The 10th Annual ACI Committee on Foreign Investment in the United States (CFIUS) Conference delivered valuable insights from CFIUS members and industry leaders alike. Featuring distinguished speakers – such as Paul Rosen, Assistant Secretary of the Treasury for Investment Security, along with current and former CFIUS members from key government departments, including Commerce, Justice and the Treasury – the conference provided attendees with crucial information on CFIUS's priorities. These insights are instrumental for guiding businesses towards effective compliance measures.
Here are the main takeaways from this year’s ACI CFIUS Conference.
- Regulatory changes
This year’s conference kicked off with a surprise – Assistant Secretary Rosen announced a Notice of Proposed Rule Making (NPRM) that included enhancements to certain CFIUS procedures and provisions designed to sharpen its penalty and enforcement authority. In short, the changes included a significant increase in fines for violations (and expanded the circumstances in which they can be applied), an expansion of the type of data CFIUS can collect from third parties regarding non-notified transactions, and increased CFIUS subpoena authority, among others. The NPRM demonstrates the Committee’s increased emphasis on enforcement. - CFIUS-adjacent programs
While CFIUS remained a central topic, this year's conference also explored CFIUS-adjacent programs and their roles within the broader U.S. national security framework. Speakers discussed the close interplay between CFIUS and other national security initiatives, including recent Executive Orders addressing areas such as artificial intelligence, outbound investment, and sensitive data, as well as the role that Team Telecom plays. Of note, this year included a discussion about CFIUS real estate transactions from a local government perspective. - Committee growth
Like last year, Assistant Secretary Rosen reaffirmed the Committee’s ongoing effort to expand and diversify its expertise through recruitment. This initiative aims to attract new talent with diverse backgrounds and skills to enhance the Committee's capabilities as enforcement becomes a top priority. - Compliance outlook
A central theme highlighted in the conference was the critical role of proactive and dedicated compliance efforts. Security officers, third-party auditors and monitors and Committee representatives all emphasized the importance of creating and fostering a culture of compliance for successfully implementing and monitoring a national security agreement.
What this means for business
As CFIUS continues to grow in size and authority, businesses must take a proactive approach to compliance. As CFIUS obligations become more demanding, both in terms of time and costs, companies and investors must be prepared to undertake thorough, focused due diligence and develop robust compliance strategies for the future. Contact the experts at Control Risks to discuss how we can help your company establish a culture of compliance.