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The Department of Justice plans to issue a Notice of Public Rulemaking proposing amendments and clarifications to
the Foreign Agents Registration Act regulations.

Statement of Need:

The rulemaking action is necessary to modernize the FARA regulations in light of changes in technology and practice since the regulations were last updated in 2007, as well as to clarify issues that have arisen since 2007. For example, the proposed rule would account for the increased convenience and accessibility of the internet, as well as the increased use of the internet to display and transmit informational materials. In addition, the Department has identified several areas of recurring confusion with regard to whether, for example, non-profit organizations can rely on the exemption for bona fide commercial activities. These anticipated regulatory changes are intended to improve FARA administration and enforcement, provide clarity to regulated entities, and improve transparency.

Summary of the Legal Basis:

The Attorney General is issuing these regulations under 22 U.S.C. 620, which expressly authorizes the Attorney General to issue regulations to carry out FARA.

Alternatives:

The Department is considering several alternatives to these proposed regulations, including making no changes to the regulations. The Department believes, however, that the proposed changes are necessary in light of recurring confusion on some issues and the obsolescence of parts of the 2007 regulations. The Department also considered proposing additional changes to address other aspects of FARA, such as to further define what constitutes an agency relationship. The Department, though, is not proposing some potential alternatives at this time, because of the fact-intensive nature of the agency inquiry, the difficulty of distilling that inquiry into comprehensive regulatory text, and the robust body of law that already exists on the issue. The Department also believes that some additional changes, such as to expand the scope of certain exemptions or to limit the registration information that would be made public, would require a legislative amendment.

Anticipated Costs and Benefits:

The Department estimates that the proposed revisions and modernization of the implementing regulations should provide greater clarity for all registrants and potential registrants.  The Department’s expectation is that any incremental economic burden on some agents would be outweighed by the clarity and certainty the regulations would give to all agents and potential agents, and by the transparency the regulations would give to the American public and to American policymakers. For example, this regulatory action, when finalized, is expected to reduce the regulatory burden on those who engage only in transparently promoting bona fide recreational or business travel to a foreign country, and the Department anticipates that registrants who disseminate informational materials will benefit from a more coherent system for labeling and filing them.

Risks:

Failing to modernize the FARA regulations and provide clarity on certain issues would undermine FARA’s transparency goals, retain unnecessary compliance burdens on regulated entities, and limit regulatory clarity.