On October 20, the Committee on Foreign Investment in the United States (CFIUS) released new, non-binding Enforcement and Penalty Guidelines (Guidelines). The Guidelines follow upon last month’s Executive Order linking CFIUS reviews directly to the president’s national security prerogatives. In particular, the Guidelines detail the following:
- Categories of conduct that constitute violations.
- Sources of information CFIUS relies upon to determine whether a violation has occurred.
- The process for developing and imposing penalties.
- Aggravating and mitigating factors that CFIUS evaluates when deciding whether to impose a penalty.
Continue Reading New CFIUS Guidelines Reflect Shift in Enforcement Posture
I commented about the impact the government shutdown is having on deals that require review and approval by the Committee on Foreign investment in the United States (CFIUS). CFIUS is the interagency committee authorized to review transactions involving foreign investment in the United States to determine the effect of such transactions on national security.
I provided insight on Tesla Inc.’s recent announcement of potential Saudi Arabian funding to take the company private and how this move could draw scrutiny from the Committee on Foreign Investment in the United States (CFIUS). “The big question is whether this technology is really sensitive enough and whether if acquired by a non-U.S. company it could have some kind of negative impact on U.S. national security,” I explained. I noted that this could be possible since the Trump administration has announced possible tariffs on auto imports for national security reasons.
Bass, Berry & Sims attorney Thad McBride provided insight for a Bloomberg Law article on how recently enacted reforms related to the Committee on Foreign Investment in the United States (CFIUS) will spur reviews of more transactions between U.S. companies and foreign investors.
In a Law360 article published on August 7, Bass, Berry & Sims attorney Thad McBride provided insight on how the Foreign Risk Review Modernization Act (FIRRMA) legislation included in this year’s National Defense Authorization Act (NDAA) would alter the Committee on Foreign Investment in the United States (CFIUS) by broadening its authority when reviewing foreign investments in the U.S.