Cfius takes bold move into enforcement with mitigation fine

Author: John Crabb | Published: 26 Apr 2019

For the first time in its history the Committee on Foreign Investment in the United States (Cfius) has issued a financial penalty to a company that breached the terms of its mitigation agreement. The $1 million fine makes a strong statement that the committee is willing to impose such punishments and is moving into the enforcement business.

While the recipient of the fine was not released, it is clear that Cfius is not going to wait behind the scenes after clearing an acquisition or investment on terms, but will take actions within its newly expanded authority where necessary.

"It is consistent with the message conveyed since the expansion of Cfius' jurisdiction; the ability to impose penalties for failures to make mandatory declarations is also part and parcel of an effort to emphasise and signal to investors, and investment targets alike, that it takes these regulations very seriously," says Ama Adams, partner at Ropes & Gray....