IIB 
113TH CONGRESS 
2D SESSION 
H. R. 1771 
IN THE SENATE OF THE UNITED STATES 
JULY 29, 2014 
Received; read twice and referred to the Committee on Foreign Relations 
AN ACT 
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, 
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SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘North Korea Sanctions Enforcement Act of 2014’’. 
(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. 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, AND ILLICIT ACTIVITIES 
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. Sense of Congress on enforcement of sanctions on North Korea. 
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. Regulations. 
Sec. 404. Effective date. 
SEC. 2. FINDINGS. 
Congress finds the following: 
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(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. 
(5) North Korea has unilaterally withdrawn 
from the 1953 Armistice Agreement that ended the 
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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) 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 
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North Korea’s misuse of the international financial 
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 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), or 13570 (2011), 
to the extent that such Executive order author-
izes the imposition of sanctions on persons for 
conduct, or prohibits transactions or activities, 
involving the Government of North Korea; or 
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(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-
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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)). 
(7) LUXURY GOODS.—The term ‘‘luxury goods’’ 
has the meaning given such term in subpart 746.4 
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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). 
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(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’’ means— 
(A) a natural person; 
(B) a corporation, business association, 
partnership, society, trust, financial institution, 
insurer, underwriter, guarantor, and any other 
business organization, any other nongovern-
mental entity, organization, or group, and any 
governmental entity operating as a business en-
terprise; and 
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(C) any successor to any entity described 
in subparagraph (B). 
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 the persons, including financial 
institutions, that facilitate proliferation, illicit activi-
ties, arms trafficking, imports of luxury goods, seri-
ous human rights abuses, cash smuggling, and cen-
sorship by the Government of North Korea; 
(3) to authorize the President to sanction per-
sons who fail to exercise due diligence to ensure that 
such financial institutions and jurisdictions do not 
facilitate proliferation, arms trafficking, kleptocracy, 
and imports of luxury goods by the Government of 
North Korea; 
(4) to deny the Government of North Korea ac-
cess to the funds it uses to obtain nuclear weapons, 
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ballistic missiles, and luxury goods instead of pro-
viding for the needs of its people; and 
(5) to enforce sanctions in a manner that 
avoids any adverse humanitarian impact on the peo-
ple of North Korea. 
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 
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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. PROHIBITED CONDUCT AND MANDATORY AND 
DISCRETIONARY DESIGNATION AND SANC-
TIONS AUTHORITIES. 
(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 
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arms or related materiel, whether directly or in-
directly; 
(C) have knowingly provided significant 
training, advice, or other services or assistance, 
or engaged in transactions, related to the man-
ufacture, maintenance, or use of any arms or 
related materiel to be imported, exported, or re-
exported to, into, or from North Korea, or fol-
lowing their importation, exportation, or re-
exportation 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 or broad-
cast media, or the facilitation or support of in-
tentional frequency manipulation that would 
jam or restrict an international signal; 
(F) have knowingly engaged in or been re-
sponsible for serious human rights abuses by 
the Government of North Korea, including tor-
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ture or cruel, inhuman, or degrading treatment 
or punishment, prolonged detention without 
charges and trial, causing the disappearance of 
persons by the abduction and clandestine deten-
tion 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 significant acts of money laun-
dering, the counterfeiting of goods or currency, 
bulk cash smuggling, narcotics trafficking, or 
other illicit activity that involves or supports the 
Government of North Korea or any senior offi-
cial 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.) without regard to sec-
tion 202 of such Act to block all property and 
interests in property of any person designated 
under this subsection that are in the United 
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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; 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 of 
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 unlaw-
ful act described in section 206(a) of that Act (50 
U.S.C. 1705(a)). 
(b) DISCRETIONARY DESIGNATION AND SANCTIONS 
AUTHORITY.— 
(1) CONDUCT DESCRIBED.—Except as provided 
in section 207, the President may designate under 
this subsection any person the President determines 
to— 
(A) have knowingly engaged in, contrib-
uted to, assisted, sponsored, or provided finan-
cial, material or technological support for, or 
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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 that contributes materially to a violation 
of an applicable United Nations Security Coun-
cil 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, 
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used to facilitate any conduct prohibited by an 
applicable United Nations Security Council res-
olution; 
(F) 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 financial, mate-
rial, or technological support for, or goods or 
services to or in support of, the conduct de-
scribed in subparagraphs (A) through (F) of 
this paragraph or the conduct described in sub-
paragraphs (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 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 the person 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. 
(c) BLOCKING OF ALL PROPERTY AND INTERESTS 
IN
PROPERTY
OF
THE
GOVERNMENT
OF
NORTH 
KOREA.—The President shall exercise the authorities of 
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the International Emergency Economic Powers Act (50 
U.S.C. 1705 et seq.) without regard to section 202 of such 
Act to block all property and interests in property of the 
Government of North Korea 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. 
(d) APPLICATION.—The designation of a person and 
the blocking of property and interests in property under 
subsection (a), (b), or (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 inter-
ests in property are blocked pursuant to this section. 
(e) 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 described in subsection (a) or sub-
section (b). 
SEC. 105. FORFEITURE OF PROPERTY. 
(a) AMENDMENT TO PROPERTY SUBJECT TO FOR-
FEITURE.—Section 981(a)(1) of title 18, United States 
Code, is amended by adding at the end the following new 
subparagraph: 
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‘‘(I) Any property, real or personal, that is in-
volved in a violation or attempted violation, or which 
constitutes or is derived from proceeds traceable to 
a violation, of section 104(a) of the North Korea 
Sanctions Enforcement Act of 2014.’’. 
(b) AMENDMENT
TO DEFINITION
OF CIVIL FOR-
FEITURE STATUTE.—Section 983(i)(2)(D) of title 18, 
United States Code, is amended— 
(1) by striking ‘‘or the International Emergency 
Economic Powers Act’’ and inserting ‘‘, the Inter-
national Emergency Economic Powers Act’’; and 
(2) by adding at the end before the semicolon 
the following: ‘‘, or the North Korea Sanctions En-
forcement Act of 2014’’. 
(c) AMENDMENT TO DEFINITION OF SPECIFIED UN-
LAWFUL ACTIVITY.—Section 1956(c)(7)(D) of title 18, 
United States Code, is amended— 
(1) by striking ‘‘or section 92 of the Atomic 
Energy Act of 1954’’ and inserting ‘‘section 92 of 
the Atomic Energy Act of 1954’’; and 
(2) by adding at the end the following: ‘‘, or 
section 104(a) of the North Korea Sanctions En-
forcement Act of 2014’’. 
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TITLE II—SANCTIONS AGAINST 
NORTH KOREAN PROLIFERA-
TION, 
HUMAN 
RIGHTS 
ABUSES, AND ILLICIT ACTIVI-
TIES 
SEC. 201. DETERMINATIONS WITH RESPECT TO NORTH 
KOREA AS A JURISDICTION OF PRIMARY 
MONEY LAUNDERING CONCERN. 
(a) FINDINGS.—Congress makes the following find-
ings: 
(1) The Undersecretary of the Treasury for 
Terrorism and Financial Intelligence, who is respon-
sible for safeguarding the financial system against il-
licit use, money laundering, terrorist financing, and 
the proliferation of weapons of mass destruction, has 
repeatedly expressed concern about North Korea’s 
misuse of the international financial system as fol-
lows: 
(A) In 2006, the Undersecretary stated 
that, given North Korea’s ‘‘counterfeiting of 
U.S. currency, narcotics trafficking and use of 
accounts worldwide to conduct proliferation-re-
lated transactions, the line between illicit and 
licit North Korean money is nearly invisible’’ 
and urged financial institutions worldwide to 
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‘‘think carefully about the risks of doing any 
North Korea-related business.’’. 
(B) In 2011, the Undersecretary stated 
that ‘‘North Korea remains intent on engaging 
in proliferation, selling arms as well as bringing 
in material,’’ and was ‘‘aggressively pursuing 
the effort to establish front companies.’’. 
(C) In 2013, the Undersecretary stated, in 
reference to North Korea’s distribution of high- 
quality counterfeit United States currency, that 
‘‘North Korea is continuing to try to pass a 
supernote into the international financial sys-
tem,’’ and that the Department of the Treasury 
would soon introduce new currency with im-
proved security features to protect against 
counterfeiting by the Government of North 
Korea. 
(2) The Financial Action Task Force, an inter-
governmental body whose purpose is to develop and 
promote national and international policies to com-
bat money laundering and terrorist financing, has 
repeatedly— 
(A) expressed concern at deficiencies in 
North Korea’s regimes to combat money laun-
dering and terrorist financing; 
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(B) urged North Korea to adopt a plan of 
action to address significant deficiencies in 
these regimes and the serious threat they pose 
to the integrity of the international financial 
system; 
(C) urged all jurisdictions to apply coun-
termeasures to protect the international finan-
cial system from ongoing and substantial money 
laundering and terrorist financing risks ema-
nating from North Korea; 
(D) urged all jurisdictions to advise their 
financial institutions to give special attention to 
business relationships and transactions with 
North Korea, including North Korean compa-
nies and financial institutions; and 
(E) called on all jurisdictions to protect 
against correspondent relationships being used 
to bypass or evade countermeasures and risk 
mitigation practices, and take into account 
money laundering and terrorist financing risks 
when considering requests by North Korean fi-
nancial institutions to open branches and sub-
sidiaries in their jurisdiction. 
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(3) On March 7, 2013, the United Nations Se-
curity Council unanimously adopted Resolution 
2094, which— 
(A) welcomed the Financial Action Task 
Force’s recommendation on financial sanctions 
related to proliferation, and its guidance on the 
implementation of sanctions; 
(B) decided that Member States should 
apply enhanced monitoring and other legal 
measures to prevent the provision of financial 
services or the transfer of property that could 
contribute to activities prohibited by applicable 
United Nations Security Council resolutions; 
and 
(C) called on Member States to prohibit 
North Korean banks from establishing or main-
taining correspondent relationships with banks 
in their jurisdictions, to prevent the provision of 
financial services, if they have information that 
provides reasonable grounds to believe that 
these activities could contribute to activities 
prohibited by an applicable United Nations Se-
curity Council resolution, or to the evasion of 
such prohibitions. 
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(b) SENSE OF CONGRESS REGARDING THE DESIGNA-
TION OF NORTH KOREA AS A JURISDICTION OF PRIMARY 
MONEY LAUNDERING CONCERN.—Congress— 
(1) acknowledges the efforts of the United Na-
tions Security Council to impose limitations on, and 
require enhanced monitoring of, transactions involv-
ing North Korean financial institutions that could 
contribute to sanctioned activities; 
(2) urges the President, in the strongest terms, 
to consider immediately designating North Korea as 
a jurisdiction of primary money laundering concern, 
and to adopt stringent special measures to safeguard 
the financial system against the risks posed by 
North Korea’s willful evasion of sanctions and its il-
licit activities; and 
(3) urges the President to seek the prompt im-
plementation by other states of enhanced monitoring 
and due diligence to prevent North Korea’s misuse 
of the international financial system, including by 
sharing information about activities, transactions, 
and property that could contribute to activities sanc-
tioned by applicable United Nations Security Council 
resolutions, or to the evasion of sanctions. 
(c) DETERMINATIONS REGARDING NORTH KOREA.— 
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(1) IN GENERAL.—The Secretary of the Treas-
ury shall, not later than 180 days after the date of 
the enactment of this Act, determine, in consultation 
with the Secretary of State and Attorney General, 
and in accordance with section 5318A of title 31, 
United States Code, whether reasonable grounds 
exist for concluding that North Korea is a jurisdic-
tion of primary money laundering concern. 
(2) ENHANCED DUE DILIGENCE AND REPORT-
ING REQUIREMENTS.—Except as provided in section 
207, if the Secretary of the Treasury determines 
under this subsection that reasonable grounds exist 
for finding that North Korea is a jurisdiction of pri-
mary money laundering concern, the Secretary of 
the Treasury, in consultation with the Federal func-
tional regulators, shall impose one or more of the 
special measures described in paragraphs (1) 
through (5) of section 5318A(b) of title 31, United 
States Code, with respect to the jurisdiction of 
North Korea. 
(3) REPORT REQUIRED.— 
(A) IN GENERAL.—If the Secretary of the 
Treasury determines that North Korea is a ju-
risdiction of primary money laundering concern, 
the Secretary of the Treasury shall, not later 
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than 90 days after the date on which the Sec-
retary makes such determination, submit to the 
appropriate congressional committees a report 
on the determination made under paragraph (1) 
together with the reasons for that determina-
tion. 
(B) FORM.—A report or copy of any re-
port submitted under this paragraph shall be 
submitted in unclassified form but may contain 
a classified annex. 
SEC. 202. ENSURING THE CONSISTENT ENFORCEMENT OF 
UNITED NATIONS SECURITY COUNCIL RESO-
LUTIONS AND FINANCIAL RESTRICTIONS ON 
NORTH KOREA. 
(a) FINDINGS.—Congress finds that— 
(1) all states and jurisdictions are obligated to 
implement and enforce applicable United Nations 
Security Council resolutions fully and promptly, in-
cluding by— 
(A) blocking the property of, and ensuring 
that any property is prevented from being made 
available to, persons designated by the Security 
Council under applicable United Nations Secu-
rity Council resolutions; 
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(B) blocking any property associated with 
an activity prohibited by applicable United Na-
tions Security Council resolutions; and 
(C) preventing any transfer of property 
and any provision of financial services that 
could contribute to an activity prohibited by ap-
plicable United Nations Security Council resolu-
tions, or to the evasion of sanctions under such 
resolutions; 
(2) all states and jurisdictions share a common 
interest in protecting the international financial sys-
tem from the risks of money laundering and illicit 
transactions emanating from North Korea; 
(3) the United States Dollar and the Euro are 
the world’s principal reserve currencies, and the 
United States and the European Union are pri-
marily responsible for the protection of the inter-
national financial system from these risks; 
(4) the cooperation of the People’s Republic of 
China, as North Korea’s principal trading partner, 
is essential to the enforcement of applicable United 
Nations Security Council resolutions and to the pro-
tection of the international financial system; 
(5) the report of the Panel of Experts estab-
lished pursuant to United Nations Security Council 
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Resolution 1874, dated June 11, 2013, expressed 
concern about the ability of banks in states with less 
effective regulators and those unable to afford effec-
tive compliance to detect and prevent illicit transfers 
involving North Korea; 
(6) North Korea has historically exploited in-
consistencies between jurisdictions in the interpreta-
tion and enforcement of financial regulations and 
applicable United Nations Security Council resolu-
tions to circumvent sanctions and launder the pro-
ceeds of illicit activities; 
(7) Amroggang Development Bank, Bank of 
East Land, and Tanchon Commercial Bank have 
been designated by the Secretary of the Treasury, 
the United Nations Security Council, and the Euro-
pean Union; 
(8) Korea Daesong Bank and Korea Kwangson 
Banking Corporation have been designated by the 
Secretary of the Treasury and the European Union; 
(9) the Foreign Trade Bank of North Korea 
has been designated by the Secretary of the Treas-
ury for facilitating transactions on behalf of persons 
linked to its proliferation network, and for serving as 
‘‘a key financial node’’; and 
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(10) Daedong Credit Bank has been designated 
by the Secretary of the Treasury for activities pro-
hibited by applicable United Nations Security Coun-
cil resolutions, including the use of deceptive finan-
cial practices to facilitate transactions on behalf of 
persons linked to North Korea’s proliferation net-
work. 
(b) SENSE OF CONGRESS.—It is the sense of Con-
gress that the President should intensify diplomatic ef-
forts, both in appropriate international fora such as the 
United Nations and bilaterally, to develop and implement 
a coordinated, consistent, multilateral strategy for pro-
tecting the global financial system against risks emanating 
from North Korea, including— 
(1) the cessation of any financial services whose 
continuation is inconsistent with applicable United 
Nations Security Council resolutions; 
(2) the cessation of any financial services to 
persons, including financial institutions, that present 
unacceptable risks of facilitating money laundering 
and illicit activity by the Government of North 
Korea; 
(3) the blocking by all states and jurisdictions, 
in accordance with the legal process of the state or 
jurisdiction in which the property is held, of any 
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property required to be blocked under applicable 
United Nations Security Council resolutions; and 
(4) the blocking of any property derived from il-
licit activity, or from the misappropriation, theft, or 
embezzlement of public funds by, or for the benefit 
of, officials of the Government of North Korea. 
SEC. 203. PROLIFERATION PREVENTION SANCTIONS. 
(a) EXPORT OF CERTAIN GOODS OR TECHNOLOGY.— 
(1) 
IN
GENERAL.—Subject 
to 
section 
207(a)(2)(C) of this Act, a license shall be required 
for the export to North Korea of any goods or tech-
nology subject to the Export Administration Regula-
tions (part 730 of title 15, Code of Federal Regula-
tions) without regard to whether the Secretary of 
State has designated North Korea as a country the 
government of which has provided support for acts 
of international terrorism, as determined by the Sec-
retary of State under section 6(j) of the Export Ad-
ministration Act of 1979 (50 U.S.C. App. 2045), as 
continued in effect under the International Emer-
gency Economic Powers Act. 
(2) PRESUMPTION OF DENIAL.—A license for 
the export to North Korea of any goods or tech-
nology as described in paragraph (1) shall be subject 
to a presumption of denial. 
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(b) TRANSACTIONS WITH COUNTRIES SUPPORTING 
ACTS OF INTERNATIONAL TERRORISM.—The prohibitions 
and restrictions described in section 40 of the Arms Ex-
port Control Act (22 U.S.C. 2780), and other provisions 
in that Act, shall also apply to exporting or otherwise pro-
viding (by sale, lease or loan, grant, or other means), di-
rectly or indirectly, any munitions item to the Government 
of North Korea without regard to whether or not North 
Korea is a country with respect to which subsection (d) 
of such section (relating to designation of state sponsors 
of terrorism) applies. 
(c) TRANSACTIONS
IN LETHAL MILITARY EQUIP-
MENT.— 
(1) IN GENERAL.—The President shall withhold 
assistance under the Foreign Assistance Act of 1961 
(22 U.S.C. 2151 et seq.) to any country that pro-
vides lethal military equipment to, or receives lethal 
military equipment from, the Government of North 
Korea. 
(2) APPLICABILITY.—The prohibition under 
this subsection with respect to a country shall termi-
nate on the date that is 1 year after the date on 
which such country ceases to provide lethal military 
equipment to the Government of North Korea. 
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(3) WAIVER.—The President may waive the 
prohibition under this subsection with respect to a 
country if the President determines that it is in the 
national interest of the United States to do so. 
SEC. 204. PROCUREMENT SANCTIONS. 
(a) IN GENERAL.—Except as provided in this section, 
the United States Government may not procure, or enter 
into any contract for the procurement of, any goods or 
services from any designated person. 
(b) FAR.—The Federal Acquisition Regulation 
issued pursuant to section 1303 of title 41, United States 
Code, shall be revised to require a certification from each 
person that is a prospective contractor that such person 
does not engage in any of the conduct described in section 
104(a). Such revision shall apply with respect to contracts 
in an amount greater than the simplified acquisition 
threshold (as defined in section 134 of title 41, United 
States Code) for which solicitations are issued on or after 
the date that is 90 days after the date of the enactment 
of this Act. 
(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 
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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-
barment, the agency shall ensure that such person 
is entered into the Government-wide database con-
taining the list of all excluded parties ineligible for 
Federal programs pursuant to Executive Order No. 
12549 (31 U.S.C. 6101 note; relating to debarment 
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and suspension) and Executive Order No. 12689 (31 
U.S.C. 6101 note; relating to debarment and sus-
pension). 
(d) CLARIFICATION REGARDING CERTAIN PROD-
UCTS.—The remedies specified in subsections (a) through 
(c) shall not apply with respect to the procurement of eligi-
ble products, as defined in section 308(4) of the Trade 
Agreements Act of 1979 (19 U.S.C. 2518(4)), of any for-
eign country or instrumentality designated under section 
301(b) of such Act (19 U.S.C. 2511(b)). 
(e) RULE OF CONSTRUCTION.—Nothing in this sub-
section may be construed to limit the use of other remedies 
available to the head of an executive agency or any other 
official of the Federal Government on the basis of a deter-
mination of a false certification under subsection (b). 
(f) EXECUTIVE AGENCY DEFINED.—In this section, 
the term ‘‘executive agency’’ has the meaning given such 
term in section 133 of title 41, United States Code. 
SEC. 205. ENHANCED INSPECTIONS AUTHORITIES. 
(a) REPORT REQUIRED.—Not later than 180 days 
after the date of the enactment of this Act, and every 180 
days thereafter, the President, acting through the Sec-
retary of Homeland Security, shall submit to the appro-
priate congressional committees, the Committee on Home-
land Security of the House of Representatives, and the 
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Committee on Homeland Security and Governmental Af-
fairs of the Senate, a report identifying foreign sea ports 
and airports whose inspections of ships, aircraft, and con-
veyances originating in North Korea, carrying North Ko-
rean property, or operated by the Government of North 
Korea are deficient to effectively prevent the facilitation 
of any of the activities described in section 104(a). 
(b) ENHANCED SECURITY TARGETING REQUIRE-
MENTS.—Not later than 180 days after the identification 
of any sea port or airport pursuant to subsection (a), the 
Secretary of Homeland Security shall, utilizing the Auto-
mated Targeting System operated by the National Tar-
geting Center in U.S. Customs and Border Protection, re-
quire enhanced screening procedures to determine if phys-
ical inspections are warranted of any cargo bound for or 
landed in the United States that has been transported 
through such sea port or airport if there are reasonable 
grounds to believe that such cargo contains goods prohib-
ited under this Act. 
(c) SEIZURE AND FORFEITURE.—A vessel, aircraft, 
or conveyance used to facilitate any of the activities de-
scribed in section 104(a) that comes within the jurisdic-
tion of the United States may be seized and forfeited 
under chapter 46 of title 18, United States Code, or under 
the Tariff Act of 1930. 
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SEC. 206. TRAVEL SANCTIONS. 
(a) ALIENS INELIGIBLE FOR VISAS, ADMISSION, OR 
PAROLE.— 
(1) VISAS, ADMISSION, OR PAROLE.—An alien 
(or an alien who is a corporate officer of a person 
(as defined in subparagraph (B) or (C) of section 
3(11)) who the Secretary of State or the Secretary 
of Homeland Security (or a designee of one of such 
Secretaries) knows, or has reasonable grounds to be-
lieve, is described in subsection (a)(1) or (b)(1) of 
section 104 is— 
(A) inadmissible to the United States; 
(B) ineligible to receive a visa or other doc-
umentation to enter the United States; and 
(C) otherwise ineligible to be admitted or 
paroled into the United States or to receive any 
other benefit under the Immigration and Na-
tionality Act (8 U.S.C. 1101 et seq.). 
(2) CURRENT VISAS REVOKED.— 
(A) IN
GENERAL.—The issuing consular 
officer, the Secretary of State, or the Secretary 
of Homeland Security (or a designee of one of 
such Secretaries) shall revoke any visa or other 
entry documentation issued to an alien who is 
described in subsection (a)(1) or (b)(1) of sec-
tion 104 regardless of when issued. 
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(B) EFFECT OF REVOCATION.—A revoca-
tion under subparagraph (A)— 
(i) shall take effect immediately; and 
(ii) shall automatically cancel any 
other valid visa or entry documentation 
that is in the alien’s possession. 
(b) EXCEPTION TO COMPLY WITH UNITED NATIONS 
HEADQUARTERS
AGREEMENT.—Sanctions under sub-
section (a)(1)(B) shall not apply to an alien if admitting 
the alien into the United States is necessary to permit the 
United States to comply with the Agreement regarding the 
Headquarters of the United Nations, signed at Lake Suc-
cess June 26, 1947, and entered into force November 21, 
1947, between the United Nations and the United States, 
or other applicable international obligations. 
SEC. 207. EXEMPTIONS, WAIVERS, AND REMOVALS OF DES-
IGNATION. 
(a) EXEMPTIONS.— 
(1) MANDATORY EXEMPTIONS.—The following 
activities shall be exempt from sanctions under sec-
tion 104: 
(A) Activities subject to the reporting re-
quirements of title V of the National Security 
Act of 1947 (50 U.S.C. 413 et seq.), or to any 
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authorized intelligence activities of the United 
States. 
(B) Any transaction necessary to comply 
with United States obligations under the Agree-
ment between the United Nations and the 
United States of America regarding the Head-
quarters of the United Nations, signed June 
26, 1947, and entered into force on November 
21, 1947, or under the Vienna Convention on 
Consular Relations, signed April 24, 1963, and 
entered into force on March 19, 1967, or under 
other international agreements. 
(2) DISCRETIONARY
EXEMPTIONS.—The fol-
lowing activities may be exempt from sanctions 
under section 104 as determined by the President: 
(A) Any financial transaction the exclusive 
purpose for which is to provide humanitarian 
assistance to the people of North Korea. 
(B) Any financial transaction the exclusive 
purpose for which is to import food products 
into North Korea, if such food items are not de-
fined as luxury goods. 
(C) Any transaction the exclusive purpose 
for which is to import agricultural products, 
medicine, or medical devices into North Korea, 
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provided that such supplies or equipment are 
classified as designated ‘‘EAR 99’’ under the 
Export Administration Regulations (part 730 of 
title 15, Code of Federal Regulations) and not 
controlled under— 
(i) the Export Administration Act of 
1979 (50 U.S.C. App. 2401 et seq.), as 
continued in effect under the International 
Emergency Economic Powers Act (50 
U.S.C. 1701 et seq.); 
(ii) the Arms Export Control Act (22 
U.S.C. 2751 et seq.); 
(iii) part B of title VIII of the Nu-
clear Proliferation Prevention Act of 1994 
(22 U.S.C. 6301 et seq.); or 
(iv) the Chemical and Biological 
Weapons Control and Warfare Elimination 
Act of 1991 (22 U.S.C. 5601 et seq.). 
(b) WAIVER.—The President may waive, on a case- 
by-case basis, the imposition of sanctions for a period of 
not more than one year, and may renew that waiver for 
additional periods of not more than one year, any sanction 
or other measure under section 104, 204, 205, 206, or 
303 if the President submits to the appropriate congres-
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sional 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 
be, and has given assurances that it will abide by the re-
quirements of this Act. 
(d) FINANCIAL SERVICES
FOR CERTAIN ACTIVI-
TIES.—The President may promulgate regulations, rules, 
and policies as may be necessary to facilitate the provision 
of financial services by a foreign financial institution that 
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is not controlled by the Government of North Korea in 
support of the activities subject to exemption under this 
section. 
SEC. 208. SENSE OF CONGRESS ON ENFORCEMENT OF 
SANCTIONS ON NORTH KOREA. 
(a) FINDINGS.—Congress finds the following: 
(1) On March 6, 2014, pursuant to United Na-
tions Security Council Resolution 1874, a Panel of 
Experts issued a report assessing the enforcement of 
existing sanctions on North Korea. The Panel re-
ported that North Korea continues to ‘‘trade in 
arms and related materiel in violation of the resolu-
tions’’ and that ‘‘there is no question that it is one 
of the country’s most profitable revenue sources’’. 
(2) The Panel of Experts found that North 
Korea ‘‘presents a stiff challenge to Member States’’ 
through ‘‘multiple and tiered circumvention tech-
niques’’ and ‘‘is experienced in actions it takes to 
evade sanctions’’. 
(b) SENSE OF CONGRESS.—It is the sense of Con-
gress that the United States should work to increase the 
capacity of responsible nations to implement United Na-
tions Security Council Resolutions 1695, 1718, 1874, 
2087, and 2094, including to strengthen the capacity of 
responsible nations to monitor and interdict shipments to 
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