CFIUS Extends Time To Become "Excepted Foreign State" And "Excepted Real Estate Foreign State"

The Committee on Foreign Investment in the United States ("CFIUS") extended by one year the effective date for one of the criteria under the definitions of "Excepted Foreign State" and "Excepted Real Estate Foreign State." This final rule extends the effectiveness from February 13, 2022, until February 13, 2023, providing countries with additional time to qualify as excepted foreign states.

Under the rule, both terms are defined using a two-part conjunctive test. The time extension applies to the second criterion of this test, which is composed of the following determinations for both definitions:

1. Under 31 C.F.R.  800.1001(a), which pertains to excepted foreign states, a foreign state has "established and is effectively utilizing a robust process to analyze foreign investments for national security risks and to facilitate coordination with the United States on matters relating to investment security."