Latest news with #TransparencyInternational
The Advertiser
9 hours ago
- Politics
- The Advertiser
Ukraine moves to restore power of anti-graft agencies
Ukraine's parliament has overwhelmingly approved a bill presented by President Volodymyr Zelenskiy that restores the independence of two of the country's key anti-corruption watchdogs, reversing his contentious move last week that curbed their power and brought an outcry. Last week's measure by Zelenskiy to place the watchdogs under the oversight of the prosecutor-general prompted rebukes from Ukrainians, the European Union and international rights groups. It raised fears the government could meddle in investigations and potentially shield its supporters from scrutiny. Fighting entrenched corruption is crucial for Ukraine's aspirations to join the EU and maintain access to billions of dollars of vital Western aid in the nearly three-and-a-half year all-out war. It's also an effort that enjoys broad public support. EU Enlargement Commissioner Marta Kos, who called last week's legislative changes "a serious step back", welcomed approval of the bill, saying MPs had "corrected last week's damaging vote". "Today's law restores key safeguards, but challenges remain," Kos, who monitors the record of countries that are candidates to join the bloc, wrote on X. Backlash against Zelenskiy's measures brought street protests across the country that were the first major demonstrations since Russia's full-scale invasion began on February 24, 2022. Though the protests did not call for the president's removal, the controversy threatened to undermine public trust in their leaders at a critical time. Russia's bigger army is accelerating its efforts to pierce Ukraine's frontline defences and is escalating its bombardment of Ukrainian cities. There is also uncertainty over how much additional weaponry Ukraine's Western partners can provide and how quickly. The Ukrainian branch of Transparency International also criticised last week's legislation, saying it weakened one of the most significant reforms since what Ukraine calls its Revolution of Dignity in 2014. Zelenskiy said his goal had been to speed up prolonged investigations, ensure more convictions and remove Russian meddling in investigations, which he did not detail. He said he had taken note of the protests and decided to present a new bill to parliament underscoring that the prosecutor-general and his deputies could not give orders to anti-graft agencies or interfere in their work. MP in Kyiv approved Zelenskiy's new proposal with 331 votes and nine abstentions on Thursday. Ukraine's parliament has overwhelmingly approved a bill presented by President Volodymyr Zelenskiy that restores the independence of two of the country's key anti-corruption watchdogs, reversing his contentious move last week that curbed their power and brought an outcry. Last week's measure by Zelenskiy to place the watchdogs under the oversight of the prosecutor-general prompted rebukes from Ukrainians, the European Union and international rights groups. It raised fears the government could meddle in investigations and potentially shield its supporters from scrutiny. Fighting entrenched corruption is crucial for Ukraine's aspirations to join the EU and maintain access to billions of dollars of vital Western aid in the nearly three-and-a-half year all-out war. It's also an effort that enjoys broad public support. EU Enlargement Commissioner Marta Kos, who called last week's legislative changes "a serious step back", welcomed approval of the bill, saying MPs had "corrected last week's damaging vote". "Today's law restores key safeguards, but challenges remain," Kos, who monitors the record of countries that are candidates to join the bloc, wrote on X. Backlash against Zelenskiy's measures brought street protests across the country that were the first major demonstrations since Russia's full-scale invasion began on February 24, 2022. Though the protests did not call for the president's removal, the controversy threatened to undermine public trust in their leaders at a critical time. Russia's bigger army is accelerating its efforts to pierce Ukraine's frontline defences and is escalating its bombardment of Ukrainian cities. There is also uncertainty over how much additional weaponry Ukraine's Western partners can provide and how quickly. The Ukrainian branch of Transparency International also criticised last week's legislation, saying it weakened one of the most significant reforms since what Ukraine calls its Revolution of Dignity in 2014. Zelenskiy said his goal had been to speed up prolonged investigations, ensure more convictions and remove Russian meddling in investigations, which he did not detail. He said he had taken note of the protests and decided to present a new bill to parliament underscoring that the prosecutor-general and his deputies could not give orders to anti-graft agencies or interfere in their work. MP in Kyiv approved Zelenskiy's new proposal with 331 votes and nine abstentions on Thursday. Ukraine's parliament has overwhelmingly approved a bill presented by President Volodymyr Zelenskiy that restores the independence of two of the country's key anti-corruption watchdogs, reversing his contentious move last week that curbed their power and brought an outcry. Last week's measure by Zelenskiy to place the watchdogs under the oversight of the prosecutor-general prompted rebukes from Ukrainians, the European Union and international rights groups. It raised fears the government could meddle in investigations and potentially shield its supporters from scrutiny. Fighting entrenched corruption is crucial for Ukraine's aspirations to join the EU and maintain access to billions of dollars of vital Western aid in the nearly three-and-a-half year all-out war. It's also an effort that enjoys broad public support. EU Enlargement Commissioner Marta Kos, who called last week's legislative changes "a serious step back", welcomed approval of the bill, saying MPs had "corrected last week's damaging vote". "Today's law restores key safeguards, but challenges remain," Kos, who monitors the record of countries that are candidates to join the bloc, wrote on X. Backlash against Zelenskiy's measures brought street protests across the country that were the first major demonstrations since Russia's full-scale invasion began on February 24, 2022. Though the protests did not call for the president's removal, the controversy threatened to undermine public trust in their leaders at a critical time. Russia's bigger army is accelerating its efforts to pierce Ukraine's frontline defences and is escalating its bombardment of Ukrainian cities. There is also uncertainty over how much additional weaponry Ukraine's Western partners can provide and how quickly. The Ukrainian branch of Transparency International also criticised last week's legislation, saying it weakened one of the most significant reforms since what Ukraine calls its Revolution of Dignity in 2014. Zelenskiy said his goal had been to speed up prolonged investigations, ensure more convictions and remove Russian meddling in investigations, which he did not detail. He said he had taken note of the protests and decided to present a new bill to parliament underscoring that the prosecutor-general and his deputies could not give orders to anti-graft agencies or interfere in their work. MP in Kyiv approved Zelenskiy's new proposal with 331 votes and nine abstentions on Thursday. Ukraine's parliament has overwhelmingly approved a bill presented by President Volodymyr Zelenskiy that restores the independence of two of the country's key anti-corruption watchdogs, reversing his contentious move last week that curbed their power and brought an outcry. Last week's measure by Zelenskiy to place the watchdogs under the oversight of the prosecutor-general prompted rebukes from Ukrainians, the European Union and international rights groups. It raised fears the government could meddle in investigations and potentially shield its supporters from scrutiny. Fighting entrenched corruption is crucial for Ukraine's aspirations to join the EU and maintain access to billions of dollars of vital Western aid in the nearly three-and-a-half year all-out war. It's also an effort that enjoys broad public support. EU Enlargement Commissioner Marta Kos, who called last week's legislative changes "a serious step back", welcomed approval of the bill, saying MPs had "corrected last week's damaging vote". "Today's law restores key safeguards, but challenges remain," Kos, who monitors the record of countries that are candidates to join the bloc, wrote on X. Backlash against Zelenskiy's measures brought street protests across the country that were the first major demonstrations since Russia's full-scale invasion began on February 24, 2022. Though the protests did not call for the president's removal, the controversy threatened to undermine public trust in their leaders at a critical time. Russia's bigger army is accelerating its efforts to pierce Ukraine's frontline defences and is escalating its bombardment of Ukrainian cities. There is also uncertainty over how much additional weaponry Ukraine's Western partners can provide and how quickly. The Ukrainian branch of Transparency International also criticised last week's legislation, saying it weakened one of the most significant reforms since what Ukraine calls its Revolution of Dignity in 2014. Zelenskiy said his goal had been to speed up prolonged investigations, ensure more convictions and remove Russian meddling in investigations, which he did not detail. He said he had taken note of the protests and decided to present a new bill to parliament underscoring that the prosecutor-general and his deputies could not give orders to anti-graft agencies or interfere in their work. MP in Kyiv approved Zelenskiy's new proposal with 331 votes and nine abstentions on Thursday.
Perth Now
10 hours ago
- Politics
- Perth Now
Ukraine moves to restore power of anti-graft agencies
Ukraine's parliament has overwhelmingly approved a bill presented by President Volodymyr Zelenskiy that restores the independence of two of the country's key anti-corruption watchdogs, reversing his contentious move last week that curbed their power and brought an outcry. Last week's measure by Zelenskiy to place the watchdogs under the oversight of the prosecutor-general prompted rebukes from Ukrainians, the European Union and international rights groups. It raised fears the government could meddle in investigations and potentially shield its supporters from scrutiny. Fighting entrenched corruption is crucial for Ukraine's aspirations to join the EU and maintain access to billions of dollars of vital Western aid in the nearly three-and-a-half year all-out war. It's also an effort that enjoys broad public support. EU Enlargement Commissioner Marta Kos, who called last week's legislative changes "a serious step back", welcomed approval of the bill, saying MPs had "corrected last week's damaging vote". "Today's law restores key safeguards, but challenges remain," Kos, who monitors the record of countries that are candidates to join the bloc, wrote on X. Backlash against Zelenskiy's measures brought street protests across the country that were the first major demonstrations since Russia's full-scale invasion began on February 24, 2022. Though the protests did not call for the president's removal, the controversy threatened to undermine public trust in their leaders at a critical time. Russia's bigger army is accelerating its efforts to pierce Ukraine's frontline defences and is escalating its bombardment of Ukrainian cities. There is also uncertainty over how much additional weaponry Ukraine's Western partners can provide and how quickly. The Ukrainian branch of Transparency International also criticised last week's legislation, saying it weakened one of the most significant reforms since what Ukraine calls its Revolution of Dignity in 2014. Zelenskiy said his goal had been to speed up prolonged investigations, ensure more convictions and remove Russian meddling in investigations, which he did not detail. He said he had taken note of the protests and decided to present a new bill to parliament underscoring that the prosecutor-general and his deputies could not give orders to anti-graft agencies or interfere in their work. MP in Kyiv approved Zelenskiy's new proposal with 331 votes and nine abstentions on Thursday.
Atlantic
4 days ago
- Politics
- Atlantic
Zelensky Went Soft on Corruption Because the U.S. Did
Volodymyr Zelensky built a mythic reputation as a lonely bulwark against global tyranny. On Tuesday, the president of Ukraine signed that reputation away, enacting a law that gutted the independence of his country's anti-corruption agencies just as they closed in on his closest political allies, reportedly including one of his longtime business partners and a former deputy prime minister. To justify the decision, he cloaked it in an invented conspiracy, insinuating that Russian moles had implanted themselves in the machinery of justice. This is a scoundrel's playbook. Despite the ongoing war, Ukrainians swamped the streets of Kyiv in protest of their president's betrayal of democracy, forcing Zelensky to introduce new legislation reversing the bill he had just signed into law. It was a concession of error—and possibly an empty gesture, because the new bill is hardly a lock to pass the legislature. That Zelensky brazenly weakened Ukraine's anti-corruption guardrails in the first place shouldn't come as a shock. They were erected only under sustained pressure from the Obama administration as part of an explicit bargain: In exchange for military and financial support, Ukraine would rein in its oligarchs and reform its public institutions. Over time, the country drifted, however unevenly, toward a system that was more transparent, less captive to hidden hands. But in the Trump era, the United States has grown proudly tolerant of global corruption. In fact, it actively encourages its proliferation. Beyond the president's own venal example, this is deliberate policy. Brick by brick, Donald Trump has dismantled the apparatus that his predecessors built to constrain global kleptocracy, and leaders around the world have absorbed the fact that the pressure for open, democratic governance is off. Anne Applebaum: Kleptocracy, Inc. Three weeks into his current term, Trump paused enforcement of the Foreign Corrupt Practices Act—loudly declaring that the United States wasn't going to police foreign bribery. Weeks later, America skipped a meeting of the Organization for Economic Cooperation and Development's anti-bribery working group for the first time since its founding 30 years ago. As the head of the anti-corruption group Transparency International warned, Trump was sending 'a dangerous signal that bribery is back on the table.' For decades, the more than prosecute bribery cases; it tried to cultivate civil-society organizations that helped emerging democracies combat corruption themselves. But upon returning to the presidency, Trump destroyed USAID, the National Endowment for Democracy, and the U.S. Institute of Peace, dismantling the constellation of government agencies that had quietly tutored investigative journalists, trained judges, and funded watchdogs. These groups weren't incidental casualties in DOGE's seemingly scattershot demolition of the American state. Trump long loathed the Foreign Corrupt Practices Act, which he described as a 'horrible law,' an animus stoked by the fact that some of his closest associates have been accused of murky dealings abroad. Crushing programs and organizations that fight kleptocracy meshed with the 'America First' instincts of his base; the likes of Tucker Carlson and Steve Bannon abhor the export of liberal values to the world. From the wreckage of these institutions, a Trump Doctrine has taken shape, one that uses American economic and political power to shield corrupt autocrats from accountability. Benjamin Netanyahu, on trial for bribery, fraud, and breach of trust, has been a prime beneficiary. Just as he was preparing to testify under oath, Trump denounced the prosecution as a 'political witch hunt' and threatened to withhold U.S. aid if the trial moved forward. Given Israel's reliance on American support, the threat had bite. Not long after Trump's outburst, the court postponed Netanyahu's testimony, citing national-security concerns. Trump acts as if justice for strongmen is a moral imperative. No retaliatory measure is apparently off limits. To defend his populist ally in Brazil, Jair Bolsonaro, who faces charges related to an attempted coup, Trump revoked the visa of Alexandre de Moraes, the Supreme Court justice overseeing the case. Last month, Trump threatened to impose 50 percent tariffs on Brazilian steel, aluminum, and agricultural exports to punish the country for Bolsonaro's prosecution. This is hard-nosed realism, not just ideological kinship. To protect himself, Trump must defend the rights of populist kleptocrats everywhere. He must discredit the sort of prosecution that he might someday face. That requires recasting malfeasance as perfectly acceptable statesmanship. Listen: The kleptocracy club By stripping anti-corruption from the moral vocabulary of American foreign policy, Trump is reengineering the global order. He's laying the foundation for a new world in which kleptocracy flourishes unfettered, because there's no longer a superpower that, even rhetorically, aspires to purge the world of corruption. Of course, the United States has never pushed as hard as it could, and ill-gotten gains have been smuggled into its bank accounts, cloaked in shell companies. Still, oligarchs were forced to disguise their thievery, because there was at least the threat of legal consequence. In the world that Trump is building, there's no need for disguise—corruption is a credential, not a liability. Zelensky is evidence of the new paradigm. Although his initial campaign for president in 2019 was backed by an oligarch, he could never be confused for Bolsonaro or Netanyahu. He didn't enrich himself by plundering the state. But now that Trump has given the world permission to turn away from the ideals of good governance, even the sainted Zelensky has seized the opportunity to protect the illicit profiteering of his friends and allies. Yet there's a legacy of the old system that Trump hasn't wholly eliminated: the institutions and civil societies that the United States spent a generation helping build. In Ukraine, those organizations and activists have refused to accept a retreat into oligarchy, and they might still preserve their governmental guardians against corruption. For now, they are all that remain between the world and a new golden age of impunity.
Globe and Mail
4 days ago
- Business
- Globe and Mail
Financial crime loopholes in U.S. stablecoin law offer a cautionary tale for Canada
Hoopla over America's new stablecoin law is fuelling fears that Canada is missing out on the latest cryptocurrency boom. The Guiding and Establishing National Innovation for U.S. Stablecoins Act, or the Genius Act, was signed into law by President Donald Trump last week, creating a regulatory framework for stablecoins pegged to the U.S. dollar. (Stablecoins are cryptocurrencies that have values tied to another form of currency or financial asset to maintain steady prices.) A related bill, the Digital Asset Market Clarity Act, advanced to the U.S. Senate. The Clarity Act for short, it proposes to divvy up regulatory oversight for virtual assets between the Securities and Exchange Commission and the Commodity Futures Trading Commission. The crypto irony: Trump's new laws for stablecoins will only reinforce U.S. dollar dominance At first blush, the U.S. government's 'crypto week' was a resounding success because those two pieces of legislation are helping digital assets go mainstream south of the border. But anti-corruption groups, including Transparency International U.S., are warning the Genius Act and the Clarity Act include loopholes for money laundering and sanctions evasion, a forewarning for other countries, including Canada, as they vie for leadership in the US$5.7-billion global digital asset economy. 'To other countries, I would encourage lawmakers to actually take a risk-based approach and take into consideration that we have a global economy,' said Gary Kalman, executive director of Transparency International U.S., in an interview on Thursday. As Mr. Kalman points out, crypto is not a typical brick-and-mortar business and it carries a higher risk for illicit finance. That's because it is relatively easy to set up offshore crypto-issuing companies that sell into other countries without having a physical presence in those jurisdictions, he said. 'That is the type of risk analysis we would urge other countries to consider when moving forward with legislation,' he added. Transparency International U.S., the Free Russia Foundation, the Financial Accountability and Corporate Transparency Coalition and the Hudson Institute's Kleptocracy Initiative offer a sobering analysis of America's signature stablecoin legislation. 'The risks are real and urgent. Iran, North Korea and Russia have turned to cryptocurrency and stablecoins to bypass international sanctions and move illicit funds,' the anti-corruption groups state in a joint letter to top U.S. congressional leaders, including the Speaker of the House of Representatives Mike Johnson. 'If the U.S. does not close the loopholes that can be exploited by these actors, the financial architecture advanced in GENIUS and CLARITY will further accelerate the growth of opaque and lawless financial networks.' Specifically, the groups outlined four key problems with the two pieces of legislation. The first involves the Genius Act's differential treatment of stablecoin issuers registered in the United States versus those based in foreign or offshore jurisdictions. Under the law, foreign stablecoin issuers, such as Tether, the world's largest stablecoin, are able to participate in U.S. markets via decentralized exchanges and peer-to-peer transfers even if they don't register, the groups say. The U.S. Treasury, meanwhile, has the latitude to provide exemptions to foreign issuers, allowing them to participate in centralized exchanges after the expiration of a three-year grace period. As a result, foreign issuers will not receive proper regulatory oversight. A second problem involves the Genius Act's failure to impose anti-money-laundering (AML) and anti-terrorist-financing obligations on secondary-market participants, including digital asset exchanges, custodians and brokers. 'The result is a bill that affirms the status quo while ignoring how kleptocrats, terrorists and other criminal actors access and move digital assets,' states the letter. 'Further, GENIUS weakens compliance by stating that issuers must follow AML rules, only 'as applicable' – a vague and unenforceable standard.' A third weakness involves glaring gaps in sanctions enforcement. Notably, the Genius Act does not apply to anonymizing technologies, such as mixers, and other intermediaries that obscure funding sources, the groups say. The Clarity Act, meanwhile, overlooks sanctions evasion entirely even though digital assets have become a favoured tool of criminals to sidestep economic restrictions. Lastly, exemptions for decentralized services and platforms under the Genius Act, coupled with the Clarity Act's failure to require ownership disclosures from all market participants, will frustrate enforcement of those laws, according to the groups. We won't let Americans buy our biggest bank. Why let them buy our biggest crypto firm? Canada, meanwhile, is facing mounting calls to create its own comprehensive national strategy for crypto, including stablecoins. 'Stablecoins are reshaping global finance, but Canada is still on the sidelines,' states a new report by Western University's Ivey Business School. 'While other countries use them to strengthen payments and attract investment, Canada lacks a homegrown alternative tied to its currency.' The report rightly urges Canada to create a 'unified regulatory framework' for digital assets, noting oversight is currently split among regulators including the Canada Revenue Agency, the Canadian Securities Administrators, the Financial Transactions and Reports Analysis Centre of Canada and provincial agencies. Creating a national regulatory framework should indeed be a priority because businesses need a consistent set of rules. But in doing so, the federal government must draw lessons from America's legislative missteps on financial crime. Canada is already being marketed abroad as a secrecy jurisdiction that can be readily exploited by kleptocrats, money launderers, sanctions evaders and other crooks. In the rush to catch up on crypto, Ottawa cannot afford to replicate Washington's mistakes.
National Observer
6 days ago
- Politics
- National Observer
Montreal group campaigns to restore US foreign aid to Times Square
A Montreal-based organization promoting democracy and digital rights is using a billboard in New York's iconic Times Square to urge Americans to resist cuts to US foreign aid. "A retreat by the United States will mean that the weight balances in favour of digital authoritarianism, and away from what are essentially Canadian values," said Alex Dalessio, executive director of eQualitie. The organization works to advance digital security for civil society and media around the world, allowing people in oppressive states to circumvent censorship and surveillance to communicate securely. Dalessio's group has partnered with the American branch of Transparency International to post a 10-second message urging Americans to "support foreign aid" on a video billboard in the heart of Manhattan over 90 days. "Instability abroad puts American jobs and safety at risk," the billboard message says, adding that foreign aid builds "a stronger America." The message will be displayed more than 11,000 times. Dalessio said the campaign isn't "targeted" at the administration of US President Donald Trump and noted that European countries are also cutting back on foreign aid. His organization says it's politically neutral but wants Americans to think about the impacts of the US pulling back from foreign aid after decades of funding development work that has helped spread democratic values around the world. "Regardless of who made these changes to foreign aid, we would have made this message," Dalessio said. "The role of foreign aid, in the advancement of tools that support informed and educated democracies around the world, cannot be overstated." Trump tasked billionaire Elon Musk with gutting the United States Agency for International Development earlier this year, slashing its workforce and eliminating 83 per cent of USAID 's programs. The cuts have led to sudden halts in medical trials, hunger in refugee camps and cutbacks in access to HIV treatment and contraceptives in poorer countries. Dalessio said it's not clear yet what kind of impact those cuts have had on efforts to fight political repression abroad. Washington subsequently restored funding to some of the programs it had cut, while others went through what Dalessio described as "significant" layoffs. "We felt to some extent like there were a lot of articles about it, but there wasn't a lot of action being taken," he said. Transparency International fights corruption abroad by assessing governance in various countries, while eQualitie works to empower those trying to build strong civil societies. Their work involves training locals to use technology to hold their governments to account and push back on repression. Dalessio said that repressive states have been using technology to surveil citizens and block their access to outside news "as an extension of state power … to manage dissent, to direct election outcomes, or to influence the population at large." "This is certainly becoming normalized," he added. "We're seeing it in on every continent." Dalessio said he hopes the US reverses the cuts and that Canada joins its peers in "leaning in and supporting some of these programs." He argued that foreign aid spending could even count toward NATO's military spending target for defence-related infrastructure, since instability leads to costly conflict. NATO itself has said that hostile states are actively undermining democracies and neighbouring states. "What's going on in the US will have implications for democracy worldwide," Dalessio said.
