II 

Calendar No. 263 

115TH CONGRESS 

1ST SESSION S. 1591 

To impose sanctions with respect to the Democratic People’s Republic of 

Korea, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JULY 19, 2017 

Mr. VAN HOLLEN (for himself, Mr. TOOMEY, Mr. CRUZ, Mr. SCOTT, Ms. 

HIRONO, Mr. COTTON, Mr. TESTER, Ms. CORTEZ MASTO, Ms. WARREN, 

Mr. SCHATZ, Mr. KENNEDY, Mr. BROWN, Mr. CASEY, and Mr. CRAPO) 

introduced the following bill; which was read twice and referred to the 

Committee on Banking, Housing, and Urban Affairs 

NOVEMBER 16, 2017 

Reported by Mr. CRAPO, with an amendment 

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

A BILL 

To impose sanctions with respect to the Democratic People’s 

Republic of Korea, and for other purposes. 

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


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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

3 ‘‘Banking Restrictions Involving North Korea (BRINK) 

4 Act of 2017’’. 

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

6 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Findings. 

Sec. 3. Definitions. 

TITLE I—FINANCIAL REQUIREMENTS AND SANCTIONS RELATING 

TO TRANSACTIONS INVOLVING NORTH KOREA 

Sec. 101. Sanctions with respect to financial institutions providing support to 

the Government of North Korea. 

Sec. 102. Expansion of licensing requirements for transactions in North Korean 

covered property. 

Sec. 103. Authorization of imposition of sanctions with respect to the provision 

of specialized financial messaging services to North Korean financial institutions and sanctioned persons. 

Sec. 104. Authorization of imposition of sanctions with respect to governments 

that fail to comply with United Nations Security Council sanctions against North Korea. 

Sec. 105. Grants to conduct research on financial networks and financial methods of the Government of North Korea. 

Sec. 106. Report on use by the Government of North Korea of beneficial ownership rules to access the international financial system. 

Sec. 107. Sense of Congress on identification and blocking of property of North 

Korean officials. 

Sec. 108. Sense of Congress regarding the Kaesong Industrial Complex. 

TITLE II—DIVESTMENT FROM NORTH KOREA 

Sec. 201. Authority of State and local governments to divest from companies 

that invest in North Korea. 

Sec. 202. Safe harbor for changes of investment policies by asset managers. 

Sec. 203. Sense of Congress regarding certain ERISA plan investments. 

Sec. 204. Rule of construction. 

TITLE III—GENERAL AUTHORITIES 

Sec. 301. Rulemaking. 

Sec. 302. Authority to consolidate reports. 

Sec. 303. Rule of construction. 

7 SEC. 2. FINDINGS. 

8 Congress finds the following: 


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1 (1) Since 2006, the United Nations Security 

2 Council has approved 5 resolutions imposing sanc3 tions against North Korea under chapter VII of the 

4 United Nations Charter, which— 

5 (A) prohibit the use, development, and pro6 liferation of weapons of mass destruction by the 

7 Government of North Korea; 

8 (B) prohibit the transfer of arms and re9 lated materiel to or by the Government of 

10 North Korea; 

11 (C) prohibit the transfer of luxury goods to 

12 North Korea; 

13 (D) restrict access by the Government of 

14 North Korea to the financial system and re15 quire due diligence on the part of financial in16 stitutions to prevent the financing of prolifera17 tion involving the Government of North Korea; 

18 (E) restrict North Korean shipping, includ19 ing the reflagging of ships owned or controlled 

20 by the Government of North Korea; 

21 (F) limit the sale by the Government of 

22 North Korea of precious metals, iron, coal, va23 nadium, and rare earth minerals; and 

24 (G) prohibit the transfer to North Korea 

25 of rocket, aviation, or jet fuel. 


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1 (2) The Government of North Korea has 

2 threatened to carry out nuclear attacks against the 

3 United States and South Korea and has sent clan4 destine agents to kidnap or murder the citizens of 

5 foreign countries and murder dissidents in exile. 

6 (3) The Federal Bureau of Investigation has 

7 determined that the Government of North Korea 

8 was responsible for cyberattacks against the United 

9 States and South Korea. 

10 (4) In February 2016, the Director of National 

11 Intelligence reported that the Government of North 

12 Korea is ‘‘committed to developing a long-range, nu13 clear-armed missile that is capable of posing a direct 

14 threat to the United States’’ and some arms control 

15 experts have estimated that the Government of 

16 North Korea may acquire this capability by 2020. 

17 (5) The Government of North Korea tested its 

18 5th and largest nuclear device on September 9, 

19 2016. 

20 (6) The Government of North Korea has in21 creased the pace of its missile testing, including the 

22 test of a submarine-launched ballistic missile, poten23 tially furthering the development of capability to at24 tack the United States with a nuclear weapon. 


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1 (7) Financial transactions and investments that 

2 provide financial resources to the Government of 

3 North Korea, and that fail to incorporate adequate 

4 safeguards against the misuse of those financial re5 sources, pose an undue risk of contributing to— 

6 (A) weapons of mass destruction programs 

7 of that government; and 

8 (B) prohibited imports or exports of arms 

9 and related materiel, services, or technology by 

10 that government. 

11 (8) The strict enforcement of sanctions is es12 sential to the efforts by the international community 

13 to achieve the peaceful, complete, verifiable, and ir14 reversible dismantlement of weapons of mass de15 struction programs of the Government of North 

16 Korea. 

17 SEC. 3. DEFINITIONS. 

18 In this Act: 

19 (1) APPLICABLE EXECUTIVE ORDER; APPLICA20 BLE UNITED NATIONS SECURITY COUNCIL RESOLU21 TION; GOVERNMENT OF NORTH KOREA; NORTH

22 KOREA.—The terms ‘‘applicable Executive order’’, 

23 ‘‘applicable United Nations Security Council resolu24 tion’’, ‘‘Government of North Korea’’, and ‘‘North 

25 Korea’’ have the meanings given those terms in secVerDate Sep 11 2014 22:20 Nov 16, 2017 Jkt 079200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6401 E:\BILLS\S1591.RS S1591

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1 tion 3 of the North Korea Sanctions and Policy En2 hancement Act of 2016 (22 U.S.C. 9202). 

3 (2) APPROPRIATE CONGRESSIONAL COMMIT4 TEES.—The term ‘‘appropriate congressional com5 mittees’’ means— 

6 (A) the Committee on Banking, Housing, 

7 and Urban Affairs and the Committee on For8 eign Relations of the Senate; and 

9 (B) the Committee on Financial Services 

10 and the Committee on Foreign Affairs of the 

11 House of Representatives. 

12 (3) KNOWINGLY.—The term ‘‘knowingly’’, with 

13 respect to conduct, a circumstance, or a result, 

14 means that a person has actual knowledge, or should 

15 have known, of the conduct, the circumstance, or the 

16 result. 

17 (4) NORTH KOREAN COVERED PROPERTY.— 

18 (A) IN GENERAL.—The term ‘‘North Ko19 rean covered property’’ includes any goods, 

20 services, or technology— 

21 (i) that are in North Korea; 

22 (ii) that are made with significant 

23 amounts of North Korean labor, materials, 

24 goods, or technology; 


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1 (iii) in which the Government of 

2 North Korea or a North Korean financial 

3 institution has a significant interest or ex4 ercises significant control; or 

5 (iv) in which a designated person has 

6 a significant interest or exercises signifi7 cant control. 

8 (B) DESIGNATED PERSON.—In this para9 graph, the term designated person means a per10 son who is designated under— 

11 (i) an applicable Executive order; 

12 (ii) an applicable United Nations Se13 curity Council resolution; or 

14 (iii) section 104 of the North Korea 

15 Sanctions and Policy Enhancement Act of 

16 2016 (22 U.S.C. 9204). 

17 (5) NORTH KOREAN FINANCIAL INSTITUTION.— 

18 The term ‘‘North Korean financial institution’’ in19 cludes— 

20 (A) any North Korean financial institution, 

21 as defined in section 3 of the North Korea 

22 Sanctions and Policy Enhancement Act of 2016 

23 (22 U.S.C. 9202); 

24 (B) any financial agency, as defined in sec25 tion 5312 of title 31, United States Code, that 


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1 is owned or controlled by the Government of 

2 North Korea; 

3 (C) any money transmitting business, as 

4 defined in section 5330(d) of title 31, United 

5 States Code, that is owned or controlled by the 

6 Government of North Korea; and 

7 (D) any financial institution that is a joint 

8 venture between any person and the Govern9 ment of North Korea. 

10 (6) SECRETARY.—Unless otherwise specified, 

11 the term ‘‘Secretary’’ means the Secretary of the 

12 Treasury. 

13 (7) UNITED STATES FINANCIAL INSTITUTION.— 

14 The term ‘‘United States financial institution’’ 

15 means a financial institution that— 

16 (A) is a United States person, regardless 

17 of where the person operates; or 

18 (B) operates or does business in the 

19 United States, including by conducting wire 

20 transfers through correspondent banks in the 

21 United States. 

22 (8) UNITED STATES PERSON.—The term 

23 ‘‘United States person’’ means— 

24 (A) a citizen or resident of the United 

25 States or a national of the United States (as 


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1 defined in section 101(a) of the Immigration 

2 and Nationality Act (8 U.S.C. 1101(a))); and 

3 (B) an entity that is organized under the 

4 laws of the United States or any jurisdiction 

5 within the United States, including a foreign 

6 subsidiary of such an entity. 

7 TITLE I—FINANCIAL REQUIRE8 MENTS AND SANCTIONS RE9 LATING TO TRANSACTIONS 

10 INVOLVING NORTH KOREA 

11 SEC. 101. SANCTIONS WITH RESPECT TO FINANCIAL INSTI12 TUTIONS PROVIDING SUPPORT TO THE GOV13 ERNMENT OF NORTH KOREA. 

14 (a) REPORT ON NONCOMPLIANT FINANCIAL INSTI15 TUTIONS.— 

16 (1) IN GENERAL.—Not later than 60 days after 

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

18 days thereafter, the President shall submit to the 

19 appropriate congressional committees and publish in 

20 the Federal Register a report that contains a list of 

21 any financial institutions that the President has 

22 identified as having engaged in, during the one-year 

23 period preceding the submission of the report, the 

24 following conduct: 


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1 (A) Dealing in North Korean covered prop2 erty. 

3 (B) Providing correspondent or interbank 

4 services to one or more North Korean financial 

5 institutions. 

6 (C) Failing to apply enhanced due dili7 gence to prevent North Korean financial insti8 tutions from gaining access to correspondent or 

9 interbank services in the United States or pro10 vided by United States persons. 

11 (D) Knowingly operating or participating 

12 with or on behalf of an offshore United States 

13 dollar clearing system that conducts trans14 actions involving the Government of North 

15 Korea or North Korean covered property. 

16 (E) Conducting or facilitating one or more 

17 significant transactions in North Korean cov18 ered property involving covered goods (as that 

19 term is defined in section 1027.100 of title 31, 

20 Code of Federal Regulations, or any successor 

21 regulation) or the currency of a country other 

22 than the country in which the person is oper23 ating at the time of the transaction. 


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1 (2) FORM OF REPORT.—Each report required 

2 under paragraph (1) shall be submitted in unclassi3 fied form but may contain a classified annex. 

4 (b) IMPOSITION OF SANCTIONS.— 

5 (1) IN GENERAL.—If the President determines 

6 that a financial institution identified under sub7 section (a) has knowingly engaged in conduct de8 scribed in that subsection, the President shall apply 

9 the following sanctions with respect to that financial 

10 institution: 

11 (A) Prohibit the designation of the finan12 cial institution, or the continuation of any prior 

13 designation of the financial institution, as a pri14 mary dealer in United States Government debt 

15 instruments. 

16 (B) Prohibit the financial institution from 

17 serving as agent of the United States Govern18 ment or as a repository for funds of the United 

19 States Government. 

20 (C) One or more of the following: 

21 (i) Prohibit the opening, and prohibit 

22 or impose strict conditions on the main23 taining, in the United States of any cor24 respondent account or payable-through ac25 count by the financial institution if the fiVerDate Sep 11 2014 22:20 Nov 16, 2017 Jkt 079200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6401 E:\BILLS\S1591.RS S1591

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1 nancial institution is a foreign financial in2 stitution. 

3 (ii) Prohibit any transactions in for4 eign exchange that are subject to the juris5 diction of the United States and in which 

6 the financial institution has any interest. 

7 (iii) In accordance with the Inter8 national Emergency Economic Powers Act 

9 (50 U.S.C. 1701 et seq.), block and pro10 hibit all transactions in all property and 

11 interests in property of the financial insti12 tution if such property and interests in 

13 property are in the United States, come 

14 within the United States, or are or come 

15 within the possession or control of a 

16 United States person. 

17 (2) CIVIL PENALTIES.—If the President deter18 mines that a financial institution identified under 

19 subsection (a) that is a United States financial insti20 tution has knowingly engaged in conduct described 

21 in that subsection— 

22 (A) if the financial institution has taken 

23 reasonable steps to prevent a recurrence of con24 duct described in that subsection and is cooperVerDate Sep 11 2014 22:20 Nov 16, 2017 Jkt 079200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6401 E:\BILLS\S1591.RS S1591

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1 ating fully with the efforts of the President to 

2 enforce the provisions of this Act— 

3 (i) unless the financial institution is 

4 described in clause (ii), the President shall 

5 impose a civil penalty not to exceed 

6 $100,000 for each reportable act described 

7 in subparagraphs (A) through (E) of sub8 section (a)(1) that is knowingly conducted; 

9 or 

10 (ii) if the financial institution has not 

11 previously been reported for similar con12 duct under subsection (a), the President 

13 shall issue a cautionary letter to that fi14 nancial institution; or 

15 (B) if the financial institution is not a fi16 nancial institution described in subparagraph 

17 (A), the President shall impose a civil penalty 

18 not to exceed $250,000 for each reportable act 

19 described in subparagraphs (A) through (E) of 

20 subsection (a)(1) that is knowingly conducted. 

21 (c) SUSPENSION FOR LAW ENFORCEMENT PUR22 POSES.—The President may suspend the submission of 

23 the reports described in subsection (a) and the application 

24 of sanctions and penalties described in subsection (b) for 

25 a one-year period if— 


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1 (1) such reporting and application of sanctions 

2 and penalties could compromise an ongoing law en3 forcement investigation or prosecution; or 

4 (2) a criminal prosecution is pending, or a 

5 criminal or civil fine or penalty has been imposed or 

6 conditionally deferred, for the conduct reported pur7 suant to subsection (a). 

8 (d) SUSPENSION AND TERMINATION OF SANCTIONS

9 AND PENALTIES.— 

10 (1) SUSPENSION.—The President may suspend 

11 the application of any sanctions or penalties under 

12 subsection (b) for a period of not more than one 

13 year if the President certifies to the appropriate con14 gressional committees that the Government of North 

15 Korea is taking steps toward— 

16 (A) the verification of its compliance with 

17 applicable United Nations Security Council Res18 olutions; and 

19 (B) fully accounting for and repatriating 

20 United States citizens and permanent residents 

21 (including deceased United States citizens and 

22 permanent residents)— 

23 (i) abducted or unlawfully held captive 

24 by the Government of North Korea; or 


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1 (ii) detained in violation of the Agree2 ment Concerning a Military Armistice in 

3 Korea, signed at Panmunjom July 27, 

4 1953 (commonly referred to as the ‘‘Ko5 rean War Armistice Agreement’’). 

6 (2) RENEWAL OF SUSPENSION.—The President 

7 may renew a suspension described in paragraph (1) 

8 for additional periods of not more than 180 days if 

9 the President certifies to the appropriate congres10 sional committees that the Government of North 

11 Korea continues to take steps as described in para12 graph (1). 

13 (3) TERMINATION OF SANCTIONS.—Subject to 

14 subsection (f), the President may terminate the ap15 plication of any sanctions or penalties under sub16 section (b) if the President certifies that the Govern17 ment of North Korea has made significant progress 

18 towards— 

19 (A) completely, verifiably, and irreversibly 

20 dismantling all of its nuclear, chemical, biologi21 cal, and radiological weapons programs, includ22 ing all programs for the development of systems 

23 designed in whole or in part for the delivery of 

24 such weapons; and 


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1 (B) fully accounting for and repatriating 

2 United States citizens and permanent residents 

3 (including deceased United States citizens and 

4 permanent residents)— 

5 (i) abducted or unlawfully held captive 

6 by the Government of North Korea; or 

7 (ii) detained in violation of the Agree8 ment Concerning a Military Armistice in 

9 Korea, signed at Panmunjom July 27, 

10 1953 (commonly referred to as the ‘‘Ko11 rean War Armistice Agreement’’). 

12 (e) WAIVER.—Subject to subsection (f), the President 

13 may waive the application of sanctions or penalties under 

14 subsection (b) with respect to a financial institution if the 

15 President determines that the waiver is in the national se16 curity interest of the United States. 

17 (f) CONGRESSIONAL REVIEW OF PROPOSED ACTIONS

18 TO WAIVE OR TERMINATE SANCTIONS.— 

19 (1) SUBMISSION TO CONGRESS OF PROPOSED

20 ACTION.— 

21 (A) IN GENERAL.—Notwithstanding any 

22 other provision of law, before taking any action 

23 described in subparagraph (B), the President 

24 shall submit to the appropriate congressional 

25 committees and leadership a report that deVerDate Sep 11 2014 22:20 Nov 16, 2017 Jkt 079200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6401 E:\BILLS\S1591.RS S1591

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1 scribes the proposed action and the reasons for 

2 that action. 

3 (B) ACTIONS DESCRIBED.—An action de4 scribed in this subparagraph is— 

5 (i) an action to suspend, renew a sus6 pension, or terminate under subsection (d) 

7 the application of sanctions or penalties 

8 under subsection (b); or 

9 (ii) with respect to sanctions or pen10 alties under subsection (b) imposed by the 

11 President with respect to a person, an ac12 tion to waive under subsection (e) the ap13 plication of those sanctions or penalties 

14 with respect to that person. 

15 (C) DESCRIPTION OF TYPE OF ACTION.— 

16 Each report submitted under subparagraph (A) 

17 with respect to an action described in subpara18 graph (B) shall include a description of whether 

19 the action— 

20 (i) is not intended to significantly 

21 alter United States foreign policy with re22 gard to North Korea; or 

23 (ii) is intended to significantly alter 

24 United States foreign policy with regard to 

25 North Korea. 


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1 (D) INCLUSION OF ADDITIONAL MAT2 TER.— 

3 (i) IN GENERAL.—Each report sub4 mitted under subparagraph (A) that re5 lates to an action that is intended to sig6 nificantly alter United States foreign policy 

7 with regard to North Korea shall include a 

8 description of— 

9 (I) the significant alteration to 

10 United States foreign policy with re11 gard to North Korea; 

12 (II) the anticipated effect of the 

13 action on the national security inter14 ests of the United States; and 

15 (III) the policy objectives for 

16 which the sanctions affected by the 

17 action were initially imposed. 

18 (ii) REQUESTS FROM BANKING AND

19 FINANCIAL SERVICES COMMITTEES.—The 

20 Committee on Banking, Housing, and 

21 Urban Affairs of the Senate or the Com22 mittee on Financial Services of the House 

23 of Representatives may request the sub24 mission to the Committee of the matter de25 scribed in subclauses (II) and (III) of 


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1 clause (i) with respect to a report sub2 mitted under subparagraph (A) that re3 lates to an action that is not intended to 

4 significantly alter United States foreign 

5 policy with regard to North Korea. 

6 (2) PERIOD FOR REVIEW BY CONGRESS.— 

7 (A) IN GENERAL.—During the period of 

8 30 calendar days beginning on the date on 

9 which the President submits a report under 

10 paragraph (1)(A)— 

11 (i) in the case of a report that relates 

12 to an action that is not intended to signifi13 cantly alter United States foreign policy 

14 with regard to North Korea, the Com15 mittee on Banking, Housing, and Urban 

16 Affairs of the Senate and the Committee 

17 on Financial Services of the House of Rep18 resentatives should, as appropriate, hold 

19 hearings and briefings and otherwise ob20 tain information in order to fully review 

21 the report; and 

22 (ii) in the case of a report that relates 

23 to an action that is intended to signifi24 cantly alter United States foreign policy 

25 with regard to North Korea, the ComVerDate Sep 11 2014 22:20 Nov 16, 2017 Jkt 079200 PO 00000 Frm 00019 Fmt 6652 Sfmt 6401 E:\BILLS\S1591.RS S1591

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1 mittee on Foreign Relations of the Senate 

2 and the Committee on Foreign Affairs of 

3 the House of Representatives should, as 

4 appropriate, hold hearings and briefings 

5 and otherwise obtain information in order 

6 to fully review the report. 

7 (B) EXCEPTION.—The period for congres8 sional review under subparagraph (A) of a re9 port required to be submitted under paragraph 

10 (1)(A) shall be 60 calendar days if the report 

11 is submitted on or after July 10 and on or be12 fore September 7 in any calendar year. 

13 (C) LIMITATION ON ACTIONS DURING INI14 TIAL CONGRESSIONAL REVIEW PERIOD.—Not15 withstanding any other provision of law, during 

16 the period for congressional review provided for 

17 under subparagraph (A) of a report submitted 

18 under paragraph (1)(A) proposing an action de19 scribed in paragraph (1)(B), including any ad20 ditional period for such review as applicable 

21 under the exception provided in subparagraph 

22 (B), the President may not take that action un23 less a joint resolution of approval with respect 

24 to that action is enacted in accordance with 

25 paragraph (3). 


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1 (D) LIMITATION ON ACTIONS DURING

2 PRESIDENTIAL CONSIDERATION OF A JOINT

3 RESOLUTION OF DISAPPROVAL.—Notwith4 standing any other provision of law, if a joint 

5 resolution of disapproval relating to a report 

6 submitted under paragraph (1)(A) proposing an 

7 action described in paragraph (1)(B) passes 

8 both Houses of Congress in accordance with 

9 paragraph (3), the President may not take that 

10 action for a period of 12 calendar days after the 

11 date of passage of the joint resolution of dis12 approval. 

13 (E) LIMITATION ON ACTIONS DURING CON14 GRESSIONAL RECONSIDERATION OF A JOINT

15 RESOLUTION OF DISAPPROVAL.—Notwith16 standing any other provision of law, if a joint 

17 resolution of disapproval relating to a report 

18 submitted under paragraph (1)(A) proposing an 

19 action described in paragraph (1)(B) passes 

20 both Houses of Congress in accordance with 

21 paragraph (3), and the President vetoes the 

22 joint resolution, the President may not take 

23 that action for a period of 10 calendar days 

24 after the date of the President’s veto. 


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1 (F) EFFECT OF ENACTMENT OF A JOINT

2 RESOLUTION OF DISAPPROVAL.—Notwith3 standing any other provision of law, if a joint 

4 resolution of disapproval relating to a report 

5 submitted under paragraph (1)(A) proposing an 

6 action described in paragraph (1)(B) is enacted 

7 in accordance with paragraph (3), the President 

8 may not take that action. 

9 (3) JOINT RESOLUTIONS OF DISAPPROVAL OR

10 APPROVAL.— 

11 (A) JOINT RESOLUTIONS OF DISAPPROVAL

12 OR APPROVAL DEFINED.—In this paragraph: 

13 (i) JOINT RESOLUTION OF AP14 PROVAL.—The term ‘‘joint resolution of 

15 approval’’ means only a joint resolution of 

16 either House of Congress— 

17 (I) the title of which is as fol18 lows: ‘‘A joint resolution approving 

19 the President’s proposal to take an 

20 action relating to the application of 

21 certain sanctions with respect to 

22 North Korea.’’; and 

23 (II) the sole matter after the re24 solving clause of which is the fol25 lowing: ‘‘Congress approves of the acVerDate Sep 11 2014 22:20 Nov 16, 2017 Jkt 079200 PO 00000 Frm 00022 Fmt 6652 Sfmt 6401 E:\BILLS\S1591.RS S1591

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1 tion relating to the application of 

2 sanctions imposed with respect to 

3 North Korea proposed by the Presi4 dent in the report submitted to Con5 gress under section 101(f)(1)(A) of 

6 the Banking Restrictions Involving 

7 North Korea (BRINK) Act of 2017 

8 on lllllll relating to 

9 llllllll.’’, with the first 

10 blank space being filled with the ap11 propriate date and the second blank 

12 space being filled with a short descrip13 tion of the proposed action. 

14 (ii) JOINT RESOLUTION OF DIS15 APPROVAL.—The term ‘‘joint resolution of 

16 disapproval’’ means only a joint resolution 

17 of either House of Congress— 

18 (I) the title of which is as fol19 lows: ‘‘A joint resolution disapproving 

20 the President’s proposal to take an 

21 action relating to the application of 

22 certain sanctions with respect to 

23 North Korea.’’; and 

24 (II) the sole matter after the re25 solving clause of which is the folVerDate Sep 11 2014 22:20 Nov 16, 2017 Jkt 079200 PO 00000 Frm 00023 Fmt 6652 Sfmt 6401 E:\BILLS\S1591.RS S1591

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1 lowing: ‘‘Congress disapproves of the 

2 action relating to the application of 

3 sanctions imposed with respect to 

4 North Korea proposed by the Presi5 dent in the report submitted to Con6 gress under section 101(f)(1)(A) of 

7 the Banking Restrictions Involving 

8 North Korea (BRINK) Act of 2017 

9 on lllllll relating to 

10 llllllll.’’, with the first 

11 blank space being filled with the ap12 propriate date and the second blank 

13 space being filled with a short descrip14 tion of the proposed action. 

15 (B) INTRODUCTION.—During the period of 

16 30 calendar days provided for under paragraph 

17 (2)(A), including any additional period as appli18 cable under the exception provided in paragraph 

19 (2)(B), a joint resolution of approval or joint 

20 resolution of disapproval may be introduced— 

21 (i) in the House of Representatives, 

22 by the majority leader or the minority 

23 leader; and 

24 (ii) in the Senate, by the majority 

25 leader (or the majority leader’s designee) 


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1 or the minority leader (or the minority 

2 leader’s designee). 

3 (C) FLOOR CONSIDERATION IN HOUSE OF

4 REPRESENTATIVES.— 

5 (i) REPORTING AND DISCHARGE.—If 

6 a committee of the House of Representa7 tives to which a joint resolution of approval 

8 or joint resolution of disapproval has been 

9 referred has not reported the joint resolu10 tion within 10 calendar days after the date 

11 of referral, that committee shall be dis12 charged from further consideration of the 

13 joint resolution. 

14 (ii) PROCEEDING TO CONSIDER15 ATION.—Beginning on the third legislative 

16 day after each committee to which a joint 

17 resolution of approval or joint resolution of 

18 disapproval has been referred reports the 

19 joint resolution to the House or has been 

20 discharged from further consideration of 

21 the joint resolution, it shall be in order to 

22 move to proceed to consider the joint reso23 lution in the House. All points of order 

24 against the motion are waived. Such a mo25 tion shall not be in order after the House 


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1 has disposed of a motion to proceed on the 

2 joint resolution. The previous question 

3 shall be considered as ordered on the mo4 tion to its adoption without intervening 

5 motion. The motion shall not be debatable. 

6 A motion to reconsider the vote by which 

7 the motion is disposed of shall not be in 

8 order. 

9 (iii) CONSIDERATION.—The joint reso10 lution of approval or joint resolution of dis11 approval shall be considered as read. All 

12 points of order against the joint resolution 

13 and against its consideration are waived. 

14 The previous question shall be considered 

15 as ordered on the joint resolution to final 

16 passage without intervening motion except 

17 2 hours of debate equally divided and con18 trolled by the sponsor of the joint resolu19 tion (or a designee) and an opponent. A 

20 motion to reconsider the vote on passage of 

21 the joint resolution shall not be in order. 

22 (D) CONSIDERATION IN THE SENATE.— 

23 (i) COMMITTEE REFERRAL.—A joint 

24 resolution of approval or joint resolution of 


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1 disapproval introduced in the Senate shall 

2 be— 

3 (I) referred to the Committee on 

4 Banking, Housing, and Urban Affairs 

5 if the joint resolution relates to a re6 port submitted under paragraph 

7 (1)(A) with respect to an action that 

8 is not intended to significantly alter 

9 United States foreign policy with re10 gard to North Korea; and 

11 (II) referred to the Committee on 

12 Foreign Relations if the joint resolu13 tion relates to a report submitted 

14 under paragraph (1)(A) with respect 

15 to an action that is intended to sig16 nificantly alter United States foreign 

17 policy with respect to North Korea. 

18 (ii) REPORTING AND DISCHARGE.—If 

19 the committee to which a joint resolution 

20 of approval or joint resolution of dis21 approval was referred has not reported the 

22 joint resolution within 10 calendar days 

23 after the date of referral of the joint reso24 lution, that committee shall be discharged 

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1 olution and the joint resolution shall be 

2 placed on the appropriate calendar. 

3 (iii) PROCEEDING TO CONSIDER4 ATION.—Notwithstanding Rule XXII of 

5 the Standing Rules of the Senate, it is in 

6 order at any time after the Committee on 

7 Banking, Housing, and Urban Affairs or 

8 the Committee on Foreign Relations, as 

9 the case may be, reports a joint resolution 

10 of approval or joint resolution of dis11 approval to the Senate or has been dis12 charged from consideration of such a joint 

13 resolution (even though a previous motion 

14 to the same effect has been disagreed to) 

15 to move to proceed to the consideration of 

16 the joint resolution, and all points of order 

17 against the joint resolution (and against 

18 consideration of the joint resolution) are 

19 waived. The motion to proceed is not de20 batable. The motion is not subject to a mo21 tion to postpone. A motion to reconsider 

22 the vote by which the motion is agreed to 

23 or disagreed to shall not be in order. 

24 (iv) RULINGS OF THE CHAIR ON PRO25 CEDURE.—Appeals from the decisions of 


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1 the Chair relating to the application of the 

2 rules of the Senate, as the case may be, to 

3 the procedure relating to a joint resolution 

4 of approval or joint resolution of dis5 approval shall be decided without debate. 

6 (v) CONSIDERATION OF VETO MES7 SAGES.—Debate in the Senate of any veto 

8 message with respect to a joint resolution 

9 of approval or joint resolution of dis10 approval, including all debatable motions 

11 and appeals in connection with the joint 

12 resolution, shall be limited to 10 hours, to 

13 be equally divided between, and controlled 

14 by, the majority leader and the minority 

15 leader or their designees. 

16 (E) RULES RELATING TO SENATE AND

17 HOUSE OF REPRESENTATIVES.— 

18 (i) COORDINATION WITH ACTION BY

19 OTHER HOUSE.—If, before the passage by 

20 one House of a joint resolution of approval 

21 or joint resolution of disapproval of that 

22 House, that House receives an identical 

23 joint resolution from the other House, the 

24 following procedures shall apply: 


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1 (I) The joint resolution of the 

2 other House shall not be referred to a 

3 committee. 

4 (II) With respect to the joint res5 olution of the House receiving the 

6 joint resolution from the other 

7 House— 

8 (aa) the procedure in that 

9 House shall be the same as if no 

10 joint resolution had been received 

11 from the other House; but 

12 (bb) the vote on passage 

13 shall be on the joint resolution of 

14 the other House. 

15 (ii) TREATMENT OF A JOINT RESOLU16 TION OF OTHER HOUSE.—If one House 

17 fails to introduce a joint resolution of ap18 proval or joint resolution of disapproval, a 

19 joint resolution of approval or joint resolu20 tion of disapproval of the other House 

21 shall be entitled to expedited procedures in 

22 that House under this subsection. 

23 (iii) TREATMENT OF HOUSE JOINT

24 RESOLUTION IN SENATE.—If, following 

25 passage of a joint resolution of approval or 


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1 joint resolution of disapproval in the Sen2 ate, the Senate receives an identical joint 

3 resolution from the House of Representa4 tives, that joint resolution shall be placed 

5 on the appropriate Senate calendar. 

6 (iv) APPLICATION TO REVENUE MEAS7 URES.—The provisions of this subpara8 graph shall not apply in the House of Rep9 resentatives to a joint resolution of ap10 proval or joint resolution of disapproval 

11 that is a revenue measure. 

12 (F) RULES OF HOUSE OF REPRESENTA13 TIVES AND SENATE.—This paragraph is en14 acted by Congress— 

15 (i) as an exercise of the rulemaking 

16 power of the Senate and the House of Rep17 resentatives, respectively, and as such is 

18 deemed a part of the rules of each House, 

19 respectively, but applicable only with re20 spect to the procedure to be followed in 

21 that House in the case of a joint resolution 

22 of approval or joint resolution of dis23 approval, and supersedes other rules only 

24 to the extent that it is inconsistent with 

25 such rules; and 


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1 (ii) with full recognition of the con2 stitutional right of either House to change 

3 the rules (so far as relating to the proce4 dure of that House) at any time, in the 

5 same manner, and to the same extent as in 

6 the case of any other rule of that House. 

7 (g) 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 shall brief the appropriate 

10 congressional committees on the status of efforts by the 

11 President to prevent conduct described in subparagraphs 

12 (A) through (E) of subsection (a)(1). 

13 (h) RULE OF CONSTRUCTION.—Nothing in this sec14 tion shall be construed to prohibit any person from, or 

15 authorize or require the imposition of sanctions with re16 spect to any person for, conducting or facilitating any 

17 transaction for the sale or donation of agricultural com18 modities, food, medicine, or medical devices. 

19 (i) APPROPRIATE CONGRESSIONAL COMMITTEES AND

20 LEADERSHIP DEFINED.—In this section, the term ‘‘ap21 propriate congressional committees and leadership’’ 

22 means— 

23 (1) the Committee on Banking, Housing, and 

24 Urban Affairs, the Committee on Foreign Relations, 


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1 and the majority and minority leaders of the Senate; 

2 and 

3 (2) the Committee on Financial Services, the 

4 Committee on Foreign Affairs, and the Speaker, the 

5 majority leader, and the minority leader of the 

6 House of Representatives. 

7 SEC. 102. EXPANSION OF LICENSING REQUIREMENTS FOR 

8 TRANSACTIONS IN NORTH KOREAN COVERED 

9 PROPERTY. 

10 (a) LICENSE REQUIRED.— 

11 (1) IN GENERAL.—Except as provided in para12 graph (2), not later than 180 days after the date of 

13 the enactment of this Act, the President shall pre14 scribe regulations prohibiting any transaction involv15 ing the manufacture, sale, purchase, transfer, im16 port, or export of North Korean covered property by 

17 a United States person or conducted in the United 

18 States. 

19 (2) EXCEPTION.— 

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

21 subparagraph (B), the Secretary may grant li22 censes and permits for the following purposes: 

23 (i) For any purpose covered by an ex24 emption or waiver under section 208 of the 

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1 hancement Act of 2016 (22 U.S.C. 9228), 

2 including humanitarian, diplomatic, con3 sular, law enforcement, and other pur4 poses. 

5 (ii) To import food products into 

6 North Korea if such food products are not 

7 defined as luxury goods. 

8 (iii) To meet an urgent and compel9 ling humanitarian need. 

10 (iv) For activities to promote human 

11 rights in North Korea, the development of 

12 private agriculture and markets in North 

13 Korea, and the free flow of information to, 

14 from, and within North Korea. 

15 (v) To import agricultural products, 

16 medicine, or medical devices into North 

17 Korea if such products, medicine, or de18 vices are classified as designated ‘‘EAR 

19 99’’ under subchapter C of chapter VII of 

20 title 15, Code of Federal Regulations, or 

21 any successor regulations (commonly 

22 known as the ‘‘Export Administration Reg23 ulations’’), and not controlled under— 

24 (I) the Export Administration 

25 Act of 1979 (50 U.S.C. App. 2401 et 


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1 seq.), as continued in effect under the 

2 International Emergency Economic 

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

4 (II) the Arms Export Control Act 

5 (22 U.S.C. 2751 et seq.); 

6 (III) part B of title VIII of the 

7 Nuclear Proliferation Prevention Act 

8 of 1994 (22 U.S.C. 6301 et seq.); or 

9 (IV) the Chemical and Biological 

10 Weapons Control and Warfare Elimi11 nation Act of 1991 (22 U.S.C. 5601 

12 et seq.). 

13 (B) EXCEPTION.—The Secretary may not 

14 grant a license or permit under subparagraph 

15 (A) for an activity described in section 104(a) 

16 of the North Korea Sanctions and Policy En17 hancement Act of 2016 (22 U.S.C. 9214(a)). 

18 (b) PENALTIES.— 

19 (1) IN GENERAL.—A person shall be fined not 

20 more than $5,000,000, imprisoned for not more 

21 than 20 years, or both, if the person knowingly— 

22 (A) engages in a transaction described in 

23 subsection (a)(1), except pursuant to a license 

24 or permit granted under this section or regula25 tions prescribed pursuant to this section; or 


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1 (B) evades a requirement to obtain a li2 cense or permit under this section or a regula3 tions prescribed pursuant to this section. 

4 (2) FORFEITURE OF PROPERTY.—Any property, 

5 real or personal, that is involved in a transaction 

6 that is a violation of subsection (a)(1), is involved in 

7 an attempt to conduct such a transaction, or con8 stitutes or is derived from proceeds traceable to such 

9 a transaction, is subject to forfeiture to the United 

10 States. 

11 (c) REPORT REQUIRED.— 

12 (1) IN GENERAL.—Not later than 180 days 

13 after the date of the enactment of this Act, and an14 nually thereafter, the President shall submit to the 

15 appropriate congressional committees a report listing 

16 any licenses or permits granted under subsection 

17 (a). 

18 (2) FORM.—Each report required under para19 graph (1) shall be submitted in unclassified form but 

20 may include a classified annex. 

21 (3) PUBLIC AVAILABILITY.—Not later than 30 

22 days after the submission of a report under para23 graph (1), the Secretary of the Treasury and the 

24 Secretary of State shall each publish the unclassified 

25 part of the report on a publicly available Internet 


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1 website of the Department of the Treasury and the 

2 Department of State, as the case may be. 

3 (d) TERMINATION OF REQUIREMENTS.—The Presi4 dent may terminate the prohibition on transactions de5 scribed in subsection (a) and the imposition of penalties 

6 under subsection (b) if the President submits to the appro7 priate congressional committees the certification described 

8 in section 402 of the North Korea Sanctions and Policy 

9 Enhancement Act of 2016 (22 U.S.C. 9252). 

10 (e) MODIFICATION OF DEFINITION OF SPECIFIED

11 UNLAWFUL ACTIVITY FOR MONEY LAUNDERING PUR12 POSES.—Section 1956(c)(7)(D) of title 18, United States 

13 Code, is amended— 

14 (1) by striking ‘‘or section 104(a) of’’ and in15 serting ‘‘section 104(a) of’’; and 

16 (2) by inserting before the semicolon at the end 

17 the following: ‘‘, or section 102(b) of the Banking 

18 Restrictions Involving North Korea (BRINK) Act of 

19 2017 (relating to transactions in certain North Ko20 rean property)’’. 


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1 SEC. 103. AUTHORIZATION OF IMPOSITION OF SANCTIONS 

2 WITH RESPECT TO THE PROVISION OF SPE3 CIALIZED FINANCIAL MESSAGING SERVICES 

4 TO NORTH KOREAN FINANCIAL INSTITU5 TIONS AND SANCTIONED PERSONS. 

6 (a) SENSE OF CONGRESS.—It is the sense of Con7 gress that— 

8 (1) providers of specialized financial messaging 

9 services have been used as a critical link between the 

10 Government of North Korea and the international fi11 nancial system; 

12 (2) the Financial Action Task Force has re13 peatedly called for jurisdictions to apply counter14 measures to protect the financial system from the 

15 risks of money laundering and proliferation financ16 ing emanating from North Korea; 

17 (3) credible published reports have implicated 

18 the Government of North Korea in stealing approxi19 mately $81,000,000 from the Bangladesh Bank and 

20 attempting to steal another $951,000,000 from 

21 other banks using a financial messaging service; and 

22 (4) directly providing specialized financial mes23 saging services to, or enabling or facilitating direct 

24 or indirect access to such messaging services for, 

25 any financial institution designated by the United 


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1 Nations Security Council is inconsistent with appli2 cable United Nations Security Council resolutions. 

3 (b) AUTHORIZATION OF IMPOSITION OF SANC4 TIONS.—The President may impose sanctions pursuant to 

5 the International Emergency Economic Powers Act (50 

6 U.S.C. 1701 et seq.) with respect to a person if, on or 

7 after the date that is 90 days after the date of the enact8 ment of this Act, the person knowingly and directly pro9 vides specialized financial messaging services to, or know10 ingly enables or facilitates direct or indirect access to such 

11 messaging services for— 

12 (1) a North Korean financial institution; 

13 (2) a person, including a financial institution, 

14 that is designated pursuant to— 

15 (A) an applicable Executive order; 

16 (B) an applicable United Nations Security 

17 Council resolution; or 

18 (C) section 104 of the North Korea Sanc19 tions and Policy Enhancement Act of 2016 (22 

20 U.S.C. 9214); or 

21 (3) a person subject to sanctions under this 

22 Act. 

23 (c) ENABLING OR FACILITATING ACCESS TO SPE24 CIALIZED FINANCIAL MESSAGING SERVICES.—For pur25 poses of this section, enabling or facilitating direct or indiVerDate Sep 11 2014 22:20 Nov 16, 2017 Jkt 079200 PO 00000 Frm 00039 Fmt 6652 Sfmt 6401 E:\BILLS\S1591.RS S1591

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1 rect access to specialized financial messaging services to 

2 a person described in paragraph (1) or (2) of subsection 

3 (b) includes doing so by serving as an intermediary finan4 cial institution with access to such messaging services. 

5 (d) SUSPENSION AND TERMINATION OF SANC6 TIONS.— 

7 (1) SUSPENSION.—The President may suspend 

8 the application of any sanctions under subsection (b) 

9 for a period of not more than one year if the Presi10 dent certifies to the appropriate congressional com11 mittees that the Government of North Korea is tak12 ing steps toward— 

13 (A) the verification of its compliance with 

14 applicable United Nations Security Council Res15 olutions; and 

16 (B) fully accounting for and repatriating 

17 United States citizens and permanent residents 

18 (including deceased United States citizens and 

19 permanent residents)— 

20 (i) abducted or unlawfully held captive 

21 by the Government of North Korea; or 

22 (ii) detained in violation of the Agree23 ment Concerning a Military Armistice in 

24 Korea, signed at Panmunjom July 27, 


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1 1953 (commonly referred to as the ‘‘Ko2 rean War Armistice Agreement’’). 

3 (2) RENEWAL OF SUSPENSION.—The President 

4 may renew a suspension described in paragraph (1) 

5 for additional periods of not more than 180 days if 

6 the President certifies to the appropriate congres7 sional committees that the Government of North 

8 Korea continues to take steps as described in para9 graph (1). 

10 (3) TERMINATION OF SANCTIONS.—The Presi11 dent may terminate the application of any sanctions 

12 under subsection (b) if the President certifies that 

13 the Government of North Korea has made signifi14 cant progress towards— 

15 (A) completely, verifiably, and irreversibly 

16 dismantling all of its nuclear, chemical, biologi17 cal, and radiological weapons programs, includ18 ing all programs for the development of systems 

19 designed in whole or in part for the delivery of 

20 such weapons; and 

21 (B) fully accounting for and repatriating 

22 United States citizens and permanent residents 

23 (including deceased United States citizens and 

24 permanent residents)— 


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1 (i) abducted or unlawfully held captive 

2 by the Government of North Korea; or 

3 (ii) detained in violation of the Agree4 ment Concerning a Military Armistice in 

5 Korea, signed at Panmunjom July 27, 

6 1953 (commonly referred to as the ‘‘Ko7 rean War Armistice Agreement’’). 

8 SEC. 104. AUTHORIZATION OF IMPOSITION OF SANCTIONS 

9 WITH RESPECT TO GOVERNMENTS THAT FAIL 

10 TO COMPLY WITH UNITED NATIONS SECU11 RITY COUNCIL SANCTIONS AGAINST NORTH 

12 KOREA. 

13 (a) BRIEFING REQUIRED.—Not later than 90 days 

14 after the date of the enactment of this Act, the President 

15 shall brief the appropriate congressional committees re16 garding each government of a foreign country that the 

17 President has identified as failing to— 

18 (1) close the branches, subsidiaries, or rep19 resentative offices of North Korean financial institu20 tions in that country; 

21 (2) expel representatives of North Korean fi22 nancial institutions; 

23 (3) close the representative offices and expel the 

24 representatives of persons designated under applica25 ble United Nations Security Council resolutions; 


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1 (4) prohibit joint ventures with North Korean 

2 financial institutions; 

3 (5) deregister any vessel that constitutes North 

4 Korean covered property; or 

5 (6) expel North Korean nationals, including 

6 diplomats, working on behalf of persons designated 

7 under applicable United Nations Security Council 

8 resolutions. 

9 (b) PUBLICATION.—The Secretary of the Treasury 

10 shall publish in the Federal Register the names of each 

11 foreign country that has failed to carry out the activities 

12 described in paragraphs (1) through (6) of subsection (a). 

13 (c) SANCTIONS AUTHORIZED.—With respect to any 

14 government of a foreign country included in the briefing 

15 under subsection (a), the President may, until such time 

16 as the President determines that the government has 

17 taken substantial steps to terminate conduct described in 

18 that subsection, impose one or more of the following sanc19 tions with respect to that government: 

20 (1) Prohibit or curtail the export of any goods 

21 or technology to that foreign country pursuant to 

22 the authorities provided in section 6 of the Export 

23 Administration Act of 1979 (50 U.S.C. 4605) (as 

24 continued in effect pursuant to the International 


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1 Emergency Economic Powers Act (50 U.S.C. 1701 

2 et seq.)). 

3 (2) Withhold assistance under the Foreign As4 sistance Act of 1961 (22 U.S.C. 2151 et seq.) to 

5 that government. 

6 (3) Instruct the United States executive direc7 tor at each international financial institution (as de8 fined in section 1701(c) of the International Finan9 cial Institutions Act (22 U.S.C. 262r(c))) to use the 

10 voice and vote of the United States to oppose the 

11 provision of loans, benefits, or other use of the funds 

12 of the institution to that government. 

13 (d) RULE OF CONSTRUCTION.—This section shall not 

14 be construed to limit the use of other sanctions authorities 

15 available to the President in response to conduct described 

16 in subsection (a). 

17 SEC. 105. GRANTS TO CONDUCT RESEARCH ON FINANCIAL 

18 NETWORKS AND FINANCIAL METHODS OF 

19 THE GOVERNMENT OF NORTH KOREA. 

20 (a) GRANTS AUTHORIZED.— 

21 (1) IN GENERAL.—The President, acting 

22 through the Attorney General, the Secretary of 

23 State, the Secretary of the Treasury, or the Director 

24 of National Intelligence, may award grants to, and 

25 enter into cooperative agreements with, States, units 


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1 of local government, nongovernmental organizations, 

2 and relevant international organizations to further 

3 the purposes of this title and provide data to address 

4 the issues identified in section 2. 

5 (2) RESEARCH INITIATIVES.—Grants awarded 

6 and cooperative agreements entered into under para7 graph (1) shall include grants and agreements for 

8 the purpose of conducting research initiatives on the 

9 following: 

10 (A) The methods used by the Government 

11 of North Korea to deal in, transact in, or con12 ceal the ownership, control, or origin of North 

13 Korean covered property. 

14 (B) The relationship between proliferation 

15 by the Government of North Korea and the fi16 nancial industry or financial institutions. 

17 (C) The export by any person to the 

18 United States of North Korean covered prop19 erty. 

20 (D) The involvement of any person in 

21 human trafficking involving citizens or nation22 als of North Korea. 

23 (E) Information relating to transactions 

24 described in section 102(a). 


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1 (F) Information relating to activities de2 scribed in section 104(a). 

3 (G) Information relating to the identifica4 tion, blocking, and release of property or pro5 ceeds described in section 107(a). 

6 (H) The effectiveness of law enforcement 

7 and diplomatic initiatives of Federal, State, and 

8 foreign governments to comply with the provi9 sions of applicable United Nations Security 

10 Council resolutions. 

11 (I) The effectiveness of compliance pro12 grams within the financial industry to ensure 

13 compliance with applicable United Nations Se14 curity Council resolutions. 

15 (b) INTERAGENCY COORDINATION.—The President 

16 shall ensure that any information collected pursuant to 

17 subsection (a) is shared among the agencies involved in 

18 investigations described in section 102(b) of the North 

19 Korea Sanctions and Policy Enhancement Act of 2016 (22 

20 U.S.C. 9212). 

21 (c) AUTHORIZATION OF APPROPRIATIONS.—There is 

22 authorized to be appropriated for each of fiscal years 2018 

23 through 2021 such sums as may be necessary to carry 

24 out this section. 


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1 SEC. 106. REPORT ON USE BY THE GOVERNMENT OF 

2 NORTH KOREA OF BENEFICIAL OWNERSHIP 

3 RULES TO ACCESS THE INTERNATIONAL FI4 NANCIAL SYSTEM. 

5 (a) IN GENERAL.—Not later than November 11, 

6 2018, the Director of the Financial Crimes Enforcement 

7 Network of the Department of the Treasury shall submit 

8 to the appropriate congressional committees and publish 

9 in the Federal Register a report setting forth the findings 

10 of the Director regarding how the Government of North 

11 Korea is using laws regarding beneficial ownership of 

12 property to access the international financial system. 

13 (b) ELEMENTS.—The Director shall include in the re14 port required under subsection (a) proposals for such leg15 islative and administrative action as the Director considers 

16 appropriate. 

17 SEC. 107. SENSE OF CONGRESS ON IDENTIFICATION AND 

18 BLOCKING OF PROPERTY OF NORTH KOREAN 

19 OFFICIALS. 

20 (a) IN GENERAL.—It is the sense of Congress that 

21 the President should collaborate with the Stolen Asset Re22 covery Initiative of the World Bank Group and the United 

23 Nations Office on Drugs and Crime to prioritize the iden24 tification, blocking, and release for humanitarian purposes 

25 of— 


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1 (1) any property owned or controlled by a 

2 North Korean official; or 

3 (2) any significant proceeds of kleptocracy by 

4 the Government of North Korea or a North Korean 

5 official. 

6 (b) NORTH KOREAN OFFICIAL DEFINED.—In this 

7 section, the term ‘‘North Korean official’’ includes— 

8 (1) the individuals described in section 

9 304(a)(2)(B) of the North Korea Sanctions and Pol10 icy Enhancement Act of 2016 (22 U.S.C. 

11 9243(a)(2)(B)); and 

12 (2) such additional officials as the President 

13 may determine to be officials of the Government of 

14 North Korea. 

15 SEC. 108. SENSE OF CONGRESS REGARDING THE KAESONG 

16 INDUSTRIAL COMPLEX. 

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

18 (1) On October 14, 2006, the United Nations 

19 Security Council adopted Resolution 1718, para20 graph 8(d) of which requires member states of the 

21 United Nations to ensure that persons under their 

22 jurisdiction prevent any funds, financial assets, and 

23 economic resources from being used by persons or 

24 entities engaged in or proving support for the nu25 clear, chemical, or biological weapons programs of 


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1 North Korea or the ballistic missile programs of 

2 North Korea. 

3 (2) On April 11, 2011, the President signed 

4 Executive Order 13570 (50 U.S.C. 1701 note; relat5 ing to prohibiting certain transactions with respect 

6 to North Korea), which prohibits the importation 

7 into the United States, directly or indirectly, of any 

8 goods, services, or technology from North Korea, ex9 cept as provided in statute or in licenses, regula10 tions, orders, or directives that may be issued pursu11 ant to that Executive order. 

12 (3) In April 2013, the Under Secretary of the 

13 Treasury for Terrorism and Financial Intelligence 

14 said, in reference to the Kaesong Industrial Com15 plex, ‘‘Precisely what North Koreans do with earn16 ings from Kaesong, I think, is something that we 

17 are concerned about.’’. 

18 (4) In February 2016, on announcing the sus19 pension of operations at the Kaesong Industrial 

20 Complex, the Unification Ministry of the Republic of 

21 Korea stated that the Government of North Korea 

22 may have used the proceeds from the Kaesong In23 dustrial Complex to finance its nuclear weapons pro24 gram. 


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1 (5) On November 30, 2016, the United States 

2 Security Council approved Resolution 2321, para3 graph 32 of which requires member states of the 

4 United Nations to prohibit public and private finan5 cial support for trade with North Korea from within 

6 their territories or by persons subject to their juris7 diction, including the granting of export credits, 

8 guarantees, or insurance to persons involved in such 

9 trade, except as approved in advance by a committee 

10 appointed by the Security Council on a case-by-case 

11 basis. 

12 (b) SENSE OF CONGRESS.—It is the sense of Con13 gress that— 

14 (1) the United States stands in solidarity with 

15 its ally in the Republic of Korea, and has expressed 

16 that solidarity with the sacrifice of 36,914 people of 

17 the United States and with the continued presence 

18 of 29,500 members of the Armed Forces of the 

19 United States in the Republic of Korea; 

20 (2) the nuclear weapons program of North 

21 Korea poses a grave and imminent threat to the 

22 freedom and security of both the United States and 

23 the Republic of Korea; 


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1 (3) the Kaesong Industrial Complex yielded 

2 few, if any, apparent benefits with regard to the re3 form, liberalization, or disarmament of North Korea; 

4 (4) the unconditional provision of revenue from 

5 the Kaesong Industrial Complex to the Government 

6 of North Korea undermines the financial pressure 

7 necessary to strict and effective enforcement of 

8 United Nations Security Council sanctions; 

9 (5) the strict and effective enforcement of 

10 United Nations Security Council sanctions is the last 

11 plausible option to achieve the complete, verifiable, 

12 irreversible, and peaceful nuclear disarmament of 

13 North Korea; and 

14 (6) the Kaesong Industrial Complex should not 

15 be reopened until the Government of North Korea 

16 has completely, verifiably, and irreversibly disman17 tled all of its nuclear, chemical, biological, and radio18 logical weapons programs, including all programs for 

19 the development of systems designed in whole or in 

20 part for the delivery of such weapons. 


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1 TITLE II—DIVESTMENT FROM 

2 NORTH KOREA 

3 SEC. 201. AUTHORITY OF STATE AND LOCAL GOVERN4 MENTS TO DIVEST FROM COMPANIES THAT 

5 INVEST IN NORTH KOREA. 

6 (a) SENSE OF CONGRESS.—It is the sense of Con7 gress that the United States should support the decision 

8 of any State or local government, for moral, prudential, 

9 or reputational reasons, to divest from, or prohibit the in10 vestment of assets of the State or local government in, 

11 a person that engages in investment activities involving 

12 North Korean covered property if North Korea is subject 

13 to economic sanctions imposed by the United States or 

14 the United Nations Security Council. 

15 (b) AUTHORITY TO DIVEST.—Notwithstanding any 

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

17 adopt and enforce measures that meet the requirements 

18 of subsection (c) to divest the assets of the State or local 

19 government from, or prohibit investment of the assets of 

20 the State or local government in, any person that the 

21 State or local government determines, using credible infor22 mation available to the public, engages in investment ac23 tivities involving North Korean covered property of a value 

24 of more than $10,000. 


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1 (c) REQUIREMENTS.—Any measure taken by a State 

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

3 following requirements: 

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

5 shall provide written notice to each person with re6 spect to which a measure under this section is to be 

7 applied. 

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

9 section shall apply to a person not earlier than the 

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

11 notice under paragraph (1) is provided to the per12 son. 

13 (3) OPPORTUNITY TO DEMONSTRATE COMPLI14 ANCE.— 

15 (A) IN GENERAL.—The State or local gov16 ernment shall provide to each person with re17 spect to which a measure is to be applied under 

18 this section an opportunity to demonstrate to 

19 the State or local government that the person 

20 does not engage in investment activities in 

21 North Korean covered property. 

22 (B) NONAPPLICATION.—If a person with 

23 respect to which a measure is to be applied 

24 under this section demonstrates to the State or 

25 local government under subparagraph (A) that 


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1 the person does not engage in investment activi2 ties in North Korean covered property, the 

3 measure shall not apply to that person. 

4 (4) SENSE OF CONGRESS ON AVOIDING ERRO5 NEOUS TARGETING.—It is the sense of Congress 

6 that a State or local government should not adopt 

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

8 person unless the State or local government has— 

9 (A) made every effort to avoid erroneously 

10 targeting the person; and 

11 (B) verified that the person engages in in12 vestment activities in North Korean covered 

13 property. 

14 (d) NOTICE TO DEPARTMENT OF JUSTICE.—Not 

15 later than 30 days after a State or local government ap16 plies a measure under this section, the State or local gov17 ernment shall notify the Attorney General of that meas18 ure. 

19 (e) AUTHORIZATION FOR PRIOR APPLIED MEAS20 URES.— 

21 (1) IN GENERAL.—Notwithstanding any other 

22 provision of this section or any other provision of 

23 law, a State or local government may enforce a 

24 measure (without regard to the requirements of sub25 section (c), except as provided in paragraph (2)) apVerDate Sep 11 2014 22:20 Nov 16, 2017 Jkt 079200 PO 00000 Frm 00054 Fmt 6652 Sfmt 6401 E:\BILLS\S1591.RS S1591

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1 plied by the State or local government before the 

2 date of the enactment of this Act that provides for 

3 the divestment of assets of the State or local govern4 ment from, or prohibits the investment of the assets 

5 of the State or local government in, any person that 

6 the State or local government determines, using 

7 credible information available to the public, engages 

8 in investment activities in North Korean covered 

9 property that are identified in that measure. 

10 (2) APPLICATION OF NOTICE REQUIRE11 MENTS.—A measure described in paragraph (1) 

12 shall be subject to the requirements of paragraphs 

13 (1), (2), and (3)(A) of subsection (c) on and after 

14 the date that is two years after the date of the en15 actment of this Act. 

16 (f) NO PREEMPTION.—A measure applied by a State 

17 or local government authorized under subsection (b) or (e) 

18 is not preempted by any Federal law. 

19 (g) DEFINITIONS.—In this section: 

20 (1) ASSET.— 

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

22 subparagraph (B), the term ‘‘asset’’ means 

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1 strument, that is controlled by a State or local 

2 government. 

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

4 not include employee benefit plans covered by 

5 title I of the Employee Retirement Income Se6 curity Act of 1974 (29 U.S.C. 1001 et seq.). 

7 (2) INVESTMENT.—The term ‘‘investment’’ in8 cludes— 

9 (A) a commitment or contribution of funds 

10 or property; 

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

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

13 for goods or services. 

14 (h) EFFECTIVE DATE.— 

15 (1) IN GENERAL.—Except as provided in para16 graph (2) and subsection (e), this section applies to 

17 measures applied by a State or local government be18 fore, on, or after the date of the enactment of this 

19 Act. 

20 (2) NOTICE REQUIREMENTS.—Except as pro21 vided in subsection (h), subsections (c) and (d) apply 

22 to measures applied by a State or local government 

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


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1 SEC. 202. SAFE HARBOR FOR CHANGES OF INVESTMENT 

2 POLICIES BY ASSET MANAGERS. 

3 (a) IN GENERAL.—Section 13(c)(1) of the Invest4 ment Company Act of 1940 (15 U.S.C. 80a–13(c)(1)) is 

5 amended— 

6 (1) in subparagraph (A) by striking ‘‘or’’ at the 

7 end; 

8 (2) in subparagraph (B) by striking the period 

9 and inserting ‘‘; or’’; and 

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

11 ‘‘(C) engage in investment activities involv12 ing North Korean covered property, as defined 

13 in section 3 of the Banking Restrictions Involv14 ing North Korea (BRINK) Act of 2017.’’. 

15 (b) SECURITIES AND EXCHANGE COMMISSION REGU16 LATIONS.—Not later than 120 days after the date of the 

17 enactment of this Act, the Securities and Exchange Com18 mission shall issue any revisions the Securities and Ex19 change Commission determines to be necessary to the reg20 ulations requiring disclosure by each registered investment 

21 company that divests itself of securities in accordance with 

22 section 13(c) of the Investment Company Act of 1940 (15 

23 U.S.C. 80a–13(c)), including in accordance with para24 graph (1)(C) of that section, as added by subsection 

25 (a)(3). 


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1 SEC. 203. SENSE OF CONGRESS REGARDING CERTAIN 

2 ERISA PLAN INVESTMENTS. 

3 It is the sense of Congress that— 

4 (1) a fiduciary of an employee benefit plan, as 

5 defined in section 3(3) of the Employee Retirement 

6 Income Security Act of 1974 (29 U.S.C. 1002(3)), 

7 may divest plan assets from, or avoid investing plan 

8 assets in, any person the fiduciary determines en9 gages in investment activities involving North Ko10 rean covered property, if— 

11 (A) the fiduciary makes that determination 

12 using credible information that is available to 

13 the public; and 

14 (B) the fiduciary prudently determines 

15 that the result of that divestment or avoidance 

16 of investment would not be expected to provide 

17 the employee benefit plan with— 

18 (i) a lower rate of return than alter19 native investments with commensurate de20 grees of risk; or 

21 (ii) a higher degree of risk than alter22 native investments with commensurate 

23 rates of return; and 

24 (2) by divesting assets or avoiding the invest25 ment of assets as described in paragraph (1), the fi26 duciary is not breaching the responsibilities, obligaVerDate Sep 11 2014 22:20 Nov 16, 2017 Jkt 079200 PO 00000 Frm 00058 Fmt 6652 Sfmt 6401 E:\BILLS\S1591.RS S1591

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1 tions, or duties imposed upon the fiduciary by sub2 paragraph (A) or (B) of section 404(a)(1) of the 

3 Employee Retirement Income Security Act of 1974 

4 (29 U.S.C. 1104(a)(1)). 

5 SEC. 204. RULE OF CONSTRUCTION. 

6 Nothing in this Act or any other provision of law au7 thorizing sanctions with respect to North Korea shall be 

8 construed to affect or displace— 

9 (1) the authority of a State or local government 

10 to issue and enforce rules governing the safety, 

11 soundness, and solvency of a financial institution 

12 subject to its jurisdiction; or 

13 (2) the regulation and taxation by the several 

14 States of the business of insurance, pursuant to the 

15 Act of March 9, 1945 (59 Stat. 34, chapter 20; 15 

16 U.S.C. 1011 et seq.) (commonly known as the 

17 ‘‘McCarran-Ferguson Act’’). 

18 TITLE III—GENERAL 

19 AUTHORITIES 

20 SEC. 301. RULEMAKING. 

21 The President may prescribe such rules and regula22 tions as may be necessary to carry out this Act. 

23 SEC. 302. AUTHORITY TO CONSOLIDATE REPORTS. 

24 (a) IN GENERAL.—Any and all reports required to 

25 be submitted to the appropriate congressional committees 


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1 under this Act that are subject to a deadline for submis2 sion consisting of the same unit of time may be consoli3 dated into a single report that is submitted pursuant to 

4 that deadline. 

5 (b) CONTENTS.—Any reports consolidated under sub6 section (a) shall contain all information required under 

7 this Act and any other elements that may be required by 

8 existing law. 

9 SEC. 303. RULE OF CONSTRUCTION. 

10 Nothing in this Act shall be construed to limit the 

11 authority or obligation of the President— 

12 (1) to apply the sanctions described in section 

13 104 of the North Korea Sanctions and Policy En14 hancement Act of 2016 (22 U.S.C. 9214) with re15 gard to persons that meet the criteria for designa16 tion under such section; or 

17 (2) to exercise any other law enforcement au18 thorities available to the President. 

19 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

20 (a) SHORT TITLE.—This Act may be cited as the ‘‘Otto 

21 Warmbier Banking Restrictions Involving North Korea Act 

22 of 2017’’. 

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

24 this Act is as follows: 

Sec. 1. Short title; table of contents. 


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TITLE I—SANCTIONS WITH RESPECT TO NORTH KOREA 

Sec. 101. Findings. 

Sec. 102. Sense of Congress. 

Sec. 103. Definitions. 

Subtitle A—Expansion of Sanctions and Related Matters 

Sec. 111. Sanctions with respect to foreign financial institutions that provide financial services to certain sanctioned persons. 

Sec. 112. Codification of Executive orders relating to sanctions with respect to 

North Korea. 

Sec. 113. Expansion of mandatory designations under North Korea Sanctions 

and Policy Enhancement Act of 2016. 

Sec. 114. Extension of applicability period of proliferation prevention sanctions. 

Sec. 115. Sense of Congress on identification and blocking of property of North 

Korean officials. 

Sec. 116. Modification of report on implementation of United Nations Security 

Council resolutions by other governments. 

Sec. 117. Report on use by the Government of North Korea of beneficial ownership rules to access the international financial system. 

Sec. 118. North Korea strategy. 

Subtitle B—Congressional Review and Oversight 

Sec. 121. Notification of termination or suspension of sanctions. 

Sec. 122. Reports on certain licensing actions. 

Sec. 123. Briefings on implementation and enforcement of sanctions. 

Sec. 124. Report on financial networks and financial methods of the Government 

of North Korea. 

Sec. 125. Report on North Korean cyber capabilities and threats to United States 

economic and security interests. 

Sec. 126. Report on countries of concern with respect to transshipment, reexportation, or diversion of certain items to North Korea. 

Subtitle C—General Matters 

Sec. 131. Rulemaking. 

Sec. 132. Authority to consolidate reports. 

Sec. 133. Waivers, exemptions, and termination. 

Sec. 134. Procedures for review of classified information. 

Sec. 135. Briefing on resourcing of sanctions programs. 

Sec. 136. Briefing on proliferation financing. 

TITLE II—DIVESTMENT FROM NORTH KOREA 

Sec. 201. Authority of State and local governments to divest from companies that 

invest in North Korea. 

Sec. 202. Safe harbor for changes of investment policies by asset managers. 

Sec. 203. Sense of Congress regarding certain ERISA plan investments. 

Sec. 204. Rule of construction. 

TITLE III—FINANCIAL INDUSTRY GUIDANCE TO HALT 

TRAFFICKING 

Sec. 301. Short title. 

Sec. 302. Findings. 

Sec. 303. Sense of Congress. 


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Sec. 304. Coordination of human trafficking issues by the Office of Terrorism and 

Financial Intelligence. 

Sec. 305. Strengthening the role of anti-money laundering and other financial 

tools in combating human trafficking. 

Sec. 306. Sense of Congress on resources to combat human trafficking. 

TITLE IV—DEFENSE PRODUCTION ACT MATTERS 

Sec. 401. Limitation on cancellation of designation of Secretary of the Air Force 

as Department of Defense Executive Agent for a certain Defense 

Production Act program. 

1 TITLE I—SANCTIONS WITH 

2 RESPECT TO NORTH KOREA 

3 SEC. 101. FINDINGS. 

4 Congress finds the following: 

5 (1) Since 2006, the United Nations Security 

6 Council has approved 9 resolutions imposing sanc7 tions against North Korea under chapter VII of the 

8 United Nations Charter, which— 

9 (A) prohibit the use, development, and pro10 liferation of weapons of mass destruction by the 

11 Government of North Korea; 

12 (B) prohibit the transfer of arms and re13 lated materiel to or by the Government of North 

14 Korea; 

15 (C) prohibit the transfer of luxury goods to 

16 North Korea; 

17 (D) restrict access by the Government of 

18 North Korea to the financial system and require 

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1 tions to prevent the financing of proliferation in2 volving the Government of North Korea; 

3 (E) restrict North Korean shipping, includ4 ing the reflagging of ships owned or controlled by 

5 the Government of North Korea; 

6 (F) limit the sale by the Government of 

7 North Korea of precious metals, iron, coal, vana8 dium, and rare earth minerals; 

9 (G) prohibit the transfer to North Korea of 

10 rocket, aviation, or jet fuel; 

11 (H) prohibit new work authorization for 

12 North Korean labors; 

13 (I) prohibit exports of North Korean sea14 food; 

15 (J) prohibit joint ventures or cooperative 

16 commercial entities or expanding joint ventures 

17 with North Korea; 

18 (K) prohibit exports of North Korean tex19 tiles; and 

20 (L) call on member countries of the United 

21 Nations to interdict and inspect vessels suspected 

22 of containing prohibited North Korean cargo. 

23 (2) The Government of North Korea has threat24 ened to carry out nuclear attacks against the United 

25 States, South Korea, and Japan. 


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1 (3) The Federal Bureau of Investigation has de2 termined that the Government of North Korea was re3 sponsible for cyberattacks against entities in the 

4 United States and South Korea. 

5 (4) In May 2017, the Director of National Intel6 ligence found that ‘‘North Korea has also expanded 

7 the size and sophistication of its ballistic missile 

8 forces—from close-range ballistic missiles (CRBMs) to 

9 ICBMs—and continues to conduct test launches. In 

10 2016, North Korea conducted an unprecedented num11 ber of ballistic missile tests. Pyongyang is committed 

12 to developing a long-range, nuclear-armed missile 

13 that is capable of posing a direct threat to the United 

14 States; it has publicly displayed its road-mobile 

15 ICBMs on multiple occasions. We assess that North 

16 Korea has taken steps toward fielding an ICBM but 

17 has not flight-tested it.’’. 

18 (5) The Government of North Korea tested its 

19 sixth and largest nuclear device on September 3, 

20 2017. 

21 (6) The Government of North Korea has in22 creased the pace of its missile testing, including the 

23 test of a submarine-launched ballistic missile, poten24 tially furthering the development of the capability to 

25 attack the United States with a nuclear weapon. 


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1 (7) Financial transactions and investments that 

2 provide financial resources to the Government of 

3 North Korea, and that fail to incorporate adequate 

4 safeguards against the misuse of those financial re5 sources, pose an undue risk of contributing to— 

6 (A) weapons of mass destruction programs 

7 of that Government; and 

8 (B) efforts to evade restrictions required by 

9 the United Nations Security Council on imports 

10 or exports of arms and related materiel, services, 

11 or technology by that Government. 

12 (8) The strict enforcement of sanctions is essen13 tial to the efforts of the international community to 

14 achieve the peaceful, complete, verifiable, and irrevers15 ible dismantlement of weapons of mass destruction 

16 programs of the Government of North Korea. 

17 SEC. 102. SENSE OF CONGRESS. 

18 It is the sense of Congress that— 

19 (1) the United States is committed to working 

20 with its allies and partners to halt the nuclear and 

21 ballistic missile programs of North Korea through a 

22 policy of maximum pressure and diplomatic engage23 ment; 

24 (2) the imposition of sanctions, including those 

25 under this Act, should not be construed to limit the 


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1 authority of the President to fully engage in diplo2 matic negotiations to further the policy objective de3 scribed in paragraph (1); 

4 (3) the successful use of sanctions to halt the nu5 clear and ballistic missile programs of North Korea is 

6 part of a broader diplomatic and economic strategy 

7 that relies on effective coordination among relevant 

8 Federal agencies and officials, as well as with inter9 national partners of the United States; and 

10 (4) the coordination described in paragraph (3) 

11 should include proper vetting of external messaging 

12 and communications from all parts of the Executive 

13 branch to ensure that those communications are an 

14 intentional component of and aligned with the strat15 egy of the United States with respect to North Korea. 

16 SEC. 103. DEFINITIONS. 

17 (a) IN GENERAL.—In this title, the terms ‘‘applicable 

18 Executive order’’, ‘‘applicable United Nations Security 

19 Council resolution’’, ‘‘appropriate congressional commit20 tees’’, ‘‘Government of North Korea’’, ‘‘North Korea’’, and 

21 ‘‘North Korean financial institution’’ have the meanings 

22 given those terms in section 3 of the North Korea Sanctions 

23 and Policy Enhancement Act of 2016 (22 U.S.C. 9202), as 

24 amended by subsection (b). 


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1 (b) AMENDMENTS TO DEFINITIONS IN NORTH KOREA

2 SANCTIONS AND POLICY ENHANCEMENT ACT OF 2016.— 

3 Section 3 of the North Korea Sanctions and Policy En4 hancement Act of 2016 (22 U.S.C. 9202) is amended— 

5 (1) in paragraph (1)(A), in the matter preceding 

6 clause (i), by striking ‘‘Executive Order No. 13694’’ 

7 and all that follows through ‘‘to the extent that’’ and 

8 inserting the following: ‘‘Executive Order 13694 (50 

9 U.S.C. 1701 note; relating to blocking the property of 

10 certain persons engaging in significant malicious 

11 cyber-enabled activities), Executive Order 13722 (50 

12 U.S.C. 1701 note; relating to blocking the property of 

13 the Government of North Korea and the Workers’ 

14 Party of Korea, and prohibiting certain transactions 

15 with respect to North Korea), or Executive Order 

16 13810 (82 Fed. Reg. 44705; relating to imposing ad17 ditional sanctions with respect to North Korea), to the 

18 extent that’’; and 

19 (2) in paragraph (2)(A), by striking ‘‘or 2321 

20 (2016)’’ and inserting ‘‘2321 (2016), 2356 (2017), 

21 2371 (2017), or 2375 (2017)’’. 


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1 Subtitle A—Expansion of Sanctions 

2 and Related Matters 

3 SEC. 111. SANCTIONS WITH RESPECT TO FOREIGN FINAN4 CIAL INSTITUTIONS THAT PROVIDE FINAN5 CIAL SERVICES TO CERTAIN SANCTIONED 

6 PERSONS. 

7 (a) IN GENERAL.—Title II of the North Korea Sanc8 tions and Policy Enhancement Act of 2016 (22 U.S.C. 9221 

9 et seq.) is amended by inserting after the item relating to 

10 section 201A the following: 

11 ‘‘SEC. 201B. SANCTIONS WITH RESPECT TO FOREIGN FINAN12 CIAL INSTITUTIONS THAT PROVIDE FINAN13 CIAL SERVICES TO CERTAIN SANCTIONED 

14 PERSONS. 

15 ‘‘(a) IN GENERAL.—The Secretary of the Treasury 

16 shall impose one or more of the sanctions described in sub17 section (b) with respect to a foreign financial institution 

18 that the Secretary determines, on or after the date that is 

19 90 days after the date of the enactment of the Otto 

20 Warmbier Banking Restrictions Involving North Korea Act 

21 of 2017, knowingly provides significant financial services 

22 to any person designated for the imposition of sanctions 

23 under— 

24 ‘‘(1) subsection (a) or (b) of section 104; 

25 ‘‘(2) an applicable Executive order; or 


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1 ‘‘(3) an applicable United Nations Security 

2 Council resolution. 

3 ‘‘(b) SANCTIONS DESCRIBED.—The sanctions that may 

4 be imposed with respect to a foreign financial institution 

5 subject to subsection (a) are the following: 

6 ‘‘(1) ASSET BLOCKING.—The Secretary may 

7 block and prohibit, pursuant to the International 

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

9 seq.), all transactions in all property and interests in 

10 property of the foreign financial institution if such 

11 property and interests in property are in the United 

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

13 within the possession or control of a United States 

14 person. 

15 ‘‘(2) RESTRICTIONS ON CORRESPONDENT AND

16 PAYABLE-THROUGH ACCOUNTS.—The Secretary may 

17 prohibit, or impose strict conditions on, the opening 

18 or maintaining in the United States of a cor19 respondent account or a payable-through account by 

20 the foreign financial institution. 

21 ‘‘(c) IMPLEMENTATION; PENALTIES.— 

22 ‘‘(1) IMPLEMENTATION.—The President may ex23 ercise all authorities provided under sections 203 and 

24 205 of the International Emergency Economic Powers 


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1 Act (50 U.S.C. 1702 and 1704) to carry out this sec2 tion. 

3 ‘‘(2) PENALTIES.—A person that violates, at4 tempts to violate, conspires to violate, or causes a vio5 lation of this section or any regulation, license, or 

6 order issued to carry out this section shall be subject 

7 to the penalties set forth in subsections (b) and (c) of 

8 section 206 of the International Emergency Economic 

9 Powers Act (50 U.S.C. 1705) to the same extent as a 

10 person that commits an unlawful act described in 

11 subsection (a) of that section. 

12 ‘‘(d) REGULATIONS.—Not later than 120 days after the 

13 date of the enactment of the Otto Warmbier Banking Re14 strictions Involving North Korea Act of 2017, the President 

15 shall, as appropriate, prescribe regulations to carry out this 

16 section. 

17 ‘‘(e) DEFINITIONS.—In this section: 

18 ‘‘(1) ACCOUNT; CORRESPONDENT ACCOUNT; PAY19 ABLE-THROUGH ACCOUNT.—The terms ‘account’, ‘cor20 respondent account’, and ‘payable-through account’ 

21 have the meanings given those terms in section 5318A 

22 of title 31, United States Code. 

23 ‘‘(2) FINANCIAL INSTITUTION.—The term ‘finan24 cial institution’ means a financial institution speci25 fied in subparagraph (A), (B), (C), (D), (E), (F), (G), 


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1 (H), (I), (J), (M), or (Y) of section 5312(a)(2) of title 

2 31, United States Code. 

3 ‘‘(3) FOREIGN FINANCIAL INSTITUTION.—The 

4 term ‘foreign financial institution’ shall have the 

5 meaning of that term as determined by the Secretary 

6 of the Treasury. 

7 ‘‘(4) KNOWINGLY.—The term ‘knowingly’, with 

8 respect to conduct, a circumstance, or a result, means 

9 that a person has actual knowledge, or should have 

10 known, of the conduct, the circumstance, or the re11 sult.’’. 

12 (b) CLERICAL AMENDMENT.—The table of contents for 

13 the North Korea Sanctions and Policy Enhancement Act 

14 of 2016 is amended by inserting after the item relating to 

15 section 201A the following: 

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

16 SEC. 112. CODIFICATION OF EXECUTIVE ORDERS RELATING 

17 TO SANCTIONS WITH RESPECT TO NORTH 

18 KOREA. 

19 (a) IN GENERAL.—Section 210 of the North Korea 

20 Sanctions and Policy Enhancement Act of 2016 (22 U.S.C. 

21 9230) is amended— 

22 (1) by striking ‘‘United States sanctions’’ and 

23 all that follows through ‘‘the date of the enactment of 

24 this Act’’ and inserting ‘‘United States sanctions proVerDate Sep 11 2014 22:20 Nov 16, 2017 Jkt 079200 PO 00000 Frm 00071 Fmt 6652 Sfmt 6203 E:\BILLS\S1591.RS S1591

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1 vided for in Executive Order 13687 (50 U.S.C. 1701 

2 note; relating to imposing additional sanctions with 

3 respect to North Korea), Executive Order 13694 (50 

4 U.S.C. 1701 note; relating to blocking the property of 

5 certain persons engaging in significant malicious 

6 cyber-enabled activities), Executive Order 13722 (50 

7 U.S.C. 1701 note; relating to blocking the property of 

8 the Government of North Korea and the Workers’ 

9 Party of Korea, and prohibiting certain transactions 

10 with respect to North Korea), or Executive Order 

11 13810 (82 Fed. Reg. 44705; relating to imposing ad12 ditional sanctions with respect to North Korea), as 

13 such Executive Orders are in effect on the day before 

14 the date of the enactment of the Otto Warmbier Bank15 ing Restrictions Involving North Korea Act of 2017’’; 

16 (2) by striking ‘‘the Government of North Korea, 

17 persons acting for or on behalf of that Government, 

18 and persons owned or controlled, directly or indi19 rectly, by that Government or persons acting for or 

20 on behalf of that Government,’’ and inserting ‘‘per21 sons subject to such sanctions’’; and 

22 (3) by striking ‘‘and 2094 (2013)’’ and inserting 

23 ‘‘2094 (2013), 2270 (2016), 2321 (2016), 2356 (2017), 

24 2371 (2017), and 2375 (2017)’’. 


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1 (b) CONFORMING AMENDMENT.—Section 210 of the 

2 North Korea Sanctions and Policy Enhancement Act of 

3 2016 (22 U.S.C. 9230) is amended in the section heading 

4 by striking ‘‘SANCTIONS WITH RESPECT TO NORTH

5 KOREAN ACTIVITIES UNDERMINING CYBERSECU6 RITY’’ and inserting ‘‘EXECUTIVE ORDERS RELATING

7 TO SANCTIONS WITH RESPECT TO NORTH KOREA’’. 

8 (c) CLERICAL AMENDMENT.—The table of contents for 

9 the North Korea Sanctions and Policy Enhancement Act 

10 of 2016 is amended by striking the item relating to section 

11 210 and inserting the following: 

‘‘Sec. 210. Codification of Executive orders relating to sanctions with respect to 

North Korea.’’. 

12 SEC. 113. EXPANSION OF MANDATORY DESIGNATIONS 

13 UNDER NORTH KOREA SANCTIONS AND POL14 ICY ENHANCEMENT ACT OF 2016. 

15 (a) IN GENERAL.—Section 104(a) of the North Korea 

16 Sanctions and Policy Enhancement Act of 2016 (22 U.S.C. 

17 9214(a)) is amended— 

18 (1) in paragraph (14), by striking ‘‘or’’ at the 

19 end; 

20 (2) by redesignating paragraph (15) as para21 graph (23); 

22 (3) by inserting after paragraph (14) the fol23 lowing: 


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1 ‘‘(15) knowingly, directly or indirectly, pur2 chased or otherwise acquired from the Government of 

3 North Korea significant quantities of coal, iron, or 

4 iron ore; 

5 ‘‘(16) knowingly, directly or indirectly, provided 

6 to the Government of North Korea coal, iron, or iron 

7 ore; 

8 ‘‘(17) knowingly, directly or indirectly, pur9 chased or otherwise acquired textiles from the Govern10 ment of North Korea; 

11 ‘‘(18) knowingly facilitated a significant transfer 

12 of funds or property of the Government of North 

13 Korea that materially contributes to any violation of 

14 an applicable United Nations Security Council reso15 lution; 

16 ‘‘(19) knowingly, directly or indirectly, pur17 chased or otherwise acquired significant types or 

18 amounts of seafood from North Korea; 

19 ‘‘(20) knowingly, directly or indirectly, engaged 

20 in, facilitated, or was responsible for the exportation 

21 of workers from North Korea in a manner intended 

22 to generate significant revenue, directly or indirectly, 

23 for use by the Government of North Korea or by the 

24 Workers’ Party of Korea; 


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1 ‘‘(21) knowingly, directly or indirectly, sells or 

2 transfers vessels to North Korea, except as specifically 

3 approved by the United Nations Security Council; 

4 ‘‘(22) knowingly contributed to— 

5 ‘‘(A) the bribery of an official of the Govern6 ment of North Korea or any person acting for or 

7 on behalf of that official; 

8 ‘‘(B) the misappropriation, theft, or embez9 zlement of public funds by, or for the benefit of, 

10 an official of the Government of North Korea or 

11 any person acting for or on behalf of that offi12 cial; or 

13 ‘‘(C) the use of any proceeds of any activity 

14 described in subparagraph (A) or (B); or’’; and 

15 (4) in paragraph (23), as redesignated by para16 graph (2), by striking ‘‘through (14)’’ and inserting 

17 ‘‘through (22)’’. 

18 (b) CONFORMING AMENDMENTS.—The North Korea 

19 Sanctions and Policy Enhancement Act of 2016 is amend20 ed— 

21 (1) in section 104(b)(1) (22 U.S.C. 9214(b)(1))— 

22 (A) by striking subparagraphs (B), (D), 

23 (E), (F), and (L); and 

24 (B) by redesignating subparagraphs (C), 

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1 graphs (B), (C), (D), (E), (F), (G), (H), and (I), 

2 respectively; and 

3 (2) in section 302(b)(3) (22 U.S.C. 9241(b)(3)), 

4 by striking ‘‘section 104(b)(1)(M)’’ and inserting ‘‘sec5 tion 104(a)(20)’’. 

6 SEC. 114. EXTENSION OF APPLICABILITY PERIOD OF PRO7 LIFERATION PREVENTION SANCTIONS. 

8 Section 203(b)(2) of the North Korea Sanctions and 

9 Policy Enhancement Act of 2016 (22 U.S.C. 9223(b)(2)) is 

10 amended by striking ‘‘2 years’’ and inserting ‘‘5 years’’. 

11 SEC. 115. SENSE OF CONGRESS ON IDENTIFICATION AND 

12 BLOCKING OF PROPERTY OF NORTH KOREAN 

13 OFFICIALS. 

14 It is the sense of Congress that the President should— 

15 (1) encourage international collaboration 

16 through the Financial Action Task Force and its net17 work of Financial Action Task Force-style regional 

18 bodies to apply best practices in disrupting money 

19 laundering related to kleptocracy and corruption, es20 pecially as it relates to North Korea; and 

21 (2) prioritize multilateral efforts to identify and 

22 block— 

23 (A) any property owned or controlled by a 

24 North Korean official; and 


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1 (B) any significant proceeds of kleptocracy 

2 by the Government of North Korea or a North 

3 Korean official. 

4 SEC. 116. MODIFICATION OF REPORT ON IMPLEMENTATION 

5 OF UNITED NATIONS SECURITY COUNCIL 

6 RESOLUTIONS BY OTHER GOVERNMENTS. 

7 Section 317 of the Korean Interdiction and Moderniza8 tion of Sanctions Act (title III of Public Law 115–44) is 

9 amended— 

10 (1) in subsection (a)— 

11 (A) in paragraph (3), by striking ‘‘; or’’ 

12 and inserting a semicolon; 

13 (B) by redesignating paragraph (4) as 

14 paragraph (8); and 

15 (C) by inserting after paragraph (3) the fol16 lowing: 

17 ‘‘(4) prohibit, in the territories of such countries 

18 or by persons subject to the jurisdiction of such gov19 ernments, the opening of new joint ventures or cooper20 ative entities with North Korean persons or the ex21 pansion of existing joint ventures through additional 

22 investments, whether or not for or on behalf of the 

23 Government of North Korea, unless such joint ven24 tures or cooperative entities have been approved by 

25 the Committee of the United Nations Security Council 


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1 established by United Nations Security Council Reso2 lution 1718 (2006); 

3 ‘‘(5) prohibit the unauthorized clearing of funds 

4 by North Korean financial institutions through finan5 cial institutions subject to the jurisdiction of such 

6 governments; 

7 ‘‘(6) prohibit the unauthorized conduct of com8 mercial trade with North Korea that is prohibited 

9 under applicable United Nations Security Council 

10 resolutions; 

11 ‘‘(7) prevent the provision of financial services to 

12 North Korean persons or the transfer of financial 

13 services to North Korean persons to, through, or from 

14 the territories of such countries or by persons subject 

15 to the jurisdiction of such governments; or’’; and 

16 (2) by amending subsection (c) to read as fol17 lows: 

18 ‘‘(c) DEFINITIONS.—In this section: 

19 ‘‘(1) APPROPRIATE CONGRESSIONAL COMMITTEES

20 AND LEADERSHIP.—The term ‘appropriate congres21 sional committees and leadership’ means— 

22 ‘‘(A) the Committee on Foreign Relations, 

23 the Committee on Banking, Housing, and Urban 

24 Affairs, and the majority and minority leaders 

25 of the Senate; and 


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1 ‘‘(B) the Committee on Foreign Affairs, the 

2 Committee on Financial Services, the Committee 

3 on Ways and Means, and the Speaker, the ma4 jority leader, and the minority leader of the 

5 House of Representatives. 

6 ‘‘(2) APPLICABLE UNITED NATIONS SECURITY

7 COUNCIL RESOLUTION; NORTH KOREAN FINANCIAL IN8 STITUTION; NORTH KOREAN PERSON.—The terms ‘ap9 plicable United Nations Security Council resolution’, 

10 ‘North Korean financial institution’, and ‘North Ko11 rean person’ have the meanings given those terms in 

12 section 3 of the North Korea Sanctions and Policy 

13 Enhancement Act of 2016 (22 U.S.C. 9202).’’. 

14 SEC. 117. REPORT ON USE BY THE GOVERNMENT OF NORTH 

15 KOREA OF BENEFICIAL OWNERSHIP RULES 

16 TO ACCESS THE INTERNATIONAL FINANCIAL 

17 SYSTEM. 

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

19 date of the enactment of this Act, the Secretary of the Treas20 ury shall submit to the appropriate congressional commit21 tees a report setting forth the findings of the Secretary re22 garding how the Government of North Korea is exploiting 

23 laws regarding beneficial ownership of property to access 

24 the international financial system. 


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1 (b) ELEMENTS.—The Secretary shall include in the re2 port required under subsection (a) proposals for such legis3 lative and administrative action as the Secretary considers 

4 appropriate to combat the abuse by the Government of 

5 North Korea of shell companies and other similar entities 

6 to avoid or evade sanctions. 

7 (c) FORM.—The report required by subsection (a) shall 

8 be submitted in unclassified form but may include a classi9 fied annex. 

10 SEC. 118. NORTH KOREA STRATEGY. 

11 (a) REPORT ON STRATEGY REQUIRED.—Not later 

12 than 90 days after the date of the enactment of this Act, 

13 the President shall submit to the appropriate congressional 

14 committees a report that sets forth a strategy of the United 

15 States with respect to North Korea. 

16 (b) ELEMENTS.—The report required by subsection (a) 

17 shall include the following elements: 

18 (1) The desired end state in North Korea and 

19 current United States objectives relative to security, 

20 economic, and illicit finance threats emanating from 

21 North Korea. 

22 (2) A detailed strategy to accomplish the end 

23 state described in paragraph (1). 

24 (3) A description of existing unilateral and mul25 tilateral levers the United States has to exert coercive 


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1 pressure on North Korea, together with an assessment 

2 of the degree to which those levers have been utilized 

3 thus far, the degree to which those actions have im4 posed costs on North Korea, remaining options for in5 creasing those costs, and parameters the President 

6 will use to determine when and to what degree in7 creasing those costs is necessary. 

8 (4) An identification of the resources and au9 thorities necessary to carry out the strategy described 

10 in paragraph (2). 

11 (5) An identification of any capacity and re12 source gaps that would affect the execution of the 

13 strategy described in paragraph (2) and a mitigation 

14 plan to address such gaps. 

15 (6) A description of the economic, political, and 

16 trade relationships between the People’s Republic of 

17 China and North Korea and the Russian Federation 

18 and North Korea, including trends in those relation19 ships and their impact on the Government of North 

20 Korea. 

21 (7) A description of the significant economic, po22 litical, and trade relationships between North Korea 

23 and countries other than the People’s Republic of 

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1 tion of countries that may be undermining United 

2 States objectives identified in paragraph (1). 

3 (8) A description of the channels North Korea is 

4 using to access the United States and international 

5 financial systems and the degree to which those chan6 nels have been targeted by United States and multi7 lateral sanctions thus far. 

8 (9) An assessment of current and desired partner 

9 nation contributions to countering threats from North 

10 Korea and a plan to enhance economic and political 

11 cooperation with nations that have shared security 

12 interests. 

13 (c) FORM.—The report required by subsection (a) shall 

14 be submitted in unclassified form but may include a classi15 fied annex. 

16 (d) UPDATES REQUIRED.—The President shall pro17 vide Congress with regular updates on the implementation 

18 of the strategy required pursuant to subsection (a) in un19 classified form. 

20 Subtitle B—Congressional Review 

21 and Oversight 

22 SEC. 121. NOTIFICATION OF TERMINATION OR SUSPENSION 

23 OF SANCTIONS. 

24 Not less than 15 days before taking any action to ter25 minate or suspend the application of sanctions under this 


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1 title or an amendment made by this title, the President 

2 shall notify the appropriate congressional committees of the 

3 President’s intent to take the action and the reasons for the 

4 action. 

5 SEC. 122. REPORTS ON CERTAIN LICENSING ACTIONS. 

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

7 date of the enactment of this Act, and every 180 days there8 after, the President shall submit to the appropriate congres9 sional committees a report on the operation of the system 

10 for issuing licenses for transactions under covered regu11 latory provisions during the preceding 180-day period that 

12 includes— 

13 (1) the number and types of such licenses applied 

14 for during that period; 

15 (2) the number and types of such licenses issued 

16 during that period; and 

17 (3) a summary of all general and specific li18 censes issued with respect to North Korea. 

19 (b) COVERED REGULATORY PROVISION DEFINED.—In 

20 this section, the term ‘‘covered regulatory provision’’ means 

21 any of the following provisions, as in effect on the day before 

22 the date of the enactment of this Act and as such provisions 

23 relate to North Korea: 

24 (1) Part 743, 744, or 746 of title 15, Code of 

25 Federal Regulations. 


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1 (2) Part 510 of title 31, Code of Federal Regula2 tions. 

3 (3) Any other provision of title 31, Code of Fed4 eral Regulations. 

5 (c) FORM.—Each report required by subsection (a) 

6 shall be submitted in unclassified form but may include a 

7 classified annex. 

8 SEC. 123. BRIEFINGS ON IMPLEMENTATION AND ENFORCE9 MENT OF SANCTIONS. 

10 Not later than 90 days after the date of the enactment 

11 of this Act, and regularly thereafter, the Secretary of the 

12 Treasury shall provide to the appropriate congressional 

13 committees a briefing on efforts relating to the implementa14 tion and enforcement of United States sanctions with re15 spect to North Korea, including appropriate updates on the 

16 efforts of the Department of the Treasury to address compli17 ance with such sanctions by foreign financial institutions. 

18 SEC. 124. REPORT ON FINANCIAL NETWORKS AND FINAN19 CIAL METHODS OF THE GOVERNMENT OF 

20 NORTH KOREA. 

21 (a) REPORT REQUIRED.— 

22 (1) IN GENERAL.—Not later than 180 days after 

23 the date of the enactment of this Act, and annually 

24 thereafter through 2021, the President shall submit to 

25 the appropriate congressional committees a report on 


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1 sources of external support for the Government of 

2 North Korea that includes— 

3 (A) a description of the methods used by the 

4 Government of North Korea to deal in, transact 

5 in, or conceal the ownership, control, or origin of 

6 goods and services exported by North Korea; 

7 (B) an assessment of the relationship be8 tween the proliferation of weapons of mass de9 struction by the Government of North Korea and 

10 the financial industry or financial institutions; 

11 (C) an assessment of the relationship be12 tween the acquisition by the Government of 

13 North Korea of military expertise, equipment, 

14 and technology and the financial industry or fi15 nancial institutions; 

16 (D) a description of the export by any per17 son to the United States of goods, services, or 

18 technology that are made with significant 

19 amounts of North Korean labor, material, or 

20 goods, including minerals, manufacturing, sea21 food, overseas labor, or other exports from North 

22 Korea; 

23 (E) an assessment of the involvement of any 

24 person in human trafficking involving citizens 

25 or nationals of North Korea; 


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1 (F) a description of how the President plans 

2 to address the flow of funds generated by activi3 ties described in subparagraphs (A) through (E), 

4 including through the use of sanctions or other 

5 means; 

6 (G) an assessment of the extent to which the 

7 Government of North Korea engages in criminal 

8 activities, including money laundering, to sup9 port that Government; 

10 (H) information relating to the identifica11 tion, blocking, and release of property described 

12 in section 201B(b)(1) of the North Korea Sanc13 tions and Policy Enhancement Act of 2016, as 

14 added by section 111; 

15 (I) a description of the metrics used to 

16 measure the effectiveness of law enforcement and 

17 diplomatic initiatives of Federal, State, and for18 eign governments to comply with the provisions 

19 of applicable United Nations Security Council 

20 resolutions; and 

21 (J) an assessment of the effectiveness of pro22 grams within the financial industry to ensure 

23 compliance with United States sanctions, appli24 cable United Nations Security Council resolu25 tions, and applicable Executive orders. 


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1 (2) FORM.—Each report required by paragraph 

2 (1) shall be submitted in unclassified form but may 

3 include a classified annex. 

4 (b) INTERAGENCY COORDINATION.—The President 

5 shall ensure that any information collected pursuant to sub6 section (a) is shared among the Federal departments and 

7 agencies involved in investigations described in section 

8 102(b) of the North Korea Sanctions and Policy Enhance9 ment Act of 2016 (22 U.S.C. 9212(b)). 

10 SEC. 125. REPORT ON NORTH KOREAN CYBER CAPABILITIES 

11 AND THREATS TO UNITED STATES ECONOMIC 

12 AND SECURITY INTERESTS. 

13 Section 209(a)(2) of the North Korea Sanctions and 

14 Policy Enhancement Act of 2016 (22 U.S.C. 9229(a)(2)) is 

15 amended— 

16 (1) in subparagraph (C), by striking ‘‘; and’’ 

17 and inserting a semicolon; 

18 (2) by redesignating subparagraph (D) as sub19 paragraph (E); and 

20 (3) by inserting after subparagraph (C) the fol21 lowing: 

22 ‘‘(D) an analysis of the cyber capabilities of 

23 the Government of North Korea, the threat posed 

24 by such capabilities, and the capacity of the 

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1 mine United States economic and security inter2 ests, including the United States financial sys3 tem; and’’. 

4 SEC. 126. REPORT ON COUNTRIES OF CONCERN WITH RE5 SPECT TO TRANSSHIPMENT, REEXPOR6 TATION, OR DIVERSION OF CERTAIN ITEMS 

7 TO NORTH KOREA. 

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

9 date of the enactment of this Act, and annually thereafter 

10 through 2021, the Director of National Intelligence shall 

11 submit to the President, the Secretary of Defense, the Sec12 retary of Commerce, the Secretary of State, the Secretary 

13 of the Treasury, and the appropriate congressional commit14 tees a report that identifies all countries that the Director 

15 determines are of concern with respect to transshipment, re16 exportation, or diversion of items subject to the provisions 

17 of the Export Administration Regulations under subchapter 

18 C of chapter VII of title 15, Code of Federal Regulations, 

19 to an entity owned or controlled by the Government of 

20 North Korea. 

21 (b) FORM.—Each report required by subsection (a) 

22 shall be submitted in unclassified form but may include a 

23 classified annex. 


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1 Subtitle C—General Matters 

2 SEC. 131. RULEMAKING. 

3 The President shall prescribe such rules and regula4 tions as may be necessary to carry out this title and amend5 ments made by this title. 

6 SEC. 132. AUTHORITY TO CONSOLIDATE REPORTS. 

7 (a) IN GENERAL.—Any and all reports required to be 

8 submitted to the appropriate congressional committees 

9 under this title or an amendment made by this title that 

10 are subject to a deadline for submission consisting of the 

11 same unit of time may be consolidated into a single report 

12 that is submitted pursuant to that deadline. 

13 (b) CONTENTS.—Any reports consolidated under sub14 section (a) shall contain all information required under this 

15 title or an amendment made by this title and any other 

16 elements that may be required by existing law. 

17 SEC. 133. WAIVERS, EXEMPTIONS, AND TERMINATION. 

18 (a) APPLICATION AND MODIFICATION OF EXEMPTIONS

19 AND WAIVERS FROM NORTH KOREA SANCTIONS AND POL20 ICY ENHANCEMENT ACT OF 2016.—Section 208 of the North 

21 Korea Sanctions and Policy Enhancement Act of 2016 (22 

22 U.S.C. 9228) is amended— 

23 (1) by inserting ‘‘201B,’’ after ‘‘201A,’’ each 

24 place it appears; and 


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1 (2) in subsection (c), by inserting ‘‘, not less 

2 than 15 days before the waiver takes effect,’’ after ‘‘if 

3 the President’’. 

4 (b) EXCEPTION RELATING TO IMPORTATION OF

5 GOODS.— 

6 (1) IN GENERAL.—No provision affecting sanc7 tions under this title or an amendment made by this 

8 title shall apply to sanctions on the importation of 

9 goods. 

10 (2) GOOD DEFINED.—In this subsection, the term 

11 ‘‘good’’ has the meaning given that term in section 16 

12 of the Export Administration Act of 1979 (50 U.S.C. 

13 4618) (as continued in effect pursuant to the Inter14 national Emergency Economic Powers Act (50 U.S.C. 

15 1701 et seq.)). 

16 (c) SUSPENSION.— 

17 (1) IN GENERAL.—Subject to section 121, any re18 quirement to impose sanctions under this title or the 

19 amendments made by this title, and any sanctions 

20 imposed pursuant to this title or any such amend21 ment, may be suspended for up to one year if the 

22 President makes the certification described in section 

23 401 of the North Korea Sanctions and Policy En24 hancement Act of 2016 (22 U.S.C. 9251) to the appro25 priate congressional committees. 


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1 (2) RENEWAL.—A suspension under paragraph 

2 (1) may be renewed in accordance with section 401(b) 

3 of the North Korea Sanctions and Policy Enhance4 ment Act of 2016 (22 U.S.C. 9251(b)). 

5 (d) TERMINATION.—Subject to section 121, any re6 quirement to impose sanctions under this title or the 

7 amendments made by this title, and any sanctions imposed 

8 pursuant to this title or any such amendment, shall termi9 nate on the date on which the President makes the certifi10 cation described in section 402 of the North Korea Sanc11 tions and Policy Enhancement Act of 2016 (22 U.S.C. 

12 9252). 

13 SEC. 134. PROCEDURES FOR REVIEW OF CLASSIFIED INFOR14 MATION. 

15 (a) IN GENERAL.—If a finding under this title or an 

16 amendment made by this title, a prohibition, condition, or 

17 penalty imposed as a result of any such finding, or a pen18 alty imposed under this title or an amendment made by 

19 this title, is based on classified information (as defined in 

20 section 1(a) of the Classified Information Procedures Act 

21 (18 U.S.C. App.)) and a court reviews the finding or the 

22 imposition of the prohibition, condition, or penalty, the 

23 Secretary of the Treasury may submit such information to 

24 the court ex parte and in camera. 


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

2 shall be construed to confer or imply any right to judicial 

3 review of any finding under this title or an amendment 

4 made by this title, any prohibition, condition, or penalty 

5 imposed as a result of any such finding, or any penalty 

6 imposed under this title or an amendment made by this 

7 title. 

8 SEC. 135. BRIEFING ON RESOURCING OF SANCTIONS PRO9 GRAMS. 

10 Not later than 30 days after the date of the enactment 

11 of this Act, the Secretary of the Treasury shall provide to 

12 the appropriate congressional committees a briefing on— 

13 (1) the resources allocated by the Department of 

14 the Treasury to support each sanctions program ad15 ministered by the Department; and 

16 (2) recommendations for additional authorities 

17 or resources necessary to expand the capacity or capa18 bility of the Department related to implementation 

19 and enforcement of such programs. 

20 SEC. 136. BRIEFING ON PROLIFERATION FINANCING. 

21 (a) IN GENERAL.—Not later than 60 days after the 

22 date of the enactment of this Act, the Secretary of the Treas23 ury shall provide to the appropriate congressional commit24 tees a briefing on addressing proliferation finance. 


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1 (b) ELEMENTS.—The briefing required by subsection 

2 (a) shall include the following: 

3 (1) The Department of the Treasury’s definition 

4 and description of an appropriate risk-based ap5 proach to combating financing of the proliferation of 

6 weapons of mass destruction. 

7 (2) An assessment of— 

8 (A) Federal financial regulatory agency 

9 oversight, including by the Financial Crimes 

10 Enforcement Network, of United States financial 

11 institutions and the adoption by their foreign 

12 subsidiaries, branches, and correspondent insti13 tutions of a risk-based approach to proliferation 

14 financing; and 

15 (B) whether financial institutions in for16 eign jurisdictions known by the United States 

17 intelligence and law enforcement communities to 

18 be jurisdictions through which North Korea 

19 moves substantial sums of licit and illicit fi20 nance are applying a risk-based approach to 

21 proliferation financing, and if that approach is 

22 comparable to the approach required by United 

23 States financial institution supervisors. 

24 (3) A survey of the technical assistance the Office 

25 of Technical Assistance of the Department of the 


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1 Treasury, and other appropriate Executive branch of2 fices, currently provide foreign institutions on imple3 menting counter-proliferation financing best prac4 tices. 

5 (4) An assessment of the ability of foreign sub6 sidiaries, branches, and correspondent institutions of 

7 United States financial institutions to implement a 

8 risk-based approach to proliferation financing. 

9 TITLE II—DIVESTMENT FROM 

10 NORTH KOREA 

11 SEC. 201. AUTHORITY OF STATE AND LOCAL GOVERNMENTS 

12 TO DIVEST FROM COMPANIES THAT INVEST 

13 IN NORTH KOREA. 

14 (a) SENSE OF CONGRESS.—It is the sense of Congress 

15 that the United States should support the decision of any 

16 State or local government made for moral, prudential, or 

17 reputational reasons, to divest from, or prohibit the invest18 ment of assets of the State or local government in, a person 

19 that engages in investment activities described in subsection 

20 (c) if North Korea is subject to economic sanctions imposed 

21 by the United States or the United Nations Security Coun22 cil. 

23 (b) AUTHORITY TO DIVEST.—Notwithstanding any 

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

25 adopt and enforce measures that meet the requirements of 


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1 subsection (d) to divest the assets of the State or local gov2 ernment from, or prohibit investment of the assets of the 

3 State or local government in, any person that the State or 

4 local government determines, using credible information 

5 available to the public, engages in investment activities de6 scribed in subsection (c). 

7 (c) INVESTMENT ACTIVITIES DESCRIBED.—Investment 

8 activities described in this subsection are activities of a 

9 value of more than $10,000 relating to an investment in 

10 North Korea or in goods or services originating in North 

11 Korea that are not conducted pursuant to a license issued 

12 by the Department of the Treasury. 

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

14 or local government under subsection (b) shall meet the fol15 lowing requirements: 

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

17 shall provide written notice to each person with re18 spect to which a measure under this section is to be 

19 applied. 

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

21 section shall apply to a person not earlier than the 

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

23 notice under paragraph (1) is provided to the person. 

24 (3) OPPORTUNITY TO DEMONSTRATE COMPLI25 ANCE.— 


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1 (A) IN GENERAL.—The State or local gov2 ernment shall provide to each person with re3 spect to which a measure is to be applied under 

4 this section an opportunity to demonstrate to the 

5 State or local government that the person does 

6 not engage in investment activities described in 

7 subsection (c). 

8 (B) NONAPPLICATION.—If a person with re9 spect to which a measure is to be applied under 

10 this section demonstrates to the State or local 

11 government under subparagraph (A) that the 

12 person does not engage in investment activities 

13 described in subsection (c), the measure shall not 

14 apply to that person. 

15 (4) SENSE OF CONGRESS ON AVOIDING ERRO16 NEOUS TARGETING.—It is the sense of Congress that 

17 a State or local government should not adopt a meas18 ure under subsection (b) with respect to a person un19 less the State or local government has— 

20 (A) made every effort to avoid erroneously 

21 targeting the person; and 

22 (B) verified that the person engages in in23 vestment activities described in subsection (c). 

24 (e) NOTICE TO DEPARTMENT OF JUSTICE.—Not later 

25 than 30 days before a State or local government applies 


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1 a measure under this section, the State or local government 

2 shall notify the Attorney General of that measure. 

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

5 (1) IN GENERAL.—Notwithstanding any other 

6 provision of this section or any other provision of 

7 law, a State or local government may enforce a meas8 ure (without regard to the requirements of subsection 

9 (d), except as provided in paragraph (2)) applied by 

10 the State or local government before the date of the 

11 enactment of this Act that provides for the divestment 

12 of assets of the State or local government from, or 

13 prohibits the investment of the assets of the State or 

14 local government in, any person that the State or 

15 local government determines, using credible informa16 tion available to the public, engages in investment ac17 tivities described in subsection (c) that are identified 

18 in that measure. 

19 (2) APPLICATION OF NOTICE REQUIREMENTS.—A 

20 measure described in paragraph (1) shall be subject to 

21 the requirements of paragraphs (1), (2), and (3)(A) of 

22 subsection (d) on and after the date that is 2 years 

23 after the date of the enactment of this Act. 


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1 (g) NO PREEMPTION.—A measure applied by a State 

2 or local government that is consistent with subsection (b) 

3 or (f) is not preempted by any Federal law. 

4 (h) DEFINITIONS.—In this section: 

5 (1) ASSET.— 

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

7 subparagraph (B), the term ‘‘asset’’ means public 

8 monies, and includes any pension, retirement, 

9 annuity, endowment fund, or similar instru10 ment, that is controlled by a State or local gov11 ernment. 

12 (B) EXCEPTION.—The term ‘‘asset’’ does not 

13 include employee benefit plans covered by title I 

14 of the Employee Retirement Income Security Act 

15 of 1974 (29 U.S.C. 1001 et seq.). 

16 (2) INVESTMENT.—The term ‘‘investment’’ in17 cludes— 

18 (A) a commitment or contribution of funds 

19 or property; 

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

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

22 for goods or services. 

23 (i) EFFECTIVE DATE.— 

24 (1) IN GENERAL.—Except as provided in para25 graph (2) and subsection (f), this section applies to 


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1 measures applied by a State or local government be2 fore, on, or after the date of the enactment of this Act. 

3 (2) NOTICE REQUIREMENTS.—Except as pro4 vided in subsection (f), subsections (d) and (e) apply 

5 to measures applied by a State or local government 

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

7 SEC. 202. SAFE HARBOR FOR CHANGES OF INVESTMENT 

8 POLICIES BY ASSET MANAGERS. 

9 Section 13(c)(1) of the Investment Company Act of 

10 1940 (15 U.S.C. 80a–13(c)(1)) is amended— 

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

12 end; 

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

14 and inserting ‘‘; or’’; and 

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

16 ‘‘(C) engage in investment activities de17 scribed in section 201(c) of the Otto Warmbier 

18 Banking Restrictions Involving North Korea Act 

19 of 2017.’’. 

20 SEC. 203. SENSE OF CONGRESS REGARDING CERTAIN ERISA 

21 PLAN INVESTMENTS. 

22 It is the sense of Congress that— 

23 (1) a fiduciary of an employee benefit plan, as 

24 defined in section 3(3) of the Employee Retirement 

25 Income Security Act of 1974 (29 U.S.C. 1002(3)), 


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1 may divest plan assets from, or avoid investing plan 

2 assets in, any person the fiduciary determines engages 

3 in investment activities described in section 201(c), 

4 if— 

5 (A) the fiduciary makes that determination 

6 using credible information that is available to 

7 the public; and 

8 (B) the fiduciary prudently determines that 

9 the result of that divestment or avoidance of in10 vestment would not be expected to provide the 

11 employee benefit plan with— 

12 (i) a lower rate of return than alter13 native investments with commensurate de14 grees of risk; or 

15 (ii) a higher degree of risk than alter16 native investments with commensurate rates 

17 of return; and 

18 (2) by divesting assets or avoiding the invest19 ment of assets as described in paragraph (1), the fidu20 ciary is not breaching the responsibilities, obligations, 

21 or duties imposed upon the fiduciary by subpara22 graph (A) or (B) of section 404(a)(1) of the Employee 

23 Retirement Income Security Act of 1974 (29 U.S.C. 

24 1104(a)(1)). 


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1 SEC. 204. RULE OF CONSTRUCTION. 

2 Nothing in this title, an amendment made by this title, 

3 or any other provision of law authorizing sanctions with 

4 respect to North Korea shall be construed to affect or dis5 place— 

6 (1) the authority of a State or local government 

7 to issue and enforce rules governing the safety, sound8 ness, and solvency of a financial institution subject to 

9 its jurisdiction; or 

10 (2) the regulation and taxation by the several 

11 States of the business of insurance, pursuant to the 

12 Act of March 9, 1945 (59 Stat. 33, chapter 20; 15 

13 U.S.C. 1011 et seq.) (commonly known as the 

14 ‘‘McCarran-Ferguson Act’’). 

15 TITLE III—FINANCIAL INDUSTRY 

16 GUIDANCE TO HALT TRAF17 FICKING 

18 SEC. 301. SHORT TITLE. 

19 This title may be cited as the ‘‘Financial Industry 

20 Guidance to Halt Trafficking Act’’ or the ‘‘FIGHT Act’’. 

21 SEC. 302. FINDINGS. 

22 Congress finds the following: 

23 (1) The terms ‘‘human trafficking’’ and ‘‘traf24 ficking in persons’’ are used interchangeably to de25 scribe crimes involving the exploitation of a person 


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1 for the purposes of compelled labor or commercial sex 

2 through the use of force, fraud, or coercion. 

3 (2) According to the International Labour Orga4 nization, there are an estimated 24,900,000 people 

5 worldwide who are victims of forced labor, including 

6 human trafficking victims in the United States. 

7 (3) Human trafficking is perpetrated for finan8 cial gain. 

9 (4) According to the International Labour Orga10 nization, of the estimated $150,000,000,000 or more 

11 in global profits generated annually from human 

12 trafficking— 

(A) approximately 2 13 ⁄3 are generated by com14 mercial sexual exploitation, exacted by fraud or 

15 by force; and 

(B) approximately 1 16 ⁄3 are generated by 

17 forced labor. 

18 (5) Most purchases of commercial sex acts are 

19 paid for with cash, making trafficking proceeds dif20 ficult to identify in the financial system. Nonetheless, 

21 traffickers rely heavily on access to financial institu22 tions as destinations for trafficking proceeds and as 

23 conduits to finance every step of the trafficking proc24 ess. 


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1 (6) Under section 1956 of title 18, United States 

2 Code (relating to money laundering), human traf3 ficking is a ‘‘specified unlawful activity’’ and trans4 actions conducted with proceeds earned from traf5 ficking people, or used to further trafficking oper6 ations, can be prosecuted as money laundering of7 fenses. 

8 SEC. 303. SENSE OF CONGRESS. 

9 It is the sense of Congress that— 

10 (1) the President should aggressively apply, as 

11 appropriate, existing sanctions for human trafficking 

12 authorized under section 111 of the Trafficking Vic13 tims Protection Act of 2000 (22 U.S.C. 7108); 

14 (2) the Financial Crimes Enforcement Network 

15 of the Department of the Treasury should continue— 

16 (A) to monitor reporting required under 

17 subchapter II of chapter 53 of title 31, United 

18 States Code (commonly known as the ‘‘Bank Se19 crecy Act’’) and to update advisories, as war20 ranted; 

21 (B) to periodically review its advisories to 

22 provide covered financial institutions, as appro23 priate, with a list of new ‘‘red flags’’ for identi24 fying activities of concern, particularly human 

25 trafficking; 


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1 (C) to encourage entities covered by the 

2 advisories described in subparagraph (B) to in3 corporate relevant elements provided in the 

4 advisories into their current transaction and ac5 count monitoring systems or in policies, proce6 dures, and training on human trafficking to en7 able financial institutions to maintain ongoing 

8 efforts to examine transactions and accounts; 

9 (D) to use geographic targeting orders, as 

10 appropriate, to impose additional reporting and 

11 recordkeeping requirements under section 

12 5326(a) of title 31, United States Code, to carry 

13 out the purposes of, and prevent evasions of the 

14 Bank Secrecy Act; and 

15 (E) to utilize the Bank Secrecy Act Advi16 sory Group and other relevant entities to iden17 tify opportunities for nongovernmental organiza18 tions to share relevant actionable information on 

19 human traffickers’ use of the financial sector for 

20 nefarious purposes; 

21 (3) Federal banking regulators, the Department 

22 of the Treasury, relevant law enforcement agencies, 

23 and the Human Smuggling and Trafficking Center, 

24 in partnership with representatives from the United 

25 States financial community, should adopt regular 


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1 forms of sharing information to disrupt human traf2 ficking, including developing protocols and procedures 

3 to share actionable information between and amongst 

4 covered institutions, law enforcement, and the United 

5 States intelligence community; 

6 (4) training front line bank and money service 

7 business employees, school teachers, law enforcement 

8 officers, foreign service officers, counselors, and the 

9 general public is an important factor in identifying 

10 trafficking victims; 

11 (5) the Department of Homeland Security’s Blue 

12 Campaign, training by the BEST Employers Alli13 ance, and similar efforts by industry, human rights, 

14 and nongovernmental organizations focused on 

15 human trafficking provide good examples of current 

16 efforts to educate employees of critical sectors to save 

17 victims and disrupt trafficking networks; 

18 (6) the President should intensify diplomatic ef19 forts, bilaterally and in appropriate international 

20 fora, such as the United Nations, to develop and im21 plement a coordinated, consistent, multilateral strat22 egy for addressing the international financial net23 works supporting human trafficking; and 

24 (7) in deliberations between the United States 

25 Government and any foreign country, including 


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1 through participation in the Egmont Group of Fi2 nancial Intelligence Units, regarding money laun3 dering, corruption, and transnational crimes, the 

4 United States Government should— 

5 (A) encourage cooperation by foreign gov6 ernments and relevant international fora in 

7 identifying the extent to which the proceeds from 

8 human trafficking are being used to facilitate 

9 terrorist financing, corruption, or other illicit fi10 nancial crimes; 

11 (B) encourage cooperation by foreign gov12 ernments and relevant international fora in 

13 identifying the nexus between human trafficking 

14 and money laundering; 

15 (C) advance policies that promote the co16 operation of foreign governments, through infor17 mation sharing, training, or other measures, in 

18 the enforcement of this title; 

19 (D) encourage the Financial Action Task 

20 Force to update its July 2011 typology reports 

21 entitled, ‘‘Laundering the Proceeds of Corrup22 tion’’ and ‘‘Money Laundering Risks Arising 

23 from Trafficking in Human Beings and Smug24 gling of Migrants’’, to identify the money launVerDate Sep 11 2014 22:20 Nov 16, 2017 Jkt 079200 PO 00000 Frm 00106 Fmt 6652 Sfmt 6203 E:\BILLS\S1591.RS S1591

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1 dering risk arising from the trafficking of human 

2 beings; and 

3 (E) encourage the Egmont Group of Finan4 cial Intelligence Units to study the extent to 

5 which human trafficking operations are being 

6 used for money laundering, terrorist financing, 

7 or other illicit financial purposes. 

8 SEC. 304. COORDINATION OF HUMAN TRAFFICKING ISSUES 

9 BY THE OFFICE OF TERRORISM AND FINAN10 CIAL INTELLIGENCE. 

11 (a) FUNCTIONS.—Section 312(a)(4) of title 31, United 

12 States Code, is amended— 

13 (1) by redesignating subparagraphs (E), (F), 

14 and (G) as subparagraphs (F), (G), and (H), respec15 tively; and 

16 (2) by inserting after subparagraph (D) the fol17 lowing: 

18 ‘‘(E) combating illicit financing relating to 

19 human trafficking;’’. 

20 (b) INTERAGENCY COORDINATION.—Section 312(a) of 

21 such title is amended by adding at the end the following: 

22 ‘‘(8) INTERAGENCY COORDINATION.—The Sec23 retary of the Treasury, after consultation with the 

24 Undersecretary for Terrorism and Financial Crimes, 

25 shall designate an office within the OTFI that shall 


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1 coordinate efforts to combat the illicit financing of 

2 human trafficking with— 

3 ‘‘(A) other offices of the Department of the 

4 Treasury; 

5 ‘‘(B) other Federal agencies, including— 

6 ‘‘(i) the Office to Monitor and Combat 

7 Trafficking in Persons of the Department of 

8 State; and 

9 ‘‘(ii) the Interagency Task Force to 

10 Monitor and Combat Trafficking; 

11 ‘‘(C) State and local law enforcement agen12 cies; and 

13 ‘‘(D) foreign governments.’’. 

14 SEC. 305. STRENGTHENING THE ROLE OF ANTI-MONEY 

15 LAUNDERING AND OTHER FINANCIAL TOOLS 

16 IN COMBATING HUMAN TRAFFICKING. 

17 (a) INTERAGENCY TASK FORCE RECOMMENDATIONS

18 TARGETING MONEY LAUNDERING RELATED TO HUMAN

19 TRAFFICKING.— 

20 (1) IN GENERAL.—Not later than 270 days after 

21 the date of the enactment of this Act, the Interagency 

22 Task Force to Monitor and Combat Trafficking shall 

23 submit to the Committee on Banking, Housing, and 

24 Urban Affairs, the Committee on Foreign Relations, 

25 and the Committee on the Judiciary of the Senate, the 


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1 Committee on Financial Services, the Committee on 

2 Foreign Affairs, and the Committee on the Judiciary 

3 of the House of Representatives, the Secretary of the 

4 Treasury, and each appropriate Federal banking 

5 agency— 

6 (A) an analysis of anti-money laundering 

7 efforts of the United States Government and 

8 United States financial institutions related to 

9 human trafficking; and 

10 (B) appropriate legislative, administrative, 

11 and other recommendations to strengthen efforts 

12 against money laundering relating to human 

13 trafficking. 

14 (2) REQUIRED RECOMMENDATIONS.—The rec15 ommendations under paragraph (1) shall include— 

16 (A) best practices based on successful anti17 human trafficking programs currently in place 

18 at financial institutions that are suitable for 

19 broader adoption; 

20 (B) stakeholder feedback on policy proposals 

21 derived from the analysis conducted by the task 

22 force referred to in paragraph (1) that would en23 hance the efforts and programs of financial insti24 tutions to detect and deter money laundering re25 lated to human trafficking, including any recVerDate Sep 11 2014 22:20 Nov 16, 2017 Jkt 079200 PO 00000 Frm 00109 Fmt 6652 Sfmt 6203 E:\BILLS\S1591.RS S1591

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1 ommended changes to internal policies, proce2 dures, and controls related to human trafficking; 

3 (C) any recommended changes to training 

4 programs at financial institutions to better 

5 equip employees to deter and detect money laun6 dering related to human trafficking; and 

7 (D) any recommended changes to expand 

8 human trafficking-related information sharing 

9 among financial institutions and between such 

10 financial institutions, appropriate law enforce11 ment agencies, and appropriate Federal agencies. 

12 (b) ADDITIONAL REPORTING REQUIREMENT.—Section 

13 105(d)(7) of the Trafficking Victims Protection Act of 2000 

14 (22 U.S.C. 7103(d)(7)) is amended— 

15 (1) in the matter preceding subparagraph (A)— 

16 (A) by inserting ‘‘the Committee on Finan17 cial Services,’’ after ‘‘the Committee on Foreign 

18 Affairs’’; and 

19 (B) by inserting ‘‘the Committee on Bank20 ing, Housing, and Urban Affairs,’’ after ‘‘the 

21 Committee on Foreign Relations,’’; 

22 (2) in subparagraph (Q)(vii), by striking ‘‘; 

23 and’’ and inserting a semicolon; 

24 (3) in subparagraph (R), by striking the period 

25 at the end and inserting ‘‘; and’’; and 


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1 (4) by adding at the end the following: 

2 ‘‘(S) the efforts of the United States to 

3 eliminate money laundering related to human 

4 trafficking and the number of investigations, ar5 rests, indictments, and convictions in money 

6 laundering cases with a nexus to human traf7 ficking.’’. 

8 (c) REQUIRED REVIEW OF PROCEDURES.—Not later 

9 than 180 days after the date of the enactment of this Act, 

10 the Federal Financial Institutions Examination Council, 

11 in consultation with the Secretary of the Treasury, the pri12 vate sector, and appropriate law enforcement agencies, 

13 shall— 

14 (1) review and enhance training and examina15 tions procedures to improve the surveillance capabili16 ties of anti-money laundering and countering the fi17 nancing of terrorism programs to detect human traf18 ficking-related financial transactions; 

19 (2) review and enhance procedures for referring 

20 potential human trafficking cases to the appropriate 

21 law enforcement agency; and 

22 (3) determine, as appropriate, whether require23 ments for financial institutions and covered financial 

24 institutions are sufficient to detect and deter money 

25 laundering related to human trafficking. 


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1 SEC. 306. SENSE OF CONGRESS ON RESOURCES TO COMBAT 

2 HUMAN TRAFFICKING. 

3 It is the sense of Congress that— 

4 (1) adequate funding should be provided for crit5 ical Federal efforts to combat human trafficking; 

6 (2) the Department of the Treasury should have 

7 the appropriate resources to vigorously investigate 

8 human trafficking networks under section 111 of the 

9 Trafficking Victims Protection Act of 2000 (22 U.S.C. 

10 7108) and other relevant statutes and Executive or11 ders; 

12 (3) the Department of the Treasury and the De13 partment of Justice should each have the capacity 

14 and appropriate resources to support technical assist15 ance to develop foreign partners’ ability to combat 

16 human trafficking through strong national anti17 money laundering and countering the financing of 

18 terrorism programs; 

19 (4) each United States Attorney’s Office should 

20 be provided appropriate funding to increase the num21 ber of personnel for community education and out22 reach and investigative support and forensic analysis 

23 related to human trafficking; and 

24 (5) the Department of State should be provided 

25 additional resources, as necessary, to carry out the 


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1 Survivors of Human Trafficking Empowerment Act 

2 (section 115 of Public Law 114–22; 129 Stat. 243). 

3 TITLE IV—DEFENSE 

4 PRODUCTION ACT MATTERS 

5 SEC. 401. LIMITATION ON CANCELLATION OF DESIGNATION 

6 OF SECRETARY OF THE AIR FORCE AS DE7 PARTMENT OF DEFENSE EXECUTIVE AGENT 

8 FOR A CERTAIN DEFENSE PRODUCTION ACT 

9 PROGRAM. 

10 (a) LIMITATION ON CANCELLATION OF DESIGNA11 TION.—The Secretary of Defense may not implement the de12 cision, issued on July 1, 2017, to cancel the designation, 

13 under Department of Defense Directive 4400.01E, entitled 

14 ‘‘Defense Production Act Programs’’ and dated October 12, 

15 2001, of the Secretary of the Air Force as the Department 

16 of Defense Executive Agent for the program carried out 

17 under title III of the Defense Production Act of 1950 (50 

18 U.S.C. 4531 et seq.) until the date specified in subsection 

19 (c). 

20 (b) DESIGNATION.—The Secretary of the Air Force 

21 shall continue to serve as the sole and exclusive Department 

22 of Defense Executive Agent for the program described in 

23 subsection (a) until the date specified in subsection (c). 

24 (c) DATE SPECIFIED.—The date specified in this sub25 section is the date of the enactment of a joint resolution 


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1 or an Act approving the implementation of the decision de2 scribed in subsection (a). 


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Calendar No. 263 

115TH CONGRESS 

1ST SESSION S. 1591 

A BILL 

People’s Republic of Korea, and for other purposes. 

To impose sanctions with respect to the Democratic 

NOVEMBER 16, 2017 

Reported with an amendment 


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