H. R. 3364—50 
(1) EVALUATION OF EXISTING EFFORTS.—An assessment of 
the effectiveness of and ways in which the United States is 
currently addressing the highest levels of risk of various forms 
of illicit finance, including those identified in the documents 
entitled ‘‘2015 National Money Laundering Risk Assessment’’ 
and ‘‘2015 National Terrorist Financing Risk Assessment’’, pub-
lished by the Department of the Treasury and a description 
of how the strategy is integrated into, and supports, the broader 
counter terrorism strategy of the United States. 
(2) GOALS, OBJECTIVES, AND PRIORITIES.—A comprehensive, 
research-based, long-range, quantifiable discussion of goals, 
objectives, and priorities for disrupting and preventing illicit 
finance activities within and transiting the financial system 
of the United States that outlines priorities to reduce the 
incidence, dollar value, and effects of illicit finance. 
(3) THREATS.—An identification of the most significant 
illicit finance threats to the financial system of the United 
States. 
(4) REVIEWS AND PROPOSED CHANGES.—Reviews of enforce-
ment efforts, relevant regulations and relevant provisions of 
law and, if appropriate, discussions of proposed changes deter-
mined to be appropriate to ensure that the United States pur-
sues coordinated and effective efforts at all levels of govern-
ment, and with international partners of the United States, 
in the fight against illicit finance. 
(5) DETECTION AND PROSECUTION INITIATIVES.—A descrip-
tion of efforts to improve, as necessary, detection and prosecu-
tion of illicit finance, including efforts to ensure that— 
(A) subject to legal restrictions, all appropriate data 
collected by the Federal Government that is relevant to 
the efforts described in this section be available in a timely 
fashion to— 
(i) all appropriate Federal departments and agen-
cies; and 
(ii) as appropriate and consistent with section 314 
of the International Money Laundering Abatement and 
Financial Anti-Terrorism Act of 2001 (31 U.S.C. 5311 
note), to financial institutions to assist the financial 
institutions in efforts to comply with laws aimed at 
curbing illicit finance; and 
(B) appropriate efforts are undertaken to ensure that 
Federal departments and agencies charged with reducing 
and preventing illicit finance make thorough use of publicly 
available data in furtherance of this effort. 
(6) THE ROLE OF THE PRIVATE FINANCIAL SECTOR IN PREVEN-
TION OF ILLICIT FINANCE.—A discussion of ways to enhance 
partnerships between the private financial sector and Federal 
departments and agencies with regard to the prevention and 
detection of illicit finance, including— 
(A) efforts to facilitate compliance with laws aimed 
at stopping such illicit finance while maintaining the 
effectiveness of such efforts; and 
(B) providing guidance to strengthen internal controls 
and to adopt on an industry-wide basis more effective poli-
cies.
H. R. 3364—51 
(7) ENHANCEMENT
OF
INTERGOVERNMENTAL
COOPERA-
TION.—A discussion of ways to combat illicit finance by 
enhancing— 
(A) cooperative efforts between and among Federal, 
State, and local officials, including State regulators, State 
and local prosecutors, and other law enforcement officials; 
and 
(B) cooperative efforts with and between governments 
of countries and with and between multinational institu-
tions with expertise in fighting illicit finance, including 
the Financial Action Task Force and the Egmont Group 
of Financial Intelligence Units. 
(8) TREND
ANALYSIS
OF
EMERGING
ILLICIT
FINANCE 
THREATS.—A discussion of and data regarding trends in illicit 
finance, including evolving forms of value transfer such as 
so-called cryptocurrencies, other methods that are computer, 
telecommunications, or Internet-based, cyber crime, or any 
other threats that the Secretary may choose to identify. 
(9) BUDGET
PRIORITIES.—A multiyear budget plan that 
identifies sufficient resources needed to successfully execute 
the full range of missions called for in this section. 
(10) TECHNOLOGY ENHANCEMENTS.—An analysis of current 
and developing ways to leverage technology to improve the 
effectiveness of efforts to stop the financing of terrorism and 
other forms of illicit finance, including better integration of 
open-source data. 
PART 2—ENHANCING ANTITERRORISM TOOLS 
OF THE DEPARTMENT OF THE TREASURY 
SEC. 271. IMPROVING ANTITERROR FINANCE MONITORING OF FUNDS 
TRANSFERS. 
(a) STUDY.— 
(1) IN GENERAL.—To improve the ability of the Department 
of the Treasury to better track cross-border fund transfers 
and identify potential financing of terrorist or other forms 
of illicit finance, the Secretary shall carry out a study to 
assess— 
(A) the potential efficacy of requiring banking regu-
lators to establish a pilot program to provide technical 
assistance to depository institutions and credit unions that 
wish to provide account services to money services 
businesses serving individuals in Somalia; 
(B) whether such a pilot program could be a model 
for improving the ability of United States persons to make 
legitimate funds transfers through transparent and easily 
monitored channels while preserving strict compliance with 
the Bank Secrecy Act (Public Law 91–508; 84 Stat. 1114) 
and related controls aimed at stopping money laundering 
and the financing of terrorism; and 
(C) 
consistent 
with 
current 
legal 
requirements 
regarding confidential supervisory information, the poten-
tial impact of allowing money services businesses to share 
certain State examination information with depository 
institutions and credit unions, or whether another appro-
priate mechanism could be identified to allow a similar 
exchange of information to give the depository institutions
H. R. 3364—52 
and credit unions a better understanding of whether an 
individual money services business is adequately meeting 
its anti-money laundering and counter-terror financing 
obligations to combat money laundering, the financing of 
terror, or related illicit finance. 
(2) PUBLIC INPUT.—The Secretary should solicit and con-
sider public input as appropriate in developing the study 
required under subsection (a). 
(b) REPORT.—Not later than 270 days after the date of the 
enactment of this Act, the Secretary shall submit to the Committee 
on Banking, Housing, and Urban Affairs and the Committee on 
Foreign Relations of the Senate and the Committee on Financial 
Services and the Committee on Foreign Affairs of the House of 
Representatives a report that contains all findings and determina-
tions made in carrying out the study required under subsection 
(a). 
SEC. 272. SENSE OF CONGRESS ON INTERNATIONAL COOPERATION 
REGARDING TERRORIST FINANCING INTELLIGENCE. 
It is the sense of Congress that the Secretary, acting through 
the Under Secretary for Terrorism and Financial Crimes, should 
intensify work with foreign partners to help the foreign partners 
develop intelligence analytic capacities, in a financial intelligence 
unit, finance ministry, or other appropriate agency, that are— 
(1) commensurate to the threats faced by the foreign 
partner; and 
(2) designed to better integrate intelligence efforts with 
the anti-money laundering and counter-terrorist financing 
regimes of the foreign partner. 
SEC. 273. EXAMINING THE COUNTER-TERROR FINANCING ROLE OF 
THE DEPARTMENT OF THE TREASURY IN EMBASSIES. 
Not later than 180 days after the date of the enactment of 
this Act, the Secretary shall submit to the Committee on Banking, 
Housing, and Urban Affairs and the Committee on Foreign Rela-
tions of the Senate and the Committee on Financial Services and 
the Committee on Foreign Affairs of the House of Representatives 
a report that contains— 
(1) a list of the United States embassies in which a full- 
time Department of the Treasury financial attache´ is stationed 
and a description of how the interests of the Department of 
the Treasury relating to terrorist financing and money laun-
dering are addressed (via regional attache´s or otherwise) at 
United States embassies where no such attache´s are present; 
(2) a list of the United States embassies at which the 
Department of the Treasury has assigned a technical assistance 
advisor from the Office of Technical Assistance of the Depart-
ment of the Treasury; 
(3) an overview of how Department of the Treasury finan-
cial attache´s and technical assistance advisors assist in efforts 
to counter illicit finance, to include money laundering, terrorist 
financing, and proliferation financing; and 
(4) an overview of patterns, trends, or other issues identi-
fied by the Department of the Treasury and whether resources 
are sufficient to address these issues.
H. R. 3364—53 
SEC. 274. INCLUSION OF SECRETARY OF THE TREASURY ON THE 
NATIONAL SECURITY COUNCIL. 
(a) IN GENERAL.—Section 101(c)(1) of the National Security 
Act of 1947 (50 U.S.C. 3021(c)(1)) is amended by inserting ‘‘the 
Secretary of the Treasury,’’ before ‘‘and such other officers’’. 
(b) RULE OF CONSTRUCTION.—The amendment made by sub-
section (a) may not be construed to authorize the National Security 
Council to have a professional staff level that exceeds the limitation 
set forth under section 101(e)(3) of the National Security Act of 
1947 (50 U.S.C. 3021(e)(3)). 
SEC. 275. INCLUSION OF ALL FUNDS. 
(a) IN GENERAL.—Section 5326 of title 31, United States Code, 
is amended— 
(1) in the heading of such section, by striking ‘‘coin and 
currency’’; 
(2) in subsection (a)— 
(A) by striking ‘‘subtitle and’’ and inserting ‘‘subtitle 
or to’’; and 
(B) in paragraph (1)(A), by striking ‘‘United States 
coins or currency (or such other monetary instruments 
as the Secretary may describe in such order)’’ and inserting 
‘‘funds (as the Secretary may describe in such order),’’; 
and 
(3) in subsection (b)— 
(A) in paragraph (1)(A), by striking ‘‘coins or currency 
(or monetary instruments)’’ and inserting ‘‘funds’’; and 
(B) in paragraph (2), by striking ‘‘coins or currency 
(or such other monetary instruments as the Secretary may 
describe in the regulation or order)’’ and inserting ‘‘funds 
(as the Secretary may describe in the regulation or order)’’. 
(b) CLERICAL AMENDMENT.—The table of contents for chapter 
53 of title 31, United States Code, is amended in the item relating 
to section 5326 by striking ‘‘coin and currency’’. 
PART 3—DEFINITIONS 
SEC. 281. DEFINITIONS. 
In this subtitle— 
(1) the term ‘‘appropriate congressional committees’’ 
means— 
(A) the Committee on Banking, Housing, and Urban 
Affairs, the Committee on Foreign Relations, Committee 
on Armed Services, Committee on the Judiciary, Committee 
on Homeland Security and Governmental Affairs, and the 
Select Committee on Intelligence of the Senate; and 
(B) the Committee on Financial Services, the Com-
mittee on Foreign Affairs, the Committee on Armed Serv-
ices, the Committee on the Judiciary, Committee on Home-
land Security, and the Permanent Select Committee on 
Intelligence of the House of Representatives; 
(2) the term ‘‘appropriate Federal banking agencies’’ has 
the meaning given the term in section 3 of the Federal Deposit 
Insurance Act (12 U.S.C. 1813); 
(3) the term ‘‘Bank Secrecy Act’’ means— 
(A) section 21 of the Federal Deposit Insurance Act 
(12 U.S.C. 1829b);
H. R. 3364—54 
(B) chapter 2 of title I of Public Law 91–508 (12 U.S.C. 
1951 et seq.); and 
(C) subchapter II of chapter 53 of title 31, United 
States Code; 
(4) the term ‘‘Federal functional regulator’’ has the meaning 
given that term in section 509 of the Gramm-Leach-Bliley Act 
(15 U.S.C. 6809); 
(5) the term ‘‘illicit finance’’ means the financing of ter-
rorism, narcotics trafficking, or proliferation, money laundering, 
or other forms of illicit financing domestically or internationally, 
as defined by the President; 
(6) the term ‘‘money services business’’ has the meaning 
given the term under section 1010.100 of title 31, Code of 
Federal Regulations; 
(7) the term ‘‘Secretary’’ means the Secretary of the 
Treasury; and 
(8) the term ‘‘State’’ means each of the several States, 
the District of Columbia, and each territory or possession of 
the United States. 
Subtitle D—Rule of Construction 
SEC. 291. RULE OF CONSTRUCTION. 
Nothing in this title or the amendments made by this title 
(other than sections 216 and 236(b)) shall be construed to limit 
the authority of the President under the International Emergency 
Economic Powers Act (50 U.S.C. 1701 et seq.). 
SEC. 292. SENSE OF CONGRESS ON THE STRATEGIC IMPORTANCE OF 
ARTICLE 5 OF THE NORTH ATLANTIC TREATY. 
(a) FINDINGS.—Congress makes the following findings: 
(1) The principle of collective defense of the North Atlantic 
Treaty Organization (NATO) is immortalized in Article 5 of 
the North Atlantic Treaty in which members pledge that ‘‘an 
armed attack against one or more of them in Europe or North 
America shall be considered an attack against them all’’. 
(2) For almost 7 decades, the principle of collective defense 
has effectively served as a strategic deterrent for the member 
nations of the North Atlantic Treaty Organization and provided 
stability throughout the world, strengthening the security of 
the United States and all 28 other member nations. 
(3) Following the September 11, 2001, terrorist attacks 
in New York, Washington, and Pennsylvania, the Alliance 
agreed to invoke Article 5 for the first time, affirming its 
commitment to collective defense. 
(4) Countries that are members of the North Atlantic 
Treaty Organization have made historic contributions and sac-
rifices while combating terrorism in Afghanistan through the 
International Security Assistance Force and the Resolute Sup-
port Mission. 
(5) The recent attacks in the United Kingdom underscore 
the importance of an international alliance to combat hostile 
nation states and terrorist groups. 
(6) At the 2014 NATO summit in Wales, the member 
countries of the North Atlantic Treaty Organization decided 
that all countries that are members of NATO would spend
H. R. 3364—55 
an amount equal to 2 percent of their gross domestic product 
on defense by 2024. 
(7) Collective defense unites the 29 members of the North 
Atlantic Treaty Organization, each committing to protecting 
and supporting one another from external adversaries, which 
bolsters the North Atlantic Alliance. 
(b) SENSE OF CONGRESS.—It is the sense of Congress— 
(1) to express the vital importance of Article 5 of the 
North Atlantic Treaty, the charter of the North Atlantic Treaty 
Organization, as it continues to serve as a critical deterrent 
to potential hostile nations and terrorist organizations; 
(2) to remember the first and only invocation of Article 
5 by the North Atlantic Treaty Organization in support of 
the United States after the terrorist attacks of September 11, 
2001; 
(3) to affirm that the United States remains fully committed 
to the North Atlantic Treaty Organization and will honor its 
obligations enshrined in Article 5; and 
(4) to condemn any threat to the sovereignty, territorial 
integrity, freedom, or democracy of any country that is a 
member of the North Atlantic Treaty Organization. 
TITLE III—SANCTIONS WITH RESPECT 
TO NORTH KOREA 
SEC. 301. SHORT TITLE. 
This title may be cited as the ‘‘Korean Interdiction and Mod-
ernization of Sanctions Act’’. 
SEC. 302. DEFINITIONS. 
(a) AMENDMENTS TO DEFINITIONS IN THE NORTH KOREA SANC-
TIONS AND POLICY ENHANCEMENT ACT OF 2016.— 
(1) APPLICABLE EXECUTIVE ORDER.—Section 3(1)(A) of the 
North Korea Sanctions and Policy Enhancement Act of 2016 
(22 U.S.C. 9202(1)(A)) is amended— 
(A) by striking ‘‘or Executive Order 13694’’ and 
inserting ‘‘Executive Order No. 13694’’; and 
(B) by inserting ‘‘or Executive Order No. 13722 (50 
U.S.C. 1701 note; relating to blocking the property of the 
Government of North Korea and the Workers’ Party of 
Korea, and Prohibiting Certain Transactions With Respect 
to North Korea),’’ before ‘‘to the extent’’. 
(2) APPLICABLE UNITED NATIONS SECURITY COUNCIL RESOLU-
TION.—Section 3(2)(A) of the North Korea Sanctions and Policy 
Enhancement Act of 2016 (22 U.S.C. 9202(2)(A)) is amended 
by striking ‘‘or 2094 (2013)’’ and inserting ‘‘2094 (2013), 2270 
(2016), or 2321 (2016)’’. 
(3) FOREIGN PERSON.—Section 3 of the North Korea Sanc-
tions and Policy Enhancement Act of 2016 (22 U.S.C. 9202) 
is amended— 
(A) by redesignating paragraphs (5) through (14) as 
paragraphs (6) through (15), respectively; and 
(B) by inserting after paragraph (4) the following new 
paragraph: 
‘‘(5) FOREIGN PERSON.—The term ‘foreign person’ means—
H. R. 3364—56 
‘‘(A) an individual who is not a United States citizen 
or an alien lawfully admitted for permanent residence to 
the United States; or 
‘‘(B) an entity that is not a United States person.’’. 
(4) LUXURY GOODS.—Paragraph (9) of section 3 of the North 
Korea Sanctions and Policy Enhancement Act of 2016 (22 U.S.C. 
9202), as redesignated by paragraph (3) of this subsection, 
is amended— 
(A) in subparagraph (A), by striking ‘‘and’’ at the end; 
(B) in subparagraph (B), by striking the period at 
the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following new subpara-
graph: 
‘‘(C) also includes any items so designated under an 
applicable United Nations Security Council resolution.’’. 
(5) NORTH KOREAN PERSON.—Section 3 of the North Korea 
Sanctions and Policy Enhancement Act of 2016 (22 U.S.C. 
9202), as amended by paragraph (3) of this subsection, is fur-
ther amended— 
(A) by redesignating paragraphs (13) through (15) as 
paragraphs (14) through (16), respectively; and 
(B) by inserting after paragraph (12) the following 
new paragraph: 
‘‘(13) NORTH KOREAN PERSON.—The term ‘North Korean 
person’ means— 
‘‘(A) a North Korean citizen or national; or 
‘‘(B) an entity owned or controlled by the Government 
of North Korea or by a North Korean citizen or national.’’. 
(b) DEFINITIONS FOR PURPOSES OF THIS ACT.—In this title: 
(1) APPLICABLE UNITED NATIONS SECURITY COUNCIL RESOLU-
TION; LUXURY GOODS.—The terms ‘‘applicable United Nations 
Security Council resolution’’ and ‘‘luxury goods’’ have the 
meanings given those terms, respectively, in section 3 of the 
North Korea Sanctions and Policy Enhancement Act of 2016 
(22 U.S.C. 9202), as amended by subsection (a). 
(2) APPROPRIATE
CONGRESSIONAL
COMMITTEES; GOVERN-
MENT OF NORTH KOREA; UNITED STATES PERSON.—The terms 
‘‘appropriate congressional committees’’, ‘‘Government of North 
Korea’’, and ‘‘United States person’’ have the meanings given 
those terms, respectively, in section 3 of the North Korea Sanc-
tions and Policy Enhancement Act of 2016 (22 U.S.C. 9202). 
(3) FOREIGN PERSON; NORTH KOREAN PERSON.—The terms 
‘‘foreign person’’ and ‘‘North Korean person’’ have the meanings 
given those terms, respectively, in paragraph (5) and paragraph 
(13) of section 3 of the North Korea Sanctions and Policy 
Enhancement Act of 2016 (22 U.S.C. 9202(5) and 9202(13)), 
as added by subsection (a). 
(4) PROHIBITED WEAPONS PROGRAM.—The term ‘‘prohibited 
weapons program’’ means— 
(A) any program related to the development of nuclear, 
chemical, or biological weapons, and their means of 
delivery, including ballistic missiles; and 
(B) any program to develop related materials with 
respect to a program described in subparagraph (A).
H. R. 3364—57 
Subtitle A—Sanctions to Enforce and Im-
plement United Nations Security Council 
Sanctions Against North Korea 
SEC. 311. MODIFICATION AND EXPANSION OF REQUIREMENTS FOR 
THE DESIGNATION OF PERSONS. 
(a) EXPANSION OF MANDATORY DESIGNATIONS.—Section 104(a) 
of the North Korea Sanctions and Policy Enhancement Act of 2016 
(22 U.S.C. 9214(a)) is amended— 
(1) in paragraph (9), by striking ‘‘; or’’ and inserting ‘‘or 
any defense article or defense service (as such terms are defined 
in section 47 of the Arms Export Control Act (22 U.S.C. 2794));’’; 
(2) by redesignating paragraph (10) as paragraph (15); 
(3) by inserting after paragraph (9) the following new para-
graphs: 
‘‘(10) knowingly, directly or indirectly, purchases or other-
wise acquires from North Korea any significant amounts of 
gold, titanium ore, vanadium ore, copper, silver, nickel, zinc, 
or rare earth minerals; 
‘‘(11) knowingly, directly or indirectly, sells or transfers 
to North Korea any significant amounts of rocket, aviation, 
or jet fuel (except for use by a civilian passenger aircraft outside 
North Korea, exclusively for consumption during its flight to 
North Korea or its return flight); 
‘‘(12) knowingly, directly or indirectly, provides significant 
amounts of fuel or supplies, provides bunkering services, or 
facilitates a significant transaction or transactions to operate 
or maintain, a vessel or aircraft that is designated under an 
applicable Executive order or an applicable United Nations 
Security Council resolution, or that is owned or controlled by 
a person designated under an applicable Executive order or 
applicable United Nations Security Council resolution; 
‘‘(13) knowingly, directly or indirectly, insures, registers, 
facilitates the registration of, or maintains insurance or a reg-
istration for, a vessel owned or controlled by the Government 
of North Korea, except as specifically approved by the United 
Nations Security Council; 
‘‘(14) knowingly, directly or indirectly, maintains a cor-
respondent account (as defined in section 201A(d)(1)) with any 
North Korean financial institution, except as specifically 
approved by the United Nations Security Council; or’’; and 
(4) in paragraph (15), as so redesignated, by striking ‘‘(9)’’ 
and inserting ‘‘(14)’’. 
(b) EXPANSION OF ADDITIONAL DISCRETIONARY DESIGNATIONS.— 
(1) IN
GENERAL.—Section 104(b)(1) of the North Korea 
Sanctions and Policy Enhancement Act of 2016 (22 U.S.C. 
9214(b)(1)) is amended— 
(A) in subparagraph (A), by striking ‘‘pursuant to an 
applicable United Nations Security Council resolution;’’ and 
inserting the following: ‘‘pursuant to— 
‘‘(i) an applicable United Nations Security Council 
resolution; 
‘‘(ii) any regulation promulgated under section 404; 
or 
‘‘(iii) any applicable Executive order;’’;
H. R. 3364—58 
(B) in subparagraph (B)(iii), by striking ‘‘or’’ at the 
end; 
(C) in subparagraph (C), by striking the period at 
the end and inserting a semicolon; and 
(D) by adding at the end the following new subpara-
graphs: 
‘‘(D) knowingly, directly or indirectly, purchased or 
otherwise acquired from the Government of North Korea 
significant quantities of coal, iron, or iron ore, in excess 
of the limitations provided in applicable United Nations 
Security Council resolutions; 
‘‘(E) knowingly, directly or indirectly, purchased or 
otherwise acquired significant types or amounts of textiles 
from the Government of North Korea; 
‘‘(F) knowingly facilitated a significant transfer of funds 
or property of the Government of North Korea that materi-
ally contributes to any violation of an applicable United 
National Security Council resolution; 
‘‘(G) knowingly, directly or indirectly, facilitated a 
significant transfer to or from the Government of North 
Korea of bulk cash, precious metals, gemstones, or other 
stores of value not described under subsection (a)(10); 
‘‘(H) knowingly, directly or indirectly, sold, transferred, 
or otherwise provided significant amounts of crude oil, 
condensates, refined petroleum, other types of petroleum 
or petroleum byproducts, liquified natural gas, or other 
natural gas resources to the Government of North Korea 
(except for heavy fuel oil, gasoline, or diesel fuel for 
humanitarian use or as excepted under subsection (a)(11)); 
‘‘(I) knowingly, directly or indirectly, engaged in, facili-
tated, or was responsible for the online commercial activi-
ties of the Government of North Korea, including online 
gambling; 
‘‘(J) knowingly, directly or indirectly, purchased or 
otherwise acquired fishing rights from the Government 
of North Korea; 
‘‘(K) knowingly, directly or indirectly, purchased or 
otherwise acquired significant types or amounts of food 
or agricultural products from the Government of North 
Korea; 
‘‘(L) knowingly, directly or indirectly, engaged in, facili-
tated, or was responsible for the exportation of workers 
from North Korea in a manner intended to generate signifi-
cant revenue, directly or indirectly, for use by the Govern-
ment of North Korea or by the Workers’ Party of Korea; 
‘‘(M) knowingly conducted a significant transaction or 
transactions in North Korea’s transportation, mining, 
energy, or financial services industries; or 
‘‘(N) except as specifically approved by the United 
Nations Security Council, and other than through a cor-
respondent account as described in subsection (a)(14), 
knowingly facilitated the operation of any branch, sub-
sidiary, or office of a North Korean financial institution.’’. 
(2) EFFECTIVE DATE.—The amendments made by paragraph 
(1) take effect on the date of the enactment of this Act and 
apply with respect to conduct described in subparagraphs (D) 
through (N) of section 104(b)(1) of the North Korea Sanctions
H. R. 3364—59 
and Policy Enhancement Act of 2016, as added by paragraph 
(1), engaged in on or after such date of enactment. 
(c) MANDATORY AND DISCRETIONARY ASSET BLOCKING.—Section 
104(c) of the North Korea Sanctions and Policy Enhancement Act 
of 2016 (22 U.S.C. 9214(c)) is amended— 
(1) by striking ‘‘of a designated person’’ and inserting ‘‘of 
a person designated under subsection (a)’’; 
(2) by striking ‘‘The President’’ and inserting the following: 
‘‘(1) MANDATORY ASSET BLOCKING.—The President’’; and 
(3) by adding at the end the following new paragraph: 
‘‘(2) DISCRETIONARY ASSET BLOCKING.—The President may 
also exercise such powers, in the same manner and to the 
same extent described in paragraph (1), with respect to a person 
designated under subsection (b).’’. 
(d) DESIGNATION OF ADDITIONAL PERSONS.— 
(1) IN GENERAL.—Not later than 180 days after the date 
of the enactment of this Act, the President shall submit to 
the appropriate congressional committees a report including 
a determination as to whether reasonable grounds exist, and 
an explanation of the reasons for any determination that such 
grounds do not exist, to designate, pursuant to section 104 
of the North Korea Sanctions and Policy Enhancement Act 
of 2016 (22 U.S.C. 9214), as amended by this section, each 
of the following: 
(A) The Korea Shipowners’ Protection and Indemnity 
Association, a North Korean insurance company, with 
respect to facilitating imports, exports, and reexports of 
arms and related materiel to and from North Korea, or 
for other activities prohibited by such section 104. 
(B) Chinpo Shipping Company (Private) Limited, a 
Singapore corporation, with respect to facilitating imports, 
exports, and reexports of arms and related materiel to 
and from North Korea. 
(C) The Central Bank of the Democratic People’s 
Republic of Korea, with respect to the sale of gold to, 
the receipt of gold from, or the import or export of gold 
by the Government of North Korea. 
(D) Kumgang Economic Development Corporation 
(KKG), with respect to being an entity controlled by Bureau 
39 of the Workers’ Party of the Government of North Korea. 
(E) Sam Pa, also known as Xu Jinghua, Xu Songhua, 
Sa Muxu, Samo, Sampa, or Sam King, and any entities 
owned or controlled by such individual, with respect to 
transactions with KKG. 
(F) The Chamber of Commerce of the Democratic Peo-
ple’s Republic of Korea, with respect to the exportation 
of workers in violation of section 104(a)(5) or of section 
104(b)(1)(M) of such Act, as amended by subsection (b) 
of this section. 
(2) FORM.—The report submitted under paragraph (1) may 
contain a classified annex. 
SEC. 312. PROHIBITION ON INDIRECT CORRESPONDENT ACCOUNTS. 
(a) IN GENERAL.—Title II of the North Korea Sanctions and 
Policy Enhancement Act of 2016 (22 U.S.C. 9221 et seq.) is amended 
by inserting after section 201 the following new section:
H. R. 3364—60 
‘‘SEC. 201A. PROHIBITION ON INDIRECT CORRESPONDENT ACCOUNTS. 
‘‘(a) IN GENERAL.—Except as provided in subsection (b), if a 
United States financial institution has or obtains knowledge that 
a correspondent account established, maintained, administered, or 
managed by that institution for a foreign financial institution is 
being used by the foreign financial institution to provide significant 
financial services indirectly to any person, foreign government, or 
financial institution designated under section 104, the United States 
financial institution shall ensure that such correspondent account 
is no longer used to provide such services. 
‘‘(b) EXCEPTION.—A United States financial institution is 
authorized to process transfers of funds to or from North Korea, 
or for the direct or indirect benefit of any person, foreign govern-
ment, or financial institution that is designated under section 104, 
only if the transfer— 
‘‘(1) arises from, and is ordinarily incident and necessary 
to give effect to, an underlying transaction that has been 
authorized by a specific or general license issued by the Sec-
retary of the Treasury; and 
‘‘(2) does not involve debiting or crediting a North Korean 
account. 
‘‘(c) DEFINITIONS.—In this section: 
‘‘(1) CORRESPONDENT ACCOUNT.—The term ‘correspondent 
account’ has the meaning given that term in section 5318A 
of title 31, United States Code. 
‘‘(2) UNITED
STATES
FINANCIAL
INSTITUTION.—The term 
‘United States financial institution’ means has the meaning 
given that term in section 510.310 of title 31, Code of Federal 
Regulations, as in effect on the date of the enactment of this 
section. 
‘‘(3) FOREIGN FINANCIAL INSTITUTION.—The term ‘foreign 
financial institution’ has the meaning given that term in section 
1010.605 of title 31, Code of Federal Regulations, as in effect 
on the date of the enactment of this section.’’. 
(b) CLERICAL AMENDMENT.—The table of contents in section 
1(b) of the North Korea Sanctions and Policy Enhancement Act 
of 2016 is amended by inserting after the item relating to section 
201 the following new item: 
‘‘Sec. 201A. Prohibition on indirect correspondent accounts.’’. 
SEC. 313. LIMITATIONS ON FOREIGN ASSISTANCE TO NONCOMPLIANT 
GOVERNMENTS. 
Section 203 of the North Korea Sanctions and Policy Enhance-
ment Act of 2016 (22 U.S.C. 9223) is amended— 
(1) in subsection (b)— 
(A) in the heading, by striking ‘‘TRANSACTIONS
IN 
LETHAL
MILITARY
EQUIPMENT’’ and inserting ‘‘TRANS-
ACTIONS IN DEFENSE ARTICLES OR DEFENSE SERVICES’’; 
(B) in paragraph (1), by striking ‘‘that provides lethal 
military equipment to the Government of North Korea’’ 
and inserting ‘‘that provides to or receives from the Govern-
ment of North Korea a defense article or defense service, 
as such terms are defined in section 47 of the Arms Export 
Control Act (22 U.S.C. 2794), if the President determines 
that a significant type or amount of such article or service 
has been so provided or received’’; and
H. R. 3364—61 
(C) in paragraph (2), by striking ‘‘1 year’’ and inserting 
‘‘2 years’’; 
(2) in subsection (d), by striking ‘‘or emergency’’ and 
inserting ‘‘maternal and child health, disease prevention and 
response, or’’; and 
(3) by adding at the end the following new subsection: 
‘‘(e) REPORT ON ARMS TRAFFICKING INVOLVING NORTH KOREA.— 
‘‘(1) IN GENERAL.—Not later than 180 days after the date 
of the enactment of this subsection, and annually thereafter 
for 5 years, the Secretary of State shall submit to the appro-
priate congressional committees a report that specifically 
describes the compliance of foreign countries and other foreign 
jurisdictions with the requirement to curtail the trade described 
in subsection (b)(1). 
‘‘(2) FORM.—The report required under paragraph (1) shall 
be submitted in unclassified form but may contain a classified 
annex.’’. 
SEC. 314. AMENDMENTS TO ENHANCE INSPECTION AUTHORITIES. 
Title II of the North Korea Sanctions and Policy Enhancement 
Act of 2016 (22 U.S.C. 9221 et seq.), as amended by section 102 
of this Act, is further amended by striking section 205 and inserting 
the following: 
‘‘SEC. 205. ENHANCED INSPECTION AUTHORITIES. 
‘‘(a) REPORT REQUIRED.— 
‘‘(1) IN GENERAL.—Not later than 180 days after the date 
of the enactment of this section, and annually thereafter for 
5 years, the President shall submit to the appropriate congres-
sional committees a report— 
‘‘(A) identifying the operators of foreign sea ports and 
airports that knowingly— 
‘‘(i) significantly fail to implement or enforce regu-
lations to inspect ships, aircraft, cargo, or conveyances 
in transit to or from North Korea, as required by 
applicable United Nations Security Council resolutions; 
‘‘(ii) facilitate the transfer, transshipment, or 
conveyance of significant types or quantities of cargo, 
vessels, or aircraft owned or controlled by persons des-
ignated under applicable United Nations Security 
Council resolutions; or 
‘‘(iii) facilitate any of the activities described in 
section 104(a); 
‘‘(B) describing the extent to which the requirements 
of applicable United Nations Security Council resolutions 
to de-register any vessel owned, controlled, or operated 
by or on behalf of the Government of North Korea have 
been implemented by other foreign countries; 
‘‘(C) describing the compliance of the Islamic Republic 
of Iran with the sanctions mandated in applicable United 
Nations Security Council resolutions; 
‘‘(D) identifying vessels, aircraft, and conveyances 
owned or controlled by the Reconnaissance General Bureau 
of the Workers’ Party of Korea; and 
‘‘(E) describing the diplomatic and enforcement efforts 
by the President to secure the full implementation of the 
applicable United Nations Security Council resolutions, as 
described in subparagraphs (A) through (C).
H. R. 3364—62 
‘‘(2) FORM.—The report required under paragraph (1) shall 
be submitted in unclassified form but may contain a classified 
annex. 
‘‘(b) SPECIFIC FINDINGS.—Each report required under subsection 
(a) shall include specific findings with respect to the following 
ports and airports: 
‘‘(1) The ports of Dandong, Dalian, and any other port 
in the People’s Republic of China that the President deems 
appropriate. 
‘‘(2) The ports of Abadan, Bandar-e-Abbas, Chabahar, 
Bandar-e-Khomeini, Bushehr Port, Asaluyeh Port, Kish, Kharg 
Island, Bandar-e-Lenge, and Khorramshahr, and Tehran Imam 
Khomeini International Airport, in the Islamic Republic of Iran. 
‘‘(3) The ports of Nakhodka, Vanino, and Vladivostok, in 
the Russian Federation. 
‘‘(4) The ports of Latakia, Banias, and Tartous, and 
Damascus International Airport, in the Syrian Arab Republic. 
‘‘(c) ENHANCED SECURITY TARGETING REQUIREMENTS.— 
‘‘(1) IN GENERAL.—Except as provided in paragraph (2), 
the Secretary of Homeland Security may, using a layered 
approach, require enhanced screening procedures to determine 
whether physical inspections are warranted of any cargo bound 
for or landed in the United States that— 
‘‘(A) has been transported through a sea port or airport 
the operator of which has been identified by the President 
in accordance with subsection (a)(1) as having repeatedly 
failed to comply with applicable United Nations Security 
Council resolutions; 
‘‘(B) is aboard a vessel or aircraft, or within a convey-
ance that has, within the last 365 days, entered the terri-
tory or waters of North Korea, or landed in any of the 
sea ports or airports of North Korea; or 
‘‘(C) is registered by a country or jurisdiction whose 
compliance has been identified by the President as deficient 
pursuant to subsection (a)(2). 
‘‘(2) EXCEPTION FOR FOOD, MEDICINE, AND HUMANITARIAN 
SHIPMENTS.—Paragraph (1) shall not apply to any vessel, air-
craft, or conveyance that has entered the territory or waters 
of North Korea, or landed in any of the sea ports or airports 
of North Korea, exclusively for the purposes described in section 
208(b)(3)(B), or to import food, medicine, or supplies into North 
Korea to meet the humanitarian needs of the North Korean 
people. 
‘‘(d) SEIZURE AND FORFEITURE.—A vessel, aircraft, or convey-
ance used to facilitate any of the activities described in section 
104(a) under the jurisdiction of the United States may be seized 
and forfeited, or subject to forfeiture, under— 
‘‘(1) chapter 46 of title 18, United States Code; or 
‘‘(2) part V of title IV of the Tariff Act of 1930 (19 U.S.C. 
1581 et seq.).’’. 
SEC. 315. ENFORCING COMPLIANCE WITH UNITED NATIONS SHIPPING 
SANCTIONS AGAINST NORTH KOREA. 
(a) IN GENERAL.—The Ports and Waterways Safety Act (33 
U.S.C. 1221 et seq.) is amended by adding at the end the following 
new section:
H. R. 3364—63 
‘‘SEC. 16. PROHIBITION ON ENTRY AND OPERATION. 
‘‘(a) PROHIBITION.— 
‘‘(1) IN GENERAL.—Except as otherwise provided in this 
section, no vessel described in subsection (b) may enter or 
operate in the navigable waters of the United States or transfer 
cargo in any port or place under the jurisdiction of the United 
States. 
‘‘(2) LIMITATIONS ON APPLICATION.— 
‘‘(A) IN GENERAL.—The prohibition under paragraph 
(1) shall not apply with respect to— 
‘‘(i) a vessel described in subsection (b)(1), if the 
Secretary of State determines that— 
‘‘(I) the vessel is owned or operated by or on 
behalf of a country the government of which the 
Secretary of State determines is closely cooperating 
with the United States with respect to imple-
menting the applicable United Nations Security 
Council resolutions (as such term is defined in 
section 3 of the North Korea Sanctions and Policy 
Enhancement Act of 2016); or 
‘‘(II) it is in the national security interest not 
to apply the prohibition to such vessel; or 
‘‘(ii) a vessel described in subsection (b)(2), if the 
Secretary of State determines that the vessel is no 
longer registered as described in that subsection. 
‘‘(B) NOTICE.—Not later than 15 days after making 
a determination under subparagraph (A), the Secretary 
of State shall submit to the Committee on Foreign Affairs 
and the Committee on Transportation and Infrastructure 
of the House of Representatives and the Committee on 
Foreign Relations and the Committee on Commerce, 
Science, and Transportation of the Senate written notice 
of the determination and the basis upon which the deter-
mination was made. 
‘‘(C) PUBLICATION.—The Secretary of State shall pub-
lish a notice in the Federal Register of each determination 
made under subparagraph (A). 
‘‘(b) VESSELS DESCRIBED.—A vessel referred to in subsection 
(a) is a foreign vessel for which a notice of arrival is required 
to be filed under section 4(a)(5), and that— 
‘‘(1) is on the most recent list of vessels published in Federal 
Register under subsection (c)(2); or 
‘‘(2) more than 180 days after the publication of such list, 
is knowingly registered, pursuant to the 1958 Convention on 
the High Seas entered into force on September 30, 1962, by 
a government the agents or instrumentalities of which are 
maintaining a registration of a vessel that is included on such 
list. 
‘‘(c) INFORMATION
AND PUBLICATION.—The Secretary of the 
department in which the Coast Guard is operating, with the concur-
rence of the Secretary of State, shall— 
‘‘(1) maintain timely information on the registrations of 
all foreign vessels over 300 gross tons that are known to be— 
‘‘(A) owned or operated by or on behalf of the Govern-
ment of North Korea or a North Korean person; 
‘‘(B) owned or operated by or on behalf of any country 
in which a sea port is located, the operator of which the