I 
115TH CONGRESS 
1ST SESSION H. R. 3898 
To require the Secretary of the Treasury to place conditions on certain 
accounts at United States financial institutions with respect to North 
Korea, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 2, 2017 
Mr. BARR (for himself, Mr. HOLLINGSWORTH, Ms. MOORE, Mr. PERL-
MUTTER, Mr. HILL, and Mr. VARGAS) introduced the following bill; which 
was referred to the Committee on Financial Services 
A BILL 
To require the Secretary of the Treasury to place conditions 
on certain accounts at United States financial institu-
tions with respect to North Korea, and for other pur-
poses. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Impeding North Ko-
rea’s Access to Finance Act of 2017’’. 
SEC. 2. FINDINGS. 
The Congress finds the following: 
VerDate Sep 11 2014 
00:41 Oct 04, 2017
Jkt 079200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H3898.IH
H3898
SSpencer on DSKBBV9HB2PROD with BILLS
(1) On June 1, 2016, the Department of the 
Treasury’s Financial Crimes Enforcement Network 
announced a Notice of Finding that the Democratic 
Republic of North Korea is a jurisdiction of primary 
money laundering concern due to its use of state- 
controlled financial institutions and front companies 
to support the proliferation and development of 
weapons of mass destruction (WMD) and ballistic 
missiles. 
(2) The Financial Action Task Force (FATF) 
has expressed serious concerns with the threat posed 
by North Korea’s proliferation and financing of 
WMD, and has called on FATF members to apply 
effective counter-measures to protect their financial 
sectors from North Korean money laundering, WMD 
proliferation financing, and the financing of ter-
rorism. 
(3) In its February 2017 report, the U.N. 
Panel of Experts concluded that— 
(A) North Korea continued to access the 
international financial system in support of il-
licit activities despite sanctions imposed by 
U.N. Security Council Resolutions 2270 (2016) 
and 2321 (2016); 
VerDate Sep 11 2014 
00:41 Oct 04, 2017
Jkt 079200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H3898.IH
H3898
SSpencer on DSKBBV9HB2PROD with BILLS
(B) during the reporting period, no mem-
ber state had reported taking actions to freeze 
North Korean assets; and 
(C) sanctions evasion by North Korea, 
combined with inadequate compliance by mem-
ber states, had significantly negated the impact 
of U.N. Security Council resolutions. 
(4) In its September 2017 report, the U.N. 
Panel of Experts found that— 
(A) North Korea continued to violate fi-
nancial sanctions by using agents acting abroad 
on the country’s behalf; 
(B) foreign financial institutions provided 
correspondent banking services to North Ko-
rean persons and front companies for illicit pur-
poses; 
(C) foreign companies violated sanctions by 
maintaining links with North Korean financial 
institutions; and 
(D) North Korea generated at least $270 
million during the reporting period through the 
violation of sectoral sanctions. 
(5) North Korean entities engage in significant 
financial transactions through foreign bank accounts 
that are maintained by non-North Korean nationals, 
VerDate Sep 11 2014 
00:41 Oct 04, 2017
Jkt 079200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H3898.IH
H3898
SSpencer on DSKBBV9HB2PROD with BILLS
thereby masking account users’ identity in order to 
access financial services. 
(6) North Korea’s sixth nuclear test on Sep-
tember 3, 2017, demonstrated an estimated explo-
sive power more than 100 times greater than that 
generated by its first nuclear test in 2006. 
(7) North Korea has successfully tested sub-
marine-launched and intercontinental ballistic mis-
siles, and is rapidly progressing in its development 
of a nuclear-armed missile that is capable of reach-
ing United States territory. 
SEC. 3. CONDITIONS WITH RESPECT TO CERTAIN AC-
COUNTS AND TRANSACTIONS AT UNITED 
STATES FINANCIAL INSTITUTIONS. 
(a) CORRESPONDENT AND PAYABLE-THROUGH AC-
COUNTS HELD BY FOREIGN FINANCIAL INSTITUTIONS.— 
(1) IN GENERAL.—Not later than 45 days after 
the date of the enactment of this Act, the Secretary 
of the Treasury shall prescribe regulations to pro-
hibit, or impose strict conditions on, the opening or 
maintaining in the United States of a correspondent 
account or a payable-through account by a foreign 
financial institution that the Secretary finds know-
ingly facilitates a significant transaction or trans-
VerDate Sep 11 2014 
00:41 Oct 04, 2017
Jkt 079200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H3898.IH
H3898
SSpencer on DSKBBV9HB2PROD with BILLS
actions or provides significant financial services for 
a covered person. 
(2) PENALTIES.— 
(A) CIVIL PENALTY.—A person who vio-
lates, attempts to violate, conspires to violate, 
or causes a violation of regulations prescribed 
under this subsection shall be subject to a civil 
penalty in an amount not to exceed the greater 
of— 
(i) $250,000; or 
(ii) an amount that is twice the 
amount of the transaction that is the basis 
of the violation with respect to which the 
penalty is imposed. 
(B) CRIMINAL PENALTY.—A person who 
willfully commits, willfully attempts to commit, 
or willfully conspires to commit, or aids or 
abets in the commission of, a violation of regu-
lations prescribed under this subsection shall, 
upon conviction, be fined not more than 
$1,000,000, or if a natural person, may be im-
prisoned for not more than 20 years, or both. 
(b) RESTRICTIONS ON CERTAIN TRANSACTIONS BY 
UNITED STATES FINANCIAL INSTITUTIONS.— 
VerDate Sep 11 2014 
00:41 Oct 04, 2017
Jkt 079200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H3898.IH
H3898
SSpencer on DSKBBV9HB2PROD with BILLS
(1) IN GENERAL.—Not later than 45 days after 
the date of the enactment of this Act, the Secretary 
of the Treasury shall prescribe regulations to pro-
hibit a United States financial institution, and any 
person owned or controlled by a United States finan-
cial institution, from knowingly engaging in a sig-
nificant transaction or transactions with or benefit-
ting any person that the Secretary finds to be a cov-
ered person. 
(2) CIVIL PENALTY.—A person who violates, at-
tempts to violate, conspires to violate, or causes a 
violation of regulations prescribed under this sub-
section shall be subject to a civil penalty in an 
amount not to exceed the greater of— 
(A) $250,000; or 
(B) an amount that is twice the amount of 
the transaction that is the basis of the violation 
with respect to which the penalty is imposed. 
SEC. 4. OPPOSITION TO ASSISTANCE BY THE INTER-
NATIONAL FINANCIAL INSTITUTIONS AND 
THE EXPORT-IMPORT BANK. 
(a) INTERNATIONAL FINANCIAL INSTITUTIONS.— 
The Bretton Woods Agreements Act (22 U.S.C. 286 et 
seq.) is amended by adding at the end the following: 
VerDate Sep 11 2014 
00:41 Oct 04, 2017
Jkt 079200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H3898.IH
H3898
SSpencer on DSKBBV9HB2PROD with BILLS
‘‘SEC. 73. OPPOSITION TO ASSISTANCE FOR ANY GOVERN-
MENT THAT FAILS TO IMPLEMENT SANC-
TIONS ON NORTH KOREA. 
‘‘(a) IN GENERAL.—The Secretary of the Treasury 
shall instruct the United States Executive Director at the 
international financial institutions (as defined under sec-
tion 1701(c) of the International Financial Institutions 
Act) to use the voice and vote of the United States to 
oppose the provision of financial assistance to a foreign 
government, other than assistance to support basic human 
needs, if the President determines that, in the year pre-
ceding consideration of approval of such assistance, the 
government has knowingly failed to prevent the provision 
of financial services to, or freeze the funds, financial as-
sets, and economic resources of, a person described under 
subparagraphs (A) through (E) of section 7(2) of the Im-
peding North Korea’s Access to Finance Act of 2017. 
‘‘(b) WAIVER.—The President may waive subsection 
(a) for up to 180 days at a time with respect to a foreign 
government if the President reports to Congress that— 
‘‘(1) the foreign government’s failure described 
under (a) is due exclusively to a lack of foreign gov-
ernment capacity; 
‘‘(2) the foreign government is taking effective 
steps to prevent recurrence of such failure; or 
VerDate Sep 11 2014 
00:41 Oct 04, 2017
Jkt 079200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H3898.IH
H3898
SSpencer on DSKBBV9HB2PROD with BILLS
‘‘(3) such waiver is vital to the national security 
interests of the United States.’’. 
(b) EXPORT-IMPORT BANK.—Section 2(b) of the Ex-
port-Import Bank Act of 1945 (12 U.S.C. 635(b)) is 
amended by adding at the end the following: 
‘‘(14) PROHIBITION
ON
SUPPORT
INVOLVING 
PERSONS
CONNECTED
WITH
NORTH
KOREA.—The 
Bank may not guarantee, insure, or extend credit, or 
participate in the extension of credit in connection 
with the export of a good or service to a covered per-
son (as defined under section 7 of the Impeding 
North Korea’s Access to Finance Act of 2017).’’. 
SEC. 5. TREASURY REPORTS ON COMPLIANCE, PENALTIES, 
AND TECHNICAL ASSISTANCE. 
(a) QUARTERLY REPORT.— 
(1) IN GENERAL.—Not later than 120 days fol-
lowing the date of the enactment of this Act, and 
every 90 days thereafter, the Secretary of the Treas-
ury shall submit a report to the Committee on Fi-
nancial Services of the House of Representatives and 
the Committee on Banking, Housing, and Urban Af-
fairs of the Senate that includes— 
(A) a list of financial institutions that, in 
the period since the preceding report, knowingly 
facilitated a significant transaction or trans-
VerDate Sep 11 2014 
00:41 Oct 04, 2017
Jkt 079200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H3898.IH
H3898
SSpencer on DSKBBV9HB2PROD with BILLS
actions or provided significant financial services 
for a covered person, or failed to apply appro-
priate due diligence to prevent such activities; 
(B) a list of any penalties imposed under 
section 3 in the period since the preceding re-
port; and 
(C) a description of efforts by the Depart-
ment of the Treasury in the period since the 
preceding report, through consultations, tech-
nical assistance, or other appropriate activities, 
to strengthen the capacity of financial institu-
tions and foreign governments to prevent the 
provision of financial services benefitting a per-
son described under subparagraphs (A) through 
(L) of section 7(2). 
(2) FORM OF REPORT; PUBLIC AVAILABILITY.— 
(A) FORM.—The report required under 
paragraph (1) shall be submitted in unclassified 
form but may contain a classified annex. 
(B) PUBLIC AVAILABILITY.—The unclassi-
fied portion of such report shall be made avail-
able to the public and posted on the website of 
the Department of the Treasury. 
(b) TESTIMONY REQUIRED.—Upon request of the 
Committee on Financial Services of the House of Rep-
VerDate Sep 11 2014 
00:41 Oct 04, 2017
Jkt 079200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H3898.IH
H3898
SSpencer on DSKBBV9HB2PROD with BILLS
resentatives or the Committee on Banking, Housing, and 
Urban Affairs of the Senate, the Under Secretary of the 
Treasury for Terrorism and Financial Intelligence shall 
testify to explain the effects of this Act, and the amend-
ments made by this Act, on North Korea’s access to finan-
cial services. 
(c) INTERNATIONAL MONETARY FUND.—Title XVI 
of the International Financial Institutions Act (22 U.S.C. 
262p et seq.) is amended by adding at the end the fol-
lowing: 
‘‘SEC. 1629. SUPPORT FOR CAPACITY OF THE INTER-
NATIONAL MONETARY FUND TO PREVENT 
MONEY LAUNDERING AND FINANCING OF 
TERRORISM. 
‘‘The Secretary of the Treasury shall instruct the 
United States Executive Director at the International 
Monetary Fund to support the use of the administrative 
budget of the Fund for technical assistance that strength-
ens the capacity of Fund members to prevent money laun-
dering and the financing of terrorism.’’. 
(d) NATIONAL ADVISORY COUNCIL REPORT TO CON-
GRESS.—The Chairman of the National Advisory Council 
on International Monetary and Financial Policies shall in-
clude in the report required by section 1701 of the Inter-
national Financial Institutions Act (22 U.S.C. 262r) for 
VerDate Sep 11 2014 
00:41 Oct 04, 2017
Jkt 079200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H3898.IH
H3898
SSpencer on DSKBBV9HB2PROD with BILLS
the fiscal year following the date of the enactment of this 
Act a description of— 
(1) the activities of the International Monetary 
Fund in the most recently completed fiscal year to 
provide technical assistance that strengthens the ca-
pacity of Fund members to prevent money laun-
dering and the financing of terrorism, and the effec-
tiveness of the assistance; and 
(2) the efficacy of efforts by the United States 
to support such technical assistance through the use 
of the Fund’s administrative budget. 
SEC. 6. SUSPENSION AND TERMINATION OF PROHIBITIONS 
AND PENALTIES. 
(a) SUSPENSION.—The President may suspend, on a 
case-by-case basis, the application of any provision of this 
Act, or provision in an amendment made by this Act, for 
a period of not more than 180 days at a time if the Presi-
dent certifies to Congress that— 
(1) the Government of North Korea has— 
(A) committed to the verifiable suspension 
of North Korea’s proliferation and testing of 
WMD, including systems designed in whole or 
in part for the delivery of such weapons; and 
(B) has agreed to multilateral talks includ-
ing the Government of the United States, with 
VerDate Sep 11 2014 
00:41 Oct 04, 2017
Jkt 079200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H3898.IH
H3898
SSpencer on DSKBBV9HB2PROD with BILLS
the goal of permanently and verifiably limiting 
North Korea’s WMD and ballistic missile pro-
grams; or 
(2) such suspension is vital to the national se-
curity interests of the United States, with an expla-
nation of the reasons therefor. 
(b) TERMINATION.— 
(1) IN GENERAL.—On the date that is 30 days 
after the date on which the President makes the cer-
tification described under paragraph (2)— 
(A) section 3, subsections (a) and (b) of 
section 5, and section 6(a) of this Act shall 
cease to have any force or effect; 
(B) section 73 of the Bretton Woods 
Agreements Act, as added by section 4(a), shall 
be repealed; and 
(C) section 2(b)(14) of the Export-Import 
Bank Act of 1945, as added by section 4(b), 
shall be repealed. 
(2) 
CERTIFICATION.—The 
certification 
de-
scribed under this paragraph is a certification by the 
President to the Congress that— 
(A) the Government of North Korea— 
VerDate Sep 11 2014 
00:41 Oct 04, 2017
Jkt 079200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H3898.IH
H3898
SSpencer on DSKBBV9HB2PROD with BILLS
(i) has ceased to pose a significant 
threat to national security, with an expla-
nation of the reasons therefor; or 
(ii) is committed to, and is taking ef-
fective steps to achieving, the goal of per-
manently and verifiably limiting North Ko-
rea’s WMD and ballistic missile programs; 
or 
(B) such termination is vital to the na-
tional security interests of the United States, 
with an explanation of the reasons therefor. 
SEC. 7. DEFINITIONS. 
For purposes of this Act: 
(1) TERMS RELATED TO NORTH KOREA.—The 
terms ‘‘applicable Executive order’’, ‘‘Government of 
North Korea’’, ‘‘North Korea’’, and ‘‘North Korean 
person’’ have the meanings given those terms, re-
spectively, in section 3 of the North Korea Sanctions 
and Policy Enhancement Act of 2016 (22 U.S.C. 
9202). 
(2) COVERED
PERSON.—The term ‘‘covered 
person’’ means the following: 
(A) Any designated person under an appli-
cable Executive order. 
VerDate Sep 11 2014 
00:41 Oct 04, 2017
Jkt 079200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H3898.IH
H3898
SSpencer on DSKBBV9HB2PROD with BILLS
(B) Any North Korean person that facili-
tates the transfer of bulk cash or covered goods 
(as defined under section 1027.100 of title 31, 
Code of Federal Regulations). 
(C) Any North Korean financial institu-
tion. 
(D) Any North Korean person employed 
outside of North Korea. 
(E) Any person acting on behalf of, or at 
the direction of, a person described under sub-
paragraphs (A) through (D). 
(F) Any person that knowingly employs a 
person described under subparagraph (D). 
(G) Any person that facilitates the import 
of goods, services, technology, or natural re-
sources, including energy imports and minerals, 
or their derivatives, from North Korea. 
(H) Any person that facilitates the export 
of goods, services, technology, or natural re-
sources, including energy exports and minerals, 
or their derivatives, to North Korea, except for 
food, medicine, or medical supplies required for 
civilian humanitarian needs. 
(I) Any person that invests in, or partici-
pates in a joint venture with, an entity in which 
VerDate Sep 11 2014 
00:41 Oct 04, 2017
Jkt 079200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H3898.IH
H3898
SSpencer on DSKBBV9HB2PROD with BILLS
the Government of North Korea participates or 
an entity that is created or organized under 
North Korean law. 
(J) Any person that provides financial 
services, including through a subsidiary or joint 
venture, in North Korea. 
(K) Any person that insures, registers, fa-
cilitates the registration of, or maintains insur-
ance or a registration for, a vessel commanded 
or operated by a North Korean person. 
(L) Any person providing specialized 
teaching, training, or information to a North 
Korean person that may contribute to North 
Korea’s development and proliferation of WMD, 
including systems designed in whole or in part 
for the delivery of such weapons. 
(3) FINANCIAL INSTITUTION DEFINITIONS.— 
(A) FINANCIAL
INSTITUTION.—The term 
‘‘financial institution’’ means a United States 
financial institution or a foreign financial insti-
tution. 
(B) FOREIGN FINANCIAL INSTITUTION.— 
The term ‘‘foreign financial institution’’ has the 
meaning 
given 
that 
term 
under 
section 
VerDate Sep 11 2014 
00:41 Oct 04, 2017
Jkt 079200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H3898.IH
H3898
SSpencer on DSKBBV9HB2PROD with BILLS
1010.605 of title 31, Code of Federal Regula-
tions. 
(C) NORTH KOREAN FINANCIAL INSTITU-
TION.—The term ‘‘North Korean financial in-
stitution’’ includes— 
(i) any North Korean financial insti-
tution, as defined in section 3 of the North 
Korea Sanctions and Policy Enhancement 
Act of 2016 (22 U.S.C. 9202); 
(ii) any financial agency, as defined in 
section 5312 of title 31, United States 
Code, that is owned or controlled by the 
Government of North Korea; 
(iii) any money transmitting business, 
as defined in section 5330(d) of title 31, 
United States Code, that is owned or con-
trolled by the Government of North Korea; 
(iv) any financial institution that is a 
joint venture between any person and the 
Government of North Korea; and 
(v) any joint venture involving a 
North Korean financial institution. 
(D) UNITED STATES FINANCIAL INSTITU-
TION.—The term ‘‘United States financial insti-
tution’’ has the meaning given the term ‘‘U.S. 
VerDate Sep 11 2014 
00:41 Oct 04, 2017
Jkt 079200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H3898.IH
H3898
SSpencer on DSKBBV9HB2PROD with BILLS
financial institution’’ under section 510.310 of 
title 31, Code of Federal Regulations. 
(4) KNOWINGLY.—The term ‘‘knowingly’’ with 
respect to conduct, a circumstance, or a result, 
means that a person has actual knowledge, or should 
have known, of the conduct, the circumstance, or the 
result. 
Æ 
VerDate Sep 11 2014 
00:41 Oct 04, 2017
Jkt 079200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6301
E:\BILLS\H3898.IH
H3898
SSpencer on DSKBBV9HB2PROD with BILLS