The Foreign Agents Registration Act landscape continues to evolve under the current administration’s new enforcement approach. Saul Ewing attorney Al Chakravarty explains that while criminal prosecutions may decrease under Attorney General Pam Bondi’s directive, organizations should maintain robust compliance measures as the law itself remains unchanged.
The Foreign Agents Registration Act (FARA) requires certain agents of foreign principals who are engaged in political activities, or other activities specified under the statute, to register and make periodic public disclosures of their relationships with foreign principals, as well as receipts and disbursements in support of their activities. Registrants must provide detailed information at the time of registration, with periodic supplements thereafter. FARA provides for administrative, civil and criminal remedies for violations.
Until a critical Office of Inspector General report in 2016, FARA had been a backwater of the DOJ’s National Security Division, which housed the FARA Unit to enforce it. Prior then, enforcement of the statute had been exceedingly rare. Since the 2016 report, however, DOJ has breathed new life into the FARA Unit by making public formerly confidential advisory opinions (and issuing a raft of new ones), as well as by issuing letters of determination, bolstering the resources of the unit, proposing needed administrative rule changes and initiating high-profile prosecutions, with a spectrum of results.
The release of “first day” policy guidance by Attorney General Pam Bondi raises questions about the likely trajectory of FARA enforcement over the next four years, and at the very least, what priorities the FARA Unit may emphasize.
My firm recently did a review and reported on the legislative, policy, judicial and enforcement actions in the FARA landscape over the past year, distilling some of the compliance-related insights. Despite indications from Bondi that criminal prosecutions under FARA may decrease under the current administration, it is imperative for organizations to maintain robust compliance measures to navigate the evolving regulatory landscape effectively.
The law has not changed, and companies would do well to maintain compliance to avoid administrative, civil or criminal sanctions, for business culture hygiene and also to prepare for the day when the enforcement posture changes yet again.
Policy shifts and enforcement priorities
The most significant policy shift occurred when in February, Bondi issued a memorandum outlining a strategic reallocation of resources within the DOJ’s National Security Division. This directive led to the disbanding of the Foreign Influence Task Force and a narrowed focus on criminal charges under FARA and 18 U.S.C. § 951, limiting such prosecutions to cases resembling traditional espionage by foreign government actors. Consequently, the FARA Unit has been directed to emphasize civil enforcement, regulatory initiatives and public guidance.
Despite this public shift, we assess that behind the scenes, DOJ’s commitment to enforcing FARA remains steadfast. We anticipate continued use of FARA, given statements of career DOJ officials and the US intelligence community’s 2024 annual threat assessment, which discussed the determined efforts of foreign adversaries to influence American public opinion. This can be seen in the reports of various “malign influence operations” of our global adversaries: China, Iran and Russia, foremost among them.
There is some reason to believe that these kinds of activities may still be a focus, even with a different FARA emphasis, because even under recent policy announcements, the FARA Unit is instructed to prioritize prosecution of espionage-like activity.
Under the prior administration, the department had proposed amendments to modernize FARA regulations, including clarifying exemptions and updating labeling requirements for informational materials to align with technological advancements. These proposed changes underscore the importance of compliance, as they may expand the scope of activities requiring registration and impose additional obligations on entities engaged with foreign principals.
While it is unclear whether the current administration will adopt the most recent proposed amendments, we have commented that the proposed amendments and DOJ enforcement policies require further clarification, especially as the DOJ moves forward with a new regime of FARA enforcement.
Recent enforcement actions
The DOJ’s enforcement actions in 2024 highlight the continued scrutiny of foreign influence operations, including in several high-profile prosecutions. Notably, former Rep. David Rivera was charged under FARA for illicit lobbying and fund laundering connected to a Venezuelan national. This case exemplifies the DOJ’s focus on holding individuals accountable for undisclosed foreign influence activities. Sen. Robert Menendez, his wife and associates were charged for foreign influence activities, but they were actually convicted of FARA-related offenses, not FARA offenses. Rep. Enrique Roberto “Henry” Cuellar and his wife, Imelda Cuellar, have also been charged in the Southern District of Texas with FARA-related charges based on an alleged bribery scheme from Azerbaijan to influence US foreign policy.
In addition, two Russian nationals who worked for the publication Russia Today (RT) to create and spread favorable Russian propaganda are the subject of a DOJ prosecution, and a lobbyist paid to improve Qatar’s standing with the US and to disparage a rival executed the first known deferred prosecution agreement (DPA) with the DOJ on FARA charges. These highlight the importance of maintaining registration compliance if acting on behalf of a foreign principal to influence US government policy.
Legislative developments
Although they are not expected to be taken up soon in the Congress, several legislative initiatives were introduced to enhance FARA’s enforcement mechanisms and close existing loopholes. For instance, Sen. Chuck Grassley, R-Iowa, reintroduced the Foreign Agents Disclosure and Registration Enhancement Act, proposing increased penalties for noncompliance, the establishment of civil investigative demand authority and the elimination of certain exemptions.
Additionally, the Retroactive Foreign Agents Registration Act aims to extend FARA’s registration requirements to individuals acting as agents of foreign principals at any time. For there to be clarity for some key concepts in FARA practice, legislative action will be necessary.
Compliance recommendations
Given the evolving FARA landscape, compliance professionals should consider the following measures to ensure adherence to regulatory requirements:
- Conduct comprehensive risk assessments: Evaluate the organization’s interactions with foreign entities to identify potential FARA obligations. Assess the nature of these relationships and the activities undertaken to determine if they fall within the scope of FARA.
- Enhance internal policies and procedures: Develop and implement robust policies that address FARA compliance, including clear guidelines on engaging with foreign principals, reporting obligations and procedures for due diligence.
- Stay informed on regulatory changes: Monitor developments in FARA regulations and related legislative initiatives to ensure the organization’s compliance framework remains current and effective. Engage with legal counsel to interpret and implement changes appropriately.
- Implement training programs: Educate employees about FARA requirements, emphasizing the importance of transparency in dealings with foreign entities. Regular training sessions can help prevent inadvertent violations and promote a culture of compliance.
- Establish monitoring mechanisms: Develop systems to track and document interactions with foreign principals, ensuring that any activities requiring registration are promptly identified and addressed.
- Prepare for potential inquiries: Given the DOJ’s focus on civil enforcement, organizations should be ready to respond to inquiries or investigations. Maintain organized records and establish protocols for cooperating with authorities.
By proactively addressing these areas, compliance professionals can navigate the complexities of FARA and mitigate the risk of noncompliance, even as enforcement priorities evolve.
Al Chakravarty, a partner at Saul Ewing, helps to protect and defend organizations and individuals from issues that are enforced by federal and state agencies, including regulatory and compliance issues, whistleblower complaints, national security concerns, allegations of anti-competitive behavior, executive or employee malfeasance, insider threats and a variety of criminal allegations like fraud and corruption. 
