The Foreign Influence Registration Scheme soon goes live – will you need to register?

The Foreign Influence Registration Scheme (FIRS) will come into force on 1 July 2025.

Under the scheme, individuals and organisations operating in the UK that work with or receive funding from foreign powers could be required to register some of the arrangements or agreements that they have with these powers.

There will be a three-month transition period to register any registrable arrangements or activities that exist when the scheme comes into force. International development and humanitarian organisations are not exempt from these new rules and could be required to register in certain circumstances.

About the Foreign Influence Registration Scheme

Introduced by the National Security Act 2023, the scheme is intended to protect the safety and interests of the UK by increasing the level of transparency required in relation to certain activities taking place in the UK, following a ‘direction’ from a ‘foreign power’ or ‘specified foreign power/power-controlled entity’.

The scheme has two tiers: a Political Influence Tier and an Enhanced Tier.

Under the Political Influence Tier, individuals and organisations will need to register when they have entered into an ‘arrangement’ with a ‘foreign power’ (except the Republic of Ireland), which involves a ‘direction’ from that ‘foreign power’ to carry-out, or arrange for someone else to carry out, ‘political influence activities’ in the UK. The key components of this tier are defined as follows –

• An ‘arrangement’ is ‘any type of agreement, formal or informal’ and could include a contract, an MOU (even if non-legally binding), an order (or similar) for goods or services to be followed by a bill or invoice, or an informal quid pro-quo agreement;
• A ‘direction’ constitutes an ‘order or instruction to act with which a person is obliged or compelled, whether formally or informally, to comply’;
• A ‘foreign power’ includes, amongst other things, a head of a foreign state, a foreign government, an agency or authority of a foreign government (such as USAID or DANIDA) or a governing political party of a foreign government; and
• A ‘political influence activity’ is comprised of two criteria, which cover the activity aspect (for example, there is a provision of money, goods or services) and the purpose aspect (for example, influencing a decision of a Minister or government department).

Under the Enhanced Tier, individuals or organisations will need to register when they have entered into an ‘arrangement’ with a ‘specified foreign power/power-controlled entity’, which involves a ‘direction’ by that ‘specified foreign power/power-controlled entity’ to carry-out, or arrange for someone else to carry-out, a broad range of ‘relevant activities’ in the UK.  

• A ‘relevant activity’ includes ‘all activities in the UK’.
• At the time of writing, only specified foreign powers or foreign power-controlled entities in Iran and Russia, as set out in the government guidance, are caught by the Enhanced Tier, but new countries could be added in the future.

Under the Enhanced Tier, ‘specified foreign power-controlled entities’ will need to register the ‘relevant activities’ that they carry-out themselves in the UK.

There are exemptions for registration under both tiers. However, there is no blanket exemption available to charities generally.

Foreign funding

For charities, including international development and humanitarian organisations, the scheme will particularly need to be considered in the context of foreign funding (for example, when receiving funds from state-controlled development agencies or foreign embassies).

The Home Office makes clear that foreign funding, in itself, does not give rise to an obligation to register. There would be no ‘direction’ to carry-out activities, for instance, where general donations or unrestricted grants have been made, because the recipient would have sole discretion to decide how the funds will be used. This is also the case where a charity applies for funding, even if for a specific project, or where funds are received in relation to a specific project without submitting an application, so long as there are no specific conditions attached relating to the use of the funds. Subject to satisfying the remaining conditions of a tier, charities will need to register foreign funding if that funding would be conditional upon the charity carrying-out ‘political influence activities’ or ‘relevant activities’ (as applicable).

Registration

Under the Political Influence Tier, any arrangement that meets the criteria must be registered within 28 calendar days, beginning with the day that the arrangement is made. Under the Enhanced Tier, any arrangements or activities (as applicable) must be registered within 10 calendar days and prior to any activities being carried-out. Where there is a material change to information registered, registrants must update registrations within 14 calendar days, beginning with the day on which the change takes effect.

For charities, it is the collective responsibility of the trustees to comply with all requirements of the scheme. The scheme introduces various criminal offences some of which are punishable by imprisonment (as well as fine), including failure to comply with registration requirements.    

Public Register

Information registered which relates to ‘political influence activities’ will be included on a public register. Though, there are specific exceptions. For example, where there is a significant risk that publication would put any individual’s safety seriously at risk. The Home Office states that this exception may apply, for example, to those campaigning on human rights issues, where they, their families or their colleagues could be put at risk in their home country as a result of appearing on the public register.

Most Enhanced Tier registrations will not be included on the public register. However, where they relate to the carrying-out of ‘political influence activities’, certain details about the arrangement or activity (as applicable) will be published.

Further information: The Home Office has issued guidance on FIRS, including specific guidance on each tier and sector specific guidance for charities and civil society organisations, which contains examples demonstrating when registration would be necessary.