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[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1771 Introduced in House (IH)]

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.

    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 ``North Korea 
Sanctions Enforcement Act of 2013''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

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.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) The Government of North Korea has repeatedly violated 
        its commitments to the complete, verifiable, irreversible 
        dismantlement of its nuclear weapons programs, and has 
        willfully violated multiple United Nations Security Council 
        resolutions calling for it to cease its development, testing, 
        and production of weapons of mass destruction.
            (2) North Korea poses a grave risk for the proliferation of 
        nuclear weapons and other weapons of mass destruction.
            (3) The Government of North Korea has been implicated 
        repeatedly in money laundering and illicit activities, 
        including prohibited arms sales, narcotics trafficking, the 
        counterfeiting of United States currency, and the 
        counterfeiting of intellectual property of United States 
        persons.
            (4) The Government of North Korea has recently and 
        repeatedly sponsored acts of international terrorism, including 
        attempts to assassinate defectors and human rights activists; 
        repeated threats of violence against foreign persons, leaders, 
        newspapers, and cities; and the shipment of weapons to 
        Hezbollah and Hamas via Iran.
            (5) North Korea has unilaterally withdrawn from the 1953 
        Armistice Agreement that ended the Korean War, and committed 
        unprovoked acts of war against South Korea in 2010 by sinking 
        the warship Cheonan and killing 46 of her crew, and by shelling 
        Yeonpyeong Island, killing four civilians.
            (6) North Korea maintains a system of brutal political 
        prison camps that contain as many as 200,000 men, women, and 
        children, who live in atrocious living conditions with 
        insufficient food, clothing, and medical care, and under 
        constant fear of torture or arbitrary execution.
            (7) The Congress reaffirms the purposes established in the 
        North Korean Human Rights Act of 2004 (22 U.S.C. 7802).
            (8) North Korea has prioritized weapons programs and the 
        procurement of luxury goods, in defiance of United Nations 
        Security Council resolutions, and in gross disregard of the 
        needs of its people.
            (9) Persons, including financial institutions, who engage 
        in transactions with, or provide financial services to, the 
        Government of North Korea and its financial institutions 
        without establishing sufficient financial safeguards against 
        North Korea's use of these transactions to promote 
        proliferation, weapons trafficking, human rights violations, 
        illicit activity, and the purchase of luxury goods, aid and 
        abet North Korea's misuse of the international financial 
        system, and also violate the intent of relevant United Nations 
        Security Council resolutions.
            (10) The Government of North Korea's conduct poses an 
        imminent threat to the security of the United States and its 
        allies, to the global economy, to the safety of members of the 
        United States armed forces, to the integrity of the global 
        financial system, to the integrity of global nonproliferation 
        programs, and to the people of North Korea.
            (11) The Congress seeks, through this legislation, to use 
        nonmilitary means to address this emergency, to provide 
        diplomatic leverage to negotiate necessary changes in North 
        Korea's conduct, and to ease the suffering of the people of 
        North Korea.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Account; correspondent account; payable-through 
        account.--The terms ``account'', ``correspondent account'', and 
        ``payable-through account'' have the meanings given those 
        terms, respectively, under section 5318A of title 31, United 
        States Code.
            (2) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                    (A) the Committee on Foreign Affairs and the 
                Committee on Financial Services of the House of 
                Representatives; and
                    (B) the Committee on Foreign Relations and the 
                Committee on Banking, Housing, and Urban Affairs of the 
                Senate.
            (3) Censorship.--The term ``censorship'' means, with 
        respect to North Korea, activities that--
                    (A) prohibit, limit, or penalize the exercise of 
                freedom of expression or assembly by citizens of North 
                Korea; or
                    (B) limit access to print or broadcast media, 
                including the facilitation or support of intentional 
                frequency manipulation by the Government of North Korea 
                that would jam or restrict an international signal.
            (4) Designated person.--The term ``designated person'' 
        means a person, foreign government, or financial institution 
        designated by the President under subsection (a), (b), (c), or 
        (d) of section 104 for purposes of applying the sanctions 
        described in title II (as applicable) with respect to the 
        person, foreign government, or financial institution.
            (5) Domestic financial institution.--The term ``domestic 
        financial institution'' has the meaning given such term in 
        section 5312 of title 31, United States Code.
            (6) Facilitate.--
                    (A) In general.--The term ``facilitate'' means, 
                with respect to any of the activities described in 
                section 104(a), to--
                            (i) provide material support to, aid, abet, 
                        attempt, or conspire to commit the activity;
                            (ii) conceal any evidence, proceeds, or 
                        instrumentalities of the activity;
                            (iii) possess, receive, exchange, or 
                        transmit the proceeds, instrumentalities, or 
                        other property involved in the activity;
                            (iv) sell, lease, or provide a vessel or 
                        conveyance, to register of reflag a vessel or 
                        conveyance, or provide insurance or reinsurance 
                        or any other shipping service in furtherance of 
                        the activity; or
                            (v) engage in any act with the purpose of 
                        causing the activity to occur.
                    (B) Exception.--Nothing in this paragraph shall be 
                construed to apply with respect to the provision of 
                specialized financial messaging services (as described 
                in section 202).
            (7) 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.
            (8) Financial transaction.--The term ``financial 
        transaction'' has the meaning given such term in section 1956 
        of title 18, United States Code.
            (9) Foreign government.--The term ``foreign government'' 
        has the meaning given the term ``foreign state'' in section 
        1603 of title 28, United States Code.
            (10) Government of north korea.--The term ``Government of 
        North Korea'' means--
                    (A) the Government of North Korea;
                    (B) any political subdivision, agency, or 
                instrumentality thereof;
                    (C) the National Defense Commission of North Korea 
                and its members; and
                    (D) any person owned or controlled by, or acting 
                for or on behalf of, the Government of North Korea.
            (11) Instrumentalities.--The term ``instrumentalities'' 
        includes, with respect to any of the activities described in 
        section 104(a)--
                    (A) any property other than proceeds of such 
                transaction which is also part of the subject matter of 
                such transaction;
                    (B) any property used to facilitate such 
                transaction, including any article, container, or 
                conveyance used, or intended to be used, to facilitate 
                such transaction; and
                    (C) any property other than the proceeds of such 
                transaction that is involved in or used to facilitate 
                such transaction.
            (12) International terrorism.--The term ``international 
        terrorism'' has the meaning given such term in section 2331 of 
        title 18, United States Code.
            (13) Luxury goods.--The term ``luxury goods'' has the 
        meaning given such term in subpart 746.4 of title 15, Code of 
        Federal Regulations, and includes the items listed in 
        Supplement No. 1 to such regulation, and any similar items.
            (14) Monetary instrument.--The term ``monetary instrument'' 
        has the meaning given such term under section 5312 of title 31, 
        United States Code, and also includes--
                    (A) stored value cards, tangible or intangible 
                prepaid access devices, or other instruments or devices 
                for the electronic storage or transmission of value, as 
                defined in part 1010 of title 31, Code of Federal 
                Regulations; and
                    (B) any covered goods, as defined in section 
                1027.100 of title 31, Code of Federal Regulations, and 
                any instrument or tangible or intangible access device 
                use for the electronic storage and transmission of a 
                representation of covered goods.
            (15) North korean financial institution.--The term ``North 
        Korean financial institution'' means--
                    (A) a financial institution organized under the 
                laws of North Korea or any jurisdiction within North 
                Korea, including a foreign branch of such an 
                institution;
                    (B) a financial institution located in North Korea, 
                except as may be excluded from such definition by the 
                President in accordance with section 207(d);
                    (C) a financial institution, wherever located, 
                owned or controlled by the Government of North Korea; 
                or
                    (D) a financial institution, wherever located, 
                owned or controlled by a financial institution 
                described in subparagraph (A), (B), or (C).
            (16) North korean property.--The term ``North Korean 
        property'' includes any funds, financial assets, technology, 
        property, or resources that are owned or controlled, directly 
        or indirectly, by the Government of North Korea.
            (17) Person.--The term ``person'' means--
                    (A) a natural person;
                    (B) a corporation, business association, 
                partnership, association, society, trust, financial 
                institution, joint venture, corporation, group, 
                subgroup, agency, insurer, underwriter, guarantor, and 
                any other business organization, any other 
                nongovernmental entity, organization, or group, and any 
                governmental entity operating as a business enterprise; 
                and
                    (C) a successor to any entity described in 
                subparagraph (B).
            (18) Proceeds.--The term ``proceeds'' has the meaning given 
        such term in section 1956 of title 18, United States Code.
            (19) Serious human rights abuse.--The term ``serious human 
        rights abuse'' includes genocide, slavery, kidnaping, peonage, 
        murder, torture, and aggravated sexual abuse, as those terms 
        are described and made punishable under part I of title 18, 
        United States Code, when carried out by the Government of North 
        Korea, without regard to whether such conduct is within the 
        criminal jurisdiction of the United States.
            (20) Specified unlawful activity.--The term ``specified 
        unlawful activity'' has the meaning given such term in section 
        1956 of title 18, United States Code.
            (21) Transaction.--The term ``transaction'' has the meaning 
        given such term in section 1956 of title 18, United States 
        Code.
            (22) United states person.--The term ``United States 
        person'' means--
                    (A) a natural person who is a citizen of the United 
                States or who owes permanent allegiance to the United 
                States; and
                    (B) a corporation or other legal entity which is 
                organized under the laws of the United States, any 
                State or territory thereof, or the District of 
                Columbia, if a natural person described in subparagraph 
                (A) owns, directly or indirectly, more than 50 percent 
                of the outstanding capital stock or other beneficial 
                interest in such corporation or other legal entity.

     TITLE I--INVESTIGATIONS, PROHIBITED ACTIVITIES, AND PENALTIES

SEC. 101. STATEMENT OF POLICY.

    In order to achieve the peaceful disarmament of North Korea, 
Congress finds that it is necessary--
            (1) to encourage all responsible members of the 
        international community to fully and promptly implement United 
        Nations Security Council Resolution 2094;
            (2) to sanction the entities, officials, and financial 
        institutions that facilitate proliferation, illicit activities, 
        arms trafficking, imports of luxury goods, severe human rights 
        abuses, cash smuggling, and censorship by the Government of 
        North Korea;
            (3) to authorize the President to sanction financial 
        institutions and jurisdictions that fail to exercise due 
        diligence to ensure that such financial institutions and 
        jurisdictions do not facilitate proliferation, arms 
        trafficking, kleptocracy, and imports of luxury goods by the 
        Government of North Korea; and
            (4) to deny the Government of North Korea access to the 
        funds it uses to obtain nuclear weapons, ballistic missiles, 
        and luxury goods instead of providing for the needs of its 
        people.

SEC. 102. INVESTIGATIONS.

    (a) Initiation of Investigation.--The President shall initiate an 
investigation into the possible designation of a person under section 
104(a) upon receipt by the United States of credible information 
indicating that such person has engaged in one or more activities 
described in section 104(a) and, except as provided in section 207, 
shall designate any person who the President determines has engaged in 
one or more activities described in section 104(a).
    (b) Personnel.--The President shall direct the Secretary of State, 
the Secretary of the Treasury, the Attorney General, the Secretary of 
Homeland Security, the Secretary of Defense, the Director of Central 
Intelligence, and the heads of other Federal departments and agencies 
as may be necessary to assign sufficient experienced and qualified 
investigators, attorneys, and technical personnel to investigate and 
sanction any of the activities described in section 104(a) and to 
coordinate and ensure the effective enforcement of the provisions of 
this Act.
    (c) Sharing of Information.--The Federal departments and agencies 
supporting the enforcement of this Act shall share such information 
with, and shall provide each other access to, databases and other 
sources of information as may be necessary to enforce the provisions of 
this Act.

SEC. 103. BRIEFING TO CONGRESS.

    (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 provide to the appropriate congressional committees a briefing on 
the following:
            (1) Assets of the government of north korea.--The 
        significant assets held by the Government of North Korea, the 
        amount of each such asset, and the form and financial 
        institution (if any) in which each such asset is held.
            (2) Transactions involving the government of north korea.--
        The significant international financial transactions by the 
        Government of North Korea during the previous 180 days, 
        including the amounts, parties, terms, and date of each such 
        transaction, the property involved in the transaction, and the 
        names and nationalities of any financial institutions involved 
        in each such transaction.
            (3) Designations.--Each person, foreign government, or 
        financial institution designated under subsection (a), (b), 
        (c), or (d) of section 104 during the previous 180 days.
            (4) Waivers, etc.--All waivers, exclusions, and removals of 
        designation granted under section 207 during the previous 180 
        days.
    (b) Contents of Briefing.--The briefings required by subsection (a) 
shall also contain--
            (1) a list of all persons and foreign governments that have 
        provided financial, storage, transportation, communication, 
        messaging, promotional, or other services with respect to such 
        property and transactions;
            (2) an assessment of the sufficiency of financial 
        safeguards to ensure that such property and transactions are 
        prevented from being used to facilitate any of the activities 
        described in section 104(a), and recommendations for any 
        safeguards necessary to prevent such use; and
            (3) whether any evidence exists to suggest that such 
        property constitutes the proceeds or instrumentalities of any 
        activity described in section 104(a).

SEC. 104. DESIGNATION OF PERSONS, FOREIGN GOVERNMENTS, AND FINANCIAL 
              INSTITUTIONS.

    (a) Designation of Persons Who Engage in Certain Activities.--
Except as provided in section 207, the President shall exercise the 
authorities of the International Emergency Economic Powers Act (50 
U.S.C. 1701 et seq.) without regard to section 202 of such Act to 
designate and apply the sanctions described in title II, as applicable, 
with respect to any person if the President determines that the 
person--
            (1) knowingly and materially contributes, through the 
        export to or import from North Korea of any goods or 
        technology, to the efforts by any government or person to use, 
        develop, produce, stockpile, or otherwise acquire nuclear, 
        radiological, chemical, or biological weapons, or any device or 
        system designed in whole or in part to deliver such weapons;
            (2) knowingly exports, or facilitates the export of, 
        defense articles and defense services to the Government of 
        North Korea, or knowingly exports, or facilitates the export 
        of, any defense articles and defense services from North Korea 
        to any other country;
            (3) knowingly exports, or facilitates the export of, any 
        luxury goods to North Korea;
            (4) knowingly provides, sells, leases, registers, or 
        reflags a vessel, aircraft, or other conveyance, or provides 
        insurance or reinsurance or any other shipping or 
        transportation service used or intended to be used for, the 
        transportation of goods to or from North Korea, for purposes 
        facilitating a specified unlawful activity, or for purposes of 
        evading a regulation established under this Act or the 
        International Emergency Economic Powers Act;
            (5) knowingly transfers, pays, exports, withdraws, or 
        otherwise deals with any property or interest in property of 
        the Government of North Korea for purposes of facilitating a 
        specified unlawful activity, or for purposes of evading a 
        regulation established under this Act or the International 
        Emergency Economic Powers Act;
            (6) knowingly engages in or facilitates censorship by the 
        Government of North Korea; or
            (7) knowingly commits or facilitates a serious human rights 
        abuse by the Government of North Korea.
    (b) Designation of Persons and Foreign Governments That Are 
Sanctioned by Executive Order or the United Nations.--Except as 
provided in section 207, the President shall exercise the authorities 
of the International Emergency Economic Powers Act (50 U.S.C. 1701 et 
seq.) without regard to section 202 of such Act to designate and apply 
the sanctions described in title II, as applicable, with respect to any 
person or foreign government if the President determines the person or 
foreign government--
            (1) has been listed or sanctioned under any regulation or 
        Executive Order No. 13382, 13224, 13551, or otherwise pursuant 
        to the International Emergency Economic Powers Act for illicit 
        activities or activities concerning North Korea's proliferation 
        of weapons of mass destruction;
            (2) has been sanctioned under United Nations Security 
        Council resolutions 1695, 1718, 1874, 2087, 2094, or other such 
        resolution concerning North Korea's proliferation of weapons of 
        mass destruction; or
            (3) has been convicted of a criminal offense for any of the 
        activities described in paragraphs (1) through (7) of 
        subsection (a).
    (c) Designation of Government of North Korea.--Except as provided 
in section 207, the President shall exercise the authorities of the 
International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) 
without regard to section 202 of such Act to designate and apply the 
sanctions described in title II, as applicable, with respect to the 
Government of North Korea.
    (d) Discretionary Authority To Designate Foreign Governments and 
Financial Institutions.--Except as provided in section 207, the 
President may exercise the authorities of the International Emergency 
Economic Powers Act (50 U.S.C. 1701 et seq.) without regard to section 
202 of such Act to designate and apply any of the sanctions described 
in sections 201 and 204, as applicable, with respect to any foreign 
government or financial institution if the President determines the 
foreign government or financial institution, after the date that is 180 
days after the date of the enactment of this Act--
            (1) engages in any of the activities described in 
        paragraphs (1) through (7) of subsection (a);
            (2) fails to freeze any funds, financial assets, or 
        economic resources of a person designated under subsection (a) 
        or (b) in accordance with the legal process of the country in 
        which such property is held;
            (3) fails to freeze any funds, financial assets, or 
        economic resources that could be used to facilitate any of the 
        activities described in paragraph (1), (2), or (3) of 
        subsection (a), in accordance with the legal process of the 
        country in which such property is held;
            (4) fails to apply enhanced monitoring to prevent any 
        transactions that could be used to facilitate any of the 
        activities described in paragraph (1), (2), or (3) of 
        subsection (a);
            (5) permits any North Korean financial institution to open 
        any new branch, subsidiary or representative office, or to 
        establish any new joint venture within its jurisdiction, or to 
        take an ownership interest in, or establish or maintain a 
        correspondent relationship with any bank in its jurisdiction, 
        if such branch, subsidiary, representative office, joint 
        venture, ownership interest, or correspondent relationship 
        could be used to facilitate any of the activities described in 
        paragraph (1), (2), or (3) of subsection (a);
            (6) fails to prohibit any transfers of cash, including 
        through cash couriers, transiting to and from North Korea so as 
        to ensure such transfers of bulk cash are not used to 
        facilitate any of the activities described in paragraph (1), 
        (2), or (3) of subsection (a);
            (7) provides public financial support for trade with the 
        Government of North Korea (including the granting of export 
        credits, guarantees or insurance to their nationals or entities 
        involved in such trade) when such financial support could be 
        used to facilitate any of the activities described in paragraph 
        (1), (2), or (3) of subsection (a); or
            (8) facilitates the use of any proceeds of the bribery of 
        an official of the Government of North Korea, or the 
        misappropriation, theft, or embezzlement of public funds by, or 
        for the benefit of, an official of the Government of North 
        Korea.
    (e) Application to Successors, etc.--The designation of a person, 
foreign government, or financial institution under subsection (a), (b), 
(c), or (d) shall also apply with respect to--
            (1) a successor entity to the designated person;
            (2) a person owned or controlled by, or under common 
        ownership or control with, the designated person, if the person 
        owned or controlled by, or under common ownership or control 
        with (as the case may be), the designated person knowingly 
        engaged in the transaction causing the designation;
            (3) a corporate officer or principal of, or a shareholder 
        with a controlling interest in, such designated person, if such 
        corporate officer, or principal or shareholder with a 
        controlling interest, knowingly engaged in the transaction 
        causing the designation; and
            (4) a United States person, including a domestic financial 
        institution, to the same extent as if the transaction were 
        engaged in by the United States person or in the United States 
        if--
                    (A) a person, including a foreign subsidiary, owned 
                or controlled by the United States person engages in or 
                facilitates any of the activities described in 
                paragraphs (1) through (7) of subsection (a); and
                    (B) the United States person knew or should have 
                known that the person engaged in or facilitated any of 
                the activities described in paragraphs (1) through (7) 
                of subsection (a).
    (f) Regulations.--
            (1) In general.--The President shall promulgate such 
        regulations as may be necessary under the authority of the 
        International Emergency Economic Powers Act (50 U.S.C. 1701 et 
        seq.) to carry out this section.
            (2) Additional requirement.--The regulations promulgated 
        under this subsection shall require enhanced due diligence for 
        all transactions with the Government of North Korea or 
        involving North Korean property to prevent the facilitation of 
        activities described in any of paragraphs (1) through (7) of 
        subsection (a) or any of paragraphs (1) through (8) of 
        subsection (d).
    (g) Penalties.--Any person who engages in the conduct described in 
subsection (a), or who violates any regulation promulgated under 
subsection (f) or section 404, shall be subject to the penalties under 
section 206 of the International Emergency Economic Powers Act (50 
U.S.C. 1705) in the same manner and to the same extent as such 
penalties would apply to any person who violates any license, order, 
regulation, or prohibition issued under that Act (50 U.S.C. 1701 et 
seq.).

SEC. 105. FORFEITURE OF PROPERTY.

    (a) Use of Funds Derived From Civil Forfeitures.--Section 981(e) of 
title 18, United States Code, is amended--
            (1) in paragraph (6), by striking ``or'' at the end;
            (2) in paragraph (7), by striking the period at the end and 
        inserting ``; or''; and
            (3) by inserting after paragraph (7) the following new 
        paragraph:
            ``(8) in the case of property involved in any of the 
        activities described in section 104(a) of the North Korea 
        Sanctions Enforcement Act of 2013, in accordance with section 
        403 of that Act.''.
    (b) Customs Forfeitures.--Notwithstanding sections 609, 613(a)(3), 
and 613A(c) of the Tariff Act of 1930 (19 U.S.C. 1609(a), 1613(a)(3), 
and 1613b(c)), any funds derived from the forfeiture of property under 
section 596 of the Tariff Act of 1930 (19 U.S.C. 1595a) that relates to 
any of the activities described in section 104(a) shall be deposited 
into the North Korea Enforcement and Humanitarian Fund established 
under section 403.
    (c) Payment in Lieu of Forfeiture.--If a financial institution or 
other person pays a sum of money to the United States--
            (1) in lieu of the commencement of criminal, civil, or 
        administrative forfeiture proceedings to forfeit property 
        involving any of the activities described in section 104(a), or
            (2) in settlement of such forfeiture proceedings if 
        commenced,
such sum of money shall be treated as forfeited funds and disposed of 
in accordance with section 403.

 TITLE II--SANCTIONS AGAINST NORTH KOREAN PROLIFERATION, HUMAN RIGHTS 
                   VIOLATIONS, AND ILLICIT ACTIVITIES

SEC. 201. SANCTIONS FOR MATERIAL SUPPORT OF NORTH KOREAN PROLIFERATION.

    (a) Sense of Congress.--It is the sense of Congress that the 
Government of North Korea should be treated as a primary money 
laundering concern in accordance with section 5318A of title 31, United 
States Code.
    (b) Requirements for Financial Institutions Maintaining Accounts 
for Foreign Financial Institutions.--
            (1) Termination of correspondent or payable-through 
        accounts.--A domestic financial institution shall terminate any 
        correspondent account that is established, maintained, 
        administered, or managed for, or on behalf of, any person, 
        foreign government, or financial institution designated under 
        subsection (a) or (b) of section 104.
            (2) Prohibition on indirect correspondent accounts.--If a 
        domestic financial institution has or obtains knowledge that a 
        correspondent account established, maintained, administered, or 
        managed by that domestic financial institution for a foreign 
        financial institution is being used by the foreign financial 
        institution to provide financial services indirectly to any 
        person, foreign government, or financial institution designated 
        under subsection (a) or (b) of section 104, the domestic 
        financial institution shall ensure that the correspondent 
        account is no longer used to provide such services, including, 
        when necessary, terminating the correspondent account.
            (3) Enhanced due diligence and reporting requirements.--
        Except as provided in section 207, the Secretary of Treasury 
        shall require all domestic financial institutions to apply one 
        or more of the special measures described in paragraphs (1) 
        through (5) of section 5318A(b) of title 31, United States 
        Code, to--
                    (A) any financial institution that establishes, 
                maintains, administers, or manages any correspondent 
                account for a person, financial institution, or foreign 
                government designated under subsection (a) or (b) of 
                section 104; and
                    (B) any person, financial institution, or foreign 
                government designated under subsection (c) or (d) of 
                section 104.
            (4) Additional requirements.--A domestic financial 
        institution required to terminate an account pursuant to this 
        subsection--
                    (A) shall not permit the foreign bank to establish 
                any new positions or execute any transactions through 
                such account, other than those necessary to close the 
                account; and
                    (B) may reestablish an account closed pursuant to 
                such subsection if the Secretary of the Treasury 
                determines that the account will not be used to provide 
                financial services indirectly to a person designated 
                under subsection (a) or (b) of section 104.
            (5) Prohibition on designation as primary dealer.--With 
        respect to a designated person that is a domestic financial 
        institution, neither the Board of Governors of the Federal 
        Reserve System nor the Federal Reserve Bank of New York may 
        designate, or permit the continuation of any prior designation 
        of, such financial institution as a primary dealer in United 
        States Government debt instruments.
            (6) Prohibition on service as a repository of government 
        funds.--With respect to a designated person that is a domestic 
        financial institution, such domestic financial institution may 
        not serve as agent of the United States Government or serve as 
        a repository for United States Government funds.
            (7) Foreign exchange.--The President may prohibit any 
        transactions in foreign exchange by any domestic financial 
        institution in which a designated person has any interest.
            (8) Banking transactions.--The President may prohibit any 
        transfers of credit or payments between domestic financial 
        institutions or by, through, or to any financial institution, 
        to the extent that such transfers or payments involve any 
        interest of a designated person.
            (9) Penalties.--
                    (A) Title 31, u.s.c.--The penalties provided for in 
                sections 5321(a) and 5322 of title 31, United States 
                Code, shall apply to a person that violates a 
                regulation prescribed under paragraph (1), (2), (3), or 
                (4) in the same manner and to the same extent as such 
                penalties would apply to any person that is otherwise 
                subject to such section 5321(a) or 5322.
                    (B) IEEPA.--The penalties provided for in section 
                206 of the International Emergency Economic Powers Act 
                (50 U.S.C. 1705) shall apply to a person who violates a 
                regulation prescribed under paragraph (5), (6), (7), or 
                (8) in the same manner and to the same extent as such 
                penalties would apply to any person that is otherwise 
                subject to such section.
    (c) Blocking of Property.--
            (1) In general.--The President shall exercise the 
        authorities of the International Emergency Economic Powers Act 
        (50 U.S.C. 1701 et seq.) without regard to section 202 of such 
        Act to immediately freeze or block--
                    (A) any North Korean property, and
                    (B) any property involved in any of the activities 
                described in section 104(a),
        within the jurisdiction of the United States, or held by a 
        domestic financial institution.
            (2) Property of a designated person.--The President may 
        exercise the authorities of the International Emergency 
        Economic Powers Act (50 U.S.C. 1701 et seq.) without regard to 
        section 202 of such Act to block any property of a designated 
        person within the jurisdiction of the United States, or held by 
        a domestic financial institution.
            (3) Property derived from misappropriation, theft, or 
        embezzlement of public funds.--The President shall exercise the 
        authorities of the International Emergency Economic Powers Act 
        (50 U.S.C. 1701 et seq.) without regard to section 202 of such 
        Act to encourage foreign governments and foreign financial 
        institutions to block, in accordance with the legal process of 
        the country in which the property is held, any property derived 
        from the misappropriation, theft, or embezzlement of public 
        funds by, or for the benefit of, an official of the Government 
        of North Korea.
            (4) Scope of authority.--Activities prohibited by reason of 
        the blocking of property and financial transactions under this 
        section shall include the following:
                    (A) Payments or transfers of any property, or any 
                transactions involving the transfer of anything of 
                economic value by any United States person, including 
                any United States financial institution and any branch 
                or office of such financial institution that is located 
                outside the United States, to a designated person.
                    (B) The transfer directly or indirectly, of any 
                goods, technology, or services by a United States 
                person to a designated person.
    (d) Review of Transaction Licenses.--The Secretary of the Treasury 
shall review all transaction licenses granted pursuant to subpart E of 
part 510 of title 31, Code of Federal Regulations, all applications for 
such licenses, and all exclusions from such licensing requirements not 
later than 180 days after the date of the enactment of this Act, and 
shall deny or revoke any license for any transaction that, in the 
determination of the Secretary of the Treasury, lacks sufficient 
financial controls to ensure that such transaction will not facilitate 
any of the activities described in section 104(a).
    (e) Denial of Visas.--The President may direct the Secretary of 
State to deny a visa to, and the Secretary of Homeland Security to 
exclude from the United States, any alien who is a designated person, 
or who is a corporate officer or principal of, or a shareholder with a 
controlling interest in, a designated person.
    (f) International Cooperation.--The President shall--
            (1) take appropriate steps to secure the effective 
        enforcement of anti-money laundering protocols consistent with 
        the purpose of this Act, through bilateral discussions with 
        foreign governments and through the Financial Action Task 
        Force; and
            (2) support efforts of foreign governments to enact and 
        enforce legislation consistent with the purposes of this Act.

SEC. 202. SANCTIONS AGAINST THE PROVISION OF SPECIALIZED FINANCIAL 
              MESSAGING SERVICES TO DESIGNATED NORTH KOREAN FINANCIAL 
              INSTITUTIONS.

    (a) Briefings Required.--
            (1) In general.--Not later than 90 days after the date of 
        the enactment of this Act, and every 180 days thereafter, the 
        President shall provide to the appropriate congressional 
        committees a briefing on the following:
                    (A) A list of all persons and foreign governments 
                that the President has identified that directly provide 
                specialized financial messaging services to, or enable 
                or facilitate direct or indirect access to such 
                messaging services for, any North Korean financial 
                institution designated under section 104(b).
                    (B) A detailed assessment of the status of efforts 
                by the President to end the direct provision of such 
                messaging services to, and the enabling or facilitation 
                of direct or indirect access to such messaging services 
                for any North Korean financial institution designated 
                under section 104(b).
            (2) Enabling or facilitation of access to specialized 
        financial messaging services through intermediary financial 
        institutions.--For purposes of paragraph (1) and subsection 
        (b), enabling or facilitating direct or indirect access to 
        specialized financial messaging services for any North Korean 
        financial institution designated under section 104(b) includes 
        doing so by serving as an intermediary financial institution 
        with access to such messaging services.
    (b) Authorization of Imposition of Sanctions.--
            (1) In general.--Except as provided in paragraph (2), if, 
        on or after the date that is 180 days after the date of the 
        enactment of this Act, a person continues to knowingly and 
        directly provide specialized financial messaging services to, 
        or knowingly enable or facilitate direct or indirect access to 
        such messaging services for any North Korean financial 
        institution designated under section 104(b), the President may 
        impose sanctions pursuant to section 206(b) of the 
        International Emergency Economic Powers Act (50 U.S.C. 1705(b)) 
        with respect to the person.
            (2) Exception.--The President may not impose sanctions 
        pursuant to paragraph (1) with respect to a person for directly 
        providing specialized financial messaging services to, or 
        enabling or facilitating direct or indirect access to such 
        messaging services for, any North Korean financial institution 
        designated under section 104(b) if--
                    (A) the person is subject to a sanctions regime 
                under its governing foreign law that requires it to 
                eliminate the knowing provision of such messaging 
                services to, and the knowing enabling and facilitation 
                of direct or indirect access to such messaging services 
                for any North Korean financial institution designated 
                under section 104(b); and
                    (B) the person has, pursuant to that sanctions 
                regime, terminated the knowing provision of such 
                messaging services to, and the knowing enabling and 
                facilitation of direct or indirect access to such 
                messaging services for, any North Korean financial 
                institution designated under section 104(b) identified 
                under such governing foreign law for purposes of that 
                sanctions regime.
            (3) Requirement for consultation.--The President may not 
        impose sanctions pursuant to paragraph (1) with respect to a 
        person for directly providing specialized financial messaging 
        services to, or enabling or facilitating direct or indirect 
        access to such messaging services for, any North Korean 
        financial institution designated under section 104(b) unless 
        the President has made good-faith efforts to obtain the 
        voluntary cessation of such specialized financial messaging 
        services by such person.

SEC. 203. PROLIFERATION PREVENTION SANCTIONS.

    (a) In General.--Section 6(j) of the Export Administration Act of 
1979 (50 U.S.C. App. 2405), as continued in effect under the 
International Emergency Economic Powers Act, is amended by adding at 
the end the following new paragraph:
            ``(7) A validated license shall be required for the export 
        to North Korea of any goods or technology without regard to 
        whether or not the Secretary of State has designated North 
        Korea as a country the government of which has provided support 
        for acts of international terrorism, as determined by the 
        Secretary of State under paragraph (1) or any other provision 
        of law.''.
    (b) Transactions With Countries Supporting Acts of International 
Terrorism.--The prohibitions and restrictions described in section 40 
of the Arms Export Control Act (22 U.S.C. 2780) shall also apply to 
exporting or otherwise providing (by sale, lease or loan, grant, or 
other means), directly or indirectly, any munitions item or defense 
articles and defense services to the Government of North Korea without 
regard to whether or not North Korea is a country with respect to which 
subsection (d) of such section (relating to designation of state 
sponsors of terrorism) applies.

SEC. 204. PROCUREMENT SANCTIONS.

    (a) In General.--Except as provided in this section, the United 
States Government may not procure, or enter into any contract for the 
procurement of, any goods or services from any designated person.
    (b) FAR.--The Federal Acquisition Regulation issued pursuant to 
section 1303 of title 41, United States Code, shall be revised to 
require a certification from each person that is a prospective 
contractor that such person does not engage in any of the activities 
described in section 104(a). Such amendment shall apply with respect to 
contracts for which solicitations are issued on or after the date that 
is 90 days after the date of the enactment of this Act.
    (c) GSA.--The Administrator of General Services shall include on 
the List of Parties Excluded from Federal Procurement and 
Nonprocurement Programs maintained by the Administrator under part 9 of 
the Federal Acquisition Regulation each person that is debarred, 
suspended, or proposed for debarment or suspension by the head of an 
executive agency on the basis of a determination of a false 
certification under subsection (b). If the head of an executive agency 
determines that a person has submitted a false certification under 
subsection (b) after the date on which the Federal Acquisition 
Regulation is revised to implement the requirements of this section, 
the head of such executive agency shall terminate a contract with such 
person or debar or suspend such person from eligibility for Federal 
contracts for a period of not more than three years. Any such debarment 
or suspension shall be subject to the procedures that apply to 
debarment and suspension under the Federal Acquisition Regulation under 
subpart 9.4 of part 9 of title 48, Code of Federal Regulations.
    (d) Clarification Regarding Certain Products.--The remedies 
specified in subsections (a) through (c) shall not apply with respect 
to the procurement of eligible products, as defined in section 308(4) 
of the Trade Agreements Act of 1979 (19 U.S.C. 2518(4)), of any foreign 
country or instrumentality designated under section 301(b) of such Act 
(19 U.S.C. 2511(b)).
    (e) Rule of Construction.--Nothing in his subsection may be 
construed to limit the use of other remedies available to the head of 
an executive agency or any other official of the Federal Government on 
the basis of a determination of a false certification under subsection 
(b).
    (f) Executive Agency Defined.--In this section, the term 
``executive agency'' has the meaning given such term in section 133 of 
title 41, United States Code.

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.

    (a) Briefing Required.--Not later than 180 days after the date of 
the enactment of this Act, and every 180 days thereafter, the President 
shall provide to the appropriate congressional committees a briefing 
identifying foreign ports and airports whose inspections of ships, 
aircraft, and conveyances originating in North Korea, carrying North 
Korean property, or operated by the Government of North Korea are 
deficient to effectively prevent the facilitation of any of the 
activities described in section 104(a).
    (b) Enhanced Customs Inspection Requirements.--Not later than 180 
days after the identification of any port or airport pursuant to 
subsection (a), the Secretary of Homeland Security shall promulgate 
regulations imposing enhanced inspection requirements on any cargo 
landed in the United States or entering interstate commerce that has 
been transported through such port or airport.
    (c) Seizure and Forfeiture.--A vessel, aircraft, or conveyance used 
to facilitate any of the activities described in section 104(a) that 
comes within the jurisdiction of the United States may be seized and 
forfeited under chapter 46 of title 18, United States Code, or under 
chapter 4 of title 19, United States Code, and the proceeds of any such 
forfeiture shall be available for the purposes described in section 
403.

SEC. 206. INTERNATIONAL ASSISTANCE.

    (a) Condition on Provision of United States Funds to an 
International Financial Institution.--Funds appropriated for payment to 
an international financial institution (as defined in section 
1701(c)(2) of the International Financial Institutions Act (22 U.S.C. 
262r(c)(2))) shall not be made available to the institution unless the 
institution provides assurances to the Secretary of State that the 
funds will not be used for assistance to the Government of North Korea.
    (b) Opposition to Use of International Financial Institution Funds 
for North Korea.--The United States Executive Director at each 
international financial institution (as so defined) shall use the 
voice, vote, and influence of the United States to oppose the provision 
by the institution of any assistance to the Government of North Korea.
    (c) Transactions in Defense Articles and Defense Services.--
            (1) In general.--The President shall withhold assistance 
        under part I of the Foreign Assistance Act of 1961 (22 U.S.C. 
        2151 et seq.) to the government of any country that provides 
        defense articles and defense services to the Government of 
        North Korea or receives defense articles and defense services 
        from the Government of North Korea.
            (2) Applicability.--The prohibition described in paragraph 
        (1) shall terminate on the date that is 2 years after the date 
        on which such foreign government ceases to provide defense 
        articles and defense services to the Government of North Korea, 
        or to purchase or receive defense articles and defense services 
        from the Government of North Korea.
            (3) Waiver.--Assistance may be furnished to a foreign 
        government described in paragraph (1) if the President makes 
        the determinations prescribed in subsection (b) of section 620G 
        of the Foreign Assistance Act of 1961, as amended (22 U.S.C. 
        2377(b)).

SEC. 207. EXCLUSION, WAIVER, AND REMOVAL OF DESIGNATION.

    (a) Exclusions.--The following activities shall not apply with 
respect to the requirement under subsection (a), (b), (c), or (d) of 
section 104 to designate a person, foreign government, or financial 
institution for purposes of imposing a sanction or sanctions on the 
designated person:
            (1) Activities subject to the reporting requirements of 
        title V of the National Security Act of 1947 (50 U.S.C. 413 et 
        seq.), or to any authorized intelligence activities of the 
        United States.
            (2) Any transaction the exclusive purpose for which is to 
        provide humanitarian assistance to the people of North Korea.
            (3) Any transaction the exclusive purpose for which is to 
        import food products into North Korea, if such food items are 
        not defined as luxury goods.
            (4) Any transaction necessary to maintain a diplomatic or 
        consular relationship under the Agreement between the United 
        Nations and the United States of America regarding the 
        Headquarters of the United Nations, signed June 26, 1947, and 
        entered into force November 21, 1947, or under the Vienna 
        Convention on Consular Relations, signed April 24, 1963, and 
        entered into force on March 19, 1967.
            (5) Any transaction the exclusive purpose for which is to 
        import fertilizers, pesticides, agricultural equipment, or 
        medical supplies or equipment into North Korea, provided that 
        such supplies or equipment are not controlled under--
                    (A) the Export Administration Act of 1979 (50 
                U.S.C. App. 2401 et seq.), as continued in effect under 
                the International Emergency Economic Powers Act (50 
                U.S.C. 1701 et seq.);
                    (B) the Arms Export Control Act (22 U.S.C. 2751 et 
                seq.);
                    (C) part B of title VIII of the Nuclear 
                Proliferation Prevention Act of 1994 (22 U.S.C. 6301 et 
                seq.); or
                    (D) the Chemical and Biological Weapons Control and 
                Warfare Elimination Act of 1991 (22 U.S.C. 5601 et 
                seq.).
    (b) Waivers.--
            (1) In general.--The President may waive, on a case-by-case 
        basis, and for a period not to exceed one year, the requirement 
        under subsection (a) or (b) of section 104 to designate a 
        person, foreign government, or financial institution, or to 
        impose a sanction or sanctions on the designated person, if the 
        President submits to the appropriate congressional committees a 
        written determination that the waiver meets the following 
        requirements:
                    (A) The waiver is vital to the economic or national 
                security interests of the United States.
                    (B) The waiver will advance the purposes set forth 
                in section 4 of the North Korea Human Rights Act of 
                2004 (22 U.S.C. 7801 et seq.).
                    (C) The waiver is for the benefit of a financial 
                institution that--
                            (i) has blocked all North Korean property 
                        deposited in such financial institution, 
                        pending an audit of the origin of such property 
                        and the implementation of safeguards to ensure 
                        that the property is not used to facilitate any 
                        of the activities described in section 104(a); 
                        and
                            (ii) is providing good-faith cooperation 
                        with the investigation of any of the activities 
                        described in section 104(a) or the enforcement 
                        of the provisions of this Act.
                    (D) The waiver is for the benefit of a person, 
                foreign government, or financial institution that is 
                providing good-faith cooperation with the investigation 
                of any of the activities described in section 104(a) 
                and the enforcement of this Act.
                    (E) The waiver is for the benefit of a person, 
                foreign government, or financial institution that 
                provides underwriting, financial, insurance, 
                reinsurance, reflagging, transportation, or financial 
                messaging services, and who has exercised due diligence 
                in establishing and enforcing official policies, 
                procedures, and controls to ensure that the person, 
                foreign government, or financial institution (as the 
                case may be) does not facilitate any of the activities 
                described in section 104(a).
                    (F) In the absence of the waiver, the imposition of 
                the sanction or sanctions would have a severe and 
                adverse humanitarian impact on the people of North 
                Korea and such impact substantially outweighs the 
                interest of the United States in enforcing the 
                provisions of this Act.
            (2) Government of north korea.--The President may waive, on 
        a case-by-case basis, and for a period not to exceed one year, 
        the requirement under section 104(c) to designate the 
        Government of North Korea, or to impose a sanction or sanctions 
        on the Government of North Korea, if the President submits to 
        the appropriate congressional committees a written 
        determination that the waiver meets the requirements described 
        in paragraph (1)(F).
    (c) Removal of Sanctions.--The President may prescribe rules and 
regulations for the removal of sanctions on a person, foreign 
government, or financial institution that is designated under 
subsection (a), (b), or (d) of section 104 and the removal of 
designations of a person, foreign government, or financial institution 
with respect to such sanctions if the President determines that the 
designated person has verifiably ceased its participation in any of the 
activities described in section 104(a) and is cooperating with the 
investigation of such activities and carrying out this Act.
    (d) Financial Services for Humanitarian and Consular Activities.--
The President may promulgate regulations, rules, and polices as may be 
necessary to facilitate the provision of financial services by a 
foreign financial institution that is not controlled by the Government 
of North Korea in support of the activities subject to exclusion under 
this section.

         TITLE III--PROMOTION OF HUMAN RIGHTS AND DISINVESTMENT

SEC. 301. INFORMATION TECHNOLOGY.

    Section 104 of the North Korean Human Rights Act of 2004 (22 U.S.C. 
7814) is amended by inserting after subsection (c) the following new 
subsection:
    ``(d) Information Technology Study.--Not later than 180 days after 
the date of the enactment of this subsection, the President shall 
submit to the appropriate congressional committees a classified report 
setting forth a detailed plan for making unrestricted, unmonitored, and 
inexpensive electronic mass communications available to the people of 
North Korea.''.

SEC. 302. DISCLOSURES TO SECURITIES AND EXCHANGE COMMISSION RELATING TO 
              SANCTIONABLE ACTIVITIES.

    (a) In General.--Section 13 of the Securities Exchange Act of 1934 
(15 U.S.C. 78m) is amended by adding at the end the following new 
subsection:
    ``(s) Disclosure of Certain Activities Relating to North Korea, 
Terrorism, and the Proliferation of Weapons of Mass Destruction.--
            ``(1) General disclosure required.--Each issuer required to 
        file an annual or quarterly report under subsection (a) shall 
        include with such report a statement of whether, during the 
        period since the issuer made the last such report, the issuer 
        or any affiliate of the issuer--
                    ``(A) was designated under section 104 of the North 
                Korea Sanctions Enforcement Act of 2013, or engaged in 
                any of the activities described in section 104(a) of 
                such Act; or
                    ``(B) knowingly conducted any transaction or 
                dealing with any person designated pursuant to 
                subsection (a), (b), (c), or (d) of section 104 of the 
                North Korea Sanctions Enforcement Act of 2013.
            ``(2) Specific disclosure required.--If an issuer reports 
        under paragraph (1) that the issuer or an affiliate of the 
        issuer has engaged in any activity described in that paragraph, 
        the issuer shall include with the statement required under that 
        paragraph a detailed description of each such activity, 
        including--
                    ``(A) the nature and extent of the activity;
                    ``(B) the revenues and profits, if any, 
                attributable to the activity; and
                    ``(C) whether the issuer or the affiliate of the 
                issuer (as the case may be) intends to continue the 
                activity.
            ``(3) Investigation of disclosures.--When the Commission 
        receives a report under paragraph (1) from an issuer that the 
        issuer or an affiliate of the issuer has engaged in any 
        activity described in that paragraph, the President shall--
                    ``(A) initiate an investigation into the possible 
                imposition of sanctions under the North Korea Sanctions 
                Enforcement Act of 2013, the International Emergency 
                Economic Powers Act (50 U.S.C. 1701 et seq.), Executive 
                Order 13224, Executive Order 13382, Executive Order 
                13551, Executive Order 13570, or any other provision of 
                law; and
                    ``(B) not later than 180 days after initiating such 
                an investigation, make such determinations as are 
                required by section 104 of the North Korea Sanctions 
                Enforcement Act of 2013.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect with respect to reports required to be filed with the 
Securities and Exchange Commission after a date that is 90 days after 
the date of the enactment of this Act.

SEC. 303. 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 
that for moral, prudential, or reputational reasons divests from, or 
prohibits the investment of assets of such State or local government 
in, a person that engages in investment activities in North Korea, if 
North Korea is subject to economic sanctions imposed by the United 
States.
    (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 such 
State or local government from, or prohibit investment of the assets of 
such State or local government in, any person that such State or local 
government determines, using credible information available to the 
public, engages in investment activities in North Korea described in 
subsection (c).
    (c) Investment Activities Described.--A person engages in 
investment activities in North Korea described in this subsection if 
the person--
            (1) has an investment of $10,000 or more in North Korea; or
            (2) is a financial institution that extends $10,000 or more 
        in credit to another person, for 45 days or more, if such 
        person will use such credit for investment in North Korea.
    (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 is provided to such 
        person under paragraph (1).
            (3) Opportunity for hearing.--The State or local government 
        at issue shall provide an opportunity to comment in writing to 
        each person with respect to which a measure is to be applied 
        under this section. If such person demonstrates to such State 
        or local government that such person does not engage in 
        investment activities in North Korea described in subsection 
        (c), such measure shall not apply to such 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 such State or local government has made every 
        effort to avoid erroneously targeting such person and has 
        verified that such person engages in investment activities in 
        North Korea described in subsection (c).
    (e) Notice to Department of Justice.--Not later than 30 days after 
a State of local government applies a measure under this section, such 
State or local government shall notify the Attorney General of such 
measure.
    (f) Nonpreemption.--A measure applied by a State or local 
government authorized under subsection (b) or (i) is not preempted by 
any Federal law or regulation.
    (g) Definitions.--In this section:
            (1) Asset.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the term ``asset'' refers to public monies and 
                includes any pension, retirement, annuity, or 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.
    (h) Effective Date.--
            (1) In general.--Except as provided in paragraph (2) or 
        subsection (i), 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 
        (i), 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.
    (i) 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 such State or local government before the date 
        of the enactment of this Act that provides for the divestment 
        of assets of such State or local government from, or prohibits 
        the investment of the assets of such State or local government 
        in, any person that such State or local government determines, 
        using credible information available to the public, engages in 
        investment activities in North Korea (determined without regard 
        to subsection (c)) or other business activities in North Korea 
        that are identified in such measure.
            (2) Application of notice requirements.--A measure 
        described in paragraph (1) shall be subject to the requirements 
        of paragraphs (1) and (2) and the first sentence of paragraph 
        (3) of subsection (d) on and after the date that is two years 
        after the date of the enactment of this Act.
    (j) Rule of Construction.--Nothing in this Act or any other 
provision of law authorizing sanctions with respect to North Korea 
shall be construed to abridge 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 
the business of insurance pursuant to the Act of March 9, 1945 (15 
U.S.C. 1011 et seq.) (commonly known as the ``McCarran-Ferguson Act'').

SEC. 304. SAFE HARBOR FOR CHANGES OF INVESTMENT POLICIES BY ASSET 
              MANAGERS.

    (a) In General.--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 in North 
                Korea described in section 303 of the North Korea 
                Sanctions Enforcement Act of 2013.''.
    (b) Securities and Exchange Commission Regulations.--Not later than 
120 days after the date of the enactment of this Act, the Securities 
and Exchange Commission shall issue any revisions the Commission 
determines to be necessary to the regulations requiring disclosure by 
each registered investment company that divests itself of securities in 
accordance with section 13(c) of the Investment Company Act of 1940 (15 
U.S.C. 80a-13(c)), including divestments of securities in accordance 
with subparagraph (C) of such section, as added by subsection (a)(3).

SEC. 305. SENSE OF CONGRESS REGARDING CERTAIN ERISA PLAN INVESTMENTS.

    It is the sense of Congress that 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 in North Korea described in section 
406 of this Act, without breaching the responsibilities, obligations, 
or duties imposed upon such 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)), if--
            (1) such fiduciary makes such determination using credible 
        information that is available to the public; and
            (2) such fiduciary prudently determines that the result of 
        such divestment or avoidance of investment would not be 
        expected to provide the employee benefit plan with--
                    (A) a lower rate of return than alternative 
                investments with commensurate degrees of risk; or
                    (B) a higher degree of risk than alternative 
                investments with commensurate rates of return.

SEC. 306. REPORT ON NORTH KOREAN PRISON CAMPS.

    (a) In General.--The Secretary of State shall submit to the 
appropriate congressional committees a report describing, with respect 
to each political prison camp in North Korea--
            (1) the camp's estimated prisoner population;
            (2) the camp's geographical coordinates;
            (3) the reasons for confinement of the prisoners;
            (4) the camp's primary industries and products, and the end 
        users of any goods produced in such camp;
            (5) the natural persons and agencies responsible for 
        conditions in the camp;
            (6) the conditions under which prisoners are confined, with 
        respect to the adequacy of food, shelter, medical care, working 
        conditions, and reports of ill-treatment of prisoners; and
            (7) imagery, to include satellite imagery of each such 
        camp, in a format that, if published, would not compromise the 
        sources and methods used by the intelligence agencies of the 
        United States to capture geospatial imagery.
    (b) Form.--The report required under subsection (a) shall be 
included in the first report required to be submitted to Congress after 
the date of the enactment of this Act under sections 116(d) and 502B(b) 
of the Foreign Assistance Act of 1961 (22 U.S.C. 2151n(d) and 2304(b)) 
(relating to the annual human rights report).

SEC. 307. LIMITS ON JURISDICTIONAL IMMUNITY.

    The exception to immunity provided in section 1605A of title 28, 
United States Code, applies to North Korea, to the same extent as any 
foreign state (as defined in section 1603 of such title), and (as 
provided in section 1605(c) of such title) to any official, employee, 
or agent of North Korea, without regard to whether or not North Korea 
is designated as a state sponsor of terrorism, as defined in section 
1605A(h) of such title.

                     TITLE IV--GENERAL AUTHORITIES

SEC. 401. SUSPENSION OF SANCTIONS AND OTHER MEASURES.

            (1) In general.--Any sanction or other measure required by 
        title II or III of this Act (or any amendment made by title II 
        or III of this Act) may be suspended for up to 365 days upon 
        certification by the President to the appropriate congressional 
        committees that the Government of North Korea has--
                    (A) verifiably ceased its counterfeiting of United 
                States currency, including the surrender or destruction 
                of specialized materials and equipment used for or 
                particularly suitable for counterfeiting;
                    (B) taken significant steps toward financial 
                transparency to comply with generally accepted 
                protocols to cease and prevent the laundering of 
                monetary instruments;
                    (C) taken significant steps toward verification of 
                its compliance with United Nations Security Council 
                Resolutions 1695, 1718, 1874, 2087, and 2094;
                    (D) taken significant steps toward accounting for 
                and repatriating the citizens of other countries 
                abducted by the Government of North Korea;
                    (E) taken significant steps toward verification of 
                its compliance with the Joint Statement of September 
                19, 2005;
                    (F) accepted and begun to abide by internationally 
                recognized standards for the distribution and 
                monitoring of humanitarian aid;
                    (G) provided credible assurances that it will not 
                support further acts of international terrorism; and
                    (H) taken significant and verified steps to improve 
                living conditions in its political prison camps.
            (2) Renewal of suspension.--The suspension described in 
        paragraph (1) may be renewed for an additional consecutive 
        period of 365 days upon certification by the President to the 
        appropriate congressional committees that the Government of 
        North Korea--
                    (A) has continued to make significant progress 
                toward compliance with the conditions described in 
                paragraph (1) during the previous year; and
                    (B) meets 2 or more of the requirements described 
                in paragraphs (1) through (6) of section 402.

SEC. 402. TERMINATION OF SANCTIONS AND OTHER MEASURES.

    Any sanction or other measure required by title II or III and of 
this Act (or any amendment made by title II or III of this Act) shall 
terminate on the date on which the President determines and certifies 
to the appropriate congressional committees that the Government of 
North Korea has met the requirements of section 401, and has also--
            (1) completely, verifiably, and irreversibly dismantled all 
        of its nuclear, chemical, biological, and radiological weapons 
        programs, including all programs for the development of systems 
        designed in whole or in part for the delivery of such weapons;
            (2) released all political prisoners, including the 
        citizens of North Korea detained in the North Korea's political 
        prison camps;
            (3) ceased its censorship of peaceful political activity;
            (4) has taken significant steps toward the establishment of 
        an open, transparent, and representative society;
            (5) has fully accounted for all citizens of all nations 
        abducted by the Government of North Korea; and
            (6) made public commitments to, and continues to make 
        significant progress toward--
                    (A) establishing an independent judiciary; and
                    (B) respecting the human rights and basic freedoms 
                recognized in the Universal Declaration of Human 
                Rights.

SEC. 403. NORTH KOREA ENFORCEMENT AND HUMANITARIAN FUND.

    (a) Establishment.--There is established in the Treasury of the 
United States a fund to be known as the North Korea Enforcement and 
Humanitarian Fund (in this section referred to as the ``Fund'').
    (b) Deposits.--All revenues derived from any criminal, civil, or 
administrative forfeitures of property involved in any of the 
activities described in section 104(a), and all revenues derived from 
any agreement to defer prosecution for any such activities, and all 
revenues derived from penalties assessed under section 206 of the 
International Emergency Economic Powers Act (50 U.S.C. 1705) arising 
from violations of section 104(a) or the regulations promulgated under 
section 104(f) or section 404, shall be deposited into the Fund, and 
may be transferred and consolidated on the books of the Treasury into a 
special account for the purposes described in subsection (c).
    (c) Uses.--There are authorized to be appropriated from the Fund 
each fiscal year--
            (1) such amounts as shall be necessary and appropriate for 
        the administration of the Fund; and
            (2) without regard to fiscal year limitation, amounts not 
        exceeding--
                    (A) for salaries, benefits, and expenses for 
                persons assigned by the President to conduct 
                investigations and enforce sanctions as prescribed in 
                this Act, $5,000,000;
                    (B) for any of the purposes described in section 
                524(c) of title 28, United States Code, or section 9703 
                of title 31, United States Code, with respect to 
                investigations and enforcement activities under title I 
                or title II, $5,000,000;
                    (C) to carry out section 103 of the North Korea 
                Human Rights Act of 2004 (22 U.S.C. 7813), $3,000,000;
                    (D) to carry out section 104 of the North Korea 
                Human Rights Act of 2004 (22 U.S.C. 7814), $5,000,000;
                    (E) to carry out section 203 of the North Korea 
                Human Rights Act of 2004 (22 U.S.C. 7833), $5,000,000; 
                and
                    (F) to carry out subsection (d) of section 104 of 
                the North Korean Human Rights Act of 2004 (22 U.S.C. 
                7814) (as added by section 301 of this Act), 
                $2,000,000.
    (d) Transfer.--To prevent the accumulation of excessive surpluses 
in the Fund, in any fiscal year an amount specified in an annual 
appropriation law may be transferred out of the Fund and deposited, in 
equal proportions, into the funds established under section 9703 of 
title 31, United States Code, and under section 524(c) of title 28, 
United States Code.
    (e) Sunset.--The Fund established under this section shall cease to 
exist on September 30, 2023, and any unexpended funds remaining in the 
Fund after such date shall be transferred in accordance with subsection 
(d).

SEC. 404. REGULATIONS.

    (a) In General.--The President is authorized to promulgate such 
rules and regulations as may be necessary to carry out the provisions 
of this Act.
    (b) Rule of Construction.--Nothing in this Act or any amendment 
made by this Act shall be construed to limit the authority of the 
President to designate or sanction persons pursuant to Executive Order 
No. 13382, 13224, 13551, or otherwise pursuant to the International 
Emergency Economic Powers Act (50 U.S.C. 1701 et seq.).

SEC. 405. EFFECTIVE DATE.

    Except as otherwise provided in this Act, this Act and the 
amendments made by this Act shall take effect on the date of the 
enactment of this Act.
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