Foreign Influence and Malicious Actors: Another Regulated Sector…

Gavin Irwin discusses the wide-ranging powers contained in the National Security Act 2023 and the Foreign Influence Registration Scheme.

On 8 July 2025, convictions were secured against the three men responsible for the March 2024 arson attack on an East London warehouse containing humanitarian aid and technology destined for Ukraine.  The men were acting at the direction of the Wagner Group, a proxy for Russian state interests, and one of the three is understood to be the first person to be convicted of offences under the National Security Act 2023 (‘the 2023 Act’).  The 2023 Act has also made headlines by permitting for the introduction of polygraph evidence in relation to individuals who are subject to a Prevention and Investigation Measures notice[1].

The National Security Act 2023

The 2023 Act gained Royal Assent on 11 July 2023.  Part 1 provides for new criminal offences including espionage (ss.1 to 3), sabotage (s.12) and foreign interference (ss.13 to 16) and was brought into force on 20 December 2023.  Part 4 is entitled “Foreign activities and foreign influence registration scheme” and was brought into force on 1 July 2025 through the National Security Act 2023 (Foreign Activities and Foreign Influence Registration Scheme: Publication) Regulations 2025 and the National Security Act 2023 (Foreign Activities and Foreign Influence Registration Scheme: Information and Disclosure) Regulations 2025.

The Foreign Influence Registration Scheme

The Foreign Influence Registration Scheme (‘FIRS’) is intended to enhance transparency of foreign influence in UK politics, and to provide greater assurance around the activities of the foreign powers that pose the greatest risk to the UK.  FIRS requires individuals and organisations to register their arrangements with foreign powers and certain foreign power-controlled entities where they are directed to carry out certain activities in the UK.  It also requires certain foreign entities to register activities which they carry out themselves in the UK.

There are four categories of activities or arrangements which are required to be registered with the Secretary of State under the scheme:

• Foreign activity arrangements (section 65)
• Certain activities of persons specified in relation to the regime (section 68)
• Foreign influence arrangements (section 69)
• Certain political influence activities of foreign powers where there is misrepresentation (section 72)

The Security Service has confirmed that “the threat” predominantly comes from Russia, Iran and China, however, the legislation is “actor agnostic” and any person working for any foreign power may be liable where the activity is damaging to the safety or interests of the UK.

Exemptions are made for, inter alia, diplomats, lawyers, recognised news publishers and sovereign wealth funds (‘obvious’ actors).  Registration of an arrangement does not, in itself, mean that it is illegitimate or illegal. There is no requirement for activity registered with FIRS to cease.

FIRS is described as a two-tier scheme: Tier 1 is “political influence” and Tier 2 is “enhanced”.

Tier 1: the Political Influence Tier[2]

Political influence activities

The political influence tier requires individuals or organisations to register where they are directed by any foreign power (except the Republic of Ireland) to carry out, or arrange for someone else to carry out, political influence activities in the UK.

Registration is required within 28 calendar days of the direction being given by the foreign power.  It is an offence to carry out activities in the UK outside of that 28-day period, unless the arrangement has been registered.

Political influence activities include communications made to senior public officials or politicians (for example, emails or meetings), public communications (for example, the publication of an article) or disbursements (for example, the provision of goods or services) which are intended to influence one of the following:

• An election or referendum in the UK
• A decision of a Minister or Government department (including a Minister or Government department of Wales, Scotland or Northern Ireland)
• The proceedings of a UK registered political party (such as their manifesto commitments)
• A Member of the House of Commons, House of Lords, Northern Ireland Assembly, Scottish Parliament or Senedd Cymru

Example of a registerable arrangement under the political influence tier

“A lobbying firm makes an arrangement with a foreign government. The foreign government directs the firm to lobby UK parliamentarians to convince them to vote in favour of the foreign government’s interests. The lobbying firm is required to register.”

Definitions and Guidance[3]

How is ‘foreign power’ defined?

Section 32 of the 2023 Act defines a foreign power as:

• The sovereign or other head of a foreign State
• A foreign government, or part of a foreign government (for example, a ministry or department of a foreign government)
• An agency or authority of a foreign government, or of part of a foreign government
• An authority responsible for administering the affairs of an area within a foreign country or territory (for example, a local government authority in a foreign country)
• A political party which is a governing political party of a foreign government

What is an ‘agency or authority’ of a foreign government?

An entity which carries out public functions (examples below) on behalf of a foreign government, is an agent or authority of that government:

• The entity is responsible for overseeing the implementation of government decisions, policies or laws (for example, industry regulators or standard-setting bodies)
• The entity is responsible for enforcing laws (for example, a police force)
• The entity carries out the practical or administrative work of government (for example, the issuing of passports or the operation of prisons).

Importantly, companies which are owned by, or controlled by, foreign governments (as may be the case with a state-owned enterprise) are not foreign powers by virtue of ownership or control – arrangements with commercial entities do not require registration, even if these entities are state-owned.

What is an ‘arrangement’?

An arrangement includes, but is not limited to:

• A formal arrangement such as a contract
• A non-legally binding agreement such as an MOU
• An order (or similar agreement) for a good or service, to be followed up with a bill or invoice
• An informal quid pro quo agreement.

Importantly, conversations or correspondence with a foreign power that do not materialise into an arrangement or agreement to carry out registerable activities do not require registration.

Sector Specific Guidance

On 1 July 2025, the Government published or updated guidance for the following sectors:

• Business and Industry[4]
• Media[5]
• Academia[6]
• Charities & NGOs[7]
• Defence & Security[8]

Tier 2: the Enhanced Tier[9]

The enhanced tier seeks to provide greater assurance around the activities linked to certain foreign powers, or foreign power-controlled entities, which may pose a greater risk (principally China, Russia and Iran).

Registration is required within 10 calendar days of the direction being given by the specified foreign power or foreign power-controlled entity and before the “relevant activities” commence.

An individual or organisation is required to register with the scheme when all of the below four conditions are met:

• A person makes an arrangement(whether formal or informal) with a specified foreign power or entity
• That arrangement involves a “direction” from the specified foreign power or entity
• The direction is to carry out “relevant activities” in the UK (whether by the registrant themself, or with or through someone else)
• That no exemptions apply to the arrangement or activities.

Example of a registerable arrangement under the enhanced tier

“A UK firm selling medical technology receives an order from a specified foreign power from Country A for the purchase of ventilators for state-run hospitals in country A. The firm is required to register within 10 days of receiving the order, and prior to shipping the ventilators.”

What is a ‘relevant activity’?

‘Relevant activities’ by default means all activities, including but not limited to commercial activities, the provision of goods and services, research activities and attendance at events.  Where an activity starts abroad, but has effect in the UK, this may be in scope of registration requirements. For example:

• A post on a social media page which is targeted at individuals in the UK, even if it is posted by an individual overseas
• The transfer of funds from an individual abroad to an individual in the UK or vice versa

However, where an activity takes place entirely abroad (for example, a meeting with a UK Minister during a visit overseas), this is not in scope of registration requirements.

Regime Specific Guidance[10]

At present, the enhanced tier relates only to Russia[11] and Iran[12] (not China) and separate guidance has been published in relation to each.

Publication and Updating

The Secretary of State for the Home Department must maintain a FIRS register and publish certain information about a registration, as soon as practicable, unless one or more exceptions apply:

• There is a risk that publication would be prejudicial to the safety or interests of the United Kingdom
• There is a risk that publication would be prejudicial to the prevention or detection of crime, a criminal investigation, or criminal proceedings
• There is evidence of a significant risk that publication would put any individual’s safety at risk of serious harm
• The information is commercially sensitive (as defined in the Regulations)

Registrants are required to update their registration within 14 days where there is a material change to any of the information that they have provided. For example, if a new type of activity is carried out under a registered arrangement, the registrant is required to update the information provided with details of the new activity.

Offences

A foreign activity offence is an offence under ss.65(5), 67, 68(9) or (10), 74(8), 75(8), 77(1) or (2) and 78(1).

A foreign influence offence is one under ss.69(5), 71, 72(6), 74(8), 75(8), 77(3) or (4) and 78(2).

Under s.80, the maximum penalty on conviction on indictment:

• For a foreign activity offence is 5 years imprisonment
• For a foreign influence offence is 2 years imprisonment

In proceedings for an offence, it is a defence to show that the person took all steps reasonably practicable to determine whether the arrangement was registered, and reasonably believed that the arrangement was registered.

In conclusion

FIRS attempts to strike a balance between the need to manage the risks posed by bad actors and/or those whose interests are not aligned with the UK’s and the desire to remain open to transparent engagement and cooperation with foreign powers.

If you are conducting business that may be exposed to the risks outlined above, you should, as a minimum or starting point, ask yourself the following questions:

• Is my client based overseas and are they likely to be working for a state? E.g. public sector or arm’s length body?
• Has my client failed to provide me with sufficient information as to their identity or organisation when requested?
• Could the activity they are asking me to carry out fall under any of the behaviours outlined above? (e.g. gathering sensitive information on an individual or national infrastructure)

If the answer to one or more of these questions if ‘yes’, Government advises that you “should strongly consider whether you take on the contract for that client”.

Gavin represented Oghenochuko Ojiri in the first prosecution brought under section 21A of the Terrorism Act 2000 (failure to report money laundering within the regulated sector) and Alexei Owsjanikow in the first prosecution brought under the Russia Regulations 2019 (circumvention of prohibitions in relation to providing funds and economic resources to, or for the benefit of, a Designated Person).

Gavin advises businesses and professionals on risk management, compliance and self-reporting obligations and has considerable experience in navigating  monetary and compound penalties.

[1] National Security Act 2023 (Prevention and Investigation Measures) (Polygraph) Regulations 2023

[2] https://www.gov.uk/government/publications/foreign-influence-registration-scheme-introduction/introduction-to-the-foreign-influence-registration-scheme-firs-accessible-version

[3] https://www.gov.uk/government/publications/foreign-influence-registration-scheme-political-influence-tier/guidance-on-the-foreign-influence-registration-scheme-political-influence-tier-accessible-version

[4] https://www.gov.uk/government/publications/foreign-influence-registration-scheme-guidance-for-business/sector-specific-guidance-on-the-foreign-influence-registration-scheme-business-and-industry-accessible-version

[5] https://www.gov.uk/government/publications/foreign-influence-registration-scheme-guidance-for-media/sector-specific-guidance-on-the-foreign-influence-registration-scheme-media-accessible-version

[6] https://www.gov.uk/government/publications/foreign-influence-registration-scheme-guidance-for-academia-and-research/sector-specific-guidance-on-the-foreign-influence-registration-scheme-firs-academia-and-research-sector-accessible-version

[7] https://www.gov.uk/government/publications/foreign-influence-registration-scheme-guidance-for-charities-and-civil-society/sector-specific-guidance-on-the-foreign-influence-registration-scheme-charities-and-civil-society-accessible-version

[8] https://www.gov.uk/government/publications/foreign-influence-registration-scheme-guidance-for-defence-and-security/sector-specific-guidance-on-the-foreign-influence-registration-scheme-defence-and-security-accessible-version

[9] https://www.gov.uk/government/publications/foreign-influence-registration-scheme-introduction/introduction-to-the-foreign-influence-registration-scheme-firs-accessible-version

[10] https://www.gov.uk/government/publications/foreign-influence-registration-scheme-enhanced-tier/guidance-on-the-foreign-influence-registration-scheme-enhanced-tier-accessible-version

[11] https://www.gov.uk/government/publications/foreign-influence-registration-scheme-specified-powers-russia/guidance-on-the-foreign-influence-registration-scheme-specified-foreign-powers-or-foreign-power-controlled-entities-russia-accessible-version

[12] https://www.gov.uk/government/publications/foreign-influence-registration-scheme-specified-powers-iran/guidance-on-the-foreign-influence-registration-scheme-specified-foreign-powers-or-foreign-power-controlled-entities-iran-accessible