CFIUS Developments Counsel Caution For In-Bound U.S. Investment

With an eye towards preserving and expanding the gatekeeper role in national security, the Committee on Foreign Investment in the United States (CFIUS) has issued proposed rules to strengthen enforcement.

On April 11, 2024, the U.S. Department of the Treasury, as Chair of CFIUS, announced proposed rules and accepted comment until May 15, 2024, 30 days following publication in the Federal Register on April 15, 2024. The proposed rules strengthen CFIUS regulations and enforcement tools in the following ways.

First, the proposed rules would expand the information that CFIUS may request from parties to non-notified transactions—transactions that the parties did not voluntarily report to CFIUS. Under the proposed rules, CFIUS may request information related to "national security considerations" and "the criteria for a mandatory declaration." This expands beyond current regulation, which only contemplates requests to parties to non-notified transactions for