CFIUS head Paul Rosen disclosed over a year ago that penalties had been issued under the new enforcement guidelines, but the Committee has been relatively silent on details. Until now. Last week, CFIUS provided extensive details on penalties, and unveiled how “DONT” letters are being used.
The Corporate Transparency Act, which requires certain companies to disclose beneficial ownership information, became effective back in January. Experts now say the Act could theoretically help CFIUS in its ongoing search for non-notified transactions. Details, context and insights are inside.
As we mentioned in last week’s edition, the Treasury Department has proposed a new rule that would expand the number of military installations over which CFIUS has jurisdiction. This is the second expansion of the real estate provisions of FIRRMA in the last year, and it won’t be the last. Details inside.
A conservative activist group known for filing Freedom of Information Act requests and lawsuits has filed a FOIA lawsuit against Treasury seeking communications between CFIUS and the Agriculture Department. Details, insights, a list of other FOIA requests sent to CFIUS, and the lawsuit are inside.
The government contracting unit of Accenture has been awarded a $20 million contract to work on the CFIUS case management system and other “international affairs projects,” including the outbound investment program. The contract comes right on the heels of another we recently tracked.
Last week, T-Mobile announced that it would acquire almost all of UScellular, the fourth-largest wireless carrier in the U.S. The transaction raises a number of interesting national security questions, particularly related to a government-focused business unit that serves federal agencies.
President Biden has issued an order prohibiting the purchase of a cryptomining facility that was located within one mile of Francis E. Warren Air Force Base in Wyoming. According to the order, the buyer, MineOne, is “ultimately majority owned” by Chinese nationals. Details are inside.
Last week, the GAO published a 49-page report that evaluated how CFIUS and members agencies monitor nearly 230 active mitigation agreements and enforce compliance. Apparently, there’s some work to be done. Details, current shortcomings, and recommendations are summarized inside.
The Treasury Department has proposed a rule that would “enhance certain CFIUS procedures” and sharpen its penalty and enforcement authorities. The proposed changes reflect the Committee’s evolution and increased focus on monitoring, compliance, and enforcement. Details are inside.
According to some readers of Foreign Investment Watch, CFIUS has imposed National Security Agreements by order on a non-interim basis, and has done so without negotiating with the transactions parties. Experts say this would be an important development with far-reaching implications.
Last week, Foreign Investment Watch spent some time with a senior CFIUS official, who provided updates on recent staffing changes, and insights into the Committee’s priorities for 2024. According to the official, the first tranche of proposed changes to FIRRMA may come as early as Q1. Details inside.
Based on recent hearings and industry meetings, the Select Committee has published a policy paper with a staggering 150 recommendations for countering China. The document outlines flaws in the CFIUS model, and suggests tactics to improve the approach to national security. Details, report inside.
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.
At the request of our readers, Foreign Investment Watch is creating a list of third-party monitors and auditors that are actively engaged with transaction parties on CFIUS-imposed National Security Agreements. We are asking readers to submit any TPMs or TPAs with whom they have worked.
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.
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.
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.
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.
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.
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.”