Thu Sep 12 00:22:48 UTC 2024: ## DOJ’s Renewed Focus on FARA Sparks Concerns for Businesses

**Washington, D.C.** – The Foreign Agents Registration Act (FARA), once considered a “forgotten backwater,” is experiencing a resurgence as the Department of Justice (DOJ) ramps up its enforcement efforts. Recent high-profile indictments involving individuals and companies allegedly acting on behalf of China and Russia highlight the DOJ’s commitment to combating foreign influence.

The statute, originally enacted in 1938, requires individuals and entities acting as agents of foreign principals to register with the Attorney General and disclose their activities. While FARA has historically been underutilized, the DOJ has significantly increased prosecutions since 2016, following an Inspector General report criticizing its inconsistent enforcement record.

“FARA is one of the most important tools the U.S. government has in its arsenal to respond to these threats,” stated Deputy Assistant Attorney General Eun Young Choi. This renewed focus has led to a wave of high-profile cases, including the prosecution of a former member of the Fugees, a prominent political scientist, and even a sitting senator.

FARA’s broad scope extends beyond political activities, potentially encompassing a wide range of commercial situations. The statute defines “foreign principal” broadly, including individuals, corporations, and even organizations based outside the U.S., raising concerns for companies engaging in international business.

The “commercial exemption” is often cited as a safe harbor for multinational companies involved in bona fide trade or commerce. However, the DOJ’s recent interpretation of the exemption has proven challenging for businesses.

For example, the DOJ has determined that activities promoting foreign tourism, even though commercially driven, can fall under FARA if they also benefit the foreign nation’s political or public interests.

Further complicating matters, the DOJ is currently considering changes to FARA’s implementing regulations. These changes could narrow, or even eliminate, the exemption for U.S.-based subsidiaries lobbying on behalf of their foreign parent companies.

The DOJ’s aggressive stance on FARA enforcement raises concerns about potential overreach. Businesses operating internationally need to familiarize themselves with FARA’s complexities and ensure they are compliant with its requirements.

The DOJ’s renewed focus on FARA sends a clear message: foreign influence is no longer a passive concern, and the consequences for non-compliance can be severe.

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