S. 1488 — Sovereign Wealth Fund Transparency Act

This section narrows Foreign Agents Registration Act (FARA) exemptions from registration requirements for (1) private and nonpolitical activities in furtherance of the bona fide trade or commerce of a foreign principal and (2) other activities not serving predominantly a foreign interest. Such exemptions do not apply to any agent whose activities promote the public or political interests of a foreign government or political party, including all activities undertaken on behalf of a sovereign wealth fund.

This section amends the Foreign Agents Registration Act of 1938 (FARA, 22 U.S.C. 611 et seq.)—which requires agents of foreign principals (i.e., those acting at the direction of foreign governments, political parties, or other specified entities) to register with the Department of Justice and disclose related activities—to authorize the Attorney General, or the Assistant Attorney General for National Security or a Deputy Attorney General, to issue civil investigative demands prior to civil or criminal proceedings. Such demands may require production of relevant documentary material, written answers to interrogatories, oral testimony, or combinations thereof, subject to specified contents and deadlines (e.g., at least seven days' notice for oral testimony, absent exceptional circumstances), protections for privileged material under grand jury subpoena or Federal Rules of Civil Procedure standards, limits on multiple oral testimony demands, and procedures for demands involving prior discovery products. The section also redesignates existing sections 9 through 14 as sections 10 through 15.

This section establishes civil penalties under the Foreign Agents Registration Act of 1938 (22 U.S.C. 618 et seq.) (FARA), which requires persons acting as agents of foreign principals to register with the Department of Justice and disclose related activities, in addition to existing criminal penalties. It specifies the following maximum fines, with collected fines used to defray FARA enforcement costs: (1) up to $10,000 per violation (strict liability) for failing to file a timely or complete initial registration statement under FARA section 2(a), which may not be paid by a foreign principal; (2) up to $1,000 per violation (strict liability) for failing to file a timely or complete supplement under FARA section 2(b); (3) up to $200,000 (upon proof by preponderance of the evidence, depending on extent and gravity) for knowingly failing to remedy a deficient registration within 60 days of notice under FARA section 8(g); and (4) up to $200,000 (upon proof by preponderance of the evidence, depending on extent and gravity) for knowingly failing to comply with any other FARA provision.