IB 
Union Calendar No. 420 
113TH CONGRESS 
2D SESSION 
H. R. 1771 
[Report No. 113–560, Part I] 
To improve the enforcement of sanctions against the Government of North 
Korea, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 26, 2013 
Mr. ROYCE (for himself, Mr. ENGEL, Mr. CHABOT, Ms. ROS-LEHTINEN, Mr. 
ROHRABACHER, Mr. POE of Texas, Mr. SHERMAN, and Mr. SALMON) in-
troduced the following bill; which was referred to the Committee on For-
eign Affairs, and in addition to the Committees on Ways and Means, the 
Judiciary, Financial Services, and Oversight and Government Reform, for 
a period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the com-
mittee concerned 
JULY 28, 2014 
Additional sponsors: Mr. RADEL, Mr. MEADOWS, Mr. COTTON, Mr. WEBER 
of Texas, Mr. STOCKMAN, Mr. MESSER, Mr. WOLF, Mr. KINZINGER of 
Illinois, Mr. MCCAUL, Mr. HOLDING, Ms. GABBARD, Mr. SCHNEIDER, 
Mr. COOK, Mr. ROSKAM, Mr. CONNOLLY, Ms. MENG, Mr. LOWENTHAL, 
Mr. PERRY, Mr. BROOKS of Alabama, Ms. BORDALLO, Mr. HIGGINS, Mr. 
SENSENBRENNER, Mr. SIRES, Mr. KLINE, Mr. BISHOP of Utah, Mr. 
COLLINS of Georgia, Ms. BASS, Mr. SCHOCK, Mr. SAM JOHNSON of 
Texas, Mr. BERA of California, Mr. CONAWAY, Mr. MEEHAN, Mr. 
PEARCE, Mr. WESTMORELAND, Mr. VARGAS, Mr. SMITH of New Jersey, 
Mr. MICA, Mr. GOHMERT, Mr. DEUTCH, Mr. PETERSON, Mr. FORBES, 
Mr. WILSON of South Carolina, Mr. BRIDENSTINE, Mr. UPTON, Mr. 
BONNER, Mr. CICILLINE, Mr. RYAN of Ohio, Mr. FINCHER, Mr. BILI-
RAKIS, Mr. SMITH of Missouri, Mr. YOUNG of Indiana, Mr. LUETKE-
MEYER, Mr. NUNNELEE, Mr. DESANTIS, Mr. BROUN of Georgia, Mr. 
COFFMAN, Mr. MORAN, Mr. LAMALFA, Ms. JENKINS, Mr. CARSON of In-
diana, Mr. SHIMKUS, Mr. DESJARLAIS, Mr. MILLER of Florida, Mr. 
JOHNSON of Ohio, Mr. SABLAN, Mr. GENE GREEN of Texas, Mr. 
MULVANEY, Mr. STEWART, Mr. BENISHEK, Mrs. NOEM, Mr. RAHALL, 
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Mr. HARPER, Mrs. WAGNER, Mr. STIVERS, Mr. NEUGEBAUER, Mrs. 
BLACK, Mr. MCHENRY, Mr. PETERS of California, Ms. WILSON of Flor-
ida, Mr. MICHAUD, Mr. KINGSTON, Mr. OWENS, Mr. KING of New York, 
Mr. ENYART, Mr. WALBERG, Mrs. BLACKBURN, Mr. KENNEDY, Mr. 
YOUNG of Alaska, Mr. BENTIVOLIO, Mr. LANCE, Mr. GRIFFIN of Arkan-
sas, Mr. COLLINS of New York, Mr. THORNBERRY, Ms. LINDA T. 
SA´NCHEZ of California, Mr. OLSON, Mr. HANNA, Mr. VEASEY, Mr. 
ISRAEL, Mr. PITTENGER, Mr. LATTA, Mr. AUSTIN SCOTT of Georgia, Mr. 
WOODALL, Mr. PITTS, Ms. MICHELLE LUJAN GRISHAM of New Mexico, 
Mrs. NAPOLITANO, Mr. CARTWRIGHT, Mr. WOMACK, Mr. HUIZENGA of 
Michigan, Mr. GRAVES of Missouri, Mr. COBLE, Mr. SIMPSON, Mr. 
PETERS of Michigan, Mr. HECK of Nevada, Mr. WENSTRUP, Ms. SHEA- 
PORTER, Mr. FORTENBERRY, Mr. ROTHFUS, Mr. GARRETT, Mr. GOWDY, 
Mr. YODER, Ms. HANABUSA, Mr. SESSIONS, Mr. MCDERMOTT, Mr. 
SMITH of Washington, Mr. DUNCAN of South Carolina, Mr. REICHERT, 
Ms. LORETTA SANCHEZ of California, Mr. HASTINGS of Florida, Mrs. 
BACHMANN, Mr. KING of Iowa, Mr. LATHAM, Mr. COLE, Mr. CRAMER, 
Mr. MULLIN, Mr. DELANEY, Mr. RUSH, Mr. PAULSEN, Mr. DUFFY, Ms. 
KAPTUR, and Mr. FATTAH 
JULY 28, 2014 
Reported from the Committee on Foreign Affairs with an amendment 
[Strike out all after the enacting clause and insert the part printed in italic] 
JULY 28, 2014 
The Committees on Ways and Means, the Judiciary, Financial Services, and 
Oversight and Government Reform discharged; committed to the Com-
mittee of the Whole House on the State of the Union and ordered to be 
printed 
[For text of introduced bill, see copy of bill as introduced on April 26, 2013] 
A BILL 
To improve the enforcement of sanctions against the 
Government of North Korea, and for other purposes. 
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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. 
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SEC. 2. FINDINGS. 
Congress finds the following: 
(1) The Government of North Korea has repeat-
edly 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 im-
plicated 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 assas-
sinate defectors and human rights activists, repeated 
threats of violence against foreign persons, leaders, 
newspapers, and cities, and the shipment of weapons 
to terrorists. 
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(5) North Korea has unilaterally withdrawn 
from the 1953 Armistice Agreement that ended the 
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 
200,000 men, women, and children, who live in atro-
cious living conditions with insufficient food, cloth-
ing, and medical care, and under constant fear of tor-
ture 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 fi-
nancial institutions without establishing sufficient fi-
nancial safeguards against North Korea’s use of these 
transactions to promote proliferation, weapons traf-
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(A) the Committee on Foreign Affairs and 
the Committee 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 ap-
plying 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 Peo-
ple’s Republic of Korea or any political subdivi-
sion, 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 Au-
thorization Act, Fiscal Years 1988 and 1989 (22 
U.S.C. 2656f(d)). 
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(7) LUXURY GOODS.—The term ‘‘luxury goods’’ 
has the meaning given such term in subpart 746.4 of 
title 15, Code of Federal Regulations, and includes the 
items listed in Supplement No. 1 to such regulation, 
and any similar items. 
(8) MONETARY INSTRUMENT.—The term ‘‘mone-
tary 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 institu-
tion 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 section 
1027.100 of title 31, Code of Federal Regula-
tions, and any instrument or tangible or intan-
gible access device used for the storage and trans-
mission of a representation of covered goods. 
(11) PERSON.—The term ‘‘person’’ has the mean-
ing given that term in section 510.306 of title 31, 
Code of Federal Regulations. 
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); 
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(2) to sanction the persons, including financial 
institutions, that facilitate proliferation, illicit activi-
ties, arms trafficking, imports of luxury goods, serious 
human rights abuses, cash smuggling, and censorship 
by the Government of North Korea; 
(3) to authorize the President to sanction persons 
who fail to exercise due diligence to ensure that such 
financial institutions and jurisdictions do not facili-
tate 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, 
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 people 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 section 
104(a). 
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SEC. 103. BRIEFING TO CONGRESS. 
Not later than 180 days after the date of the enactment 
of this Act, and periodically thereafter, the President shall 
provide to the appropriate congressional committees a brief-
ing on efforts to implement this Act, to include the fol-
lowing, 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 progress 
realized from such efforts, including efforts to encour-
age the European Union and other states and juris-
dictions to sanction and block the assets of the For-
eign 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 DESIGNA-
TION AND SANCTIONS AUTHORITY.— 
(1) CONDUCT DESCRIBED.—Except as provided 
in section 207, the President shall designate under 
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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 contributed to 
the proliferation of weapons of mass destruction 
or their means of delivery (including missiles ca-
pable of delivering such weapons), including any 
efforts to manufacture, acquire, possess, develop, 
transport, transfer or use such items, by any 
person or foreign country; 
(B) have knowingly imported, exported, or 
reexported to, into, or from North Korea any 
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 manu-
facture, maintenance, or use of any arms or re-
lated materiel to be imported, exported, or reex-
ported to, into, or from North Korea, or fol-
lowing their importation, exportation, or re-
exportation to, into, or from North Korea, wheth-
er directly or indirectly; 
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(D) have knowingly, directly or indirectly, 
imported, exported, or reexported significant lux-
ury 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 torture or 
cruel, inhuman, or degrading treatment or pun-
ishment, prolonged detention without charges 
and trial, causing the disappearance of persons 
by the abduction and clandestine detention 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 laundering, 
the counterfeiting of goods or currency, bulk cash 
smuggling, narcotics trafficking, or other illicit 
activity that involves or supports the Govern-
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ment of North Korea or any senior official there-
of, 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 
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 section 204. 
(3) PENALTIES.—The penalties provided for in 
section 206 of the International Emergency Economic 
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 sub-
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section, or of an order or regulation prescribed under 
this Act, to the same extent that such penalties apply 
to a person that commits an unlawful 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, contributed 
to, assisted, sponsored, or provided financial, 
material or technological support for, or goods 
and services in support of, any violation of, or 
evasion of, an applicable United Nations Secu-
rity 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 Execu-
tive order, or by the United Nations Security 
Council pursuant to an applicable United Na-
tions Security Council resolution; 
(C) have knowingly facilitated the transfer 
of any funds, financial assets, or economic re-
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sources, or any property or interests in property 
derived from, involved in, or that has materially 
contributed to conduct prohibited by an applica-
ble 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, used to facili-
tate any conduct prohibited by an applicable 
United Nations Security Council resolution; 
(F) have knowingly contributed to the brib-
ery of an official of the Government of North 
Korea, the misappropriation, theft, or embezzle-
ment 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 assisted, 
sponsored, or provided financial, material, or 
technological support for, or goods or services to 
or in support of, the conduct described in sub-
paragraphs (A) through (F) of this paragraph or 
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the conduct described in subparagraphs (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; 
(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 jurisdiction 
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 
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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 the International 
Emergency Economic Powers Act (50 U.S.C. 1705 et seq.) 
without regard to section 202 of such Act to block all prop-
erty 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 per-
son, including any overseas branch. 
(d) APPLICATION.—The designation of a person and 
the blocking of 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 interests in property are blocked pursu-
ant 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 
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(1) by striking ‘‘or section 92 of the Atomic En-
ergy Act of 1954’’ and inserting ‘‘section 92 of the 
Atomic Energy Act of 1954’’; and 
(2) by adding at the end the following: ‘‘, or sec-
tion 104(a) of the North Korea Sanctions Enforce-
ment Act of 2014’’. 
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 findings: 
(1) The Undersecretary of the Treasury for Ter-
rorism and Financial Intelligence, who is responsible 
for safeguarding the financial system against illicit 
use, money laundering, terrorist financing, and the 
proliferation of weapons of mass destruction, has re-
peatedly expressed concern about North Korea’s mis-
use of the international financial system as follows: 
(A) In 2006, the Undersecretary stated that, 
given North Korea’s ‘‘counterfeiting of U.S. cur-
rency, narcotics trafficking and use of accounts 
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worldwide to conduct proliferation-related trans-
actions, the line between illicit and licit North 
Korean money is nearly invisible’’ and urged fi-
nancial institutions worldwide to ‘‘think care-
fully 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 coun-
terfeiting 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 re-
peatedly— 
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(A) expressed concern at deficiencies in 
North Korea’s regimes to combat money laun-
dering and terrorist financing; 
(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 counter-
measures to protect the international financial 
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 companies 
and financial institutions; and 
(E) called on all jurisdictions to protect 
against correspondent relationships being used to 
bypass or evade countermeasures and risk miti-
gation practices, and take into account money 
laundering and terrorist financing risks when 
considering requests by North Korean financial 
institutions to open branches and subsidiaries in 
their jurisdiction. 
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(3) On March 7, 2013, the United Nations Secu-
rity 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 Security Coun-
cil resolution, or to the evasion of such prohibi-
tions. 
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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 illicit ac-
tivities; and 
(3) urges the President to seek the prompt imple-
mentation 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 prop-
erty that could contribute to activities sanctioned by 
applicable United Nations Security Council resolu-
tions, or to the evasion of sanctions. 
(c) DETERMINATIONS REGARDING NORTH KOREA.— 
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(1) IN GENERAL.—The Secretary of the Treasury 
shall, not later than 180 days after the date of the en-
actment 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 con-
cluding that North Korea is a jurisdiction of primary 
money laundering concern. 
(2) ENHANCED DUE DILIGENCE AND REPORTING 
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 primary money 
laundering concern, the Secretary of the Treasury, in 
consultation with the Federal functional regulators, 
shall impose one or more of the special measures de-
scribed 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.—The Secretary of the 
Treasury shall, not later than 180 days after the 
enactment of this Act, and for each of the 3 cal-
endar years thereafter, submit to the appropriate 
congressional committees a report on the deter-
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mination made under paragraph (1) together 
with the reasons for that determination. 
(B) FORM.—A report or copy of any report 
submitted under this paragraph shall be sub-
mitted 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 Se-
curity Council resolutions fully and promptly, includ-
ing 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; 
(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 
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contribute to an activity prohibited by applica-
ble United Nations Security Council resolutions, 
or to the evasion of sanctions under such resolu-
tions; 
(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 primarily 
responsible for the protection of the international fi-
nancial 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 Na-
tions Security Council resolutions and to the protec-
tion of the international financial system; 
(5) the report of the Panel of Experts established 
pursuant to United Nations Security Council Resolu-
tion 1874, dated June 11, 2013, expressed concern 
about the ability of banks in states with less effective 
regulators and those unable to afford effective compli-
ance to detect and prevent illicit transfers involving 
North Korea; 
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(6) North Korea has historically exploited incon-
sistencies between jurisdictions in the interpretation 
and enforcement of financial regulations and applica-
ble United Nations Security Council resolutions to 
circumvent sanctions and launder the proceeds of il-
licit activities; 
(7) Amroggang Development Bank, Bank of East 
Land, and Tanchon Commercial Bank have been des-
ignated by the Secretary of the Treasury, the United 
Nations Security Council, and the European 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 Treasury for 
facilitating transactions on behalf of persons linked to 
its proliferation network, and for serving as ‘‘a key 
financial node’’; and 
(10) Daedong Credit Bank has been designated 
by the Secretary of the Treasury for activities prohib-
ited by applicable United Nations Security Council 
resolutions, including the use of deceptive financial 
practices to facilitate transactions on behalf of per-
sons linked to North Korea’s proliferation network. 
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(b) SENSE OF CONGRESS.—It is the sense of Congress 
that the President should intensify diplomatic efforts, both 
in appropriate international fora such as the United Na-
tions and bilaterally, to develop and implement a coordi-
nated, consistent, multilateral strategy for protecting 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 per-
sons, 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 ju-
risdiction in which the property is held, of any prop-
erty 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. 
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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 technology as 
described in paragraph (1) shall be subject to a pre-
sumption of denial. 
(b) TRANSACTIONS WITH COUNTRIES SUPPORTING 
ACTS OF INTERNATIONAL TERRORISM.—The prohibitions 
and restrictions described in section 40 of the Arms Export 
Control Act (22 U.S.C. 2780), and other provisions in that 
Act, shall also apply to exporting or otherwise providing 
(by sale, lease or loan, grant, or other means), directly or 
indirectly, any munitions item to the Government of North 
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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) ap-
plies. 
(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 provides 
lethal military equipment to, or receives lethal mili-
tary equipment from, the Government of North Korea. 
(2) APPLICABILITY.—The prohibition under this 
subsection with respect to a country shall terminate 
on the date that is 1 year after the date on which 
such country ceases to provide lethal military equip-
ment to the Government of North Korea. 
(3) WAIVER.—The President may waive the pro-
hibition under this subsection with respect to a coun-
try if the President determines that it is in the na-
tional 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 serv-
ices from any designated person. 
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(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 simple 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 
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 finding of 
urgent and compelling circumstances significantly af-
fecting the interests of the United States. If the head 
of an executive agency waives the requirement under 
paragraph (1) for a person, the head of the agency 
shall submit to the appropriate congressional commit-
tees, within 30 days after the waiver is made, a re-
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port containing the rationale for the waiver and rel-
evant information supporting the waiver decision. 
(3) INITIATION OF SUSPENSION AND DEBARMENT 
PROCEEDING.—The head of an executive agency shall 
initiate a suspension and debarment proceeding 
against a person who has provided a false certifi-
cation under subsection (b). Upon determination of 
suspension, debarment, or proposed debarment, the 
agency shall ensure that such person is entered into 
the Government-wide database containing the list of 
all excluded parties ineligible for Federal programs 
pursuant to Executive Order 12549 (31 U.S.C. 6101 
note; relating to debarment and suspension) and Ex-
ecutive Order 12689 (31 U.S.C. 6101 note; relating to 
debarment and suspension). 
(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 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 sub-
section may be construed to limit the use of other remedies 
available to the head of an executive agency or any other 
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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) BRIEFING 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 Secretary 
of Homeland Security, shall provide to the appropriate con-
gressional committees, the Committee on Homeland Secu-
rity of the House of Representatives, and the Committee on 
Homeland Security and Governmental Affairs of the Sen-
ate, a briefing identifying foreign sea ports and airports 
whose inspections of ships, aircraft, and conveyances origi-
nating in North Korea, carrying North Korean 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 promulgate regula-
tions imposing enhanced physical inspection requirements, 
as identified by the Automated Targeting System operated 
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by the National Targeting Center in U.S. Customs and Bor-
der Protection, on any cargo landed in the United States 
that has been transported through such sea port or airport. 
(c) SEIZURE AND FORFEITURE.—A vessel, aircraft, or 
conveyance used to facilitate any of the activities described 
in section 104(a) that comes within the jurisdiction 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. 
SEC. 206. TRAVEL SANCTIONS. 
(a) ALIENS INELIGIBLE FOR VISAS, ADMISSION, OR 
PAROLE.— 
(1) VISAS, ADMISSION, OR PAROLE.—An alien 
who the Secretary of State or the Secretary of Home-
land Security (or a designee of one of such Secre-
taries) knows, or has reasonable grounds to believe, 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 Nation-
ality Act (8 U.S.C. 1101 et seq.). 
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(2) CURRENT VISAS REVOKED.— 
(A) IN GENERAL.—The issuing consular of-
ficer, 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 de-
scribed in subsection (a)(1) or (b)(1) of section 
104 regardless of when issued. 
(B) EFFECT OF REVOCATION.—A revocation 
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 Success 
June 26, 1947, and entered into force November 21, 1947, 
between the United Nations and the United States, or other 
applicable international obligations. 
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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 
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 Headquarters of 
the United Nations, signed June 26, 1947, and 
entered into force on November 21, 1947, or 
under the Vienna Convention on Consular Rela-
tions, signed April 24, 1963, and entered into 
force on March 19, 1967, or under other inter-
national agreements. 
(2) 
DISCRETIONARY
EXEMPTIONS.—The 
fol-
lowing activities may be exempt from sanctions under 
section 104 as determined by the President: 
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(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 defined 
as luxury goods. 
(C) Any transaction the exclusive purpose 
for which is to import agricultural products, 
medicine, or medical devices into North Korea, 
provided that such supplies or equipment are 
classified as designated ‘‘EAR 99’’ under the Ex-
port 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 con-
tinued 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 Nuclear 
Proliferation Prevention Act of 1994 (22 
U.S.C. 6301 et seq.); or 
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(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 addi-
tional 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 congressional com-
mittees 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 sanctions 
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 
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that the designated person has verifiably ceased its partici-
pation 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 requirements of this 
Act. 
(d) FINANCIAL SERVICES FOR CERTAIN ACTIVITIES.— 
The President may promulgate regulations, rules, and poli-
cies as may be necessary to facilitate the provision of finan-
cial services by a foreign financial institution that 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 resolutions’’ 
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 techniques’’ and 
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‘‘is experienced in actions it takes to evade sanc-
tions’’. 
(b) SENSE OF CONGRESS.—It is the sense of Congress 
that the United States should work to increase the capacity 
of responsible nations to implement United Nations Secu-
rity Council Resolutions 1695, 1718, 1874, 2087, and 2094, 
including to strengthen the capacity of responsible nations 
to monitor and interdict shipments to and from North 
Korea that contribute to prohibited activities under such 
Resolutions. 
TITLE III—PROMOTION OF 
HUMAN RIGHTS 
SEC. 301. INFORMATION TECHNOLOGY. 
Section 104 of the North Korean Human Rights Act 
of 2004 (22 U.S.C. 7814) is amended by inserting after sub-
section (c) the following new subsection: 
‘‘(d) INFORMATION TECHNOLOGY STUDY.—Not later 
than 180 days after the date of the enactment of this sub-
section, the President shall submit to the appropriate con-
gressional committees a classified report setting forth a de-
tailed plan for making unrestricted, unmonitored, and in-
expensive electronic mass communications available to the 
people of North Korea.’’. 
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