Treasury Department Issues Final Rule To Enhance CFIUS' Monitoring Authorities And Sharpen Its Enforcement Powers

On November 26, 2024, the U.S. Department of the Treasury (Treasury) published a final rule (Final Rule) amending certain provisions of the regulations governing proceedings of the Committee on Foreign Investment in the United States (CFIUS or the Committee). The Final Rule, which will go into effect on December 26, 2024, enhances and sharpens CFIUS' monitoring authorities and enforcement powers. The Final Rule closely (but not entirely) mirrors the proposed rule issued by Treasury on April 15, 2024.

The key elements of the Final Rule are new procedures through which CFIUS may (1) request information from parties to "non-notified transactions," require a response to such requests, and subpoena the information, if appropriate; (2) prescribe timelines for parties to respond to risk-mitigation proposals, including in as little as three days; and (3) penalize violations and noncompliance, including by imposing penalties more severe than are authorized under the current