American Investment Accountability Act
The American Investment Accountability Act would create a formal, ongoing federal monitoring and reporting regime for United States investments in entities that are controlled by foreign adversaries. It defines a broad set of terms (countries of concern, covered United States businesses, covered entities, sanctions lists, offshore financial centers) and requires the Executive Branch to regularly report to Congress on both direct and portfolio investments involving these entities. The reporting is split among the Department of Commerce (direct investments by US persons in countries of concern and in covered entities, including offshore center activity), the Department of the Treasury (portfolio investments and related activity), and the Securities and Exchange Commission (corporate transactions and relationships involving covered entities). The first set of reports is due one year after enactment, with subsequent reports every 90 days. The bill is focused on transparency and oversight, potentially laying groundwork for future restrictions, but it does not itself impose new investment prohibitions or penalties. Key terms are broad: “countries of concern” include China (PRC, Hong Kong, Macau), Russia, Iran, North Korea, Cuba, and Venezuela; “covered entities” can be entities with significant ties to these countries (including government control or influence), or entities with substantial ownership by sanctions-listed or country-of-concern interests; “offshore financial centers” are places through which US-origin investments to countries of concern are channeled at large volumes.
Key Points
- 1Scope and definitions: The act creates a broad framework to identify and monitor investments tied to foreign adversaries, with detailed definitions for “country of concern,” “covered United States business,” and “covered entity,” plus references to a set of sanctions lists and offshore financial centers.
- 2Reporting by Commerce: Within one year of enactment and every 90 days after, the Secretary of Commerce must report on (a) direct investments by US persons in countries of concern and in covered entities (disaggregated by sector and state, including offshore center activity), and (b) the number of direct investments above specified thresholds ($5 million in a single transaction or $10 million in aggregate).
- 3Reporting by Treasury: Within one year and every 90 days after, the Secretary of the Treasury must report on (a) portfolio investments in countries of concern and in covered entities (disaggregated by sector and state, including offshore center activity), and (b) counts/values of portfolio investments above thresholds ($10 million single transaction or $25 million aggregate), plus the value of portfolio investments in initial public offerings and secondary trading of covered entity securities.
- 4Reporting by SEC: Within one year and every 90 days after, the SEC must report on the corporate relationships and transactions involving covered entities and covered United States businesses, including spin-offs, joint ventures, mergers/acquisitions, material expansion investments, and direct investments in countries of concern above specified thresholds.
- 5Periods and cadence: The initial reports cover the 1-year period preceding submission; subsequent reports cover the 90-day window preceding submission, creating a rolling, quarterly-to-triannual cadence depending on the section.