On Apr. 15, US Treasury proposed rule to modify CFIUS regulations.
US Treasury proposed rule to modify regulations of CFIUS at 31 CFR 800, 31 CFR 802 related to penalties for violations of statutory or regulatory provisions or agreements.
Proposed Rule
Proposed rule expands the categories of information the Committee may request from transaction parties to assist CFIUS to mitigate risks to the country's national security.
The proposed rule enhances CFIUS's ability to communicate with parties in other contexts to include obligations to provide data for monitoring compliance with duties.
In addition it helps to determine whether a violation of such obligations has occurred.
Authorizes CFIUS, or lead agency on behalf CFIUS, to negotiate and enter into agreement with party to a covered transaction to mitigate any national security risk.
Consultation
Written comments on the proposed rule must be received by May 15, 2024.
Nov. 2024 US Treasury Final Rule
On Nov. 18, 2024, US Treasury published final rule to modify regulations of CFIUS.
Enhances certain procedures and sharpens its penalty and enforcement authorities.
Allows CFIUS staff chairperson to set timeline for transaction parties to respond to risk mitigation proposals for matters under active review to assist CFIUS in investigations.
Expands circumstances in which civil monetary penalty may be imposed due to material misstatement and omission, including when occurs outside an investigation.
Substantially increases the maximum civil monetary penalty available for violations.
Also expands instances in which CFIUS may use its subpoena authority, including in connection with assessing national security risk linked to non-notified transactions.
Extends the time frame for the submission of a petition for reconsideration of a penalty to CFIUS, as well as the number of days for CFIUS to respond to such a petition.
The final rule will become effective 30 days after publication in the federal register.
