The summary below was drafted as a guide for congressional candidates.

From Chapter 5:

Foreign Nationals

Campaigns may not accept contributions from foreign nationals. Federal law prohibits contributions, donations, expenditures and disbursements solicited, directed, received or made directly or indirectly by or from foreign nationals in connection with any election – federal, state or local.  Furthermore, it is a violation of federal law to knowingly provide assistance to foreign nationals in the making of contributions, donations, expenditures, independent expenditures and disbursements in connection with federal and nonfederal elections. 110.20. This prohibition includes, but is not limited to, acting as a conduit or intermediary for foreign national contributions and donations. 110.20(g) and (h).

A campaign has “knowingly” solicited, directed or received a contribution from a foreign national when it has:

• Actual knowledge that the funds have come from a foreign national;

• Awareness of certain facts that would lead a reasonable person to believe that there is a substantial probability that the money is from a foreign national; or

• Awareness of facts that should have prompted a reasonable inquiry into whether the source of funds is a foreign national.
The facts that should lead the campaign to question the origin of a contribution include:

• Use of a foreign passport or passport number;

• Use of a foreign address;

• A check or other written instrument drawn on an account or wire transfer from a foreign bank; or

• Contributor or donor living abroad.
110.20(a)(5)(i)-(v).

Definition of Foreign National

A foreign national is:

• An individual who is: (1) not a citizen of the United States and (2) not lawfully admitted for permanent residence; or

• A foreign principal, as defined in 22 U.S.C. §611(b).  Section 611 defines a foreign principal as a group organized under the laws of a foreign country or having its principal place of business in a foreign country. The statute specifically mentions foreign governments, political parties, partnerships, associations and corporations. 110.20(a)(3).

“Green Card” Exception

An immigrant is eligible to make a contribution if the immigrant has a “green card” indicating that he or she is lawfully admitted for permanent residence in the United States.

Domestic Subsidiaries of Foreign Corporations

In advisory opinions, the Commission has said that a United States corporation that is a subsidiary of a foreign corporation may sponsor a separate segregated fund to make contributions to federal candidates as long as the subsidiary complies with the following rules:

• The foreign parent may not finance these activities either directly or through the subsidiary.

• No foreign national (including the foreign parent) may participate in the operations of the separate segregated fund or in its administration (such as by appointing officers) or in any decision to make contributions or expenditures in connection with any federal or nonfederal election See 110.20(i).

See also AOs 2000-17, 1995-15, 1992-16, 1990-8 and 1985-3.

Determining Nationality of Contributor

The Commission stated, in AO 1998-14, that the use of any surname on a contribution check (or similar instrument) would not, by itself, give any reason to inquire as to the person’s nationality.  

Nonetheless, the Commission advised the committee to take the following minimally intrusive steps to ensure that the contributions it received did not come from foreign nationals:

• Ensure that public political ads and solicitations directed to audiences outside the U.S. contain a summary of the foreign national prohibition of 2 U.S.C. §441e.

• Make further inquiry into the nationality of the contributor if the committee receives a contribution postmarked from any non U.S. territory.

• Make further inquiry into the nationality of the contributor if the committee receives a contribution indicating that either the bank or the account owner has a foreign address.

In all of the above instances, if the contribution is submitted along with credible evidence (e.g., a copy of a valid U.S. passport) that the contributor is a U.S. citizen, a U.S. national or a permanent resident alien, no further inquiry need be made. However, if the committee has actual knowledge that the contributor is in fact a foreign national, it may not rely on these documents as a defense.  110.20(a)(7).