Page 12 - Akerman | 2016 Guide to Doing Business in Florida

CHAPTER 1. FOREIGN INVESTMENT AND GENERAL REGULATION
OF TRADE

Regulation of International Trade and Investment in Florida
Pedro A. Freyre, Esq. | (305) 755-5821 | pedro.freyre@akerman.com
Felicia L. Nowels, Esq. | (850) 425-1661 | felicia.nowels@akerman.com

Federal and Florida Antitrust Laws
Christopher S. Carver, Esq. | (305) 982-5572 | christopher.carver@akerman.com
Lawrence D. Silverman, Esq. | (305) 982-5666 | lawrence.silverman@akerman.com

1.1 Regulation of International Trade and Investment in Florida

Foreign investment in the U.S. and other international commercial activities involving U.S. entities are
subject to a number of U.S. Federal and State statutes and related regulations. The following discussion
outlines some of the more important aspects of these laws which might be relevant to someone
investing in or trading with entities located in the U.S. It is important to note that apart from the topics
discussed below, certain areas of activity deemed to be sensitive to the national interest are subject to
further scrutiny and regulation. These include, for example, mining, power generation, defense, high
technology, radio and television broadcasting, domestic air and marine transportation and fishing.

1.1.1 USA PATRIOT Act

In October 2001, the U.S. adopted the USA PATRIOT Act, 115 Stat. 272 (2001). The Act
expands the powers of law enforcement officials to counter terrorist threats in the U.S. and
abroad, and strengthens criminal laws against terrorism. It requires financial institutions to
establish comprehensive anti-money laundering programs; to strengthen “know your customer”
procedures; and to conduct enhanced due diligence on all accounts belonging to non-U.S.
persons. As a result, when seeking to engage in various financial transactions in the U.S.,
foreign investors in the U.S., including their families and associates are required to be more
forthcoming with information regarding such matters as ownership status and non-affiliation with
certain individuals and organizations deemed to be adverse to the national security of the U.S.
Potential foreign investors can expect requests for extensive financial information and long
delays in the process of establishing relationships with U.S. financial institutions.

1.1.2 Restrictions on Foreign Investment

Under a statutory provision commonly referred to as the Exon-Florio Amendment (§ 721 of Title
VII of the Defense Production Act of 1950, as added by § 5021 of the Omnibus Trade and
Competitiveness Act of 1988), the President of the United States (the “President”) has broad
authority to investigate and prohibit any merger, acquisition or takeover by or with foreign
persons which could result in foreign control of persons engaged in interstate commerce if the
President determines that such merger, acquisition or takeover constitutes a threat to the
national security of the U.S. Congress has indicated that the term “national security” is to be
interpreted broadly and that the application of the Exon-Florio Amendment should not be limited
to any particular industry.

The statute sets out a timetable for investigations of transactions which can take up to 90 days
to complete. The President or his designee has 30 days from the date of receipt of written
notification of a proposed (or completed) transaction to decide whether to undertake a full scale

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