New Senate legislative bill aims to close foreign adversary communication loophole
A new bill was introduced in the U.S. Senate that would close the foreign adversary communications loophole. With the introduction of the Foreign Adversary Communications Transparency Act (FACT Act), the U.S. Federal Communications Commission (FCC) must publish a list of companies that hold permits, licenses, or other authority from the telecommunications agency and are owned in whole or in part by China, Russia, Iran, North Korea, Cuba, or Venezuela.
The legislation introduced by Marco Rubio, a Republican Senator from Florida, said that “Not later than 120 days after the date of enactment of this Act, the Commission shall publish on the internet website of the Commission a list of each entity— that holds— an authorization issued by the Commission; a license issued by the Commission; or any other grant of authority issued by the Commission.”
Additionally, either any of the equity interest (or equivalent thereof) which is owned by a covered entity; or that is not covered but that the Commission, in consultation with an appropriate national security agency, considers appropriate.
The bill also laid down that the FCC shall update the list “not less frequently than annually.”
The FCC is prohibited from reviewing or issuing new equipment licenses to companies deemed a national security threat, but companies with ties to several countries of concern still hold specific authorizations or licenses from the FCC. Additional transparency is needed to ensure U.S. telecommunications infrastructure remains secure.
“We know that adversaries like China and Russia exploit and infiltrate our telecommunications infrastructure, which poses a serious threat to our national security interests, Senator Rubio said in a Thursday media statement. “This bill would shine a light on the problem by mandating disclosure of companies with FCC licenses that are under the influence of our adversaries.”
In March, the Office of the Director of National Intelligence (ODNI) said in its annual report that foreign intelligence services are adopting cutting-edge technologies, ranging from advanced cyber tools to unmanned systems to enhanced technical surveillance equipment, which improves their capabilities and challenges U.S. defenses. Much of this technology is available commercially, providing a shortcut for previously unsophisticated services to become legitimate threats.
U.S. Representative Elise Stefanik, a Republican from New York, introduced companion legislation in the House.
“I’m working to shine a light on the malign influence of the Chinese Communist Party and our other foreign adversaries,” according to Congresswoman Stefanik. “Allowing companies owned by China and our other foreign adversaries to have access to our critical infrastructure is playing with fire, and we must have transparency over the influence they can have over the lives of American citizens.”
The FCC adopted last November new rules, under the Bipartisan Secure Equipment Act of 2021, which prohibit communications equipment deemed to pose an unacceptable risk to national security from being authorized for importation or sale in the country. The amended rules relate to equipment authorization to further secure communications networks and supply chains from equipment that poses an unacceptable risk to the national security of the U.S. or the security and safety of its citizens.
Last week, the FCC created a new Privacy and Data Protection Task Force to coordinate interagency rulemaking, enforcement, and public awareness efforts on privacy and data protection. The task force will deal with various data breaches – for example, at telecommunications providers and in connection with cyberattacks – and supply chain vulnerabilities at third-party providers serving regulated communications providers.
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