The guidelines which were issued on January 5, 1981, reaffirm existing FBI practices and procedures. Their major purpose is to establish clear and workable procedures for the authorization and review of undercover operations at appropriate levels in both the FBI and the Department of Justice. One feature is a requirement of authorization by FBI headquarters and the FBI director of all undercover operations involving risks of what are termed 'sensitive circumstances.' These include investigations into public corruption, operations in which a subtantial risk of violence exists, and situations in which undercover agents may participate in criminal activities. Also contained is a section setting forth standards for the creation of opportunities for criminal activities or for the encouragement or inducement of persons to engage in crimes. These standards are significantly more restrictive than those required by the law of entrapment or the constitutional principles of due process. For example, such operations must be designed so that the corrupt nature of the activity is clear to the subjects of the investigation. Limitations are also placed on the nature of inducements that may be offered to subjects of undercover operations. All undercover operations must be approved by the special agent in charge or by the director or assistant director depending upon the operations category. Throughout the course of any undercover operation that has been approved by headquarters, the special agent in charge must consult periodically with the U.S. Attorney, strike force chief, or Assistant Attorney General. Key terms are defined. (Author abstract modified).