Belarus Democracy Act 2003

Belarus Democracy Act 2003

Hon.
Ben N. Campbell
United States
Senate
108th Congress Congress
First Session Session
Tuesday, March 25, 2003

Mr. President, as Co-Chairman of the Commission on Security and Cooperation in Europe, I have closely monitored developments in the Republic of Belarus and informed my Senate colleagues of disturbing trends in that nation. I have met with members of the fledgling democratic opposition who, at great personal risk, dare to speak out against the repressive regime led by Alexander Lukashenka. I have met with the courageous wives whose husbands disappeared because they stood up to the regime and would not be silent. Against the backdrop of this climate of fear, the powers of the state have been brought to bear against independent journalists, trade unionists, and other voices of dissent.

Increasingly, Belarus has been driven into self-imposed isolation under Lukashenka devoid of legitimate leadership or accountability. A little over a year ago I addressed the Senate to voice concern over reported arms deals between the regime and rouge states, including Iraq. It appears that such sales have taken on greater importance as the Belarusian economy spirals downward.

Mr. President, while some might be tempted to dismiss Belarus as an anomaly, the stakes are too high and the costs too great to ignore. Accordingly, today, I am introducing the Belarus Democracy Act of 2003, which is designed to help put an end to repression and human rights violations in Belarus and to promote Belarus’ entry into a democratic Euro-Atlantic community of nations.

As a participating State in the Organization for Security and Cooperation in Europe (OSCE), Belarus has accepted a series of norms in the areas of democracy, human rights and the rule of law. As Europe’s last dictator, Lukashenka continues to brashly trample the fundamental rights of his own people and their culture.

As I alluded to earlier, independent media, non-governmental organizations, trade unions and the democratic opposition have had to operate under extremely difficult conditions, often facing serious mistreatment and an orchestrated campaign of harassment. Despite the repressions there are courageous individuals who support democracy have not been silenced. Two weeks ago, for example, Alexander Yarashuk, the leader of the Belarusian Congress of Democratic Trade Unions, called on Lukashenka to immediately cease backing Saddam. Moreover, just last week, on March 12, thousands gathered peacefully in a central Minsk square to protest deteriorating economic and social conditions in Belarus. Four of the rally’s organizers – Andrei Sannikov, Ludmila Gryaznova, Dmitry Bondarenko and Leonid Malakhov – were given 15 day jail sentences for “participation in unauthorized mass actions.”

Despite calls for change within Belarus, and considerable prodding from the international community, Lukashenka has shown no desire to deviate from his path of authoritarianism and personal profit at the expense of his own people. A few months ago, Lukashenka, who effectively controls the Belarusian parliament, signed into laws a new, repressive religion law. Local elections held earlier this month followed the pattern of Belarus’ 2000 parliamentary and 2001 presidential elections – they were a joke. Control of election commissions, denials of registration for opposition candidates, “early voting” and outright falsifications were the norm.

Mr. President, the Belarus Democracy Act of 2003 would authorize additional assistance for democracy-building activities such as support for NGOs, independent media, including radio and television broadcasting to Belarus, and international exchanges. It also encourages free and fair parliamentary elections, which have been notably absent in Belarus. This bill would also deny high-ranking officials of the Lukashenka regime entry into the United States. Additionally, strategic exports to the Belarusian Government would be prohibited, as well as U.S. Government financing, except for humanitarian goods and agricultural or medical products. The U.S. executive directors of the international financial institutions would be encouraged to vote against financial assistance to the Government of Belarus except for loans and assistance for humanitarian needs. The bill would also require reports from the President concerning the sale of delivery of weapons or weapons-related technologies from Belarus to rogue states, including Iraq and North Korea.

I am very pleased that the Ranking Member of the Committee on Foreign Relations, Senator Biden, is an original cosponsor of this measure. His support will ensure that we proceed on a bipartisan basis as we work to ensure the timely adoption and implementation of this legislation.

Mr. President, the goal of the Belarus Democracy Act is to assist Belarus in becoming a genuine European state, in which respect for human rights and democracy is the norm and in which the long-suffering Belarusian people are able to overcome the legacy of dictatorship – past and present. Adoption and implementation of the Belarus Democracy Act will offer a ray of hope that the current period of political, economic and social stagnation will indeed end. The people of Belarus deserve a chance for a brighter future free of repression and fear.

I ask unanimous consent that the text of the Belarus Democracy Act be printed in the Record.

There being no objection, the bill was ordered to be printed in the Record, as follows:

S. 700

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the "Belarus Democracy Act of 2003''.

SEC. 2. FINDINGS.

Congress makes the following findings:

(1) The United States supports the promotion of democracy, respect for human rights, and the rule of law in the Republic of Belarus consistent with its commitments as a participating state of the Organization for Security and Cooperation in Europe (OSCE).

(2) The United States has a vital interest in the independence and sovereignty of the Republic of Belarus and its integration into the European community of democracies.

(3) The last parliamentary election in Belarus deemed to be free and fair by the international community was conducted in 1995 from which emerged the 13th Supreme Soviet whose democratically and constitutionally derived authorities and powers have been usurped by the authoritarian regime of Belarus President Aleksandr Lukashenka.

(4) In November 1996, Lukashenka orchestrated an illegal and unconstitutional referendum that enabled him to impose a new constitution, abolish the duly-elected parliament, the 13th Supreme Soviet, install a largely powerless National Assembly, and extend his term of office to 2001.

(5) In May 1999, democratic forces in Belarus challenged Lukashenka's unconstitutional extension of his presidential term by staging alternative presidential elections which were met with repression.

(6) Democratic forces in Belarus have organized peaceful demonstrations against the Lukashenka regime in cities and towns throughout Belarus which led to beatings, mass arrests, and extended incarcerations.

(7) Victor Gonchar, Anatoly Krasovsky, and Yuri Zakharenka, who have been leaders and supporters of the democratic forces in Belarus, and Dmitry Zavadsky, a journalist known for his critical reporting in Belarus, have disappeared and are presumed dead.

(8) Former Belarus Government officials have come forward with credible allegations and evidence that top officials of the Lukashenka regime were involved in the disappearances.

(9) The Lukashenka regime systematically harasses and represses the independent media and independent trade unions, imprisons independent journalists, and actively suppresses freedom of speech and expression.

(10) The Lukashenka regime harasses the autocephalic Belarusian Orthodox Church, the Roman Catholic Church, the Jewish community, the Hindu Lights of Kalyasa community, evangelical Protestant churches (such as Baptist and Pentecostal groups), and other minority religious groups.

(11) The Law on Religious Freedom and Religious Organizations, passed by the National Assembly and signed by Lukashenka on October 31, 2002, establishes one of the most repressive legal regimes in the OSCE region, severely limiting religious freedom and placing excessively burdensome government controls on religious practice.

(12) The United States, the European Union, the North Atlantic Treaty Organization (NATO) Parliamentary Assembly, and the OSCE Parliamentary Assembly have not recognized the National Assembly.

(13) The parliamentary elections of October 15, 2000, conducted in the absence of a democratic election law, were illegitimate, unconstitutional, and plagued by violent human rights abuses committed by the Lukashenka regime, and have been determined by the OSCE to be nondemocratic.

(14) The presidential election of September 9, 2001, was determined by the OSCE and other observers to be fundamentally unfair, to have failed to meet OSCE commitments for democratic elections formulated in the 1990 Copenhagen Document, and to have featured significant and abusive misconduct by the Lukashenka regime, including--

(A) the harassment, arrest, and imprisonment of opposition members;

(B) the denial of equal and fair access by opposition candidates to state-controlled media;

(C) the seizure of equipment and property of independent nongovernmental organizations and press organizations, and the harassment of their staff and management;

(D) voting and vote counting procedures that were not transparent; and

(E) a campaign of intimidation directed against opposition activists, domestic election observation organizations, and opposition and independent media, and a libelous media campaign against international observers.

SEC. 3. ASSISTANCE TO PROMOTE DEMOCRACY AND CIVIL SOCIETY IN BELARUS.

(a) PURPOSES OF ASSISTANCE.--Assistance under this section shall be available for the following purposes:

(1) To assist the people of the Republic of Belarus in regaining their freedom and to enable them to join the European community of democracies.

(2) To encourage free and fair presidential, parliamentary, and local elections in Belarus, conducted in a manner consistent with internationally accepted standards and under the supervision of internationally recognized observers.

(3) To assist in restoring and strengthening institutions of democratic governance in Belarus.

(b) AUTHORIZATION FOR ASSISTANCE.--To carry out the purposes set forth in subsection (a), the President is authorized to furnish assistance and other support for the activities described in subsection (c), to be provided primarily for indigenous groups in Belarus that are committed to the support of democratic processes in Belarus.

(c) ACTIVITIES SUPPORTED.--Activities that may be supported by assistance under subsection (b) include--

(1) the observation of elections and the promotion of free and fair electoral processes;

(2) the development of democratic political parties;

(3) radio and television broadcasting to and within Belarus;

(4) the development of nongovernmental organizations promoting democracy and supporting human rights;

(5) the development of independent media working within Belarus and from locations outside Belarus, and supported by non-state-controlled printing facilities;

(6) international exchanges and advanced professional training programs for leaders and members of the democratic forces in matters central to the development of civil society; and

(7) other activities consistent with the purposes of this Act.

(d) AUTHORIZATION OF APPROPRIATIONS.--

(1) IN GENERAL.--There is authorized to be appropriated to the President to carry out this section $40,000,000 for fiscal years 2004 and 2005.

(2) AVAILABILITY OF FUNDS.--Amounts appropriated pursuant to the authorization of appropriations under paragraph (1) are authorized to remain available until expended.

SEC. 4. RADIO BROADCASTING TO BELARUS.

(a) PURPOSE.--It is the purpose of this section to authorize increased support for United States Government and surrogate radio broadcasting to the Republic of Belarus that will facilitate the unhindered dissemination of information in Belarus.

(b) AUTHORIZATION OF APPROPRIATIONS.--In addition to such sums as are otherwise authorized to be appropriated, there is authorized to be appropriated $5,000,000 for each fiscal year for Voice of America and RFE/RL, Incorporated for radio broadcasting to the people of Belarus in languages spoken in Belarus.

(c) REPORT ON RADIO BROADCASTING TO AND IN BELARUS.--Not later than 120 days after the date of the enactment of this Act, the Secretary of State shall submit to the appropriate congressional committees a report on how funds appropriated and allocated pursuant to the authorizations of appropriations under subsection (b) and section 3(d) will be used to provide AM and FM broadcasting that covers the territory of Belarus and delivers independent and uncensored programming.

SEC. 5. SANCTIONS AGAINST THE GOVERNMENT OF BELARUS.

(a) APPLICATION OF SANCTIONS.--The sanctions described in subsections (c) and (d), and any sanction imposed under subsection (e) or (f), shall apply with respect to the Republic of Belarus until the President determines and certifies to the appropriate congressional committees that the Government of Belarus has made significant progress in meeting the conditions described in subsection (b).

(b) CONDITIONS.--The conditions referred to in subsection (a) are the following:

(1) The release of individuals in Belarus who have been jailed based on political or religious beliefs.

(2) The withdrawal of politically motivated legal charges against all opposition figures and independent journalists in Belarus.

(3) A full accounting of the disappearances of opposition leaders and journalists in Belarus, including Victor Gonchar, Anatoly Krasovsky, Yuri Zakharenka, and Dmitry Zavadsky, and the prosecution of the individuals who are responsible for their disappearances.

(4) The cessation of all forms of harassment and repression against the independent media, independent trade unions, nongovernmental organizations, religious organizations (including their leadership and members), and the political opposition in Belarus.

(5) The implementation of free and fair presidential and parliamentary elections in Belarus consistent with Organization for Security and Cooperation in Europe (OSCE) standards on democratic elections and in cooperation with relevant OSCE institutions.

(c) PROHIBITION ON STRATEGIC EXPORTS TO BELARUS.--

(1) PROHIBITION.--No computers, computer software, goods, or technology intended to manufacture or service computers, or any other related goods or technology, may be exported to Belarus for use by the Government of Belarus, or by its military, police, prison system, or national security agencies. The prohibition in the preceding sentence shall not apply with respect to the export of goods or technology for democracy-building or humanitarian purposes.

(2) RULE OF CONSTRUCTION.--Nothing in this subsection shall prevent the issuance of licenses to ensure the safety of civil aviation and safe operation of commercial passenger aircraft of United States origin or to ensure the safety of ocean-going maritime traffic in international waters.

(d) PROHIBITION ON LOANS AND INVESTMENT.--

(1) UNITED STATES GOVERNMENT FINANCING.--No loan, credit guarantee, insurance, financing, or other similar financial assistance may be extended by any agency of the United States Government (including the Export-Import Bank and the Overseas Private Investment Corporation) to the Government of Belarus, except with respect to the provision of humanitarian goods and agricultural or medical products.

(2) TRADE AND DEVELOPMENT AGENCY.--No funds available to the Trade and Development Agency may be available for activities of the Agency in or for Belarus.

(e) DENIAL OF ENTRY INTO UNITED STATES OF CERTAIN BELARUS OFFICIALS.--

(1) DENIAL OF ENTRY.--It is the sense of Congress that, in addition to the sanctions provided for in subsections (c) and (d), the President should use the authority under section 212(f) of the Immigration and Nationality Act (8 U.S.C. 1182(f)) to deny the entry into the United States of any alien who--

(A) holds a position in the senior leadership of the Government of Belarus; or

(B) is a spouse, minor child, or agent of a person described in subparagraph (A).

(2) SENIOR LEADERSHIP OF THE GOVERNMENT OF BELARUS DEFINED.--In this subsection, the term ``senior leadership of the Government of Belarus'' includes--

(A) the President, Prime Minister, Deputy Prime Ministers, government ministers, Chairmen of State Committees, and members of the Presidential Administration of Belarus;

(B) any official of the Government of Belarus who is personally and substantially involved in the suppression of freedom in Belarus, including judges and prosecutors; and

(C) any other individual determined by the Secretary of State (or the Secretary's designee) to be personally and substantially involved in the formulation or execution of the policies of the Lukashenka regime in Belarus that are in contradiction of internationally recognized human rights standards.

(f) MULTILATERAL FINANCIAL ASSISTANCE.--It is the sense of Congress that, in addition to the sanctions provided for in subsections (c) and (d), the Secretary of the Treasury should instruct the United States Executive Director of each international financial institution to which the United States is a member to use the voice and vote of the United States to oppose any extension by those institutions of any financial assistance (including any technical assistance or grant) of any kind to the Government of Belarus, except for loans and assistance that serve humanitarian needs.

(g) WAIVER.--The President may waive the application of any sanction described in this section with respect to Belarus if the President determines and certifies to the appropriate congressional committees that it is important to the national interests of the United States to do so.

SEC. 6. MULTILATERAL COOPERATION.

It is the sense of Congress that the President should continue to seek to coordinate with other countries, particularly European countries, a comprehensive, multilateral strategy to further the purposes of this Act, including, as appropriate, encouraging other countries to take measures with respect to the Republic of Belarus that are similar to measures provided for in this Act.

SEC. 7. ANNUAL REPORTS.

(a) REPORTS.--Not later than 90 days after the date of the enactment of this Act, and every year thereafter, the President shall transmit to the appropriate congressional committees a report that describes, with respect to the preceding 12-month period, the following:

(1) The sale or delivery of weapons or weapons-related technologies from the Republic of Belarus to any country, the government of which the Secretary of State has determined, for purposes of section 6(j)(1) of the Export Administration Act of 1979 (50 U.S.C. App. 2405(j)(1)), has repeatedly provided support for acts of international terrorism.

(2) An identification of each country described in paragraph (1) and a detailed description of the weapons or weapons-related technologies involved in the sale.

(3) An identification of the goods, services, credits, or other consideration received by Belarus in exchange for the weapons or weapons-related technologies.

(4) The personal assets and wealth of Aleksandr Lukashenka and other senior leadership of the Government of Belarus.

(b) FORM.--A report transmitted pursuant to subsection (a) shall be in unclassified form but may contain a classified annex.

SEC. 8. DECLARATION OF POLICY.

Congress hereby--

(1) expresses its support to those in the Republic of Belarus seeking--

(A) to promote democracy, human rights, and the rule of law and to consolidate the independence and sovereignty of Belarus; and

(B) to promote the integration of Belarus into the European community of democracies;

(2) expresses its grave concern about the disappearances of Victor Gonchar, Anatoly Krasovsky, Yuri Zakharenka, and Dmitry Zavadsky;

(3) calls upon the Lukashenka regime in Belarus to cease its persecution of political opponents or independent journalists and to release those individuals who have been imprisoned for opposing his regime or for exercising their right to freedom of speech;

(4) calls upon the Lukashenka regime to end the pattern of clear, gross, and uncorrected violations of relevant human dimension commitments of the Organization for Security and Cooperation in Europe (OSCE), and to respect the basic freedoms of speech, expression, assembly, association, language, culture, and religion or belief;

(5) calls upon the Government of the Russian Federation to use its influence to encourage democratic development in Belarus so that Belarus can become a democratic, prosperous, sovereign, and independent state that is integrated into Europe;

(6) calls upon the Government of Belarus to resolve the continuing constitutional and political crisis in Belarus through--

(A) free, fair, and transparent presidential and parliamentary elections in Belarus, as called for by the OSCE;

(B) respect for human rights in Belarus;

(C) an end to the current climate of fear in Belarus;

(D) meaningful access by the opposition to state media in Belarus;

(E) modification of the electoral code of Belarus in keeping with OSCE commitments;

(F) engagement in genuine talks with the opposition in Belarus; and

(G) modifications of the constitution of Belarus to allow for genuine authority for the parliament; and

(7) commends the democratic opposition in Belarus for their commitment to freedom, their courage in the face of the repression of the Lukashenka regime, and the emergence of a pluralist civil society in Belarus--the foundation for the development of democratic political structures.

SEC. 9. DEFINITION.

In this Act, the term "appropriate congressional committees'' means--

(1) the Committee on International Relations of the House of Representatives; and

(2) the Committee on Foreign Relations of the Senate. 

Relevant countries: 
  • Related content
  • Related content
Filter Topics Open Close
  • 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.

  • 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 to Hold Briefing on UK Anti-Corruption Policies

    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

  • 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

  • Chairman Hastings on Upcoming Meeting Between President Trump and Prime Minister Orban

    WASHINGTON—Ahead of Monday’s meeting between U.S. President Donald Trump and Hungarian Prime Minister Viktor Orban, Helsinki Commission Chairman Rep. Alcee L. Hastings (FL-20) issued the following statement: “Thirty years after Central European nations threw off the mantle of communism and oppression, I recall the unwavering support of the United States for the democratic aspirations of their citizens, and the warm welcome Hungary received when it joined the ranks of self-governing, free nations. I echo Secretary’s Pompeo’s message, delivered in Central Europe in February: Upholding democracy in each and every country is vital to human freedom. “President Trump must urge Prime Minister Orban to end Hungary’s anti-Ukraine policy at NATO, resolve concerns about the relocation of the Russian International Investment Bank to Budapest, ensure that Hungary’s ‘golden visas’ are not used to evade U.S. sanctions, and address document security problems to ensure the integrity of the visa waiver program. In addition, the president must prioritize meaningful democratic change in Hungary and encourage the Hungarian Government to repeal the 2017 and 2018 laws curtailing freedom of speech, assembly, and association.” U.S. authorities have identified at least 85 criminals who fraudulently obtained Hungarian passports to enter or attempt to enter the United States. At an April 2019 Helsinki Commission briefing, Dalibor Rohac of the American Enterprise Institute noted that the chairman of the International Investment Bank has long-standing ties to Russian intelligence agencies, raising concerns that the relocation of the bank from Moscow to Budapest could provide a platform for intelligence-gathering operations against U.S. allies. In April, U.S. Special Representative to Ukraine Kurt Volker visited Budapest and urged Hungary to end its anti-Ukraine policy in NATO. In February, during a visit to Slovakia, Hungary, and Poland, U.S. Secretary of State Mike Pompeo said, “Every nation that raises its voice for liberty and democracy matters, whether that’s a country that’s as big as the United States and with as large an economy as we have in America, or a smaller country. They’re each valuable. Each time one falls, each time a country – no matter how small – each time it moves away from democracy and moves towards a different system of governance, the capacity for the world to continue to deliver freedom for human beings is diminished. And so I would urge every country, no matter its size . . . to stay focused, maintain its commitment.”

  • Hastings, Wicker, and Moore Mark the Anniversary of Joseph Stone’s Death In Ukraine

    WASHINGTON—On the two-year anniversary of the death of Joseph Stone, a U.S. paramedic serving with the OSCE Special Monitoring Mission (SMM) in Ukraine, Helsinki Commission Chairman Alcee L. Hastings (FL-20) recalled Stone’s tragic death in the Russia-driven conflict and underlined that agreements to end the use of mines in the conflict must be respected.  Stone was killed on April 23, 2017, when his vehicle struck a landmine in Russian-controlled territory in eastern Ukraine. “We honor the ultimate price paid by Joseph Stone, an American who served the innocent civilians suffering from the senseless conflict Moscow has perpetuated in Ukraine,” said Chairman Hastings. “Men, women, and children near the contact line remain steps from oblivion wrought by the indiscriminate cruelty of landmines. This human cost of the Kremlin’s ambition is unacceptable.” Helsinki Commission Co-Chairman Sen. Roger Wicker (MS) called on the Russian Government to end the cycle of violence that resulted in Stone’s death.   “Instead of continuing to fuel this war, Vladimir Putin and his proxies should live up to their promises under the Minsk Agreements and the Helsinki Accords and get out of Ukraine—including Crimea,” said Sen. Wicker. “The second anniversary of Joseph Stone’s death is a tragic reminder that Russia has not met its commitments on clearing areas of explosive remnants of war and preventing new mines from being laid in eastern Ukraine.” Rep. Gwen Moore (WI-04) praised Stone’s courage and criticized the pressure put on international monitors. “Joseph Stone, who was born in my district in Milwaukee, gave his life to help the world know the truth about the war in eastern Ukraine. OSCE monitors voluntarily put themselves at risk to document the day-to-day tragedies of a conflict that has killed thousands and affected millions more,” said Rep. Moore. “They do this important work despite facing severe threats of violence; these threats, including the laying of landmines such as the one that killed Joseph and continue to kill and maim innocents—must end.”  Eastern Ukraine is among the most heavily-mined regions in the world. According to Alexander Hug, former Principal Deputy Chief Monitor of the OSCE Special Monitoring Mission to Ukraine, mines and unexploded ordnance are the No. 2 cause of casualties in the war in Ukraine. Anti-vehicle mines are responsible for more deaths in the Donbas than anywhere else in the world.​ In the last year alone, at least 70 people—including 18 children—have been killed or injured by mines or unexploded ordinance in eastern Ukraine. The SMM was established in 2014 to monitor implementation of the Minsk agreements, which were designed to bring peace to eastern Ukraine. It is an unarmed, civilian mission that serves as the international community’s eyes and ears in the conflict zone. It is the only independent monitoring mission in the war zone. The SMM operates under a mandate adopted by consensus among the 57 OSCE participating States, including the United States, Russia, and Ukraine. It currently fields roughly 800 monitors, nearly 600 of whom are in the Donetsk and Luhansk regions. The United States supports the SMM by providing 57 monitors (the largest contingent) and has contributed over $100 million to the mission since its inception.

  • Developments in Hungary

    At this Helsinki Commission briefing, Susan Corke, Senior Fellow and Director of the Transatlantic Democracy Working Group at the German Marshall Fund; Melissa Hooper, Director of Human Rights and Civil Society at Human Rights First; and Dalibor Rohac, Research Fellow at the American Enterprise Institute explored recent developments in Hungary, including issues related to the rule of law and corruption. “Every nation that raises its voice for liberty and democracy matters, whether that’s a country that’s as big as the United States and with as large an economy as we have in America, or a smaller country. They’re each valuable. Each time one falls, each time a country – no matter how small – each time it moves away from democracy and moves towards a different system of governance, the capacity for the world to continue to deliver freedom for human beings is diminished. And so I would urge every country, no matter its size . . . to stay focused, maintain its commitment.” – Secretary of State Michael R. Pompeo, February 12, 2019 Mr. Rohac discussed Hungary’s measurable decline on various indicators of good governance and the rule of law; patterns of politically organized corruption; and the implications of developments in Hungary for the United States. He observed that Hungary has experienced a steady erosion of freedom, the rule of law, and quality of governance according to virtually any indicator, including the assessments of the World Bank, the Heritage Foundation, and the Cato Institute. He noted that the Heritage Foundation’s index of economic freedom places the protection of property rights in Hungary in the mostly unfree territory. This stems in part from the seizure of pension fund assets as well as the concentration of ownership in the hands of Fidesz-connected oligarchs. The same index notes a marked decline in government integrity measures, placing Hungary into the oppressed territory on those sub- indices, with a score dramatically worse than in 2009. While Mr. Rohac observed that corruption is a problem across central Europe and across post-communist countries, Hungary’s case is notable for the extent to which corruption has been embedded into the political system, centralized, connected to the ruling party, and has served as a mechanism of political patronage and political mobilization. “[T]here is something special about the nexus of legal patronage and graft and authoritarianism. The two cannot be separated.” Panelists also described something of a paradox. On the one hand, the Orban government has exploited EU funds to build its corrupt oligarchy. Tax and procurement-related irregularities have been cited by the EU anti-corruption agency OLAF as the source of millions in suspect deals involving Orban’s family and friends, many of which also involve Russian state actors. On the other hand, the EU – precisely because it is not a federal government but depends on the consent of the EU member states – has limited ability to rein in this corruption and hybrid forms of governance. Mr. Rohac asserted that this embrace of crony authoritarianism by Hungary is a direct threat to U.S. interests in the region as well as to the West’s interests more broadly. He rejected the notion that competing for positive influence in the region means we should not hold our allies to high standards. He suggested that such a view is enormously detrimental because it’s precisely the authoritarianism, the graft, and the cronyism that opens the way for foreign revisionist powers to enter Hungary and influence the country, pulling it away from the West.  “The U.S. stood by Central European nations as they liberated themselves from communism in the 1990s, in the 90s when they joined the ranks of self-governing free nations of the West,” he observed. “The idea that the U.S. should now either be silent or cheerleader for policies that are now driving Hungary away from the West strikes me as a particularly misguided one.” Ms. Corke described the concerns about trends in Hungary and other countries in the Euro-Atlantic region which led to the formation of a bipartisan group, the Transatlantic Democracy Group, focused on democratic erosion and the need for U.S. leadership.  She joined with 70 signers for NATO’s 70th anniversary on a declaration to reaffirm commitment to democracy.  Ms. Corke is sometimes asked, “why is your group so concerned about Hungary? It’s a small country. Why are you so concerned about Central European University?” She observed that Central European University is a joint American-Hungarian institution and Victor Orban’s campaign against it is a highly symbolic move against a vital institution founded to promote the transatlantic values of democracy, openness, and equality of opportunity and was therefore a direct challenge to the United States. She concluded that Moscow is using Hungary and other NATO members as backdoors of influence, and that Hungary’s centralized, top-down state has enabled an increasingly centralized, top-down system of corruption. Ms. Corke also suggested that a lesson learned from recent developments in the region is that transparency is a necessary, but alone insufficient, condition to fight corruption.  She asserted that the concept of a linear progression of democracy is outdated and new approaches to supporting civil society are needed. In addition, Ms. Hooper stated that while the Obama-era policy of limited high-level engagement precluded some of the Hungarian government’s controversial actions, it did not appear to motivate fundamental change. The Trump-era policy of transactional engagement devoid of values has fared no better, she said, and the U.S. should therefore re-examine its policy toward Hungary.  First, the United States should reinvest in democracy promotion.  Second, the United States should announce publicly that it is reintroducing support for civil society in the region, and specifically in Hungary, due to a decline in the government’s ability to or interest in protecting democratic institutions.  Third, Congress should be more vocal and pointed in expressing its concern and even alarm in Hungary’s antidemocratic movement and should support for individuals such as journalists or other members of watchdog organizations that are targeted by government campaigns or blacklists.  Finally, the United States should not shy away from applying targeted sanctions, such as the Global Magnitsky law, when clear lines are crossed. When visa bans were used against some officials in 2014, they had an impact in Hungary. Background materials available for the briefing included panelist biographies; Department of State materials including statements by Secretary Michael Pompeo and U.S. Ambassador to Hungary David Cornstein; recent Helsinki commission statements and publications; and the United States Holocaust Memorial Museum FAQs on the Holocaust in Hungary.

  • Helsinki Commission Briefing to Explore Recent Developments in Hungary

    WASHINGTON—The Commission on Security and Cooperation in Europe, also known as the Helsinki Commission, today announced the following briefing: DEVELOPMENTS IN HUNGARY Tuesday, April 9, 2019 10:00 a.m. Longworth House Office Building Room 1539 Live Webcast: www.facebook.com/HelsinkiCommission At this Helsinki Commission briefing, panelists will explore recent developments in Hungary, including issues related to the rule of law and corruption. The following panelists are scheduled to participate: Susan Corke, Senior Fellow and Director, Transatlantic Democracy Working Group, German Marshall Fund Melissa Hooper, Director of Human Rights and Civil Society, Human Rights First Dalibor Rohac, Research Fellow, American Enterprise Institute

  • Jackson Lee and Hudson Introduce Legislation to Fight Illicit Tobacco Trade

    WASHINGTON—Representatives Sheila Jackson Lee (TX-18) and Richard Hudson (NC-08) today introduced the Combating the Illicit Trade in Tobacco Products Act (CITTPA) in the House of Representatives. Both Rep. Jackson Lee and Rep. Hudson serve on ad hoc committees of the OSCE Parliamentary Assembly, which facilitates interparliamentary dialogue to advance human rights, military security, and economic cooperation in Europe, Central Asia, and North America. “The illicit trade in tobacco underpins some of the gravest transnational threats to the United States and our allies. Illicit tobacco trafficking is not a victimless offense; it facilitates other, more heinous crimes including money laundering and trafficking in weapons, drugs, antiquities, diamonds, counterfeit goods, and—worst of all—human beings,” said Rep. Jackson Lee. “Cigarette smuggling is not just an economic issue, it’s a public safety issue. Illegal cigarettes help finance organized crime and terrorism. Smuggled cigarettes are also more likely to end up in the hands of children and teens. The Combatting the Illicit Trade in Tobacco Products Act will give the United States better tools and more information to combat this dangerous activity,” said Rep. Hudson. 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: Provide better information on countries involved with the illicit tobacco trade. The legislation requires the U.S. Secretary 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. Enable the United States to deter countries involved in the illicit trade in tobacco, and better assist its allies. The bill grants the U.S. Secretary of State the ability 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 Secretary 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. The Helsinki Commission organizes U.S. delegations to OSCE PA annual sessions and other meetings, as well as official delegations to participating States and other OSCE meetings to address democratic, economic, security, and human rights developments. The commission also convenes public hearings and briefings with expert witnesses on OSCE-related issues. In July 2017, the Helsinki Commission held a hearing on illicit trade in tobacco products, which included testimony from the academic community, the public health advocacy community, and industry.

  • U.S. Congressional Delegation Defends Human Rights, Regional Security at OSCE PA Winter Meeting in Vienna

    Led by Helsinki Commission Co-Chairman Sen. Roger Wicker (MS), 12 members of Congress traveled to the OSCE Parliamentary Assembly (PA) Winter Meeting in Vienna in late February to demonstrate the commitment of the United States to security, human rights, and the rule of law in the 57-nation OSCE region. Sen. Wicker, who also serves as a vice-president of the OSCE PA, was joined in Austria by Sen. Bob Casey (PA), Sen. Martin Heinrich (NM), Sen. Tom Udall (NM), Sen. Mike Lee (UT), Sen. Chris Van Hollen (MD), Rep. Roger Aderholt (AL-04), Rep. Lloyd Doggett (TX-35), Rep. Richard Hudson (NC-08), Rep. Sheila Jackson Lee (TX-18), Rep. Gwen Moore (WI-04), and Rep. Lee Zeldin (NY-01). The bipartisan, bicameral delegation was one of the largest U.S. delegations to a Winter Meeting in OSCE PA history. During the meeting of the Committee on Political Affairs and Security, Sen. Wicker criticized the Russian Federation for its interference in U.S. elections, as well as in elections held by other OSCE countries. “It is indisputable that the Russian Government seeks to attack and even undermine the integrity of our elections and of our democratic processes,” he said. “We must all be more aware of—and proactive in countering—Russia’s efforts to undermine the democratic process throughout the OSCE region.” In the same session, Rep. Hudson lamented Russian non-compliance with the Intermediate-Range Nuclear Forces (INF) Treaty, underlining that “an INF Treaty with which all parties comply contributes to global stability; an arms control treaty that one side violates is no longer effective at keeping the world safer.”  Rep. Hudson further stressed that “in light of our six-months’ notice of withdrawal, the Russian Government has one last chance to save the INF Treaty by returning to full and verifiable compliance. We hope and pray Russia will take that step.” In the meeting of the Committee on Economic Affairs, Science, Technology, and Environment, Rep. Hudson also noted the danger that the Nord Stream II pipeline poses to Europe. “Simply put, we cannot allow Russia to dramatically increase its stranglehold on European energy,” he said. “We must look for alternatives and make sure our democratic institutions cannot be held hostage over energy supply as Nord Stream II would promote.” Later in the same session, Rep. Moore advocated for the adoption of beneficial ownership transparency to combat globalized corruption. “Anonymous shell companies are the means through which much modern money laundering occurs,” she said. “We in Congress are working hard to plug the loopholes in the U.S. financial system that have enabled anonymous shell companies to proliferate.” In a debate on restrictions on human rights during states of emergency during the meeting of the Committee on Democracy, Human Rights and Humanitarian Questions, Rep. Jackson Lee argued, “A state of emergency is not a free pass to dismantle a free press,” nor to threaten academic freedom or freedom of religion. She called on Turkey to release local U.S. Consulate employees Metin Topuz and Mete Canturk, as well as American physicist Serkan Golge. At the closing session, participants reviewed reports submitted by Sen. Ben Cardin (MD), OSCE PA Special Representative on Anti-Semitism, Racism and Intolerance, and Rep. Chris Smith (NJ-04), OSCE PA Special Representative on Human Trafficking Issues. Rep. Moore encouraged other delegations to share with Sen. Cardin their efforts to implement their commitments to address violence and discrimination, while Rep. Zeldin called for legislative action and enforcement to make “every community in the OSCE region trafficking-free.” While in Vienna, Rep. Jackson Lee also attended a meeting of the OSCE PA Ad Hoc Committee on Migration, of which she is a member, while Rep. Hudson took part in a meeting of the Ad Hoc Committee on Countering Terrorism, where he serves as a vice chair. Prior to attending the Winter Meeting, most members of the delegation also attended the Munich Security Conference, the world’s leading forum for debating international security policy. On the margins of the conference, the group met with leaders including Serbian President Aleksandar Vucic, INTERPOL Secretary General Jurgen Stock, and Turkish Defense Minister Hulusi Akar. The delegation was briefed by NATO Supreme Allied Commander Europe Gen. Curtis Scapparotti and Commander, U.S. Army Europe Lt. Gen. Christopher Cavoli. Members also visited Cyprus, where they met with Cypriot President Nicos Anastasiades to discuss opportunities to advance U.S.-Cyprus relations, resume reunification negotiations on the island, and counter the threat of money laundering to Cyprus’ banking sector. Major General Cheryl Pearce of Australia, Force Commander of the United Nations Peacekeeping Force in Cyprus, briefed the delegation on UNFICYP’s mission and the status of conflict resolution efforts. Following her briefing, the delegation toured the UN Buffer Zone to examine the work of the UN’s peacekeeping force and the physical separation that afflicts the island.

  • Chairman Hastings Marks One-Year Anniversary of Jan Kuciak’s Murder

    WASHINGTON—On the one-year anniversary of the murder of Slovak investigative journalist Jan Kuciak and his fiancée, Martina Kusnirova, Helsinki Commission Chairman Rep. Alcee L. Hastings (FL-20) issued the following statement: “I support and applaud the people of Slovakia who have courageously demonstrated their unwavering support for democracy in the aftermath of this terrible double murder. They have been a stirring example to those citizens across the OSCE region who are fighting to protect a free and independent press. “Whenever journalists are murdered or attacked, there must be a credible investigation and meaningful accountability.  The ability of journalists to report the news is nothing less than the right of every person to know the facts and make informed decisions about the issues affecting their lives.” On February 21, 2018, 27-year-old Jan Kuciak and his fiancée, Martina Kusnirova, were shot to death in Kuciak’s apartment.  The murder shocked the country and sparked the largest public protests since the 1989 Velvet Revolution. The wave of demonstrations eventually led the Prime Minister, Minister of Interior, and other senior officials to resign.  Four people have been arrested in direct connection with the case and the investigation is ongoing.  In 2017 and 2018, several other journalists investigating public corruption in Europe and Eurasia were murdered for their work. In a May 2018 briefing, the Helsinki Commission examined the assassinations of investigative journalists throughout Europe and Eurasia—including Kuciak and Daphne Caruana Galizia of Malta—why they are targeted, and how future murders can be prevented. At the most recent OSCE Ministerial Council meeting, in December 2018, the participating States expressed particular concern about the climate of impunity that prevails when violent attacks committed against journalists remain unpunished.   

  • Asset Recovery in Eurasia

    Asset recovery—the process of repatriating funds previously stolen by corrupt officials—remains one of the most contentious points in the fight against transnational corruption. Though only a small percentage of stolen funds are ever recovered, major questions exist about the best ways to ensure that repatriated funds don’t simply reenter the same patronage cycle from which they came. This briefing explored approaches to repatriation in Armenia, Ukraine, and Kazakhstan. Panelists discussed best practices and challenges in asset recovery as well as appropriate policy responses, both by the state in question and the international community, and compared the respective approaches of the three countries. Brian Earl, who worked the Pavlo Lazarenko case for years as a detective in the FBI, spoke of uncovering massive amounts of unexplained assets that were initially generated by fraudulent schemes in Ukraine but were scattered abroad. Earl underscored the importance of a multiparty investigation between authorities from the United States, Ukraine, and Switzerland in unearthing evidence of fraud against Lazarenko. Joint investigative liberty and resources were crucial to asset recovery efforts in the 1990s—resources he said were drastically reduced once attention was turned away from investigating capital flight from former Soviet states to antiterrorism efforts after the September 11 attacks. Professor Kristian Lasslet of Ulster University asked the question of what to do with restituted assets when the government to which the asset belongs may be part of the corruption scheme. Lasslet cited the example of Kazakhstan Two, in which seized assets flowed back into questionable hands by bungled efforts from the World Bank and the Swiss government. He contrasted the case with Kazakhstan One, in which asset recovery was handled well at arm’s length of parties that may be interested in funneling assets back into the cycle of fraud. Sona Ayvazyan of Transparency International Armenia offered optimism in the Armenian government’s renewed approach toward transparency and anticorruption efforts but warned of the serious lack of capacity on asset recovery infrastructure. Though the leadership may be serious about removing corruption, she spoke of a discredited judiciary that poses serious problems for Armenia’s future anticorruption policies. According to Karen Greenaway from the FBI (ret.), civil society and non-governmental societies must reassert their role in the conversation on asset recovery. She highlighted the severe lack in bureaucratic infrastructure for asset recovery in many nations afflicted with corruption—particularly Ukraine. The paradox, she asserted, was between the structure of corruption, which is designed to dissipate large quantities of money very rapidly, and the system to repatriate those assets, which is painfully slow and often lacking in resources.  

  • Helsinki Commission Briefing to Focus on Asset Recovery In Eurasia

    WASHINGTON—The Commission on Security and Cooperation in Europe, also known as the Helsinki Commission, today announced the following briefing: ASSET RECOVERY IN EURASIA Repatriation or Repay the Patron? Wednesday, February 13, 2019 10:00 a.m. Dirksen Senate Office Building Room 562 Live Webcast: www.facebook.com/HelsinkiCommission Asset recovery—the process of repatriating funds previously stolen by corrupt officials—remains one of the most contentious points in the fight against transnational corruption. Though only a small percentage of stolen funds are ever recovered, major questions exist about the best ways to ensure that repatriated funds don’t simply reenter the same patronage cycle from which they came. Is it possible to ensure that recovered assets actually serve the people from whom they have been stolen? This briefing will explore approaches to repatriation in Armenia, Ukraine, and Kazakhstan. Panelists will discuss best practices and challenges in asset recovery as well as appropriate policy responses, both by the state in question and the international community, and compare the respective approaches of the three countries. The following panelists are scheduled to participate: Sona Ayvazyan, Executive Director, Transparency International Armenia Bryan Earl, Retired Supervisory Special Agent/Assistant General Counsel, Federal Bureau of Investigation Karen Greenaway, Retired Supervisory Special Agent, Federal Bureau of Investigation Kristian Lasslett, Professor of Criminology and Head of School, Ulster University

  • Whitehouse, Wicker, Jackson Lee, Burgess Introduce Rodchenkov Act

    WASHINGTON—One week after the World Anti-Doping Agency (WADA) failed to suspend the Russian Anti-Doping Agency (RUSADA) for missing a crucial December 31, 2018, deadline, Senators Sheldon Whitehouse (RI) and Roger Wicker (MS) and Representatives Sheila Jackson Lee (TX-18) and Michael Burgess (TX-26) today introduced in the Senate and the House the Rodchenkov Anti-Doping Act. The legislation, originally introduced in the 115th Congress, would criminalize international doping fraud conspiracies. “We know from experience that we must meet the bad behavior of Russia’s corrupt government with strength. Anything less they take as encouragement,” said Senator Whitehouse. “That’s why the responses of WADA and the International Olympic Committee to the Russian doping scandal fall woefully short. Now is the time to create stiff penalties for Russia’s cheating and send a signal that Russia and other sponsors of state-directed fraud can’t use corruption as a tool of foreign policy.” “Without Dr. Rodchenkov’s courage, we would still be in the dark about the extent of Russia’s doping fraud. He is now in hiding, fearing that Russian thugs may one day come for him as they did Sergei Skripal in London. Whistleblowers should not be forced to live this way. Dr. Rodchenkov and those other brave individuals who reveal the crimes of authoritarian regimes deserve better,” said Senator Wicker. “Russia’s full-throated defiance of international norms and standards undermines the rule of law and demands the strongest of responses. The Putin regime uses strategic corruption to destabilize peaceful civil society, democratic institutions, and the alliances that have been the foundation of transatlantic peace and prosperity for the past 70-plus years. This long overdue bill would define doping for what it is: fraud.  Never again should Russia or any other authoritarian state believe that there will be no legal consequences for committing doping fraud conspiracies,” said Representative Jackson Lee. “WADA’s most recent decision to give Russia a free pass clearly conveys that leaders of international sport governance refuse to uphold the integrity of sport. The current framework has proven ineffective and fundamentally unfit to defend clean athletes and prevent doping fraud. Russia’s state-sponsored doping scandal not only caused damages to clean international athletes, but also resulted in harm to its own athletes.  It is time to restore a level playing field by ensuring that the rights of U.S. and all clean athletes are respected. RADA will keep fraud away from competitions that touch the U.S. market and interests, and protect our athletes,” said Representative Burgess. The Rodchenkov Anti-Doping Act will: Establish criminal penalties for participating in a scheme in commerce to influence a major international sport competition through prohibited substances or methods.  This section applies to all major international sport competitions in which U.S. athletes participate, and where organizing entities receive sponsorship from companies doing business in the United States or are compensated for the right to broadcast their competition there, so that international fraud against Americans will not go unpunished. Penalties will include fines of up to $1,000,000, or imprisonment of up to ten years, depending on the offense. Provide restitution to victims of such conspiracies.  Athletes and other persons who are victims of major international doping fraud conspiracies shall be entitled to mandatory restitution for losses inflicted upon them by fraudsters and conspirators. Protect whistleblowers from retaliation.  By criminalizing participation in a major international doping fraud conspiracy, whistleblowers will be included under existing witness and informant protection laws. Establish coordination and sharing of information with the United States Anti-Doping Agency.  Federal agencies involved in the fight against doping shall coordinate and share information with USADA, whose mission is to preserve the integrity of competition, inspire true sport, and protect the rights of athletes, to enhance their collective efforts to curb doping fraud. Senators Ben Cardin (MD) and Marco Rubio (FL) are original cosponsors of the bill in the Senate.  Original cosponsors in the House include Representatives Steve Cohen (TN-09), Richard Hudson (NC-08), Diana DeGette (CO-01), Peter King (NY-03), Alcee Hastings (FL-20), Billy Long (MO-07), Hank Johnson (GA-04), Chris Smith (NJ-04), Gwen Moore (WI-04), Bobby Rush (IL-01), and Paul Tonko (NY-20). In 2016, Dr. Rodchenkov exposed the Russian state-sponsored doping scandal that took place during the 2014 Sochi Olympics.  By deceiving international anti-doping authorities and swapping athletes’ samples, Russian officials cheated U.S. athletes out of Olympic glory and U.S. corporations out of honest sponsorships.  These corrupt officials used bribes and illicit payments, sometimes through U.S. financial institutions, to commit this fraud.  Unfortunately, the masterminds behind the Russian sports doping operation escaped punishment for their actions because there was no U.S. legal mechanism to bring them to justice. In February 2018, the Helsinki Commission held a briefing featuring Dr. Rodchenkov’s attorney, Jim Walden, on combating fraud in sports and the role of whistleblowers in safeguarding the integrity of international competitions.  In March, Commissioners Senators Cardin and Cory Gardner (R-CO) and Representative Jackson Lee met with Dr. Rodchenkov to discuss the threat posed by Russia to the United States, corruption in international sports bodies, and how the United States can contribute to the international effort to counter doping fraud. In July, the Helsinki Commission held a hearing that explored the interplay between doping fraud and globalized corruption and U.S. policy responses, including the Rodchenkov Anti-Doping Act. In October 2018, the U.S. Department of Justice indicted seven individuals for involvement in a Russian-operated military intelligence program in which GRU officers are alleged to have conducted sophisticated hacking of U.S. and international anti-doping agencies who investigated and publicly condemned Russia’s state-sponsored doping program.  The hacking victims also included 230 athletes from approximately 30 countries.  The operation was part of a disinformation campaign in which victims’ personal email communications and individual medical and drug testing information, sometimes modified from its original form, was used to actively promote media coverage to further a narrative favorable to the Russian government.

  • Senators Whitehouse and Hatch Introduce Rodchenkov Anti-Doping Act

    WASHINGTON—Helsinki Commissioner Sen. Sheldon Whitehouse (RI) and Sen. Orrin Hatch (UT) today introduced the Rodchenkov Anti-Doping Act. Named for Russian whistleblower Dr. Grigory Rodchenkov, the bipartisan legislation establishes criminal penalties on individuals involved in doping fraud conspiracies affecting major international competitions. Earlier this year, Helsinki Commissioners Rep. Sheila Jackson Lee (TX-18) and Rep. Michael Burgess (TX-26) introduced the Rodchenkov Anti-Doping Act in the House of Representatives. “To remain a ‘city on a hill,’ America must hold the crooked and corrupt accountable whenever we can. That means forcefully confronting Russia’s use of corruption as a tool of foreign policy,” said Sen. Whitehouse. “In the face of certain retaliation, Dr. Rodchenkov revealed sweeping Russian state-sponsored doping. This bill would create consequences for Russia’s cheating, and send a strong signal that Russia and other sponsors of state-directed fraud and corruption no longer enjoy impunity.” “For too long, internationally agreed upon anti-doping rules have been broken with impunity. Athletes have been defrauded by coordinated, and in some cases state-sponsored, doping fraud schemes that call into question the integrity and fairness central to all competitions,” said Senator Hatch. “This bill is a long overdue step to deter and punish individuals and state actors who would attempt to defraud international competitions through doping.” In 2016, Dr. Rodchenkov exposed the Russian state-sponsored doping scandal that took place during the 2014 Sochi Olympics. By deceiving international anti-doping authorities and swapping athletes’ samples, Russian officials cheated U.S. athletes out of Olympic glory and U.S. corporations out of honest sponsorships. These corrupt officials used bribes and illicit payments, sometimes through U.S. financial institutions, to commit this fraud. Unfortunately, the masterminds behind the Russian sports doping operation escaped punishment for their actions because there was no U.S. legal mechanism to bring them to justice. With the recent decision of the World Anti-Doping Agency to reinstate the Russian Anti-Doping Agency, the matter now appears closed at the international level with no meaningful consequences for the Russian regime or the officials who perpetrated the scheme. The Rodchenkov Anti-Doping Act will: Establish criminal penalties for participating in a scheme in commerce to influence a major international sport competition through prohibited substances or methods. This section applies to all major international sport competitions in which U.S. athletes participate, and where organizing entities receive sponsorship from companies doing business in the United States or are compensated for the right to broadcast their competition there, so that international fraud against Americans will not go unpunished. Penalties will include fines of up to $1,000,000, or imprisonment of up to ten years, depending on the offense. Provide restitution to victims of such conspiracies. Athletes and other persons who are victims of major international doping fraud conspiracies shall be entitled to mandatory restitution for losses inflicted upon them by fraudsters and conspirators. Protect whistleblowers from retaliation. By criminalizing participation in a major international doping fraud conspiracy, whistleblowers will be included under existing witness and informant protection laws. Establish coordination and sharing of information with the United States Anti-Doping Agency. Federal agencies involved in the fight against doping shall coordinate and share information with USADA, whose mission is to preserve the integrity of competition, inspire true sport, and protect the rights of athletes, to enhance their collective efforts to curb doping fraud. “I am humbled and honored to see the introduction of the Rodchenkov Anti-Doping Act in the Senate today,” said Dr. Rodchenkov. “I would like to express my deepest gratitude to Sen. Whitehouse, Sen. Hatch, and the Helsinki Commission for their courage and leadership in the protection of whistleblowers who come forward to speak the truth. I believe that this legislation holds the promise to finally protect athletes and international competitions from and corruption and interference that we see continues today. This broad support from Congress is vital to our fight for justice and fairness in the international arena of sport.” In February 2018, the Helsinki Commission held a briefing featuring Dr. Rodchenkov’s attorney, Jim Walden, on combating fraud in sports and the role of whistleblowers in safeguarding the integrity of international competitions. In March, Commissioners Sen. Ben Cardin (MD), Sen. Cory Gardner (CO), and Rep. Jackson Lee met with Dr. Rodchenkov to discuss the threat posed by Russia to the United States, corruption in international sports bodies, and how the United States can contribute to the international effort to counter doping fraud. In July, the Helsinki Commission held a hearing that explored the interplay between doping fraud and globalized corruption and U.S. policy responses, including the Rodchenkov Anti-Doping Act. In October, the U.S. Department of Justice indicted seven individuals for involvement in a Russian-operated military intelligence program in which GRU officers are alleged to have conducted sophisticated hacking of U.S. and international anti-doping agencies who investigated and publicly condemned Russia’s state-sponsored doping program. The hacking victims also included 230 athletes from approximately 30 countries. The operation was part of a disinformation campaign in which victims’ personal email communications and individual medical and drug testing information, sometimes modified from its original form, was used to actively promote media coverage to further a narrative favorable to the Russian government.

  • All Bets Are Off

    Corruption—including bribery, doping fraud, and match-fixing—permeates international sport. Despite a 2015 FBI investigation into the Fédération Internationale de Football Association (FIFA) that indicted more than twenty-five top FIFA officials and associates for alleged decades-long racketeering, wire fraud, and money laundering, international sport governance bodies remain compromised and U.S. athletes remain vulnerable. Corruption in sport has become an even more pressing concern following the U.S. Supreme Court’s May 14 decision declaring the Amateur Sports Protection Act unconstitutional, unleashing a sports gambling industry in the United States potentially valued at $400 billion. This lucrative and unregulated market may now be susceptible to the same globalized corruption that has come to define international sport. Panelists provided their insights into the structure of international sport, the globalization of sports gambling, and how to protect American sport from the corruption that has swept over the rest of the world.

  • Corruption in Sport Focus of Upcoming Helsinki Commission Briefing

    WASHINGTON—The Commission on Security and Cooperation in Europe, also known as the Helsinki Commission, today announced the following briefing: ALL BETS ARE OFF Gambling, Match-Fixing, and Corruption in Sport Tuesday, December 4, 2018 11:30 a.m. Russell Senate Office Building Room 188 Live Webcast: www.facebook.com/HelsinkiCommission Corruption—including bribery, doping fraud, and match-fixing—permeates international sport. Despite a 2015 FBI investigation into the Fédération Internationale de Football Association (FIFA) that indicted more than twenty-five top FIFA officials and associates for alleged decades-long racketeering, wire fraud, and money laundering, international sport governance bodies remain compromised and U.S. athletes remain vulnerable. Corruption in sport has become an even more pressing concern following the U.S. Supreme Court’s May 14 decision declaring the Amateur Sports Protection Act unconstitutional, unleashing a sports gambling industry in the United States potentially valued at $400 billion. This lucrative and unregulated market may now be susceptible to the same globalized corruption that has come to define international sport. Panelists will provide their insights into the structure of international sport, the globalization of sports gambling, and how to protect American sport from the corruption that has swept over the rest of the world. The following panelists are scheduled to participate: Declan Hill, Professor of Investigations, University of New Haven David Larkin, U.S. lawyer; co-founder of ChangeFIFA Marko Stanovic, Balkan-based former match-fixer Alexandra Wrage, President and CEO, TRACE International; former member of FIFA’s failed Independent Governance Committee

  • Lies, Bots, and Social Media

    From the latest revelations about Facebook to ongoing concerns over the integrity of online information, the U.S. public has never been more vulnerable or exposed to computational propaganda: the threat posed by sophisticated botnets able to post, comment on, and influence social media and other web outlets to generate a desired outcome or simply sow distrust and disorder.  What can be done to confront and defeat these malevolent actors before they dominate civil discourse on the Internet? One possibility is the use of algorithmic signal reading which displays for users the geographic origin of a given post. Another answer may lie in improving how websites like Facebook curate their content, so the user can make more informed choices.  At this Helsinki Commission briefing, distinguished experts examined the implications of computational propaganda on national and international politics and explored options available to Congress and the private sector to confront and negate its pernicious influence.

Pages