I 

114TH CONGRESS 

1ST SESSION H. R. 757 

To improve the enforcement of sanctions against the Government of North 

Korea, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 5, 2015 

Mr. ROYCE (for himself, Mr. ENGEL, Mr. POE of Texas, Mr. SHERMAN, Mr. 

SALMON, and Mr. KEATING) introduced the following bill; which was referred to the Committee on Foreign Affairs, and in addition to the Committees on Ways and Means, the Judiciary, Financial Services, and Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions 

as fall within the jurisdiction of the committee concerned 

A BILL 

To improve the enforcement of sanctions against the 

Government of North Korea, and for other purposes. 

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

5 ‘‘North Korea Sanctions Enforcement Act of 2015’’. 

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

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Findings. 


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Sec. 3. Definitions. 

TITLE I—INVESTIGATIONS, PROHIBITED CONDUCT, AND 

PENALTIES 

Sec. 101. Statement of policy. 

Sec. 102. Investigations. 

Sec. 103. Briefing to Congress. 

Sec. 104. Designation of persons for prohibited conduct and mandatory and 

discretionary designation and sanctions authorities. 

Sec. 105. Forfeiture of property. 

TITLE II—SANCTIONS AGAINST NORTH KOREAN PROLIFERATION, 

HUMAN RIGHTS ABUSES, ILLICIT ACTIVITIES, AND SIGNIFICANT ACTIVITIES UNDERMINING CYBER SECURITY 

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

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

Council resolutions and financial restrictions on North Korea. 

Sec. 203. Proliferation prevention sanctions. 

Sec. 204. Procurement sanctions. 

Sec. 205. Enhanced inspections authorities. 

Sec. 206. Travel sanctions. 

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

Sec. 208. Report on those responsible for knowingly engaging in significant activities undermining cyber security. 

TITLE III—PROMOTION OF HUMAN RIGHTS 

Sec. 301. Information technology. 

Sec. 302. Report on North Korean prison camps. 

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

abuses or censorship in North Korea. 

TITLE IV—GENERAL AUTHORITIES 

Sec. 401. Suspension of sanctions and other measures. 

Sec. 402. Termination of sanctions and other measures. 

Sec. 403. Authority to consolidate reports. 

Sec. 404. Regulations. 

Sec. 405. Effective date. 

1 SEC. 2. FINDINGS. 

2 Congress finds the following: 

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

5 verifiable, irreversible dismantlement of its nuclear 

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


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

2 production of weapons of mass destruction. 

3 (2) North Korea poses a grave risk for the pro4 liferation of nuclear weapons and other weapons of 

5 mass destruction. 

6 (3) The Government of North Korea has been 

7 implicated repeatedly in money laundering and illicit 

8 activities, including prohibited arms sales, narcotics 

9 trafficking, the counterfeiting of United States cur10 rency, and the counterfeiting of intellectual property 

11 of United States persons. 

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

13 historically and recently, repeatedly sponsored acts 

14 of international terrorism, including attempts to as15 sassinate defectors and human rights activists, re16 peated threats of violence against foreign persons, 

17 leaders, newspapers, and cities, and the shipment of 

18 weapons to terrorists and state sponsors of ter19 rorism. 

20 (5) North Korea has unilaterally withdrawn 

21 from the 1953 Armistice Agreement that ended the 

22 Korean War, and committed provocations against 

23 South Korea in 2010 by sinking the warship 

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

25 Yeonpyeong Island, killing four South Koreans. 


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1 (6) North Korea maintains a system of brutal 

2 political prison camps that contain as many as 

3 120,000 men, women, and children, who live in atro4 cious living conditions with insufficient food, cloth5 ing, and medical care, and under constant fear of 

6 torture or arbitrary execution. 

7 (7) The Congress reaffirms the purposes of the 

8 North Korean Human Rights Act of 2004 contained 

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

10 (8) North Korea has prioritized weapons pro11 grams and the procurement of luxury goods, in defi12 ance of United Nations Security Council resolutions, 

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

14 (9) The President has determined that the Gov15 ernment of North Korea is responsible for knowingly 

16 engaging in significant activities undermining cyber 

17 security with respect to United States persons and 

18 interests, and for threats of violence against the ci19 vilian population of the United States. 

20 (10) Persons, including financial institutions, 

21 who engage in transactions with, or provide financial 

22 services to, the Government of North Korea and its 

23 financial institutions without establishing sufficient 

24 financial safeguards against North Korea’s use of 

25 these transactions to promote proliferation, weapons 


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1 trafficking, human rights violations, illicit activity, 

2 and the purchase of luxury goods, aid and abet 

3 North Korea’s misuse of the international financial 

4 system, and also violate the intent of relevant United 

5 Nations Security Council resolutions. 

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

7 poses an imminent threat to the security of the 

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

9 to the safety of members of the United States 

10 Armed Forces, to the integrity of the global financial 

11 system, to the integrity of global nonproliferation 

12 programs, and to the people of North Korea. 

13 (12) The Congress seeks, through this legisla14 tion, to use nonmilitary means to address this crisis, 

15 to provide diplomatic leverage to negotiate necessary 

16 changes in North Korea’s conduct, and to ease the 

17 suffering of the people of North Korea. 

18 SEC. 3. DEFINITIONS. 

19 In this Act: 

20 (1) APPLICABLE EXECUTIVE ORDER.—The 

21 term ‘‘applicable Executive order’’ means— 

22 (A) Executive Order No. 13382 (2005), 

23 13466 (2008), 13551 (2010), or 13570 (2011), 

24 to the extent that such Executive order author25 izes the imposition of sanctions on persons for 


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1 conduct, or prohibits transactions or activities, 

2 involving the Government of North Korea; or 

3 (B) any Executive order adopted on or 

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

5 the extent that such Executive order authorizes 

6 the imposition of sanctions on persons for con7 duct, or prohibits transactions or activities, in8 volving the Government of North Korea. 

9 (2) APPLICABLE UNITED NATIONS SECURITY

10 COUNCIL RESOLUTION.—The term ‘‘applicable 

11 United Nations Security Council resolution’’ 

12 means— 

13 (A) United Nations Security Council Reso14 lution 1695 (2006), 1718 (2006), 1874 (2009), 

15 2087 (2013), or 2094 (2013); or 

16 (B) any United Nations Security Council 

17 resolution adopted on or after the date of the 

18 enactment of this Act, to the extent that such 

19 resolution authorizes the imposition of sanctions 

20 on persons for conduct, or prohibits trans21 actions or activities, involving the Government 

22 of North Korea. 

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


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1 (A) the Committee on Foreign Affairs, the 

2 Committee on Ways and Means, and the Com3 mittee on Financial Services of the House of 

4 Representatives; and 

5 (B) the Committee on Foreign Relations 

6 and the Committee on Banking, Housing, and 

7 Urban Affairs of the Senate. 

8 (4) DESIGNATED PERSON.—The term ‘‘des9 ignated person’’ means a person designated under 

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

11 applying one or more of the sanctions described in 

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

13 (5) GOVERNMENT OF NORTH KOREA.—The 

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

15 (A) the Government of the Democratic 

16 People’s Republic of Korea or any political sub17 division, agency, or instrumentality thereof; and 

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

19 acting for or on behalf of, the Government of 

20 the Democratic People’s Republic of Korea. 

21 (6) INTERNATIONAL TERRORISM.—The term 

22 ‘‘international terrorism’’ has the meaning given 

23 such term in section 140(d) of the Foreign Relations 

24 Authorization Act, Fiscal Years 1988 and 1989 (22 

25 U.S.C. 2656f(d)), and includes the conduct deVerDate Sep 11 2014 22:57 Feb 12, 2015 Jkt 049200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H757.IH H757

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1 scribed in section 212(a)(3)(B)(iii) of the Immigra2 tion and Nationality Act (8 U.S.C. 

3 1182(a)(3)(B)(iii)), to the extent such conduct in4 volves the citizens of more than one country. 

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

6 has the meaning given such term in subpart 746.4 

7 of title 15, Code of Federal Regulations, and in8 cludes the items listed in Supplement No. 1 to such 

9 regulation, and any similar items. 

10 (8) MONETARY INSTRUMENT.—The term ‘‘mon11 etary instrument’’ has the meaning given such term 

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

13 (9) NORTH KOREAN FINANCIAL INSTITUTION.— 

14 The term ‘‘North Korean financial institution’’ 

15 means— 

16 (A) a financial institution organized under 

17 the laws of North Korea or any jurisdiction 

18 within North Korea (including a foreign branch 

19 of such institution); 

20 (B) any financial institution located in 

21 North Korea, except as may be excluded from 

22 such definition by the President in accordance 

23 with section 207(d); 


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

3 of North Korea; and 

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

7 (C). 

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

9 ‘‘other stores of value’’ means— 

10 (A) prepaid access devices, tangible or in11 tangible prepaid access devices, or other instru12 ments or devices for the storage or transmission 

13 of value, as defined in part 1010 of title 31, 

14 Code of Federal Regulations; and 

15 (B) any covered goods, as defined in sec16 tion 1027.100 of title 31, Code of Federal Reg17 ulations, and any instrument or tangible or in18 tangible access device used for the storage and 

19 transmission of a representation of covered 

20 goods, or other device, as defined in section 

21 1027.100 of title 31, Code of Federal Regula22 tions. 

23 (11) PERSON.—The term ‘‘person’’ means an 

24 individual or entity as determined by the Secretary 

25 of State and the Secretary of the Treasury. 


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1 (12) SIGNIFICANT ACTIVITIES UNDERMINING

2 CYBER SECURITY.—The term ‘‘significant activities 

3 undermining cyber security’’ 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 or 

14 (D) such other significant activities as may 

15 be described in regulations promulgated to im16 plement section 104. 

17 (13) UNITED STATES PERSON.—The term 

18 ‘‘United States person’’ means— 

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

20 United States or who owes permanent alle21 giance to the United States; and 

22 (B) a corporation or other legal entity 

23 which is organized under the laws of the United 

24 States, any State or territory thereof, or the 

25 District of Columbia, if natural persons deVerDate Sep 11 2014 22:57 Feb 12, 2015 Jkt 049200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H757.IH H757

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1 scribed in subparagraph (A) own, directly or in2 directly, more than 50 percent of the out3 standing capital stock or other beneficial inter4 est in such legal entity. 

5 TITLE I—INVESTIGATIONS, PRO6 HIBITED CONDUCT, AND PEN7 ALTIES 

8 SEC. 101. STATEMENT OF POLICY. 

9 In order to achieve the peaceful disarmament of 

10 North Korea, Congress finds that it is necessary— 

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

12 implement United Nations Security Council Resolu13 tion 2094 (2013); 

14 (2) to sanction— 

15 (A) persons that facilitate proliferation of 

16 weapons of mass destruction, illicit activities, 

17 arms trafficking, imports of luxury goods, cash 

18 smuggling, censorship, and knowingly engage in 

19 significant activities undermining cyber security 

20 by the Government of North Korea; and 

21 (B) persons that fail to exercise due dili22 gence to ensure that financial institutions do 

23 not facilitate any of the activities described in 

24 subparagraph (A) by the Government of North 

25 Korea; 


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1 (3) to deny the Government of North Korea ac2 cess to the funds it uses to obtain nuclear weapons, 

3 ballistic missiles, offensive cyber capabilities, and 

4 luxury goods instead of providing for the needs of its 

5 people; and 

6 (4) to enforce sanctions in a manner that 

7 avoids any adverse humanitarian impact on the peo8 ple of North Korea to the extent possible and in a 

9 manner that does not unduly constrain the enforce10 ment of such sanctions. 

11 SEC. 102. INVESTIGATIONS. 

12 The President shall initiate an investigation into the 

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

14 receipt by the President of credible information indicating 

15 that such person has engaged in conduct described in sec16 tion 104(a). 

17 SEC. 103. BRIEFING TO CONGRESS. 

18 Not later than 180 days after the date of the enact19 ment of this Act, and periodically thereafter, the President 

20 shall provide to the appropriate congressional committees 

21 a briefing on efforts to implement this Act, to include the 

22 following, to the extent the information is available: 

23 (1) The principal foreign assets and sources of 

24 foreign income of the Government of North Korea. 


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1 (2) A list of the persons designated under sub2 sections (a) and (b) of section 104. 

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

4 sanctions were waived or removed under section 207. 

5 (4) A summary of any diplomatic efforts made 

6 in accordance with section 202(b) and of the 

7 progress realized from such efforts, including efforts 

8 to encourage the European Union and other states 

9 and jurisdictions to sanction and block the assets of 

10 the Foreign Trade Bank of North Korea and 

11 Daedong Credit Bank. 

12 SEC. 104. DESIGNATION OF PERSONS FOR PROHIBITED 

13 CONDUCT AND MANDATORY AND DISCRE14 TIONARY DESIGNATION AND SANCTIONS AU15 THORITIES. 

16 (a) PROHIBITED CONDUCT AND MANDATORY DES17 IGNATION AND SANCTIONS AUTHORITY.— 

18 (1) CONDUCT DESCRIBED.—Except as provided 

19 in section 207, the President shall designate under 

20 this subsection any person the President determines 

21 to— 

22 (A) have knowingly engaged in significant 

23 activities or transactions with the Government 

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1 struction or their means of delivery (including 

2 missiles capable of delivering such weapons), in3 cluding any efforts to manufacture, acquire, 

4 possess, develop, transport, transfer, or use 

5 such items; 

6 (B) have knowingly imported, exported, or 

7 reexported to, into, or from North Korea any 

8 significant arms or related materiel, whether di9 rectly or indirectly; 

10 (C) have knowingly provided significant 

11 training, advice, or other services or assistance, 

12 or engaged in significant transactions, related 

13 to the manufacture, maintenance, or use of any 

14 arms or related materiel to be imported, ex15 ported, or reexported to, into, or from North 

16 Korea, or following their importation, expor17 tation, or reexportation to, into, or from North 

18 Korea, whether directly or indirectly; 

19 (D) have knowingly, directly or indirectly, 

20 imported, exported, or reexported significant 

21 luxury goods to or into North Korea; 

22 (E) have knowingly engaged in or been re23 sponsible for censorship by the Government of 

24 North Korea, including prohibiting, limiting, or 

25 penalizing the exercise of freedom of expression 


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1 or assembly, limiting access to print, radio or 

2 other broadcast media, Internet or other elec3 tronic communications, or the facilitation or 

4 support of intentional frequency manipulation 

5 that would jam or restrict an international sig6 nal; 

7 (F) have knowingly engaged in or been re8 sponsible for serious human rights abuses by 

9 the Government of North Korea, including tor10 ture or cruel, inhuman, or degrading treatment 

11 or punishment, prolonged detention without 

12 charges and trial, forced labor or trafficking in 

13 persons, causing the disappearance of persons 

14 by the abduction and clandestine detention of 

15 those persons, and other denial of the right to 

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

17 (G) have knowingly, directly or indirectly, 

18 engaged in acts of money laundering, the coun19 terfeiting of goods or currency, bulk cash smug20 gling, narcotics trafficking, or other illicit activ21 ity that involves or supports the Government of 

22 North Korea or any senior official thereof, 

23 whether directly or indirectly; or 


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1 (H) have knowingly attempted to engage in 

2 any of the conduct described in subparagraphs 

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

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

5 any person designated under this subsection, the 

6 President— 

7 (A) shall exercise the authorities of the 

8 International Emergency Economic Powers Act 

9 (50 U.S.C. 1705 et seq.) to block all property 

10 and interests in property of any person des11 ignated under this subsection that are in the 

12 United States, that hereafter come within the 

13 United States, or that are or hereafter come 

14 within the possession or control of any United 

15 States person, including any overseas branch; 

16 and 

17 (B) may apply any of the sanctions de18 scribed in sections 204, 205(c), and 206. 

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

20 section 206 of the International Emergency Eco21 nomic Powers Act (50 U.S.C. 1705) shall apply to 

22 a person who violates, attempts to violate, conspires 

23 to violate, or causes a violation of any prohibition 

24 provided for in this subsection, or of an order or reg25 ulation prescribed under this Act, to the same extent 


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1 that such penalties apply to a person that commits 

2 an unlawful act described in section 206(a) of that 

3 Act (50 U.S.C. 1705(a)). 

4 (4) DEFINITION.—In paragraph (1)(F), the 

5 term ‘‘trafficking in persons’’ has the meaning given 

6 the term in section 103(9) of the Trafficking Vic7 tims Protection Act of 2000 (22 U.S.C. 7102(9)). 

8 (b) DISCRETIONARY DESIGNATION AND SANCTIONS

9 AUTHORITY.— 

10 (1) CONDUCT DESCRIBED.—Except as provided 

11 in section 207 and paragraph (3) of this subsection, 

12 the President may designate under this subsection 

13 any person that the President determines to— 

14 (A) have knowingly engaged in, contrib15 uted to, assisted, sponsored, or provided finan16 cial, material or technological support for, or 

17 goods and services in support of, any violation 

18 of, or evasion of, an applicable United Nations 

19 Security Council resolution; 

20 (B) have knowingly facilitated the transfer 

21 of any funds, financial assets, or economic re22 sources of, or property or interests in property 

23 of a person designated under an applicable Ex24 ecutive order, or by the United Nations SecuVerDate Sep 11 2014 22:57 Feb 12, 2015 Jkt 049200 PO 00000 Frm 00017 Fmt 6652 Sfmt 6201 E:\BILLS\H757.IH H757

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1 rity Council pursuant to an applicable United 

2 Nations Security Council resolution; 

3 (C) have knowingly facilitated the transfer 

4 of any funds, financial assets, or economic re5 sources, or any property or interests in property 

6 derived from, involved in, or that has materially 

7 contributed to conduct prohibited by subsection 

8 (a) or an applicable United Nations Security 

9 Council resolution; 

10 (D) have knowingly facilitated any trans11 action, including any transaction in bulk cash 

12 or other stores of value, without applying en13 hanced monitoring to ensure that such trans14 action does not contribute materially to conduct 

15 described in subsection (a) an applicable Execu16 tive order, or an applicable United Nations Se17 curity Council resolution; 

18 (E) have knowingly facilitated any trans19 actions in cash or monetary instruments or 

20 other stores of value, including through cash 

21 couriers transiting to or from North Korea, 

22 used to facilitate any conduct prohibited by an 

23 applicable United Nations Security Council res24 olution; 


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1 (F) have knowingly, directly or indirectly, 

2 engaged in significant activities undermining 

3 cyber security for, in support of on behalf of, 

4 the Government of North Korea or any senior 

5 official thereof, or have knowingly contributed 

6 to the bribery of an official of the Government 

7 of North Korea, the misappropriation, theft, or 

8 embezzlement of public funds by, or for the 

9 benefit of, an official of the Government of 

10 North Korea, or the use of any proceeds of any 

11 such conduct; or 

12 (G) have knowingly and materially as13 sisted, sponsored, or provided significant finan14 cial, material, or technological support for, or 

15 goods or services to or in support of, the con16 duct described in subparagraphs (A) through 

17 (F) of this paragraph or the conduct described 

18 in subparagraphs (A) through (G) of subsection 

19 (a)(1). 

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

21 any person designated under this subsection, the 

22 President— 

23 (A) may apply the sanctions described in 

24 section 204; 


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1 (B) may apply any of the special measures 

2 described in section 5318A of title 31, United 

3 States Code; 

4 (C) may prohibit any transactions in for5 eign exchange that are subject to the jurisdic6 tion of the United States and in which such 

7 person has any interest; 

8 (D) may prohibit any transfers of credit or 

9 payments between financial institutions or by, 

10 through, or to any financial institution, to the 

11 extent that such transfers or payments are sub12 ject to the jurisdiction of the United States and 

13 involve any interest of the person; and 

14 (E) may exercise the authorities of the 

15 International Emergency Economic Powers Act 

16 (50 U.S.C. 1705 et seq.) without regard to sec17 tion 202 of such Act to block any property and 

18 interests in property of any person designated 

19 under this subsection that are in the United 

20 States, that hereafter come within the United 

21 States, or that are or hereafter come within the 

22 possession or control of any United States per23 son, including any overseas branch. 

24 (3) LIMITATION.—If the President determines 

25 that a person has engaged in any conduct described 


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1 in subparagraphs (A) through (F) of paragraph (1) 

2 that may also be construed to constitute conduct de3 scribed in subparagraphs (A) through (H) of sub4 section (a)(1), the President may not designate the 

5 person under this subsection but rather shall des6 ignate the person under subsection (a). 

7 (c) BLOCKING OF ALL PROPERTY AND INTERESTS

8 IN PROPERTY OF THE GOVERNMENT OF NORTH KOREA

9 AND THE WORKER’S PARTY OF KOREA.—Except as pro10 vided in section 207, the President shall exercise the au11 thorities of the International Emergency Economic Pow12 ers Act (50 U.S.C. 1705 et seq.) to block all property and 

13 interests in property of the Government of North Korea 

14 or the Worker’s Party of Korea that on or after the date 

15 of the enactment of this Act come within the United 

16 States, or that come within the possession or control of 

17 any United States person, including any overseas branch. 

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

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

20 and interests in property under subsection (c) shall also 

21 apply with respect to a person who is determined to be 

22 owned or controlled by, or to have acted or purported to 

23 act for or on behalf of, directly or indirectly, any person 

24 whose property and interests in property are blocked pur25 suant to this section. 


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1 (e) LICENSING.— 

2 (1) LICENSE REQUIRED.—Not later than 180 

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

4 President shall promulgate regulations prohibiting 

5 United States persons from engaging in any trans6 action involving any property— 

7 (A) in which the Government of North 

8 Korea has an interest; 

9 (B) located in North Korea; 

10 (C) of North Korean origin; or 

11 (D) knowingly transferred, directly or indi12 rectly, to the Government of North Korea. 

13 (2) TRANSACTION LICENSING.—The President 

14 shall deny or revoke any license for any transaction 

15 that, in the determination of the President, lacks 

16 sufficient financial controls to ensure that such 

17 transaction will not facilitate any of the conduct de18 scribed in subsection (a) or subsection (b). 

19 (3) LICENSING AUTHORIZATION.— 

20 (A) IN GENERAL.—Subject to subpara21 graph (B), the President may issue regulations 

22 to authorize— 

23 (i) transactions for the purposes de24 scribed in section 207; and 


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1 (ii) transactions and activities author2 ized under North Korean Human Rights 

3 Act of 2004 (22 U.S.C. 7801 et seq.). 

4 (B) PROHIBITION.—The President may 

5 not issue regulations to authorize transactions 

6 under clause (i) or (ii) of subparagraph (A) if 

7 such transactions include any transactions with 

8 the Government of North Korea. 

9 SEC. 105. FORFEITURE OF PROPERTY. 

10 (a) AMENDMENT TO PROPERTY SUBJECT TO FOR11 FEITURE.—Section 981(a)(1) of title 18, United States 

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

13 subparagraph: 

14 ‘‘(I) Any property, real or personal, that is in15 volved in a violation or attempted violation, or which 

16 constitutes or is derived from proceeds traceable to 

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

18 Sanctions Enforcement Act of 2015.’’. 

19 (b) AMENDMENT TO DEFINITION OF CIVIL FOR20 FEITURE STATUTE.—Section 983(i)(2)(D) of title 18, 

21 United States Code, is amended— 

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

23 Economic Powers Act’’ and inserting ‘‘, the Inter24 national Emergency Economic Powers Act’’; and 


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

2 the following: ‘‘, or the North Korea Sanctions En3 forcement Act of 2015’’. 

4 (c) AMENDMENT TO DEFINITION OF SPECIFIED UN5 LAWFUL ACTIVITY.—Section 1956(c)(7)(D) of title 18, 

6 United States Code, is amended— 

7 (1) by striking ‘‘or section 92 of the Atomic 

8 Energy Act of 1954’’ and inserting ‘‘section 92 of 

9 the Atomic Energy Act of 1954’’; and 

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

11 section 104(a) of the North Korea Sanctions En12 forcement Act of 2015’’. 

13 TITLE II—SANCTIONS AGAINST 

14 NORTH KOREAN PROLIFERA15 TION, HUMAN RIGHTS 

16 ABUSES, ILLICIT ACTIVITIES, 

17 AND SIGNIFICANT ACTIVITIES 

18 UNDERMINING CYBER SECU19 RITY 

20 SEC. 201. DETERMINATIONS WITH RESPECT TO NORTH 

21 KOREA AS A JURISDICTION OF PRIMARY 

22 MONEY LAUNDERING CONCERN. 

23 (a) FINDINGS.—Congress makes the following find24 ings: 


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1 (1) The Undersecretary of the Treasury for 

2 Terrorism and Financial Intelligence, who is respon3 sible for safeguarding the financial system against il4 licit use, money laundering, terrorist financing, and 

5 the proliferation of weapons of mass destruction, has 

6 repeatedly expressed concern about North Korea’s 

7 misuse of the international financial system as fol8 lows: 

9 (A) In 2006, the Undersecretary stated 

10 that, given North Korea’s ‘‘counterfeiting of 

11 U.S. currency, narcotics trafficking and use of 

12 accounts worldwide to conduct proliferation-re13 lated transactions, the line between illicit and 

14 licit North Korean money is nearly invisible’’ 

15 and urged financial institutions worldwide to 

16 ‘‘think carefully about the risks of doing any 

17 North Korea-related business.’’. 

18 (B) In 2011, the Undersecretary stated 

19 that ‘‘North Korea remains intent on engaging 

20 in proliferation, selling arms as well as bringing 

21 in material,’’ and was ‘‘aggressively pursuing 

22 the effort to establish front companies.’’. 

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

24 reference to North Korea’s distribution of high25 quality counterfeit United States currency, that 


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

2 supernote into the international financial sys3 tem,’’ and that the Department of the Treasury 

4 would soon introduce new currency with im5 proved security features to protect against 

6 counterfeiting by the Government of North 

7 Korea. 

8 (2) The Financial Action Task Force, an inter9 governmental body whose purpose is to develop and 

10 promote national and international policies to com11 bat money laundering and terrorist financing, has 

12 repeatedly— 

13 (A) expressed concern at deficiencies in 

14 North Korea’s regimes to combat money laun15 dering and terrorist financing; 

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

17 action to address significant deficiencies in 

18 these regimes and the serious threat they pose 

19 to the integrity of the international financial 

20 system; 

21 (C) urged all jurisdictions to apply coun22 termeasures to protect the international finan23 cial system from ongoing and substantial money 

24 laundering and terrorist financing risks ema25 nating from North Korea; 


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1 (D) urged all jurisdictions to advise their 

2 financial institutions to give special attention to 

3 business relationships and transactions with 

4 North Korea, including North Korean compa5 nies and financial institutions; and 

6 (E) called on all jurisdictions to protect 

7 against correspondent relationships being used 

8 to bypass or evade countermeasures and risk 

9 mitigation practices, and take into account 

10 money laundering and terrorist financing risks 

11 when considering requests by North Korean fi12 nancial institutions to open branches and sub13 sidiaries in their jurisdiction. 

14 (3) On March 7, 2013, the United Nations Se15 curity Council unanimously adopted Resolution 

16 2094, which— 

17 (A) welcomed the Financial Action Task 

18 Force’s recommendation on financial sanctions 

19 related to proliferation, and its guidance on the 

20 implementation of sanctions; 

21 (B) decided that Member States should 

22 apply enhanced monitoring and other legal 

23 measures to prevent the provision of financial 

24 services or the transfer of property that could 

25 contribute to activities prohibited by applicable 


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1 United Nations Security Council resolutions; 

2 and 

3 (C) called on Member States to prohibit 

4 North Korean banks from establishing or main5 taining correspondent relationships with banks 

6 in their jurisdictions, to prevent the provision of 

7 financial services, if they have information that 

8 provides reasonable grounds to believe that 

9 these activities could contribute to activities 

10 prohibited by an applicable United Nations Se11 curity Council resolution, or to the evasion of 

12 such prohibitions. 

13 (b) SENSE OF CONGRESS REGARDING THE DESIGNA14 TION OF NORTH KOREA AS A JURISDICTION OF PRIMARY

15 MONEY LAUNDERING CONCERN.—Congress— 

16 (1) acknowledges the efforts of the United Na17 tions Security Council to impose limitations on, and 

18 require enhanced monitoring of, transactions involv19 ing North Korean financial institutions that could 

20 contribute to sanctioned activities; 

21 (2) urges the President, in the strongest terms, 

22 to immediately designate North Korea as a jurisdic23 tion of primary money laundering concern, and to 

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1 rea’s willful evasion of sanctions and its illicit activi2 ties; and 

3 (3) urges the President to seek the prompt im4 plementation by other states of enhanced monitoring 

5 and due diligence to prevent North Korea’s misuse 

6 of the international financial system, including by 

7 sharing information about activities, transactions, 

8 and property that could contribute to activities sanc9 tioned by applicable United Nations Security Council 

10 resolutions, or to the evasion of sanctions. 

11 (c) DETERMINATIONS REGARDING NORTH KOREA.— 

12 (1) IN GENERAL.—The Secretary of the Treas13 ury shall, not later than 180 days after the date of 

14 the enactment of this Act, determine, in consultation 

15 with the Secretary of State and Attorney General, 

16 and in accordance with section 5318A of title 31, 

17 United States Code, whether reasonable grounds 

18 exist for concluding that North Korea is a jurisdic19 tion of primary money laundering concern. 

20 (2) SPECIAL MEASURES.—If the Secretary of 

21 the Treasury determines under this subsection that 

22 reasonable grounds exist for finding that North 

23 Korea is a jurisdiction of primary money laundering 

24 concern, the Secretary of the Treasury, in consulta25 tion with the Federal functional regulators, shall imVerDate Sep 11 2014 22:57 Feb 12, 2015 Jkt 049200 PO 00000 Frm 00029 Fmt 6652 Sfmt 6201 E:\BILLS\H757.IH H757

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1 pose one or more of the special measures described 

2 in paragraphs (1) through (5) of section 5318A(b) 

3 of title 31, United States Code, with respect to the 

4 jurisdiction of North Korea. 

5 (3) REPORT REQUIRED.— 

6 (A) IN GENERAL.—If the Secretary of the 

7 Treasury determines that North Korea is a ju8 risdiction of primary money laundering concern, 

9 the Secretary of the Treasury shall, not later 

10 than 90 days after the date on which the Sec11 retary makes such determination, submit to the 

12 appropriate congressional committees a report 

13 on the determination made under paragraph (1) 

14 together with the reasons for that determina15 tion. 

16 (B) FORM.—A report or copy of any re17 port submitted under this paragraph shall be 

18 submitted in unclassified form but may contain 

19 a classified annex. 

20 SEC. 202. ENSURING THE CONSISTENT ENFORCEMENT OF 

21 UNITED NATIONS SECURITY COUNCIL RESO22 LUTIONS AND FINANCIAL RESTRICTIONS ON 

23 NORTH KOREA. 

24 (a) FINDINGS.—Congress finds that— 


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1 (1) all states and jurisdictions are obligated to 

2 implement and enforce applicable United Nations 

3 Security Council resolutions fully and promptly, in4 cluding by— 

5 (A) blocking the property of, and ensuring 

6 that any property is prevented from being made 

7 available to, persons designated by the Security 

8 Council under applicable United Nations Secu9 rity Council resolutions; 

10 (B) blocking any property associated with 

11 an activity prohibited by applicable United Na12 tions Security Council resolutions; and 

13 (C) preventing any transfer of property 

14 and any provision of financial services that 

15 could contribute to an activity prohibited by ap16 plicable United Nations Security Council resolu17 tions, or to the evasion of sanctions under such 

18 resolutions; 

19 (2) all states and jurisdictions share a common 

20 interest in protecting the international financial sys21 tem from the risks of money laundering and illicit 

22 transactions emanating from North Korea; 

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

24 the world’s principal reserve currencies, and the 

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1 marily responsible for the protection of the inter2 national financial system from these risks; 

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

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

5 is essential to the enforcement of applicable United 

6 Nations Security Council resolutions and to the pro7 tection of the international financial system; 

8 (5) the report of the Panel of Experts estab9 lished pursuant to United Nations Security Council 

10 Resolution 1874, dated June 11, 2013, expressed 

11 concern about the ability of banks in states with less 

12 effective regulators and those unable to afford effec13 tive compliance to detect and prevent illicit transfers 

14 involving North Korea; 

15 (6) North Korea has historically exploited in16 consistencies between jurisdictions in the interpreta17 tion and enforcement of financial regulations and 

18 applicable United Nations Security Council resolu19 tions to circumvent sanctions and launder the pro20 ceeds of illicit activities; 

21 (7) Amroggang Development Bank, Bank of 

22 East Land, and Tanchon Commercial Bank have 

23 been designated by the Secretary of the Treasury, 

24 the United Nations Security Council, and the Euro25 pean Union; 


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1 (8) Korea Daesong Bank and Korea Kwangson 

2 Banking Corporation have been designated by the 

3 Secretary of the Treasury and the European Union; 

4 (9) the Foreign Trade Bank of North Korea 

5 has been designated by the Secretary of the Treas6 ury for facilitating transactions on behalf of persons 

7 linked to its proliferation network, and for serving as 

8 ‘‘a key financial node’’; and 

9 (10) Daedong Credit Bank has been designated 

10 by the Secretary of the Treasury for activities pro11 hibited by applicable United Nations Security Coun12 cil resolutions, including the use of deceptive finan13 cial practices to facilitate transactions on behalf of 

14 persons linked to North Korea’s proliferation net15 work. 

16 (b) SENSE OF CONGRESS.—It is the sense of Con17 gress that the President should intensify diplomatic ef18 forts, both in appropriate international fora such as the 

19 United Nations and bilaterally, to develop and implement 

20 a coordinated, consistent, multilateral strategy for pro21 tecting the global financial system against risks emanating 

22 from North Korea, including— 

23 (1) the cessation of any financial services whose 

24 continuation is inconsistent with applicable United 

25 Nations Security Council resolutions; 


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1 (2) the cessation of any financial services to 

2 persons, including financial institutions, that present 

3 unacceptable risks of facilitating money laundering 

4 and illicit activity by the Government of North 

5 Korea; 

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

7 in accordance with the legal process of the state or 

8 jurisdiction in which the property is held, of any 

9 property required to be blocked under applicable 

10 United Nations Security Council resolutions; 

11 (4) the blocking of any property derived from il12 licit activity, from significant activities undermining 

13 cyber security, from the misappropriation, theft, or 

14 embezzlement of public funds by, or for the benefit 

15 of, officials of the Government of North Korea; 

16 (5) the blocking of any property involved in sig17 nificant activities undermining cyber security by the 

18 Government of North Korea, directly or indirectly, 

19 against United States persons, or the theft of intel20 lectual property by the Government of North Korea, 

21 directly or indirectly from United States persons; 

22 and 

23 (6) the blocking of any property of persons di24 rectly or indirectly involved in censorship or human 

25 rights abuses by the Government of North Korea. 


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1 SEC. 203. PROLIFERATION PREVENTION SANCTIONS. 

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

3 (1) IN GENERAL.—Subject to section 

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

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

9 State has designated North Korea as a country the 

10 government of which has provided support for acts 

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

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

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

17 the export to North Korea of any goods or tech18 nology as described in paragraph (1) shall be subject 

19 to a presumption of denial. 

20 (b) TRANSACTIONS WITH COUNTRIES SUPPORTING

21 ACTS OF INTERNATIONAL TERRORISM.— 

22 (1) ARMS EXPORT CONTROL ACT PROHIBI23 TIONS.—The prohibitions and restrictions described 

24 in section 40 of the Arms Export Control Act (22 

25 U.S.C. 2780), and other provisions provided for in 

26 that Act, shall also apply to exporting or otherwise 


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1 providing (by sale, lease or loan, grant, or other 

2 means), directly or indirectly, any munitions item to 

3 the Government of North Korea without regard to 

4 whether or not North Korea is a country with re5 spect to which subsection (d) of such section (relat6 ing to designation of state sponsors of terrorism) ap7 plies. 

8 (2) FINANCIAL TRANSACTIONS.—Except as pro9 vided in section 207 of this Act and the North Ko10 rean Human Rights Act of 2004 (22 U.S.C. 7801 

11 et seq.), the penalties provided for in section 2332d 

12 of title 18, United States Code, shall apply to a 

13 United States person that engages in a financial 

14 transaction with the Government of North Korea on 

15 or after the date of the enactment of this Act to the 

16 same extent that such penalties apply to a United 

17 States citizen that commits an unlawful act de18 scribed in section 2332d of title 18, United States 

19 Code. 

20 (c) TRANSACTIONS IN LETHAL MILITARY EQUIP21 MENT.— 

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

23 assistance under the Foreign Assistance Act of 1961 

24 (22 U.S.C. 2151 et seq.) to any country that pro25 vides lethal military equipment to, or receives lethal 


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1 military equipment from, the Government of North 

2 Korea. 

3 (2) APPLICABILITY.—The prohibition under 

4 this subsection with respect to a country shall termi5 nate on the date that is 1 year after the date on 

6 which such country ceases to provide lethal military 

7 equipment to the Government of North Korea. 

8 (3) WAIVER.—The President may, on a case9 by-case basis, waive the prohibition under this sub10 section with respect to a country for a period of not 

11 more than 180 days, and may renew the waiver for 

12 additional periods of not more than 180 days, if the 

13 President determines and so reports to the appro14 priate congressional committees that it is vital to the 

15 national security interests of the United States to 

16 exercise such waiver authority. 

17 SEC. 204. PROCUREMENT SANCTIONS. 

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

19 the United States Government may not procure, or enter 

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

21 services from any designated person. 

22 (b) FAR.—The Federal Acquisition Regulation 

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

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

25 person that is a prospective contractor that such person 


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1 does not engage in any of the conduct described in sub2 section (a) or (b) of section 104. Such revision shall apply 

3 with respect to contracts in an amount greater than the 

4 simplified acquisition threshold (as defined in section 134 

5 of title 41, United States Code) for which solicitations are 

6 issued on or after the date that is 90 days after the date 

7 of the enactment of this Act. 

8 (c) TERMINATION OF CONTRACTS AND INITIATION

9 OF SUSPENSION AND DEBARMENT PROCEEDING.— 

10 (1) TERMINATION OF CONTRACTS.—Except as 

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

12 agency shall terminate a contract with a person who 

13 has provided a false certification under subsection 

14 (b). 

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

16 may waive the requirement under paragraph (1) 

17 with respect to a person based upon a written find18 ing of urgent and compelling circumstances signifi19 cantly affecting the interests of the United States. If 

20 the head of an executive agency waives the require21 ment under paragraph (1) for a person, the head of 

22 the agency shall submit to the appropriate congres23 sional committees, within 30 days after the waiver is 

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1 er and relevant information supporting the waiver 

2 decision. 

3 (3) INITIATION OF SUSPENSION AND DEBAR4 MENT PROCEEDING.—The head of an executive 

5 agency shall initiate a suspension and debarment 

6 proceeding against a person who has provided a 

7 false certification under subsection (b). Upon deter8 mination of suspension, debarment, or proposed de9 barment, the agency shall ensure that such person 

10 is entered into the Governmentwide database con11 taining the list of all excluded parties ineligible for 

12 Federal programs pursuant to Executive Order No. 

13 12549 (31 U.S.C. 6101 note; relating to debarment 

14 and suspension) and Executive Order No. 12689 (31 

15 U.S.C. 6101 note; relating to debarment and sus16 pension). 

17 (d) CLARIFICATION REGARDING CERTAIN PROD18 UCTS.—The remedies specified in subsections (a) through 

19 (c) shall not apply with respect to the procurement of eligi20 ble products, as defined in section 308(4) of the Trade 

21 Agreements Act of 1979 (19 U.S.C. 2518(4)), of any for22 eign country or instrumentality designated under section 

23 301(b) of such Act (19 U.S.C. 2511(b)). 

24 (e) RULE OF CONSTRUCTION.—Nothing in this sub25 section may be construed to limit the use of other remedies 


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

2 official of the Federal Government on the basis of a deter3 mination of a false certification under subsection (b). 

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

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

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

7 SEC. 205. ENHANCED INSPECTIONS AUTHORITIES. 

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

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

10 days thereafter, the President, acting through the Sec11 retary of Homeland Security, shall submit to the appro12 priate congressional committees, the Committee on Home13 land Security of the House of Representatives, and the 

14 Committee on Homeland Security and Governmental Af15 fairs of the Senate, a report identifying foreign sea ports 

16 and airports whose inspections of ships, aircraft, and con17 veyances originating in North Korea, carrying North Ko18 rean property, or operated by the Government of North 

19 Korea are deficient to effectively prevent the facilitation 

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

21 (b) ENHANCED SECURITY TARGETING REQUIRE22 MENTS.—Not later than 180 days after the identification 

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

24 Secretary of Homeland Security shall, utilizing the Auto25 mated Targeting System operated by the National TarVerDate Sep 11 2014 22:57 Feb 12, 2015 Jkt 049200 PO 00000 Frm 00040 Fmt 6652 Sfmt 6201 E:\BILLS\H757.IH H757

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1 geting Center in U.S. Customs and Border Protection, re2 quire enhanced screening procedures to determine if phys3 ical inspections are warranted of any cargo bound for or 

4 landed in the United States that has been transported 

5 through such sea port or airport if there are reasonable 

6 grounds to believe that such cargo contains goods prohib7 ited under this Act. 

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

9 or conveyance used to facilitate any of the activities de10 scribed in section 104(a) that comes within the jurisdic11 tion of the United States may be seized and forfeited 

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

13 the Tariff Act of 1930. 

14 SEC. 206. TRAVEL SANCTIONS. 

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

16 PAROLE.— 

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

18 (or an alien who is a corporate officer of a person 

19 (as defined in subparagraph (B) or (C) of section 

20 3(11))) who the Secretary of State or the Secretary 

21 of Homeland Security (or a designee of one of such 

22 Secretaries) knows, or has reasonable grounds to be23 lieve, is described in subsection (a)(1) or (b)(1) of 

24 section 104 is— 

25 (A) inadmissible to the United States; 


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1 (B) ineligible to receive a visa or other doc2 umentation to enter the United States; and 

3 (C) otherwise ineligible to be admitted or 

4 paroled into the United States or to receive any 

5 other benefit under the Immigration and Na6 tionality Act (8 U.S.C. 1101 et seq.). 

7 (2) CURRENT VISAS REVOKED.— 

8 (A) IN GENERAL.—The issuing consular 

9 officer, the Secretary of State, or the Secretary 

10 of Homeland Security (or a designee of one of 

11 such Secretaries) shall revoke any visa or other 

12 entry documentation issued to an alien who is 

13 described in subsection (a)(1) or (b)(1) of sec14 tion 104 regardless of when issued. 

15 (B) EFFECT OF REVOCATION.—A revoca16 tion under subparagraph (A)— 

17 (i) shall take effect immediately; and 

18 (ii) shall automatically cancel any 

19 other valid visa or entry documentation 

20 that is in the alien’s possession. 

21 (b) EXCEPTION TO COMPLY WITH UNITED NATIONS

22 HEADQUARTERS AGREEMENT.—Sanctions under sub23 section (a)(1)(B) shall not apply to an alien if admitting 

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

25 United States to comply with the Agreement regarding the 


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1 Headquarters of the United Nations, signed at Lake Suc2 cess June 26, 1947, and entered into force November 21, 

3 1947, between the United Nations and the United States, 

4 or other applicable international obligations. 

5 SEC. 207. EXEMPTIONS, WAIVERS, AND REMOVALS OF DES6 IGNATION. 

7 (a) EXEMPTIONS.— 

8 (1) MANDATORY EXEMPTIONS.—The following 

9 activities shall be exempt from sanctions under sec10 tion 104: 

11 (A) Activities subject to the reporting re12 quirements of title V of the National Security 

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

14 authorized intelligence activities of the United 

15 States. 

16 (B) Any transaction necessary to comply 

17 with United States obligations under the Agree18 ment between the United Nations and the 

19 United States of America regarding the Head20 quarters of the United Nations, signed June 

21 26, 1947, and entered into force on November 

22 21, 1947, or under the Vienna Convention on 

23 Consular Relations, signed April 24, 1963, and 

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

25 other international agreements. 


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1 (2) DISCRETIONARY EXEMPTIONS.—The fol2 lowing activities may be exempt from sanctions 

3 under section 104 as determined by the President: 

4 (A) Any financial transaction the exclusive 

5 purpose for which is to provide humanitarian 

6 assistance to the people of North Korea. 

7 (B) Any financial transaction the exclusive 

8 purpose for which is to import food products 

9 into North Korea, if such food items are not de10 fined as luxury goods. 

11 (C) Any transaction the exclusive purpose 

12 for which is to import agricultural products, 

13 medicine, or medical devices into North Korea, 

14 provided that such supplies or equipment are 

15 classified as designated ‘‘EAR 99’’ under the 

16 Export Administration Regulations (part 730 of 

17 title 15, Code of Federal Regulations) and not 

18 controlled under— 

19 (i) the Export Administration Act of 

20 1979 (50 U.S.C. App. 2401 et seq.), as 

21 continued in effect under the International 

22 Emergency Economic Powers Act (50 

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

24 (ii) the Arms Export Control Act (22 

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


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1 (iii) part B of title VIII of the Nu2 clear Proliferation Prevention Act of 1994 

3 (22 U.S.C. 6301 et seq.); or 

4 (iv) the Chemical and Biological 

5 Weapons Control and Warfare Elimination 

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

7 (b) WAIVER.—The President may waive, on a case8 by-case basis, the imposition of sanctions for a period of 

9 not more than one year, and may renew that waiver for 

10 additional periods of not more than one year, any sanction 

11 or other measure under section 104, 204, 205, 206, or 

12 303 if the President submits to the appropriate congres13 sional committees a written determination that the waiver 

14 meets one or more of the following requirements: 

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

16 national security interests of the United States. 

17 (2) The waiver will further the enforcement of 

18 this Act or is for an important law enforcement pur19 pose. 

20 (3) The waiver is for an important humani21 tarian purpose, including any of the purposes de22 scribed in section 4 of the North Korean Human 

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

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

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1 tions on a person that is designated under subsection (a) 

2 or (b) of section 104 and the removal of designations of 

3 a person with respect to such sanctions if the President 

4 determines that the designated person has verifiably 

5 ceased its participation in any of the conduct described 

6 in subsection (a) or (b) of section 104, as the case may 

7 be, and has given assurances that it will abide by the re8 quirements of this Act. 

9 (d) FINANCIAL SERVICES FOR CERTAIN ACTIVI10 TIES.—The President may promulgate regulations, rules, 

11 and policies as may be necessary to facilitate the provision 

12 of financial services by a foreign financial institution that 

13 is not controlled by the Government of North Korea in 

14 support of the activities subject to exemption under this 

15 section. 

16 SEC. 208. REPORT ON THOSE RESPONSIBLE FOR KNOW17 INGLY ENGAGING IN SIGNIFICANT ACTIVI18 TIES UNDERMINING CYBER SECURITY. 

19 (a) IN GENERAL.—The President shall submit to the 

20 appropriate congressional committees a report on signifi21 cant activities undermining cyber security conducted, or 

22 otherwise ordered or controlled, directly or indirectly, by 

23 the Government of North Korea, including— 

24 (1) the identity and nationality of persons that 

25 have knowingly engaged in, directed, or provided 


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1 material support to significant activities under2 mining cyber security by the Government of North 

3 Korea; 

4 (2) the conduct engaged in by each person iden5 tified; 

6 (3) the extent to which a foreign government 

7 has provided material support to significant activi8 ties undermining cyber security conducted, or other9 wise ordered or controlled by, the Government of 

10 North Korea; and 

11 (4) the efforts made by the United States to en12 gage foreign governments to halt the capability of 

13 North Korea to conduct significant activities under14 mining cyber security. 

15 (b) SUBMISSION AND FORM.— 

16 (1) SUBMISSION.—The report required under 

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

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

19 every 180 days thereafter for a period not to exceed 

20 3 years. 

21 (2) FORM.—The report required under sub22 section (a) shall be submitted in an unclassified 

23 form, but may contain a classified annex. 


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1 TITLE III—PROMOTION OF 

2 HUMAN RIGHTS 

3 SEC. 301. INFORMATION TECHNOLOGY. 

4 Section 104 of the North Korean Human Rights Act 

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

6 subsection (c) the following new subsection: 

7 ‘‘(d) INFORMATION TECHNOLOGY STUDY.— 

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

9 after the date of the enactment of this subsection, 

10 the President shall submit to the appropriate con11 gressional committees a report setting forth a de12 tailed plan for making unrestricted, unmonitored, 

13 and inexpensive, radio, Internet, and electronic mass 

14 communications available to the people of North 

15 Korea. 

16 ‘‘(2) FORM.—The report required by paragraph 

17 (1) shall be submitted in unclassified form, but may 

18 contain a classified annex.’’. 

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

20 (a) IN GENERAL.—The Secretary of State shall sub21 mit to the appropriate congressional committees a report 

22 describing, with respect to each political prison camp in 

23 North Korea to the extent information is available— 

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

25 (2) the camp’s geographical coordinates; 


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1 (3) the reasons for confinement of the pris2 oners; 

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

4 and the end users of any goods produced in such 

5 camp; 

6 (5) the natural persons and agencies respon7 sible for conditions in the camp; 

8 (6) the conditions under which prisoners are 

9 confined, with respect to the adequacy of food, shel10 ter, medical care, working conditions, and reports of 

11 ill-treatment of prisoners; and 

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

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

14 compromise the sources and methods used by the in15 telligence agencies of the United States to capture 

16 geospatial imagery. 

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

18 may be included in the first report required to be sub19 mitted to Congress after the date of the enactment of this 

20 Act under sections 116(d) and 502B(b) of the Foreign As21 sistance Act of 1961 (22 U.S.C. 2151n(d) and 2304(b)) 

22 (relating to the annual human rights report). 


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1 SEC. 303. REPORT ON PERSONS WHO ARE RESPONSIBLE 

2 FOR SERIOUS HUMAN RIGHTS ABUSES OR 

3 CENSORSHIP IN NORTH KOREA. 

4 (a) IN GENERAL.—The Secretary of State shall sub5 mit to the appropriate congressional committees a report 

6 that contains an identification of each person the Sec7 retary determines to be responsible for serious human 

8 rights abuses or censorship in North Korea and a descrip9 tion of such abuses or censorship engaged in by such per10 son. 

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

13 give due consideration to the findings of the United Na14 tions Commission of Inquiry on Human Rights in North 

15 Korea, and shall make specific findings with respect to 

16 the responsibility of Kim Jong Un, and of each natural 

17 person who is a member of the National Defense Commis18 sion of North Korea, or the Organization and Guidance 

19 Department of the Workers’ Party of Korea, for serious 

20 human rights abuses and censorship. 

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

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

23 report required under subsection (a) as responsible for se24 rious human rights abuses or censorship in North Korea. 

25 (d) SUBMISSION AND FORM.— 


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1 (1) SUBMISSION.—The report required under 

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

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

4 every 180 days thereafter for a period not to exceed 

5 3 years, shall be included in each report required 

6 under sections 116(d) and 502B(b) of the Foreign 

7 Assistance Act of 1961 (22 U.S.C. 2151n(d) and 

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

10 (2) FORM.—The report required under 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 Web site. 

15 TITLE IV—GENERAL 

16 AUTHORITIES 

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

19 (a) IN GENERAL.—Any sanction or other measure 

20 provided for in title I (or any amendment made by title 

21 I) or title II may be suspended for up to 365 days upon 

22 certification by the President to the appropriate congres23 sional committees that the Government of North Korea 

24 has— 


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1 (1) verifiably ceased its counterfeiting of United 

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

4 or particularly suitable for counterfeiting; 

5 (2) taken significant steps toward financial 

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

9 (3) taken significant steps toward verification 

10 of its compliance with United Nations Security 

11 Council Resolutions 1695, 1718, 1874, 2087, and 

12 2094; 

13 (4) taken significant steps toward accounting 

14 for and repatriating the citizens of other countries 

15 abducted or unlawfully held captive by the Govern16 ment of North Korea or detained in violation of the 

17 1953 Armistice Agreement; 

18 (5) accepted and begun to abide by internation19 ally recognized standards for the distribution and 

20 monitoring of humanitarian aid; 

21 (6) provided credible assurances that it will not 

22 support further acts of international terrorism; 

23 (7) taken significant and verified steps to im24 prove living conditions in its political prison camps; 

25 and 


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1 (8) made significant progress in planning for 

2 unrestricted family reunification meetings, including 

3 for those individuals among the two million strong 

4 Korean-American community who maintain family 

5 ties with relatives in North Korea. 

6 (b) RENEWAL OF SUSPENSION.—The suspension de7 scribed in subsection (a) may be renewed for additional 

8 consecutive periods of 180 days upon certification by the 

9 President to the appropriate congressional committees 

10 that the Government of North Korea has continued to 

11 comply with the conditions described in subsection (a) dur12 ing the previous year. 

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

15 Any sanction or other measure provided for in title 

16 I (or any amendment made by title I) or title II shall ter17 minate on the date on which the President determines and 

18 certifies to the appropriate congressional committees that 

19 the Government of North Korea has met the requirements 

20 of section 401, and has also— 

21 (1) completely, verifiably, and irreversibly dis22 mantled all of its nuclear, chemical, biological, and 

23 radiological weapons programs, including all pro24 grams for the development of systems designed in 

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


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1 (2) released all political prisoners, including the 

2 citizens of North Korea detained in North Korea’s 

3 political prison camps; 

4 (3) ceased its censorship of peaceful political 

5 activity; 

6 (4) taken significant steps toward the establish7 ment of an open, transparent, and representative so8 ciety; 

9 (5) fully accounted for and repatriated all citi10 zens of all nations abducted or unlawfully held cap11 tive by the Government of North Korea or detained 

12 in violation of the 1953 Armistice Agreement; and 

13 (6) agreed with the Financial Action Task 

14 Force on a plan of action to address deficiencies in 

15 its anti-money laundering regime and begun to im16 plement this plan of action. 

17 SEC. 403. AUTHORITY TO CONSOLIDATE REPORTS. 

18 Any or all reports required to be submitted to appro19 priate congressional committees under this Act or any 

20 amendment made by this Act that are subject to a dead21 line for submission consisting of the same unit of time may 

22 be consolidated into a single report that is submitted to 

23 appropriate congressional committees pursuant to such 

24 deadline. 


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1 SEC. 404. REGULATIONS. 

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

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

5 include regulatory exceptions), including under sections 

6 203 and 205 of the International Emergency Economic 

7 Powers Act (50 U.S.C. 1702 and 1704). 

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

9 or any amendment made by this Act shall be construed 

10 to limit the authority of the President pursuant to an ap11 plicable Executive order or otherwise pursuant to the 

12 International Emergency Economic Powers Act (50 

13 U.S.C. 1701 et seq.). 

14 SEC. 405. EFFECTIVE DATE. 

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

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

17 date of the enactment of this Act. 

Æ 


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