On August 13, 2018, the President of the United States of America (the “President”) signed the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (the “2019 NDAA”), which includes the Foreign Investment Risk Review Modernization Act of 2018 (“FIRRMA”). FIRRMA directs significant changes to jurisdictional and procedural elements of the national security regulatory regime managed by the Committee on Foreign Investment in the United States (“CFIUS”), an interagency body chaired by the U.S. Department of the Treasury (the “Treasury Department”) with broad authority to review the national security implications of inbound investment transactions.
Some of the changes directed by FIRRMA came into effect immediately upon the President’s signature of the 2019 NDAA. Other changes directed by FIRRMA will not come into effect until the earlier of: (a) 18 months after the enactment of FIRRMA; and (b) 30 days after promulgation of implementing regulations by the Treasury Department.
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