I 
113TH CONGRESS 
1ST SESSION H. R. 1771 
To improve the enforcement of sanctions against the Government of North 
Korea, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 26, 2013 
Mr. ROYCE (for himself, Mr. ENGEL, Mr. CHABOT, Ms. ROS-LEHTINEN, Mr. 
ROHRABACHER, Mr. POE of Texas, Mr. SHERMAN, and Mr. SALMON) in-
troduced the following bill; which was referred to the Committee on For-
eign 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 com-
mittee concerned 
A BILL 
To improve the enforcement of sanctions against the 
Government of North Korea, and for other purposes. 
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 2013’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
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Sec. 1. Short title; table of contents. 
Sec. 2. Findings. 
Sec. 3. Definitions. 
TITLE I—INVESTIGATIONS, PROHIBITED ACTIVITIES, AND 
PENALTIES 
Sec. 101. Statement of policy. 
Sec. 102. Investigations. 
Sec. 103. Briefing to Congress. 
Sec. 104. Designation of persons, foreign governments, and financial institu-
tions. 
Sec. 105. Forfeiture of property. 
TITLE II—SANCTIONS AGAINST NORTH KOREAN PROLIFERATION, 
HUMAN RIGHTS VIOLATIONS, AND ILLICIT ACTIVITIES 
Sec. 201. Sanctions for material support of North Korean proliferation. 
Sec. 202. Sanctions against the provision of specialized financial messaging 
services to designated North Korean financial institutions. 
Sec. 203. Proliferation prevention sanctions. 
Sec. 204. Procurement sanctions. 
Sec. 205. Sanctions with respect to the provision of vessels or shipping services 
to transport certain goods related to proliferation, terrorism, or 
criminal activities of North Korea. 
Sec. 206. International assistance. 
Sec. 207. Exclusion, waiver, and removal of designation. 
TITLE III—PROMOTION OF HUMAN RIGHTS AND DISINVESTMENT 
Sec. 301. Information technology. 
Sec. 302. Disclosures to Securities and Exchange Commission relating to 
sanctionable activities. 
Sec. 303. Authority of State and local governments to divest from companies 
that invest in North Korea. 
Sec. 304. Safe harbor for changes of investment policies by asset managers. 
Sec. 305. Sense of Congress regarding certain ERISA plan investments. 
Sec. 306. Report on North Korean prison camps. 
Sec. 307. Limits on jurisdictional immunity. 
TITLE IV—GENERAL AUTHORITIES 
Sec. 401. Suspension of sanctions and other measures. 
Sec. 402. Termination of sanctions and other measures. 
Sec. 403. North Korea Enforcement and Humanitarian Fund. 
Sec. 404. Regulations. 
Sec. 405. Effective date. 
SEC. 2. FINDINGS. 
Congress finds the following: 
(1) The Government of North Korea has re-
peatedly violated its commitments to the complete, 
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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 
implicated 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 re-
cently and repeatedly sponsored acts of international 
terrorism, including attempts to assassinate defec-
tors and human rights activists; repeated threats of 
violence against foreign persons, leaders, news-
papers, and cities; and the shipment of weapons to 
Hezbollah and Hamas via Iran. 
(5) North Korea has unilaterally withdrawn 
from the 1953 Armistice Agreement that ended the 
Korean War, and committed unprovoked acts of war 
against South Korea in 2010 by sinking the warship 
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Cheonan and killing 46 of her crew, and by shelling 
Yeonpyeong Island, killing four civilians. 
(6) North Korea maintains a system of brutal 
political prison camps that contain as many as 
200,000 men, women, and children, who live in atro-
cious living conditions with insufficient food, cloth-
ing, and medical care, and under constant fear of 
torture or arbitrary execution. 
(7) The Congress reaffirms the purposes estab-
lished in the North Korean Human Rights Act of 
2004 (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) Persons, including financial institutions, 
who engage in transactions with, or provide financial 
services to, the Government of North Korea and its 
financial institutions without establishing sufficient 
financial safeguards against North Korea’s use of 
these transactions to promote proliferation, weapons 
trafficking, human rights violations, illicit activity, 
and the purchase of luxury goods, aid and abet 
North Korea’s misuse of the international financial 
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system, and also violate the intent of relevant United 
Nations Security Council resolutions. 
(10) 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. 
(11) The Congress seeks, through this legisla-
tion, to use nonmilitary means to address this emer-
gency, to provide diplomatic leverage to negotiate 
necessary changes in North Korea’s conduct, and to 
ease the suffering of the people of North Korea. 
SEC. 3. DEFINITIONS. 
In this Act: 
(1) ACCOUNT; CORRESPONDENT ACCOUNT; PAY-
ABLE-THROUGH
ACCOUNT.—The terms ‘‘account’’, 
‘‘correspondent account’’, and ‘‘payable-through ac-
count’’ have the meanings given those terms, respec-
tively, under section 5318A of title 31, United 
States Code. 
(2) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional com-
mittees’’ means— 
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(A) the Committee on Foreign Affairs and 
the Committee 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. 
(3) 
CENSORSHIP.—The 
term 
‘‘censorship’’ 
means, with respect to North Korea, activities 
that— 
(A) prohibit, limit, or penalize the exercise 
of freedom of expression or assembly by citizens 
of North Korea; or 
(B) limit access to print or broadcast 
media, including the facilitation or support of 
intentional frequency manipulation by the Gov-
ernment of North Korea that would jam or re-
strict an international signal. 
(4) DESIGNATED
PERSON.—The term ‘‘des-
ignated person’’ means a person, foreign govern-
ment, or financial institution designated by the 
President under subsection (a), (b), (c), or (d) of 
section 104 for purposes of applying the sanctions 
described in title II (as applicable) with respect to 
the person, foreign government, or financial institu-
tion. 
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(5) DOMESTIC FINANCIAL INSTITUTION.—The 
term ‘‘domestic financial institution’’ has the mean-
ing given such term in section 5312 of title 31, 
United States Code. 
(6) FACILITATE.— 
(A) IN GENERAL.—The term ‘‘facilitate’’ 
means, with respect to any of the activities de-
scribed in section 104(a), to— 
(i) provide material support to, aid, 
abet, attempt, or conspire to commit the 
activity; 
(ii) conceal any evidence, proceeds, or 
instrumentalities of the activity; 
(iii) possess, receive, exchange, or 
transmit the proceeds, instrumentalities, or 
other property involved in the activity; 
(iv) sell, lease, or provide a vessel or 
conveyance, to register of reflag a vessel or 
conveyance, or provide insurance or rein-
surance or any other shipping service in 
furtherance of the activity; or 
(v) engage in any act with the pur-
pose of causing the activity to occur. 
(B) EXCEPTION.—Nothing in this para-
graph shall be construed to apply with respect 
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to the provision of specialized financial mes-
saging services (as described in section 202). 
(7) FINANCIAL
INSTITUTION.—The term ‘‘fi-
nancial institution’’ means a financial institution 
specified in subparagraph (A), (B), (C), (D), (E), 
(F), (G), (H), (I), (J), (M), or (Y) of section 
5312(a)(2) of title 31, United States Code. 
(8) FINANCIAL TRANSACTION.—The term ‘‘fi-
nancial transaction’’ has the meaning given such 
term in section 1956 of title 18, United States Code. 
(9) FOREIGN
GOVERNMENT.—The term ‘‘for-
eign government’’ has the meaning given the term 
‘‘foreign state’’ in section 1603 of title 28, United 
States Code. 
(10) GOVERNMENT
OF
NORTH
KOREA.—The 
term ‘‘Government of North Korea’’ means— 
(A) the Government of North Korea; 
(B) any political subdivision, agency, or in-
strumentality thereof; 
(C) the National Defense Commission of 
North Korea and its members; and 
(D) any person owned or controlled by, or 
acting for or on behalf of, the Government of 
North Korea. 
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(11) INSTRUMENTALITIES.—The term ‘‘instru-
mentalities’’ includes, with respect to any of the ac-
tivities described in section 104(a)— 
(A) any property other than proceeds of 
such transaction which is also part of the sub-
ject matter of such transaction; 
(B) any property used to facilitate such 
transaction, including any article, container, or 
conveyance used, or intended to be used, to fa-
cilitate such transaction; and 
(C) any property other than the proceeds 
of such transaction that is involved in or used 
to facilitate such transaction. 
(12) INTERNATIONAL
TERRORISM.—The term 
‘‘international terrorism’’ has the meaning given 
such term in section 2331 of title 18, United States 
Code. 
(13) 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. 
(14) 
MONETARY
INSTRUMENT.—The 
term 
‘‘monetary instrument’’ has the meaning given such 
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term under section 5312 of title 31, United States 
Code, and also includes— 
(A) stored value cards, tangible or intan-
gible prepaid access devices, or other instru-
ments or devices for the electronic storage or 
transmission of value, as defined in part 1010 
of title 31, Code of Federal Regulations; and 
(B) any covered goods, as defined in sec-
tion 1027.100 of title 31, Code of Federal Reg-
ulations, and any instrument or tangible or in-
tangible access device use for the electronic 
storage and transmission of a representation of 
covered goods. 
(15) NORTH
KOREAN
FINANCIAL
INSTITU-
TION.—The term ‘‘North Korean financial institu-
tion’’ means— 
(A) a financial institution organized under 
the laws of North Korea or any jurisdiction 
within North Korea, including a foreign branch 
of such an institution; 
(B) a financial institution located in North 
Korea, except as may be excluded from such 
definition by the President in accordance with 
section 207(d); 
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(18) PROCEEDS.—The term ‘‘proceeds’’ has the 
meaning given such term in section 1956 of title 18, 
United States Code. 
(19) SERIOUS
HUMAN
RIGHTS
ABUSE.—The 
term ‘‘serious human rights abuse’’ includes geno-
cide, slavery, kidnaping, peonage, murder, torture, 
and aggravated sexual abuse, as those terms are de-
scribed and made punishable under part I of title 
18, United States Code, when carried out by the 
Government of North Korea, without regard to 
whether such conduct is within the criminal jurisdic-
tion of the United States. 
(20) SPECIFIED
UNLAWFUL
ACTIVITY.—The 
term ‘‘specified unlawful activity’’ has the meaning 
given such term in section 1956 of title 18, United 
States Code. 
(21) TRANSACTION.—The term ‘‘transaction’’ 
has the meaning given such term in section 1956 of 
title 18, United States Code. 
(22) 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 alle-
giance to the United States; and 
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(B) a corporation or other legal entity 
which is organized under the laws of the United 
States, any State or territory thereof, or the 
District of Columbia, if a natural person de-
scribed in subparagraph (A) owns, directly or 
indirectly, more than 50 percent of the out-
standing capital stock or other beneficial inter-
est in such corporation or other legal entity. 
TITLE I—INVESTIGATIONS, PRO-
HIBITED 
ACTIVITIES, 
AND 
PENALTIES 
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 responsible members of the 
international community to fully and promptly im-
plement United Nations Security Council Resolution 
2094; 
(2) to sanction the entities, officials, and finan-
cial institutions that facilitate proliferation, illicit ac-
tivities, arms trafficking, imports of luxury goods, 
severe human rights abuses, cash smuggling, and 
censorship by the Government of North Korea; 
(3) to authorize the President to sanction finan-
cial institutions and jurisdictions that fail to exercise 
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due diligence to ensure that such financial institu-
tions and jurisdictions do not facilitate proliferation, 
arms trafficking, kleptocracy, and imports of luxury 
goods by the Government of North Korea; and 
(4) to deny the Government of North Korea ac-
cess to the funds it uses to obtain nuclear weapons, 
ballistic missiles, and luxury goods instead of pro-
viding for the needs of its people. 
SEC. 102. INVESTIGATIONS. 
(a) INITIATION OF INVESTIGATION.—The President 
shall initiate an investigation into the possible designation 
of a person under section 104(a) upon receipt by the 
United States of credible information indicating that such 
person has engaged in one or more activities described in 
section 104(a) and, except as provided in section 207, 
shall designate any person who the President determines 
has engaged in one or more activities described in section 
104(a). 
(b) PERSONNEL.—The President shall direct the Sec-
retary of State, the Secretary of the Treasury, the Attor-
ney General, the Secretary of Homeland Security, the Sec-
retary of Defense, the Director of Central Intelligence, and 
the heads of other Federal departments and agencies as 
may be necessary to assign sufficient experienced and 
qualified investigators, attorneys, and technical personnel 
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to investigate and sanction any of the activities described 
in section 104(a) and to coordinate and ensure the effec-
tive enforcement of the provisions of this Act. 
(c) SHARING OF INFORMATION.—The Federal de-
partments and agencies supporting the enforcement of 
this Act shall share such information with, and shall pro-
vide each other access to, databases and other sources of 
information as may be necessary to enforce the provisions 
of this Act. 
SEC. 103. BRIEFING TO CONGRESS. 
(a) IN GENERAL.—Not later than 180 days after the 
date of the enactment of this Act, and every 180 days 
thereafter, the President shall provide to the appropriate 
congressional committees a briefing on the following: 
(1) ASSETS OF THE GOVERNMENT OF NORTH 
KOREA.—The significant assets held by the Govern-
ment of North Korea, the amount of each such 
asset, and the form and financial institution (if any) 
in which each such asset is held. 
(2) TRANSACTIONS
INVOLVING
THE
GOVERN-
MENT
OF
NORTH
KOREA.—The significant inter-
national financial transactions by the Government of 
North Korea during the previous 180 days, includ-
ing the amounts, parties, terms, and date of each 
such transaction, the property involved in the trans-
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action, and the names and nationalities of any finan-
cial institutions involved in each such transaction. 
(3) DESIGNATIONS.—Each person, foreign gov-
ernment, or financial institution designated under 
subsection (a), (b), (c), or (d) of section 104 during 
the previous 180 days. 
(4) WAIVERS, ETC.—All waivers, exclusions, 
and removals of designation granted under section 
207 during the previous 180 days. 
(b) CONTENTS
OF BRIEFING.—The briefings re-
quired by subsection (a) shall also contain— 
(1) a list of all persons and foreign govern-
ments that have provided financial, storage, trans-
portation, communication, messaging, promotional, 
or other services with respect to such property and 
transactions; 
(2) an assessment of the sufficiency of financial 
safeguards to ensure that such property and trans-
actions are prevented from being used to facilitate 
any of the activities described in section 104(a), and 
recommendations for any safeguards necessary to 
prevent such use; and 
(3) whether any evidence exists to suggest that 
such property constitutes the proceeds or instrumen-
talities of any activity described in section 104(a). 
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SEC. 104. DESIGNATION OF PERSONS, FOREIGN GOVERN-
MENTS, AND FINANCIAL INSTITUTIONS. 
(a) DESIGNATION OF PERSONS WHO ENGAGE IN 
CERTAIN ACTIVITIES.—Except as provided in section 207, 
the President shall exercise the authorities of the Inter-
national Emergency Economic Powers Act (50 U.S.C. 
1701 et seq.) without regard to section 202 of such Act 
to designate and apply the sanctions described in title II, 
as applicable, with respect to any person if the President 
determines that the person— 
(1) knowingly and materially contributes, 
through the export to or import from North Korea 
of any goods or technology, to the efforts by any 
government or person to use, develop, produce, 
stockpile, or otherwise acquire nuclear, radiological, 
chemical, or biological weapons, or any device or sys-
tem designed in whole or in part to deliver such 
weapons; 
(2) knowingly exports, or facilitates the export 
of, defense articles and defense services to the Gov-
ernment of North Korea, or knowingly exports, or 
facilitates the export of, any defense articles and de-
fense services from North Korea to any other coun-
try; 
(3) knowingly exports, or facilitates the export 
of, any luxury goods to North Korea; 
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(4) knowingly provides, sells, leases, registers, 
or reflags a vessel, aircraft, or other conveyance, or 
provides insurance or reinsurance or any other ship-
ping or transportation service used or intended to be 
used for, the transportation of goods to or from 
North Korea, for purposes facilitating a specified 
unlawful activity, or for purposes of evading a regu-
lation established under this Act or the International 
Emergency Economic Powers Act; 
(5) knowingly transfers, pays, exports, with-
draws, or otherwise deals with any property or inter-
est in property of the Government of North Korea 
for purposes of facilitating a specified unlawful ac-
tivity, or for purposes of evading a regulation estab-
lished under this Act or the International Emer-
gency Economic Powers Act; 
(6) knowingly engages in or facilitates censor-
ship by the Government of North Korea; or 
(7) knowingly commits or facilitates a serious 
human rights abuse by the Government of North 
Korea. 
(b) DESIGNATION OF PERSONS AND FOREIGN GOV-
ERNMENTS
THAT
ARE
SANCTIONED
BY
EXECUTIVE 
ORDER OR THE UNITED NATIONS.—Except as provided 
in section 207, the President shall exercise the authorities 
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of the International Emergency Economic Powers Act (50 
U.S.C. 1701 et seq.) without regard to section 202 of such 
Act to designate and apply the sanctions described in title 
II, as applicable, with respect to any person or foreign gov-
ernment if the President determines the person or foreign 
government— 
(1) has been listed or sanctioned under any reg-
ulation or Executive Order No. 13382, 13224, 
13551, or otherwise pursuant to the International 
Emergency Economic Powers Act for illicit activities 
or activities concerning North Korea’s proliferation 
of weapons of mass destruction; 
(2) has been sanctioned under United Nations 
Security Council resolutions 1695, 1718, 1874, 
2087, 2094, or other such resolution concerning 
North Korea’s proliferation of weapons of mass de-
struction; or 
(3) has been convicted of a criminal offense for 
any of the activities described in paragraphs (1) 
through (7) of subsection (a). 
(c) DESIGNATION
OF
GOVERNMENT
OF
NORTH 
KOREA.—Except as provided in section 207, the President 
shall exercise the authorities of the International Emer-
gency Economic Powers Act (50 U.S.C. 1701 et seq.) 
without regard to section 202 of such Act to designate 
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and apply the sanctions described in title II, as applicable, 
with respect to the Government of North Korea. 
(d) DISCRETIONARY AUTHORITY TO DESIGNATE 
FOREIGN
GOVERNMENTS
AND
FINANCIAL
INSTITU-
TIONS.—Except as provided in section 207, the President 
may exercise the authorities of the International Emer-
gency Economic Powers Act (50 U.S.C. 1701 et seq.) 
without regard to section 202 of such Act to designate 
and apply any of the sanctions described in sections 201 
and 204, as applicable, with respect to any foreign govern-
ment or financial institution if the President determines 
the foreign government or financial institution, after the 
date that is 180 days after the date of the enactment of 
this Act— 
(1) engages in any of the activities described in 
paragraphs (1) through (7) of subsection (a); 
(2) fails to freeze any funds, financial assets, or 
economic resources of a person designated under 
subsection (a) or (b) in accordance with the legal 
process of the country in which such property is 
held; 
(3) fails to freeze any funds, financial assets, or 
economic resources that could be used to facilitate 
any of the activities described in paragraph (1), (2), 
or (3) of subsection (a), in accordance with the legal 
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process of the country in which such property is 
held; 
(4) fails to apply enhanced monitoring to pre-
vent any transactions that could be used to facilitate 
any of the activities described in paragraph (1), (2), 
or (3) of subsection (a); 
(5) permits any North Korean financial institu-
tion to open any new branch, subsidiary or rep-
resentative office, or to establish any new joint ven-
ture within its jurisdiction, or to take an ownership 
interest in, or establish or maintain a correspondent 
relationship with any bank in its jurisdiction, if such 
branch, subsidiary, representative office, joint ven-
ture, ownership interest, or correspondent relation-
ship could be used to facilitate any of the activities 
described in paragraph (1), (2), or (3) of subsection 
(a); 
(6) fails to prohibit any transfers of cash, in-
cluding through cash couriers, transiting to and 
from North Korea so as to ensure such transfers of 
bulk cash are not used to facilitate any of the activi-
ties described in paragraph (1), (2), or (3) of sub-
section (a); 
(7) provides public financial support for trade 
with the Government of North Korea (including the 
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granting of export credits, guarantees or insurance 
to their nationals or entities involved in such trade) 
when such financial support could be used to facili-
tate any of the activities described in paragraph (1), 
(2), or (3) of subsection (a); or 
(8) facilitates the use of any proceeds of the 
bribery of an official of the Government of North 
Korea, or the misappropriation, theft, or embezzle-
ment of public funds by, or for the benefit of, an of-
ficial of the Government of North Korea. 
(e) APPLICATION TO SUCCESSORS, ETC.—The des-
ignation of a person, foreign government, or financial in-
stitution under subsection (a), (b), (c), or (d) shall also 
apply with respect to— 
(1) a successor entity to the designated person; 
(2) a person owned or controlled by, or under 
common ownership or control with, the designated 
person, if the person owned or controlled by, or 
under common ownership or control with (as the 
case may be), the designated person knowingly en-
gaged in the transaction causing the designation; 
(3) a corporate officer or principal of, or a 
shareholder with a controlling interest in, such des-
ignated person, if such corporate officer, or principal 
or shareholder with a controlling interest, knowingly 
VerDate Mar 15 2010 
02:58 May 01, 2013
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tjames on DSK6SPTVN1PROD with BILLS