New Rules For Mandatory CFIUS Filings Take Effect On October 15

Parties to investment transactions involving U.S. businesses engaged in "critical technologies" activities will soon be subject to modified requirements for mandatory filings to the Committee on Foreign Investment in the United States (CFIUS). Following proposed rules issued in May 2020, the Department of the Treasury ("Treasury") released a final rule that will take effect on October 15, 2020. As explained in our prior client alert, the new rule—which focuses on U.S. regulatory authorizations (generally, export licenses or approvals) applicable to the foreign investor and its owners—highlights the pivotal role that U.S. export controls and related regimes play in CFIUS's review process, and in defining the technologies of greatest import to U.S. national security.