Paul Rosen, assistant secretary for investment security at the Department of the Treasury, said the Foreign Investment Risk Review Modernization Act of 2018 provided the Committee on Foreign Investment in the United States with key authorities over certain investment structures and enabled CFIUS to process 440 transaction filings in 2022, up from 237 filings in 2017.
Rosen’s remarks are part of his prepared testimony set to be delivered on Wednesday before the House Financial Services Committee as part of a congressional hearing on CFIUS and other government efforts to strengthen U.S. national security.
“FIRRMA also strengthened our processes to better enable timely and effective reviews of transactions within our jurisdiction. It also provided the Committee with much needed jurisdiction over certain transactions involving real estate in close proximity to sensitive facilities, such as military bases,” Rosen noted.
The assistant secretary said the department has issued the committee’s inaugural enforcement and penalty guidelines meant to hold transaction parties accountable for failure to comply with laws to mitigate national security risks.
Since FIRMMA’s enactment, he mentioned that CFIUS has ramped up efforts to work with industry stakeholders and international allies to increase awareness of the committee’s mission.
According to Rosen, the office of investment security will launch a program that would direct U.S. individuals to inform Treasury of certain transactions in foreign countries of concern, particularly deals that involve technologies in the fields of artificial intelligence, quantum information technology and semiconductors and microelectronics.
