IB 

Union Calendar No. 295 

114TH CONGRESS 

2D SESSION H. R. 757 

[Report No. 114–392, Part I] 

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 

JANUARY 11, 2016 

Additional sponsors: Ms. GABBARD, Mr. AUSTIN SCOTT of Georgia, Mr. CONNOLLY, Mr. COOK, Mr. REICHERT, Mr. RIBBLE, Mr. DESJARLAIS, Mr. 

BISHOP of Michigan, Mr. STEWART, Mr. HASTINGS, Ms. ROS-LEHTINEN, 

Mr. PETERSON, Mr. KLINE, Ms. LORETTA SANCHEZ of California, Mr. 

RODNEY DAVIS of Illinois, Mr. HECK of Nevada, Mr. MACARTHUR, Mr. 

VEASEY, Mr. WOODALL, Mr. TED LIEU of California, Mr. SMITH of 

Washington, Mr. ISRAEL, Mr. SAM JOHNSON of Texas, Mr. DOLD, Mr. 

GUINTA, Mr. BOUSTANY, Mr. GUTHRIE, Mr. GIBSON, Ms. DUCKWORTH, 

Mrs. ELLMERS of North Carolina, and Mr. POMPEO


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JANUARY 11, 2016 

Reported from the Committee on Foreign Affairs with an amendment 

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

JANUARY 11, 2016 

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

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

printed 

[For text of introduced bill, see copy of bill as introduced on February 5, 2015] 

A BILL 

To improve the enforcement of sanctions against the 

Government of North Korea, and for other purposes. 


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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

5 ‘‘North Korea Sanctions Enforcement Act of 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. 

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. 


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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 repeat4 edly violated its commitments to the complete, 

5 verifiable, irreversible dismantlement of its nuclear 

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

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

9 production of weapons of mass destruction. 

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

12 mass destruction. 

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

15 activities, including prohibited arms sales, narcotics 

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

18 of United States persons. 

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

20 historically and recently, repeatedly sponsored acts of 

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


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1 threats of violence against foreign persons, leaders, 

2 newspapers, and cities, and the shipment of weapons 

3 to terrorists and state sponsors of terrorism. 

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 Cheonan 

8 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 tor15 ture 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 in2 terests, and for threats of violence against the civilian 

3 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 fi7 nancial institutions without establishing sufficient fi8 nancial safeguards against North Korea’s use of these 

9 transactions to promote proliferation, weapons traf10 ficking, human rights violations, illicit activity, and 

11 the purchase of luxury goods, aid and abet North Ko12 rea’s misuse of the international financial system, 

13 and also violate the intent of relevant United Nations 

14 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, to 

18 the safety of members of the United States Armed 

19 Forces, to the integrity of the global financial system, 

20 to the integrity of global nonproliferation programs, 

21 and to the people of North Korea. 

22 (12) The Congress seeks, through this legislation, 

23 to use nonmilitary means to address this crisis, to 

24 provide diplomatic leverage to negotiate necessary 


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1 changes in North Korea’s conduct, and to ease the suf2 fering of the people of North Korea. 

3 SEC. 3. DEFINITIONS. 

4 In this Act: 

5 (1) APPLICABLE EXECUTIVE ORDER.—The term 

6 ‘‘applicable Executive order’’ means— 

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

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

9 the extent that such Executive order authorizes 

10 the imposition of sanctions on persons for con11 duct, or prohibits transactions or activities, in12 volving the Government of North Korea; or 

13 (B) any Executive order adopted on or after 

14 the date of the enactment of this Act, to the ex15 tent that such Executive order authorizes the im16 position of sanctions on persons for conduct, or 

17 prohibits transactions or activities, involving the 

18 Government of North Korea. 

19 (2) APPLICABLE UNITED NATIONS SECURITY

20 COUNCIL RESOLUTION.—The term ‘‘applicable United 

21 Nations Security Council resolution’’ means— 

22 (A) United Nations Security Council Reso23 lution 1695 (2006), 1718 (2006), 1874 (2009), 

24 2087 (2013), or 2094 (2013); or 


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1 (B) any United Nations Security Council 

2 resolution adopted on or after the date of the en3 actment of this Act, to the extent that such reso4 lution authorizes the imposition of sanctions on 

5 persons for conduct, or prohibits transactions or 

6 activities, involving the Government of North 

7 Korea. 

8 (3) APPROPRIATE CONGRESSIONAL COMMIT9 TEES.—The term ‘‘appropriate congressional commit10 tees’’ means— 

11 (A) the Committee on Foreign Affairs, the 

12 Committee on Ways and Means, and the Com13 mittee on Financial Services of the House of 

14 Representatives; and 

15 (B) the Committee on Foreign Relations 

16 and the Committee on Banking, Housing, and 

17 Urban Affairs of the Senate. 

18 (4) DESIGNATED PERSON.—The term ‘‘des19 ignated person’’ means a person designated under 

20 subsection (a) or (b) of section 104 for purposes of ap21 plying one or more of the sanctions described in title 

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

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

24 ‘‘Government of North Korea’’ means— 


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1 (A) the Government of the Democratic Peo2 ple’s Republic of Korea or any political subdivi3 sion, agency, or instrumentality thereof; and 

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

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

6 Democratic People’s Republic of Korea. 

7 (6) INTERNATIONAL TERRORISM.—The term 

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

9 term in section 140(d) of the Foreign Relations Au10 thorization Act, Fiscal Years 1988 and 1989 (22 

11 U.S.C. 2656f(d)), and includes the conduct described 

12 in section 212(a)(3)(B)(iii) of the Immigration and 

13 Nationality Act (8 U.S.C. 1182(a)(3)(B)(iii)), to the 

14 extent such conduct involves the citizens of more than 

15 one country. 

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

17 has the meaning given such term in subpart 746.4 of 

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

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

20 and any similar items. 

21 (8) MONETARY INSTRUMENT.—The term ‘‘mone22 tary instrument’’ has the meaning given such term 

23 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 of 

14 North Korea; and 

15 (D) any financial institution, wherever lo16 cated, owned or controlled by a financial institu17 tion described in subparagraph (A), (B), or (C). 

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

19 ‘‘other stores of value’’ means— 

20 (A) prepaid access devices, tangible or in21 tangible prepaid access devices, or other instru22 ments or devices for the storage or transmission 

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

24 of Federal Regulations; and 


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

2 1027.100 of title 31, Code of Federal Regula3 tions, and any instrument or tangible or intan4 gible access device used for the storage and trans5 mission of a representation of covered goods, or 

6 other device, as defined in section 1027.100 of 

7 title 31, Code of Federal Regulations. 

8 (11) PERSON.—The term ‘‘person’’ means an in9 dividual or entity as determined by the Secretary of 

10 State and the Secretary of the Treasury. 

11 (12) SIGNIFICANT ACTIVITIES UNDERMINING

12 CYBER SECURITY.—The term ‘‘significant activities 

13 undermining cyber security’’ means— 

14 (A) significant efforts to— 

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

16 or destroy an information and communica17 tions technology system or network; or 

18 (ii) exfiltrate information from such a 

19 system or network without authorization; 

20 (B) significant destructive malware attacks; 

21 (C) significant denial of service activities; 

22 or 

23 (D) such other significant activities as may 

24 be described in regulations promulgated to im25 plement section 104. 


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1 (13) UNITED STATES PERSON.—The term 

2 ‘‘United States person’’ means— 

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

4 United States or who owes permanent allegiance 

5 to the United States; and 

6 (B) a corporation or other legal entity 

7 which is organized under the laws of the United 

8 States, any State or territory thereof, or the Dis9 trict of Columbia, if natural persons described in 

10 subparagraph (A) own, directly or indirectly, 

11 more than 50 percent of the outstanding capital 

12 stock or other beneficial interest in such legal en13 tity. 

14 TITLE I—INVESTIGATIONS, PRO15 HIBITED CONDUCT, AND PEN16 ALTIES 

17 SEC. 101. STATEMENT OF POLICY. 

18 In order to achieve the peaceful disarmament of North 

19 Korea, Congress finds that it is necessary— 

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

21 implement United Nations Security Council Resolu22 tion 2094 (2013); 

23 (2) to sanction— 

24 (A) persons that facilitate proliferation of 

25 weapons of mass destruction, illicit activities, 


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1 arms trafficking, imports of luxury goods, cash 

2 smuggling, censorship, and knowingly engage in 

3 significant activities undermining cyber security 

4 by the Government of North Korea; and 

5 (B) persons that fail to exercise due dili6 gence to ensure that financial institutions do not 

7 facilitate any of the activities described in sub8 paragraph (A) by the Government of North 

9 Korea; 

10 (3) to deny the Government of North Korea ac11 cess to the funds it uses to obtain nuclear weapons, 

12 ballistic missiles, offensive cyber capabilities, and lux13 ury goods instead of providing for the needs of its 

14 people; and 

15 (4) to enforce sanctions in a manner that avoids 

16 any adverse humanitarian impact on the people of 

17 North Korea to the extent possible and in a manner 

18 that does not unduly constrain the enforcement of 

19 such sanctions. 

20 SEC. 102. INVESTIGATIONS. 

21 The President shall initiate an investigation into the 

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

23 receipt by the President of credible information indicating 

24 that such person has engaged in conduct described in section 

25 104(a). 


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1 SEC. 103. BRIEFING TO CONGRESS. 

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

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

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

7 (1) The principal foreign assets and sources of 

8 foreign income of the Government of North Korea. 

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

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

12 sanctions were waived or removed under section 207. 

13 (4) A summary of any diplomatic efforts made 

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

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

19 Bank. 

20 SEC. 104. DESIGNATION OF PERSONS FOR PROHIBITED 

21 CONDUCT AND MANDATORY AND DISCRE22 TIONARY DESIGNATION AND SANCTIONS AU23 THORITIES. 

24 (a) PROHIBITED CONDUCT AND MANDATORY DESIGNA25 TION AND SANCTIONS AUTHORITY.— 


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1 (1) CONDUCT DESCRIBED.—Except as provided 

2 in section 207, the President shall designate under 

3 this subsection any person the President determines 

4 to— 

5 (A) have knowingly engaged in significant 

6 activities or transactions with the Government of 

7 North Korea that have materially contributed to 

8 the proliferation of weapons of mass destruction 

9 or their means of delivery (including missiles ca10 pable of delivering such weapons), including any 

11 efforts to manufacture, acquire, possess, develop, 

12 transport, transfer, or use such items; 

13 (B) have knowingly imported, exported, or 

14 reexported to, into, or from North Korea any sig15 nificant arms or related materiel, whether di16 rectly or indirectly; 

17 (C) have knowingly provided significant 

18 training, advice, or other services or assistance, 

19 or engaged in significant transactions, related to 

20 the manufacture, maintenance, or use of any 

21 arms or related materiel to be imported, ex22 ported, or reexported to, into, or from North 

23 Korea, or following their importation, expor24 tation, or reexportation to, into, or from North 

25 Korea, whether directly or indirectly; 


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1 (D) have knowingly, directly or indirectly, 

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

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

6 North Korea, including prohibiting, limiting, or 

7 penalizing the exercise of freedom of expression 

8 or assembly, limiting access to print, radio or 

9 other broadcast media, Internet or other elec10 tronic communications, or the facilitation or 

11 support of intentional frequency manipulation 

12 that would jam or restrict an international sig13 nal; 

14 (F) have knowingly engaged in or been re15 sponsible for serious human rights abuses by the 

16 Government of North Korea, including torture or 

17 cruel, inhuman, or degrading treatment or pun18 ishment, prolonged detention without charges 

19 and trial, forced labor or trafficking in persons, 

20 causing the disappearance of persons by the ab21 duction and clandestine detention of those per22 sons, and other denial of the right to life, liberty, 

23 or the security of a person; 

24 (G) have knowingly, directly or indirectly, 

25 engaged in acts of money laundering, the counVerDate Sep 11 2014 21:28 Jan 11, 2016 Jkt 059200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6203 E:\BILLS\H757.RH H757

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1 terfeiting of goods or currency, bulk cash smug2 gling, narcotics trafficking, or other illicit activ3 ity that involves or supports the Government of 

4 North Korea or any senior official thereof, 

5 whether directly or indirectly; or 

6 (H) have knowingly attempted to engage in 

7 any of the conduct described in subparagraphs 

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

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

10 any person designated under this subsection, the 

11 President— 

12 (A) shall exercise the authorities of the 

13 International Emergency Economic Powers Act 

14 (50 U.S.C. 1705 et seq.) to block all property 

15 and interests in property of any person des16 ignated under this subsection that are in the 

17 United States, that hereafter come within the 

18 United States, or that are or hereafter come 

19 within the possession or control of any United 

20 States person, including any overseas branch; 

21 and 

22 (B) may apply any of the sanctions de23 scribed in sections 204, 205(c), and 206. 

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

25 section 206 of the International Emergency Economic 


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

2 who violates, attempts to violate, conspires to violate, 

3 or causes a violation of any prohibition provided for 

4 in this subsection, or of an order or regulation pre5 scribed under this Act, to the same extent that such 

6 penalties apply to a person that commits an unlawful 

7 act described in section 206(a) of that Act (50 U.S.C. 

8 1705(a)). 

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

10 ‘‘trafficking in persons’’ has the meaning given the 

11 term in section 103(9) of the Trafficking Victims Pro12 tection Act of 2000 (22 U.S.C. 7102(9)). 

13 (b) DISCRETIONARY DESIGNATION AND SANCTIONS

14 AUTHORITY.— 

15 (1) CONDUCT DESCRIBED.—Except as provided 

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

17 the President may designate under this subsection 

18 any person that the President determines to— 

19 (A) have knowingly engaged in, contributed 

20 to, assisted, sponsored, or provided financial, 

21 material or technological support for, or goods 

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

23 evasion of, an applicable United Nations Secu24 rity Council resolution; 


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1 (B) have knowingly facilitated the transfer 

2 of any funds, financial assets, or economic re3 sources of, or property or interests in property of 

4 a person designated under an applicable Execu5 tive order, or by the United Nations Security 

6 Council pursuant to an applicable United Na7 tions Security Council resolution; 

8 (C) have knowingly facilitated the transfer 

9 of any funds, financial assets, or economic re10 sources, or any property or interests in property 

11 derived from, involved in, or that has materially 

12 contributed to conduct prohibited by subsection 

13 (a) or an applicable United Nations Security 

14 Council resolution; 

15 (D) have knowingly facilitated any trans16 action, including any transaction in bulk cash 

17 or other stores of value, without applying en18 hanced monitoring to ensure that such trans19 action does not contribute materially to conduct 

20 described in subsection (a) an applicable Execu21 tive order, or an applicable United Nations Se22 curity Council resolution; 

23 (E) have knowingly facilitated any trans24 actions in cash or monetary instruments or other 

25 stores of value, including through cash couriers 


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1 transiting to or from North Korea, used to facili2 tate any conduct prohibited by an applicable 

3 United Nations Security Council resolution; 

4 (F) have knowingly, directly or indirectly, 

5 engaged in significant activities undermining 

6 cyber security for, in support of on behalf of, the 

7 Government of North Korea or any senior offi8 cial thereof, or have knowingly contributed to the 

9 bribery of an official of the Government of North 

10 Korea, the misappropriation, theft, or embezzle11 ment of public funds by, or for the benefit of, an 

12 official of the Government of North Korea, or the 

13 use of any proceeds of any such conduct; or 

14 (G) have knowingly and materially assisted, 

15 sponsored, or provided significant financial, ma16 terial, or technological support for, or goods or 

17 services to or in support of, the conduct described 

18 in subparagraphs (A) through (F) of this para19 graph or the conduct described in subparagraphs 

20 (A) through (G) of subsection (a)(1). 

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

22 any person designated under this subsection, the 

23 President— 

24 (A) may apply the sanctions described in 

25 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 jurisdiction 

6 of the United States and in which such person 

7 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 IN

8 PROPERTY OF THE GOVERNMENT OF NORTH KOREA AND

9 THE WORKER’S PARTY OF KOREA.—Except as provided in 

10 section 207, the President shall exercise the authorities of 

11 the International Emergency Economic Powers Act (50 

12 U.S.C. 1705 et seq.) to block all property and interests in 

13 property of the Government of North Korea or the Worker’s 

14 Party of Korea that on or after the date of the enactment 

15 of this Act come within the United States, or that come 

16 within the possession or control of any United States per17 son, including any overseas branch. 

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

19 subsection (a) or (b) and the blocking of property and inter20 ests in property under subsection (c) shall also apply with 

21 respect to a person who is determined to be owned or con22 trolled by, or to have acted or purported to act for or on 

23 behalf of, directly or indirectly, any person whose property 

24 and interests in property are blocked pursuant to this sec25 tion. 


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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 Presi4 dent shall promulgate regulations prohibiting United 

5 States persons from engaging in any transaction in6 volving 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 suf16 ficient financial controls to ensure that such trans17 action will not facilitate any of the conduct described 

18 in subsection (a) or subsection (b). 

19 (3) LICENSING AUTHORIZATION.— 

20 (A) IN GENERAL.—Subject to subparagraph 

21 (B), the President may issue regulations to au22 thorize— 

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 not 

5 issue regulations to authorize transactions under 

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

7 transactions include any transactions with the 

8 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 a 

17 violation, of section 104(a) of the North Korea Sanc18 tions 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 the 

2 following: ‘‘, or the North Korea Sanctions Enforce3 ment 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 En8 ergy Act of 1954’’ and inserting ‘‘section 92 of the 

9 Atomic Energy Act of 1954’’; and 

10 (2) by adding at the end the following: ‘‘, or sec11 tion 104(a) of the North Korea Sanctions Enforce12 ment 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 findings: 

24 (1) The Undersecretary of the Treasury for Ter25 rorism and Financial Intelligence, who is responsible 


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1 for safeguarding the financial system against illicit 

2 use, money laundering, terrorist financing, and the 

3 proliferation of weapons of mass destruction, has re4 peatedly expressed concern about North Korea’s mis5 use of the international financial system as follows: 

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

7 given North Korea’s ‘‘counterfeiting of U.S. cur8 rency, narcotics trafficking and use of accounts 

9 worldwide to conduct proliferation-related trans10 actions, the line between illicit and licit North 

11 Korean money is nearly invisible’’ and urged fi12 nancial institutions worldwide to ‘‘think care13 fully about the risks of doing any North Korea14 related business.’’. 

15 (B) In 2011, the Undersecretary stated that 

16 ‘‘North Korea remains intent on engaging in 

17 proliferation, selling arms as well as bringing in 

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

19 effort to establish front companies.’’. 

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

21 reference to North Korea’s distribution of high22 quality counterfeit United States currency, that 

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

24 supernote into the international financial sys25 tem,’’ and that the Department of the Treasury 


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1 would soon introduce new currency with im2 proved security features to protect against coun3 terfeiting by the Government of North Korea. 

4 (2) The Financial Action Task Force, an inter5 governmental body whose purpose is to develop and 

6 promote national and international policies to com7 bat money laundering and terrorist financing, has re8 peatedly— 

9 (A) expressed concern at deficiencies in 

10 North Korea’s regimes to combat money laun11 dering and terrorist financing; 

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

13 action to address significant deficiencies in these 

14 regimes and the serious threat they pose to the 

15 integrity of the international financial system; 

16 (C) urged all jurisdictions to apply counter17 measures to protect the international financial 

18 system from ongoing and substantial money 

19 laundering and terrorist financing risks ema20 nating from North Korea; 

21 (D) urged all jurisdictions to advise their 

22 financial institutions to give special attention to 

23 business relationships and transactions with 

24 North Korea, including North Korean companies 

25 and financial institutions; and 


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1 (E) called on all jurisdictions to protect 

2 against correspondent relationships being used to 

3 bypass or evade countermeasures and risk miti4 gation practices, and take into account money 

5 laundering and terrorist financing risks when 

6 considering requests by North Korean financial 

7 institutions to open branches and subsidiaries in 

8 their jurisdiction. 

9 (3) On March 7, 2013, the United Nations Secu10 rity Council unanimously adopted Resolution 2094, 

11 which— 

12 (A) welcomed the Financial Action Task 

13 Force’s recommendation on financial sanctions 

14 related to proliferation, and its guidance on the 

15 implementation of sanctions; 

16 (B) decided that Member States should 

17 apply enhanced monitoring and other legal 

18 measures to prevent the provision of financial 

19 services or the transfer of property that could 

20 contribute to activities prohibited by applicable 

21 United Nations Security Council resolutions; 

22 and 

23 (C) called on Member States to prohibit 

24 North Korean banks from establishing or main25 taining correspondent relationships with banks 


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1 in their jurisdictions, to prevent the provision of 

2 financial services, if they have information that 

3 provides reasonable grounds to believe that these 

4 activities could contribute to activities prohibited 

5 by an applicable United Nations Security Coun6 cil resolution, or to the evasion of such prohibi7 tions. 

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

10 MONEY LAUNDERING CONCERN.—Congress— 

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

13 require enhanced monitoring of, transactions involv14 ing North Korean financial institutions that could 

15 contribute to sanctioned activities; 

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

17 immediately designate North Korea as a jurisdiction 

18 of primary money laundering concern, and to adopt 

19 stringent special measures to safeguard the financial 

20 system against the risks posed by North Korea’s will21 ful evasion of sanctions and its illicit activities; and 

22 (3) urges the President to seek the prompt imple23 mentation by other states of enhanced monitoring and 

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

25 international financial system, including by sharing 


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1 information about activities, transactions, and prop2 erty that could contribute to activities sanctioned by 

3 applicable United Nations Security Council resolu4 tions, or to the evasion of sanctions. 

5 (c) DETERMINATIONS REGARDING NORTH KOREA.— 

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

7 shall, not later than 180 days after the date of the en8 actment of this Act, determine, in consultation with 

9 the Secretary of State and Attorney General, and in 

10 accordance with section 5318A of title 31, United 

11 States Code, whether reasonable grounds exist for con12 cluding that North Korea is a jurisdiction of primary 

13 money laundering concern. 

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

15 Treasury determines under this subsection that rea16 sonable grounds exist for finding that North Korea is 

17 a jurisdiction of primary money laundering concern, 

18 the Secretary of the Treasury, in consultation with 

19 the Federal functional regulators, shall impose one or 

20 more of the special measures described in paragraphs 

21 (1) through (5) of section 5318A(b) of title 31, United 

22 States Code, with respect to the jurisdiction of North 

23 Korea. 

24 (3) REPORT REQUIRED.— 


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

2 Treasury determines that North Korea is a juris3 diction of primary money laundering concern, 

4 the Secretary of the Treasury shall, not later 

5 than 90 days after the date on which the Sec6 retary makes such determination, submit to the 

7 appropriate congressional committees a report 

8 on the determination made under paragraph (1) 

9 together with the reasons for that determination. 

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

11 submitted under this paragraph shall be sub12 mitted in unclassified form but may contain a 

13 classified annex. 

14 SEC. 202. ENSURING THE CONSISTENT ENFORCEMENT OF 

15 UNITED NATIONS SECURITY COUNCIL RESO16 LUTIONS AND FINANCIAL RESTRICTIONS ON 

17 NORTH KOREA. 

18 (a) FINDINGS.—Congress finds that— 

19 (1) all states and jurisdictions are obligated to 

20 implement and enforce applicable United Nations Se21 curity Council resolutions fully and promptly, includ22 ing by— 

23 (A) blocking the property of, and ensuring 

24 that any property is prevented from being made 

25 available to, persons designated by the Security 


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1 Council under applicable United Nations Secu2 rity Council resolutions; 

3 (B) blocking any property associated with 

4 an activity prohibited by applicable United Na5 tions Security Council resolutions; and 

6 (C) preventing any transfer of property and 

7 any provision of financial services that could 

8 contribute to an activity prohibited by applica9 ble United Nations Security Council resolutions, 

10 or to the evasion of sanctions under such resolu11 tions; 

12 (2) all states and jurisdictions share a common 

13 interest in protecting the international financial sys14 tem from the risks of money laundering and illicit 

15 transactions emanating from North Korea; 

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

17 the world’s principal reserve currencies, and the 

18 United States and the European Union are primarily 

19 responsible for the protection of the international fi20 nancial system from these risks; 

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

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

23 essential to the enforcement of applicable United Na24 tions Security Council resolutions and to the protec25 tion of the international financial system; 


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

2 pursuant to United Nations Security Council Resolu3 tion 1874, dated June 11, 2013, expressed concern 

4 about the ability of banks in states with less effective 

5 regulators and those unable to afford effective compli6 ance to detect and prevent illicit transfers involving 

7 North Korea; 

8 (6) North Korea has historically exploited incon9 sistencies between jurisdictions in the interpretation 

10 and enforcement of financial regulations and applica11 ble United Nations Security Council resolutions to 

12 circumvent sanctions and launder the proceeds of il13 licit activities; 

14 (7) Amroggang Development Bank, Bank of East 

15 Land, and Tanchon Commercial Bank have been des16 ignated by the Secretary of the Treasury, the United 

17 Nations Security Council, and the European Union; 

18 (8) Korea Daesong Bank and Korea Kwangson 

19 Banking Corporation have been designated by the 

20 Secretary of the Treasury and the European Union; 

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

22 been designated by the Secretary of the Treasury for 

23 facilitating transactions on behalf of persons linked to 

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

25 financial node’’; and 


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1 (10) Daedong Credit Bank has been designated 

2 by the Secretary of the Treasury for activities prohib3 ited by applicable United Nations Security Council 

4 resolutions, including the use of deceptive financial 

5 practices to facilitate transactions on behalf of per6 sons linked to North Korea’s proliferation network. 

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

8 that the President should intensify diplomatic efforts, both 

9 in appropriate international fora such as the United Na10 tions and bilaterally, to develop and implement a coordi11 nated, consistent, multilateral strategy for protecting the 

12 global financial system against risks emanating from North 

13 Korea, including— 

14 (1) the cessation of any financial services whose 

15 continuation is inconsistent with applicable United 

16 Nations Security Council resolutions; 

17 (2) the cessation of any financial services to per18 sons, including financial institutions, that present 

19 unacceptable risks of facilitating money laundering 

20 and illicit activity by the Government of North 

21 Korea; 

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

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1 erty required to be blocked under applicable United 

2 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 of, 

7 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 intellec12 tual property by the Government of North Korea, di13 rectly or indirectly from United States persons; and 

14 (6) the blocking of any property of persons di15 rectly or indirectly involved in censorship or human 

16 rights abuses by the Government of North Korea. 

17 SEC. 203. PROLIFERATION PREVENTION SANCTIONS. 

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

19 (1) IN GENERAL.—Subject to section 

20 207(a)(2)(C) of this Act, a license shall be required 

21 for the export to North Korea of any goods or tech22 nology subject to the Export Administration Regula23 tions (part 730 of title 15, Code of Federal Regula24 tions) without regard to whether the Secretary of 

25 State has designated North Korea as a country the 


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1 government of which has provided support for acts of 

2 international terrorism, as determined by the Sec3 retary of State under section 6(j) of the Export Ad4 ministration Act of 1979 (50 U.S.C. App. 2045), as 

5 continued in effect under the International Emer6 gency Economic Powers Act. 

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

8 export to North Korea of any goods or technology as 

9 described in paragraph (1) shall be subject to a pre10 sumption of denial. 

11 (b) TRANSACTIONS WITH COUNTRIES SUPPORTING

12 ACTS OF INTERNATIONAL TERRORISM.— 

13 (1) ARMS EXPORT CONTROL ACT PROHIBI14 TIONS.—The prohibitions and restrictions described 

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

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

17 that Act, shall also apply to exporting or otherwise 

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

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

20 the Government of North Korea without regard to 

21 whether or not North Korea is a country with respect 

22 to which subsection (d) of such section (relating to 

23 designation of state sponsors of terrorism) applies. 

24 (2) FINANCIAL TRANSACTIONS.—Except as pro25 vided in section 207 of this Act and the North Korean 


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1 Human Rights Act of 2004 (22 U.S.C. 7801 et seq.), 

2 the penalties provided for in section 2332d of title 18, 

3 United States Code, shall apply to a United States 

4 person that engages in a financial transaction with 

5 the Government of North Korea on or after the date 

6 of the enactment of this Act to the same extent that 

7 such penalties apply to a United States citizen that 

8 commits an unlawful act described in section 2332d 

9 of title 18, United States Code. 

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

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

13 assistance under the Foreign Assistance Act of 1961 

14 (22 U.S.C. 2151 et seq.) to any country that provides 

15 lethal military equipment to, or receives lethal mili16 tary equipment from, the Government of North Korea. 

17 (2) APPLICABILITY.—The prohibition under this 

18 subsection with respect to a country shall terminate 

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

20 such country ceases to provide lethal military equip21 ment to the Government of North Korea. 

22 (3) WAIVER.—The President may, on a case-by23 case basis, waive the prohibition under this subsection 

24 with respect to a country for a period of not more 

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1 tional periods of not more than 180 days, if the Presi2 dent determines and so reports to the appropriate 

3 congressional committees that it is vital to the na4 tional security interests of the United States to exer5 cise such waiver authority. 

6 SEC. 204. PROCUREMENT SANCTIONS. 

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

8 the United States Government may not procure, or enter 

9 into any contract for the procurement of, any goods or serv10 ices from any designated person. 

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

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

13 shall be revised to require a certification from each person 

14 that is a prospective contractor that such person does not 

15 engage in any of the conduct described in subsection (a) 

16 or (b) of section 104. Such revision shall apply with respect 

17 to contracts in an amount greater than the simplified ac18 quisition threshold (as defined in section 134 of title 41, 

19 United States Code) for which solicitations are issued on 

20 or after the date that is 90 days after the date of the enact21 ment of this Act. 

22 (c) TERMINATION OF CONTRACTS AND INITIATION OF

23 SUSPENSION AND DEBARMENT PROCEEDING.— 

24 (1) TERMINATION OF CONTRACTS.—Except as 

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


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1 agency shall terminate a contract with a person who 

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

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

4 may waive the requirement under paragraph (1) with 

5 respect to a person based upon a written finding of 

6 urgent and compelling circumstances significantly af7 fecting the interests of the United States. If the head 

8 of an executive agency waives the requirement under 

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

10 shall submit to the appropriate congressional commit11 tees, within 30 days after the waiver is made, a re12 port containing the rationale for the waiver and rel13 evant information supporting the waiver decision. 

14 (3) INITIATION OF SUSPENSION AND DEBARMENT

15 PROCEEDING.—The head of an executive agency shall 

16 initiate a suspension and debarment proceeding 

17 against a person who has provided a false certifi18 cation under subsection (b). Upon determination of 

19 suspension, debarment, or proposed debarment, the 

20 agency shall ensure that such person is entered into 

21 the Governmentwide database containing the list of 

22 all excluded parties ineligible for Federal programs 

23 pursuant to Executive Order No. 12549 (31 U.S.C. 

24 6101 note; relating to debarment and suspension) and 


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1 Executive Order No. 12689 (31 U.S.C. 6101 note; re2 lating to debarment and suspension). 

3 (d) CLARIFICATION REGARDING CERTAIN PROD4 UCTS.—The remedies specified in subsections (a) through 

5 (c) shall not apply with respect to the procurement of eligi6 ble products, as defined in section 308(4) of the Trade 

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

8 country or instrumentality designated under section 301(b) 

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

10 (e) RULE OF CONSTRUCTION.—Nothing in this sub11 section may be construed to limit the use of other remedies 

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

13 official of the Federal Government on the basis of a deter14 mination of a false certification under subsection (b). 

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

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

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

18 SEC. 205. ENHANCED INSPECTIONS AUTHORITIES. 

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

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

21 days thereafter, the President, acting through the Secretary 

22 of Homeland Security, shall submit to the appropriate con23 gressional committees, the Committee on Homeland Secu24 rity of the House of Representatives, and the Committee on 

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1 ate, a report identifying foreign sea ports and airports 

2 whose inspections of ships, aircraft, and conveyances origi3 nating in North Korea, carrying North Korean property, 

4 or operated by the Government of North Korea are deficient 

5 to effectively prevent the facilitation of any of the activities 

6 described in section 104(a). 

7 (b) ENHANCED SECURITY TARGETING REQUIRE8 MENTS.—Not later than 180 days after the identification 

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

10 Secretary of Homeland Security shall, utilizing the Auto11 mated Targeting System operated by the National Tar12 geting Center in U.S. Customs and Border Protection, re13 quire enhanced screening procedures to determine if phys14 ical inspections are warranted of any cargo bound for or 

15 landed in the United States that has been transported 

16 through such sea port or airport if there are reasonable 

17 grounds to believe that such cargo contains goods prohibited 

18 under this Act. 

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

20 conveyance used to facilitate any of the activities described 

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

22 United States may be seized and forfeited under chapter 

23 46 of title 18, United States Code, or under the Tariff Act 

24 of 1930. 


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1 SEC. 206. TRAVEL SANCTIONS. 

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

3 PAROLE.— 

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

5 (or an alien who is a corporate officer of a person (as 

6 defined in subparagraph (B) or (C) of section 3(11))) 

7 who the Secretary of State or the Secretary of Home8 land Security (or a designee of one of such Secre9 taries) knows, or has reasonable grounds to believe, is 

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

11 is— 

12 (A) inadmissible to the United States; 

13 (B) ineligible to receive a visa or other doc14 umentation to enter the United States; and 

15 (C) otherwise ineligible to be admitted or 

16 paroled into the United States or to receive any 

17 other benefit under the Immigration and Nation18 ality Act (8 U.S.C. 1101 et seq.). 

19 (2) CURRENT VISAS REVOKED.— 

20 (A) IN GENERAL.—The issuing consular of21 ficer, the Secretary of State, or the Secretary of 

22 Homeland Security (or a designee of one of such 

23 Secretaries) shall revoke any visa or other entry 

24 documentation issued to an alien who is de25 scribed in subsection (a)(1) or (b)(1) of section 

26 104 regardless of when issued. 


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1 (B) EFFECT OF REVOCATION.—A revocation 

2 under subparagraph (A)— 

3 (i) shall take effect immediately; and 

4 (ii) shall automatically cancel any 

5 other valid visa or entry documentation 

6 that is in the alien’s possession. 

7 (b) EXCEPTION TO COMPLY WITH UNITED NATIONS

8 HEADQUARTERS AGREEMENT.—Sanctions under sub9 section (a)(1)(B) shall not apply to an alien if admitting 

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

11 United States to comply with the Agreement regarding the 

12 Headquarters of the United Nations, signed at Lake Success 

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

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

15 applicable international obligations. 

16 SEC. 207. EXEMPTIONS, WAIVERS, AND REMOVALS OF DES17 IGNATION. 

18 (a) EXEMPTIONS.— 

19 (1) MANDATORY EXEMPTIONS.—The following 

20 activities shall be exempt from sanctions under sec21 tion 104: 

22 (A) Activities subject to the reporting re23 quirements of title V of the National Security 

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


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1 authorized intelligence activities of the United 

2 States. 

3 (B) Any transaction necessary to comply 

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

6 States of America regarding the Headquarters of 

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

8 entered into force on November 21, 1947, or 

9 under the Vienna Convention on Consular Rela10 tions, signed April 24, 1963, and entered into 

11 force on March 19, 1967, or under other inter12 national agreements. 

13 (2) DISCRETIONARY EXEMPTIONS.—The fol14 lowing activities may be exempt from sanctions under 

15 section 104 as determined by the President: 

16 (A) Any financial transaction the exclusive 

17 purpose for which is to provide humanitarian 

18 assistance to the people of North Korea. 

19 (B) Any financial transaction the exclusive 

20 purpose for which is to import food products into 

21 North Korea, if such food items are not defined 

22 as luxury goods. 

23 (C) Any transaction the exclusive purpose 

24 for which is to import agricultural products, 

25 medicine, or medical devices into North Korea, 


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1 provided that such supplies or equipment are 

2 classified as designated ‘‘EAR 99’’ under the Ex3 port Administration Regulations (part 730 of 

4 title 15, Code of Federal Regulations) and not 

5 controlled under— 

6 (i) the Export Administration Act of 

7 1979 (50 U.S.C. App. 2401 et seq.), as con8 tinued in effect under the International 

9 Emergency Economic Powers Act (50 

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

11 (ii) the Arms Export Control Act (22 

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

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

14 Proliferation Prevention Act of 1994 (22 

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

16 (iv) the Chemical and Biological 

17 Weapons Control and Warfare Elimination 

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

19 (b) WAIVER.—The President may waive, on a case-by20 case basis, the imposition of sanctions for a period of not 

21 more than one year, and may renew that waiver for addi22 tional periods of not more than one year, any sanction or 

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

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1 mittees a written determination that the waiver meets one 

2 or more of the following requirements: 

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

4 national security interests of the United States. 

5 (2) The waiver will further the enforcement of 

6 this Act or is for an important law enforcement pur7 pose. 

8 (3) The waiver is for an important humani9 tarian purpose, including any of the purposes de10 scribed in section 4 of the North Korean Human 

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

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

13 prescribe rules and regulations for the removal of sanctions 

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

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

16 with respect to such sanctions if the President determines 

17 that the designated person has verifiably ceased its partici18 pation in any of the conduct described in subsection (a) 

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

20 assurances that it will abide by the requirements of this 

21 Act. 

22 (d) FINANCIAL SERVICES FOR CERTAIN ACTIVITIES.— 

23 The President may promulgate regulations, rules, and poli24 cies as may be necessary to facilitate the provision of finan25 cial services by a foreign financial institution that is not 


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1 controlled by the Government of North Korea in support 

2 of the activities subject to exemption under this section. 

3 SEC. 208. REPORT ON THOSE RESPONSIBLE FOR KNOW4 INGLY ENGAGING IN SIGNIFICANT ACTIVI5 TIES UNDERMINING CYBER SECURITY. 

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

7 appropriate congressional committees a report on signifi8 cant activities undermining cyber security conducted, or 

9 otherwise ordered or controlled, directly or indirectly, by 

10 the Government of North Korea, including— 

11 (1) the identity and nationality of persons that 

12 have knowingly engaged in, directed, or provided ma13 terial support to significant activities undermining 

14 cyber security by the Government of North Korea; 

15 (2) the conduct engaged in by each person identi16 fied; 

17 (3) the extent to which a foreign government has 

18 provided material support to significant activities 

19 undermining cyber security conducted, or otherwise 

20 ordered or controlled by, the Government of North 

21 Korea; and 

22 (4) the efforts made by the United States to en23 gage foreign governments to halt the capability of 

24 North Korea to conduct significant activities under25 mining cyber security. 


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1 (b) SUBMISSION AND FORM.— 

2 (1) SUBMISSION.—The report required under 

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

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

5 180 days thereafter for a period not to exceed 3 years. 

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

7 (a) shall be submitted in an unclassified form, but 

8 may contain a classified annex. 

9 SEC. 209. SENSE OF CONGRESS THAT TRILATERAL CO10 OPERATION AMONG THE UNITED STATES, 

11 JAPAN, AND THE REPUBLIC OF KOREA IS 

12 CRUCIAL TO THE STABILITY OF THE ASIA-PA13 CIFIC REGION. 

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

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

16 of Korea (South Korea) share the values of democ17 racy, free and open markets, the rule of law, and re18 spect for human rights. 

19 (2) The alliance relationship between the United 

20 States, Japan, and South Korea are critical to peace 

21 and security in the Asia-Pacific region. 

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

23 are committed to continuing diplomatic efforts to en24 sure continued peace and stability in the Asia-Pacific 

25 region. 


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

2 Japan, and South Korea finalized a trilateral mili3 tary intelligence-sharing arrangement concerning the 

4 nuclear and missile threats posed by North Korea. 

5 (5) The trilateral military intelligence-sharing 

6 arrangement reinforces and strengthens the commit7 ment between the United States, Japan, and South 

8 Korea toward a Korean Peninsula free of nuclear 

9 weapons. 

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

11 that North Korea’s nuclear and ballistic missile programs 

12 are of mutual concern to the United States, Japan, and 

13 South Korea and a trilateral military intelligence-sharing 

14 arrangement is essential to the security of each nation and 

15 the Asia-Pacific region. 

16 SEC. 210. REPORT ON NUCLEAR PROGRAM COOPERATION 

17 BETWEEN NORTH KOREA AND IRAN. 

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

19 Committee on Foreign Affairs of the House of Representa20 tives and the Committee on Foreign Relations of the Senate 

21 a report on cooperation between North Korea and Iran on 

22 their nuclear programs, including the identity of Iranian 

23 and North Korean persons that have knowingly engaged in 

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1 change of information between North Korea and Iran on 

2 their respective nuclear programs. 

3 (b) SUBMISSION AND FORM.— 

4 (1) SUBMISSION.—The report required under 

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

6 days after the date of enactment of this Act. 

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

8 (a) shall be submitted in an unclassified form, but 

9 may contain a classified annex. 

10 TITLE III—PROMOTION OF 

11 HUMAN RIGHTS 

12 SEC. 301. INFORMATION TECHNOLOGY. 

13 Section 104 of the North Korean Human Rights Act 

14 of 2004 (22 U.S.C. 7814) is amended by inserting after sub15 section (c) the following new subsection: 

16 ‘‘(d) INFORMATION TECHNOLOGY STUDY.— 

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

18 after the date of the enactment of this subsection, the 

19 President shall submit to the appropriate congres20 sional committees a report setting forth a detailed 

21 plan for making unrestricted, unmonitored, and inex22 pensive, radio, Internet, and electronic mass commu23 nications available to the people of North Korea. 


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

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

3 contain a classified annex.’’. 

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

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

6 to the appropriate congressional committees a report de7 scribing, with respect to each political prison camp in 

8 North Korea to the extent information is available— 

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

10 (2) the camp’s geographical coordinates; 

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

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

13 and the end users of any goods produced in such 

14 camp; 

15 (5) the natural persons and agencies responsible 

16 for conditions in the camp; 

17 (6) the conditions under which prisoners are 

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

19 medical care, working conditions, and reports of ill20 treatment of prisoners; and 

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

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

23 compromise the sources and methods used by the in24 telligence agencies of the United States to capture 

25 geospatial imagery. 


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

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

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

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

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

6 annual human rights report). 

7 SEC. 303. REPORT ON PERSONS WHO ARE RESPONSIBLE 

8 FOR SERIOUS HUMAN RIGHTS ABUSES OR 

9 CENSORSHIP IN NORTH KOREA. 

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

11 to the appropriate congressional committees a report that 

12 contains an identification of each person the Secretary de13 termines to be responsible for serious human rights abuses 

14 or censorship in North Korea and a description of such 

15 abuses or censorship engaged in by such person. The report 

16 shall include a description of actions taken by the Depart17 ment of State to implement or support the recommendations 

18 of the Commission of Inquiry’s Report on Human Rights 

19 in the Democratic People’s Republic of North Korea, includ20 ing efforts to press China and other countries to implement 

21 Commission recommendations. 

22 (b) CONSIDERATION.—In preparing the report re23 quired under subsection (a), the Secretary of State shall 

24 give due consideration to the findings of the United Nations 

25 Commission of Inquiry on Human Rights in North Korea, 


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1 and shall make specific findings with respect to the respon2 sibility of Kim Jong Un, and of each natural person who 

3 is a member of the National Defense Commission of North 

4 Korea, or the Organization and Guidance Department of 

5 the Workers’ Party of Korea, for serious human rights 

6 abuses and censorship. 

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

8 designate under section 104(a) any person listed in the re9 port required under subsection (a) as responsible for serious 

10 human rights abuses or censorship in North Korea. 

11 (d) SUBMISSION AND FORM.— 

12 (1) SUBMISSION.—The report required under 

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

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

15 every 180 days thereafter for a period not to exceed 

16 3 years, shall be included in each report required 

17 under sections 116(d) and 502B(b) of the Foreign As18 sistance Act of 1961 (22 U.S.C. 2151n(d) and 

19 2304(b)) (relating to the annual human rights re20 port). 

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

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

23 include a classified annex. The Secretary of State 

24 shall also publish the unclassified part of the report 

25 on the Department of State’s Web site. 


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1 TITLE IV—GENERAL 

2 AUTHORITIES 

3 SEC. 401. SUSPENSION OF SANCTIONS AND OTHER MEAS4 URES. 

5 (a) IN GENERAL.—Any sanction or other measure pro6 vided for in title I (or any amendment made by title I) 

7 or title II may be suspended for up to 365 days upon certifi8 cation by the President to the appropriate congressional 

9 committees that the Government of North Korea has— 

10 (1) verifiably ceased its counterfeiting of United 

11 States currency, including the surrender or destruc12 tion of specialized materials and equipment used for 

13 or particularly suitable for counterfeiting; 

14 (2) taken significant steps toward financial 

15 transparency to comply with generally accepted pro16 tocols to cease and prevent the laundering of mone17 tary instruments; 

18 (3) taken significant steps toward verification of 

19 its compliance with United Nations Security Council 

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

21 (4) taken significant steps toward accounting for 

22 and repatriating the citizens of other countries ab23 ducted or unlawfully held captive by the Government 

24 of North Korea or detained in violation of the 1953 

25 Armistice Agreement; 


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1 (5) accepted and begun to abide by internation2 ally recognized standards for the distribution and 

3 monitoring of humanitarian aid; 

4 (6) provided credible assurances that it will not 

5 support further acts of international terrorism; 

6 (7) taken significant and verified steps to im7 prove living conditions in its political prison camps; 

8 and 

9 (8) made significant progress in planning for 

10 unrestricted family reunification meetings, including 

11 for those individuals among the two million strong 

12 Korean-American community who maintain family 

13 ties with relatives in North Korea. 

14 (b) RENEWAL OF SUSPENSION.—The suspension de15 scribed in subsection (a) may be renewed for additional con16 secutive periods of 180 days upon certification by the Presi17 dent to the appropriate congressional committees that the 

18 Government of North Korea has continued to comply with 

19 the conditions described in subsection (a) during the pre20 vious year. 

21 SEC. 402. TERMINATION OF SANCTIONS AND OTHER MEAS22 URES. 

23 Any sanction or other measure provided for in title 

24 I (or any amendment made by title I) or title II shall ter25 minate on the date on which the President determines and 


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1 certifies to the appropriate congressional committees that 

2 the Government of North Korea has met the requirements 

3 of section 401, and has also— 

4 (1) completely, verifiably, and irreversibly dis5 mantled all of its nuclear, chemical, biological, and 

6 radiological weapons programs, including all pro7 grams for the development of systems designed in 

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

9 (2) released all political prisoners, including the 

10 citizens of North Korea detained in North Korea’s po11 litical prison camps; 

12 (3) ceased its censorship of peaceful political ac13 tivity; 

14 (4) taken significant steps toward the establish15 ment of an open, transparent, and representative so16 ciety; 

17 (5) fully accounted for and repatriated all citi18 zens of all nations abducted or unlawfully held cap19 tive by the Government of North Korea or detained in 

20 violation of the 1953 Armistice Agreement; and 

21 (6) agreed with the Financial Action Task Force 

22 on a plan of action to address deficiencies in its anti23 money laundering regime and begun to implement 

24 this plan of action. 


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1 SEC. 403. AUTHORITY TO CONSOLIDATE REPORTS. 

2 Any or all reports required to be submitted to appro3 priate congressional committees under this Act or any 

4 amendment made by this Act that are subject to a deadline 

5 for submission consisting of the same unit of time may be 

6 consolidated into a single report that is submitted to appro7 priate congressional committees pursuant to such deadline. 

8 SEC. 404. REGULATIONS. 

9 (a) IN GENERAL.—The President is authorized to pro10 mulgate such rules and regulations as may be necessary to 

11 carry out the provisions of this Act (which may include reg12 ulatory exceptions), including under sections 203 and 205 

13 of the International Emergency Economic Powers Act (50 

14 U.S.C. 1702 and 1704). 

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

16 any amendment made by this Act shall be construed to 

17 limit the authority of the President pursuant to an applica18 ble Executive order or otherwise pursuant to the Inter19 national Emergency Economic Powers Act (50 U.S.C. 1701 

20 et seq.). 

21 SEC. 405. EFFECTIVE DATE. 

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

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

24 date of the enactment of this Act. 


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Union Calendar No. 295 

114TH CONGRESS 

2D SESSION H. R. 757 

[Report No. 114–392, Part I] 

A BILL 

To improve the enforcement of sanctions against 

purposes. the Government of North Korea, and for other 

JANUARY 11, 2016 

Reported from the Committee on Foreign Affairs with an 

amendment 

JANUARY 11, 2016 

The Committees on Ways and Means, the Judiciary, Fito be printed Whole House on the State of the Union and ordered form discharged; committed to the Committee of the nancial Services, and Oversight and Government ReVerDate Sep 11 2014 21:28 Jan 11, 2016 Jkt 059200 PO 00000 Frm 00058 Fmt 6651 Sfmt 6651 E:\BILLS\H757.RH H757

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