I 

113TH CONGRESS 

1ST SESSION H. R. 1771 

To improve the enforcement of sanctions against the Government of North 

Korea, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 26, 2013 

Mr. ROYCE (for himself, Mr. ENGEL, Mr. CHABOT, Ms. ROS-LEHTINEN, Mr. 

ROHRABACHER, Mr. POE of Texas, Mr. SHERMAN, and Mr. SALMON) introduced the following bill; which was referred to the Committee on Foreign Affairs, and in addition to the Committees on Ways and Means, the 

Judiciary, Financial Services, and Oversight and Government Reform, for 

a period to be subsequently determined by the Speaker, in each case for 

consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To improve the enforcement of sanctions against the 

Government of North Korea, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘North Korea Sanctions Enforcement Act of 2013’’. 

6 (b) TABLE OF CONTENTS.—The table of contents for 

7 this Act is as follows: 


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Sec. 1. Short title; table of contents. 

Sec. 2. Findings. 

Sec. 3. Definitions. 

TITLE I—INVESTIGATIONS, PROHIBITED ACTIVITIES, AND 

PENALTIES 

Sec. 101. Statement of policy. 

Sec. 102. Investigations. 

Sec. 103. Briefing to Congress. 

Sec. 104. Designation of persons, foreign governments, and financial institutions. 

Sec. 105. Forfeiture of property. 

TITLE II—SANCTIONS AGAINST NORTH KOREAN PROLIFERATION, 

HUMAN RIGHTS VIOLATIONS, AND ILLICIT ACTIVITIES 

Sec. 201. Sanctions for material support of North Korean proliferation. 

Sec. 202. Sanctions against the provision of specialized financial messaging 

services to designated North Korean financial institutions. 

Sec. 203. Proliferation prevention sanctions. 

Sec. 204. Procurement sanctions. 

Sec. 205. Sanctions with respect to the provision of vessels or shipping services 

to transport certain goods related to proliferation, terrorism, or 

criminal activities of North Korea. 

Sec. 206. International assistance. 

Sec. 207. Exclusion, waiver, and removal of designation. 

TITLE III—PROMOTION OF HUMAN RIGHTS AND DISINVESTMENT 

Sec. 301. Information technology. 

Sec. 302. Disclosures to Securities and Exchange Commission relating to 

sanctionable activities. 

Sec. 303. Authority of State and local governments to divest from companies 

that invest in North Korea. 

Sec. 304. Safe harbor for changes of investment policies by asset managers. 

Sec. 305. Sense of Congress regarding certain ERISA plan investments. 

Sec. 306. Report on North Korean prison camps. 

Sec. 307. Limits on jurisdictional immunity. 

TITLE IV—GENERAL AUTHORITIES 

Sec. 401. Suspension of sanctions and other measures. 

Sec. 402. Termination of sanctions and other measures. 

Sec. 403. North Korea Enforcement and Humanitarian Fund. 

Sec. 404. Regulations. 

Sec. 405. Effective date. 

1 SEC. 2. FINDINGS. 

2 Congress finds the following: 

3 (1) The Government of North Korea has re4 peatedly violated its commitments to the complete, 


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1 verifiable, irreversible dismantlement of its nuclear 

2 weapons programs, and has willfully violated mul3 tiple United Nations Security Council resolutions 

4 calling for it to cease its development, testing, and 

5 production of weapons of mass destruction. 

6 (2) North Korea poses a grave risk for the pro7 liferation of nuclear weapons and other weapons of 

8 mass destruction. 

9 (3) The Government of North Korea has been 

10 implicated repeatedly in money laundering and illicit 

11 activities, including prohibited arms sales, narcotics 

12 trafficking, the counterfeiting of United States cur13 rency, and the counterfeiting of intellectual property 

14 of United States persons. 

15 (4) The Government of North Korea has re16 cently and repeatedly sponsored acts of international 

17 terrorism, including attempts to assassinate defec18 tors and human rights activists; repeated threats of 

19 violence against foreign persons, leaders, news20 papers, and cities; and the shipment of weapons to 

21 Hezbollah and Hamas via Iran. 

22 (5) North Korea has unilaterally withdrawn 

23 from the 1953 Armistice Agreement that ended the 

24 Korean War, and committed unprovoked acts of war 

25 against South Korea in 2010 by sinking the warship 


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1 Cheonan and killing 46 of her crew, and by shelling 

2 Yeonpyeong Island, killing four civilians. 

3 (6) North Korea maintains a system of brutal 

4 political prison camps that contain as many as 

5 200,000 men, women, and children, who live in atro6 cious living conditions with insufficient food, cloth7 ing, and medical care, and under constant fear of 

8 torture or arbitrary execution. 

9 (7) The Congress reaffirms the purposes estab10 lished in the North Korean Human Rights Act of 

11 2004 (22 U.S.C. 7802). 

12 (8) North Korea has prioritized weapons pro13 grams and the procurement of luxury goods, in defi14 ance of United Nations Security Council resolutions, 

15 and in gross disregard of the needs of its people. 

16 (9) Persons, including financial institutions, 

17 who engage in transactions with, or provide financial 

18 services to, the Government of North Korea and its 

19 financial institutions without establishing sufficient 

20 financial safeguards against North Korea’s use of 

21 these transactions to promote proliferation, weapons 

22 trafficking, human rights violations, illicit activity, 

23 and the purchase of luxury goods, aid and abet 

24 North Korea’s misuse of the international financial 


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1 system, and also violate the intent of relevant United 

2 Nations Security Council resolutions. 

3 (10) The Government of North Korea’s conduct 

4 poses an imminent threat to the security of the 

5 United States and its allies, to the global economy, 

6 to the safety of members of the United States armed 

7 forces, to the integrity of the global financial system, 

8 to the integrity of global nonproliferation programs, 

9 and to the people of North Korea. 

10 (11) The Congress seeks, through this legisla11 tion, to use nonmilitary means to address this emer12 gency, to provide diplomatic leverage to negotiate 

13 necessary changes in North Korea’s conduct, and to 

14 ease the suffering of the people of North Korea. 

15 SEC. 3. DEFINITIONS. 

16 In this Act: 

17 (1) ACCOUNT; CORRESPONDENT ACCOUNT; PAY18 ABLE-THROUGH ACCOUNT.—The terms ‘‘account’’, 

19 ‘‘correspondent account’’, and ‘‘payable-through ac20 count’’ have the meanings given those terms, respec21 tively, under section 5318A of title 31, United 

22 States Code. 

23 (2) APPROPRIATE CONGRESSIONAL COMMIT24 TEES.—The term ‘‘appropriate congressional com25 mittees’’ means— 


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1 (A) the Committee on Foreign Affairs and 

2 the Committee on Financial Services of the 

3 House of Representatives; and 

4 (B) the Committee on Foreign Relations 

5 and the Committee on Banking, Housing, and 

6 Urban Affairs of the Senate. 

7 (3) CENSORSHIP.—The term ‘‘censorship’’ 

8 means, with respect to North Korea, activities 

9 that— 

10 (A) prohibit, limit, or penalize the exercise 

11 of freedom of expression or assembly by citizens 

12 of North Korea; or 

13 (B) limit access to print or broadcast 

14 media, including the facilitation or support of 

15 intentional frequency manipulation by the Gov16 ernment of North Korea that would jam or re17 strict an international signal. 

18 (4) DESIGNATED PERSON.—The term ‘‘des19 ignated person’’ means a person, foreign govern20 ment, or financial institution designated by the 

21 President under subsection (a), (b), (c), or (d) of 

22 section 104 for purposes of applying the sanctions 

23 described in title II (as applicable) with respect to 

24 the person, foreign government, or financial institu25 tion. 


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1 (5) DOMESTIC FINANCIAL INSTITUTION.—The 

2 term ‘‘domestic financial institution’’ has the mean3 ing given such term in section 5312 of title 31, 

4 United States Code. 

5 (6) FACILITATE.— 

6 (A) IN GENERAL.—The term ‘‘facilitate’’ 

7 means, with respect to any of the activities de8 scribed in section 104(a), to— 

9 (i) provide material support to, aid, 

10 abet, attempt, or conspire to commit the 

11 activity; 

12 (ii) conceal any evidence, proceeds, or 

13 instrumentalities of the activity; 

14 (iii) possess, receive, exchange, or 

15 transmit the proceeds, instrumentalities, or 

16 other property involved in the activity; 

17 (iv) sell, lease, or provide a vessel or 

18 conveyance, to register of reflag a vessel or 

19 conveyance, or provide insurance or rein20 surance or any other shipping service in 

21 furtherance of the activity; or 

22 (v) engage in any act with the pur23 pose of causing the activity to occur. 

24 (B) EXCEPTION.—Nothing in this para25 graph shall be construed to apply with respect 


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1 to the provision of specialized financial mes2 saging services (as described in section 202). 

3 (7) FINANCIAL INSTITUTION.—The term ‘‘fi4 nancial institution’’ means a financial institution 

5 specified in subparagraph (A), (B), (C), (D), (E), 

6 (F), (G), (H), (I), (J), (M), or (Y) of section 

7 5312(a)(2) of title 31, United States Code. 

8 (8) FINANCIAL TRANSACTION.—The term ‘‘fi9 nancial transaction’’ has the meaning given such 

10 term in section 1956 of title 18, United States Code. 

11 (9) FOREIGN GOVERNMENT.—The term ‘‘for12 eign government’’ has the meaning given the term 

13 ‘‘foreign state’’ in section 1603 of title 28, United 

14 States Code. 

15 (10) GOVERNMENT OF NORTH KOREA.—The 

16 term ‘‘Government of North Korea’’ means— 

17 (A) the Government of North Korea; 

18 (B) any political subdivision, agency, or in19 strumentality thereof; 

20 (C) the National Defense Commission of 

21 North Korea and its members; and 

22 (D) any person owned or controlled by, or 

23 acting for or on behalf of, the Government of 

24 North Korea. 


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1 (11) INSTRUMENTALITIES.—The term ‘‘instru2 mentalities’’ includes, with respect to any of the ac3 tivities described in section 104(a)— 

4 (A) any property other than proceeds of 

5 such transaction which is also part of the sub6 ject matter of such transaction; 

7 (B) any property used to facilitate such 

8 transaction, including any article, container, or 

9 conveyance used, or intended to be used, to fa10 cilitate such transaction; and 

11 (C) any property other than the proceeds 

12 of such transaction that is involved in or used 

13 to facilitate such transaction. 

14 (12) INTERNATIONAL TERRORISM.—The term 

15 ‘‘international terrorism’’ has the meaning given 

16 such term in section 2331 of title 18, United States 

17 Code. 

18 (13) LUXURY GOODS.—The term ‘‘luxury 

19 goods’’ has the meaning given such term in subpart 

20 746.4 of title 15, Code of Federal Regulations, and 

21 includes the items listed in Supplement No. 1 to 

22 such regulation, and any similar items. 

23 (14) MONETARY INSTRUMENT.—The term 

24 ‘‘monetary instrument’’ has the meaning given such 


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1 term under section 5312 of title 31, United States 

2 Code, and also includes— 

3 (A) stored value cards, tangible or intan4 gible prepaid access devices, or other instru5 ments or devices for the electronic storage or 

6 transmission of value, as defined in part 1010 

7 of title 31, Code of Federal Regulations; and 

8 (B) any covered goods, as defined in sec9 tion 1027.100 of title 31, Code of Federal Reg10 ulations, and any instrument or tangible or in11 tangible access device use for the electronic 

12 storage and transmission of a representation of 

13 covered goods. 

14 (15) NORTH KOREAN FINANCIAL INSTITU15 TION.—The term ‘‘North Korean financial institu16 tion’’ means— 

17 (A) a financial institution organized under 

18 the laws of North Korea or any jurisdiction 

19 within North Korea, including a foreign branch 

20 of such an institution; 

21 (B) a financial institution located in North 

22 Korea, except as may be excluded from such 

23 definition by the President in accordance with 

24 section 207(d); 


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1 (C) a financial institution, wherever lo2 cated, owned or controlled by the Government 

3 of North Korea; or 

4 (D) a financial institution, wherever lo5 cated, owned or controlled by a financial insti6 tution described in subparagraph (A), (B), or 

7 (C). 

8 (16) NORTH KOREAN PROPERTY.—The term 

9 ‘‘North Korean property’’ includes any funds, finan10 cial assets, technology, property, or resources that 

11 are owned or controlled, directly or indirectly, by the 

12 Government of North Korea. 

13 (17) PERSON.—The term ‘‘person’’ means— 

14 (A) a natural person; 

15 (B) a corporation, business association, 

16 partnership, association, society, trust, financial 

17 institution, joint venture, corporation, group, 

18 subgroup, agency, insurer, underwriter, guar19 antor, and any other business organization, any 

20 other nongovernmental entity, organization, or 

21 group, and any governmental entity operating 

22 as a business enterprise; and 

23 (C) a successor to any entity described in 

24 subparagraph (B). 


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1 (18) PROCEEDS.—The term ‘‘proceeds’’ has the 

2 meaning given such term in section 1956 of title 18, 

3 United States Code. 

4 (19) SERIOUS HUMAN RIGHTS ABUSE.—The 

5 term ‘‘serious human rights abuse’’ includes geno6 cide, slavery, kidnaping, peonage, murder, torture, 

7 and aggravated sexual abuse, as those terms are de8 scribed and made punishable under part I of title 

9 18, United States Code, when carried out by the 

10 Government of North Korea, without regard to 

11 whether such conduct is within the criminal jurisdic12 tion of the United States. 

13 (20) SPECIFIED UNLAWFUL ACTIVITY.—The 

14 term ‘‘specified unlawful activity’’ has the meaning 

15 given such term in section 1956 of title 18, United 

16 States Code. 

17 (21) TRANSACTION.—The term ‘‘transaction’’ 

18 has the meaning given such term in section 1956 of 

19 title 18, United States Code. 

20 (22) UNITED STATES PERSON.—The term 

21 ‘‘United States person’’ means— 

22 (A) a natural person who is a citizen of the 

23 United States or who owes permanent alle24 giance to the United States; and 


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1 (B) a corporation or other legal entity 

2 which is organized under the laws of the United 

3 States, any State or territory thereof, or the 

4 District of Columbia, if a natural person de5 scribed in subparagraph (A) owns, directly or 

6 indirectly, more than 50 percent of the out7 standing capital stock or other beneficial inter8 est in such corporation or other legal entity. 

9 TITLE I—INVESTIGATIONS, PRO10 HIBITED ACTIVITIES, AND 

11 PENALTIES 

12 SEC. 101. STATEMENT OF POLICY. 

13 In order to achieve the peaceful disarmament of 

14 North Korea, Congress finds that it is necessary— 

15 (1) to encourage all responsible members of the 

16 international community to fully and promptly im17 plement United Nations Security Council Resolution 

18 2094; 

19 (2) to sanction the entities, officials, and finan20 cial institutions that facilitate proliferation, illicit ac21 tivities, arms trafficking, imports of luxury goods, 

22 severe human rights abuses, cash smuggling, and 

23 censorship by the Government of North Korea; 

24 (3) to authorize the President to sanction finan25 cial institutions and jurisdictions that fail to exercise 


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1 due diligence to ensure that such financial institu2 tions and jurisdictions do not facilitate proliferation, 

3 arms trafficking, kleptocracy, and imports of luxury 

4 goods by the Government of North Korea; and 

5 (4) to deny the Government of North Korea ac6 cess to the funds it uses to obtain nuclear weapons, 

7 ballistic missiles, and luxury goods instead of pro8 viding for the needs of its people. 

9 SEC. 102. INVESTIGATIONS. 

10 (a) INITIATION OF INVESTIGATION.—The President 

11 shall initiate an investigation into the possible designation 

12 of a person under section 104(a) upon receipt by the 

13 United States of credible information indicating that such 

14 person has engaged in one or more activities described in 

15 section 104(a) and, except as provided in section 207, 

16 shall designate any person who the President determines 

17 has engaged in one or more activities described in section 

18 104(a). 

19 (b) PERSONNEL.—The President shall direct the Sec20 retary of State, the Secretary of the Treasury, the Attor21 ney General, the Secretary of Homeland Security, the Sec22 retary of Defense, the Director of Central Intelligence, and 

23 the heads of other Federal departments and agencies as 

24 may be necessary to assign sufficient experienced and 

25 qualified investigators, attorneys, and technical personnel 


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1 to investigate and sanction any of the activities described 

2 in section 104(a) and to coordinate and ensure the effec3 tive enforcement of the provisions of this Act. 

4 (c) SHARING OF INFORMATION.—The Federal de5 partments and agencies supporting the enforcement of 

6 this Act shall share such information with, and shall pro7 vide each other access to, databases and other sources of 

8 information as may be necessary to enforce the provisions 

9 of this Act. 

10 SEC. 103. BRIEFING TO CONGRESS. 

11 (a) IN GENERAL.—Not later than 180 days after the 

12 date of the enactment of this Act, and every 180 days 

13 thereafter, the President shall provide to the appropriate 

14 congressional committees a briefing on the following: 

15 (1) ASSETS OF THE GOVERNMENT OF NORTH

16 KOREA.—The significant assets held by the Govern17 ment of North Korea, the amount of each such 

18 asset, and the form and financial institution (if any) 

19 in which each such asset is held. 

20 (2) TRANSACTIONS INVOLVING THE GOVERN21 MENT OF NORTH KOREA.—The significant inter22 national financial transactions by the Government of 

23 North Korea during the previous 180 days, includ24 ing the amounts, parties, terms, and date of each 

25 such transaction, the property involved in the transVerDate Mar 15 2010 02:58 May 01, 2013 Jkt 029200 PO 00000 Frm 00015 Fmt 6652 Sfmt 6201 E:\BILLS\H1771.IH H1771

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1 action, and the names and nationalities of any finan2 cial institutions involved in each such transaction. 

3 (3) DESIGNATIONS.—Each person, foreign gov4 ernment, or financial institution designated under 

5 subsection (a), (b), (c), or (d) of section 104 during 

6 the previous 180 days. 

7 (4) WAIVERS, ETC.—All waivers, exclusions, 

8 and removals of designation granted under section 

9 207 during the previous 180 days. 

10 (b) CONTENTS OF BRIEFING.—The briefings re11 quired by subsection (a) shall also contain— 

12 (1) a list of all persons and foreign govern13 ments that have provided financial, storage, trans14 portation, communication, messaging, promotional, 

15 or other services with respect to such property and 

16 transactions; 

17 (2) an assessment of the sufficiency of financial 

18 safeguards to ensure that such property and trans19 actions are prevented from being used to facilitate 

20 any of the activities described in section 104(a), and 

21 recommendations for any safeguards necessary to 

22 prevent such use; and 

23 (3) whether any evidence exists to suggest that 

24 such property constitutes the proceeds or instrumen25 talities of any activity described in section 104(a). 


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1 SEC. 104. DESIGNATION OF PERSONS, FOREIGN GOVERN2 MENTS, AND FINANCIAL INSTITUTIONS. 

3 (a) DESIGNATION OF PERSONS WHO ENGAGE IN

4 CERTAIN ACTIVITIES.—Except as provided in section 207, 

5 the President shall exercise the authorities of the Inter6 national Emergency Economic Powers Act (50 U.S.C. 

7 1701 et seq.) without regard to section 202 of such Act 

8 to designate and apply the sanctions described in title II, 

9 as applicable, with respect to any person if the President 

10 determines that the person— 

11 (1) knowingly and materially contributes, 

12 through the export to or import from North Korea 

13 of any goods or technology, to the efforts by any 

14 government or person to use, develop, produce, 

15 stockpile, or otherwise acquire nuclear, radiological, 

16 chemical, or biological weapons, or any device or sys17 tem designed in whole or in part to deliver such 

18 weapons; 

19 (2) knowingly exports, or facilitates the export 

20 of, defense articles and defense services to the Gov21 ernment of North Korea, or knowingly exports, or 

22 facilitates the export of, any defense articles and de23 fense services from North Korea to any other coun24 try; 

25 (3) knowingly exports, or facilitates the export 

26 of, any luxury goods to North Korea; 


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1 (4) knowingly provides, sells, leases, registers, 

2 or reflags a vessel, aircraft, or other conveyance, or 

3 provides insurance or reinsurance or any other ship4 ping or transportation service used or intended to be 

5 used for, the transportation of goods to or from 

6 North Korea, for purposes facilitating a specified 

7 unlawful activity, or for purposes of evading a regu8 lation established under this Act or the International 

9 Emergency Economic Powers Act; 

10 (5) knowingly transfers, pays, exports, with11 draws, or otherwise deals with any property or inter12 est in property of the Government of North Korea 

13 for purposes of facilitating a specified unlawful ac14 tivity, or for purposes of evading a regulation estab15 lished under this Act or the International Emer16 gency Economic Powers Act; 

17 (6) knowingly engages in or facilitates censor18 ship by the Government of North Korea; or 

19 (7) knowingly commits or facilitates a serious 

20 human rights abuse by the Government of North 

21 Korea. 

22 (b) DESIGNATION OF PERSONS AND FOREIGN GOV23 ERNMENTS THAT ARE SANCTIONED BY EXECUTIVE

24 ORDER OR THE UNITED NATIONS.—Except as provided 

25 in section 207, the President shall exercise the authorities 


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1 of the International Emergency Economic Powers Act (50 

2 U.S.C. 1701 et seq.) without regard to section 202 of such 

3 Act to designate and apply the sanctions described in title 

4 II, as applicable, with respect to any person or foreign gov5 ernment if the President determines the person or foreign 

6 government— 

7 (1) has been listed or sanctioned under any reg8 ulation or Executive Order No. 13382, 13224, 

9 13551, or otherwise pursuant to the International 

10 Emergency Economic Powers Act for illicit activities 

11 or activities concerning North Korea’s proliferation 

12 of weapons of mass destruction; 

13 (2) has been sanctioned under United Nations 

14 Security Council resolutions 1695, 1718, 1874, 

15 2087, 2094, or other such resolution concerning 

16 North Korea’s proliferation of weapons of mass de17 struction; or 

18 (3) has been convicted of a criminal offense for 

19 any of the activities described in paragraphs (1) 

20 through (7) of subsection (a). 

21 (c) DESIGNATION OF GOVERNMENT OF NORTH

22 KOREA.—Except as provided in section 207, the President 

23 shall exercise the authorities of the International Emer24 gency Economic Powers Act (50 U.S.C. 1701 et seq.) 

25 without regard to section 202 of such Act to designate 


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1 and apply the sanctions described in title II, as applicable, 

2 with respect to the Government of North Korea. 

3 (d) DISCRETIONARY AUTHORITY TO DESIGNATE

4 FOREIGN GOVERNMENTS AND FINANCIAL INSTITU5 TIONS.—Except as provided in section 207, the President 

6 may exercise the authorities of the International Emer7 gency Economic Powers Act (50 U.S.C. 1701 et seq.) 

8 without regard to section 202 of such Act to designate 

9 and apply any of the sanctions described in sections 201 

10 and 204, as applicable, with respect to any foreign govern11 ment or financial institution if the President determines 

12 the foreign government or financial institution, after the 

13 date that is 180 days after the date of the enactment of 

14 this Act— 

15 (1) engages in any of the activities described in 

16 paragraphs (1) through (7) of subsection (a); 

17 (2) fails to freeze any funds, financial assets, or 

18 economic resources of a person designated under 

19 subsection (a) or (b) in accordance with the legal 

20 process of the country in which such property is 

21 held; 

22 (3) fails to freeze any funds, financial assets, or 

23 economic resources that could be used to facilitate 

24 any of the activities described in paragraph (1), (2), 

25 or (3) of subsection (a), in accordance with the legal 


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1 process of the country in which such property is 

2 held; 

3 (4) fails to apply enhanced monitoring to pre4 vent any transactions that could be used to facilitate 

5 any of the activities described in paragraph (1), (2), 

6 or (3) of subsection (a); 

7 (5) permits any North Korean financial institu8 tion to open any new branch, subsidiary or rep9 resentative office, or to establish any new joint ven10 ture within its jurisdiction, or to take an ownership 

11 interest in, or establish or maintain a correspondent 

12 relationship with any bank in its jurisdiction, if such 

13 branch, subsidiary, representative office, joint ven14 ture, ownership interest, or correspondent relation15 ship could be used to facilitate any of the activities 

16 described in paragraph (1), (2), or (3) of subsection 

17 (a); 

18 (6) fails to prohibit any transfers of cash, in19 cluding through cash couriers, transiting to and 

20 from North Korea so as to ensure such transfers of 

21 bulk cash are not used to facilitate any of the activi22 ties described in paragraph (1), (2), or (3) of sub23 section (a); 

24 (7) provides public financial support for trade 

25 with the Government of North Korea (including the 


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1 granting of export credits, guarantees or insurance 

2 to their nationals or entities involved in such trade) 

3 when such financial support could be used to facili4 tate any of the activities described in paragraph (1), 

5 (2), or (3) of subsection (a); or 

6 (8) facilitates the use of any proceeds of the 

7 bribery of an official of the Government of North 

8 Korea, or the misappropriation, theft, or embezzle9 ment of public funds by, or for the benefit of, an of10 ficial of the Government of North Korea. 

11 (e) APPLICATION TO SUCCESSORS, ETC.—The des12 ignation of a person, foreign government, or financial in13 stitution under subsection (a), (b), (c), or (d) shall also 

14 apply with respect to— 

15 (1) a successor entity to the designated person; 

16 (2) a person owned or controlled by, or under 

17 common ownership or control with, the designated 

18 person, if the person owned or controlled by, or 

19 under common ownership or control with (as the 

20 case may be), the designated person knowingly en21 gaged in the transaction causing the designation; 

22 (3) a corporate officer or principal of, or a 

23 shareholder with a controlling interest in, such des24 ignated person, if such corporate officer, or principal 

25 or shareholder with a controlling interest, knowingly 


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1 engaged in the transaction causing the designation; 

2 and 

3 (4) a United States person, including a domes4 tic financial institution, to the same extent as if the 

5 transaction were engaged in by the United States 

6 person or in the United States if— 

7 (A) a person, including a foreign sub8 sidiary, owned or controlled by the United 

9 States person engages in or facilitates any of 

10 the activities described in paragraphs (1) 

11 through (7) of subsection (a); and 

12 (B) the United States person knew or 

13 should have known that the person engaged in 

14 or facilitated any of the activities described in 

15 paragraphs (1) through (7) of subsection (a). 

16 (f) REGULATIONS.— 

17 (1) IN GENERAL.—The President shall promul18 gate such regulations as may be necessary under the 

19 authority of the International Emergency Economic 

20 Powers Act (50 U.S.C. 1701 et seq.) to carry out 

21 this section. 

22 (2) ADDITIONAL REQUIREMENT.—The regula23 tions promulgated under this subsection shall re24 quire enhanced due diligence for all transactions 

25 with the Government of North Korea or involving 


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1 North Korean property to prevent the facilitation of 

2 activities described in any of paragraphs (1) through 

3 (7) of subsection (a) or any of paragraphs (1) 

4 through (8) of subsection (d). 

5 (g) PENALTIES.—Any person who engages in the 

6 conduct described in subsection (a), or who violates any 

7 regulation promulgated under subsection (f) or section 

8 404, shall be subject to the penalties under section 206 

9 of the International Emergency Economic Powers Act (50 

10 U.S.C. 1705) in the same manner and to the same extent 

11 as such penalties would apply to any person who violates 

12 any license, order, regulation, or prohibition issued under 

13 that Act (50 U.S.C. 1701 et seq.). 

14 SEC. 105. FORFEITURE OF PROPERTY. 

15 (a) USE OF FUNDS DERIVED FROM CIVIL FORFEIT16 URES.—Section 981(e) of title 18, United States Code, is 

17 amended— 

18 (1) in paragraph (6), by striking ‘‘or’’ at the 

19 end; 

20 (2) in paragraph (7), by striking the period at 

21 the end and inserting ‘‘; or’’; and 

22 (3) by inserting after paragraph (7) the fol23 lowing new paragraph: 

24 ‘‘(8) in the case of property involved in any of 

25 the activities described in section 104(a) of the 


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1 North Korea Sanctions Enforcement Act of 2013, in 

2 accordance with section 403 of that Act.’’. 

3 (b) CUSTOMS FORFEITURES.—Notwithstanding sec4 tions 609, 613(a)(3), and 613A(c) of the Tariff Act of 

5 1930 (19 U.S.C. 1609(a), 1613(a)(3), and 1613b(c)), any 

6 funds derived from the forfeiture of property under section 

7 596 of the Tariff Act of 1930 (19 U.S.C. 1595a) that 

8 relates to any of the activities described in section 104(a) 

9 shall be deposited into the North Korea Enforcement and 

10 Humanitarian Fund established under section 403. 

11 (c) PAYMENT IN LIEU OF FORFEITURE.—If a finan12 cial institution or other person pays a sum of money to 

13 the United States— 

14 (1) in lieu of the commencement of criminal, 

15 civil, or administrative forfeiture proceedings to for16 feit property involving any of the activities described 

17 in section 104(a), or 

18 (2) in settlement of such forfeiture proceedings 

19 if commenced, 

20 such sum of money shall be treated as forfeited funds and 

21 disposed of in accordance with section 403. 


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1 TITLE II—SANCTIONS AGAINST 

2 NORTH KOREAN PROLIFERA3 TION, HUMAN RIGHTS VIOLA4 TIONS, AND ILLICIT ACTIVI5 TIES 

6 SEC. 201. SANCTIONS FOR MATERIAL SUPPORT OF NORTH 

7 KOREAN PROLIFERATION. 

8 (a) SENSE OF CONGRESS.—It is the sense of Con9 gress that the Government of North Korea should be 

10 treated as a primary money laundering concern in accord11 ance with section 5318A of title 31, United States Code. 

12 (b) REQUIREMENTS FOR FINANCIAL INSTITUTIONS

13 MAINTAINING ACCOUNTS FOR FOREIGN FINANCIAL IN14 STITUTIONS.— 

15 (1) TERMINATION OF CORRESPONDENT OR PAY16 ABLE-THROUGH ACCOUNTS.—A domestic financial 

17 institution shall terminate any correspondent ac18 count that is established, maintained, administered, 

19 or managed for, or on behalf of, any person, foreign 

20 government, or financial institution designated 

21 under subsection (a) or (b) of section 104. 

22 (2) PROHIBITION ON INDIRECT COR23 RESPONDENT ACCOUNTS.—If a domestic financial 

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1 istered, or managed by that domestic financial insti2 tution for a foreign financial institution is being 

3 used by the foreign financial institution to provide 

4 financial services indirectly to any person, foreign 

5 government, or financial institution designated 

6 under subsection (a) or (b) of section 104, the do7 mestic financial institution shall ensure that the cor8 respondent account is no longer used to provide such 

9 services, including, when necessary, terminating the 

10 correspondent account. 

11 (3) ENHANCED DUE DILIGENCE AND REPORT12 ING REQUIREMENTS.—Except as provided in section 

13 207, the Secretary of Treasury shall require all do14 mestic financial institutions to apply one or more of 

15 the special measures described in paragraphs (1) 

16 through (5) of section 5318A(b) of title 31, United 

17 States Code, to— 

18 (A) any financial institution that estab19 lishes, maintains, administers, or manages any 

20 correspondent account for a person, financial 

21 institution, or foreign government designated 

22 under subsection (a) or (b) of section 104; and 

23 (B) any person, financial institution, or 

24 foreign government designated under subsection 

25 (c) or (d) of section 104. 


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1 (4) ADDITIONAL REQUIREMENTS.—A domestic 

2 financial institution required to terminate an ac3 count pursuant to this subsection— 

4 (A) shall not permit the foreign bank to 

5 establish any new positions or execute any 

6 transactions through such account, other than 

7 those necessary to close the account; and 

8 (B) may reestablish an account closed pur9 suant to such subsection if the Secretary of the 

10 Treasury determines that the account will not 

11 be used to provide financial services indirectly 

12 to a person designated under subsection (a) or 

13 (b) of section 104. 

14 (5) PROHIBITION ON DESIGNATION AS PRIMARY

15 DEALER.—With respect to a designated person that 

16 is a domestic financial institution, neither the Board 

17 of Governors of the Federal Reserve System nor the 

18 Federal Reserve Bank of New York may designate, 

19 or permit the continuation of any prior designation 

20 of, such financial institution as a primary dealer in 

21 United States Government debt instruments. 

22 (6) PROHIBITION ON SERVICE AS A REPOSI23 TORY OF GOVERNMENT FUNDS.—With respect to a 

24 designated person that is a domestic financial insti25 tution, such domestic financial institution may not 


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1 serve as agent of the United States Government or 

2 serve as a repository for United States Government 

3 funds. 

4 (7) FOREIGN EXCHANGE.—The President may 

5 prohibit any transactions in foreign exchange by any 

6 domestic financial institution in which a designated 

7 person has any interest. 

8 (8) BANKING TRANSACTIONS.—The President 

9 may prohibit any transfers of credit or payments be10 tween domestic financial institutions or by, through, 

11 or to any financial institution, to the extent that 

12 such transfers or payments involve any interest of a 

13 designated person. 

14 (9) PENALTIES.— 

15 (A) TITLE 31, U.S.C.—The penalties pro16 vided for in sections 5321(a) and 5322 of title 

17 31, United States Code, shall apply to a person 

18 that violates a regulation prescribed under 

19 paragraph (1), (2), (3), or (4) in the same man20 ner and to the same extent as such penalties 

21 would apply to any person that is otherwise 

22 subject to such section 5321(a) or 5322. 

23 (B) IEEPA.—The penalties provided for 

24 in section 206 of the International Emergency 

25 Economic Powers Act (50 U.S.C. 1705) shall 


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1 apply to a person who violates a regulation pre2 scribed under paragraph (5), (6), (7), or (8) in 

3 the same manner and to the same extent as 

4 such penalties would apply to any person that 

5 is otherwise subject to such section. 

6 (c) BLOCKING OF PROPERTY.— 

7 (1) IN GENERAL.—The President shall exercise 

8 the authorities of the International Emergency Eco9 nomic Powers Act (50 U.S.C. 1701 et seq.) without 

10 regard to section 202 of such Act to immediately 

11 freeze or block— 

12 (A) any North Korean property, and 

13 (B) any property involved in any of the ac14 tivities described in section 104(a), 

15 within the jurisdiction of the United States, or held 

16 by a domestic financial institution. 

17 (2) PROPERTY OF A DESIGNATED PERSON.— 

18 The President may exercise the authorities of the 

19 International Emergency Economic Powers Act (50 

20 U.S.C. 1701 et seq.) without regard to section 202 

21 of such Act to block any property of a designated 

22 person within the jurisdiction of the United States, 

23 or held by a domestic financial institution. 

24 (3) PROPERTY DERIVED FROM MISAPPROPRIA25 TION, THEFT, OR EMBEZZLEMENT OF PUBLIC


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1 FUNDS.—The President shall exercise the authorities 

2 of the International Emergency Economic Powers 

3 Act (50 U.S.C. 1701 et seq.) without regard to sec4 tion 202 of such Act to encourage foreign govern5 ments and foreign financial institutions to block, in 

6 accordance with the legal process of the country in 

7 which the property is held, any property derived 

8 from the misappropriation, theft, or embezzlement of 

9 public funds by, or for the benefit of, an official of 

10 the Government of North Korea. 

11 (4) SCOPE OF AUTHORITY.—Activities prohib12 ited by reason of the blocking of property and finan13 cial transactions under this section shall include the 

14 following: 

15 (A) Payments or transfers of any property, 

16 or any transactions involving the transfer of 

17 anything of economic value by any United 

18 States person, including any United States fi19 nancial institution and any branch or office of 

20 such financial institution that is located outside 

21 the United States, to a designated person. 

22 (B) The transfer directly or indirectly, of 

23 any goods, technology, or services by a United 

24 States person to a designated person. 


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1 (d) REVIEW OF TRANSACTION LICENSES.—The Sec2 retary of the Treasury shall review all transaction licenses 

3 granted pursuant to subpart E of part 510 of title 31, 

4 Code of Federal Regulations, all applications for such li5 censes, and all exclusions from such licensing require6 ments not later than 180 days after the date of the enact7 ment of this Act, and shall deny or revoke any license for 

8 any transaction that, in the determination of the Secretary 

9 of the Treasury, lacks sufficient financial controls to en10 sure that such transaction will not facilitate any of the 

11 activities described in section 104(a). 

12 (e) DENIAL OF VISAS.—The President may direct the 

13 Secretary of State to deny a visa to, and the Secretary 

14 of Homeland Security to exclude from the United States, 

15 any alien who is a designated person, or who is a corporate 

16 officer or principal of, or a shareholder with a controlling 

17 interest in, a designated person. 

18 (f) INTERNATIONAL COOPERATION.—The President 

19 shall— 

20 (1) take appropriate steps to secure the effec21 tive enforcement of anti-money laundering protocols 

22 consistent with the purpose of this Act, through bi23 lateral discussions with foreign governments and 

24 through the Financial Action Task Force; and 


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1 (2) support efforts of foreign governments to 

2 enact and enforce legislation consistent with the pur3 poses of this Act. 

4 SEC. 202. SANCTIONS AGAINST THE PROVISION OF SPE5 CIALIZED FINANCIAL MESSAGING SERVICES 

6 TO DESIGNATED NORTH KOREAN FINANCIAL 

7 INSTITUTIONS. 

8 (a) BRIEFINGS REQUIRED.— 

9 (1) IN GENERAL.—Not later than 90 days after 

10 the date of the enactment of this Act, and every 180 

11 days thereafter, the President shall provide to the 

12 appropriate congressional committees a briefing on 

13 the following: 

14 (A) A list of all persons and foreign gov15 ernments that the President has identified that 

16 directly provide specialized financial messaging 

17 services to, or enable or facilitate direct or indi18 rect access to such messaging services for, any 

19 North Korean financial institution designated 

20 under section 104(b). 

21 (B) A detailed assessment of the status of 

22 efforts by the President to end the direct provi23 sion of such messaging services to, and the ena24 bling or facilitation of direct or indirect access 

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1 rean financial institution designated under sec2 tion 104(b). 

3 (2) ENABLING OR FACILITATION OF ACCESS TO

4 SPECIALIZED FINANCIAL MESSAGING SERVICES

5 THROUGH INTERMEDIARY FINANCIAL INSTITU6 TIONS.—For purposes of paragraph (1) and sub7 section (b), enabling or facilitating direct or indirect 

8 access to specialized financial messaging services for 

9 any North Korean financial institution designated 

10 under section 104(b) includes doing so by serving as 

11 an intermediary financial institution with access to 

12 such messaging services. 

13 (b) AUTHORIZATION OF IMPOSITION OF SANC14 TIONS.— 

15 (1) IN GENERAL.—Except as provided in para16 graph (2), if, on or after the date that is 180 days 

17 after the date of the enactment of this Act, a person 

18 continues to knowingly and directly provide special19 ized financial messaging services to, or knowingly 

20 enable or facilitate direct or indirect access to such 

21 messaging services for any North Korean financial 

22 institution designated under section 104(b), the 

23 President may impose sanctions pursuant to section 

24 206(b) of the International Emergency Economic 


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1 Powers Act (50 U.S.C. 1705(b)) with respect to the 

2 person. 

3 (2) EXCEPTION.—The President may not im4 pose sanctions pursuant to paragraph (1) with re5 spect to a person for directly providing specialized fi6 nancial messaging services to, or enabling or facili7 tating direct or indirect access to such messaging 

8 services for, any North Korean financial institution 

9 designated under section 104(b) if— 

10 (A) the person is subject to a sanctions re11 gime under its governing foreign law that re12 quires it to eliminate the knowing provision of 

13 such messaging services to, and the knowing 

14 enabling and facilitation of direct or indirect ac15 cess to such messaging services for any North 

16 Korean financial institution designated under 

17 section 104(b); and 

18 (B) the person has, pursuant to that sanc19 tions regime, terminated the knowing provision 

20 of such messaging services to, and the knowing 

21 enabling and facilitation of direct or indirect ac22 cess to such messaging services for, any North 

23 Korean financial institution designated under 

24 section 104(b) identified under such governing 


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1 foreign law for purposes of that sanctions re2 gime. 

3 (3) REQUIREMENT FOR CONSULTATION.—The 

4 President may not impose sanctions pursuant to 

5 paragraph (1) with respect to a person for directly 

6 providing specialized financial messaging services to, 

7 or enabling or facilitating direct or indirect access to 

8 such messaging services for, any North Korean fi9 nancial institution designated under section 104(b) 

10 unless the President has made good-faith efforts to 

11 obtain the voluntary cessation of such specialized fi12 nancial messaging services by such person. 

13 SEC. 203. PROLIFERATION PREVENTION SANCTIONS. 

14 (a) IN GENERAL.—Section 6(j) of the Export Admin15 istration Act of 1979 (50 U.S.C. App. 2405), as continued 

16 in effect under the International Emergency Economic 

17 Powers Act, is amended by adding at the end the following 

18 new paragraph: 

19 ‘‘(7) A validated license shall be required for 

20 the export to North Korea of any goods or tech21 nology without regard to whether or not the Sec22 retary of State has designated North Korea as a 

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1 mined by the Secretary of State under paragraph 

2 (1) or any other provision of law.’’. 

3 (b) TRANSACTIONS WITH COUNTRIES SUPPORTING

4 ACTS OF INTERNATIONAL TERRORISM.—The prohibitions 

5 and restrictions described in section 40 of the Arms Ex6 port Control Act (22 U.S.C. 2780) shall also apply to ex7 porting or otherwise providing (by sale, lease or loan, 

8 grant, or other means), directly or indirectly, any muni9 tions item or defense articles and defense services to the 

10 Government of North Korea without regard to whether or 

11 not North Korea is a country with respect to which sub12 section (d) of such section (relating to designation of state 

13 sponsors of terrorism) applies. 

14 SEC. 204. PROCUREMENT SANCTIONS. 

15 (a) IN GENERAL.—Except as provided in this section, 

16 the United States Government may not procure, or enter 

17 into any contract for the procurement of, any goods or 

18 services from any designated person. 

19 (b) FAR.—The Federal Acquisition Regulation 

20 issued pursuant to section 1303 of title 41, United States 

21 Code, shall be revised to require a certification from each 

22 person that is a prospective contractor that such person 

23 does not engage in any of the activities described in section 

24 104(a). Such amendment shall apply with respect to con25 tracts for which solicitations are issued on or after the 


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1 date that is 90 days after the date of the enactment of 

2 this Act. 

3 (c) GSA.—The Administrator of General Services 

4 shall include on the List of Parties Excluded from Federal 

5 Procurement and Nonprocurement Programs maintained 

6 by the Administrator under part 9 of the Federal Acquisi7 tion Regulation each person that is debarred, suspended, 

8 or proposed for debarment or suspension by the head of 

9 an executive agency on the basis of a determination of a 

10 false certification under subsection (b). If the head of an 

11 executive agency determines that a person has submitted 

12 a false certification under subsection (b) after the date on 

13 which the Federal Acquisition Regulation is revised to im14 plement the requirements of this section, the head of such 

15 executive agency shall terminate a contract with such per16 son or debar or suspend such person from eligibility for 

17 Federal contracts for a period of not more than three 

18 years. Any such debarment or suspension shall be subject 

19 to the procedures that apply to debarment and suspension 

20 under the Federal Acquisition Regulation under subpart 

21 9.4 of part 9 of title 48, Code of Federal Regulations. 

22 (d) CLARIFICATION REGARDING CERTAIN PROD23 UCTS.—The remedies specified in subsections (a) through 

24 (c) shall not apply with respect to the procurement of eligi25 ble products, as defined in section 308(4) of the Trade 


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1 Agreements Act of 1979 (19 U.S.C. 2518(4)), of any for2 eign country or instrumentality designated under section 

3 301(b) of such Act (19 U.S.C. 2511(b)). 

4 (e) RULE OF CONSTRUCTION.—Nothing in his sub5 section may be construed to limit the use of other remedies 

6 available to the head of an executive agency or any other 

7 official of the Federal Government on the basis of a deter8 mination of a false certification under subsection (b). 

9 (f) EXECUTIVE AGENCY DEFINED.—In this section, 

10 the term ‘‘executive agency’’ has the meaning given such 

11 term in section 133 of title 41, United States Code. 

12 SEC. 205. SANCTIONS WITH RESPECT TO THE PROVISION 

13 OF VESSELS OR SHIPPING SERVICES TO 

14 TRANSPORT CERTAIN GOODS RELATED TO 

15 PROLIFERATION, TERRORISM, OR CRIMINAL 

16 ACTIVITIES OF NORTH KOREA. 

17 (a) BRIEFING REQUIRED.—Not later than 180 days 

18 after the date of the enactment of this Act, and every 180 

19 days thereafter, the President shall provide to the appro20 priate congressional committees a briefing identifying for21 eign ports and airports whose inspections of ships, air22 craft, and conveyances originating in North Korea, car23 rying North Korean property, or operated by the Govern24 ment of North Korea are deficient to effectively prevent 


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1 the facilitation of any of the activities described in section 

2 104(a). 

3 (b) ENHANCED CUSTOMS INSPECTION REQUIRE4 MENTS.—Not later than 180 days after the identification 

5 of any port or airport pursuant to subsection (a), the Sec6 retary of Homeland Security shall promulgate regulations 

7 imposing enhanced inspection requirements on any cargo 

8 landed in the United States or entering interstate com9 merce that has been transported through such port or air10 port. 

11 (c) SEIZURE AND FORFEITURE.—A vessel, aircraft, 

12 or conveyance used to facilitate any of the activities de13 scribed in section 104(a) that comes within the jurisdic14 tion of the United States may be seized and forfeited 

15 under chapter 46 of title 18, United States Code, or under 

16 chapter 4 of title 19, United States Code, and the proceeds 

17 of any such forfeiture shall be available for the purposes 

18 described in section 403. 

19 SEC. 206. INTERNATIONAL ASSISTANCE. 

20 (a) CONDITION ON PROVISION OF UNITED STATES

21 FUNDS TO AN INTERNATIONAL FINANCIAL INSTITU22 TION.—Funds appropriated for payment to an inter23 national financial institution (as defined in section 

24 1701(c)(2) of the International Financial Institutions Act 

25 (22 U.S.C. 262r(c)(2))) shall not be made available to the 


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1 institution unless the institution provides assurances to 

2 the Secretary of State that the funds will not be used for 

3 assistance to the Government of North Korea. 

4 (b) OPPOSITION TO USE OF INTERNATIONAL FINAN5 CIAL INSTITUTION FUNDS FOR NORTH KOREA.—The 

6 United States Executive Director at each international fi7 nancial institution (as so defined) shall use the voice, vote, 

8 and influence of the United States to oppose the provision 

9 by the institution of any assistance to the Government of 

10 North Korea. 

11 (c) TRANSACTIONS IN DEFENSE ARTICLES AND DE12 FENSE SERVICES.— 

13 (1) IN GENERAL.—The President shall withhold 

14 assistance under part I of the Foreign Assistance 

15 Act of 1961 (22 U.S.C. 2151 et seq.) to the govern16 ment of any country that provides defense articles 

17 and defense services to the Government of North 

18 Korea or receives defense articles and defense serv19 ices from the Government of North Korea. 

20 (2) APPLICABILITY.—The prohibition described 

21 in paragraph (1) shall terminate on the date that is 

22 2 years after the date on which such foreign govern23 ment ceases to provide defense articles and defense 

24 services to the Government of North Korea, or to 


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1 purchase or receive defense articles and defense 

2 services from the Government of North Korea. 

3 (3) WAIVER.—Assistance may be furnished to a 

4 foreign government described in paragraph (1) if the 

5 President makes the determinations prescribed in 

6 subsection (b) of section 620G of the Foreign Assist7 ance Act of 1961, as amended (22 U.S.C. 2377(b)). 

8 SEC. 207. EXCLUSION, WAIVER, AND REMOVAL OF DESIGNA9 TION. 

10 (a) EXCLUSIONS.—The following activities shall not 

11 apply with respect to the requirement under subsection 

12 (a), (b), (c), or (d) of section 104 to designate a person, 

13 foreign government, or financial institution for purposes 

14 of imposing a sanction or sanctions on the designated per15 son: 

16 (1) Activities subject to the reporting require17 ments of title V of the National Security Act of 

18 1947 (50 U.S.C. 413 et seq.), or to any authorized 

19 intelligence activities of the United States. 

20 (2) Any transaction the exclusive purpose for 

21 which is to provide humanitarian assistance to the 

22 people of North Korea. 

23 (3) Any transaction the exclusive purpose for 

24 which is to import food products into North Korea, 

25 if such food items are not defined as luxury goods. 


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1 (4) Any transaction necessary to maintain a 

2 diplomatic or consular relationship under the Agree3 ment between the United Nations and the United 

4 States of America regarding the Headquarters of the 

5 United Nations, signed June 26, 1947, and entered 

6 into force November 21, 1947, or under the Vienna 

7 Convention on Consular Relations, signed April 24, 

8 1963, and entered into force on March 19, 1967. 

9 (5) Any transaction the exclusive purpose for 

10 which is to import fertilizers, pesticides, agricultural 

11 equipment, or medical supplies or equipment into 

12 North Korea, provided that such supplies or equip13 ment are not controlled under— 

14 (A) the Export Administration Act of 1979 

15 (50 U.S.C. App. 2401 et seq.), as continued in 

16 effect under the International Emergency Eco17 nomic Powers Act (50 U.S.C. 1701 et seq.); 

18 (B) the Arms Export Control Act (22 

19 U.S.C. 2751 et seq.); 

20 (C) part B of title VIII of the Nuclear 

21 Proliferation Prevention Act of 1994 (22 

22 U.S.C. 6301 et seq.); or 

23 (D) the Chemical and Biological Weapons 

24 Control and Warfare Elimination Act of 1991 

25 (22 U.S.C. 5601 et seq.). 


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1 (b) WAIVERS.— 

2 (1) IN GENERAL.—The President may waive, 

3 on a case-by-case basis, and for a period not to ex4 ceed one year, the requirement under subsection (a) 

5 or (b) of section 104 to designate a person, foreign 

6 government, or financial institution, or to impose a 

7 sanction or sanctions on the designated person, if 

8 the President submits to the appropriate congres9 sional committees a written determination that the 

10 waiver meets the following requirements: 

11 (A) The waiver is vital to the economic or 

12 national security interests of the United States. 

13 (B) The waiver will advance the purposes 

14 set forth in section 4 of the North Korea 

15 Human Rights Act of 2004 (22 U.S.C. 7801 et 

16 seq.). 

17 (C) The waiver is for the benefit of a fi18 nancial institution that— 

19 (i) has blocked all North Korean 

20 property deposited in such financial insti21 tution, pending an audit of the origin of 

22 such property and the implementation of 

23 safeguards to ensure that the property is 

24 not used to facilitate any of the activities 

25 described in section 104(a); and 


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1 (ii) is providing good-faith cooperation 

2 with the investigation of any of the activi3 ties described in section 104(a) or the en4 forcement of the provisions of this Act. 

5 (D) The waiver is for the benefit of a per6 son, foreign government, or financial institution 

7 that is providing good-faith cooperation with 

8 the investigation of any of the activities de9 scribed in section 104(a) and the enforcement 

10 of this Act. 

11 (E) The waiver is for the benefit of a per12 son, foreign government, or financial institution 

13 that provides underwriting, financial, insurance, 

14 reinsurance, reflagging, transportation, or fi15 nancial messaging services, and who has exer16 cised due diligence in establishing and enforcing 

17 official policies, procedures, and controls to en18 sure that the person, foreign government, or fi19 nancial institution (as the case may be) does 

20 not facilitate any of the activities described in 

21 section 104(a). 

22 (F) In the absence of the waiver, the impo23 sition of the sanction or sanctions would have 

24 a severe and adverse humanitarian impact on 

25 the people of North Korea and such impact 


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1 substantially outweighs the interest of the 

2 United States in enforcing the provisions of this 

3 Act. 

4 (2) GOVERNMENT OF NORTH KOREA.—The 

5 President may waive, on a case-by-case basis, and 

6 for a period not to exceed one year, the requirement 

7 under section 104(c) to designate the Government of 

8 North Korea, or to impose a sanction or sanctions 

9 on the Government of North Korea, if the President 

10 submits to the appropriate congressional committees 

11 a written determination that the waiver meets the 

12 requirements described in paragraph (1)(F). 

13 (c) REMOVAL OF SANCTIONS.—The President may 

14 prescribe rules and regulations for the removal of sanc15 tions on a person, foreign government, or financial institu16 tion that is designated under subsection (a), (b), or (d) 

17 of section 104 and the removal of designations of a person, 

18 foreign government, or financial institution with respect 

19 to such sanctions if the President determines that the des20 ignated person has verifiably ceased its participation in 

21 any of the activities described in section 104(a) and is co22 operating with the investigation of such activities and car23 rying out this Act. 

24 (d) FINANCIAL SERVICES FOR HUMANITARIAN AND

25 CONSULAR ACTIVITIES.—The President may promulgate 


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1 regulations, rules, and polices as may be necessary to fa2 cilitate the provision of financial services by a foreign fi3 nancial institution that is not controlled by the Govern4 ment of North Korea in support of the activities subject 

5 to exclusion under this section. 

6 TITLE III—PROMOTION OF 

7 HUMAN RIGHTS AND DIS8 INVESTMENT 

9 SEC. 301. INFORMATION TECHNOLOGY. 

10 Section 104 of the North Korean Human Rights Act 

11 of 2004 (22 U.S.C. 7814) is amended by inserting after 

12 subsection (c) the following new subsection: 

13 ‘‘(d) INFORMATION TECHNOLOGY STUDY.—Not later 

14 than 180 days after the date of the enactment of this sub15 section, the President shall submit to the appropriate con16 gressional committees a classified report setting forth a 

17 detailed plan for making unrestricted, unmonitored, and 

18 inexpensive electronic mass communications available to 

19 the people of North Korea.’’. 

20 SEC. 302. DISCLOSURES TO SECURITIES AND EXCHANGE 

21 COMMISSION RELATING TO SANCTIONABLE 

22 ACTIVITIES. 

23 (a) IN GENERAL.—Section 13 of the Securities Ex24 change Act of 1934 (15 U.S.C. 78m) is amended by add25 ing at the end the following new subsection: 


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1 ‘‘(s) DISCLOSURE OF CERTAIN ACTIVITIES RELAT2 ING TO NORTH KOREA, TERRORISM, AND THE PRO3 LIFERATION OF WEAPONS OF MASS DESTRUCTION.— 

4 ‘‘(1) GENERAL DISCLOSURE REQUIRED.—Each 

5 issuer required to file an annual or quarterly report 

6 under subsection (a) shall include with such report 

7 a statement of whether, during the period since the 

8 issuer made the last such report, the issuer or any 

9 affiliate of the issuer— 

10 ‘‘(A) was designated under section 104 of 

11 the North Korea Sanctions Enforcement Act of 

12 2013, or engaged in any of the activities de13 scribed in section 104(a) of such Act; or 

14 ‘‘(B) knowingly conducted any transaction 

15 or dealing with any person designated pursuant 

16 to subsection (a), (b), (c), or (d) of section 104 

17 of the North Korea Sanctions Enforcement Act 

18 of 2013. 

19 ‘‘(2) SPECIFIC DISCLOSURE REQUIRED.—If an 

20 issuer reports under paragraph (1) that the issuer or 

21 an affiliate of the issuer has engaged in any activity 

22 described in that paragraph, the issuer shall include 

23 with the statement required under that paragraph a 

24 detailed description of each such activity, includ25 ing— 


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1 ‘‘(A) the nature and extent of the activity; 

2 ‘‘(B) the revenues and profits, if any, at3 tributable to the activity; and 

4 ‘‘(C) whether the issuer or the affiliate of 

5 the issuer (as the case may be) intends to con6 tinue the activity. 

7 ‘‘(3) INVESTIGATION OF DISCLOSURES.—When 

8 the Commission receives a report under paragraph 

9 (1) from an issuer that the issuer or an affiliate of 

10 the issuer has engaged in any activity described in 

11 that paragraph, the President shall— 

12 ‘‘(A) initiate an investigation into the pos13 sible imposition of sanctions under the North 

14 Korea Sanctions Enforcement Act of 2013, the 

15 International Emergency Economic Powers Act 

16 (50 U.S.C. 1701 et seq.), Executive Order 

17 13224, Executive Order 13382, Executive 

18 Order 13551, Executive Order 13570, or any 

19 other provision of law; and 

20 ‘‘(B) not later than 180 days after initi21 ating such an investigation, make such deter22 minations as are required by section 104 of the 

23 North Korea Sanctions Enforcement Act of 

24 2013.’’. 


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1 (b) EFFECTIVE DATE.—The amendment made by 

2 subsection (a) shall take effect with respect to reports re3 quired to be filed with the Securities and Exchange Com4 mission after a date that is 90 days after the date of the 

5 enactment of this Act. 

6 SEC. 303. AUTHORITY OF STATE AND LOCAL GOVERN7 MENTS TO DIVEST FROM COMPANIES THAT 

8 INVEST IN NORTH KOREA. 

9 (a) SENSE OF CONGRESS.—It is the sense of Con10 gress that the United States should support the decision 

11 of any State or local government that for moral, pruden12 tial, or reputational reasons divests from, or prohibits the 

13 investment of assets of such State or local government in, 

14 a person that engages in investment activities in North 

15 Korea, if North Korea is subject to economic sanctions 

16 imposed by the United States. 

17 (b) AUTHORITY TO DIVEST.—Notwithstanding any 

18 other provision of law, a State or local government may 

19 adopt and enforce measures that meet the requirements 

20 of subsection (d) to divest the assets of such State or local 

21 government from, or prohibit investment of the assets of 

22 such State or local government in, any person that such 

23 State or local government determines, using credible infor24 mation available to the public, engages in investment ac25 tivities in North Korea described in subsection (c). 


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1 (c) INVESTMENT ACTIVITIES DESCRIBED.—A person 

2 engages in investment activities in North Korea described 

3 in this subsection if the person— 

4 (1) has an investment of $10,000 or more in 

5 North Korea; or 

6 (2) is a financial institution that extends 

7 $10,000 or more in credit to another person, for 45 

8 days or more, if such person will use such credit for 

9 investment in North Korea. 

10 (d) REQUIREMENTS.—Any measure taken by a State 

11 or local government under subsection (b) shall meet the 

12 following requirements: 

13 (1) NOTICE.—The State or local government 

14 shall provide written notice to each person with re15 spect to which a measure under this section is to be 

16 applied. 

17 (2) TIMING.—The measure applied under this 

18 section shall apply to a person not earlier than the 

19 date that is 90 days after the date on which written 

20 notice is provided to such person under paragraph 

21 (1). 

22 (3) OPPORTUNITY FOR HEARING.—The State 

23 or local government at issue shall provide an oppor24 tunity to comment in writing to each person with re25 spect to which a measure is to be applied under this 


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1 section. If such person demonstrates to such State 

2 or local government that such person does not en3 gage in investment activities in North Korea de4 scribed in subsection (c), such measure shall not 

5 apply to such person. 

6 (4) SENSE OF CONGRESS ON AVOIDING ERRO7 NEOUS TARGETING.—It is the sense of Congress 

8 that a State or local government should not adopt 

9 a measure under subsection (b) with respect to a 

10 person unless such State or local government has 

11 made every effort to avoid erroneously targeting 

12 such person and has verified that such person en13 gages in investment activities in North Korea de14 scribed in subsection (c). 

15 (e) NOTICE TO DEPARTMENT OF JUSTICE.—Not 

16 later than 30 days after a State of local government ap17 plies a measure under this section, such State or local gov18 ernment shall notify the Attorney General of such meas19 ure. 

20 (f) NONPREEMPTION.—A measure applied by a State 

21 or local government authorized under subsection (b) or (i) 

22 is not preempted by any Federal law or regulation. 

23 (g) DEFINITIONS.—In this section: 

24 (1) ASSET.— 


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1 (A) IN GENERAL.—Except as provided in 

2 subparagraph (B), the term ‘‘asset’’ refers to 

3 public monies and includes any pension, retire4 ment, annuity, or endowment fund, or similar 

5 instrument, that is controlled by a State or 

6 local government. 

7 (B) EXCEPTION.—The term ‘‘asset’’ does 

8 not include employee benefit plans covered by 

9 title I of the Employee Retirement Income Se10 curity Act of 1974 (29 U.S.C. 1001 et seq.). 

11 (2) INVESTMENT.—The term ‘‘investment’’ in12 cludes— 

13 (A) a commitment or contribution of funds 

14 or property; 

15 (B) a loan or other extension of credit; and 

16 (C) the entry into or renewal of a contract 

17 for goods or services. 

18 (h) EFFECTIVE DATE.— 

19 (1) IN GENERAL.—Except as provided in para20 graph (2) or subsection (i), this section applies to 

21 measures applied by a State or local government be22 fore, on, or after the date of the enactment of this 

23 Act. 

24 (2) NOTICE REQUIREMENTS.—Except as pro25 vided in subsection (i), subsections (d) and (e) apply 


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1 to measures applied by a State or local government 

2 on or after the date of the enactment of this Act. 

3 (i) AUTHORIZATION FOR PRIOR APPLIED MEAS4 URES.— 

5 (1) IN GENERAL.—Notwithstanding any other 

6 provision of this section or any other provision of 

7 law, a State or local government may enforce a 

8 measure (without regard to the requirements of sub9 section (d), except as provided in paragraph (2)) ap10 plied by such State or local government before the 

11 date of the enactment of this Act that provides for 

12 the divestment of assets of such State or local gov13 ernment from, or prohibits the investment of the as14 sets of such State or local government in, any per15 son that such State or local government determines, 

16 using credible information available to the public, 

17 engages in investment activities in North Korea (de18 termined without regard to subsection (c)) or other 

19 business activities in North Korea that are identified 

20 in such measure. 

21 (2) APPLICATION OF NOTICE REQUIRE22 MENTS.—A measure described in paragraph (1) 

23 shall be subject to the requirements of paragraphs 

24 (1) and (2) and the first sentence of paragraph (3) 


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1 of subsection (d) on and after the date that is two 

2 years after the date of the enactment of this Act. 

3 (j) RULE OF CONSTRUCTION.—Nothing in this Act 

4 or any other provision of law authorizing sanctions with 

5 respect to North Korea shall be construed to abridge the 

6 authority of a State or local government to issue and en7 force rules governing the safety, soundness, and solvency 

8 of a financial institution subject to its jurisdiction or the 

9 business of insurance pursuant to the Act of March 9, 

10 1945 (15 U.S.C. 1011 et seq.) (commonly known as the 

11 ‘‘McCarran-Ferguson Act’’). 

12 SEC. 304. SAFE HARBOR FOR CHANGES OF INVESTMENT 

13 POLICIES BY ASSET MANAGERS. 

14 (a) IN GENERAL.—Section 13(c)(1) of the Invest15 ment Company Act of 1940 (15 U.S.C. 80a–13(c)(1)) is 

16 amended— 

17 (1) in subparagraph (A), by striking ‘‘or’’ at 

18 the end; 

19 (2) in subparagraph (B), by striking the period 

20 and inserting ‘‘; or’’; and 

21 (3) by adding at the end the following: 

22 ‘‘(C) engage in investment activities in 

23 North Korea described in section 303 of the 

24 North Korea Sanctions Enforcement Act of 

25 2013.’’. 


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1 (b) SECURITIES AND EXCHANGE COMMISSION REGU2 LATIONS.—Not later than 120 days after the date of the 

3 enactment of this Act, the Securities and Exchange Com4 mission shall issue any revisions the Commission deter5 mines to be necessary to the regulations requiring disclo6 sure by each registered investment company that divests 

7 itself of securities in accordance with section 13(c) of the 

8 Investment Company Act of 1940 (15 U.S.C. 80a–13(c)), 

9 including divestments of securities in accordance with sub10 paragraph (C) of such section, as added by subsection 

11 (a)(3). 

12 SEC. 305. SENSE OF CONGRESS REGARDING CERTAIN 

13 ERISA PLAN INVESTMENTS. 

14 It is the sense of Congress that a fiduciary of an em15 ployee benefit plan, as defined in section 3(3) of the Em16 ployee Retirement Income Security Act of 1974 (29 

17 U.S.C. 1002(3)), may divest plan assets from, or avoid 

18 investing plan assets in, any person the fiduciary deter19 mines engages in investment activities in North Korea de20 scribed in section 406 of this Act, without breaching the 

21 responsibilities, obligations, or duties imposed upon such 

22 fiduciary by subparagraph (A) or (B) of section 404(a)(1) 

23 of the Employee Retirement Income Security Act of 1974 

24 (29 U.S.C. 1104(a)(1)), if— 


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1 (1) such fiduciary makes such determination 

2 using credible information that is available to the 

3 public; and 

4 (2) such fiduciary prudently determines that 

5 the result of such divestment or avoidance of invest6 ment would not be expected to provide the employee 

7 benefit plan with— 

8 (A) a lower rate of return than alternative 

9 investments with commensurate degrees of risk; 

10 or 

11 (B) a higher degree of risk than alter12 native investments with commensurate rates of 

13 return. 

14 SEC. 306. REPORT ON NORTH KOREAN PRISON CAMPS. 

15 (a) IN GENERAL.—The Secretary of State shall sub16 mit to the appropriate congressional committees a report 

17 describing, with respect to each political prison camp in 

18 North Korea— 

19 (1) the camp’s estimated prisoner population; 

20 (2) the camp’s geographical coordinates; 

21 (3) the reasons for confinement of the pris22 oners; 

23 (4) the camp’s primary industries and products, 

24 and the end users of any goods produced in such 

25 camp; 


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1 (5) the natural persons and agencies respon2 sible for conditions in the camp; 

3 (6) the conditions under which prisoners are 

4 confined, with respect to the adequacy of food, shel5 ter, medical care, working conditions, and reports of 

6 ill-treatment of prisoners; and 

7 (7) imagery, to include satellite imagery of each 

8 such camp, in a format that, if published, would not 

9 compromise the sources and methods used by the in10 telligence agencies of the United States to capture 

11 geospatial imagery. 

12 (b) FORM.—The report required under subsection (a) 

13 shall be included in the first report required to be sub14 mitted to Congress after the date of the enactment of this 

15 Act under sections 116(d) and 502B(b) of the Foreign As16 sistance Act of 1961 (22 U.S.C. 2151n(d) and 2304(b)) 

17 (relating to the annual human rights report). 

18 SEC. 307. LIMITS ON JURISDICTIONAL IMMUNITY. 

19 The exception to immunity provided in section 1605A 

20 of title 28, United States Code, applies to North Korea, 

21 to the same extent as any foreign state (as defined in sec22 tion 1603 of such title), and (as provided in section 

23 1605(c) of such title) to any official, employee, or agent 

24 of North Korea, without regard to whether or not North 


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1 Korea is designated as a state sponsor of terrorism, as 

2 defined in section 1605A(h) of such title. 

3 TITLE IV—GENERAL 

4 AUTHORITIES 

5 SEC. 401. SUSPENSION OF SANCTIONS AND OTHER MEAS6 URES. 

7 (1) IN GENERAL.—Any sanction or other meas8 ure required by title II or III of this Act (or any 

9 amendment made by title II or III of this Act) may 

10 be suspended for up to 365 days upon certification 

11 by the President to the appropriate congressional 

12 committees that the Government of North Korea 

13 has— 

14 (A) verifiably ceased its counterfeiting of 

15 United States currency, including the surrender 

16 or destruction of specialized materials and 

17 equipment used for or particularly suitable for 

18 counterfeiting; 

19 (B) taken significant steps toward finan20 cial transparency to comply with generally ac21 cepted protocols to cease and prevent the laun22 dering of monetary instruments; 

23 (C) taken significant steps toward 

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1 tions Security Council Resolutions 1695, 1718, 

2 1874, 2087, and 2094; 

3 (D) taken significant steps toward ac4 counting for and repatriating the citizens of 

5 other countries abducted by the Government of 

6 North Korea; 

7 (E) taken significant steps toward 

8 verification of its compliance with the Joint 

9 Statement of September 19, 2005; 

10 (F) accepted and begun to abide by inter11 nationally recognized standards for the distribu12 tion and monitoring of humanitarian aid; 

13 (G) provided credible assurances that it 

14 will not support further acts of international 

15 terrorism; and 

16 (H) taken significant and verified steps to 

17 improve living conditions in its political prison 

18 camps. 

19 (2) RENEWAL OF SUSPENSION.—The suspen20 sion described in paragraph (1) may be renewed for 

21 an additional consecutive period of 365 days upon 

22 certification by the President to the appropriate con23 gressional committees that the Government of North 

24 Korea— 


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1 (A) has continued to make significant 

2 progress toward compliance with the conditions 

3 described in paragraph (1) during the previous 

4 year; and 

5 (B) meets 2 or more of the requirements 

6 described in paragraphs (1) through (6) of sec7 tion 402. 

8 SEC. 402. TERMINATION OF SANCTIONS AND OTHER MEAS9 URES. 

10 Any sanction or other measure required by title II 

11 or III and of this Act (or any amendment made by title 

12 II or III of this Act) shall terminate on the date on which 

13 the President determines and certifies to the appropriate 

14 congressional committees that the Government of North 

15 Korea has met the requirements of section 401, and has 

16 also— 

17 (1) completely, verifiably, and irreversibly dis18 mantled all of its nuclear, chemical, biological, and 

19 radiological weapons programs, including all pro20 grams for the development of systems designed in 

21 whole or in part for the delivery of such weapons; 

22 (2) released all political prisoners, including the 

23 citizens of North Korea detained in the North Ko24 rea’s political prison camps; 


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1 (3) ceased its censorship of peaceful political 

2 activity; 

3 (4) has taken significant steps toward the es4 tablishment of an open, transparent, and representa5 tive society; 

6 (5) has fully accounted for all citizens of all na7 tions abducted by the Government of North Korea; 

8 and 

9 (6) made public commitments to, and continues 

10 to make significant progress toward— 

11 (A) establishing an independent judiciary; 

12 and 

13 (B) respecting the human rights and basic 

14 freedoms recognized in the Universal Declara15 tion of Human Rights. 

16 SEC. 403. NORTH KOREA ENFORCEMENT AND HUMANI17 TARIAN FUND. 

18 (a) ESTABLISHMENT.—There is established in the 

19 Treasury of the United States a fund to be known as the 

20 North Korea Enforcement and Humanitarian Fund (in 

21 this section referred to as the ‘‘Fund’’). 

22 (b) DEPOSITS.—All revenues derived from any crimi23 nal, civil, or administrative forfeitures of property involved 

24 in any of the activities described in section 104(a), and 

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1 tion for any such activities, and all revenues derived from 

2 penalties assessed under section 206 of the International 

3 Emergency Economic Powers Act (50 U.S.C. 1705) aris4 ing from violations of section 104(a) or the regulations 

5 promulgated under section 104(f) or section 404, shall be 

6 deposited into the Fund, and may be transferred and con7 solidated on the books of the Treasury into a special ac8 count for the purposes described in subsection (c). 

9 (c) USES.—There are authorized to be appropriated 

10 from the Fund each fiscal year— 

11 (1) such amounts as shall be necessary and ap12 propriate for the administration of the Fund; and 

13 (2) without regard to fiscal year limitation, 

14 amounts not exceeding— 

15 (A) for salaries, benefits, and expenses for 

16 persons assigned by the President to conduct 

17 investigations and enforce sanctions as pre18 scribed in this Act, $5,000,000; 

19 (B) for any of the purposes described in 

20 section 524(c) of title 28, United States Code, 

21 or section 9703 of title 31, United States Code, 

22 with respect to investigations and enforcement 

23 activities under title I or title II, $5,000,000; 


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1 (C) to carry out section 103 of the North 

2 Korea Human Rights Act of 2004 (22 U.S.C. 

3 7813), $3,000,000; 

4 (D) to carry out section 104 of the North 

5 Korea Human Rights Act of 2004 (22 U.S.C. 

6 7814), $5,000,000; 

7 (E) to carry out section 203 of the North 

8 Korea Human Rights Act of 2004 (22 U.S.C. 

9 7833), $5,000,000; and 

10 (F) to carry out subsection (d) of section 

11 104 of the North Korean Human Rights Act of 

12 2004 (22 U.S.C. 7814) (as added by section 

13 301 of this Act), $2,000,000. 

14 (d) TRANSFER.—To prevent the accumulation of ex15 cessive surpluses in the Fund, in any fiscal year an 

16 amount specified in an annual appropriation law may be 

17 transferred out of the Fund and deposited, in equal pro18 portions, into the funds established under section 9703 of 

19 title 31, United States Code, and under section 524(c) of 

20 title 28, United States Code. 

21 (e) SUNSET.—The Fund established under this sec22 tion shall cease to exist on September 30, 2023, and any 

23 unexpended funds remaining in the Fund after such date 

24 shall be transferred in accordance with subsection (d). 


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1 SEC. 404. REGULATIONS. 

2 (a) IN GENERAL.—The President is authorized to 

3 promulgate such rules and regulations as may be nec4 essary to carry out the provisions of this Act. 

5 (b) RULE OF CONSTRUCTION.—Nothing in this Act 

6 or any amendment made by this Act shall be construed 

7 to limit the authority of the President to designate or 

8 sanction persons pursuant to Executive Order No. 13382, 

9 13224, 13551, or otherwise pursuant to the International 

10 Emergency Economic Powers Act (50 U.S.C. 1701 et 

11 seq.). 

12 SEC. 405. EFFECTIVE DATE. 

13 Except as otherwise provided in this Act, this Act and 

14 the amendments made by this Act shall take effect on the 

15 date of the enactment of this Act. 

Æ 


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