CFIUS issues first-ever enforcement and penalty guidelines


The Committee on Foreign Investment in the United States issued its first-ever enforcement and penalty guidelines for entities that violate mitigation agreements with CFIUS or otherwise run afoul of the Defense Production Act of 1950.

The guidelines, published Thursday, lay out three categories of acts or omissions that would constitute a violation: failure to file a mandatory declaration notice; noncompliance with CFIUS mitigation agreements, conditions, or orders; or providing CFIUS with a material misstatement, omission, or false certification.

CFIUS is an interagency body of the U.S. government authorized to review and address national security risks arising from certain transactions involving foreign investment in the United States. According to its annual report to Congress for calendar year 2021, CFIUS issued 272 notices of covered transactions last year. Of that total, 164 were reported voluntarily to the committee and 130 required further investigation.

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