Rep. Maloney on New CFIUS Regulations
WASHINGTON, DC – Congresswoman Carolyn B. Maloney (D-NY), Chair of the House Subcommittee on Financial Institutions and Consumer Credit and author of the law to reform the Committee on Foreign Investment in the United States (CFIUS), issued the following statement today after the Administration released regulations to implement the new CFIUS law, which will tighten security reviews of foreign investments:
“These regulations are a positive step forward. The official implementation of the new CFIUS law will help keep our country secure and encourage safe foreign investment, which we have seen become increasingly important during the recent economic downturn.
“My CFIUS law called for strengthening the process for reviewing foreign investment in the U.S. These regulations not only strengthen the review process, but also make it more transparent. A more transparent process provides greater market certainty and makes it clear that the U.S. takes an open, objective, and even-handed approach to safe foreign investment.
“I was pleased the Treasury Department responded to my urging to further clarify the CFIUS control test. The new regulations now make it clear that a foreign investment resulting in less than 10 percent stock ownership can still undergo a CFIUS review if other factors indicating foreign control are present.
“I remain confident that the Treasury Department intends to follow the law as I wrote it, and have received assurances that the Department is already adhering to the new reforms.
“I will continue to maintain a watchful eye over the ongoing implementation process. I look forward to working with the Treasury Department and other agencies on ensuring the official implementation of the new law goes smoothly.”
For more information on Congresswoman Maloney’s work on CFIUS reform, click here.