Congress CFIUS Foreign Investor

On Jan. 9, House FSC held hearing on CFIUS foreign investments.

  • Monetary policy and trade subcommittee reviewed US foreign investment process.
  • With operations of Committee on Foreign Investment in the United States (CFIUS).
  • Sought to modernize CFIUS review, to avoid US business harm, maintain security.
  • Witness Statements
  • Foreign investment needed safeguards against any threats U.S. national security.
  • Statute for CFIUS - has not been updated in a decade and should be modernized.
  • Witnesses said need reforms, ineffective as substitute technology control vehicle.
  • Imposing this regime on US technology business, could undermine US innovation.
  • Uncertainty could encourage new research and development, to move outside US.
  • Could undermine US innovation and technology development in defense/economy.
  • Foreign Ownership
  • Foreign investments is subject to regulation only to protect vital national interests.
  • US well served by regulatory processes that are transparent, predictable, efficient.
  • Any amendments should replicate deliberative processes followed in 2007 to 2008.
  • Discussed how to identify Chinese firms, recent acquisition routed through Ireland.
  • Best way for CFIUS to determine control of a firm is to trace the money being used.
  • Layers of subsidiaries and shell companies mean any other methods can be gamed.
  • Reforming CFIUS process to include IP protection evaluation is important next step.
  • Jan. 2018 Senate Hearing
  • On Jan. 18, 2018, Senate hearing on CFIUS, Sen. Brown issued opening statement.
  • Brown concern that firms seek to capture intellectual property of tech companies.
  • Committee chair Sen, Crapo issued opening statement at hearing on CFIUS reform.

Regulators House; Senate; US Treasury
Entity Types Bank; Corp
Reference PR, 1/18/2018; PR, 1/09/2017
Functions AML; Anti-Bribery; C-Suite; Financial; Reporting; Treasury
Countries China; United States of America; Cross-Border
Products Equity; Securities
Regions Am
Rule Type Concept
Rule Date 1/9/2018
Effective Date 1/18/2018
Rule Id 37356
Linked to N/A
Report Issue 2/1/2018
Report Section AML & Enforcement

Last substantive update on 01/18/2018