On April 15, 2024, the U.S. Treasury Department (Treasury), as the Chair of the Committee on Foreign Investment in the United States (CFIUS or the Committee), published a notice of proposed rulemaking (NPRM) “to enhance certain CFIUS procedures and sharpen its penalty and enforcement authorities.”  In particular, the proposed new measures would expand the authority of CFIUS to gather information related to both notified and non-notified transactions, impose more significant civil penalties on transaction parties, and alter procedures related to the negotiation of mitigation agreements.  The proposed changes to CFIUS’s regulations are meant “to more effectively deter violations, promote compliance, and swiftly address national security risks in connection with CFIUS reviews,” Assistant Secretary for Investment Security Paul Rosen said in a statement on Thursday.  This represents the first significant update to the CFIUS regulations since the enactment and implementation of the Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA), which significantly expanded the scope of CFIUS’s jurisdiction. Continue Reading CFIUS Proposes Important Changes to Foreign Investment Rules with Focus on Enforcement

On May 18, 2021, the US Treasury Department’s Office of Foreign Assets Control (OFAC) issued an updated general license under Executive Order (EO) 13959 authorizing US persons to transact in publicly traded securities of entities whose names “closely match” the name of any company previously identified as a Communist Chinese military company (CCMC). The general license (now called General License No. 1B), which was due to expire on May 27, 2021, now expires on June 11, 2021.

For the time being, the restrictions under EO 13959 apply only to entities whose names appear on OFAC’s Non-SDN CCMC List as well as seven entities who are yet to be formally added to OFAC’s Non-SDN CCMC List but were identified by the Department of Defense on January 14, 2021.Continue Reading OFAC Extends General License for “Close Name Matches” under Executive Order 13959 as Biden Administration Reviews Communist Chinese Military Company Sanctions