We recently authored an article for Business Law Today offering insight into a proposed amendment to the operations of the Committee on Foreign Investment in the United States (CFIUS), the interagency committee that reviews foreign investment in the United States for potential national security implications.

The proposed rule change would involve a “more robust CFIUS,” including giving the committee authority to increase penalty amounts and to request information from parties involved only indirectly in transactions under review.

“In an environment in which the scope of the Committee’s review and enforcement efforts is expanding, nearly any transaction involving a foreign investor or acquirer should be reviewed for CFIUS implications,” we explain in the article. “And in a transaction involving legitimate national security issues, the parties should proactively consider potential mitigation measures in light of a truncated timeline for reviewing and responding to proposed measures.”

While the proposed regulatory changes will not go into effect until a Final Rule is issued, the authors recommended that U.S. sellers and foreign investors begin to prepare now.

The full article, “Treasury to Amend CFIUS Regulations: What Foreign Buyers and Investors Need to Know,” was published by the American Bar Association’s (ABA) Business Law Today on August 26 and is available online.