BANK Act of 2016

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Block Access to North Korea Act of 
2016'' or ``BANK Act of 2016''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) North Korea continues to develop a ballistic missile 
        and nuclear weapons program, despite numerous United States and 
        international sanctions, including United Nations Security 
        Council Resolutions 1695, 1718, 1874, 2087, 2094, and 2270, 
        among others.
            (2) North Korea tested its fifth and largest nuclear device 
        on September 9, 2016.
            (3) North Korea has increased the pace of its missile 
        testing, including the test of a submarine-launched ballistic 
        missile, potentially furthering the development of a second-
        strike capability.
            (4) North Korea has persistently demonstrated an 
        unwillingness to meaningfully negotiate with the United States 
        regarding denuclearization.
            (5) By its actions and continued investments in its nuclear 
        program, it is clear that the Government of North Korea has no 
        intention to reduce or eliminate its nuclear weapons program.
            (6) Specialized financial messaging services allow for 
        messaging and contact, including the transfer of funds, between 
        financial institutions.
            (7) The Central Bank of the Democratic People's Republic of 
        Korea and certain other financial institutions are currently 
        able to avail themselves to financial messaging systems which 
        could be used in funding the North Korean nuclear program.
            (8) Experts link North Korea to the hacking of specialized 
        financial messaging institutions, resulting in the theft of 
        $81,000,000 from the central bank of Bangledesh.
            (9) North Korean provocations continue to endanger its 
        citizens, those of United States allies, and those of 
        Americans.

SEC. 3. SENSE OF CONGRESS.

    It is the sense of Congress that--
            (1) providers of specialized financial messaging services 
        are a critical link to the international financial system;
            (2) directly providing specialized financial messaging 
        services to, or enabling or facilitating direct or indirect 
        access to such messaging services for, any financial 
        institution is inconsistent with paragraph 11 of the United 
        Nations Security Council Resolution 2094; and
            (3) the United States reaffirms its commitment to its 
        allies in the region, including the Republic of Korea and 
        Japan, which are directly threatened by North Korea.

SEC. 4. AUTHORIZATION OF IMPOSITION OF SANCTIONS WITH RESPECT TO THE 
              PROVISION OF SPECIALIZED FINANCIAL MESSAGING SERVICES TO 
              THE CENTRAL BANK OF THE DEMOCRATIC PEOPLE'S REPUBLIC OF 
              KOREA AND CERTAIN OTHER FINANCIAL INSTITUTIONS AND 
              SANCTIONED PERSONS.

    (a) In General.--The President shall impose sanctions pursuant to 
the International Emergency Economic Powers Act (50 U.S.C. 1701 et 
seq.) with respect to a person if, on or after the date that is 90 days 
after the date of the enactment of this Act, the person continues to 
knowingly and directly provide specialized financial messaging services 
to, or knowingly enable or facilitate direct or indirect access to such 
messaging services for--
            (1) the Central Bank of the Democratic People's Republic of 
        Korea;
            (2) a financial institution that facilitates any 
        transaction or transactions or provides significant financial 
        services for nuclear development or proliferation for or on 
        behalf of North Korea; or
            (3) a person identified on the list of specially designated 
        nationals and blocked persons maintained by the Office of 
        Foreign Assets Control of the Department of the Treasury by 
        reason of assisting the nuclear development or proliferation 
        efforts of North Korea.
    (b) Waiver.--The President may waive the requirement to impose 
sanctions with respect to a person under subsection (a) if--
            (1) the person is subject to a sanctions regime under its 
        governing foreign law that requires it to eliminate the knowing 
        provision of such messaging services to, and the knowing 
        enabling and facilitation of direct or indirect access to such 
        messaging services for, the Central Bank of the Democratic 
        People's Republic of Korea, any financial institution described 
        in subsection (a)(2), and any person described in subsection 
        (a)(3);
            (2) the person has, pursuant to that sanctions regime, 
        terminated the knowing provision of such messaging services to, 
        and the knowing enabling and facilitation of direct or indirect 
        access to such messaging services for, the Central Bank of the 
        Democratic People's Republic of Korea, any financial 
        institution described in subsection (a)(2), and any person 
        described in subsection (a)(3); and
            (3) the President determines that such a waiver is in the 
        national interest of the United States.
    (c) Clarification.--For purposes of this section, enabling or 
facilitating direct or indirect access to specialized financial 
messaging services for the Central Bank of the Democratic People's 
Republic of Korea, a financial institution described in subsection 
(a)(2), or a person described in subsection (a)(3) includes doing so by 
serving as an intermediary financial institution with access to such 
messaging services.

Summary: Block Access to North Korea Act of 2016 or BANK Act of 2016 This bill requires the President to impose sanctions pursuant to the International Emergency Economic Powers Act, with specified waiver authority, against a person that continues to knowingly and directly provide specialized financial messaging services to, or to knowingly enable or facilitate access to such messaging services for:   the Central Bank of the Democratic People's Republic of Korea (North Korea),  a financial institution that facilitates any transaction or provides significant financial services for nuclear development or proliferation on North Korea's behalf, or  a person identified on the list of specially designated nationals and blocked persons maintained by the Department of the Treasury's Office of Foreign Assets Control for assisting North Korea's nuclear development or proliferation efforts.