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[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 2050 Introduced in Senate (IS)]

<DOC>

116th CONGRESS
  1st Session
                                S. 2050

To require global economic and political pressure to support diplomatic 
   denuclearization of the Korean Peninsula, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                June 28 (legislative day, June 27), 2019

Mr. Gardner (for himself and Mr. Markey) introduced the following bill; 
which was read twice and referred to the Committee on Foreign Relations

_______________________________________________________________________

                                 A BILL

 
To require global economic and political pressure to support diplomatic 
   denuclearization of the Korean Peninsula, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Leverage to 
Enhance Effective Diplomacy Act of 2019'' or the ``LEED Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
 TITLE I--REVIEW OF STRATEGY AND POLICY TOWARD THE DEMOCRATIC PEOPLE'S 
                           REPUBLIC OF KOREA

Sec. 101. Findings.
Sec. 102. Sense of Congress.
Sec. 103. Addressing the evolving threats posed by and capabilities of 
                            the Democratic People's Republic of Korea.
Sec. 104. Briefing on United States engagement with the Democratic 
                            People's Republic of Korea.
Sec. 105. Briefing and strategy relating to use of rocket fuels for 
                            ballistic missiles by the Democratic 
                            People's Republic of Korea.
Sec. 106. Briefing and strategy relating to efforts by the Russian 
                            Federation to block enforcement of United 
                            Nations sanctions.
Sec. 107. Appropriate congressional committees defined.
TITLE II--MEASURES TO ADDRESS THE THREATS POSED BY AND CAPABILITIES OF 
               THE DEMOCRATIC PEOPLE'S REPUBLIC OF KOREA

Sec. 201. Report on effecting a strategy to diplomatically and 
                            economically pressure the Democratic 
                            People's Republic of Korea.
Sec. 202. Authorization to alter United States relations with countries 
                            enabling the Democratic People's Republic 
                            of Korea.
Sec. 203. Authorization to terminate or reduce United States foreign 
                            assistance to countries enabling the 
                            Democratic People's Republic of Korea.
Sec. 204. Appropriate congressional committees defined.
   TITLE III--STRATEGY TO END USE OF NORTH KOREAN LABORERS BY OTHER 
                               COUNTRIES

Sec. 301. Strategy to end use of North Korean laborers and human rights 
                            violations.
Sec. 302. Amendment of reporting requirement regarding strategy to 
                            promote North Korean human rights.
 TITLE IV--ENHANCING SANCTIONS WITH RESPECT TO THE DEMOCRATIC PEOPLE'S 
                           REPUBLIC OF KOREA

Sec. 401. Sanctions related to enablers of the Democratic People's 
                            Republic of Korea.
Sec. 402. Modification of penalties relating to sanctions.
Sec. 403. Enhancement of cargo screening criteria.
Sec. 404. Enforcement of United Nations sanctions with respect to crude 
                            oil and refined petroleum products.
Sec. 405. Sanctions with respect to sourcing, manufacture, trade, or 
                            distribution of illicit substances.
Sec. 406. Report on certain entities conducting business with the 
                            Democratic People's Republic of Korea.
Sec. 407. Enhancing the review process for changes to sanctions and 
                            rulemaking.
Sec. 408. Reinforcing global export controls.
Sec. 409. Additional resources to detect evasion of sanctions targeting 
                            the Democratic People's Republic of Korea.
Sec. 410. Briefing on evasion of sanctions targeting the Democratic 
                            People's Republic of Korea.
Sec. 411. Briefing on illicit use of virtual currencies by the 
                            Democratic People's Republic of Korea.
Sec. 412. Briefing on cross-border flows of fentanyl and other illicit 
                            substances.
Sec. 413. Briefing on United States citizens detained by the Democratic 
                            People's Republic of Korea.
Sec. 414. Addition of discussion of sanctions evasion to annual report 
                            of the United States-China Economic and 
                            Security Review Commission.
Sec. 415. Exception relating to importation of goods.
Sec. 416. Appropriate congressional committees defined.
Sec. 417. Effective date.
                         TITLE V--MISCELLANEOUS

Sec. 501. Authority to consolidate reports and briefings.

 TITLE I--REVIEW OF STRATEGY AND POLICY TOWARD THE DEMOCRATIC PEOPLE'S 
                           REPUBLIC OF KOREA

SEC. 101. FINDINGS.

    Congress makes the following findings:
            (1) The Government of the Democratic People's Republic of 
        Korea has flagrantly defied the international community by 
        illicitly developing its nuclear and ballistic missile 
        programs, in violation of United Nations Security Council 
        Resolutions 1718 (2006), 1874 (2009), 2087 (2013), 2094 (2013), 
        2270 (2016), 2321 (2016), 2371 (2017), 2375 (2017), and 2397 
        (2017).
            (2) The March 5, 2019, report of the Panel of Experts 
        established pursuant to United Nations Security Council 
        Resolution 1874 (2009) highlighted several deficiencies in the 
        enforcement of sanctions with respect to the Democratic 
        People's Republic of Korea.
            (3) The Panel of Experts report illustrated that the 
        People's Republic of China and the Russian Federation are among 
        those countries not fully implementing multilateral sanctions 
        and that the Russian Federation has impeded efforts by the 
        United States to expose and address illegal ship-to-ship 
        transfers.
            (4) Despite known deficiencies in global sanctions 
        implementation, the pace of United States sanctions 
        designations with respect to the Democratic People's Republic 
        of Korea has slowed noticeably, even as relevant United States 
        law, including the North Korea Sanctions and Policy Enhancement 
        Act of 2016 (22 U.S.C. 9201 et seq.) and the Asia Reassurance 
        Initiative Act of 2018 (Public Law 115-409), mandates the 
        imposition of United States sanctions for behaviors described 
        in the Panel of Experts report, including human rights 
        violations and malign activities in cyberspace.

SEC. 102. SENSE OF CONGRESS.

    It is the sense of Congress that--
            (1) the United States is committed to the peaceful pursuit 
        of the complete, verifiable, and irreversible dismantlement of 
        the illicit weapons programs of the Democratic People's 
        Republic of Korea through a combination of pressure and 
        engagement;
            (2) meaningful advancement in relations between the United 
        States and the Democratic People's Republic of Korea is 
        directly contingent on significant progress by the Democratic 
        People's Republic of Korea toward dismantling its weapons of 
        mass destruction and associated delivery systems, ceasing its 
        human rights violations, complying with United Nations Security 
        Council resolutions, repatriating United States citizens and 
        the citizens of other countries, instituting political 
        openness, and establishing financial transparency; and
            (3) the Democratic People's Republic of Korea should 
        immediately resume efforts to identify and return the remains 
        of members of the Armed Forces of the United States killed in 
        action during the Korean War, and should immediately return to 
        the United States the U.S.S. Pueblo, illegally captured by the 
        Democratic People's Republic of Korea on January 23, 1968.

SEC. 103. ADDRESSING THE EVOLVING THREATS POSED BY AND CAPABILITIES OF 
              THE DEMOCRATIC PEOPLE'S REPUBLIC OF KOREA.

    (a) In General.--Not later than 60 days after the date of the 
enactment of this Act, and every 180 days thereafter until the date 
that is 2 years after such date of enactment, the Director of National 
Intelligence, in consultation with the Secretary of State and the 
Secretary of Defense, and, as appropriate, the Secretary of the 
Treasury and the Administrator of the Drug Enforcement Administration, 
shall brief the appropriate congressional committees on--
            (1) the evolving threats posed by and capabilities of the 
        Democratic People's Republic of Korea; and
            (2) United States efforts to mitigate and respond to those 
        threats and capabilities.
    (b) Elements.--Each briefing under subsection (a) shall address the 
following:
            (1) An assessment of the status of the nuclear and 
        ballistic missile programs of the Democratic People's Republic 
        of Korea, including what elements constitute such programs, and 
        any technological advancements, disruptions, or setbacks to 
        such programs during--
                    (A) in the case of the first such briefing, the 60-
                day period preceding the briefing; and
                    (B) in the case of any subsequent such briefing, 
                the 180-day period preceding the briefing.
            (2) An assessment of the sources, methods, and funding 
        mechanisms of the Democratic People's Republic of Korea for 
        procuring critical components for its nuclear and ballistic 
        missile programs, including liquid and solid rocket fuels and 
        components, navigation and guidance systems, computer and 
        electrical components, and specialized materials.
            (3) An assessment of--
                    (A) the cyber capabilities of the Democratic 
                People's Republic of Korea, including its efforts to 
                conduct cyber and corporate espionage, to commit 
                illicit commercial and financial activities through 
                international cyber systems, and to suppress opposition 
                to and spread propaganda in support of its nuclear and 
                ballistic missile activities; and
                    (B) any foreign entities that may be enhancing the 
                capacity of the Democratic People's Republic of Korea 
                to conduct malicious cyber-enabled activities, 
                including by providing internet infrastructure.
            (4) A summary of activities of the Democratic People's 
        Republic of Korea relating to evading sanctions imposed by the 
        United States or the United Nations Security Council, including 
        an assessment of the sourcing, manufacture, trade, or 
        distribution of methamphetamines, narcotics (including opioids 
        such as fentanyl), and other illicit substances and any 
        associated precursor chemicals, including by state-owned 
        entities, other entities (including universities), and 
        individuals, for the purpose of financing or otherwise 
        supporting the nuclear and ballistic missile programs of the 
        Democratic People's Republic of Korea.

SEC. 104. BRIEFING ON UNITED STATES ENGAGEMENT WITH THE DEMOCRATIC 
              PEOPLE'S REPUBLIC OF KOREA.

    Not later than 30 days after the date of the enactment of this Act, 
and regularly thereafter until the date that is 2 years after such date 
of enactment, the Secretary of State shall brief the appropriate 
congressional committees on the status of any United States diplomatic 
engagement with the Government of the Democratic People's Republic of 
Korea, including with respect to efforts to secure the release of 
United States citizens detained in the Democratic People's Republic of 
Korea.

SEC. 105. BRIEFING AND STRATEGY RELATING TO USE OF ROCKET FUELS FOR 
              BALLISTIC MISSILES BY THE DEMOCRATIC PEOPLE'S REPUBLIC OF 
              KOREA.

    (a) Briefing Required.--
            (1) In general.--Not later than 90 days after the date of 
        the enactment of this Act, the Director of National 
        Intelligence, in conjunction with the Secretary of State, shall 
        brief the appropriate congressional committees on the use by 
        the Democratic People's Republic of Korea of unsymmetrical 
        dimethyl hydrazine, solid fuels, and other rocket fuels to 
        power its ballistic missiles.
            (2) Elements.--The briefing under paragraph (1) shall 
        include the following:
                    (A) An assessment of each type of rocket fuel the 
                Democratic People's Republic of Korea uses, or 
                potentially may use, to power its ballistic missiles, 
                including the chemical precursors, production process, 
                and required production equipment for each such type of 
                rocket fuel.
                    (B) With respect to each such type of rocket fuel, 
                an assessment of the following:
                            (i) Whether the use of that type of rocket 
                        fuel by the Democratic People's Republic of 
                        Korea is prohibited under United Nations 
                        Security Council resolutions, other 
                        multilateral sanctions imposed with respect to 
                        the Democratic People's Republic of Korea, or 
                        sanctions imposed by the United States with 
                        respect to the Democratic People's Republic of 
                        Korea.
                            (ii) Whether the Democratic People's 
                        Republic of Korea imports that type of rocket 
                        fuel as a finished product or imports chemical 
                        precursors and manufactures the finished 
                        product.
                            (iii) The countries from which the 
                        Democratic People's Republic of Korea imports 
                        that type of rocket fuel as a finished product 
                        or from which the Democratic People's Republic 
                        of Korea imports the chemical precursors and 
                        equipment to manufacture that type of rocket 
                        fuel.
                            (iv) The size and locations of the 
                        Democratic People's Republic of Korea's 
                        stockpiles, if any, of that type of rocket 
                        fuel.
                            (v) Whether that type of rocket fuel can be 
                        attributed to its original exporter based on 
                        unique chemical signatures or other relevant 
                        identifying information.
    (b) Strategy Required.--The Secretary of State, in consultation 
with the heads of relevant agencies, shall develop a diplomatic 
strategy to end the transfer of all rocket fuels and chemical 
precursors for rocket fuels to the Democratic People's Republic of 
Korea.
    (c) Sense of Congress.--It is the sense of Congress that the United 
States Ambassador to the United Nations should introduce a resolution 
to the United Nations Security Council to request that the Panel of 
Experts on the Democratic People's Republic of Korea established by 
United Nations Security Council Resolution 1874 (2009) investigate the 
importation and manufacture by the Democratic People's Republic of 
Korea of rocket and ballistic missile fuels, including unsymmetrical 
dimethyl hydrazine, solid fuels, and other fuels or their chemical 
precursors.

SEC. 106. BRIEFING AND STRATEGY RELATING TO EFFORTS BY THE RUSSIAN 
              FEDERATION TO BLOCK ENFORCEMENT OF UNITED NATIONS 
              SANCTIONS.

    (a) Briefing Required.--
            (1) In general.--Not later than 90 days after the date of 
        the enactment of this Act, the Secretary of State shall brief 
        the appropriate congressional committees on the efforts of the 
        Russian Federation to undercut enforcement of United Nations 
        sanctions with respect to the Democratic People's Republic of 
        Korea, with particular focus on the limit set by the United 
        Nations Security Council on the supply, sale, or transfer to 
        the Democratic People's Republic of Korea of all refined 
        petroleum products in excess of an aggregate amount of 500,000 
        barrels during any 12-month period beginning on or after 
        January 1, 2018.
            (2) Elements.--The briefing under paragraph (1) shall 
        include the following:
                    (A) An assessment of the likelihood that the 
                patterns of behavior illustrated by Annexes 1-3 to the 
                March 5, 2019, report of the Panel of Experts 
                established pursuant to United Nations Security Council 
                Resolution 1874 (2009), including efforts of the 
                Russian Federation to dismiss findings, will continue.
                    (B) A description of steps being taken to ensure, 
                despite the opposition of the Russian Federation, a 
                timely decision by the United Nations Security Council 
                to act to halt all refined petroleum product exports to 
                the Democratic People's Republic of Korea in each 12-
                month period that the limit described in paragraph (1) 
                is exceeded.
                    (C) A description of any other United Nations 
                sanctions with respect to the Democratic People's 
                Republic of Korea being disregarded or actively 
                undercut by the Russian Federation.
    (b) Strategy Required.--The Secretary of State, in consultation 
with the heads of relevant agencies, shall develop a diplomatic 
strategy to counter efforts by the Russian Federation to undercut 
enforcement of United Nations sanctions, including the limit described 
in subsection (a)(1), with respect to the Democratic People's Republic 
of Korea.

SEC. 107. APPROPRIATE CONGRESSIONAL COMMITTEES DEFINED.

    In this title, the term ``appropriate congressional committees'' 
means the Committee on Foreign Relations of the Senate and the 
Committee on Foreign Affairs of the House of Representatives.

TITLE II--MEASURES TO ADDRESS THE THREATS POSED BY AND CAPABILITIES OF 
               THE DEMOCRATIC PEOPLE'S REPUBLIC OF KOREA

SEC. 201. REPORT ON EFFECTING A STRATEGY TO DIPLOMATICALLY AND 
              ECONOMICALLY PRESSURE THE DEMOCRATIC PEOPLE'S REPUBLIC OF 
              KOREA.

    (a) In General.--Not later than 90 days after the date of the 
enactment of this Act, and every 180 days thereafter, the Secretary of 
State shall submit to the appropriate congressional committees a report 
on actions taken by the United States to diplomatically and 
economically pressure the Democratic People's Republic of Korea.
    (b) Elements.--Each report required by subsection (a) shall include 
the following:
            (1) A description of the actions taken by the Secretary of 
        State to consult with governments around the world, with the 
        purpose of inducing those governments to diplomatically and 
        economically pressure the Democratic People's Republic of 
        Korea.
            (2) A description of the actions taken by those governments 
        to implement measures to diplomatically and economically 
        pressure the Democratic People's Republic of Korea.
            (3) A list of countries the governments of which the 
        Secretary has determined to be noncooperative with respect to 
        implementing measures to diplomatically and economically 
        pressure the Democratic People's Republic of Korea.
            (4) A plan of action to engage with, and increase 
        cooperation with respect to the Democratic People's Republic of 
        Korea by, the governments of the countries on the list required 
        by paragraph (3).
    (c) Form of Report.--Each report required by subsection (a) shall 
be submitted in unclassified form but may include a classified annex.

SEC. 202. AUTHORIZATION TO ALTER UNITED STATES RELATIONS WITH COUNTRIES 
              ENABLING THE DEMOCRATIC PEOPLE'S REPUBLIC OF KOREA.

    (a) In General.--The Secretary of State may take such actions as 
are necessary to induce countries on the list required by section 
201(b)(3) to take measures to diplomatically and economically pressure 
the Democratic People's Republic of Korea.
    (b) Actions Included.--Actions described in subsection (a) may 
include--
            (1) reduction of the diplomatic presence in the United 
        States of countries on the list required by section 201(b)(3); 
        and
            (2) reduction of the diplomatic presence of the United 
        States in those countries.
    (c) Consultation.--Not less than 15 days before taking any action 
under subsection (a), the Secretary shall consult with the appropriate 
congressional committees with respect to the action.
    (d) Sense of Congress.--It is the sense of Congress that inaction 
by certain countries in the Indo-Pacific region to reduce cooperation 
with the Democratic People's Republic of Korea hinders the deepening of 
strategic relationships with the United States.

SEC. 203. AUTHORIZATION TO TERMINATE OR REDUCE UNITED STATES FOREIGN 
              ASSISTANCE TO COUNTRIES ENABLING THE DEMOCRATIC PEOPLE'S 
              REPUBLIC OF KOREA.

    (a) In General.--The Secretary of State may terminate or reduce 
United States foreign assistance to countries on the list required by 
section 201(b)(3).
    (b) Assistance Included.--Assistance terminated or reduced under 
subsection (a) may include--
            (1) assistance under chapter 4 of part II of the Foreign 
        Assistance Act of 1961 (22 U.S.C. 2346 et seq.; relating to the 
        Economic Support Fund);
            (2) military assistance provided pursuant to section 23 of 
        the Arms Export Control Act (22 U.S.C. 2763; relating to the 
        Foreign Military Financing Program); and
            (3) assistance provided under chapter 5 of part II of the 
        Foreign Assistance Act of 1961 (22 U.S.C. 2347 et seq.; 
        relating to international military education and training).
    (c) Consultation.--Not less than 15 days before taking any action 
under subsection (a), the Secretary shall consult with the appropriate 
congressional committees with respect to the action.
    (d) Sense of Congress.--It is the sense of Congress that inaction 
by certain countries in the Indo-Pacific region to reduce cooperation 
with the Democratic People's Republic of Korea hinders the deepening of 
strategic relationships with the United States.

SEC. 204. APPROPRIATE CONGRESSIONAL COMMITTEES DEFINED.

    In this title, the term ``appropriate congressional committees'' 
means--
            (1) the Committee on Foreign Relations and the Committee on 
        Appropriations of the Senate; and
            (2) the Committee on Foreign Affairs and the Committee on 
        Appropriations of the House of Representatives.

   TITLE III--STRATEGY TO END USE OF NORTH KOREAN LABORERS BY OTHER 
                               COUNTRIES

SEC. 301. STRATEGY TO END USE OF NORTH KOREAN LABORERS AND HUMAN RIGHTS 
              VIOLATIONS.

    (a) In General.--Not later than 60 days after the date of the 
enactment of this Act, the Secretary of State shall brief the 
appropriate congressional committees on a strategy for leveraging the 
sanctions imposed pursuant to section 302B of the North Korea Sanctions 
and Policy Enhancement Act of 2016 (22 U.S.C. 9241b) to convince 
countries that import North Korean laborers in a manner described in 
section 104(b)(1)(L) of that Act (22 U.S.C. 9214(b)(1)(L)) to end that 
practice.
    (b) Appropriate Congressional Committees Defined.--In this section, 
the term ``appropriate congressional committees'' means--
            (1) the Committee on Foreign Relations and the Committee on 
        Banking, Housing, and Urban Affairs of the Senate; and
            (2) the Committee on Foreign Affairs and the Committee on 
        Financial Services of the House of Representatives.

SEC. 302. AMENDMENT OF REPORTING REQUIREMENT REGARDING STRATEGY TO 
              PROMOTE NORTH KOREAN HUMAN RIGHTS.

            (1) In general.--Section 302(b) of the North Korea 
        Sanctions and Policy Enhancement Act of 2016 (22 U.S.C. 
        9241(b)) is amended--
                    (A) in paragraph (2), by striking ``and'' at the 
                end;
                    (B) in paragraph (3), by striking ``104(b)(1)(M).'' 
                and inserting ``104(b)(1)(L); and''; and
                    (C) by adding at the end the following new 
                paragraphs:
            ``(4) a list of countries that have not repatriated to the 
        Democratic People's Republic of Korea--
                    ``(A) all nationals of the Democratic People's 
                Republic of Korea earning income in their 
                jurisdictions; and
                    ``(B) all safety oversight attaches of the 
                Democratic People's Republic of Korea; and
            ``(5) for each country on the list required by paragraph 
        (4)--
                    ``(A) a list of the entities that employ 
                significant numbers of nationals of the Democratic 
                People's Republic of Korea earning income in the 
                jurisdiction of that country; and
                    ``(B) an assessment of which national or local 
                government agencies and officials are involved in 
                facilitating the work, presence, or authorization for 
                work of nationals of the Democratic People's Republic 
                of Korea earning income in the jurisdiction of the 
                country and of safety oversight attaches of the 
                Democratic People's Republic of Korea.''.
            (2) Frequency of reports clarified.--Section 302(a) of the 
        North Korea Sanctions and Policy Enhancement Act of 2016 (22 
        U.S.C. 9241(a)) is amended by striking ``periodically'' and 
        inserting ``every 120 days''.

 TITLE IV--ENHANCING SANCTIONS WITH RESPECT TO THE DEMOCRATIC PEOPLE'S 
                           REPUBLIC OF KOREA

SEC. 401. SANCTIONS RELATED TO ENABLERS OF THE DEMOCRATIC PEOPLE'S 
              REPUBLIC OF KOREA.

    Section 104(d) of the North Korea Sanctions and Policy Enhancement 
Act of 2016 (22 U.S.C. 9214(d)) is amended to read as follows:
    ``(d) Application to Certain Persons, Subsidiaries, and Agents.--
The designation of a person under subsection (a) or (b) and the 
blocking of property and interests in property under subsection (c) 
shall apply with respect to a person who is determined--
            ``(1) to be owned or controlled by, or to have acted or 
        purported to have acted for or on behalf of, directly or 
        indirectly, any person whose property and interests in property 
        are blocked pursuant to this section; or
            ``(2) to knowingly assist, sponsor, or provide significant 
        financial, material, or technological support to or for a 
        person designated under--
                    ``(A) subsection (a) or (b);
                    ``(B) an applicable Executive order; or
                    ``(C) an applicable United Nations Security Council 
                resolution.''.

SEC. 402. MODIFICATION OF PENALTIES RELATING TO SANCTIONS.

    Section 104(f) of the North Korea Sanctions and Policy Enhancement 
Act of 2016 (22 U.S.C. 9214(f)) is amended to read as follows:
    ``(f) Penalties.--
            ``(1) Prohibited conduct.--It shall be unlawful for any 
        person--
                    ``(A) to engage in, conspire or attempt to engage 
                in, or cause any of the conduct described in paragraphs 
                (1) through (14) of subsection (a);
                    ``(B) to knowingly evade or avoid a prohibition on 
                such conduct or the imposition of a sanction or penalty 
                relating to such conduct; or
                    ``(C) to violate, attempt to violate, conspire to 
                violate, or cause a violation of any license, order, 
                regulation, or prohibition issued to carry out this 
                section.
            ``(2) Civil penalties.--A person who engages in an unlawful 
        act described in paragraph (1) shall be subject to a civil 
        penalty in an amount not to exceed the greater of--
                    ``(A) $500,000; or
                    ``(B) an amount that is twice the amount of the 
                transaction that is the basis of the violation with 
                respect to which the penalty is imposed.
            ``(3) Criminal penalties.--A person who willfully engages 
        in an unlawful act described in paragraph (1) shall, upon 
        conviction, be fined not more than $1,000,000 and, in the case 
        of an individual, imprisoned for not more than 20 years, or 
        both.
            ``(4) Rule of construction.--The civil and criminal 
        penalties under paragraphs (2) and (3) for engaging an unlawful 
        act described in paragraph (1) shall be imposed with respect to 
        a person without regard to whether the President has designated 
        the person for the imposition of sanctions under this section 
        or pursuant to the International Emergency Economic Powers Act 
        (50 U.S.C. 1701 et seq.).''.

SEC. 403. ENHANCEMENT OF CARGO SCREENING CRITERIA.

    Section 205(c)(1) of the North Korea Sanctions and Policy 
Enhancement Act of 2016 (22 U.S.C. 9225(c)(1)) is amended--
            (1) in subparagraph (B), by striking ``; or'' and inserting 
        a semicolon;
            (2) in subparagraph (C), by striking the period and 
        inserting ``; or''; and
            (3) by adding at the end the following:
                    ``(D) originates in a jurisdiction or a 
                geographical area that the Secretary determines is 
                otherwise of concern with respect to evasion of 
                sanctions mandated with respect to North Korea.''.

SEC. 404. ENFORCEMENT OF UNITED NATIONS SANCTIONS WITH RESPECT TO CRUDE 
              OIL AND REFINED PETROLEUM PRODUCTS.

    (a) In General.--Title II of the North Korea Sanctions and Policy 
Enhancement Act of 2016 (22 U.S.C. 9221 et seq.) is amended by 
inserting the following:

``SEC. 212. ENFORCEMENT OF UNITED NATIONS SANCTIONS WITH RESPECT TO 
              CRUDE OIL AND REFINED PETROLEUM PRODUCTS.

    ``(a) In General.--The President shall impose one or more of the 
sanctions described in subsection (c) on a person described in 
subsection (b).
    ``(b) Person Described.--A person described in this subsection is a 
person that--
            ``(1) the President determines knowingly, on or after the 
        date of the enactment of the Leverage to Enhance Effective 
        Diplomacy Act of 2019, directly or indirectly, supplies, sells, 
        or transfers crude oil to any entity or instrumentality of the 
        Government of North Korea or any person representing that 
        government; and
            ``(2) is organized under the laws of a jurisdiction that 
        the President determines to have exported more than the 
        aggregate amount of 4,000,000 barrels of crude oil during any 
        12-month period to North Korea.
    ``(c) Sanctions Described.--The sanctions described in this 
subsection are the following:
            ``(1) Asset blocking.--The President may block and prohibit 
        all transactions in all property and interests in property of a 
        person described in subsection (b) if such property and 
        interests in property are in the United States, come within the 
        United States, or are or come within the possession or control 
        of a United States person.
            ``(2) Ban on investment in equity or debt.--The President 
        may, pursuant to such regulations or guidelines as the 
        President may prescribe, prohibit any United States person from 
        investing in or purchasing significant amounts of equity or 
        debt instruments of the person described in subsection (b).
            ``(3) Exclusion of corporate officers.--The President may 
        direct the Secretary of State to deny a visa to, and the 
        Secretary of Homeland Security to exclude from the United 
        States, any alien that the President determines is a corporate 
        officer or principal of, or a shareholder with a controlling 
        interest in, the person described in subsection (b).
            ``(4) Sanctions on principal executive officers.--The 
        President may impose on the principal executive officer or 
        officers of the person described in subsection (b), or on 
        persons performing similar functions and with similar 
        authorities as such officer or officers, any of the sanctions 
        under this subsection.
    ``(d) Waivers.--
            ``(1) Efforts to enforce united nations limits.--The 
        President may waive the application of sanctions under 
        subsection (a) if the President certifies to Congress that the 
        jurisdiction described in subsection (b)(2) is applying 
        appropriate effort to--
                    ``(A) fulfill its obligation under international 
                law to prohibit its nationals, individuals otherwise 
                subject to its jurisdiction, entities incorporated in 
                its territory or subject to its jurisdiction, and 
                vessels flying its flag from facilitating or engaging 
                in ship-to-ship transfers to or from North Korea-
                flagged vessels of any goods or items that are being 
                supplied, sold, or transferred to or from North Korea, 
                including refined petroleum products and coal; and
                    ``(B) reduce, towards the limit established by the 
                United Nations Security Council, the aggregate amount 
                of crude oil exported from or re-exported through the 
                jurisdiction to North Korea.
            ``(2) National security.--The President may waive the 
        application of sanctions under subsection (a) if the President 
        certifies to Congress that the waiver is important to the 
        national security interest of the United States.
            ``(3) Briefing required.--If the President waives the 
        application of sanctions under paragraph (1) or (2), the 
        President shall brief the following committees on the waiver:
                    ``(A) The Committee on Banking, Housing, and Urban 
                Affairs and the Committee on Foreign Relations of the 
                Senate.
                    ``(B) The Committee on Financial Services and the 
                Committee on Foreign Affairs of the House of 
                Representatives.
    ``(e) United States Person Defined.--In this section, the term 
`United States person' means--
            ``(1) a United States citizen or an alien lawfully admitted 
        for permanent residence to the United States; or
            ``(2) an entity organized under the laws of the United 
        States or of any jurisdiction within the United States, 
        including a foreign branch of such an entity.''.
    (b) Clerical Amendment.--The table of contents for the North Korea 
Sanctions and Policy Enhancement Act of 2016 is amended by inserting 
after the item relating to section 211 the following:

``Sec. 212. Enforcement of United Nations sanctions with respect to 
                            crude oil and refined petroleum 
                            products.''.

SEC. 405. SANCTIONS WITH RESPECT TO SOURCING, MANUFACTURE, TRADE, OR 
              DISTRIBUTION OF ILLICIT SUBSTANCES.

    Section 104(a)(6) of the North Korea Sanctions and Policy 
Enhancement Act of 2016 (22 U.S.C. 9214(a)(6)) is amended by striking 
``narcotics trafficking'' and inserting ``trafficking of, or 
facilitation of the souring, manufacture, trade, or distribution of 
methamphetamines, narcotics including opioids such as fentanyl, and 
other illicit substances,''.

SEC. 406. REPORT ON CERTAIN ENTITIES CONDUCTING BUSINESS WITH THE 
              DEMOCRATIC PEOPLE'S REPUBLIC OF KOREA.

    (a) In General.--Not later than 90 days after the date of the date 
of the enactment of this Act, the President shall submit to the 
appropriate congressional committees a report that includes the 
following:
            (1) A list of entities that, during the 12-month period 
        preceding submission of the report, have imported or exported 
        any goods, services, or technology to or from the Democratic 
        People's Republic of Korea valued at more than $100,000,000.
            (2) A list of entities in the People's Republic of China, 
        the Russian Federation, and other countries outside of the 
        Democratic People's Republic of Korea that are known to employ 
        significant numbers of laborers from the Democratic People's 
        Republic of Korea.
            (3) For each country that hosts significant numbers of such 
        laborers, a list of specific economic sectors in which such 
        laborers are most commonly used.
    (b) Form.--The report required by subsection (a) shall be submitted 
in unclassified form, but may include a classified annex.
    (c) Briefing.--The President shall brief the appropriate 
congressional committees, in a classified setting if necessary, not 
later than 30 days after the delivery of the report required by 
subsection (a) on whether the entities identified in subsection (a)(2) 
meet the criteria for designation for the imposition of sanctions under 
applicable provisions of law.

SEC. 407. ENHANCING THE REVIEW PROCESS FOR CHANGES TO SANCTIONS AND 
              RULEMAKING.

    Section 208 of the North Korea Sanctions and Policy Enhancement Act 
of 2016 (22 U.S.C. 9228) is amended by adding at the end the following:
    ``(e) Certification Requirement for Removal of Certain Persons From 
the List of Specially Designated Nationals and Blocked Persons.--
            ``(1) In general.--On and after the date of the enactment 
        of the Leverage to Enhance Effective Diplomacy Act of 2019, the 
        President may not remove a person described in paragraph (2) 
        from the list of specially designated nationals and blocked 
        persons maintained by the Office of Foreign Asset Control of 
        the Department of the Treasury unless and until the President 
        submits to the appropriate congressional committees a 
        certification described in paragraph (3) with respect to the 
        person.
            ``(2) Persons described.--A person described in this 
        paragraph is a person the property and interests in property of 
        which are blocked pursuant to the International Emergency 
        Economic Powers Act (50 U.S.C. 1701 et seq.) under this Act, an 
        applicable Executive order, or an applicable United Nations 
        Security Council resolution.
            ``(3) Certification described.--A certification described 
        in this paragraph with respect to a person is a certification 
        that the person is not engaging in conduct--
                    ``(A) for which the person was included on the list 
                of specially designated nationals and blocked persons 
                by the Office of Foreign Assets Control; or
                    ``(B) that violates applicable United States or 
                international laws.
            ``(4) Form.--A certification described in paragraph (3) 
        shall be submitted in unclassified form, but may include a 
        classified annex.
    ``(f) Certification Requirement for Removal of Designation of North 
Korea as a Jurisdiction of Primary Money Laundering Concern.--
            ``(1) In general.--The President may not terminate the 
        designation of North Korea as a jurisdiction of primary money 
        laundering concern pursuant to section 5318A of title 31, 
        United States Code, unless the President submits to the 
        appropriate congressional committees a certification described 
        in paragraph (2) with respect to North Korea.
            ``(2) Certification described.--A certification described 
        in this paragraph is a certification that the Government of 
        North Korea--
                    ``(A) is no longer using state-controlled financial 
                institutions and front companies to conduct 
                transactions that support the proliferation of weapons 
                of mass destruction and ballistic missiles;
                    ``(B) has instituted sufficient bank supervision 
                and controls with respect to anti-money laundering and 
                combating the financing of terrorism;
                    ``(C) is cooperating with United States law 
                enforcement and regulatory officials in obtaining 
                information about transactions originating in or routed 
                through or to North Korea; and
                    ``(D) is no longer relying on the illicit and 
                corrupt activity of high-level officials to support its 
                government.
            ``(3) Form.--The certification described in paragraph (2) 
        shall be submitted in unclassified form, but may include a 
        classified annex.
    ``(g) Applicability of Congressional Review of Certain Agency 
Rulemaking Relating to North Korea.--Notwithstanding any other 
provision of law, any rule to amend or otherwise alter any provision of 
part 510 of title 31, Code of Federal Regulations, that is published on 
or after the date of the enactment of the Leverage to Enhance Effective 
Diplomacy Act of 2019 shall be deemed to be a rule or major rule (as 
the case may be) for purposes of chapter 8 of title 5, United States 
Code, and shall be subject to all applicable requirements of that 
chapter.''.

SEC. 408. REINFORCING GLOBAL EXPORT CONTROLS.

    There are authorized to be appropriated to the Secretary of State 
such sums as may be necessary to assess and, where necessary, to 
enhance the adequacy of the export control regimes of United Nations 
member countries, including through the use of action plans to 
encourage and assist countries in adopting and using authorities 
necessary to enforce sanctions and export controls required by United 
Nations Security Council resolutions.

SEC. 409. ADDITIONAL RESOURCES TO DETECT EVASION OF SANCTIONS TARGETING 
              THE DEMOCRATIC PEOPLE'S REPUBLIC OF KOREA.

    (a) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of State and the Secretary of the 
Treasury such sums as may be necessary to enhance the ability of the 
Department of State and the Department of the Treasury to detect 
evasion of sanctions targeting the Democratic People's Republic of 
Korea, including through actions described in subsection (b).
    (b) Assignment of Detailees.--The Secretary of the Treasury should 
assign one additional detailee to each United States embassy or 
consulate in each country that the Secretary, in consultation with the 
Secretary of State, assesses to be commonly linked to evasion of 
sanctions targeting the Democratic People's Republic of Korea.
    (c) Sense of Congress.--It is the sense of Congress that the United 
States should devote additional maritime patrol and reconnaissance 
aircraft to areas known to be associated with maritime forms of 
sanctions evasion by the Democratic People's Republic of Korea, 
including ship-to-ship transfers of refined petroleum products, oil, 
coal, and other goods and the export of arms by the Democratic People's 
Republic of Korea, to enhance the capability of the United States to 
detect and publicize such activities.

SEC. 410. BRIEFING ON EVASION OF SANCTIONS TARGETING THE DEMOCRATIC 
              PEOPLE'S REPUBLIC OF KOREA.

    (a) In General.--Not later than 180 days after the date of the 
enactment of this Act, and annually thereafter until the date that is 5 
years after such date of enactment, the Secretary of State and the 
Secretary of the Treasury shall brief the appropriate congressional 
committees regarding evasion of sanctions targeting the Democratic 
People's Republic of Korea.
    (b) Elements.--Each briefing required by subsection (a) shall--
            (1) cover each country described in section 409(b) by 
        discussing any known or suspected cases or types of sanctions 
        evasion that implicate that country; and
            (2) be based on the input of detailees assigned as 
        described in that section.

SEC. 411. BRIEFING ON ILLICIT USE OF VIRTUAL CURRENCIES BY THE 
              DEMOCRATIC PEOPLE'S REPUBLIC OF KOREA.

    (a) In General.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of the Treasury shall brief the 
appropriate congressional committees on the illicit use of virtual 
currencies by the Democratic People's Republic of Korea.
    (b) Elements.--The briefing required by subsection (a) shall--
            (1) to the extent possible, provide an estimate of the 
        amount of fiat currency that the Democratic People's Republic 
        of Korea has been able to generate as of the date of the 
        briefing through conversion of virtual currency obtained by 
        illicit means including cyberattacks;
            (2) describe known pathways through which the Democratic 
        People's Republic of Korea executes such conversions, with an 
        emphasis on identifying virtual currency exchanges used by the 
        Democratic People's Republic of Korea or its agents; and
            (3) cover any known instances of purchases of goods or 
        services by the Democratic People's Republic of Korea using 
        virtual currency without converting that currency to fiat 
        currency before the purchases.

SEC. 412. BRIEFING ON CROSS-BORDER FLOWS OF FENTANYL AND OTHER ILLICIT 
              SUBSTANCES.

    (a) In General.--Not later than 180 days after the date of the date 
of the enactment of this Act, the Secretary of the Treasury shall brief 
the appropriate congressional committees on the methods by which the 
Democratic People's Republic of Korea produces and exports 
methamphetamines and other narcotics, including opioids such as 
fentanyl.
    (b) Elements.--The briefing required by subsection (a) shall--
            (1) provide estimates of the amounts of illicit substances 
        exported by the Democratic People's Republic of Korea and the 
        associated revenues;
            (2) describe known pathways through which the Democratic 
        People's Republic of Korea procures precursors for and conducts 
        exports of such substances, with particular focus on exports 
        into the People's Republic of China; and
            (3) assess the extent to which such pathways differ from 
        pathways used by the Democratic People's Republic of Korea to 
        export arms and other goods the export of which is prohibited.

SEC. 413. BRIEFING ON UNITED STATES CITIZENS DETAINED BY THE DEMOCRATIC 
              PEOPLE'S REPUBLIC OF KOREA.

    (a) In General.--Notwithstanding any other provision of law, not 
later than 30 days after the date of the enactment of this Act, and 
every 180 days thereafter until the date that is 2 years after such 
date of enactment, the Secretary of State shall brief the appropriate 
congressional committees on United States citizens detained by the 
Government of the Democratic People's Republic of Korea, including 
United States citizens who are also citizens of other countries.
    (b) Elements.--Each briefing required by subsection (a) shall, to 
the extent practicable and appropriate, include, with respect to each 
United States citizen detained by the Government of the Democratic 
People's Republic of Korea, the following:
            (1) The name of the United States citizen.
            (2) A description of the circumstances surrounding the 
        detention of the United States citizen.
            (3) An assessment of the health and welfare of the United 
        States citizen.
            (4) An assessment of whether any United States Government 
        officials or foreign government officials have been provided 
        access to the United States citizen.
            (5) A summary of any communications or comments by 
        officials of the Government of the Democratic People's Republic 
        of Korea regarding the detention and welfare of the United 
        States citizen.
            (6) A summary of official communications by United States 
        Government officials or foreign government officials, or other 
        persons acting on behalf of those officials, regarding the 
        United States citizen, including efforts to secure the release 
        of the United States citizen.
    (c) Interim Briefings.--During periods between briefings under 
subsection (a), the Secretary of State shall brief the appropriate 
congressional committees on any significant updates on the status and 
welfare of any United States citizens detained by the Government of the 
Democratic People's Republic of Korea.

SEC. 414. ADDITION OF DISCUSSION OF SANCTIONS EVASION TO ANNUAL REPORT 
              OF THE UNITED STATES-CHINA ECONOMIC AND SECURITY REVIEW 
              COMMISSION.

    Section 1238(c)(2) of the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 (as enacted into law by Public 
Law 106-398; 22 U.S.C. 7002(c)(2)) is amended by adding at the end the 
following:
                    ``(L) The evasion of sanctions targeting the 
                Democratic People's Republic of Korea by or involving 
                the People's Republic of China.''.

SEC. 415. EXCEPTION RELATING TO IMPORTATION OF GOODS.

    (a) In General.--No provision affecting sanctions under this title 
or an amendment made by this title shall apply to sanctions on the 
importation of goods.
    (b) Good Defined.--In this section, the term ``good'' means any 
article, natural or manmade substance, material, supply or manufactured 
product, including inspection and test equipment, and excluding 
technical data.

SEC. 416. APPROPRIATE CONGRESSIONAL COMMITTEES DEFINED.

    In this title, the term ``appropriate congressional committees'' 
means--
            (1) the Committee on Foreign Relations and the Committee on 
        Banking, Housing, and Urban Affairs of the Senate; and
            (2) the Committee on Foreign Affairs and the Committee on 
        Financial Services of the House of Representatives.

SEC. 417. EFFECTIVE DATE.

    The amendments made by this title shall take effect on the date of 
the enactment of this Act and apply with respect to conduct engaged on 
or after such date of enactment.

                         TITLE V--MISCELLANEOUS

SEC. 501. AUTHORITY TO CONSOLIDATE REPORTS AND BRIEFINGS.

    Any reports or briefings required to be submitted to Congress under 
this Act or any amendments made by this Act that are subject to a 
deadline for submission consisting of the same unit of time may be 
consolidated into a single report or briefing. The consolidated report 
or briefing shall contain all information required under this Act or 
any amendment made by this Act with respect to the reports comprising 
such consolidated report or briefing.
                                 <all>
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