SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘North Korea Sanctions Enforcement Act of 2016’’. 
(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 
discretionary designation and sanctions authorities. 
Sec. 105. Forfeiture of property. 
TITLE II—SANCTIONS AGAINST NORTH KOREAN PROLIFERATION, 
HUMAN RIGHTS ABUSES, ILLICIT ACTIVITIES, AND SIGNIFI-
CANT 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 sta-
bility 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. 
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. No additional funds authorized. 
Sec. 406. Effective date. 
SEC. 2. FINDINGS. 
Congress finds the following: 
(1) The Government of North Korea has re-
peatedly 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 
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, both 
historically and recently, repeatedly sponsored acts 
of international terrorism, including attempts to as-
sassinate defectors and human rights activists, re-
peated threats of violence against foreign persons,
leaders, newspapers, and cities, and the shipment of 
weapons to terrorists and state sponsors of ter-
rorism. 
(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 
torture 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
security with respect to United States persons and 
interests, and for threats of violence against the ci-
vilian 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 
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 
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 legisla-
tion, to use nonmilitary means to address this crisis, 
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) 
APPLICABLE
EXECUTIVE
ORDER.—The 
term ‘‘applicable Executive order’’ means— 
(A) Executive Order No. 13382 (2005), 
13466 (2008), 13551 (2010), 13570 (2011), or 
13687 (2015) to the extent that such Executive 
order authorizes the imposition of sanctions on 
persons for conduct, or prohibits transactions 
or activities, involving the Government of North 
Korea; or 
(B) any Executive order adopted on or 
after the date of the enactment of this Act, 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. 
(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 
(B) any United Nations Security Council 
resolution adopted on or after the date of the 
enactment of this Act, to the extent that such 
resolution authorizes the imposition of sanctions 
on persons for conduct, or prohibits trans-
actions or activities, involving the Government 
of North Korea. 
(3) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional com-
mittees’’ 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 
applying 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— 
(A) the Government of the Democratic 
People’s Republic of Korea or any political sub-
division, 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 
Authorization Act, Fiscal Years 1988 and 1989 (22 
U.S.C. 2656f(d)), and includes the conduct de-
scribed in section 212(a)(3)(B)(iii) of the Immigra-
tion 
and 
Nationality 
Act 
(8 
U.S.C. 
1182(a)(3)(B)(iii)), to the extent such conduct in-
volves 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 in-
cludes the items listed in Supplement No. 1 to such 
regulation, and any similar items. 
(8) MONETARY INSTRUMENT.—The term ‘‘mon-
etary instrument’’ has the meaning given such term 
under section 5312 of title 31, United States Code.
(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 insti-
tution 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
(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 used for the storage and 
transmission of a representation of covered 
goods, or other device, as defined in section 
1027.100 of title 31, Code of Federal Regula-
tions. 
(11) PERSON.—The term ‘‘person’’ has the 
meaning given such term in section 510.306 of title 
31, Code of Federal Regulations. 
(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 at-
tacks; 
(C) significant denial of service activities; 
or
(D) such other significant activities as may 
be described in regulations promulgated to im-
plement section 104. 
(13) UNITED
STATES
PERSON.—The term 
‘‘United States person’’ has the meaning given such 
term in section 510.311 of title 31, Code of Federal 
Regulations. 
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, 
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 
subparagraph (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 
luxury 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 peo-
ple of North Korea to the extent possible and in a 
manner that does not unduly constrain the enforce-
ment 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 sec-
tion 104(a). 
SEC. 103. BRIEFING TO CONGRESS. 
Not later than 180 days after the date of the enact-
ment of this Act, and periodically thereafter, the President 
shall provide to the appropriate congressional committees 
a briefing on efforts to implement this Act, to include the 
following, 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 encourage the European Union and other states 
and jurisdictions to sanction and block the assets of 
the Foreign 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 DES-
IGNATION AND SANCTIONS AUTHORITY.— 
(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 contrib-
uted to the proliferation of weapons of mass de-
struction or their means of delivery (including 
missiles capable of delivering such weapons), in-
cluding 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 
significant 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; 
(D) have knowingly, directly or indirectly, 
imported, exported, or reexported significant 
luxury 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 tor-
ture or cruel, inhuman, or degrading treatment 
or punishment, prolonged detention without 
charges and trial, forced labor or trafficking in 
persons, causing the disappearance of persons 
by the abduction and clandestine detention of 
those persons, 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-
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 foreign 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 Eco-
nomic 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 reg-
ulation prescribed 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 Vic-
tims Protection 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, contrib-
uted to, assisted, sponsored, or provided finan-
cial, material or technological support for, or 
goods and services in support of, any violation 
of, or evasion of, an applicable United Nations 
Security Council resolution; 
(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 Ex-
ecutive order, or by the United Nations Secu-
rity Council pursuant to an applicable United 
Nations 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 transiting to or from North Korea, 
used to facilitate any conduct prohibited by an 
applicable United Nations Security Council res-
olution;
(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 
official thereof, or have knowingly contributed 
to the bribery of an official of the Government 
of North Korea, the misappropriation, theft, or 
embezzlement 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 as-
sisted, sponsored, or provided significant finan-
cial, material, or technological support for, or 
goods or services to or in support of, the con-
duct described in subparagraphs (A) through 
(F) of this paragraph 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;
(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 jurisdic-
tion 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 foreign branch. 
(3) LIMITATION.—If the President determines 
that a person has engaged in any conduct described
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 pro-
vided in section 207, the President shall exercise the au-
thorities of the International Emergency Economic Pow-
ers 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 person, including any foreign branch. 
(d) APPLICATION.—The designation of a person 
under subsection (a) or (b) and the blocking of property 
and interests in property under subsection (c) shall also 
apply with respect to a person who is determined to be 
owned or controlled 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 pur-
suant to this section.
(e) LICENSING.— 
(1) LICENSE REQUIRED.—Not later than 180 
days after the date of enactment of this Act, the 
President shall promulgate regulations prohibiting 
United States persons from engaging in any trans-
action involving any property or services— 
(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 
sufficient financial controls to ensure that such 
transaction will not facilitate any of the conduct de-
scribed in subsection (a) or subsection (b). 
(3) LICENSING
AUTHORIZATION.—The Presi-
dent may issue regulations to authorize— 
(A) transactions for the purposes described 
in section 207; and 
(B) transactions and activities authorized 
under North Korean Human Rights Act of 
2004 (22 U.S.C. 7801 et seq.).
(c) TERMINATION OF CONTRACTS AND INITIATION 
OF SUSPENSION AND DEBARMENT PROCEEDING.— 
(1) TERMINATION OF CONTRACTS.—Except as 
provided in paragraph (2), the head of an executive 
agency shall terminate a contract with a person who 
has provided a false certification under subsection 
(b). 
(2) WAIVER.—The head of an executive agency 
may waive the requirement under paragraph (1) 
with respect to a person based upon a written find-
ing of urgent and compelling circumstances signifi-
cantly affecting the interests of the United States. If 
the head of an executive agency waives the require-
ment under paragraph (1) for a person, the head of 
the agency shall submit to the appropriate congres-
sional committees, within 30 days after the waiver is 
made, a report containing the rationale for the waiv-
er and relevant information supporting the waiver 
decision. 
(3) INITIATION OF SUSPENSION AND DEBAR-
MENT
PROCEEDING.—The head of an executive 
agency shall initiate a suspension and debarment 
proceeding against a person who has provided a 
false certification under subsection (b). Upon deter-
mination of suspension, debarment, or proposed de-
(b) WAIVER.—The President may waive, on a case- 
by-case basis, the imposition of sanctions for a period of 
not more than 1 year, and may renew that waiver for addi-
tional periods of not more than 1 year, any sanction or 
other measure under section 104, 204, 205, 206, or 303 
if the President submits to the appropriate congressional 
committees a written determination that the waiver meets 
one or more of the following requirements: 
(1) The waiver is important to the economic or 
national security interests of the United States. 
(2) The waiver will further the enforcement of 
this Act or is for an important law enforcement pur-
pose. 
(3) The waiver is for an important humani-
tarian purpose, including any of the purposes de-
scribed in section 4 of the North Korean Human 
Rights Act of 2004 (22 U.S.C. 7802). 
(c) REMOVALS OF SANCTIONS.—The President may 
prescribe rules and regulations for the removal of sanc-
tions on a person that is designated under subsection (a) 
or (b) of section 104 and the removal of designations of 
a person with respect to such sanctions if the President 
determines that the designated person has verifiably 
ceased its participation in any of the conduct described 
in subsection (a) or (b) of section 104, as the case may
SEC. 406. EFFECTIVE DATE. 
Except as otherwise provided in this Act, this Act and 
the amendments made by this Act shall take effect on the 
date of the enactment of this Act. 
Passed the House of Representatives January 12, 
2016. 
Attest: 
Clerk.