CFIUS Fines: A Comprehensive Guide
What is CFIUS?
The Committee on Foreign Investment in the United States (CFIUS) is a U.S. government interagency committee responsible for reviewing foreign investments in the United States to determine if they pose a national security risk.
CFIUS Fines
CFIUS has the authority to impose fines on companies that violate its regulations. In recent years, CFIUS has been dramatically ramping up the fines it imposes. In 2022, CFIUS imposed a $60 million fine on T-Mobile, the largest fine in its history.
T-Mobile Fine
The $60 million fine imposed on T-Mobile was for the company's failure to file a CFIUS notice before acquiring Sprint in 2020. The acquisition gave T-Mobile access to Sprint's sensitive customer data, including location data and call records.
CFIUS determined that T-Mobile's failure to file a notice violated the Defense Production Act of 1950, which requires companies to file a notice with CFIUS before acquiring a foreign company that could pose a national security risk.
How to Avoid CFIUS Fines
Companies can avoid CFIUS fines by following these steps:
- File a CFIUS notice before acquiring a foreign company.
- Cooperate with CFIUS during its review of the transaction.
- Take steps to mitigate any national security risks identified by CFIUS.
Conclusion
CFIUS fines are a serious matter. Companies that violate CFIUS regulations can face significant fines and other penalties. By following the steps outlined in this article, companies can avoid CFIUS fines and protect their national security interests.
Additional Resources
- CFIUS 2022 Annual Report to Congress
- CFIUS Imposes $60 Million Fine on T-Mobile, Largest Penalty in Its History
- CFIUS Penalties on the Rise
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