On September 17, the Treasury Department proposed regulations comprehensively implementing the Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA). Treasury issued a press release, fact sheet, and FAQ about the proposed regulations. FIRRMA broadens the authorities of the President and the Committee on Foreign Investment in the United States (CFIUS) with respect to national security concerns arising from certain foreign non-controlling investments and real estate transactions that were previously outside CFIUS’s jurisdiction. The type of non-controlling investments covered by the regulations are those that afford a foreign person certain access, rights, or involvement in certain U.S. businesses. These regulations apply only to investments in U.S. businesses involved in specified ways in critical technologies, critical infrastructure, or sensitive data. The regulations regarding real estate apply to transactions that afford a foreign person three or more of the following property rights: to physically access; to exclude; to improve or develop; or, to affix structures or objects. Covered sites are areas in and around specific airports, maritime ports, and military installations.
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