IIB 

114TH CONGRESS 

2D SESSION H. R. 757 

IN THE SENATE OF THE UNITED STATES 

JANUARY 19, 2016 

Received; read twice and referred to the Committee on Foreign Relations 

AN ACT 

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, 


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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

3 ‘‘North Korea Sanctions Enforcement Act of 2016’’. 

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

5 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Findings. 

Sec. 3. Definitions. 

TITLE I—INVESTIGATIONS, PROHIBITED CONDUCT, AND 

PENALTIES 

Sec. 101. Statement of policy. 

Sec. 102. Investigations. 

Sec. 103. Briefing to Congress. 

Sec. 104. 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. 

Sec. 209. Sense of Congress that trilateral cooperation among the United 

States, Japan, and the Republic of Korea is crucial to the stability of the Asia-Pacific region. 

Sec. 210. Report on nuclear program cooperation between North Korea and 

Iran. 

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. 


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Sec. 403. Authority to consolidate reports. 

Sec. 404. Regulations. 

Sec. 405. No additional funds authorized. 

Sec. 406. 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 

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

9 production of weapons of mass destruction. 

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

12 mass destruction. 

13 (3) The Government of North Korea has been 

14 implicated repeatedly in money laundering and illicit 

15 activities, including prohibited arms sales, narcotics 

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

18 of United States persons. 

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

20 historically and recently, repeatedly sponsored acts 

21 of international terrorism, including attempts to as22 sassinate defectors and human rights activists, re23 peated threats of violence against foreign persons, 


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

2 weapons to terrorists and state sponsors of ter3 rorism. 

4 (5) North Korea has unilaterally withdrawn 

5 from the 1953 Armistice Agreement that ended the 

6 Korean War, and committed provocations against 

7 South Korea in 2010 by sinking the warship 

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

9 Yeonpyeong Island, killing four South Koreans. 

10 (6) North Korea maintains a system of brutal 

11 political prison camps that contain as many as 

12 120,000 men, women, and children, who live in atro13 cious living conditions with insufficient food, cloth14 ing, and medical care, and under constant fear of 

15 torture or arbitrary execution. 

16 (7) The Congress reaffirms the purposes of the 

17 North Korean Human Rights Act of 2004 contained 

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

19 (8) North Korea has prioritized weapons pro20 grams and the procurement of luxury goods, in defi21 ance of United Nations Security Council resolutions, 

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

23 (9) The President has determined that the Gov24 ernment of North Korea is responsible for knowingly 

25 engaging in significant activities undermining cyber 


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1 security with respect to United States persons and 

2 interests, and for threats of violence against the ci3 vilian population of the United States. 

4 (10) Persons, including financial institutions, 

5 who engage in transactions with, or provide financial 

6 services to, the Government of North Korea and its 

7 financial institutions without establishing sufficient 

8 financial safeguards against North Korea’s use of 

9 these transactions to promote proliferation, weapons 

10 trafficking, human rights violations, illicit activity, 

11 and the purchase of luxury goods, aid and abet 

12 North Korea’s misuse of the international financial 

13 system, and also violate the intent of relevant United 

14 Nations Security Council resolutions. 

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

16 poses an imminent threat to the security of the 

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

18 to the safety of members of the United States 

19 Armed Forces, to the integrity of the global financial 

20 system, to the integrity of global nonproliferation 

21 programs, and to the people of North Korea. 

22 (12) The Congress seeks, through this legisla23 tion, to use nonmilitary means to address this crisis, 

24 to provide diplomatic leverage to negotiate necessary 


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

2 suffering of the people of North Korea. 

3 SEC. 3. DEFINITIONS. 

4 In this Act: 

5 (1) APPLICABLE EXECUTIVE ORDER.—The 

6 term ‘‘applicable Executive order’’ means— 

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

8 13466 (2008), 13551 (2010), 13570 (2011), or 

9 13687 (2015) to the extent that such Executive 

10 order authorizes the imposition of sanctions on 

11 persons for conduct, or prohibits transactions 

12 or activities, involving the Government of North 

13 Korea; or 

14 (B) any Executive order adopted on or 

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

16 the extent that such Executive order authorizes 

17 the imposition of sanctions on persons for con18 duct, or prohibits transactions or activities, in19 volving the Government of North Korea. 

20 (2) APPLICABLE UNITED NATIONS SECURITY

21 COUNCIL RESOLUTION.—The term ‘‘applicable 

22 United Nations Security Council resolution’’ 

23 means— 


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1 (A) United Nations Security Council Reso2 lution 1695 (2006), 1718 (2006), 1874 (2009), 

3 2087 (2013), or 2094 (2013); or 

4 (B) any United Nations Security Council 

5 resolution adopted on or after the date of the 

6 enactment of this Act, to the extent that such 

7 resolution authorizes the imposition of sanctions 

8 on persons for conduct, or prohibits trans9 actions or activities, involving the Government 

10 of North Korea. 

11 (3) APPROPRIATE CONGRESSIONAL COMMIT12 TEES.—The term ‘‘appropriate congressional com13 mittees’’ means— 

14 (A) the Committee on Foreign Affairs, the 

15 Committee on Ways and Means, and the Com16 mittee on Financial Services of the House of 

17 Representatives; and 

18 (B) the Committee on Foreign Relations 

19 and the Committee on Banking, Housing, and 

20 Urban Affairs of the Senate. 

21 (4) DESIGNATED PERSON.—The term ‘‘des22 ignated person’’ means a person designated under 

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

24 applying one or more of the sanctions described in 

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


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1 (5) GOVERNMENT OF NORTH KOREA.—The 

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

3 (A) the Government of the Democratic 

4 People’s Republic of Korea or any political sub5 division, agency, or instrumentality thereof; and 

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

7 acting for or on behalf of, the Government of 

8 the Democratic People’s Republic of Korea. 

9 (6) INTERNATIONAL TERRORISM.—The term 

10 ‘‘international terrorism’’ has the meaning given 

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

12 Authorization Act, Fiscal Years 1988 and 1989 (22 

13 U.S.C. 2656f(d)), and includes the conduct de14 scribed in section 212(a)(3)(B)(iii) of the Immigra15 tion and Nationality Act (8 U.S.C. 

16 1182(a)(3)(B)(iii)), to the extent such conduct in17 volves the citizens of more than one country. 

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

19 has the meaning given such term in subpart 746.4 

20 of title 15, Code of Federal Regulations, and in21 cludes the items listed in Supplement No. 1 to such 

22 regulation, and any similar items. 

23 (8) MONETARY INSTRUMENT.—The term ‘‘mon24 etary instrument’’ has the meaning given such term 

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


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1 (9) NORTH KOREAN FINANCIAL INSTITUTION.— 

2 The term ‘‘North Korean financial institution’’ 

3 means— 

4 (A) a financial institution organized under 

5 the laws of North Korea or any jurisdiction 

6 within North Korea (including a foreign branch 

7 of such institution); 

8 (B) any financial institution located in 

9 North Korea, except as may be excluded from 

10 such definition by the President in accordance 

11 with section 207(d); 

12 (C) any financial institution, wherever lo13 cated, owned or controlled by the Government 

14 of North Korea; and 

15 (D) any financial institution, wherever lo16 cated, owned or controlled by a financial insti17 tution described in subparagraph (A), (B), or 

18 (C). 

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

20 ‘‘other stores of value’’ means— 

21 (A) prepaid access devices, tangible or in22 tangible prepaid access devices, or other instru23 ments or devices for the storage or transmission 

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

25 Code of Federal Regulations; and 


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1 (B) any covered goods, as defined in sec2 tion 1027.100 of title 31, Code of Federal Reg3 ulations, and any instrument or tangible or in4 tangible access device used for the storage and 

5 transmission of a representation of covered 

6 goods, or other device, as defined in section 

7 1027.100 of title 31, Code of Federal Regula8 tions. 

9 (11) PERSON.—The term ‘‘person’’ has the 

10 meaning given such term in section 510.306 of title 

11 31, Code of Federal Regulations. 

12 (12) SIGNIFICANT ACTIVITIES UNDERMINING

13 CYBER SECURITY.—The term ‘‘significant activities 

14 undermining cyber security’’ means— 

15 (A) significant efforts to— 

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

17 or destroy an information and communica18 tions technology system or network; or 

19 (ii) exfiltrate information from such a 

20 system or network without authorization; 

21 (B) significant destructive malware at22 tacks; 

23 (C) significant denial of service activities; 

24 or 


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1 (D) such other significant activities as may 

2 be described in regulations promulgated to im3 plement section 104. 

4 (13) UNITED STATES PERSON.—The term 

5 ‘‘United States person’’ has the meaning given such 

6 term in section 510.311 of title 31, Code of Federal 

7 Regulations. 

8 TITLE I—INVESTIGATIONS, PRO9 HIBITED CONDUCT, AND PEN10 ALTIES 

11 SEC. 101. STATEMENT OF POLICY. 

12 In order to achieve the peaceful disarmament of 

13 North Korea, Congress finds that it is necessary— 

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

15 implement United Nations Security Council Resolu16 tion 2094 (2013); 

17 (2) to sanction— 

18 (A) persons that facilitate proliferation of 

19 weapons of mass destruction, illicit activities, 

20 arms trafficking, imports of luxury goods, cash 

21 smuggling, censorship, and knowingly engage in 

22 significant activities undermining cyber security 

23 by the Government of North Korea; and 

24 (B) persons that fail to exercise due dili25 gence to ensure that financial institutions do 


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1 not facilitate any of the activities described in 

2 subparagraph (A) by the Government of North 

3 Korea; 

4 (3) to deny the Government of North Korea ac5 cess to the funds it uses to obtain nuclear weapons, 

6 ballistic missiles, offensive cyber capabilities, and 

7 luxury goods instead of providing for the needs of its 

8 people; and 

9 (4) to enforce sanctions in a manner that 

10 avoids any adverse humanitarian impact on the peo11 ple of North Korea to the extent possible and in a 

12 manner that does not unduly constrain the enforce13 ment of such sanctions. 

14 SEC. 102. INVESTIGATIONS. 

15 The President shall initiate an investigation into the 

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

17 receipt by the President of credible information indicating 

18 that such person has engaged in conduct described in sec19 tion 104(a). 

20 SEC. 103. BRIEFING TO CONGRESS. 

21 Not later than 180 days after the date of the enact22 ment of this Act, and periodically thereafter, the President 

23 shall provide to the appropriate congressional committees 

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

25 following, to the extent the information is available: 


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1 (1) The principal foreign assets and sources of 

2 foreign income of the Government of North Korea. 

3 (2) A list of the persons designated under sub4 sections (a) and (b) of section 104. 

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

6 sanctions were waived or removed under section 207. 

7 (4) A summary of any diplomatic efforts made 

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

9 progress realized from such efforts, including efforts 

10 to encourage the European Union and other states 

11 and jurisdictions to sanction and block the assets of 

12 the Foreign Trade Bank of North Korea and 

13 Daedong Credit Bank. 

14 SEC. 104. DESIGNATION OF PERSONS FOR PROHIBITED 

15 CONDUCT AND MANDATORY AND DISCRE16 TIONARY DESIGNATION AND SANCTIONS AU17 THORITIES. 

18 (a) PROHIBITED CONDUCT AND MANDATORY DES19 IGNATION AND SANCTIONS AUTHORITY.— 

20 (1) CONDUCT DESCRIBED.—Except as provided 

21 in section 207, the President shall designate under 

22 this subsection any person the President determines 

23 to— 

24 (A) have knowingly engaged in significant 

25 activities or transactions with the Government 


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1 of North Korea that have materially contrib2 uted to the proliferation of weapons of mass de3 struction or their means of delivery (including 

4 missiles capable of delivering such weapons), in5 cluding any efforts to manufacture, acquire, 

6 possess, develop, transport, transfer, or use 

7 such items; 

8 (B) have knowingly imported, exported, or 

9 reexported to, into, or from North Korea any 

10 significant arms or related materiel, whether di11 rectly or indirectly; 

12 (C) have knowingly provided significant 

13 training, advice, or other services or assistance, 

14 or engaged in significant transactions, related 

15 to the manufacture, maintenance, or use of any 

16 arms or related materiel to be imported, ex17 ported, or reexported to, into, or from North 

18 Korea, or following their importation, expor19 tation, or reexportation to, into, or from North 

20 Korea, whether directly or indirectly; 

21 (D) have knowingly, directly or indirectly, 

22 imported, exported, or reexported significant 

23 luxury goods to or into North Korea; 

24 (E) have knowingly engaged in or been re25 sponsible for censorship by the Government of 


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1 North Korea, including prohibiting, limiting, or 

2 penalizing the exercise of freedom of expression 

3 or assembly, limiting access to print, radio or 

4 other broadcast media, Internet or other elec5 tronic communications, or the facilitation or 

6 support of intentional frequency manipulation 

7 that would jam or restrict an international sig8 nal; 

9 (F) have knowingly engaged in or been re10 sponsible for serious human rights abuses by 

11 the Government of North Korea, including tor12 ture or cruel, inhuman, or degrading treatment 

13 or punishment, prolonged detention without 

14 charges and trial, forced labor or trafficking in 

15 persons, causing the disappearance of persons 

16 by the abduction and clandestine detention of 

17 those persons, and other denial of the right to 

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

19 (G) have knowingly, directly or indirectly, 

20 engaged in acts of money laundering, the coun21 terfeiting of goods or currency, bulk cash smug22 gling, narcotics trafficking, or other illicit activ23 ity that involves or supports the Government of 

24 North Korea or any senior official thereof, 

25 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 foreign 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 21:57 Jan 19, 2016 Jkt 059200 PO 00000 Frm 00017 Fmt 6652 Sfmt 6201 E:\BILLS\H757.RFS 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 foreign 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 foreign 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 or services— 

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.—The Presi20 dent may issue regulations to authorize— 

21 (A) transactions for the purposes described 

22 in section 207; and 

23 (B) transactions and activities authorized 

24 under North Korean Human Rights Act of 

25 2004 (22 U.S.C. 7801 et seq.). 


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1 SEC. 105. FORFEITURE OF PROPERTY. 

2 (a) AMENDMENT TO PROPERTY SUBJECT TO FOR3 FEITURE.—Section 981(a)(1) of title 18, United States 

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

5 subparagraph: 

6 ‘‘(I) Any property, real or personal, that is in7 volved in a violation or attempted violation, or which 

8 constitutes or is derived from proceeds traceable to 

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

10 Sanctions Enforcement Act of 2016.’’. 

11 (b) AMENDMENT TO DEFINITION OF CIVIL FOR12 FEITURE STATUTE.—Section 983(i)(2)(D) of title 18, 

13 United States Code, is amended— 

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

15 Economic Powers Act’’ and inserting ‘‘, the Inter16 national Emergency Economic Powers Act’’; and 

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

18 the following: ‘‘, or the North Korea Sanctions En19 forcement Act of 2016’’. 

20 (c) AMENDMENT TO DEFINITION OF SPECIFIED UN21 LAWFUL ACTIVITY.—Section 1956(c)(7)(D) of title 18, 

22 United States Code, is amended— 

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

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

25 the Atomic Energy Act of 1954’’; and 


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

2 section 104(a) of the North Korea Sanctions En3 forcement Act of 2016;’’. 

4 TITLE II—SANCTIONS AGAINST 

5 NORTH KOREAN PROLIFERA6 TION, HUMAN RIGHTS 

7 ABUSES, ILLICIT ACTIVITIES, 

8 AND SIGNIFICANT ACTIVITIES 

9 UNDERMINING CYBER SECU10 RITY 

11 SEC. 201. DETERMINATIONS WITH RESPECT TO NORTH 

12 KOREA AS A JURISDICTION OF PRIMARY 

13 MONEY LAUNDERING CONCERN. 

14 (a) FINDINGS.—Congress makes the following find15 ings: 

16 (1) The Undersecretary of the Treasury for 

17 Terrorism and Financial Intelligence, who is respon18 sible for safeguarding the financial system against il19 licit use, money laundering, terrorist financing, and 

20 the proliferation of weapons of mass destruction, has 

21 repeatedly expressed concern about North Korea’s 

22 misuse of the international financial system as fol23 lows: 

24 (A) In 2006, the Undersecretary stated 

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


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

2 accounts worldwide to conduct proliferation-re3 lated transactions, the line between illicit and 

4 licit North Korean money is nearly invisible’’ 

5 and urged financial institutions worldwide to 

6 ‘‘think carefully about the risks of doing any 

7 North Korea-related business.’’. 

8 (B) In 2011, the Undersecretary stated 

9 that ‘‘North Korea remains intent on engaging 

10 in proliferation, selling arms as well as bringing 

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

12 the effort to establish front companies.’’. 

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

14 reference to North Korea’s distribution of high15 quality counterfeit United States currency, that 

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

17 supernote into the international financial sys18 tem,’’ and that the Department of the Treasury 

19 would soon introduce new currency with im20 proved security features to protect against 

21 counterfeiting by the Government of North 

22 Korea. 

23 (2) The Financial Action Task Force, an inter24 governmental body whose purpose is to develop and 

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1 bat money laundering and terrorist financing, has 

2 repeatedly— 

3 (A) expressed concern at deficiencies in 

4 North Korea’s regimes to combat money laun5 dering and terrorist financing; 

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

7 action to address significant deficiencies in 

8 these regimes and the serious threat they pose 

9 to the integrity of the international financial 

10 system; 

11 (C) urged all jurisdictions to apply coun12 termeasures to protect the international finan13 cial system from ongoing and substantial money 

14 laundering and terrorist financing risks ema15 nating from North Korea; 

16 (D) urged all jurisdictions to advise their 

17 financial institutions to give special attention to 

18 business relationships and transactions with 

19 North Korea, including North Korean compa20 nies and financial institutions; and 

21 (E) called on all jurisdictions to protect 

22 against correspondent relationships being used 

23 to bypass or evade countermeasures and risk 

24 mitigation practices, and take into account 

25 money laundering and terrorist financing risks 


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1 when considering requests by North Korean fi2 nancial institutions to open branches and sub3 sidiaries in their jurisdiction. 

4 (3) On March 7, 2013, the United Nations Se5 curity Council unanimously adopted Resolution 

6 2094, which— 

7 (A) welcomed the Financial Action Task 

8 Force’s recommendation on financial sanctions 

9 related to proliferation, and its guidance on the 

10 implementation of sanctions; 

11 (B) decided that Member States should 

12 apply enhanced monitoring and other legal 

13 measures to prevent the provision of financial 

14 services or the transfer of property that could 

15 contribute to activities prohibited by applicable 

16 United Nations Security Council resolutions; 

17 and 

18 (C) called on Member States to prohibit 

19 North Korean banks from establishing or main20 taining correspondent relationships with banks 

21 in their jurisdictions, to prevent the provision of 

22 financial services, if they have information that 

23 provides reasonable grounds to believe that 

24 these activities could contribute to activities 

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1 curity Council resolution, or to the evasion of 

2 such prohibitions. 

3 (b) SENSE OF CONGRESS REGARDING THE DESIGNA4 TION OF NORTH KOREA AS A JURISDICTION OF PRIMARY

5 MONEY LAUNDERING CONCERN.—Congress— 

6 (1) acknowledges the efforts of the United Na7 tions Security Council to impose limitations on, and 

8 require enhanced monitoring of, transactions involv9 ing North Korean financial institutions that could 

10 contribute to sanctioned activities; 

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

12 to immediately designate North Korea as a jurisdic13 tion of primary money laundering concern, and to 

14 adopt stringent special measures to safeguard the fi15 nancial system against the risks posed by North Ko16 rea’s willful evasion of sanctions and its illicit activi17 ties; and 

18 (3) urges the President to seek the prompt im19 plementation by other states of enhanced monitoring 

20 and due diligence to prevent North Korea’s misuse 

21 of the international financial system, including by 

22 sharing information about activities, transactions, 

23 and property that could contribute to activities sanc24 tioned by applicable United Nations Security Council 

25 resolutions, or to the evasion of sanctions. 


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1 (c) DETERMINATIONS REGARDING NORTH KOREA.— 

2 (1) IN GENERAL.—The Secretary of the Treas3 ury shall, not later than 180 days after the date of 

4 the enactment of this Act, determine, in consultation 

5 with the Secretary of State and Attorney General, 

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

7 United States Code, whether reasonable grounds 

8 exist for concluding that North Korea is a jurisdic9 tion of primary money laundering concern. 

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

11 the Treasury determines under this subsection that 

12 reasonable grounds exist for finding that North 

13 Korea is a jurisdiction of primary money laundering 

14 concern, the Secretary of the Treasury, in consulta15 tion with the Federal functional regulators, shall im16 pose one or more of the special measures described 

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

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

19 jurisdiction of North Korea. 

20 (3) REPORT REQUIRED.— 

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

22 Treasury determines that North Korea is a ju23 risdiction of primary money laundering concern, 

24 the Secretary of the Treasury shall, not later 

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1 retary makes such determination, submit to the 

2 appropriate congressional committees a report 

3 on the determination made under paragraph (1) 

4 together with the reasons for that determina5 tion. 

6 (B) FORM.—A report or copy of any re7 port submitted under this paragraph shall be 

8 submitted in unclassified form but may contain 

9 a classified annex. 

10 SEC. 202. ENSURING THE CONSISTENT ENFORCEMENT OF 

11 UNITED NATIONS SECURITY COUNCIL RESO12 LUTIONS AND FINANCIAL RESTRICTIONS ON 

13 NORTH KOREA. 

14 (a) FINDINGS.—Congress finds that— 

15 (1) all states and jurisdictions are obligated to 

16 implement and enforce applicable United Nations 

17 Security Council resolutions fully and promptly, in18 cluding by— 

19 (A) blocking the property of, and ensuring 

20 that any property is prevented from being made 

21 available to, persons designated by the Security 

22 Council under applicable United Nations Secu23 rity Council resolutions; 


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1 (B) blocking any property associated with 

2 an activity prohibited by applicable United Na3 tions Security Council resolutions; and 

4 (C) preventing any transfer of property 

5 and any provision of financial services that 

6 could contribute to an activity prohibited by ap7 plicable United Nations Security Council resolu8 tions, or to the evasion of sanctions under such 

9 resolutions; 

10 (2) all states and jurisdictions share a common 

11 interest in protecting the international financial sys12 tem from the risks of money laundering and illicit 

13 transactions emanating from North Korea; 

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

15 the world’s principal reserve currencies, and the 

16 United States and the European Union are pri17 marily responsible for the protection of the inter18 national financial system from these risks; 

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

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

21 is essential to the enforcement of applicable United 

22 Nations Security Council resolutions and to the pro23 tection of the international financial system; 

24 (5) the report of the Panel of Experts estab25 lished pursuant to United Nations Security Council 


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1 Resolution 1874, dated June 11, 2013, expressed 

2 concern about the ability of banks in states with less 

3 effective regulators and those unable to afford effec4 tive compliance to detect and prevent illicit transfers 

5 involving North Korea; 

6 (6) North Korea has historically exploited in7 consistencies between jurisdictions in the interpreta8 tion and enforcement of financial regulations and 

9 applicable United Nations Security Council resolu10 tions to circumvent sanctions and launder the pro11 ceeds of illicit activities; 

12 (7) Amroggang Development Bank, Bank of 

13 East Land, and Tanchon Commercial Bank have 

14 been designated by the Secretary of the Treasury, 

15 the United Nations Security Council, and the Euro16 pean Union; 

17 (8) Korea Daesong Bank and Korea Kwangson 

18 Banking Corporation have been designated by the 

19 Secretary of the Treasury and the European Union; 

20 (9) the Foreign Trade Bank of North Korea 

21 has been designated by the Secretary of the Treas22 ury for facilitating transactions on behalf of persons 

23 linked to its proliferation network, and for serving as 

24 ‘‘a key financial node’’; and 


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1 (10) Daedong Credit Bank has been designated 

2 by the Secretary of the Treasury for activities pro3 hibited by applicable United Nations Security Coun4 cil resolutions, including the use of deceptive finan5 cial practices to facilitate transactions on behalf of 

6 persons linked to North Korea’s proliferation net7 work. 

8 (b) SENSE OF CONGRESS.—It is the sense of Con9 gress that the President should intensify diplomatic ef10 forts, both in appropriate international fora such as the 

11 United Nations and bilaterally, to develop and implement 

12 a coordinated, consistent, multilateral strategy for pro13 tecting the global financial system against risks emanating 

14 from North Korea, including— 

15 (1) the cessation of any financial services whose 

16 continuation is inconsistent with applicable United 

17 Nations Security Council resolutions; 

18 (2) the cessation of any financial services to 

19 persons, including financial institutions, that present 

20 unacceptable risks of facilitating money laundering 

21 and illicit activity by the Government of North 

22 Korea; 

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

24 in accordance with the legal process of the state or 

25 jurisdiction in which the property is held, of any 


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1 property required to be blocked under applicable 

2 United Nations Security Council resolutions; 

3 (4) the blocking of any property derived from il4 licit activity, from significant activities undermining 

5 cyber security, from the misappropriation, theft, or 

6 embezzlement of public funds by, or for the benefit 

7 of, officials of the Government of North Korea; 

8 (5) the blocking of any property involved in sig9 nificant activities undermining cyber security by the 

10 Government of North Korea, directly or indirectly, 

11 against United States persons, or the theft of intel12 lectual property by the Government of North Korea, 

13 directly or indirectly from United States persons; 

14 and 

15 (6) the blocking of any property of persons di16 rectly or indirectly involved in censorship or human 

17 rights abuses by the Government of North Korea. 

18 SEC. 203. PROLIFERATION PREVENTION SANCTIONS. 

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

20 (1) IN GENERAL.—Subject to section 

21 207(a)(2)(C) of this Act, a license shall be required 

22 for the export to North Korea of any goods or tech23 nology subject to the Export Administration Regula24 tions (part 730 of title 15, Code of Federal Regula25 tions) without regard to whether the Secretary of 


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1 State has designated North Korea as a country the 

2 government of which has provided support for acts 

3 of international terrorism, as determined by the Sec4 retary of State under section 6(j) of the Export Ad5 ministration Act of 1979 (50 U.S.C. App. 2045), as 

6 continued in effect under the International Emer7 gency Economic Powers Act. 

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

9 the export to North Korea of any goods or tech10 nology as described in paragraph (1) shall be subject 

11 to a presumption of denial. 

12 (b) TRANSACTIONS WITH COUNTRIES SUPPORTING

13 ACTS OF INTERNATIONAL TERRORISM.— 

14 (1) ARMS EXPORT CONTROL ACT PROHIBI15 TIONS.—The prohibitions and restrictions described 

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

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

18 that Act, shall also apply to exporting or otherwise 

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

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

21 the Government of North Korea without regard to 

22 whether or not North Korea is a country with re23 spect to which subsection (d) of such section (relat24 ing to designation of state sponsors of terrorism) ap25 plies. 


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1 (2) FINANCIAL TRANSACTIONS.—Except as pro2 vided in section 207 of this Act and the North Ko3 rean Human Rights Act of 2004 (22 U.S.C. 7801 

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

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

6 United States person that engages in a financial 

7 transaction with the Government of North Korea on 

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

9 same extent that such penalties apply to a United 

10 States citizen that commits an unlawful act de11 scribed in section 2332d of title 18, United States 

12 Code. 

13 (c) TRANSACTIONS IN LETHAL MILITARY EQUIP14 MENT.— 

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

16 assistance under the Foreign Assistance Act of 1961 

17 (22 U.S.C. 2151 et seq.) to any country that pro18 vides lethal military equipment to, or receives lethal 

19 military equipment from, the Government of North 

20 Korea. 

21 (2) APPLICABILITY.—The prohibition under 

22 this subsection with respect to a country shall termi23 nate on the date that is 1 year after the date on 

24 which such country ceases to provide lethal military 

25 equipment to the Government of North Korea. 


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1 (3) WAIVER.—The President may, on a case2 by-case basis, waive the prohibition under this sub3 section with respect to a country for a period of not 

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

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

6 President determines and so reports to the appro7 priate congressional committees that it is vital to the 

8 national security interests of the United States to 

9 exercise such waiver authority. 

10 SEC. 204. PROCUREMENT SANCTIONS. 

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

12 the United States Government may not procure, or enter 

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

14 services from any designated person. 

15 (b) FAR.—The Federal Acquisition Regulation 

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

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

18 person that is a prospective contractor that such person 

19 does not engage in any of the conduct described in sub20 section (a) or (b) of section 104. Such revision shall apply 

21 with respect to contracts in an amount greater than the 

22 simplified acquisition threshold (as defined in section 134 

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

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

25 of the enactment of this Act. 


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1 (c) TERMINATION OF CONTRACTS AND INITIATION

2 OF SUSPENSION AND DEBARMENT PROCEEDING.— 

3 (1) TERMINATION OF CONTRACTS.—Except as 

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

5 agency shall terminate a contract with a person who 

6 has provided a false certification under subsection 

7 (b). 

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

9 may waive the requirement under paragraph (1) 

10 with respect to a person based upon a written find11 ing of urgent and compelling circumstances signifi12 cantly affecting the interests of the United States. If 

13 the head of an executive agency waives the require14 ment under paragraph (1) for a person, the head of 

15 the agency shall submit to the appropriate congres16 sional committees, within 30 days after the waiver is 

17 made, a report containing the rationale for the waiv18 er and relevant information supporting the waiver 

19 decision. 

20 (3) INITIATION OF SUSPENSION AND DEBAR21 MENT PROCEEDING.—The head of an executive 

22 agency shall initiate a suspension and debarment 

23 proceeding against a person who has provided a 

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1 barment, the agency shall ensure that such person 

2 is entered into the Governmentwide database con3 taining the list of all excluded parties ineligible for 

4 Federal programs pursuant to Executive Order No. 

5 12549 (31 U.S.C. 6101 note; relating to debarment 

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

7 U.S.C. 6101 note; relating to debarment and sus8 pension). 

9 (d) CLARIFICATION REGARDING CERTAIN PROD10 UCTS.—The remedies specified in subsections (a) through 

11 (c) shall not apply with respect to the procurement of eligi12 ble products, as defined in section 308(4) of the Trade 

13 Agreements Act of 1979 (19 U.S.C. 2518(4)), of any for14 eign country or instrumentality designated under section 

15 301(b) of such Act (19 U.S.C. 2511(b)). 

16 (e) RULE OF CONSTRUCTION.—Nothing in this sub17 section may be construed to limit the use of other remedies 

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

19 official of the Federal Government on the basis of a deter20 mination of a false certification under subsection (b). 

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

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

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


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1 SEC. 205. ENHANCED INSPECTIONS AUTHORITIES. 

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

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

4 days thereafter, the President, acting through the Sec5 retary of Homeland Security, shall submit to the appro6 priate congressional committees, the Committee on Home7 land Security of the House of Representatives, and the 

8 Committee on Homeland Security and Governmental Af9 fairs of the Senate, a report identifying foreign sea ports 

10 and airports whose inspections of ships, aircraft, and con11 veyances originating in North Korea, carrying North Ko12 rean property, or operated by the Government of North 

13 Korea are deficient to effectively prevent the facilitation 

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

15 (b) ENHANCED SECURITY TARGETING REQUIRE16 MENTS.—Not later than 180 days after the identification 

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

18 Secretary of Homeland Security shall, utilizing the Auto19 mated Targeting System operated by the National Tar20 geting Center in U.S. Customs and Border Protection, re21 quire enhanced screening procedures to determine if phys22 ical inspections are warranted of any cargo bound for or 

23 landed in the United States that has been transported 

24 through such sea port or airport if there are reasonable 

25 grounds to believe that such cargo contains goods prohib26 ited under this Act. 


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

2 or conveyance used to facilitate any of the activities de3 scribed in section 104(a) that comes within the jurisdic4 tion of the United States may be seized and forfeited 

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

6 the Tariff Act of 1930. 

7 SEC. 206. TRAVEL SANCTIONS. 

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

9 PAROLE.— 

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

11 (or an alien who is a corporate officer of a person) 

12 who the Secretary of State or the Secretary of 

13 Homeland Security (or a designee of one of such 

14 Secretaries) knows, or has reasonable grounds to be15 lieve, is described in subsection (a)(1) or (b)(1) of 

16 section 104 is— 

17 (A) inadmissible to the United States; 

18 (B) ineligible to receive a visa or other doc19 umentation to enter the United States; and 

20 (C) otherwise ineligible to be admitted or 

21 paroled into the United States or to receive any 

22 other benefit under the Immigration and Na23 tionality Act (8 U.S.C. 1101 et seq.). 

24 (2) CURRENT VISAS REVOKED.— 


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1 (A) IN GENERAL.—The issuing consular 

2 officer, the Secretary of State, or the Secretary 

3 of Homeland Security (or a designee of one of 

4 such Secretaries) shall revoke any visa or other 

5 entry documentation issued to an alien who is 

6 described in subsection (a)(1) or (b)(1) of sec7 tion 104 regardless of when issued. 

8 (B) EFFECT OF REVOCATION.—A revoca9 tion under subparagraph (A)— 

10 (i) shall take effect immediately; and 

11 (ii) shall automatically cancel any 

12 other valid visa or entry documentation 

13 that is in the alien’s possession. 

14 (b) EXCEPTION TO COMPLY WITH UNITED NATIONS

15 HEADQUARTERS AGREEMENT.—Sanctions under sub16 section (a)(1)(B) shall not apply to an alien if admitting 

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

18 United States to comply with the Agreement regarding the 

19 Headquarters of the United Nations, signed at Lake Suc20 cess June 26, 1947, and entered into force November 21, 

21 1947, between the United Nations and the United States, 

22 or other applicable international obligations. 

23 SEC. 207. EXEMPTIONS, WAIVERS, AND REMOVALS OF DES24 IGNATION. 

25 (a) EXEMPTIONS.— 


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1 (1) MANDATORY EXEMPTIONS.—The following 

2 activities shall be exempt from sanctions under sec3 tion 104: 

4 (A) Activities subject to the reporting re5 quirements of title V of the National Security 

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

7 authorized intelligence activities of the United 

8 States. 

9 (B) Any transaction necessary to comply 

10 with United States obligations under the Agree11 ment between the United Nations and the 

12 United States of America regarding the Head13 quarters of the United Nations, signed June 

14 26, 1947, and entered into force on November 

15 21, 1947, or under the Vienna Convention on 

16 Consular Relations, signed April 24, 1963, and 

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

18 other international agreements. 

19 (2) DISCRETIONARY EXEMPTIONS.—The fol20 lowing activities may be exempt from sanctions 

21 under section 104 as determined by the President: 

22 (A) Any financial transaction the exclusive 

23 purpose for which is to provide humanitarian 

24 assistance to the people of North Korea. 


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1 (B) Any financial transaction the exclusive 

2 purpose for which is to import food products 

3 into North Korea, if such food items are not de4 fined as luxury goods. 

5 (C) Any transaction the exclusive purpose 

6 for which is to import agricultural products, 

7 medicine, or medical devices into North Korea, 

8 provided that such supplies or equipment are 

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

10 Export Administration Regulations (part 730 of 

11 title 15, Code of Federal Regulations) and not 

12 controlled under— 

13 (i) the Export Administration Act of 

14 1979 (50 U.S.C. App. 2401 et seq.), as 

15 continued in effect under the International 

16 Emergency Economic Powers Act (50 

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

18 (ii) the Arms Export Control Act (22 

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

20 (iii) part B of title VIII of the Nu21 clear Proliferation Prevention Act of 1994 

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

23 (iv) the Chemical and Biological 

24 Weapons Control and Warfare Elimination 

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


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1 (b) WAIVER.—The President may waive, on a case2 by-case basis, the imposition of sanctions for a period of 

3 not more than 1 year, and may renew that waiver for addi4 tional periods of not more than 1 year, any sanction or 

5 other measure under section 104, 204, 205, 206, or 303 

6 if the President submits to the appropriate congressional 

7 committees a written determination that the waiver meets 

8 one or more of the following requirements: 

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

10 national security interests of the United States. 

11 (2) The waiver will further the enforcement of 

12 this Act or is for an important law enforcement pur13 pose. 

14 (3) The waiver is for an important humani15 tarian purpose, including any of the purposes de16 scribed in section 4 of the North Korean Human 

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

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

19 prescribe rules and regulations for the removal of sanc20 tions on a person that is designated under subsection (a) 

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

22 a person with respect to such sanctions if the President 

23 determines that the designated person has verifiably 

24 ceased its participation in any of the conduct described 

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


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1 be, and has given assurances that it will abide by the re2 quirements of this Act. 

3 (d) FINANCIAL SERVICES FOR CERTAIN ACTIVI4 TIES.—The President may promulgate regulations, rules, 

5 and policies as may be necessary to facilitate the provision 

6 of financial services by a foreign financial institution that 

7 is not controlled by the Government of North Korea in 

8 support of the activities subject to exemption under this 

9 section. 

10 SEC. 208. REPORT ON THOSE RESPONSIBLE FOR KNOW11 INGLY ENGAGING IN SIGNIFICANT ACTIVI12 TIES UNDERMINING CYBER SECURITY. 

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

14 appropriate congressional committees a report on signifi15 cant activities undermining cyber security conducted, or 

16 otherwise ordered or controlled, directly or indirectly, by 

17 the Government of North Korea, including— 

18 (1) the identity and nationality of persons that 

19 have knowingly engaged in, directed, or provided 

20 material support to significant activities under21 mining cyber security by the Government of North 

22 Korea; 

23 (2) the conduct engaged in by each person iden24 tified; 


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1 (3) the extent to which a foreign government 

2 has provided material support to significant activi3 ties undermining cyber security conducted, or other4 wise ordered or controlled by, the Government of 

5 North Korea; and 

6 (4) the efforts made by the United States to en7 gage foreign governments to halt the capability of 

8 North Korea to conduct significant activities under9 mining cyber security. 

10 (b) SUBMISSION AND FORM.— 

11 (1) SUBMISSION.—The report required under 

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

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

14 every 180 days thereafter for a period not to exceed 

15 3 years. 

16 (2) FORM.—The report required under sub17 section (a) shall be submitted in an unclassified 

18 form, but may contain a classified annex. 

19 SEC. 209. SENSE OF CONGRESS THAT TRILATERAL CO20 OPERATION AMONG THE UNITED STATES, 

21 JAPAN, AND THE REPUBLIC OF KOREA IS 

22 CRUCIAL TO THE STABILITY OF THE ASIA-PA23 CIFIC REGION. 

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


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1 (1) The United States, Japan, and the Republic 

2 of Korea (South Korea) share the values of democ3 racy, free and open markets, the rule of law, and re4 spect for human rights. 

5 (2) The alliance relationship between the 

6 United States, Japan, and South Korea are critical 

7 to peace and security in the Asia-Pacific region. 

8 (3) The United States, Japan, and South Korea 

9 are committed to continuing diplomatic efforts to en10 sure continued peace and stability in the Asia-Pa11 cific region. 

12 (4) On December 28, 2014, the United States, 

13 Japan, and South Korea finalized a trilateral mili14 tary intelligence-sharing arrangement concerning the 

15 nuclear and missile threats posed by North Korea. 

16 (5) The trilateral military intelligence-sharing 

17 arrangement reinforces and strengthens the commit18 ment between the United States, Japan, and South 

19 Korea toward a Korean Peninsula free of nuclear 

20 weapons. 

21 (b) SENSE OF CONGRESS.—It is the sense of Con22 gress that North Korea’s nuclear and ballistic missile pro23 grams are of mutual concern to the United States, Japan, 

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1 sharing arrangement is essential to the security of each 

2 nation and the Asia-Pacific region. 

3 SEC. 210. REPORT ON NUCLEAR PROGRAM COOPERATION 

4 BETWEEN NORTH KOREA AND IRAN. 

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

6 Committee on Foreign Affairs of the House of Representa7 tives and the Committee on Foreign Relations of the Sen8 ate a report on cooperation between North Korea and Iran 

9 on their nuclear programs, including the identity of Ira10 nian and North Korean persons that have knowingly en11 gaged in or directed the provision of material support or 

12 the exchange of information between North Korea and 

13 Iran on their respective nuclear programs. 

14 (b) SUBMISSION AND FORM.— 

15 (1) SUBMISSION.—The report required under 

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

17 days after the date of enactment of this Act. 

18 (2) FORM.—The report required under sub19 section (a) shall be submitted in an unclassified 

20 form, but may contain a classified annex. 

21 TITLE III—PROMOTION OF 

22 HUMAN RIGHTS 

23 SEC. 301. INFORMATION TECHNOLOGY. 

24 Section 104 of the North Korean Human Rights Act 

25 of 2004 (22 U.S.C. 7814) is amended— 


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1 (1) in subsection (a), by striking ‘‘radios capa2 ble of receiving broadcasting’’ and inserting ‘‘radio, 

3 Internet, and electronic mass communications capa4 ble of receiving content’’; and 

5 (2) by adding after subsection (c) the following 

6 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. The report shall include a description of actions taken 

11 by the Department of State to implement or support the 

12 recommendations of the Commission of Inquiry’s Report 

13 on Human Rights in the Democratic People’s Republic of 

14 North Korea, including efforts to press China and other 

15 countries to implement Commission recommendations. 

16 (b) CONSIDERATION.—In preparing the report re17 quired under subsection (a), the Secretary of State shall 

18 give due consideration to the findings of the United Na19 tions Commission of Inquiry on Human Rights in North 

20 Korea, and shall make specific findings with respect to 

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

22 person who is a member of the National Defense Commis23 sion of North Korea, or the Organization and Guidance 

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

25 human rights abuses and censorship. 


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

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

3 report required under subsection (a) as responsible for se4 rious human rights abuses or censorship in North Korea. 

5 (d) SUBMISSION AND FORM.— 

6 (1) SUBMISSION.—The report required under 

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

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

9 every 180 days thereafter for a period not to exceed 

10 3 years, shall be included in each report required 

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

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

13 2304(b)) (relating to the annual human rights re14 port). 

15 (2) FORM.—The report required under sub16 section (a) shall be submitted in unclassified form, 

17 but may include a classified annex. The Secretary of 

18 State shall also publish the unclassified part of the 

19 report on the Department of State’s Web site. 

20 TITLE IV—GENERAL 

21 AUTHORITIES 

22 SEC. 401. SUSPENSION OF SANCTIONS AND OTHER MEAS23 URES. 

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

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


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

2 certification by the President to the appropriate congres3 sional committees that the Government of North Korea 

4 has— 

5 (1) verifiably ceased its counterfeiting of United 

6 States currency, including the surrender or destruc7 tion of specialized materials and equipment used for 

8 or particularly suitable for counterfeiting; 

9 (2) taken significant steps toward financial 

10 transparency to comply with generally accepted pro11 tocols to cease and prevent the laundering of mone12 tary instruments; 

13 (3) taken significant steps toward verification 

14 of its compliance with United Nations Security 

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

16 2094; 

17 (4) taken significant steps toward accounting 

18 for and repatriating the citizens of other countries 

19 abducted or unlawfully held captive by the Govern20 ment of North Korea or detained in violation of the 

21 1953 Armistice Agreement; 

22 (5) accepted and begun to abide by internation23 ally recognized standards for the distribution and 

24 monitoring of humanitarian aid; 


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1 (6) provided credible assurances that it will not 

2 support further acts of international terrorism; 

3 (7) taken significant and verified steps to im4 prove living conditions in its political prison camps; 

5 and 

6 (8) made significant progress in planning for 

7 unrestricted family reunification meetings, including 

8 for those individuals among the two million strong 

9 Korean-American community who maintain family 

10 ties with relatives in North Korea. 

11 (b) RENEWAL OF SUSPENSION.—The suspension de12 scribed in subsection (a) may be renewed for additional 

13 consecutive periods of 180 days upon certification by the 

14 President to the appropriate congressional committees 

15 that the Government of North Korea has continued to 

16 comply with the conditions described in subsection (a) dur17 ing the previous year. 

18 SEC. 402. TERMINATION OF SANCTIONS AND OTHER MEAS19 URES. 

20 Any sanction or other measure provided for in title 

21 I (or any amendment made by title I) or title II shall ter22 minate on the date on which the President determines and 

23 certifies to the appropriate congressional committees that 

24 the Government of North Korea has met the requirements 

25 of section 401, and has also— 


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1 (1) completely, verifiably, and irreversibly dis2 mantled all of its nuclear, chemical, biological, and 

3 radiological weapons programs, including all pro4 grams for the development of systems designed in 

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

6 (2) released all political prisoners, including the 

7 citizens of North Korea detained in North Korea’s 

8 political prison camps; 

9 (3) ceased its censorship of peaceful political 

10 activity; 

11 (4) taken significant steps toward the establish12 ment of an open, transparent, and representative so13 ciety; 

14 (5) fully accounted for and repatriated all citi15 zens of all nations abducted or unlawfully held cap16 tive by the Government of North Korea or detained 

17 in violation of the 1953 Armistice Agreement; and 

18 (6) agreed with the Financial Action Task 

19 Force on a plan of action to address deficiencies in 

20 its anti-money laundering regime and begun to im21 plement this plan of action. 

22 SEC. 403. AUTHORITY TO CONSOLIDATE REPORTS. 

23 Any or all reports required to be submitted to appro24 priate congressional committees under this Act or any 

25 amendment made by this Act that are subject to a deadVerDate Sep 11 2014 21:57 Jan 19, 2016 Jkt 059200 PO 00000 Frm 00056 Fmt 6652 Sfmt 6201 E:\BILLS\H757.RFS H757

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1 line for submission consisting of the same unit of time may 

2 be consolidated into a single report that is submitted to 

3 appropriate congressional committees pursuant to such 

4 deadline. 

5 SEC. 404. REGULATIONS. 

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

7 promulgate such rules and regulations as may be nec8 essary to carry out the provisions of this Act (which may 

9 include regulatory exceptions), including under sections 

10 203 and 205 of the International Emergency Economic 

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

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

13 or any amendment made by this Act shall be construed 

14 to limit the authority of the President pursuant to an ap15 plicable Executive order or otherwise pursuant to the 

16 International Emergency Economic Powers Act (50 

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

18 SEC. 405. NO ADDITIONAL FUNDS AUTHORIZED. 

19 No additional funds are authorized to carry out the 

20 requirements of this Act and the amendments made by 

21 this Act. 


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1 SEC. 406. EFFECTIVE DATE. 

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

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

4 date of the enactment of this Act. 

Passed the House of Representatives January 12, 

2016. 

Attest: KAREN L. HAAS, 

Clerk. 


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