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press release
Helsinki Commission Welcomes Passage of Trap Provision in 2022 National Defense Authorization Act
Wednesday, December 15, 2021WASHINGTON—Helsinki Commission Chairman Sen. Cardin (MD), Co-Chairman Rep. Steve Cohen (TN-09), Ranking Member Sen. Roger Wicker (MS), and Ranking Member Rep. Joe Wilson (SC-02) today welcomed the passage of the Transnational Repression Accountability and Prevention (TRAP) provision as part of the National Defense Authorization Act (NDAA) for Fiscal Year 2022. “By co-opting and undermining the rule of law to harass and intimidate dissidents and political opponents, corrupt regimes threaten our national security,” said Chairman Cardin. “Our provision will make it U.S. policy to fight exploitation of INTERPOL, including by naming and shaming member states that abuse its mechanisms. This amendment will protect the United States, our allies, and all those fighting or fleeing authoritarian regimes from extraterritorial and extrajudicial abuse.” “We’ve seen time and again how corrupt dictators take advantage of INTERPOL to intimidate and harass those who expose their immoral deeds, even after they have fled their homes and their country in search of safety,” said Co-Chairman Cohen. “The TRAP provision will protect these dissidents and ensure that our own institutions are not used against us—or them.” “There is no reason for any democracy, especially the United States, to be forced to play a part in authoritarian regimes’ blatant abuse of INTERPOL Red Notices,” said Sen. Wicker. “I am pleased Congress has taken action to name publicly the abusers, such as Russia and China, and prevent American law enforcement from having to do the dirty work of these repressive autocrats.” “INTERPOL should enable us to crack down on criminals worldwide,” said Rep. Wilson. “Instead, the criminals have taken over the institution, using it to target those who oppose them. The TRAP provision will protect the United States from this abuse and ensure that we do everything we can to restore the rule of law to INTERPOL.” “Increasing transparency and accountability at INTERPOL underscores the bipartisan commitment of the United States Senate to push back against countries, large or small, seeking to distort legitimate law enforcement cooperation to instead pursue political opponents or personal vendettas,” said Sen. Bob Menendez (NJ), Chairman of the Senate Foreign Relations Committee. “This new provision will strengthen protections for human rights defenders, political dissidents, and journalists, and pave the way for the international community to join the United States in pressing for reforms and standing against the abuse of INTERPOL Red Notices by China and Russia, among others.” The Transnational Repression Accountability and Prevention (TRAP) Act was introduced in 2021 in the Senate by Sen. Wicker and Chairman Cardin and in the U.S. House of Representatives by Co-Chairman Cohen and Rep. Wilson. The legislation makes fighting abuse of INTERPOL a key goal of the United States at the organization, mandates that the United States name the worst abusers of INTERPOL and examine its own strategy to fight INTERPOL abuse, and protects the U.S. judicial system from authoritarian abuse.
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briefing
Uniting Against Corruption
Tuesday, December 07, 2021At a virtual kickoff event on December 7, leaders of the U.S. Caucus against Foreign Corruption and Kleptocracy, the EU Parliament Anti-Corruption Intergroup, and the UK All-Party Parliamentary Group on Anti-Corruption and Responsible Tax formally launched the Inter-Parliamentary Alliance against Kleptocracy. Members of the alliance are politicians leading the fight in their respective parliaments against corruption and kleptocracy. The launch immediately preceded President Joe Biden’s December 9 – 10 Summit for Democracy, where approximately 110 countries committed to fighting corruption and renewing democratic values. Helsinki Commission Chairman Sen. Ben Cardin (MD), who has championed anti-corruption efforts throughout Congress, welcomed the formation of the alliance at the kickoff event. The event began with opening remarks from Chairman Cardin, and then featured remarks from several other parliamentarians: U.S. Representatives Tom Malinowski (NJ-07) and Helsinki Commission Ranking Member Joe Wilson (SC-02); Members of the UK Parliament Margaret Eve Hodge (Barking) and Andrew John Bower Mitchell (Sutton Cornfield); and Members of the European Parliament Daniel Freund (Germany), Katalin Cseh (Hungary), and Lara Wolters (Netherlands). Helsinki Commission Senior Policy Advisor Paul Massaro moderated the discussion. Chairman Cardin traced the history of successful anti-corruption legislation in the United States. He touched on the Foreign Corrupt Practices Act of 1977, the Money Laundering Control Act of 1986, and the Global Magnitsky Act of 2016 as examples both of bipartisan cooperation and of U.S. leadership in the international fight against corruption. The next step, he said, is dealing with enablers. “These are the accountants, the lawyers, the financial advisers. They allow kleptocrats to be able to do their corruption through the use of rule of law of other countries,” he noted. Rep. Malinowski stressed the connection between corruption and authoritarianism: “Corruption is the reason for being for most authoritarian regimes. It sustains them. It profits them.” Nonetheless, he observed that corruption is also a vulnerability for such regimes, as citizens ultimately refuse to accept kleptocratic leaders. Rep. Malinowski then discussed the ENABLERS Act, which seeks to close loopholes that enable kleptocrats to hide their money. MP Hodge echoed the need to address the enablers of corruption, the structures “through which the world’s crooks and kleptocrats take their stolen money and let it disappear.” She then explained her push, along with MP Mitchell and others, for a public register of beneficial ownership to combat the role of property in UK money laundering. MP Mitchell further discussed the push for a public register of beneficial ownership, a particularly important policy as the UK “may be responsible for up to 40 percent of the money laundering that goes on in the world.” MP Freund continued the discussion of transparency, emphasizing that the European Parliament cannot see the final beneficiaries of EU-funded projects. He welcomed the possibility of working with the new U.S. administration and cited the success of the Magnitsky sanctions as an instance of effective U.S. leadership against kleptocracy and corruption. Rep. Wilson echoed MP Freund’s enthusiasm for cooperation, calling corruption “a bipartisan and cross-border problem” that requires cooperative solutions. Like Rep. Malinowski, he noted the link between corruption and authoritarianism and suggested that closing the loopholes available to authoritarian governments requires international cooperation. MP Cseh built on the previous discussion of authoritarianism, adding that corruption is inseparably linked with human rights abuses. “Autocrats and oligarchs oppress their people so that they can enrich themselves… and they are desperately holding onto power because they want to escape prosecution for corruption,” she said. She then drew on her experience as a Hungarian opposition politician to discuss the connection between corruption and democratic backsliding. MP Wolters delivered the final remarks of the event on the new state of the EU in light of Hungary’s democratic backsliding. “I don’t think the EU was ever designed with the idea that we would end up with strange bedfellows internally within our system,” he said. This breach in EU sanctity entails new problems as these “strange bedfellows” have access to funding meant improve the lives of EU citizens. The event concluded with questions from the audience. Chairman Cardin and Rep. Malinowski responded to question on the resources available to victims of corrupt and kleptocratic regimes, and MPs Freund and Cseh addressed the potential for proactive measures against interference by kleptocratic regimes in legislatures. The Inter-Parliamentary Alliance against Kleptocracy aims to build a transparent and accountable global financial system; promote government transparency, allowing for effective public oversight; disable transnational corrupt networks, while deterring the movement of dirty money into democracies; support the role of free media and journalists in exposing the risks from kleptocracy; and advocate for strong anti-corruption standards for public officials and their enforcement. Planned projects include coordinating targeted sanctions and public visa bans, synchronizing anti-money laundering frameworks, harmonizing cross-border investigations into grand corruption, and promoting robust anti-corruption ethics frameworks for public officials. Members of the Inter-Parliamentary Alliance against Kleptocracy subscribe to the principles that democratic states are based on the rule of law and must safeguard this system against the taint of corruption and illicit finance; that kleptocracy is an authoritarian governance model in which political leaders routinely engage in illicit self-enrichment, maintain power through corrupt patronage networks, exploit democracies to conceal and protect stolen assets, and use strategic corruption as a tool of foreign policy; and that kleptocracy poses the most profound challenge for democratic governance in the 21st century as it corrodes the rule of law from within.
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press release
Inter-Parliamentary Alliance Against Kleptocracy to Unite Political Leaders in Transatlantic Battle Against Corruption
Friday, December 03, 2021BRUSSELS, LONDON, WASHINGTON—At a virtual kickoff event on December 7, leaders of the U.S. Caucus against Foreign Corruption and Kleptocracy, the EU Parliament Anti-Corruption Intergroup, and the UK All-Party Parliamentary Group on Anti-Corruption and Responsible Tax will formally launch the Inter-Parliamentary Alliance against Kleptocracy. Members of the alliance are politicians leading the fight in their respective parliaments against corruption and kleptocracy. The launch immediately precedes to President Joe Biden’s December 9 – 10 Summit for Democracy, where approximately 110 countries will commit to fighting corruption and renewing democratic values. Helsinki Commission Chairman Sen. Ben Cardin (MD), who has championed anti-corruption efforts throughout Congress, will welcome the formation of the alliance at the kickoff event. UNITING AGAINST CORRUPTION Launch of the Inter-Parliamentary Alliance against Kleptocracy Tuesday, December 7, 2021 11:00 a.m. ET Register: https://bit.ly/3IsbbvY “Countering corruption—a clear national security threat—is one of the three pillars of the upcoming Summit for Democracy. For me, it is an essential aspect of the meeting,” said Chairman Cardin. “It isn’t enough that the United States prioritizes the fight against corruption. To curb this global scourge, democracies must work together. I welcome the formation of the Inter-Parliamentary Alliance against Kleptocracy, which will help harmonize our approaches to countering corruption and closing our systems to dirty money.” The Inter-Parliamentary Alliance against Kleptocracy is an alliance of legislative groups committed to countering the threat of global corruption. The new alliance will focus on fighting kleptocracy, an authoritarian governance model in which political leaders routinely engage in illicit self-enrichment, maintain power through corrupt patronage networks, exploit democracies to conceal and protect stolen assets, and use strategic corruption as a tool of foreign policy. Because the fight against foreign corruption spans the globe, the alliance will enable members and staff to share perspectives and coordinate efforts to confront the growing threat of authoritarian corruption. The alliance will hold periodic events, sponsor informal roundtables and briefings with leading experts, and coordinate initiatives across borders. “Nothing gets under the skin of dictators more than democracies working together—and confronting corruption is the best way to align ourselves with public sentiment in their countries. This parliamentary alliance will help ensure that lawmakers from the world’s democracies are working together to pass and enact laws against amassing and hiding illicit wealth,” said Rep. Tom Malinowski (NJ-07), Co-Chair of the U.S. Caucus against Foreign Corruption and Kleptocracy. “Corruption is at the heart of all human rights abuse. Journalists are silenced and civil society is attacked because these individuals threaten to expose the corruption that underpins all strongmen,” said Helsinki Commission Co-Chairman Rep. Steve Cohen (TN-09), a member of the U.S. Caucus against Foreign Corruption and Kleptocracy. “By uniting with our allies to root out corruption, we take aim at the very essence of authoritarianism. That is why the Inter-Parliamentary Alliance against Kleptocracy is so important. Corruption is global by nature. But if all democracies close their doors to it, we can succeed.” “Corruption is the new communism. It is the uniting force of dictators and the system they seek to export. And like communism, the USA needs to join together with its allies to defeat it. I am pleased to welcome the establishment of the Inter-Parliamentary Alliance against Kleptocracy, which will unite democratic allies against the corruption of Russian oligarchs, CCP princelings, Venezuelan thugs, and Iranian mullahs,” said Helsinki Commission Ranking Member Rep. Joe Wilson (SC-02). “We have been seeing autocrats like Viktor Orbán successfully undermining European democracy for years from within, with increasing support from their experienced counterparts in Russia and beyond. If they close their ranks, all democratic parties need to do the same. This is not a fight that a single actor can win alone,” said MEP Daniel Freund of Germany, Co-Chair of the EU Parliament Anti-Corruption Intergroup. “Kleptocrats are destroying democracy and undermining the European Union. With this alliance we can stop European autocrats like Viktor Orbán and could be a powerful tool to influence not only national legislation but agreements on fighting corruption, transparency, accountability and criminal cooperation between the EU and the US. We should keep this alliance open for national lawmakers as well within the EU, allowing for example the devoted members of the Hungarian opposition parties also to join and commit themselves to such a noble cause. We have to fight together and we will fight together,” said MEP Katalin Cseh of Hungary, Member of the EU Parliament Anti-Corruption Intergroup’s leadership bureau. “Dirty money is at the root of many evils. From drug smuggling to terrorism, from money laundering to human trafficking, and from fraud to corruption. But if we can follow the money then we can start to put a stop to all manner of heinous crimes. That's why the launch of the Inter-Parliamentary Alliance on Kleptocracy represents a powerful moment as the world's democracies come together for the fight against illicit finance,” said UK MP Margaret Hodges, Chair of the All-Party Parliamentary Group on Anti-Corruption and Responsible Tax. “The movement of illicit finance is a global problem that requires a global solution. The harm caused to global security and democracy is facilitated by lack of coordination between different legislatures, and I am delighted to be part of the Inter-Parliamentary Alliance on Kleptocracy. I look forward to working with colleagues across the world to ensure that we give Kleptocrats nowhere to hide,” said UK MP Kevin Hollinrake, Vice Chair of the All-Party Parliamentary Group on Anti-Corruption and Responsible Tax. “It is not enough that America fight dictators – our friends and allies must also fight them. By working together to reject blood money, we can successfully deny dictators and their cronies access to our markets. I am thrilled about the formation of the Inter-Parliamentary Alliance against Kleptocracy. This international alliance of like-minded kleptocracy fighters will ensure that killers and thugs have no safe haven,” said Rep. Maria Elvira Salazar (FL-27), a founding member of the U.S. Caucus against Foreign Corruption and Kleptocracy. The Inter-Parliamentary Alliance against Kleptocracy aims to build a transparent and accountable global financial system; promote government transparency, allowing for effective public oversight; disable transnational corrupt networks, while deterring the movement of dirty money into democracies; support the role of free media and journalists in exposing the risks from kleptocracy; and advocate for strong anti-corruption standards for public officials and their enforcement. Planned projects include coordinating targeted sanctions and public visa bans, synchronizing anti-money laundering frameworks, harmonizing cross-border investigations into grand corruption, and promoting robust anti-corruption ethics frameworks for public officials. Members of the Inter-Parliamentary Alliance against Kleptocracy subscribe to the principles that democratic states are based on the rule of law and must safeguard this system against the taint of corruption and illicit finance; that kleptocracy is an authoritarian governance model in which political leaders routinely engage in illicit self-enrichment, maintain power through corrupt patronage networks, exploit democracies to conceal and protect stolen assets, and use strategic corruption as a tool of foreign policy; and that kleptocracy poses the most profound challenge for democratic governance in the 21st century as it corrodes the rule of law from within.
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article
30 Years After Ovcara
Friday, November 19, 2021By Robert Hand, Senior Policy Advisor On November 20, 1991, after the fall of the city of Vukovar in Croatia, militant Serb forces removed 265 ill and injured Croats from a hospital. They were taken to the nearby Ovčara farm southeast of Vukovar, where they were abused before being shot and killed, with their bodies dumped in a mass grave. In addition to wounded members of the Croatian armed forces were civilians, including some women and children. The Helsinki Commission strongly supported the international effort to prosecute those responsible for war crimes, crimes against humanity, and genocide in the former Yugoslavia, including those most responsible for the crime at Ovčara, which took place early in a series of conflicts associated with Yugoslavia’s disintegration throughout the 1990s. Many obstacles stood in the way, but after years of persistent effort justice prevailed. However, malicious acts supporting territorial aggression continue in the OSCE region and elsewhere. When remembering Ovčara, it is important to acknowledge the brave few in Serbia—civil society advocates, political activists, journalists, lawyers and judges, and everyday citizens—who consistently have refused to associate themselves with the terrible crimes committed in their name in the 1990s, and seek to this day not only justice but a needed acknowledgement of reality in the face of continued denial and revisionism. A wider acknowledgement led by those holding power today will mean a better future for Serbia and its neighbors tomorrow.
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hearing
Confronting Kremlin & Communist Corruption
Thursday, November 18, 2021The Kremlin and the Chinese Communist Party, as well as other U.S. adversaries, practice kleptocracy, an authoritarian governance model in which political leaders routinely engage in illicit self-enrichment, maintain power through corrupt patronage networks, exploit democracies to conceal and protect stolen assets, and use strategic corruption as a tool of foreign policy. Kleptocracy now poses the most serious challenge to democratic governance worldwide. President Biden has declared countering corruption a core national security interest and Congress has responded with a series of legislative proposals to fight kleptocracy both at home and abroad. On November 18, the Commission on Security and Cooperation in Europe brought together experts on kleptocracy to examine how the United States can confront foreign corruption. In particular, witnesses discussed the ways that the United States can fortify its system against the taint of corruption and hold kleptocrats to account. The first panel featured testimony by Representatives Tom Malinowski (NJ-07) and María Elvira Salazar (FL-27), while the second panel included witnesses Leonid Volkov, Chief of Staff to Alexei Navalny; Elaine Dezenski, Senior Advisor at the Center on Economic and Financial Power; and Scott Greytak, Advocacy Director at Transparency International. Helsinki Commission Chairman Sen. Ben Cardin (MD) opened the hearing, noting that corruption both sustains dictatorships and helps them conduct foreign policy. Corruption also erodes democratic structures from within and creates patronage-based systems in which autocrats pay their cronies to retain power. Chairman Cardin thanked Representatives Malinowski and Salazar for their work on the counter-kleptocracy caucus and highlighted several of the counter-kleptocracy bills currently in the House and the Senate. Helsinki Commission Co-Chairman Rep. Steve Cohen (TN-09) stressed the importance of going after the enablers of corruption, not just the kleptocrats, saying, “They work with these folks to poison the system, so they are in essence agents of corruption.” He added that the United States needs to clean up its act at home and reinforce its defenses against the national security threat of corruption. Helsinki Commission Ranking Member Sen. Roger Wicker (MS) called corruption a “pernicious foreign policy tool” that undermines and co-opts democratic systems, and highlighted the corruption and abuse of INTERPOL, which he described as being hijacked by mafia states and weaponized to pursue political opponents. China and Russia are the most prolific abusers of the system, he said, pointing towards the TRAP Act as a legislative tool to counter such behavior. Sen. Wicker, who co-leads the Global Magnitsky Reauthorization Act alongside Chairman Cardin, stressed the bipartisan nature of this issue. Helsinki Commission Ranking Member Rep. Joe Wilson (SC-02) echoed Sen. Wicker’s statement, adding, “It is not an exaggeration to say that corruption is the new communism.” Rep. Wilson mentioned the six Helsinki Commission counter-kleptocracy bills in the House National Defense Authorization Act (NDAA), underlining the bipartisan nature of the fight against corruption. “To protect American families we must fight corruption,” he said. During the first panel, Rep. Malinowski described fighting corruption as the key to winning the contest between democracy and dictatorship. Corruption is not only a way for autocrats to stay in power, he argued; it also is their greatest weakness. “When we catch them stealing from their people and putting their money in our banks, that is what embarrasses them,” he said. Referencing the six counter-kleptocracy bills currently pending in Congress, Rep. Malinowski suggested the United States. has potent tools to go after corruption. Rep. Salazar testified that corruption is a threat to freedom and human rights. Using Venezuela, Cuba and Nicaragua as examples, Salazar explained how corrupt leaders use stolen funds to finance campaigns that portray them as the saviors of the countries that they actually loot. Salazar pointed towards her work as founding member of the bipartisan Caucus against Foreign Corruption and Kleptocracy (CAFCAK), as well as the importance of the Combating Global Corruption Act, introduced by Chairman Cardin in the Senate, and the bipartisan ENABLERS Act Leonid Volkov began his testimony by describing a natural pathway from corruption to authoritarianism, born out of the necessity to hide crimes by silencing the press and co-opting the courts. He outlined how the Navalny anti-corruption initiative, through hundreds of investigations, found billions of dollars stolen from Russian taxpayers. What stood out, he said, was how successful kleptocrats need to operate in two countries: their home country, where the absence of rule of law allows them to steal, and another country, where the rule of law ensure the safety of their money. Therefore, corruption is a global phenomenon, which also necessitates fighting corruption on both fronts. Volkov endorsed the series of Helsinki Commission anti-kleptocracy bills and asked to “fight this fight together.” Scott Greytak described corruption as the lifeblood of autocrats abroad and pointed toward the Pandora Papers, which revealed that the United States is a leading secrecy jurisdiction for stashing offshore funds. He emphasized the importance of Congress ensuring that the six counter-corruption bills in the House National Defense Authorization Act (NDAA) make it into the final NDAA. Doing so would enhance the U.S. ability to deny kleptocrats access to the financial system and increase transparency. The National Defense Authorization Act (NDAA) is legislation that Congress passes each year to make changes to the policies and organization of United States defense agencies and provide guidance on how military funding can be spent. Greytak also mentioned the Corporate Transparency Act and expressed hope that Congress would ensure that the new Treasury FinCEN rules are in keeping with the spirit of the law. He added that passing the Foreign Extortion Prevention Act (FEPA), which would criminalize foreign officials requesting bribes from American companies, is an important step many of our allies already have taken. Lastly, Greytak emphasized the need to target enablers of kleptocracy in the U.S. via the ENABLERS act, to prevent crimes such as the theft of over $4 billion from the public investment fund of Malaysia, aided and abetted by U.S. law firms. Elaine Dezenski’s testimony focused on China and corruption through the Belt and Road Initiative (BRI). She described the BRI as a geopolitical enterprise through which China seeks to redefine its engagement with more than 140 countries. Because the BRI is designed to undercut normal development, it gets rid of safeguards such as anti-corruption, environmental, and labor standards as well as open and transparent bidding, according to Dezenski. By doing so, it creates long-term dependencies fueled by corruption and debt traps. More than 40 countries are now indebted to China equal to or greater than 10 percent of their GDP, Dezenski said. A slim window exists during which the U.S. can offer clean alternatives to the BRI, alongside increased efforts to educate citizens and support civil society to counter this threat. One key step, said Dezenski, is pivoting critical supply chains out of China and towards allied countries. Another step is taking care not to give domestic infrastructure contracts to foreign kleptocrats’ companies. Finally, countering disinformation and misinformation campaigns is of the essence. Responding to a series of questions from Co-Chairman Cohen, Volkov explained that his organization had to move outside of Russia due to being designated an extremist organization but nonetheless is working to produce content highlighting Russian corruption. On the topic of censorship by Apple and Google during the Duma elections in 2021, Volkov stated that the threat by the Russian regime to imprison employees of U.S. companies should they not go through with the censorship is serious and should not be dismissed. Asked by Rep. Wilson what he saw as Russia’s future in five to 10 years, Volkov explained that Putin is unpopular among Russia’s youth and that many people want change. Putin’s strength lies in his TV propaganda machine, which is less effective at reaching younger, more internet-savvy people, he said. Volkov explained that under Putin, Russia has more political prisoners than the Soviet Union ever had after Stalin and expressed hope that this would lead to cracks in the system and, finally, regime change. On the question of how present-day corruption differs from that of 30 years ago, Scott Greytak explained that corruption is more sophisticated than ever, aided by complex financial vehicles created by Western enablers which make it easier to move money. Responding to a question from Helsinki Commission Member Rep. Ruben Gallego (AZ-07), Greytak explained that although Russian and Chinese corruption are similar, Russia perfected state-run corruption, while China adopted corruption to grow its geo-political influence. Dezenski answered a question on China’s long-term view by explaining that the United States needs to be more strategic about the short-term implications of individual actions and ensure long-term commitment to democratic norms. Because China takes a longer view than the United States, they have outmaneuvered us, Dezenski said. Asked if any projects concerned her most, she answered any projects related to digital infrastructure, due to the risk of authoritarian regimes monitoring and managing communications lines. In addition, Dezenski mentioned projects that would give Beijing military influence, such as strategic ports in the Indian Ocean or the South China Sea. Chairman Cardin thanked the witnesses for their expert testimonies and said he looked forward to consulting with them on several of the points brought up. To end the hearing, the chairman pointed out South Korea as an example of a country that turned around its corruption problem, stating, “We can make change and plant the seeds to enhance the welfare of all the people.” Related Information Witness Biographies Bipartisan Counter-Kleptocracy Legislative Initiatives Counter-Kleptocracy Measures Included in the House Defense Bill
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press release
Threat of Foreign Corruption to Be Explored at Helsinki Commission Hearing
Friday, November 12, 2021WASHINGTON—The Commission on Security and Cooperation in Europe, also known as the Helsinki Commission, today announced the following hearing: CONFRONTING KREMLIN & COMMUNIST CORRUPTION Thursday, November 18, 2021 10:30 a.m. Dirksen Senate Office Building Room G-50 Watch live: www.youtube.com/HelsinkiCommission The Kremlin and the Chinese Communist Party, as well as other U.S. adversaries, practice kleptocracy, an authoritarian governance model in which political leaders routinely engage in illicit self-enrichment, maintain power through corrupt patronage networks, exploit democracies to conceal and protect stolen assets, and use strategic corruption as a tool of foreign policy. Kleptocracy now poses the most serious challenge to democratic governance worldwide. President Biden has declared countering corruption a core national security interest and Congress has responded with a series of legislative proposals to fight kleptocracy both at home and abroad. This hearing will bring together experts on kleptocracy to examine how the United States can confront foreign corruption. In particular, witnesses will discuss the ways that the United States can fortify its system against the taint of corruption and hold kleptocrats to account. The following witnesses are scheduled to testify: Representative Tom Malinowski (NJ-07), Member of Congress, Co-Chair of the Congressional Caucus against Foreign Corruption and Kleptocracy Representative María Elvira Salazar (FL-27), Member of Congress, Member of the Congressional Caucus against Foreign Corruption and Kleptocracy Leonid Volkov, Chief of Staff to Alexei Navalny Elaine Dezenski, Senior Advisor, Center on Economic and Financial Power, Foundation for Defense of Democracies Scott Greytak, Advocacy Director, Transparency International U.S. Office
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article
HELSINKI COMMISSIONERS JOIN OSCE PA MEETING ON AFGHANISTAN, DEBATE POLICY RESPONSES
Tuesday, November 09, 2021On November 4, 2021, more than 40 members of the OSCE Parliamentary Assembly (PA) met remotely to discuss the current security challenges posed by developments in Afghanistan and the future of OSCE engagement with Afghanistan under the Taliban’s rule. Since 2003, Afghanistan has been an OSCE Partner for Cooperation and shares a border with several OSCE countries. The debate, which was attended by seven members of the Helsinki Commission, took place as part of the OSCE PA’s annual Autumn Meeting. Each year, the Autumn Meeting focuses on debating one or more currently relevant issues confronting the OSCE region. This year’s Autumn Meeting was originally planned to be in Dublin, Ireland, but a resurging COVID-19 pandemic forced the OSCE PA to rely on emergency procedures that allow for statutory meetings to be conducted remotely. OSCE PA Leaders Outline Challenges Posed by Afghanistan OSCE PA President Margaret Cederfelt opened the debate with an overview of the challenges presented by the Taliban’s takeover of Afghanistan. While three OSCE countries—Uzbekistan, Turkmenistan, and Tajikistan—share a border with Afghanistan, developments there also have serious implications for the rest of the OSCE participating States. The worsening humanitarian crisis, the Taliban’s historical connections to terrorism, the negative economic fallout, the potential impact on neighboring countries, and deteriorating human rights, particularly for women and girls, were all of concern. “Those who will suffer most from this is, of course, the ordinary people,” President Cederfelt emphasized, while highlighting the impending economic turmoil Afghanistan faces. “It is essential that human security is protected by safeguarding the fundamental rights of all Afghans.” President Cederfelt also underscored the need for international cooperation while addressing this situation, given its global security implications. The three leaders of the PA General Committees highlighted aspects of the crisis related to their specific mandates. Helsinki Commissioner Rep. Richard Hudson, who chairs the General Committee on Political Affairs and Security, noted, “Perhaps most alarming is the return of an international terrorist threat from Afghanistan. He also highlighted the production and trade of narcotics and illegal drugs backed by the Taliban as a serious challenge with global implications, thanks to major trafficking routes. “The security situation in Afghanistan is intrinsically linked with that of the OSCE region as a whole—but it will first and most immediately affect Afghanistan’s neighbors in Central Asia,” he said. “We must all be especially concerned about threats to the three OSCE participating States that have borders with Afghanistan: Tajikistan, Turkmenistan and Uzbekistan. This is perhaps the area in which our organization can have the greatest and most immediate impact." The other two general committee chairs shared their concerns as well. Pere Joan Pons of Spain, who chairs the General Committee on Economia Affairs, Science, Technology, and Environment, highlighted Afghanistan’s current economic and environmental challenges, especially given the country’s vulnerability in the face of climate change. Sereine Mauborgne of France, who chairs the General Committee on Democracy, Human Rights, and Humanitarian Questions, discussed the serious human rights violations faced by women, girls, and other vulnerable populations. In addition, many Afghans face urgent or extreme food and security issues; the Taliban lacks the capability to provide either for the Afghan people. Director of the OSCE Conflict Prevention Center Tuula Yrjölä discussed Afghanistan’s relationship to the OSCE as a Partner for Cooperation and the potential role of the OSCE role in addressing the situation. She concluded that Afghanistan’s partnership status in the OSCE was based on shared values; its future may be in question under a Taliban government. Helsinki Commissioners Participate in the General Debate Following the introductory remarks, six members of the Helsinki Commission—including all four senior commission leaders—took the floor to voice their concerns and engage with other parliamentarians. Helsinki Commission Chairman Sen. Ben Cardin, who also serves as the Head of the U.S. Delegation and the OSCE PA Special Representative on Anti-Semitism, Racism, and Intolerance, expressed disappointment at how quickly the democratic government and institutions in Afghanistan deteriorated, despite years of investment and support. “One of the prime reasons was corruption,” explained Chairman Cardin. The rights of women and girls and ensuring humanitarian assistance reaches populations in need were two areas that he insisted be of focus as international efforts move forward. Media freedom was of particular concern for Helsinki Commission Co-Chairman Rep. Steve Cohen. “Lower-level Taliban forces threaten and harass journalists,” he stated. “RFE/RL has reported that over the past weeks, its remaining journalists have been questioned by armed Taliban and door-to-door searched have been conducted looking for journalists affiliated with the United States.” Media freedom is among the fundamental freedoms the OSCE seeks to protect, and Co-Chairman Cohen insisted the Taliban must be held responsible for violating these rights. Helsinki Commission Ranking Member Sen. Roger Wicker, who also serves as an OSCE PA Vice President, shared legislation he is sponsoring in Congress that seeks to strengthen the American response to Afghanistan and reiterated the dangers that religious and ethnic minorities in Afghanistan currently face. Ranking Member Rep. Joe Wilson highlighted the dangers of terrorism and the oppressive rule of the Taliban. “It cannot be business as usual with the Taliban,” he stated. “Together, we must use our leverage to prevent Afghanistan from again becoming a terrorist haven devoid of human rights.” Chairman Cardin, Sen. Wicker, and Rep. Wilson all expressed concern over Afghanistan’s status as an OSCE Partner for Cooperation. “Before we recognize any representative of Afghanistan in our assembly, we should make sure that they will adhere to the principles of the Helsinki Final Act,” Chairman Cardin stated. Rep. Wilson argued that Afghanistan’s partner status should be reconsidered, and Sen. Wicker also emphasized the importance of the values shared by OSCE participating States and Partners for Cooperation. “I would hope that it is our position going forward that the Taliban-led government in Afghanistan not be recognized as an OSCE Partner for Cooperation,” Sen. Wicker said. Helsinki Commissioner Rep. Gwen Moore focused on the dangers for women and girls and the human rights violations they face. Despite advances made in women’s rights in Afghanistan during the past two decades, the return of Taliban rule has brought a resurgence of violence and restrictions, endangering the lives of women throughout the country. Many have fled Afghanistan, fearing for their safety, while others have remained to fight for their country. While Rep. Moore strongly advocated for supporting resettlement efforts, she also emphasized that resettlement was a last resort. “We must continue to press for the protection of these women in their own country,” she said. Ms. Moore also proposed that the OSCE PA create and maintain a project to monitor and support Afghanistan’s female parliamentarians. Helsinki Commissioner Rep. Ruben Gallego stressed the importance of aiding Afghans still in Afghanistan. “We must find ways to support Afghans in-country who are bravely calling for progress, and we must stand up for the human rights of those who suffer at the hands of the Taliban,” he said. Rep. Gallego further argued that the international community must do more than simply aid in the evacuation of those fleeing the Taliban’s rule. “We must also ensure that those who have been evacuated have long-term support in the resettlement process. The United States must do its part in accepting the bulk of Afghan refugees, and I have personally pushed in Congress to provide Afghans with the long-term resources they need to settle into a new life,” he stated, and asked all the participating parliamentarians to urge their countries to do the same. OSCE Efforts Moving Forward Throughout the debate, which highlighted various vulnerable populations and severe security threats that must be addressed in the future, one recurring theme was the need for international cooperation. While President Cederfelt began the meeting by observing that it will be impossible to know the future, Rep. Gallego expressed one certainty. “The end of America’s military commitment in Afghanistan does not mean we will turn a blind eye to Afghanistan’s people or the security of the region,” he said.
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press release
Helsinki Commission Welcomes Confirmation of Michael Carpenter as U.S. Ambassador to the OSCE
Friday, November 05, 2021WASHINGTON—Following the November 3 confirmation of Michael Carpenter as Permanent Representative of the U.S. Mission to the Organization for Security and Co-operation in Europe (OSCE), Helsinki Commission Chairman Sen. Ben Cardin (MD), Co-Chairman Rep. Steve Cohen (TN-09), Ranking Member Sen. Roger Wicker (MS), and Ranking Member Rep. Joe Wilson (SC-02) issued the following joint statement: “We are delighted that the Senate has confirmed Michael Carpenter as our next ambassador to the OSCE. He is an expert on European security, has the ear of the president, and his confirmation clearly demonstrates the strong commitment of both Congress and the administration to upholding Helsinki commitments and the OSCE’s concept of comprehensive security. “We look forward to working closely with Ambassador Carpenter to confront the threats to U.S. interests across the region and to realize the potential of our investment in a Europe whole, free, and at peace. Countering Vladimir Putin’s dangerous behavior on the ground and within the OSCE itself is paramount. Russia’s war against Ukraine, its illegal troop presence in neighboring countries, and its efforts to undermine the OSCE’s human dimension require a robust response from the United States and our allies. “We further pledge our support to Ambassador Carpenter as he works to enhance the capacity of the OSCE to counter corruption, mediate conflicts, promote tolerance and non-discrimination, and address the alarming increase in political prisoners across the region.” Ambassador Carpenter will lead the U.S. Mission to the OSCE, comprising a multi-agency team of more than 30 staff members, including a representative from the U.S. Helsinki Commission.
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hearing
Upholding OSCE Commitments in Hungary and Poland
Wednesday, November 03, 2021Political leaders in Hungary and Poland—U.S. allies and members of the European Union—have for the past decade pursued policies that undermine democracy and the rule of law. In Hungary, the Fidesz government has weakened the country’s democratic institutions, especially the free media and independent judiciary. Instead of strengthening the transatlantic bond, Viktor Orbán has sought closer ties with Russia and China. In Poland, the ruling coalition has taken steps to compromise judicial independence and limit free expression. In this hearing, witnesses examined the erosion of democratic norms in Hungary and Poland and discussed the implications for U.S. foreign policy. Helsinki Commission Chairman Sen. Ben Cardin (MD) began the hearing by addressing the need to help safeguard the freedoms that both Poland and Hungary have fought so hard for, and that form the basis of the OSCE. He then addressed the downward trajectory of democracies in both countries, emphasizing Hungary as a particular concern. In his opening remarks, Helsinki Commission Co-Chairman Rep. Steve Cohen (TN-09) emphasized the importance of democracy to all freedom loving people, and that while both Poland and Hungary are critical allies to the United States, the erosion of democratic norms in both countries is of serious concern. Co-Chairman Cohen highlighted the use of xenophobic, antisemitic and Islamophobic rhetoric as a mechanism to maintain political power in Hungary, and the collapse of the judicial system in Poland as examples of de-democratization in both countries. He concluded by stating that the United States should expect better of their allies and of members of the European Union. Zselyke Csaky, Research Director, Europe & Eurasia at Freedom House, testified about the key differences between Poland and Hungary and their decline as democracies. She first noted that while Poland remains a democracy and Hungary is now reclassified as a hybrid regime, the democratic decline of Poland is occurring at a faster rate than that of Hungary. She suggested that state capture of the media, judiciary, civic sector, and elections play a key role in the democratic backsliding of both countries. Ms. Csaky then concluded that while any decisions on the governments of Hungary and Poland will be determined by their respective electorates, the United States should uphold strategic, long term commitments supporting the EU, and help to strengthen the civic and media sectors. In his testimony, Dalibor Rohac, Senior Fellow at the American Enterprise Institute, expressed his concern over the authoritarian nature of the Hungarian and Polish governments. In particular, he called attention to the de-facto end of constitutional review, limited access to diverse media, and extraordinary rise in corruption in Hungary. Mr. Rohac closed by stressing the need for support from the United States to be bipartisan and narrow in focus. Heather Conley, Senior Vice President for Europe, Eurasia, and the Arctic at CSIS and incoming President at the German Marshall Fund, began her testimony by maintaining that while democracy in Poland and Hungary are examples of foreign policy accomplishments, both Poland and Hungary should be held accountable for their governments’ behavior in undermining democracy at home and abroad. Ms. Conley emphasized Hungary’s growing relationship with China, and the need to determine if Hungary is at the level of commitment too maintain the secrecy of a NATO member. She recommended that the United States remain engaged in its investment in both countries but do so through bipartisan and firm policy. Following the conclusion of the witness statements, Chairman Cardin acknowledged that Poland and Hungary are two separate countries with different priorities but addressed what the two have in common. While Poland and Hungary are different cases, he noted, there is a need to address disturbing trends in countries with which the United States has deep ties. “We have to look for way to strengthen the values that make our relationship so important,” he said. “I think America can play an important role here, and that Congress can play an important role.” Related Information Witness Biographies
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press release
Helsinki Commission to Hold Hearing on Upholding OSCE Commitments in Hungary and Poland
Wednesday, October 27, 2021WASHINGTON—The Commission on Security and Cooperation in Europe, also known as the Helsinki Commission, today announced the following hearing: UPHOLDING OSCE COMMITMENTS IN HUNGARY AND POLAND Wednesday, November 3, 2021 2:30 p.m. Dirksen Senate Office Building Room 419 Watch live: www.youtube.com/HelsinkiCommission Political leaders in Hungary and Poland—U.S. allies and members of the European Union—have for the past decade pursued policies that undermine democracy and the rule of law. In Hungary, the Fidesz government has weakened the country’s democratic institutions, especially the free media and independent judiciary. Instead of strengthening the transatlantic bond, Viktor Orbán has sought closer ties with Russia and China. In Poland, the ruling coalition has taken steps to compromise judicial independence and limit free expression. Witnesses will examine the erosion of democratic norms in Hungary and Poland and discuss the implications for U.S. foreign policy. The following witnesses are scheduled to testify: Heather A. Conley, Senior Vice President for Europe, Eurasia, and the Arctic, Center for Strategic and International Studies Zselyke Csaky, Research Director, Europe & Eurasia, Freedom House Dalibor Rohac, Senior Fellow, American Enterprise Institute
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in the news
Experts raise alarm bells in Congress over ‘Europe’s most contested domain’
Wednesday, October 27, 2021With a handful of frozen conflicts, hybrid warfare, rising autocracy, and political instability, the Black Sea region may be Europe’s most volatile and most overlooked. This week, policy experts are testifying in Congress and calling for the United States to step up its involvement in the Black Sea region, a critical geopolitical crossroads where U.S. allies and adversaries coexist. “The region is Europe’s most contested domain,” said Ian Brzezinski, a former deputy assistant Defense secretary for Europe and NATO who testified to Congress on Wednesday. “It’s where you have the most intense confrontation and the most violent conflict in Europe in the last decade and a half. It’s high time we start addressing what needs to be done to bring greater peace and stability to that region,” Brzezinski told National Journal. Last week, Russian fighter jets intercepted two U.S. bombers over the Black Sea while Defense Secretary Lloyd Austin was visiting Romania, a member of the European Union and a NATO ally that hosts nearly 1,000 U.S. servicemembers. During his trip, Austin also visited two other Black Sea countries, Georgia and Ukraine, a move many saw as a sign that the U.S. was beginning to focus on the region ahead of a key NATO ministerial meeting. High on the agenda during Wednesday’s congressional hearing, however, was the U.S. relationship with Turkey, a NATO ally that under President Recep Tayyip Erdoğan has had an increasingly fraught relationship with the West. Despite being part of the Western military alliance, Turkey has consistently opposed strengthening NATO’s presence in the Black Sea and courted Russia, opting to purchase a Russian missile-defense system that military experts say poses a risk to NATO equipment. “We have got to repair our relationship with Turkey. It’s not impossible. Erdoğan is a deal-maker,” said Jim Townsend, a senior fellow at the Center for a New American Security and former deputy assistant Defense secretary European and NATO policy, who also testified Wednesday. Over the weekend, Erdoğan ordered the country’s Foreign Ministry to declare 10 ambassadors, including the U.S. ambassador to Turkey, persona non grata after they called for the release of an imprisoned civil-society leader named Osman Kavala. Erdoğan later walked back the statement, but the incident highlighted the volatility of Turkey’s relationship with the West. “Because Turkey is pursuing its own Russia-friendly policy and is often antagonistic towards the U.S., that makes our Black Sea policy so much more difficult,” said Ariel Cohen, a senior fellow at the Atlantic Council’s Eurasia Center, who argues that NATO allies should be more active in the region. Sen. Ben Cardin, the chair of the Helsinki Commission, said the U.S. and Turkey share many interests in the Black Sea region but that shouldn’t stop Washington from speaking out on human rights. “Mr. Kavala, a Turkish philanthropist, has been in detention for four years despite being acquitted by a Turkish court," Cardin said in an email. "In their joint statement, the ambassadors simply asked that Turkey adhere to its international obligations and domestic law. “This kind of straight talk is important among NATO allies and did not warrant such a disproportionate response.” Despite the tensions with Turkey, Russia is the primary adversary in the region. Many lawmakers note that Moscow has trampled the rules-based international order by invading its neighbors and propping up separatists to prevent countries along the Black Sea from forming closer ties with the West. Russian forces currently occupy around 20 percent of Georgian territory and support separatists in the breakaway regions of Abkhazia and South Ossetia. They also annexed Ukraine’s Crimean Peninsula in 2014—in large part to maintain access to the Black Sea—and support pro-Russian separatists in Eastern Ukraine. Sen. Jeanne Shaheen, chair of the Senate Foreign Relations subcommittee on Europe, said she convened Wednesday’s hearing to learn how lawmakers can holistically approach the region to address patterns of Russian encroachment. “Over the last two decades, the Black Sea has become an increasingly important region for Russia, which has repeatedly disregarded international norms to expand control of the region, waging war and deploying illegal and belligerent tactics to secure these goals,” Shaheen told National Journal. “Russia has made it clear that it is willing to exert economic, military, and political power to thwart NATO expansion and expand its control in the Black Sea.” Experts are arriving in Congress with a laundry list of recommendations, including building up Bulgaria's and Romania’s navies, sending brigade combat teams to both countries, investing in initiatives to counter Russian disinformation, and providing Ukraine with more lethal weaponry. Some are advocating for the creation of a NATO readiness action plan for the Black Sea, and for moving forward with NATO membership for Ukraine and Georgia. Both countries are angling to join the Western military alliance. Still, the alliance’s commitment to collective defense prevents countries already in a state of conflict from entering, a fact that Russia exploits. Because Georgia is not yet a NATO member, the U.S. recently renewed a six-year security pact with Tbilisi designed to bolster the defense capabilities of the country’s military. The U.S. is moving away from training battalions in Georgia and will focus instead on building sustainable institutional capabilities at the executive levels of the military. Still, experts warn that nearly all the countries in the region are dealing with political instability, Russian interference, or both. Georgia, heading for a second round of local elections on Saturday, has been accused of Democratic backsliding. Romania and Bulgaria, both EU members, are also in contentious election cycles and debates over government formation that will determine their future political trajectories. Ruslan Trad, an author researching Russian influence in Bulgaria, told National Journal there are several popular pro-Russian political movements in Bulgaria. Russian spies are active in the country and allegedly monitored European Union leaders during their visits. There’s also an urgent need to counter Russian disinformation and anti-NATO propaganda in the country, Trad said. What’s most important, said Ben Hodges, a retired lieutenant general now at the Center for European Policy Analysis, is to have a robust strategy for the entire region. “Having a strategy for the region has to be the first priority because then you can develop the right policies for each of the countries in the region,” Hodges said. The Biden administration is now working on a global-force-posture review, which should shed light on U.S. policy towards the region, and the State Department is also developing a Black Sea strategy. Alina Polyakova, the president of CEPA and another witness in Wednesday’s hearing, said it would be important to pinpoint the specific areas in which each partner country in the region can contribute to broader security. “The Black Sea region is critical to broader transatlantic stability,” Polyakova told senators. “It is where Russia, Europe, the Middle East, the Balkans, and the Caucasus come together, and it’s also the locus of the Kremlin’s test of the alliance’s credibility and resolve.”
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press release
Helsinki Commission Mourns Death of Colin Powell
Tuesday, October 19, 2021WASHINGTON—Following the death of former U.S. Secretary of State Colin Powell, Helsinki Commission Chairman Sen. Ben Cardin (MD), Co-Chairman Rep. Steve Cohen (TN-09), Ranking Member Sen. Roger Wicker (MS), and Ranking Member Rep. Joe Wilson (SC-02) issued the following joint statement: “We mourn the loss of a thoughtful leader, respected diplomat, and dedicated public servant. Former Secretary of State Colin Powell actively supported the work of the Organization for Security and Cooperation in Europe (OSCE) and its comprehensive definition of security, which includes respect for human rights. In 1990, as Chairman of the Joint Chiefs of Staff, his leadership of the U.S. delegation to a seminar in Vienna on military doctrine demonstrated that when Moscow was serious about overcoming differences through the Helsinki Process, the United States was ready to collaborate, as is true today. “Secretary Powell’s subsequent work in the OSCE on fighting anti-Semitism and championing election observation proved that he was not only a warrior and a diplomat, but also a steadfast advocate for human rights and a defender of the most vulnerable.” Secretary Powell was one of the most active U.S. Secretaries of State in OSCE history, personally attending Ministerial Council meetings in 2001, 2003, and 2004. In 2001, he said: “We see our membership in the OSCE as complementing and reinforcing our strong bilateral ties with European and Eurasian countries, our membership in NATO, and our relationship with the European Union. This organization embraces a wide-range of ethnicities, traditions and histories. More importantly, it reflects our common embrace of democratic and market principals and our common commitment to peace and stability. In short, the OSCE encompasses the hopes that all of us share for a Europe that is fully whole and free.”
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in the news
A Ukrainian Oligarch Bought a Midwestern Factory and Let it Rot. What Was Really Going On?
Sunday, October 17, 2021In recent weeks, the world has learned incredible new details about corruption, illicit financing and money laundering by the super-rich, thanks to the Pandora Papers. The papers are a tranche of nearly 12 million documents, revealed by an international group of journalists, that describe how global elites — from the king of Jordan to Pakistani Prime Minister Imran Khan’s inner circle to an alleged mistress of Vladimir Putin — use shell companies, trusts, real estate, artwork and other financial secrecy tools to squirrel away enormous amounts of money. And much of it is perfectly legal. Many of the stories in the Pandora Papers follow a playbook that is depressingly familiar at this point: Global heads of state and business elites hide their wealth in pursuits that are emblematic of the super-rich: coveted beachside properties in Malibu, as in the case of the Jordanian monarch, or the Czech prime minister’s $22 million chateau in the south of France, or dozens of pieces of high-value artwork, moved secretly through shell companies by one of Sri Lanka’s most powerful families. But this kind of transnational money laundering, which we’ve come to expect, is only part of the picture. Recently, wealthy elites have begun looking for other places to park their funds, places they think authorities won’t look. Places that offer all the financial secrecy these elites need, but that few would associate with lives of luxury. As a result, shadowy and sometimes ill-gotten wealth has started pouring not just into yachts and vacation homes, but also into blue-collar towns in the U.S. whose economic struggles make them eager to accept the cash. One of these small towns appears to have been Harvard, Ill., a depressed factory community that allegedly became part of a sprawling network used by Ukrainian banking tycoon Ihor Kolomoisky to launder hundreds of millions of dollars earned from a Ponzi scheme. Kolomoisky, who was recently hit with U.S. sanctions for “significant corruption” in Ukraine, is separately accused by the Justice Department and Ukrainian investigators of using a constellation of shell companies and offshore bank accounts to move millions in misappropriated funds out of Ukraine and into a series of real-estate investments in the American Midwest. (Kolomoisky denies wrongdoing, claiming he made the investments with his own money.) The story of Harvard suggests that lax U.S. laws around shell companies and real-estate purchases, in addition to a broader lack of regulatory oversight, may be putting America’s heartland in the crosshairs of elites like Kolomoisky. It’s a reality of global corruption that U.S. lawmakers are only just starting to grapple with: As money-launderers and illicit financiers hide their money in the American Midwest, they’ve become part of the story of the decline of small-town, blue-collar America. With a population of just under 10,000, Harvard, Ill., is a speck of a town equidistant between Chicago and Milwaukee. Like the other towns in the region, you’ve likely never heard of it — and like other towns in the region, Harvard’s best days are decades behind it. But in the late 1990s, the massive telecom company Motorola announced it would be putting a new manufacturing plant in Harvard. Construction began on what would become the largest building not just in Harvard but the entire region: a 1.5-million-square-foot facility, sprawling over 320 acres, part office and part plant, shaped like a giant wishbone. “It’s a huge, huge building,” one local, Ed Soliz, said at the time. “It looks like a small university.” With a $100 million price tag, Motorola said it would require a staggering five thousand employees to operate the facility — to help craft the next generation of Motorola phones and lead the global telecom market into the 21st century. But within a few years of finishing construction, the bottom had fallen out of Motorola’s business model. Suddenly, the building in Harvard had no purpose. Rather than a testament to Harvard’s future, it was a testament to corporate blinders. And for years it sat there, like a beached whale, waiting. Then, in 2008 — as the country began tipping fully into the Great Recession — an investor in his early 20s from Miami named Chaim Schochet showed up. Working on behalf of a firm called Optima International, Schochet offered $16.75 million for the empty building. A far cry from the Motorola investment, but more than locals could have hoped for. They happily accepted. Glimmers of potential sprang once more. “Hope burns eternal,” Roger Lehmann, a member of the Harvard Economic Development Corporation, said after the purchase. At the time, there was no reason to think Schochet and his colleagues were anything but savvy businesspeople, snapping up properties across the Midwest. Optima International was a parent company to a constellation of related firms (including one called “Optima Harvard Facility LLC”). Prosecutors would later dub this the “Optima Family,” with its American operations overseen by two Americans named Mordechai Korf (Schochet’s brother-in-law) and Uri Laber. As the Justice Department alleged in a series of civil forfeiture cases, this “Optima Family” plowed hundreds of millions of dollars into investments in state after state: commercial real estate in Cleveland and Dallas and Louisville, steel factories in West Virginia and Kentucky and Ohio, production plants in Michigan and New York and Indiana. Time and again, these investors swooped in, pledging jobs, revitalization and a lifeline for towns watching their economic lifebloods dry up. In just a few years, the “Optima Family” collected over a dozen mills, plants and other facilities across the American heartland. All of them had fallen victim to America’s yearslong manufacturing slump, part of the broader deindustrialization that began in the 1970s. All of them were eager for any injection of financing they could get, and for any promise of a brighter future. And, according to prosecutors, these purchases were all directly connected to a powerful steel and banking tycoon in Ukraine who was buying American properties to hide stolen money. Shortly after Ukraine’s 2014 revolution, investigators in the country alleged that Ihor Kolomoisky was secretly overseeing one of the greatest Ponzi schemes the world had ever seen, totaling at least $5.5 billion. Legal filings from American prosecutors last year detailed how Kolomoisky allegedly used his control of Ukraine’s largest retail bank, PrivatBank, to loot staggering sums from Ukrainian depositors, and then used a series of shell companies and offshore accounts to whisk the money out of the country and into the U.S. The idea seems to have been to purchase troubled assets that American sellers were eager to offload. Even if the buyers ultimately took a loss, the assets were still outside the grasp of Ukrainian investigators and could still act as vehicles through which to funnel money. Perhaps most importantly, the properties could be bought without much inquiry into the source of the monies: For two decades, American real-estate professionals have benefited from a “temporary” exemption to anti-money laundering laws, allowing them to avoid performing due diligence on the customer making the purchase. In subsequent efforts to seize the operation’s assets, American prosecutors laid out a theory that much of Kolomoisky’s operation was overseen by Laber and Korf, who “created a web of entities, usually under some variation of the name ‘Optima,’ to further launder the misappropriated funds and invest them” across multiple states. According to the DOJ, the funds lifted from PrivatBank bounced through a number of shell companies and offshore accounts, before being injected into the Optima network, and from there into assets around the American Midwest. And all of this took place while Kolomoisky — now sanctioned by the U.S. for what the State Department calls “significant corruption” and “ongoing efforts to undermine Ukraine’s democratic processes” — grew his power and wealth within Ukraine itself, creating a gargantuan private militia and reportedly manipulating elected officials along the way. The details gathered by U.S. and Ukrainian investigators and laid out in DOJ filings and court cases around the world, from Delaware to the UK to Israel, comprise what one analyst said might be “the biggest case of money laundering in history.” Kolomoisky says he bought the American properties with his own money, denying the Justice Department’s allegations about laundering ill-gotten funds. Neither he nor his American associates (who also deny wrongdoing) have been named in any criminal complaints. Reached for comment prior to publication of this article, an attorney for Korf and Laber responded, “Mr. Korf and Mr. Laber have never engaged in money laundering of any kind, and they have no knowledge of anyone else doing so. Any allegations against Mr. Korf and Mr. Laber arise from Ukrainian political disputes they have nothing to do with.” Kolomoisky and Schochet, the Miami investor, did not respond to a request for comment. Schochet has not been targeted by name in the government filings, and the government has not suggested he is personally a target of their investigations. But the DOJ complaint notes that the Harvard plant purchase was part of the sprawling Optima laundering scheme (including fraudulent loans used to purchase the plant in the first place). The investigators describe how, using investments in steel mills, skyscrapers and industrial plants across the Midwest and Rust Belt, Kolomoisky could take full advantage of America’s permissive climate for money laundering — all, apparently, to help clean the proceeds of his massive Ukrainian Ponzi scheme. After Schochet finalized the purchase in Harvard, locals say they saw little of him. “Chaim wasn’t around much,” Charlie Eldredge, head of the Harvard Economic Development corporation, told me. “I would see him once a year, once every other year…. Clearly it wasn’t the focus of their interest.” He added that it quickly became clear the Optima network “didn’t really have any real plans [about] what to do with the facility.” More than five years after the purchase, no jobs had returned and no further investments emerged. Unpaid property taxes kept accumulating, starving the strapped local government of hundreds of thousands of dollars. In 2016, Optima sold the building at a $7 million loss to a Chinese Canadian businessperson. Years of neglect by various owners began to take a toll: Soon, the factory went dark entirely. With a half-million-dollar tab in unpaid electricity bills, the juice was cut off, forcing local officials to visit with flashlights. “It’s just heartbreaking to see that beautiful place sitting vacant,” the McHenry County treasurer said in 2018. Along the way, the massive building itself — its factory and fitness center, its child care rooms and 500-seat auditorium, even its pair of heliports — continued a slow march toward implosion. Mold began creeping along the walls and roof, into the pipes, into the recesses of the building. The factory’s entire fire suppressant system, including over 20,000 sprinkler heads, began falling apart. “The mechanical [equipment] all needs to be replaced,” Mayor Michael Kelly said. “The roof leaks. No one’s really taking care of it.” “The building won’t just be valueless — it will be a catastrophe for the town, because it will have to be demolished,” Eldredge told me in 2020. “And the net cost for that, after salvage, is probably three to five times the city’s annual budget. It will be a financial catastrophe.” He paused, pondering the implication: This hundred-million-dollar promise to a small outpost in northern Illinois ended up with a foreign oligarch apparently using it to hide his money from investigators. (The building was sold just last month to a group of developers from Las Vegas for an undisclosed amount.) Harvard is hardly the only American town that saw Optima swoop in, making big promises that ended in disappointment. In Warren, Ohio, a steel plant purchased by Kolomoisky’s network had so many safety issues that several explosions occurred onsite, with employees repeatedly ending up in hospitals. Other plants and factories have ended up gutted and shuttered, laying off hundreds of American workers. One 70-year-old plant in Kentucky, after shutting its furnaces and tossing its employees to the curb, reportedly even refashioned itself as a Bitcoin-mining operation — without bothering to bring any of the jobs back. Over and over, Kolomoisky’s team showed up, purchased the properties and seemingly lost interest — leaving broken dreams, busted plants and bleeding economies in their wake. As Harvard’s Eldredge told me, “I think there’s certainly a good many citizens who feel it’s better the building had never been built.” As it turns out, the decrepit Harvard plant had another chance to avoid falling into disrepair. But the story of how that opportunity collapsed suggests just how deeply kleptocratic networks have become embedded into the American economy. In 2016 — just as Ukrainian officials began investigating the depths of Kolomoisky’s alleged Ponzi scheme — the oligarch and his team somehow found a buyer willing to take on the former Motorola plant. The new buyer was another firm with links to overseas investors, this time headed by a Chinese Canadian businessperson named Xiao Hua Gong. Gong, who goes by Edward, openly claimed he wanted to transform the plant into a smartphone manufacturing base. According to Eldredge, Gong was initially “very charming and full of conversation of what wonderful things he was going to do.” Not too dissimilar from a certain Ukrainian network that parachuted into Harvard a few years prior, singing much the same tune. A year after the sale, though, still nothing had happened with the building. And then Canadian authorities dropped a bombshell: They accused Gong of running his own transnational money laundering scheme, charging him with fraud and money laundering. Follow-on allegations from New Zealand authorities detailed how Gong had led a “multi-national pyramid scheme,” eventually resulting in the country’s largest-ever settlement, worth over $50 million. If the various allegations are true, this means the Harvard Motorola plant has entered not one, but two separate dirty-money pipelines. Following the charges against Gong, the plant remained frozen until its acquisition a few weeks ago. Local authorities couldn’t touch it, as it was part of ongoing investigations attempting to unwind Gong’s network. And the residents of Harvard watched the factory, and its initial promise, sit vacant. “It’s almost as if these oligarchs, that they have so much money that the rules don’t apply to them, they can do whatever they want,” Kelly sighed. “I think the community sees that the Motorola plant has been a huge albatross for us.” He paused, and took a breath. “The building is f---ing cursed.” We only know about Harvard because American and Canadian authorities, aided by partners in Ukraine and New Zealand, targeted the specific money laundering networks allegedly linked to Kolomoisky and Gong. But given the miles-wide availability of other American money laundering services — from real estate to private equity, hedge funds to anonymous trusts, artwork to accountants — there’s no reason to think the Motorola plant is the only multimillion-dollar American asset that’s been bandied between parallel kleptocratic networks. “I’m not sure people do understand how damaging taking dirty money really is to the United States,” former FBI agent Karen Greenaway, who has deep experience investigating post-Soviet money laundering networks, testified in 2019. “Dirty money is like a rainstorm coming into a dry streambed. It comes very quickly, and a lot of it comes very fast, and the stream fills up, and then it gets dry again.” As Harvard, Warren, and other small towns allegedly targeted by Kolomoisky’s network learned, that flood of money will wash through — but the streambed will dry up just as quickly, with adverse consequences for the people in those towns who hoped to benefit economically from the investments. As Greenaway added, after 2008, Americans sought to unload huge numbers of unprofitable properties, with little idea of who was buying them or whether these purchases might be new nodes in a broader transnational scheme to hide foreign wealth. Which is exactly what seems to have been the case in each of the overlooked, forgotten towns Kolomoisky and his team touched. Places like the towns in America’s steel-production heartland, reliant on the aging steel plants for another generation of jobs that will now never come. Places like Cleveland, which watched Kolomoisky and his men roll in and dominate an entire downtown, leaving a “gaping hole” behind. Places like Harvard, whose residents are watching this economic lifeline turn into an economic millstone, rotting right in front of them. “I think it’s hurting small-town America,” Greenaway concluded. “I just don’t think that we’ve come to that realization yet.” And that realization is long overdue. For years, the U.S. has largely overlooked the billions of dollars — and potentially more — in dirty and suspect money flooding into the country every year, stolen from national treasuries or made via bribes, smuggling or trafficking of humans and drugs alike. Much of this money comes to the country to be washed clean, to be transformed into legitimate assets and to obscure any links to its previous criminal owners. The Biden administration has vowed to take on global corruption, recently elevating it to a core national security threat. But the intertwined stories of Kolomoisky and Harvard suggest there’s much left to do before we can even grasp the scale of the damage in America’s heartland — and figure out what to do about it. Fortunately, we’ve started seeing movement in the right direction. The U.S. under the last few administrations has finally begun to tackle problems like shell company secrecy and anonymous real estate purchases, and Congress has introduced bill after bill to patch up the U.S.’s anti-money laundering regime. The Pandora Papers themselves have already spurred legislation, dubbed the “ENABLERS Act,” that would specifically require a whole range of Americans helping these networks thrive — “U.S.-based middlemen” like Korf and Laber, if American prosecutors are right — to conduct due diligence on the sources of foreign funds they handle. As of now, the only prominent American industry required to check whether the funds it handles are dirty is the banking sector — leaving the rest of the U.S. economy wide open. Thanks to the wide number of industries that can freely work with illicit funds, we have no idea how many other oligarchs, warlords and kleptocrats may have sunk their teeth into steel towns, into farming communities, into manufacturing plants and oil hubs and port cities across America. We have no idea how much of a role they’ve played in enervating cities and towns across the Rust Belt and elsewhere. Nor do we have any idea how many towns like Harvard have suffocated along the way, their livelihoods lost, their budgets strangled, their economic fortunes imploded. All because of what we now know to be a notoriously lax legal regime that incentivizes oligarchs, heads of state and other global elites to look to the United States to shelter their money — and to grab the biggest piece of “American Kleptocracy” that they possibly can.
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press release
Cohen, Wilson, Whitehouse, and Wicker Introduce GOLD Act
Friday, August 06, 2021WASHINGTON—Helsinki Commission Co-Chairman Rep. Steve Cohen (TN-09) and Ranking Member Rep. Joe Wilson (SC-02), along with Helsinki Commissioner Sen. Sheldon Whitehouse (RI) and Helsinki Commission Ranking Member Sen. Roger Wicker (MS), this week introduced the Guaranteeing Oversight and Litigation on Doping (GOLD) Act in the House of Representatives and the Senate. The bills would enable doping fraud—a violation of the Rodchenkov Anti-Doping Act—to also activate charges under the U.S. criminal anti-money laundering and racketeering statutes. Rep. Sheila Jackson Lee (TX-18) and Rep. Michael Burgess (TX-26), sponsors of the Rodchenkov Act, also are among the original co-sponsors of the GOLD Act in the House of Representatives. The introductions follow comments from athletes expressing concern that this year’s Olympic Games—like many in the past—already have been marred by doping. “Some of our athletes at the Olympic Games in Tokyo suspect that there has been performance-enhancing doping going on. One nation with a history of doping was disqualified from participating under its own flag because of past violations. We need better enforcement of anti-doping rules to make sure the Olympics are clean and that athletes are winning based on their own capabilities and training,” said Co-Chairman Cohen. “It is outrageous that clean athletes must continue to face doped athletes in international competition, but it isn’t surprising. No serious deterrent currently exists to stop the networks that engage in doping fraud, so doping continues unabated and remains a powerful asymmetric tool for authoritarian states like Russia to undermine the rule of law. Enforcement of the Rodchenkov Anti-Doping Act would put an end to this,” said Rep. Wilson. “The Olympics inspire us with remarkable feats of athleticism and a shared commitment to fair play. But doping schemes undermine the spirit of the games, and help kleptocrats like Putin burnish their image on the world stage. That's why we need to extend the reach of the Rodchenkov Act, which I helped pass into law to tackle international doping. The GOLD Act will help law enforcement use our new anti-doping law to protect the integrity of international sport,” said Sen. Whitehouse. “The United States needs to be ready to address doping fraud. Athletes have already expressed concern about possible doping at the Tokyo Olympics, and next year’s Beijing Olympics are not likely to be better given the corrupt nature of the Chinese Communist Party,” Sen. Wicker said. “The GOLD Act would pick up where the Rodchenkov Act left off, expanding the reach of the law by acknowledging that doping never happens in a vacuum. The corrupt officials and human rights abusers who engage in doping fraud also engage in money laundering, drug trafficking, computer hacking, racketeering, and more.” “The Rodchenkov Anti-Doping Act will finally hold Russia and other authoritarian actors to account for their state-run fraud. We should also closely examine the administrators and officials of the International Olympic Committee, World Anti-Doping Agency, and the various international sport federations, some of whom have allegedly enabled or engaged in doping fraud. The GOLD Act will make the Rodchenkov Act even broader and more powerful, and I look forward to the first indictment,” said Rep. Jackson Lee. “This week, Americans and the world are watching as Olympic athletes, who spent countless hours preparing, compete on the biggest world stage. It is critical that we do all we can to ensure they know that their effort is not tainted by someone working to rig the system. Being the largest sovereign contributor to the World Anti-Doping Agency (WADA), the United States must make certain that WADA is enforcing the rules and regulations in international competitions. The GOLD Act will strengthen the Rodchenkov Anti-Doping Act, and provide assurance to American competitors that their competition is clean and fair and that defrauded athletes may receive justice,” said Rep. Burgess. Helsinki Commissioner Rep. Richard Hudson (NC-08) and Rep. Tom Malinowski (NJ-07) also are original cosponsors of the GOLD Act. In December 2020, the Rodchenkov Anti-Doping Act became law. This groundbreaking extraterritorial criminal authority redefined doping as fraud and enables U.S. law enforcement to pursue corrupt administrators, officials, doctors, coaches, and other structural perpetrators of doping anywhere in the world. On July 21, the Helsinki Commission held a hearing on enforcement of the Rodchenkov Act at the Tokyo Olympics.
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article
OSCE SHDM on Digital Technology and Human Rights
Monday, July 26, 2021OSCE Conference on Risks and Opportunities Posed by Digital Technologies On July 12 and 13, 2021, the OSCE Office for Democratic Institutions and Human Rights (ODIHR) held the third Supplementary Human Dimension Meeting (SHDM) of the year, titled "Digital Technologies and Human Rights - Opportunities and Challenges." The virtual conference included representatives from 45 OSCE participating States; a dozen OSCE missions and institutions, including the OSCE Parliamentary Assembly; more than 140 academic, national, and non-governmental human rights institutions; and international organizations like the Council of Europe, European Union, and the United Nations. Digital technologies affect human rights, gender equality, and the rule of law, and in her opening remarks, Swedish Foreign Ministry Director-General for Political Affairs Elinor Hammarskjöld stressed the nexus between digital technologies and Swedish OSCE Chairpersonship-in-Office (CiO) priorities. The COVID-19 pandemic underscored how the digital divide disproportionately affects women and girls, she explained, and stressed the threat that widespread use of digital technologies can pose to fundamental freedoms if used indiscriminately by authorities. Panelists highlighted opportunities for digital technologies to benefit societies and human rights defenders, as well as dangers they can pose to human rights. Maia Rusakova, associate professor of sociology at St. Petersburg State University, warned that data collection technologies have facilitated online recruitment by human traffickers. However, facial recognition, artificial intelligence, and tracking blockchain financial transactions and social media activity could play a role in combatting the digital threats of human trafficking. Susie Alegre, an associate at the human rights NGO Doughty Street Chambers, highlighted how cutting-edge data collection can raise awareness of threats to human rights, support investigations, facilitate positive social change, and support human rights defenders. Examples include Data 4 Black Lives, eyeWitness to Atrocities, Forensic Architecture, and Bellingcat. Elif Kuskonmaz, a lecturer at the University of Portsmouth, cautioned that misuse of facial recognition technology could pose threats to peaceful assembly and freedom of speech, and that it could be exploited to wrongfully detain citizens. To prevent such abuse, she recommended that participating States adopt adequate legal frameworks concerning the collection, use, storage, and sharing of personal data. She urged all participating States to review the Council of Europe's Convention 108+, which addresses personal data collection in a national security context. Other panelists explored the capacity of artificial intelligence systems to reinforce existing structural inequalities through algorithms and the subsequent human rights implications. Civil Society Concerns about Government Use—or Abuse—of Digital Technology Civil society participants shared human rights concerns related to governmental use of digital technologies. Many urged the OSCE to call out repressive behavior and help participating States establish adequate legal protections against misuse. Several urged the United States and the European Union to target sanctions against the worst offenders. Many participants also took the opportunity to raise human rights concerns directly with government officials, and alleged misuse of data collected by government agencies to persecute human rights defenders, social activists, and their families. For example, civil society activists from Kazakhstan accused the government of conducting digital surveillance and censorship on NGOs and activists, and they complained that mandatory “security certificates” allow the government to monitor and block use of non-government-controlled social media sites such as Facebook, YouTube, and Instagram. Other NGOs raised concerns about Spain's treatment of protesters in Catalonia, Greece's treatment of Turks in Western Thrace, and Russia’s occupation of Ukraine, including Crimea. A German NGO called for the abolition of facial recognition technology due to its use by law enforcement to profile specific ethnic groups and minorities, including Roma and Sinti. Civil society participants also expressed concerns over participating States’ use of digital technology to target dissent by deploying spyware against individuals, spreading misleading government-sponsored content, and silencing protest groups and democratic movements. Several NGOs argued that their governments exploited conditions imposed by the pandemic to use surveillance camera footage, geolocation data, and contact tracing as part of a domestic surveillance campaign to discourage public political dissent. Participants highlighted how technology has been used to spread racist messaging, including the racist abuse of English football players following the recent Union of European Football Associations Euro 2020 matches. Many voiced their dismay that social media companies do not hold accountable individuals who spread racist content. Participants recommended that social media companies implement more robust algorithms to detect racist remarks. Participating States Respond Several participating States addressed the use of technology. The European Union recognized the importance of addressing human rights abuses that arise from the misuse of digital technologies. Turkey responded by touting its 2016 law on data protection and emphasizing its multiculturalism. The Holy See responded that it is necessary to improve education in proper use and effects of technology. The Holy See also called for international regulations to guarantee the protection of human rights and fundamental freedoms, including the right to private personal electronic communication.
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in the news
Rodchenkov Anti-Doping Act won't keep Tokyo clean - lawyer
Wednesday, July 21, 2021July 21 (Reuters) - The Rodchenkov Anti-Doping Act (RADA) is essential to restoring integrity to international sports and protecting clean athletes but won't be able to keep the Tokyo Games clean, a Helsinki Commission hearing in Washington was told on Wednesday. RADA, which was signed into law last December, allows the United States to prosecute individuals for doping schemes at international events involving American athletes, sponsors or broadcasters. The July 23-Aug. 8 Tokyo Olympics will be the first major test of this new law named after Grigory Rodchenkov, a former laboratory head who turned whistleblower and helped expose Russia's state-sponsored doping. The RADA bill empowers prosecutors to seek fines of up to $1 million and jail terms of up to 10 years. "Sadly, RADA will not make the Tokyo games clean. They will not be clean, that much I guarantee," Jim Walden, attorney for Rodchenkov, told the hearing. "The first nine years of my career I spent battling organised crime families in New York as a federal prosecutor. As resilient as the Mob proved to be, it pales in comparison to the deeply entrenched corruption in international sports." According to Walden, RADA is essential to restore integrity to international sports and protect clean athletes because "the current system is corrupt, purposefully ineffective, and deeply conflicted". Walden said Congress could super-size RADA's impact if it uses its oversight authority to ensure the FBI and Justice Department have a complete plan and allocate sufficient resources to bring cases. He also said a second imperative would be to withhold funding for the World Anti-Doping Agency until more transparency and Executive Committee comprised primarily of former clean athletes and anti-doping scientists are achieved. Edwin Moses, emeritus chair of the U.S. Anti-Doping Agency (USADA), told the hearing the "win at all costs" culture in sports is alive and well. Moses said the state-sponsored doping of the Russians competing at the 2014 Sochi Olympics was shocking, but even worse was a "lack of repercussions" that he described as a nightmare realized and one that we have not yet woken from. According to Moses, USADA is deeply committed to the effective utilization of RADA and will actively assist putting it in place and demonstrating its success. "This law protects the U.S. financial investment in international competition; stops corrupt actors that organize and facilitate doping fraud; compensates clean athletes who have been defrauded; and protects whistleblowers and clean athletes," said Moses. "The Rodchenkov Act is a strong deterrent to those that look to corrupt sport, on a global scale and ultimately a powerful detection mechanism."
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statement
Ranking Member Joe Wilson on July 2021 Congressional Delegation
Wednesday, July 21, 2021Mr. Speaker, this month, I was grateful to participate in a Congressional delegation of the OSCE Parliamentary Assembly led by Senator Roger Wicker and Senator Ben Cardin. It was inspiring to see the extraordinary economic advances of Estonia and Bulgaria. In Tallinn, Estonia, we were welcomed by the dynamic Prime Minister, Kaja Kallas, and the dedicated Foreign Minister, Eva-Maria Liimets. While in Tallinn, we learned that Russian diplomats had been expelled in April across the Baltics to join the protest of the Czech Prime Minister, Andrej Babis, exposing the irrefutable evidence that two Russian GRU agents were behind the 2014 ammunition depot explosion at Vrbetice, which killed two persons. The same two Russian agents named by the Czech Republic are suspected by British authorities for poisoning former Russian double agent Sergei Skripal and his daughter in England in 2018. The Czech Republic has correctly demanded Russia pay for damages.
Title
Partially Protected?
The U.S. Helsinki Commission convened an expert briefing on the background, implementation, and legal and political implications of temporary protection for people in the United States and Europe who come from countries of conflict or natural disaster but not qualify for asylum. The discussion explored whether some European Union countries are choosing temporary protection even when asylum claims are credible.
Alex T. Johnson, Chief of Staff for the Helsinki Commission, said in his opening remarks, “Chairman Hastings sees [protected status] as a priority, particularly in the United States and in the OSCE region because of the erosion of human rights and democratic institutions that we are seeing now. It’s particularly urgent as we look at our own domestic compliance with commitments in the Organization for Security and Cooperation in Europe, and how we partner with countries who are also exploring issues related to granted protected status for vulnerable communities in their midst.” Johnson also noted Chairman Hasting’s introduction of H.Con.Res. 5, which expresses support for Haitians residing in the United States with Temporary Protected Status (TPS).
In the discussion that followed, Jill Wilson of the Congressional Research Service provided context on TPS and its implementation in the U.S. Wilson reported, “Ten countries are currently covered by TPS, benefitting some 400,000 individuals in the United States. The Trump administration has announced terminations for six of these ten countries on the grounds that the conditions on which the original designations were based no longer exist. These terminations are currently on hold pending court action.”
Recent efforts by members of the 115th and 116th Congress saw a greater number and variety of TPS-related bills that seek either to expand or restrict TPS and shift the decision-making power from the Secretary of Department of Homeland Security (DHS) to the U.S. Congress. Currently, the Secretary of the DHS, in consultation with other key government offices namely the U.S. State Department, has the power to designate a country for temporary protection in periods of six, twelve, or eighteen months based on three categories: armed conflict, natural disaster, or extraordinary circumstances that prevent the safe return of a country’s nationals.
Marleine Bastien of the Family Action Network Movement shared her expertise on the current political and economic situation in Haiti, following the catastrophic earthquake in 2010 and subsequent natural disasters that resulted in major public health emergencies, about 300,000 displaced people, and severely damaged infrastructure. Despite these continuing poor conditions, Haiti’s TPS status is subject to termination.
Bastien remarked, “We hope that Congress will take a close look at what’s going on in Haiti today…The conditions in Haiti continue to deteriorate. Haiti still qualifies for temporary protected status… TPS is still applicable, not only for the countries that qualify now, but for the countries in the future which may experience natural and political disasters.” Without its TPS re-instated, she said, Haiti does not have the capacity to resettle and support the 58,000 Haitians currently living in the U.S.
Sui Chung, an attorney with the Immigration Law and Litigation Group in Miami, Florida, and Chair of the Immigration and Customs Enforcement Committee of the American Immigration Lawyers Association (AILA) stated that unless legislation like the American Dream and Promise Act, H.R. 6 is passed, TPS recipients remain at risk of being detained or deported.
Chung remarked, “Although the federal courts have enjoined the termination of TPS for some countries, these court orders are temporary. If a higher court rules unfavorably, those with TPS would be vulnerable to losing authorization to work and reside in the U.S., and they would be subject to deportation.”
Chung stated that 94 percent of individuals under TPS are employed, generating about $5.5 billion in federal, state, and local taxes, with roughly $25 billion spending power. According to Chung, losing this population could cripple the U.S. economy and harm communities.
Catherine Woollard, Secretary General of the European Council on Refugees and Exiles, described Europe’s decision-making process for protection status as an inconsistent and unfair “asylum lottery” She argued that the lack of fairness and uniformity in granting TPS originates from the selection process, where the decision to grant protection status is left solely to the discretion of the twenty-eight European Union Member States rather than a universal eligibility process.
Woollard noted, “Our analysis shows that these different protection statuses have a wide variation when it comes to the rights attached. Key rights that are of interest and necessity for people who are seeking protection vary. If you have refugee status, your residence rights are for a longer duration. For subsidiary protection, less time is granted for residential rights. In some cases, there are very stark differences.”