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ARTICLE · 08 NOVEMBER 2018

How Foreign-Controlled Companies Can Hold U.S. Security Clearances

U.S. Government Facility Security Clearances ("FCLs") may not be issued to U.S. companies under foreign ownership, control or influence ("FOCI") unless adequate safeguards are in place to protect U.S.

United StatesGovernment, Public Sector

U.S. Government Facility Security Clearances (“FCLs”) may not be issued to U.S. companies under foreign ownership, control or influence (“FOCI”) unless adequate safeguards are in place to protect U.S. national security.  The National Industrial Security Program Operating Manual (“NISPOM”) provides guidance for determining whether U.S. companies are under FOCI and implements U.S. Government policy for granting or continuing FCLs for U.S. companies operating under FOCI.

Consistent with U.S. policy, the NISPOM recognizes that foreign investment in the defense industrial base, when consistent with national security interests, is also, more broadly, in the national interest of the United States.  The National Industrial Security Program is designed, in part, to safeguard U.S. Government contractors against improper foreign influence or control.

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