CFIUS Proposed Regulations – Evolution Toward Broad Foreign Investment Screening Continues Apace
September.25.2019
Commerce International & Conformité
International trade and compliance can be an obstacle course. Whether you are investing in a project in Western Africa, selling semiconductor equipment in China or doing business in countries that are newly subject to sanctions, you need advisors who know their way around the global market and the numerous legal restraints on international trade and investment.
Major companies such as General Electric, Intel and Marathon Oil commonly rely on us to help them overcome the most challenging barriers to cross-border business. We’ve counseled global financial institutions on how to comply with U.S. and EU economic sanctions against Russia. We’ve obtained national security clearance in one of the few CFIUS cases that has gone to the President for approval. We’ve resolved compliance and government affairs challenges related to trade in security-sensitive electronics products. We’ve advanced the interests of some of the largest industrial businesses in connection with import antidumping proceedings. We have helped many multinational companies set up effective global compliance programs as a first line of defense. And when our clients have faced enforcement issues or litigation, we’ve guided them to successful resolution.
Our International Trade & Compliance team works hand in hand with our Corporate and Investigations teams to conduct due diligence and internal investigations, manage risk, and represent our clients’ interests at all levels of government in the United States and elsewhere. The strength of our practice rests on our sensitivity to both sector-specific considerations and the priorities of regulators in the United States and around the world.
Chambers USA 2017 notes our International Trade team and Chambers Global 2017 ranks one of our members, citing our work in export control and sanctions, and our handling of issues in connection with the ITAR and EAR regulations.
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Global Footprint, Comprehensive Experience
We stand ready to assist you in every global market, with practitioners in Washington, D.C., London, Paris, Brussels, Geneva, Moscow, Beijing, Tokyo, and other major financial, commercial and regulatory centers.
We offer counsel on the full range of international trade and investment requirements, including:
- Export controls, including U.S. (EAR and ITAR) and EU regulations
- Embargoes and other economic sanctions involving the U.S. Office of Foreign Assets Control (OFAC), EU authorities and others
- The Exon-Florio Law and other rules bearing on foreign investment screening by the Committee on Foreign Investment in the United States (CFIUS)
- Unfair import (antidumping and countervailing duties) and customs regulations
- Market access rights
- Government contracting regulations, including Federal Acquisition Regulation (FAR), Foreign Ownership, Control or Influence (FOCI) and those related to other areas such as procurement and industrial security requirements
- Foreign Corrupt Practices Act (FCPA), the UK Bribery Act and other anticorruption laws
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Anti-money laundering rules
We can also help you address challenges involving restraints on global trade and investment, along with related policy and regulatory matters.
Focus on Compliance
A robust compliance program is a requirement when operating in global markets.
We have crafted and helped implement compliance programs for leading players in the energy, semiconductor, software, telecom, aviation and other sectors. In the process, we’ve led compliance reviews and internal investigations and assisted in the preparation of voluntary self-disclosures to the U.S. government, when these are called for. And when clients have faced enforcement actions, we’ve provided vigorous and strenuous defense against criminal and civil actions, with a long record of successfully negotiating settlements with regulatory authorities.
Investigations into trade-law violations can quickly expand to areas including corruption, bribery and money laundering. That is why we always work to create global compliance and training programs that cover the full range of risk areas.
Helping Secure CFIUS Clearance
We work to help our clients avoid the surprises that can delay or derail successful deals. We perform due diligence, resolve liability questions, develop appropriate contract provisions and secure needed authorizations.
We have extensive experience in one of the major barriers to cross-border investments, Committee on Foreign Investment in the United States (CFIUS) national security screenings, which can hold up deals for months if not years. We’ve been deeply involved in CFIUS screenings since the underlying statute was enacted in 1988, and have secured CFIUS clearance for particularly sensitive transactions, such as the acquisition of the U.S. plane maker Cirrus by a subsidiary of the Aviation Industry Corporation of China (AVIC).
Policy Advocates
In addition to offering you advice on policy matters in the sensitive areas of trade, defense, national security and advanced commercial technology, we can stand as your advocate with the lawmakers and regulators who formulate and implement policies that govern global commercial activity.
We work closely with all segments of government, regularly offering perspectives to the U.S. Congress, Commerce Department, Justice Department, Treasury Department, Defense Department, Office of the U.S. Trade Representative, State Department, White House offices and Intelligence Agencies.
