Whether you are at an early stage in reviewing a covered transaction under CFIUS`s jurisdiction or need an independent third party to assess compliance with a mitigation agreement, we have the regulatory experience, cybersecurity capabilities and independent position to meet your CFIUS-related needs, including: Assist an international clinical research organization in setting up a special security agreement with the DSS on foCI issues to allow for the continuation of classified work on light installations. Navigating National Security Requirements Under the Committee on Foreign Investment in U.S. National Security Agreements If a proposed foreign acquisition or investment in a U.S. company poses a risk to national security, the acquirer, acquirer, and CFIUS will discuss the risks to national security. They will negotiate and sign an NSA that establishes regulations to ensure that security risks are addressed. Government, particularly in the areas of defence, law enforcement and national security. Examples of certain provisions included in the NAAs include: Compliance with National Security AgreementsThe acquirer and the acquirer agree with CFIUS to design, implement and operate certain compliance policies, procedures and controls that address risk mitigation – a mitigation plan. In other words, the NSA defines how to mitigate the threat to U.S. national security, the parties agree to do so through the NSA, and an independent compliance function validates that a mitigation plan has been implemented and is operating effectively. To ensure compliance, the Committee explicitly authorizes the hiring of a third party to verify NSA compliance and validate agreed milestones during the term of the agreement, typically on an annual basis. This provision is intended to identify and enforce compliance if CFIUS sets a prerequisite for approval of the transaction. Mitigation provisions depend on the transaction.
This may include restrictions on access to certain parts of the store, information, data, technologies or products of the target. Regulations may also include restrictions on governance, delivery to U.S. government customers, access to U.S. government agencies, and regular declaration/compliance of requirements. In addition, CFIUS may require Buyer to strengthen governance by placing the acquired assets in a voting or proxy structure managed by independent parties, thereby excluding Buyer`s access. Continuous compliance Compliance does not stop when the NSA is signed. .