The UK's Foreign Influence Registration Scheme: Overview and Compliance Considerations

The National Security Act 2023 (the Act) introduced a comprehensive overhaul of UK's national security framework. A key component of the Act is the two-tier Foreign Influence Registration Scheme (FIRS), which launches on 1 July 2025 and aims to provide greater transparency around foreign influence on UK politics.

In brief, FIRS will require any person to register with the Home Office if they undertake:

• political influence activity in the UK at the direction of any foreign power; or
• any activity—including commercial activity—at the direction of a specified foreign power. At launch, numerous Russian and Iranian government bodies will be designated as specified foreign powers.

Entities that might engage in any activities at the direction of a foreign power should assess their obligations under FIRS and consider implementing compliance processes to ensure that potentially in-scope activities are identified and registered in a timely manner. This article provides an overview of FIRS and compliance considerations for entities that may come within its scope.

A Two-Tier Regime

FIRS comprises two registration tiers: a political influence tier and an enhanced tier.

Political Influence Tier

Under the political influence tier, any person who is party to a formal or informal arrangement with a foreign power to carry out, or arrange the carrying out of, political influence activities in the UK at the direction of that foreign power will have to register. For these purposes:

• A "foreign power" covers: (a) the sovereign or head of a foreign state; (b) a foreign government, or part of a foreign government (e.g., a ministry); (c) an agency or authority of a foreign government, or of part of a foreign government; (d) an authority responsible for administering the affairs of an area within a foreign state (e.g., a local authority); or (e) a political party which is a governing political party of a foreign government. The Republic of Ireland, Isle of Man, Channel Islands and British Overseas Territories will not be classified as foreign powers.
• A "political influence activity" covers any of the following activities, when those activities are conducted for the purpose of influencing a UK election, a decision of a UK or devolved government minister or department, the proceedings of a UK registered political party, or a member of a UK or devolved parliament:
  • communicating with a wide range of listed senior public officials and politicians, including (a) UK and devolved government ministers; (b) members of the UK parliament or devolved legislatures; (c) members of the senior civil service (e.g., a Director or Deputy Director of a UK government department); and (d) certain military personnel and police forces. The UK government may expand the list of senior public officials and politicians by regulations;
  • making a public communication (except where it is reasonably clear from the communication that it is made at the direction of the foreign power); and
  • distributing money, goods or services to any person.

Certain arrangements will be exempt from registration, including:

• arrangements to which the UK is a party;
• foreign powers carrying on their activities openly;
• diplomatic staff and their family members in official duties;
• lawyers providing legal services to foreign powers;
• recognised news publishers; and
• sovereign wealth and public pension funds engaging in political influence activity (at the direction of their foreign power) in relation to their UK investments.

Registration must be completed within 28 days of the start of the arrangement if the arrangement begins on or after 1 July 2025. However, there is a grace period for any pre-existing arrangements that will continue on or after 1 July 2025. These can be registered until 1 October 2025. The Home Office will make certain details of such political influence arrangements public.

Enhanced Tier

Under the enhanced tier, a person will be required to register with the Home Office if they are party to an arrangement pursuant to which a specified foreign power or any specified foreign power-controlled entity (FPCE) directs them to carry out, or arrange the carrying out of, any "relevant activities" in the UK. The definition of "relevant activities" under the Act covers potentially all activities. This broad scope is intended to allow the UK government to tailor the registration requirements to the perceived threat of the specified foreign power or FPCE.

The following Russian and Iranian foreign powers and FPCEs will be specified under the enhanced tier:

• Russia: (a) the President of Russia; (b) the Government of Russia (including any part of the government) and all of its agencies and authorities; (c) the government of a federal subject of Russia; (d) the Federal Assembly of Russia; (e) the judiciary of Russia; and (f) United Russia Party and certain other mainstream Russian political parties.
• Iran: (a) the Supreme Leader of Iran; (b) the Government of Iran (including any part of the government) and all of its agencies and authorities; (c) Islamic Consultative Assembly of Iran; and (d) the judiciary of Iran.

When FIRS launches, any activity in the UK at the direction of a specified Russian or Iranian foreign power or FPCE—including ordinary commercial activity involving the supply or receipt of goods or services—will be "relevant activity" and will require registration with the Home Office.

Certain arrangements will be exempt from registration, including:

• arrangements to which the UK is a party;
• activities that are reasonably necessary for the functioning of a diplomatic mission;
• arrangements to which a UK public body is a party; and
• government administrative and technical services.

If the arrangement begins on or after 1 July, registration must be completed within 10 days of the start of the arrangement, and no activity may be undertaken until such registration is complete. As with the political influence tier, there is a grace period for any pre-existing arrangements that will continue on or after 1 July 2025. These must be registered by 1 October 2025. The Home Office will publicly disclose details of any arrangements with specified Russian or Iranian foreign powers or FPCEs that involve political influencing.

Compliance Considerations

Developing a Tailored Compliance Programme

The Act establishes several criminal offences relating to failure to comply with FIRS requirements. In anticipation of its launch, the Home Office has published extensive guidance, including sector-specific guidance for media, business and industry, academia and scientific research, charities and civil society, and the defence sector.

Specific guidance is also provided to state-owned enterprises. Generally, unless they perform a public function, state-owned enterprises would not fall within the scope of a "foreign power" under the political influence tier. Furthermore, no state-owned enterprises have, to date, been specified under the enhanced tier. However, state-owned enterprises face an elevated risk of undertaking in-scope activities in the UK at the direction of their foreign-power owners.

Entities that might engage in any activities at the direction of any foreign power should consider whether FIRS applies to them. If appropriate, they should consider implementing a tailored compliance programme—including appropriate policies and training—to ensure that potentially in-scope activities are identified and registered in a timely manner.

Managing Risks Around Entities with Close Connections to Foreign Powers

Under the Act, where an arrangement covered by FIRS has not been registered, it is an offence for anyone to carry out an in-scope activity under that arrangement if they know, or "having regard to other matters known to them ought reasonably to know," that they are acting pursuant to such an arrangement.¹ This presents potential legal risks for any person who is undertaking an in-scope activity at the direction of an entity that is owned by, or closely connected to, a foreign power, given the possibility that the direction may ultimately originate from that foreign power.

The Home Office guidance states, however, that there "is no specific duty […] to proactively carry out due diligence into who is directing the activity" in such circumstances. The risk of liability will arise only where there is specific information suggesting that the person is, in fact, acting at the direction of the foreign power.²

In designing their compliance programmes, entities should consider ensuring that their employees are trained to recognise risk indicators suggesting that they might be undertaking an in-scope activity at the direction of a foreign power.

Extraterritorial Reach

Any person must register under FIRS if they undertake in-scope activity in the UK, regardless of their location or ordinary domicile at the time of undertaking the activity. The Home Office guidance confirms that FIRS may apply to any in-scope activity that "starts abroad but has effect in the UK".³

China Horizon-scanning

There is ongoing debate within the UK Government about placing China, or parts of its government, on the enhanced tier. Entities with relevant exposure should continue to monitor developments in this area.