The U.S. Government’s interest in the national security implications of certain foreign investments and transactions in the United States, as evidenced by the work of the Committee of Foreign Investment in the United States (CFIUS), has continued to accelerate. The 2018 Foreign Investment Risk Review Modernization Act (FIRRMA) and 2020 final regulations implementing FIRRMA increased the number of transaction notices that fall within CFIUS’s jurisdiction. Those numbers are growing and show no sign of slowing under the Biden Administration.
Companies engaged in a transaction under review by CFIUS must disclose any aspect of the transaction that could impact the national security interests of the United States. In particular, supply chain security and data protection issues are expected to continue as areas of particular focus for CFIUS in the foreseeable future.
Navigating this process and performing the necessary expert technical assessments for a CFIUS filing is an exceedingly complex exercise in today’s global business environment. Once CFIUS has reviewed a transaction, it also is a near certainty that the quantity and complexity of CFIUS-imposed mitigation measures will increase in the months and years ahead.
Companies need a comprehensive, interdisciplinary approach to help navigate the legal, governance, and technology issues at play. Stroz Friedberg, an Aon Company, and its CFIUS team include former high-level federal prosecutors, as well as members of several branches of the federal government and the intelligence community. This deep bench of national security experience works in close partnership with our forensic examiners, data privacy professionals, and skilled source code team members to bring together the full complement of capabilities to handle the wide variety of transactions that may come before CFIUS.
Built on decades of experience in digital forensics, data privacy and governance, incident response, and independent compliance advisory and monitorship consulting, Stroz Friedberg offers a suite of services designed to assist clients with navigating the complexities of the CFIUS landscape. From the pre-filing stage through post-deal compliance, Stroz Friedberg is well-positioned to help companies prepare to advocate their position before CFIUS, as well as work alongside companies as they work to uphold compliance with their obligations once a transaction is finalized.[1]
Specifically, Stroz Friedberg can help companies:
- Develop and propose data and technology mitigation strategies in the pre-filing phase, including unstructured and structured data mapping, network architecture reviews, personal data audits, penetration testing, source code reviews, and physical security assessments of facilities and real estate
- Implement frameworks for both Interim Orders and final National Security Agreements
- Serve as an Independent Monitor
- Remediate violations of National Security Agreements
To learn more about the CFIUS capabilities offered by Stroz Friedberg, An Aon Company, please contact:
Joshua Larocca
jlarocca@strozfriedberg.com
