What are the legal requirements for foreign investment?
Foreign investment in Washington state is governed by both federal and state law. Federal law requires investors to submit an application for a purchase of foreign securities to the Securities and Exchange Commission (SEC). This application must provide detailed information about the investors’ background, financial resources and any past investments. State law establishes the Washington State Department of Financial Institutions (DFI) as the regulator for foreign investments. All foreign investors must apply with the DFI for registration prior to executing a transaction. At the federal level, foreign investments must also comply with anti-money laundering laws. These laws protect investors from fraud and other financial risks. The investor must also register with the Financial Industry Regulatory Authority (FINRA). FINRA requires the investor to submit a notice and consent to FINRA’s process for the registration. At the state level, all foreign investments must be registered with DFI. DFI reviews the investor’s background and financial resources before it will approve the investment. The investment must meet all of DFI’s requirements, including ensuring that all foreign investors understand the risks of foreign investments. When investing in Washington state, foreign investors must adhere to the legal requirements established by both federal and state law. Investors must apply for SEC approval and register with FINRA and DFI before investing. These regulations help protect investors from fraud and other financial risks.
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