The U.S. Department of the Treasury announced that in July, it issued its first civil penalty under the Outbound Investment Security Program (OISP).
According to the Treasury Department, it penalized Amidi, LLC $200,000 for failing to submit a required notification of an investment by its controlled foreign entity into a Chinese Artificial Intelligence company.
Under the OISP companies are required to notify the Treasury Department of certain types of investments. The program also prohibits certain other investments by U.S. persons into entities in or connected to the People’s Republic of China, the Special Administrative Region of Hong Kong, and the Special Administrative Region of Macau that are engaged in certain activities in the quantum computing, artificial intelligence, and semiconductor sectors. Additionally, U.S. citizens are required to file a notification regarding any transaction by its controlled foreign entity, and to take all reasonable steps to prohibit and prevent transactions by its controlled foreign entity if the transaction would be prohibited.
Treasury officials said Amidi’s subsidiary, a Chinese fund, invested nearly $92,500 in Shanghai Qiongche Intelligent Technology Company Limited. Amidi is also the parent company that does business as Plug and Play Tech Center. Shanghai Qiongche is a private Chinese company that develops artificial intelligence, robotics and embodied intelligence.
“Today’s penalty announcement under the Outbound Investment Security Program underscores Treasury’s commitment to safeguarding U.S. national security through robust investment security measures that preserve America’s technological leadership and advance President Trump’s America First Investment Policy,” Treasury Secretary Scott Bessent said.
Treasury identified the transaction as part of its regular and ongoing compliance and market monitoring efforts.
“The Outbound Investment Security Program is an important tool aimed at addressing the advancement of key technologies by countries of concern that could pose risks to U.S. national security,” Assistant Treasury Secretary for Investment Security Christopher Pilkerton said. “We will continue to ensure that investors comply with the requirements established under the program.”