Parliamentary Committee Notes: Foreign Interference: Foreign Influence Transparency Registry

PROC – Foreign Interference
Date: May 24, 2023
Classification: UNCLASSIFIED
Fully releasable (ATIP)? Yes
Branch / Agency: NCSB

Proposed Response:

Financial Implications:

Background

Foreign governments have established, legal, and legitimate channels of engagement with the Government of Canada. When done openly, this is a central part of rules-based international relations. However, when individuals or entities seek to exert influence on behalf of foreign governments in non-transparent ways, this can have serious consequences. These non-transparent influence activities undertaken on behalf of a foreign government are known as malign foreign influence.

To undertake malign foreign influence activities, some foreign governments, or their proxies, may leverage individuals or entities to undertake foreign influence activities intended to shape Canadian government policy, outcomes, or public opinion, without disclosing their foreign government ties. These activities could result in policy and legislation favourable to foreign interests over Canadian ones. They could also impact the content of available material that informs public opinions and the exercise of democratic rights. In some instances, this information could be disseminated by Canadians who may not be fully aware it originates from a foreign principal or entity. Unclear labelling of state-backed communications can produce public or media messaging that reinforces interests of adversarial states and circulates propaganda/disinformation that could either misdirect citizens or pollute the general media/information environment.

While Canada has some tools available aimed at increasing transparency, there have been calls for the Government of Canada to consider new measures to bolster defenses to the growing threat. At previous committee hearings, members of the Special Committee on Canada-China Relations have made inquiries about the possibility of Canada adopting a foreign agent registry.

On December 22, 2022, you announced that the Government of Canada is looking closely at the creation of a foreign agent registry (now referred to as a Foreign Influence Transparency Registry), and would seek to engage the public and stakeholders on the merits of such a proposal. On March 10, 2023, you announced the launch of consultations to guide the creation of a Foreign Influence Transparency Registry in Canada. Consultations have closed as of May 9, 2023.

Australia – Foreign Influence Transparency Scheme Act (FITS)

FITS was enacted in December 2018. It is intended to increase transparency of foreign influence on Australia's government and politics. The scheme is administered by the Attorney General's Office (AGO).

FITS establishes registration obligations for individuals and entities that undertake certain activities on behalf of foreign principals. These include activities for the purpose of "political or governmental influence". That term is broadly defined in the Act and includes any influence over matters such as federal elections or votes, or the decision-making processes of the Government of Australia. Communications to the public or financial support for the purpose of influencing governmental decision-making processes are also registrable activities under FITS.

An individual acting on behalf of a foreign principal can be penalized for failing to register or update information with the AGO, misleading or lying to authorities, or destroying relevant records. Penalties for violations under the FITS range from fines to prison terms of six months to five years.

United States – Foreign Agent Registry Act (FARA)

FARA was enacted in 1938 and requires certain individuals acting on behalf of foreign principals (governments, entities or individuals) who are engaged in political activities or other activities under the statute to register as a "foreign agent" with the Department of Justice. The Act also requires foreign agents to make periodic public disclosures of their relationships with the foreign principal, as well as activities, receipts and disbursements in support of those activities.

The penalty for willful violation of FARA is a maximum of five years in prison and/or a fine of up to $250,000. There are also civil enforcement provisions that empower the United States Attorney General to seek an injunction requiring registration under FARA. Since 2016, FARA violations have resulted in Federal Bureau of Investigation (FBI) counterintelligence investigations, some of which have led to criminal charges and/or immigration proceedings against foreign agents and foreign principals.

Contacts:

Prepared by: NCSB/NSOD
Approved by: Sébastien Aubertin-Giguere, Senior Assistant Deputy Minister, 613-990-4976

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