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Lawyers represent a significant threat to the integrity of the U.S. sanctions regime. This report analyzes that threat in the context of Russia’s aggressive war against Ukraine. Sanctions, particularly individual sanctions, are a central weapon in the United States’ national security arsenal. This report recommends that Congress, federal agencies, and state bar associations implement a comprehensive regulatory regime for lawyers engaging in certain transactional work to ensure U.S. lawyers are no longer enablers of sanctions evasion.

This report recommends amending the Banking Secrecy Act (BSA) to subject financial transactional work completed by lawyers to the same anti-money laundering and anti-sanctions evasion requirements to which banks are subject. Lawyers would be required to verify the true identity of their clients when completing financial transactions on their behalf and file reports with the government on suspicious client activity. This requirement would prevent oligarchs from gaming the U.S. anti-money laundering (AML) system by using lawyers instead of banks for these transactions. Congress must also fully fund the agencies that would implement this new law: the Financial Crimes Enforcement Network (FinCEN), the Office of Foreign Assets Control (OFAC), and the Department of Justice (DOJ). FinCEN must issue comprehensive rules clarifying lawyers’ obligations under the BSA, and OFAC must amend its regulations to plug a critical gap in the current sanctions implementation framework. Finally, state bar associations must require that lawyers be trained on their new obligations.

This report begins with a description of the problem: oligarchic wealth, how that wealth supports Putin’s regime, and how U.S. lawyers enable sanctions evasion (Part I). It then gives an overview of the current regulatory landscape (Part II). Next, it presents how six other countries regulate lawyers as potential enablers of sanctions evasion and other crimes, including money laundering (Part III). Finally, it proposes a comprehensive legislative and regulatory regime to solve the lawyers-as-enablers problem (Part IV).

About the Law and Policy Lab

Under the guidance of faculty advisers, Law and Policy Lab students counsel real-world clients in such areas as education, copyright and patent reform, governance and transparency in emerging economies, policing technologies, and energy and the environment. Policy labs address problems for real clients, using analytic approaches that supplement traditional legal analysis. The clients may be local, state, or federal public agencies or officials, or private non-profit entities such as NGOs and foundations. Typically, policy labs assist clients through empirical evidence that scopes a policy problem and assesses options and courses of action. The methods may include comparative case studies, population surveys, stakeholder interviews, experimental methods, program evaluation or big data science, and a mix of qualitative and quantitative analysis. Faculty and students may apply theoretical perspectives from cognitive and social psychology, decision theory, economics, organizational behavior, political science or other behavioral science disciplines.

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Reports
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Stanford Law School Law and Policy Lab, 2023-24 Spring
Authors
Erik Jensen
Book Publisher
Policy Practicum: Regulating Professional Enablers of Russia’s War on Ukraine (Law 809M)
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Kathryn Stoner

Georgia's president, Salome Zourabichvili, vetoed the Parliament's contentious anti-foreign agent law, but called her act "symbolic," as the majority Georgian Dream party promised to override the veto at their next session. This talk explores Georgia's democratic aspirations within the context of the law, dissecting its potential ramifications for civil society, political freedoms, and Georgia's European integration ambitions.

Professor Kathryn Stoner, who was awarded an honorary doctorate from Iliad State University, Tbilisi, Republic of Georgia in 2016, will discuss the politics and complexities of the recent law and its implications for Georgia's future.


Kathryn Stoner is the Mosbacher Director of the Center on Democracy, Development, and the Rule of Law (CDDRL), and a Senior Fellow at CDDRL and the Center on International Security and Cooperation at FSI. From 2017 to 2021, she served as FSI's Deputy Director. She is Professor of Political Science (by courtesy) at Stanford and she teaches in the Department of Political Science, and in the Program on International Relations, as well as in the Ford Dorsey Master's in International Policy Program. She is also a Senior Fellow (by courtesy) at the Hoover Institution.

Prior to coming to Stanford in 2004, she was on the faculty at Princeton University for nine years, jointly appointed to the Department of Politics and the Princeton School for International and Public Affairs (formerly the Woodrow Wilson School). At Princeton she received the Ralph O. Glendinning Preceptorship awarded to outstanding junior faculty. She also served as a Visiting Associate Professor of Political Science at Columbia University, and an Assistant Professor of Political Science at McGill University. She has held fellowships at Harvard University as well as the Woodrow Wilson Center in Washington, DC.

In addition to many articles and book chapters on contemporary Russia, she is the author or co-editor of six books: "Transitions to Democracy: A Comparative Perspective," written and edited with Michael A. McFaul (Johns Hopkins 2013);  "Autocracy and Democracy in the Post-Communist World," co-edited with Valerie Bunce and Michael A. McFaul (Cambridge, 2010);  "Resisting the State: Reform and Retrenchment in Post-Soviet Russia" (Cambridge, 2006); "After the Collapse of Communism: Comparative Lessons of Transitions" (Cambridge, 2004), coedited with Michael McFaul; and "Local Heroes: The Political Economy of Russian Regional" Governance (Princeton, 1997); and "Russia Resurrected: Its Power and Purpose in a New Global Order" (Oxford University Press, 2021).

She received a BA (1988) and MA (1989) in Political Science from the University of Toronto, and a PhD in Government from Harvard University (1995). In 2016 she was awarded an honorary doctorate from Iliad State University, Tbilisi, Republic of Georgia.

Anna Grzymała-Busse

Encina Hall 2nd floor William J. Perry Conference Room

Kathryn Stoner, Stanford University
Seminars
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CDDRL Visiting Scholar, 2024
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Sophie Richardson is a longtime activist and scholar of Chinese politics, human rights, and foreign policy.  From 2006 to 2023, she served as the China Director at Human Rights Watch, where she oversaw the organization’s research and advocacy. She has published extensively on human rights, and testified to the Canadian Parliament, European Parliament, and the United States Senate and House of Representatives. Dr. Richardson is the author of China, Cambodia, and the Five Principles of Peaceful Coexistence (Columbia University Press, Dec. 2009), an in-depth examination of China's foreign policy since 1954's Geneva Conference, including rare interviews with Chinese policy makers. She speaks Mandarin, and received her doctorate from the University of Virginia and her BA from Oberlin College. Her current research focuses on the global implications of democracies’ weak responses to increasingly repressive Chinese governments, and she is advising several China-focused human rights organizations. 

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Ten years of debates over democratic backsliding have failed to produce many examples of independent institutions thwarting authoritarian attempts on democracy. Yet Latin American courts seem to be countering this larger trend. The three largest countries in the region—Brazil, Mexico, and Colombia—have produced robust institutions able to check leaders with authoritarian tendencies, with high courts playing a fundamental role. In a dramatic succession of recent cases, courts in these three countries have been innovative, acted with a high degree of independence, and appear legitimately interested in defending democratic norms. All of this is profoundly surprising. There is little to no track record of independent Latin American judiciaries that stand in the way of authoritarian governments. Closer study of these three countries is therefore critical for scholars and practitioners, who are otherwise locked in debates over the importance of judicial review in preserving democracy. After dozens of judicial reform failures since the 1990s, we may be observing some overdue success. It appears that 1990s judicial reforms are making a comeback in Latin America.

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Journal of Democracy
Authors
Diego A. Zambrano
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Number 1
Authors
Nora Sulots
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Commentary
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On Wednesday, December 6, Larry Diamond, the Mosbacher Senior Fellow in Global Democracy at the Freeman Spogli Institute for International Studies (FSI), delivered the twentieth annual Seymour Martin Lipset Lecture on Democracy in the World on “Power, Performance, and Legitimacy: Renewing Global Democratic Momentum” in Washington, D.C.

The Lipset Lecture was inaugurated in 2004 by the International Forum for Democratic Studies at the National Endowment for Democracy (NED) and the Munk School for Global Affairs at the University of Toronto as an important new forum for discourse on democracy and its progress worldwide. It is also co-sponsored by the Embassy of Canada to the United States.

The lecture was followed by a conversation between Diamond and Democratic Leader of Belarus Sviatlana Tsikhanouskaya, moderated by NED’s vice president for studies and analysis, Christopher Walker. A recording of both is available below, and the lecture will also be featured in an upcoming issue of the Journal of Democracy.

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Larry Diamond speaks during CDDRL's research seminar
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Is the World Still in a Democratic Recession?

Is the world still in a democratic recession? Larry Diamond — the Mosbacher Senior Fellow in Global Democracy at FSI — believes it is.
Is the World Still in a Democratic Recession?
Larry Diamond speaking in the Bechtel Conference Center in Encina Hall
Commentary

"We Have Entered a New Historical Era": Larry Diamond on the Future of Democracy

Speaking at the April 2022 meeting of the FSI Council, Larry Diamond offered his assessment of the present dangers to global democracy and the need to take decisive action in support of liberal values.
"We Have Entered a New Historical Era": Larry Diamond on the Future of Democracy
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Larry Diamond
Larry Diamond delivers the twentieth annual Seymour Martin Lipset Lecture on Democracy in the World. | National Endowment for Democracy
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Diamond's lecture was on “Power, Performance, and Legitimacy: Renewing Global Democratic Momentum.”

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After almost two years since the Taliban's return to power in Afghanistan, the international community is coming to terms with the nature of the new regime in Kabul. This Article explores the nature of Taliban 2.0, assessing evidence of both change and disturbing continuity in the new leadership of Afghanistan. Importantly, Taliban 2.0 has demonstrated persistent inflexibility in its imposition of a puritanical form of Islamic rule, exemplified by its treatment of the rights of women and girls. This inflexibility is in direct conflict with its goal of becoming a formally recognized member of the international community. Its lack of international recognition hampers the Taliban's ability to stabilize the Afghan economy and provide even minimal levels of public goods to its people. Yet, in light of this growing humanitarian crisis, the United States and its allies face a delicate balancing act: decreasing the suffering of the Afghan people while maintaining pressure on the Taliban regime. This Article argues that the United States should consider using a mix of carrots and sticks to achieve this delicate balance and test the ultimate flexibility, cohesion, and staying power of Taliban 2.0.

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Journal Articles
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Stanford Journal of International Law
Authors
Erik Jensen
Number
2, Summer 2023
Authors
Rachel Owens
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News
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Does decline in the rule of law bear an economic cost? In a CDDRL seminar series talk, the Center’s Gerhard Casper Fellow in Rule of Law Janka Deli addressed this question. Using European Union (EU) trade data, she challenges the conventional wisdom that deterioration in the rule of law generates decline in economic vitality, on the belief that markets tend to punish states whose conduct violates liberal rule of law norms.

In the past decade, the rule of law has declined among EU member states, with Poland and Hungry embodying this trend. While conventional wisdom assumes that rule of law and economic growth move hand in hand, Deli presented findings betraying this expectation. With the EU as a case study, Deli examines how deteriorations in the rule of law, measured in terms of breaches in international investment agreements, affect bilateral trade.

What happens to the economy when rule of law declines? Deli finds that, on average, rule-of-law-related breaches of investment agreement are associated with a decline in exports due to trade losses suffered by Spain and Italy. In contrast, among newer EU member states, that trend was in the reverse. Decline in the rule of law, evidenced by repeated breaches of investment agreements, was accompanied by an increase in exports.

In making sense of this counterintuitive trend, Deli hypothesizes that norms and expectations surrounding investment agreement breaches vary across “old” and “new” EU states. Put simply; trading partners may be employing higher standards in dealing with investment breaches involving old member states while showing more tolerance to similar violations by new member states.

Deli’s findings challenge the belief that markets’ “invisible hand” will always punish illiberal economic practices and behavior, thereby steering countries toward liberal values and commitments. In the realm of EU trade, the empirical realities suggest otherwise.

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Hilary Appel presents during a REDS Seminar hosted by the Center on Democracy, Development and the Rule of Law and The Europe Center.
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EU and NATO Enlargement and the Populist Backlash Thesis

Many argue that EU and NATO enlargement produced a populist backlash in Europe. Evidence suggests otherwise.
EU and NATO Enlargement and the Populist Backlash Thesis
Brett Carter and Erin Baggot Carter present their new book during CDDRL's Fall 2023 Research Seminar Series
News

CDDRL Affiliated Scholars Build the World’s Largest Autocratic Propaganda Dataset

Erin Baggot Carter and Brett Carter discuss their new book in the Center on Democracy, Development and the Rule of Law’s weekly research seminar.
CDDRL Affiliated Scholars Build the World’s Largest Autocratic Propaganda Dataset
Ahmed Ezzeldin Mohamed speaks at a postdoc conference
News

Call for Applications: CDDRL 2024-25 Pre- & Postdoctoral Fellowships

The Center on Democracy, Development and the Rule of Law welcomes applications from pre-doctoral students at the write-up stage and from post-doctoral scholars working in any of the four program areas of democracy, development, evaluating the efficacy of democracy promotion, and rule of law.
Call for Applications: CDDRL 2024-25 Pre- & Postdoctoral Fellowships
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Janka Deli presents during CDDRL seminar
Janka Deli presents during CDDRL's research seminar on October 19, 2023. | Rachel Cody Owens
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CDDRL postdoctoral fellow challenges the conventional wisdom that deterioration in the rule of law generates decline in economic vitality.

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A team of Stanford Law students recently submitted a report to the Chief Anti-Corruption Prosecutor of Moldova outlining procedures and strategies for the country to consider in order to avoid delays in its prosecution of corruption cases.

Erik Jensen, director of SLS’s Rule of Law Program and lecturer, supervised the four-month-long pro bono project, which resulted in Justice Delayed: Countering Dilatory Tactics in Moldova’s Anti-Corruption Prosecutions, an analysis of how other European countries effectively manage defense tactics such as abusive motions, delay tactics, and frivolous requests. Moldova is looking to strengthen existing procedural safeguards against the threat of anti-corruption defendants using sophisticated, concerted delay tactics. The report was delivered to the Chief Prosecutor for Corruption in August 2023.

Read the full article in SLS's Stanford Lawyer.

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Erik Jensen and Sarah Manney, JD '24
Erik Jensen, director of SLS’s Rule of Law Program, and Sarah Manney, JD ’24, research assistant in the Rule of Law program and student leader of the Moldova anti-corruption project.
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A team of Stanford Law students recently submitted a report to the Chief Anti-Corruption Prosecutor of Moldova outlining procedures and strategies for the country to consider in order to avoid delays in its prosecution of corruption cases.

Authors
Nora Sulots
News Type
News
Date
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The Center on Democracy, Development and the Rule of Law is pleased to invite applications from pre-doctoral students at the write-up stage and from post-doctoral scholars working in any of the four program areas of democracy, development, evaluating the efficacy of democracy promotion, and rule of law. The application cycle for the 2024-2025 academic year will be open from Tuesday, September 26, 2023, through Friday, December 15, 2023.

Our goal is to provide an intellectually dynamic environment that fosters lively exchange among Center members and helps everyone to do excellent scholarship. Fellows will spend the academic year at Stanford University focusing on research and data analysis as they work to finalize and publish their dissertation research while connecting with resident faculty and research staff at CDDRL.

Pre-doctoral fellows must be enrolled currently in a doctoral program or equivalent through the time of intended residency at Stanford and must be at the dissertation write-up (post course work) phase of their doctoral program. Post-doctoral fellows must have earned their Ph.D. within 3 years of the start of the fellowship, or plan to have successfully defended their Ph.D. dissertations by July 31, 2024.

In addition to our regular call for applications, CDDRL invites applications for the Gerhard Casper Fellow in Rule of Law for 2024-25. Named after Stanford University's ninth president, we welcome research on any aspect of rule of law, including judicial politics, criminal justice, and the politicization of judicial institutions. We are an interdisciplinary center and as such, candidates from any relevant field (i.e. the social sciences, law) are welcome to apply. The Gerhard Casper Fellow will be part of CDDRL’s larger cohort of pre- and postdoctoral fellows. Those interested should apply through the regular CDDRL fellowship application process and indicate that they would like to be considered for the Gerhard Casper Rule of Law Fellowship.

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Ahmed Ezzeldin Mohamed speaks at a postdoc conference
Ahmed Ezzeldin Mohamed (2022-23 Postdoctoral Fellow) presents at the 2022 Global Development Postdoctoral Fellows Conference in September 2022. | Rod Searcey
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The Center on Democracy, Development and the Rule of Law welcomes applications from pre-doctoral students at the write-up stage and from post-doctoral scholars working in any of the four program areas of democracy, development, evaluating the efficacy of democracy promotion, and rule of law.

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