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briefing
Foreign Meddling in the Western Balkans
Tuesday, January 30, 2018Malign outside influence in the Western Balkans, in particular by Russia, is of increasing concern. The lack of a strong legal framework makes countries in the region especially vulnerable to foreign capital that can be used to sow instability, undermine integration, and delay democratic development. In the past decade, Russia has exponentially increased its economic investment in Balkan countries. Without adequate governance and transparency, so-called “corrosive capital” will wield its financial power to distort policy making, lessen the European focus of the countries concerned, and potentially cause instability in the region. The Center for International Private Enterprise (CIPE) has worked with local private and civil society partners to analyze the economic governance gaps that allow “corrosive capital” to gain a foothold in Bosnia and Herzegovina, Macedonia, Montenegro, and Serbia. According to panelists, Russia’s economic footprint is most obvious in key strategic sectors, including real estate, banking, energy, and mining. Russian foreign direct investment stock is close to 30 percent of Montenegro’s GDP and it exerts both direct and indirect control of approximately 10 percent of the economy of Serbia. The dependency of Balkan countries on Russian imports and financial loans is also a prevalent form of indirect power. As a result, when Montenegro joined NATO in 2017, the Russian Foreign Minister announced that Montenegro had sacrificed its economic relations with Russia. Russia further sanctioned Montenegro by discouraging travel to the country by Russian tourists, characterizing it as a dangerous place. Although the anti-NATO campaign has not succeeded, it did indicate Russian intentions as well as local vulnerability to outside influence. The economic presence of outside actors other than Russia was also discussed. In general, the panelists emphasized the need to diversify foreign direct investment and reduce reliance on capital from non-democratic countries. Transparency in foreign investment and a depoliticization of corporate governance is also necessary. A free, independent and diverse media also will help ensure greater accountability in both the political and economic sectors. Helsinki Commission activity regarding the Western Balkans reflects ongoing concern for the countries of the region. With several Balkan states on the cusp of NATO and EU membership, it is particularly important for these countries to strive for greater democratic development and economic prosperity. The United States has played a significant role in the region, providing political, economic and military support. If not seen through to completion of NATO or EU membership as desired, these states face the continued risk of backsliding.
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press release
Helsinki Commission Briefing to Assess Foreign Economic Influence in the Western Balkans
Friday, January 19, 2018WASHINGTON—The Commission on Security and Cooperation in Europe, also known as the Helsinki Commission, today announced the following briefing: FOREIGN MEDDLING IN THE WESTERN BALKANS: GUARDING AGAINST ECONOMIC VULNERABILITIES Tuesday, January 30, 2018 10:00 AM Russell Senate Office Building Room 385 Live Webcast: www.facebook.com/HelsinkiCommission Malign outside influence in the Western Balkans, in particular by Russia, is of increasing concern. The lack of a strong legal framework makes countries in the region especially vulnerable to foreign capital that can be used to sow instability, undermine integration, and delay democratic development. The Center for International Private Enterprise (CIPE) has worked with local private and civil society partners to analyze the economic governance gaps that allow so-called “corrosive capital” to gain a foothold in Bosnia and Herzegovina, Macedonia, Montenegro, and Serbia. These partners will discuss the effect of specific gaps, as well as the need for further market-oriented reforms. Participants will also explore how the United States and Europe can help boost economic resiliency, encourage good governance, and protect democracy in the Western Balkans. Panelists scheduled to participate include: Ruslan Stefanov, Director, Bulgarian Center for Study of Democracy Milica Kovačević, President, Montenegrin Center for Democratic Transition Nemanja Todorović Štiplija, Founder and Editor in Chief, “European Western Balkans” media outlet Dimitar Bechev, Research Fellow, Center for Slavic, Eurasian, and East European Studies, University of North Carolina – Chapel Hill Andrew Wilson, Managing Director, Center for International Private Enterprise
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press release
Helsinki Commission Chair, Commissioners Call on Administration to Add Two Putin Cronies to Russia Report
Wednesday, January 17, 2018WASHINGTON—Helsinki Commission Chairman Sen. Roger Wicker (MS), Commissioner Sen. Marco Rubio (FL), Commissioner Sen. Cory Gardner (CO), and Sen. Lindsey Graham (SC) today called on the Trump Administration to continue its aggressive enforcement of Russia sanctions programs. The senators named Yuri Chaika and Alisher Usmanov – senior members of Vladimir Putin’s inner circle – as examples of what Congress will be looking for in the Administration’s upcoming report required under the “Countering America’s Adversaries Through Sanctions Act.” In their letters to Secretary of State Rex Tillerson, Treasury Secretary Steve Mnuchin, and Director of National Intelligence Dan Coats, the senators outlined suspicious activities conducted by the two Russians that also involve U.S. persons and companies – raising the possibility of violations of the “Foreign Corrupt Practices Act.” The letter reads in full: We write today regarding your Department’s work on the Countering America's Adversaries Through Sanctions Act (Public Law 115–44). We understand that you are currently working in close coordination with the Secretary of Treasury and the National Director of Intelligence to deliver a report to Congress, as required under Section 241 of this law, regarding oligarchs and parastatal entities of the Russian Federation. As you continue your work, we would like to draw your attention to individuals from President Vladimir Putin’s inner circle who have been linked by Russian and international press reports and anticorruption investigators to significant acts of corruption. Some of their dealings have involved U.S. persons and shares of U.S. companies raising the possibility of violations of the Foreign Corrupt Practices Act. One such individual is Russian Prosecutor General Yuri Chaika. According to information obtained by Novaya Gazeta and Russia’s Anticorruption Foundation, Mr. Chaika’s close relatives, as well as the relatives of other senior officials from the Prosecutor General’s Office, have been involved in business dealings with the owners of the Avilon Automotive Group. Avilon is a luxury vehicle dealer that has received at least $286 million worth of state contracts from Russian government agencies, including the Prosecutor General’s Office itself. According to documents deposited before a U.S. court, Kamo Avagumyan, co-owner of Avilon, has partnered with Mr. Chaika’s son, Artyom Chaika, in a five-star hotel in Greece. The hotel project is also co-owned by Olga Lopatina, the former wife of Russian Deputy Prosecutor General Gennady Lopatin. Ms. Lopatina has reportedly been involved in business dealings with members of the notorious Kushchevskaya crime gang that was responsible for numerous murders in southern Russia. Another person of interest is Alisher Usmanov. Mr. Usmanov is one of Russia’s most politically influential oligarchs with close ties to the Kremlin and stakes in leading media outlets. According to documents reviewed by the International Consortium of Investigative Journalists, the New York Times, and the Guardian, an offshore company controlled by Mr. Usmanov was behind a $200 million investment in Facebook. At the time, Mr. Usmanov served as Director General of Gazprom Investholding. The shares were later sold at a profit of $1 billion. As detailed in an investigation by the Anticorruption Foundation, Mr. Usmanov recently donated an estimated $85 million mansion in Moscow to a foundation with direct links to Russian Prime Minister Dmitri Medvedev. This has been widely viewed as a form of bribery. It is our sincere hope that you will continue to closely review all reports of corruption by Russian officials and oligarchies. We hope we have helped shed some light on a couple emblematic examples of the types of individuals that should be included in the administration’s upcoming report required under Section 241 of Public Law 115-44. We look forward to reviewing this report in the coming weeks.
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article
Austrian Chairmanship Achieves Consensus for Human Trafficking Prevention
Tuesday, January 02, 2018On December 8, 2017, the OSCE Ministerial Council approved two new cross-dimensional decisions to combat human trafficking. One decision was led by the United States, Italy, and Belarus and focused on preventing child trafficking and other forms of sexual exploitation of children, particularly on the internet and in sex tourism. The Ministerial Council also passed a second decision, introduced by the 2017 Austrian Chairmanship of the OSCE, titled, “Strengthening Efforts to Prevent Trafficking in Human Beings.” The decision addresses all forms of human trafficking and reflects key initiatives of the OSCE in recent years, especially those that encourage corporate responsibility for prevention of trafficking in supply chains. Examining Subcontractors Beginning with the responsibility of governments to ensure that goods and services for the government are purchased from trafficking-free sources, the decision commends “participating States that require contractors supplying goods and services to the government to take effective and appropriate steps to address the risks of human trafficking in their supply chains.” Notably, the decision goes beyond the primary contracting entity and encourages governments to examine any intended subcontractors and employees., It reflects the reality that while a prime contractor may be trafficking-free, in an effort to cut costs and increase profit margins, work may be subcontracted out to less scrupulous vendors who may not be as aware of, or as concerned with, government requirements. Addressing Vulnerability Factors The decision also addresses the precursors to human trafficking, commending participating States that prohibit contractors, subcontractors, and employees from “participating in activities known to lead to human trafficking.” Many contract and subcontract provisions that may seem neutral on first glance in reality lead in whole or in part to situations of vulnerability to human trafficking. For instance, in 2015, the United States banned the following practices in U.S. government contracts as relates to actions by the contractors, subcontractors, or employees as the actions were closely linked to human trafficking: Purchasing commercial sex. Destroying, concealing, removing, confiscating, or otherwise denying an employee access to that employee’s identity or immigration documents without the employee’s consent. Failing to abide by any contractual provision to pay return transportation costs upon the end of employment for the purpose of pressuring an employee into continued employment. Soliciting a person for the purpose of employment, or offering employment, by means of materially false or fraudulent pretenses, representations, or promises regarding that employment. Charging recruited employees unreasonable placement or recruitment fees, or any such fee that violates the laws of the country from which an employee is recruited. Providing or arrange housing that fails to meet host country housing and safety standards. Using Government Contracts as Incentives Using government contracts as an incentive for businesses to undergo the auditing and policy overhauls required for clean supply chains, the decision ultimately calls on participating States to “take into account whether businesses are taking appropriate and effective steps to address the risks of human trafficking, including with regards to their subcontractors and employees, when considering the awarding of government contracts for goods and services.” Historically, many governments have sought the least expensive contract for the most goods or services on the principle of using taxpayer funds efficiently—creating a perverse incentive for companies to turn a blind eye to human trafficking and its precursors. The decision championed by the 2017 Austrian Chairmanship encourages participating States to reverse the incentive and reward with government contracts only to those companies that have done their due diligence to ensure trafficking-free supply chains. This requirement reaches past the comparatively small number of businesses that receive government contracts and encourages all businesses competing for government contracts to clean their supply chains first. Strong implementation by OSCE participating States could set new industry standards where human trafficking and its precursors become significantly less profitable.
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publication
New OSCE Ministerial Decision Builds on OSCE PA Best Practices to Fight Child Trafficking and Other Sexual Exploitation of Children
Friday, December 22, 2017On December 8, 2017, the OSCE Ministerial Council concluded its annual meeting of the Foreign Ministers of 57 OSCE participating States by adopting a decision to protect children from traveling sex offenders, from easy access to online pornography, and from misuse of the internet for child trafficking and other forms of sexual exploitation. Modeled on Helsinki Commission Co-Chair Rep. Chris Smith’s supplementary items adopted by the OSCE Parliamentary Assembly (PA) in 2016 and 2017, the decision on “Strengthening Efforts to Combat All Forms of Child Trafficking, Including for Sexual Exploitation, as well as Other Forms of Sexual Exploitation of Children,” calls on participating States to take new, practical steps to protect children. Download the full report to learn more. Contributor: Allison Hollabaugh Parker, Counsel
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press release
Chairman Wicker Welcomes First-Ever Global Magnitsky Sanctions List
Thursday, December 21, 2017WASHINGTON—Following today’s announcement of the first 52 individuals and entities sanctioned under the “Global Magnitsky Human Rights Accountability Act,” Helsinki Commission Chairman Sen. Roger Wicker (MS) issued the following statement: “I welcome the Administration’s announcement of the first-ever sanctions list under the ‘Global Magnitsky Human Rights Accountability Act.’ This groundbreaking tool for combating human rights abuses and corruption around the world is especially relevant in parts of the OSCE region, where in many countries, corruption is met only with impunity. The United States can now hold individuals like Artem Chayka, Albert Deboutte, and Gulnara Karimova accountable for their roles in sustaining kleptocratic regimes. I am hopeful that the Administration will continue to review and build upon this new list to make it as tough and meaningful as possible.” The “Global Magnitsky Act,” which was passed in 2016, extends the authorities established by the original Magnitsky Act to include the worst human rights violators and those who commit significant acts of corruption around the globe. Both pieces of legislation have served as a model to hold individual perpetrators accountable for human rights violations and combat kleptocracy and corruption worldwide.
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hearing
The Magnitsky Act at Five
Thursday, December 14, 2017In 2009, Russian tax lawyer Sergei Magnitsky was brutally murdered in prison after uncovering the theft of $230 million by corrupt Russian officials. On December 14, 2012, the Sergei Magnitsky Rule of Law Accountability Act was signed into law in the United States, establishing punitive sanctions – including financial freezes and visa restrictions – for those complicit in Magnitsky’s murder and other human rights abuses in the Russian Federation. For the past five years, the Magnitsky Act has served as a basis for fighting corruption in Russia and the Putin regime’s systematic violations of the human rights of Russian citizens. On the fifth anniversary of the Magnitsky Act, the Helsinki Commission examined the implementation of the legislation, the resistance of the Russian government to it, and the impact of sanctions on senior members of Putin’s inner circle. The Commissioners heard testimony from William Browder, CEO of Hermitage Capital Management, Garry Kasparov, Chair of the Human Rights Foundation, and the Hon. Irwin Cotler, PC, OC, Chair of the Raoul Wallenberg Centre for Human Rights. Sen. Roger Wicker (MS), Chairman of the Helsinki Commission, began by recognizing the retirement of Amb. David Killion, Chief of Staff of the Commission since 2014, and thanking Amb. Killion for his service. Before introducing the witnesses, Sen. Wicker condemned the corruption plaguing the Russian government, and quoted the murdered Russian opposition politician Boris Nemtsov, who called the Magnitsky Act “the most pro-Russian law passed in the United States.” Rep. Chris Smith (NJ-04), Co-Chairman of the Commission, criticized the Russian government’s response to the Magnitsky Act. He described the harm done to vulnerable Russian orphans by their government’s decision to ban American parents from adopting children from Russia. Mr. Smith also noted that he and many other Americans involved in the passage of the Magnitsky Act have since been denied visas to enter Russia. This response, he said, shows that the Magnitsky Act “struck right to the heart of the Kremlin’s elite.” Sen. Ben Cardin (MD), the Helsinki Commission’s ranking senator, praised the witnesses for their commitment to promoting human rights in Russia, and thanked the members of the Helsinki Commission and other members of Congress who played a role in the passage of the Magnitsky Act. Mr. Cardin also recognized the passage of Magnitsky legislation in Canada, Estonia, Lithuania, and the United Kingdom, and recalled the power of American leadership on human rights, noting that, “when we lead, we find that other countries follow.” William Browder, the first witness to testify, recalled the historic nature of the Magnitsky Act. “On the day it passed, I could never have predicted how far the Magnitsky Act would spread around the world,” he said. “Without exaggeration, it has become the most important piece of human rights legislation passed in this century.” He also called attention to the future of the Magnitsky movement, noting that the parliaments of Ukraine, South Africa, and Gibraltar are considering introducing similar legislation. In closing, Mr. Browder presented several suggestions to the Commission, including adding additional names to the list of sanctioned individuals, and encouraging other G7 countries to adopt Magnitsky legislation. Garry Kasparov reiterated that the targeted sanctions imposed by the Magnitsky Act only apply to corrupt officials, and not the Russian people. “Russian national interest and Putin’s interests are diametrically opposed in nearly every way,” he said. “This is why legislation that targets Putin and his mafia is pro-Russian, not anti-Russia.” Mr. Kasparov observed that the Kremlin’s reaction proved the worth of the Magnitsky Act, and that, “it is essential to increase the pressure, to continue with what works now that the right path has been confirmed.” At the conclusion of his testimony, Kasparov observed that “Putin and his gang . . . aren’t jihadists or ideologues, they are billionaires. . . . Follow the money, the real estate, the stock and reveal it, freeze it, so that one day it can be returned to the Russian people from whom it was looted.” More succinctly in a follow-up question, he quipped, “Banks, not tanks.” Irwin Cotler gave an overview of the passage of the Canadian Magnitsky Act, and described the goals of the global Magnitsky movement. The aim of Magnitsky legislation is “to combat the persistent and pervasive culture of corruption, criminality, and impunity and the externalized aggression abroad, of which Putin’s Russia is a case study” and “to deter thereby other prospective violators,” he said. Passing such legislation also “tells human rights defenders, the Magnitskys of today, that they are not alone, that we stand in solidarity with them, that we will not relent in our pursuit of justice for them, and that we will undertake our international responsibilities in the pursuit of justice.”
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press release
OSCE Adopts Child Trafficking Ministerial Decision Modeled on Initiative of Co-Chairman Smith
Wednesday, December 13, 2017WASHINGTON—On December 8, the OSCE concluded its annual meeting of the Foreign Ministers of 57 OSCE participating States by adopting a ministerial decision on combatting child trafficking—modeled on OSCE Parliamentary Assembly (PA) resolutions adopted in 2016 and 2017, authored by Helsinki Commission Co-Chairman Rep. Chris Smith (NJ-04). Rep. Smith is the Special Representative on Human Trafficking Issues in the OSCE PA. Entitled “Strengthening Efforts to Combat All Forms of Child Trafficking, Including for Sexual Exploitation, as well as Other Forms of Sexual Exploitation of Children,” the decision provides practical steps for participating States to protect children from traveling sex offenders, and from misuse of the internet for child trafficking and other sexual exploitation. “Traveling sex offenders rely on secrecy and anonymity to commit crimes against children; the new decision will deter the sexual exploitation of children at home and abroad, and aid in the prosecution of child sex traffickers,” said Smith. The decision calls on each of the OSCE participating States to keep a register of individuals who have committed sex offenses against a child, and to share that information with the law enforcement in destination countries—which would give the United States warning of foreign sex offenders entering U.S. borders. The decision also calls on OSCE participating States to enact extra-territorial jurisdiction in order to “prosecute their citizens for serious sexual crimes against children, even if these crimes are committed in another country.” “Some believe the laws of a destination country allow sexual exploitation of a child, or rely on the fact that the judicial system in the destination country is weak,” Smith continued. “The Ministerial decision underscores the universal human rights of the child to be protected from sexual exploitation and calls for participating States to put all abusers on notice—they will be prosecuted when they return home.” In addition, the Ministerial decision echoes the Parliamentary Assembly resolutions by calling for accountability of those who misuse the Internet to knowingly or recklessly facilitate access to children for sexual exploitation or child trafficking—such as by advertising children on websites—highlighting that such individuals should be prosecuted as traffickers. “With this binding decision, the foreign ministries of the 57 OSCE participating States stand united with the OSCE Parliamentary Assembly to protect children from trafficking and other sexual exploitation across the OSCE region,” said Smith. Smith first raised the issue of human trafficking at the 1999 OSCE PA Annual Session in St. Petersburg, the first time it appeared on the OSCE agenda. Since then, he has introduced or cosponsored a supplementary item and/or amendments on trafficking at each annual session of the OSCE PA, including on issues such as sex tourism prevention, training of the transportation sector in victim identification and reporting, corporate responsibility for trafficking in supply chains, and special protections for vulnerable populations. In addition to authoring the 2016 International Megan’s Law to Prevent Child Exploitation and Other Sexual Crimes through Advanced Notification of Traveling Sex Offenders, he authored the landmark U.S. Trafficking Victims Protection Act of 2000 and its 2003 and 2005 reauthorizations. Chairman Smith co-chairs the United States Congressional Human Trafficking Caucus.
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briefing
Combating Kleptocracy with the Global Magnitsky Act
Wednesday, December 13, 2017In 2016, Congress passed the Global Magnitsky Act, which seeks to prohibit the worst foreign human rights offenders and most corrupt officials operating anywhere in the world from entering into the United States and to block their U.S. assets. This law requires that each year on December 10 (Human Rights Day), or the first day Congress is in session thereafter, the President submit a report to Congress that includes a list of each foreign person sanctioned under the law during the preceding year. The anti-corruption provisions are of particular interest given how wide-ranging and unprecedented they are as a tool to combat kleptocracy. While combating corruption has traditionally focused on internal reforms and best practices, the Global Magnitsky Act enables the United States to target those individuals who steal from their populations and abuse the global financial system as well as those who facilitate their grand corruption. This briefing provided an overview of the scourge of corruption in the OSCE region and how the Global Magnitsky Act can be employed to combat it. It included a discussion of the types of individuals and groups that should come under consideration for placement on the sanctions list and the ramifications of any such placement.
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briefing
The International Tribunal and Beyond: Pursuing Justice for Atrocities in the Western Balkans
Tuesday, December 12, 2017Between 1991 and 2001 the Socialist Federal Republic of Yugoslavia, made up of six republics, was broken apart by a series of brutal armed conflicts. The conflicts were characterized by widespread and flagrant violations of international humanitarian law, among them mass killings of civilians, the massive, organized and systematic detention and rape of women, torture, and practices of ethnic cleansing, including forced displacement. In 1992 the U.N. established a Commission of Experts that documented the horrific crimes on the ground and led to the 1993 creation of the International Criminal Tribunal for the former Yugoslavia (ICTY). This month, after more than two decades of persistent, ground-breaking efforts to prosecute the individuals responsible for war crimes, crimes against humanity, and genocide in the former Yugoslavia, the ICTY is concluding its work. As it prepares to close its doors, this briefing will assess the tribunal’s achievements and limitations, and most importantly, what still needs to be done by the countries of the region to seek justice in outstanding cases, bring greater closure to victims, and foster greater reconciliation among peoples. Panelists discussed these questions and suggested ways that the United States, Europe, and the international community as a whole can encourage the further pursuit of justice in the Western Balkans.
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article
The Legacy of Sergei Magnitsky
Sunday, December 10, 2017By Woody Atwood, Intern In 2008, a Russian tax lawyer named Sergei Magnitsky representing Hermitage Capital Management in a dispute over alleged tax evasion discovered a $230 million fraud being committed by Russian law enforcement officers assigned to the case. Magnitsky reported the fraud to the authorities and was arrested soon after by the same officers he had accused. For almost a year, Magnitsky was held in squalid prison conditions, denied visits from his family, and beaten by guards. Despite developing serious cases of gallstones, pancreatitis, and cholecystitis, he was denied medical attention. On November 16, 2009, Sergei Magnitsky was beaten to death in his cell. He had been imprisoned for 358 days, just seven days short of the maximum legal pre-trial detention period in Russia. A year later, Sen. Ben Cardin (MD), then Chairman of the Helsinki Commission, introduced the Justice for Sergei Magnitsky Act, directing the U.S. Secretary of State to publish a list of individuals involved in Sergei’s detention and death, and enabling the government to deny these individuals entry to the United States and freeze their American assets. The bill was reintroduced in the next Congress as the Sergei Magnitsky Rule of Law Accountability Act. This version covered all individual who commit extrajudicial killings, torture or otherwise egregiously violate the human rights of activists or whistleblowers in Russia. Both houses of Congress passed the new bill in late 2012 as part of the Russia and Moldova Jackson-Vanik Repeal and Sergei Magnitsky Rule of Law Accountability Act. On December 14, 2012, President Obama signed the Magnitsky Act into law, establishing severe consequences for the worst human rights violators in Russia. Just weeks after the passage of the Magnitsky Act, the Russian parliament and government responded by passing a law banning American families from adopting children from Russia. The law immediately terminated adoptions that were being processed, and many children, including children with serious disabilities, who were due to leave Russia were never able to join their American families. In 2013, the Russian government also issued a list of 18 American officials banned from entering Russia. In 2015, Sen. Cardin and Rep. Chris Smith (NJ-04), who was then chairing the Helsinki Commission, introduced the Global Magnitsky Human Rights Accountability Act to expand the authorities established by the original Magnitsky Act to include the worst human rights violators and those who commit significant acts of corruption around the world. The legislation required the President to annually issue a list of individuals sanctioned under it on Human Rights Day (December 10) or the soonest day thereafter when the full Congress is in session. The global version was passed in December 2016 as part of the National Defense Authorization Act for Fiscal Year 2017. The story of Sergei Magnitsky and the actions of the U.S. Congress have sparked a global movement to hold individual perpetrators accountable for their human rights violations and corruption. In the last year, Estonia, Canada, the United Kingdom, and Lithuania have all passed their own Magnitsky laws. In honor of Human Rights Day and the fifth anniversary of the Magnitsky Act, and to correspond to the deadline for the annual Global Magnitsky List, the U.S. Helsinki Commission is holding two events related to the legacy of Sergei Magnitsky. On Wednesday, December 13, at 3:00PM Commission staff will lead a public briefing on “Combating Kleptocracy with the Global Magnitsky Act,” and on Thursday, December 14, Commissioners will hear testimony on “The Magnitsky Act at Five: Assessing Accomplishments and Challenges.”
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article
International Anti-Corruption Day 2017: Curtailing Kleptocracy
Saturday, December 09, 2017By Paul Massaro, Policy Advisor and John Engelken, Intern On Saturday, December 9, the Helsinki Commission joins the United Nations and many others in recognizing International Anti-Corruption Day, which is of particular importance today given the ease with which illicit financial flows traverse national borders. International Anti-Corruption Day was established as part of the UN’s passage of the United Nations Convention against Corruption, which was adopted on October 31, 2003. This legally binding international agreement focuses on five key areas of anti-corruption policy: preventive measures, criminalization and law enforcement, international cooperation, asset recovery, and technical assistance and information exchange. Given corruption’s global nature, disproportionate victimization of economically vulnerable communities, and corrosion of democracy, human rights, and the rule of law, participating in anti-corruption efforts worldwide is a central responsibility of the Organization on Security and Cooperation in Europe (OSCE) and the U.S. Helsinki Commission. No form of corruption is so insidious as kleptocracy, or “rule by thieves.” Kleptocrats abuse the global financial system, moving massive wealth from their home countries to nations where the rule of law is more established; they then use these ill-gotten funds to finance crime and terrorism, fund extravagant lifestyles, and corrode political institutions from the inside out. The frequency with which kleptocratic regimes engage in corrupt activity and money-laundering to maintain political power and accumulate material wealth emphasizes the need for governments and international bodies to coordinate more closely and step up their work to root out corruption. It also emphasizes the need for countries where the rule of law is respected to adopt reforms that make it more difficult for kleptocrats to abuse their legal and financial frameworks. Encompassing a region that contains both corrupt kleptocracies that steal state and business assets and rule-of-law democracies in which those stolen assets are hidden, the OSCE is uniquely situated to confront the problem of corruption, and has taken on a number of commitments to do just that. In particular, the 2012 Dublin Declaration and the 2014 Basel Decision contain language calling for domestic reforms consistent with the rule of law and political transparency initiatives, in tandem with more concerted anti-corruption efforts. In addition, these texts contain commitments to combat the transnational money-laundering that makes grand corruption possible and encourage private firms to play a greater role in identifying and countering corruption. The U.S. Helsinki Commission regularly highlights the problem of corruption through public events, publications, and statements. In 2017 alone, the Commission has held four briefings on the issue – Countering Corruption in the OSCE Region: Returning Ill-Gotten Assets and Closing Safe Havens; Energy (In)Security in Russia’s Periphery; Kleptocrats of the Kremlin: Ties Between Business and Power in Russia; and Ukraine’s Fight against Corruption – as well as two Congressional hearings, The Romanian Anti-Corruption Process: Successes and Excesses and Combating Kleptocracy With Incorporation Transparency. In addition, the Commission has published two short thematic articles, Russia’s Weaponization of Corruption (And Western Complicity) and Beyond Pipelines: Breaking Russia’s Grip on Post-Soviet Energy Security, as well as a brief overview of corruption in Russia and an in-depth report on Ukraine’s fight against corruption. Finally, the Commission’s Chairman, Senator Roger Wicker, recently made a statement regarding Ukraine’s fight against corruption. On International Anti-Corruption Day, the Helsinki Commission remains committed to doing its part in the fight against corruption and applauds the efforts of other national, international, and non-governmental organizations doing the same.
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press release
Helsinki Commission to Assess Magnitsky Act at Five
Thursday, December 07, 2017WASHINGTON—The Commission on Security and Cooperation in Europe, also known as the Helsinki Commission, today announced the following hearing: THE MAGNITSKY ACT AT FIVE: ASSESSING ACCOMPLISHMENTS AND CHALLENGES Thursday, December 14, 2017 9:30 AM Dirksen Senate Office Building Room 562 Live Webcast: http://www.senate.gov/isvp/?type=live&comm=csce&filename=csce121417 In 2009, Russian tax lawyer Sergei Magnitsky was brutally murdered in prison after uncovering the theft of $230 million by corrupt Russian officials. On December 14, 2012, the Sergei Magnitsky Rule of Law Accountability Act was signed into law in the United States, establishing punitive sanctions – including financial freezes and visa restrictions – for those complicit in Magnitsky’s murder and other human rights abuses in the Russian Federation. For the past five years, the Magnitsky Act has served as a basis for fighting corruption in Russia and the Putin regime’s systematic violations of the human rights of Russian citizens. On the fifth anniversary of the Magnitsky Act, the Helsinki Commission will examine the implementation of the legislation, the resistance of the Russian government to it, and the impact of sanctions on senior members of Putin’s inner circle. The following witnesses are scheduled to testify: William Browder, CEO of Hermitage Capital Management and author of Red Notice. Browder has led the fight to seek justice for Sergei Magnitsky and his family in both the U.S. and abroad. He will outline Russian opposition to his anti-corruption efforts and his work to help pass similar legislation around the world. The Hon. Irwin Cotler, PC, OC, Chair of the Raoul Wallenberg Center for Human Rights; Former Canadian Member of Parliament, Attorney General of Canada, and Minster of Justice. Cotler will provide details about Canada’s recent passage of its Magnitsky Act, its importance to Canada, and Russian resistance to the legislation. Garry Kasparov, Chairman of the Human Rights Foundation and author of Winter Is Coming: Why Putin and the Enemies of the Free World Must Be Stopped. Kasparov will explain the threat Putin’s regime poses toward the United States and analyze the Magnitsky Act’s efficacy.
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press release
Helsinki Commission, Tom Lantos Human Rights Commission Announce Briefing on Justice in Western Balkans and Closing of International Tribunal
Thursday, December 07, 2017WASHINGTON—The Commission on Security and Cooperation in Europe, also known as the Helsinki Commission, and the Tom Lantos Human Rights Commission (TLHRC) today announced the following briefing: THE INTERNATIONAL TRIBUNAL AND BEYOND: PURSUING JUSTICE FOR ATROCITIES IN THE WESTERN BALKANS Tuesday, December 12, 2017 10:00 AM - 11:30 PM Rayburn House Office Building Room 2255 Live Webcast: www.facebook.com/HelsinkiCommission Between 1991 and 2001 the Socialist Federal Republic of Yugoslavia, made up of six republics, was broken apart by a series of brutal armed conflicts. The conflicts were characterized by widespread and flagrant violations of international humanitarian law, among them mass killings of civilians, the massive, organized and systematic detention and rape of women, torture, and practices of ethnic cleansing, including forced displacement. In 1992 the U.N. established a Commission of Experts that documented the horrific crimes on the ground and led to the 1993 creation of the International Criminal Tribunal for the former Yugoslavia (ICTY). This month, after more than two decades of persistent, ground-breaking efforts to prosecute the individuals responsible for war crimes, crimes against humanity, and genocide in the former Yugoslavia, the ICTY is concluding its work. As it prepares to close its doors, this briefing will assess the tribunal’s achievements and limitations, and most importantly, what still needs to be done by the countries of the region to seek justice in outstanding cases, bring greater closure to victims, and foster greater reconciliation among peoples. Panelists will discuss these questions and suggest ways that the United States, Europe, and the international community as a whole can encourage the further pursuit of justice in the Western Balkans. Panelists: Serge Brammertz, Chief Prosecutor, International Criminal Tribunal for the former Yugoslavia Nemanja Stjepanovic, Member of the Executive Board, Humanitarian Law Center (from Belgrade, Serbia, live via video) Diane Orentlicher, Professor of Law, Washington College of Law, American University Additional panelists may be added.
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press release
Helsinki Commission Briefing to Examine Anti-Corruption Provisions of Global Magnitsky Act
Wednesday, December 06, 2017WASHINGTON—The Commission on Security and Cooperation in Europe, also known as the Helsinki Commission, today announced the following briefing: COMBATING KLEPTOCRACY WITH THE GLOBAL MAGNITSKY ACT Wednesday, December 13, 2017 3:00PM Russell Senate Office Building Room 385 Live Webcast: www.facebook.com/HelsinkiCommission In 2016, Congress passed the Global Magnitsky Act, which seeks to prohibit the worst foreign human rights offenders and most corrupt officials operating anywhere in the world from entering into the United States and to block their U.S. assets. This law requires that each year on December 10 (Human Rights Day), or the first day Congress is in session thereafter, the President submit a report to Congress that includes a list of each foreign person sanctioned under the law during the preceding year. The anti-corruption provisions are of particular interest given how wide-ranging and unprecedented they are as a tool to combat kleptocracy. While combating corruption has traditionally focused on internal reforms and best practices, the Global Magnitsky Act enables the United States to target those individuals who steal from their populations and abuse the global financial system as well as those who facilitate their grand corruption. This briefing seeks to provide an overview of the scourge of corruption in the OSCE region and how the Global Magnitsky Act can be employed to combat it. It will include a discussion of the types of individuals and groups that should come under consideration for placement on the sanctions list and the ramifications of any such placement. The following panelists will offer brief remarks, followed by questions: Alex Johnson, Senior Policy Advisor for Europe and Eurasia, Open Society Policy Center Charles Davidson, Executive Director, Kleptocracy Initiative, Hudson Institute Rob Berschinski, Senior Vice President, Human Rights First
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briefing
Ukraine's Fight Against Corruption
Wednesday, November 29, 2017Today, Ukraine has an historic opportunity to overcome its long struggle with pervasive corruption. Never before in its past has the country experienced such meaningful reforms, with the most significant being the establishment of a robust and independent anticorruption architecture. However, much remains to be done. An anticorruption court is urgently needed, as is an end to the escalating harassment of civil society. This briefing of the U.S. Helsinki Commission introduced the Commission’s recently published report, “The Internal Enemy: A Helsinki Commission Staff Report on Corruption in Ukraine.” Briefers discussed the conclusions of this report as well as the fight against corruption in Ukraine more broadly.
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press release
Helsinki Commission Briefing to Launch Staff Report on Corruption in Ukraine
Tuesday, November 21, 2017WASHINGTON—The Commission on Security and Cooperation in Europe, also known as the Helsinki Commission, today announced the following briefing: UKRAINE’S FIGHT AGAINST CORRUPTION Wednesday, November 29, 2017 1:00PM Dirksen Senate Office Building Room 562 Live Webcast: www.facebook.com/HelsinkiCommission Today, Ukraine has an historic opportunity to overcome its long struggle with pervasive corruption. Never before in its past has the country experienced such meaningful reforms, with the most significant being the establishment of a robust and independent anticorruption architecture. However, much remains to be done. An anticorruption court is urgently needed, as is an end to the escalating harassment of civil society. This briefing of the U.S. Helsinki Commission will introduce the Commission’s recently published report, “The Internal Enemy: A Helsinki Commission Staff Report on Corruption in Ukraine.” Briefers will discuss the conclusions of this report as well as the fight against corruption in Ukraine more broadly. Copies of the report will be available for distribution. The following panelists will offer brief remarks, followed by questions: Oksana Shulyar, Deputy Chief of Mission, Embassy of Ukraine in the United States Orest Deychakiwsky, Former U.S. Helsinki Commission Policy Advisor for Ukraine Anders Aslund, Senior Fellow, Atlantic Council Brian Dooley, Senior Advisor, Human Rights First
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publication
Corruption in Russia: An Overview
Monday, October 23, 2017Endemic corruption is a defining characteristic of the Putin regime. While the president is the prime beneficiary, cronies maintain this system of corruption. These loyal supporters are necessary for Putin to ensure the status quo and they often pursue the government’s illicit interests, which it cannot fulfill itself. This publication presents a succinct overview of the systemic corruption present in Russia. Unlike corrupt systems where oligarchs rule and compete with one another over power and wealth, Russia has developed a top-down structure of corruption, where the political and business success of elites is dependent almost entirely upon their relationship to the President. Although these elites continue to be called “oligarchs,” it is no longer appropriate to think of them as such. Rather, they ought to be thought of as “cronies.” Download the full report to learn more. Contributors: Paul Massaro, Policy Advisor, Michael Newton, Intern, and Amelia Rausing, Intern
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article
ODIHR Hosts Human Dimension Seminar on Children in Situations of Risk
Wednesday, October 18, 2017By Allison Hollabaugh, Counsel As part of its broad mandate to combat trafficking in human beings, the OSCE Office on Democratic Institutions and Human Rights (ODIHR) brought together 100 representatives of participating States, international organizations, and civil society to discuss “Rights of the Child: Children in Situations of Risk” at the annual OSCE Human Dimension Seminar in Warsaw, Poland, on October 11-12, 2017. Opened by Ambassador Christian Strohal, Special Representative for the OSCE 2017 Austrian Chairmanship; Jacek Czaputowicz, Undersecretary of State, Ministry of Foreign Affairs, Poland; and Ingibjörg Sólrún Gísladóttir, Director of ODIHR/OSCE, the seminar examined threats to children from incarceration and from human trafficking, as well as solutions. Deprivation of Liberty Speakers addressed common myths surrounding the incarceration or detention of children using the totality of research on actual impact, and suggested means of mitigating harm. Panelists agreed that detention should be the option of last resort and be for the least amount of time possible in order to avoid the well-documented negative effects on children. Drawing on research, Ms. Michaela Bauer, the UNICEF Regional Partnership Manager, highlighted that detention does not in fact benefit the child but causes educational deficits, low social skills, and disrupted family ties—setting the child up for future failures and insecurity. Ms. Bauer explained that deprivation of liberty is too often based on incorrect determinations that a child is a threat to themselves or to society. She cautioned that detention is often 80 percent more expensive than alternate means, such as custodial family care. She also addressed the myth that detention keeps the child from absconding, explaining that it is the fear of detention that makes children abscond. Mr. Azamat Shambilov, Regional Director of Penal Reform International’s office in Central Asia, underscored that detention creates isolation, marginalization, and life-long stigmatization of children. For instance, an educational diploma from a prison will haunt the child for life. In addition, a child isolated in an institution from the love and support of family may suffer feelings of rejection. Such children emerge from detention and seek out other children who have similarly suffered, and thus often find themselves in trouble again. Mr. Shambilov suggested seeing the children as victims in need of care rather than criminals to be punished as, very often, the children who commit crimes have themselves been victims of crime. Ms. Roza Akylbekova, Deputy Director, Kazakhstan International Bureau of Human Rights and Rule of Law, highlighted the importance of keeping the child connected to family. If a child must be institutionalized, it is critical to ensure that the institution is close to family who can visit the child. A better alternative would be non-custodial sentences for crimes committed by children—in which case the child would live at home with his or her family for the duration of the sentence. Human Trafficking of Children At the conference, Commission on Security and Cooperation in Europe staff, accompanied by Italian trafficking survivor and activist Cheyenne de Vecchis and Dr. Maia Rusakova, Co-founder and Director of the Regional Non-Governmental Organization of Social Projects in the Sphere of Populations’ Well-being in Russia, presented practical steps to limit the risks of internet misuse for the trafficking of children. Citing a growing body of research in the OSCE region on the links between children’s unrestricted access to pornography on the Internet and experience or perpetration of sexual exploitation, Commission staff encouraged participating States to consider working with the private sector to institute age verification technology for all access to online pornography, such as the system currently being implemented in the UK. Turning to the issue of children advertised online for sexual exploitation, Commission staff shared new technology developed by the U.S. non-governmental organization, THORN. This technology saves law enforcement thousands of hours by intelligently filtering the thousands of new photos, phone numbers, emojis, gibberish, and acronyms on adult-services classified-ad websites each day—collating for law enforcement attention the advertisements that have indicators of human trafficking. The Spotlight tool connects overlapping information for law enforcement, showing officers other cities in which a victim has been previously advertised and other information that can help officers investigate. The Spotlight tool also provides a way for law enforcement in other jurisdictions to mark whether they are working on the leads, and who to contact for collaboration—innovations saving thousands of hours of work, dead ends, and duplicated efforts. In just the last three years, more than 6,300 trafficking victims have been identified in the United States with the Spotlight tool—nearly 2,000 of whom were children. More than 2,000 traffickers were also identified. While primarily developed in and for North America, the Spotlight tool could be easily adapted for other OSCE participating States. ODIHR’s Anti-Trafficking Mandate ODIHR enjoys a robust mandate embodied in multiple ministerial decisions and the 2003 OSCE Action Plan to Combat Trafficking in Human Beings (as well as its Addendum in 2013) to combat human trafficking in the OSCE region, and has a full-time staff person specifically to carry out ODIHR’s anti-trafficking mandate. For instance, ODIHR is tasked by the 2003 Action Plan with promoting the cooperation of law enforcement and civil society to combat human trafficking. The 2003 Action Plan also calls on ODIHR to work with the OSCE Strategic Police Matters Unit (SPMU) on anti-trafficking training materials for law enforcement. In addition, ODIHR has a mandate to offer legislative input to participating States, including on the development of National Anti-Trafficking Plans of Action. While the 2014 regular budget shortfalls saw the loss of three members of ODIHR’s anti-trafficking staff, one full-time position was restored in 2015. ODIHR is now fully re-engaged on executing its mandate in the region, in coordination with the OSCE Special Representative and Coordinator for Combatting Trafficking in Human Beings. ODIHR is currently updating the National Referral Mechanism Handbook, which it originally created in 2004 to guide participating States on the development of coordination frameworks for state agencies and best practices to, along with civil society partners, ensure proper care of trafficking victims. In 2017, ODIHR staff members have visited Croatia, Georgia, the UK, and Poland to identify gaps and best practices for national referral mechanisms. In addition, ODIHR is working in Central Asia and Mongolia to increase identification of trafficking victims and streamline aid to victims, as well as to strengthen coordination between state actors and civil society. Finally, ODIHR is working with the Strategic Policy Matters Unit in the Mediterranean region to offer participating States technical assistance for combatting human trafficking in mixed migration flows.
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article
Helsinki Commission Policy Advisor Discusses Kleptocracy at Hudson Institute Event
Tuesday, October 17, 2017On October 11, 2017, U.S. Helsinki Commission anti-corruption policy advisor Paul Massaro joined experts including Ilya Zaslavskiy of the Free Russia Foundation; Jeffrey Gedmin of Georgetown University’s School of Foreign Service; David Kramer of Florida International University’s Green School for International and Public Affairs; Louise Shelley of the Terrorism, Transnational Crime and Corruption Center at George Mason University; Sarah Chayes of the Carnegie Endowment of International Peace; and Ambassador Richard D. Kauzlarich of the Center for Energy Science and Policy to discuss the threat that kleptocratic regimes pose to the United States and its allies. The public seminar was hosted by the Hudson Institute and was moderated by Charles Davidson, the Executive Director of the Institute’s Kleptocracy Initiative. A recent report by Zaslavskiy, “How Non-State Actors Export Kleptocratic Norms to the West,” was the focal point of the event, which was designed to explore the nature and mechanisms of kleptocracy and strategies Washington can employ to combat it. During the discussion, the panelists stressed the threat kleptocracy poses to global democracy; described the extent to which it is entrenched in authoritarian societies; and explained how the silence of our institutions enables this system to perpetuate itself. Though kleptocrats benefit from criminal activity, their exploitation of legitimate financial and legal institutions insulates them. Furthermore, the panel noted the dual nature of the environment in which corruption thrives; it not only finds fertile ground in states with a legacy of autocracy, but also in cultures of acquiescence and complicity. Discrediting such public indifference is among the most severe challenges Western institutions face, but it is one that must be addressed in order to successfully combat kleptocracy. In his remarks, Massaro outlined the avaricious and cruel nature of kleptocracy and the grave threat it poses to democracy and the rule of law. He characterized the fight against kleptocracy as an ideological struggle between corruption and the rule of law, and strongly reaffirmed the Helsinki Commission’s resolve to counter global corruption in all its forms. As Massaro explained, “On the Hill, we [the Helsinki Commission] have become the primary forum for discussion of the topic and we will continue to work to expose the severity of kleptocratic practices.” He commended his fellow panelists on their committed work to combat corruption and challenge kleptocratic norms and reaffirmed the Commission’s aim to work collaboratively with other organizations to recognize and meet this challenge.
Friday, November 19, 1999