Compliance Policies | Action for Democracy

Terms of Use Compliance Policies and Procedures - FARA, FCPA, OFAC

Purpose

Action for Democracy (“the Organization”) is committed to conducting all of its activities in full compliance with U.S. laws and regulations. This Compliance Policy outlines the procedures and practices that all staff and contractors must follow to ensure the Organization remains compliant with applicable laws, including the Foreign Agents Registration Act (FARA), the Foreign Corrupt Practices Act (FCPA), Office of Foreign Assets Control (OFAC) sanctions regulations, and U.S. anti-terrorism laws. The purpose of this policy is to protect the Organization’s integrity and mission by preventing legal violations and ensuring ethical conduct in all operations.

Scope

This policy applies to all Action for Democracy employees, board members, and contractors (collectively “staff”). Every member of the Organization is responsible for understanding and adhering to these compliance guidelines. Failure to comply with this policy may result in disciplinary action and/or legal consequences for both the individual and the Organization.

Organisation-wide Compliance Procedures

Seeking Legal Counsel: To ensure that Action for Democracy’s operations remain fully compliant with all applicable U.S. laws, the Organization regularly consults with qualified legal counsel on matters related to FARA, FCPA, OFAC sanctions, anti-terrorism regulations, and other relevant compliance areas. This includes:

Periodic Legal Review: The Organization engages in regular legal review of its programs, partnerships, advocacy strategies, and public communications. These periodic assessments help ensure our activities continue to align with current legal interpretations and regulatory updates, particularly as enforcement priorities and legal standards evolve.
Immediate Consultation in Borderline Cases: Staff are required to seek immediate guidance from legal counsel whenever an activity or request appears to approach a legal boundary or may raise uncertainty about compliance—especially in situations where foreign relationships, advocacy, or funding may be involved. No action is taken until legal clearance has been obtained.

Grantmaking Compliance Procedures

When providing grants or direct support to partners and projects, Action for Democracy implements strict measures to ensure compliance with FARA, FCPA, OFAC, and anti-terrorism regulations:

No Grants to Foreign Officials or Political Decision-Makers: Action for Democracy does not award grants to, or in coordination with, foreign government officials, political party officials, officials of international public organizations, candidates for public office, or representatives of other businesses or persons acting on behalf of any of the foregoing. Grant agreements mandate that grant recipients are to adhere to the same stipulations regarding the use of funds received from Action for Democracy.

Prohibition on Supporting Terrorist Activity: The Organization will not provide support or resources to any individual or group that engages in or is suspected of engaging in terrorism. This includes strictly avoiding any transactions or grants that could constitute material support to terrorist organizations, in accordance with 18 U.S.C. §2339A and §2339B.

Due Diligence and OFAC Screening: The Organization screens all individuals, organizations, and entities it plans to support, fund, or partner with. This screening is done before any grant is awarded, contract is signed, or partnership is formed. The Organization also screens key associated persons of those entities (such as principal officers or board members) as appropriate. This due diligence includes screening each organization and significant individuals associated with it against the U.S. Treasury OFAC Specially Designated Nationals (SDN) list to ensure none are subject to sanctions. As part of our vetting process, Action for Democracy checks that potential grantees, partners, and key beneficiaries are not listed on U.S. government watchlists for terrorism or tied to terrorist entities. If any proposed grantee, vendor, or partner (or their key associates) appears on the SDN list for any reason, Action for Democracy will not proceed with the engagement.

Independent Grant Selection: Grant recipients are selected independently by Action for Democracy based on alignment with the Organization’s mission and established criteria – never at the request or direction of any foreign entity. The Organization does not accept requests, pressure, or instructions from foreign governments, organizations, or individuals regarding who should receive our grants. All strategic decisions about what issues to fund and which partners to support remain solely with Action for Democracy’s leadership. This maintains our programming independence and ensures that no foreign principal has any control over our funding decisions.

Anti-Corruption and Accountability in Grants: All grant agreements issued by Action for Democracy include clauses requiring the recipient to use funds in compliance with international, federal, state, and local laws, ordinances, rules, regulations, orders, licenses, permits and other governmental requirements applicable to the activities to be performed. Grantees must agree not to use grant funds for any corrupt purposes, bribery, or prohibited activities (such as fraud, violence, or support of terrorist activities). They are also required to comply with applicable U.S. sanctions and anti-terrorism laws. The Organization requests reports from grantees to confirm that funds are spent in accordance with the agreed purposes. These measures help maintain transparency and prevent misuse of funds, reinforcing compliance with FCPA and anti-terrorism standards.

Monitoring and Record-Keeping: Staff overseeing grants maintain documentation of all due diligence steps, approvals, and communications related to each grant. This includes records of the vetting process (such as the results of sanctions list screenings) and the rationale for selecting each grantee. Any concerns or red flags that arise during the grant period (for example, if a grantee is later implicated in illegal activity) must be reported immediately to the boards and addressed, including suspension of funding and notification to authorities.

Advocacy Compliance Procedures

In conducting policy advocacy and public communications, Action for Democracy adheres to practices that ensure we remain independent and compliant with all legal obligations:

No Agency Relationships with Foreign Principals: The Organization does not establish agency relationships with any “foreign principal” as defined by FARA (e.g., foreign governments, foreign political parties, foreign organizations, or individuals outside the United States). Action for Democracy acts independently to pursue its mission and does not serve as an agent or representative of foreign entities. Action for Democracy does not accept any compensation, funding, or items of value from foreign entities that are provided in exchange for (or with an expectation of) the Organization undertaking specific activities. No requests or demands from any foreign government, political party, or other foreign principal are accepted if they could create an impression of an agency relationship.

Independence in Initiatives: Under no circumstances will staff perform activities or solicit funds at the request, direction, or control of a foreign principal. All initiatives – including public communications, advocacy campaigns, program decisions, and fundraising campaigns – are conceived and executed solely by Action for Democracy based on its own strategic objectives. All advocacy campaigns and public policy positions taken by Action for Democracy are developed internally and carried out on the Organization’s own initiative. We do not accept guidance, drafts of statements, or strategic direction from foreign principals for our campaigns. The content of our advocacy – whether it involves public statements, publications, social media, or direct engagement with policymakers – reflects Action for Democracy’s independent views and mission.

Transparency and Attribution: In all our advocacy communications (such as op-eds, reports, or press releases), Action for Democracy and its staff, if applicable, are clearly identified as the author or source. We do not produce anonymous materials at the behest of others, nor do we conceal sponsorship by the Organization. This transparency reinforces that our advocacy is our own. Additionally, if we collaborate with other organizations (including any international NGOs) on a campaign, we ensure that Action for Democracy’s role is openly acknowledged and that we are not indirectly disseminating messages for a foreign principal.

Periodic Review and Training on FARA: The Organization regularly reviews its advocacy activities to ensure compliance with FARA and other laws. Staff involved in advocacy and policy work receive periodic training on legal boundaries. Contractors and staff are expected to conduct due diligence and remain vigilant about situations that could be construed as acting on behalf of a foreign principal – for example, receiving requests or directives from a foreign organization related to U.S. policy advocacy. Employees must avoid such situations or immediately consult with the Organization’s legal counsel if uncertain.

Training and Due Diligence on FCPA: The Organization provides training to relevant staff on FCPA compliance and anti-bribery standards. Due diligence is conducted when engaging third parties (such as consultants, agents, or partners) in foreign jurisdictions to ensure they also uphold anti-corruption principles. Any staff member who suspects a potential bribe or improper payment in connection with Action for Democracy’s work must report it immediately to the board or legal counsel for investigation.

Compliance with Anti-Bribery Laws: When engaging with U.S. or foreign public officials as part of our advocacy, Action for Democracy personnel must adhere to all ethical guidelines and legal requirements. No staff member or contractor shall offer, promise, or give anything of value to any foreign official, foreign political figure, or any other person for the purpose of influencing official action or securing an improper advantage for the Organization, in compliance with FCPA. This prohibition applies to direct and indirect payments, gifts, travel expenses, favors, or any other benefit. Even the appearance of offering a bribe is unacceptable.

Periodic Review on LDA: The Organization regularly consults with counsel to confirm whether its advocacy activities trigger registration or reporting under the Lobbying Disclosure Act (“LDA”), and to ensure that it registers or reports accordingly if applicable.

EU Transparency and Registration: In addition to compliance with U.S. laws and regulations, Action for Democracy is committed to transparency and ethical engagement within the European Union. The Organization is duly registered in the EU Transparency Register, a public database jointly managed by the European Parliament and European Commission to promote openness in policymaking. This registration ensures that Action for Democracy's advocacy efforts toward EU institutions are conducted with full transparency, and allows the Organization to participate in consultations, hearings, and other formal interactions with EU policymakers. As part of its registration, Action for Democracy discloses relevant information about its objectives, funding sources, and policy engagement activities, reaffirming its commitment to accountability and ethical standards in both U.S. and EU jurisdictions.