Clifford Chance

At Long Last: Treasury Issues Implementing Regulations on Outbound U.S. Investments

November 4, 2024

On October 28, 2024, the U.S. Department of the Treasury ("Treasury") issued a final rule (the "Final Rule") providing the regulations for the new "Outbound Investment Security Program." The Final Rule implements the August 9, 2023 Executive Order 14105, "Addressing United States Investments in Certain National Security Technologies and Products in Countries of Concern." As described in further detail below, the Final Rule (1) requires U.S. persons to notify Treasury of certain direct or indirect transactions with "Covered Foreign Persons" (which includes Chinese persons and entities in the PRC, Hong Kong, and Macau) involving specified groups of sensitive technologies and products; and (2) prohibits U.S. persons from engaging, directly or indirectly, in other such transactions. The Final Rule takes effect on January 2, 2025, and will apply to transactions with a completion date on or after January 2, 2025.

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