H. R. 757—12 
31, United States Code, with respect to the jurisdiction of 
North Korea. 
(3) REPORT REQUIRED.— 
(A) IN GENERAL.—Not later than 90 days after the 
date on which the Secretary of the Treasury makes a 
determination under paragraph (1), the Secretary shall 
submit to the appropriate congressional committees a 
report that contains the reasons for such determination. 
(B) FORM.—The report submitted under subparagraph 
(A) shall be submitted in unclassified form, but may include 
a classified annex. 
SEC. 202. ENSURING THE CONSISTENT ENFORCEMENT OF UNITED 
NATIONS SECURITY COUNCIL RESOLUTIONS AND FINAN-
CIAL RESTRICTIONS ON NORTH KOREA. 
(a) FINDINGS.—Congress makes the following findings: 
(1) All member states of the United Nations are obligated 
to implement and enforce applicable United Nations Security 
Council resolutions fully and promptly, including by blocking 
the property of, and ensuring that any property is prevented 
from being made available to, persons designated for the 
blocking of property by the Security Council under applicable 
United Nations Security Council resolutions. 
(2) As of May 2015, 158 of the 193 member states of 
the United Nations had not submitted reports on measures 
taken to implement North Korea-specific United Nations Secu-
rity Council resolutions 1718, 1874, and 2094. 
(3) A recent report by the Government Accountability Office 
(GAO–15–485)— 
(A) finds that officials of the United States and rep-
resentatives of the United Nations Panel of Experts estab-
lished pursuant to United Nations Security Council Resolu-
tion 
1874 
(2009), 
which 
monitors 
and 
facilitates 
implementation of United Nations sanctions on North 
Korea, ‘‘agree that the lack of detailed reports from all 
member states is an impediment to the UN’s effective 
implementation of its sanctions’’; and 
(B) notes that ‘‘many member states lack the technical 
capacity to enforce sanctions and prepare reports’’ on the 
implementation of United Nations sanctions on North 
Korea. 
(4) All member states share a common interest in protecting 
the international financial system from the risks of money 
laundering and illicit transactions emanating from North 
Korea. 
(5) The United States dollar and the euro are the world’s 
principal reserve currencies, and the United States and the 
European Union are primarily responsible for the protection 
of the international financial system from the risks described 
in paragraph (4). 
(6) The cooperation of the People’s Republic of China, as 
North Korea’s principal trading partner, is essential to— 
(A) the enforcement of applicable United Nations Secu-
rity Council resolutions; and 
(B) the protection of the international financial system. 
(7) The report of the Panel of Experts expressed concern 
about the ability of banks to detect and prevent illicit transfers
H. R. 757—13 
involving North Korea if such banks are located in member 
states with less effective regulators or member states that 
are unable to afford effective compliance. 
(8) North Korea has historically exploited inconsistencies 
between jurisdictions in the interpretation and enforcement 
of financial regulations and applicable United Nations Security 
Council resolutions to circumvent sanctions and launder the 
proceeds of illicit activities. 
(9) 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 European Union as having materially contributed to 
the proliferation of weapons of mass destruction. 
(10) Korea Daesong Bank and Korea Kwangson Banking 
Corporation have been designated by the Secretary of the 
Treasury and the European Union as having materially contrib-
uted to the proliferation of weapons of mass destruction. 
(11) The Foreign Trade Bank of North Korea has been 
designated by the Secretary of the Treasury for facilitating 
transactions on behalf of persons linked to its proliferation 
network and for serving as ‘‘a key financial node’’. 
(12) Daedong Credit Bank has been designated by the 
Secretary of the Treasury for activities prohibited by applicable 
United Nations Security Council resolutions, including the use 
of deceptive financial practices to facilitate transactions on 
behalf of persons linked to North Korea’s proliferation network. 
(b) SENSE
OF CONGRESS.—It is the sense of Congress that 
the President should intensify diplomatic efforts in appropriate 
international fora, such as the United Nations, and bilaterally, 
to develop and implement a coordinated, consistent, multilateral 
strategy for protecting the global financial system against risks 
emanating from North Korea, including— 
(1) the cessation of any financial services the continuation 
of which 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 member states, in accordance with 
the legal process of the state in which the property is held, 
of any property required to be blocked under applicable United 
Nations Security Council resolutions; 
(4) the blocking of any property derived from illicit activity, 
or from the misappropriation, theft, or embezzlement of public 
funds by, or for the benefit of, officials of the Government 
of North Korea; 
(5) the blocking of any property involved in significant 
activities undermining cybersecurity by the Government of 
North Korea, directly or indirectly, against United States per-
sons, or the theft of intellectual property by the Government 
of North Korea, directly or indirectly from United States per-
sons; and 
(6) the blocking of any property of persons directly or 
indirectly involved in censorship or human rights abuses by 
the Government of North Korea.
H. R. 757—14 
(c) STRATEGY TO IMPROVE INTERNATIONAL IMPLEMENTATION AND 
ENFORCEMENT OF UNITED NATIONS NORTH KOREA-SPECIFIC SANC-
TIONS.—The President shall direct the Secretary of State, in 
coordination with other Federal departments and agencies, as 
appropriate, to develop a strategy to improve international 
implementation and enforcement of United Nations North Korea- 
specific sanctions. The strategy should include elements— 
(1) to increase the number of countries submitting reports 
to the United Nations Panel of Experts established pursuant 
to United Nations Security Council Resolution 1874 (2009), 
including developing a list of targeted countries where effective 
implementation and enforcement of United Nations sanctions 
would reduce the threat from North Korea; 
(2) to encourage member states of the United Nations 
to cooperate and share information with the panel in order 
to help facilitate investigations; 
(3) to expand cooperation with the Panel of Experts; 
(4) to provide technical assistance to member states to 
implement United Nations sanctions, including developing the 
capacity to enforce sanctions through improved export control 
regulations, border security, and customs systems; 
(5) to harness existing United States Government initia-
tives and assistance programs, as appropriate, to improve sanc-
tions implementation and enforcement; and 
(6) to increase outreach to the people of North Korea, 
and to support the engagement of independent, non-govern-
mental journalistic, humanitarian, and other institutions in 
North Korea. 
(d) REPORT REQUIRED.—Not later than 90 days after the date 
of the enactment of this Act, and annually thereafter, the Secretary 
of State shall submit to the appropriate congressional committees 
a report that describes the actions undertaken to implement the 
strategy required by subsection (c). 
SEC. 203. PROLIFERATION PREVENTION SANCTIONS. 
(a) EXPORT OF CERTAIN GOODS OR TECHNOLOGY.—A validated 
license shall be required for the export to North Korea of any 
goods or technology otherwise covered under section 6(j) of the 
Export Administration Act of 1979 (50 U.S.C. 4605(j)). No defense 
exports may be approved for the Government of North Korea. 
(b) TRANSACTIONS IN LETHAL MILITARY EQUIPMENT.— 
(1) IN GENERAL.—The President shall withhold assistance 
under the Foreign Assistance Act of 1961 (22 U.S.C. 2151 
et seq.) to the government of any country that provides lethal 
military equipment to the Government of North Korea. 
(2) APPLICABILITY.—The prohibition under paragraph (1) 
with respect to a government shall terminate on the date that 
is 1 year after the date on which the prohibition under para-
graph (1) is applied to that government. 
(c) WAIVER.—Notwithstanding any other provision of law, the 
Secretary of State may waive the prohibitions under this section 
with respect to a country if the Secretary— 
(1) determines that such waiver is in the national interest 
of the United States; and 
(2) submits a written report to the appropriate congres-
sional committees that describes—
H. R. 757—15 
(A) the steps that the relevant agencies are taking 
to curtail the trade described in subsection (b)(1); and 
(B) why such waiver is in the national interest of 
the United States. 
(d) EXCEPTION.—The prohibitions under this section shall not 
apply to the provision of assistance for human rights, democracy, 
rule of law, or emergency humanitarian purposes. 
SEC. 204. PROCUREMENT SANCTIONS. 
(a) IN GENERAL.—Except as provided in this section, the head 
of an executive agency may not procure, or enter into any contract 
for the procurement of, any goods or services from any person 
designated under section 104(a). 
(b) FEDERAL ACQUISITION REGULATION.— 
(1) IN
GENERAL.—The Federal Acquisition Regulation 
issued pursuant to section 1303(a)(1) of title 41, United States 
Code, shall be revised to require that each person that is 
a prospective contractor submit a certification that such person 
does not engage in any activity described in section 104(a). 
(2) APPLICABILITY.—The revision required under paragraph 
(1) shall apply with respect to contracts for which solicitations 
are issued on or after the date that is 90 days after the 
date of the enactment of this Act. 
(c) REMEDIES.— 
(1) INCLUSION
ON
LIST.—The Administrator of General 
Services shall include, on the List of Parties Excluded from 
Federal Procurement and Nonprocurement Programs main-
tained by the Administrator under part 9 of the Federal Acquisi-
tion Regulation, each person that is debarred, suspended, or 
proposed for debarment or suspension by the head of an execu-
tive agency on the basis of a determination of a false certifi-
cation under subsection (b). 
(2) CONTRACT TERMINATION; SUSPENSION.—If the head of 
an executive agency determines that a person has submitted 
a false certification under subsection (b) after the date on 
which the Federal Acquisition Regulation is revised to imple-
ment the requirements of this section, the head of such execu-
tive agency shall— 
(A) terminate any contract with such person; and 
(B) debar or suspend such person from eligibility for 
Federal contracts for a period of not longer than 2 years. 
(3) APPLICABLE PROCEDURES.—Any debarment or suspen-
sion under paragraph (2)(B) shall be subject to the procedures 
that apply to debarment and suspension under subpart 9.4 
of the Federal Acquisition Regulation. 
(d) CLARIFICATION REGARDING CERTAIN PRODUCTS.—The rem-
edies specified in subsection (c) shall not apply with respect to 
the procurement of any eligible product (as defined in section 308(4) 
of the Trade Agreements Act of 1979 (19 U.S.C. 2518(4)) of any 
foreign country or instrumentality designated under section 301(b) 
of such Act (19 U.S.C. 2511(b)). 
(e) RULE OF CONSTRUCTION.—Nothing in this subsection 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 determination of a false certification 
under subsection (b).