Title

FINSA Proposed Regulations
Client Memorandum

Created date

4/30/2008

On April 21, the United States Department of the Treasury issued proposed regulations (the “Proposed Regulations”) to implement the Foreign Investment and National Security Act of 2007 (“FINSA”). FINSA amended the 1988 “ExonFlorio” statute, which regulates foreign acquisitions of U.S. businesses that could raise national security risks, including businesses with state-of-the-art technology or products or services of military importance. FINSA formally recognized the inter-agency Committee on Foreign Investment in the United States (“the Committee” or “CFIUS”) as the entity responsible for reviewing relevant transactions and named the Treasury Department as its Chairperson.