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; insurance company The terms control and insurance company have the meanings given the terms 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 means any of the following: (i) An entity on the list of specially designated nationals and blocked persons maintained by the Office of Foreign Assets Control of the Department of the Treasury (commonly referred to as the SDN list ). (ii) An entity on the Non-SDN Chinese Military-Industrial Complex Companies List— (I) established pursuant to Executive Order 13959 ( 50 U.S.C. 1701 note; relating to addressing the threat from securities investments that finance Communist Chinese military companies), as amended before, on, or after the date of enactment of this Act; and (II) maintained by the Office of Foreign Assets Control of the Department of the Treasury. (iii) A Chinese military company on the list required under section 1260H of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 ( Public Law 116–283 ; 10 U.S.C. 113 note). (iv) An entity on 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 title 15, Code of Federal Regulations. (v) Any entity that is a parent, subsidiary, or affiliate of, or an entity controlled by, an entity described in any of clauses (i) through (iv). (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