A standing pre-engagement diligence checklist is the highest-leverage institutional document in foreign-principal work. The checklist below identifies the elements current operating practice supports. Items marked require qualified U.S. counsel review.
Principal identification:
- Legal identity documented
- Ownership and control structure documented*
- Government or party affiliation documented*
- Related entities identified*
- OFAC, EU, UN, UK sanctions screening completed*
- Adverse media review completed
- Prior FARA filings identified
Engagement scope:
- Activities described in writing
- Activities classified under FARA*
- Activities classified under LDA*
- Commercial exception analysis documented*
- LDA Section 3(h) exemption analysis documented*
- 8 USC 951 analysis documented*
- ITAR, EAR, CFIUS implications reviewed*
Registration determination:
- FARA requirement: yes / no / advisable voluntarily*
- LDA requirement: yes / no*
- Analysis documented in writing and signed by counsel*
- Registration timeline plan established
Compensation:
- Fee structure documented
- Source of payment documented*
- Payment routing documented*
Country profile review:
- Attention environment assessed
- Communications infrastructure requirements scaled
Communications plan:
- Owned content strategy
- Earned media plan
- Validator strategy
- AI visibility plan
- Crisis response infrastructure
Subcontractor review:
- Subcontractors identified
- Sub-agent FARA requirements reviewed*
- Subcontractor compliance documented*
Documentation:
- Engagement letter with compliance representations
- Pre-engagement memo completed and signed
- Communications strategy memo
- Country profile memo
- Internal file established
Review cadence:
- 30-day post-signing review
- 90-day strategic review
- Six-month supplemental review (if FARA-registered)
- Annual engagement review
- Material change triggers documented
Key takeaway: Pre-engagement diligence is communications infrastructure as much as legal infrastructure.
What firms should do now: Adopt a standing checklist as a non-negotiable institutional practice. Document every analysis. Build the institutional record.
FAQ. Q: Is this checklist a substitute for counsel review? A: No --- it organizes the workflow; qualified counsel must perform the legal analyses marked. Q: Can the checklist be tailored to specific engagement types? A: Yes --- different engagement categories warrant tailored variants.
