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[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 667 Introduced in Senate (IS)]

<DOC>

116th CONGRESS
  1st Session
                                 S. 667

To impose sanctions with respect to the Democratic People's Republic of 
                     Korea, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             March 5, 2019

 Mr. Van Hollen (for himself and Mr. Toomey) introduced the following 
 bill; which was read twice and referred to the Committee on Banking, 
                       Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL

 
To impose sanctions with respect to the Democratic People's Republic of 
                     Korea, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Otto Warmbier 
Banking Restrictions Involving North Korea Act of 2019''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
             TITLE I--SANCTIONS WITH RESPECT TO NORTH KOREA

Sec. 101. Findings.
Sec. 102. Sense of Congress.
Sec. 103. Definitions.
         Subtitle A--Expansion of Sanctions and Related Matters

Sec. 111. Sanctions with respect to foreign financial institutions that 
                            provide financial services to certain 
                            sanctioned persons.
Sec. 112. Codification of Executive orders relating to sanctions with 
                            respect to North Korea.
Sec. 113. Expansion of mandatory designations under North Korea 
                            Sanctions and Policy Enhancement Act of 
                            2016.
Sec. 114. Extension of applicability period of proliferation prevention 
                            sanctions.
Sec. 115. Sense of Congress on identification and blocking of property 
                            of North Korean officials.
Sec. 116. Modification of report on implementation of United Nations 
                            Security Council resolutions by other 
                            governments.
Sec. 117. Report on use by the Government of North Korea of beneficial 
                            ownership rules to access the international 
                            financial system.
             Subtitle B--Congressional Review and Oversight

Sec. 121. Notification of termination or suspension of sanctions.
Sec. 122. Reports on certain licensing actions.
Sec. 123. Briefings on implementation and enforcement of sanctions.
Sec. 124. Report on financial networks and financial methods of the 
                            Government of North Korea.
Sec. 125. Report on countries of concern with respect to transshipment, 
                            reexportation, or diversion of certain 
                            items to North Korea.
                      Subtitle C--General Matters

Sec. 131. Rulemaking.
Sec. 132. Authority to consolidate reports.
Sec. 133. Waivers, exemptions, and termination.
Sec. 134. Procedures for review of classified information.
Sec. 135. Briefing on proliferation financing.
                 TITLE II--DIVESTMENT FROM NORTH KOREA

Sec. 201. Authority of State and local governments to divest from 
                            companies that invest in North Korea.
Sec. 202. Safe harbor for changes of investment policies by asset 
                            managers.
Sec. 203. Sense of Congress regarding certain ERISA plan investments.
Sec. 204. Rule of construction.
       TITLE III--FINANCIAL INDUSTRY GUIDANCE TO HALT TRAFFICKING

Sec. 301. Short title.
Sec. 302. Findings.
Sec. 303. Sense of Congress.
Sec. 304. Coordination of human trafficking issues by the Office of 
                            Terrorism and Financial Intelligence.
Sec. 305. Strengthening the role of anti-money laundering and other 
                            financial tools in combating human 
                            trafficking.
Sec. 306. Sense of Congress on resources to combat human trafficking.

             TITLE I--SANCTIONS WITH RESPECT TO NORTH KOREA

SEC. 101. FINDINGS.

    Congress finds the following:
            (1) Since 2006, the United Nations Security Council has 
        adopted 10 resolutions imposing sanctions against North Korea 
        under chapter VII of the United Nations Charter, which--
                    (A) prohibit the use, development, and 
                proliferation of weapons of mass destruction by North 
                Korea;
                    (B) prohibit the supply, sale, or transfer of arms 
                and related materiel to or from North Korea;
                    (C) prohibit the transfer of luxury goods to North 
                Korea;
                    (D) restrict access by North Korea to financial 
                services that could contribute to nuclear, missile, or 
                other programs related to the development of weapons of 
                mass destruction;
                    (E) restrict North Korean shipping, including the 
                registration, reflagging, or insuring of North Korean 
                ships;
                    (F) prohibit, with limited exceptions, North Korean 
                exports of coal, precious metals, iron, vanadium, and 
                rare earth minerals;
                    (G) prohibit the transfer to North Korea of rocket, 
                aviation, or jet fuel, as well as gasoline, 
                condensates, and natural gas liquids;
                    (H) prohibit new work authorization for North 
                Korean laborers and require the repatriation of all 
                North Korean laborers by December 2019;
                    (I) prohibit exports of North Korean food and 
                agricultural products, including seafood;
                    (J) prohibit joint ventures or cooperative 
                commercial entities or expanding joint ventures with 
                North Korea;
                    (K) prohibit exports of North Korean textiles;
                    (L) require member countries of the United Nations 
                to seize, inspect, and impound any ship in its 
                jurisdiction that is suspected of violating Security 
                Council resolutions with respect to North Korea and to 
                interdict and inspect all cargo heading to or from 
                North Korea by land, sea, or air;
                    (M) limit the transfer to North Korea of refined 
                petroleum products and crude oil;
                    (N) ban the sale or transfer to North Korea of 
                industrial machinery, transportation vehicles, 
                electronics, iron, steel, and other metals;
                    (O) reduce North Korean diplomatic staff numbers in 
                member countries of the United Nations and expel any 
                North Korean diplomats found to be working on behalf of 
                a person subject to sanctions or assisting in sanctions 
                evasion;
                    (P) limit North Korean diplomatic missions abroad 
                with respect to staff size and access to banking 
                privileges and prohibit commerce from being conducted 
                out of North Korean consular or diplomatic offices;
                    (Q) require member states of the United Nations to 
                close representative offices, subsidiaries, and bank 
                accounts in North Korea;
                    (R) prohibit countries from providing or receiving 
                military training to or from North Korea or hosting 
                North Koreans for specialized teaching or training that 
                could contribute to the programs of North Korea related 
                to the development of weapons of mass destruction;
                    (S) ban countries from granting landing and flyover 
                rights to North Korean aircraft; and
                    (T) prohibit trade in statuary of North Korean 
                origin.
            (2) The Government of North Korea has threatened to carry 
        out nuclear attacks against the United States, South Korea, and 
        Japan.
            (3) The Government of North Korea tested its sixth and 
        largest nuclear device on September 3, 2017.
            (4) According to a report by the International Atomic 
        Energy Agency released in August 2018, ``The continuation and 
        further development of the DPRK's nuclear programme and related 
        statements by the DPRK are a cause for grave concern. The 
        DPRK's nuclear activities, including those in relation to the 
        Yongbyon Experimental Nuclear Power Plant (5 MW(e)) reactor, 
        the use of the building which houses the reported centrifuge 
        enrichment facility and the construction at the light water 
        reactor, as well as the DPRK's sixth nuclear test, are clear 
        violations of relevant UN Security Council resolutions, 
        including resolution 2375 (2017) and are deeply regrettable.''.
            (5) In July 2018, Secretary of State Mike Pompeo testified 
        to the Committee on Foreign Relations of the Senate that North 
        Korea ``continue[s] to produce fissile material'' despite 
        public pledges by North Korean leader Kim Jong-un to 
        denuclearize.
            (6) The 2019 Missile Defense Review conducted by the 
        Department of Defense states that North Korea ``continues to 
        pose an extraordinary threat and the United States must remain 
        vigilant. In the past, North Korea frequently issued explicit 
        nuclear missile threats against the United States and allies, 
        all the while working aggressively to field the capability to 
        strike the U.S. homeland with nuclear-armed ballistic missiles. 
        Over the past decade, it has invested considerable resources in 
        its nuclear and ballistic missile programs, and undertaken 
        extensive nuclear and missile testing in order to realize the 
        capability to threaten the U.S. homeland with missile attack. 
        As a result, North Korea has neared the time when it could 
        credibly do so.''.
            (7) Financial transactions and investments that provide 
        financial resources to the Government of North Korea, and that 
        fail to incorporate adequate safeguards against the misuse of 
        those financial resources, pose an undue risk of contributing 
        to--
                    (A) weapons of mass destruction programs of that 
                Government; and
                    (B) efforts to evade restrictions required by the 
                United Nations Security Council on imports or exports 
                of arms and related materiel, services, or technology 
                by that Government.
            (8) The Federal Bureau of Investigation has determined that 
        the Government of North Korea was responsible for cyberattacks 
        against entities in the United States, South Korea, and around 
        the world.
            (9) In November 2017, President Donald Trump designated the 
        government of North Korea as a state sponsor of terrorism 
        pursuant to authorities under the Export Administration Act of 
        1979 (50 U.S.C. App. 2401 et seq.), as continued in effect at 
        the time under the International Emergency Economic Powers Act 
        (50 U.S.C. 1701 et seq.), the Foreign Assistance Act of 1961 
        (22 U.S.C. 2151 et seq.), and the Arms Export Control Act (22 
        U.S.C. 2751 et seq.);
            (10) On February 22, 2018, the Secretary of State 
        determined that the Government of North Korea was responsible 
        for the lethal nerve agent attack in 2017 on Kim Jong Nam, the 
        half-brother of North Korean leader Kim Jong-un, in Malaysia, 
        triggering sanctions required under the Chemical and Biological 
        Weapons Control and Warfare Elimination Act of 1991 (22 U.S.C. 
        5601 et seq.).
            (11) The strict enforcement of sanctions is essential to 
        the efforts of the international community to achieve the 
        peaceful, complete, verifiable, and irreversible dismantlement 
        of weapons of mass destruction programs of the Government of 
        North Korea.

SEC. 102. SENSE OF CONGRESS.

    It is the sense of Congress that--
            (1) the United States is committed to working with its 
        allies and partners to halt the nuclear and ballistic missile 
        programs of North Korea through a policy of maximum pressure 
        and diplomatic engagement;
            (2) the imposition of sanctions, including those under this 
        Act, should not be construed to limit the authority of the 
        President to fully engage in diplomatic negotiations to further 
        the policy objective described in paragraph (1);
            (3) the successful use of sanctions to halt the nuclear and 
        ballistic missile programs of North Korea is part of a broader 
        diplomatic and economic strategy that relies on effective 
        coordination among relevant Federal agencies and officials, as 
        well as with international partners of the United States; and
            (4) the coordination described in paragraph (3) should 
        include proper vetting of external messaging and communications 
        from all parts of the Executive branch to ensure that those 
        communications are an intentional component of and aligned with 
        the strategy of the United States with respect to North Korea.

SEC. 103. DEFINITIONS.

    (a) In General.--In this title, the terms ``applicable Executive 
order'', ``applicable United Nations Security Council resolution'', 
``appropriate congressional committees'', ``Government of North 
Korea'', ``North Korea'', and ``North Korean financial institution'' 
have the meanings given those terms in section 3 of the North Korea 
Sanctions and Policy Enhancement Act of 2016 (22 U.S.C. 9202), as 
amended by subsection (b).
    (b) Amendments to Definitions in North Korea Sanctions and Policy 
Enhancement Act of 2016.--Section 3 of the North Korea Sanctions and 
Policy Enhancement Act of 2016 (22 U.S.C. 9202) is amended--
            (1) in paragraph (1)(A), in the matter preceding clause 
        (i), by striking ``Executive Order No. 13694'' and all that 
        follows through ``to the extent that'' and inserting the 
        following: ``Executive Order 13694 (50 U.S.C. 1701 note; 
        relating to blocking the property of certain persons engaging 
        in significant malicious cyber-enabled activities), Executive 
        Order 13722 (50 U.S.C. 1701 note; relating to blocking the 
        property of the Government of North Korea and the Workers' 
        Party of Korea, and prohibiting certain transactions with 
        respect to North Korea), or Executive Order 13810 (82 Fed. Reg. 
        44705; relating to imposing additional sanctions with respect 
        to North Korea), to the extent that''; and
            (2) in paragraph (2)(A), by striking ``or 2321 (2016)'' and 
        inserting ``2321 (2016), 2356 (2017), 2371 (2017), 2375 (2017), 
        or 2397 (2017)''.

         Subtitle A--Expansion of Sanctions and Related Matters

SEC. 111. SANCTIONS WITH RESPECT TO FOREIGN FINANCIAL INSTITUTIONS THAT 
              PROVIDE FINANCIAL SERVICES TO CERTAIN SANCTIONED PERSONS.

    (a) In General.--Title II of the North Korea Sanctions and Policy 
Enhancement Act of 2016 (22 U.S.C. 9221 et seq.) is amended by 
inserting after the item relating to section 201A the following:

``SEC. 201B. SANCTIONS WITH RESPECT TO FOREIGN FINANCIAL INSTITUTIONS 
              THAT PROVIDE FINANCIAL SERVICES TO CERTAIN SANCTIONED 
              PERSONS.

    ``(a) In General.--The Secretary of the Treasury shall impose one 
or more of the sanctions described in subsection (b) with respect to a 
foreign financial institution that the Secretary determines, on or 
after the date that is 90 days after the date of the enactment of the 
Otto Warmbier Banking Restrictions Involving North Korea Act of 2019, 
knowingly provides significant financial services to any person 
designated for the imposition of sanctions under--
            ``(1) subsection (a) or (b) of section 104;
            ``(2) an applicable Executive order; or
            ``(3) an applicable United Nations Security Council 
        resolution.
    ``(b) Sanctions Described.--The sanctions that may be imposed with 
respect to a foreign financial institution subject to subsection (a) 
are the following:
            ``(1) Asset blocking.--The Secretary may block and 
        prohibit, pursuant to the International Emergency Economic 
        Powers Act (50 U.S.C. 1701 et seq.), all transactions in all 
        property and interests in property of the foreign financial 
        institution if such property and interests in property are in 
        the United States, come within the United States, or are or 
        come within the possession or control of a United States 
        person.
            ``(2) Restrictions on correspondent and payable-through 
        accounts.--The Secretary may prohibit, or impose strict 
        conditions on, the opening or maintaining in the United States 
        of a correspondent account or a payable-through account by the 
        foreign financial institution.
    ``(c) Implementation; Penalties.--
            ``(1) Implementation.--The President may exercise all 
        authorities provided under sections 203 and 205 of the 
        International Emergency Economic Powers Act (50 U.S.C. 1702 and 
        1704) to carry out this section.
            ``(2) Penalties.--A person that violates, attempts to 
        violate, conspires to violate, or causes a violation of this 
        section or any regulation, license, or order issued to carry 
        out this section shall be subject to the penalties set forth in 
        subsections (b) and (c) of section 206 of the International 
        Emergency Economic Powers Act (50 U.S.C. 1705) to the same 
        extent as a person that commits an unlawful act described in 
        subsection (a) of that section.
    ``(d) Regulations.--Not later than 120 days after the date of the 
enactment of the Otto Warmbier Banking Restrictions Involving North 
Korea Act of 2019, the President shall, as appropriate, prescribe 
regulations to carry out this section.
    ``(e) Definitions.--In this section:
            ``(1) Account; correspondent account; payable-through 
        account.--The terms `account', `correspondent account', and 
        `payable-through account' have the meanings given those terms 
        in section 5318A of title 31, United States Code.
            ``(2) Financial institution.--The term `financial 
        institution' means a financial institution specified in 
        subparagraph (A), (B), (C), (D), (E), (F), (G), (H), (I), (J), 
        (M), or (Y) of section 5312(a)(2) of title 31, United States 
        Code.
            ``(3) Foreign financial institution.--The term `foreign 
        financial institution' shall have the meaning of that term as 
        determined by the Secretary of the Treasury.
            ``(4) Knowingly.--The term `knowingly', with respect to 
        conduct, a circumstance, or a result, means that a person has 
        actual knowledge, or should have known, of the conduct, the 
        circumstance, or the result.''.
    (b) Clerical Amendment.--The table of contents for the North Korea 
Sanctions and Policy Enhancement Act of 2016 is amended by inserting 
after the item relating to section 201A the following:

``201B. Sanctions with respect to foreign financial institutions that 
                            provide financial services to certain 
                            sanctioned persons.''.

SEC. 112. CODIFICATION OF EXECUTIVE ORDERS RELATING TO SANCTIONS WITH 
              RESPECT TO NORTH KOREA.

    (a) In General.--Section 210 of the North Korea Sanctions and 
Policy Enhancement Act of 2016 (22 U.S.C. 9230) is amended--
            (1) by striking ``United States sanctions'' and all that 
        follows through ``the date of the enactment of this Act'' and 
        inserting ``United States sanctions provided for in Executive 
        Order 13687 (50 U.S.C. 1701 note; relating to imposing 
        additional sanctions with respect to North Korea), Executive 
        Order 13694 (50 U.S.C. 1701 note; relating to blocking the 
        property of certain persons engaging in significant malicious 
        cyber-enabled activities), Executive Order 13722 (50 U.S.C. 
        1701 note; relating to blocking the property of the Government 
        of North Korea and the Workers' Party of Korea, and prohibiting 
        certain transactions with respect to North Korea), or Executive 
        Order 13810 (82 Fed. Reg. 44705; relating to imposing 
        additional sanctions with respect to North Korea), as such 
        Executive Orders are in effect on the day before the date of 
        the enactment of the Otto Warmbier Banking Restrictions 
        Involving North Korea Act of 2019'';
            (2) by striking ``the Government of North Korea, persons 
        acting for or on behalf of that Government, and persons owned 
        or controlled, directly or indirectly, by that Government or 
        persons acting for or on behalf of that Government,'' and 
        inserting ``persons subject to such sanctions''; and
            (3) by striking ``and 2094 (2013)'' and inserting ``2094 
        (2013), 2270 (2016), 2321 (2016), 2356 (2017), 2371 (2017), 
        2375 (2017), and 2397 (2017)''.
    (b) Conforming Amendment.--Section 210 of the North Korea Sanctions 
and Policy Enhancement Act of 2016 (22 U.S.C. 9230) is amended in the 
section heading by striking ``sanctions with respect to north korean 
activities undermining cybersecurity'' and inserting ``executive orders 
relating to sanctions with respect to north korea''.
    (c) Clerical Amendment.--The table of contents for the North Korea 
Sanctions and Policy Enhancement Act of 2016 is amended by striking the 
item relating to section 210 and inserting the following:

``Sec. 210. Codification of Executive orders relating to sanctions with 
                            respect to North Korea.''.

SEC. 113. EXPANSION OF MANDATORY DESIGNATIONS UNDER NORTH KOREA 
              SANCTIONS AND POLICY ENHANCEMENT ACT OF 2016.

    (a) In General.--Section 104(a) of the North Korea Sanctions and 
Policy Enhancement Act of 2016 (22 U.S.C. 9214(a)) is amended--
            (1) in paragraph (14), by striking ``or'' at the end;
            (2) by redesignating paragraph (15) as paragraph (24);
            (3) by inserting after paragraph (14) the following:
            ``(15) knowingly, directly or indirectly, purchases or 
        otherwise acquires from North Korea significant quantities of 
        coal, iron, or iron ore;
            ``(16) knowingly, directly or indirectly, provides to North 
        Korea coal, iron, or iron ore;
            ``(17) knowingly, directly or indirectly, purchases or 
        otherwise acquires textiles from North Korea;
            ``(18) knowingly facilitates a significant transfer of 
        funds or property from North Korea that materially contributes 
        to any violation of an applicable United Nations Security 
        Council resolution;
            ``(19) knowingly, directly or indirectly, purchases or 
        otherwise acquires significant types or amounts of seafood from 
        North Korea;
            ``(20) knowingly, directly or indirectly, engages in, 
        facilitates, or is responsible for the exportation of workers 
        from North Korea;
            ``(21) knowingly, directly or indirectly, sells or 
        transfers vessels to North Korea, except as specifically 
        approved by the United Nations Security Council;
            ``(22) knowingly, directly or indirectly, supplies, sells, 
        or transfers to North Korea crude oil or refined petroleum 
        products in excess of the aggregate amounts established in 
        applicable United Nations Security Council resolutions;
            ``(23) knowingly contributes to--
                    ``(A) the bribery of an official of the Government 
                of North Korea or any person acting for or on behalf of 
                that official;
                    ``(B) the misappropriation, theft, or embezzlement 
                of public funds by, or for the benefit of, an official 
                of the Government of North Korea or any person acting 
                for or on behalf of that official; or
                    ``(C) the use of any proceeds of any activity 
                described in subparagraph (A) or (B); or''; and
            (4) in paragraph (24), as redesignated by paragraph (2), by 
        striking ``through (14)'' and inserting ``through (23)''.
    (b) Conforming Amendments.--The North Korea Sanctions and Policy 
Enhancement Act of 2016 is amended--
            (1) in section 104(b)(1) (22 U.S.C. 9214(b)(1))--
                    (A) by striking subparagraphs (B), (D), (E), (F), 
                and (L); and
                    (B) by redesignating subparagraphs (C), (G), (H), 
                (I), (J), (K), (M), and (N) as subparagraphs (B), (C), 
                (D), (E), (F), (G), (H), and (I), respectively; and
            (2) in section 302(b)(3) (22 U.S.C. 9241(b)(3)), by 
        striking ``section 104(b)(1)(M)'' and inserting ``section 
        104(a)(20)''.

SEC. 114. EXTENSION OF APPLICABILITY PERIOD OF PROLIFERATION PREVENTION 
              SANCTIONS.

    Section 203(b)(2) of the North Korea Sanctions and Policy 
Enhancement Act of 2016 (22 U.S.C. 9223(b)(2)) is amended by striking 
``2 years'' and inserting ``5 years''.

SEC. 115. SENSE OF CONGRESS ON IDENTIFICATION AND BLOCKING OF PROPERTY 
              OF NORTH KOREAN OFFICIALS.

    It is the sense of Congress that the President should--
            (1) encourage international collaboration through the 
        Financial Action Task Force and its network of Financial Action 
        Task Force-style regional bodies to apply best practices in 
        disrupting money laundering related to kleptocracy and 
        corruption, especially as it relates to North Korea; and
            (2) prioritize multilateral efforts to identify and block--
                    (A) any property owned or controlled by a North 
                Korean official; and
                    (B) any significant proceeds of kleptocracy by the 
                Government of North Korea or a North Korean official.

SEC. 116. MODIFICATION OF REPORT ON IMPLEMENTATION OF UNITED NATIONS 
              SECURITY COUNCIL RESOLUTIONS BY OTHER GOVERNMENTS.

    Section 317 of the Korean Interdiction and Modernization of 
Sanctions Act (title III of Public Law 115-44; 131 Stat. 950) is 
amended--
            (1) in subsection (a)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``Not later than 180 days after the date of 
                the enactment of this Act, and annually thereafter for 
                5 years,'' and inserting ``Not later than 180 days 
                after the date of the enactment of the Otto Warmbier 
                Banking Restrictions Involving North Korea Act of 2019, 
                and annually thereafter for 5 years,'';
                    (B) in paragraph (3), by striking ``; or'' and 
                inserting a semicolon;
                    (C) by redesignating paragraph (4) as paragraph 
                (8); and
                    (D) by inserting after paragraph (3) the following:
            ``(4) prohibit, in the territories of such countries or by 
        persons subject to the jurisdiction of such governments, the 
        opening of new joint ventures or cooperative entities with 
        North Korean persons or the expansion of existing joint 
        ventures through additional investments, whether or not for or 
        on behalf of the Government of North Korea, unless such joint 
        ventures or cooperative entities have been approved by the 
        Committee of the United Nations Security Council established by 
        United Nations Security Council Resolution 1718 (2006);
            ``(5) prohibit the unauthorized clearing of funds by North 
        Korean financial institutions through financial institutions 
        subject to the jurisdiction of such governments;
            ``(6) prohibit the unauthorized conduct of commercial trade 
        with North Korea that is prohibited under applicable United 
        Nations Security Council resolutions;
            ``(7) prevent the provision of financial services to North 
        Korean persons or the transfer of financial services to North 
        Korean persons to, through, or from the territories of such 
        countries or by persons subject to the jurisdiction of such 
        governments; or''; and
            (2) by amending subsection (c) to read as follows:
    ``(c) Definitions.--In this section:
            ``(1) Appropriate congressional committees and 
        leadership.--The term `appropriate congressional committees and 
        leadership' means--
                    ``(A) the Committee on Foreign Relations, the 
                Committee on Banking, Housing, and Urban Affairs, and 
                the majority and minority leaders of the Senate; and
                    ``(B) the Committee on Foreign Affairs, the 
                Committee on Financial Services, the Committee on Ways 
                and Means, and the Speaker, the majority leader, and 
                the minority leader of the House of Representatives.
            ``(2) Applicable united nations security council 
        resolution; north korean financial institution; north korean 
        person.--The terms `applicable United Nations Security Council 
        resolution', `North Korean financial institution', and `North 
        Korean person' have the meanings given those terms in section 3 
        of the North Korea Sanctions and Policy Enhancement Act of 2016 
        (22 U.S.C. 9202).''.

SEC. 117. REPORT ON USE BY THE GOVERNMENT OF NORTH KOREA OF BENEFICIAL 
              OWNERSHIP RULES TO ACCESS THE INTERNATIONAL FINANCIAL 
              SYSTEM.

    (a) In General.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of the Treasury shall submit to 
the appropriate congressional committees a report setting forth the 
findings of the Secretary regarding how the Government of North Korea 
is exploiting laws with respect to the beneficial owner of an entity in 
order to access the international financial system.
    (b) Elements.--The Secretary shall include in the report required 
under subsection (a) proposals for such legislative and administrative 
action as the Secretary considers appropriate to combat the abuse by 
the Government of North Korea of shell companies and other similar 
entities to avoid or evade sanctions.
    (c) Form.--The report required by subsection (a) shall be submitted 
in unclassified form but may include a classified annex.
    (d) Beneficial Owner Defined.--
            (1) In general.--In this section, the term ``beneficial 
        owner''--
                    (A) means, with respect to an entity, each natural 
                person who, directly or indirectly--
                            (i) exercises control over the entity 
                        through ownership interests, voting rights, 
                        agreements, or otherwise; or
                            (ii) has an interest in or receives 
                        substantial economic benefits from the assets 
                        of the entity; and
                    (B) does not include, with respect to an entity--
                            (i) a minor child;
                            (ii) a person acting as a nominee, 
                        intermediary, custodian, or agent on behalf of 
                        another person;
                            (iii) a person acting solely as an employee 
                        of the entity and whose control over or 
                        economic benefits from the entity derives 
                        solely from the employment status of the 
                        person;
                            (iv) a person whose only interest in the 
                        entity is through a right of inheritance, 
                        unless the person otherwise meets the 
                        definition of a beneficial owner under this 
                        subsection; and
                            (v) a creditor of the entity, unless the 
                        creditor otherwise meets the definition of a 
                        beneficial owner under this subsection.
            (2) Anti-abuse rule.--The exceptions under paragraph (1)(B) 
        shall not apply if used for the purpose of evading, 
        circumventing, or abusing laws described in subsection (a).

             Subtitle B--Congressional Review and Oversight

SEC. 121. NOTIFICATION OF TERMINATION OR SUSPENSION OF SANCTIONS.

    Not less than 15 days before taking any action to terminate or 
suspend the application of sanctions under this title or an amendment 
made by this title, the President shall notify the appropriate 
congressional committees of the President's intent to take the action 
and the reasons for the action.

SEC. 122. REPORTS ON CERTAIN LICENSING ACTIONS.

    (a) In General.--Not later than 180 days after the date of the 
enactment of this Act, and every 180 days thereafter, the President 
shall submit to the appropriate congressional committees a report on 
the operation of the system for issuing licenses for transactions under 
covered regulatory provisions during the preceding 180-day period that 
includes--
            (1) the number and types of such licenses applied for 
        during that period;
            (2) the number and types of such licenses issued during 
        that period; and
            (3) a summary of all general and specific licenses issued 
        with respect to North Korea.
    (b) Covered Regulatory Provision Defined.--In this section, the 
term ``covered regulatory provision'' means any of the following 
provisions, as in effect on the day before the date of the enactment of 
this Act and as such provisions relate to North Korea:
            (1) Part 743, 744, or 746 of title 15, Code of Federal 
        Regulations.
            (2) Part 510 of title 31, Code of Federal Regulations.
            (3) Any other provision of title 31, Code of Federal 
        Regulations.
    (c) Form.--Each report required by subsection (a) shall be 
submitted in unclassified form but may include a classified annex.

SEC. 123. BRIEFINGS ON IMPLEMENTATION AND ENFORCEMENT OF SANCTIONS.

    Not later than 90 days after the date of the enactment of this Act, 
and every 180 days thereafter, the Secretary of the Treasury shall 
provide to the appropriate congressional committees a briefing on 
efforts relating to the implementation and enforcement of United States 
sanctions with respect to North Korea, including appropriate updates on 
the efforts of the Department of the Treasury to address compliance 
with such sanctions by foreign financial institutions.

SEC. 124. REPORT ON FINANCIAL NETWORKS AND FINANCIAL METHODS OF THE 
              GOVERNMENT OF NORTH KOREA.

    (a) Report Required.--
            (1) In general.--Not later than 180 days after the date of 
        the enactment of this Act, and annually thereafter through 
        2025, the President shall submit to the appropriate 
        congressional committees a report on sources of external 
        support for the Government of North Korea that includes--
                    (A) a description of the methods used by the 
                Government of North Korea to deal in, transact in, or 
                conceal the ownership, control, or origin of goods and 
                services exported by North Korea;
                    (B) an assessment of the relationship between the 
                proliferation of weapons of mass destruction by the 
                Government of North Korea and the financial industry or 
                financial institutions;
                    (C) an assessment of the relationship between the 
                acquisition by the Government of North Korea of 
                military expertise, equipment, and technology and the 
                financial industry or financial institutions;
                    (D) a description of the export by any person to 
                the United States of goods, services, or technology 
                that are made with significant amounts of North Korean 
                labor, material, or goods, including minerals, 
                manufacturing, seafood, overseas labor, or other 
                exports from North Korea;
                    (E) an assessment of the involvement of any person 
                in human trafficking involving citizens or nationals of 
                North Korea;
                    (F) a description of how the President plans to 
                address the flow of funds generated by activities 
                described in subparagraphs (A) through (E), including 
                through the use of sanctions or other means;
                    (G) an assessment of the extent to which the 
                Government of North Korea engages in criminal 
                activities, including money laundering, to support that 
                Government;
                    (H) information relating to the identification, 
                blocking, and release of property described in section 
                201B(b)(1) of the North Korea Sanctions and Policy 
                Enhancement Act of 2016, as added by section 111;
                    (I) a description of the metrics used to measure 
                the effectiveness of law enforcement and diplomatic 
                initiatives of Federal, State, and foreign governments 
                to comply with the provisions of applicable United 
                Nations Security Council resolutions; and
                    (J) an assessment of the effectiveness of programs 
                within the financial industry to ensure compliance with 
                United States sanctions, applicable United Nations 
                Security Council resolutions, and applicable Executive 
                orders.
            (2) Form.--Each report required by paragraph (1) shall be 
        submitted in unclassified form but may include a classified 
        annex.
    (b) Interagency Coordination.--The President shall ensure that any 
information collected pursuant to subsection (a) is shared among the 
Federal departments and agencies involved in investigations described 
in section 102(b) of the North Korea Sanctions and Policy Enhancement 
Act of 2016 (22 U.S.C. 9212(b)).

SEC. 125. REPORT ON COUNTRIES OF CONCERN WITH RESPECT TO TRANSSHIPMENT, 
              REEXPORTATION, OR DIVERSION OF CERTAIN ITEMS TO NORTH 
              KOREA.

    (a) In General.--Not later than 180 days after the date of the 
enactment of this Act, and annually thereafter through 2023, the 
Director of National Intelligence shall submit to the President, the 
Secretary of Defense, the Secretary of Commerce, the Secretary of 
State, the Secretary of the Treasury, and the appropriate congressional 
committees a report that identifies all countries that the Director 
determines are of concern with respect to transshipment, reexportation, 
or diversion of items subject to the provisions of the Export 
Administration Regulations under subchapter C of chapter VII of title 
15, Code of Federal Regulations, to an entity owned or controlled by 
the Government of North Korea.
    (b) Form.--Each report required by subsection (a) shall be 
submitted in unclassified form but may include a classified annex.

                      Subtitle C--General Matters

SEC. 131. RULEMAKING.

    The President shall prescribe such rules and regulations as may be 
necessary to carry out this title and amendments made by this title.

SEC. 132. AUTHORITY TO CONSOLIDATE REPORTS.

    (a) In General.--Any and all reports required to be submitted to 
the appropriate congressional committees under this title or an 
amendment made by this title that are subject to a deadline for 
submission consisting of the same unit of time may be consolidated into 
a single report that is submitted pursuant to that deadline.
    (b) Contents.--Any reports consolidated under subsection (a) shall 
contain all information required under this title or an amendment made 
by this title and any other elements that may be required by existing 
law.

SEC. 133. WAIVERS, EXEMPTIONS, AND TERMINATION.

    (a) Application and Modification of Exemptions and Waivers From 
North Korea Sanctions and Policy Enhancement Act of 2016.--Section 208 
of the North Korea Sanctions and Policy Enhancement Act of 2016 (22 
U.S.C. 9228) is amended--
            (1) by inserting ``201B,'' after ``201A,'' each place it 
        appears; and
            (2) in subsection (c), by inserting ``, not less than 15 
        days before the waiver takes effect,'' after ``if the 
        President''.
    (b) Exception Relating to Importation of Goods.--
            (1) In general.--No provision affecting sanctions under 
        this title or an amendment made by this title shall apply to 
        sanctions on the importation of goods.
            (2) Good defined.--In this subsection, the term ``good'' 
        means any article, natural or man-made substance, material, 
        supply or manufactured product, including inspection and test 
        equipment, and excluding technical data.
    (c) Suspension.--
            (1) In general.--Subject to section 121, any requirement to 
        impose sanctions under this title or the amendments made by 
        this title, and any sanctions imposed pursuant to this title or 
        any such amendment, may be suspended for up to one year if the 
        President makes the certification described in section 401 of 
        the North Korea Sanctions and Policy Enhancement Act of 2016 
        (22 U.S.C. 9251) to the appropriate congressional committees.
            (2) Renewal.--A suspension under paragraph (1) may be 
        renewed in accordance with section 401(b) of the North Korea 
        Sanctions and Policy Enhancement Act of 2016 (22 U.S.C. 
        9251(b)).
    (d) Termination.--Subject to section 121, any requirement to impose 
sanctions under this title or the amendments made by this title, and 
any sanctions imposed pursuant to this title or any such amendment, 
shall terminate on the date on which the President makes the 
certification described in section 402 of the North Korea Sanctions and 
Policy Enhancement Act of 2016 (22 U.S.C. 9252).

SEC. 134. PROCEDURES FOR REVIEW OF CLASSIFIED INFORMATION.

    (a) In General.--If a finding under this title or an amendment made 
by this title, a prohibition, condition, or penalty imposed as a result 
of any such finding, or a penalty imposed under this title or an 
amendment made by this title, is based on classified information (as 
defined in section 1(a) of the Classified Information Procedures Act 
(18 U.S.C. App.)) and a court reviews the finding or the imposition of 
the prohibition, condition, or penalty, the Secretary of the Treasury 
may submit such information to the court ex parte and in camera.
    (b) Rule of Construction.--Nothing in this section shall be 
construed to confer or imply any right to judicial review of any 
finding under this title or an amendment made by this title, any 
prohibition, condition, or penalty imposed as a result of any such 
finding, or any penalty imposed under this title or an amendment made 
by this title.

SEC. 135. BRIEFING ON PROLIFERATION FINANCING.

    (a) In General.--Not later than 60 days after the date of the 
enactment of this Act, the Secretary of the Treasury shall provide to 
the appropriate congressional committees a briefing on addressing 
proliferation finance.
    (b) Elements.--The briefing required by subsection (a) shall 
include the following:
            (1) The Department of the Treasury's definition and 
        description of an appropriate risk-based approach to combating 
        financing of the proliferation of weapons of mass destruction.
            (2) An assessment of--
                    (A) Federal financial regulatory agency oversight, 
                including by the Financial Crimes Enforcement Network, 
                of United States financial institutions and the 
                adoption by their foreign subsidiaries, branches, and 
                correspondent institutions of a risk-based approach to 
                proliferation financing; and
                    (B) whether financial institutions in foreign 
                jurisdictions known by the United States intelligence 
                and law enforcement communities to be jurisdictions 
                through which North Korea moves substantial sums of 
                licit and illicit finance are applying a risk-based 
                approach to proliferation financing, and if that 
                approach is comparable to the approach required by 
                United States financial institution supervisors.
            (3) A survey of the technical assistance the Office of 
        Technical Assistance of the Department of the Treasury, and 
        other appropriate Executive branch offices, currently provide 
        foreign institutions on implementing counter-proliferation 
        financing best practices.
            (4) An assessment of the ability of foreign subsidiaries, 
        branches, and correspondent institutions of United States 
        financial institutions to implement a risk-based approach to 
        proliferation financing.

                 TITLE II--DIVESTMENT FROM NORTH KOREA

SEC. 201. AUTHORITY OF STATE AND LOCAL GOVERNMENTS TO DIVEST FROM 
              COMPANIES THAT INVEST IN NORTH KOREA.

    (a) Sense of Congress.--It is the sense of Congress that the United 
States should support the decision of any State or local government 
made for moral, prudential, or reputational reasons, to divest from, or 
prohibit the investment of assets of the State or local government in, 
a person that engages in investment activities described in subsection 
(c) if North Korea is subject to economic sanctions imposed by the 
United States or the United Nations Security Council.
    (b) Authority To Divest.--Notwithstanding any other provision of 
law, a State or local government may adopt and enforce measures that 
meet the requirements of subsection (d) to divest the assets of the 
State or local government from, or prohibit investment of the assets of 
the State or local government in, any person that the State or local 
government determines, using credible information available to the 
public, engages in investment activities described in subsection (c).
    (c) Investment Activities Described.--Investment activities 
described in this subsection are activities of a value of more than 
$10,000 relating to an investment in North Korea or in goods or 
services originating in North Korea that are not conducted pursuant to 
a license issued by the Department of the Treasury.
    (d) Requirements.--Any measure taken by a State or local government 
under subsection (b) shall meet the following requirements:
            (1) Notice.--The State or local government shall provide 
        written notice to each person with respect to which a measure 
        under this section is to be applied.
            (2) Timing.--The measure applied under this section shall 
        apply to a person not earlier than the date that is 90 days 
        after the date on which written notice under paragraph (1) is 
        provided to the person.
            (3) Opportunity to demonstrate compliance.--
                    (A) In general.--The State or local government 
                shall provide to each person with respect to which a 
                measure is to be applied under this section an 
                opportunity to demonstrate to the State or local 
                government that the person does not engage in 
                investment activities described in subsection (c).
                    (B) Nonapplication.--If a person with respect to 
                which a measure is to be applied under this section 
                demonstrates to the State or local government under 
                subparagraph (A) that the person does not engage in 
                investment activities described in subsection (c), the 
                measure shall not apply to that person.
            (4) Sense of congress on avoiding erroneous targeting.--It 
        is the sense of Congress that a State or local government 
        should not adopt a measure under subsection (b) with respect to 
        a person unless the State or local government has--
                    (A) made every effort to avoid erroneously 
                targeting the person; and
                    (B) verified that the person engages in investment 
                activities described in subsection (c).
    (e) Notice to Department of Justice.--Not later than 30 days before 
a State or local government applies a measure under this section, the 
State or local government shall notify the Attorney General of that 
measure.
    (f) Authorization for Prior Applied Measures.--
            (1) In general.--Notwithstanding any other provision of 
        this section or any other provision of law, a State or local 
        government may enforce a measure (without regard to the 
        requirements of subsection (d), except as provided in paragraph 
        (2)) applied by the State or local government before the date 
        of the enactment of this Act that provides for the divestment 
        of assets of the State or local government from, or prohibits 
        the investment of the assets of the State or local government 
        in, any person that the State or local government determines, 
        using credible information available to the public, engages in 
        investment activities described in subsection (c) that are 
        identified in that measure.
            (2) Application of notice requirements.--A measure 
        described in paragraph (1) shall be subject to the requirements 
        of paragraphs (1), (2), and (3)(A) of subsection (d) on and 
        after the date that is 2 years after the date of the enactment 
        of this Act.
    (g) No Preemption.--A measure applied by a State or local 
government that is consistent with subsection (b) or (f) is not 
preempted by any Federal law.
    (h) Definitions.--In this section:
            (1) Asset.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the term ``asset'' means public monies, and 
                includes any pension, retirement, annuity, endowment 
                fund, or similar instrument, that is controlled by a 
                State or local government.
                    (B) Exception.--The term ``asset'' does not include 
                employee benefit plans covered by title I of the 
                Employee Retirement Income Security Act of 1974 (29 
                U.S.C. 1001 et seq.).
            (2) Investment.--The term ``investment'' includes--
                    (A) a commitment or contribution of funds or 
                property;
                    (B) a loan or other extension of credit; and
                    (C) the entry into or renewal of a contract for 
                goods or services.
    (i) Effective Date.--
            (1) In general.--Except as provided in paragraph (2) and 
        subsection (f), this section applies to measures applied by a 
        State or local government before, on, or after the date of the 
        enactment of this Act.
            (2) Notice requirements.--Except as provided in subsection 
        (f), subsections (d) and (e) apply to measures applied by a 
        State or local government on or after the date of the enactment 
        of this Act.

SEC. 202. SAFE HARBOR FOR CHANGES OF INVESTMENT POLICIES BY ASSET 
              MANAGERS.

    Section 13(c)(1) of the Investment Company Act of 1940 (15 U.S.C. 
80a-13(c)(1)) is amended--
            (1) in subparagraph (A), by striking ``or'' at the end;
            (2) in subparagraph (B), by striking the period and 
        inserting ``; or''; and
            (3) by adding at the end the following:
                    ``(C) engage in investment activities described in 
                section 201(c) of the Otto Warmbier Banking 
                Restrictions Involving North Korea Act of 2019.''.

SEC. 203. SENSE OF CONGRESS REGARDING CERTAIN ERISA PLAN INVESTMENTS.

    It is the sense of Congress that--
            (1) a fiduciary of an employee benefit plan, as defined in 
        section 3(3) of the Employee Retirement Income Security Act of 
        1974 (29 U.S.C. 1002(3)), may divest plan assets from, or avoid 
        investing plan assets in, any person the fiduciary determines 
        engages in investment activities described in section 201(c), 
        if--
                    (A) the fiduciary makes that determination using 
                credible information that is available to the public; 
                and
                    (B) the fiduciary prudently determines that the 
                result of that divestment or avoidance of investment 
                would not be expected to provide the employee benefit 
                plan with--
                            (i) a lower rate of return than alternative 
                        investments with commensurate degrees of risk; 
                        or
                            (ii) a higher degree of risk than 
                        alternative investments with commensurate rates 
                        of return; and
            (2) by divesting assets or avoiding the investment of 
        assets as described in paragraph (1), the fiduciary is not 
        breaching the responsibilities, obligations, or duties imposed 
        upon the fiduciary by subparagraph (A) or (B) of section 
        404(a)(1) of the Employee Retirement Income Security Act of 
        1974 (29 U.S.C. 1104(a)(1)).

SEC. 204. RULE OF CONSTRUCTION.

    Nothing in this title, an amendment made by this title, or any 
other provision of law authorizing sanctions with respect to North 
Korea shall be construed to affect or displace--
            (1) the authority of a State or local government to issue 
        and enforce rules governing the safety, soundness, and solvency 
        of a financial institution subject to its jurisdiction; or
            (2) the regulation and taxation by the several States of 
        the business of insurance, pursuant to the Act of March 9, 1945 
        (59 Stat. 33, chapter 20; 15 U.S.C. 1011 et seq.) (commonly 
        known as the ``McCarran-Ferguson Act'').

       TITLE III--FINANCIAL INDUSTRY GUIDANCE TO HALT TRAFFICKING

SEC. 301. SHORT TITLE.

    This title may be cited as the ``Financial Industry Guidance to 
Halt Trafficking Act'' or the ``FIGHT Act''.

SEC. 302. FINDINGS.

    Congress finds the following:
            (1) The terms ``human trafficking'' and ``trafficking in 
        persons'' are used interchangeably to describe crimes involving 
        the exploitation of a person for the purposes of compelled 
        labor or commercial sex through the use of force, fraud, or 
        coercion.
            (2) According to the International Labour Organization, 
        there are an estimated 24,900,000 people worldwide who are 
        victims of forced labor, including human trafficking victims in 
        the United States.
            (3) Human trafficking is perpetrated for financial gain.
            (4) According to the International Labour Organization, of 
        the estimated $150,000,000,000 or more in global profits 
        generated annually from human trafficking--
                    (A) approximately \2/3\ are generated by commercial 
                sexual exploitation, exacted by fraud or by force; and
                    (B) approximately \1/3\ are generated by forced 
                labor.
            (5) Most purchases of commercial sex acts are paid for with 
        cash, making trafficking proceeds difficult to identify in the 
        financial system. Nonetheless, traffickers rely heavily on 
        access to financial institutions as destinations for 
        trafficking proceeds and as conduits to finance every step of 
        the trafficking process.
            (6) Under section 1956 of title 18, United States Code 
        (relating to money laundering), human trafficking is a 
        ``specified unlawful activity'' and transactions conducted with 
        proceeds earned from trafficking people, or used to further 
        trafficking operations, can be prosecuted as money laundering 
        offenses.

SEC. 303. SENSE OF CONGRESS.

    It is the sense of Congress that--
            (1) the President should aggressively apply, as 
        appropriate, existing sanctions for human trafficking 
        authorized under section 111 of the Trafficking Victims 
        Protection Act of 2000 (22 U.S.C. 7108);
            (2) the Financial Crimes Enforcement Network of the 
        Department of the Treasury should continue--
                    (A) to monitor reporting required under subchapter 
                II of chapter 53 of title 31, United States Code 
                (commonly known as the ``Bank Secrecy Act'') and to 
                update advisories, as warranted;
                    (B) to periodically review its advisories to 
                provide covered financial institutions, as appropriate, 
                with a list of new ``red flags'' for identifying 
                activities of concern, particularly human trafficking;
                    (C) to encourage entities covered by the advisories 
                described in subparagraph (B) to incorporate relevant 
                elements provided in the advisories into their current 
                transaction and account monitoring systems or in 
                policies, procedures, and training on human trafficking 
                to enable financial institutions to maintain ongoing 
                efforts to examine transactions and accounts;
                    (D) to use geographic targeting orders, as 
                appropriate, to impose additional reporting and 
                recordkeeping requirements under section 5326(a) of 
                title 31, United States Code, to carry out the purposes 
                of, and prevent evasions of the Bank Secrecy Act; and
                    (E) to utilize the Bank Secrecy Act Advisory Group 
                and other relevant entities to identify opportunities 
                for nongovernmental organizations to share relevant 
                actionable information on human traffickers' use of the 
                financial sector for nefarious purposes;
            (3) Federal banking regulators, the Department of the 
        Treasury, relevant law enforcement agencies, and the Human 
        Smuggling and Trafficking Center, in partnership with 
        representatives from the United States financial community, 
        should adopt regular forms of sharing information to disrupt 
        human trafficking, including developing protocols and 
        procedures to share actionable information between and amongst 
        covered institutions, law enforcement, and the United States 
        intelligence community;
            (4) training front line bank and money service business 
        employees, school teachers, law enforcement officers, foreign 
        service officers, counselors, and the general public is an 
        important factor in identifying trafficking victims;
            (5) the Department of Homeland Security's Blue Campaign, 
        training by the BEST Employers Alliance, and similar efforts by 
        industry, human rights, and nongovernmental organizations 
        focused on human trafficking provide good examples of current 
        efforts to educate employees of critical sectors to save 
        victims and disrupt trafficking networks;
            (6) the President should intensify diplomatic efforts, 
        bilaterally and in appropriate international fora, such as the 
        United Nations, to develop and implement a coordinated, 
        consistent, multilateral strategy for addressing the 
        international financial networks supporting human trafficking; 
        and
            (7) in deliberations between the United States Government 
        and any foreign country, including through participation in the 
        Egmont Group of Financial Intelligence Units, regarding money 
        laundering, corruption, and transnational crimes, the United 
        States Government should--
                    (A) encourage cooperation by foreign governments 
                and relevant international fora in identifying the 
                extent to which the proceeds from human trafficking are 
                being used to facilitate terrorist financing, 
                corruption, or other illicit financial crimes;
                    (B) encourage cooperation by foreign governments 
                and relevant international fora in identifying the 
                nexus between human trafficking and money laundering;
                    (C) advance policies that promote the cooperation 
                of foreign governments, through information sharing, 
                training, or other measures, in the enforcement of this 
                title;
                    (D) encourage the Financial Action Task Force to 
                update its July 2011 typology reports entitled, 
                ``Laundering the Proceeds of Corruption'' and ``Money 
                Laundering Risks Arising from Trafficking in Human 
                Beings and Smuggling of Migrants'', to identify the 
                money laundering risk arising from the trafficking of 
                human beings; and
                    (E) encourage the Egmont Group of Financial 
                Intelligence Units to study the extent to which human 
                trafficking operations are being used for money 
                laundering, terrorist financing, or other illicit 
                financial purposes.

SEC. 304. COORDINATION OF HUMAN TRAFFICKING ISSUES BY THE OFFICE OF 
              TERRORISM AND FINANCIAL INTELLIGENCE.

    (a) Functions.--Section 312(a)(4) of title 31, United States Code, 
is amended--
            (1) by redesignating subparagraphs (E), (F), and (G) as 
        subparagraphs (F), (G), and (H), respectively; and
            (2) by inserting after subparagraph (D) the following:
                    ``(E) combating illicit financing relating to human 
                trafficking;''.
    (b) Interagency Coordination.--Section 312(a) of such title is 
amended by adding at the end the following:
            ``(8) Interagency coordination.--The Secretary of the 
        Treasury, after consultation with the Undersecretary for 
        Terrorism and Financial Crimes, shall designate an office 
        within the OTFI that shall coordinate efforts to combat the 
        illicit financing of human trafficking with--
                    ``(A) other offices of the Department of the 
                Treasury;
                    ``(B) other Federal agencies, including--
                            ``(i) the Office to Monitor and Combat 
                        Trafficking in Persons of the Department of 
                        State; and
                            ``(ii) the Interagency Task Force to 
                        Monitor and Combat Trafficking;
                    ``(C) State and local law enforcement agencies; and
                    ``(D) foreign governments.''.

SEC. 305. STRENGTHENING THE ROLE OF ANTI-MONEY LAUNDERING AND OTHER 
              FINANCIAL TOOLS IN COMBATING HUMAN TRAFFICKING.

    (a) Interagency Task Force Recommendations Targeting Money 
Laundering Related to Human Trafficking.--
            (1) In general.--Not later than 270 days after the date of 
        the enactment of this Act, the Interagency Task Force to 
        Monitor and Combat Trafficking shall submit to the Committee on 
        Banking, Housing, and Urban Affairs, the Committee on Foreign 
        Relations, and the Committee on the Judiciary of the Senate, 
        the Committee on Financial Services, the Committee on Foreign 
        Affairs, and the Committee on the Judiciary of the House of 
        Representatives, the Secretary of the Treasury, and each 
        appropriate Federal banking agency--
                    (A) an analysis of anti-money laundering efforts of 
                the United States Government, United States financial 
                institutions, and multilateral development banks 
                related to human trafficking; and
                    (B) appropriate legislative, administrative, and 
                other recommendations to strengthen efforts against 
                money laundering relating to human trafficking.
            (2) Required recommendations.--The recommendations under 
        paragraph (1) shall include--
                    (A) best practices based on successful anti-human 
                trafficking programs currently in place at domestic and 
                international financial institutions that are suitable 
                for broader adoption;
                    (B) feedback from stakeholders, including victims 
                of severe trafficking in persons, advocates of persons 
                at risk of becoming victims of severe forms of 
                trafficking in persons, the United States Advisory 
                Council on Human Trafficking, civil society 
                organizations, and financial institutions on policy 
                proposals derived from the analysis conducted by the 
                task force referred to in paragraph (1) that would 
                enhance the efforts and programs of financial 
                institutions to detect and deter money laundering 
                related to human trafficking, including any recommended 
                changes to internal policies, procedures, and controls 
                related to human trafficking;
                    (C) any recommended changes to training programs at 
                financial institutions to better equip employees to 
                deter and detect money laundering related to human 
                trafficking; and
                    (D) any recommended changes to expand human 
                trafficking-related information sharing among financial 
                institutions and between such financial institutions, 
                appropriate law enforcement agencies, and appropriate 
                Federal agencies.
    (b) Additional Reporting Requirement.--Section 105(d)(7) of the 
Trafficking Victims Protection Act of 2000 (22 U.S.C. 7103(d)(7)) is 
amended--
            (1) in the matter preceding subparagraph (A)--
                    (A) by inserting ``the Committee on Financial 
                Services,'' after ``the Committee on Foreign Affairs''; 
                and
                    (B) by inserting ``the Committee on Banking, 
                Housing, and Urban Affairs,'' after ``the Committee on 
                Foreign Relations,'';
            (2) in subparagraph (Q)(vii), by striking ``; and'' and 
        inserting a semicolon;
            (3) in subparagraph (R), by striking the period at the end 
        and inserting ``; and''; and
            (4) by adding at the end the following:
                    ``(S) the efforts of the United States to eliminate 
                money laundering related to human trafficking and the 
                number of investigations, arrests, indictments, and 
                convictions in money laundering cases with a nexus to 
                human trafficking.''.
    (c) Required Review of Procedures.--Not later than 180 days after 
the date of the enactment of this Act, the Federal Financial 
Institutions Examination Council, in consultation with the Secretary of 
the Treasury, victims of severe forms of trafficking in persons, 
advocates of persons at risk of becoming victims of severe forms of 
trafficking in persons, the United States Advisory Council on 
Trafficking, civil society organizations, the private sector, and 
appropriate law enforcement agencies, shall--
            (1) review and enhance training and examinations procedures 
        to improve the surveillance capabilities of anti-money 
        laundering and countering the financing of terrorism programs 
        to detect human trafficking-related financial transactions;
            (2) review and enhance procedures for referring potential 
        human trafficking cases to the appropriate law enforcement 
        agency; and
            (3) determine, as appropriate, whether requirements for 
        financial institutions and covered financial institutions are 
        sufficient to detect and deter money laundering related to 
        human trafficking.
    (d) Limitations.--Nothing in this section shall be construed to--
            (1) grant rulemaking authority to the Interagency Task 
        Force to Monitor and Combat Trafficking; or
            (2) authorize financial institutions to deny services to or 
        violate the privacy of victims of trafficking, victims of 
        severe forms of trafficking, or individuals not responsible for 
        promoting severe forms of trafficking in persons.

SEC. 306. SENSE OF CONGRESS ON RESOURCES TO COMBAT HUMAN TRAFFICKING.

    It is the sense of Congress that--
            (1) adequate funding should be provided for critical 
        Federal efforts to combat human trafficking;
            (2) the Department of the Treasury should have the 
        appropriate resources to vigorously investigate human 
        trafficking networks under section 111 of the Trafficking 
        Victims Protection Act of 2000 (22 U.S.C. 7108) and other 
        relevant statutes and Executive orders;
            (3) the Department of the Treasury and the Department of 
        Justice should each have the capacity and appropriate resources 
        to support technical assistance to develop foreign partners' 
        ability to combat human trafficking through strong national 
        anti-money laundering and countering the financing of terrorism 
        programs;
            (4) each United States Attorney's Office should be provided 
        appropriate funding to increase the number of personnel for 
        community education and outreach and investigative support and 
        forensic analysis related to human trafficking; and
            (5) the Department of State should be provided additional 
        resources, as necessary, to carry out the Survivors of Human 
        Trafficking Empowerment Act (section 115 of Public Law 114-22; 
        129 Stat. 243).
                                 <all>
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