II 

114TH CONGRESS 

1ST SESSION S. 2144 

To improve the enforcement of sanctions against the Government of North 

Korea, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

OCTOBER 6, 2015 

Mr. GARDNER (for himself, Mr. RUBIO, and Mr. RISCH) introduced the following bill; which was read twice and referred to the Committee on Foreign Relations 

A BILL 

To improve the enforcement of sanctions against the 

Government of North Korea, and for other purposes. 

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

5 ‘‘North Korea Sanctions and Policy Enhancement Act of 

6 2015’’. 

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

8 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Findings; purposes. 

Sec. 3. Definitions. 


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TITLE I—INVESTIGATIONS, PROHIBITED CONDUCT, AND 

PENALTIES 

Sec. 101. Statement of policy. 

Sec. 102. Investigations. 

Sec. 103. Reporting requirements. 

Sec. 104. Designation of persons. 

Sec. 105. Forfeiture of property. 

Sec. 106. Exception relating to importation of goods. 

TITLE II—SANCTIONS AGAINST NORTH KOREAN PROLIFERATION, 

HUMAN RIGHTS ABUSES, AND ILLICIT ACTIVITIES 

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

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

Council resolutions and financial restrictions on North Korea. 

Sec. 203. Proliferation prevention sanctions. 

Sec. 204. Procurement sanctions. 

Sec. 205. Enhanced inspection authorities. 

Sec. 206. Travel sanctions. 

Sec. 207. Travel recommendations for United States citizens to North Korea. 

Sec. 208. Exemptions, waivers, and removals of designation. 

TITLE III—PROMOTION OF HUMAN RIGHTS 

Sec. 301. Amendments to North Korean Human Rights Act of 2004. 

Sec. 302. Strategy to promote North Korean human rights. 

Sec. 303. Report on North Korean prison camps. 

Sec. 304. Report on serious human rights abuses or censorship in North Korea. 

Sec. 305. Report on and diplomatic strategy to end repatriation of North Korean refugees and forced labor and slavery overseas of North 

Koreans. 

Sec. 306. North Korea Enforcement and Humanitarian Fund. 

TITLE IV—GENERAL AUTHORITIES AND CYBERSECURITY 

STRATEGY 

Sec. 401. Suspension of sanctions and other measures. 

Sec. 402. Termination of sanctions and other measures. 

Sec. 403. Report on those responsible for signification activities undermining 

cybersecurity . 

Sec. 404. Codification of sanctions with respect to North Korea and cybersecurity. 

Sec. 405. Strategy to counter North Korean cyberterrorism. 

Sec. 406. Sense of Congress on trilateral cooperation between the United 

States, Republic of Korea, and Japan. 

Sec. 407. Rulemaking. 

1 SEC. 2. FINDINGS; PURPOSES. 

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

3 (1) The Government of North Korea— 


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1 (A) has repeatedly violated its commit2 ments to the complete, verifiable, and irrevers3 ible dismantlement of its nuclear weapons pro4 grams; and 

5 (B) has willfully violated multiple United 

6 Nations Security Council resolutions calling for 

7 it to cease its development, testing, and produc8 tion of weapons of mass destruction. 

9 (2) Based on its past actions, including the 

10 transfer of sensitive nuclear and missile technology 

11 to state sponsors of terrorism, North Korea poses a 

12 grave risk for the proliferation of nuclear weapons 

13 and other weapons of mass destruction. 

14 (3) The Government of North Korea has been 

15 implicated repeatedly in money laundering and illicit 

16 activities, including— 

17 (A) prohibited arms sales; 

18 (B) narcotics trafficking; 

19 (C) the counterfeiting of United States 

20 currency; 

21 (D) significant activities undermining cy22 bersecurity; and 

23 (E) the counterfeiting of intellectual prop24 erty of United States persons. 

25 (4) North Korea has— 


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1 (A) unilaterally withdrawn from the Ko2 rean War Armistice Agreement, done at Pan3 munjom, Korea, July 27, 1953; and 

4 (B) committed provocations against South 

5 Korea— 

6 (i) by sinking the warship Cheonan 

7 and killing 46 of her crew on March 26, 

8 2010; 

9 (ii) by shelling Yeonpyeong Island and 

10 killing 4 South Korean civilians on Novem11 ber 23, 2010; and 

12 (iii) by its involvement in the 

13 ‘‘DarkSeoul’’ cyberattacks against the fi14 nancial and communications interests of 

15 the Republic of Korea on March 20, 2013. 

16 (5) North Korea maintains a system of brutal 

17 political prison camps that contain as many as 

18 200,000 men, women, and children, who are— 

19 (A) kept in atrocious living conditions with 

20 insufficient food, clothing, and medical care; 

21 and 

22 (B) under constant fear of torture or arbi23 trary execution. 

24 (6) North Korea has prioritized weapons pro25 grams and the procurement of luxury goods— 


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1 (A) in defiance of United Nations Security 

2 Council Resolutions 1695 (adopted July 15, 

3 2006), 1718 (adopted October 14, 2006), 1874 

4 (adopted June 12, 2009), 2087 (adopted Janu5 ary 22, 2013), and 2094 (adopted March 7, 

6 2013); and 

7 (B) in gross disregard of the needs of its 

8 people. 

9 (7) Persons, including financial institutions, 

10 who engage in transactions with, or provide financial 

11 services to, the Government of North Korea and its 

12 financial institutions without establishing sufficient 

13 financial safeguards against North Korea’s use of 

14 these transactions to promote proliferation, weapons 

15 trafficking, human rights violations, illicit activity, 

16 and the purchase of luxury goods— 

17 (A) aid and abet North Korea’s misuse of 

18 the international financial system; and 

19 (B) violate the intent of the United Na20 tions Security Council resolutions referred to in 

21 paragraph (6)(A). 

22 (8) The Government of North Korea has pro23 vided technical support and conducted destructive 

24 and coercive cyberattacks against Sony Pictures En25 tertainment and other United States persons. 


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1 (9) The conduct of the Government of North 

2 Korea poses an imminent threat to— 

3 (A) the security of the United States and 

4 its allies; 

5 (B) the global economy; 

6 (C) the safety of members of the United 

7 States Armed Forces; 

8 (D) the integrity of the global financial 

9 system; 

10 (E) the integrity of global nonproliferation 

11 programs; and 

12 (F) the people of North Korea. 

13 (10) The Government of North Korea has re14 cently and repeatedly sponsored acts of international 

15 terrorism, including— 

16 (A) attempts to assassinate defectors and 

17 human rights activists; 

18 (B) repeated threats of violence against 

19 foreign persons, leaders, newspapers, and cities; 

20 and 

21 (C) the shipment of weapons to terrorists 

22 and state sponsors of terrorism. 

23 (11) Congress reaffirms the purposes set forth 

24 in section 4 of the North Korean Human Rights Act 

25 of 2004 (22 U.S.C. 7802). 


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1 (b) PURPOSES.—The purposes of this Act are— 

2 (1) to use nonmilitary means to address the cri3 sis described in subsection (a); 

4 (2) to provide diplomatic leverage to negotiate 

5 necessary changes in the Government of North Ko6 rea’s conduct; 

7 (3) to ease the suffering of the people of North 

8 Korea; and 

9 (4) to reaffirm the purposes set forth in section 

10 4 of the North Korean Human Rights Act of 2004 

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

12 SEC. 3. DEFINITIONS. 

13 In this Act: 

14 (1) APPLICABLE EXECUTIVE ORDER.—The 

15 term ‘‘applicable Executive order’’ means— 

16 (A) Executive Order 13382 (70 Fed. Reg. 

17 38567; relating to blocking property of weapons 

18 of mass destruction proliferators and their sup19 ports), Executive Order 13466 (73 Fed. Reg. 

20 36787; relating to continuing certain restric21 tions with respect to North Korea and North 

22 Korean nationals), Executive Order 13551 (75 

23 Fed. Reg. 53837; relating to blocking property 

24 of certain persons with respect to North 

25 Korea), Executive Order 13570 (76 Fed. Reg. 


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1 22291; relating to prohibiting certain trans2 actions with respect to North Korea), or Execu3 tive Order 13687 (80 Fed Reg. 819), to the ex4 tent that such Executive order— 

5 (i) authorizes the imposition of sanc6 tions on persons for conduct; or 

7 (ii) prohibits transactions or activities 

8 involving the Government of North Korea; 

9 and 

10 (B) any Executive order adopted on or 

11 after the date of the enactment of this Act, to 

12 the extent that such Executive order— 

13 (i) authorizes the imposition of sanc14 tions on persons for conduct; or 

15 (ii) prohibits transactions or activities 

16 involving the Government of North Korea. 

17 (2) APPLICABLE UNITED NATIONS SECURITY

18 COUNCIL RESOLUTION.—The term ‘‘applicable 

19 United Nations Security Council resolution’’ 

20 means— 

21 (A) United Nations Security Council Reso22 lution 1695 (adopted July 15, 2006), 1718 

23 (adopted October 14, 2006), 1874 (adopted 

24 June 12, 2009), 2087 (adopted January 22, 

25 2013), or 2094 (adopted March 7, 2013); and 


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1 (B) any United Nations Security Council 

2 resolution adopted on or after the date of the 

3 enactment of this Act that— 

4 (i) authorizes the imposition of sanc5 tions on persons for conduct; or 

6 (ii) prohibits transactions or activities 

7 involving the Government of North Korea. 

8 (3) APPROPRIATE CONGRESSIONAL COMMIT9 TEES.—The term ‘‘appropriate congressional com10 mittees’’ means— 

11 (A) the Committee on Foreign Relations of 

12 the Senate; 

13 (B) the Committee on Banking, Housing, 

14 and Urban Affairs of the Senate; 

15 (C) the Committee on Foreign Affairs of 

16 the House of Representatives; and 

17 (D) the Committee on Financial Services 

18 of the House of Representatives. 

19 (4) DESIGNATED PERSON.—The term ‘‘des20 ignated person’’ means a person designated under 

21 subsection (a) or (b) of section 104 for purposes of 

22 applying 1 or more of the sanctions described in title 

23 I or II with respect to the person. 

24 (5) GOVERNMENT OF NORTH KOREA.—The 

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


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1 (A) the Government of the Democratic 

2 People’s Republic of Korea or any political sub3 division, agency, or instrumentality of such gov4 ernment; and 

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

6 acting for or on behalf of, the Government of 

7 North Korea. 

8 (6) LUXURY GOODS.—The term ‘‘luxury 

9 goods’’— 

10 (A) has the meaning given such term in 

11 section 746.4(b)(1) of title 15, Code of Federal 

12 Regulations; and 

13 (B) includes the items listed in Supplement 

14 No. 1 to Part 746 of such title, and any similar 

15 items. 

16 (7) MONETARY INSTRUMENTS.—The term 

17 ‘‘monetary instruments’’ has the meaning given such 

18 term in section 5312(a) of title 31, United States 

19 Code. 

20 (8) NORTH KOREAN FINANCIAL INSTITUTION.— 

21 The term ‘‘North Korean financial institution’’ 

22 means any financial institution that— 

23 (A) is organized under the laws of North 

24 Korea or any jurisdiction within North Korea 

25 (including a foreign branch of such institution); 


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1 (B) is located in North Korea, except for 

2 a financial institution that is excluded by the 

3 President in accordance with section 208(c); 

4 (C) is owned or controlled by the Govern5 ment of North Korea, regardless of location; 

6 and 

7 (D) is owned or controlled by a financial 

8 institution described in subparagraph (A), (B), 

9 or (C), regardless of location. 

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

11 ‘‘other stores of value’’ means— 

12 (A) prepaid access devices, tangible or in13 tangible prepaid access devices, and other in14 struments or devices for the storage or trans15 mission of value (as such terms are defined in 

16 part 1010 of title 31, Code of Federal Regula17 tions); and 

18 (B) any covered goods (as defined in sec19 tion 1027.100 of title 31, Code of Federal Reg20 ulations), and any instrument or tangible or in21 tangible access device used for the storage and 

22 transmission of a representation of covered 

23 goods, or other device (as defined in such sec24 tion 1027.100). 


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1 (10) SIGNIFICANT ACTIVITIES UNDERMINING

2 CYBERSECURITY.—The term ‘‘significant activities 

3 undermining cybersecurity’’ means— 

4 (A) significant efforts to— 

5 (i) deny access to or degrade, disrupt, 

6 or destroy an information and communica7 tions technology system or network; or 

8 (ii) exfiltrate information from such a 

9 system or network without authorization; 

10 (B) significant destructive malware at11 tacks; 

12 (C) significant denial of service activities; 

13 and 

14 (D) such other significant activities de15 scribed in regulations promulgated to imple16 ment section 104. 

17 TITLE I—INVESTIGATIONS, PRO18 HIBITED CONDUCT, AND PEN19 ALTIES 

20 SEC. 101. STATEMENT OF POLICY. 

21 In order to achieve the peaceful disarmament of 

22 North Korea, Congress finds that it is necessary— 

23 (1) to encourage all member states to fully and 

24 promptly implement United Nations Security Coun25 cil Resolution 2094 (adopted March 7, 2013); 


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1 (2) to sanction the persons, including financial 

2 institutions, that facilitate proliferation, illicit activi3 ties, arms trafficking, cyberterrorism, imports of lux4 ury goods, serious human rights abuses, cash smug5 gling, and censorship by the Government of North 

6 Korea; 

7 (3) to authorize the President to sanction per8 sons who fail to exercise due diligence to ensure that 

9 such financial institutions and jurisdictions do not 

10 facilitate proliferation, arms trafficking, kleptocracy, 

11 and imports of luxury goods by the Government of 

12 North Korea; 

13 (4) to deny the Government of North Korea ac14 cess to the funds it uses to obtain nuclear weapons, 

15 ballistic missiles, cyberwarfare capabilities, and lux16 ury goods instead of providing for the needs of its 

17 people; and 

18 (5) to enforce sanctions in a manner that to the 

19 extent possible avoids any adverse humanitarian im20 pact on the people of North Korea. 

21 SEC. 102. INVESTIGATIONS. 

22 (a) INITIATION.—The President shall initiate an in23 vestigation into the possible designation of a person under 

24 section 104(a) upon receipt by the President of credible 


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1 information indicating that such person has engaged in 

2 conduct described in section 104(a). 

3 (b) PERSONNEL.—The President may direct the Sec4 retary of State, the Secretary of the Treasury, and the 

5 heads of other Federal departments and agencies to assign 

6 sufficient experienced and qualified investigators, attor7 neys, and technical personnel— 

8 (1) to investigate the conduct described in sub9 sections (a) and (b) of section 104; and 

10 (2) to coordinate and ensure the effective en11 forcement of this Act. 

12 SEC. 103. REPORTING REQUIREMENTS. 

13 (a) PRESIDENTIAL BRIEFINGS TO CONGRESS.—Not 

14 later than 180 days after the date of the enactment of 

15 this Act, and periodically thereafter, the President shall 

16 provide a briefing to the appropriate congressional com17 mittees on efforts to implement this Act. 

18 (b) REPORT FROM SECRETARY OF STATE.—Not 

19 later than 6 months after the date of the enactment of 

20 this Act, the Secretary of State shall conduct, coordinate, 

21 and submit to Congress a comprehensive report on United 

22 States policy towards North Korea that— 

23 (1) is based on a full and complete interagency 

24 review of current policy and possible alternatives, in25 cluding North Korea’s weapons of mass destruction 


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1 and missile programs, human rights atrocities, and 

2 significant activities undermining cybersecurity; and 

3 (2) includes recommendations for such legisla4 tive or administrative action as the Secretary con5 siders appropriate based on the results of the review. 

6 SEC. 104. DESIGNATION OF PERSONS. 

7 (a) PROHIBITED ACTIVITIES.— 

8 (1) PROHIBITED CONDUCT DESCRIBED.—Ex9 cept as provided in section 208, the President shall 

10 designate under this subsection any person that the 

11 President determines— 

12 (A) knowingly (directly or indirectly) im13 ported, exported, or reexported to, into, or from 

14 North Korea any goods, services, or technology 

15 controlled for export by the United States due 

16 to their use for weapons of mass destruction 

17 and their delivery systems and materially con18 tributing to the use, development, production, 

19 possession, or acquisition by any persons of a 

20 nuclear, radiological, chemical, or biological 

21 weapon or any device or system designed in 

22 whole or in part to deliver such a weapon; 

23 (B) knowingly (directly or indirectly) pro24 vided training, advice, or other services or as25 sistance, or engaged in significant financial 


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1 transactions, relating to the manufacture, main2 tenance, or use of any such weapon or system 

3 to be imported, exported, or reexported to, into, 

4 or from North Korea; 

5 (C) knowingly (directly or indirectly) im6 ported, exported, or reexported luxury goods to 

7 or into North Korea; 

8 (D) knowingly engaged in, or is responsible 

9 for, censorship by the Government of North 

10 Korea; 

11 (E) knowingly engaged in, or is responsible 

12 for, serious human rights abuses by the Govern13 ment of North Korea, including torture or 

14 cruel, inhuman, or degrading treatment or pun15 ishment, prolonged detention without charges 

16 and trial, forced labor or trafficking in persons, 

17 causing the disappearance of persons by the ab18 duction and clandestine detention of those per19 sons, and other denial of the right to life, lib20 erty, or the security of a person; 

21 (F) knowingly (directly or indirectly) en22 gaged in money laundering, the counterfeiting 

23 of goods or currency, bulk cash smuggling, or 

24 narcotics trafficking that supports the GovernVerDate Sep 11 2014 04:11 Oct 08, 2015 Jkt 059200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6201 E:\BILLS\S2144.IS S2144

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1 ment of North Korea or any senior official of 

2 such government; 

3 (G) knowingly engaged in acts of signifi4 cant activities undermining cybersecurity 

5 through the use of computer networks or sys6 tems against foreign persons, governments, or 

7 other entities; or 

8 (H) knowingly sold, supplied, or trans9 ferred directly to or from North Korea a pre10 cious metal, graphite, or raw or semi-finished 

11 metals, including aluminum, steel, coal, and 

12 software, for integrating industrial processes. 

13 (2) PENALTIES.—The penalties provided for in 

14 subsections (b) and (c) of section 206 of the Inter15 national Emergency Economic Powers Act (50 

16 U.S.C. 1705) shall apply to any person who violates, 

17 attempts to violate, conspires to violate, or causes a 

18 violation of any prohibition under this subsection, or 

19 an order or regulation prescribed under this Act, to 

20 the same extent that such penalties apply to a per21 son that commits an unlawful act described in sec22 tion 206(a) of such Act (50 U.S.C. 1705(a)). 

23 (b) ADDITIONAL PROHIBITED ACTIVITIES.— 

24 (1) PROHIBITED CONDUCT DESCRIBED.—Ex25 cept as provided in section 208, the President may 


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1 designate under this subsection any person that the 

2 President determines— 

3 (A) knowingly engaged in, contributed to, 

4 assisted, sponsored, or provided financial, mate5 rial or technological support for, or goods and 

6 services in support of, any person designated 

7 pursuant to an applicable United Nations Secu8 rity Council resolution; 

9 (B) knowingly contributed to— 

10 (i) the bribery of an official of the 

11 Government of North Korea; 

12 (ii) the misappropriation, theft, or em13 bezzlement of public funds by, or for the 

14 benefit of, an official of the Government of 

15 North Korea; or 

16 (iii) the use of any proceeds of any 

17 such conduct; or 

18 (C) knowingly and materially assisted, 

19 sponsored, or provided significant financial, ma20 terial, or technological support for, or goods or 

21 services to or in support of, the activities de22 scribed in subparagraph (A) or (B). 

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

24 any person designated under this subsection, the 

25 President may— 


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1 (A) apply the sanctions described in sec2 tion 203, 204, or 206; 

3 (B) apply any of the special measures de4 scribed in section 5318A of title 31, United 

5 States Code; 

6 (C) prohibit any transactions in foreign ex7 change— 

8 (i) that are subject to the jurisdiction 

9 of the United States; and 

10 (ii) in which such person has any in11 terest; and 

12 (D) prohibit any transfers of credit or pay13 ments between financial institutions or by, 

14 through, or to any financial institution, to the 

15 extent that such transfers or payments— 

16 (i) are subject to the jurisdiction of 

17 the United States; and 

18 (ii) involve any interest of such per19 son. 

20 (c) ASSET BLOCKING.—The President shall exercise 

21 all of the powers granted to the President under the Inter22 national Emergency Economic Powers Act (50 U.S.C. 

23 1701 et seq.) to the extent necessary to block and prohibit 

24 all transactions in property and interests in property of 

25 a person determined by the President to be subject to this 


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1 section if such property and interests in property are in 

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

3 or come within the possession or control of a United 

4 States person. 

5 (d) APPLICATION.—The designation of a person 

6 under subsection (a) or (b) and the blocking of property 

7 and interests in property under subsection (c) shall apply 

8 with respect to a person who is determined to be owned 

9 or controlled by, or to have acted or purported to have 

10 acted for or on behalf of (directly or indirectly) any person 

11 whose property and interests in property are blocked pur12 suant to this section. 

13 (e) TRANSACTION LICENSING.—The President shall 

14 deny or revoke any license for any transaction that the 

15 President determines to lack sufficient financial controls 

16 to ensure that such transaction will not facilitate any of 

17 the conduct described in subsection (a) or (b). 

18 SEC. 105. FORFEITURE OF PROPERTY. 

19 (a) AMENDMENT TO PROPERTY SUBJECT TO FOR20 FEITURE.—Section 981(a)(1) of title 18, United States 

21 Code, is amended by adding at the end the following: 

22 ‘‘(I) Any real or personal property that is in23 volved in a violation or attempted violation, or which 

24 constitutes or is derived from proceeds traceable to 


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1 a violation, of section 104(a) of the North Korea 

2 Sanctions and Policy Enhancement Act of 2015.’’. 

3 (b) AMENDMENT TO DEFINITION OF CIVIL FOR4 FEITURE STATUTE.—Section 983(i)(2)(D) of title 18, 

5 United States Code, is amended to read as follows: 

6 ‘‘(D) the Trading with the Enemy Act (50 

7 U.S.C. App. 1 et seq.), the International Emer8 gency Economic Powers Act (50 U.S.C. 1701 et 

9 seq.), or the North Korea Sanctions Enforce10 ment Act of 2015; or’’. 

11 (c) AMENDMENT TO DEFINITION OF SPECIFIED UN12 LAWFUL ACTIVITY.—Section 1956(c)(7)(D) of title 18, 

13 United States Code, is amended— 

14 (1) by striking ‘‘or section 92 of’’ and inserting 

15 ‘‘section 92 of’’; and 

16 (2) by adding at the end the following: ‘‘, or 

17 section 104(a) of the North Korea Sanctions En18 forcement Act of 2015 (relating to prohibited trade 

19 with North Korea);’’. 

20 (d) PAYMENT IN LIEU OF FORFEITURE.—Any money 

21 paid to the United States by a financial institution or 

22 other person in lieu of the commencement of criminal, 

23 civil, or administrative forfeiture proceedings to forfeit 

24 property involving any activity described in section 104(a) 

25 or in settlement of such forfeiture proceedings— 


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1 (1) shall be treated as forfeited funds; and 

2 (2) shall be deposited, in such proportions as 

3 the President may determine, into— 

4 (A) the Assets Forfeiture Fund established 

5 under section 524(c) of title 28, United States 

6 Code; or 

7 (B) the Department of the Treasury For8 feiture Fund established under section 9705 of 

9 title 31, United States Code. 

10 (e) RULE OF CONSTRUCTION.—Nothing in this title 

11 or any amendment made by this title may be construed 

12 to restrict or limit the authority of the President under— 

13 (1) section 524(c) of title 28, United States 

14 Code; or 

15 (2) section 9705 of title 31, United States 

16 Code. 

17 SEC. 106. EXCEPTION RELATING TO IMPORTATION OF 

18 GOODS. 

19 The authorities under sections 104(c) and 204 shall 

20 not include the authority to impose sanctions on the im21 portation of goods. 


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1 TITLE II—SANCTIONS AGAINST 

2 NORTH KOREAN PROLIFERA3 TION, HUMAN RIGHTS 

4 ABUSES, AND ILLICIT ACTIVI5 TIES 

6 SEC. 201. DETERMINATIONS WITH RESPECT TO NORTH 

7 KOREA AS A JURISDICTION OF PRIMARY 

8 MONEY LAUNDERING CONCERN. 

9 (a) FINDINGS.—Congress makes the following find10 ings: 

11 (1) The Under Secretary for Terrorism and Fi12 nancial Intelligence, who is responsible for safe13 guarding the financial system against illicit use, 

14 money laundering, terrorist financing, and the pro15 liferation of weapons of mass destruction, and has 

16 repeatedly expressed concern about North Korea’s 

17 misuse of the international financial system— 

18 (A) in 2006— 

19 (i) stated, ‘‘Given [North Korea’s] 

20 counterfeiting of U.S. currency, narcotics 

21 trafficking and use of accounts world-wide 

22 to conduct proliferation-related trans23 actions, the line between illicit and licit 

24 North Korean money is nearly invisible.’’; 

25 and 


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1 (ii) urged financial institutions world2 wide to ‘‘think carefully about the risks of 

3 doing any North Korea-related business’’; 

4 (B) in 2011, stated that North Korea— 

5 (i) ‘‘remains intent on engaging in 

6 proliferation, selling arms as well as bring7 ing in material’’; and 

8 (ii) was ‘‘aggressively pursuing the ef9 fort to establish front companies.’’; and 

10 (C) in 2013, stated— 

11 (i) in reference to North Korea’s dis12 tribution of high-quality counterfeit United 

13 States currency, that ‘‘North Korea is con14 tinuing to try to pass a supernote into the 

15 international financial system’’; and 

16 (ii) the Department of the Treasury 

17 would soon introduce new currency with 

18 improved security features to protect 

19 against counterfeiting by the Government 

20 of North Korea. 

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

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

25 repeatedly— 


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1 (A) expressed concern at deficiencies in 

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

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

5 action to address significant deficiencies in 

6 these regimes and the serious threat they pose 

7 to the integrity of the international financial 

8 system; 

9 (C) urged all jurisdictions to apply coun10 termeasures to protect the international finan11 cial system from ongoing and substantial money 

12 laundering and terrorist financing risks ema13 nating from North Korea; 

14 (D) urged all jurisdictions to advise their 

15 financial institutions to give special attention to 

16 business relationships and transactions with 

17 North Korea, including North Korean compa18 nies and financial institutions; and 

19 (E) called on all jurisdictions— 

20 (i) to protect against correspondent 

21 relationships being used to bypass or evade 

22 countermeasures and risk mitigation prac23 tices; and 

24 (ii) to take into account money laun25 dering and terrorist financing risks when 


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1 considering requests by North Korean fi2 nancial institutions to open branches and 

3 subsidiaries in their respective jurisdic4 tions. 

5 (3) On March 7, 2013, the United Nations Se6 curity Council unanimously adopted Resolution 

7 2094, which— 

8 (A) welcomed the Financial Action Task 

9 Force’s— 

10 (i) recommendation on financial sanc11 tions related to proliferation; and 

12 (ii) guidance on the implementation of 

13 such sanctions; 

14 (B) decided that United Nations Member 

15 States should apply enhanced monitoring and 

16 other legal measures to prevent the provision of 

17 financial services or the transfer of property 

18 that could contribute to activities prohibited by 

19 applicable United Nations Security Council res20 olutions; and 

21 (C) called upon United Nations Member 

22 States to prohibit North Korean banks from es23 tablishing or maintaining correspondent rela24 tionships with banks in their respective jurisdic25 tions to prevent the provision of financial servVerDate Sep 11 2014 04:11 Oct 08, 2015 Jkt 059200 PO 00000 Frm 00026 Fmt 6652 Sfmt 6201 E:\BILLS\S2144.IS S2144

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1 ices if such states have information that pro2 vides reasonable grounds to believe that such 

3 activities could contribute to— 

4 (i) activities prohibited by an applica5 ble United Nations Security Council reso6 lution; or 

7 (ii) the evasion of such prohibitions. 

8 (b) SENSE OF CONGRESS REGARDING THE DESIGNA9 TION OF NORTH KOREA AS A JURISDICTION OF PRIMARY

10 MONEY LAUNDERING CONCERN.—Congress— 

11 (1) acknowledges the efforts of the United Na12 tions Security Council to impose limitations on, and 

13 to require the enhanced monitoring of, transactions 

14 involving North Korean financial institutions that 

15 could contribute to sanctioned activities; 

16 (2) urges the President, in the strongest 

17 terms— 

18 (A) to immediately designate North Korea 

19 as a jurisdiction of primary money laundering 

20 concern; and 

21 (B) to adopt stringent special measures to 

22 safeguard the financial system against the risks 

23 posed by North Korea’s willful evasion of sanc24 tions and its illicit activities; and 


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1 (3) urges the President to seek the prompt im2 plementation by other states of enhanced monitoring 

3 and due diligence to prevent North Korea’s misuse 

4 of the international financial system, including by 

5 sharing information about activities, transactions, 

6 and property that could contribute to— 

7 (A) activities sanctioned by applicable 

8 United Nations Security Council resolutions; or 

9 (B) the evasion of such sanctions. 

10 (c) DETERMINATIONS REGARDING NORTH KOREA.— 

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

12 after the date of the enactment of this Act, the Sec13 retary of the Treasury, in consultation with the Sec14 retary of State and Attorney General, and in accord15 ance with section 5318A of title 31, United States 

16 Code, shall determine whether reasonable grounds 

17 exist for concluding that North Korea is a jurisdic18 tion of primary money laundering concern. 

19 (2) ENHANCED DUE DILIGENCE AND REPORT20 ING REQUIREMENTS.—Except as provided in section 

21 208, if the Secretary of the Treasury determines 

22 under paragraph (1) that reasonable grounds exist 

23 for concluding that North Korea is a jurisdiction of 

24 primary money laundering concern, the Secretary, in 

25 consultation with the Federal functional regulators, 


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1 shall impose 1 or more of the special measures de2 scribed in section 5318A(b) of title 31, United 

3 States Code, with respect to the jurisdiction of 

4 North Korea. 

5 (3) REPORT REQUIRED.— 

6 (A) IN GENERAL.—Not later than 90 days 

7 after the date on which the Secretary of the 

8 Treasury makes a determination under para9 graph (1), the Secretary shall submit a report 

10 to the appropriate congressional committees 

11 that contains the reasons for such determina12 tion. 

13 (B) FORM.—The report submitted under 

14 subparagraph (A) shall be submitted in unclas15 sified form, but may contain a classified annex. 

16 SEC. 202. ENSURING THE CONSISTENT ENFORCEMENT OF 

17 UNITED NATIONS SECURITY COUNCIL RESO18 LUTIONS AND FINANCIAL RESTRICTIONS ON 

19 NORTH KOREA. 

20 (a) FINDINGS.—Congress makes the following find21 ings: 

22 (1) All member states and jurisdictions are obli23 gated to implement and enforce applicable United 

24 Nations Security Council resolutions fully and 

25 promptly, including by blocking the property of, and 


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1 ensuring that any property is prevented from being 

2 made available to, persons designated by the Secu3 rity Council under applicable United Nations Secu4 rity Council resolutions. 

5 (2) As of May 2015, 158 of the United Na6 tions’ 193 member states have not submitted reports 

7 on measures taken to implement North Korea-spe8 cific United Nations Security Council resolutions 

9 (1718, 1874, and 2094). 

10 (3) A recent report by the Government Ac11 countability Office (GAO–15–485)— 

12 (A) finds that officials of the United States 

13 and representatives of the United Nations 

14 Panel of Experts which monitors and facilitates 

15 implementation of United Nations sanctions on 

16 North Korea ‘‘agree that the lack of detailed re17 ports from all member states is an impediment 

18 to the UN’s effective implementation of its 

19 sanctions’’; and 

20 (B) notes that ‘‘many member states lack 

21 the technical capacity to enforce sanctions and 

22 prepare reports’’ on the implementation of 

23 United Nations sanctions on North Korea. 

24 (4) All states and jurisdictions share a common 

25 interest in protecting the international financial sysVerDate Sep 11 2014 04:11 Oct 08, 2015 Jkt 059200 PO 00000 Frm 00030 Fmt 6652 Sfmt 6201 E:\BILLS\S2144.IS S2144

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1 tem from the risks of money laundering and illicit 

2 transactions emanating from North Korea. 

3 (5) The United States dollar and the euro are 

4 the world’s principal reserve currencies, and the 

5 United States and the European Union are pri6 marily responsible for the protection of the inter7 national financial system from these risks. 

8 (6) The cooperation of the People’s Republic of 

9 China, as North Korea’s principal trading partner, 

10 is essential to— 

11 (A) the enforcement of applicable United 

12 Nations Security Council resolutions; and 

13 (B) the protection of the international fi14 nancial system. 

15 (7) The report of the Panel of Experts estab16 lished pursuant to United Nations Security Council 

17 Resolution 1874 (adopted on June 11, 2013), ex18 pressed concern about the ability of banks in— 

19 (A) states with less effective regulators; 

20 and 

21 (B) states that are unable to afford effec22 tive compliance to detect and prevent illicit 

23 transfers involving North Korea. 

24 (8) North Korea has historically exploited in25 consistencies between jurisdictions in the interpretaVerDate Sep 11 2014 04:11 Oct 08, 2015 Jkt 059200 PO 00000 Frm 00031 Fmt 6652 Sfmt 6201 E:\BILLS\S2144.IS S2144

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1 tion and enforcement of financial regulations and 

2 applicable United Nations Security Council resolu3 tions to circumvent sanctions and launder the pro4 ceeds of illicit activities. 

5 (9) Amroggang Development Bank, Bank of 

6 East Land, and Tanchon Commercial Bank have 

7 been designated by the Secretary of the Treasury, 

8 the United Nations Security Council, and the Euro9 pean Union as having materially contributed to the 

10 proliferation of weapons of mass destruction. 

11 (10) Korea Daesong Bank and Korea 

12 Kwangson Banking Corporation have been des13 ignated by the Secretary of the Treasury and the 

14 European Union as having materially contributed to 

15 the proliferation of weapons of mass destruction. 

16 (11) The Foreign Trade Bank of North Korea 

17 has been designated by the Secretary of the Treas18 ury for facilitating transactions on behalf of persons 

19 linked to its proliferation network, and for serving as 

20 ‘‘a key financial node’’. 

21 (12) Daedong Credit Bank has been designated 

22 by the Secretary of the Treasury for activities pro23 hibited by applicable United Nations Security Coun24 cil resolutions, including the use of deceptive finan25 cial practices to facilitate transactions on behalf of 


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1 persons linked to North Korea’s proliferation net2 work. 

3 (b) SENSE OF CONGRESS.—It is the sense of Con4 gress that the President should intensify diplomatic efforts 

5 in appropriate international fora, such as the United Na6 tions, and bilaterally, to develop and implement a coordi7 nated, consistent, multilateral strategy for protecting the 

8 global financial system against risks emanating from 

9 North Korea, including— 

10 (1) the cessation of any financial services whose 

11 continuation is inconsistent with applicable United 

12 Nations Security Council resolutions; 

13 (2) the cessation of any financial services to 

14 persons, including financial institutions, that present 

15 unacceptable risks of facilitating money laundering 

16 and illicit activity by the Government of North 

17 Korea; 

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

19 in accordance with the legal process of the state or 

20 jurisdiction in which the property is held, of any 

21 property required to be blocked under applicable 

22 United Nations Security Council resolutions; 

23 (4) the blocking of any property derived from il24 licit activity, or from the misappropriation, theft, or 


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1 embezzlement of public funds by, or for the benefit 

2 of, officials of the Government of North Korea; 

3 (5) the blocking of any property involved in sig4 nificant activities undermining cybersecurity by the 

5 Government of North Korea, directly or indirectly, 

6 against United States persons, or the theft of intel7 lectual property by the Government of North Korea, 

8 directly or indirectly from United States persons; 

9 and 

10 (6) the blocking of any property of persons di11 rectly or indirectly involved in censorship or human 

12 rights abuses by the Government of North Korea. 

13 (c) STRATEGY TO IMPROVE INTERNATIONAL IMPLE14 MENTATION AND ENFORCEMENT OF UN NORTH KOREA15 SPECIFIC SANCTIONS.—The President shall direct the 

16 Secretary of State, in coordination with other departments 

17 and agencies, as appropriate, to develop a strategy to im18 prove international implementation and enforcement of 

19 United Nations North Korea-specific sanctions. This 

20 strategy should include elements— 

21 (1) to increase the number of countries submit22 ting reports to the United Nations Panel of Experts, 

23 including developing a list of targeted countries 

24 where effective implementation and enforcement of 


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1 United Nations sanctions would reduce the North 

2 Korean threat; 

3 (2) to encourage member states to cooperate 

4 and share information with the panel in order to 

5 help facilitate investigations; 

6 (3) to expand cooperation with the panel of ex7 perts; 

8 (4) to provide technical assistance to member 

9 states to implement United Nations sanctions, in10 cluding developing the capacity to enforce sanctions 

11 through improved export control regulations and 

12 customs and border patrol systems; 

13 (5) to harness existing United States Govern14 ment initiatives and assistance programs, as appro15 priate, to improve sanctions implementation and en16 forcement; and 

17 (6) to increase outreach to the people of North 

18 Korea, and to support independent, non-govern19 mental journalistic, humanitarian, and other institu20 tions engagement in North Korea. 

21 (d) REPORT REQUIRED.—Not later than 90 days 

22 after the date of the enactment of this Act, and annually 

23 thereafter, the Secretary of State shall submit a report 

24 to the appropriate congressional committees that describes 


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1 the actions undertaken to implement the strategy set forth 

2 in subsection (c). 

3 SEC. 203. PROLIFERATION PREVENTION SANCTIONS. 

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

5 A validated license shall be required for the export of any 

6 goods or technology otherwise covered under section 6(j) 

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

8 2405(j)). No defense exports may be approved for the 

9 Government of North Korea. 

10 (b) TRANSACTIONS IN LETHAL MILITARY EQUIP11 MENT.— 

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

13 assistance under the Foreign Assistance Act of 1961 

14 (22 U.S.C. 2151 et seq.) to the government of any 

15 country that provides lethal military equipment to 

16 the Government of North Korea. 

17 (2) APPLICABILITY.—The prohibition under 

18 this subsection with respect to a foreign government 

19 shall terminate on the date that is 1 year after the 

20 date on which the restriction under paragraph (1) 

21 may have been applied. 

22 (c) WAIVER.—Notwithstanding any other provision of 

23 law, the Secretary of State may waive the prohibitions 

24 under this section with respect to a country if the Sec25 retary— 


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1 (1) determines that such waiver is in the na2 tional interest of the United States; and 

3 (2) submits a written report to the relevant 

4 congressional committees that describes— 

5 (A) the steps that the relevant agencies are 

6 taking to curtail the trade described in para7 graph (1); and 

8 (B) why such waiver is in the vital national 

9 interest of the United States. 

10 (d) EXCEPTION.—The prohibitions under this section 

11 shall not apply to the provision of assistance for human 

12 rights, democracy, rule of law, or emergency humanitarian 

13 assistance. 

14 SEC. 204. PROCUREMENT SANCTIONS. 

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

16 the United States Government may not procure, or enter 

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

18 services from any designated person. 

19 (b) FEDERAL ACQUISITION REGULATION.— 

20 (1) IN GENERAL.—The Federal Acquisition 

21 Regulation issued pursuant to section 1303 of title 

22 41, United States Code, shall be revised to require 

23 that each person that is a prospective contractor 

24 submit a certification that such person does not enVerDate Sep 11 2014 04:11 Oct 08, 2015 Jkt 059200 PO 00000 Frm 00037 Fmt 6652 Sfmt 6201 E:\BILLS\S2144.IS S2144

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1 gage in any of the conduct described in section 

2 104(a). 

3 (2) APPLICABILITY.—The revision required 

4 under paragraph (1) shall apply with respect to con5 tracts for which solicitations are issued on or after 

6 the date that is 90 days after the date of the enact7 ment of this Act. 

8 (c) GENERAL SERVICES ADMINISTRATION.— 

9 (1) INCLUSION ON LIST.—The Administrator of 

10 General Services shall include, on the List of Parties 

11 Excluded from Federal Procurement and Non12 procurement Programs maintained by the Adminis13 trator under part 9 of the Federal Acquisition Regu14 lation, each person that is debarred, suspended, or 

15 proposed for debarment or suspension by the head 

16 of an executive agency on the basis of a determina17 tion of a false certification under subsection (b). 

18 (2) CONTRACT TERMINATION; SUSPENSION.—If 

19 the head of an executive agency determines that a 

20 person has submitted a false certification under sub21 section (b) after the date on which the Federal Ac22 quisition Regulation is revised to implement the re23 quirements of this section, the head of such execu24 tive agency shall— 


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1 (A) terminate a contract with such person; 

2 or 

3 (B) debar or suspend such person from eli4 gibility for Federal contracts for a period of not 

5 longer than 2 years. 

6 (3) APPLICABLE PROCEDURES.—Any debar7 ment or suspension under paragraph (2)(B) shall be 

8 subject to the procedures that apply to debarment 

9 and suspension under the Federal Acquisition Regu10 lation under subpart 9.4 of title 48, Code of Federal 

11 Regulations. 

12 (d) CLARIFICATION REGARDING CERTAIN PROD13 UCTS.—The remedies specified in subsections (a) through 

14 (c) shall not apply with respect to the procurement of any 

15 eligible product (as defined in section 308(4) of the Trade 

16 Agreements Act of 1979 (19 U.S.C. 2518(4))) of any for17 eign country or instrumentality designated under section 

18 301(b) of such Act (19 U.S.C. 2511(b)). 

19 (e) RULE OF CONSTRUCTION.—Nothing in this sub20 section may be construed to limit the use of other remedies 

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

22 official of the Federal Government on the basis of a deter23 mination of a false certification under subsection (b). 


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

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

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

4 SEC. 205. ENHANCED INSPECTION AUTHORITIES. 

5 (a) REPORT REQUIRED.—Not later than 180 days 

6 after the date of the enactment of this Act, and annually 

7 thereafter, the President shall submit a report to the ap8 propriate congressional committees that identifies foreign 

9 ports and airports whose inspections of ships, aircraft, and 

10 conveyances originating in North Korea, carrying North 

11 Korean property, or operated by the Government of North 

12 Korea are not sufficient to effectively prevent the facilita13 tion of any of the activities described in section 104(a). 

14 (b) ENHANCED CUSTOMS INSPECTION REQUIRE15 MENTS.—The Secretary of Homeland Security may re16 quire enhanced inspections of any cargo landed in the 

17 United States or entering the stream of interstate com18 merce that has been transported through a port or airport 

19 identified by the President under subsection (a). 

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

21 or conveyance used to facilitate any of the activities de22 scribed in section 104(a) under the jurisdiction of the 

23 United States may be seized and forfeited under— 

24 (1) chapter 46 of title 18, United States Code; 

25 or 


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1 (2) the Tariff Act of 1930 (19 U.S.C. 1202 et 

2 seq.). 

3 SEC. 206. TRAVEL SANCTIONS. 

4 The Secretary of State may deny a visa to, and the 

5 Secretary of Homeland Security, pursuant to section 104, 

6 may deny entry into the United States of, any alien who 

7 is— 

8 (1) a designated person; 

9 (2) a corporate officer of a designated person; 

10 or 

11 (3) a principal shareholder with a controlling 

12 interest in a designated person. 

13 SEC. 207. TRAVEL RECOMMENDATIONS FOR UNITED 

14 STATES CITIZENS TO NORTH KOREA. 

15 The Secretary of State shall expand the scope and 

16 frequency of issuance of travel warnings for all United 

17 States citizens to North Korea. The expanded travel warn18 ings, which should be issued not less frequently than every 

19 3 months, should include— 

20 (1) any publicly available information regarding 

21 the detention of United States citizens by North Ko22 rean authorities, including specific details regarding 

23 circumstances of arrest and detention, including du24 ration, legal proceedings, and conditions under which 

25 the United States citizen has been, or continues to 


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1 be, detained by North Korean authorities, including 

2 present-day cases and cases occurring during the 10- 

3 year period ending on the date of the enactment of 

4 this Act; 

5 (2) any publicly available information on the 

6 past and present detention and abduction or alleged 

7 abduction of United States, South Korean, and Jap8 anese citizens by North Korean authorities; 

9 (3) information about the nature of the North 

10 Korean regime, including its weapons of mass de11 struction programs, illicit activities, international 

12 sanctions violations, and human rights situation; and 

13 (4) any other information that the Secretary 

14 deems useful to provide United States citizens with 

15 a complete picture of the nature of the North Ko16 rean regime. 

17 SEC. 208. EXEMPTIONS, WAIVERS, AND REMOVALS OF DES18 IGNATION. 

19 (a) EXEMPTIONS.— 

20 (1) IN GENERAL.—The following activities shall 

21 be exempt from sanctions under sections 104 and 

22 206: 

23 (A) Activities subject to the reporting re24 quirements under title V of the National Secu25 rity Act of 1947 (50 U.S.C. 413 et seq.), or to 


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1 any authorized intelligence activities of the 

2 United States. 

3 (B) Any transaction necessary to comply 

4 with United States obligations under the Agree5 ment between the United Nations and the 

6 United States of America regarding the Head7 quarters of the United Nations, signed June 

8 26, 1947, and entered into force on November 

9 21, 1947, or under the Vienna Convention on 

10 Consular Relations, signed April 24, 1963, and 

11 entered into force on March 19, 1967, or under 

12 other international agreements. 

13 (C) Any financial transaction for which the 

14 exclusive purpose is to import agricultural prod15 ucts, medicine, or medical devices into North 

16 Korea if such supplies or equipment— 

17 (i) are designated as ‘‘EAR 99’’ under 

18 the Export Administration Regulations (15 

19 C.F.R. 730 et seq.); and 

20 (ii) are not controlled under— 

21 (I) the Export Administration 

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

23 seq.), as continued in effect under the 

24 International Emergency Economic 

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


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1 (II) the Arms Export Control Act 

2 (22 U.S.C. 2751 et seq.); 

3 (III) part B of title VIII of the 

4 Nuclear Proliferation Prevention Act 

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

6 (IV) the Chemical and Biological 

7 Weapons Control and Warfare Elimi8 nation Act of 1991 (22 U.S.C. 5601 

9 et seq.). 

10 (2) EXPORT ADMINISTRATION REGULATIONS

11 DEFINED.—In this subsection, the term ‘‘Export Ad12 ministration Regulations’’ means the regulations set 

13 forth in subchapter C of chapter VII of title 15, 

14 Code of Federal Regulations (15 C.F.R. 730 et seq.) 

15 and maintained and amended under the authority of 

16 the International Emergency Economic Powers Act 

17 (50 U.S.C. 1701 et seq.). 

18 (b) WAIVER.—The President may waive, on a case19 by-case basis, for renewable periods of between 30 days 

20 and 1 year, the application of the sanctions authorized 

21 under section 104, 203, 204, or 206 if the President sub22 mits to the appropriate congressional committees a written 

23 determination that the waiver— 

24 (1) is important to the national security inter25 ests of the United States; 


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1 (2) will further the enforcement of this Act or 

2 is for an important law enforcement purpose; or 

3 (3) is for an important humanitarian purpose, 

4 including any of the purposes described in section 4 

5 of the North Korean Human Rights Act of 2004 (22 

6 U.S.C. 7802). 

7 (c) FINANCIAL SERVICES FOR HUMANITARIAN AND

8 CONSULAR ACTIVITIES.—The President may promulgate 

9 such regulations, rules, and policies as may be necessary 

10 to facilitate the provision of financial services by a foreign 

11 financial institution that is not controlled by the Govern12 ment of North Korea in support of the activities subject 

13 to exemption under this Act. 

14 TITLE III—PROMOTION OF 

15 HUMAN RIGHTS 

16 SEC. 301. AMENDMENTS TO NORTH KOREAN HUMAN 

17 RIGHTS ACT OF 2004. 

18 (a) INFORMATION TECHNOLOGY STUDY.—Section 

19 104 of the North Korean Human Rights Act of 2004 (22 

20 U.S.C. 7814) is amended— 

21 (1) by redesignating subsection (b) as sub22 section (d); and 

23 (2) by inserting after subsection (a) the fol24 lowing: 


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1 ‘‘(b) INFORMATION TECHNOLOGY STUDY.—Not later 

2 than 180 days after the date of the enactment of the 

3 North Korea Sanctions and Policy Enhancement Act of 

4 2015, the President shall submit a classified report to the 

5 appropriate congressional committees that sets forth a de6 tailed plan for making unrestricted, unmonitored, and in7 expensive electronic mass communications available to the 

8 people of North Korea.’’. 

9 (b) SPECIAL ENVOY.—Section 107(a) of the North 

10 Korean Human Rights Act of 2004 (22 U.S.C. 7817(a)) 

11 is amended— 

12 (1) by striking ‘‘within the Department of 

13 State’’; and 

14 (2) by inserting ‘‘, shall report directly to the 

15 Secretary of State,’’ after ‘‘ambassador’’. 

16 SEC. 302. STRATEGY TO PROMOTE NORTH KOREAN HUMAN 

17 RIGHTS. 

18 (a) REPORT.—Not later than 180 days after the date 

19 of the enactment of this Act, the Secretary of State, in 

20 coordination with other appropriate departments and 

21 agencies, shall submit a report to the Committee on For22 eign Relations of the Senate and the Committee on For23 eign Affairs of the House of Representatives that details 

24 a United States strategy to promote international aware25 ness of the human rights situation in North Korea. 


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1 (b) CONTENTS.—The report under subsection (a) 

2 should include— 

3 (1) a plan to enhance diplomatic outreach, in4 cluding sustained engagement with partners and al5 lies and with overseas posts to routinely demarche 

6 host governments on North Korea human rights 

7 issues, including forced labor, trafficking, and repa8 triation of North Korean citizens; 

9 (2) public affairs and public diplomacy cam10 paigns, including options to work with news organi11 zations and media outlets to publish op-eds and se12 cure public speaking opportunities for United States 

13 Government officials on issues related to the human 

14 rights situation in North Korea; and 

15 (3) opportunities to coordinate and collaborate 

16 with appropriate nongovernmental organizations and 

17 private sector entities to raise awareness and provide 

18 assistance to North Korean defectors throughout the 

19 world. 

20 SEC. 303. REPORT ON NORTH KOREAN PRISON CAMPS. 

21 (a) IN GENERAL.—The Secretary of State shall sub22 mit a report to the appropriate congressional committees 

23 that describes, with respect to each political prison camp 

24 in North Korea, to the extent information is available— 

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


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1 (2) the camp’s geographical coordinates; 

2 (3) the reasons for the confinement of the pris3 oners; 

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

5 and the end users of any goods produced in such 

6 camp; 

7 (5) the natural persons and agencies respon8 sible for conditions in the camp; 

9 (6) the conditions under which prisoners are 

10 confined, with respect to the adequacy of food, shel11 ter, medical care, working conditions, and reports of 

12 ill treatment of prisoners; and 

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

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

15 compromise the sources and methods used by the in16 telligence agencies of the United States to capture 

17 geospatial imagery. 

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

19 may be included in the first human rights report required 

20 to be submitted to Congress after the date of the enact21 ment of this Act under sections 116(d) and 502B(b) of 

22 the Foreign Assistance Act of 1961 (22 U.S.C. 2151n(d) 

23 and 2304(b)). 


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1 SEC. 304. REPORT ON SERIOUS HUMAN RIGHTS ABUSES OR 

2 CENSORSHIP IN NORTH KOREA. 

3 (a) IN GENERAL.—The Secretary of State shall sub4 mit a report to the appropriate congressional committees 

5 that— 

6 (1) identifies each person the Secretary deter7 mines to be responsible for serious human rights 

8 abuses or censorship in North Korea; and 

9 (2) describes the abuses or censorship engaged 

10 in by such person. 

11 (b) CONSIDERATION.—In preparing the report re12 quired under subsection (a), the Secretary of State shall— 

13 (1) give due consideration to the findings of the 

14 United Nations Commission of Inquiry on Human 

15 Rights in North Korea; and 

16 (2) make specific findings with respect to the 

17 responsibility of Kim Jong Un, and of each natural 

18 person who is a member of the National Defense 

19 Commission of North Korea, or the Organization 

20 and Guidance Department of the Workers’ Party of 

21 Korea, for serious human rights abuses and censor22 ship. 

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

24 designate under section 104(a) any person listed in the 

25 report required under subsection (a) as responsible for se26 rious human rights abuses or censorship in North Korea. 


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1 (d) SUBMISSION AND FORM.— 

2 (1) SUBMISSION.—The report required under 

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

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

5 every 180 days thereafter for a period not to exceed 

6 3 years, and shall be included in each human rights 

7 report required under sections 116(d) and 502B(b) 

8 of the Foreign Assistance Act of 1961 (22 U.S.C. 

9 2151n(d) and 2304(b)). 

10 (2) FORM.—The report required under sub11 section (a) shall be submitted in unclassified form, 

12 but may include a classified annex. The Secretary of 

13 State shall also publish the unclassified part of the 

14 report on the Department of State’s website. 

15 SEC. 305. REPORT ON AND DIPLOMATIC STRATEGY TO END 

16 REPATRIATION OF NORTH KOREAN REFU17 GEES AND FORCED LABOR AND SLAVERY 

18 OVERSEAS OF NORTH KOREANS. 

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

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

21 the Secretary of State shall submit a report to the appro22 priate congressional committees that contains the informa23 tion described in subsections (b) and (c). 

24 (b) INFORMATION.—The report required under sub25 section (a) shall include— 


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1 (1) a list of countries that forcibly repatriate 

2 North Korean refugees; and 

3 (2) a list of countries where North Korean la4 borers work, including governments that have formal 

5 arrangements with the Government of North Korea 

6 to employ North Korean workers. 

7 (c) STRATEGY.—The report required by subsection 

8 (a) shall include a diplomatic strategy to end repatriation 

9 of North Korean refugees and forced labor and slavery 

10 of North Koreans overseas, including— 

11 (1) bilateral and multilateral outreach; and 

12 (2) public diplomacy activities to raise aware13 ness. 

14 SEC. 306. NORTH KOREA ENFORCEMENT AND HUMANI15 TARIAN FUND. 

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

17 Treasury of the United States a fund, which shall be 

18 known as the North Korea Enforcement and Humani19 tarian Fund (referred to in this section as the ‘‘Fund’’). 

20 (b) DEPOSITS.—The President shall deposit into the 

21 Fund, and shall transfer and consolidate on the books of 

22 the Treasury in a special account for the uses described 

23 in subsection (c), all revenues derived from— 


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1 (1) all fines and penalties assessed for a viola2 tion of this Act, any regulation established under 

3 this Act, or an applicable Executive order; and 

4 (2) except as provided in section 105(c), all 

5 fines and penalties paid in lieu of the commencement 

6 of, or paid in settlement of, criminal or civil pro7 ceedings for a violation of this Act, any regulation 

8 established under this Act, or an applicable Execu9 tive order. 

10 (c) USES.— 

11 (1) IN GENERAL.—For each fiscal year, there is 

12 authorized to be appropriated from the Fund an 

13 amount equal to amounts appropriated for that fis14 cal year to administer the Fund. 

15 (2) RADIO BROADCASTING AND PROMOTING

16 FREEDOM OF INFORMATION.—For each fiscal year, 

17 there is authorized to be appropriated— 

18 (A) $3,000,000 to carry out section 103 of 

19 the North Korea Human Rights Act of 2004 

20 (22 U.S.C. 7813); and 

21 (B) $5,000,000 to carry out section 104 of 

22 such Act (22 U.S.C. 7814). 

23 (3) AVAILABILITY.—Amounts appropriated pur24 suant to paragraph (2) shall remain available, with25 out fiscal year limitation, until expended. 


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1 TITLE IV—GENERAL AUTHORI2 TIES AND CYBERSECURITY 

3 STRATEGY 

4 SEC. 401. SUSPENSION OF SANCTIONS AND OTHER MEAS5 URES. 

6 (a) IN GENERAL.—Any sanction or other measure re7 quired under title I, II, or III (or any amendment made 

8 by such titles) may be suspended for up to 1 year upon 

9 certification by the President to the appropriate congres10 sional committees that the Government of North Korea 

11 has made progress toward— 

12 (1) verifiably ceasing its counterfeiting of 

13 United States currency, including the surrender or 

14 destruction of specialized materials and equipment 

15 used or particularly suitable for counterfeiting; 

16 (2) taking steps toward financial transparency 

17 to comply with generally accepted protocols to cease 

18 and prevent the laundering of monetary instruments; 

19 (3) taking steps toward verification of its com20 pliance with applicable United Nations Security 

21 Council resolutions; 

22 (4) taking steps toward accounting for and re23 patriating the citizens of other countries— 

24 (A) abducted or unlawfully held captive by 

25 the Government of North Korea; or 


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1 (B) detained in violation of the 1953 Armi2 stice Agreement; 

3 (5) accepting and beginning to abide by inter4 nationally recognized standards for the distribution 

5 and monitoring of humanitarian aid; and 

6 (6) taking verified steps to improve living condi7 tions in its political prison camps. 

8 (b) RENEWAL OF SUSPENSION.—The suspension de9 scribed in subsection (a) may be renewed for additional, 

10 consecutive 180-day periods after the President certifies 

11 to the appropriate congressional committees that the Gov12 ernment of North Korea has continued to comply with the 

13 conditions described in subsection (a) during the previous 

14 year. 

15 SEC. 402. TERMINATION OF SANCTIONS AND OTHER MEAS16 URES. 

17 Any sanction or other measure required under title 

18 I, II, or III (or any amendment made by such titles) shall 

19 terminate on the date on which the President determines 

20 and certifies to the appropriate congressional committees 

21 that the Government of North Korea has— 

22 (1) met the requirements set forth in section 

23 401; and 

24 (2) has made significant progress toward— 


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1 (A) completely, verifiably, and irreversibly 

2 dismantling all of its nuclear, chemical, biologi3 cal, and radiological weapons programs, includ4 ing all programs for the development of systems 

5 designed in whole or in part for the delivery of 

6 such weapons; 

7 (B) releasing all political prisoners, includ8 ing the citizens of North Korea detained in 

9 North Korea’s political prison camps; and 

10 (C)(i) ceasing its censorship of peaceful po11 litical activity; 

12 (ii) establishing an open, transparent, and 

13 representative society; and 

14 (iii) fully accounting for and repatriating 

15 United States citizens (included deceased)— 

16 (I) abducted or unlawfully held cap17 tive by the Government of North Korea; or 

18 (II) detained in violation of the 1953 

19 Armistice Agreement. 

20 SEC. 403. REPORT ON THOSE RESPONSIBLE FOR SIG21 NIFICATION ACTIVITIES UNDERMINING CY22 BERSECURITY . 

23 (a) IN GENERAL.—The President shall submit a re24 port to the appropriate congressional committees that de25 scribes significant activities undermining cybersecurity 


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1 conducted by the Government of North Korea, or individ2 uals otherwise ordered or controlled, directly or indirectly, 

3 by the Government of North Korea, including— 

4 (1) the identity and nationality of persons that 

5 have knowingly engaged in, directed, or provided 

6 material support to conduct significant malicious 

7 cyber-enabled activities by the Government of North 

8 Korea; 

9 (2) the conduct engaged in by each person iden10 tified; 

11 (3) the extent to which a foreign government 

12 has provided material support significant malicious 

13 cyber activities conducted, or otherwise ordered or 

14 controlled by, the Government of North Korea or 

15 persons affiliated with the Government of North 

16 Korea; and 

17 (4) the efforts made by the United States to en18 gage foreign governments to halt the capability of 

19 the Government of North Korea to conduct signifi20 cant malicious cyber-enabled activities. 

21 (b) SUBMISSION AND FORM.— 

22 (1) SUBMISSION.—The report required under 

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

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

25 every 180 days thereafter. 


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1 (2) FORM.—The report required under sub2 section (a) shall be submitted in an unclassified 

3 form, but may contain a classified annex. 

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

5 designate under section 104(a) any person listed in the 

6 report required under subsection (a) as responsible for sig7 nificant activities undermining cybersecurity aimed 

8 against the United States Government or any United 

9 States private sector entities or persons. 

10 (d) WAIVER.—The President may waive, on a case11 by-case basis, the designations required under subsection 

12 (c), if the President submits a written certification to the 

13 appropriate congressional committees that the waiver is 

14 important to the national security interests of the United 

15 States. 

16 SEC. 404. CODIFICATION OF SANCTIONS WITH RESPECT TO 

17 NORTH KOREA AND CYBERSECURITY. 

18 United States sanctions with respect to North Korea 

19 and cybersecurity provided for in Executive Order No. 

20 13606 and Executive Order No. 13694, as in effect on 

21 the day before the date of the enactment of this Act, shall 

22 remain in effect until the date that is 30 days after the 

23 date on which the President submits to Congress the cer24 tification that the Government of North Korea, or individ25 uals otherwise ordered or controlled, directly or indirectly, 


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1 by the Government of North Korea are no longer engaged 

2 in the illicit activities described in Executive Order No. 

3 13606 and Executive Order No. 13694, including actions 

4 in violation of United Nations Security Council Resolu5 tions 1718, 1874, 2087, and 2094, commission of serious 

6 human rights abuses, and significant activities under7 mining cybersecurity aimed against the United States. 

8 SEC. 405. STRATEGY TO COUNTER NORTH KOREAN 

9 CYBERTERRORISM. 

10 Not later than 180 days after the date of the enact11 ment of this Act, the President shall submit a report to 

12 the Committee on Foreign Relations of the Senate and 

13 the Committee on Foreign Affairs of the House of Rep14 resentatives that describes the President’s strategy to 

15 counter North Korea’s efforts to conduct significant activi16 ties undermining cybersecurity against the United States. 

17 SEC. 406. SENSE OF CONGRESS ON TRILATERAL COOPERA18 TION BETWEEN THE UNITED STATES, REPUB19 LIC OF KOREA, AND JAPAN. 

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

21 the President— 

22 (1) should seek to strengthen high-level tri23 lateral mechanisms for discussion and coordination 

24 of policy toward the Democratic People’s Republic of 

25 Korea between the Governments of the United 


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1 States, the Government of the Republic of Korea, 

2 and the Government of Japan; 

3 (2) should ensure that the mechanisms specifi4 cally address the Democratic People’s Republic of 

5 Korea’s nuclear, ballistic, and conventional weapons 

6 programs; its human rights record, and cybersecu7 rity threats posed by the Democratic People’s Re8 public of Korea; 

9 (3) should ensure that the parties meet on a 

10 regular basis and include representatives of the 

11 United States Department of State, United States 

12 Department of Defense, representatives of the 

13 United States intelligence communities, and their 

14 relevant counterparts in the Government of the Re15 public of Korea and the Government of Japan; and 

16 (4) should continue to brief relevant congres17 sional committees regularly on the status of such 

18 discussions. 

19 (b) RELEVANT COMMITTEES.—Relevant committees 

20 referred to in subsection (a)(4) shall include— 

21 (1) the Committee on Foreign Relations of the 

22 Senate; 

23 (2) the Committee on Foreign Affairs of the 

24 House of Representatives; 


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1 (3) the Committee on Armed Services of the 

2 Senate; 

3 (4) the Committee on Armed Services of the 

4 House of Representatives; 

5 (5) the Select Committee on Intelligence of the 

6 Senate; and 

7 (6) the Permanent Select Committee on Intel8 ligence of the House of Representatives. 

9 SEC. 407. RULEMAKING. 

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

11 promulgate such rules and regulations as may be nec12 essary to carry out the provisions of this Act (which may 

13 include regulatory exceptions), including under section 

14 205 of the International Emergency Economic Powers Act 

15 (50 U.S.C. 1704). 

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

17 or in any amendment made by this Act, may be construed 

18 to limit the authority of the President to designate or 

19 sanction persons pursuant to an applicable Executive 

20 order or otherwise pursuant to the International Emer21 gency Economic Powers Act (50 U.S.C. 1701 et seq.). 

Æ 


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