Pursuant to the Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA), the Committee on Foreign Investment in the United States (CFIUS) established the concept of “excepted foreign state[s],” defined as those states with compliance laws, orders and regulations similar to those of the United States concerning foreign investments assessed for national security purposes. See
CFIUS Determines It Has No Jurisdiction Over Proposed Chinese-Owned Real Estate in North Dakota
- Real estate projects may be subject to CFIUS national security review if close to sensitive locations.
- Proactive planning can mitigate transaction delays.
- Security concerns may be broader than CFIUS regulatory issues and merit multi-tiered government and public outreach.
The Committee on Foreign Investment in the United States (CFIUS) recently reviewed a proposed real…
Treasury Department Releases CFIUS Enforcement and Penalty Guidelines
- The Treasury Department recently released guidelines specifying conduct that may be considered a violation of CFIUS regulations.
- The guidelines provide information about how CFIUS gathers information and the formal penalty process.
- They also indicate factors that CFIUS may consider in making an enforcement determination, including aggravating and mitigating factors.
On September 15, 2022,…
Biden Issues Executive Order to Focus the Consideration of National Security Factors in the CFIUS Review Process
- The Executive Order does not change the review process or legal jurisdiction of CFIUS.
- The Executive Order revises the national security factors for CFIUS to include in its foreign investment review process.
- The Office of Science and Technology Policy is tasked with publishing lists of technology sectors it assesses are fundamental to U.S.
Treasury Releases Annual CFIUS Report
On August 2, 2022, the Treasury Department, as the lead agency of the Committee on Foreign Investment in the United States (CFIUS), released a public version of its annual report to Congress regarding foreign direct investment in the United States. Assistant Secretary for Investment Security Paul Rosen stated, “This year’s Annual Report demonstrates that CFIUS…
White House Releases Updated Critical and Emerging Technologies List
The Executive Office of the President, via the National Science and Technology Council, has released an updated list of advanced technologies that are potentially significant to U.S. national security. This list updates and revises the initial critical technologies list identified in the October 2020 report, “National Strategy for Critical and Emerging Technologies.” See Update of…
CFIUS Confirms Australia and Canada as “Excepted Foreign States” and Extends Deadline to February 23, 2023 for UK and New Zealand Determination
On January 5, 2022, the multi-agency Committee on Foreign Investment in the United States (CFIUS) announced its determination that two countries – Australia and Canada – “have made significant progress toward establishing and effectively utilizing a robust process to analyze foreign investments for national security risks and to facilitate coordination with the United States on…
CFIUS Releases 2020 Annual Report on Foreign Investment in the United States
The Committee on Foreign Investment in the United States (CFIUS or the “Committee”), an inter-agency committee headed by the Department of the Treasury, has released its 2020 Annual Report to Congress (Report). CFIUS is authorized to review transactions that could result in the control of U.S. businesses by foreign persons or companies, as well as…
New CFIUS Critical Technology Mandatory Filing Requirements Take Effect October 15
Effective October 15, 2020, the Department of the Treasury’s September 15 final rule (“Rule”) will modify certain regulations of the Committee on Foreign Investment in the United States (CFIUS) pursuant to the Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA). In a previous blog post, we noted that the Rule would change the…
Further TikTok Developments: Commerce Identifies and Prohibits Certain Transactions Effective September 27
On September 24, 2020, the U.S. Department of Commerce published a Federal Register notice listing prohibited transactions with ByteDance Ltd. and its subsidiaries including TikTok, Inc., pursuant to President Trump’s August 6, 2020 Executive Order declaring TikTok a national security threat and directing Commerce to define the scope of prohibited “transactions” with TikTok by September…