The Treasury Department has finalized rules that expand the jurisdiction of the federal government over certain foreign investment in U.S. businesses. The agency was required to issue the regulations on Jan. 13, pursuant to the Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA), a law which broadened the jurisdiction of the Committee on Foreign Investment in the United States (CFIUS) over foreign investments in businesses involved with critical technology, infrastructure, and personal data.
The regulations “strengthen our national security and modernize the investment review process,” Treasury Secretary Steven Mnuchin said in a press release. The two rules “maintain our nation’s open investment policy by encouraging investment in American businesses and workers” while also “providing clarity and certainty regarding the types of transactions that are covered,” he continued.
