Pre-Engagement Diligence Checklist

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.