The Department of the Treasury has issued an advance notice of proposed rulemaking to solicit feedback that would inform the establishment of a program requiring U.S. persons to officially declare investments in entities located in countries of concern. It would also prohibit such persons from engaging in transactions involving technologies that pose a threat to U.S. national security.
The formation of the proposed program is in accordance with an executive order that intends to address foreign threats to U.S. national security by authorizing the secretary of the Treasury to regulate U.S. investments in geopolitically fraught countries that are involved in developing sensitive technologies, according to a Federal Register notice published Monday.
Per the notice, the program would impose the prohibition and notification requirement for transactions involving high-level technology categories: semiconductors and microelectronics, artificial intelligence and quantum information technologies.
The department wants input on the type of analysis or due diligence U.S. persons should anticipate undertaking to determine whether they are investing in a covered foreign person and seeks recommendations on how to improve clarity or refine the definitions given the program’s overall objectives.
Comments on the proposed rulemaking are due Sept. 28.
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