It has been a busy few weeks for the Committee on Foreign Investment in the United States (“CFIUS” or the “Committee”), an interagency committee chaired by the U.S. Department of the Treasury (“Treasury”).
The Committee...more
Through the Committee on Foreign Investment in the United States (“CFIUS”), the U.S. Government has long had the authority to review inbound investment. The Final Rule formalizes the U.S. Government’s authority to regulate...more
11/1/2024
/ Biden Administration ,
CFIUS ,
Covered Transactions ,
Final Rules ,
Foreign Investment ,
Foreign Persons ,
Investment Funds ,
Investors ,
Lawful Permanent Residents ,
Limited Partnerships ,
National Security ,
Outbound Transactions ,
Popular ,
PRC ,
U.S. Treasury
The U.S. Department of Commerce’s Bureau of Industry and Security (“BIS”) published a final rule (the “Rule”) regarding changes to the provisions of the Export Administration Regulations (the “EAR”) governing voluntary...more
After over a year of preview, the Committee on Foreign Investment in the United States (“CFIUS” or the “Committee”) has finally published information on its most recent enforcement actions.
The actions were announced on...more
9/4/2024
/ Bureau of Industry and Security (BIS) ,
CFIUS ,
Compliance ,
Corporate Counsel ,
Data Security ,
Divestment ,
Enforcement ,
Failure to Comply ,
Foreign Investment ,
National Security ,
National Security Agency (NSA) ,
Penalties ,
Transparency
The U.S. Department of the Treasury’s Committee on Foreign Investment in the United States (“CFIUS” or the “Committee”) has published its Annual Report to Congress for 2023 (the “Annual Report”), which provides important data...more
8/8/2024
/ Acquisitions ,
Annual Reports ,
CFIUS ,
China ,
Compliance ,
Declaration ,
Enforcement Actions ,
Foreign Investment ,
Investigations ,
Investment ,
Investors ,
Mergers ,
Mitigation ,
National Security ,
Notice Requirements ,
Proposed Rules ,
U.S. Treasury
The U.S. Department of the Treasury (“Treasury”), the Chair of the Committee on Foreign Investment in the United States (“CFIUS” or the “Committee”), has released a Notice of Proposed Rulemaking (“NPRM”) to expand CFIUS’...more
Almost a year after President Biden signed an Executive Order to establish a U.S. outbound investment regime, the U.S. Department of the Treasury has published a Notice of Proposed Rulemaking (“NPRM”) on U.S. outbound...more
6/27/2024
/ Acquisitions ,
Advanced Notice of Proposed Rulemaking (ANPRM) ,
Biden Administration ,
Capital Investments ,
CFIUS ,
Covered Transactions ,
Executive Orders ,
Foreign Entities ,
Foreign Investment ,
Investment ,
Investment Advisers Act of 1940 ,
Investment Company Act of 1940 ,
Jurisdiction ,
National Security ,
Notice of Proposed Rulemaking (NOPR) ,
Notification Requirements ,
Parent Corporation ,
Popular ,
Securities Exchange Act of 1934 ,
Semiconductors ,
Technology Sector ,
U.S. Treasury
On the eve of the 2024 Group of Seven (G7) Leaders’ Summit, the United States imposed new sanctions and export control measures against Russia further targeting sanctions evaders and, for the first time, the Russian...more
6/19/2024
/ Asset Seizure ,
Bureau of Industry and Security (BIS) ,
Economic Sanctions ,
EU ,
Export Administration Regulations (EAR) ,
Export Controls ,
Financial Services Industry ,
Foreign Financial Institutions (FFI) ,
Information Technology ,
Infrastructure ,
International Securities Market (ISM) ,
Office of Foreign Assets Control (OFAC) ,
Popular ,
Russia ,
SDN List ,
Software ,
UK
The Biden Administration recently issued a historic Executive Order (the “Order,” available here) unwinding the purchase by an entity backed by Chinese nationals of U.S. real estate in close proximity to a strategic missile...more
5/22/2024
/ Acquisitions ,
Biden Administration ,
CFIUS ,
China ,
Cryptocurrency ,
Executive Orders ,
FIRRMA ,
Foreign Investment ,
Infrastructure ,
National Security ,
Proposed Rules ,
Real Estate Investments
The U.S. Department of Treasury (“Treasury”), which is Chair of the Committee on Foreign Investment in the United States (“CFIUS” or the “Committee”), released a Notice of Proposed Rulemaking on April 11, 2024 (“NPRM”) meant...more
On the second anniversary of the start of the war in Ukraine and in response to the death of activist Aleksey Navalny in a Russian prison, the United States, European Union, and United Kingdom, along with Australia and...more
3/4/2024
/ Asset Freeze ,
Australia ,
Bureau of Industry and Security (BIS) ,
Canada ,
China ,
Economic Sanctions ,
Energy Sector ,
EU ,
Export Controls ,
Financial Services Industry ,
India ,
Mining ,
Office of Foreign Assets Control (OFAC) ,
Russia ,
SDN List ,
Transportation Industry ,
Turkey ,
UK ,
Ukraine ,
United Arab Emirates (UAE) ,
US State Departments
The U.S. Department of Defense (“DoD”) updated its list of “Chinese military companies” operating “directly or indirectly” in the United States on January 31, 2024, adding 17 new entities and removing three. The list was...more
President Biden recently signed into law the Foreign Extortion Prevention Act (“FEPA”), enabling federal prosecution of non-U.S. government officials who solicit or receive bribes.
FEPA complements the Foreign Corrupt...more
1/23/2024
/ Anti-Corruption ,
Anti-Money Laundering ,
Biden Administration ,
Bribery ,
Department of Justice (DOJ) ,
Economic Sanctions ,
FEPA ,
Foreign Corrupt Practices Act (FCPA) ,
Foreign Official ,
Securities Exchange Act of 1934 ,
Wire Fraud
Congress continues to put pressure on the Committee on Foreign Investment in the United States (“CFIUS” or the “Committee”), increasingly informing the context in which the Committee conducts its work.
Last week, for...more
12/22/2023
/ Acquisitions ,
CFIUS ,
China ,
Cross-Border ,
Department of Justice (DOJ) ,
FIRRMA ,
Foreign Investment ,
Investigations ,
Investors ,
Jurisdiction ,
National Security ,
U.S. Commerce Department ,
U.S. Treasury ,
Whistleblowers
President Biden’s recent Executive Order on Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence:
Establishes a federal government-wide effort to mitigate risks of improper AI development and use....more
12/21/2023
/ Artificial Intelligence ,
Biden Administration ,
Consumer Protection Laws ,
Cybersecurity ,
Data Privacy ,
Executive Orders ,
Financial Institutions ,
Financial Services Industry ,
Machine Learning ,
National Security ,
New Guidance ,
NIST ,
Personal Data ,
Reporting Requirements ,
Risk Mitigation ,
Securities and Exchange Commission (SEC)
On September 25, 2023, the U.S. Department of Commerce (“Commerce”) issued the final rule (the “Final Rule”) regarding the use of funds offered under the CHIPS and Science Act (the “CHIPS Act”).
The Final Rule...more
10/11/2023
/ Clawbacks ,
Export Administration Regulations (EAR) ,
Export Controls ,
Final Rules ,
Importers ,
National Security ,
NIST ,
Risk Management ,
Risk Mitigation ,
Semiconductors ,
U.S. Commerce Department
On September 14, 2023, the U.S. Department of Treasury (“Treasury”) hosted its Second Annual CFIUS Conference (the “Conference”) regarding the Committee on Foreign Investment in the United States (“CFIUS” or the...more
In brief. On August 9, 2023, President Biden signed a highly anticipated Executive Order (the “Outbound E.O.”) to establish a U.S. outbound investment regime. The U.S. Department of Treasury (“Treasury”) concurrently...more
8/14/2023
/ Advanced Notice of Proposed Rulemaking (ANPRM) ,
Artificial Intelligence ,
Asset Management ,
Biden Administration ,
CFIUS ,
China ,
Covered Transactions ,
Executive Orders ,
FIRRMA ,
Foreign Investment ,
National Security ,
Penalties ,
Popular ,
Securities ,
Semiconductors
On July 31, 2023, the U.S. Department of the Treasury (“Treasury”) published the Committee on Foreign Investment in the United States’ (“CFIUS” or the “Committee”) Annual Report to Congress on key activities, including...more
The U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) recently announced two settlements that underscore OFAC’s continued emphasis on companies developing and implementing effective, risk-based...more
The Biden Administration appears to be moving forward with plans to establish a mechanism through Executive Order to review outbound investments from the United States to protect U.S. national security.
Recent reporting...more
5/12/2023
/ Biden Administration ,
CFIUS ,
China ,
Executive Orders ,
FIRRMA ,
G7 ,
Investment ,
Jurisdictional Thresholds ,
National Security ,
Outbound Transactions ,
Russia ,
Supply Chain ,
U.S. Commerce Department ,
U.S. Treasury
Speaking recently at a conference concerning the Committee on Foreign Investment in the United States (“CFIUS” or the Committee”) in Washington, D.C., senior CFIUS officials from the Department of Defense (“DOD”), the...more
5/10/2023
/ Biden Administration ,
CFIUS ,
Cybersecurity ,
Department of Homeland Security (DHS) ,
Department of Justice (DOJ) ,
Dodd-Frank ,
Enforcement ,
Executive Orders ,
FIRRMA ,
New Regulations ,
Penalties ,
U.S. Treasury
Key Takeaways The CHIPS Program Office of the U.S. Department of Commerce's National Institute of Standards and Technology (“NIST”) proposed a rule that describes the expected procedure for reviewing outbound investments...more
The Biden Administration made clear in its recently released National Security Strategy (the “National Security Strategy”) that it intends to take new and aggressive approaches to protect U.S. national security.
The U.S....more
12/7/2022
/ Biden Administration ,
Bureau of Industry and Security (BIS) ,
CFIUS ,
China ,
Department of Defense (DOD) ,
International Trade ,
Investment ,
National Security ,
ODNI ,
Semiconductors ,
Trade Policy ,
U.S. Commerce Department
Background CFIUS is an interagency committee, principally comprising of nine members and chaired by the Secretary of the Treasury, which has broad powers to review foreign investments in and acquisitions of U.S. businesses to...more