US Treasury proposed rule to enhance Committee on Foreign Investment in the United States (CFIUS) procedures and enforcement authorities in 31 CFR 800, 31 CFR 802.
Proposed Rule
Amends the CFIUS penalties for violations of statutory and regulatory provisions.
Including agreements entered into and conditions or orders issued pursuant thereto.
Expands types of information CFIUS may require transaction parties to provide.
Establish a time frame for party’s to respond to proposed risk mitigation proposals.
Institutes extendable timeline for transaction parties to respond to risk mitigation proposals for matters under active review to assist CFIUS in concluding its reviews.
Expands circumstances a civil monetary penalty may be imposed due to omission.
Substantially increasing maximum civil monetary penalty available for violations of obligations and introducing new method for determining maximum possible penalty.
Expands instances CFIUS may use its subpoena authority, including seeking to obtain information from third persons not party to a transaction notified to CFIUS.
Also when assessing national security risk associated with non-notified transactions.
Extends the time frame for submission of a petition for reconsideration of a penalty.
Consultation
Written comments are due on or before May 15, 2024.
