The Department of the Treasury has released a final rule to implement a 2023 executive order that seeks to address U.S. investments in certain national security technologies and products from countries of concern.
Outbound Investment Security Program
The Treasury said Monday the final rule, which will take effect on Jan. 2, establishes a program to prohibit or require notification of certain types of outbound investments by U.S. persons into certain entities with ties to countries of concern.
The newly created Office of Global Transactions within the Treasury’s Office of Investment Security will administer the Outbound Investment Security Program, which will apply the prohibition and notification requirement for products within the semiconductors and microelectronics, quantum information technologies and artificial intelligence sectors that countries of concern may use to threaten U.S. national security.
Final Rule’s Key Elements
The final rule offers details on a U.S. person’s obligations regarding a covered transaction, categories of covered and excepted transactions, technical specifications for certain technologies and products within the three tech areas and information that a U.S. individual is required to submit to the Treasury as part of a notification.
“Artificial intelligence, semiconductors, and quantum technologies are fundamental to the development of the next generation of military, surveillance, intelligence and certain cybersecurity applications like cutting-edge code-breaking computer systems or next generation fighter jets,” said Paul Rosen, assistant secretary of the Treasury for investment security.
“This Final Rule takes targeted and concrete measures to ensure that U.S. investment is not exploited to advance the development of key technologies by those who may use them to threaten our national security,” added Rosen.
