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CFIUS
Is CFIUS reviewing cryptomining facilities owned by Chinese entities?

Is CFIUS reviewing cryptomining facilities owned by Chinese entities?

In case you missed it, the New York Times wrote an interesting piece on the national security implications of Chinese cryptomining facilities in the U.S., particularly near military facilities. This is not the first time the risk has been flagged, and it brings up interesting jurisdictional questions.

CFIUS head says more penalties are coming, as are changes to FIRRMA

CFIUS head says more penalties are coming, as are changes to FIRRMA

Last week, CFIUS head Paul Rosen said that the Committee has issued two civil monetary penalties in 2023, and has several more pending at various stages. He also implied that changes to FIRRMA were coming. “It’s time to refine some of those regulations.” Details, speeches and more inside.

The key takeaways from last week’s  second annual CFIUS conference

The key takeaways from last week’s second annual CFIUS conference

After CFIUS’s first annual conference in 2022, we crowdsourced “key takeaways” from nearly a dozen attendees. This year, we turned to Sidley’s Grigore Alexandru, who previously served as Deputy Director at the DoD’s Office of Foreign Investment Review. His key takeaways are inside.

House Committee to host CFIUS hearing. Agriculture on the docket?

House Committee to host CFIUS hearing. Agriculture on the docket?

The House Financial Services Committee will host a hearing on CFIUS oversight this week. Part of the hearing will be classified, and it looks like several legislative proposals — including one that would put the Agriculture Secretary on CFIUS — may be on the agenda. Details, witnesses, more inside.

CFIUS reviewing fewer deals, taking longer, imposing more mitigation

CFIUS reviewing fewer deals, taking longer, imposing more mitigation

As we noted last week, the Committee published its latest report to Congress. In short: There are fewer transactions clearing in the declaration process, more notices proceeding to investigation, and more mitigation agreements. Details, report, and a downloadable spreadsheet of data inside.

Gallium and CFIUS: Key cases in wake of China’s new export controls

Gallium and CFIUS: Key cases in wake of China’s new export controls

China just announced export restrictions on critical metals used in the manufacturing of semiconductor chips, such as gallium and germanium. So we decided to look at actions CFIUS has taken on related transactions. Our findings? CFIUS has rarely signed off on deals that involve gallium.

CFIUS head says more penalties are coming, as are changes to FIRRMA

Exclusive: We talk to CFIUS head Paul Rosen on his 1st anniversary

Hard to believe, but Paul Rosen just celebrated his one-year anniversary as head of CFIUS. We sat down with Rosen for an exclusive interview to discuss his first year on the job, and covered everything from penalties to guidance. According to Rosen, CFIUS is “always working to improve.”

Latest CFIUS reports from CRS may hint at future Congressional actions

Latest CFIUS reports from CRS may hint at future Congressional actions

The Congressional Research Service has published its latest briefings on CFIUS for elected officials. The two-page reports are generally uncontroversial summaries of recent developments, but they do include “considerations for Congress,” which may act as an early-warning system on future actions.

Eight military bases to be added to CFIUS list of covered installations

Eight military bases to be added to CFIUS list of covered installations

As most readers know, CFIUS has jurisdiction over certain real estate transactions near some specific military installations. But the list of locations, which was created by the DoD, did not include sites like Grand Forks Air Force Base. Well, it looks like that’s about to change. Details and proposal are inside.

CFIUS may have lacked jurisdiction in battery deal with China’s Gotion

CFIUS may have lacked jurisdiction in battery deal with China’s Gotion

According to media reports, China-based battery firm Gotion has been given the go-ahead by CFIUS to build a battery factory in the southern U.S. But don’t assume that CFIUS reviewed the deal and found no national security concerns: It may have been a “greenfield” deal. Details, insights inside.

CFIUS has issued first enforcement penalties under its new guidelines

CFIUS has issued first enforcement penalties under its new guidelines

At an industry conference last week, Assistant Secretary for Investment Security Paul Rosen said that final penalty determinations have already been issued under the new Enforcement Guidelines. The penalties have not yet been publicly reported. Details and other crowdsourced insights are inside.

The UK and New Zealand to remain excepted foreign states. Big whoop?

The UK and New Zealand to remain excepted foreign states. Big whoop?

CFIUS has determined that the UK and New Zealand will remain “excepted foreign states.” That means that qualifying investors from all “Five Eyes” countries will continue to be excepted from CFIUS review of certain types of transactions. Details, and the answer to the question “so what?” are inside.

CFIUS is meeting with third-party compliance providers about NSAs

CFIUS is meeting with third-party compliance providers about NSAs

The Office of Investment Security at the Treasury Department is holding meetings with third-party compliance providers to discuss “current and future CFIUS mitigation agreements.” Input from some providers has already been solicited. Details, contacts, the meaning, and more are inside.

CFIUS says it lacks jurisdiction in case involving Fufeng in N. Dakota

CFIUS says it lacks jurisdiction in case involving Fufeng in N. Dakota

Okay, it’s official. Despite the urging — and now criticism — of Congressional leaders, CFIUS has decided that Fufeng USA’s purchase of more than 300 acres of land in Grand Forks, North Dakota, is not a covered transaction. Details, reactions, and a (rare) copy of the CFIUS correspondence is inside.

CFIUS seeking more feedback on the use of its mandatory portal

CFIUS seeking more feedback on the use of its mandatory portal

How can CFIUS improve its portal? That’s basically the question Treasury has posed in a recent “request for comment.” The notice, which estimates the time it takes to use the portal, seeks feedback on ways to improve the process and minimize the burden. Details and feedback instructions inside.

FCC Commissioner says that CFIUS should take action to ban TikTok

FCC Commissioner says that CFIUS should take action to ban TikTok

Brendan Carr, one of the five commissioners at the Federal Communications Commission, told the media that CFIUS should take action to stop U.S. data on TikTok from flowing back to China. “I don’t believe there is a path forward for anything other than a ban,” he said. Details and context inside.

Is CFIUS administratively “off the rails?” Concerns, pushback inside

Is CFIUS administratively “off the rails?” Concerns, pushback inside

For the last three months, Foreign Investment Watch has been collecting data from corporations, lawyers and former regulators regarding frustrations with speed, process, and quality control at CFIUS. Inside, we outline their six key issues, and offer pushback and counter-arguments as well.

CFIUS (finally!) publishes some enforcement and penalty guidelines

CFIUS (finally!) publishes some enforcement and penalty guidelines

In one of Paul Rosen’s first acts as head of CFIUS, the Treasury Department has issued formal enforcement and penalty guidelines. The guidance, promised more than two years ago, includes an interesting list of factors that CFIUS considers when determining penalties. Details and guidance inside.

Experts: CFIUS should be a federal Commission on par with SEC, FCC

Experts: CFIUS should be a federal Commission on par with SEC, FCC

Two partners at the law firm of Morgan Lewis have crafted an intriguing proposal: That national security reviews of foreign investments merit a full-on Commission, not an ad-hoc Committee. “CFIUS is ready for its next evolutionary step,” they argue. Details and the actual proposal are inside.