New regulations recently released by the Committee on Foreign Investment in the United States (CFIUS) implementing the Foreign Investment Risk Review Modernization Act (FIRRMA) will go into effect on Thursday, February 13, 2020. To assist with navigating this complex and significantly expanded regulatory framework, White & Case is pleased to introduce its new CFIUS FIRRMA Tool, which provides an online, step-by-step analysis of a contemplated transaction in order to assist users in determining whether the transaction could be subject to CFIUS's jurisdiction under FIRRMA and if mandatory filing requirements would apply.
White & Case CFIUS FIRRMA Tool
As we previously reported, the Department of the Treasury, which chairs CFIUS, released final FIRRMA implementing regulations on January 13, 2020. The final regulations become effective on Thursday, February 13, 2020, and significantly expand CFIUS’s jurisdiction. Under the new FIRRMA regulations, CFIUS has authority to review both controlling investments by foreign persons in US businesses, as well as certain non-controlling, non-passive investments by certain foreign persons in US businesses involved with critical technology, critical infrastructure, or sensitive personal data (known as "TID US businesses" for technology, infrastructure, and data). Certain transactions involving TID US businesses are subject to mandatory filing requirements with potentially substantial penalties for noncompliance. Under the new regulations, CFIUS also has authority to review the purchase or lease by, or concession to, certain foreign persons of certain real estate (a) located within or functioning as part of an air or maritime port or (b) that is in close proximity to, or that provides the foreign person the ability to collect intelligence on or surveil national security activities at, US military installations or other sensitive US government facilities or property.
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