User:Orbitingthesun98/Foreign Investment Risk Review Modernization Act

The Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA) is a federal law enacted as a provision of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 on August 13, 2018. The law broadened the scope of authority held by the Committee on Foreign Investment in the United States (CFIUS) to intervene in U.S. investments by foreign persons involving real estate, material nonpublic technical information, changes in control rights, and efforts to evade CFIUS review.

Provisions

FIRRMA was enacted as Subtitle A of the NDAA. Key provisions include:

Covered Transaction Expansion

Section 1703 amends the Defense Production Act to expand the definition of "covered transactions" within the scope of CFIUS review.

Regulatory Authority

Section 1706 requires CFIUS to promulgate regulations

Regulations

FIRRMA authorized the promulgation of a number of regulations related to its changes to the CFIUS process:

Expansion of CFIUS Jurisdiction

Under changes pursuant to FIRRMA, the regulations at 31 C.F.R. Part 800 expands the scope of CFIUS jurisdiction to include non-controlling investments involving allowing CFIUS intervention in "covered investments" providing certain non-control rights to investors. Regulations at 31 C.F.R. Part 802 expand CFIUS jurisdiction to foreign real estate purchases.