Outbound Investment Rule Still Active Despite New Law, Treasury Says
The Treasury Department’s existing outbound investment rule will remain in effect until the agency issues new regulations to implement a newly enacted law on the matter, Treasury said in an updated FAQ Dec. 23.
Sign up for a free preview to unlock the rest of this article
Export Compliance Daily combines U.S. export control news, foreign border import regulation and policy developments into a single daily information service that reliably informs its trade professional readers about important current issues affecting their operations.
The Comprehensive Outbound Investment National Security Act, or Coins Act, which is included in the FY 2026 National Defense Authorization Act that President Donald Trump signed into law Dec. 18, gives Treasury 450 days, or until March 13, 2027, to issue the new regulations. “In the meantime, parties should continue to act in full compliance” with the current regulations, “including submitting notification of any notifiable transactions and refraining from engaging in any prohibited transactions,” the 29-page FAQ says.
The Coins Act is intended to codify Treasury’s restrictions on outbound investment in China and other “countries of concern” (see 2512080048). The agency’s existing rule took effect in early January (see 2410280043).
The updated FAQ also contains a new section answering five questions about how the existing rule treats publicly traded securities.