Sam, you're right. See FAA Chief Counsel opinion:
https://www.faa.gov/about/office_org...rpretation.pdf
and FAA General Aviation Airman Designee Handbook:
https://www.faa.gov/documentLibrary/...der_8900.2.pdf
Section 21, relevant item found at page 7-162:
Section 21. Accomplish Issuance of a U.S. Pilot Certificate Based on a Foreign Pilot License
...
(6) Advise the applicant about the rules and requirements contained in part 61 and part 91 (e.g., flight review requirements, recency of experience requirements, required logbook entries). As a point emphasis, make clear to the applicant that a flight review (refer to § 61.56) must be administered by a holder of an FAA flight instructor certificate with the appropriate ratings before he or she may exercise the privileges of his or her U.S. pilot certificate. The proficiency checks administered by a foreign flight instructor do not count for meeting the flight review requirements of § 61.56.
ifitaint...