II 

118TH CONGRESS 

1ST SESSION S. 3476 

To monitor United States investments in entities that are controlled by 

foreign adversaries, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

DECEMBER 12, 2023 

Mr. RUBIO (for himself and Mr. SCOTT of Florida) introduced the following 

bill; which was read twice and referred to the Committee on Banking, 

Housing, and Urban Affairs 

A BILL 

To monitor United States investments in entities that are 

controlled by foreign adversaries, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘American Investment 

5 Accountability Act’’. 

6 SEC. 2. REPORTING REQUIREMENTS. 

7 (a) DEFINITIONS.—In this section: 

8 (1) APPROPRIATE CONGRESSIONAL COMMIT9 TEES.—The term ‘‘appropriate congressional com10 mittees’’ means— 


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1 (A) the Committee on Armed Services of 

2 the Senate; 

3 (B) the Committee on Banking, Housing, 

4 and Urban Affairs of the Senate; 

5 (C) the Committee on Finance of the Sen6 ate; 

7 (D) the Committee on Foreign Relations of 

8 the Senate; 

9 (E) the Select Committee on Intelligence 

10 of the Senate; 

11 (F) the Committee on Armed Services of 

12 the House of Representatives; 

13 (G) the Committee on Financial Services 

14 of the House of Representatives; 

15 (H) the Committee on Foreign Affairs of 

16 the House of Representatives; 

17 (I) the Permanent Select Committee on In18 telligence of the House of Representatives; and 

19 (J) the Committee on Ways and Means of 

20 the House of Representatives. 

21 (2) COUNTRY OF CONCERN.—The term ‘‘coun22 try of concern’’— 

23 (A) means a country the government of 

24 which is a foreign adversary, as defined in sec25 tion 8(c)(2) of the Secure and Trusted CommuVerDate Sep 11 2014 01:42 Dec 29, 2023 Jkt 049200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S3476.IS S3476

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1 nications Networks Act of 2019 (47 U.S.C. 

2 1607(c)(2)); and 

3 (B) includes— 

4 (i) the People’s Republic of China (in5 cluding the Special Administrative Regions 

6 of the People’s Republic of China, includ7 ing Hong Kong and Macau); 

8 (ii) the Russian Federation; 

9 (iii) Iran; 

10 (iv) North Korea; 

11 (v) Cuba; and 

12 (vi) Venezuela. 

13 (3) COVERED UNITED STATES BUSINESS.—The 

14 term ‘‘covered United States business’’ means any 

15 entity that— 

16 (A) is— 

17 (i) a corporation, partnership, or 

18 other association organized under the laws 

19 of the United States or of any State, the 

20 District of Columbia, or any common21 wealth, territory, or possession of the 

22 United States; or 

23 (ii) a foreign corporation, partnership, 

24 or other association, not less than 25 per25 cent of the ownership interest in which is 


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1 held by United States citizens or entities 

2 described in clause (i); and 

3 (B) is not a small business concern (as de4 fined in section 3 of the Small Business Act (15 

5 U.S.C. 632)). 

6 (4) COVERED ENTITY.—The term ‘‘covered en7 tity’’ means any entity— 

8 (A) that— 

9 (i) has its headquarters or principal 

10 place of business in a country of concern; 

11 (ii) is organized under the laws of, or 

12 otherwise subject to the jurisdiction of, a 

13 country of concern; 

14 (iii) is owned by the government of a 

15 country of concern; 

16 (iv) is under the direct or indirect 

17 control of such a government; 

18 (v) is subject to the influence of such 

19 a government; or 

20 (vi) is subject to intimidation by a 

21 public official of such a government; 

22 (B) not less than 25 percent of the owner23 ship interest in which is held, in the aggregate, 

24 directly or indirectly, by not less than 1 enti25 ty— 


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1 (i) included on a sanctions list; or 

2 (ii) owned or controlled by the govern3 ment of a country of concern; 

4 (C) that has a subsidiary or parent organi5 zation that— 

6 (i) has its headquarters or principal 

7 place of business in a country of concern; 

8 or 

9 (ii) is organized under the laws of, or 

10 otherwise subject to the jurisdiction of, a 

11 country of concern; or 

12 (D) that the Secretary of the Treasury 

13 considers to have an interest in property or in14 terests in property of an entity in which not 

15 less than 25 percent of the ownership interest 

16 is held, in the aggregate, directly or indirectly, 

17 by not less than 1 entity included on a sanc18 tions list. 

19 (5) DIRECT INVESTMENT.—The term ‘‘direct 

20 investment’’ has the meaning given that term in sec21 tion 3 of the International Investment and Trade in 

22 Services Survey Act (22 U.S.C. 3102). 

23 (6) OFFSHORE FINANCIAL CENTER.—The term 

24 ‘‘offshore financial center’’ means any country, spe25 cial administrative region, territory, or jurisdiction 


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1 outside the United States that acts as an inter2 mediary for investments originating in the United 

3 States and destined for countries of concern, 

4 through which, on an annual basis— 

5 (A) more than $100,000,000 in direct in6 vestments in countries of concern or covered en7 tities are made; or 

8 (B) more than $500,000,000 in portfolio 

9 investments in countries of concern or covered 

10 entities are made. 

11 (7) PORTFOLIO INVESTMENT.—The term ‘‘port12 folio investment’’ has the meaning given that term 

13 in section 3 of the International Investment and 

14 Trade in Services Survey Act (22 U.S.C. 3102). 

15 (8) SANCTIONS LIST.—The term ‘‘sanctions 

16 list’’ means— 

17 (A) the Entity List maintained by the Bu18 reau of Industry and Security of the Depart19 ment of Commerce and set forth in Supplement 

20 No. 4 to part 744 of title 15, Code of Federal 

21 Regulations; 

22 (B) the list of specially designated nation23 als and blocked persons maintained by the Of24 fice of Foreign Assets Control of the DepartVerDate Sep 11 2014 01:42 Dec 29, 2023 Jkt 049200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S3476.IS S3476

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1 ment of the Treasury (commonly known as the 

2 ‘‘SDN list’’); 

3 (C) the list of foreign financial institutions 

4 subject to correspondent account or payable5 through account sanctions maintained by the 

6 Office of Foreign Assets Control (commonly 

7 known as the ‘‘CAPTA List’’); 

8 (D) the list of persons operating in sectors 

9 of the Russian economy identified by the Sec10 retary of the Treasury pursuant to Executive 

11 Order 13662 (commonly known as the ‘‘Sec12 toral Sanctions Identifications List’’); or 

13 (E) the Non-SDN Chinese Military Indus14 trial Complex List maintained by the Office of 

15 Foreign Assets Control. 

16 (9) UNITED STATES.—The term ‘‘United 

17 States’’ means the 50 States, the District of Colum18 bia, the Commonwealth of Puerto Rico, Guam, the 

19 Virgin Islands, American Samoa, Wake Island, Mid20 way Islands, Kingman Reef, Johnston Atoll, the 

21 Northern Mariana Islands, and any other territory 

22 or possession of the United States. 

23 (10) UNITED STATES PERSON.—The term 

24 ‘‘United States person’’ has the meaning given that 


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1 term in section 3 of the International Investment 

2 and Trade in Services Survey Act (22 U.S.C. 3102). 

3 (b) REPORT BY SECRETARY OF COMMERCE.—Not 

4 later than 1 year after the date of the enactment of this 

5 Act, and every 90 days thereafter, the Secretary of Com6 merce shall submit to the appropriate congressional com7 mittees a report that identifies, for the period specified 

8 in subsection (e)— 

9 (1) the value of direct investments by United 

10 States persons in countries of concern, which shall— 

11 (A) be disaggregated by sector and by the 

12 State in which the investment originated; and 

13 (B) account for investment occurring 

14 through offshore financial centers; 

15 (2) the value of direct investments by United 

16 States persons in covered entities, which shall— 

17 (A) be disaggregated by sector; and 

18 (B) account for investment occurring 

19 through offshore financial centers; and 

20 (3) the number of direct investments by United 

21 States persons in countries of concern in excess of— 

22 (A) $5,000,000 in a single transaction; or 

23 (B) $10,000,000 in the aggregate. 

24 (c) REPORT BY SECRETARY OF THE TREASURY.— 

25 Not later than 1 year after the date of the enactment of 


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1 this Act, and every 90 days thereafter, the Secretary of 

2 the Treasury shall submit to the appropriate congressional 

3 committees a report that identifies, for the period specified 

4 in subsection (e)— 

5 (1) the value of portfolio investments by United 

6 States persons in countries of concern, which shall— 

7 (A) be disaggregated by sector and by the 

8 State in which the investment originated; and 

9 (B) account for investment occurring 

10 through offshore financial centers; 

11 (2) the value of portfolio investments by United 

12 States persons in covered entities, which shall— 

13 (A) be disaggregated by sector; and 

14 (B) account for investment occurring 

15 through offshore financial centers; 

16 (3) the number of portfolio investments by 

17 United States persons in countries of concern in ex18 cess of— 

19 (A) $10,000,000 in a single transaction; or 

20 (B) $25,000,000 in the aggregate; and 

21 (4) the value of portfolio investments by United 

22 States persons in initial offerings for sale to the 

23 public of common equity securities of covered enti24 ties and secondary market trading in such securities. 


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1 (d) REPORT BY SECURITIES AND EXCHANGE COM2 MISSION.—Not later than 1 year after the date of the en3 actment of this Act, and every 90 days thereafter, the Se4 curities and Exchange Commission shall submit to the ap5 propriate congressional committees a report that, for the 

6 period specified in subsection (e), identifies the following: 

7 (1) Each instance in which a covered United 

8 States business spun off a separate entity that sub9 sequently operated in a country of concern. 

10 (2) Each joint venture entered into between a 

11 covered United States business and a covered entity. 

12 (3) Each instance in which a covered United 

13 States business merged with, acquired, or was ac14 quired by a covered entity. 

15 (4) Each instance in which the value of ex16 panded operations of a covered United States busi17 ness in a country of concern exceeds— 

18 (A) $5,000,000 in a single transaction; or 

19 (B) $10,000,000 in the aggregate. 

20 (5) Each instance in which a covered United 

21 States business made a direct investment in a coun22 try of concern. 

23 (e) PERIOD SPECIFIED.—The period specified in this 

24 subsection is— 


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1 (1) in the case of the first report required by 

2 subsection (b), (c), or (d), the 1-year period pre3 ceding submission of the report; and 

4 (2) in the case of any subsequent report re5 quired by any such subsection, the 90-day period 

6 preceding submission of the report. 

Æ 


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