FARA requires all persons in the United States working as agents of a  foreign government, foreign political party, or other foreign principal to  disclose to Justice such connections, as well as the activities they perform  on behalf of such principals in the United States. Certain activities, such as humanitarian, commercial, and  legal activities, are exempt from FARA. Agencies Promote Compliance with Post-Government Employment Restrictions and Foreign Agent Registration Requirements

The agencies (State, Treasury, USAID, and USTR) we reviewed are not  required to and generally do not collect and maintain information on and  monitor the post-government employment activities of persons who leave  government employment, including former senior government employees  who represent foreign entities. Justice Collects and Maintains Information on Entities That Register as Foreign Agents, and Promotes Voluntary Compliance with FARA

Justice collects and maintains information on all entities that register with  the department as foreign agents; however, this information does not  identify individuals who were former senior federal employees, and  Justice is not required to do so. However, this number may not  include all former senior federal employees who represent foreign entities  because individuals engaged in certain activities who may be exempted,  including those registered under the Lobbying Disclosure Act, are not  required to register with Justice. The 29 registrants we identified engaged  in activities that included the promotion of trade, lobbying, policy  consulting, and public relations on the behalf of foreign principals such as  the governments of Argentina, China, Indonesia, Saudi Arabia, and the  Kurdish Democratic Party of Iraq. Agencies Face Information, Legal, and Resource Challenges

The agencies we reviewed face information, legal, and resource challenges  in promoting compliance with post-government employment restrictions  and in enforcing and monitoring the registration requirements of FARA. For example, while the ethics officials provide guidance and information  to employees on post-government employment restrictions, they do not  consistently document specific advice provide to senior federal  employees. In addition, OGE has encouraged the executive  branch agencies to document such advice. For example, a November 17,  2005, OGE memorandum to all designated agency ethics officials  discussed the advantages of documenting advice and offered suggestions  on when to document ethics advice. The agencies document information such as ethics training courses given,  subject matters covered, and counseling services offered to employees. Legal and Resource Challenges

Justice officials cite a lack of clear legal authority and a lack of resources  as barriers to increased monitoring of FARA compliance. Documentation of specific advice on post-government employment  restrictions provided to senior federal employees can help the agencies to  prove the intent element needed to prosecute violations of the post- government employment restrictions. However, Justice officials said the department does  not have clear legal authority to inspect the records of persons that it  believes should be registered or to require advance written notification by  persons engaging in exempt activities. Without advance written  notification, Justice has no way of knowing whether persons exempting  themselves should in fact be registered. Matter for Congressional Consideration

To enhance Justice’s ability to ensure that the American people know the  identity of persons trying to influence U.S. government policy in the  United States on behalf of foreign entities, Congress may wish to consider  (1) granting the Department of Justice civil investigative demand authority  to inspect records of persons Justice believes should be registered as  foreign agents and (2) requiring persons claiming certain exemptions to  provide advance written notification to Justice before engaging in the  exempt activities. We are sending this report to other interested Members of Congress and to  the Secretaries of State and the Treasury, the Attorney General, the  Directors of the Office of Government Ethics and the U.S. Agency for  International Development, and the U.S. Trade Representative. Appendix I: Scope and Methodology

To determine the extent to which the U.S. government collects and  maintains information on the post-government employment activities of  former senior federal employees who represent foreign entities, we  analyzed Office of Government Ethics (OGE) guidance and other  documents on post-government employment restrictions. From this process, we identified 29 former senior  federal officials that registered as foreign agents between calendar years  2000 and 2007.
Why GAO Did This Study

Congress has enacted post-government employment restrictions and foreign agent registration requirements with the objectives of protecting the U.S. government against the improper use of government information by former federal employees and ensuring the American people know the identity of persons trying to influence U.S. government policy in the United States on behalf of foreign entities. This report discusses (1) the extent to which selected agencies have information on the post-government employment activities of former senior federal employees who represent foreign principals and (2) the challenges the agencies face in enforcing these requirements. We reviewed federal ethics guidance, laws, and other documents, and interviewed officials at the Departments of State and the Treasury, the U.S. Agency for International Development and the U.S. Trade Representative.

What GAO Found

Executive branch agencies are not required to and do not collect and maintain information on the post-government employment activities of former senior federal employees who represent foreign principals. Post-government employment restrictions prohibit former senior federal employees from engaging in certain activities, such as lobbying or other advocacy communications, for a specified period of time after leaving federal service. The agencies we reviewed undertake a variety of activities, including providing training and advice, to promote compliance with the restrictions. The Foreign Agents Registration Act (FARA) requires that all persons in the United States working as agents of a foreign government, foreign political party, or other foreign principal disclose to the Department of Justice (Justice) such connections as well as the activities they perform on behalf of such principals in the United States. Justice provides information on FARA registration requirements to the public. It also collects information on all entities that register with Justice as foreign agents. However, the registration information does not identify individuals who are former senior federal employees. Nevertheless, of the nearly 8,000 senior federal employees who left government service between calendar years 2000 and 2007, we identified 29 who registered as foreign agents and engaged in activities that ranged from promoting tourism to lobbying on behalf of foreign principals such as the governments of Argentina and Saudi Arabia. This number may not include all former senior federal employees who represent foreign entities because individuals engaged in exempted activities under FARA, such as diplomatic, commercial, and legal activities, and those registered under the Lobbying Disclosure Act, are not required to register. The agencies we reviewed face information, legal, and resource challenges in promoting compliance with the post-government employment restrictions and monitoring FARA. One challenge is inconsistent documentation of advice provided to senior federal employees on post-government employment restrictions. While agencies document information such as ethics training courses given, subject matters covered, and counseling services offered, they do not consistently keep records of what advice was given to specific employees. The Office of Government Ethics (OGE) has encouraged the executive branch agencies to document such advice. For example, a 2005 OGE memorandum to all designated agency ethics officials discussed the advantages of documenting advice and offered suggestions on when to document ethics advice. Documentation of advice is useful for proving intent, which can help to prosecute violations of the restrictions. In addition, a lack of clear legal authority and a lack of resources have been cited by Justice as barriers to increased monitoring of FARA compliance. For example, Justice officials said the department does not have clear legal authority to inspect the records of persons that it believes should be registered and that the department does not have the authority to require advance written notification from persons claiming to be exempt from FARA requirements. Without advance written notification, Justice has no way of knowing whether persons exempting themselves should in fact be registered.