Yesterday, the Committee on Foreign Investment in the United States (CFIUS) issued its inaugural enforcement and penalty guidelines. These guidelines emphasize the Committee’s ongoing emphasis on heightened enforcement and explicitly outline the criteria that CFIUS will weigh when implementing its enforcement powers and levying penalties.
CFIUS possesses regulatory authority that enables it to impose civil penalties up to $250,000 per violation or the transaction’s value, whichever is greater. Violations include failing to file a mandatory declaration or notice, non-compliance with CFIUS Mitigation and misrepresentations or omissions in submitted information or certifications.
Based on CFIUS’s increased focus on enforcement, companies engaged in international investment should read our guide for key takeaways and brush up on the new guidelines.