Bloomberg Law and The National Law Journal Interview Murad Hussain Regarding Proposed DOJ Changes to FARA

White Collar Defense & Investigations partner Murad Hussain was recently quoted in Bloomberg Law’s “Biden Foreign Agent Rule Gives Trump Attorney General Final Say,” and The National Law Journal article, “Foreign-Company Lobbyists Would Need to Register Under Proposed DOJ Regulation.” Both articles examine how the U.S. Department of Justice’s proposed updates to the Foreign Agents Registration Act (FARA) significantly revise and broaden registration requirements for private companies and nonprofits that have foreign funding or other foreign ties.

Speaking with Bloomberg Law, Hussain addressed how the proposed regulations shift the focus of FARA’s exemption at 22 U.S.C. § 613(d)(2), known as the “(d)(2)” exemption, which covers political activities that don’t “predominantly” serve a foreign interest: “For any lobbying or public relations campaign, the main question is now, ‘Who benefits most?’ If it’s a foreign government, company, nonprofit, or other foreign actor, then DOJ is saying that the (d)(2) exemption won’t apply. So even purely private multinationals will have to think carefully about how their political activities benefit their own economic interests versus the interests of their U.S. subsidiaries.”

Hussain, who advises clients on FARA compliance and investigations, told The National Law Journal, “The proposed regulations will make it even harder for private companies and nonprofits to avoid FARA registration if a foreign government is linked to their efforts.” He also pointed out that, under the proposed change, foreign actors may need to register under FARA for media campaigns that lobby the public about pending federal legislation, “even if they have no connections to any foreign government.”

Read The National Law Journal article (subscription required).

Read the Bloomberg Law article (subscription required).