In an article for Law360, I summarized the U.S. Department of Treasury’s new outbound investment regulations and outlined key compliance considerations for U.S. investors. I explained that the rule “aims to prevent U.S. capital and less tangible benefits like managerial services from accelerating the development of certain technologies that could harm U.S. security interests.”

As I noted, the “final rule creates a wholly new investment screening mechanism that imposes significant obligations on companies and individuals alike.” I also noted that while the compliance landscape is sure to evolve, U.S. investors should be aware even at this juncture of a few key compliance considerations, including:

• The broad definition of a U.S. person.
• The potential for significant penalties.
• A heightened notification process.

I concluded that “[w]hile for now this novel approach to outbound investment regulation is relatively limited, we expect the scope of covered countries, parties, industries and technologies will continue to grow.”

The full article, “Overseas Investment Rule Calls For Compliance Caution,” was published by Law360 on January 28 and is available online (subscription required).