BEA Releases Final Rule on Direct Investment Surveys

November 21, 2016

The U.S. Bureau of Economic Analysis (BEA) has released the final rule amending the reporting requirements for the BE-13, Survey of New Foreign Direct Investment in the United States, and amending reporting requirements for certain private funds on BEA's surveys of foreign direct investment in the United States. 

BEA, an agency of the U.S. Department of Commerce, monitors inbound and outbound U.S. investments as part of its regulatory mission of tracking international commerce.  Importantly, both direct and indirect ownership interests in cross-border investments can trigger mandatory BEA regulatory compliance obligations.  BEA compliance includes both periodic reporting as well as transaction based reporting for U.S. businesses that have between 10% and 100% foreign ownership.  Failure to comply with BEA reporting obligations is subject to both civil and criminal penalties.

In cooperation with the U.S. Treasury Department, BEA will now instruct reporters of investments in private funds that meet the definition of "direct investment," but display characteristics of portfolio investment, to report through the Treasury International Capital (TIC) reporting system and not to use BEA's direct investment surveys.  Direct investment in operating companies continues to be reported to BEA. 

The final rule also includes modifications to the questionnaire design and data items collected on the BE-13 survey specifically, and clarifies the private fund reporting requirements language.

 

For more information on how your reporting obligations may be affected, please contact Porzio Compliance Services.

PorzioCS is dedicated to simplifying extensive compliance requirements, streamlining the filing process and significantly decreasing the individual organization's reporting burden and mitigating risk.  Our team guides businesses on the implementation of systematic data collection, analyses  and retention policies, and tailors data collection and reporting processes in order to ensure each client's compliance.