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ARTICLE · 28 NOVEMBER 2024

CFIUS Enforcement Powers Expanded Considerably And Penalty Limits Increased Significantly By New Final Rule

Duane Morris LLP
Duane Morris LLP
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The U.S. Department of the Treasury recently issued a final rule that expands the enforcement powers of the Committee on Foreign Investment in the United States (CFIUS)

United StatesGovernment, Public Sector
Geoffrey M. Goodale
Geoffrey M. Goodale
Joel Ephross
Joel Ephross
Hope Krebs
Hope Krebs
Thomas Schmuhl
Thomas Schmuhl
Elizabeth Hodgson
Elizabeth Hodgson
Raul Rangel Miguel
Raul Rangel Miguel
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The U.S. Department of the Treasury recently issued a final rule that expands the enforcement powers of the Committee on Foreign Investment in the United States (CFIUS) and significantly increases the potential financial consequences for noncompliance. The final rule, which enters into effect on December 26, 2024, provides CFIUS with enhanced powers to request information, impose penalties and require timely responses to proposed mitigation terms. For companies engaging in foreign investment transactions, understanding the implications of this final rule is critical to ensuring compliance and mitigating risks.

Background on CFIUS and Its Powers

CFIUS, an interagency committee chaired by the Secretary of Treasury, reviews certain transactions involving foreign investments in U.S. businesses or real estate to assess and mitigate potential national security risks. The jurisdiction of CFIUS was considerably expanded by the Foreign Investment Risk Review Modernization

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Disclaimer: This Alert has been prepared and published for informational purposes only and is not offered, nor should be construed, as legal advice. For more information, please see the firm's full disclaimer.

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