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 re-
ferred to the Committee on Foreign Affairs, and in addition to the Com-
mittees on Ways and Means, the Judiciary, Financial Services, and Over-
sight and Government Reform, for a period to be subsequently deter-
mined 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. CON-
NOLLY, 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 Com-
mittee 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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Be it enacted by the Senate and House of Representa-
tives 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 
‘‘North Korea Sanctions Enforcement Act of 2015’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
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 dis-
cretionary 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 pri-
mary 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 ac-
tivities 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. 
SEC. 2. FINDINGS. 
Congress finds the following: 
(1) The Government of North Korea has repeat-
edly violated its commitments to the complete, 
verifiable, irreversible dismantlement of its nuclear 
weapons programs, and has willfully violated mul-
tiple United Nations Security Council resolutions 
calling for it to cease its development, testing, and 
production of weapons of mass destruction. 
(2) North Korea poses a grave risk for the pro-
liferation of nuclear weapons and other weapons of 
mass destruction. 
(3) The Government of North Korea has been im-
plicated repeatedly in money laundering and illicit 
activities, including prohibited arms sales, narcotics 
trafficking, the counterfeiting of United States cur-
rency, and the counterfeiting of intellectual property 
of United States persons. 
(4) The Government of North Korea has, both 
historically and recently, repeatedly sponsored acts of 
international terrorism, including attempts to assas-
sinate defectors and human rights activists, repeated 
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threats of violence against foreign persons, leaders, 
newspapers, and cities, and the shipment of weapons 
to terrorists and state sponsors of terrorism. 
(5) North Korea has unilaterally withdrawn 
from the 1953 Armistice Agreement that ended the 
Korean War, and committed provocations against 
South Korea in 2010 by sinking the warship Cheonan 
and killing 46 of her crew, and by shelling 
Yeonpyeong Island, killing four South Koreans. 
(6) North Korea maintains a system of brutal 
political prison camps that contain as many as 
120,000 men, women, and children, who live in atro-
cious living conditions with insufficient food, cloth-
ing, and medical care, and under constant fear of tor-
ture or arbitrary execution. 
(7) The Congress reaffirms the purposes of the 
North Korean Human Rights Act of 2004 contained 
in section 4 of such Act (22 U.S.C. 7802). 
(8) North Korea has prioritized weapons pro-
grams and the procurement of luxury goods, in defi-
ance of United Nations Security Council resolutions, 
and in gross disregard of the needs of its people. 
(9) The President has determined that the Gov-
ernment of North Korea is responsible for knowingly 
engaging in significant activities undermining cyber 
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security with respect to United States persons and in-
terests, and for threats of violence against the civilian 
population of the United States. 
(10) Persons, including financial institutions, 
who engage in transactions with, or provide financial 
services to, the Government of North Korea and its fi-
nancial institutions without establishing sufficient fi-
nancial safeguards against North Korea’s use of these 
transactions to promote proliferation, weapons traf-
ficking, human rights violations, illicit activity, and 
the purchase of luxury goods, aid and abet North Ko-
rea’s misuse of the international financial system, 
and also violate the intent of relevant United Nations 
Security Council resolutions. 
(11) The Government of North Korea’s conduct 
poses an imminent threat to the security of the 
United States and its allies, to the global economy, to 
the safety of members of the United States Armed 
Forces, to the integrity of the global financial system, 
to the integrity of global nonproliferation programs, 
and to the people of North Korea. 
(12) The Congress seeks, through this legislation, 
to use nonmilitary means to address this crisis, to 
provide diplomatic leverage to negotiate necessary 
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changes in North Korea’s conduct, and to ease the suf-
fering of the people of North Korea. 
SEC. 3. DEFINITIONS. 
In this Act: 
(1) APPLICABLE EXECUTIVE ORDER.—The term 
‘‘applicable Executive order’’ means— 
(A) Executive Order No. 13382 (2005), 
13466 (2008), 13551 (2010), or 13570 (2011), to 
the extent that such Executive order authorizes 
the imposition of sanctions on persons for con-
duct, or prohibits transactions or activities, in-
volving the Government of North Korea; or 
(B) any Executive order adopted on or after 
the date of the enactment of this Act, to the ex-
tent that such Executive order authorizes the im-
position of sanctions on persons for conduct, or 
prohibits transactions or activities, involving the 
Government of North Korea. 
(2) APPLICABLE
UNITED
NATIONS
SECURITY 
COUNCIL RESOLUTION.—The term ‘‘applicable United 
Nations Security Council resolution’’ means— 
(A) United Nations Security Council Reso-
lution 1695 (2006), 1718 (2006), 1874 (2009), 
2087 (2013), or 2094 (2013); or 
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(B) any United Nations Security Council 
resolution adopted on or after the date of the en-
actment of this Act, to the extent that such reso-
lution authorizes the imposition of sanctions on 
persons for conduct, or prohibits transactions or 
activities, involving the Government of North 
Korea. 
(3) 
APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional commit-
tees’’ means— 
(A) the Committee on Foreign Affairs, the 
Committee on Ways and Means, and the Com-
mittee on Financial Services of the House of 
Representatives; and 
(B) the Committee on Foreign Relations 
and the Committee on Banking, Housing, and 
Urban Affairs of the Senate. 
(4) DESIGNATED
PERSON.—The term ‘‘des-
ignated person’’ means a person designated under 
subsection (a) or (b) of section 104 for purposes of ap-
plying one or more of the sanctions described in title 
I or II of this Act with respect to the person. 
(5) GOVERNMENT OF NORTH KOREA.—The term 
‘‘Government of North Korea’’ means— 
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(A) the Government of the Democratic Peo-
ple’s Republic of Korea or any political subdivi-
sion, agency, or instrumentality thereof; and 
(B) any person owned or controlled by, or 
acting for or on behalf of, the Government of the 
Democratic People’s Republic of Korea. 
(6) 
INTERNATIONAL
TERRORISM.—The 
term 
‘‘international terrorism’’ has the meaning given such 
term in section 140(d) of the Foreign Relations Au-
thorization Act, Fiscal Years 1988 and 1989 (22 
U.S.C. 2656f(d)), and includes the conduct described 
in section 212(a)(3)(B)(iii) of the Immigration and 
Nationality Act (8 U.S.C. 1182(a)(3)(B)(iii)), to the 
extent such conduct involves the citizens of more than 
one country. 
(7) LUXURY GOODS.—The term ‘‘luxury goods’’ 
has the meaning given such term in subpart 746.4 of 
title 15, Code of Federal Regulations, and includes the 
items listed in Supplement No. 1 to such regulation, 
and any similar items. 
(8) MONETARY INSTRUMENT.—The term ‘‘mone-
tary instrument’’ has the meaning given such term 
under section 5312 of title 31, United States Code. 
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(9) NORTH KOREAN FINANCIAL INSTITUTION.— 
The term ‘‘North Korean financial institution’’ 
means— 
(A) a financial institution organized under 
the laws of North Korea or any jurisdiction 
within North Korea (including a foreign branch 
of such institution); 
(B) any financial institution located in 
North Korea, except as may be excluded from 
such definition by the President in accordance 
with section 207(d); 
(C) any financial institution, wherever lo-
cated, owned or controlled by the Government of 
North Korea; and 
(D) any financial institution, wherever lo-
cated, owned or controlled by a financial institu-
tion described in subparagraph (A), (B), or (C). 
(10) OTHER
STORES
OF
VALUE.—The term 
‘‘other stores of value’’ means— 
(A) prepaid access devices, tangible or in-
tangible prepaid access devices, or other instru-
ments or devices for the storage or transmission 
of value, as defined in part 1010 of title 31, Code 
of Federal Regulations; and 
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(B) any covered goods, as defined in section 
1027.100 of title 31, Code of Federal Regula-
tions, and any instrument or tangible or intan-
gible access device used for the storage and trans-
mission of a representation of covered goods, or 
other device, as defined in section 1027.100 of 
title 31, Code of Federal Regulations. 
(11) PERSON.—The term ‘‘person’’ means an in-
dividual or entity as determined by the Secretary of 
State and the Secretary of the Treasury. 
(12) 
SIGNIFICANT
ACTIVITIES
UNDERMINING 
CYBER
SECURITY.—The term ‘‘significant activities 
undermining cyber security’’ means— 
(A) significant efforts to— 
(i) deny access to or degrade, disrupt, 
or destroy an information and communica-
tions technology system or network; or 
(ii) exfiltrate information from such a 
system or network without authorization; 
(B) significant destructive malware attacks; 
(C) significant denial of service activities; 
or 
(D) such other significant activities as may 
be described in regulations promulgated to im-
plement section 104. 
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(13) 
UNITED
STATES
PERSON.—The 
term 
‘‘United States person’’ means— 
(A) a natural person who is a citizen of the 
United States or who owes permanent allegiance 
to the United States; and 
(B) a corporation or other legal entity 
which is organized under the laws of the United 
States, any State or territory thereof, or the Dis-
trict of Columbia, if natural persons described in 
subparagraph (A) own, directly or indirectly, 
more than 50 percent of the outstanding capital 
stock or other beneficial interest in such legal en-
tity. 
TITLE I—INVESTIGATIONS, PRO-
HIBITED CONDUCT, AND PEN-
ALTIES 
SEC. 101. STATEMENT OF POLICY. 
In order to achieve the peaceful disarmament of North 
Korea, Congress finds that it is necessary— 
(1) to encourage all states to fully and promptly 
implement United Nations Security Council Resolu-
tion 2094 (2013); 
(2) to sanction— 
(A) persons that facilitate proliferation of 
weapons of mass destruction, illicit activities, 
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arms trafficking, imports of luxury goods, cash 
smuggling, censorship, and knowingly engage in 
significant activities undermining cyber security 
by the Government of North Korea; and 
(B) persons that fail to exercise due dili-
gence to ensure that financial institutions do not 
facilitate any of the activities described in sub-
paragraph (A) by the Government of North 
Korea; 
(3) to deny the Government of North Korea ac-
cess to the funds it uses to obtain nuclear weapons, 
ballistic missiles, offensive cyber capabilities, and lux-
ury goods instead of providing for the needs of its 
people; and 
(4) to enforce sanctions in a manner that avoids 
any adverse humanitarian impact on the people of 
North Korea to the extent possible and in a manner 
that does not unduly constrain the enforcement of 
such sanctions. 
SEC. 102. INVESTIGATIONS. 
The President shall initiate an investigation into the 
possible designation of a person under section 104(a) upon 
receipt by the President of credible information indicating 
that such person has engaged in conduct described in section 
104(a). 
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SEC. 103. BRIEFING TO CONGRESS. 
Not later than 180 days after the date of the enactment 
of this Act, and periodically thereafter, the President shall 
provide to the appropriate congressional committees a brief-
ing on efforts to implement this Act, to include the fol-
lowing, to the extent the information is available: 
(1) The principal foreign assets and sources of 
foreign income of the Government of North Korea. 
(2) A list of the persons designated under sub-
sections (a) and (b) of section 104. 
(3) A list of the persons with respect to which 
sanctions were waived or removed under section 207. 
(4) A summary of any diplomatic efforts made 
in accordance with section 202(b) and of the progress 
realized from such efforts, including efforts to encour-
age the European Union and other states and juris-
dictions to sanction and block the assets of the For-
eign Trade Bank of North Korea and Daedong Credit 
Bank. 
SEC. 104. DESIGNATION OF PERSONS FOR PROHIBITED 
CONDUCT AND MANDATORY AND DISCRE-
TIONARY DESIGNATION AND SANCTIONS AU-
THORITIES. 
(a) PROHIBITED CONDUCT AND MANDATORY DESIGNA-
TION AND SANCTIONS AUTHORITY.— 
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(1) CONDUCT DESCRIBED.—Except as provided 
in section 207, the President shall designate under 
this subsection any person the President determines 
to— 
(A) have knowingly engaged in significant 
activities or transactions with the Government of 
North Korea that have materially contributed to 
the proliferation of weapons of mass destruction 
or their means of delivery (including missiles ca-
pable of delivering such weapons), including any 
efforts to manufacture, acquire, possess, develop, 
transport, transfer, or use such items; 
(B) have knowingly imported, exported, or 
reexported to, into, or from North Korea any sig-
nificant arms or related materiel, whether di-
rectly or indirectly; 
(C) have knowingly provided significant 
training, advice, or other services or assistance, 
or engaged in significant transactions, related to 
the manufacture, maintenance, or use of any 
arms or related materiel to be imported, ex-
ported, or reexported to, into, or from North 
Korea, or following their importation, expor-
tation, or reexportation to, into, or from North 
Korea, whether directly or indirectly; 
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(D) have knowingly, directly or indirectly, 
imported, exported, or reexported significant lux-
ury goods to or into North Korea; 
(E) have knowingly engaged in or been re-
sponsible for censorship by the Government of 
North Korea, including prohibiting, limiting, or 
penalizing the exercise of freedom of expression 
or assembly, limiting access to print, radio or 
other broadcast media, Internet or other elec-
tronic communications, or the facilitation or 
support of intentional frequency manipulation 
that would jam or restrict an international sig-
nal; 
(F) have knowingly engaged in or been re-
sponsible for serious human rights abuses by the 
Government of North Korea, including torture or 
cruel, inhuman, or degrading treatment or pun-
ishment, prolonged detention without charges 
and trial, forced labor or trafficking in persons, 
causing the disappearance of persons by the ab-
duction and clandestine detention of those per-
sons, and other denial of the right to life, liberty, 
or the security of a person; 
(G) have knowingly, directly or indirectly, 
engaged in acts of money laundering, the coun-
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terfeiting of goods or currency, bulk cash smug-
gling, narcotics trafficking, or other illicit activ-
ity that involves or supports the Government of 
North Korea or any senior official thereof, 
whether directly or indirectly; or 
(H) have knowingly attempted to engage in 
any of the conduct described in subparagraphs 
(A) through (G) of this paragraph. 
(2) EFFECT OF DESIGNATION.—With respect to 
any person designated under this subsection, the 
President— 
(A) shall exercise the authorities of the 
International Emergency Economic Powers Act 
(50 U.S.C. 1705 et seq.) to block all property 
and interests in property of any person des-
ignated under this subsection that are in the 
United States, that hereafter come within the 
United States, or that are or hereafter come 
within the possession or control of any United 
States person, including any overseas branch; 
and 
(B) may apply any of the sanctions de-
scribed in sections 204, 205(c), and 206. 
(3) PENALTIES.—The penalties provided for in 
section 206 of the International Emergency Economic 
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Powers Act (50 U.S.C. 1705) shall apply to a person 
who violates, attempts to violate, conspires to violate, 
or causes a violation of any prohibition provided for 
in this subsection, or of an order or regulation pre-
scribed under this Act, to the same extent that such 
penalties apply to a person that commits an unlawful 
act described in section 206(a) of that Act (50 U.S.C. 
1705(a)). 
(4) DEFINITION.—In paragraph (1)(F), the term 
‘‘trafficking in persons’’ has the meaning given the 
term in section 103(9) of the Trafficking Victims Pro-
tection Act of 2000 (22 U.S.C. 7102(9)). 
(b) DISCRETIONARY DESIGNATION
AND SANCTIONS 
AUTHORITY.— 
(1) CONDUCT DESCRIBED.—Except as provided 
in section 207 and paragraph (3) of this subsection, 
the President may designate under this subsection 
any person that the President determines to— 
(A) have knowingly engaged in, contributed 
to, assisted, sponsored, or provided financial, 
material or technological support for, or goods 
and services in support of, any violation of, or 
evasion of, an applicable United Nations Secu-
rity Council resolution; 
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(B) have knowingly facilitated the transfer 
of any funds, financial assets, or economic re-
sources of, or property or interests in property of 
a person designated under an applicable Execu-
tive order, or by the United Nations Security 
Council pursuant to an applicable United Na-
tions Security Council resolution; 
(C) have knowingly facilitated the transfer 
of any funds, financial assets, or economic re-
sources, or any property or interests in property 
derived from, involved in, or that has materially 
contributed to conduct prohibited by subsection 
(a) or an applicable United Nations Security 
Council resolution; 
(D) have knowingly facilitated any trans-
action, including any transaction in bulk cash 
or other stores of value, without applying en-
hanced monitoring to ensure that such trans-
action does not contribute materially to conduct 
described in subsection (a) an applicable Execu-
tive order, or an applicable United Nations Se-
curity Council resolution; 
(E) have knowingly facilitated any trans-
actions in cash or monetary instruments or other 
stores of value, including through cash couriers 
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transiting to or from North Korea, used to facili-
tate any conduct prohibited by an applicable 
United Nations Security Council resolution; 
(F) have knowingly, directly or indirectly, 
engaged in significant activities undermining 
cyber security for, in support of on behalf of, the 
Government of North Korea or any senior offi-
cial thereof, or have knowingly contributed to the 
bribery of an official of the Government of North 
Korea, the misappropriation, theft, or embezzle-
ment of public funds by, or for the benefit of, an 
official of the Government of North Korea, or the 
use of any proceeds of any such conduct; or 
(G) have knowingly and materially assisted, 
sponsored, or provided significant financial, ma-
terial, or technological support for, or goods or 
services to or in support of, the conduct described 
in subparagraphs (A) through (F) of this para-
graph or the conduct described in subparagraphs 
(A) through (G) of subsection (a)(1). 
(2) EFFECT OF DESIGNATION.—With respect to 
any person designated under this subsection, the 
President— 
(A) may apply the sanctions described in 
section 204; 
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(B) may apply any of the special measures 
described in section 5318A of title 31, United 
States Code; 
(C) may prohibit any transactions in for-
eign exchange that are subject to the jurisdiction 
of the United States and in which such person 
has any interest; 
(D) may prohibit any transfers of credit or 
payments between financial institutions or by, 
through, or to any financial institution, to the 
extent that such transfers or payments are sub-
ject to the jurisdiction of the United States and 
involve any interest of the person; and 
(E) may exercise the authorities of the 
International Emergency Economic Powers Act 
(50 U.S.C. 1705 et seq.) without regard to sec-
tion 202 of such Act to block any property and 
interests in property of any person designated 
under this subsection that are in the United 
States, that hereafter come within the United 
States, or that are or hereafter come within the 
possession or control of any United States per-
son, including any overseas branch. 
(3) LIMITATION.—If the President determines 
that a person has engaged in any conduct described 
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in subparagraphs (A) through (F) of paragraph (1) 
that may also be construed to constitute conduct de-
scribed in subparagraphs (A) through (H) of sub-
section (a)(1), the President may not designate the 
person under this subsection but rather shall des-
ignate the person under subsection (a). 
(c) BLOCKING OF ALL PROPERTY AND INTERESTS IN 
PROPERTY OF THE GOVERNMENT OF NORTH KOREA AND 
THE WORKER’S PARTY OF KOREA.—Except as provided in 
section 207, the President shall exercise the authorities of 
the International Emergency Economic Powers Act (50 
U.S.C. 1705 et seq.) to block all property and interests in 
property of the Government of North Korea or the Worker’s 
Party of Korea that on or after the date of the enactment 
of this Act come within the United States, or that come 
within the possession or control of any United States per-
son, including any overseas branch. 
(d) APPLICATION.—The designation of a person under 
subsection (a) or (b) and the blocking of property and inter-
ests in property under subsection (c) shall also apply with 
respect to a person who is determined to be owned or con-
trolled by, or to have acted or purported to act for or on 
behalf of, directly or indirectly, any person whose property 
and interests in property are blocked pursuant to this sec-
tion. 
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(e) LICENSING.— 
(1) LICENSE
REQUIRED.—Not later than 180 
days after the date of enactment of this Act, the Presi-
dent shall promulgate regulations prohibiting United 
States persons from engaging in any transaction in-
volving any property— 
(A) in which the Government of North 
Korea has an interest; 
(B) located in North Korea; 
(C) of North Korean origin; or 
(D) knowingly transferred, directly or indi-
rectly, to the Government of North Korea. 
(2) TRANSACTION
LICENSING.—The President 
shall deny or revoke any license for any transaction 
that, in the determination of the President, lacks suf-
ficient financial controls to ensure that such trans-
action will not facilitate any of the conduct described 
in subsection (a) or subsection (b). 
(3) LICENSING AUTHORIZATION.— 
(A) IN GENERAL.—Subject to subparagraph 
(B), the President may issue regulations to au-
thorize— 
(i) transactions for the purposes de-
scribed in section 207; and 
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