DOJ Proposes to Tighten Foreign Lobbying Disclosure Rules

A portion of the website for the U.S. Foreign Agents Registration Act in Washington in a file photo. Jon Elswick/AP Photo

The U.S. Department of Justice (DOJ) has proposed to revise the federal law regulating the disclosure of lobbying on behalf of foreign businesses and governments, seeking to narrow the circumstances under which one may be exempted from transparency requirements.

The proposal, published on Dec. 20, would revise the Foreign Agents Registration Act (FARA), which generally mandates that anyone acting as a foreign agent in the United States register as such with the DOJ and regularly report their activities to the public. The DOJ said the revisions were based on public feedback from a questionnaire three years ago.

Tightening ‘Commercial Exemption’

A key part of the proposal concerns the so-called commercial exemption, one of the most commonly invoked exemptions under FARA. This exemption covers political activities conducted on behalf of foreign corporations—including those owned by foreign governments, so long as they center on business interests and do not “directly promote” the political or public interests of a foreign government or political party.

The DOJ highlighted the lack of clarity surrounding what constitutes “directly promot[ing]” a foreign government’s interests. To address this, the proposed revisions would remove the word “directly” from the phrase “directly promote,” making the exemption inapplicable when the foreign agent engages in political activities.

Further, the DOJ outlined additional scenarios disqualifying agents from claiming the commercial exemption. These include activities intended to benefit a foreign government’s political or public interests; situations in which a foreign government influences—if not supervises, controls, or finances—the activities; and cases where the agent’s activities primarily benefit a foreign government.

Expanding Transparency Requirements

Under FARA, registered foreign agents must submit copies of any “informational materials” distributed on behalf of a foreign principal to the DOJ within 48 hours. These materials must also include a “conspicuous statement” identifying the agent’s representation of a foreign entity.

The proposed rules would expand the definition of “informational materials” to include any content intended or reasonably expected to influence U.S. government agencies, officials, or the public on domestic or foreign policy issues. To enhance transparency, the DOJ proposes that the required conspicuous statement must explicitly name the country or territory where the foreign principal is located, as this information may not always be apparent.

The public can access these materials through a searchable database on the DOJ website.

The proposal will enter a 60-day public comment period once it is officially published in the Federal Register.

Heightened FARA Enforcement

The proposed changes follow a wave of DOJ enforcement of FARA, which has led to several high-profile prosecutions.

Recent cases include those of former Sen. Bob Menendez (D-N.J.), who was found guilty of failing to register as an agent for Egypt; Rep. Henry Cuellar (D-Texas), who faced scrutiny over undisclosed ties to Azerbaijan and a Mexican bank; and Linda Sun, who was accused of taking millions of dollars for the Chinese communist regime while serving as a senior aide to two New York governors.

Most recently, on Dec. 18, the DOJ announced the indictment of former Rep. David Rivera (R-Fla.), accusing him of violating FARA by acting as an unregistered agent for a sanctioned Venezuelan businessman in exchange for $5.5 million.