GAO report answers the non-notified transaction question

Author: John Crabb | Published: 23 Jul 2018

A report released last week by the US Government Accountability Office (GAO) has clarified the process for identifying non-notified transactions, a concept that the Committee on Foreign Investment in the United States (Cfius) has not yet addressed. A recommendation was made specifically to the Department of Defense (DoD) and includes additional guidance and clarification during the Cfius process.

Non-notified transactions are those deals where the interested parties do not notify Cfius that there may be a possible threat to national security, either knowingly or not.

"As a practical matter, clients often wonder what the chances are of the US government finding out about a deal that it has not been voluntarily notified about?" said Mario Mancuso, partner at Kirkland & Ellis and former Cfius decision-maker, who says the recommendation underscores what people already believe. "Here we have more evidence, an official government report that sheds light upon an affirmative government...