PRC Military and Human Rights Capital Markets Sanctions Act of 2024

senate

house

president

Legislation Details

Prohibits the purchase of certain securities from specified covered entities.
Defines “covered entity” to include:
- Entities on the Specially Designated Nationals and Blocked Persons list.
- Entities on the Non-SDN Chinese Military-Industrial Complex Companies List.
- Chinese military companies listed by the Department of Defense.
- Chinese entities subject to sanctions under the Global Magnitsky Human Rights Accountability Act.
- Chinese entities with goods subject to withhold release orders under the Tariff Act.
- Chinese entities on the Entity List maintained by the Bureau of Industry and Security.
- Chinese entities listed under the Uyghur Forced Labor Prevention Act.
- Chinese entities on the Military End-User List.
Defines “United States person” to include citizens, lawful permanent residents, and entities organized under U.S. laws.
Requires the President to compile and maintain a public list of covered entities within 90 days of enactment.
Prohibits U.S. persons from purchasing, selling, or holding:
- Publicly traded securities issued by covered entities.
- Derivative securities of publicly traded securities issued by covered entities.
- Securities providing investment exposure to publicly traded securities issued by covered entities.
Mandates divestment of prohibited securities within specified timeframes.
Allows for facilitating divestment transactions without penalties.
Establishes penalties for violations, including:
- Civil penalties up to $250,000 or double the transaction amount.
- Criminal penalties for willful violations, including fines up to $1,000,000 and imprisonment for up to 20 years.

Prohibits the purchase of certain securities from specified covered entities.
Defines “covered entity” to include:
- Entities on the Specially Designated Nationals and Blocked Persons list.
- Entities on the Non-SDN Chinese Military-Industrial Complex Companies List.
- Chinese military companies listed by the Department of Defense.
- Chinese entities subject to sanctions under the Global Magnitsky Human Rights Accountability Act.
- Chinese entities with goods subject to withhold release orders under the Tariff Act.
- Chinese entities on the Entity List maintained by the Bureau of Industry and Security.
- Chinese entities listed under the Uyghur Forced Labor Prevention Act.
- Chinese entities on the Military End-User List.
Defines “United States person” to include citizens, lawful permanent residents, and entities organized under U.S. laws.
Requires the President to compile and maintain a public list of covered entities within 90 days of enactment.
Prohibits U.S. persons from purchasing, selling, or holding:
- Publicly traded securities issued by covered entities.
- Derivative securities of publicly traded securities issued by covered entities.
- Securities providing investment exposure to publicly traded securities issued by covered entities.
Mandates divestment of prohibited securities within specified timeframes.
Allows for facilitating divestment transactions without penalties.
Establishes penalties for violations, including:
- Civil penalties up to $250,000 or double the transaction amount.
- Criminal penalties for willful violations, including fines up to $1,000,000 and imprisonment for up to 20 years.