The Foreign Investment Risk Review Modernization Act (FIRRMA)
gave the Committee on Foreign Investment in the United States
(CFIUS) enhanced powers in August 2018. Some reviews of foreign
investments were mandated – especially investments in
sensitive businesses by foreign governments and
government-controlled entities. For the first time, FIRRMA
expressly authorized review of real estate transactions and
non-controlling investments in sensitive industries.
At the same time, however, FIRRMA gave CFIUS authority to exempt
trusted foreign investors not only from mandatory filings, but also
from reviews of real estate transactions and non-controlling
investments. To secure exemption, however, these “excepted
investors” (among other things) had to be organized in, or
otherwise closely tied to “excepted foreign
states.”
