American Investment Accountability Act
Summary
The American Investment Accountability Act aims to monitor and report on United States investments in entities controlled by foreign adversaries. It mandates reports from the Secretaries of Commerce and Treasury, and the SEC, to congressional committees. These reports will detail direct and portfolio investments, instances of business activities with covered entities, and other financial interactions.
Expected Effects
The Act will increase transparency regarding U.S. investments in countries of concern and covered entities. This increased scrutiny may deter certain investments and influence business decisions. It could also lead to policy changes based on the reported data.
Potential Benefits
- Enhanced transparency of U.S. investments in foreign adversaries.
- Improved congressional oversight of financial flows.
- Potential for more informed policy decisions regarding economic relations with countries of concern.
- May deter investments that could compromise national security.
- Could lead to stronger enforcement of sanctions and export controls.
Most Benefited Areas:
Potential Disadvantages
- Increased compliance costs for U.S. businesses.
- Potential for retaliatory measures from countries of concern.
- Possible chilling effect on legitimate international investments.
- The definition of 'covered entity' may be overly broad, capturing unintended targets.
- Reporting requirements may be burdensome for government agencies.
Most Disadvantaged Areas:
Constitutional Alignment
The bill aligns with the Constitution's broad authority over foreign commerce (Article I, Section 8, Clause 3) and national security. The reporting requirements do not appear to infringe on individual liberties or rights. The Act empowers Congress to oversee and regulate economic interactions with foreign entities, a power implicitly granted by the Constitution.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).