US Treasury Issues Proposed CFIUS Rules

by Glen Shapiro, LawAndTax-News.com, New York

23 April 2008

The US Treasury Department has this week issued proposed regulations that implement the Foreign Investment and National Security Act of 2007 (FINSA).

The proposed regulations provide an update to regulations issued in 1991 that govern the Committee on Foreign Investment in the United States (CFIUS), and its process for national security review of certain foreign investments in US businesses.

They reflect reforms made to the CFIUS process by FINSA and the CFIUS executive order issued by President Bush on 23rd January of this year.

"These regulations reflect America's strong and continued commitment to safeguarding US national security in a manner that reinforces the longstanding US policy of welcoming foreign investment. The proposed regulations increase clarity and make additional improvements based on experience," announced Assistant Secretary for International Affairs, Clay Lowery.

The Treasury Department is requesting comments on the proposed regulations; a public comment period will extend for 45 days from publication in the Federal Register.

The Treasury Department will hold a public meeting to receive comments on the proposed regulations on 2nd May, 2008.

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