Director, Socrates Program, The Aspen Institute   Stacie Walters Fujii, Chair, American Council of Young Political Leaders (ACYPL)   Photo credit: German Marshall Fund of the United States

  • Representatives Keating and Fitzpatrick Introduce Countering Russian and Other Overseas Kleptocracy (CROOK) Act

    WASHINGTON—Rep. Bill Keating (MA-10) and Helsinki Commissioner Rep. Brian Fitzpatrick (PA-01) today introduced the Countering Russian and Other Overseas Kleptocracy (CROOK) Act. The CROOK Act will establish an anti-corruption action fund to provide extra funding during historic windows of opportunity for reform in foreign countries as well as streamline the U.S. Government’s work building the rule of law abroad. “Russia and other authoritarian states have weaponized corruption, and exposing and countering that malign influence needs to be a priority. For too long, Russian President Vladimir Putin and other Russian politicians and oligarchs have acted with impunity, manipulating U.S. and European financial systems to move and disguise their ill-gotten gains. Their illicit funds are being used to control key economic sectors, fund political parties and organizations that advance Russian interests, and manipulate political processes and policies. The CROOK Act will help prevent Russian and other forms of kleptocracy from eroding democracy, security, and rule of law,” said Rep. Keating. “To counter the weaponization of corruption, the United States must double down on its work to promote the rule of law abroad. However, opportunities for the establishment of the rule of law are rare and success requires that the United States act quickly when reformers come to power and seek to root out corruption. The United States also must take a whole-of-government approach to ensuring that resources are being used effectively and that different U.S. Government agencies are not acting at cross-purposes,” said Rep. Fitzpatrick. The anti-corruption action fund established in the legislation will be funded by 5 percent of fines and penalties imposed pursuant to actions brought under the Foreign Corrupt Practices Act (FCPA). This way, a portion of the monies obtained under the enforcement of the FCPA will be recycled back into further international anti-corruption work. The legislation also establishes several complementary mechanisms to generate a whole-of-government approach to U.S. efforts to strengthen the rule of law abroad. These include an interagency taskforce, the designation of embassy anti-corruption points of contact, and a consolidated online platform for easy access to anti-corruption reports and materials. The Commission on Security and Cooperation in Europe, also known as the U.S. Helsinki Commission, endeavors to counter corruption and malign influence in all its forms. Helsinki Commissioners have sponsored and cosponsored other anti-corruption legislation such as the Kleptocrat Exposure Act (H.R. 3441) and the Rodchenkov Anti-Doping Act (H.R. 835). All House Helsinki Commissioners are original cosponsors of the bill. This includes Helsinki Commission Chairman Rep. Alcee L. Hastings (FL-20), Helsinki Commission Ranking Member Rep. Joe Wilson (SC-02), and Helsinki Commissioners Rep. Steve Cohen (TN-09), Rep. Robert Aderholt (AL-04), Rep. Sheila Jackson Lee (TX-18), Rep. Richard Hudson (NC-08), and Rep. Gwen Moore (WI-04). Rep. John Curtis (UT-03), Rep. Tom Suozzi (NY-03), and Rep. Tom Malinowski (NJ-07) are also original cosponsors  of the legislation.

  • The Helsinki Process: A Four Decade Overview

    In August 1975, the heads of state or government of 35 countries – the Soviet Union and all of Europe except Albania, plus the United States and Canada – held a historic summit in Helsinki, Finland, where they signed the Final Act of the Conference on Security and Cooperation in Europe. This document is known as the Helsinki Final Act or the Helsinki Accords. The Conference, known as the CSCE, continued with follow-up meetings and is today institutionalized as the Organization for Security and Cooperation in Europe, or OSCE, based in Vienna, Austria. Learn more about the signature of the Helsinki Final Act; the role that the Conference on Security and Cooperation in Europe played during the Cold War; how the Helsinki Process successfully adapted to the post-Cold War environment of the 1990s; and how today's OSCE can and does contribute to regional security, now and in the future.

  • Co-Chairman Wicker, Sen. Sinema Introduce Legislation to Fight Illicit Tobacco Trade

    WASHINGTON—Helsinki Commission Co-Chairman Sen. Roger Wicker (MS) and Sen. Kyrsten Sinema (AZ) today introduced the Combating the Illicit Trade in Tobacco Products Act (CITTPA) in the Senate. The bill was introduced by Helsinki Commissioners Rep. Sheila Jackson Lee (TX-18) and Rep. Richard Hudson (NC-08) in the House in March as H.R.1642. “The illicit tobacco trade supports political corruption, organized crime, and terrorism worldwide. Our bill would take aim at this source of financing from these bad actors and the governments that enable them,” said Co-Chairman Wicker. “We’re combatting the illicit tobacco trade to protect Arizonans, strengthen our economy, and disrupt terrorist and criminal organizations who profit from such illegal activity,” said Sen. Sinema. The Combatting the Illicit Trade in Tobacco Products Act (CITTPA) would improve the U.S. Government’s ability to identify and deter those engaging in the trade of illicit tobacco. The bill would: Enable the United States to deter countries involved in the illicit trade in tobacco, and better assist its allies. The bill grants the Department of State the authority to withhold U.S. foreign assistance from those countries knowingly profiting from the illicit trade in tobacco or its activities. In countries where the government is working to stop these trafficking efforts, the Department of State would be able to provide assistance for law enforcement training and investigative capacity. Help the United States target individuals assisting in the illicit tobacco trade. It authorizes the President of the United States to impose economic sanctions and travel restrictions on any foreign individual found to be engaged in the illicit tobacco trade, and requires the president to submit a list of those individuals to Congress. Provide better information on countries involved with the illicit tobacco trade. The legislation requires the Department of State to report annually on which countries are determined to be a major source of illicit tobacco products or their components, and identify which foreign governments are actively engaged and knowingly profiting from this illicit trade. In July 2017, the Helsinki Commission held a hearing on illicit trade in tobacco products, which included testimony from academia, public health advocacy, and industry.

  • Curbing Corruption through Corporate Transparency and Collaboration

    The United Kingdom has implemented some of the world’s most innovative anti-corruption policies. In particular, its public beneficial ownership registry is the only active one of its kind and its Joint Money Laundering Intelligence Taskforce models effective collaboration between law enforcement and the private sector. This briefing examined these policies and the United Kingdom’s broader strategy to counter illicit finance. Panelists discussed how the United Kingdom implements its policies, their successes and shortcomings, and what remains to be done. Though U.S. corporate transparency proposals take a non-public approach, panelists also discussed the lessons that the United States can draw from the British experience. John Penrose, M.P., U.K. Prime Minister’s Anti-Corruption Champion, explained the reputational risks associated with money laundering in the U.S. and U.K. financial markets to the rules-based system. Penrose explained the British approach of establishing a beneficial ownership registry, saying, “What we are trying to do in the U.K. is we are trying to set up something which will effectively create a global norm to say let’s all have some kind of a register about who owns and controls these companies.  We’re not asking for the moon.  As I said, we don’t need to know everybody who owns a piece of every company.  We just need to know who the controlling minds and the controlling interests are.” Edward Kitt, Serious and Organized Crime Network Illicit Finance Policy Lead at the British Embassy in Washington, covered the issues the U.K is facing with their beneficial ownership policy. Kitt explained, “One challenge we have is feedback to financial institutions on suspicious activity reports. Often, financial institutions will submit suspicious activity reports and they don’t hear any feedback as to actually what was the utility of that, how useful was that.” Even considering the difficulty the policy has experienced, Kitt maintained, “It’s not just a talking shop; it delivers. And… it’s assisted in identifying and restraining in excess of £9 million.  So, the results are palpable.” Mark Hays, Anti-Money Laundering Campaign Leader at Global Witness and the sole American panelist, reflected on his company’s investigations into corruption: “Simply put, if the U.S. wants to continue to show this leadership we need to match the U.K.’s efforts in establishing some modicum of disclosure for beneficial ownership transparency for companies.” Hays continued, “If we don’t, not only will we be failing to live up to this leadership test, but we will put ourselves at greater risk for becoming a haven for bad actors and their ill-gotten gains.” Nate Sibley, Research Fellow for the Kleptocracy Initiative at the Hudson Institute, spoke to how the UK’s policies could transfer to the U.S. Sibley described a House Financial Services Committee bill, “introduced by Representative Carolyn Maloney called the Corporate Transparency Act,” that ensures companies disclose beneficial owners. He went on to explain that the bill “would create a private beneficial ownership register. So not a public one like they have in the U.K., but one that was accessible only to law enforcement, under very strict and controlled circumstances.” Sibley outlined the ways that the U.S. federal system changes the prospect of the registry logistics, but maintained that it would still work in the U.S.

  • Shady Shipping

    Trade-based money laundering (TBML) is the process of disguising the proceeds of crime and moving value through trade transactions in an attempt to legitimize their illicit origins. This highly sophisticated form of money laundering has become a favorite method for transnational criminals, dictators, and terrorists to move ill-gotten gains to new jurisdictions. This event examined what TBML is, how it works, and why it has become such a ubiquitous method of laundering money. Panelists also discussed the broader interplay of illicit commerce, global corruption, and TBML. Finally, panelists recommended practical steps the United States and non-governmental organizations can take to counter TBML. David Luna, President and CEO of Luna Global Networks, shared his insights on the dark side of globalization and how it fits into the TBML paradigm. Luna outlined the need to increase understanding of the networks between illicit commerce and money laundering across legal and illegal means through convergence crimes. He spoke to the methodologies of “cleaning dirty money” utilized by kleptocrats, criminal organizations, and terrorist groups, while expressing the importance of tracing money and the value of goods to expose illicit crimes. Luna cited a 2015 World Economic Forum report to support his points, which estimated the value of transnational criminal activities between 8-15 percent of Gross Domestic Product, even by conservative standards, totaling around 80 trillion in the US market. John Cassara, retired Special Agent of the U.S. Department of the Treasury, spoke about the confusion surrounding TBML, both in understanding and enforcement. He explained that TBML is the largest method of money laundering because of excess ways to commit it: customs fraud, tax evasion, export incentive fraud, evading capitol controls, barter trade, and underground financial systems. Cassara explained how money is transferred under the noses of customs enforcement by undervaluing or overvaluing an invoice of an otherwise legal trade. Cassara asked, “If our highly trained police force can’t catch this, what about the rest of the world?” Lakshmi Kumar, Policy Director at Global Financial Integrity, described the difficulty with tracking TBML, both domestically and internationally. She outlined how domestic policy and law complicates internal tracking, while the lack of consistent transnational collaboration and information sharing complicates international tracking. Kumar spoke to the components of the trade chain and how hard it is to watch all the mechanisms with due diligence. Explaining the role of banks, Kumar noted that 80 percent of all international trade occurs through open account trading, in which banks aren’t involved or able to offer oversight. This allows for trade profits to be separated into various accounts, tricking the customs and enforcement agencies to enforce a lower level of taxation on the profits and the freights and allowing for TBML. In summary, even with world class law enforcement, the U.S. legal and financial frameworks needs to catch up in order to adequately combat TBML.

  • Helsinki Commission to Hold Briefing on UK Anti-Corruption Policies

    WASHINGTON—The Commission on Security and Cooperation in Europe, also known as the Helsinki Commission, today announced the following briefing: CURBING CORRUPTION THROUGH CORPORATE TRANSPARENCY AND COLLABORATION The British Model Wednesday, May 29, 2019 9:00 a.m. Rayburn House Office Building Room 2128 Live Webcast: www.facebook.com/HelsinkiCommission The United Kingdom has implemented some of the world’s most innovative anti-corruption policies. In particular, its public beneficial ownership registry is the only active one of its kind and its Joint Money Laundering Intelligence Taskforce models effective collaboration between law enforcement and the private sector. This briefing will examine these policies and the United Kingdom’s broader strategy to counter illicit finance. Panelists will discuss how the United Kingdom implements its policies, their successes and shortcomings, and what remains to be done. Though U.S. corporate transparency proposals take a non-public approach, panelists will also discuss the lessons that the United States can draw from the British experience. Opening remarks will be provided by John Penrose, M.P., the U.K. Prime Minister’s Anti-Corruption Champion. The following panelists also are scheduled to participate: Mark Hays, Anti-Money Laundering Campaign Leader, Global Witness Edward Kitt, Serious and Organized Crime Network Illicit Finance Policy Lead, British Embassy Washington Nate Sibley, Research Fellow, Kleptocracy Initiative, Hudson Institute

  • Helsinki Commission and House Financial Services Committee Announce Joint Briefing on Trade-Based Money Laundering

    WASHINGTON—The Commission on Security and Cooperation in Europe, also known as the Helsinki Commission, in partnership with the House Financial Services Committee, today announced the following joint briefing: SHADY SHIPPING Understanding Trade-Based Money Laundering Friday, May 24, 2019 9:30 a.m. Rayburn House Office Building Room 2360 Live Webcast: www.facebook.com/HelsinkiCommission Trade-based money laundering (TBML) is the process of disguising the proceeds of crime and moving value through the use of trade transactions in an attempt to legitimize their illicit origins. This highly sophisticated form of money laundering has become a favorite method for transnational criminals, dictators, and terrorists to move ill-gotten gains to new jurisdictions. This event will examine what TBML is, how it works, and why it has become such a ubiquitous method of laundering money. Panelists will also discuss the broader interplay of illicit commerce, global corruption, and TBML. Finally, panelists will recommend practical steps the United States and non-governmental organizations can take to counter TBML. The following panelists are scheduled to participate: John Cassara, Special Agent, U.S. Department of the Treasury, retired Lakshmi Kumar, Policy Director, Global Financial Integrity David Luna, President and CEO, Luna Global Networks

  • Jackson Lee and Hudson Introduce Legislation to Fight Illicit Tobacco Trade

    WASHINGTON—Representatives Sheila Jackson Lee (TX-18) and Richard Hudson (NC-08) today introduced the Combating the Illicit Trade in Tobacco Products Act (CITTPA) in the House of Representatives. Both Rep. Jackson Lee and Rep. Hudson serve on ad hoc committees of the OSCE Parliamentary Assembly, which facilitates interparliamentary dialogue to advance human rights, military security, and economic cooperation in Europe, Central Asia, and North America. “The illicit trade in tobacco underpins some of the gravest transnational threats to the United States and our allies. Illicit tobacco trafficking is not a victimless offense; it facilitates other, more heinous crimes including money laundering and trafficking in weapons, drugs, antiquities, diamonds, counterfeit goods, and—worst of all—human beings,” said Rep. Jackson Lee. “Cigarette smuggling is not just an economic issue, it’s a public safety issue. Illegal cigarettes help finance organized crime and terrorism. Smuggled cigarettes are also more likely to end up in the hands of children and teens. The Combatting the Illicit Trade in Tobacco Products Act will give the United States better tools and more information to combat this dangerous activity,” said Rep. Hudson. The Combatting the Illicit Trade in Tobacco Products Act (CITTPA) would improve the U.S. Government’s ability to identify and deter those engaging in the trade of illicit tobacco. The bill would: Provide better information on countries involved with the illicit tobacco trade. The legislation requires the U.S. Secretary of State to report annually on which countries are determined to be a major source of illicit tobacco products or their components, and identify which foreign governments are actively engaged and knowingly profiting from this illicit trade. Enable the United States to deter countries involved in the illicit trade in tobacco, and better assist its allies. The bill grants the U.S. Secretary of State the ability to withhold U.S. foreign assistance from those countries knowingly profiting from the illicit trade in tobacco or its activities. In countries where the government is working to stop these trafficking efforts, the Secretary of State would be able to provide assistance for law enforcement training and investigative capacity. Help the United States target individuals assisting in the illicit tobacco trade. It authorizes the President of the United States to impose economic sanctions and travel restrictions on any foreign individual found to be engaged in the illicit tobacco trade, and requires the president to submit a list of those individuals to Congress. The Helsinki Commission organizes U.S. delegations to OSCE PA annual sessions and other meetings, as well as official delegations to participating States and other OSCE meetings to address democratic, economic, security, and human rights developments. The commission also convenes public hearings and briefings with expert witnesses on OSCE-related issues. In July 2017, the Helsinki Commission held a hearing on illicit trade in tobacco products, which included testimony from the academic community, the public health advocacy community, and industry.

  • Helsinki Commission Leaders Regret Closure of Central European University in Budapest

    WASHINGTON—Ahead of the impending December 1 closure of Central European University in Hungary, Helsinki Commission Chairman Sen. Roger Wicker (MS) and Ranking Senate Commissioner Sen. Ben Cardin (MD) issued the following statement: “We regret that Central European University (CEU) in Budapest will cease its operations in Hungary because of restrictions imposed by the Government of Hungary. Since its founding after the fall of communism, CEU has symbolized the renewal of academic freedom, Hungary's robust intellectual traditions, and the ties between Hungary and the rest of the world. With CEU’s closure, the Government of Hungary is shuttering a highly successful economic enterprise and an institution of higher learning that has earned respect around the world. “We commend Ambassador Cornstein for his efforts to foster a successful outcome. Although CEU met every condition demanded of it, the Hungarian Government was resolved not to take ‘yes’ for an answer.  At a time when this administration has worked to forge closer ties with Hungary, the Government of Hungary is taking an isolationist step, and Hungarians will lose this U.S.-accredited institution.” In 2017, the Hungarian legislature adopted a higher education law known as “Lex CEU,” which established criteria for universities operating in Hungary that award foreign-accredited degrees. In practice, the law affected only CEU. At the 2017 OSCE Parliamentary Assembly (PA) in Minsk, Belarus, parliamentarians from OSCE participating States expressed concern about the legislation, which “risk[s] undermining academic freedom, inhibiting research and development, and impeding scientific advancement.”

  • Belarus Reality Check

    On October 22, 2018, over 50 international analysts, practitioners, diplomats and policymakers gathered in Vilnius, Lithuania, for the eighth Belarus Reality Check, a full-day review of the Belarusian economy, political and human rights developments, and changes in the regional security situation in and around Belarus. Former Helsinki Commission Senior State Department Advisor Scott Rauland joined representatives of the IMF, the World Bank, Lithuania’s Foreign Ministry, the EU Ambassador to Belarus, and dozens of analysts from Belarus, Lithuania, Latvia, Poland, Ukraine, Germany, and other European nations for the event. Political Developments in Belarus During the first panel, presenters noted that sovereignty and stability remain top priorities for the Government of Belarus. Despite a great deal of work by the OSCE’s Office of Democracy Institutions and Human Rights (ODIHR) in recent years, its recommendations to improve Belarusian elections have still not been implemented, and panelists were skeptical that any action would be taken before parliamentary and presidential elections scheduled for 2020.  Although the Belarusian political opposition remains divided and marginalized, several panelists believed that support for the opposition is growing.  Unfortunately, there was consensus that Russian malign influence in Belarus is also growing, primarily via Russian exploitation of social media platforms in Belarus. The Belarusian Economy The second panel featured four presentations that examined challenges facing the Belarusian economy and analyzed the country’s agonizing choice between beginning long-overdue reforms or remaining dependent on Russian subsidies for oil and gas to shore up failing state-owned enterprises (SOEs).  Panelists pointed out that— due largely to those subsidies—the Belarusian economy has fared better than many of its neighbors for years, and that Belarusians enjoy a better standard of living than a number of their Eastern European counterparts.  Polling by the IPM Research Center has shown that a top priority for Belarusians, and thus for the Government of Belarus, is low inflation.  According to the same study, most Belarusians are satisfied with the current state of affairs. Should the subsidies end, Belarus could face a true crisis.  Belarusian Foreign Policy The final panel discussed Belarusian relations with its neighbors—strangely including China, but omitting the U.S.  Positive trend lines were noted for Belarusian relations with all major countries except Russia, and international organizations have demonstrated increased interest in Belarus. In particular, OSCE Secretary General Greminger visited Belarus for a third time in 2018.  Anaïs Marin of France, recently appointed as UN Special Rapporteur on Belarus, remarked that progress had been made by Belarus on its 2016 National Action Plan on Human Rights, but described continuing Belarusian support of the death penalty as something that required continued scrutiny by the international community.  One analyst took EU policy to task for “aiming at progress, not results.”  Russian policy in Belarus, he claimed, is intended to produce results—namely, to keep Belarus under control and on a short leash.  Another panelist described the conundrum of trying to contain Russian influence in Belarus: “We can’t get rid of Russian influence (money) in Latvia or London; how can we expect to get them out of Belarus?” In a concluding question and answer session, Rauland—who served as charge d’affaires at the U.S. Embassy in Minsk from June 2014 through July 2016—asked the panel to comment on the diverging EU and U.S. strategies on Belarus, noting that the EU had decided to lift sanctions on Belarus completely in 2016, while the U.S. had merely suspended them while awaiting further improvements in human rights.  The panelist who responded to that question described EU policy as a mistake, noting that political prisoners had been released (the event which triggered sanctions relief by the EU), but that their civil rights had not been restored, something he felt should have been a condition for the EU completely lifting sanctions. Answers to a question earlier in the day, asking whether panelists were optimistic about the future for Belarus, may have captured the range of views of the participants best of all.  “Yes,” replied the first to answer.  “I’m ‘realistic’ about progress,” replied the next panelist.  “And I’m an optimistic realist,” concluded the third. The event was organized by the Eastern Europe Studies Centre with the support of USAID, Pact and Forum Syd, together with programmatic contributions from the Carnegie Endowment for International Peace.

  • Incorporation Transparency

    “Steal in Russia and spend in the West” is how Kremlin critic Vladimir Kara-Murza describes the behavior of Russian President Vladimir Putin and his associates. A similar principle has become commonplace in most authoritarian regimes. Countries in which the rule of law is strong find themselves at risk from ill-gotten gains that autocrats have hidden within their borders. Not only does this make them complicit in the perpetuation of corruption abroad, but it also provides hidden “sleeper capital” through which autocrats and their cronies can exert influence domestically. The countries in which money is most often hidden—the United States, the United Kingdom, and many countries of the European Union, especially France and Germany—have a strong rule of law system and desirable markets. In their large cities, representatives of autocratic systems can purchase real estate, retain lawyers and PR firms to conduct influence operations and reputation laundering, and access elite circles and high society thanks to their illicit wealth. However, in the last few years, these countries have become more aware of the infiltration of their markets by authoritarian finance and have taken steps to curb its flow into their borders. They have sought to fortify themselves through a variety of measures, including beneficial ownership transparency (BOT). BOT is a government policy which requires incorporated entities to report their “beneficial owners”: the real individuals who ultimately enjoy the benefits of ownership of a company or property, or the underlying asset of value. Beneficial ownership data is then available to law enforcement or the public. This is vital to transparency because, in many jurisdictions, beneficial owners do not necessarily need to be listed on legal paperwork—they may list “nominee owners” who hold assets on their behalf. While anonymous shell companies have legitimate uses, they are often abused to launder money. Autocrats can create a chain of such companies across many jurisdictions, evading law enforcement and moving stolen money from company to company until that money is nearly untraceable. At that point, the money is considered “washed” and can be used for all manner of ostensibly legitimate purposes. Download the full report to learn more. Contributor: Paul Massaro, Policy Advisor

  • Free-Trade Zones

    Free-trade zones (FTZs) are duty-free areas within a country’s borders designed to encourage economic development by allowing goods to be imported and exported under less restrictive conditions than are present elsewhere in that country. In many places, these zones generate jobs and revenue; however, they also are hospitable to illicit trade and money laundering. In the worst cases, law enforcement fails and FTZs become global hubs of criminal activity. According to Dr. Clay Fuller of the American Enterprise Institute, attempts to study FTZs are often thwarted by discrepancies in the definition and measurement of FTZs, a lack of coordination between the private and public sectors to collect data, and a dearth of globally aggregated data. Dr. Fuller agreed that FTZs have played a role in fostering corruption and suggested that better aggregate data is needed to reach further conclusions.  Essential to overcoming their challenges, FTZs must first be identified in a standardized format before the data can be accurately amalgamated. The Organization for Economic Cooperation and Development (OECD) has begun to study these problems from a global perspective through its Task Force on Countering Illicit Trade. Jack Radisch, Senior Project Manager at the OECD, reported that the trade in fakes is a $461 billion industry. This problem is exacerbated by FTZs, which can enable the movement of illegal goods. Stephane Jacobzone, Deputy Head of OECD’s Public Governance Division, expressed concerns about global “governance gaps,” such as those created by FTZs with poor oversight, which allow criminal activity to thrive. Pedro Assares Rodrigues, a EUROPOL Representative with the Europol Liaison Bureau, underscored the significance of global coordination by discussing the risk of FTZs to harbor terrorist activity. The United States and EUROPOL have united to combat global security threats through projects such as the Secure Information Exchange Network Application, allowing the US and EU to work efficiently and securely. Alongside Mr. Assares Rodrigues’ call for greater international coordination, panelists offered potential policy responses to criminal activities within the FTZs from both the private and public sectors.  For example, Dr. Fuller proposed that private companies should be enlisted to report data on FTZs, though he stipulated that government must protect the privacy of companies throughout the process. Dr. Fuller also added that countries that already participate in international data sharing agreements or multilateral conversations about FTZs should beseech their trading partners to join these same data-sharing partnerships.  Mr. Radisch and Mr. Jacobzone added that the OECD is working toward a comprehensive FTZ “code of conduct” that could eventually be adopted by member states.

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