Title

Helsinki Commission to Hold Briefing on UK Anti-Corruption Policies

Wednesday, May 22, 2019

WASHINGTON—The Commission on Security and Cooperation in Europe, also known as the Helsinki Commission, today announced the following briefing:

CURBING CORRUPTION THROUGH CORPORATE TRANSPARENCY AND COLLABORATION
The British Model

Wednesday, May 29, 2019
9:00 a.m.
Rayburn House Office Building
Room 2128

Live Webcast: www.facebook.com/HelsinkiCommission

The United Kingdom has implemented some of the world’s most innovative anti-corruption policies. In particular, its public beneficial ownership registry is the only active one of its kind and its Joint Money Laundering Intelligence Taskforce models effective collaboration between law enforcement and the private sector.

This briefing will examine these policies and the United Kingdom’s broader strategy to counter illicit finance. Panelists will discuss how the United Kingdom implements its policies, their successes and shortcomings, and what remains to be done. Though U.S. corporate transparency proposals take a non-public approach, panelists will also discuss the lessons that the United States can draw from the British experience.

Opening remarks will be provided by John Penrose, M.P., the U.K. Prime Minister’s Anti-Corruption Champion.

The following panelists also are scheduled to participate:

  • Mark Hays, Anti-Money Laundering Campaign Leader, Global Witness
  • Edward Kitt, Serious and Organized Crime Network Illicit Finance Policy Lead, British Embassy Washington
  • Nate Sibley, Research Fellow, Kleptocracy Initiative, Hudson Institute
Media contact: 
Name: 
Stacy Hope
Email: 
csce[dot]press[at]mail[dot]house[dot]gov
Phone: 
202.225.1901
Relevant countries: 
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  • Helsinki Commission Leaders Mark 10th Anniversary of Death of Sergei Magnitsky

    WASHINGTON—Ahead of the ten-year anniversary of Sergei Magnitsky’s death on November 16, Helsinki Commission leaders issued the following statements: “Sergei Magnitsky was a fearless truth-teller who wanted to make his country a better place,” said Chairman Rep. Alcee L. Hastings (FL-20). “Unfortunately, his brave actions were rewarded not with accolades from the Russian Government, but with vicious abuse and death in a cold jail cell. Not much has changed in today’s Russia. We must honor his legacy by continuing to stand up for those who are voiceless and defend human rights at home and abroad.” “The recent ruling against Russia in the European Court of Human Rights is an important vindication for the Magnitsky family, but real justice remains elusive,” said Co-Chairman Sen. Roger Wicker (MS). “Russian authorities still have made no effort to punish those involved in Sergei Magnitsky’s detention and abuse. America has not forgotten Sergei Magnitsky—his legacy continues to inspire people around the world to hold fast to the truth in the face of intimidation and violence by authoritarian regimes.” “Vladimir Putin’s Russia is a perilous place for those who dare to challenge the authorities. No one knew that truth more than Sergei Magnitsky,” said Ranking Member Rep. Joe Wilson (SC-02).  “Ten years on, his death reminds us that defending human rights is vital to promoting democracy. I honor Sergei Magnitsky’s memory and hopefully await the dawning of a new age in Russia in which Sergei will be acknowledged as a hero instead of vilified and falsely accused.” “Sergei Magnitsky’s faithfulness to the truth cost him his life. His legacy spurred a quest for justice in Russia and around the world,” said Ranking Member Sen. Ben Cardin (MD). “The Sergei Magnitsky and Global Magnitsky Acts make clear to all that the United States stands with those whose rights and basic freedoms are repressed. It should never be U.S. policy to normalize the behavior of human rights abusers and despots. Human rights cannot and should not be open to compromise; it must be a cornerstone of our foreign policy agenda. A decade after his death, we both mourn Sergei Magnitsky and remember his courage. Through his actions, he taught us that we are all capable of rising to the challenge and standing up for justice.” In 2008, Sergei Magnitsky, who advised Hermitage Capital Management in a dispute over alleged tax evasion in Russia, 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.

  • HELSINKI COMMISSION TO REVIEW NEW WAYS TO FIGHT FOREIGN BRIBERY

    THIS HEARING HAS BEEN POSTPONED. RESCHEDULING INFORMATION WILL BE AVAILABLE SHORTLY. WASHINGTON—The Commission on Security and Cooperation in Europe, also known as the Helsinki Commission, today announced the following hearing: ANTI-CORRUPTION INITIATIVES TO FIGHT EMERGING METHODS OF FOREIGN BRIBERY  Thursday, October 24, 2019 10:00 a.m. Rayburn House Office Building Room 2128  Live Webcast: www.youtube.com/HelsinkiCommission   The methods of foreign corrupt actors in the global economy have changed dramatically since America assumed the mantle of international anti-corruption champion with the passage of the Foreign Corrupt Practices Act (FCPA) in 1977. The integration of formerly closed states into the global economy and the development of transformative technologies have led to unprecedented wealth, but also unprecedented corruption. This globalized variant of corruption hollows out rule-of-law institutions and threatens to dismantle the liberal world order that underpins U.S. national security and prosperity. This hearing will examine new anti-corruption trends and initiatives to determine how the United States can most effectively engage the evolving threat of foreign bribery. Currently, while the United States still leads the world in investigating and prosecuting this crime, the foreign corrupt officials who demand bribes are not liable under U.S. law. The Foreign Extortion Prevention Act (FEPA), developed with the support of the Helsinki Commission, seeks to close this loophole. The hearing also will examine dual-use technologies such as blockchain, which have the potential to help fight foreign bribery, but also to facilitate it. The following witnesses are scheduled to testify: Patrick Moulette, Head of the Anti-Corruption Division, OECD Directorate for Financial and Enterprise Affairs Casey Michel, Journalist David Lawrence, Founder and Chief Collaborative Officer, RANE Eric Lorber, Senior Director, Center on Economic and Financial Power, Foundation for Defense of Democracies Additional witnesses may be added.

  • INTRODUCTION OF THE TRANSNATIONAL REPRESSION ACCOUNTABILITY AND PREVENTION ACT OF 2019 (TRAP ACT)

    Mr. HASTINGS. Madam Speaker, as Chairman of the U.S. Helsinki Commission—a congressional watchdog for human rights and democracy in Europe and Eurasia—I am frequently reminded of the new opportunities that technology and globalization present for human rights defenders around the globe. For those struggling to defend their liberty and human dignity, our interconnected world brings with it the possibility of sharing information, coordinating action, and demonstrating solidarity across thousands of miles in fractions of a second. It means that truth is more capable of piercing the veil of enforced ignorance erected by the world’s most repressive states Technology also further empowers dissidents in exile to connect with, and influence the foot soldiers of freedom who march on in their homelands. But with these new openings for liberty come novel approaches to repression. Authoritarian and autocratic regimes are appropriating agile, 21st century technology to prop up sclerotic systems of brutality and corruption. Technological developments have provoked greater feelings of insecurity in these brittle regimes and propelled them to extend their repression far beyond their borders, sometimes reaching into the refuge of democratic societies where political opponents, independent journalists, and civil society activists operate in safety. Madam Speaker, I recently introduced bipartisan legislation to tackle these emerging challenges with my friend and Helsinki Commission Ranking Member, Representative JOE WILSON of South Carolina We are confident that this legislation, supported by the bicameral leadership of the Helsinki Commission and other leaders on human rights, will place the United States on course to lead the free world in holding the line against these modern manifestations of political persecution, or what some have called ‘‘transnational repression.’’ The Transnational Repression Accountability and Prevention Act—or TRAP Act—is designed to counter one key instrument in the autocrat’s 21st century toolkit politically-motivated abuse of the International Criminal Police Organization, more commonly known as INTERPOL. INTERPOL is a legitimate and potent tool for international law enforcement cooperation—one that the United States relies on heavily to bring criminals to justice and thwart threats to security around the globe. Sadly, autocrats have recognized the potential for repression in INTERPOL’s worldwide communications system that ties into the law enforcement agencies of its 194 member countries. The Helsinki Commission regularly receives credible reports from human rights defenders, journalists, political activists, and businesspeople who have fallen victim to the efforts of corrupt regimes to ensnare them using INTERPOL’s system of international requests for arrest and extradition, known as Red Notices and Diffusions. These are the modern-day ‘‘traps’’ addressed by the TRAP Act. Because of these notices, innocent individuals live in fear of traveling mternationally and have been detained, had their bank accounts closed, and, sometimes, been returned into the hands of the very regimes from which they escaped. Madam Speaker, our legislation opens three new fronts agamst the threat of INTERPOL abuse. First, it clearly states that it is the policy of the United States to use our influence in INTERPOL to advance specific reforms that increase transparency and accountability for those that abuse the system while helping the organization to live up to its stated obligations to uphold international human rights standards and resist politicization It further establishes that the United States will use its diplomatic clout to confront countries that abuse INTERPOL and work to ensure the freedom of movement and ability to engage in lawful commerce of victims of this abuse the world over. Second, the TRAP Act exerts oversight over the United States’ internal mechanisms to identify, challenge, and respond to instances of INTERPOL abuse. The bill requires the Departments of Justice, Homeland Security, and State—in coordination with other relevant agencies—to submit to Congress an assessment of the scope and seriousness of autocratic abuse of INTERPOL, an evaluation of the adequacy of the processes in place domestically and at INTERPOL to resist this abuse, and a plan for improving interagency coordination to confront this phenomenon. Third, and perhaps most importantly, the TRAP Act places strict limitations on how the United States Government can use INTERPOL notices in legal or administrative proceedings that could interfere with the freedom or immigration status of individuals in our country. We have been deeply concerned by reports that some authorities in this country have improperly cited INTERPOL notices from autocratic countries to detain individuals and place them in danger of being returned to the very countries from which they fled. The TRAP Act will make crystal clear that autocratic regimes cannot use INTERPOL notices to weaponize the U.S. judicial system against their political targets. Madam Speaker, these measures are critical to restricting the freedom that some autocratic regimes have enjoyed to harass, persecute, and detain their political opponents around the world. Authoritarian and autocratic states like China, Russia, Kazakhstan, Tajikistan, Turkey, Azerbaijan, and Venezuela must be called out by name and held to account for their repeated manipulation of legitimate law enforcement tools for petty political ends. Madam Speaker, I would also like to place the TRAP Act in the context of the other work that the U.S. Helsinki Commission has done to address the grave threat of transnational repression and malign influence by authoritarian regimes. The Countering Russian and Other Overseas Kleptocracy—or ‘‘CROOK’’ Act, the Kleptocrat Exposure Act, and the Rodchenkov Anti-Doping Act have all been the result of a focus by Commissioners and Commission staff on developing a bipartisan congressional response to the existential threat of global authoritarianism. We can no longer sit idly by, content that those who wish to do us harm are on the other side of the world. In this new age of autocracy, the threat is here—now—and it comes in the form of abusive Red Notices, dirty money, and bought-and-paid-for lawfare tactics The purpose of these tactics is to silence journalists and activists, hollow out the rule of law, and ensure that no one ever dare pursue this new class of transnational kleptocrats whose sole goal is the wholesale looting of the countries they claim to serve and the seamless transfer of those ill-gotten gains to our shores and those of our allies. 

  • INTRODUCTION OF THE TRANSNATIONAL REPRESSION ACCOUNTABILITY AND PREVENTION ACT OF 2019 (TRAP ACT)

    Mr. HASTINGS. Madam Speaker, as Chairman of the U.S. Helsinki Commission—a congressional watchdog for human rights and democracy in Europe and Eurasia—I am frequently reminded of the new opportunities that technology and globalization present for human rights defenders around the globe. For those struggling to defend their liberty and human dignity, our interconnected world brings with it the possibility of sharing information, coordinating action, and demonstrating solidarity across thousands of miles in fractions of a second. It means that truth is more capable of piercing the veil of enforced ignorance erected by the world’s most repressive states Technology also further empowers dissidents in exile to connect with, and influence the foot soldiers of freedom who march on in their homelands. But with these new openings for liberty come novel approaches to repression. Authoritarian and autocratic regimes are appropriating agile, 21st century technology to prop up sclerotic systems of brutality and corruption. Technological developments have provoked greater feelings of insecurity in these brittle regimes and propelled them to extend their repression far beyond their borders, sometimes reaching into the refuge of democratic societies where political opponents, independent journalists, and civil society activists operate in safety. Madam Speaker, I recently introduced bipartisan legislation to tackle these emerging challenges with my friend and Helsinki Commission Ranking Member, Representative JOE WILSON of South Carolina We are confident that this legislation, supported by the bicameral leadership of the Helsinki Commission and other leaders on human rights, will place the United States on course to lead the free world in holding the line against these modern manifestations of political persecution, or what some have called ‘‘transnational repression.’’ The Transnational Repression Accountability and Prevention Act—or TRAP Act—is designed to counter one key instrument in the autocrat’s 21st century toolkit politically-motivated abuse of the International Criminal Police Organization, more commonly known as INTERPOL. INTERPOL is a legitimate and potent tool for international law enforcement cooperation—one that the United States relies on heavily to bring criminals to justice and thwart threats to security around the globe. Sadly, autocrats have recognized the potential for repression in INTERPOL’s worldwide communications system that ties into the law enforcement agencies of its 194 member countries. The Helsinki Commission regularly receives credible reports from human rights defenders, journalists, political activists, and businesspeople who have fallen victim to the efforts of corrupt regimes to ensnare them using INTERPOL’s system of international requests for arrest and extradition, known as Red Notices and Diffusions. These are the modern-day ‘‘traps’’ addressed by the TRAP Act. Because of these notices, innocent individuals live in fear of traveling mternationally and have been detained, had their bank accounts closed, and, sometimes, been returned into the hands of the very regimes from which they escaped. Madam Speaker, our legislation opens three new fronts agamst the threat of INTERPOL abuse. First, it clearly states that it is the policy of the United States to use our influence in INTERPOL to advance specific reforms that increase transparency and accountability for those that abuse the system while helping the organization to live up to its stated obligations to uphold international human rights standards and resist politicization It further establishes that the United States will use its diplomatic clout to confront countries that abuse INTERPOL and work to ensure the freedom of movement and ability to engage in lawful commerce of victims of this abuse the world over. Second, the TRAP Act exerts oversight over the United States’ internal mechanisms to identify, challenge, and respond to instances of INTERPOL abuse. The bill requires the Departments of Justice, Homeland Security, and State—in coordination with other relevant agencies—to submit to Congress an assessment of the scope and seriousness of autocratic abuse of INTERPOL, an evaluation of the adequacy of the processes in place domestically and at INTERPOL to resist this abuse, and a plan for improving interagency coordination to confront this phenomenon. Third, and perhaps most importantly, the TRAP Act places strict limitations on how the United States Government can use INTERPOL notices in legal or administrative proceedings that could interfere with the freedom or immigration status of individuals in our country. We have been deeply concerned by reports that some authorities in this country have improperly cited INTERPOL notices from autocratic countries to detain individuals and place them in danger of being returned to the very countries from which they fled. The TRAP Act will make crystal clear that autocratic regimes cannot use INTERPOL notices to weaponize the U.S. judicial system against their political targets. Madam Speaker, these measures are critical to restricting the freedom that some autocratic regimes have enjoyed to harass, persecute, and detain their political opponents around the world. Authoritarian and autocratic states like China, Russia, Kazakhstan, Tajikistan, Turkey, Azerbaijan, and Venezuela must be called out by name and held to account for their repeated manipulation of legitimate law enforcement tools for petty political ends. Madam Speaker, I would also like to place the TRAP Act in the context of the other work that the U.S. Helsinki Commission has done to address the grave threat of transnational repression and malign influence by authoritarian regimes. The Countering Russian and Other Overseas Kleptocracy—or ‘‘CROOK’’ Act, the Kleptocrat Exposure Act, and the Rodchenkov Anti-Doping Act have all been the result of a focus by Commissioners and Commission staff on developing a bipartisan congressional response to the existential threat of global authoritarianism. We can no longer sit idly by, content that those who wish to do us harm are on the other side of the world. In this new age of autocracy, the threat is here—now—and it comes in the form of abusive Red Notices, dirty money, and bought-and-paid-for lawfare tactics The purpose of these tactics is to silence journalists and activists, hollow out the rule of law, and ensure that no one ever dare pursue this new class of transnational kleptocrats whose sole goal is the wholesale looting of the countries they claim to serve and the seamless transfer of those ill-gotten gains to our shores and those of our allies. 

  • 2019 Human Dimension Implementation Meeting

    From September 16 to September 27, OSCE participating States will meet in Warsaw, Poland, for the 2019 Human Dimension Implementation Meeting (HDIM), organized by the OSCE Office for Democratic Institutions and Human Rights (ODIHR).  As Europe’s largest annual human rights conference, the HDIM brings together hundreds of government and nongovernmental representatives, international experts, and human rights activists for two weeks to review OSCE human rights commitments and progress. During the 2019 meeting, three specifically selected topics will each be the focus of a full-day discussion: “safety of journalists,” “hate crimes,” and “Roma and Sinti.” These special topics are chosen to highlight key areas for improvement in the OSCE region and promote discussion of pressing issues. Human Dimension Implementation Meeting 2019 Since the HDIM was established in 1998, the OSCE participating States have a standing agreement to hold an annual two-week meeting to review the participating States’ compliance with the human dimension commitments they have previously adopted by consensus. The phrase “human dimension” was coined to describe the OSCE norms and activities related to fundamental freedoms, democracy (such as free elections, the rule of law, and independence of the judiciary), humanitarian concerns (such as refugee migration and human trafficking), and concerns relating to tolerance and nondiscrimination (such as countering anti-Semitism and racism). Each year, the HDIM allows participating States to assess one another’s implementation of OSCE human dimension commitments, identify challenges, and make recommendations for improvement. The HDIM agenda covers all human dimension commitments, including freedoms of expression and the media, peaceful assembly and association, and religion or belief; democratic elections; the rule of law; tolerance and non-discrimination; combating trafficking in persons; women’s rights; and national minorities, including Roma and Sinti. Unique about the HDIM is the inclusion and strong participation of non-governmental organizations. The United States has been a stout advocate for the involvement of NGOs in the HDIM, recognizing the vital role that civil society plays in human rights and democracy-building initiatives. OSCE structures allow NGO representatives to raise issues of concern directly with government representatives, both by speaking during the formal working sessions of the HDIM and by organizing side events that examine specific issues in greater detail. Members of the U.S. delegation to the 2019 HDIM include: Ambassador James S. Gilmore, U.S. Permanent Representative to the OSCE and Head of Delegation Christopher Robinson, Deputy Assistant Secretary, Bureau of European and Eurasian Affairs Roger D. Carstens, Deputy Assistant Secretary, Bureau of Democracy, Human Rights, and Labor Elan S. Carr, Special Envoy to Monitor and Combat Anti-Semitism Alex T. Johnson, Chief of Staff, U.S. Helsinki Commission

  • Helsinki Commission Leaders Introduce Transnational Repression Accountability and Prevention (TRAP) Act

    WASHINGTON—Helsinki Commission Chairman Rep. Alcee L. Hastings (FL-20) and Ranking Member Rep. Joe Wilson (SC-02) today introduced the Transnational Repression Accountability and Prevention (TRAP) Act (H.R. 4330) in the House of Representatives. Helsinki Commission Co-Chairman Sen. Roger Wicker (MS) and Ranking Member Sen. Ben Cardin (MD) introduced the TRAP Act (S. 2483) in the Senate on Tuesday. The legislation addresses politically-motivated abuse of the International Criminal Police Organization (INTERPOL) by autocracies. “Today’s autocrats don’t simply try to silence journalists, activists, and other independent voices at home. They also hunt them down in their places of refuge abroad,” said Chairman Hastings. “Such repressive regimes even manipulate INTERPOL—a legitimate and potent tool for international law enforcement cooperation—to trap their targets using trumped-up requests for detention and extradition. The United States must act to prevent this flagrant abuse and protect those who fight for freedom, human rights, and the rule of law." “Instead of facing consequences for their serial abuse of INTERPOL, autocratic states like Russia and China have instead jockeyed for senior positions in the organization,” said Co-Chairman Wicker. “The United States and other democracies should impose real costs for this global assault on the rule of law. This legislation would ensure that the United States remains at the forefront of defending the vulnerable against the long arm of state repression.” “The Transnational Repression Accountability and Prevention Act continues the tradition of U.S. leadership in combating INTERPOL abuse, holding perpetrators accountable, and advancing necessary reforms within the U.S. Government and INTERPOL to respond to this threat,” said Rep. Wilson. “This legislation makes it clear that the United States stands on the side of freedom for those who defy repression, resist corruption, and defend human rights wherever they seek refuge and a voice.” “Autocratic regimes are increasingly exporting their repression overseas, including to our own country. The United States must respond more forcefully to these attacks against the rule of law and deter the serial abuse of INTERPOL by repressive governments,” said Sen. Cardin. “This legislation is critical to establishing stronger protections for dissidents and other independent voices whom these regimes wish to apprehend in the United States on politically motivated charges.” The Helsinki Commission regularly receives credible reports from political dissidents, human rights defenders, and members of the business community who are the subject of politically-motivated INTERPOL Notices and Diffusions requested by autocratic regimes. These mechanisms, which function effectively as extradition requests, can be based on trumped-up criminal charges and used to detain, harass, or otherwise persecute individuals for their activism or refusal to acquiesce to corrupt schemes. Following reports that U.S. immigration authorities have cited such politically-motivated INTERPOL requests to detain some individuals and consider removing them from the United States, the TRAP Act formally codifies strict limitations on how INTERPOL requests can be used by U.S. authorities. The TRAP Act further declares that it is the policy of the United States to pursue specific reforms within INTERPOL and use its diplomatic clout internationally to protect the rights of victims and denounce abusers. The bill requires the Departments of Justice, Homeland Security, and State, in consultation with other relevant agencies, to provide Congress with an assessment of autocratic abuse of INTERPOL, what the United States is doing to counteract it, and how to adapt United States policy to this evolving autocratic practice. The State Department would also be required to publicly report on the abuse of INTERPOL in its annual Country Reports on Human Rights to create a transparent, public record of these violations of the rule of law. Russia is among the world’s most prolific abusers of INTERPOL’s Notice and Diffusion mechanisms. Other participating States of the Organization for Security and Cooperation in Europe (OSCE)—principally Azerbaijan, Kazakhstan, Tajikistan, and Turkey—and other authoritarian states, such as China, also reportedly target political opponents with INTERPOL requests that violate key provisions of INTERPOL’s Constitution, which obligate the organization to uphold international human rights standards and strictly avoid involvement in politically-motivated charges. Original co-sponsors of the legislation include Helsinki Commission members Sen. Marco Rubio (FL), Sen. Cory Gardner (CO), Sen. Sheldon Whitehouse (RI), Rep. Steve Cohen (TN-09), Rep. Brian Fitzpatrick (PA-01), Rep. Richard Hudson (NC-08), Rep. Gwen Moore (WI-04), and Rep. Marc Veasey (TX-33). Rep. John Curtis (UT-03), Rep. Sheila Jackson Lee (TX-18), and Rep. Tom Malinowski (NJ-07) are also original co-sponsors.

  • Helsinki Commission Hearing to Probe Autocratic Abuse of Interpol

    WASHINGTON—The Commission on Security and Cooperation in Europe, also known as the Helsinki Commission, today announced the following hearing: TOOLS OF TRANSNATIONAL REPRESSION How Autocrats Punish Dissent Overseas Thursday, September 12, 2019 10:00 a.m. – 12:00 p.m. Cannon House Office Building Room 210 Live Webcast: www.youtube.com/HelsinkiCommission As modern technology has allowed political dissidents and human rights defenders to operate from almost anywhere on the planet, repressive regimes have searched for opportunities to reach those who threaten their rule from afar.  To silence dissent from abroad, autocrats often turn to the International Criminal Police Organization, known as INTERPOL, to file bogus criminal claims seeking the arrest and extradition of their political targets. This abuse of INTERPOL Red Notices and Diffusions enables autocratic governments to harass and intimidate their opponents thousands of miles away, even within free and democratic societies. The U.S. Helsinki Commission will convene an expert panel to highlight how autocrats today use INTERPOL and other means such as surveillance, abduction, and assassination to punish dissent overseas. Witnesses will suggest how the United States and other democratic nations can defend against these threats to the rule of law domestically and internationally. The following witnesses are scheduled to participate: Alexander Cooley, Director, Columbia University's Harriman Institute for the Study of Russia, Eurasia and Eastern Europe; Claire Tow Professor of Political Science, Barnard College Sandra A. Grossman, Partner, Grossman Young & Hammond, Immigration Law, LLC Bruno Min, Senior Legal and Policy Advisor, Fair Trials Nate Schenkkan, Director for Special Research, Freedom House Additional witnesses may be added.

  • A Push to Let the U.S. Charge Foreign Officials With Bribery

    One of the hallmarks of the Foreign Corrupt Practices Act has been that it cannot be used against a foreign official who demands or takes a bribe for helping a company win a contract or retain business. A bill introduced in Congress this month seeks to change that. Called the Foreign Extortion Prevention Act, the legislation would expand the prohibition on bribery to foreign officials who demanded or solicited bribes. The Foreign Corrupt Practices Act’s prohibition on paying bribes abroad is limited to companies in the United States and those acting in this country. It has always excluded the foreign official who takes the bribe, and courts over the years have reaffirmed that. In United States v. Castle, a 1991 decision, the United States Court of Appeals for the Fifth Circuit found that two Canadian officials could not be prosecuted for a conspiracy to violate the F.C.P.A. because Congress exempted foreign officials. In United States v. Hoskins, a 2018 ruling, the federal appeals court in Manhattan held that a foreign national who was never in the United States could not be prosecuted under the foreign bribery law because “Congress did not intend for persons outside of the statute’s carefully delimited categories to be subject to conspiracy or complicity liability.” The bill, which has both Democrats and Republicans as sponsors, would put the prohibition on a foreign official’s accepting a bribe under the federal anti-bribery statute, 18 U.S.C. § 201, rather than the Foreign Corrupt Practices Act. The proposal would also make it a crime for a foreign official “otherwise than as provided by law for the proper discharge of official duty” to demand or accept anything of value for being influenced in the performance of official responsibilities. But putting the prohibition under the federal anti-bribery statute would subject it to the limitations the Supreme Court placed on the law in its 2016 ruling in McDonnell v. United States. That case overturned the conviction of a former governor of Virginia by rejecting a broad reading of what is an “official act.” The justices explained that it must involve “a formal exercise of governmental power that is similar in nature to a lawsuit, administrative determination or hearing.” They found that “merely setting up a meeting, hosting an event or contacting an official — without more — does not count as an ‘official act.’” Favoring a business by arranging meetings or contacting other foreign officials to help it win a contract may not rise to the level of an “official act,” especially if the foreign official who received the bribe did not have the direct authority to decide who should be awarded a contract. So the potential limitations on the federal bribery statute could be read into prosecutions of foreign officials for accepting bribes that violated the F.C.P.A. The F.C.P.A. also contains two defenses that were added in 1988. One is the “local law” defense, which allows a defendant to show that under the written laws and regulations of the place where the bribe occurred that it was not illegal. Another defense permits small “facilitation payments” to obtain routine government action in the country. In both situations, a foreign official could argue that these defenses should preclude liability for accepting a payment. A greater potential issue for the Justice Department if the legislation becomes law is whether a foreign official will be brought to the United States to face a criminal charge. If the person is still in office, a foreign government may be reluctant to send the person to America. But a criminal indictment would most likely limit where the foreign official could travel. The person would need to avoid countries that have an extradition treaty with the United States. The Department of Justice has not been without tools to punish foreign officials who engage in bribery. The money-laundering statute allows a foreign official receiving money through bribery, misappropriation or theft of public funds to be charged with a crime. Federal prosecutors could also use the Travel Act, which prohibits traveling into the United States to engage in bribery. Both statutes, though, require either travel to the United States or a financial transaction using the United States financial system. The new legislation would make it much easier to pursue a foreign official. The Justice Department would not have to show a connection to the United States beyond a payment by an American company. Whether it would result in an increase in prosecutions is a different question. Still, simply charging the official could have the effect of identifying who was responsible in a country for accepting illegal bribes. That should make it easier for American companies and their employees to demand fairness from foreign officials rather than being extorted for payments.

  • Representatives Jackson Lee, Curtis, Malinowski, and Hudson Introduce Foreign Extortion Prevention Act

    WASHINGTON—Rep. Sheila Jackson Lee (TX-18), Rep. John Curtis (UT-03), Rep. Tom Malinowski (NJ-07) and Rep. Richard Hudson (NC-08) today introduced the Foreign Extortion Prevention Act. The legislation, developed with the support of the U.S. Helsinki Commission, will criminalize extortion by foreign officials, enabling the Department of Justice to indict such officials for demanding bribes to fulfill, neglect, or violate their official duties. Currently, only paying or offering a bribe abroad is illegal under U.S. law. “Transnational kleptocrats pose a serious national security threat to the United States. They act as agents of U.S. adversaries, undermining the rule of law internationally and in their own countries, and accessing elite circles and levers of power in democracies through strategic graft and corruption. U.S. prosecutors have been able to indict such individuals under criminal statutes such as wire fraud, mail fraud, and the Travel Act; however, these laws were not designed to tackle the problem of transnational kleptocracy, and each contain deficiencies which make it less than ideal for prosecuting foreign extortion. We cannot leave our prosecutors without the legal tools they need to protect the rule of law,” said Rep. Jackson Lee. “U.S. businesses abroad are regularly targeted by foreign extortionists. Transnational kleptocrats hide under the veneer of officialdom and abuse their power to warp the regulatory environment, attempting to co-opt or eliminate legitimate job-creators and entrepreneurs who follow the rules. The Foreign Extortion Prevention Act would protect U.S. businesses from these individuals by punishing the demand side of bribery. Currently, a business being extorted for a bribe can only say ‘I can’t pay you a bribe because it is illegal and I might get arrested.’ This long-overdue bill would enable them to add, ‘and so will you,’” said Rep. Curtis. “Americans who pay bribes overseas can be prosecuted—with this bill, our prosecutors will be able to go after the foreign officials who demand those bribes. We’re giving the Justice Department a powerful new tool to fight the kleptocracy that impoverishes people and empowers dictators around the world,” said Rep. Malinowski. “Pursuing the extortionists is crucial to ending the entire system of international bribery. Even if a kleptocrat cannot be immediately extradited, a U.S. indictment serves as a play-by-play of the crime committed that can be used to support additional measures—such as sanctions—and can force transnational criminals to think twice before traveling abroad to spend their ill-gotten gains. Moreover, a U.S. indictment can help the forces of the rule of law in other countries to root out corruption by pressuring the domestic government in question to charge the individual,” said Rep. Hudson. The Foreign Extortion Prevention Act will bring U.S. laws in line with international best practices. The Organization for Economic Cooperation and Development (OECD), which maintains the OECD Anti-Bribery Convention—a key international mechanism for fighting foreign bribery—has recognized the importance of criminalizing transnational extortion in a recent report. In addition, countries including the United Kingdom, France, the Netherlands, and Switzerland have already criminalized foreign extortion. The Commission on Security and Cooperation in Europe, also known as the U.S. Helsinki Commission, endeavors to counter corruption and malign influence in all its forms. Current and former Helsinki Commissioners have sponsored and cosponsored other anti-corruption legislation such as the Countering Russian and Other Overseas Kleptocracy (CROOK) Act (H.R. 3843), the Kleptocrat Exposure Act (H.R. 3441), and the Rodchenkov Anti-Doping Act (H.R. 835/S.259).

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

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

  • OSCE Representative on Freedom of the Media Harlem Desir to Appear at Helsinki Commission Hearing

    WASHINGTON—The Commission on Security and Cooperation in Europe, also known as the Helsinki Commission, today announced the following hearing: STATE OF MEDIA FREEDOM IN THE OSCE REGION Thursday, July 25, 2019 3:00 p.m. to 5:00 p.m. Capitol Visitor Center Room HVC-210 Live Webcast: www.youtube.com/HelsinkiCommission Journalists working in the 57 participating States of the Organization for Security and Cooperation (OSCE) are facing increased risks to their lives and safety. According to a new report released the Office of the Representative for Freedom of the Media, in the first six months of 2019, two journalists have been killed and an additional 92 attacks and threats—including one bombing, three shootings, and seven arson attacks—have targeted members of the media. In his first appearance before Congress, OSCE Representative for Freedom of the Media Harlem Desir will assess the fragile state of media freedom within the OSCE region. Mr. Desir also will address the number of imprisoned media professionals as well as the violence, threats, and intimidation directed toward female journalists. The hearing will explore the threat posed by disinformation and online content designed to provoke violence and hate.  Following the hearing, at 5:00 p.m. in Room HVC-200, the Helsinki Commission will host a viewing of the documentary, “A Dark Place,” which details the online harassment of female journalists working in the OSCE region.

  • Countering Hate: Lessons from the Past, Leadership for the Future

    Today at the 28th Annual Session of the OSCE Parliamentary Assembly in Luxembourg, Helsinki Commission Ranking Member Sen. Ben Cardin hosted a U.S. side event in his capacity as OSCE PA Special Representative on Anti-Semitism, Racism and Intolerance. The event, “Countering Hate: Lessons from the Past, Leadership for the Future,” called for parliamentarians from across the 57 OSCE participating States to adopt an action plan to counter bias and discrimination and foster inclusion.  Several members of the U.S. delegation—along with U.S. Ambassador to the OSCE James Gilmore and U.S. Ambassador to Luxembourg Randy Evans—attended the event, where speakers included Dr. Rebecca Erbelding of the U.S. Holocaust Memorial Museum and OSCE parliamentarians Michael Link (Germany), Nahima Lanjri (Belgium), and Lord Alf Dubs (United Kingdom). “We are here today to exchange information on what we are doing in our home countries to address the problem and how we might be able to develop a plan of action to work better together to address the rise in hate-based incidents we have been witnessing across the OSCE region and beyond from Pittsburgh and Poway to Christchurch,” said Sen. Cardin. “It is not only the most vulnerable in our societies whom are in danger when we fail to act, but the very foundations of our democracies.” Dr. Rebecca Erbelding of the U.S. Holocaust Memorial Museum shared a cautionary tale, reminding the audience, “The Holocaust did not appear out of nowhere [and] the Nazi Party was in power in Germany for eight years before mass killing began.”  Warning signs in the past were ignored, she stated.  “A rise of populist leaders, of simple solutions, of demonizing minorities, of propagandizing hate, of neglecting or ignoring refugee protections, of isolationism, of appeasement—these factors, when taken together, have led to genocide in the past, and not just in Europe. We must [..] work together to prevent genocide in the future.”  OSCE parliamentarian and former director of the OSCE Office of Democratic Institutions and Human Rights (ODIHR) Michael Link stressed the need for action, saying that we are witnessing these first alarming signs of hate, but have a choice in whether we will repeat the past. He lauded the success of and need to continue the OSCE’s Words Into Action project funded by the German government to increase education on addressing anti-Semitism, security protections for the Jewish community, and build diverse coalitions across communities against hate. He cautioned that Romani populations should also not be forgotten in the efforts to address the problem. OSCE parliamentarian Nahima Lanjri described rampant discrimination in Belgium’s employment sector and its negative impact on the labor market. Citing the need for increased tools to fight all forms of discrimination that have the negative affect of repressing talents needed for societies to flourish, she called for more disparities data and initiatives that address economic and other forms of discrimination and bias. Lord Dubs, a British parliamentarian who was born in Prague in what was then Czechoslovakia, was one of 669 Jewish children saved by English stockbroker Nicholas Winton, and others, from the Nazis on the Kindertransport.  He shared a recent hate post he had received online and stressed the need to address increasing hate in our societies through education, legislation against hate speech and discrimination, and by shifting public opinion that denigrates communities instead of building them up. U.S. House Majority Leader Rep. Steny Hoyer cited the anti-discrimination work of Brian Stevenson and stressed that difference does not make one “less than." Parliamentarian Hedy Fry of Canada noted rising hate crimes in her country amid numerous initiatives addressing disparities and inclusion. U.S. Rep. Gregory Meeks highlighted the importance of Jewish and African-American coalitions in the civil rights movement. Stating that no group should have to fight for their rights alone if we truly espouse democratic values, he said, we all should be joining the Roma in their human rights struggle.  U.S. Rep. Val Demings called for the conversation to also include LGBT+ communities, recalling the tragic mass shooting at the Pulse nightclub in her Orlando, Florida district.  The sessions concluded with Special Representative Cardin calling for an OSCE Action Plan to address bias and discrimination and foster inclusion and OSCE/ODIHR Advisor Dermana Seta providing an overview of tools currently offered by the OSCE to assist governments in addressing hate crimes and discrimination. 

  • The Helsinki Process: A Four Decade Overview

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

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

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

  • Representatives Cohen and Chabot Introduce Kleptocrat Exposure Act

    WASHINGTON—Helsinki Commissioner Rep. Steve Cohen (TN-09) and Rep. Steve Chabot (OH-01) today introduced the Kleptocrat Exposure Act. The act will provide the Secretary of State the authority to publicly reveal the names of individuals and their immediate family members who are subject to U.S. visa bans as a result of human rights abuses, corruption, and other malign activity. “Global criminals and corrupt autocrats—or kleptocrats—seek to spend their ill-gotten gains in the United States, where they can indulge in luxury, pursue positions of influence, and exploit the rule of law, which protects their stolen wealth. Our country should not be a shelter for these corrupt individuals,” said Rep. Cohen. “Corrupt elites in Russia, and around the world, fear exposure. They thrive off of secrecy to continue to keep their corruption going. It is time to sound the alarm about who these bad actors are and shield American citizens from these crooks,” said Rep. Chabot. Many kleptocrats already have been prohibited from traveling to the United States on the grounds of their engagement in malign activity. However, under current law, these and future visa bans are confidential. If made public, this information would further protect the United States and its allies by exposing these kleptocrats. Chairman of the Helsinki Commission Rep. Alcee L. Hastings (FL-20), Ranking Member of the Helsinki Commission Rep. Joe Wilson (SC-02), Helsinki Commissioners Rep. Sheila Jackson Lee (TX-18) and Rep. Brian Fitzpatrick (PA-01), and Rep. John Curtis (UT-03) are original cosponsors of the legislation.

  • Partially Protected?

    The U.S. Helsinki Commission convened an expert briefing on the background, implementation, and legal and political implications of temporary protection for people in the United States and Europe who come from countries of conflict or natural disaster but not qualify for asylum. The discussion explored whether some European Union countries are choosing temporary protection even when asylum claims are credible. Alex T. Johnson, Chief of Staff for the Helsinki Commission, said in his opening remarks, “Chairman Hastings sees [protected status] as a priority, particularly in the United States and in the OSCE region because of the erosion of human rights and democratic institutions that we are seeing now. It’s particularly urgent as we look at our own domestic compliance with commitments in the Organization for Security and Cooperation in Europe, and how we partner with countries who are also exploring issues related to granted protected status for vulnerable communities in their midst.” Johnson also noted Chairman Hasting’s introduction of H.Con.Res. 5, which expresses support for Haitians residing in the United States with Temporary Protected Status (TPS). In the discussion that followed, Jill Wilson of the Congressional Research Service provided context on TPS and its implementation in the U.S. Wilson reported, “Ten countries are currently covered by TPS, benefitting some 400,000 individuals in the United States. The Trump administration has announced terminations for six of these ten countries on the grounds that the conditions on which the original designations were based no longer exist. These terminations are currently on hold pending court action.”  Recent efforts by members of the 115th and 116th Congress saw a greater number and variety of TPS-related bills that seek either to expand or restrict TPS and shift the decision-making power from the Secretary of Department of Homeland Security (DHS) to the U.S. Congress. Currently, the Secretary of the DHS, in consultation with other key government offices namely the U.S. State Department, has the power to designate a country for temporary protection in periods of six, twelve, or eighteen months based on three categories: armed conflict, natural disaster, or extraordinary circumstances that prevent the safe return of a country’s nationals. Marleine Bastien of the Family Action Network Movement shared her expertise on the current political and economic situation in Haiti, following the catastrophic earthquake in 2010 and subsequent natural disasters that resulted in major public health emergencies, about 300,000 displaced people, and severely damaged infrastructure. Despite these continuing poor conditions, Haiti’s TPS status is subject to termination. Bastien remarked, “We hope that Congress will take a close look at what’s going on in Haiti today…The conditions in Haiti continue to deteriorate. Haiti still qualifies for temporary protected status… TPS is still applicable, not only for the countries that qualify now, but for the countries in the future which may experience natural and political disasters.” Without its TPS re-instated, she said, Haiti does not have the capacity to resettle and support the 58,000 Haitians currently living in the U.S. Sui Chung, an attorney with the Immigration Law and Litigation Group in Miami, Florida, and Chair of the Immigration and Customs Enforcement Committee of the American Immigration Lawyers Association (AILA) stated that unless legislation like the American Dream and Promise Act, H.R. 6 is passed, TPS recipients remain at risk of being detained or deported. Chung remarked, “Although the federal courts have enjoined the termination of TPS for some countries, these court orders are temporary. If a higher court rules unfavorably, those with TPS would be vulnerable to losing authorization to work and reside in the U.S., and they would be subject to deportation.” Chung stated that 94 percent of individuals under TPS are employed, generating about $5.5 billion in federal, state, and local taxes, with roughly $25 billion spending power. According to Chung, losing this population could cripple the U.S. economy and harm communities.  Catherine Woollard, Secretary General of the European Council on Refugees and Exiles, described Europe’s decision-making process for protection status as an inconsistent and unfair “asylum lottery” She argued that the lack of fairness and uniformity in granting TPS originates from the selection process, where the decision to grant protection status is left solely to the discretion of the twenty-eight European Union Member States rather than a universal eligibility process. Woollard noted, “Our analysis shows that these different protection statuses have a wide variation when it comes to the rights attached. Key rights that are of interest and necessity for people who are seeking protection vary. If you have refugee status, your residence rights are for a longer duration. For subsidiary protection, less time is granted for residential rights. In some cases, there are very stark differences.”

  • Helsinki Commission Briefing to Explore Non-Asylum Protections in United States And Europe

    WASHINGTON—The Commission on Security and Cooperation in Europe, also known as the Helsinki Commission, today announced the following briefing: PARTIALLY PROTECTED? Non-Asylum Protection in the United States and the European Union Friday, June 14, 2019 2:00 p.m. Rayburn House Office Building Room 2237 Live Webcast: www.facebook.com/HelsinkiCommission The United States and the European Union give legal protection to some people who flee armed conflict or natural disaster, but do not qualify as refugees. In the United States, the Secretary of Homeland Security designates countries of origin for “Temporary Protected Status” (TPS), enabling their nationals to legally remain in the United States and work until and unless the Secretary terminates the designation. Approximately 417,000 individuals from 10 countries currently have TPS, living in all 50 states, the District of Columbia, and U.S. commonwealths and territories. In 2018, more than 100,300 people were granted similar non-asylum protection, on an individual basis, across the 28 countries of the European Union. Since 2017, the United States has extended TPS for Somalia, South Sudan, Syria, and Yemen, and announced terminations for El Salvador, Haiti, Honduras, Nepal, Nicaragua, and Sudan. Lawsuits have challenged the terminations. To date, Members of Congress have introduced at least 10 TPS-focused bills in the 116th Congress. This briefing will explore the background and implementation of non-asylum protection in the United States and Europe—including whether some European Union Member States are according this protection even when asylum claims are credible—legislative and legal responses, and implications for policy, law, and protection. The following panelists are scheduled to participate: Marleine Bastien, Executive Director, Family Action Network Movement Sui Chung, Attorney at Law, Immigration Law and Litigation Group, and Chair, Immigration and Customs Enforcement Committee, American Immigration Lawyers Association Jill H. Wilson, Analyst in Immigration Policy, Congressional Research Service Catherine Woollard, Secretary General, European Council on Refugees and Exiles Additional panelists may be added.

  • Curbing Corruption through Corporate Transparency and Collaboration

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

  • Shady Shipping

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

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

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

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