Treasury Finalizes CFIUS Rules On Enforcement And Mitigation

Introduction

On November 18, 2024, the U.S. Department of the Treasury ("Treasury") issued a final rule governing the Committee on Foreign Investment in the United States ("CFIUS" or the "Committee") that serves as the first substantive update to the monitoring and enforcement provisions of the CFIUS regulations since the enactment and implementation of the Foreign Investment Risk Review Modernization Act of 2018 ("FIRRMA"). The final rule is largely consistent with the earlier proposed rule issued in April of this year. Notably, the new rules, as finalized, (i) allow compression of the timeline for parties to negotiate mitigation agreements; (ii) expand the Committee's ability to investigate compliance and demand a broader scope of information from parties to the transaction and third parties not directly involved in a transaction; and (iii) increase the range of penalties for certain violations.