Foreign Investment

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In a recent opinion, U.S. Magistrate Judge Zia M. Faruqui of the U.S. District Court for the District of Columbia held that there is probable cause to find that a U.S. citizen-defendant violated U.S. sanctions by funneling cryptocurrency to a payments platform that the defendant operated in a “comprehensively sanctioned country.”
Continue Reading U.S. Federal Judge Finds Probable Cause for Conspiracy to Violate U.S. Sanctions and to Defraud the United States in First Published Opinion Discussing U.S. Sanctions Violations Involving Use of Cryptocurrency

U.S. Secretary of Commerce Gina Raimondo recently expressed support for a screening regime to review outbound investments.[1]  This, as well as similar statements from the White House and the passage of legislation calling for such a process earlier this year, signals that certain outbound investments could be subject to U.S. regulatory review and approval in the near future.[2]
Continue Reading Support for “Reverse CFIUS” Outbound Investment Screening Regime Grows

On March 21, 2022, the Italian Government enacted a law-decree (“Decree”) to address the economic and humanitarian effects of the ongoing Ukraine crisis.[1]

The Decree further broadens Italy’s foreign direct investments (“FDI”) regime, by  giving the Government the permanent power to review (a) acquisitions of controlling stakes by European Economic…

The European Commission (“EC”) recently published its first annual report on the new European cooperation mechanism regarding the screening of foreign direct investment (“FDI”) into the EU (the “Report”). The Report shows that four out of every five FDI filings screened at the EU level were quickly resolved within Phase I, while the remaining filings…

The U.S. National Science and Technology Council (NSTC)[1] recently published an updated list of critical and emerging technologies (CETs) as part of an ongoing effort to identify advanced technologies that are potentially significant to U.S. national security.
Continue Reading Updates to the Critical and Emerging Technologies List Signal Additional Areas of Focus

On December 30, 2021, the Italian Government extended until the end of 2022 Italy’s emergency foreign direct investments (“FDI”) regime, which enables it to review also acquisitions of controlling stakes by European Economic Area (“EEA”) investors, as well as certain minority investments by non-EEA investors, in any strategic sector.

By contrast, under ordinary rules,  these…

In 2022, boards of directors will continue to face a complex and expanding global foreign direct investment landscape that increasingly requires transactions to undergo intensive multijurisdictional FDI reviews and filing and approval processes, alongside merger control reviews and clearances.  This includes longstanding FDI review regimes with which boards of directors may be familiar, such as the Committee on Foreign Investment in the United States, as well as new and recently modified and expanded regimes, particularly in Europe. …
Continue Reading Global FDI Review Landscape Continues to Evolve

On January 5, 2022, the U.S. Department of the Treasury, as Chair of the Committee on Foreign Investment in the United States (“CFIUS”), determined that Australia and Canada have established and are effectively utilizing robust processes to analyze foreign investments for national security risks and facilitate coordination with the United States on matters relating to investment security.  As a result, Australia and Canada are and will remain “excepted foreign states” for CFIUS purposes unless and until the U.S. Government deems otherwise.[1]  The United Kingdom and New Zealand, both of which also currently are treated as excepted foreign states,[2] have until February 2023 to fulfill the criteria necessary to remain excepted foreign states.  It is possible that additional countries may be designated in the future as the global foreign direct investment (“FDI”) trend, particularly in U.S. ally countries, continues.
Continue Reading Australia and Canada Remain CFIUS Excepted Foreign States; United Kingdom and New Zealand Have Until February 2023 to Fulfill Criteria Necessary to Keep Designations