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CFIUS recently published a summary of their 2015 CFIUS Annual Report to Congress.  CFIUS is charged with reviewing foreign investments and advising the President on appropriate actions that may be necessary to suspend or prohibit foreign acquisitions, mergers, or takeovers which threaten to impair the national security of the United States. The Annual Report reflects a trend over the last two years that CFIUS is closely scrutinizing more foreign investment transactions and increasingly taking action.…
In August 2015, the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) proposed regulations that would require investment advisers subject to SEC registration to establish anti-money laundering (AML) programs.1 The proposal also adds such investment advisers to the definition of “financial institutions” under the Bank Secrecy Act (BSA), which consequently requires them to report suspicious activity to FinCEN and subjects them to reporting and recordkeeping requirements under the BSA. Background FinCEN has been contemplating…
Investment advisers subject to SEC registration would be affected by proposed regulations from the Financial Crimes Enforcement Network.  The regulations, proposed in August 2015, would require such investment advisers to create anti-money laundering programs as well as to undertake reporting and recordkeeping responsibilities under the Bank Secrecy Act, including filing suspicious activity reports. For more information on this topic, please click here.…
In keeping with the Obama Administration’s efforts to normalize relations with Cuba, the U.S. government is making further amendments to CACR and EAR.  While the overall embargo is still in place, these amendments will lessen the degree of various restrictions.  The effects will be seen in areas including travel, telecommunications and internet-based services, commercial and financial transactions, physical presence and operations, support for the Cuban people, and remittances.  The amendments are being put into effect today,…
Reed Smith attended last Friday’s General Services Administration’s (GSA) public meeting on the proposed Transactional Data Reporting rule. GSA’s proposed rule would eliminate the Price Reduction Clause (PRC) in favor of transactional data reporting. We previously blogged about the parameters of the proposed rule here. GSA held this meeting in the hopes of opening dialogue on this significant change in policy. Throughout the meeting, GSA faced skepticism from interested members of the public,…
On March 25, 2015, the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) and PayPal, Inc. (“PayPal”) agreed to a $7.65 million settlement to settle potential civil liability for 486 apparent violations of various financial sanctions. Between 2009 and 2013, PayPal, a digital payments processor, apparently processed hundreds of transactions in violation of multiple U.S. sanctions programs, including sanctions on Cuba, Iran, Sudan, the Weapons of Mass Destruction Proliferators Sanctions, and the…
The Office of Federal Procurement Policy (“OFPP”) is now under new leadership. Confirmed by the Senate in September, Anne Rung will take on the job of managing the federal government’s acquisition policy. Prior to her most recent appointment, Rung held the position of General Services Administration chief acquisition officer and associate administrator of governmentwide policy. Last month, at the National Contract Management Association, Rung provided a roadmap for her forthcoming tenure. This roadmap gives…
On October 7, 2014, the Department of Labor (“DOL”) published its Final Rule, 79 Fed. Reg. 60633, implementing Executive Order (EO) 13658’s new minimum wage requirements for government contractors and subcontractors. While addressing the nation in the January 2014 State of the Union Address, President Obama stated his intention to issue an EO that would “requir[e] federal contractors to pay their federally-funded employees a fair wage of at least $10.10 an hour.” Shortly…
As the United States and Russia continue to clash over Russia’s actions in the Ukraine, on September 12, the U.S. Treasury Department’s Office of Foreign Assets Control (“OFAC”) issued additional sanctions further restricting designated Russian financial institutions’ access to capital markets, targeting Russian defense entities, and prohibiting exports to Russian entities that have been specifically designated as participants in exploration and production in deepwater, Arctic offshore, or shale projects. As part of these recent changes,…