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 July 31, 2023, the Committee on Foreign Investment in the United States (CFIUS) released its Annual Report to Congress for Calendar Year 2022.  CFIUS is the inter-agency body charged with conducting national security reviews for certain foreign investments in the United States.  The CFIUS process is generally confidential, but the annual report provides aggregate data on certain CFIUS activities and offers the private sector insight into current Committee trends.Continue Reading Key Takeaways from the 2022 CFIUS Annual Report