Treasury Releases Final Regulations to Reform National Security Reviews for Certain Foreign Investments and Other Transactions in the United States


On January 13, the U.S. Department of the Treasury issued two final regulations that aim to modernize the investment review process to address national security issues posed by certain foreign investments and real estate transactions. The regulations implement the Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA) and broaden the authority of the CFIUS to review even non-controlling foreign investments into U.S. businesses that are involved in critical technology, infrastructure, or personal data. Release.

Treasury Releases Proposed Regulations for CFIUS Reforms under FIRMMA


On September 17, the U.S. Department of the Treasury proposed regulations to implement provisions of the Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA). Among other things, the proposed rules would provide the Committee on Foreign Investments in the United States (CFIUS) the ability to review non-controlling investments involving critical infrastructure and sensitive data, mandate certain filings by foreign government-affiliated investors, and codify certain exceptions and exclusions to CFIUS’s jurisdiction. A separate proposal would expand CFIUS’s jurisdiction to certain real estate transactions. Comments on each of the proposed rulemakings are due by October 17. Release. NPR (General). NPR (Real Estate).

Treasury and FDIC Activity

The Foreign Investment and National Security Act of 2007  (“FINSA”) was enacted to enlarge the powers of the Committee on Foreign Investment in the United States (“CFIUS”) in the wake of the Dubai Ports World controversy related to port management and U.S. national security. The regulations implementing FINSA will become effective on December 22, 2008, and will expand the type of transactions involving foreign buyers which come within the purview of CFIUS. On December 2, Treasury, as chair of CFIUS, issued guidance with respect to transactions involving foreign investors in which national security interests may be implicated.  Orrick Client Alert.  Treasury Guidance Summary. Final FINSA Regs.

On December 8, the FDIC announced requirements regarding debt instrument reporting in respect of the Temporary Liquidity Guarantee Program and outlined procedures for the collection of assessments on guaranteed debt. The FDIC also recently updated the FAQs with additional details regarding the debt guarantee. Debt Instrument Reporting. TLGP FAQs.