The scope of prohibited ICTS Transactions include transactions between U.S. persons and a “
person owned by, controlled by, or subject to the jurisdiction or direction of a foreign adversary.” The definition of this category of persons includes the following:
Any person, wherever located, who acts as an agent, representative, employee, or any other capacity at the order, request, direction, or control of a foreign adversary;
A person whose activities are directly or indirectly supervised, directed, controlled, financed or subsidized in whole or in majority part by a foreign adversary;
Any person wherever located who is a citizen or resident of a nation-state controlled by a foreign adversary;
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WHAT: The U.S. Department of Defense (DOD) has established a new voluntary program designed to match critical technology companies with vetted sources of private capital.
WHEN: On December 1, 2020, DOD issued a Request for Comment on the Trusted Capital initiative; comments are due February 1, 2021. On January 13, 2021, DOD formally announced the establishment of the Trusted Capital Digital Marketplace.
WHAT DOES IT MEAN FOR INDUSTRY: Companies in the Defense Industrial Base (DIB) seeking investments may consider this initiative to gain access to vetted sources of capital and potentially lessen the risk of a transaction drawing scrutiny from U.S. regulators in the context of foreign investment reviews and other related processes.
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On December 30, 2020, the Federal Communications Commission’s (FCC or Commission) International Bureau published a Public Notice seeking comment on a set of standardized national security and law enforcement questions (Standard Questions) for applicants whose applications will be referred for foreign ownership review to the Committee for the Assessment of Foreign Participation in the United States Telecommunications Services Sector (the Committee) the inter-agency working group previously referred to as “Team Telecom.” This is the latest step in the Commission’s efforts to modernize the Team Telecom process, and was authorized in the Commission’s Team Telecom Modernization Report and Order.
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For the first time, the FCC will have formal rules governing the process for Team Telecom review of license applications involving foreign ownership. The FCC, however, declined to adopt exclusions for applications that have undergone review by CFIUS, on the grounds that CFIUS review analyzes distinct foreign ownership concerns.
The Federal Communications Commission’s
Report and Order adopting new rules to formally establish the Team Telecom review process are now set to become effective
December 28, 2020, for the aspects of the
Report and Order that do not require OMB approval. As we previously reported, the Commission’s actions follow President Trump’s April 4, 2020, Executive Order (EO 13913) establishing the Committee for the Assessment of Foreign Participation in the United States Telecommunications Services Sector (Committee) to formalize the previously ad hoc Team Telecom review process.