CFIUS Enforcement And Penalty Guidelines Just Issued

The Treasury Department just released its "first-ever" CFIUS Enforcement and Penalty Guidelines – yet another strong indicator of how the U.S. government is enhancing its scrutiny of foreign investments into the United States.

Among other matters these Guidelines explain how CFIUS will assess violations related to

• failure to submit a mandatory declaration or notice with CFIUS;
• non-compliance with CFIUS mitigation agreements; and
• material misstatements, omissions, or false certifications filed with CFIUS (including information provided during informal consultations).

The Guidelines outline the penalty process, which allows transaction parties to submit a petition for reconsideration. Also, the Guidelines contain a "non-exhaustive" laundry list of aggravating and mitigating factors that CFIUS will consider when determining whether to impose penalties and their amounts.