On April 23, the U.S. Treasury Department published long-awaited proposed regulations that clarify the regulatory-review process for transactions where a foreign person acquires control of U.S. national security or critical infrastructure assets. The proposed regulations keep CFIUS filings voluntary and retain the basic framework of reviews, but provide key definitions and clarify the information required in filings, exemptions, and penalties.
The proposed regulations would implement changes enacted by the Foreign Investment and National Security Act of 2007 (FINSA), which became effective on October 24, 2007. Congress passed FINSA to codify the structure and processes of the Committee on Foreign Investment in the United States (CFIUS), a multi-agency committee headed by the Treasury Department that reviews foreign acquisitions of U.S. assets that may raise national security or critical infrastructure issues.
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