Facility Security Clearance (FCL) & Foreign Ownership, Control or Influence (FOCI) Flashcards

Which FOCI mitigation instrument is typically used when a foreign interest does NOT own voting stock sufficient to elect a board representative?

Answer: Board Resolution

A Board Resolution is the least restrictive measure, used when the foreign interest cannot elect a representative to the board.

Which mitigation instrument applies when the foreign interest can elect board representatives but does not effectively own or control the company?

Answer: Security Control Agreement (SCA)

An SCA is used when the foreign interest is entitled to board representation but does not effectively own or control the entity.

A Special Security Agreement (SSA) is used when the foreign interest:

Answer: Effectively owns or controls the company

An SSA preserves the foreign owner's ability to participate in management while protecting classified information when it effectively owns or controls the entity.

Under an SSA, access to which type of information requires a National Interest Determination (NID)?

Answer: Proscribed information such as Top Secret, SCI, SAP, RD, and COMSEC

Proscribed information requires a NID for SSA-mitigated entities.

Under a Proxy Agreement or Voting Trust Agreement, who exercises the foreign owner's voting rights?

Answer: Cleared U.S. citizen proxy holders or trustees

Voting rights are conveyed to cleared, DCSA-approved U.S. citizen proxy holders or trustees.

Which mitigation instruments generally allow the entity to access classified information without NIDs because the foreign owner is effectively insulated?

Answer: Proxy Agreement and Voting Trust Agreement

Proxy and voting trust arrangements insulate the entity so it is not denied access due to FOCI, so no NID is required.

Which committee oversees the implementation of FOCI mitigation measures at an SSA or SCA company?

Answer: The Government Security Committee (GSC)

The GSC, made up of outside directors and cleared officers, oversees security and FOCI compliance.