Treasury wants input on new foreign investment regs
The regulations, intended to protect critical infrastructure from hostile ownership, will be administered by a revised and strengthened investment review board.
The regulations are largely as a result of the Dubai Ports World brouhaha that erupted in 2006. In the wake of that attempted take-over of U.S. port facilities by a questionable foreign investor, Congress enacted and President Bush signed legislation last July that would tighten the process by which the Committee on Foreign Investment in the United States, known as CFIUS, will review prospective acquisitions of sensitive U.S. companies and critical infrastructure by international buyers.
The U.S. Treasury Department, which serves as the lead agency for the CFIUS process, today issued a brief notice indicating that "homeland security" matters would be included within the definition of "national security" subjects that CFIUS can examine.
Treasury also announced that a public meeting will be held at its headquarters in Washington, DC, on October 23, from 2 to 4 PM, to discuss issues related to the new legislation.
Treasury said it has begun "preparatory work" on writing new regulations to implement the changes to the CFIUS process required by the Foreign Investment and National Security Act of 2007 (FINSA), signed by President Bush on July 26.
That law says that CFIUS must complete an investigation within 45 days of any contemplated transaction that might "impair U.S. national security" or result in a shift in control of any "critical infrastructure" into non-U.S. hands.
FINSA authorizes the President to suspend or prohibit any covered transaction within 15 days of the completion of a CFIUS investigation if he or she determines that the deal might jeopardize U.S. national security.
The legislation also mandates that the 14 high-level officials who constitute CFIUS (including the secretaries of the Treasury, Homeland Security, Commerce, State and Defense, as well as the Attorney General and the U.S. Trade Representative) actively participate in decisions concerning the security implications of direct foreign investment.
Treasury’s announcement solicits the public’s comments on procedural and definitional issues, mitigation agreements, confidentiality concerns and emerging trends in international investment.
To attend the public meeting, contact: Michael Kimack at 202-622-0414 or
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