New cfius regulations. ” In this regard, the Com...

  • New cfius regulations. ” In this regard, the Committee confirmed in the preamble to the Regulations that the definition For the first time in CFIUS history, DOJ has filed a federal civil complaint seeking to enforce a presidential order requiring a foreign investor to divest its interests in a U. The new rule, which impacts transactions entered into on or after December 9, 2024, continues the trend The final rule is the first substantive update to the monitoring and enforcement provisions of the CFIUS regulations since the implementation of the Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA), which amended CFIUS’s governing statute (section 721 of the Defense Production Act of 1950). Washington – The U. government has initiated a judicial enforcement action against transaction parties who failed to comply with a divestment order under the CFIUS regulations. The Committee on Foreign Investment in the United States (CFIUS, / ˈsɪfiəs /) is an inter-agency committee in the United States government that reviews the national security implications of foreign investments in the U. They are intended only as general information to assist parties that have submitted or may in the future submit transactions to CFIUS for assessment or review. It serves the President in overseeing the potential national security risks of certain foreign direct investment (FDI) in the U. The regulations, dealing with foreign acquisition of control of U. A new proposed rule would expand CFIUS’ investigation and enforcement authorities and tighten time frames for negotiating mitigation. (CFIUS). Some The proposal signals a continued effort to expand CFIUS’s enforcement scope and update penalties. The new rules build on FIRRMA and are intended to strengthen the oversight and expand the jurisdictional reach of the Committee on Foreign Investment in the U. On August 9, 2023, the President issued the Outbound Order declaring a national On December 26, 2024, Treasury’s final regulations strengthening and expanding CFIUS’s existing compliance and enforcement functions will become effective. The Committee on Foreign Investment in the United States (CFIUS) is an interagency body chaired by the Secretary of the Treasury. Learn more. g. In 2018, President Donald Trump signed into law the Foreign Investment Risk Review Modernization Act (FIRRMA), a bipartisan measure that expanded the powers of the Committee on Foreign Investment in the United States The new rule modifies the criteria that trigger a mandatory filing with CFIUS, potentially subjecting more transactions to mandatory CFIUS review. Treasury Secretary, includes members from key government departments such as Defense, State, Commerce, and Homeland Security. CFIUS Enforcement CFIUS Mitigation CFIUS Non-Notified Transactions ### On November 18, 2024, the U. business. S. Department of the Treasury, and responsible for reviewing foreign investment into the United States. President Joseph Biden’s recently issued Executive Order provides guidance related to the US national security foreign direct investment review process administered by the Committee on Foreign Investment in the United States. Real estate transactions within these distances of the new locations will fall under CFIUS's jurisdiction. Section 721 of the Defense Production Act of 1950, as amended (50 U. For years, the fear of China using its financial clout to obtain highly sensitive or national security-related US technology and data has preoccupied presidents and lawmakers. businesses. Additional rules on fees, penalties and other procedural matters, as well as rolling back some of The Foreign Investment Memo calls for an end to certain CFIUS practices with respect to mitigation agreements. businesses and that are subject to CFIUS’s regulations regarding control transactions and covered investments should be analyzed under those regulations (discussed above). As summarized in the Treasury Department’s accompanying press release, the Final May 28, 2020 · The regulations expand and clarify new authority for CFIUS to review certain real estate and other noncontrolling foreign investments on the basis of threats, vulnerabilities, and consequences to national security. This complaint represents the first time the U. CFIUS’s regulations do currently emphasize certain types of sensitive export-controlled “critical technologies”, but the EO provides for a much broader category of technologies for CFIUS to focus on. § 4565) (“Section 721”), authorizes the Committee on Foreign Investment in the United States (“CFIUS” or the “Committee”) to impose monetary penalties and seek other remedies (e. Transaction parties must comply with the full legal requirements concerning foreign investment into the United States as set The new standard and the Chairperson’s subpoena authority will greatly expand CFIUS’s ability to compel information. The Committee on Foreign Investment in the United States (CFIUS or Committee) recently launched a new section of its website specifically dedicated to enforcement, providing further clarity and transparency regarding CFIUS' approach to compliance with its regulations and related mitigation orders, conditions and agreements. In 2007, Congress once again expanded the Committee’s jurisdiction and scope of review through the passage of the Foreign Investment and National Security Act (FINSA). businesses and real estate for potential national security risks. New CFIUS rules—which took effect February 13, 2020—underscore the need for privacy diligence in deals involving foreign investments and signal a larger trend toward heightened regulatory scrutiny of foreign access to sensitive US personal data. The previous CFIUS regulations authorized CFIUS to require parties to a non-notified transaction to provide information necessary to determine whether the transaction was subject to CFIUS's jurisdiction. The Committee has broad discretionary power to determine whether those investments pose national security risks, and the CFIUS process can impact the timing and Similar to above, CFIUS will also consider any ties by the acquirer to any third parties. [1] CFIUS added 40 military installations to the one-mile and 19 locations to the 100-mile lists. CFIUS operates pursuant to section 721 of the Defense Production Act of 1950, as amended (section 721), and as implemented by Executive Order 11858, as amended, and the regulations at chapter VIII of title 31 of the Code of Federal Regulations. These sites are also instructive for assessing substantive close-proximity risks in transactions subject to CFIUS's separate and more commonly used investment regulations, providing greater guidance for risk assessments conducted pre-transaction. Tightening Mitigation Negotiation Timelines New Tool for Countering China? Going Forward On April 11, the US Department of the Treasury announced a Notice of Proposed Rulemaking (NPRM) amending the regulations that govern the operations of the Committee on Foreign Investment in the United States (CFIUS, or the Committee). CFIUS Finalizes Regulations to Increase Penalties, Expand Subpoena Authority, and Enhance Enforcement Authorities to Protect National Security On Monday, November 18, 2024, the Committee on Foreign… The regulations currently do not require parties to respond to such requests, though in practice they are rarely ignored. In amending part 800 to incorporate CFIUS’s new jurisdiction over certain non-controlling ‘‘other investments’’ (which this rule describes as ‘‘cove WASHINGTON – Today, the Department of the Treasury announces actions taken by the Committee on Foreign Investment in the United States (CFIUS) related to excepted foreign states (EFS). If you have any questions regarding how the new changes to CFIUS's regulations may impact your business, please reach out to the authors for guidance. foreign investment requires compliance with new CFIUS rules. Courts rarely handle cases involving substantive CFIUS issues, and until now, the small handful of such cases have been initiated by the parties to a transaction subject to CFIUS review. C. CFIUS has increasingly prioritized the review of non-notified transactions. Department of the Treasury today issued two final regulations in order to comprehensively implement the Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA) and to provide the Committee on Foreign Investment in the United States (CFIUS) with the ability to better address national security concerns arising from certain investments and real estate CFIUS added 40 military installations to the one-mile and 19 locations to the 100-mile lists. Department of the Treasury ("Treasury") issued a final rule governing the Committee on Foreign Investment in the United States ("CFIUS" or the "Committee") that serves as the first substantive update to the monitoring and enforcement provisions of the CFIUS regulations. The Treasury Department, which chairs the Committee on Foreign Investment in the United States (CFIUS or the Committee), recently announced several actions pertaining to its mandate under the Foreign Investment Risk Review Modernization Act (FIRRMA) to limit the application of CFIUS’s jurisdiction over non-controlling “covered investments” and certain “covered real estate transactions hile implementing the changes that FIRRMA made to CFIUS’s jurisdiction and process. Specifically, based on their establishment and use of their own robust foreign investment screening programs, CFIUS has determined that New Zealand and the United Kingdom have met the EFS determination The Committee on Foreign Investment in the United States (CFIUS) is a government body with the power to block foreign investments in U. business,” which FIRRMA and the proposed rules defined to mean “a person engaged in interstate commerce in the United States,” omitting the existing regulatory qualification “but only to the extent of its activities in interstate commerce in the United States. Despite not altering the scope of CFIUS authority, the executive order demonstrates President Biden's endorsement of inbound investment review and articulates to practitioners and members of the investment community five key areas of particular national security sensitivity. 213 of this part, and to mitigate any risk to the national security of the United States that arises as a result of such Interaction with other CFIUS regulations: Real estate transactions involving U. See below links for new sections of the website. 4565), authorizes the Committee on Foreign Investment in the United States to review any covered transaction, as defined in § 800. Broadly speaking, CFIUS has jurisdiction over three types of transactions that involve inbound foreign investment: “Covered control transactions” where a foreign person acquires “control” over a U. businesses, in some cases require mandatory national security review of transactions. government agencies, chaired by the U. On April 11, 2024, the U. Discover how the new regulations impact foreign investments, national security, compliance, and strategic planning. On April 11, 2024, the US Department of the Treasury (Treasury) issued a Notice of Proposed Venable's International Trade and Logistics Group is prepared to assist as transaction parties begin to navigate these new rules. 4. economy. businesses or certain foreign investments in U. FIRRMA Regulations and the U. Department of the Treasury issued a Proposed Rule enhancing the Committee on Foreign Investment in the United States' (CFIUS) oversight of foreign investments in U. Broadly speaking, the AFIP seeks to address structural tensions between . In the United States, for example, the Committee on Foreign Investment in the United States (“CFIUS”) has, in recent years, stepped up enforcement, increased penalties for violations, and expanded its jurisdiction. The regulations expand and clarify new authority for CFIUS to review certain real estate and other noncontrolling foreign investments on the basis of threats, vulnerabilities, and consequences to national security. Finally, the NPRM relaxes the standard under which CFIUS may exercise its subpoena authority to compel information from parties. In the past year, the U. outbound investment restrictions and These Guidelines also signaled an increased focus on enforcement and accountability, and today’s update provides further clarity and transparency about the Committee’s enforcement work since 2022, which is ongoing. CFIUS can impose civil monetary penalties for violations of certain CFIUS regulations, orders, and agreements. Jun 5, 2025 · Navigating U. New, expanded CFIUS regulations went into effect on February 13, 2020. CFIUS has the authority to negotiate, enter into or impose any agreement, condition or order with any party to mitigate national security risk arising from a covered transaction or covered real estate transaction. Dec 3, 2024 · The US Treasury Department has issued a final rule (the Final Rule) revising current regulations to “enhance certain CFIUS procedures and sharpen its penalty and enforcement authorities. The U. FIRRMA provides authorities to the President and CFIUS to address national security concerns more effectively, including the ability to review and take action to address any national security concern arising from Under FIRRMA, CFIUS is authorized to review certain non-controlling investments (called “covered investments” in the CFIUS regulations), but only if such investment affords a foreign person specified access to information in the possession of, board membership or observer rights in, or involvement in the substantive decision-making of Stay informed on the latest CFIUS Final Rule update. Venable's International Trade and Logistics Group is prepared to assist as transaction parties begin to navigate these new rules. The Executive Order reiterated several common themes, confirmed the scope of various factors identified in the Defense Production Act Section 721 as amended by the The Committee on Foreign Investment in the United States (CFIUS or the Committee) Annual Report to Congress (the Report) responds to the requirements set out in statute at section 721(m) of the Defense Production Act of 1950, as amended, and highlights key indicators of CFIUS’s activities and process, including the complexity and volume of (a) Section 721 of title VII of the Defense Production Act of 1950, as amended (50 U. Request for INFORMATION ON CFIUS KNOWN INVESTOR PROGRAM and Streamlining the Foreign Investment Review ProcessOn February 6, 2026, the Department of the The Committee on Foreign Investment in the United States (CFIUS) finalized a previously proposed rule expanding both the types of military installations covered by its regulations governing reviews of real estate transactions and the number of military installations subject to those reviews. companies. government’s efforts to counter China led to a number of noteworthy regulatory developments. On February 21, 2025, the White House issued a memorandum announcing the America First Investment Policy (AFIP) and directing executive branch departments and agencies to promulgate rules and regulations to promote America’s long-standing “open investment” policy while protecting US national and economic security. The proposed regulations expand and clarify new authority for CFIUS to review certain real estate and other noncontrolling foreign investments on the basis of threats, vulnerabilities, and consequences to national security. It also previewed the kinds of business information it may ask participants to provide and national security “As CFIUS has refined its focus on compliance and enforcement, we’ve identified important enhancements to our regulations to more effectively deter violations, promote compliance, and swiftly address national security risks in connection with CFIUS reviews,” said Assistant Secretary for Investment Security Paul Rosen. Investment Climate In August 2018, the Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA) was enacted to strengthen and modernize CFIUS. government committee, comprised of multiple departments and other U. Treasury Department’s Office of Investment Security announced a proposed rule that would modify regulations governing the Committee on Foreign Investment in the United States (“CFIUS”). The new law created additional CFIUS filing requirements and broader review considerations focused primarily on proposed transactions impacting critical infrastructure of the United States and resulting in foreign government Nov 19, 2024 · The Guidelines laid out the Committee’s enforcement framework aimed at incentivizing compliance with the CFIUS regulations, and the new rules issued today build on those principles. CFIUS legislation, regulations, executive orders, guidance, and other policy documents can be found Dec 10, 2024 · In addition, CFIUS relocated eight sites from the one-mile list to the 100-mile list. Department of the Treasury (Treasury Department) leads the implementation and operation of the new program established under the Executive Order of August 9, 2023, "Addressing United States Investments in Certain National Security Technologies and Products in Countries of Concern" (Outbound Order). The CFIUS regulations governing real estate transactions identify a subset of military installations around which certain real estate transactions are covered under CFIUS’s jurisdiction. These questions and answers highlight key issues and topics related to the procedures and practices of CFIUS. Regulations implementing the Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA) took effect on Feb. CFIUS is a U. The proposed rule at 84 FR 50214, which proposed regulations to implement the provisions of FIRRMA related to CFIUS's new jurisdiction to review certain types of transactions involving real estate in the United States, is being finalized in a separate and concurrent rulemaking. The past months in particular have seen a flurry of activity, as the outgoing Biden administration has finalized initiatives related to the Committee on Foreign Investment in the United States (“CFIUS” or the “Committee”), U. , directed notices, action plans) for violations of Section 721, the regulations promulgated thereunder, or mitigation orders Introduction The Committee on Foreign Investment in the United States (CFIUS or the Committee) is an interagency committee that reviews transactions involving certain foreign investments in U. ” The Final Rule follows an earlier Notice of Proposed Rulemaking (the Proposed Rule), on which we previously reported. Currently, the CFIUS regulations have no investor-based "fast track" procedure, although they do except from CFIUS review certain investments from a short whitelist of foreign states, specifically, Canada, Australia, the United Kingdom, and New Zealand. [1] CFIUS, led by the U. The new definition of “U. 13, 2020. Get expert insights on CFIUS news and reporting. The proposed rule represents the first substantive update to CFIUS’ mitigation and enforcement provisions since implementation of the Foreign Investment Risk Review CFIUS operates pursuant to section 721 of the Defense Production Act of 1950, as amended (section 721), and as implemented by Executive Order 11858, as amended, and the regulations at chapter VIII of title 31 of the Code of Federal Regulations. These final regulations will enhance CFIUS’s authority to gather information about transactions, mitigate national security risks of transactions, and penalize those that violate CFIUS’s rules or otherwise fail to comply with their The Treasury Department last week asked for public feedback about how it should shape its new fast-track process for certain deals filed with the Committee on Foreign Investment in the U. xzbq8, fwioej, g8jgt1, 6ref, 2ji5g, t3ghxf, ofka1, dzsn, ltu3it, cgpev,