IB 

Union Calendar No. 420 

113TH CONGRESS 

2D SESSION H. R. 1771 

[Report No. 113–560, Part I] 

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 

JULY 28, 2014 

Additional sponsors: Mr. RADEL, Mr. MEADOWS, Mr. COTTON, Mr. WEBER

of Texas, Mr. STOCKMAN, Mr. MESSER, Mr. WOLF, Mr. KINZINGER of 

Illinois, Mr. MCCAUL, Mr. HOLDING, Ms. GABBARD, Mr. SCHNEIDER, 

Mr. COOK, Mr. ROSKAM, Mr. CONNOLLY, Ms. MENG, Mr. LOWENTHAL, 

Mr. PERRY, Mr. BROOKS of Alabama, Ms. BORDALLO, Mr. HIGGINS, Mr. 

SENSENBRENNER, Mr. SIRES, Mr. KLINE, Mr. BISHOP of Utah, Mr. 

COLLINS of Georgia, Ms. BASS, Mr. SCHOCK, Mr. SAM JOHNSON of 

Texas, Mr. BERA of California, Mr. CONAWAY, Mr. MEEHAN, Mr. 

PEARCE, Mr. WESTMORELAND, Mr. VARGAS, Mr. SMITH of New Jersey, 

Mr. MICA, Mr. GOHMERT, Mr. DEUTCH, Mr. PETERSON, Mr. FORBES, 

Mr. WILSON of South Carolina, Mr. BRIDENSTINE, Mr. UPTON, Mr. 

BONNER, Mr. CICILLINE, Mr. RYAN of Ohio, Mr. FINCHER, Mr. BILIRAKIS, Mr. SMITH of Missouri, Mr. YOUNG of Indiana, Mr. LUETKEMEYER, Mr. NUNNELEE, Mr. DESANTIS, Mr. BROUN of Georgia, Mr. 

COFFMAN, Mr. MORAN, Mr. LAMALFA, Ms. JENKINS, Mr. CARSON of Indiana, Mr. SHIMKUS, Mr. DESJARLAIS, Mr. MILLER of Florida, Mr. 

JOHNSON of Ohio, Mr. SABLAN, Mr. GENE GREEN of Texas, Mr. 

MULVANEY, Mr. STEWART, Mr. BENISHEK, Mrs. NOEM, Mr. RAHALL, 


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Mr. HARPER, Mrs. WAGNER, Mr. STIVERS, Mr. NEUGEBAUER, Mrs. 

BLACK, Mr. MCHENRY, Mr. PETERS of California, Ms. WILSON of Florida, Mr. MICHAUD, Mr. KINGSTON, Mr. OWENS, Mr. KING of New York, 

Mr. ENYART, Mr. WALBERG, Mrs. BLACKBURN, Mr. KENNEDY, Mr. 

YOUNG of Alaska, Mr. BENTIVOLIO, Mr. LANCE, Mr. GRIFFIN of Arkansas, Mr. COLLINS of New York, Mr. THORNBERRY, Ms. LINDA T. 

SA ́NCHEZ of California, Mr. OLSON, Mr. HANNA, Mr. VEASEY, Mr. 

ISRAEL, Mr. PITTENGER, Mr. LATTA, Mr. AUSTIN SCOTT of Georgia, Mr. 

WOODALL, Mr. PITTS, Ms. MICHELLE LUJAN GRISHAM of New Mexico, 

Mrs. NAPOLITANO, Mr. CARTWRIGHT, Mr. WOMACK, Mr. HUIZENGA of 

Michigan, Mr. GRAVES of Missouri, Mr. COBLE, Mr. SIMPSON, Mr. 

PETERS of Michigan, Mr. HECK of Nevada, Mr. WENSTRUP, Ms. SHEAPORTER, Mr. FORTENBERRY, Mr. ROTHFUS, Mr. GARRETT, Mr. GOWDY, 

Mr. YODER, Ms. HANABUSA, Mr. SESSIONS, Mr. MCDERMOTT, Mr. 

SMITH of Washington, Mr. DUNCAN of South Carolina, Mr. REICHERT, 

Ms. LORETTA SANCHEZ of California, Mr. HASTINGS of Florida, Mrs. 

BACHMANN, Mr. KING of Iowa, Mr. LATHAM, Mr. COLE, Mr. CRAMER, 

Mr. MULLIN, Mr. DELANEY, Mr. RUSH, Mr. PAULSEN, Mr. DUFFY, Ms. 

KAPTUR, and Mr. FATTAH

JULY 28, 2014 

Reported from the Committee on Foreign Affairs with an amendment 

[Strike out all after the enacting clause and insert the part printed in italic] 

JULY 28, 2014 

The Committees on Ways and Means, the Judiciary, Financial Services, and 

Oversight and Government Reform discharged; committed to the Committee of the Whole House on the State of the Union and ordered to be 

printed 

[For text of introduced bill, see copy of bill as introduced on April 26, 2013] 

A BILL 

To improve the enforcement of sanctions against the 

Government of North Korea, and for other purposes. 


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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 2014’’. 

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

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Findings. 

Sec. 3. Definitions. 

TITLE I—INVESTIGATIONS, PROHIBITED CONDUCT, AND PENALTIES 

Sec. 101. Statement of policy. 

Sec. 102. Investigations. 

Sec. 103. Briefing to Congress. 

Sec. 104. Prohibited conduct and mandatory and discretionary designation and 

sanctions authorities. 

Sec. 105. Forfeiture of property. 

TITLE II—SANCTIONS AGAINST NORTH KOREAN PROLIFERATION, 

HUMAN RIGHTS ABUSES, AND ILLICIT ACTIVITIES 

Sec. 201. Determinations with respect to North Korea as a jurisdiction of primary money laundering concern. 

Sec. 202. Ensuring the consistent enforcement of United Nations Security Council 

resolutions and financial restrictions on North Korea. 

Sec. 203. Proliferation prevention sanctions. 

Sec. 204. Procurement sanctions. 

Sec. 205. Enhanced inspections authorities. 

Sec. 206. Travel sanctions. 

Sec. 207. Exemptions, waivers, and removals of designation. 

Sec. 208. Sense of Congress on enforcement of sanctions on North Korea. 

TITLE III—PROMOTION OF HUMAN RIGHTS 

Sec. 301. Information technology. 

Sec. 302. Report on North Korean prison camps. 

Sec. 303. Report on persons who are responsible for serious human rights abuses 

or censorship in North Korea. 

TITLE IV—GENERAL AUTHORITIES 

Sec. 401. Suspension of sanctions and other measures. 

Sec. 402. Termination of sanctions and other measures. 

Sec. 403. Regulations. 

Sec. 404. Effective date. 


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1 SEC. 2. FINDINGS. 

2 Congress finds the following: 

3 (1) The Government of North Korea has repeat4 edly violated its commitments to the complete, 

5 verifiable, irreversible dismantlement of its nuclear 

6 weapons programs, and has willfully violated mul7 tiple United Nations Security Council resolutions 

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

9 production of weapons of mass destruction. 

10 (2) North Korea poses a grave risk for the pro11 liferation of nuclear weapons and other weapons of 

12 mass destruction. 

13 (3) The Government of North Korea has been im14 plicated repeatedly in money laundering and illicit 

15 activities, including prohibited arms sales, narcotics 

16 trafficking, the counterfeiting of United States cur17 rency, and the counterfeiting of intellectual property 

18 of United States persons. 

19 (4) The Government of North Korea has, both 

20 historically and recently, repeatedly sponsored acts of 

21 international terrorism, including attempts to assas22 sinate defectors and human rights activists, repeated 

23 threats of violence against foreign persons, leaders, 

24 newspapers, and cities, and the shipment of weapons 

25 to terrorists. 


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1 (5) North Korea has unilaterally withdrawn 

2 from the 1953 Armistice Agreement that ended the 

3 Korean War, and committed provocations against 

4 South Korea in 2010 by sinking the warship Cheonan 

5 and killing 46 of her crew, and by shelling 

6 Yeonpyeong Island, killing four South Koreans. 

7 (6) North Korea maintains a system of brutal 

8 political prison camps that contain as many as 

9 200,000 men, women, and children, who live in atro10 cious living conditions with insufficient food, cloth11 ing, and medical care, and under constant fear of tor12 ture or arbitrary execution. 

13 (7) The Congress reaffirms the purposes of the 

14 North Korean Human Rights Act of 2004 contained 

15 in section 4 of such Act (22 U.S.C. 7802). 

16 (8) North Korea has prioritized weapons pro17 grams and the procurement of luxury goods, in defi18 ance of United Nations Security Council resolutions, 

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

20 (9) Persons, including financial institutions, 

21 who engage in transactions with, or provide financial 

22 services to, the Government of North Korea and its fi23 nancial institutions without establishing sufficient fi24 nancial safeguards against North Korea’s use of these 

25 transactions to promote proliferation, weapons trafVerDate Mar 15 2010 23:23 Jul 28, 2014 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6203 E:\BILLS\H1771.RH H1771

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1 ficking, human rights violations, illicit activity, and 

2 the purchase of luxury goods, aid and abet North Ko3 rea’s misuse of the international financial system, 

4 and also violate the intent of relevant United Nations 

5 Security Council resolutions. 

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

7 poses an imminent threat to the security of the 

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

9 the safety of members of the United States armed 

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

11 to the integrity of global nonproliferation programs, 

12 and to the people of North Korea. 

13 (11) The Congress seeks, through this legislation, 

14 to use nonmilitary means to address this crisis, to 

15 provide diplomatic leverage to negotiate necessary 

16 changes in North Korea’s conduct, and to ease the suf17 fering of the people of North Korea. 

18 SEC. 3. DEFINITIONS. 

19 In this Act: 

20 (1) APPLICABLE EXECUTIVE ORDER.—The term 

21 ‘‘applicable Executive order’’ means— 

22 (A) Executive Order 13382 (2005), 13466 

23 (2008), 13551 (2010), or 13570 (2011), to the ex24 tent that such Executive order authorizes the im25 position of sanctions on persons for conduct, or 


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1 prohibits transactions or activities, involving the 

2 Government of North Korea; or 

3 (B) any Executive order adopted on or after 

4 the date of the enactment of this Act, to the ex5 tent that such Executive order authorizes the im6 position of sanctions on persons for conduct, or 

7 prohibits transactions or activities, involving the 

8 Government of North Korea. 

9 (2) APPLICABLE UNITED NATIONS SECURITY

10 COUNCIL RESOLUTION.—The term ‘‘applicable United 

11 Nations Security Council resolution’’ means— 

12 (A) United Nations Security Council Reso13 lution 1695 (2006), 1718 (2006), 1874 (2009), 

14 2087 (2013), or 2094 (2013); or 

15 (B) any United Nations Security Council 

16 resolution adopted on or after the date of the en17 actment of this Act, to the extent that such reso18 lution authorizes the imposition of sanctions on 

19 persons for conduct, or prohibits transactions or 

20 activities, involving the Government of North 

21 Korea. 

22 (3) APPROPRIATE CONGRESSIONAL COMMIT23 TEES.—The term ‘‘appropriate congressional commit24 tees’’ 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 (4) DESIGNATED PERSON.—The term ‘‘des8 ignated person’’ means a person designated under 

9 subsection (a) or (b) of section 104 for purposes of ap10 plying one or more of the sanctions described in title 

11 I or II of this Act with respect to the person. 

12 (5) GOVERNMENT OF NORTH KOREA.—The term 

13 ‘‘Government of North Korea’’ means— 

14 (A) the Government of the Democratic Peo15 ple’s Republic of Korea or any political subdivi16 sion, agency, or instrumentality thereof; and 

17 (B) any person owned or controlled by, or 

18 acting for or on behalf of, the Government of the 

19 Democratic People’s Republic of Korea. 

20 (6) INTERNATIONAL TERRORISM.—The term 

21 ‘‘international terrorism’’ has the meaning given such 

22 term in section 140(d) of the Foreign Relations Au23 thorization Act, Fiscal Years 1988 and 1989 (22 

24 U.S.C. 2656f(d)). 


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1 (7) LUXURY GOODS.—The term ‘‘luxury goods’’ 

2 has the meaning given such term in subpart 746.4 of 

3 title 15, Code of Federal Regulations, and includes the 

4 items listed in Supplement No. 1 to such regulation, 

5 and any similar items. 

6 (8) MONETARY INSTRUMENT.—The term ‘‘mone7 tary instrument’’ has the meaning given such term 

8 under section 5312 of title 31, United States Code. 

9 (9) NORTH KOREAN FINANCIAL INSTITUTION.— 

10 The term ‘‘North Korean financial institution’’ 

11 means— 

12 (A) a financial institution organized under 

13 the laws of North Korea or any jurisdiction 

14 within North Korea (including a foreign branch 

15 of such institution); 

16 (B) any financial institution located in 

17 North Korea, except as may be excluded from 

18 such definition by the President in accordance 

19 with section 207(d); 

20 (C) any financial institution, wherever lo21 cated, owned or controlled by the Government of 

22 North Korea; and 

23 (D) any financial institution, wherever lo24 cated, owned or controlled by a financial institu25 tion described in subparagraph (A), (B), or (C). 


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1 (10) OTHER STORES OF VALUE.—The term 

2 ‘‘other stores of value’’ means— 

3 (A) prepaid access devices, tangible or in4 tangible prepaid access devices, or other instru5 ments or devices for the storage or transmission 

6 of value, as defined in part 1010 of title 31, Code 

7 of Federal Regulations; and 

8 (B) any covered goods, as defined in section 

9 1027.100 of title 31, Code of Federal Regula10 tions, and any instrument or tangible or intan11 gible access device used for the storage and trans12 mission of a representation of covered goods. 

13 (11) PERSON.—The term ‘‘person’’ has the mean14 ing given that term in section 510.306 of title 31, 

15 Code of Federal Regulations. 

16 TITLE I—INVESTIGATIONS, PRO17 HIBITED CONDUCT, AND PEN18 ALTIES 

19 SEC. 101. STATEMENT OF POLICY. 

20 In order to achieve the peaceful disarmament of North 

21 Korea, Congress finds that it is necessary— 

22 (1) to encourage all states to fully and promptly 

23 implement United Nations Security Council Resolu24 tion 2094 (2013); 


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1 (2) to sanction the persons, including financial 

2 institutions, that facilitate proliferation, illicit activi3 ties, arms trafficking, imports of luxury goods, serious 

4 human rights abuses, cash smuggling, and censorship 

5 by the Government of North Korea; 

6 (3) to authorize the President to sanction persons 

7 who fail to exercise due diligence to ensure that such 

8 financial institutions and jurisdictions do not facili9 tate proliferation, arms trafficking, kleptocracy, and 

10 imports of luxury goods by the Government of North 

11 Korea; 

12 (4) to deny the Government of North Korea ac13 cess to the funds it uses to obtain nuclear weapons, 

14 ballistic missiles, and luxury goods instead of pro15 viding for the needs of its people; and 

16 (5) to enforce sanctions in a manner that avoids 

17 any adverse humanitarian impact on the people of 

18 North Korea. 

19 SEC. 102. INVESTIGATIONS. 

20 The President shall initiate an investigation into the 

21 possible designation of a person under section 104(a) upon 

22 receipt by the President of credible information indicating 

23 that such person has engaged in conduct described in section 

24 104(a). 


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1 SEC. 103. BRIEFING TO CONGRESS. 

2 Not later than 180 days after the date of the enactment 

3 of this Act, and periodically thereafter, the President shall 

4 provide to the appropriate congressional committees a brief5 ing on efforts to implement this Act, to include the fol6 lowing, to the extent the information is available: 

7 (1) The principal foreign assets and sources of 

8 foreign income of the Government of North Korea. 

9 (2) A list of the persons designated under sub10 sections (a) and (b) of section 104. 

11 (3) A list of the persons with respect to which 

12 sanctions were waived or removed under section 207. 

13 (4) A summary of any diplomatic efforts made 

14 in accordance with section 202(b) and of the progress 

15 realized from such efforts, including efforts to encour16 age the European Union and other states and juris17 dictions to sanction and block the assets of the For18 eign Trade Bank of North Korea and Daedong Credit 

19 Bank. 

20 SEC. 104. PROHIBITED CONDUCT AND MANDATORY AND 

21 DISCRETIONARY DESIGNATION AND SANC22 TIONS AUTHORITIES. 

23 (a) PROHIBITED CONDUCT AND MANDATORY DESIGNA24 TION AND SANCTIONS AUTHORITY.— 

25 (1) CONDUCT DESCRIBED.—Except as provided 

26 in section 207, the President shall designate under 


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1 this subsection any person the President determines 

2 to— 

3 (A) have knowingly engaged in significant 

4 activities or transactions with the Government of 

5 North Korea that have materially contributed to 

6 the proliferation of weapons of mass destruction 

7 or their means of delivery (including missiles ca8 pable of delivering such weapons), including any 

9 efforts to manufacture, acquire, possess, develop, 

10 transport, transfer or use such items, by any 

11 person or foreign country; 

12 (B) have knowingly imported, exported, or 

13 reexported to, into, or from North Korea any 

14 arms or related materiel, whether directly or in15 directly; 

16 (C) have knowingly provided significant 

17 training, advice, or other services or assistance, 

18 or engaged in transactions, related to the manu19 facture, maintenance, or use of any arms or re20 lated materiel to be imported, exported, or reex21 ported to, into, or from North Korea, or fol22 lowing their importation, exportation, or re23 exportation to, into, or from North Korea, wheth24 er directly or indirectly; 


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1 (D) have knowingly, directly or indirectly, 

2 imported, exported, or reexported significant lux3 ury goods to or into North Korea; 

4 (E) have knowingly engaged in or been re5 sponsible for censorship by the Government of 

6 North Korea, including prohibiting, limiting, or 

7 penalizing the exercise of freedom of expression 

8 or assembly, limiting access to print or broad9 cast media, or the facilitation or support of in10 tentional frequency manipulation that would 

11 jam or restrict an international signal; 

12 (F) have knowingly engaged in or been re13 sponsible for serious human rights abuses by the 

14 Government of North Korea, including torture or 

15 cruel, inhuman, or degrading treatment or pun16 ishment, prolonged detention without charges 

17 and trial, causing the disappearance of persons 

18 by the abduction and clandestine detention of 

19 those persons, and other denial of the right to 

20 life, liberty, or the security of a person; 

21 (G) have knowingly, directly or indirectly, 

22 engaged in significant acts of money laundering, 

23 the counterfeiting of goods or currency, bulk cash 

24 smuggling, narcotics trafficking, or other illicit 

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1 ment of North Korea or any senior official there2 of, whether directly or indirectly; or 

3 (H) have knowingly attempted to engage in 

4 any of the conduct described in subparagraphs 

5 (A) through (G) of this paragraph. 

6 (2) EFFECT OF DESIGNATION.—With respect to 

7 any person designated under this subsection, the 

8 President— 

9 (A) shall exercise the authorities of the 

10 International Emergency Economic Powers Act 

11 (50 U.S.C. 1705 et seq.) without regard to sec12 tion 202 of such Act to block all property and 

13 interests in property of any person designated 

14 under this subsection that are in the United 

15 States, that hereafter come within the United 

16 States, or that are or hereafter come within the 

17 possession or control of any United States per18 son, including any overseas branch; and 

19 (B) may apply any of the sanctions de20 scribed in section 204. 

21 (3) PENALTIES.—The penalties provided for in 

22 section 206 of the International Emergency Economic 

23 Powers Act (50 U.S.C. 1705) shall apply to a person 

24 who violates, attempts to violate, conspires to violate, 

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1 section, or of an order or regulation prescribed under 

2 this Act, to the same extent that such penalties apply 

3 to a person that commits an unlawful act described 

4 in section 206(a) of that Act (50 U.S.C. 1705(a)). 

5 (b) DISCRETIONARY DESIGNATION AND SANCTIONS

6 AUTHORITY.— 

7 (1) CONDUCT DESCRIBED.—Except as provided 

8 in section 207, the President may designate under 

9 this subsection any person the President determines 

10 to— 

11 (A) have knowingly engaged in, contributed 

12 to, assisted, sponsored, or provided financial, 

13 material or technological support for, or goods 

14 and services in support of, any violation of, or 

15 evasion of, an applicable United Nations Secu16 rity Council resolution; 

17 (B) have knowingly facilitated the transfer 

18 of any funds, financial assets, or economic re19 sources of, or property or interests in property of 

20 a person designated under an applicable Execu21 tive order, or by the United Nations Security 

22 Council pursuant to an applicable United Na23 tions Security Council resolution; 

24 (C) have knowingly facilitated the transfer 

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1 sources, or any property or interests in property 

2 derived from, involved in, or that has materially 

3 contributed to conduct prohibited by an applica4 ble United Nations Security Council resolution; 

5 (D) have knowingly facilitated any trans6 action that contributes materially to a violation 

7 of an applicable United Nations Security Coun8 cil resolution; 

9 (E) have knowingly facilitated any trans10 actions in cash or monetary instruments or other 

11 stores of value, including through cash couriers 

12 transiting to or from North Korea, used to facili13 tate any conduct prohibited by an applicable 

14 United Nations Security Council resolution; 

15 (F) have knowingly contributed to the brib16 ery of an official of the Government of North 

17 Korea, the misappropriation, theft, or embezzle18 ment of public funds by, or for the benefit of, an 

19 official of the Government of North Korea, or the 

20 use of any proceeds of any such conduct; or 

21 (G) have knowingly and materially assisted, 

22 sponsored, or provided financial, material, or 

23 technological support for, or goods or services to 

24 or in support of, the conduct described in sub25 paragraphs (A) through (F) of this paragraph or 


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1 the conduct described in subparagraphs (A) 

2 through (G) of subsection (a)(1). 

3 (2) EFFECT OF DESIGNATION.—With respect to 

4 any person designated under this subsection, the 

5 President— 

6 (A) may apply the sanctions described in 

7 section 204; 

8 (B) may apply any of the special measures 

9 described in section 5318A of title 31, United 

10 States Code; 

11 (C) may prohibit any transactions in for12 eign exchange that are subject to the jurisdiction 

13 of the United States and in which such person 

14 has any interest; 

15 (D) may prohibit any transfers of credit or 

16 payments between financial institutions or by, 

17 through, or to any financial institution, to the 

18 extent that such transfers or payments are sub19 ject to the jurisdiction of the United States and 

20 involve any interest of the person; and 

21 (E) may exercise the authorities of the 

22 International Emergency Economic Powers Act 

23 (50 U.S.C. 1705 et seq.) without regard to sec24 tion 202 of such Act to block any property and 

25 interests in property of the person that are in the 


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1 United States, that hereafter come within the 

2 United States, or that are or hereafter come 

3 within the possession or control of any United 

4 States person, including any overseas branch. 

5 (c) BLOCKING OF ALL PROPERTY AND INTERESTS IN

6 PROPERTY OF THE GOVERNMENT OF NORTH KOREA.—The 

7 President shall exercise the authorities of the International 

8 Emergency Economic Powers Act (50 U.S.C. 1705 et seq.) 

9 without regard to section 202 of such Act to block all prop10 erty and interests in property of the Government of North 

11 Korea that are in the United States, that hereafter come 

12 within the United States, or that are or hereafter come 

13 within the possession or control of any United States per14 son, including any overseas branch. 

15 (d) APPLICATION.—The designation of a person and 

16 the blocking of property under subsection (a), (b), or (c) 

17 shall also apply with respect to a person who is determined 

18 to be owned or controlled by, or to have acted or purported 

19 to act for or on behalf of, directly or indirectly, any person 

20 whose property and interests in property are blocked pursu21 ant to this section. 

22 (e) TRANSACTION LICENSING.—The President shall 

23 deny or revoke any license for any transaction that, in the 

24 determination of the President, lacks sufficient financial 

25 controls to ensure that such transaction will not facilitate 


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1 any of the conduct described in subsection (a) or subsection 

2 (b). 

3 SEC. 105. FORFEITURE OF PROPERTY. 

4 (a) AMENDMENT TO PROPERTY SUBJECT TO FOR5 FEITURE.—Section 981(a)(1) of title 18, United States 

6 Code, is amended by adding at the end the following new 

7 subparagraph: 

8 ‘‘(I) Any property, real or personal, that is in9 volved in a violation or attempted violation, or which 

10 constitutes or is derived from proceeds traceable to a 

11 violation, of section 104(a) of the North Korea Sanc12 tions Enforcement Act of 2014.’’. 

13 (b) AMENDMENT TO DEFINITION OF CIVIL FOR14 FEITURE STATUTE.—Section 983(i)(2)(D) of title 18, 

15 United States Code, is amended— 

16 (1) by striking ‘‘or the International Emergency 

17 Economic Powers Act’’ and inserting ‘‘, the Inter18 national Emergency Economic Powers Act’’; and 

19 (2) by adding at the end before the semicolon the 

20 following: ‘‘, or the North Korea Sanctions Enforce21 ment Act of 2014’’. 

22 (c) AMENDMENT TO DEFINITION OF SPECIFIED UN23 LAWFUL ACTIVITY.—Section 1956(c)(7)(D) of title 18, 

24 United States Code, is amended— 


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1 (1) by striking ‘‘or section 92 of the Atomic En2 ergy Act of 1954’’ and inserting ‘‘section 92 of the 

3 Atomic Energy Act of 1954’’; and 

4 (2) by adding at the end the following: ‘‘, or sec5 tion 104(a) of the North Korea Sanctions Enforce6 ment Act of 2014’’. 

7 TITLE II—SANCTIONS AGAINST 

8 NORTH KOREAN PROLIFERA9 TION, HUMAN RIGHTS 

10 ABUSES, AND ILLICIT ACTIVI11 TIES 

12 SEC. 201. DETERMINATIONS WITH RESPECT TO NORTH 

13 KOREA AS A JURISDICTION OF PRIMARY 

14 MONEY LAUNDERING CONCERN. 

15 (a) FINDINGS.—Congress makes the following findings: 

16 (1) The Undersecretary of the Treasury for Ter17 rorism and Financial Intelligence, who is responsible 

18 for safeguarding the financial system against illicit 

19 use, money laundering, terrorist financing, and the 

20 proliferation of weapons of mass destruction, has re21 peatedly expressed concern about North Korea’s mis22 use of the international financial system as follows: 

23 (A) In 2006, the Undersecretary stated that, 

24 given North Korea’s ‘‘counterfeiting of U.S. cur25 rency, narcotics trafficking and use of accounts 


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1 worldwide to conduct proliferation-related trans2 actions, the line between illicit and licit North 

3 Korean money is nearly invisible’’ and urged fi4 nancial institutions worldwide to ‘‘think care5 fully about the risks of doing any North Korea6 related business.’’. 

7 (B) In 2011, the Undersecretary stated that 

8 ‘‘North Korea remains intent on engaging in 

9 proliferation, selling arms as well as bringing in 

10 material,’’ and was ‘‘aggressively pursuing the 

11 effort to establish front companies.’’. 

12 (C) In 2013, the Undersecretary stated, in 

13 reference to North Korea’s distribution of high14 quality counterfeit United States currency, that 

15 ‘‘North Korea is continuing to try to pass a 

16 supernote into the international financial sys17 tem,’’ and that the Department of the Treasury 

18 would soon introduce new currency with im19 proved security features to protect against coun20 terfeiting by the Government of North Korea. 

21 (2) The Financial Action Task Force, an inter22 governmental body whose purpose is to develop and 

23 promote national and international policies to com24 bat money laundering and terrorist financing, has re25 peatedly— 


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1 (A) expressed concern at deficiencies in 

2 North Korea’s regimes to combat money laun3 dering and terrorist financing; 

4 (B) urged North Korea to adopt a plan of 

5 action to address significant deficiencies in these 

6 regimes and the serious threat they pose to the 

7 integrity of the international financial system; 

8 (C) urged all jurisdictions to apply counter9 measures to protect the international financial 

10 system from ongoing and substantial money 

11 laundering and terrorist financing risks ema12 nating from North Korea; 

13 (D) urged all jurisdictions to advise their 

14 financial institutions to give special attention to 

15 business relationships and transactions with 

16 North Korea, including North Korean companies 

17 and financial institutions; and 

18 (E) called on all jurisdictions to protect 

19 against correspondent relationships being used to 

20 bypass or evade countermeasures and risk miti21 gation practices, and take into account money 

22 laundering and terrorist financing risks when 

23 considering requests by North Korean financial 

24 institutions to open branches and subsidiaries in 

25 their jurisdiction. 


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1 (3) On March 7, 2013, the United Nations Secu2 rity Council unanimously adopted Resolution 2094, 

3 which— 

4 (A) welcomed the Financial Action Task 

5 Force’s recommendation on financial sanctions 

6 related to proliferation, and its guidance on the 

7 implementation of sanctions; 

8 (B) decided that Member States should 

9 apply enhanced monitoring and other legal 

10 measures to prevent the provision of financial 

11 services or the transfer of property that could 

12 contribute to activities prohibited by applicable 

13 United Nations Security Council resolutions; 

14 and 

15 (C) called on Member States to prohibit 

16 North Korean banks from establishing or main17 taining correspondent relationships with banks 

18 in their jurisdictions, to prevent the provision of 

19 financial services, if they have information that 

20 provides reasonable grounds to believe that these 

21 activities could contribute to activities prohibited 

22 by an applicable United Nations Security Coun23 cil resolution, or to the evasion of such prohibi24 tions. 


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1 (b) SENSE OF CONGRESS REGARDING THE DESIGNA2 TION OF NORTH KOREA AS A JURISDICTION OF PRIMARY

3 MONEY LAUNDERING CONCERN.—Congress— 

4 (1) acknowledges the efforts of the United Na5 tions Security Council to impose limitations on, and 

6 require enhanced monitoring of, transactions involv7 ing North Korean financial institutions that could 

8 contribute to sanctioned activities; 

9 (2) urges the President, in the strongest terms, to 

10 consider immediately designating North Korea as a 

11 jurisdiction of primary money laundering concern, 

12 and to adopt stringent special measures to safeguard 

13 the financial system against the risks posed by North 

14 Korea’s willful evasion of sanctions and its illicit ac15 tivities; and 

16 (3) urges the President to seek the prompt imple17 mentation by other states of enhanced monitoring and 

18 due diligence to prevent North Korea’s misuse of the 

19 international financial system, including by sharing 

20 information about activities, transactions, and prop21 erty that could contribute to activities sanctioned by 

22 applicable United Nations Security Council resolu23 tions, or to the evasion of sanctions. 

24 (c) DETERMINATIONS REGARDING NORTH KOREA.— 


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1 (1) IN GENERAL.—The Secretary of the Treasury 

2 shall, not later than 180 days after the date of the en3 actment of this Act, determine, in consultation with 

4 the Secretary of State and Attorney General, and in 

5 accordance with section 5318A of title 31, United 

6 States Code, whether reasonable grounds exist for con7 cluding that North Korea is a jurisdiction of primary 

8 money laundering concern. 

9 (2) ENHANCED DUE DILIGENCE AND REPORTING

10 REQUIREMENTS.—Except as provided in section 207, 

11 if the Secretary of the Treasury determines under this 

12 subsection that reasonable grounds exist for finding 

13 that North Korea is a jurisdiction of primary money 

14 laundering concern, the Secretary of the Treasury, in 

15 consultation with the Federal functional regulators, 

16 shall impose one or more of the special measures de17 scribed in paragraphs (1) through (5) of section 

18 5318A(b) of title 31, United States Code, with respect 

19 to the jurisdiction of North Korea. 

20 (3) REPORT REQUIRED.— 

21 (A) IN GENERAL.—The Secretary of the 

22 Treasury shall, not later than 180 days after the 

23 enactment of this Act, and for each of the 3 cal24 endar years thereafter, submit to the appropriate 

25 congressional committees a report on the deterVerDate Mar 15 2010 23:23 Jul 28, 2014 Jkt 039200 PO 00000 Frm 00026 Fmt 6652 Sfmt 6203 E:\BILLS\H1771.RH H1771

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1 mination made under paragraph (1) together 

2 with the reasons for that determination. 

3 (B) FORM.—A report or copy of any report 

4 submitted under this paragraph shall be sub5 mitted in unclassified form but may contain a 

6 classified annex. 

7 SEC. 202. ENSURING THE CONSISTENT ENFORCEMENT OF 

8 UNITED NATIONS SECURITY COUNCIL RESO9 LUTIONS AND FINANCIAL RESTRICTIONS ON 

10 NORTH KOREA. 

11 (a) FINDINGS.—Congress finds that— 

12 (1) all states and jurisdictions are obligated to 

13 implement and enforce applicable United Nations Se14 curity Council resolutions fully and promptly, includ15 ing by— 

16 (A) blocking the property of, and ensuring 

17 that any property is prevented from being made 

18 available to, persons designated by the Security 

19 Council under applicable United Nations Secu20 rity Council resolutions; 

21 (B) blocking any property associated with 

22 an activity prohibited by applicable United Na23 tions Security Council resolutions; and 

24 (C) preventing any transfer of property and 

25 any provision of financial services that could 


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1 contribute to an activity prohibited by applica2 ble United Nations Security Council resolutions, 

3 or to the evasion of sanctions under such resolu4 tions; 

5 (2) all states and jurisdictions share a common 

6 interest in protecting the international financial sys7 tem from the risks of money laundering and illicit 

8 transactions emanating from North Korea; 

9 (3) the United States Dollar and the Euro are 

10 the world’s principal reserve currencies, and the 

11 United States and the European Union are primarily 

12 responsible for the protection of the international fi13 nancial system from these risks; 

14 (4) the cooperation of the People’s Republic of 

15 China, as North Korea’s principal trading partner, is 

16 essential to the enforcement of applicable United Na17 tions Security Council resolutions and to the protec18 tion of the international financial system; 

19 (5) the report of the Panel of Experts established 

20 pursuant to United Nations Security Council Resolu21 tion 1874, dated June 11, 2013, expressed concern 

22 about the ability of banks in states with less effective 

23 regulators and those unable to afford effective compli24 ance to detect and prevent illicit transfers involving 

25 North Korea; 


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1 (6) North Korea has historically exploited incon2 sistencies between jurisdictions in the interpretation 

3 and enforcement of financial regulations and applica4 ble United Nations Security Council resolutions to 

5 circumvent sanctions and launder the proceeds of il6 licit activities; 

7 (7) Amroggang Development Bank, Bank of East 

8 Land, and Tanchon Commercial Bank have been des9 ignated by the Secretary of the Treasury, the United 

10 Nations Security Council, and the European Union; 

11 (8) Korea Daesong Bank and Korea Kwangson 

12 Banking Corporation have been designated by the 

13 Secretary of the Treasury and the European Union; 

14 (9) the Foreign Trade Bank of North Korea has 

15 been designated by the Secretary of the Treasury for 

16 facilitating transactions on behalf of persons linked to 

17 its proliferation network, and for serving as ‘‘a key 

18 financial node’’; and 

19 (10) Daedong Credit Bank has been designated 

20 by the Secretary of the Treasury for activities prohib21 ited by applicable United Nations Security Council 

22 resolutions, including the use of deceptive financial 

23 practices to facilitate transactions on behalf of per24 sons linked to North Korea’s proliferation network. 


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1 (b) SENSE OF CONGRESS.—It is the sense of Congress 

2 that the President should intensify diplomatic efforts, both 

3 in appropriate international fora such as the United Na4 tions and bilaterally, to develop and implement a coordi5 nated, consistent, multilateral strategy for protecting the 

6 global financial system against risks emanating from North 

7 Korea, including— 

8 (1) the cessation of any financial services whose 

9 continuation is inconsistent with applicable United 

10 Nations Security Council resolutions; 

11 (2) the cessation of any financial services to per12 sons, including financial institutions, that present 

13 unacceptable risks of facilitating money laundering 

14 and illicit activity by the Government of North 

15 Korea; 

16 (3) the blocking by all states and jurisdictions, 

17 in accordance with the legal process of the state or ju18 risdiction in which the property is held, of any prop19 erty required to be blocked under applicable United 

20 Nations Security Council resolutions; and 

21 (4) the blocking of any property derived from il22 licit activity, or from the misappropriation, theft, or 

23 embezzlement of public funds by, or for the benefit of, 

24 officials of the Government of North Korea. 


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1 SEC. 203. PROLIFERATION PREVENTION SANCTIONS. 

2 (a) EXPORT OF CERTAIN GOODS OR TECHNOLOGY.— 

3 (1) IN GENERAL.—Subject to section 

4 207(a)(2)(C) of this Act, a license shall be required 

5 for the export to North Korea of any goods or tech6 nology subject to the Export Administration Regula7 tions (part 730 of title 15, Code of Federal Regula8 tions) without regard to whether the Secretary of 

9 State has designated North Korea as a country the 

10 government of which has provided support for acts of 

11 international terrorism, as determined by the Sec12 retary of State under section 6(j) of the Export Ad13 ministration Act of 1979 (50 U.S.C. App. 2045), as 

14 continued in effect under the International Emer15 gency Economic Powers Act. 

16 (2) PRESUMPTION OF DENIAL.—A license for the 

17 export to North Korea of any goods or technology as 

18 described in paragraph (1) shall be subject to a pre19 sumption of denial. 

20 (b) TRANSACTIONS WITH COUNTRIES SUPPORTING

21 ACTS OF INTERNATIONAL TERRORISM.—The prohibitions 

22 and restrictions described in section 40 of the Arms Export 

23 Control Act (22 U.S.C. 2780), and other provisions in that 

24 Act, shall also apply to exporting or otherwise providing 

25 (by sale, lease or loan, grant, or other means), directly or 

26 indirectly, any munitions item to the Government of North 


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1 Korea without regard to whether or not North Korea is a 

2 country with respect to which subsection (d) of such section 

3 (relating to designation of state sponsors of terrorism) ap4 plies. 

5 (c) TRANSACTIONS IN LETHAL MILITARY EQUIP6 MENT.— 

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

8 assistance under the Foreign Assistance Act of 1961 

9 (22 U.S.C. 2151 et seq.) to any country that provides 

10 lethal military equipment to, or receives lethal mili11 tary equipment from, the Government of North Korea. 

12 (2) APPLICABILITY.—The prohibition under this 

13 subsection with respect to a country shall terminate 

14 on the date that is 1 year after the date on which 

15 such country ceases to provide lethal military equip16 ment to the Government of North Korea. 

17 (3) WAIVER.—The President may waive the pro18 hibition under this subsection with respect to a coun19 try if the President determines that it is in the na20 tional interest of the United States to do so. 

21 SEC. 204. PROCUREMENT SANCTIONS. 

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

23 the United States Government may not procure, or enter 

24 into any contract for the procurement of, any goods or serv25 ices from any designated person. 


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1 (b) FAR.—The Federal Acquisition Regulation issued 

2 pursuant to section 1303 of title 41, United States Code, 

3 shall be revised to require a certification from each person 

4 that is a prospective contractor that such person does not 

5 engage in any of the conduct described in section 104(a). 

6 Such revision shall apply with respect to contracts in an 

7 amount greater than the simple acquisition threshold (as 

8 defined in section 134 of title 41, United States Code) for 

9 which solicitations are issued on or after the date that is 

10 90 days after the date of the enactment of this Act. 

11 (c) TERMINATION OF CONTRACTS AND INITIATION OF

12 SUSPENSION AND DEBARMENT PROCEEDING.— 

13 (1) TERMINATION OF CONTRACTS.—Except as 

14 provided in paragraph (2), the head of an executive 

15 agency shall terminate a contract with a person who 

16 has provided a false certification under subsection (b). 

17 (2) WAIVER.—The head of an executive agency 

18 may waive the requirement under paragraph (1) with 

19 respect to a person based upon a written finding of 

20 urgent and compelling circumstances significantly af21 fecting the interests of the United States. If the head 

22 of an executive agency waives the requirement under 

23 paragraph (1) for a person, the head of the agency 

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1 port containing the rationale for the waiver and rel2 evant information supporting the waiver decision. 

3 (3) INITIATION OF SUSPENSION AND DEBARMENT

4 PROCEEDING.—The head of an executive agency shall 

5 initiate a suspension and debarment proceeding 

6 against a person who has provided a false certifi7 cation under subsection (b). Upon determination of 

8 suspension, debarment, or proposed debarment, the 

9 agency shall ensure that such person is entered into 

10 the Government-wide database containing the list of 

11 all excluded parties ineligible for Federal programs 

12 pursuant to Executive Order 12549 (31 U.S.C. 6101 

13 note; relating to debarment and suspension) and Ex14 ecutive Order 12689 (31 U.S.C. 6101 note; relating to 

15 debarment and suspension). 

16 (d) CLARIFICATION REGARDING CERTAIN PROD17 UCTS.—The remedies specified in subsections (a) through 

18 (c) shall not apply with respect to the procurement of eligi19 ble products, as defined in section 308(4) of the Trade 

20 Agreements Act of 1979 (19 U.S.C. 2518(4)), of any foreign 

21 country or instrumentality designated under section 301(b) 

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

23 (e) RULE OF CONSTRUCTION.—Nothing in this sub24 section may be construed to limit the use of other remedies 

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


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1 official of the Federal Government on the basis of a deter2 mination of a false certification under subsection (b). 

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

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

5 in section 133 of title 41, United States Code. 

6 SEC. 205. ENHANCED INSPECTIONS AUTHORITIES. 

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

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

9 days thereafter, the President, acting through the Secretary 

10 of Homeland Security, shall provide to the appropriate con11 gressional committees, the Committee on Homeland Secu12 rity of the House of Representatives, and the Committee on 

13 Homeland Security and Governmental Affairs of the Sen14 ate, a briefing identifying foreign sea ports and airports 

15 whose inspections of ships, aircraft, and conveyances origi16 nating in North Korea, carrying North Korean property, 

17 or operated by the Government of North Korea are deficient 

18 to effectively prevent the facilitation of any of the activities 

19 described in section 104(a). 

20 (b) ENHANCED SECURITY TARGETING REQUIRE21 MENTS.—Not later than 180 days after the identification 

22 of any sea port or airport pursuant to subsection (a), the 

23 Secretary of Homeland Security shall promulgate regula24 tions imposing enhanced physical inspection requirements, 

25 as identified by the Automated Targeting System operated 


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1 by the National Targeting Center in U.S. Customs and Bor2 der Protection, on any cargo landed in the United States 

3 that has been transported through such sea port or airport. 

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

5 conveyance used to facilitate any of the activities described 

6 in section 104(a) that comes within the jurisdiction of the 

7 United States may be seized and forfeited under chapter 

8 46 of title 18, United States Code, or under the Tariff Act 

9 of 1930. 

10 SEC. 206. TRAVEL SANCTIONS. 

11 (a) ALIENS INELIGIBLE FOR VISAS, ADMISSION, OR

12 PAROLE.— 

13 (1) VISAS, ADMISSION, OR PAROLE.—An alien 

14 who the Secretary of State or the Secretary of Home15 land Security (or a designee of one of such Secre16 taries) knows, or has reasonable grounds to believe, is 

17 described in subsection (a)(1) or (b)(1) of section 104 

18 is— 

19 (A) inadmissible to the United States; 

20 (B) ineligible to receive a visa or other doc21 umentation to enter the United States; and 

22 (C) otherwise ineligible to be admitted or 

23 paroled into the United States or to receive any 

24 other benefit under the Immigration and Nation25 ality Act (8 U.S.C. 1101 et seq.). 


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1 (2) CURRENT VISAS REVOKED.— 

2 (A) IN GENERAL.—The issuing consular of3 ficer, the Secretary of State, or the Secretary of 

4 Homeland Security (or a designee of one of such 

5 Secretaries) shall revoke any visa or other entry 

6 documentation issued to an alien who is de7 scribed in subsection (a)(1) or (b)(1) of section 

8 104 regardless of when issued. 

9 (B) EFFECT OF REVOCATION.—A revocation 

10 under subparagraph (A)— 

11 (i) shall take effect immediately; and 

12 (ii) shall automatically cancel any 

13 other valid visa or entry documentation 

14 that is in the alien’s possession. 

15 (b) EXCEPTION TO COMPLY WITH UNITED NATIONS

16 HEADQUARTERS AGREEMENT.—Sanctions under sub17 section (a)(1)(B) shall not apply to an alien if admitting 

18 the alien into the United States is necessary to permit the 

19 United States to comply with the Agreement regarding the 

20 Headquarters of the United Nations, signed at Lake Success 

21 June 26, 1947, and entered into force November 21, 1947, 

22 between the United Nations and the United States, or other 

23 applicable international obligations. 


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1 SEC. 207. EXEMPTIONS, WAIVERS, AND REMOVALS OF DES2 IGNATION. 

3 (a) EXEMPTIONS.— 

4 (1) MANDATORY EXEMPTIONS.—The following 

5 activities shall be exempt from sanctions under sec6 tion 104: 

7 (A) Activities subject to the reporting re8 quirements of title V of the National Security 

9 Act of 1947 (50 U.S.C. 413 et seq.), or to any 

10 authorized intelligence activities of the United 

11 States. 

12 (B) Any transaction necessary to comply 

13 with United States obligations under the Agree14 ment between the United Nations and the United 

15 States of America regarding the Headquarters of 

16 the United Nations, signed June 26, 1947, and 

17 entered into force on November 21, 1947, or 

18 under the Vienna Convention on Consular Rela19 tions, signed April 24, 1963, and entered into 

20 force on March 19, 1967, or under other inter21 national agreements. 

22 (2) DISCRETIONARY EXEMPTIONS.—The fol23 lowing activities may be exempt from sanctions under 

24 section 104 as determined by the President: 


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1 (A) Any financial transaction the exclusive 

2 purpose for which is to provide humanitarian 

3 assistance to the people of North Korea. 

4 (B) Any financial transaction the exclusive 

5 purpose for which is to import food products into 

6 North Korea, if such food items are not defined 

7 as luxury goods. 

8 (C) Any transaction the exclusive purpose 

9 for which is to import agricultural products, 

10 medicine, or medical devices into North Korea, 

11 provided that such supplies or equipment are 

12 classified as designated ‘‘EAR 99’’ under the Ex13 port Administration Regulations (part 730 of 

14 title 15, Code of Federal Regulations) and not 

15 controlled under— 

16 (i) the Export Administration Act of 

17 1979 (50 U.S.C. App. 2401 et seq.), as con18 tinued in effect under the International 

19 Emergency Economic Powers Act (50 

20 U.S.C. 1701 et seq.); 

21 (ii) the Arms Export Control Act (22 

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

23 (iii) part B of title VIII of the Nuclear 

24 Proliferation Prevention Act of 1994 (22 

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


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1 (iv) the Chemical and Biological 

2 Weapons Control and Warfare Elimination 

3 Act of 1991 (22 U.S.C. 5601 et seq.). 

4 (b) WAIVER.—The President may waive, on a case-by5 case basis, the imposition of sanctions for a period of not 

6 more than one year, and may renew that waiver for addi7 tional periods of not more than one year, any sanction or 

8 other measure under section 104, 204, 205, 206, or 303 if 

9 the President submits to the appropriate congressional com10 mittees a written determination that the waiver meets one 

11 or more of the following requirements: 

12 (1) The waiver is important to the economic or 

13 national security interests of the United States. 

14 (2) The waiver will further the enforcement of 

15 this Act or is for an important law enforcement pur16 pose. 

17 (3) The waiver is for an important humani18 tarian purpose, including any of the purposes de19 scribed in section 4 of the North Korean Human 

20 Rights Act of 2004 (22 U.S.C. 7802). 

21 (c) REMOVALS OF SANCTIONS.—The President may 

22 prescribe rules and regulations for the removal of sanctions 

23 on a person that is designated under subsection (a) or (b) 

24 of section 104 and the removal of designations of a person 

25 with respect to such sanctions if the President determines 


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1 that the designated person has verifiably ceased its partici2 pation in any of the conduct described in subsection (a) 

3 or (b) of section 104, as the case may be, and has given 

4 assurances that it will abide by the requirements of this 

5 Act. 

6 (d) FINANCIAL SERVICES FOR CERTAIN ACTIVITIES.— 

7 The President may promulgate regulations, rules, and poli8 cies as may be necessary to facilitate the provision of finan9 cial services by a foreign financial institution that is not 

10 controlled by the Government of North Korea in support 

11 of the activities subject to exemption under this section. 

12 SEC. 208. SENSE OF CONGRESS ON ENFORCEMENT OF 

13 SANCTIONS ON NORTH KOREA. 

14 (a) FINDINGS.—Congress finds the following: 

15 (1) On March 6, 2014, pursuant to United Na16 tions Security Council Resolution 1874, a Panel of 

17 Experts issued a report assessing the enforcement of 

18 existing sanctions on North Korea. The Panel re19 ported that North Korea continues to ‘‘trade in arms 

20 and related materiel in violation of the resolutions’’ 

21 and that ‘‘there is no question that it is one of the 

22 country’s most profitable revenue sources’’. 

23 (2) The Panel of Experts found that North Korea 

24 ‘‘presents a stiff challenge to Member States’’ through 

25 ‘‘multiple and tiered circumvention techniques’’ and 


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1 ‘‘is experienced in actions it takes to evade sanc2 tions’’. 

3 (b) SENSE OF CONGRESS.—It is the sense of Congress 

4 that the United States should work to increase the capacity 

5 of responsible nations to implement United Nations Secu6 rity Council Resolutions 1695, 1718, 1874, 2087, and 2094, 

7 including to strengthen the capacity of responsible nations 

8 to monitor and interdict shipments to and from North 

9 Korea that contribute to prohibited activities under such 

10 Resolutions. 

11 TITLE III—PROMOTION OF 

12 HUMAN RIGHTS 

13 SEC. 301. INFORMATION TECHNOLOGY. 

14 Section 104 of the North Korean Human Rights Act 

15 of 2004 (22 U.S.C. 7814) is amended by inserting after sub16 section (c) the following new subsection: 

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

18 than 180 days after the date of the enactment of this sub19 section, the President shall submit to the appropriate con20 gressional committees a classified report setting forth a de21 tailed plan for making unrestricted, unmonitored, and in22 expensive electronic mass communications available to the 

23 people of North Korea.’’. 


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1 SEC. 302. REPORT ON NORTH KOREAN PRISON CAMPS. 

2 (a) IN GENERAL.—The Secretary of State shall submit 

3 to the appropriate congressional committees a report de4 scribing, with respect to each political prison camp in 

5 North Korea to the extent information is available— 

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

7 (2) the camp’s geographical coordinates; 

8 (3) the reasons for confinement of the prisoners; 

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

10 and the end users of any goods produced in such 

11 camp; 

12 (5) the natural persons and agencies responsible 

13 for conditions in the camp; 

14 (6) the conditions under which prisoners are 

15 confined, with respect to the adequacy of food, shelter, 

16 medical care, working conditions, and reports of ill17 treatment of prisoners; and 

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

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

20 compromise the sources and methods used by the in21 telligence agencies of the United States to capture 

22 geospatial imagery. 

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

24 may be included in the first report required to be submitted 

25 to Congress after the date of the enactment of this Act under 

26 sections 116(d) and 502B(b) of the Foreign Assistance Act 


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1 of 1961 (22 U.S.C. 2151n(d) and 2304(b)) (relating to the 

2 annual human rights report). 

3 SEC. 303. REPORT ON PERSONS WHO ARE RESPONSIBLE 

4 FOR SERIOUS HUMAN RIGHTS ABUSES OR 

5 CENSORSHIP IN NORTH KOREA. 

6 (a) IN GENERAL.—The Secretary of State shall submit 

7 to the appropriate congressional committees a report that 

8 contains an identification of each person the Secretary de9 termines to be responsible for serious human rights abuses 

10 or censorship in North Korea and a description of such 

11 abuses or censorship engaged in by such person. 

12 (b) CONSIDERATION.—In preparing the report re13 quired under subsection (a), the Secretary of State shall 

14 give due consideration to the findings of the United Nations 

15 Commission of Inquiry on Human Rights in North Korea, 

16 and shall make specific findings with respect to the respon17 sibility of Kim Jong Un, and of each natural person who 

18 is a member of the National Defense Commission of North 

19 Korea, for serious human rights abuses and censorship. 

20 (c) DESIGNATION OF PERSONS.—The President shall 

21 designate under section 104(a) any person listed in the re22 port required under subsection (a) as responsible for serious 

23 human rights abuses or censorship in North Korea. 

24 (d) SUBMISSION AND FORM.— 


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1 (1) SUBMISSION.—The report required under 

2 subsection (a) shall be submitted not later than 90 

3 days after the date of the enactment of this Act, and 

4 every 180 days thereafter for a period not to exceed 

5 3 years, shall be included in each report required 

6 under sections 116(d) and 502B(b) of the Foreign As7 sistance Act of 1961 (22 U.S.C. 2151n(d) and 

8 2304(b)) (relating to the annual human rights re9 port). 

10 (2) FORM.—The report required under subsection 

11 (a) shall be submitted in unclassified form, but may 

12 include a classified annex. The Secretary of State 

13 shall also publish the unclassified part of the report 

14 on the Department of State’s website. 

15 TITLE IV—GENERAL 

16 AUTHORITIES 

17 SEC. 401. SUSPENSION OF SANCTIONS AND OTHER MEAS18 URES. 

19 (a) IN GENERAL.—Any sanction or other measure re20 quired by title I, II, or III of this Act (or any amendment 

21 made by title I, II, or III of this Act) may be suspended 

22 for up to 365 days upon certification by the President to 

23 the appropriate congressional committees that the Govern24 ment of North Korea has— 


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1 (1) verifiably ceased its counterfeiting of United 

2 States currency, including the surrender or destruc3 tion of specialized materials and equipment used for 

4 or particularly suitable for counterfeiting; 

5 (2) taken significant steps toward financial 

6 transparency to comply with generally accepted pro7 tocols to cease and prevent the laundering of mone8 tary instruments; 

9 (3) taken significant steps toward verification of 

10 its compliance with United Nations Security Council 

11 Resolutions 1695, 1718, 1874, 2087, and 2094; 

12 (4) taken significant steps toward accounting for 

13 and repatriating the citizens of other countries ab14 ducted or unlawfully held captive by the Government 

15 of North Korea or detained in violation of the 1953 

16 Armistice Agreement; 

17 (5) accepted and begun to abide by internation18 ally recognized standards for the distribution and 

19 monitoring of humanitarian aid; 

20 (6) provided credible assurances that it will not 

21 support further acts of international terrorism; 

22 (7) taken significant and verified steps to im23 prove living conditions in its political prison camps; 

24 and 


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1 (8) made significant progress in planning for 

2 unrestricted family reunification meetings, including 

3 for those individuals among the two million strong 

4 Korean-American community who maintain family 

5 ties with relatives in North Korea. 

6 (b) RENEWAL OF SUSPENSION.—The suspension de7 scribed in subsection (a) may be renewed for additional con8 secutive periods of 365 days upon certification by the Presi9 dent to the appropriate congressional committees that the 

10 Government of North Korea has continued to comply with 

11 the conditions described in subsection (a) during the pre12 vious year. 

13 SEC. 402. TERMINATION OF SANCTIONS AND OTHER MEAS14 URES. 

15 Any sanction or other measure required by title I, II, 

16 or III of this Act (or any amendment made by title I, II, 

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

18 the President determines and certifies to the appropriate 

19 congressional committees that the Government of North 

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

21 also— 

22 (1) completely, verifiably, and irreversibly dis23 mantled all of its nuclear, chemical, biological, and 

24 radiological weapons programs, including all proVerDate Mar 15 2010 23:23 Jul 28, 2014 Jkt 039200 PO 00000 Frm 00047 Fmt 6652 Sfmt 6203 E:\BILLS\H1771.RH H1771

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1 grams for the development of systems designed in 

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

3 (2) released all political prisoners, including the 

4 citizens of North Korea detained in North Korea’s po5 litical prison camps; 

6 (3) ceased its censorship of peaceful political ac7 tivity; 

8 (4) taken significant steps toward the establish9 ment of an open, transparent, and representative so10 ciety; 

11 (5) fully accounted for and repatriated all citi12 zens of all nations abducted or unlawfully held cap13 tive by the Government of North Korea or detained in 

14 violation of the 1953 Armistice Agreement; and 

15 (6) agreed with the Financial Action Task Force 

16 on a plan of action to address deficiencies in its anti17 money laundering regime and begun to implement 

18 this plan of action. 

19 SEC. 403. REGULATIONS. 

20 (a) IN GENERAL.—The President is authorized to pro21 mulgate such rules and regulations as may be necessary to 

22 carry out the provisions of this Act (which may include reg23 ulatory exceptions), including under section 205 of the 

24 International Emergency Economic Powers Act (50 U.S.C. 

25 1704). 


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

2 any amendment made by this Act shall be construed to 

3 limit the authority of the President to designate or sanction 

4 persons pursuant to an applicable Executive order or other5 wise pursuant to the International Emergency Economic 

6 Powers Act (50 U.S.C. 1701 et seq.). 

7 SEC. 404. EFFECTIVE DATE. 

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

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

10 date of the enactment of this Act. 


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Union Calendar No. 420 

113TH CONGRESS 

2D SESSION H. R. 1771 

[Report No. 113–560, Part I] 

A BILL 

To improve the enforcement of sanctions against 

purposes. the Government of North Korea, and for other 

JULY 28, 2014 

Reported from the Committee on Foreign Affairs with an 

amendment 

JULY 28, 2014 

The Committees on Ways and Means, the Judiciary, Fito be printed Whole House on the State of the Union and ordered form discharged; committed to the Committee of the nancial Services, and Oversight and Government ReVerDate Mar 15 2010 23:23 Jul 28, 2014 Jkt 039200 PO 00000 Frm 00050 Fmt 6651 Sfmt 6651 E:\BILLS\H1771.RH H1771

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