Compliance with Ban on Contributions from Foreign Nationals

Compliance with Ban on Contributions from Foreign Nationals

May 5, 2016, Covington Alert

Federal law prohibits contributions and expenditures made “directly or indirectly” by foreign nationals “in connection with a federal, state, or local election.” 52 U.S.C. § 30121; 11 C.F.R. § 110.20. It is also unlawful to provide substantial assistance to help foreign nationals violate that ban, or to solicit, receive, or accept contributions from foreign nationals. 11 C.F.R. § 110.20(h). Violations of this prohibition may lead to fines or imprisonment. While companies are generally familiar with the prohibition, there are several issues which deserve particular attention.