The Department of the Treasury has issued a notice of proposed rulemaking that seeks to bolster the ability of the Committee on Foreign Investment in the United States, or CFIUS, to perform its national security mission.
CFIUS possesses the authority to review certain real estate transactions in the U.S. involving foreign persons as well as certain foreign investment transactions into U.S. businesses to determine whether they have an impact on national security, the Treasury Department said Thursday.
CFIUS also possesses authorities to enforce compliance with its statute and regulations. The proposed rules seek to enhance these authorities.
The proposals include expanding the kinds of information that can be required regarding transactions not filed with CFIUS; increasing the civil monetary penalty that can be imposed for violations of obligations under CFIUS statute and regulations; and expanding the coverage of CFIUS’ subpoena authority.
The Treasury Department is calling on the public to comment on the NPRM. Comments will be accepted within 30 days following the NPRM’s posting on the Federal Register.