H.R. 3635: Foreign Adversary Investment Prohibition Act

This bill, titled the Foreign Adversary Investment Prohibition Act, aims to restrict Members of Congress from engaging in certain financial transactions that could benefit foreign adversaries of the United States during their term in office. The key points of the bill outline various prohibitions and enforcement mechanisms regarding these financial interactions.

Prohibitions on Financial Transactions

The bill states that:

• Members of Congress cannot conduct any "covered financial transaction" that directly or indirectly benefits a foreign adversary or an entity that is owned or operated by a foreign adversary.

Definition of Covered Financial Transactions

"Covered financial transactions" are defined to include, but are not limited to, the following:

• Any gifts, subscriptions, loans, advances, or deposits of money or value.
• Investments in securities, security futures, or commodities.
• Economic interests acquired through synthetic means, such as derivatives, options, or warrants.

Definition of Foreign Adversaries

The bill specifies the countries that qualify as "foreign adversaries," which include:

• The People's Republic of China, including Hong Kong.
• The Republic of Cuba.
• The Islamic Republic of Iran.
• The Democratic People's Republic of Korea (North Korea).
• The Russian Federation.
• The Bolivarian Republic of Venezuela under Nicolás Maduro's regime.

Enforcement Mechanisms

The bill authorizes the Attorney General to enforce the prohibition through civil actions by:

• Bringing a lawsuit against any Member of Congress believed to be violating the prohibitions.
• If a court determines there has been a violation, the Member may face civil penalties which would be structured as follows:
• $5,000 for the first violation.
• $10,000 for a second violation.
• $15,000 for each subsequent violation after the second.

Definitions of Members of Congress

The term "Member of Congress" includes:

• Senators and Representatives.
• Delegates and Resident Commissioners in Congress.

Overview

This bill seeks to mitigate the risk of conflicts of interest and undue influence from foreign adversaries on U.S. legislators by prohibiting specific financial transactions during their terms of service.

Relevant Companies

None found.