The Foreign Investment Risk Review Modernization Act (FIRRMA) gave the Committee on Foreign Investment in the United States (CFIUS) enhanced powers in August 2018. Some reviews of foreign investments were mandated – especially investments in sensitive businesses by foreign governments and government-controlled entities. For the first time, FIRRMA expressly authorized review of real estate transactions and non-controlling investments in sensitive industries.
At the same time, however, FIRRMA gave CFIUS authority to exempt trusted foreign investors not only from mandatory filings, but also from reviews of real estate transactions and non-controlling investments. To secure exemption, however, these “excepted investors” (among other things) had to be organized in, or otherwise closely tied to “excepted foreign states.”
