Pressman Mistaken: Hungary's Sovereignty Protection Bill More Lenient Than FARA

In the US, any political appointee is free to employ the Foreign Agents Registration Act according to their personal preferences.

Budapest Pride Fotó: Kovács Tamás

The office, however, is not an authority, i.e. it cannot punish and it cannot fine anyone. It can only make recommendations to the government with a view to safeguarding the country's sovereignty.

To provide a legal framework for the work of the office, the legislative package includes a tightening of the criminal code. According to the amendment, members of nominating organizations who make use of prohibited foreign money or "make financial gains by concealing the origin of their prohibited foreign funding" would face up to three years in prison.

As far as foreign funding is concerned, the same ban will apply to nominating organizations as has already applied to political parties, closing the loophole exploited by the Everyone's Hungary Movement (MMM) when accepting 'rolling dollars' last year.

The legislation governing electoral procedures will be amended to require nominating organizations to declare at the time of their registration that they will not use foreign funding, "funding from an organization without legal personality, anonymous donations or assets derived from such donations" during their election campaigns. The enforcement falls within the remit of Hungary's State Audit Office (ASZ), who may impose a fine that's double the amount of the banned foreign support, if the rules are breached. 

The legislation devotes not a single word to "independent civil society" or  "media organizations, 

– unless, of course, the liberal media wishes to run their candidates in future elections.

Meanwhile in America

In the US, Foreign Agents Registration Act (FARA) covers a much broader scope than Hungary's sovereignty protection bill: while the Hungarian legislation focuses on nominating organizations and legal entities that support them, FARA applies to anyone "acting as an agent, representative, employee or subordinate, or any person acting in any other capacity at the behest, request, direction, or control of a foreign principal or person, or any person whose activities are directly or indirectly supervised, directed, controlled, financed, or supported by a foreign principal."

The legislation also applies to them, even if they are engaged in political activities for, or on behalf of, a foreign client in the role of public relations, advertising, political consultancy, fundraising and/or disbursement.

FARA, akin to Hungary's sovereignty protection law, broadly defines the term 'foreign.' It encompasses entities exercising sovereign power, de jure or de facto, in any country or part of a country other than the United States, including any subset or agency of such power exercisers. 

Agent activity, as detailed above, is essentially prohibited in the US. Such activity can only take place if the agent registers with the attorney general, who is also the head of the justice department and the president's political appointee.

Agents must, among other things, provide details of all written and verbal agreements with their clients, the exact amount of the foreign aid, the names, domiciles, addresses and nationalities of all non-foreign clients. Agents must also provide their own personal details.

This information will also be made public by the attorney general. There is, however, a transparent and constitutional exemption from the strict registration rules granted by the chief executive: 

Any person, or employee of such person, whose foreign principal is a government of a foreign country the defense of which the President deems vital to the defense of the United States "

Neither the attorney general, nor the public needs to know anything about the agents exempted from registration by a political decision of the president.

Violation of FARA, America's foreign agents law, may result in a fine of up to ten thousand dollars, or five years in jail.

Cover photo: David Pressman (Photo: Tamas Kovacs)