Foreign Investment Triggers BEA Reporting: Is Your Company Compliant with U.S. Reporting Requirements?
What is the BEA?
The Bureau of Economic Analysis (BEA) compiles official statistics on foreign direct investment (FDI)—both inbound (foreign ownership of U.S. businesses) and outbound (U.S. ownership of foreign businesses). Those numbers come from mandatory surveys in 15 C.F.R. Part 801 (e.g., BE‑13, BE‑15, BE‑12, BE‑10), and the government has been actively tuning, publicizing, and correcting these rules—then expecting companies to file on time, with penalties for noncompliance.
Who Must Report?
The BEA requires any U.S. business enterprise, except certain private funds, in which 1) at least 10% of the U.S. business has been acquired by a foreign entity, and 2) the acquisition cost greater than $40 million, to report the acquisition, expansion, or creation of its business in the U.S. Similarly, the U.S. entity with a foreign affiliate must report its outbound investment to the BEA.
Penalties for Not Reporting
Although the BEA rarely makes headlines for high-profile enforcement cases, BEA surveys are not optional. U.S. companies that fall within the scope of these rules, and fail to report to the BEA, are subject to a civil penalty under 22 U.S.C 3105. Additionally, a willful failure to report could lead to both a monetary fine and, if an individual, imprisonment for up to one year (See Forms BE-13A, -13C, -13D, -10A) The monetary fines range between $5,761 to $5,911 for negligent failure to furnish information, and between $57,617 to $59,114 for the willful failure to furnish information.
Reports to the BEA generate the backbone of official FDI statistics that investors, journalists, […]
