GITBOOK-5: change request with no subject merged in GitBook

publications/SUMMARY.md

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 * [How Radiofrequency Interference Threatens Space Missions](how-radiofrequency-interference-threatens-space-missions.md)
 * [How Electromagnetic Interference Impacts Space Missions](how-electromagnetic-interference-impacts-space-missions.md)
 * [Space Industry Cybersecurity with Zero Trust Adoption](space-industry-cybersecurity-with-zero-trust-adoption.md)
+* [Understanding FOCI and Its Implications](understanding-foci-and-its-implications.md)

publications/understanding-foci-and-its-implications.md

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+---
+description: A Guide for U.S. Businesses
+coverY: 0
+---
+
+# Understanding FOCI and Its Implications
+
+Foreign investments play a crucial role in the vitality of the U.S. economy. As globalization continues to intertwine economies, understanding the implications of foreign ownership, control, or influence (FOCI) on national security becomes paramount for U.S. businesses.
+
+### **What is FOCI?**
+
+FOCI stands for Foreign Ownership, Control, or Influence. It refers to situations where foreign entities have a significant say or influence in a U.S. company. This influence can affect the company's eligibility to access or handle classified U.S. information, known as a Facility Security Clearance (FCL).
+
+### **Why is it Important?**
+
+While the U.S. government promotes foreign investments, it also shoulders the responsibility of protecting national security. To achieve this balance, the National Industrial Security Program Operating Manual (NISPOM) and DoDM 5220.22, Volume 3 lay down guidelines to ensure that U.S. classified and export-controlled information remains shielded from unauthorized foreign access.
+
+### **Determining FOCI**
+
+Companies can identify their FOCI status by submitting the Standard Form (SF) 328. This 10-question form helps pinpoint the presence of foreign influence. Any affirmative answer requires further documentation, ensuring a comprehensive assessment.
+
+### **Factors Considered**
+
+The Defense Counterintelligence and Security Agency (DCSA) evaluates companies based on seven primary factors. These include records of espionage, unauthorized technology transfers, the sensitivity of accessed information, compliance with U.S. laws, and the nature of bilateral/multilateral agreements, among others.
+
+### **Mitigating FOCI**
+
+Companies under FOCI must implement measures to mitigate potential risks. Depending on the extent of foreign ownership or control, different mitigation instruments come into play:
+
+#### **Minority Ownership**:
+
+* **Board Resolution (BR)**: Used when foreign influence is limited. This legally binding acknowledgment ensures that foreign entities can't access classified information.
+* **Security Control Agreement (SCA)**: Applicable when foreign interests can appoint board members. It ensures that while the foreign entity can voice business concerns, they can't access classified data.
+
+#### **Majority Ownership or Control**:
+
+* **Special Security Agreement (SSA)**: For companies majorly owned or controlled by foreign entities. This agreement restricts classified information access but allows foreign entities to influence business decisions.
+* **Proxy Agreement (PA)**: Here, foreign owners give voting rights to U.S. citizen proxy holders, ensuring a barrier between classified information and foreign influence.
+* **Voting Trust Agreement (VTA)**: Foreign entities transfer the company's legal title to U.S. citizen trustees, further ensuring protection against foreign influence.
+
+Additionally, a **Government Security Committee (GSC)** is essential. This group, comprising U.S. citizens, ensures that companies remain compliant with FOCI agreements.
+
+### **Conclusion**
+
+While foreign investments drive economic growth, understanding and managing FOCI is critical for businesses operating in sectors sensitive to national security. By being aware of FOCI implications and mitigation measures, U.S. companies can navigate global markets while ensuring national security interests remain uncompromised.