Foreign Investment

The U.S. Department of the Treasury today issued proposed regulations to comprehensively implement the Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA) and to better address national security concerns arising from certain investments and real estate transactions. FIRRMA and the proposed regulations strengthen and modernize the Committee on Foreign Investment in the United States (CFIUS), an interagency committee authorized to review certain transactions involving foreign investment in the United to determine the effect of such transactions on the national security of the United States.

“The United States welcomes and encourages investment in our country and our workforce,” said Treasury Secretary Steven T. Mnuchin. “Today’s proposed regulations will provide clarity and certainty to investors regarding CFIUS’s enhanced authorities to address national security risks that arise from certain foreign investments, and continue modernizing the CFIUS process.”

Enacted with overwhelming bipartisan support in August 2018, FIRRMA broadens the authorities of CFIUS to better address national security concerns arising from some types of investments and transactions that were previously outside of its jurisdiction. It also modernizes CFIUS’s processes to facilitate more timely and effective reviews of transactions.

Among other things, the proposed regulations implement CFIUS’s new jurisdiction over certain non-controlling investments into certain U.S. businesses involved in critical technology, critical infrastructure, or sensitive personal data. They also implement CFIUS’s new jurisdiction over certain real estate transactions involving foreign persons.

Interested parties are invited to submit written comments on the proposed regulations through October 17, 2019.

As required by FIRRMA, a final version of the rule will take effect no later than February 13, 2020.

Full text of the proposed regulations, and additional related resources, can be found on the Department of the Treasury’s website.

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