Treasury Proposes Expansion of Outbound Investment Security Program

The Department of the Treasury has issued a Notice of Proposed Rulemaking (NPR) to broaden the scope of its existing Outbound Investment Security Program (OISP). This proposal aims to implement Subtitle C of the Comprehensive Outbound Investment National Security Act (COINS Act). The OISP, which became effective in January 2025, currently prohibits certain transactions without Treasury exemption and requires notification for others, particularly those involving "countries of concern" in sensitive technology sectors like quantum computing, artificial intelligence, and semiconductors. The NPR introduces new processes, including a procedure for confidential feedback on potentially prohibited transactions and a possible public database of covered foreign persons.