154 
and Policy Enhancement Act of 2016 (22 U.S.C. 9214(c)) 
is amended— 
(1) by striking ‘‘of a designated person’’ and in-
serting ‘‘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 congres-
sional committees a report including a determination 
as to whether reasonable grounds exist, and an ex-
planation 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 
VerDate Sep 11 2014 
01:16 Jul 25, 2017
Jkt 069200
PO 00000
Frm 00154
Fmt 6652
Sfmt 6201
E:\BILLS\H3364.IH
H3364
dlhill on DSKBC4BHB2PROD with BILLS
155 
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 insur-
ance company, with respect to facilitating im-
ports, exports, and reexports of arms and re-
lated 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 Cor-
poration (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 
VerDate Sep 11 2014 
01:16 Jul 25, 2017
Jkt 069200
PO 00000
Frm 00155
Fmt 6652
Sfmt 6201
E:\BILLS\H3364.IH
H3364
dlhill on DSKBC4BHB2PROD with BILLS
156 
such individual, with respect to transactions 
with KKG. 
(F) The Chamber of Commerce of the 
Democratic People’s Republic of Korea, with re-
spect 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 para-
graph (1) may contain a classified annex. 
SEC. 312. PROHIBITION ON INDIRECT CORRESPONDENT 
ACCOUNTS. 
(a) IN GENERAL.—Title II of the North Korea Sanc-
tions and Policy Enhancement Act of 2016 (22 U.S.C. 
9221 et seq.) is amended by inserting after section 201 
the following new section: 
‘‘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 for-
eign financial institution to provide significant financial 
services indirectly to any person, foreign government, or 
VerDate Sep 11 2014 
01:16 Jul 25, 2017
Jkt 069200
PO 00000
Frm 00156
Fmt 6652
Sfmt 6201
E:\BILLS\H3364.IH
H3364
dlhill on DSKBC4BHB2PROD with BILLS
157 
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 institu-
tion is authorized to process transfers of funds to or from 
North Korea, or for the direct or indirect benefit of any 
person, foreign government, 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 li-
cense issued by the Secretary 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
INSTITU-
TION.—The term ‘United States financial institu-
tion’ means has the meaning given that term in sec-
tion 510.310 of title 31, Code of Federal Regula-
VerDate Sep 11 2014 
01:16 Jul 25, 2017
Jkt 069200
PO 00000
Frm 00157
Fmt 6652
Sfmt 6201
E:\BILLS\H3364.IH
H3364
dlhill on DSKBC4BHB2PROD with BILLS
158 
tions, 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 NON-
COMPLIANT GOVERNMENTS. 
Section 203 of the North Korea Sanctions and Policy 
Enhancement Act of 2016 (22 U.S.C. 9223) is amended— 
(1) in subsection (b)— 
(A) in the heading, by striking ‘‘TRANS-
ACTIONS
IN LETHAL MILITARY EQUIPMENT’’ 
and inserting ‘‘TRANSACTIONS
IN DEFENSE 
ARTICLES OR DEFENSE SERVICES’’; 
(B) in paragraph (1), by striking ‘‘that 
provides lethal military equipment to the Gov-
ernment of North Korea’’ and inserting ‘‘that 
provides to or receives from the Government of 
North Korea a defense article or defense serv-
VerDate Sep 11 2014 
01:16 Jul 25, 2017
Jkt 069200
PO 00000
Frm 00158
Fmt 6652
Sfmt 6201
E:\BILLS\H3364.IH
H3364
dlhill on DSKBC4BHB2PROD with BILLS