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Committee on Foreign Investment in the United States (CFIUS)
Bush administration issues list of security regulations
By MARTIN CRUTSINGER
ASSOCIATED PRESS
Bush administration issues list of security regulations
By MARTIN CRUTSINGER
ASSOCIATED PRESS
The proposed regulations -- issued for a 45-day period of public comment -- will overhaul current regulations to make them conform to the new Foreign Investment and National Security Act that Congress passed last July.
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"The regulations provide necessary guidance on which transactions involve both control and a relationship to national security and therefore require a . . . review," said a joint statement from four groups -- the U.S. Chamber of Commerce, the Business Roundtable, the Financial Services Forum and the Organization for International Investment.
The new law is intended to ensure that high-level officials, including the director of national intelligence, participate in decisions concerning the security implications of direct foreign investment.
The law extends the scope of national security reviews to cover deals involving critical infrastructure and energy and requires a second-stage review investigation of most proposed acquisitions by state-owned companies.
It gives legal status to the little-known Committee on Foreign Investment in the United States, or CFIUS, a multiagency group formed in 1975 to monitor U.S. policy on foreign investment. A 1988 law gave the president the authority to stop foreign acquisitions that pose a security threat, and the president delegated to CFIUS the authority to investigate the deals.
[..]
"The regulations provide necessary guidance on which transactions involve both control and a relationship to national security and therefore require a . . . review," said a joint statement from four groups -- the U.S. Chamber of Commerce, the Business Roundtable, the Financial Services Forum and the Organization for International Investment.
The new law is intended to ensure that high-level officials, including the director of national intelligence, participate in decisions concerning the security implications of direct foreign investment.
The law extends the scope of national security reviews to cover deals involving critical infrastructure and energy and requires a second-stage review investigation of most proposed acquisitions by state-owned companies.
It gives legal status to the little-known Committee on Foreign Investment in the United States, or CFIUS, a multiagency group formed in 1975 to monitor U.S. policy on foreign investment. A 1988 law gave the president the authority to stop foreign acquisitions that pose a security threat, and the president delegated to CFIUS the authority to investigate the deals.