CFIUS is expanding its reach. Where the Committee on Foreign Investment in the United States has generally scrutinized foreign acquisition of U.S. “critical infrastructure,” it has now signaled that it may look closely at any deal where the target collects or maintains sensitive personal information.
Continue Reading In-fo’ a CFIUS Review: The Expanding Power of CFIUS through Data Security Scrutiny

The other day I spoke to a colleague at the U.S. Department of the Treasury who works in the Office of Investment Security and said, “I heard CFIUS filings were going to break last year’s record total.” He just laughed. He said the OIS received one hundred and seventy-some filings in 2016, the most they had ever received in a year.

This year, only in November, they were over 225 submissions!

Of course, all of this was just talk and should not be relied on for statistical analysis. But it gives you a good idea of the flood of CFIUS filings that the Committee is now tasked with reviewing. While my contact was sanguine on the possibility of adding some new folks soon to his office soon, he noted that the OIS staff – whom he called the best of the best – has not yet been increased to meet the surge in demand.

So what does this mean for your inbound investment into the United States? We explore that question and provide a few tips below. In addition to a present snapshot of CFIUS, we have a look at the future of CFIUS as a proposed Senate bill aims to increase scrutiny on foreign investment.
Continue Reading The Waiting Game: When, Why, and How to File with CFIUS in a New Era of Investment Scrutiny

On January 10, 2017, Senate Republicans and Democrats introduced bi-partisan legislation called the “Countering Russian Hostilities Act of 2017,” which would impose broad sanctions on Russia. The Act would codify the sanctions President Obama imposed in response to the Russian cyberattack on the United States to influence the 2016 U.S. Presidential election and the Ukraine-related sanctions President Obama issued in 2014. Importantly, the legislation introduces beefed up economic sanctions against Russia’s energy and financial sectors.
Continue Reading The Future of Russia Sanctions: The Awkward Edition

  • A President Trump will have authority to reinstate sanctions lifted by the Iran Nuclear Deal as well as revoke certain authorizations provided for business with Iran.
  • Several economic and geopolitical factors may cause Mr. Trump to reconsider or mitigate his approach to the Iran Nuclear Deal.
  • Companies should prepare to respond quickly to any changes.

Maybe you’ve seen it before, the series of characters that represents upsetting the whole game, flipping the table:

(╯°□°)╯︵ ┻━┻

These days, where words fail, we have emojis.  And here they describe what a President Trump may do to the carefully planned Iran Nuclear Deal. One year after the implementation of the Iran Nuclear Deal (much discussed, at least in our blog), Mr. Trump will take office. At that time, we will see whether his campaign rhetoric against Iran becomes policy action or whether it will be tempered by geopolitical and business realities.Continue Reading The Table Flip: Trump, the Iran Nuclear Deal, and American Business

Article Highlights:

  • Non-U.S. banks can do business with Iran and continue their relationships with U.S. banks.
  • Non-U.S. companies may use proceeds from Iran transactions more freely, including in the United States.
  • OFAC draws a clearer line with respect to the use of Iran-related funds.

After the Iran nuclear agreement, as non-U.S. companies entered into newly-permitted business in Iran, they faced the difficult question of where they could put the money from their Iran business. U.S. law still prohibits U.S. persons (including U.S. banks) from conducting most business with Iran. Among other rules, OFAC regulations and guidance provided that “Iran-related” funds could not transit the U.S. financial system. But the guidance did not state clearly what constituted “Iran-related” funds. For that reason, foreign financial institutions (FFIs) hesitated, even feared, to process Iran-related transactions because of the risks of sending Iran-related funds into the U.S. financial system in violation of U.S. sanctions. However, a new clarification in the OFAC guidance could change all of that (and change it in the way we proposed right here in this blog[1]).Continue Reading Those Three Little Words: OFAC’s Subtle Language Shift Could Create Sweeping Change on Iran Investment

On July 29, 2016, the U.S. Treasury Office of Foreign Assets Control (OFAC) cleared the runway for non-U.S. operators of civil aircraft to send flights into Iran. New  “General License J” authorizes many Boeing, Airbus, and other civil aircraft containing U.S.-origin materials to fly to Iran on “temporary sojourn.” The General License provides a great opportunity for non-U.S. aircraft owners and operators. However, a series of complex conditions may complicate ground handling agreements, damp or dry lease arrangements, code sharing, or other transactions related to providing service to Iran.
Continue Reading Layover in Tehran: United States Authorizes Carriers to Land Civil Aircraft in Iran

On June 20, 2016, you will be able to take a non-stop flight from Tehran to Paris . . . but you probably shouldn’t.

According to its website, the Iranian airline Mahan Air will add the City of Lights to the list of European destinations it is already serving, including Athens, Copenhagen, and Dusseldorf. What makes the current and proposed Mahan routes interesting to regulatory experts (read: nerds) is that Mahan Air is on the U.S. Treasury’s Specially Designated Nationals (SDN) list. According to the Treasury’s Office of Foreign Assets Control (OFAC), Mahan Air has moved troops and equipment for the Iranian Revolutionary Guard Corps and has provided support and transport to the Assad regime in Syria.Continue Reading Flying the Too-Friendly Skies? Europe Opens Routes for Sanctioned Iran Airline

Highlights:

  • Sanctions relief presents new business opportunities with Iran
  • Most U.S. companies are still prohibited from Iran business, but the U.S. government is encouraging lawful business by non-U.S. companies
  • The line between permitted and prohibited financial transactions by non-U.S. banks is not clear
  • Careful advice of counsel is critical

Continue Reading New Business Opportunities in Iran! But Who Will Be Your Banker? Non-U.S. Banks Hesitant to Process Lawful Iran Transactions…and for Good Reason

On August 30, 2015, the Washington Post broke a story that the Obama administration is developing a package of economic sanctions that will target Chinese companies and individuals who have benefitted from cybertheft. The new sanctions would come at a time when commerce between the two countries is thriving, but political relations are strained.
Continue Reading Keep Your Frenemies Close: Proposed China Sanctions and the Price of Escalation

Cyber threats are one of the U.S.’s top security threats.  In just the past year, there has been a significant increase in the frequency, scale and sophistication of cyber intrusions and attacks – many of them originating overseas – which have targeted U.S. businesses.  On April 1, 2015, the President announced a new tool to combat the most significant cyber threats to the national security, foreign policy and economy of the United States.  
Continue Reading U.S. Authorizes Targeted Sanctions Against Overseas Cyber Threats