CFIUS Publishes New Proposed Regulations

The US Department of the Treasury recently published for public comment two proposed regulations that will expand the jurisdiction of the Committee on Foreign Investment in the United States (CFIUS) and make substantive changes to the CFIUS process.¹ These proposals are the culmination of a major effort authorized by the Foreign Investment Risk Review Modernization Act (FIRRMA)² to increase scrutiny of foreign investment aimed at economic sectors perceived to be particularly important for US security (i.e., companies associated with critical technologies, US infrastructure and large amounts of personal data). All companies that are involved in cross-border transactions through capital raising, M&A activity or investment funds will be potentially affected by the new regulations, which stand to make CFIUS issues more complex for the foreseeable future.