IB 
Union Calendar No. 265 
115TH CONGRESS 
1ST SESSION H. R. 3898 
[Report No. 115–361] 
To require the Secretary of the Treasury to place conditions on certain 
accounts at United States financial institutions with respect to North 
Korea, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 2, 2017 
Mr. BARR (for himself, Mr. HOLLINGSWORTH, Ms. MOORE, Mr. PERL-
MUTTER, Mr. HILL, and Mr. VARGAS) introduced the following bill; which 
was referred to the Committee on Financial Services 
OCTOBER 23, 2017 
Additional sponsors: Ms. SINEMA, Mr. WILLIAMS, Mr. DELANEY, Mr. 
MESSER, Mr. ROTHFUS, Mr. GOTTHEIMER, Mr. SHERMAN, Mr. 
PITTENGER, Mrs. CAROLYN B. MALONEY of New York, Mr. DAVIDSON, 
Mr. HECK, Mrs. LOVE, and Mr. POLIQUIN 
OCTOBER 23, 2017 
Reported with amendments, committed to the Committee of the Whole House 
on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on October 2, 2017] 
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A BILL 
To require the Secretary of the Treasury to place conditions 
on certain accounts at United States financial institu-
tions with respect to North Korea, and for other pur-
poses. 
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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. 
This Act may be cited as the ‘‘Impeding North Korea’s 
Access to Finance Act of 2017’’. 
SEC. 2. FINDINGS. 
The Congress finds the following: 
(1) On June 1, 2016, the Department of the 
Treasury’s Financial Crimes Enforcement Network 
announced a Notice of Finding that the Democratic 
People’s Republic of Korea is a jurisdiction of pri-
mary money laundering concern due to its use of 
state-controlled financial institutions and front com-
panies to support the proliferation and development 
of weapons of mass destruction (WMD) and ballistic 
missiles. 
(2) The Financial Action Task Force (FATF) 
has expressed serious concerns with the threat posed 
by North Korea’s proliferation and financing of 
WMD, and has called on FATF members to apply ef-
fective counter-measures to protect their financial sec-
tors from North Korean money laundering, WMD 
proliferation financing, and the financing of ter-
rorism. 
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(3) In its February 2017 report, the U.N. Panel 
of Experts concluded that— 
(A) North Korea continued to access the 
international financial system in support of il-
licit activities despite sanctions imposed by U.N. 
Security Council Resolutions 2270 (2016) and 
2321 (2016); 
(B) during the reporting period, no member 
state had reported taking actions to freeze North 
Korean assets; and 
(C) sanctions evasion by North Korea, com-
bined with inadequate compliance by member 
states, had significantly negated the impact of 
U.N. Security Council resolutions. 
(4) In its September 2017 report, the U.N. Panel 
of Experts found that— 
(A) North Korea continued to violate finan-
cial sanctions by using agents acting abroad on 
the country’s behalf; 
(B) foreign financial institutions provided 
correspondent banking services to North Korean 
persons and front companies for illicit purposes; 
(C) foreign companies violated sanctions by 
maintaining links with North Korean financial 
institutions; and 
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(D) North Korea generated at least $270 
million during the reporting period through the 
violation of sectoral sanctions. 
(5) North Korean entities engage in significant 
financial transactions through foreign bank accounts 
that are maintained by non-North Korean nationals, 
thereby masking account users’ identity in order to 
access financial services. 
(6) North Korea’s sixth nuclear test on Sep-
tember 3, 2017, demonstrated an estimated explosive 
power more than 100 times greater than that gen-
erated by its first nuclear test in 2006. 
(7) North Korea has successfully tested sub-
marine-launched and intercontinental ballistic mis-
siles, and is rapidly progressing in its development of 
a nuclear-armed missile that is capable of reaching 
United States territory. 
SEC. 3. CONDITIONS WITH RESPECT TO CERTAIN AC-
COUNTS AND TRANSACTIONS AT UNITED 
STATES FINANCIAL INSTITUTIONS. 
(a) CORRESPONDENT
AND PAYABLE-THROUGH AC-
COUNTS HELD BY FOREIGN FINANCIAL INSTITUTIONS.— 
(1) IN GENERAL.—Not later than 45 days after 
the date of the enactment of this Act, the Secretary of 
the Treasury shall prescribe regulations to prohibit, 
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or impose strict conditions on, the opening or main-
taining in the United States of a correspondent ac-
count or a payable-through account by a foreign fi-
nancial institution that the Secretary finds know-
ingly facilitates a significant transaction or trans-
actions or provides significant financial services for a 
covered person. 
(2) PENALTIES.— 
(A) CIVIL PENALTY.—A person who violates, 
attempts to violate, conspires to violate, or causes 
a violation of regulations prescribed under this 
subsection shall be subject to a civil penalty in 
an amount not to exceed the greater of— 
(i) $250,000; or 
(ii) 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. 
(B) CRIMINAL
PENALTY.—A person who 
willfully commits, willfully attempts to commit, 
or willfully conspires to commit, or aids or abets 
in the commission of, a violation of regulations 
prescribed under this subsection shall, upon con-
viction, be fined not more than $1,000,000, or if 
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a natural person, may be imprisoned for not 
more than 20 years, or both. 
(b) RESTRICTIONS
ON CERTAIN TRANSACTIONS
BY 
UNITED STATES FINANCIAL INSTITUTIONS.— 
(1) IN GENERAL.—Not later than 45 days after 
the date of the enactment of this Act, the Secretary of 
the Treasury shall prescribe regulations to prohibit a 
United States financial institution, and any person 
owned or controlled by a United States financial in-
stitution, from knowingly engaging in a significant 
transaction or transactions with or benefitting any 
person that the Secretary finds to be a covered person. 
(2) CIVIL PENALTY.—A person who violates, at-
tempts to violate, conspires to violate, or causes a vio-
lation of regulations prescribed under this subsection 
shall be subject to a civil penalty in an amount not 
to exceed the greater of— 
(A) $250,000; 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. 
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SEC. 4. OPPOSITION TO ASSISTANCE BY THE INTER-
NATIONAL FINANCIAL INSTITUTIONS AND 
THE EXPORT-IMPORT BANK. 
(a) INTERNATIONAL FINANCIAL INSTITUTIONS.—The 
Bretton Woods Agreements Act (22 U.S.C. 286 et seq.) is 
amended by adding at the end the following: 
‘‘SEC. 73. OPPOSITION TO ASSISTANCE FOR ANY GOVERN-
MENT THAT FAILS TO IMPLEMENT SANC-
TIONS ON NORTH KOREA. 
‘‘(a) IN GENERAL.—The Secretary of the Treasury 
shall instruct the United States Executive Director at the 
international financial institutions (as defined under sec-
tion 1701(c) of the International Financial Institutions 
Act) to use the voice and vote of the United States to oppose 
the provision of financial assistance to a foreign govern-
ment, other than assistance to support basic human needs, 
if the President determines that, in the year preceding con-
sideration of approval of such assistance, the government 
has knowingly failed to prevent the provision of financial 
services to, or freeze the funds, financial assets, and eco-
nomic resources of, a person described under subparagraphs 
(A) through (E) of section 7(2) of the Impeding North Ko-
rea’s Access to Finance Act of 2017. 
‘‘(b) WAIVER.—The President may waive subsection 
(a) for up to 180 days at a time with respect to a foreign 
government if the President reports to Congress that— 
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‘‘(1) the foreign government’s failure described 
under (a) is due exclusively to a lack of foreign gov-
ernment capacity; 
‘‘(2) the foreign government is taking effective 
steps to prevent recurrence of such failure; or 
‘‘(3) such waiver is vital to the national security 
interests of the United States.’’. 
(b) EXPORT-IMPORT BANK.—Section 2(b) of the Ex-
port-Import Bank Act of 1945 (12 U.S.C. 635(b)) is amend-
ed by adding at the end the following: 
‘‘(14) PROHIBITION ON SUPPORT INVOLVING PER-
SONS CONNECTED WITH NORTH KOREA.—The Bank 
may not guarantee, insure, or extend credit, or par-
ticipate in the extension of credit in connection with 
the export of a good or service to a covered person (as 
defined under section 7 of the Impeding North Korea’s 
Access to Finance Act of 2017).’’. 
SEC. 5. TREASURY REPORTS ON COMPLIANCE, PENALTIES, 
AND TECHNICAL ASSISTANCE. 
(a) QUARTERLY REPORT.— 
(1) IN GENERAL.—Not later than 120 days fol-
lowing the date of the enactment of this Act, and 
every 90 days thereafter, the Secretary of the Treas-
ury shall submit a report to the Committee on Finan-
cial Services of the House of Representatives and the 
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Committee on Banking, Housing, and Urban Affairs 
of the Senate that includes— 
(A) a list of financial institutions that, in 
the period since the preceding report, knowingly 
facilitated a significant transaction or trans-
actions or provided significant financial services 
for a covered person, or failed to apply appro-
priate due diligence to prevent such activities; 
(B) a list of any penalties imposed under 
section 3 in the period since the preceding re-
port; and 
(C) a description of efforts by the Depart-
ment of the Treasury in the period since the pre-
ceding report, through consultations, technical 
assistance, or other appropriate activities, to 
strengthen the capacity of financial institutions 
and foreign governments to prevent the provision 
of financial services benefitting any covered per-
son. 
(2) FORM OF REPORT; PUBLIC AVAILABILITY.— 
(A) FORM.—The report required under 
paragraph (1) shall be submitted in unclassified 
form but may contain a classified annex. 
(B) PUBLIC
AVAILABILITY.—The unclassi-
fied portion of such report shall be made avail-
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able to the public and posted on the website of 
the Department of the Treasury. 
(b) TESTIMONY REQUIRED.—Upon request of the Com-
mittee on Financial Services of the House of Representa-
tives or the Committee on Banking, Housing, and Urban 
Affairs of the Senate, the Under Secretary of the Treasury 
for Terrorism and Financial Intelligence shall testify to ex-
plain the effects of this Act, and the amendments made by 
this Act, on North Korea’s access to finance. 
(c) INTERNATIONAL MONETARY FUND.—Title XVI of 
the International Financial Institutions Act (22 U.S.C. 
262p et seq.) is amended by adding at the end the following: 
‘‘SEC. 1629. SUPPORT FOR CAPACITY OF THE INTER-
NATIONAL MONETARY FUND TO PREVENT 
MONEY LAUNDERING AND FINANCING OF 
TERRORISM. 
‘‘The Secretary of the Treasury shall instruct the 
United States Executive Director at the International Mon-
etary Fund to support the use of the administrative budget 
of the Fund for technical assistance that strengthens the ca-
pacity of Fund members to prevent money laundering and 
the financing of terrorism.’’. 
(d) NATIONAL ADVISORY COUNCIL REPORT TO CON-
GRESS.—The Chairman of the National Advisory Council 
on International Monetary and Financial Policies shall in-
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clude in the report required by section 1701 of the Inter-
national Financial Institutions Act (22 U.S.C. 262r) for 
the fiscal year following the date of the enactment of this 
Act a description of— 
(1) the activities of the International Monetary 
Fund in the most recently completed fiscal year to 
provide technical assistance that strengthens the ca-
pacity of Fund members to prevent money laundering 
and the financing of terrorism, and the effectiveness 
of the assistance; and 
(2) the efficacy of efforts by the United States to 
support such technical assistance through the use of 
the Fund’s administrative budget. 
SEC. 6. SUSPENSION AND TERMINATION OF PROHIBITIONS 
AND PENALTIES. 
(a) SUSPENSION.—The President may suspend, on a 
case-by-case basis, the application of any provision of this 
Act, or provision in an amendment made by this Act, for 
a period of not more than 180 days at a time if the Presi-
dent certifies to Congress that— 
(1) the Government of North Korea has— 
(A) committed to the verifiable suspension 
of North Korea’s proliferation and testing of 
WMD, including systems designed in whole or in 
part for the delivery of such weapons; and 
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(B) has agreed to multilateral talks includ-
ing the Government of the United States, with 
the goal of permanently and verifiably limiting 
North Korea’s WMD and ballistic missile pro-
grams; or 
(2) such suspension is vital to the national secu-
rity interests of the United States, with an expla-
nation of the reasons therefor. 
(b) TERMINATION.— 
(1) IN GENERAL.—On the date that is 30 days 
after the date on which the President makes the cer-
tification described under paragraph (2)— 
(A) section 3, subsections (a) and (b) of sec-
tion 5, and section 6(a) of this Act shall cease 
to have any force or effect; 
(B) section 73 of the Bretton Woods Agree-
ments Act, as added by section 4(a), shall be re-
pealed; and 
(C) section 2(b)(14) of the Export-Import 
Bank Act of 1945, as added by section 4(b), shall 
be repealed. 
(2) CERTIFICATION.—The certification described 
under this paragraph is a certification by the Presi-
dent to the Congress that— 
(A) the Government of North Korea— 
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(i) has ceased to pose a significant 
threat to national security, with an expla-
nation of the reasons therefor; or 
(ii) is committed to, and is taking ef-
fective steps to achieving, the goal of perma-
nently and verifiably limiting North Ko-
rea’s WMD and ballistic missile programs; 
or 
(B) such termination is vital to the na-
tional security interests of the United States, 
with an explanation of the reasons therefor. 
SEC. 7. DEFINITIONS. 
For purposes of this Act: 
(1) TERMS RELATED TO NORTH KOREA.—The 
terms ‘‘applicable Executive order’’, ‘‘Government of 
North Korea’’, ‘‘North Korea’’, ‘‘North Korean per-
son’’, and ‘‘significant activities undermining cyber-
security’’ have the meanings given those terms, respec-
tively, in section 3 of the North Korea Sanctions and 
Policy Enhancement Act of 2016 (22 U.S.C. 9202). 
(2) COVERED PERSON.—The term ‘‘covered per-
son’’ means the following: 
(A) Any designated person under an appli-
cable Executive order. 
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(B) Any North Korean person that facili-
tates the transfer of bulk cash or covered goods 
(as defined under section 1027.100 of title 31, 
Code of Federal Regulations). 
(C) Any North Korean financial institu-
tion. 
(D) Any North Korean person employed 
outside of North Korea, except that the Secretary 
of the Treasury may waive the application of 
this subparagraph for a North Korean person 
that is not otherwise a covered person and— 
(i) has been granted asylum or refugee 
status by the country of employment; or 
(ii) is employed as essential diplomatic 
personnel for the Government of North 
Korea. 
(E) Any person acting on behalf of, or at 
the direction of, a person described under sub-
paragraphs (A) through (D). 
(F) Any person that knowingly employs a 
person described under subparagraph (D). 
(G) Any person that facilitates the import 
of goods, services, technology, or natural re-
sources, including energy imports and minerals, 
or their derivatives, from North Korea. 
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(H) Any person that facilitates the export of 
goods, services, technology, or natural resources, 
including energy exports and minerals, or their 
derivatives, to North Korea, except for food, med-
icine, or medical supplies required for civilian 
humanitarian needs. 
(I) Any person that invests in, or partici-
pates in a joint venture with, an entity in which 
the Government of North Korea participates or 
an entity that is created or organized under 
North Korean law. 
(J) Any person that provides financial serv-
ices, including through a subsidiary or joint ven-
ture, in North Korea. 
(K) Any person that insures, registers, fa-
cilitates the registration of, or maintains insur-
ance or a registration for, a vessel owned, con-
trolled, commanded, or operated by a North Ko-
rean person. 
(L) Any person providing specialized teach-
ing, training, or information or providing mate-
rial or technological support to a North Korean 
person that— 
(i) may contribute to North Korea’s de-
velopment and proliferation of WMD, in-
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