Title

The Romanian Anti-Corruption Process: Successes and Excesses

Wednesday, June 14, 2017
9:30am
Senate Visitors Center, Room 212/210
Washington, DC
United States
Members: 
Name: 
Senator Roger Wicker
Title Text: 
Chairman
Body: 
Commission on Security and Cooperation in Europe
Name: 
Senator Sheldon Whitehouse
Title Text: 
Commissioner
Body: 
Commission on Security and Cooperation in Europe
Name: 
Representative Robert Aderholt
Title Text: 
Commissioner
Body: 
Commission on Security and Cooperation in Europe
Name: 
Representative Gwen Moore
Title Text: 
Commissioner
Body: 
Commission on Security and Cooperation in Europe
Witnesses: 
Name: 
Ambassador Mark Gitenstein
Title: 
Special Counsel
Body: 
Mayer Brown
Name: 
Heather Conley
Title: 
Senior Vice President
Body: 
Center for Strategic and International Studies
Name: 
David Clark
Title: 
Foreign Policy Commentator and Consultant
Name: 
Philip Stephenson
Title: 
Chairman
Body: 
Freedom Capital

Corruption is an issue of particular concern to the United States and the OSCE because of the threat it poses to security, economic development and human rights. Romania has a history of combating corruption since the fall of Communism, and to this day struggles to maintain transparency in its government institutions and businesses. The fight against corruption is the modern arena for the protection of democratic institutions and freedoms, which for Romania means the strengthening of its institutions and rule of law.

The U.S. Helsinki Commission’s hearing on June 14, 2017, focused on Romania’s anti-corruption process, examining progress as well as recommendation for the United States to help support these goals.  

“Romania’s anti-corruption efforts have garnered international attention and have been held up as an example for other countries, such as Ukraine,” observed Chairman Wicker. “We want those efforts to be successful. In holding this hearing today, we hope to support those working to fight against corruption in a way that is consistent with the rule of law and strengthens the democracy Romanians have worked so hard to build.”

Witnesses at the hearing included Ambassador Marc Gitenstein, former U.S. Ambassador to Romania from 2009 to 2012 and a partner at leading global law firm, Mayer Brown; Ms. Heather Conley, Senior Vice President for Europe, Eurasia, and the Arctic, and Director of the Europe Program at the Center for Strategic & International Studies; Mr. David Clark, a British foreign policy commentator and consultant with Shifting Grounds; and Mr. Philip Stephenson, Chairman of the Freedom Group and former partner of the International Equity Partners. 

Witnesses overwhelmingly stressed the need for continued anti-corruption work in Romania and made recommendations for strengthening and improving those efforts. In his opening statement, Ambassador Gitenstein conveyed his optimistic view of Romanian anticorruption efforts, and pointed to the recent mass demonstration in January of this year—the largest in Romania since 1989—as evidence of strong public support for continued progress. In this regard, he said Romania was a model for the region, and continues to meet benchmarks set by the Cooperation and Verification Mechanism (CVM) of the EU - a special monitoring mechanism established by the EU as a condition for Romania’s accession.

Ms. Conley characterized the fight against corruption as “a matter of national security.”  While echoing Ambassador Gitenstein’s optimism, she underlined that Romania is not done with its fight against corruption. She stated that the United States decreased the amount of assistance to Romania after the country’s accession to the EU and NATO, suggested that this was a mistake.

“This is what leaving the policy playing field looks like,” Ms. Conley argued. She warned that allowing corruption to spread and create weaknesses within Romanian institutions would allow for future exploitation by Russia.

Mr. David Clark expressed concern regarding several areas of Romania’s anti-corruption measures, which he said had been tainted by the politicization of justice, collusion between prosecutors and the executive branch, intelligence agency influence over the process, lack of judicial independence and other abuses of the process.

He doubted the accuracy of the European Union’s CVM progress reports due to the Union’s “epic capacity for wishful thinking,” as evidenced by how slow the EU has been to respond to the serious deterioration of democratic standards in Hungary and Poland. He pointed to several troubling human rights violations in Romania and urged the Helsinki Commission to ask hard questions of the State Department and support better reporting on corruption issues in the annual State Department Country Reports on Human Rights.

Mr. Phil Stephenson described his personal experience with the Romanian judicial system and his ongoing investigation by DICOTT, an antiterrorism organization in Romania, stating that “the fight against corruption itself has been corrupted.” He appreciated the attention that the Commission was bringing to the issue of corruption in Romania and argued that continued attention will protect against deficiencies in the anti-corruption process.

Note: The unofficial transcript includes a Romanian translation.

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  • Helsinki Commission Digital Digest April 2022

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  • Russia Critics Press Congress for Curbing Moscow's Role in International Groups

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  • Countering Oligarchs, Enablers, and Lawfare

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We stand with you.” Related Information Witness Biographies Statement for the Record: Arabella Pike, Publishing Director, HarperCollins Publishers

  • Helsinki Commission Digital Digest March 2022

  • Helsinki Commission Hearing to Examine Ways to Counter Oligarchs, Enablers, and Lawfare

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  • With oligarchs in the crosshairs, alleged Western 'enablers' attract fresh scrutiny

    As governments scramble to seize high-profile assets owned by Russian oligarchs, a quiet effort is gaining momentum in the West to target their alleged “enablers” – the lawyers, lobbyists and money-handlers who critics say help them hide, invest and protect their vast wealth in U.S. and European institutions. “The yachts and jets and villas get the most attention, but a lot of the oligarchs’ money is in private equity and hedge funds – places we can’t see,” said Maira Martini, a researcher with the corruption watchdog Transparency International. “That’s the money that really matters to them.” For decades, wealthy business tycoons with close ties to Russian President Vladimir Putin have enlisted the services of reputable bankers and lawyers in the West to navigate loopholes that obscure their identity. While it's not necessarily illegal to use obscure entities and agents to protect finances, critics say the laws need to be strengthened to create more transparency. rganized Crime and Corruption Reporting Project, a global investigative reporting platform that focuses on corruption, organized crimes and illicit financing, claims to have uncovered over 150 assets worth $17.5 billion held by 11 Russian elites and their alleged enablers, while a Forbes report identified more than 82 properties across the world -- a collective of $4.3 billion -- held by 16 sanctioned Russian oligarchs. Assets that have surfaced are likely only a fraction of these oligarchs' actual wealth. The true extent is difficult to track because they often use a convoluted network of shell companies, obscure entities and stand-ins to keep their finances hidden, experts said. But now, with war raging in Ukraine, lawmakers and corruption watchdogs are calling on governments to close those loopholes and crack down on the middlemen who know how to exploit them. “Putin’s oligarchs cannot operate without their Western enablers, who give them access to our financial and political systems,” said Rep. Steve Cohen, D-Tenn. “These unscrupulous lawyers, accountants, trust and company service providers and others need to do basic due diligence on their clients to ensure that they are not accepting blood money. This isn’t rocket science – it is common sense policy to protect democracy.” In Washington, Cohen and others have introduced the ENABLERS Act, which would require real estate brokers, hedge fund managers and other entities to “ask basic due diligence questions whenever somebody comes to them with a suitcase full of cash,” said Rep. Tom Malinowski, D-N.J., the lead sponsor of the bill. The International Consortium of Investigative Journalists, a global network of journalists and newsrooms that have tracked the wealthy's tax havens and financial secrecy, has identified at least a dozen networks of facilitators, offshore agents and banks across the world that have allegedly helped Russia's elites move and hide their money based on its analyses of public records and leaked financial documents the group has obtained over the past decade. This includes a range of actors, from global offshore law firms that create shell companies and other obscure entities to help wealthy Russians keep their finances clouded, to one-man shops in offshore tax havens that help set up "nominee" shareholders and paid stand-ins to conceal the real owners of entities. ICIJ also points to the roles of major law firms in helping shape the modern tax avoidance system as well as the roles of big financial institutions and banks in helping wealthy Russians move their money. Last year, The Washington Post, as part of its collaboration with ICIJ's Pandora Papers project, reported on how South Dakota, with its limited oversight, vague regulations and trust secrecy, has become a tax haven for secretive foreign money. Malinowski stressed that the United States "has become one of the easiest places in the world for corrupt kleptocrats around the world to hide money." “What we've basically allowed is a system where people can steal their money in countries without the rule of law and then protect their money in countries like ours where they can count on property rights and courts and privacy rules to safeguard his loot for life," Malinowski said. "We should not be complicit in the theft that supports dictatorships like Putin." Experts warned that sanctions and asset seizures, while effective in the short term, may be toothless over time if secrecy loopholes remain in place. On Wednesday, Transparency International published an open letter calling on Western leaders to take steps to stem rules that foster opacity. “To disguise their wealth and keep them out of the reach of law enforcement authorities, kleptocrats will turn to lawyers, real estate agents, banks, crypto-service providers and banks in your countries,” the letter reads. “You must redouble your supervision efforts over the gatekeepers of the financial sector.”

  • Chairman Cardin Emphasizes the Importance of the Global Magnitsky Act

    Madam President, reserving the right to object to the request from the Senator from Idaho, it is my understanding that the Senator’s modification would not include provisions that were included in the Housepassed legislation that modifies the global Magnitsky sanction regime. I just would like to speak for a moment, if I might. There is no question that we stand with the people of Ukraine against the unprovoked attack by Mr. Putin. We are inspired every day by the courage of the Ukrainian people and by their inspirational leader, President Zelenskyy. The United States has shown leadership, and I congratulate the Biden administration. We have led the free world in providing defensive lethal weapons to Ukraine to defend itself. We have provided humanitarian assistance, joining the global community, including dealing with 3 million Ukrainians that are now refugees in other countries and 10 million that have been displaced as a result of Mr. Putin’s unprovoked attack. And we have led on sanctions. We have led in getting the global unity to impose sanctions against not just the Russian sectors, but also against individuals. And when Mr. Zelenskyy spoke before the Members of Congress, he specifically mentioned the importance of these sanctions; and he asked us to expand those covered by the sanctions to include the enablers, those that are enabling Mr. Putin—the oligarchs—to be able to fund his aggression against Ukraine. So what did the House send over to us? In their bill, they sent over a global Magnitsky modification. It is identical to legislation that was filed by Senator PORTMAN and myself that included the revocation of PNTR for Russia, along with the global Magnitsky. First and foremost, it removes the sunset that is in the legislation that would sunset this year. Mr. Zelenskyy asked for us to be resolved in being willing to stand up to Mr. Putin, that it would take some time. A clear message is that we remove the sunset on the global Magnitsky statute. And we know how difficult it is to get legislation passed in this body. It also expands the global Magnitsky to include the enablers—exactly what Mr. Zelenskyy asked us to do—those that enabled—the oligarchs that allowed him to be able to finance this. The language that is included in here is very similar to the language that was included in President Trump’s Executive order. This is critical legislation. Now, let me just tell you how appropriate it is that it is included in a PNTR bill—because the first Magnitsky sanction bill—and Senator WYDEN was very important in getting this done—was included in the original PNTR bill for Russia, and we were able to get it done at that time. We then made it a global Magnitsky, and my partner on that was the late Senator McCain. It has always been bipartisan. My partner now is Senator WICKER. The two of us have joined forces to make sure we get it done now. It is critically important in order to impose banking restrictions on those that are targeted under the global Magnitsky, as well as visa restrictions on being able to travel. How important is it? Ask Mr. Usmanov, who is one of the principal oligarchs to Mr. Putin, who solves Mr. Putin’s business problems. Guess how he solves those problems? Well, his yacht has now been confiscated in Germany. That is how important these sanctions are and how we have to move them forward. So, if I understand my colleague’s request, it would deny the opportunity for us to act on the global Magnitsky, which Mr. Zelenskyy has specifically asked us to do. We would lose that opportunity. We would be sending this bill back to the House that is not in session, which means there will be a further delay in repealing PNTR for Russia, which is something we need to do now, today. We can get it to the President for signature today under the majority leader’s request. And as the majority leader has indicated, I support the energy ban—I support the Russian energy ban. President Biden has already taken steps to do that. And I agree with my colleague from Idaho. I would like to incorporate that in statute, but there is no urgency to do that as there is on repealing PNTR and the global Magnitsky. That is the urgency. That is what we need to get done today. That is what we can get to the President this afternoon under the majority leader’s request, and that will be denied if my friend from Idaho’s request were granted. So, for all those reasons, I object.

  • Helsinki Commission Recognizes Key Contributions from Allies and Partners

    WASHINGTON—In light of Russia’s continued criminal war on the peaceful citizens of Ukraine, 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: “Russian dictator Vladimir Putin’s barbaric war against the Ukrainian people has inspired global outrage and condemnation. Many countries have risen to the moment, especially our Baltic Allies, Poland, and Romania. We also recognize those other OSCE participating States that have taken particular risks and stepped up during this moment of great danger and clear moral purpose.  “We thank the Government of Turkey for its significant and robust support for Ukraine. Turkey has long been among Ukraine’s most ardent and consistent advocates, and its closure of the Bosporus and Dardanelles Straits to warships from Russia and Ukraine, consistent with the Montreux Convention, effectively supports Ukraine and the cause of European security. Turkey plays an indispensable role as a NATO Ally and strategic linchpin in Europe. We look forward to working closely with our Turkish allies on additional steps to support Ukraine. “We also recognize Moldova for serving as a safe haven for refugees and for its strong support for Ukraine’s territorial integrity. To date, on a per capita basis, Moldova has welcomed more refugees than any other country. Despite limited resources and the unlawful presence of Russian troops on its soil, President Maia Sandu and the Government and people of Moldova have shown their mettle. We congratulate Moldova on its European Union application. We see your heroic efforts and will continue to work diligently towards supporting Moldova’s transatlantic aspirations. “In addition, despite initially concerning and confusing statements, we applaud the Government of Georgia for its increasingly robust support for the people of Ukraine, particularly given Russia’s threats and occupation of Georgia’s territory. We are grateful for Georgia’s co-sponsorship of the UN General Assembly resolution condemning the Russian invasion of Ukraine, its participation in a call for the International Criminal Court to investigate Russian war crimes, and the strong statements of support by Georgian President Salome Zourabichvili in particular. We congratulate Georgia on its application to the European Union and look forward to doing our part to reinvigorate our bilateral partnership and deepening our transatlantic bond. “We are moving to limit Russia’s ability to wage war on its neighbors and will work closely with our friends to navigate this dangerous moment in history.” On February 28, the Turkish government exercised its authority as a custodian of the Bosporus and Dardanelles Straits, per the 1936 Montreux Convention, and closed their use to warring parties in the Black Sea. On March 2, Turkey provided the Ukrainian military with additional Bayraktar TB2 unmanned aerial combat vehicles. Since Russia launched a full-scale invasion of Ukraine on February 24, Moldova was among the first to open its borders to Ukrainian refugees and hosts more refugees per capita compared to any other European state. Russia illegally maintains a garrison of approximately 1,500 troops on Moldovan territory in Transnistria and supports a separatist government. On March 2, the Government of Georgia co-sponsored a UN General Assembly resolution that condemned Russia’s war against Ukraine. On the same day, Georgia joined 37 other countries formally calling for an International Criminal Court investigation of Russian war crimes in Ukraine. 

  • Helsinki Commission Digital Digest February 2022

  • Olympic skater’s entourage could face trouble under US law

    ZHANGJIAKOU, China (AP) — Legal troubles for the coach and others in Russian figure skater Kamila Valieva’s orbit could emerge in the United States even after her doping case from the Beijing Games has been resolved. Anti-doping experts say the episode falls under the scope of a recently enacted U.S. law that criminalizes doping schemes in events involving American athletes. The law calls for fines of up to $1 million and prison sentences of up to 10 years for those who participate in doping programs that influence international sports. “Doctors and coaches who give performance-enhancing drugs to athletes are directly liable” under the new law, said one of its authors, attorney Jim Walden. “They are at risk of jail, steep fines, and forfeiture. And I suspect the FBI is already hot on this trail.” On Monday, The Court of Arbitration for Sport cleared Valieva to compete in the women’s competition this week. Still unresolved is what to do about the gold medal the Russians won — with Valieva as the headliner — in last week’s mixed team competition. Because Valieva is 15, and considered a “protected person” under global anti-doping rules, the sanctions against her could be light. That does not exempt her entourage from possible anti-doping penalties beyond the possible stripping of the medal from the Russian team. Walden and others expect those same people to come under investigation by U.S. law-enforcement, as well. “The latest Russian doping scandal in Beijing is exactly why we passed the Rodchenkov Anti-Doping Act. Doping is corruption,” said Sen Ben Cardin, D-Maryland, who is involved in anti-doping issues. Walden represents the bill’s namesake, Grigory Rodchenkov, the Russian lab director who blew the whistle on the complex, widespread Russian doping scheme designed to help the country win medals at the 2014 Sochi Games and elsewhere. Rodchenkov now lives in hiding. The Rodchenkov Act wasn’t designed to go after athletes. It targets coaches, doctors and other members of an athlete’s entourage who are accused of arranging doping programs in any event that involves U.S. athletes, sponsors or broadcasters. The bill, supported by Walden, the U.S. Anti-Doping Agency and others, passed by unanimous consent through both houses of Congress and was signed into law in December 2020. It was considered a remarkable achievement considering the polarization in U.S. politics. Officials at the White House drug control office in both the Trump and Biden administrations have been critical of global anti-doping regulators. They threatened to withhold funding from the World Anti-Doping Agency, but recently paid their remaining dues despite some major concerns. The law’s first test came last month when federal officials charged a doctor of providing drugs to an “Athlete A,” who The Associated Press identified as Nigerian sprinter Blessing Okagbare. The IOC and WADA lobbied against parts of the bill. Their main argument was that it gave U.S. law enforcement too much leverage in policing anti-doping cases that occur outside its own borders. This case — a Russian who was found to have doped on Dec. 25 at a national championship — appears, at first glance, to fit that profile. WADA said it took six weeks for officials to receive the test from a lab in Sweden because Russia’s anti-doping agency (RUSADA) failed to flag it as a priority. That Valieva was allowed to compete at the Olympics turns it into an international episode. WADA said in a statement that it was “disappointed in the ruling,” and that it, too, would “look into” Valieva’s support personnel. Russia’s anti-doping agency has also begun an investigation. But critics of WADA and the IOC argue the bill was passed because the international anti-doping system has proven it can’t police its own. They point to the sanctions handed to Russia over the past eight years as Exhibit A. Part of those sanctions resulted in years’ worth of suspensions and reforms for RUSADA, which is overseeing this case. Critics contend the case involving Valieva might not have erupted had the country — whose athletes are competing in Beijing under the banner of “Russian Olympic Committee” due to the sanctions — been penalized appropriately. “If I were a betting man, I’d say there’s a 95% chance that this is a good case for” the law, said Rob Koehler, the head of the advocacy group Global Athlete. Though there are harsh penalties under the law, it’s hard to imagine U.S. authorities would ever get their hands on Russians if they were indicted. Still, an indictment would have an impact. It could curtail their ability to travel or coach outside of Russia, since the United States has extradition deals with dozens of countries across the globe. Valieva tested positive for the banned heart medication trimetazidine. “We need more facts, but you can envision a case like this under Rodchenkov,” USADA CEO Travis Tygart said. “This drug doesn’t just show up out of nowhere. Assuming the facts play out that someone was involved in giving it to her to enhance performance, it fits like a glove.”

  • Chairman Cardin on Doping Scandal At 2022 Winter Olympics in Beijing

    WASHINGTON—Helsinki Commission Chairman Sen. Ben Cardin (MD) released the following statement: “The latest Russian doping scandal in Beijing is exactly why we passed the Rodchenkov Anti-Doping Act. Doping is corruption. It defrauds clean athletes and honest sponsors, and insults the spirit of international competition. “Putin—like other strongmen—regularly uses corruption as a tool of foreign policy. The Olympics are no exception. I call on the U.S. Department of Justice to investigate all alleged doping crimes during the Beijing Olympics and hold the perpetrators responsible under the Rodchenkov Act.” The Rodchenkov Anti-Doping Act, which became law in December 2020, criminalizes doping in international sport. In January 2022, the Federal Bureau of Investigation announced the first charges filed under the Rodchenkov Anti-Doping Act for a doping scheme at the Tokyo Olympics.

  • Helsinki Commission Digital Digest January 2022

  • Helsinki Commission Marks One-Year Anniversary of Navalny’s Imprisonment

    WASHINGTON—Ahead of the one-year anniversary of Alexei Navalny’s arrest on January 17, 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 statements: “In the past year, while Alexei Navalny has remained unjustly imprisoned, the Kremlin has doubled down on its absurd persecution of his anti-corruption organizations as ‘extremist,’” said Chairman Cardin. “Nevertheless, Mr. Navalny’s colleagues, friends and allies, in the face of grave threats, continue to risk their own freedom to expose Putin’s thuggery across Russia.” “Putin would not have gone to the trouble to imprison Alexei Navalny unless he perceived a serious threat to his power,” said Co-Chairman Cohen. “Mr. Navalny and his team across Russia were instrumental in revealing the ill-gotten gains of Putin and his cronies. This tells you all you need to know about why they are a target.” “During his imprisonment, Alexei Navalny has used his own suffering to call attention to the plight of the hundreds of other political prisoners in Russia,” said Sen. Wicker. “We have not forgotten him or others who are persecuted for their beliefs, and we look forward to a Russia in which they finally are free.” “Despite the Kremlin’s attempts to push Alexei Navalny out of public view and prevent him from challenging Putin, we will not stop calling for his release,” said Rep. Wilson. “Russians who challenge Putin should not have to fear for their safety in their own country.” In August 2020, Alexei Navalny was the victim of an assassination attempt by the FSB that used a Russia-developed chemical weapon in the Novichok family. He spent months recovering after being flown to Berlin for treatment. Navalny returned to Moscow on January 17, 2021, and was arrested at the airport. In February, a Russian judge sentenced Navalny to three and a half years in a prison colony for violating the terms of a suspended sentence related to a 2014 case that is widely considered to be politically motivated. Previous time served under house arrest reduced his prison time to two years and eight months. In June, the Moscow City Court ruled that Alexei Navalny’s Anti-Corruption Foundation and its regional networks would henceforth be considered “extremist” organizations, essentially outlawing these groups and criminalizing their activity. In September, Russian authorities opened a new probe against Navalny and his closest associates for creating and directing an “extremist network.” This, combined with other ongoing criminal investigations, could lead to additional jail time for Navalny and threaten those associated with his organizations, many of whom have been forced to flee Russia.

  • Helsinki Commission Welcomes First Charges Under the Rodchenkov Anti-Doping Act

    WASHINGTON—Following the first charges filed under the Helsinki Commission’s Rodchenkov Anti-Doping Act for a doping scheme at the Tokyo Olympics, Helsinki Chairman Sen. Ben Cardin (MD), Co-Chairman Rep. Steve Cohen (TN-09), Ranking Member Sen. Roger Wicker (MS), Ranking Member Rep. Joe Wilson (SC-02), and former Commissioner Rep. Michael Burgess (TX-26) issued the following statements: “Swift utilization of the Rodchenkov Anti-Doping Act is exactly what we hoped for with this legislation,” said Chairman Cardin. “I thank the U.S. attorneys and investigators who put in long hours of work pursuing this case. They understood the importance of cleaning up cheating and corruption in international sports, which often is a tool of autocratic governments. These first charges are only the beginning and serve as a very public part of the global anti-corruption strategy supported by the Biden administration and spearheaded by the Helsinki Commission for many years.” “I welcome this first enforcement action under the Rodchenkov Act and urge the Department of Justice to continue unraveling the corruption that infects international sport,” said Co-Chairman Cohen. “Sports should bring people together and celebrate achievement—they should not be an opportunity for fraud. My own GOLD Act would expand the Rodchenkov Act and I call on my colleagues to pass it swiftly.” “These charges are the culmination of years of work to hold administrators, doctors, and officials accountable for their role in corrupting international sport,” said Sen. Wicker. “They demonstrate that our new approach is working. I thank the public servants at the U.S. Department of Justice and urge them to continue their efforts to enforce this critically important law.” “Dictators and their cronies interfere in everything we hold dear, including sports. They view victory in international sport as a way to trumpet the greatness of their oppressive systems. Cheating in sports is part of their foreign policy,” said Rep. Wilson. “With the Rodchenkov Act, we are holding these corrupt networks to account. I applaud the Department of Justice for prosecuting fraudsters at the Tokyo Olympics and call on them to do the same in Beijing.” “From a young age, professional athletes dedicate themselves to becoming the best in their sport. For those skilled enough to make it to the Olympics, their efforts should not be tainted by doping schemes,” said Rep. Burgess. “Yesterday’s charges provide hope to those that have been defrauded. They would not have been made possible without the Rodchenkov Anti-Doping Act. I worked to enact this law to maintain sport integrity and keep all American athletes safe and protected from fraud. Further, yesterday’s action is a win for athletes such as Katie Uhlaender, whose moving testimony spurred Congress into action. I hope that yesterday’s charges are only the beginning of combatting fraud in international sport competition.”   “This is exactly the kind of action we hoped for following the enactment of this groundbreaking anti-doping legislation,” said Dr. Grigory Rodchenkov, the former head of Moscow’s anti-doping laboratory and the Russian whistle-blower after whom the law is named. “We are grateful to United States Attorney Damian Williams for taking this monumental first step toward restoring the Olympic games to their role as a cherished forum for nations to convene in the spirit of peace, fairness and cooperation. We cannot continue to allow corrupt states and the overlords of sport commerce to exploit our athletes and traditions of peace to advance the economic and geopolitical interests of the few. Yesterday's action is entirely appropriate and puts real teeth into anti-doping enforcement, while also setting an example of international cooperation and fair play for future generations.” The Rodchenkov Anti-Doping Act, which became law in December 2020, criminalizes doping in international sport. In July 2021, the Helsinki Commission hosted a hearing on the enforcement of the Rodchenkov Act at the Tokyo Olympics. Earlier that year, Dr. Rodchenkov spoke out publicly for the first time about the impact of the Rodchenkov Anti-Doping Act on a Helsinki Commission podcast, calling it a “game-changer.” On Wednesday, the New York Field Office of the Federal Bureau of Investigation (FBI) announced the charges against Eric Lira, who they allege “obtained various performance enhancing drugs (‘PEDs’) and distributed those PEDs to certain athletes in advance of, and for the purpose of cheating at, the 2020 Olympic Games held in Tokyo in the summer of 2021.”   

  • Helsinki Commission Calls for Peaceful Solution in Kazakhstan

    WASHINGTON—In response to the violent clashes between protesters and authorities in Kazakhstan, 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 deeply concerned about the situation in Kazakhstan and condemn the violence that has accompanied widespread protests across the country. The reported deaths of both protesters and police are extremely disturbing. “We call on President Tokayev and Russian troops not to use disproportionate force against protesters. At the same time, we call on protesters to cease any violent attacks against police, public buildings, or private property. “We urge both sides to find a peaceful way to resolve this crisis. We also urge President Tokayev to ensure respect for human rights, especially freedom of the media and the right to due process for those who have been arrested in connection with the protests.” A wave of protests began on January 2 in the western part of the oil- and gas-rich country in response to a sharp increase in the price of liquefied petroleum gas (LPG). The unrest spread quickly to other parts of Kazakhstan and grew increasingly violent. Authorities deployed tear gas and stun grenades against protesters and blocked internet access in an effort to quell the unrest, while demonstrators attacked government offices. There are reports of deaths among both law enforcement and protesters, as well as of widespread looting. Kazakhstani President Kassym-Jomart Tokayev declared a nationwide state of emergency on January 5, accepted the resignation of his cabinet, and reduced LPG prices, but protests continued. The Collective Security Treaty Organization (CSTO), a security alliance among select former Soviet states including Russia, is sending Russian troops at the request of President Tokayev. The impact of the COVID-19 pandemic has exacerbated already strained economic and social disparities, and demonstrators are demanding increased political liberalization and accountability for government corruption. OSCE observers concluded that the 2021 parliamentary elections “lacked genuine competition” and underscored the need for political reform.

  • Helsinki Commission Welcomes Passage of Trap Provision in 2022 National Defense Authorization Act

    WASHINGTON—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.

  • The Centrality of the Battle Against Corruption in the Democracy Summit

    Mr. CARDIN. Mr. President, I rise today--on International Anti-Corruption Day, as declared by the United Nations--to speak about the Democracy Summit that President Biden is convening today and tomorrow, to which government leaders from 110 countries have been invited. It will also include a range of leading civil society actors, business and labor leaders, civic educators and investigative journalists, philanthropists, and nonprofit leaders as speakers and participants. Undeterred by the Coronavirus pandemic, the Biden administration has organized a global virtual gathering with participants tuning in from six continents. It is an ambitious, even audacious, undertaking. And it comes at a critical time, as the world is now 15 years into a global democratic recession, according to the well-respected watchdog organization Freedom House. In its widely cited annual survey of freedom, it has reported that, in each of the past 15 years, more countries have seen their democracy scores decline than the number of countries whose scores have improved. And last year, during the height of the global pandemic, nearly 75 percent of the world's population lived in a country that saw its democracy score deteriorate last year. For a President who has pledged to put democratic values at the heart of American foreign policy, it is fitting and proper that he should convene the democratic leaders of the world and other relevant parties to plan the revitalization of global democracy. Of course, readers of the annual Freedom House assessment will know that there are not 110 well-functioning, effective democracies in the world and that way too many poorly performing nominal democracies have been invited to this gathering, thus diluting its character. While some conspicuously back-sliding countries, like Hungary and Turkey, have not been invited, there are numerous back-sliding pseudo-democracies, including the current governments of the Philippines and Pakistan, the Democratic Republic of the Congo and Zambia, Bolsinaro's Brazil among others, that unfortunately have been included. Then there is India, which dropped from Free to Partly Free status in Freedom in the World 2021, which contributes significantly to the fact that 75 percent of the world's people last year resided in countries moving away from democracy. Yet the government of Prime Minister Narendra Modi, after its sustained crack down on critics during the past 2 years and the atrocious scapegoating of Muslims, who were disproportionately blamed for the spread of the virus and faced attacks by vigilante mobs, has been invited to the Democracy Summit. Members of the Senate will also know that there has been precious little information sharing with this body about the contours of the summit. There has been no discussion with us about the invitation list or the way forward from this week's summit, which I see as a missed opportunity for the Biden administration. On the other hand, I was proud to be able to participate in a side event convened last Friday morning by the House Democracy Partnership for a discussion with legislators from other countries about the important role that parliaments can and do play in leading their governments to address the enduring and universal problem of corruption. I want to congratulate Representative David Price of North Carolina for his leadership of that important initiative and for convening a productive international exchange of views last week in the run up to the President's gathering. One of the main take-aways from that webinar was that it is always incumbent on the legislatures of the world to press forward with laws that instruct and enable executive branch officials to elevate their work to combat corruption. This is the main topic of my intervention today, to discuss one of the hopeful aspects of the President's Democracy Summit, which is the central role that the battle against corruption is playing in the proceedings and to underscore the leading role that we in the Congress must take to compel further action from our colleagues in the executive branch. History tells us that they will likely not do so on their own. In fact, the history of anti-corruption laws in the United States is replete with fervent opposition from the executive branch, whether during Democratic administrations or Republican, to virtually every measure proposed in the Congress. This was true of the Foreign Corrupt Practices Act of 1977, which barred U.S. companies and their officials from paying bribes in foreign countries. The executive and the business community declared that this would end the ability of American corporations to do business around the world, which turned out not to be true, of course. Indeed, it became in due course a foundational element in the United Nations Convention Against Corruption--UNCAC--and other elements of the international architecture of the battle against corruption. Yet the executive has continued to oppose every measure introduced in Congress to address kleptocrats and human rights abusers, including the original Sergei Magnitsky Rule of Law Accountability Act of 2012 and its successor, the Global Magnitsky Human Rights Accountability Act of 2016. This is especially ironic because, since the enactment of the 2016 law, both Republican and Democratic administrations have been utilizing the law frequently and to good effect. Indeed, today, Secretary of State Tony Blinken announced that--on the occasion of International anti-Corruption Day--the Department of State has designated 12 individuals from 7 countries for significant corruption and also named another 18 family members. In five of the designations, the Treasury Department has invoked Global Magnitsky sanctions for their roles in corruption. The Democracy Summit is being built around three principal themes: defending against authoritarianism, promoting respect for human rights, and fighting corruption. Corruption is the means and the method for kleptocratic rulers around the world to steal from their own people and to stash their wealth in safe havens, most often in the democratic Western world. This is directly and intimately connected to the undermining of the rule of law and the repression of human rights in these same countries--which is why I was so pleased to see that, on June 3 of this year, President Biden declared the fight against corruption to be “a core national security interest.” And he directed his National Security Advisor to develop a comprehensive strategy to address the problem. Accordingly, earlier this week, in the run-up to the Democracy Summit, the White House published the first “United States Strategy on Countering Corruption.” The strategy is a 38-page document that describes several major lines of effort in the new strategy. Among the document's commitments are pledges to crack down on dirty money in U.S. real estate, to require certain gatekeepers to the U.S. financial system such as attorneys, accountants, and investment advisers to perform greater due diligence on their prospective clients, and to make it a crime for foreign officials to solicit or accept bribes from U.S. companies. If this strategy is matched with appropriate resources, it has the power to fundamentally change the calculus for kleptocrats and redirect stolen funds back to the original problems they were meant to fund such as fighting the pandemic, countering the effects of climate change, funding economic development and opportunity. We in the Congress can do our part by passing pending legislation that would further strengthen the hand of the U.S. Government in this effort. While there are a number of valuable proposals pending, there are two that I suggest would be the most impactful and necessary. The first is the Combating Global Corruption Act, S. 14, which I introduced and was cosponsored by my Republican friend from Indiana, Mr. Young, which would create an annual global report, modeled in some ways on the Trafficking-in-Persons report, in which the State Department would assess how earnestly and effectively the governments of the world are living up to the commitments they have made in international treaties and covenants. The report would also place the countries of the world in 3 tiers, according to how well they are doing. And for those in the lowest performing tier, likely the governments that are actually kleptocracies, the bill asks that the executive branch assess government officials in those places for possible designation for Global Magnitsky sanctions. The second is the Global Magnitsky Human Rights Accountability Act, S. 93, which I introduced and was cosponsored by my Republican friend from Mississippi, Mr. Wicker, which would permanently reauthorize the existing Global Magnitsky framework and to widen the aperture of the law to encompass more bad actors and actions. Both these measures have been reported favorably and unanimously by the Senate Committee on Foreign Relations, and both are ready for final action by the Senate. As President Biden convenes the Democracy Summit today, with its major focus on the battle against corruption, it would be timely for the Senate to demonstrate our resolve as well. So I hope that my colleagues here in the Senate will agree in the coming days to adopt these two bills, so that we may take them to the House of Representatives, where they also enjoy bipartisan support, and get them onto the desk of President Biden during the coming year. Participating governments in the Democracy Summit, including the United States, are making commitments to strengthen their own democracies in the next 12 months, in advance of a second summit that is envisioned for next December. The American position will be enhanced if we have enacted these laws before then. Mr. President, I ask unanimous consent that selected excerpts of the “United States Strategy on Countering Corruption” be printed in the Congressional Record.

  • Uniting Against Corruption

    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 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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