• US Treasury released the first-ever Committee on foreign investment in the US (CFIUS) enforcement and penalty guidelines, in its role as chair of the CFIUS.
• Provide public information on how CFIUS assesses violations of laws and regulations.
• Laws, regulations that govern transaction parties, including potential breaches of mitigation agreements, entered to mitigate risks to national security from transaction.
• Aims to send message that compliance with CFIUS mitigation agreements not optional.

CFUIS Enforcement Authority

• CFIUS has regulatory mandate to identify, mitigating certain national security risks.
• Must mitigate such risks while maintaining the U.S. openness to foreign investment.
• Often requires the committee to enter into agreements or impose conditions on transaction parties to mitigate risks to national security that arise from a transaction.
• Authorized to impose penalties, seek remedy by defense production act, 50 USC 4565.
• Regulations addressing imposition of penalties, remedies administered by US Treasury;
• 31 CFR 800.901, 31 CFR 800.902, 31 CFR 801.409, 31 CFR 802.901, 31 CFR 802.902.

Enforcement Guidelines

• Guidelines detailed how CFIUS will assess whether, and what amount, to impose a penalty or take some other enforcement action for a violation of a party's obligation.
• Further, described the three categories of conduct that may constitute a violation.
• Types of conduct that may constitute a violation included failure to file; non-compliance with CFIUS mitigation, material misstatement, omission, false certification.
• Also, process the Committee generally follows in imposing penalties; and some of the factors it considers in determining whether a penalty is warranted, scope of penalty.
• Highlighted importance of prompt, full self-disclosure of potential violation conduct.
• Sources of data on which CFIUS relies: requests for information, self-disclosures, tips.
• Aggravating, mitigating factors included accountability, future compliance, harm level;
• Additionally, aggravating, mitigating factors included negligence, awareness, intent; persistence, timing; response remediation; sophistication and record of compliance.