1. Short title This Act may be cited as the American Financial Markets Integrity and Security Act . 2. Prohibitions relating to certain Communist Chinese military companies (a) Definitions In this section: (1) Commission The term Commission means the Securities and Exchange Commission. (2) Control The term control has the meaning given the term in section 2(a) of the Investment Company Act of 1940 ( 15 U.S.C. 80a–2(a) ). (3) Covered entity (A) In general The term covered entity — (i) means an entity on— (I) the list of Communist Chinese military companies required by section 1237(b) of the Strom Thurmond National Defense Authorization Act for Fiscal Year 1999 ( Public Law 105–261 ; 50 U.S.C. 1701 note); or (II) the entity list maintained by the Bureau of Industry and Security of the Department of Commerce and set forth in Supplement No. 4 to part 744 of the title 15, Code of Federal Regulations; and (ii) includes a parent, subsidiary, or affiliate of, or an entity controlled by, an entity described in clause (i). (B) Grace period For the purposes of this Act, and the amendments made by this Act, an entity shall be considered to be a covered entity beginning on the date that is 1 year after the date on which the entity first qualifies under the applicable provision of subparagraph (A). (4) Exchange; security The terms exchange and security have the meanings given those terms in section 3(a) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78c(a) ). (5) Insurance company The term insurance company has the meaning given the term in section 2(a) of the Investment Company Act of 1940 ( 15 U.S.C. 80a–2(a) ). (b) Prohibitions (1) Listing on exchange Beginning on the date that is 1 year after the date of enactment of this Act, the Commission shall prohibit a covered entity from offering to sell or selling securities issued by the covered entity, including pursuant to an exemption to section 5 of the Securities Act of 1933 ( 15 U.S.C. 77e ). (2) Investments