National Security Advisory & CFIUS Services

What is CFIUS?

CFIUS is a multi-agency government body—formed in 1975 and chaired by the U.S. Secretary of the Treasury—charged with reviewing certain business acquisition transactions that involve a foreign entity.

U.S. organizations steadily remain an attractive option for foreign direct investments, making it imperative that they understand the additional national security regulations and considerations initiated by the United States government. This may accompany deals that result in foreign ownership, control or interest (FOCI) or, in circumstances when the U.S. company has critical technology, infrastructure, and data (TID), with as little as 10% foreign investment.

What is National Security Advisory?

In light of this evolving risk landscape, mitigating national security risk through foreign investment is top of mind for U.S. government agencies such as the Committee on Foreign Investment in the United States (CFIUS), the Committee for the Assessment of Foreign Participation in the United States Telecommunications Services Sector (formerly known as Team Telecom) and Defense Counterintelligence and Security Agency (DCSA), among others.  Penalties for not filing and for non-compliance throughout the foreign investment review process can be severe and jeopardize the success of the investment.

How EisnerAmper Can Help with CFIUS Compliance

EisnerAmper’s National Security Advisory Practice helps foreign and domestic organizations navigate the complexities of the U.S. national security landscape, especially when mitigation or a national security agreement is required. Our team has a proven track record of success with several U.S. Government Agencies and has remained at the forefront of developing thought leadership relating to emerging risks and changes in regulations. 

We provide Strategic National Security Advisory Services and Post-Close Transaction, independent, and third-party services including serving a Board of Observers to assist your compliance with national security related obligations. Our proactive services are designed to be clearly auditable and measurable; and to effectively address potential risk points.

Our National Security Practice has significant expertise in the following areas:

Pre-Filing Transaction Risk Assessment

This includes risk assessments of an organization’s operations, subsidiaries, supply chain, corporate security policies and procedures, and information technology. It also includes development controls over customer data, critical technology, financial systems, vendor management program, and internal IT architecture. The risk assessment considers the buyer’s interests, structure, business lines, and any known government relationships.

Readiness for CFIUS Review

Readiness entails developing or revising policies and procedures such as Data Security, Communication & Access, and Security Compliance policies surrounding each mitigation or National Security Agreement requirement.

This includes enhanced applications and systems, enhanced monitoring of access and access privileges, and enhanced protocols like cybersecurity and testing. To stay accountable and ready, we provide comprehensive training modules for key stakeholders.

Third-Party Audit/Third-Party Advisor

This entails assisting our clients in complying with third-party audit requirements through development of a comprehensive, yet balanced approach with audit programs consistently achieving U.S. government approval. Through our TPA experience, we developed ways to make the CFIUS reporting process more efficient and accurate for transaction parties. We work closely with transaction parties’ stakeholders to promote a culture of compliance. As necessary, we advise the transaction parties on best practices to remediate gaps or compliance-related issues.

Ongoing Third-Party Monitoring to Maintain Compliance

We provide ongoing monitoring of transaction parties’ compliance with their respective obligations under the Mitigation or National Security Agreement by being embedded into the culture of compliance and guiding each step of the way. From providing advice on best practices to guidance in the development of policies and procedures, our goal is to provide high-quality third-party monitoring services, designed to expedite a smooth, clean third-party audit or eliminate the need for a third-party audit all together.