H.R. 3635 — Foreign Adversary Investment Prohibition Act

This section prohibits a Member of Congress from conducting any covered financial transaction that benefits, directly or indirectly, a foreign adversary or an entity owned or operated by a foreign adversary during the Member's term of service. It authorizes the Attorney General to bring civil actions for violations, imposing penalties of $5,000 for a first violation, $10,000 for a second violation, and $15,000 for each subsequent violation. The section defines covered financial transaction to include gifts, loans, investments in securities (as defined in 15 U.S.C. 78c(a)), security futures, commodities (as defined in 7 U.S.C. 1a), or comparable synthetic interests (e.g., derivatives such as options or warrants); foreign adversary to include China (including Hong Kong), Cuba, Iran, North Korea, Russia, and Venezuela under Nicolás Maduro; and Member of Congress to mean a Senator, Representative, Delegate, or Resident Commissioner.