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ARTICLE · 22 MARCH 2020

CFIUS Introduces Filing Fees

In a sweeping change, the Committee on Foreign Investment in the United States will soon require parties to transactions to pay filing fees in connection with certain CFIUS filings.

United StatesGovernment, Public Sector

In a sweeping change, the Committee on Foreign Investment in the United States will soon require parties to transactions to pay filing fees in connection with certain CFIUS filings. Under the proposed rule published in the Federal Register on March 9, 2020, CFIUS would implement section 1723 of the Foreign Investment Risk Review Modernization Act of 2018, which amends section 721 of the Defense Production Act of 1950 to allow CFIUS to collect fees in connection with certain CFIUS filings.

CFIUS is an interagency committee of cabinet-level agencies and departments including the Departments of Defense, Justice, Homeland Security and State, and other federal offices with intelligence and national security responsibilities. CFIUS has authority to review a broad range of foreign investment transactions in US businesses and can block, modify or even unwind transactions where it sees security risks.

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