With TikTok Bill Stalled, Treasury Seeks to Tighten CFIUS Enforcement

International Trade attorney Robert Friedman was quoted in a Forbes article about the U.S. Department of the Treasury's proposal to strengthen the enforcement powers of the Committee on Foreign Investment in the United States (CFIUS). Amid the heightened scrutiny of Chinese investments, particularly the TikTok controversy, the proposal aims to broaden CFIUS' oversight by enabling it to more easily subpoena companies, expand information requirements and levy higher fines. Mr. Friedman highlighted the substantial rise in CFIUS' non-notified inquiries in recent years and emphasized the proposal's importance in ensuring CFIUS has adequate authority to conduct these inquiries and incentivize parties to fully cooperate in preliminary reviews.

"Taken together the new authorities signal a Committee that will remain active on both ends of the CFIUS spectrum: underscoring its commitment to identifying transactions that were not notified to the Committee on one hand and providing the Committee with increased subpoena power and higher maximum civil monetary penalties on the other hand," he said.

READ: With TikTok Bill Stalled, Treasury Seeks to Tighten CFIUS Enforcement