On October 10, 2018, the U.S. Department of the Treasury issued several amendments and temporary regulations expanding the authority of the Committee on Foreign Investment in the United States (CFIUS). The Foreign Investment Risk Review Modernization Act, enacted as part of the John S. McCain National Defense Authorization Act for Fiscal Year 2019, laid the framework for CFIUS’ expanded scope as congressional leaders aimed to address national security concerns within the context of foreign investment activities in the United States that have historically fallen outside of CFIUS’ purview.
- New pilot program effective November 10, 2018, applies to all foreign persons engaging in investment with certain U.S. industries.
- Mandatory declarations now required for certain transactions; risk of civil penalty if ignored.
- Export control compliance is essential to understand if transaction involves any critical, emerging or foundational technology.