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in the news
Russia Critics Press Congress for Curbing Moscow's Role in International Groups
Wednesday, April 06, 2022Critics of Moscow pressed lawmakers to sever remaining international connections with Moscow and punish what they called enablers of Russian President Vladimir Putin’s government—including Russian tycoons. “We recognize that the oligarchs are the appendages of Mr. Putin’s mafia state,” said Sen. Ben Cardin (D., Md.), the co-chairman of the Commission on Security and Cooperation in Europe, known as the Helsinki Commission, which held a hearing Wednesday on Russia's financial ties abroad. “I can’t wait to see police tape around mansions in Miami," said Sen. Sheldon Whitehouse (D., R.I.). Witnesses before the commission, a U.S. agency that has frequently scrutinized Moscow, sought to portray Russian billionaires and their network of lawyers and agents in the West as little different from Russian government employees and its lawyers abroad. Bill Browder, a prominent critic of the Kremlin’s human-rights record, called on the U.S. to withdraw from the mutual legal-assistance treaty that allows U.S. and Russian law enforcement to cooperate on investigations and secure witness testimony. Western countries should ban lawyers paid by the Russian government in one country from traveling to their countries, he said. The Kremlin used the Interpol international law-enforcement network in an effort to arrest Mr. Browder after his lawyer died in a Russian prison in 2009. Mr. Browder, who founded investment fund Hermitage Capital, said the U.S. and partner countries should seek to remove Moscow from Interpol or “basically threaten the funding of Interpol if Russia is not expelled.” Mr. Browder was the largest private investor in Russia until his expulsion from that country in 2005. Moscow should also lose its membership and face blacklisting by the Financial Action Task Force, a Paris-based intergovernmental body that audits the ability of nations to detect and disrupt illicit finance, said Daria Kaleniuk, co-founder of the Anti-Corruption Action Center in Ukraine. Mr. Browder and Ms. Kaleniuk were among five witnesses at the hearing.
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hearing
Countering Oligarchs, Enablers, and Lawfare
Wednesday, April 06, 2022As influential proxies of Russian dictator Vladmir Putin, Russian oligarchs work to weaken Western democracies from within. They pay Western enablers—especially lawyers and lobbyists—millions to use their standing in democratic societies to generate policies favorable to the authoritarian regime in Russia and to silence its critics. On April 6, 2022, the Helsinki Commission heard from five witnesses who testified on the corruption of Russian oligarchs, as well as the various means through which such oligarchs censure journalists from reporting on their nefarious activities. Helsinki Commission Chairman Sen. Ben Cardin (MD) opened the hearing by recognizing oligarchs as appendages of Putin’s government who have engaged in extensive laundering and looting of the Russian state. He stressed the importance of sanctioning oligarchs, who utilize the existing financial and judicial frameworks of Western democracies to protect themselves from legal harm, as well as their accountants and lawyers, who utilize lawfare as means of continuing their kleptocratic ways and silencing those who report on their crimes. “We have to fortify our system against lawfare,” he stated. “And we hope that we can win this fight.” Helsinki Commission Co-Chairman Rep. Steve Cohen (TN-09) asserted that oligarchs, while stealing and oppressing the Russian public, also are funding the Russian invasion of Ukraine. “In exchange for the lavish lifestyles that they live, these oligarchs pledge their loyalty to the mid-level KGB agent… currently overseeing Europe’s biggest land war since 1945,” he remarked. Ranking Member Rep. Joe Wilson (SC-02) described Russia’s invasion of Ukraine as a battle between the virtues of the free world and the vices of a corrupt state. “Putin ordered the invasion of Ukraine because Ukraine is a democracy… because it shows accountability over corruption,” he stated. “This is the most black and white conflict in recent memory.” Daria Kaleniuk, executive director of the Ukrainian Anti-Corruption Action Centre, testified that Putin’s invasion of Ukraine was due to fear of Ukraine’s fight against corruption. On February 22, when Putin declared war on Ukraine, he referred to numerous anti-corruption reforms for which the Ukrainian Anti-Corruption Action Centre had advocated. “It was clear to me in that moment that Ukraine’s successful story in fighting corruption is actually the ultimate threat to Vladmir Putin and to his kleptocratic regime,” she remarked. She argued that integral to Putin’s success throughout the years is his legion of legal and financial professionals. “There are two battlefields,” she stated. “One in Ukraine…. And another one in the West, where America is obligated to fight by targeting Russian oligarchs and their enablers.” Bill Browder, head of the Global Magnitsky Justice Campaign, described his experience following the passing of the Magnitsky Act, which allows the United States to freeze the assets of kleptocrats and human-rights violators. He highlighted the team of Western professionals who helped Putin target him for his work to passing the legislation. To ensure these Western enablers are held accountable for their actions, Browder recommended that Congress speak out and deny government employment to such organizations in the future. “We should make a list of these type of firms that do this enabling, this list should be put together by the U.S. Congress, and there should be a recommendation to the U.S. Government not to do business with these firms going forward,” he said. “They can pick sides. They can decide they want to work for the bad guys. And if they work for the bad guys, then they shouldn’t get any money from the U.S. government. Scott Stedman, founder of Forensic News, described the increased use of lawfare by oligarchs as a weapon to intimidate reporters into silence. He spoke of his experience reporting on Walter Soriano, a businessman with reported ties to multiple Russian oligarchs. Soriano filed a lawsuit against Forensic News and its contributors, attempting to silence Stedman through financial intimidation and lawfare. “Mr. Soriano’s U.S. litigation counsel Andrew Brettler wrote to me threatening yet more legal action if I did not pay a U.K. court for more money than I’ve ever had in any bank account,” he said. “This is what lawfare looks like. It is designed to suppress, stall, scare critical coverage of the Russian elite and their enablers.” Anna Veduta, vice president of the Navalny Anti-Corruption Foundation International, outlined the need to sanction corrupt Russian politicians, oligarchs, enablers, and their family members. The assets these oligarchs and enablers have acquired are held by relatives, she argued, who have yet to be sanctioned. “People responsible for these lies, people who are poisoning Russian people with these lies, still can enjoy spring break in Miami and take their kids to Disneyland,” she said. “So I am going to quote Alexei Navalny once again, ‘Warmongers must be treated as war criminals.’” Shannon Green, executive director of the USAID Anti-Corruption Task Force and senior advisor to the Administrator highlighted the reliance of autocrats like Putin on oligarchs and enablers. She reviewed USAID initiatives to support reform coalitions and confront lawfare domestically, as well as efforts to develop new programs to confront kleptocracy abroad. Addressing her fellow panelists, she stated, “Anna, Bill, Daria, Scott, we draw inspiration and courage from your example. And the U.S. government’s message to you, and to all of your fellow change agents, is: Be not afraid. We stand with you.” Related Information Witness Biographies Statement for the Record: Arabella Pike, Publishing Director, HarperCollins Publishers
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press release
Helsinki Commission Hearing to Examine Ways to Counter Oligarchs, Enablers, and Lawfare
Wednesday, March 30, 2022WASHINGTON—The Commission on Security and Cooperation in Europe, also known as the Helsinki Commission, today announced the following hearing: COUNTERING OLIGARCHS, ENABLERS, AND LAWFARE Wednesday, April 6, 2022 2:30 p.m. Dirksen Senate Office Building Room 562 Watch live: www.youtube.com/HelsinkiCommission As influential proxies of Russian dictator Vladimir Putin, Russian oligarchs work to weaken Western democracies from within. They pay Western enablers—especially lawyers and lobbyists—millions to use their standing in democratic societies to generate policies favorable to the authoritarian regime in Russia and to silence its critics. This hearing will examine ways to counter tactics oligarchs use to launder their money and reputations and stifle dissent. Witnesses will discuss their experiences investigating oligarchs and enablers, as well as the risks of doing so, which include abusive lawsuits filed by Western lawyers on behalf of Putin’s proxies. The following witnesses are scheduled to testify: Shannon Green, Executive Director, USAID’s Anti-Corruption Task Force; Senior Advisor to the Administrator Bill Browder, Head, Global Magnitsky Justice Campaign Daria Kaleniuk, Executive Director, Anti-Corruption Action Centre Scott Stedman, Founder, Forensic News Anna Veduta, Vice President, Anti-Corruption Foundation International
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in the news
With oligarchs in the crosshairs, alleged Western 'enablers' attract fresh scrutiny
Thursday, March 24, 2022As governments scramble to seize high-profile assets owned by Russian oligarchs, a quiet effort is gaining momentum in the West to target their alleged “enablers” – the lawyers, lobbyists and money-handlers who critics say help them hide, invest and protect their vast wealth in U.S. and European institutions. “The yachts and jets and villas get the most attention, but a lot of the oligarchs’ money is in private equity and hedge funds – places we can’t see,” said Maira Martini, a researcher with the corruption watchdog Transparency International. “That’s the money that really matters to them.” For decades, wealthy business tycoons with close ties to Russian President Vladimir Putin have enlisted the services of reputable bankers and lawyers in the West to navigate loopholes that obscure their identity. While it's not necessarily illegal to use obscure entities and agents to protect finances, critics say the laws need to be strengthened to create more transparency. rganized Crime and Corruption Reporting Project, a global investigative reporting platform that focuses on corruption, organized crimes and illicit financing, claims to have uncovered over 150 assets worth $17.5 billion held by 11 Russian elites and their alleged enablers, while a Forbes report identified more than 82 properties across the world -- a collective of $4.3 billion -- held by 16 sanctioned Russian oligarchs. Assets that have surfaced are likely only a fraction of these oligarchs' actual wealth. The true extent is difficult to track because they often use a convoluted network of shell companies, obscure entities and stand-ins to keep their finances hidden, experts said. But now, with war raging in Ukraine, lawmakers and corruption watchdogs are calling on governments to close those loopholes and crack down on the middlemen who know how to exploit them. “Putin’s oligarchs cannot operate without their Western enablers, who give them access to our financial and political systems,” said Rep. Steve Cohen, D-Tenn. “These unscrupulous lawyers, accountants, trust and company service providers and others need to do basic due diligence on their clients to ensure that they are not accepting blood money. This isn’t rocket science – it is common sense policy to protect democracy.” In Washington, Cohen and others have introduced the ENABLERS Act, which would require real estate brokers, hedge fund managers and other entities to “ask basic due diligence questions whenever somebody comes to them with a suitcase full of cash,” said Rep. Tom Malinowski, D-N.J., the lead sponsor of the bill. The International Consortium of Investigative Journalists, a global network of journalists and newsrooms that have tracked the wealthy's tax havens and financial secrecy, has identified at least a dozen networks of facilitators, offshore agents and banks across the world that have allegedly helped Russia's elites move and hide their money based on its analyses of public records and leaked financial documents the group has obtained over the past decade. This includes a range of actors, from global offshore law firms that create shell companies and other obscure entities to help wealthy Russians keep their finances clouded, to one-man shops in offshore tax havens that help set up "nominee" shareholders and paid stand-ins to conceal the real owners of entities. ICIJ also points to the roles of major law firms in helping shape the modern tax avoidance system as well as the roles of big financial institutions and banks in helping wealthy Russians move their money. Last year, The Washington Post, as part of its collaboration with ICIJ's Pandora Papers project, reported on how South Dakota, with its limited oversight, vague regulations and trust secrecy, has become a tax haven for secretive foreign money. Malinowski stressed that the United States "has become one of the easiest places in the world for corrupt kleptocrats around the world to hide money." “What we've basically allowed is a system where people can steal their money in countries without the rule of law and then protect their money in countries like ours where they can count on property rights and courts and privacy rules to safeguard his loot for life," Malinowski said. "We should not be complicit in the theft that supports dictatorships like Putin." Experts warned that sanctions and asset seizures, while effective in the short term, may be toothless over time if secrecy loopholes remain in place. On Wednesday, Transparency International published an open letter calling on Western leaders to take steps to stem rules that foster opacity. “To disguise their wealth and keep them out of the reach of law enforcement authorities, kleptocrats will turn to lawyers, real estate agents, banks, crypto-service providers and banks in your countries,” the letter reads. “You must redouble your supervision efforts over the gatekeepers of the financial sector.”
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statement
Chairman Cardin Emphasizes the Importance of the Global Magnitsky Act
Wednesday, March 23, 2022Madam President, reserving the right to object to the request from the Senator from Idaho, it is my understanding that the Senator’s modification would not include provisions that were included in the Housepassed legislation that modifies the global Magnitsky sanction regime. I just would like to speak for a moment, if I might. There is no question that we stand with the people of Ukraine against the unprovoked attack by Mr. Putin. We are inspired every day by the courage of the Ukrainian people and by their inspirational leader, President Zelenskyy. The United States has shown leadership, and I congratulate the Biden administration. We have led the free world in providing defensive lethal weapons to Ukraine to defend itself. We have provided humanitarian assistance, joining the global community, including dealing with 3 million Ukrainians that are now refugees in other countries and 10 million that have been displaced as a result of Mr. Putin’s unprovoked attack. And we have led on sanctions. We have led in getting the global unity to impose sanctions against not just the Russian sectors, but also against individuals. And when Mr. Zelenskyy spoke before the Members of Congress, he specifically mentioned the importance of these sanctions; and he asked us to expand those covered by the sanctions to include the enablers, those that are enabling Mr. Putin—the oligarchs—to be able to fund his aggression against Ukraine. So what did the House send over to us? In their bill, they sent over a global Magnitsky modification. It is identical to legislation that was filed by Senator PORTMAN and myself that included the revocation of PNTR for Russia, along with the global Magnitsky. First and foremost, it removes the sunset that is in the legislation that would sunset this year. Mr. Zelenskyy asked for us to be resolved in being willing to stand up to Mr. Putin, that it would take some time. A clear message is that we remove the sunset on the global Magnitsky statute. And we know how difficult it is to get legislation passed in this body. It also expands the global Magnitsky to include the enablers—exactly what Mr. Zelenskyy asked us to do—those that enabled—the oligarchs that allowed him to be able to finance this. The language that is included in here is very similar to the language that was included in President Trump’s Executive order. This is critical legislation. Now, let me just tell you how appropriate it is that it is included in a PNTR bill—because the first Magnitsky sanction bill—and Senator WYDEN was very important in getting this done—was included in the original PNTR bill for Russia, and we were able to get it done at that time. We then made it a global Magnitsky, and my partner on that was the late Senator McCain. It has always been bipartisan. My partner now is Senator WICKER. The two of us have joined forces to make sure we get it done now. It is critically important in order to impose banking restrictions on those that are targeted under the global Magnitsky, as well as visa restrictions on being able to travel. How important is it? Ask Mr. Usmanov, who is one of the principal oligarchs to Mr. Putin, who solves Mr. Putin’s business problems. Guess how he solves those problems? Well, his yacht has now been confiscated in Germany. That is how important these sanctions are and how we have to move them forward. So, if I understand my colleague’s request, it would deny the opportunity for us to act on the global Magnitsky, which Mr. Zelenskyy has specifically asked us to do. We would lose that opportunity. We would be sending this bill back to the House that is not in session, which means there will be a further delay in repealing PNTR for Russia, which is something we need to do now, today. We can get it to the President for signature today under the majority leader’s request. And as the majority leader has indicated, I support the energy ban—I support the Russian energy ban. President Biden has already taken steps to do that. And I agree with my colleague from Idaho. I would like to incorporate that in statute, but there is no urgency to do that as there is on repealing PNTR and the global Magnitsky. That is the urgency. That is what we need to get done today. That is what we can get to the President this afternoon under the majority leader’s request, and that will be denied if my friend from Idaho’s request were granted. So, for all those reasons, I object.
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in the news
Olympic skater’s entourage could face trouble under US law
Monday, February 14, 2022ZHANGJIAKOU, China (AP) — Legal troubles for the coach and others in Russian figure skater Kamila Valieva’s orbit could emerge in the United States even after her doping case from the Beijing Games has been resolved. Anti-doping experts say the episode falls under the scope of a recently enacted U.S. law that criminalizes doping schemes in events involving American athletes. The law calls for fines of up to $1 million and prison sentences of up to 10 years for those who participate in doping programs that influence international sports. “Doctors and coaches who give performance-enhancing drugs to athletes are directly liable” under the new law, said one of its authors, attorney Jim Walden. “They are at risk of jail, steep fines, and forfeiture. And I suspect the FBI is already hot on this trail.” On Monday, The Court of Arbitration for Sport cleared Valieva to compete in the women’s competition this week. Still unresolved is what to do about the gold medal the Russians won — with Valieva as the headliner — in last week’s mixed team competition. Because Valieva is 15, and considered a “protected person” under global anti-doping rules, the sanctions against her could be light. That does not exempt her entourage from possible anti-doping penalties beyond the possible stripping of the medal from the Russian team. Walden and others expect those same people to come under investigation by U.S. law-enforcement, as well. “The latest Russian doping scandal in Beijing is exactly why we passed the Rodchenkov Anti-Doping Act. Doping is corruption,” said Sen Ben Cardin, D-Maryland, who is involved in anti-doping issues. Walden represents the bill’s namesake, Grigory Rodchenkov, the Russian lab director who blew the whistle on the complex, widespread Russian doping scheme designed to help the country win medals at the 2014 Sochi Games and elsewhere. Rodchenkov now lives in hiding. The Rodchenkov Act wasn’t designed to go after athletes. It targets coaches, doctors and other members of an athlete’s entourage who are accused of arranging doping programs in any event that involves U.S. athletes, sponsors or broadcasters. The bill, supported by Walden, the U.S. Anti-Doping Agency and others, passed by unanimous consent through both houses of Congress and was signed into law in December 2020. It was considered a remarkable achievement considering the polarization in U.S. politics. Officials at the White House drug control office in both the Trump and Biden administrations have been critical of global anti-doping regulators. They threatened to withhold funding from the World Anti-Doping Agency, but recently paid their remaining dues despite some major concerns. The law’s first test came last month when federal officials charged a doctor of providing drugs to an “Athlete A,” who The Associated Press identified as Nigerian sprinter Blessing Okagbare. The IOC and WADA lobbied against parts of the bill. Their main argument was that it gave U.S. law enforcement too much leverage in policing anti-doping cases that occur outside its own borders. This case — a Russian who was found to have doped on Dec. 25 at a national championship — appears, at first glance, to fit that profile. WADA said it took six weeks for officials to receive the test from a lab in Sweden because Russia’s anti-doping agency (RUSADA) failed to flag it as a priority. That Valieva was allowed to compete at the Olympics turns it into an international episode. WADA said in a statement that it was “disappointed in the ruling,” and that it, too, would “look into” Valieva’s support personnel. Russia’s anti-doping agency has also begun an investigation. But critics of WADA and the IOC argue the bill was passed because the international anti-doping system has proven it can’t police its own. They point to the sanctions handed to Russia over the past eight years as Exhibit A. Part of those sanctions resulted in years’ worth of suspensions and reforms for RUSADA, which is overseeing this case. Critics contend the case involving Valieva might not have erupted had the country — whose athletes are competing in Beijing under the banner of “Russian Olympic Committee” due to the sanctions — been penalized appropriately. “If I were a betting man, I’d say there’s a 95% chance that this is a good case for” the law, said Rob Koehler, the head of the advocacy group Global Athlete. Though there are harsh penalties under the law, it’s hard to imagine U.S. authorities would ever get their hands on Russians if they were indicted. Still, an indictment would have an impact. It could curtail their ability to travel or coach outside of Russia, since the United States has extradition deals with dozens of countries across the globe. Valieva tested positive for the banned heart medication trimetazidine. “We need more facts, but you can envision a case like this under Rodchenkov,” USADA CEO Travis Tygart said. “This drug doesn’t just show up out of nowhere. Assuming the facts play out that someone was involved in giving it to her to enhance performance, it fits like a glove.”
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press release
Chairman Cardin on Doping Scandal At 2022 Winter Olympics in Beijing
Friday, February 11, 2022WASHINGTON—Helsinki Commission Chairman Sen. Ben Cardin (MD) released the following statement: “The latest Russian doping scandal in Beijing is exactly why we passed the Rodchenkov Anti-Doping Act. Doping is corruption. It defrauds clean athletes and honest sponsors, and insults the spirit of international competition. “Putin—like other strongmen—regularly uses corruption as a tool of foreign policy. The Olympics are no exception. I call on the U.S. Department of Justice to investigate all alleged doping crimes during the Beijing Olympics and hold the perpetrators responsible under the Rodchenkov Act.” The Rodchenkov Anti-Doping Act, which became law in December 2020, criminalizes doping in international sport. In January 2022, the Federal Bureau of Investigation announced the first charges filed under the Rodchenkov Anti-Doping Act for a doping scheme at the Tokyo Olympics.
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press release
Helsinki Commission Marks One-Year Anniversary of Navalny’s Imprisonment
Friday, January 14, 2022WASHINGTON—Ahead of the one-year anniversary of Alexei Navalny’s arrest on January 17, Helsinki Commission Chairman Sen. Ben Cardin (MD), Co-Chairman Rep. Steve Cohen (TN-09), Ranking Member Sen. Roger Wicker (MS), and Ranking Member Rep. Joe Wilson (SC-02) issued the following statements: “In the past year, while Alexei Navalny has remained unjustly imprisoned, the Kremlin has doubled down on its absurd persecution of his anti-corruption organizations as ‘extremist,’” said Chairman Cardin. “Nevertheless, Mr. Navalny’s colleagues, friends and allies, in the face of grave threats, continue to risk their own freedom to expose Putin’s thuggery across Russia.” “Putin would not have gone to the trouble to imprison Alexei Navalny unless he perceived a serious threat to his power,” said Co-Chairman Cohen. “Mr. Navalny and his team across Russia were instrumental in revealing the ill-gotten gains of Putin and his cronies. This tells you all you need to know about why they are a target.” “During his imprisonment, Alexei Navalny has used his own suffering to call attention to the plight of the hundreds of other political prisoners in Russia,” said Sen. Wicker. “We have not forgotten him or others who are persecuted for their beliefs, and we look forward to a Russia in which they finally are free.” “Despite the Kremlin’s attempts to push Alexei Navalny out of public view and prevent him from challenging Putin, we will not stop calling for his release,” said Rep. Wilson. “Russians who challenge Putin should not have to fear for their safety in their own country.” In August 2020, Alexei Navalny was the victim of an assassination attempt by the FSB that used a Russia-developed chemical weapon in the Novichok family. He spent months recovering after being flown to Berlin for treatment. Navalny returned to Moscow on January 17, 2021, and was arrested at the airport. In February, a Russian judge sentenced Navalny to three and a half years in a prison colony for violating the terms of a suspended sentence related to a 2014 case that is widely considered to be politically motivated. Previous time served under house arrest reduced his prison time to two years and eight months. In June, the Moscow City Court ruled that Alexei Navalny’s Anti-Corruption Foundation and its regional networks would henceforth be considered “extremist” organizations, essentially outlawing these groups and criminalizing their activity. In September, Russian authorities opened a new probe against Navalny and his closest associates for creating and directing an “extremist network.” This, combined with other ongoing criminal investigations, could lead to additional jail time for Navalny and threaten those associated with his organizations, many of whom have been forced to flee Russia.
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press release
Helsinki Commission Welcomes First Charges Under the Rodchenkov Anti-Doping Act
Thursday, January 13, 2022WASHINGTON—Following the first charges filed under the Helsinki Commission’s Rodchenkov Anti-Doping Act for a doping scheme at the Tokyo Olympics, Helsinki Chairman Sen. Ben Cardin (MD), Co-Chairman Rep. Steve Cohen (TN-09), Ranking Member Sen. Roger Wicker (MS), Ranking Member Rep. Joe Wilson (SC-02), and former Commissioner Rep. Michael Burgess (TX-26) issued the following statements: “Swift utilization of the Rodchenkov Anti-Doping Act is exactly what we hoped for with this legislation,” said Chairman Cardin. “I thank the U.S. attorneys and investigators who put in long hours of work pursuing this case. They understood the importance of cleaning up cheating and corruption in international sports, which often is a tool of autocratic governments. These first charges are only the beginning and serve as a very public part of the global anti-corruption strategy supported by the Biden administration and spearheaded by the Helsinki Commission for many years.” “I welcome this first enforcement action under the Rodchenkov Act and urge the Department of Justice to continue unraveling the corruption that infects international sport,” said Co-Chairman Cohen. “Sports should bring people together and celebrate achievement—they should not be an opportunity for fraud. My own GOLD Act would expand the Rodchenkov Act and I call on my colleagues to pass it swiftly.” “These charges are the culmination of years of work to hold administrators, doctors, and officials accountable for their role in corrupting international sport,” said Sen. Wicker. “They demonstrate that our new approach is working. I thank the public servants at the U.S. Department of Justice and urge them to continue their efforts to enforce this critically important law.” “Dictators and their cronies interfere in everything we hold dear, including sports. They view victory in international sport as a way to trumpet the greatness of their oppressive systems. Cheating in sports is part of their foreign policy,” said Rep. Wilson. “With the Rodchenkov Act, we are holding these corrupt networks to account. I applaud the Department of Justice for prosecuting fraudsters at the Tokyo Olympics and call on them to do the same in Beijing.” “From a young age, professional athletes dedicate themselves to becoming the best in their sport. For those skilled enough to make it to the Olympics, their efforts should not be tainted by doping schemes,” said Rep. Burgess. “Yesterday’s charges provide hope to those that have been defrauded. They would not have been made possible without the Rodchenkov Anti-Doping Act. I worked to enact this law to maintain sport integrity and keep all American athletes safe and protected from fraud. Further, yesterday’s action is a win for athletes such as Katie Uhlaender, whose moving testimony spurred Congress into action. I hope that yesterday’s charges are only the beginning of combatting fraud in international sport competition.” “This is exactly the kind of action we hoped for following the enactment of this groundbreaking anti-doping legislation,” said Dr. Grigory Rodchenkov, the former head of Moscow’s anti-doping laboratory and the Russian whistle-blower after whom the law is named. “We are grateful to United States Attorney Damian Williams for taking this monumental first step toward restoring the Olympic games to their role as a cherished forum for nations to convene in the spirit of peace, fairness and cooperation. We cannot continue to allow corrupt states and the overlords of sport commerce to exploit our athletes and traditions of peace to advance the economic and geopolitical interests of the few. Yesterday's action is entirely appropriate and puts real teeth into anti-doping enforcement, while also setting an example of international cooperation and fair play for future generations.” The Rodchenkov Anti-Doping Act, which became law in December 2020, criminalizes doping in international sport. In July 2021, the Helsinki Commission hosted a hearing on the enforcement of the Rodchenkov Act at the Tokyo Olympics. Earlier that year, Dr. Rodchenkov spoke out publicly for the first time about the impact of the Rodchenkov Anti-Doping Act on a Helsinki Commission podcast, calling it a “game-changer.” On Wednesday, the New York Field Office of the Federal Bureau of Investigation (FBI) announced the charges against Eric Lira, who they allege “obtained various performance enhancing drugs (‘PEDs’) and distributed those PEDs to certain athletes in advance of, and for the purpose of cheating at, the 2020 Olympic Games held in Tokyo in the summer of 2021.”
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press release
Helsinki Commission Calls for Peaceful Solution in Kazakhstan
Thursday, January 06, 2022WASHINGTON—In response to the violent clashes between protesters and authorities in Kazakhstan, Helsinki Commission Chairman Sen. Ben Cardin (MD), Co-Chairman Rep. Steve Cohen (TN-09), Ranking Member Sen. Roger Wicker (MS), and Ranking Member Rep. Joe Wilson (SC-02) issued the following joint statement: “We are deeply concerned about the situation in Kazakhstan and condemn the violence that has accompanied widespread protests across the country. The reported deaths of both protesters and police are extremely disturbing. “We call on President Tokayev and Russian troops not to use disproportionate force against protesters. At the same time, we call on protesters to cease any violent attacks against police, public buildings, or private property. “We urge both sides to find a peaceful way to resolve this crisis. We also urge President Tokayev to ensure respect for human rights, especially freedom of the media and the right to due process for those who have been arrested in connection with the protests.” A wave of protests began on January 2 in the western part of the oil- and gas-rich country in response to a sharp increase in the price of liquefied petroleum gas (LPG). The unrest spread quickly to other parts of Kazakhstan and grew increasingly violent. Authorities deployed tear gas and stun grenades against protesters and blocked internet access in an effort to quell the unrest, while demonstrators attacked government offices. There are reports of deaths among both law enforcement and protesters, as well as of widespread looting. Kazakhstani President Kassym-Jomart Tokayev declared a nationwide state of emergency on January 5, accepted the resignation of his cabinet, and reduced LPG prices, but protests continued. The Collective Security Treaty Organization (CSTO), a security alliance among select former Soviet states including Russia, is sending Russian troops at the request of President Tokayev. The impact of the COVID-19 pandemic has exacerbated already strained economic and social disparities, and demonstrators are demanding increased political liberalization and accountability for government corruption. OSCE observers concluded that the 2021 parliamentary elections “lacked genuine competition” and underscored the need for political reform.
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press release
Helsinki Commission Welcomes Passage of Trap Provision in 2022 National Defense Authorization Act
Wednesday, December 15, 2021WASHINGTON—Helsinki Commission Chairman Sen. Cardin (MD), Co-Chairman Rep. Steve Cohen (TN-09), Ranking Member Sen. Roger Wicker (MS), and Ranking Member Rep. Joe Wilson (SC-02) today welcomed the passage of the Transnational Repression Accountability and Prevention (TRAP) provision as part of the National Defense Authorization Act (NDAA) for Fiscal Year 2022. “By co-opting and undermining the rule of law to harass and intimidate dissidents and political opponents, corrupt regimes threaten our national security,” said Chairman Cardin. “Our provision will make it U.S. policy to fight exploitation of INTERPOL, including by naming and shaming member states that abuse its mechanisms. This amendment will protect the United States, our allies, and all those fighting or fleeing authoritarian regimes from extraterritorial and extrajudicial abuse.” “We’ve seen time and again how corrupt dictators take advantage of INTERPOL to intimidate and harass those who expose their immoral deeds, even after they have fled their homes and their country in search of safety,” said Co-Chairman Cohen. “The TRAP provision will protect these dissidents and ensure that our own institutions are not used against us—or them.” “There is no reason for any democracy, especially the United States, to be forced to play a part in authoritarian regimes’ blatant abuse of INTERPOL Red Notices,” said Sen. Wicker. “I am pleased Congress has taken action to name publicly the abusers, such as Russia and China, and prevent American law enforcement from having to do the dirty work of these repressive autocrats.” “INTERPOL should enable us to crack down on criminals worldwide,” said Rep. Wilson. “Instead, the criminals have taken over the institution, using it to target those who oppose them. The TRAP provision will protect the United States from this abuse and ensure that we do everything we can to restore the rule of law to INTERPOL.” “Increasing transparency and accountability at INTERPOL underscores the bipartisan commitment of the United States Senate to push back against countries, large or small, seeking to distort legitimate law enforcement cooperation to instead pursue political opponents or personal vendettas,” said Sen. Bob Menendez (NJ), Chairman of the Senate Foreign Relations Committee. “This new provision will strengthen protections for human rights defenders, political dissidents, and journalists, and pave the way for the international community to join the United States in pressing for reforms and standing against the abuse of INTERPOL Red Notices by China and Russia, among others.” The Transnational Repression Accountability and Prevention (TRAP) Act was introduced in 2021 in the Senate by Sen. Wicker and Chairman Cardin and in the U.S. House of Representatives by Co-Chairman Cohen and Rep. Wilson. The legislation makes fighting abuse of INTERPOL a key goal of the United States at the organization, mandates that the United States name the worst abusers of INTERPOL and examine its own strategy to fight INTERPOL abuse, and protects the U.S. judicial system from authoritarian abuse.
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statement
The Centrality of the Battle Against Corruption in the Democracy Summit
Thursday, December 09, 2021Mr. CARDIN. Mr. President, I rise today--on International Anti-Corruption Day, as declared by the United Nations--to speak about the Democracy Summit that President Biden is convening today and tomorrow, to which government leaders from 110 countries have been invited. It will also include a range of leading civil society actors, business and labor leaders, civic educators and investigative journalists, philanthropists, and nonprofit leaders as speakers and participants. Undeterred by the Coronavirus pandemic, the Biden administration has organized a global virtual gathering with participants tuning in from six continents. It is an ambitious, even audacious, undertaking. And it comes at a critical time, as the world is now 15 years into a global democratic recession, according to the well-respected watchdog organization Freedom House. In its widely cited annual survey of freedom, it has reported that, in each of the past 15 years, more countries have seen their democracy scores decline than the number of countries whose scores have improved. And last year, during the height of the global pandemic, nearly 75 percent of the world's population lived in a country that saw its democracy score deteriorate last year. For a President who has pledged to put democratic values at the heart of American foreign policy, it is fitting and proper that he should convene the democratic leaders of the world and other relevant parties to plan the revitalization of global democracy. Of course, readers of the annual Freedom House assessment will know that there are not 110 well-functioning, effective democracies in the world and that way too many poorly performing nominal democracies have been invited to this gathering, thus diluting its character. While some conspicuously back-sliding countries, like Hungary and Turkey, have not been invited, there are numerous back-sliding pseudo-democracies, including the current governments of the Philippines and Pakistan, the Democratic Republic of the Congo and Zambia, Bolsinaro's Brazil among others, that unfortunately have been included. Then there is India, which dropped from Free to Partly Free status in Freedom in the World 2021, which contributes significantly to the fact that 75 percent of the world's people last year resided in countries moving away from democracy. Yet the government of Prime Minister Narendra Modi, after its sustained crack down on critics during the past 2 years and the atrocious scapegoating of Muslims, who were disproportionately blamed for the spread of the virus and faced attacks by vigilante mobs, has been invited to the Democracy Summit. Members of the Senate will also know that there has been precious little information sharing with this body about the contours of the summit. There has been no discussion with us about the invitation list or the way forward from this week's summit, which I see as a missed opportunity for the Biden administration. On the other hand, I was proud to be able to participate in a side event convened last Friday morning by the House Democracy Partnership for a discussion with legislators from other countries about the important role that parliaments can and do play in leading their governments to address the enduring and universal problem of corruption. I want to congratulate Representative David Price of North Carolina for his leadership of that important initiative and for convening a productive international exchange of views last week in the run up to the President's gathering. One of the main take-aways from that webinar was that it is always incumbent on the legislatures of the world to press forward with laws that instruct and enable executive branch officials to elevate their work to combat corruption. This is the main topic of my intervention today, to discuss one of the hopeful aspects of the President's Democracy Summit, which is the central role that the battle against corruption is playing in the proceedings and to underscore the leading role that we in the Congress must take to compel further action from our colleagues in the executive branch. History tells us that they will likely not do so on their own. In fact, the history of anti-corruption laws in the United States is replete with fervent opposition from the executive branch, whether during Democratic administrations or Republican, to virtually every measure proposed in the Congress. This was true of the Foreign Corrupt Practices Act of 1977, which barred U.S. companies and their officials from paying bribes in foreign countries. The executive and the business community declared that this would end the ability of American corporations to do business around the world, which turned out not to be true, of course. Indeed, it became in due course a foundational element in the United Nations Convention Against Corruption--UNCAC--and other elements of the international architecture of the battle against corruption. Yet the executive has continued to oppose every measure introduced in Congress to address kleptocrats and human rights abusers, including the original Sergei Magnitsky Rule of Law Accountability Act of 2012 and its successor, the Global Magnitsky Human Rights Accountability Act of 2016. This is especially ironic because, since the enactment of the 2016 law, both Republican and Democratic administrations have been utilizing the law frequently and to good effect. Indeed, today, Secretary of State Tony Blinken announced that--on the occasion of International anti-Corruption Day--the Department of State has designated 12 individuals from 7 countries for significant corruption and also named another 18 family members. In five of the designations, the Treasury Department has invoked Global Magnitsky sanctions for their roles in corruption. The Democracy Summit is being built around three principal themes: defending against authoritarianism, promoting respect for human rights, and fighting corruption. Corruption is the means and the method for kleptocratic rulers around the world to steal from their own people and to stash their wealth in safe havens, most often in the democratic Western world. This is directly and intimately connected to the undermining of the rule of law and the repression of human rights in these same countries--which is why I was so pleased to see that, on June 3 of this year, President Biden declared the fight against corruption to be “a core national security interest.” And he directed his National Security Advisor to develop a comprehensive strategy to address the problem. Accordingly, earlier this week, in the run-up to the Democracy Summit, the White House published the first “United States Strategy on Countering Corruption.” The strategy is a 38-page document that describes several major lines of effort in the new strategy. Among the document's commitments are pledges to crack down on dirty money in U.S. real estate, to require certain gatekeepers to the U.S. financial system such as attorneys, accountants, and investment advisers to perform greater due diligence on their prospective clients, and to make it a crime for foreign officials to solicit or accept bribes from U.S. companies. If this strategy is matched with appropriate resources, it has the power to fundamentally change the calculus for kleptocrats and redirect stolen funds back to the original problems they were meant to fund such as fighting the pandemic, countering the effects of climate change, funding economic development and opportunity. We in the Congress can do our part by passing pending legislation that would further strengthen the hand of the U.S. Government in this effort. While there are a number of valuable proposals pending, there are two that I suggest would be the most impactful and necessary. The first is the Combating Global Corruption Act, S. 14, which I introduced and was cosponsored by my Republican friend from Indiana, Mr. Young, which would create an annual global report, modeled in some ways on the Trafficking-in-Persons report, in which the State Department would assess how earnestly and effectively the governments of the world are living up to the commitments they have made in international treaties and covenants. The report would also place the countries of the world in 3 tiers, according to how well they are doing. And for those in the lowest performing tier, likely the governments that are actually kleptocracies, the bill asks that the executive branch assess government officials in those places for possible designation for Global Magnitsky sanctions. The second is the Global Magnitsky Human Rights Accountability Act, S. 93, which I introduced and was cosponsored by my Republican friend from Mississippi, Mr. Wicker, which would permanently reauthorize the existing Global Magnitsky framework and to widen the aperture of the law to encompass more bad actors and actions. Both these measures have been reported favorably and unanimously by the Senate Committee on Foreign Relations, and both are ready for final action by the Senate. As President Biden convenes the Democracy Summit today, with its major focus on the battle against corruption, it would be timely for the Senate to demonstrate our resolve as well. So I hope that my colleagues here in the Senate will agree in the coming days to adopt these two bills, so that we may take them to the House of Representatives, where they also enjoy bipartisan support, and get them onto the desk of President Biden during the coming year. Participating governments in the Democracy Summit, including the United States, are making commitments to strengthen their own democracies in the next 12 months, in advance of a second summit that is envisioned for next December. The American position will be enhanced if we have enacted these laws before then. Mr. President, I ask unanimous consent that selected excerpts of the “United States Strategy on Countering Corruption” be printed in the Congressional Record.
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briefing
Uniting Against Corruption
Tuesday, December 07, 2021At a virtual kickoff event on December 7, leaders of the U.S. Caucus against Foreign Corruption and Kleptocracy, the EU Parliament Anti-Corruption Intergroup, and the UK All-Party Parliamentary Group on Anti-Corruption and Responsible Tax formally launched the Inter-Parliamentary Alliance against Kleptocracy. Members of the alliance are politicians leading the fight in their respective parliaments against corruption and kleptocracy. The launch immediately preceded President Joe Biden’s December 9 – 10 Summit for Democracy, where approximately 110 countries committed to fighting corruption and renewing democratic values. Helsinki Commission Chairman Sen. Ben Cardin (MD), who has championed anti-corruption efforts throughout Congress, welcomed the formation of the alliance at the kickoff event. The event began with opening remarks from Chairman Cardin, and then featured remarks from several other parliamentarians: U.S. Representatives Tom Malinowski (NJ-07) and Helsinki Commission Ranking Member Joe Wilson (SC-02); Members of the UK Parliament Margaret Eve Hodge (Barking) and Andrew John Bower Mitchell (Sutton Cornfield); and Members of the European Parliament Daniel Freund (Germany), Katalin Cseh (Hungary), and Lara Wolters (Netherlands). Helsinki Commission Senior Policy Advisor Paul Massaro moderated the discussion. Chairman Cardin traced the history of successful anti-corruption legislation in the United States. He touched on the Foreign Corrupt Practices Act of 1977, the Money Laundering Control Act of 1986, and the Global Magnitsky Act of 2016 as examples both of bipartisan cooperation and of U.S. leadership in the international fight against corruption. The next step, he said, is dealing with enablers. “These are the accountants, the lawyers, the financial advisers. They allow kleptocrats to be able to do their corruption through the use of rule of law of other countries,” he noted. Rep. Malinowski stressed the connection between corruption and authoritarianism: “Corruption is the reason for being for most authoritarian regimes. It sustains them. It profits them.” Nonetheless, he observed that corruption is also a vulnerability for such regimes, as citizens ultimately refuse to accept kleptocratic leaders. Rep. Malinowski then discussed the ENABLERS Act, which seeks to close loopholes that enable kleptocrats to hide their money. MP Hodge echoed the need to address the enablers of corruption, the structures “through which the world’s crooks and kleptocrats take their stolen money and let it disappear.” She then explained her push, along with MP Mitchell and others, for a public register of beneficial ownership to combat the role of property in UK money laundering. MP Mitchell further discussed the push for a public register of beneficial ownership, a particularly important policy as the UK “may be responsible for up to 40 percent of the money laundering that goes on in the world.” MP Freund continued the discussion of transparency, emphasizing that the European Parliament cannot see the final beneficiaries of EU-funded projects. He welcomed the possibility of working with the new U.S. administration and cited the success of the Magnitsky sanctions as an instance of effective U.S. leadership against kleptocracy and corruption. Rep. Wilson echoed MP Freund’s enthusiasm for cooperation, calling corruption “a bipartisan and cross-border problem” that requires cooperative solutions. Like Rep. Malinowski, he noted the link between corruption and authoritarianism and suggested that closing the loopholes available to authoritarian governments requires international cooperation. MP Cseh built on the previous discussion of authoritarianism, adding that corruption is inseparably linked with human rights abuses. “Autocrats and oligarchs oppress their people so that they can enrich themselves… and they are desperately holding onto power because they want to escape prosecution for corruption,” she said. She then drew on her experience as a Hungarian opposition politician to discuss the connection between corruption and democratic backsliding. MP Wolters delivered the final remarks of the event on the new state of the EU in light of Hungary’s democratic backsliding. “I don’t think the EU was ever designed with the idea that we would end up with strange bedfellows internally within our system,” he said. This breach in EU sanctity entails new problems as these “strange bedfellows” have access to funding meant improve the lives of EU citizens. The event concluded with questions from the audience. Chairman Cardin and Rep. Malinowski responded to question on the resources available to victims of corrupt and kleptocratic regimes, and MPs Freund and Cseh addressed the potential for proactive measures against interference by kleptocratic regimes in legislatures. The Inter-Parliamentary Alliance against Kleptocracy aims to build a transparent and accountable global financial system; promote government transparency, allowing for effective public oversight; disable transnational corrupt networks, while deterring the movement of dirty money into democracies; support the role of free media and journalists in exposing the risks from kleptocracy; and advocate for strong anti-corruption standards for public officials and their enforcement. Planned projects include coordinating targeted sanctions and public visa bans, synchronizing anti-money laundering frameworks, harmonizing cross-border investigations into grand corruption, and promoting robust anti-corruption ethics frameworks for public officials. Members of the Inter-Parliamentary Alliance against Kleptocracy subscribe to the principles that democratic states are based on the rule of law and must safeguard this system against the taint of corruption and illicit finance; that kleptocracy is an authoritarian governance model in which political leaders routinely engage in illicit self-enrichment, maintain power through corrupt patronage networks, exploit democracies to conceal and protect stolen assets, and use strategic corruption as a tool of foreign policy; and that kleptocracy poses the most profound challenge for democratic governance in the 21st century as it corrodes the rule of law from within.
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press release
Inter-Parliamentary Alliance Against Kleptocracy to Unite Political Leaders in Transatlantic Battle Against Corruption
Friday, December 03, 2021BRUSSELS, LONDON, WASHINGTON—At a virtual kickoff event on December 7, leaders of the U.S. Caucus against Foreign Corruption and Kleptocracy, the EU Parliament Anti-Corruption Intergroup, and the UK All-Party Parliamentary Group on Anti-Corruption and Responsible Tax will formally launch the Inter-Parliamentary Alliance against Kleptocracy. Members of the alliance are politicians leading the fight in their respective parliaments against corruption and kleptocracy. The launch immediately precedes to President Joe Biden’s December 9 – 10 Summit for Democracy, where approximately 110 countries will commit to fighting corruption and renewing democratic values. Helsinki Commission Chairman Sen. Ben Cardin (MD), who has championed anti-corruption efforts throughout Congress, will welcome the formation of the alliance at the kickoff event. UNITING AGAINST CORRUPTION Launch of the Inter-Parliamentary Alliance against Kleptocracy Tuesday, December 7, 2021 11:00 a.m. ET Register: https://bit.ly/3IsbbvY “Countering corruption—a clear national security threat—is one of the three pillars of the upcoming Summit for Democracy. For me, it is an essential aspect of the meeting,” said Chairman Cardin. “It isn’t enough that the United States prioritizes the fight against corruption. To curb this global scourge, democracies must work together. I welcome the formation of the Inter-Parliamentary Alliance against Kleptocracy, which will help harmonize our approaches to countering corruption and closing our systems to dirty money.” The Inter-Parliamentary Alliance against Kleptocracy is an alliance of legislative groups committed to countering the threat of global corruption. The new alliance will focus on fighting kleptocracy, an authoritarian governance model in which political leaders routinely engage in illicit self-enrichment, maintain power through corrupt patronage networks, exploit democracies to conceal and protect stolen assets, and use strategic corruption as a tool of foreign policy. Because the fight against foreign corruption spans the globe, the alliance will enable members and staff to share perspectives and coordinate efforts to confront the growing threat of authoritarian corruption. The alliance will hold periodic events, sponsor informal roundtables and briefings with leading experts, and coordinate initiatives across borders. “Nothing gets under the skin of dictators more than democracies working together—and confronting corruption is the best way to align ourselves with public sentiment in their countries. This parliamentary alliance will help ensure that lawmakers from the world’s democracies are working together to pass and enact laws against amassing and hiding illicit wealth,” said Rep. Tom Malinowski (NJ-07), Co-Chair of the U.S. Caucus against Foreign Corruption and Kleptocracy. “Corruption is at the heart of all human rights abuse. Journalists are silenced and civil society is attacked because these individuals threaten to expose the corruption that underpins all strongmen,” said Helsinki Commission Co-Chairman Rep. Steve Cohen (TN-09), a member of the U.S. Caucus against Foreign Corruption and Kleptocracy. “By uniting with our allies to root out corruption, we take aim at the very essence of authoritarianism. That is why the Inter-Parliamentary Alliance against Kleptocracy is so important. Corruption is global by nature. But if all democracies close their doors to it, we can succeed.” “Corruption is the new communism. It is the uniting force of dictators and the system they seek to export. And like communism, the USA needs to join together with its allies to defeat it. I am pleased to welcome the establishment of the Inter-Parliamentary Alliance against Kleptocracy, which will unite democratic allies against the corruption of Russian oligarchs, CCP princelings, Venezuelan thugs, and Iranian mullahs,” said Helsinki Commission Ranking Member Rep. Joe Wilson (SC-02). “We have been seeing autocrats like Viktor Orbán successfully undermining European democracy for years from within, with increasing support from their experienced counterparts in Russia and beyond. If they close their ranks, all democratic parties need to do the same. This is not a fight that a single actor can win alone,” said MEP Daniel Freund of Germany, Co-Chair of the EU Parliament Anti-Corruption Intergroup. “Kleptocrats are destroying democracy and undermining the European Union. With this alliance we can stop European autocrats like Viktor Orbán and could be a powerful tool to influence not only national legislation but agreements on fighting corruption, transparency, accountability and criminal cooperation between the EU and the US. We should keep this alliance open for national lawmakers as well within the EU, allowing for example the devoted members of the Hungarian opposition parties also to join and commit themselves to such a noble cause. We have to fight together and we will fight together,” said MEP Katalin Cseh of Hungary, Member of the EU Parliament Anti-Corruption Intergroup’s leadership bureau. “Dirty money is at the root of many evils. From drug smuggling to terrorism, from money laundering to human trafficking, and from fraud to corruption. But if we can follow the money then we can start to put a stop to all manner of heinous crimes. That's why the launch of the Inter-Parliamentary Alliance on Kleptocracy represents a powerful moment as the world's democracies come together for the fight against illicit finance,” said UK MP Margaret Hodges, Chair of the All-Party Parliamentary Group on Anti-Corruption and Responsible Tax. “The movement of illicit finance is a global problem that requires a global solution. The harm caused to global security and democracy is facilitated by lack of coordination between different legislatures, and I am delighted to be part of the Inter-Parliamentary Alliance on Kleptocracy. I look forward to working with colleagues across the world to ensure that we give Kleptocrats nowhere to hide,” said UK MP Kevin Hollinrake, Vice Chair of the All-Party Parliamentary Group on Anti-Corruption and Responsible Tax. “It is not enough that America fight dictators – our friends and allies must also fight them. By working together to reject blood money, we can successfully deny dictators and their cronies access to our markets. I am thrilled about the formation of the Inter-Parliamentary Alliance against Kleptocracy. This international alliance of like-minded kleptocracy fighters will ensure that killers and thugs have no safe haven,” said Rep. Maria Elvira Salazar (FL-27), a founding member of the U.S. Caucus against Foreign Corruption and Kleptocracy. The Inter-Parliamentary Alliance against Kleptocracy aims to build a transparent and accountable global financial system; promote government transparency, allowing for effective public oversight; disable transnational corrupt networks, while deterring the movement of dirty money into democracies; support the role of free media and journalists in exposing the risks from kleptocracy; and advocate for strong anti-corruption standards for public officials and their enforcement. Planned projects include coordinating targeted sanctions and public visa bans, synchronizing anti-money laundering frameworks, harmonizing cross-border investigations into grand corruption, and promoting robust anti-corruption ethics frameworks for public officials. Members of the Inter-Parliamentary Alliance against Kleptocracy subscribe to the principles that democratic states are based on the rule of law and must safeguard this system against the taint of corruption and illicit finance; that kleptocracy is an authoritarian governance model in which political leaders routinely engage in illicit self-enrichment, maintain power through corrupt patronage networks, exploit democracies to conceal and protect stolen assets, and use strategic corruption as a tool of foreign policy; and that kleptocracy poses the most profound challenge for democratic governance in the 21st century as it corrodes the rule of law from within.
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briefing
Dictators, Inc.
Monday, November 22, 2021Many American and other western corporations invest heavily in authoritarian regimes, particularly Russia and China. Such companies often claim that, thanks to their involvement, democratic values like human rights and the rule of law will spill over into dictatorships and transform them from within. Instead, they provide autocrats with new opportunities to both repress rights at home and exert influence abroad. On November 22, 2021 the Commission on Security and Cooperation in Europe hosted a briefing examining the interplay between western business and dictators, particularly as it concerns human rights abuse. Panelists discussed the recent Russian elections, where Google and Apple censored content at the behest of the Putin regime; corporate censorship and other abuse on behalf of the Chinese Communist Party; and options for policy responses. Vladimir Milov, a Russian opposition politician and economist, discussed how American companies like Google and Apple could be coerced into succumbing to the Russian government’s censorship demands. He noted that the situation isn’t all bad: Google and Apple had resisted past censorship requests by the Russian government. However, the removal of an app created by Alexei Navalny’s organization to help coordinate protest votes in the 2021 Duma elections was problematic; there was nothing illegal about the content, and tech companies like Apple and Google removed them without communicating a legal explanation for doing so, Milov said. Milov suggested that first, companies should not give in to these types of demands by governments so as not to embolden them, and second, should make such communication with governments public to provide transparency. Matt Schrader, Advisor for China at the International Republican Institute, described how the Chinese Communist Party tries to influence other countries’ political systems by leveraging economic access. He pointed toward the People’s Republic of China’s use of its embassies abroad to form mutually beneficial relationships with businesses and wealthy individuals to influence political discourse and curry support for China. In the United States, for instance, this support can come in the form of lobbying against laws such as the Uyghur Human Rights Act, Schrader said. Another example, Schrader continued, is the film industry. China is a large market, and film companies are denied access to the Chinese market if they produce any films critical of China. Finally, Schrader pointed out the importance of the megaphone of celebrity in combating human rights violations. For example, efforts by U.S. tennis player Serena Williams and other athletes to raise awareness about missing Chinese tennis player Peng Shuai has led to serious discussion about moving the 2022 Beijing Winter Olympics, while the ongoing genocide of the Uyghurs in Xinjiang has not. Karen Sutter, Specialist in Asian Trade and Finance at the Congressional Research Service, focused on the Chinese government’s increased economic pressure on countries, organizations and individuals to conform to China. According to her, the line between the government’s use of its authority and its commercial interest has been blurred. This includes rulings on anti-trust, business licensing, and other matters. “China’s use of economic coercion to push through policy goals is intensifying,” Sutter said, adding that this coercion is not limited to individuals or companies operating in China, creating gaps in public awareness in third countries, and taking away the ability to have public, informed debates on issues related to China. Sutter elaborated on several tools the United States could use to respond to China, including examining Chinese tactics, acknowledging that China benefits from the U.S. interest in its market, and understanding how China uses measures and countermeasures that put American companies in the middle of disputes between the two governments. Sutter continued by explaining that this system of measures and countermeasures as well as the asymmetric access to the economy poses the greatest challenge. Asked whether there is any indication that China’s influence over American enterprises could position China for a military advantage, Sutter pointed toward the issue of dual-use technologies and technological transfer to the Chinese government itself. She questioned whether other countries would backfill such arrangements if the United States imposed restrictions, and then further asked if there was a good way to impose restraints on or consequences for malign Chinese behavior. Schrader added that China sees embeddedness in globalization as a source of power and seeks to position itself to benefit the most it can from technological and scientific innovation. On the question of companies like Apple or Google “decoupling” from Russia and China, Milov responded that these companies would reach a point at which it would no longer be worth it to operate in country. He suggested, however, that companies could operate in Russia without a physical presence and thus limit their exposure to coercion. Sutter added that decoupling is not limited to U.S. companies looking to leave China. Rather, Chinese industrial policy shows attempts towards becoming self-sufficient in the areas of aircraft, semiconductors, medical equipment, and other key areas. In the meantime, Sutter said to end her testimony, the United States and Europe could use the threat of decoupling as leverage. Related Information Panelist Biographies China’s Recent Trade Measures and Countermeasures: Issues for Congress
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statement
Remembering Sergei Magnitsky
Thursday, November 18, 2021Madam President, 12 years ago this Tuesday, Russian tax lawyer Sergei Magnitsky died in Moscow at the hands of prison guards who, instead of treating him for the acute illness that his torturous, year-long detention provoked, beat him for over an hour. He was found dead in his cell shortly thereafter. His “crime” was exposing the largest tax fraud in Russian history, perpetrated by government officials. He was 37 years old and left a loving family and many friends. At the Helsinki Commission, which I chair, we had heard of Sergei’s plight months earlier and we were saddened and outraged that such a promising life had been cut short and that so few expected his murderers to be held to any account. Impunity for the murder of journalists, activists, opposition politicians, and now a simple, honest citizen was, and remains, a depressing cliché in Russia under Vladimir Putin’s rule while his regime often ruthlessly punishes people for minor infractions of the law. For those on the wrong side of the Kremlin, the message is clear — and chilling. Even the most damning evidence will not suffice to convict the guilty nor will the most exculpatory evidence spare the innocent. The need for justice, in Russia, in this specific case does not diminish with the passage of time. Moreover, the “doubling down” on the cover-up of Sergei’s murder and the massive tax heist he exposed implicates a wider swath of Russian officials with the guilt of this heinous crime. It does not need to be this way, however; nor is it ever too late for a reckoning in this case in the very courtrooms that hosted the show trials that ultimately led to Sergei’s death and the obscenity of his posthumous conviction. As somber as this occasion is, there is reason for hope. Vladimir Putin will not rule Russia forever and every passing day brings us closer to that moment when someone new will occupy his post. Who that person will be and whether this transition will usher in a government in Russia that respects the rights of its citizens and abides by its international commitments remains unclear. I hope it does. A Russian government that returns to the fold of responsible, constructive European powers would increase global security, enhance the prosperity of its own citizens and trading partners, and bring new vigor to tackling complex international challenges such as climate change. Sergei’s work lives on in his many colleagues and friends who are gathering in London this week to celebrate his life and to recognize others, like him, who seek justice and peace in their countries, often facing, and surmounting, seemingly impossible obstacles. All too often, they pay a heavy price for their courageous integrity. Sergei’s heroic legacy is exemplified in the global movement for justice sparked by his death, and in the raft of Magnitsky laws that began in this chamber and have now spread to over a dozen countries, including allies like Canada, the United Kingdom, and the European Union. Even as these laws help protect our countries from the corrupting taint of blood money and deny abusers the privilege of traveling to our shores, they also remind those who suffer human right abuses at the hands of their own governments that we have not forgotten them. Sergei Magnitsky is a reminder to all of us that one person can make a difference. In choosing the truth over lies, and sacrifice over comfort, Sergei made a difference and will never be forgotten. Fifty-five years ago, Senator Robert F. Kennedy addressed the National Union of South African Students and spoke about human liberty. He spoke about freedom of speech and the right “to affirm one's membership and allegiance to the body politic – to society.” He also spoke about the commensurate freedom to be heard, “to share in the decisions of government which shape men's lives.” And he stated that government “must be limited in its power to act against its people so that there may be … no arbitrary imposition of pains or penalties on an ordinary citizen by officials high or low”. Senator Kennedy went on to say, Each time a man stands up for an ideal, or acts to improve the lot of others, or strikes out against injustice, he sends forth a tiny ripple of hope, and crossing each other from a million different centers of energy and daring, those ripples build a current which can sweep down the mightiest walls of oppression and resistance. Madam President, Sergei Magnitsky stood up for an ideal. He acted to improve the lot of others. He struck at injustice. He was – and remains – a ripple of hope. On this sad anniversary of Sergei Magnitsky’s murder, let us all recommit ourselves to helping those in Russia, and around the world, who seek their rightful share in the governance of their own countries and who deserve the confidence of doing so without fear of harm. If we do this, Sergei will not have died in vain. I am confident that one day, there will be a monument in stone and bronze to Sergei in his native Russia. Until that day, the laws that bear his name will serve as his memorial.
Witnesses from OSCE, USAID, Civil Society to Testify at Hearing
Tuesday, May 17, 2016