Downward Trend in CFIUS Filings Continuing This Year, Law Firm Says
A decrease last year in filings with the Committee on Foreign Investment in the U.S. is continuing into 2024, Latham & Watkins said in an Aug. 2 client alert.
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A CFIUS annual report, released last month, revealed that the committee saw a drop in notices, declarations and investigations from 2022 to 2023 (see 2407230017). And with only 64 declarations and just over 100 notices filed with CFIUS so far this year, that trend is continuing, Latham & Watkins said. Those numbers reflect a drop in filings compared with the same period last year and “a continued decline in filings since 2022.”
The firm said the decline could be attributed to lower foreign direct investment. It cited data from the U.S. Bureau of Economic Analysis that showed total FDI totaled $148.8 billion in 2023, about a 28% drop from $206.2 billion in 2022.
The CFIUS report also revealed the committee had a record-setting enforcement year in 2023, fining four parties for breaching mitigation agreements, which was double the amount of combined penalties CFIUS had imposed in its nearly 50-year history. The report “underscores the increased attention by CFIUS on enforcement efforts, as well as the expansion of the staff resources, processes, and procedures to monitor and enforce compliance with mitigation agreements,” Latham & Watkins said.