The Committee on Foreign Investment in the United States has issued its final regulations governing security reviews of foreign investments in domestic businesses.

The final rules, published Nov. 14, follow the issuance of proposed regulations back in April. They take effect 30 days after publication in the Federal Register and will apply to covered transactions entered into after the effective date.

The rules implement section 721 of the Defense Production Act of 1950, as amended by the Foreign Investment and National Security Act of 2007, which provides for a CFIUS review of a covered transaction to determine the effect of the transaction on national security and to address any threat posed by such transaction.

The regulations “in large part mirror the April proposed regulations and codify existing CFIUS practice and procedures, and add certain clarifications and examples in response to public comments received on the proposed regulations,” according to an alert by the law firm Morrison & Foerster.

“The effect of FINSA and the final regulations is likely to be that a greater number of transactions will be notified to CFIUS, and such transactions, in particular those involving foreign government interests and critical infrastructure, will be subject to enhanced scrutiny,” the authors write.