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Overview of the Foreign Agents Registration Act (FARA)

Posted by Dmitry Gorin | Oct 28, 2024

The Foreign Agents Registration Act (FARA), enacted in 1938, is a U.S. law designed to uphold transparency. It ensures that individuals and entities engaging in political or advocacy activities on behalf of foreign entities are transparent about their actions, thereby contributing to a more open and informed political landscape.

The law's primary aim is not to prohibit activities but to require individuals and organizations engaging in political or advocacy work for foreign principals to register with the Department of Justice (DOJ) and disclose their activities, relationships, and financial transactions.

Foreign Agents Registration Act (FARA)
The Foreign Agents Registration Act (FARA) requires certain foreign agents to register with the DOJ and disclose their activities.

The act has undergone several amendments, but its core goal remains the same: to compel registration and disclosure of activities conducted on behalf of foreign principals.

Simply put, FARA requires certain agents of foreign principals who are engaged in political activities or other activities specified under the statute, such as lobbying, public relations, or media campaigns, to make periodic public disclosure of their relationship with the foreign principal and activities, receipts, and disbursements in support of those activities.

Disclosure of the required information facilitates the government's and the American people's evaluation of the activities of such persons in light of their function as foreign agents.

The FARA Unit of the Counterintelligence and Export Control Section (CES) in the National Security Division (NSD) plays a crucial role in administering and enforcing FARA. Its vigilance ensures that the law is upheld and foreign agents are held accountable for their actions.

Under 22 U.S. Code 611(b), "The term "foreign principal" includes-

(1) a government of a foreign country and a foreign political party.

(2) a person outside of the United States, unless it is established that such person is an individual and a citizen of and domiciled within the United States or that such person is not an individual and is organized under or created by the laws of the United States or any State or other place subject to the jurisdiction of the United States and has its principal place of business within the United States; and

(3) a partnership, association, corporation, organization, or other combination of persons organized under the laws of or having its principal place of business in a foreign country."

It requires "foreign agents," defined as individuals or entities engaged in domestic lobbying or advocacy for foreign governments, organizations, or persons (foreign principals), to register with the Department of Justice (DOJ) and disclose their relationship, activities, and related financial compensation.

What is the Purpose of FARA and Historical Context?

FARA was enacted in response to significant historical events, particularly the growing concerns about foreign propaganda influence in the United States, particularly from Axis powers such as Nazi Germany, which sought to sway U.S. public opinion before World War II. This context underscores the gravity of FARA's purpose in safeguarding the integrity of U.S. democracy.

Foreign Agents

In addressing this issue, Congress mandated transparency for individuals acting as agents of foreign governments and entities attempting to influence American political activities and opinions. This legislation reflects a commitment to safeguarding the integrity of U.S. democracy.

Initially, FARA focused on individuals disseminating political propaganda for foreign governments. However, significant amendments in 1966 expanded its scope.

These amendments shifted attention to agents representing the economic interests of foreign principals, thereby broadening the law to encompass activities beyond political propaganda.

This change was largely driven by concerns over foreign lobbying efforts related to economic activities, such as the influence of foreign sugar interests on U.S. policy.

What are the Key Requirements of FARA?

Under FARA, anyone acting as an agent of a foreign principal must register with the U.S. Department of Justice (DOJ) within 10 days of agreeing to represent the foreign entity. The law requires detailed disclosure of the foreign principal's identity, the agent's activities, and any financial transactions made in relation to those activities.

Who Must Register

Any individual or entity acting in the United States at the direction, control, or request of a foreign principal must register. A foreign principal can be:

  • A foreign government or foreign political party;
  • A person or entity outside the U.S. unless they are a U.S. citizen or are primarily located in the U.S. or
  • A corporation or organization established under the laws of a foreign country.

Disclosure Requirements

The registered agent must provide the DOJ with information on their activities and the nature of their relationship with the foreign principal, including any contracts and financial transactions related to their work. This registration must be updated regularly, typically every six months, to ensure transparency and compliance with FARA.

Exemptions

FARA does provide several exemptions from registration, including:

  • Diplomats and consular officers,
  • Certain legal representatives engaged in routine legal proceedings,
  • Religious, academic, or charitable activities not intended to influence political decision-making,
  • Lobbyists who are already registered under the Lobbying Disclosure Act (LDA)​.

These disclosures aim to ensure the U.S. government and the public can evaluate the activities of individuals or organizations based on their foreign associations.

What Are Related Federal Laws?

22 U.S. Code Chapter 11, Subchapter II, Registration of Foreign Propagandists, has several related federal statutes, including the following:

  • 22 U.C.C. 611 - Definitions.
  • 22 U.C.C. 612 - Registration statement.
  • 22 U.C.C. 613 - Exemptions.
  • 22 U.C.C. 614 - Filing and labeling of political propaganda.
  • 22 U.C.C. 615 - Books and records.
  • 22 U.C.C. 616 - Public examination of official records; transmittal of records and information.
  • 22 U.C.C. 617 - Liability of officers.
  • 22 U.C.C. 618 - Enforcement and penalties.
  • 22 U.C.C. 619 - Territorial applicability of subchapter.
  • 22 U.C.C. 620 - Rules and regulations.
  • 22 U.C.C. 621 - Reports to Congress.

The related federal Foreign Corrupt Practices Act, codified in 15 U.S.C. 78dd-1, is an anti-bribery and anti-kickback law that provides criminal penalties for individuals and business entities who engage in foreign corruption.

The Foreign Extortion Prevention Act (FEPA) criminalizes foreign officials' demand or acceptance of anything of value. It directly targets foreign bribery's “demand” side by empowering the U.S. to penalize foreign officials for soliciting bribes from U.S. individuals, companies, or organizations.

What are the Criminal Penalties for Violating FARA?

FARA violations carry serious penalties, which can include both fines and imprisonment. Specifically:

  • Willful Violations: If an individual willfully violates FARA's registration requirements, they can face fines up to $10,000 and imprisonment for up to five years.
  • Failure to Comply: While the DOJ often allows those out of compliance to amend their filings before taking legal action, persistent failure to register or fully disclose information can lead to prosecution. Noncompliance can result from neglecting to register within the required timeframe, providing false information, or failing to maintain current and accurate records​.

Increased scrutiny of foreign interference in U.S. politics has also led to a renewed focus on FARA enforcement. The DOJ has been more vigilant in investigating and prosecuting cases where foreign agents attempt to obscure their affiliations or avoid registering under FARA.

How Can a Federal Criminal Defense Attorney Help?

FARA rules are complex, and the consequences of violating them can be severe. If you are facing accusations of violating FARA, working with a skilled federal criminal defense attorney is your best hope of avoiding the worst outcomes.

An attorney can assist by evaluating your case to determine if FARA registration is necessary, building a strong defense to contest any charges, and negotiating with the DOJ to resolve matters before criminal charges potentially arise.

If the case goes to trial, an experienced attorney will represent you in court, ensuring your rights are upheld and challenging the prosecution's evidence. For additional information, contact our federal criminal defense law firm, Eisner Gorin LLP, based in Los Angeles, California.

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About the Author

Dmitry Gorin

Dmitry Gorin is a State-Bar Certified Criminal Law Specialist, who has been involved in criminal trial work and pretrial litigation since 1994. Before becoming partner in Eisner Gorin LLP, Mr. Gorin was a Senior Deputy District Attorney in Los Angeles Courts for more than ten years. As a criminal tri...

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