US Treasury Department Issues Notice of Proposed Rulemaking on Implementation of Outbound Investment: 5 Key Takeaways

Summary

On June 21, 2024, the US Department of the Treasury (Treasury) issued a Notice of Proposed Rulemaking (89 Fed. Reg. 55846, to be codified at 31 C.F.R. Part 850 and also available on the Treasury Department website) (NPRM) that would implement Executive Order 14105 (88 Fed. Reg. 54867) on "Addressing United States Investments in Certain National Security Technologies and Products in Countries of Concern" (August 9, 2023) (the Order). The Order directed Treasury to issue regulations aimed at addressing the national security threat posed by certain US investments that may accelerate the development of sensitive technologies and products in "countries of concern." The NPRM addresses public comments received to the Advance Notice of Proposed Rulemaking (88 Fed. Reg. 54961, to be codified at 31 C.F.R. Chapter VIII) (ANPRM), which Treasury published concurrently with the Order, and offers an opportunity for the public to provide comments to inform the development of the final regulations.