FCC MANDATES FOREIGN ADVERSARY TRANSPARENCY ACROSS COMMUNICATIONS NETWORKS
Federal Communications Commission
The Federal Communications Commission final rule establishes a comprehensive reporting framework requiring license and authorization holders to disclose whether they are owned by, controlled by, or subject to the jurisdiction or direction of a foreign adversary.
The rule categorizes all Commission-granted licenses, leases, and approvals into three distinct risk-based tiers: Schedules A, B, and C.
Schedule A covers high-risk assets—including 4G/5G geographic-area wireless licenses, submarine cables, international Section 214 authorizations, space station authorizations, Data Network Identification Codes, and broadcasters with six or more employees. Entities in this tier must definitively attest "yes" or "no" regarding foreign adversary control.
Schedule B applies to moderate-risk assets, such as site-based wireless licenses, mandatory antenna structure registrations, and small broadcasters with five or fewer employees. These entities are only required to submit an attestation if the answer is "yes" and they are currently subject to foreign adversary control.
Schedule C encompasses low-risk operations, including amateur radio licenses, voluntary antenna registrations, and auction applications, completely exempting them from the initial attestation mandate.
The FCC defines "control" to include any foreign adversary holding a 10% or greater equity or voting interest in the regulated entity.
The list of recognized foreign adversaries aligns with the Department of Commerce's designations, currently encompassing China, Cuba, Iran, North Korea, Russia, and Venezuelan politician Nicolás Maduro.
All required attestations will be submitted through a newly established, centralized portal called the Foreign Adversary Control System (FACS).
Any entity that answers "yes" to foreign adversary control must execute a series of expanded disclosures. These regulatees must identify all individuals or entities holding a 5% or greater direct or indirect equity or voting interest, submit a vertical ownership diagram, and describe the exact nature of the foreign jurisdiction or control.
The FCC will make these attestations and disclosures available to the public to maximize transparency and deter noncompliance.
To enforce compliance, the FCC has adopted a streamlined revocation procedure for false attestations or failures to file. The Enforcement Bureau will issue a 30-day Notice of Deficiency and Opportunity to Respond.
If the entity fails to cure the defect or explain the deficiency, the FCC will issue a 15-day Order to Show Cause, followed directly by an Order of Revocation stripping the entity of its communications authorizations.
The initial filing deadline for standard entities is 60 days following the FCC's public notice announcing the launch of the FACS portal. Entities that meet the Small Business Administration's definition of a small business are granted an extended 120-day compliance window.
Moving forward, covered entities must file updated attestations within 30 days of any material change in foreign adversary control or within 30 days of changes to a 5% or greater interest holder.
State and local government agencies, federally recognized Tribal Nations, and businesses controlled by Tribal Nations are explicitly exempted from all attestation and disclosure requirements.
Additionally, equipment authorizations processed strictly under the Supplier's Declaration of Conformity (SDoC) are relegated to Schedule C and are exempt from initial reporting, provided the equipment is not produced by an entity on the FCC's Covered List.
