[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 757 Reported in Senate (RS)]
<DOC>
Calendar No. 359
114th CONGRESS
2d Session
H. R. 757
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
January 19, 2016
Received; read twice and referred to the Committee on Foreign Relations
February 2, 2016
Reported by Mr. Corker, with an amendment
[Strike out all after the enacting clause and insert the part printed
in italic]
_______________________________________________________________________
AN ACT
To improve the enforcement of sanctions against the Government of North
Korea, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
<DELETED>SECTION 1. SHORT TITLE; TABLE OF CONTENTS.</DELETED>
<DELETED> (a) Short Title.--This Act may be cited as the ``North
Korea Sanctions Enforcement Act of 2016''.</DELETED>
<DELETED> (b) Table of Contents.--The table of contents for this Act
is as follows:</DELETED>
<DELETED>Sec. 1. Short title; table of contents.
<DELETED>Sec. 2. Findings.
<DELETED>Sec. 3. Definitions.
<DELETED>TITLE I--INVESTIGATIONS, PROHIBITED CONDUCT, AND PENALTIES
<DELETED>Sec. 101. Statement of policy.
<DELETED>Sec. 102. Investigations.
<DELETED>Sec. 103. Briefing to Congress.
<DELETED>Sec. 104. Designation of persons for prohibited conduct and
mandatory and discretionary designation and
sanctions authorities.
<DELETED>Sec. 105. Forfeiture of property.
<DELETED>TITLE II--SANCTIONS AGAINST NORTH KOREAN PROLIFERATION, HUMAN
RIGHTS ABUSES, ILLICIT ACTIVITIES, AND SIGNIFICANT ACTIVITIES
UNDERMINING CYBER SECURITY
<DELETED>Sec. 201. Determinations with respect to North Korea as a
jurisdiction of primary money laundering
concern.
<DELETED>Sec. 202. Ensuring the consistent enforcement of United
Nations Security Council resolutions and
financial restrictions on North Korea.
<DELETED>Sec. 203. Proliferation prevention sanctions.
<DELETED>Sec. 204. Procurement sanctions.
<DELETED>Sec. 205. Enhanced inspections authorities.
<DELETED>Sec. 206. Travel sanctions.
<DELETED>Sec. 207. Exemptions, waivers, and removals of designation.
<DELETED>Sec. 208. Report on those responsible for knowingly engaging
in significant activities undermining cyber
security.
<DELETED>Sec. 209. Sense of Congress that trilateral cooperation among
the United States, Japan, and the Republic
of Korea is crucial to the stability of the
Asia-Pacific region.
<DELETED>Sec. 210. Report on nuclear program cooperation between North
Korea and Iran.
<DELETED>TITLE III--PROMOTION OF HUMAN RIGHTS
<DELETED>Sec. 301. Information technology.
<DELETED>Sec. 302. Report on North Korean prison camps.
<DELETED>Sec. 303. Report on persons who are responsible for serious
human rights abuses or censorship in North
Korea.
<DELETED>TITLE IV--GENERAL AUTHORITIES
<DELETED>Sec. 401. Suspension of sanctions and other measures.
<DELETED>Sec. 402. Termination of sanctions and other measures.
<DELETED>Sec. 403. Authority to consolidate reports.
<DELETED>Sec. 404. Regulations.
<DELETED>Sec. 405. No additional funds authorized.
<DELETED>Sec. 406. Effective date.
<DELETED>SEC. 2. FINDINGS.</DELETED>
<DELETED> Congress finds the following:</DELETED>
<DELETED> (1) The Government of North Korea has repeatedly
violated its commitments to the complete, verifiable,
irreversible dismantlement of its nuclear weapons programs, and
has willfully violated multiple United Nations Security Council
resolutions calling for it to cease its development, testing,
and production of weapons of mass destruction.</DELETED>
<DELETED> (2) North Korea poses a grave risk for the
proliferation of nuclear weapons and other weapons of mass
destruction.</DELETED>
<DELETED> (3) The Government of North Korea has been
implicated repeatedly in money laundering and illicit
activities, including prohibited arms sales, narcotics
trafficking, the counterfeiting of United States currency, and
the counterfeiting of intellectual property of United States
persons.</DELETED>
<DELETED> (4) The Government of North Korea has, both
historically and recently, repeatedly sponsored acts of
international terrorism, including attempts to assassinate
defectors and human rights activists, repeated threats of
violence against foreign persons, leaders, newspapers, and
cities, and the shipment of weapons to terrorists and state
sponsors of terrorism.</DELETED>
<DELETED> (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.</DELETED>
<DELETED> (6) North Korea maintains a system of brutal
political prison camps that contain as many as 120,000 men,
women, and children, who live in atrocious living conditions
with insufficient food, clothing, and medical care, and under
constant fear of torture or arbitrary execution.</DELETED>
<DELETED> (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).</DELETED>
<DELETED> (8) North Korea has prioritized weapons programs
and the procurement of luxury goods, in defiance of United
Nations Security Council resolutions, and in gross disregard of
the needs of its people.</DELETED>
<DELETED> (9) The President has determined that the
Government of North Korea is responsible for knowingly engaging
in significant activities undermining cyber security with
respect to United States persons and interests, and for threats
of violence against the civilian population of the United
States.</DELETED>
<DELETED> (10) Persons, including financial institutions,
who engage in transactions with, or provide financial services
to, the Government of North Korea and its financial
institutions without establishing sufficient financial
safeguards against North Korea's use of these transactions to
promote proliferation, weapons trafficking, human rights
violations, illicit activity, and the purchase of luxury goods,
aid and abet North Korea's misuse of the international
financial system, and also violate the intent of relevant
United Nations Security Council resolutions.</DELETED>
<DELETED> (11) The Government of North Korea's conduct poses
an imminent threat to the security of the United States and its
allies, to the global economy, to the safety of members of the
United States Armed Forces, to the integrity of the global
financial system, to the integrity of global nonproliferation
programs, and to the people of North Korea.</DELETED>
<DELETED> (12) The Congress seeks, through this legislation,
to use nonmilitary means to address this crisis, to provide
diplomatic leverage to negotiate necessary changes in North
Korea's conduct, and to ease the suffering of the people of
North Korea.</DELETED>
<DELETED>SEC. 3. DEFINITIONS.</DELETED>
<DELETED> In this Act:</DELETED>
<DELETED> (1) Applicable executive order.--The term
``applicable Executive order'' means--</DELETED>
<DELETED> (A) Executive Order No. 13382 (2005),
13466 (2008), 13551 (2010), 13570 (2011), or 13687
(2015) to the extent that such Executive order
authorizes the imposition of sanctions on persons for
conduct, or prohibits transactions or activities,
involving the Government of North Korea; or</DELETED>
<DELETED> (B) any Executive order adopted on or
after the date of the enactment of this Act, to the
extent that such Executive order authorizes the
imposition of sanctions on persons for conduct, or
prohibits transactions or activities, involving the
Government of North Korea.</DELETED>
<DELETED> (2) Applicable united nations security council
resolution.--The term ``applicable United Nations Security
Council resolution'' means--</DELETED>
<DELETED> (A) United Nations Security Council
Resolution 1695 (2006), 1718 (2006), 1874 (2009), 2087
(2013), or 2094 (2013); or</DELETED>
<DELETED> (B) any United Nations Security Council
resolution adopted on or after the date of the
enactment of this Act, to the extent that such
resolution authorizes the imposition of sanctions on
persons for conduct, or prohibits transactions or
activities, involving the Government of North
Korea.</DELETED>
<DELETED> (3) Appropriate congressional committees.--The
term ``appropriate congressional committees'' means--</DELETED>
<DELETED> (A) the Committee on Foreign Affairs, the
Committee on Ways and Means, and the Committee on
Financial Services of the House of Representatives;
and</DELETED>
<DELETED> (B) the Committee on Foreign Relations and
the Committee on Banking, Housing, and Urban Affairs of
the Senate.</DELETED>
<DELETED> (4) Designated person.--The term ``designated
person'' means a person designated under subsection (a) or (b)
of section 104 for purposes of applying one or more of the
sanctions described in title I or II of this Act with respect
to the person.</DELETED>
<DELETED> (5) Government of north korea.--The term
``Government of North Korea'' means--</DELETED>
<DELETED> (A) the Government of the Democratic
People's Republic of Korea or any political
subdivision, agency, or instrumentality thereof;
and</DELETED>
<DELETED> (B) any person owned or controlled by, or
acting for or on behalf of, the Government of the
Democratic People's Republic of Korea.</DELETED>
<DELETED> (6) International terrorism.--The term
``international terrorism'' has the meaning given such term in
section 140(d) of the Foreign Relations Authorization Act,
Fiscal Years 1988 and 1989 (22 U.S.C. 2656f(d)), and includes
the conduct described in section 212(a)(3)(B)(iii) of the
Immigration and Nationality Act (8 U.S.C. 1182(a)(3)(B)(iii)),
to the extent such conduct involves the citizens of more than
one country.</DELETED>
<DELETED> (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.</DELETED>
<DELETED> (8) Monetary instrument.--The term ``monetary
instrument'' has the meaning given such term under section 5312
of title 31, United States Code.</DELETED>
<DELETED> (9) North korean financial institution.--The term
``North Korean financial institution'' means--</DELETED>
<DELETED> (A) a financial institution organized
under the laws of North Korea or any jurisdiction
within North Korea (including a foreign branch of such
institution);</DELETED>
<DELETED> (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);</DELETED>
<DELETED> (C) any financial institution, wherever
located, owned or controlled by the Government of North
Korea; and</DELETED>
<DELETED> (D) any financial institution, wherever
located, owned or controlled by a financial institution
described in subparagraph (A), (B), or (C).</DELETED>
<DELETED> (10) Other stores of value.--The term ``other
stores of value'' means--</DELETED>
<DELETED> (A) prepaid access devices, tangible or
intangible prepaid access devices, or other instruments
or devices for the storage or transmission of value, as
defined in part 1010 of title 31, Code of Federal
Regulations; and</DELETED>
<DELETED> (B) any covered goods, as defined in
section 1027.100 of title 31, Code of Federal
Regulations, and any instrument or tangible or
intangible access device used for the storage and
transmission of a representation of covered goods, or
other device, as defined in section 1027.100 of title
31, Code of Federal Regulations.</DELETED>
<DELETED> (11) Person.--The term ``person'' has the meaning
given such term in section 510.306 of title 31, Code of Federal
Regulations.</DELETED>
<DELETED> (12) Significant activities undermining cyber
security.--The term ``significant activities undermining cyber
security'' means--</DELETED>
<DELETED> (A) significant efforts to--</DELETED>
<DELETED> (i) deny access to or degrade,
disrupt, or destroy an information and
communications technology system or network;
or</DELETED>
<DELETED> (ii) exfiltrate information from
such a system or network without
authorization;</DELETED>
<DELETED> (B) significant destructive malware
attacks;</DELETED>
<DELETED> (C) significant denial of service
activities; or</DELETED>
<DELETED> (D) such other significant activities as
may be described in regulations promulgated to
implement section 104.</DELETED>
<DELETED> (13) United states person.--The term ``United
States person'' has the meaning given such term in section
510.311 of title 31, Code of Federal Regulations.</DELETED>
<DELETED>TITLE I--INVESTIGATIONS, PROHIBITED CONDUCT, AND
PENALTIES</DELETED>
<DELETED>SEC. 101. STATEMENT OF POLICY.</DELETED>
<DELETED> In order to achieve the peaceful disarmament of North
Korea, Congress finds that it is necessary--</DELETED>
<DELETED> (1) to encourage all states to fully and promptly
implement United Nations Security Council Resolution 2094
(2013);</DELETED>
<DELETED> (2) to sanction--</DELETED>
<DELETED> (A) persons that facilitate proliferation
of weapons of mass destruction, illicit activities,
arms trafficking, imports of luxury goods, cash
smuggling, censorship, and knowingly engage in
significant activities undermining cyber security by
the Government of North Korea; and</DELETED>
<DELETED> (B) persons that fail to exercise due
diligence to ensure that financial institutions do not
facilitate any of the activities described in
subparagraph (A) by the Government of North
Korea;</DELETED>
<DELETED> (3) to deny the Government of North Korea access
to the funds it uses to obtain nuclear weapons, ballistic
missiles, offensive cyber capabilities, and luxury goods
instead of providing for the needs of its people; and</DELETED>
<DELETED> (4) to enforce sanctions in a manner that avoids
any adverse humanitarian impact on the people of North Korea to
the extent possible and in a manner that does not unduly
constrain the enforcement of such sanctions.</DELETED>
<DELETED>SEC. 102. INVESTIGATIONS.</DELETED>
<DELETED> 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).</DELETED>
<DELETED>SEC. 103. BRIEFING TO CONGRESS.</DELETED>
<DELETED> 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 briefing on efforts to
implement this Act, to include the following, to the extent the
information is available:</DELETED>
<DELETED> (1) The principal foreign assets and sources of
foreign income of the Government of North Korea.</DELETED>
<DELETED> (2) A list of the persons designated under
subsections (a) and (b) of section 104.</DELETED>
<DELETED> (3) A list of the persons with respect to which
sanctions were waived or removed under section 207.</DELETED>
<DELETED> (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 encourage the European
Union and other states and jurisdictions to sanction and block
the assets of the Foreign Trade Bank of North Korea and Daedong
Credit Bank.</DELETED>
<DELETED>SEC. 104. DESIGNATION OF PERSONS FOR PROHIBITED CONDUCT AND
MANDATORY AND DISCRETIONARY DESIGNATION AND SANCTIONS
AUTHORITIES.</DELETED>
<DELETED> (a) Prohibited Conduct and Mandatory Designation and
Sanctions Authority.--</DELETED>
<DELETED> (1) Conduct described.--Except as provided in
section 207, the President shall designate under this
subsection any person the President determines to--</DELETED>
<DELETED> (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 capable of
delivering such weapons), including any efforts to
manufacture, acquire, possess, develop, transport,
transfer, or use such items;</DELETED>
<DELETED> (B) have knowingly imported, exported, or
reexported to, into, or from North Korea any
significant arms or related materiel, whether directly
or indirectly;</DELETED>
<DELETED> (C) have knowingly provided significant
training, advice, or other services or assistance, or
engaged in significant transactions, related to the
manufacture, maintenance, or use of any arms or related
materiel to be imported, exported, or reexported to,
into, or from North Korea, or following their
importation, exportation, or reexportation to, into, or
from North Korea, whether directly or
indirectly;</DELETED>
<DELETED> (D) have knowingly, directly or
indirectly, imported, exported, or reexported
significant luxury goods to or into North
Korea;</DELETED>
<DELETED> (E) have knowingly engaged in or been
responsible 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, radio or other broadcast
media, Internet or other electronic communications, or
the facilitation or support of intentional frequency
manipulation that would jam or restrict an
international signal;</DELETED>
<DELETED> (F) have knowingly engaged in or been
responsible for serious human rights abuses by the
Government of North Korea, including torture or cruel,
inhuman, or degrading treatment or punishment,
prolonged detention without charges and trial, forced
labor or trafficking in persons, 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;</DELETED>
<DELETED> (G) have knowingly, directly or
indirectly, engaged in acts of money laundering, the
counterfeiting of goods or currency, bulk cash
smuggling, narcotics trafficking, or other illicit
activity that involves or supports the Government of
North Korea or any senior official thereof, whether
directly or indirectly; or</DELETED>
<DELETED> (H) have knowingly attempted to engage in
any of the conduct described in subparagraphs (A)
through (G) of this paragraph.</DELETED>
<DELETED> (2) Effect of designation.--With respect to any
person designated under this subsection, the President--
</DELETED>
<DELETED> (A) shall exercise the authorities of the
International Emergency Economic Powers Act (50 U.S.C.
1705 et seq.) 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
person, including any foreign branch; and</DELETED>
<DELETED> (B) may apply any of the sanctions
described in sections 204, 205(c), and 206.</DELETED>
<DELETED> (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 provided for in this subsection, 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)).</DELETED>
<DELETED> (4) Definition.--In paragraph (1)(F), the term
``trafficking in persons'' has the meaning given the term in
section 103(9) of the Trafficking Victims Protection Act of
2000 (22 U.S.C. 7102(9)).</DELETED>
<DELETED> (b) Discretionary Designation and Sanctions Authority.--
</DELETED>
<DELETED> (1) Conduct described.--Except as provided in
section 207 and paragraph (3) of this subsection, the President
may designate under this subsection any person that the
President determines to--</DELETED>
<DELETED> (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 Security Council
resolution;</DELETED>
<DELETED> (B) have knowingly facilitated the
transfer of any funds, financial assets, or economic
resources of, or property or interests in property of a
person designated under an applicable Executive order,
or by the United Nations Security Council pursuant to
an applicable United Nations Security Council
resolution;</DELETED>
<DELETED> (C) have knowingly facilitated the
transfer of any funds, financial assets, or economic
resources, or any property or interests in property
derived from, involved in, or that has materially
contributed to conduct prohibited by subsection (a) or
an applicable United Nations Security Council
resolution;</DELETED>
<DELETED> (D) have knowingly facilitated any
transaction, including any transaction in bulk cash or
other stores of value, without applying enhanced
monitoring to ensure that such transaction does not
contribute materially to conduct described in
subsection (a) an applicable Executive order, or an
applicable United Nations Security Council
resolution;</DELETED>
<DELETED> (E) have knowingly facilitated any
transactions in cash or monetary instruments or other
stores of value, including through cash couriers
transiting to or from North Korea, used to facilitate
any conduct prohibited by an applicable United Nations
Security Council resolution;</DELETED>
<DELETED> (F) have knowingly, directly or
indirectly, engaged in significant activities
undermining cyber security for, in support of on behalf
of, the Government of North Korea or any senior
official thereof, or have knowingly contributed to the
bribery of an official of the Government of North
Korea, the misappropriation, theft, or embezzlement 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</DELETED>
<DELETED> (G) have knowingly and materially
assisted, sponsored, or provided significant financial,
material, or technological support for, or goods or
services to or in support of, the conduct described in
subparagraphs (A) through (F) of this paragraph or the
conduct described in subparagraphs (A) through (G) of
subsection (a)(1).</DELETED>
<DELETED> (2) Effect of designation.--With respect to any
person designated under this subsection, the President--
</DELETED>
<DELETED> (A) may apply the sanctions described in
section 204;</DELETED>
<DELETED> (B) may apply any of the special measures
described in section 5318A of title 31, United States
Code;</DELETED>
<DELETED> (C) may prohibit any transactions in
foreign exchange that are subject to the jurisdiction
of the United States and in which such person has any
interest;</DELETED>
<DELETED> (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 subject to the
jurisdiction of the United States and involve any
interest of the person; and</DELETED>
<DELETED> (E) may 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 any 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 person,
including any foreign branch.</DELETED>
<DELETED> (3) Limitation.--If the President determines that
a person has engaged in any conduct described in subparagraphs
(A) through (F) of paragraph (1) that may also be construed to
constitute conduct described in subparagraphs (A) through (H)
of subsection (a)(1), the President may not designate the
person under this subsection but rather shall designate the
person under subsection (a).</DELETED>
<DELETED> (c) Blocking of All Property and Interests in Property of
the Government of North Korea and the Worker's Party of Korea.--Except
as provided in section 207, the President shall exercise the
authorities of the International Emergency Economic Powers Act (50
U.S.C. 1705 et seq.) to block all property and interests in property of
the Government of North Korea or the Worker's Party of Korea that on or
after the date of the enactment of this Act come within the United
States, or that come within the possession or control of any United
States person, including any foreign branch.</DELETED>
<DELETED> (d) Application.--The designation of a person under
subsection (a) or (b) and the blocking of property and interests in
property under subsection (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 pursuant to
this section.</DELETED>
<DELETED> (e) Licensing.--</DELETED>
<DELETED> (1) License required.--Not later than 180 days
after the date of enactment of this Act, the President shall
promulgate regulations prohibiting United States persons from
engaging in any transaction involving any property or
services--</DELETED>
<DELETED> (A) in which the Government of North Korea
has an interest;</DELETED>
<DELETED> (B) located in North Korea;</DELETED>
<DELETED> (C) of North Korean origin; or</DELETED>
<DELETED> (D) knowingly transferred, directly or
indirectly, to the Government of North Korea.</DELETED>
<DELETED> (2) 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
any of the conduct described in subsection (a) or subsection
(b).</DELETED>
<DELETED> (3) Licensing authorization.--The President may
issue regulations to authorize--</DELETED>
<DELETED> (A) transactions for the purposes
described in section 207; and</DELETED>
<DELETED> (B) transactions and activities authorized
under North Korean Human Rights Act of 2004 (22 U.S.C.
7801 et seq.).</DELETED>
<DELETED>SEC. 105. FORFEITURE OF PROPERTY.</DELETED>
<DELETED> (a) Amendment to Property Subject to Forfeiture.--Section
981(a)(1) of title 18, United States Code, is amended by adding at the
end the following new subparagraph:</DELETED>
<DELETED> ``(I) Any property, real or personal, that is
involved in a violation or attempted violation, or which
constitutes or is derived from proceeds traceable to a
violation, of section 104(a) of the North Korea Sanctions
Enforcement Act of 2016.''.</DELETED>
<DELETED> (b) Amendment to Definition of Civil Forfeiture Statute.--
Section 983(i)(2)(D) of title 18, United States Code, is amended--
</DELETED>
<DELETED> (1) by striking ``or the International Emergency
Economic Powers Act'' and inserting ``, the International
Emergency Economic Powers Act''; and</DELETED>
<DELETED> (2) by adding at the end before the semicolon the
following: ``, or the North Korea Sanctions Enforcement Act of
2016''.</DELETED>
<DELETED> (c) Amendment to Definition of Specified Unlawful
Activity.--Section 1956(c)(7)(D) of title 18, United States Code, is
amended--</DELETED>
<DELETED> (1) by striking ``or section 92 of the Atomic
Energy Act of 1954'' and inserting ``section 92 of the Atomic
Energy Act of 1954''; and</DELETED>
<DELETED> (2) by adding at the end the following: ``, or
section 104(a) of the North Korea Sanctions Enforcement Act of
2016;''.</DELETED>
<DELETED>TITLE II--SANCTIONS AGAINST NORTH KOREAN PROLIFERATION, HUMAN
RIGHTS ABUSES, ILLICIT ACTIVITIES, AND SIGNIFICANT ACTIVITIES
UNDERMINING CYBER SECURITY</DELETED>
<DELETED>SEC. 201. DETERMINATIONS WITH RESPECT TO NORTH KOREA AS A
JURISDICTION OF PRIMARY MONEY LAUNDERING
CONCERN.</DELETED>
<DELETED> (a) Findings.--Congress makes the following
findings:</DELETED>
<DELETED> (1) The Undersecretary of the Treasury for
Terrorism 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 repeatedly expressed concern
about North Korea's misuse of the international financial
system as follows:</DELETED>
<DELETED> (A) In 2006, the Undersecretary stated
that, given North Korea's ``counterfeiting of U.S.
currency, narcotics trafficking and use of accounts
worldwide to conduct proliferation-related
transactions, the line between illicit and licit North
Korean money is nearly invisible'' and urged financial
institutions worldwide to ``think carefully about the
risks of doing any North Korea-related
business.''.</DELETED>
<DELETED> (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.''.</DELETED>
<DELETED> (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 system,'' and that the
Department of the Treasury would soon introduce new
currency with improved security features to protect
against counterfeiting by the Government of North
Korea.</DELETED>
<DELETED> (2) The Financial Action Task Force, an
intergovernmental body whose purpose is to develop and promote
national and international policies to combat money laundering
and terrorist financing, has repeatedly--</DELETED>
<DELETED> (A) expressed concern at deficiencies in
North Korea's regimes to combat money laundering and
terrorist financing;</DELETED>
<DELETED> (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;</DELETED>
<DELETED> (C) urged all jurisdictions to apply
countermeasures to protect the international financial
system from ongoing and substantial money laundering
and terrorist financing risks emanating from North
Korea;</DELETED>
<DELETED> (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</DELETED>
<DELETED> (E) called on all jurisdictions to protect
against correspondent relationships being used to
bypass or evade countermeasures and risk mitigation
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.</DELETED>
<DELETED> (3) On March 7, 2013, the United Nations Security
Council unanimously adopted Resolution 2094, which--</DELETED>
<DELETED> (A) welcomed the Financial Action Task
Force's recommendation on financial sanctions related
to proliferation, and its guidance on the
implementation of sanctions;</DELETED>
<DELETED> (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</DELETED>
<DELETED> (C) called on Member States to prohibit
North Korean banks from establishing or maintaining
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 Council resolution,
or to the evasion of such prohibitions.</DELETED>
<DELETED> (b) Sense of Congress Regarding the Designation of North
Korea as a Jurisdiction of Primary Money Laundering Concern.--
Congress--</DELETED>
<DELETED> (1) acknowledges the efforts of the United Nations
Security Council to impose limitations on, and require enhanced
monitoring of, transactions involving North Korean financial
institutions that could contribute to sanctioned
activities;</DELETED>
<DELETED> (2) urges the President, in the strongest terms,
to immediately designate 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 activities; and</DELETED>
<DELETED> (3) urges the President to seek the prompt
implementation 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 property that could contribute to
activities sanctioned by applicable United Nations Security
Council resolutions, or to the evasion of sanctions.</DELETED>
<DELETED> (c) Determinations Regarding North Korea.--</DELETED>
<DELETED> (1) In general.--The Secretary of the Treasury
shall, not later than 180 days after the date of the enactment
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 concluding that North Korea is a jurisdiction
of primary money laundering concern.</DELETED>
<DELETED> (2) Special measures.--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
described in paragraphs (1) through (5) of section 5318A(b) of
title 31, United States Code, with respect to the jurisdiction
of North Korea.</DELETED>
<DELETED> (3) Report required.--</DELETED>
<DELETED> (A) In general.--If the Secretary of the
Treasury determines that North Korea is a jurisdiction
of primary money laundering concern, the Secretary of
the Treasury shall, not later than 90 days after the
date on which the Secretary makes such determination,
submit to the appropriate congressional committees a
report on the determination made under paragraph (1)
together with the reasons for that
determination.</DELETED>
<DELETED> (B) Form.--A report or copy of any report
submitted under this paragraph shall be submitted in
unclassified form but may contain a classified
annex.</DELETED>
<DELETED>SEC. 202. ENSURING THE CONSISTENT ENFORCEMENT OF UNITED
NATIONS SECURITY COUNCIL RESOLUTIONS AND FINANCIAL
RESTRICTIONS ON NORTH KOREA.</DELETED>
<DELETED> (a) Findings.--Congress finds that--</DELETED>
<DELETED> (1) all states and jurisdictions are obligated to
implement and enforce applicable United Nations Security
Council resolutions fully and promptly, including by--
</DELETED>
<DELETED> (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 Security
Council resolutions;</DELETED>
<DELETED> (B) blocking any property associated with
an activity prohibited by applicable United Nations
Security Council resolutions; and</DELETED>
<DELETED> (C) preventing any transfer of property
and any provision of financial services that could
contribute to an activity prohibited by applicable
United Nations Security Council resolutions, or to the
evasion of sanctions under such resolutions;</DELETED>
<DELETED> (2) all states and jurisdictions share a common
interest in protecting the international financial system from
the risks of money laundering and illicit transactions
emanating from North Korea;</DELETED>
<DELETED> (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 financial system from these
risks;</DELETED>
<DELETED> (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 Nations Security
Council resolutions and to the protection of the international
financial system;</DELETED>
<DELETED> (5) the report of the Panel of Experts established
pursuant to United Nations Security Council Resolution 1874,
dated June 11, 2013, expressed concern about the ability of
banks in states with less effective regulators and those unable
to afford effective compliance to detect and prevent illicit
transfers involving North Korea;</DELETED>
<DELETED> (6) 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;</DELETED>
<DELETED> (7) 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;</DELETED>
<DELETED> (8) Korea Daesong Bank and Korea Kwangson Banking
Corporation have been designated by the Secretary of the
Treasury and the European Union;</DELETED>
<DELETED> (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</DELETED>
<DELETED> (10) 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.</DELETED>
<DELETED> (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 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--</DELETED>
<DELETED> (1) the cessation of any financial services whose
continuation is inconsistent with applicable United Nations
Security Council resolutions;</DELETED>
<DELETED> (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;</DELETED>
<DELETED> (3) the blocking by all states and jurisdictions,
in accordance with the legal process of the state or
jurisdiction in which the property is held, of any property
required to be blocked under applicable United Nations Security
Council resolutions;</DELETED>
<DELETED> (4) the blocking of any property derived from
illicit activity, from significant activities undermining cyber
security, from the misappropriation, theft, or embezzlement of
public funds by, or for the benefit of, officials of the
Government of North Korea;</DELETED>
<DELETED> (5) the blocking of any property involved in
significant activities undermining cyber security by the
Government of North Korea, directly or indirectly, against
United States persons, or the theft of intellectual property by
the Government of North Korea, directly or indirectly from
United States persons; and</DELETED>
<DELETED> (6) the blocking of any property of persons
directly or indirectly involved in censorship or human rights
abuses by the Government of North Korea.</DELETED>
<DELETED>SEC. 203. PROLIFERATION PREVENTION SANCTIONS.</DELETED>
<DELETED> (a) Export of Certain Goods or Technology.--</DELETED>
<DELETED> (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 technology subject to the Export
Administration Regulations (part 730 of title 15, Code of
Federal Regulations) 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 Secretary of State under section 6(j) of
the Export Administration Act of 1979 (50 U.S.C. App. 2045), as
continued in effect under the International Emergency Economic
Powers Act.</DELETED>
<DELETED> (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 presumption of
denial.</DELETED>
<DELETED> (b) Transactions With Countries Supporting Acts of
International Terrorism.--</DELETED>
<DELETED> (1) Arms export control act prohibitions.--The
prohibitions and restrictions described in section 40 of the
Arms Export Control Act (22 U.S.C. 2780), and other provisions
provided for 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 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) applies.</DELETED>
<DELETED> (2) Financial transactions.--Except as provided in
section 207 of this Act and the North Korean Human Rights Act
of 2004 (22 U.S.C. 7801 et seq.), the penalties provided for in
section 2332d of title 18, United States Code, shall apply to a
United States person that engages in a financial transaction
with the Government of North Korea on or after the date of the
enactment of this Act to the same extent that such penalties
apply to a United States citizen that commits an unlawful act
described in section 2332d of title 18, United States
Code.</DELETED>
<DELETED> (c) Transactions in Lethal Military Equipment.--</DELETED>
<DELETED> (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 military equipment from, the
Government of North Korea.</DELETED>
<DELETED> (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 equipment to the Government of North
Korea.</DELETED>
<DELETED> (3) Waiver.--The President may, on a case-by-case
basis, waive the prohibition under this subsection with respect
to a country for a period of not more than 180 days, and may
renew the waiver for additional periods of not more than 180
days, if the President determines and so reports to the
appropriate congressional committees that it is vital to the
national security interests of the United States to exercise
such waiver authority.</DELETED>
SEC. 204. PROCUREMENT SANCTIONS.
<DELETED> (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 services from any designated
person.</DELETED>
<DELETED> (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 subsection (a) or (b) of section 104. Such
revision shall apply with respect to contracts in an amount greater
than the simplified 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.</DELETED>
<DELETED> (c) Termination of Contracts and Initiation of Suspension
and Debarment Proceeding.--</DELETED>
<DELETED> (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).</DELETED>
<DELETED> (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 affecting 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
committees, within 30 days after the waiver is made, a report
containing the rationale for the waiver and relevant
information supporting the waiver decision.</DELETED>
<DELETED> (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 certification under subsection (b). Upon
determination of suspension, debarment, or proposed debarment,
the agency shall ensure that such person is entered into the
Governmentwide database containing the list of all excluded
parties ineligible for Federal programs pursuant to Executive
Order No. 12549 (31 U.S.C. 6101 note; relating to debarment and
suspension) and Executive Order No. 12689 (31 U.S.C. 6101 note;
relating to debarment and suspension).</DELETED>
<DELETED> (d) Clarification Regarding Certain Products.--The
remedies specified in subsections (a) through (c) shall not apply with
respect to the procurement of eligible 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)).</DELETED>
<DELETED> (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).</DELETED>
<DELETED> (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.</DELETED>
<DELETED>SEC. 205. ENHANCED INSPECTIONS AUTHORITIES.</DELETED>
<DELETED> (a) Report 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
submit to the appropriate congressional committees, the Committee on
Homeland Security of the House of Representatives, and the Committee on
Homeland Security and Governmental Affairs of the Senate, a report
identifying foreign sea ports and airports whose inspections of ships,
aircraft, and conveyances originating 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).</DELETED>
<DELETED> (b) Enhanced Security Targeting Requirements.--Not later
than 180 days after the identification of any sea port or airport
pursuant to subsection (a), the Secretary of Homeland Security shall,
utilizing the Automated Targeting System operated by the National
Targeting Center in U.S. Customs and Border Protection, require
enhanced screening procedures to determine if physical inspections are
warranted of any cargo bound for or landed in the United States that
has been transported through such sea port or airport if there are
reasonable grounds to believe that such cargo contains goods prohibited
under this Act.</DELETED>
<DELETED> (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.</DELETED>
<DELETED>SEC. 206. TRAVEL SANCTIONS.</DELETED>
<DELETED> (a) Aliens Ineligible for Visas, Admission, or Parole.--
</DELETED>
<DELETED> (1) Visas, admission, or parole.--An alien (or an
alien who is a corporate officer of a person) who the Secretary
of State or the Secretary of Homeland Security (or a designee
of one of such Secretaries) knows, or has reasonable grounds to
believe, is described in subsection (a)(1) or (b)(1) of section
104 is--</DELETED>
<DELETED> (A) inadmissible to the United
States;</DELETED>
<DELETED> (B) ineligible to receive a visa or other
documentation to enter the United States; and</DELETED>
<DELETED> (C) otherwise ineligible to be admitted or
paroled into the United States or to receive any other
benefit under the Immigration and Nationality Act (8
U.S.C. 1101 et seq.).</DELETED>
<DELETED> (2) Current visas revoked.--</DELETED>
<DELETED> (A) In general.--The issuing consular
officer, 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 described in
subsection (a)(1) or (b)(1) of section 104 regardless
of when issued.</DELETED>
<DELETED> (B) Effect of revocation.--A revocation
under subparagraph (A)--</DELETED>
<DELETED> (i) shall take effect immediately;
and</DELETED>
<DELETED> (ii) shall automatically cancel
any other valid visa or entry documentation
that is in the alien's possession.</DELETED>
<DELETED> (b) Exception To Comply With United Nations Headquarters
Agreement.--Sanctions under subsection (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.</DELETED>
<DELETED>SEC. 207. EXEMPTIONS, WAIVERS, AND REMOVALS OF
DESIGNATION.</DELETED>
<DELETED> (a) Exemptions.--</DELETED>
<DELETED> (1) Mandatory exemptions.--The following
activities shall be exempt from sanctions under section
104:</DELETED>
<DELETED> (A) Activities subject to the reporting
requirements 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.</DELETED>
<DELETED> (B) Any transaction necessary to comply
with United States obligations under the Agreement
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 Relations, signed April 24, 1963, and entered
into force on March 19, 1967, or under other
international agreements.</DELETED>
<DELETED> (2) Discretionary exemptions.--The following
activities may be exempt from sanctions under section 104 as
determined by the President:</DELETED>
<DELETED> (A) Any financial transaction the
exclusive purpose for which is to provide humanitarian
assistance to the people of North Korea.</DELETED>
<DELETED> (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.</DELETED>
<DELETED> (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 Export Administration Regulations
(part 730 of title 15, Code of Federal Regulations) and
not controlled under--</DELETED>
<DELETED> (i) the Export Administration Act
of 1979 (50 U.S.C. App. 2401 et seq.), as
continued in effect under the International
Emergency Economic Powers Act (50 U.S.C. 1701
et seq.);</DELETED>
<DELETED> (ii) the Arms Export Control Act
(22 U.S.C. 2751 et seq.);</DELETED>
<DELETED> (iii) part B of title VIII of the
Nuclear Proliferation Prevention Act of 1994
(22 U.S.C. 6301 et seq.); or</DELETED>
<DELETED> (iv) the Chemical and Biological
Weapons Control and Warfare Elimination Act of
1991 (22 U.S.C. 5601 et seq.).</DELETED>
<DELETED> (b) Waiver.--The President may waive, on a case-by-case
basis, the imposition of sanctions for a period of not more than 1
year, and may renew that waiver for additional periods of not more than
1 year, any sanction or other measure under section 104, 204, 205, 206,
or 303 if the President submits to the appropriate congressional
committees a written determination that the waiver meets one or more of
the following requirements:</DELETED>
<DELETED> (1) The waiver is important to the economic or
national security interests of the United States.</DELETED>
<DELETED> (2) The waiver will further the enforcement of
this Act or is for an important law enforcement
purpose.</DELETED>
<DELETED> (3) The waiver is for an important humanitarian
purpose, including any of the purposes described in section 4
of the North Korean Human Rights Act of 2004 (22 U.S.C.
7802).</DELETED>
<DELETED> (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 that the designated person has verifiably ceased
its participation 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.</DELETED>
<DELETED> (d) Financial Services for Certain Activities.--The
President may promulgate regulations, rules, and policies as may be
necessary to facilitate the provision of financial 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.</DELETED>
<DELETED>SEC. 208. REPORT ON THOSE RESPONSIBLE FOR KNOWINGLY ENGAGING
IN SIGNIFICANT ACTIVITIES UNDERMINING CYBER
SECURITY.</DELETED>
<DELETED> (a) In General.--The President shall submit to the
appropriate congressional committees a report on significant activities
undermining cyber security conducted, or otherwise ordered or
controlled, directly or indirectly, by the Government of North Korea,
including--</DELETED>
<DELETED> (1) the identity and nationality of persons that
have knowingly engaged in, directed, or provided material
support to significant activities undermining cyber security by
the Government of North Korea;</DELETED>
<DELETED> (2) the conduct engaged in by each person
identified;</DELETED>
<DELETED> (3) the extent to which a foreign government has
provided material support to significant activities undermining
cyber security conducted, or otherwise ordered or controlled
by, the Government of North Korea; and</DELETED>
<DELETED> (4) the efforts made by the United States to
engage foreign governments to halt the capability of North
Korea to conduct significant activities undermining cyber
security.</DELETED>
<DELETED> (b) Submission and Form.--</DELETED>
<DELETED> (1) Submission.--The report required under
subsection (a) shall be submitted not later than 90 days after
the date of enactment of this Act, and every 180 days
thereafter for a period not to exceed 3 years.</DELETED>
<DELETED> (2) Form.--The report required under subsection
(a) shall be submitted in an unclassified form, but may contain
a classified annex.</DELETED>
<DELETED>SEC. 209. SENSE OF CONGRESS THAT TRILATERAL COOPERATION AMONG
THE UNITED STATES, JAPAN, AND THE REPUBLIC OF KOREA IS
CRUCIAL TO THE STABILITY OF THE ASIA-PACIFIC
REGION.</DELETED>
<DELETED> (a) Findings.--Congress finds the following:</DELETED>
<DELETED> (1) The United States, Japan, and the Republic of
Korea (South Korea) share the values of democracy, free and
open markets, the rule of law, and respect for human
rights.</DELETED>
<DELETED> (2) The alliance relationship between the United
States, Japan, and South Korea are critical to peace and
security in the Asia-Pacific region.</DELETED>
<DELETED> (3) The United States, Japan, and South Korea are
committed to continuing diplomatic efforts to ensure continued
peace and stability in the Asia-Pacific region.</DELETED>
<DELETED> (4) On December 28, 2014, the United States,
Japan, and South Korea finalized a trilateral military
intelligence-sharing arrangement concerning the nuclear and
missile threats posed by North Korea.</DELETED>
<DELETED> (5) The trilateral military intelligence-sharing
arrangement reinforces and strengthens the commitment between
the United States, Japan, and South Korea toward a Korean
Peninsula free of nuclear weapons.</DELETED>
<DELETED> (b) Sense of Congress.--It is the sense of Congress that
North Korea's nuclear and ballistic missile programs are of mutual
concern to the United States, Japan, and South Korea and a trilateral
military intelligence-sharing arrangement is essential to the security
of each nation and the Asia-Pacific region.</DELETED>
<DELETED>SEC. 210. REPORT ON NUCLEAR PROGRAM COOPERATION BETWEEN NORTH
KOREA AND IRAN.</DELETED>
<DELETED> (a) In General.--The President shall submit to the
Committee on Foreign Affairs of the House of Representatives and the
Committee on Foreign Relations of the Senate a report on cooperation
between North Korea and Iran on their nuclear programs, including the
identity of Iranian and North Korean persons that have knowingly
engaged in or directed the provision of material support or the
exchange of information between North Korea and Iran on their
respective nuclear programs.</DELETED>
<DELETED> (b) Submission and Form.--</DELETED>
<DELETED> (1) Submission.--The report required under
subsection (a) shall be submitted not later than 90 days after
the date of enactment of this Act.</DELETED>
<DELETED> (2) Form.--The report required under subsection
(a) shall be submitted in an unclassified form, but may contain
a classified annex.</DELETED>
<DELETED>TITLE III--PROMOTION OF HUMAN RIGHTS</DELETED>
<DELETED>SEC. 301. INFORMATION TECHNOLOGY.</DELETED>
<DELETED> Section 104 of the North Korean Human Rights Act of 2004
(22 U.S.C. 7814) is amended--</DELETED>
<DELETED> (1) in subsection (a), by striking ``radios
capable of receiving broadcasting'' and inserting ``radio,
Internet, and electronic mass communications capable of
receiving content''; and</DELETED>
<DELETED> (2) by adding after subsection (c) the following
new subsection:</DELETED>
<DELETED> ``(d) Information Technology Study.--</DELETED>
<DELETED> ``(1) In general.--Not later than 180 days after
the date of the enactment of this subsection, the President
shall submit to the appropriate congressional committees a
report setting forth a detailed plan for making unrestricted,
unmonitored, and inexpensive, radio, Internet, and electronic
mass communications available to the people of North
Korea.</DELETED>
<DELETED> ``(2) Form.--The report required by paragraph (1)
shall be submitted in unclassified form, but may contain a
classified annex.''.</DELETED>
<DELETED>SEC. 302. REPORT ON NORTH KOREAN PRISON CAMPS.</DELETED>
<DELETED> (a) In General.--The Secretary of State shall submit to
the appropriate congressional committees a report describing, with
respect to each political prison camp in North Korea to the extent
information is available--</DELETED>
<DELETED> (1) the camp's estimated prisoner
population;</DELETED>
<DELETED> (2) the camp's geographical coordinates;</DELETED>
<DELETED> (3) the reasons for confinement of the
prisoners;</DELETED>
<DELETED> (4) the camp's primary industries and products,
and the end users of any goods produced in such camp;</DELETED>
<DELETED> (5) the natural persons and agencies responsible
for conditions in the camp;</DELETED>
<DELETED> (6) the conditions under which prisoners are
confined, with respect to the adequacy of food, shelter,
medical care, working conditions, and reports of ill-treatment
of prisoners; and</DELETED>
<DELETED> (7) imagery, to include satellite imagery of each
such camp, in a format that, if published, would not compromise
the sources and methods used by the intelligence agencies of
the United States to capture geospatial imagery.</DELETED>
<DELETED> (b) Form.--The report required under subsection (a) may be
included in the first report required to be submitted to Congress after
the date of the enactment of this Act under sections 116(d) and 502B(b)
of the Foreign Assistance Act of 1961 (22 U.S.C. 2151n(d) and 2304(b))
(relating to the annual human rights report).</DELETED>
<DELETED>SEC. 303. REPORT ON PERSONS WHO ARE RESPONSIBLE FOR SERIOUS
HUMAN RIGHTS ABUSES OR CENSORSHIP IN NORTH
KOREA.</DELETED>
<DELETED> (a) In General.--The Secretary of State shall submit to
the appropriate congressional committees a report that contains an
identification of each person the Secretary determines to be
responsible for serious human rights abuses or censorship in North
Korea and a description of such abuses or censorship engaged in by such
person. The report shall include a description of actions taken by the
Department of State to implement or support the recommendations of the
Commission of Inquiry's Report on Human Rights in the Democratic
People's Republic of North Korea, including efforts to press China and
other countries to implement Commission recommendations.</DELETED>
<DELETED> (b) Consideration.--In preparing the report required under
subsection (a), the Secretary of State shall give due consideration to
the findings of the United Nations Commission of Inquiry on Human
Rights in North Korea, and shall make specific findings with respect to
the responsibility of Kim Jong Un, and of each natural person who is a
member of the National Defense Commission of North Korea, or the
Organization and Guidance Department of the Workers' Party of Korea,
for serious human rights abuses and censorship.</DELETED>
<DELETED> (c) Designation of Persons.--The President shall designate
under section 104(a) any person listed in the report required under
subsection (a) as responsible for serious human rights abuses or
censorship in North Korea.</DELETED>
<DELETED> (d) Submission and Form.--</DELETED>
<DELETED> (1) Submission.--The report required under
subsection (a) shall be submitted not later than 90 days after
the date of the enactment of this Act, and every 180 days
thereafter for a period not to exceed 3 years, shall be
included in each report required under sections 116(d) and
502B(b) of the Foreign Assistance Act of 1961 (22 U.S.C.
2151n(d) and 2304(b)) (relating to the annual human rights
report).</DELETED>
<DELETED> (2) Form.--The report required under subsection
(a) shall be submitted in unclassified form, but may include a
classified annex. The Secretary of State shall also publish the
unclassified part of the report on the Department of State's
Web site.</DELETED>
<DELETED>TITLE IV--GENERAL AUTHORITIES</DELETED>
<DELETED>SEC. 401. SUSPENSION OF SANCTIONS AND OTHER
MEASURES.</DELETED>
<DELETED> (a) In General.--Any sanction or other measure provided
for in title I (or any amendment made by title I) or title II may be
suspended for up to 365 days upon certification by the President to the
appropriate congressional committees that the Government of North Korea
has--</DELETED>
<DELETED> (1) verifiably ceased its counterfeiting of United
States currency, including the surrender or destruction of
specialized materials and equipment used for or particularly
suitable for counterfeiting;</DELETED>
<DELETED> (2) taken significant steps toward financial
transparency to comply with generally accepted protocols to
cease and prevent the laundering of monetary
instruments;</DELETED>
<DELETED> (3) taken significant steps toward verification of
its compliance with United Nations Security Council Resolutions
1695, 1718, 1874, 2087, and 2094;</DELETED>
<DELETED> (4) taken significant steps toward accounting for
and repatriating the citizens of other countries abducted or
unlawfully held captive by the Government of North Korea or
detained in violation of the 1953 Armistice
Agreement;</DELETED>
<DELETED> (5) accepted and begun to abide by internationally
recognized standards for the distribution and monitoring of
humanitarian aid;</DELETED>
<DELETED> (6) provided credible assurances that it will not
support further acts of international terrorism;</DELETED>
<DELETED> (7) taken significant and verified steps to
improve living conditions in its political prison camps;
and</DELETED>
<DELETED> (8) made significant progress in planning for
unrestricted family reunification meetings, including for those
individuals among the two million strong Korean-American
community who maintain family ties with relatives in North
Korea.</DELETED>
<DELETED> (b) Renewal of Suspension.--The suspension described in
subsection (a) may be renewed for additional consecutive periods of 180
days upon certification by the President to the appropriate
congressional committees that the Government of North Korea has
continued to comply with the conditions described in subsection (a)
during the previous year.</DELETED>
<DELETED>SEC. 402. TERMINATION OF SANCTIONS AND OTHER
MEASURES.</DELETED>
<DELETED> Any sanction or other measure provided for in title I (or
any amendment made by title I) or title II shall terminate on the date
on which the President determines and certifies to the appropriate
congressional committees that the Government of North Korea has met the
requirements of section 401, and has also--</DELETED>
<DELETED> (1) completely, verifiably, and irreversibly
dismantled all of its nuclear, chemical, biological, and
radiological weapons programs, including all programs for the
development of systems designed in whole or in part for the
delivery of such weapons;</DELETED>
<DELETED> (2) released all political prisoners, including
the citizens of North Korea detained in North Korea's political
prison camps;</DELETED>
<DELETED> (3) ceased its censorship of peaceful political
activity;</DELETED>
<DELETED> (4) taken significant steps toward the
establishment of an open, transparent, and representative
society;</DELETED>
<DELETED> (5) fully accounted for and repatriated all
citizens of all nations abducted or unlawfully held captive by
the Government of North Korea or detained in violation of the
1953 Armistice Agreement; and</DELETED>
<DELETED> (6) agreed with the Financial Action Task Force on
a plan of action to address deficiencies in its anti-money
laundering regime and begun to implement this plan of
action.</DELETED>
<DELETED>SEC. 403. AUTHORITY TO CONSOLIDATE REPORTS.</DELETED>
<DELETED> Any or all reports required to be submitted to appropriate
congressional committees under this Act or any amendment made by this
Act that are subject to a deadline for submission consisting of the
same unit of time may be consolidated into a single report that is
submitted to appropriate congressional committees pursuant to such
deadline.</DELETED>
<DELETED>SEC. 404. REGULATIONS.</DELETED>
<DELETED> (a) In General.--The President is authorized to promulgate
such rules and regulations as may be necessary to carry out the
provisions of this Act (which may include regulatory exceptions),
including under sections 203 and 205 of the International Emergency
Economic Powers Act (50 U.S.C. 1702 and 1704).</DELETED>
<DELETED> (b) Rule of Construction.--Nothing in this Act or any
amendment made by this Act shall be construed to limit the authority of
the President pursuant to an applicable Executive order or otherwise
pursuant to the International Emergency Economic Powers Act (50 U.S.C.
1701 et seq.).</DELETED>
<DELETED>SEC. 405. NO ADDITIONAL FUNDS AUTHORIZED.</DELETED>
<DELETED> No additional funds are authorized to carry out the
requirements of this Act and the amendments made by this Act.</DELETED>
<DELETED>SEC. 406. EFFECTIVE DATE.</DELETED>
<DELETED> Except as otherwise provided in this Act, this Act and the
amendments made by this Act shall take effect on the date of the
enactment of this Act.</DELETED>
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``North Korea
Sanctions and Policy Enhancement Act of 2016''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings; purposes.
Sec. 3. Definitions.
TITLE I--INVESTIGATIONS, PROHIBITED CONDUCT, AND PENALTIES
Sec. 101. Statement of policy.
Sec. 102. Investigations.
Sec. 103. Reporting requirements.
Sec. 104. Designation of persons.
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 primary 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 inspection authorities.
Sec. 206. Travel sanctions.
Sec. 207. Travel recommendations for United States citizens to North
Korea.
Sec. 208. Exemptions, waivers, and removals of designation.
Sec. 209. Report on and imposition of sanctions to address persons
responsible for knowingly engaging in
significant activities undermining
cybersecurity.
Sec. 210. Codification of sanctions with respect to North Korean
activities undermining cybersecurity.
Sec. 211. Sense of Congress on trilateral cooperation between the
United States, South Korea, and Japan.
TITLE III--PROMOTION OF HUMAN RIGHTS
Sec. 301. Information technology.
Sec. 302. Strategy to promote North Korean human rights.
Sec. 303. Report on North Korean prison camps.
Sec. 304. Report on and imposition of sanctions with respect to 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. Authorization of appropriations.
Sec. 404. Rulemaking.
Sec. 405. Authority to consolidate reports.
Sec. 406. Effective date.
SEC. 2. FINDINGS; PURPOSES.
(a) Findings.--Congress finds the following:
(1) The Government of North Korea--
(A) has repeatedly violated its commitments to the
complete, verifiable, and irreversible dismantlement of
its nuclear weapons programs; and
(B) has willfully violated multiple United Nations
Security Council resolutions calling for North Korea to
cease development, testing, and production of weapons
of mass destruction.
(2) Based on its past actions, including the transfer of
sensitive nuclear and missile technology to state sponsors of
terrorism, North Korea poses a grave risk for the proliferation
of nuclear weapons and other weapons of mass destruction.
(3) The Government of North Korea has been implicated
repeatedly in money laundering and other illicit activities,
including--
(A) prohibited arms sales;
(B) narcotics trafficking;
(C) the counterfeiting of United States currency;
(D) significant activities undermining
cybersecurity; and
(E) the counterfeiting of intellectual property of
United States persons.
(4) North Korea has--
(A) unilaterally withdrawn from the Agreement
Concerning a Military Armistice in Korea, signed at
Panmunjom July 27, 1953 (commonly referred to as the
``Korean War Armistice Agreement''); and
(B) committed provocations against South Korea--
(i) by sinking the warship Cheonan and
killing 46 of her crew on March 26, 2010;
(ii) by shelling Yeonpyeong Island and
killing 4 South Korean civilians on November
23, 2010;
(iii) by its involvement in the
``DarkSeoul'' cyberattacks against the
financial and communications interests of South
Korea on March 20, 2013; and
(iv) by planting land mines near a guard
post in the South Korean portion of the
demilitarized zone that maimed 2 South Korean
soldiers on August 4, 2015.
(5) North Korea maintains a system of brutal political
prison camps that contain as many as 200,000 men, women, and
children, who are--
(A) kept in atrocious living conditions with
insufficient food, clothing, and medical care; and
(B) under constant fear of torture or arbitrary
execution.
(6) North Korea has prioritized weapons programs and the
procurement of luxury goods--
(A) in defiance of United Nations Security Council
Resolutions 1695 (2006), 1718 (2006), 1874 (2009), 2087
(2013), and 2094 (2013); and
(B) in gross disregard of the needs of the people
of North Korea.
(7) Persons, including financial institutions, who engage
in transactions with, or provide financial services to, the
Government of North Korea and its financial institutions
without establishing sufficient financial safeguards against
North Korea's use of such transactions to promote
proliferation, weapons trafficking, human rights violations,
illicit activity, and the purchase of luxury goods--
(A) aid and abet North Korea's misuse of the
international financial system; and
(B) violate the intent of the United Nations
Security Council resolutions referred to in paragraph
(6)(A).
(8) The Government of North Korea has provided technical
support and conducted destructive and coercive cyberattacks,
including against Sony Pictures Entertainment and other United
States persons.
(9) The conduct of the Government of North Korea poses an
imminent threat to--
(A) the security of the United States and its
allies;
(B) the global economy;
(C) the safety of members of the United States
Armed Forces;
(D) the integrity of the global financial system;
(E) the integrity of global nonproliferation
programs; and
(F) the people of North Korea.
(10) The Government of North Korea has sponsored acts of
international terrorism, including--
(A) attempts to assassinate defectors and human
rights activists; and
(B) the shipment of weapons to terrorists and state
sponsors of terrorism.
(b) Purposes.--The purposes of this Act are--
(1) to use nonmilitary means to address the crisis
described in subsection (a);
(2) to provide diplomatic leverage to negotiate necessary
changes in the conduct of the Government of North Korea;
(3) to ease the suffering of the people of North Korea; and
(4) to reaffirm the purposes set forth in section 4 of the
North Korean Human Rights Act of 2004 (22 U.S.C. 7802).
SEC. 3. DEFINITIONS.
In this Act:
(1) Applicable executive order.--The term ``applicable
Executive order'' means--
(A) Executive Order 13382 (50 U.S.C. 1701 note;
relating to blocking property of weapons of mass
destruction proliferators and their supporters),
Executive Order 13466 (50 U.S.C. 1701 note; relating to
continuing certain restrictions with respect to North
Korea and North Korean nationals), Executive Order
13551 (50 U.S.C. 1701 note; relating to blocking
property of certain persons with respect to North
Korea), Executive Order 13570 (50 U.S.C. 1701 note;
relating to prohibiting certain transactions with
respect to North Korea), Executive Order 13619 (50
U.S.C. 1701 note; relating to blocking property of
persons threatening the peace, security, or stability
of Burma), Executive Order 13687 (50 U.S.C. 1701 note;
relating to imposing additional sanctions with respect
to North Korea), or Executive Order 13694 (50 U.S.C.
1701 note; relating to blocking the property of certain
persons engaging in significant malicious cyber-enabled
activities), to the extent that such Executive order--
(i) authorizes the imposition of sanctions
on persons for conduct with respect to North
Korea;
(ii) prohibits transactions or activities
involving the Government of North Korea; or
(iii) otherwise imposes sanctions with
respect to North Korea; and
(B) any Executive order adopted on or after the
date of the enactment of this Act, to the extent that
such Executive order--
(i) authorizes the imposition of sanctions
on persons for conduct with respect to North
Korea;
(ii) prohibits transactions or activities
involving the Government of North Korea; or
(iii) otherwise imposes sanctions with
respect to North Korea.
(2) Applicable united nations security council
resolution.--The term ``applicable United Nations Security
Council resolution'' means--
(A) United Nations Security Council Resolution 1695
(2006), 1718 (2006), 1874 (2009), 2087 (2013), or 2094
(2013); and
(B) any United Nations Security Council resolution
adopted on or after the date of the enactment of this
Act that--
(i) authorizes the imposition of sanctions
on persons for conduct with respect to North
Korea;
(ii) prohibits transactions or activities
involving the Government of North Korea; or
(iii) otherwise imposes sanctions with
respect to North Korea.
(3) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Foreign Relations and the
Committee on Banking, Housing, and Urban Affairs of the
Senate; and
(B) the Committee on Foreign Affairs, the Committee
on Financial Services, and the Committee on Ways and
Means of the House of Representatives.
(4) Designated person.--The term ``designated person''
means a person designated under subsection (a) or (b) of
section 104 for purposes of applying 1 or more of the sanctions
described in title I or II with respect to the person.
(5) Government of north korea.--The term ``Government of
North Korea'' means the Government of North Korea and its
agencies, instrumentalities, and controlled entities.
(6) Humanitarian assistance.--The term ``humanitarian
assistance'' means assistance to meet humanitarian needs,
including needs for food, medicine, medical supplies, clothing,
and shelter.
(7) Intelligence community.--The term ``intelligence
community'' has the meaning given such term in section 3(4) of
the National Security Act of 1947 (50 U.S.C. 3003(4)).
(8) Luxury goods.--The term ``luxury goods''--
(A) has the meaning given such term in section
746.4(b)(1) of title 15, Code of Federal Regulations;
and
(B) includes the items listed in Supplement No. 1
to part 746 of such title, and any similar items.
(9) Monetary instruments.--The term ``monetary
instruments'' has the meaning given such term in section
5312(a) of title 31, United States Code.
(10) North korea.--The term ``North Korea'' means the
Democratic People's Republic of Korea.
(11) North korean financial institution.--The term ``North
Korean financial institution'' means any financial institution
that--
(A) is organized under the laws of North Korea or
any jurisdiction within North Korea (including a
foreign branch of such an institution);
(B) is located in North Korea, except for a
financial institution that is excluded by the President
in accordance with section 208(c);
(C) is owned or controlled by the Government of
North Korea, regardless of location; or
(D) is owned or controlled by a financial
institution described in subparagraph (A), (B), or (C),
regardless of location.
(12) Significant activities undermining cybersecurity.--The
term ``significant activities undermining cybersecurity''
includes--
(A) significant efforts to--
(i) deny access to or degrade, disrupt, or
destroy an information and communications
technology system or network; or
(ii) exfiltrate information from such a
system or network without authorization;
(B) significant destructive malware attacks;
(C) significant denial of service activities; and
(D) such other significant activities described in
regulations promulgated to implement section 104.
(13) South korea.--The term ``South Korea'' means the
Republic of Korea.
(14) United states person.--The term ``United States
person'' means--
(A) a United States citizen or an alien lawfully
admitted for permanent residence to the United States;
or
(B) an entity organized under the laws of the
United States or of any jurisdiction within the United
States, including a foreign branch of such an entity.
TITLE I--INVESTIGATIONS, PROHIBITED CONDUCT, AND PENALTIES
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 member states of the United Nations to
fully and promptly implement United Nations Security Council
Resolution 2094 (2013);
(2) to sanction the persons, including financial
institutions, that facilitate proliferation, illicit
activities, arms trafficking, cyberterrorism, 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 member states do not facilitate proliferation,
arms trafficking, kleptocracy, or imports of luxury goods by
the Government of North Korea;
(4) to deny the Government of North Korea access to the
funds it uses to develop or obtain nuclear weapons, ballistic
missiles, cyberwarfare capabilities, and luxury goods instead
of providing for the needs of the people of North Korea; and
(5) to enforce sanctions in a manner that does not
significantly hinder or delay the efforts of legitimate United
States or foreign humanitarian organizations from providing
assistance to meet the needs of civilians facing humanitarian
crisis, including access to food, health care, shelter, and
clean drinking water, to prevent or alleviate human suffering.
SEC. 102. INVESTIGATIONS.
(a) Initiation.--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).
(b) Personnel.--The President may direct the Secretary of State,
the Secretary of the Treasury, and the heads of other Federal
departments and agencies as may be necessary to assign sufficient
experienced and qualified investigators, attorneys, and technical
personnel--
(1) to investigate the conduct described in subsections (a)
and (b) of section 104; and
(2) to coordinate and ensure the effective enforcement of
this Act.
SEC. 103. REPORTING REQUIREMENTS.
(a) Presidential Briefings to Congress.--Not later than 180 days
after the date of the enactment of this Act, and periodically
thereafter, the President shall provide a briefing to the appropriate
congressional committees on efforts to implement this Act.
(b) Report From Secretary of State.--Not later than 180 days after
the date of the enactment of this Act, the Secretary of State shall
conduct, coordinate, and submit to Congress a comprehensive report on
United States policy towards North Korea that--
(1) is based on a full and complete interagency review of
current policies and possible alternatives, including with
respect to North Korea's weapons of mass destruction and
missile programs, human rights atrocities, and significant
activities undermining cybersecurity; and
(2) includes recommendations for such legislative or
administrative action as the Secretary considers appropriate
based on the results of the review.
SEC. 104. DESIGNATION OF PERSONS.
(a) Mandatory Designations.--Except as provided in section 208, the
President shall designate under this subsection any person that the
President determines--
(1) knowingly, directly or indirectly, imports, exports, or
reexports to, into, or from North Korea any goods, services, or
technology controlled for export by the United States because
of the use of such goods, services, or technology for weapons
of mass destruction or delivery systems for such weapons and
materially contributes to the use, development, production,
possession, or acquisition by any person of a nuclear,
radiological, chemical, or biological weapon or any device or
system designed in whole or in part to deliver such a weapon;
(2) knowingly, directly or indirectly, provides training,
advice, or other services or assistance, or engages in
significant financial transactions, relating to the
manufacture, maintenance, or use of any such weapon, device, or
system to be imported, exported, or reexported to, into, or
from North Korea;
(3) knowingly, directly or indirectly, imports, exports, or
reexports luxury goods to or into North Korea;
(4) knowingly engages in, is responsible for, or
facilitates censorship by the Government of North Korea;
(5) knowingly engages in, is responsible for, or
facilitates serious human rights abuses by the Government of
North Korea;
(6) knowingly, directly or indirectly, engages in money
laundering, the counterfeiting of goods or currency, bulk cash
smuggling, or narcotics trafficking that supports the
Government of North Korea or any senior official or person
acting for or on behalf of that Government;
(7) knowingly engages in significant activities undermining
cybersecurity through the use of computer networks or systems
against foreign persons, governments, or other entities on
behalf of the Government of North Korea;
(8) knowingly, directly or indirectly, sells, supplies, or
transfers to or from the Government of North Korea or any
person acting for or on behalf of that Government, a
significant amount of precious metal, graphite, raw or semi-
finished metals or aluminum, steel, coal, or software, for use
by or in industrial processes directly related to weapons of
mass destruction and delivery systems for such weapons, other
proliferation activities, the Korean Workers' Party, armed
forces, internal security, or intelligence activities, or the
operation and maintenance of political prison camps or forced
labor camps, including outside of North Korea;
(9) knowingly, directly or indirectly, imports, exports, or
reexports to, into, or from North Korea any arms or related
materiel; or
(10) knowingly attempts to engage in any of the conduct
described in paragraphs (1) through (9).
(b) Additional Discretionary Designations.--
(1) Prohibited conduct described.--Except as provided in
section 208, the President may designate under this subsection
any person that the President determines--
(A) knowingly engages in, contributes to, assists,
sponsors, or provides financial, material or
technological support for, or goods and services in
support of, any person designated pursuant to an
applicable United Nations Security Council resolution;
(B) knowingly contributed to--
(i) the bribery of an official of the
Government of North Korea or any person acting
for on behalf of that official;
(ii) the misappropriation, theft, or
embezzlement of public funds by, or for the
benefit of, an official of the Government of
North Korea or any person acting for or on
behalf of that official; or
(iii) the use of any proceeds of any
activity described in clause (i) or (ii); or
(C) knowingly and materially assisted, sponsored,
or provided significant financial, material, or
technological support for, or goods or services to or
in support of, the activities described in subparagraph
(A) or (B).
(2) Effect of designation.--With respect to any person
designated under this subsection, the President may--
(A) apply the sanctions described in section 204,
205(c), or 206 to the person to the same extent and in
the same manner as if the person were designated under
subsection (a);
(B) apply any applicable special measures described
in section 5318A of title 31, United States Code;
(C) prohibit any transactions in foreign exchange--
(i) that are subject to the jurisdiction of
the United States; and
(ii) in which such person has any interest;
and
(D) 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--
(i) are subject to the jurisdiction of the
United States; and
(ii) involve any interest of such person.
(c) Asset Blocking.--The President shall exercise all of the powers
granted to the President under the International Emergency Economic
Powers Act (50 U.S.C. 1701 et seq.) to the extent necessary to block
and prohibit all transactions in property and interests in property of
a designated person, the Government of North Korea, or the Workers'
Party of Korea, if such property and interests in property are in the
United States, come within the United States, or are or come within the
possession or control of a United States person.
(d) Application to Subsidiaries and Agents.--The designation of a
person under subsection (a) or (b) and the blocking of property and
interests in property under subsection (c) shall apply with respect to
a person who is determined to be owned or controlled by, or to have
acted or purported to have acted for or on behalf of, directly or
indirectly, any person whose property and interests in property are
blocked pursuant to this section.
(e) Transaction Licensing.--The President shall deny or revoke any
license for any transaction that the President determines to lack
sufficient financial controls to ensure that such transaction will not
facilitate any activity described in subsection (a) or (b).
(f) Penalties.--The penalties provided for in subsections (b) and
(c) of section 206 of the International Emergency Economic Powers Act
(50 U.S.C. 1705) shall apply to any person who violates, attempts to
violate, conspires to violate, or causes a violation of any prohibition
of this section, or an order or regulation prescribed under this
section, to the same extent that such penalties apply to a person that
commits an unlawful act described in section 206(a) of such Act (50
U.S.C. 1705(a)).
SEC. 105. FORFEITURE OF PROPERTY.
(a) Amendment to Property Subject to Forfeiture.--Section 981(a)(1)
of title 18, United States Code, is amended by adding at the end the
following:
``(I) Any property, real or personal, that is involved in a
violation or attempted violation, or which constitutes or is
derived from proceeds traceable to a prohibition imposed
pursuant to section 104(a) of the North Korea Sanctions and
Policy Enhancement Act of 2016.''.
(b) Amendment to Definition of Civil Forfeiture Statute.--Section
983(i)(2)(D) of title 18, United States Code, is amended to read as
follows:
``(D) the Trading with the Enemy Act (50 U.S.C.
4301 et seq.), the International Emergency Economic
Powers Act (50 U.S.C. 1701 et seq.), or the North Korea
Sanctions Enforcement Act of 2016; or''.
(c) Amendment to Definition of Specified Unlawful Activity.--
Section 1956(c)(7)(D) of title 18, United States Code, is amended--
(1) by striking ``or section 92 of'' and inserting
``section 92 of''; and
(2) by adding at the end the following: ``, or section
104(a) of the North Korea Sanctions Enforcement Act of 2016
(relating to prohibited activities with respect to North
Korea);''.
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 PRIMARY MONEY LAUNDERING CONCERN.
(a) Findings.--Congress makes the following findings:
(1) The Under Secretary of the Treasury for Terrorism 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, and has repeatedly expressed concern about North
Korea's misuse of the international financial system--
(A) in 2006--
(i) stated, ``Given [North Korea's]
counterfeiting of U.S. currency, narcotics
trafficking and use of accounts world-wide to
conduct proliferation-related transactions, the
line between illicit and licit North Korean
money is nearly invisible.''; and
(ii) urged financial institutions worldwide
to ``think carefully about the risks of doing
any North Korea-related business'';
(B) in 2011, stated that North Korea--
(i) ``remains intent on engaging in
proliferation, selling arms as well as bringing
in material''; and
(ii) was ``aggressively pursuing the effort
to establish front companies.''; and
(C) in 2013, stated--
(i) 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 system''; and
(ii) the Department of the Treasury would
soon introduce new currency with improved
security features to protect against
counterfeiting by the Government of North
Korea.
(2) The Financial Action Task Force, an intergovernmental
body whose purpose is to develop and promote national and
international policies to combat money laundering and terrorist
financing, has repeatedly--
(A) expressed concern at deficiencies in North
Korea's regimes to combat money laundering and
terrorist financing;
(B) urged North Korea to adopt a plan of action to
address significant deficiencies in those regimes and
the serious threat those deficiencies pose to the
integrity of the international financial system;
(C) urged all jurisdictions to apply
countermeasures to protect the international financial
system from ongoing and substantial money laundering
and terrorist financing risks emanating 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--
(i) to protect against correspondent
relationships being used to bypass or evade
countermeasures and risk mitigation practices;
and
(ii) to take into account money laundering
and terrorist financing risks when considering
requests by North Korean financial institutions
to open branches and subsidiaries in their
respective jurisdictions.
(3) On March 7, 2013, the United Nations Security Council
unanimously adopted Resolution 2094, which--
(A) welcomed the Financial Action Task Force's--
(i) recommendation on financial sanctions
related to proliferation; and
(ii) guidance on the implementation of such
sanctions;
(B) decided that United Nations 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 upon United Nations member states to
prohibit North Korean financial institutions from
establishing or maintaining correspondent relationships
with financial institutions in their respective
jurisdictions to prevent the provision of financial
services if such member states have information that
provides reasonable grounds to believe that such
activities could contribute to--
(i) activities prohibited by an applicable
United Nations Security Council resolution; or
(ii) the evasion of such prohibitions.
(b) Sense of Congress Regarding the Designation of North Korea as a
Jurisdiction of Primary Money Laundering Concern.--Congress--
(1) acknowledges the efforts of the United Nations Security
Council to impose limitations on, and to require the enhanced
monitoring of, transactions involving North Korean financial
institutions that could contribute to sanctioned activities;
(2) urges the President, in the strongest terms--
(A) to immediately designate North Korea as a
jurisdiction of primary money laundering concern; and
(B) 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 activities; and
(3) urges the President to seek the prompt implementation
by other countries 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 property that could contribute to--
(A) activities sanctioned by applicable United
Nations Security Council resolutions; or
(B) the evasion of such sanctions.
(c) Determinations Regarding North Korea.--
(1) In general.--Not later than 180 days after the date of
the enactment of this Act, the Secretary of the Treasury, in
consultation with the Secretary of State and the Attorney
General, and in accordance with section 5318A of title 31,
United States Code, shall determine whether reasonable grounds
exist for concluding that North Korea is a jurisdiction of
primary money laundering concern.
(2) Enhanced due diligence and reporting requirements.--If
the Secretary of the Treasury determines under paragraph (1)
that reasonable grounds exist for concluding that North Korea
is a jurisdiction of primary money laundering concern, the
Secretary, in consultation with the Federal functional
regulators (as defined in section 509 of the Gramm-Leach-Bliley
Act (15 U.S.C. 6809)), shall impose 1 or more of the special
measures described in section 5318A(b) of title 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 FINANCIAL 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 Security 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
representatives of the United Nations Panel of Experts
established pursuant to United Nations Security Council
Resolution 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
Security 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 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
contributed 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 persons,
or the theft of intellectual property by the Government of
North Korea, directly or indirectly from United States persons;
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.
(c) Strategy to Improve International Implementation and
Enforcement of United Nations North Korea-specific Sanctions.--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
initiatives and assistance programs, as appropriate, to improve
sanctions implementation and enforcement; and
(6) to increase outreach to the people of North Korea, and
to support the engagement of independent, non-governmental
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
paragraph (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
congressional committees that describes--
(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 maintained by
the Administrator under part 9 of the Federal Acquisition
Regulation, each person that is debarred, suspended, or
proposed for debarment or suspension by the head of an
executive agency on the basis of a determination of a false
certification 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 implement the
requirements of this section, the head of such executive 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 suspension
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 remedies
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).
(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 INSPECTION AUTHORITIES.
(a) Report Required.--Not later than 180 days after the date of the
enactment of this Act, and annually thereafter, the President shall
submit to the appropriate congressional committees a report that
identifies foreign ports and airports at which inspections of ships,
aircraft, and conveyances originating in North Korea, carrying North
Korean property, or operated by the Government of North Korea are not
sufficient to effectively prevent the facilitation of any of the
activities described in section 104(a).
(b) Enhanced Customs Inspection Requirements.--The Secretary of
Homeland Security may require enhanced inspections of any goods
entering the United States that have been transported through a port or
airport identified by the President under subsection (a).
(c) Seizure and Forfeiture.--A vessel, aircraft, or conveyance used
to facilitate any of the activities described in section 104(a) under
the jurisdiction of the United States may be seized and forfeited
under--
(1) chapter 46 of title 18, United States Code; or
(2) title V of the Tariff Act of 1930 (19 U.S.C. 1501 et
seq.).
SEC. 206. TRAVEL SANCTIONS.
The Secretary of State may deny a visa to, and the Secretary of
Homeland Security may deny entry into the United States of, any alien
who is--
(1) a designated person;
(2) a corporate officer of a designated person; or
(3) a principal shareholder with a controlling interest in
a designated person.
SEC. 207. TRAVEL RECOMMENDATIONS FOR UNITED STATES CITIZENS TO NORTH
KOREA.
The Secretary of State shall expand the scope and frequency of
issuance of travel warnings for all United States citizens to North
Korea. The expanded travel warnings, which should be issued or updated
not less frequently than every 90 days, should include--
(1) publicly released or credible open source information
regarding the detention of United States citizens by North
Korean authorities, including available information on
circumstances of arrest and detention, duration, legal
proceedings, and conditions under which a United States citizen
has been, or continues to be, detained by North Korean
authorities, including present-day cases and cases occurring
during the 10-year period ending on the date of the enactment
of this Act;
(2) publicly released or credible open source information
on the past and present detention and abduction or alleged
abduction of citizens of the United States, South Korea, or
Japan by North Korean authorities;
(3) unclassified information about the nature of the North
Korean regime, as described in congressionally mandated reports
and annual reports issued by the Department of State and the
United Nations, including information about North Korea's
weapons of mass destruction programs, illicit activities,
international sanctions violations, and human rights situation;
and
(4) any other information that the Secretary deems useful
to provide United States citizens with a comprehensive picture
of the nature of the North Korean regime.
SEC. 208. EXEMPTIONS, WAIVERS, AND REMOVALS OF DESIGNATION.
(a) Exemptions.--The following activities shall be exempt from
sanctions under sections 104, 206, 209, and 304:
(1) Activities subject to the reporting requirements under
title V of the National Security Act of 1947 (50 U.S.C. 3091 et
seq.), or to any authorized intelligence activities of the
United States.
(2) Any transaction necessary to comply with United States
obligations under the Agreement between the United Nations and
the United States of America regarding the Headquarters of the
United Nations, signed at Lake Success June 26, 1947, and
entered into force November 21, 1947, or under the Convention
on Consular Relations, done at Vienna April 24, 1963, and
entered into force March 19, 1967, or under other international
agreements.
(3) Any activities incidental to the POW/MIA accounting
mission in North Korea, including activities by the Defense
POW/MIA Accounting Agency and other governmental or
nongovernmental organizations tasked with identifying or
recovering the remains of members of the United States Armed
Forces in North Korea.
(b) Humanitarian Waiver.--
(1) In general.--The President may waive, for renewable
periods of between 30 days and 1 year, the application of the
sanctions authorized under section 104, 204, 205, 206, 209(b),
or 304(b) if the President submits to the appropriate
congressional committees a written determination that the
waiver is necessary for humanitarian assistance or to carry out
the humanitarian purposes set forth section 4 of the North
Korean Human Rights Act of 2004 (22 U.S.C. 7802).
(2) Content of written determination.--A written
determination submitted under paragraph (1) with respect to a
waiver shall include a description of all notification and
accountability controls that have been employed in order to
ensure that the activities covered by the waiver are
humanitarian assistance or are carried out for the purposes set
forth in section 4 of the North Korean Human Rights Act of 2004
(22 U.S.C. 7802) and do not entail any activities in North
Korea or dealings with the Government of North Korea not
reasonably related to humanitarian assistance or such purposes.
(3) Clarification of permitted activities under waiver.--An
internationally recognized humanitarian organization shall not
be subject to sanctions under section 104, 204, 205, 206,
209(b), or 304(b) for--
(A) engaging in a financial transaction relating to
humanitarian assistance or for humanitarian purposes
pursuant to a waiver issued under paragraph (1);
(B) transporting goods or services that are
necessary to carry out operations relating to
humanitarian assistance or humanitarian purposes
pursuant to such a waiver; or
(C) having merely incidental contact, in the course
of providing humanitarian assistance or aid for
humanitarian purposes pursuant to such a waiver, with
individuals who are under the control of a foreign
person subject to sanctions under this Act.
(c) Waiver.--The President may waive, on a case-by-case basis, for
renewable periods of between 30 days and 1 year, the application of the
sanctions authorized under section 104, 201(c)(2), 204, 205, 206,
209(b), or 304(b) if the President submits to the appropriate
congressional committees a written determination that the waiver--
(1) is important to the national security interests of the
United States; or
(2) will further the enforcement of this Act or is for an
important law enforcement purpose.
(d) Financial Services for Humanitarian and Consular Activities.--
The President may promulgate such regulations, rules, and policies as
may be necessary to facilitate the provision of financial services by a
foreign financial institution that is not a North Korean financial
institution in support of activities conducted pursuant to an exemption
or waiver under this section.
SEC. 209. REPORT ON AND IMPOSITION OF SANCTIONS TO ADDRESS PERSONS
RESPONSIBLE FOR KNOWINGLY ENGAGING IN SIGNIFICANT
ACTIVITIES UNDERMINING CYBERSECURITY.
(a) Report Required.--
(1) In general.--The President shall submit to the
appropriate congressional committees a report that describes
significant activities undermining cybersecurity aimed against
the United States Government or any United States person and
conducted by the Government of North Korea, or a person owned
or controlled, directly or indirectly, by the Government of
North Korea or any person acting for or on behalf of that
Government.
(2) Information.--The report required under paragraph (1)
shall include--
(A) the identity and nationality of persons that
have knowingly engaged in, directed, or provided
material support to conduct significant activities
undermining cybersecurity described in paragraph (1);
(B) a description of the conduct engaged in by each
person identified;
(C) an assessment of the extent to which a foreign
government has provided material support to the
Government of North Korea or any person acting for or
on behalf of that Government to conduct significant
activities undermining cybersecurity; and
(D) a United States strategy to counter North
Korea's efforts to conduct significant activities
undermining cybersecurity against the United States,
that includes efforts to engage foreign governments to
halt the capability of the Government of North Korea
and persons acting for or on behalf of that Government
to conduct significant activities undermining
cybersecurity.
(3) Submission and form.--
(A) Submission.--The report required under
paragraph (1) shall be submitted not later than 90 days
after the date of the enactment of this Act, and every
180 days thereafter.
(B) Form.--The report required under paragraph (1)
shall be submitted in an unclassified form, but may
include a classified annex.
(b) Designation of Persons.--The President shall designate under
section 104(a) any person identified in the report required under
subsection (a)(1) that knowingly engages in significant activities
undermining cybersecurity through the use of computer networks or
systems against foreign persons, governments, or other entities on
behalf of the Government of North Korea.
SEC. 210. CODIFICATION OF SANCTIONS WITH RESPECT TO NORTH KOREAN
ACTIVITIES UNDERMINING CYBERSECURITY.
(a) In General.--United States sanctions with respect to activities
of the Government of North Korea, persons acting for or on behalf of
that Government, or persons located in North Korea that undermine
cybersecurity provided for in Executive Order 13687 (50 U.S.C. 1701
note; relating to imposing additional sanctions with respect to North
Korea) or Executive Order 13694 (50 U.S.C. 1701 note; relating to
blocking the property of certain persons engaging in significant
malicious cyber-enabled activities), as such Executive Orders are in
effect on the day before the date of the enactment of this Act, shall
remain in effect until the date that is 30 days after the date on which
the President submits to Congress a certification that the Government
of North Korea, persons acting for or on behalf of that Government, and
persons owned or controlled, directly or indirectly, by that Government
or persons acting for or on behalf of that Government, are no longer
engaged in the illicit activities described in such Executive Orders,
including actions in violation of United Nations Security Council
Resolutions 1718 (2006), 1874 (2009), 2087 (2013), and 2094 (2013).
(b) Rule of Construction.--Nothing in this section shall be
construed to limit the authority of the President pursuant to the
International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.).
SEC. 211. SENSE OF CONGRESS ON TRILATERAL COOPERATION BETWEEN THE
UNITED STATES, SOUTH KOREA, AND JAPAN.
(a) In General.--It is the sense of Congress that the President--
(1) should seek to strengthen high-level trilateral
mechanisms for discussion and coordination of policy toward
North Korea between the Government of the United States, the
Government of South Korea, and the Government of Japan;
(2) should ensure that the mechanisms specifically address
North Korea's nuclear, ballistic, and conventional weapons
programs, its human rights record, and cybersecurity threats
posed by North Korea;
(3) should ensure that representatives of the United
States, South Korea, and Japan meet on a regular basis and
include representatives of the United States Department of
State, the United States Department of Defense, the United
States intelligence community, and representatives of
counterpart agencies in South Korea and Japan; and
(4) should continue to brief the relevant congressional
committees regularly on the status of such discussions.
(b) Relevant Committees.--The relevant committees referred to in
subsection (a)(4) shall include--
(1) the Committee on Foreign Relations, the Committee on
Armed Services, and the Select Committee on Intelligence of the
Senate; and
(2) the Committee on Foreign Affairs, the Committee on
Armed Services, and the Permanent Select Committee on
Intelligence of the House of Representatives.
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 adding at the end the following:
``(d) Information Technology Study.--Not later than 180 days after
the date of the enactment of the North Korea Sanctions and Policy
Enhancement Act of 2015, the President shall submit to the appropriate
congressional committees a classified report that sets forth a detailed
plan for making unrestricted, unmonitored, and inexpensive electronic
mass communications available to the people of North Korea.''.
SEC. 302. STRATEGY TO PROMOTE NORTH KOREAN HUMAN RIGHTS.
(a) In General.--Not later than 180 days after the date of the
enactment of this Act, the Secretary of State, in coordination with
other appropriate Federal departments and agencies, shall submit to the
Committee on Foreign Relations of the Senate and the Committee on
Foreign Affairs of the House of Representatives a report that details a
United States strategy to promote initiatives to enhance international
awareness of and to address the human rights situation in North Korea.
(b) Information.--The report required under subsection (a) should
include--
(1) a list of countries that forcibly repatriate refugees
from North Korea; and
(2) a list of countries where North Korean laborers work,
including countries the governments of which have formal
arrangements with the Government of North Korea or any person
acting for or on behalf of that Government to employ North
Korean workers.
(c) Strategy.--The report required under subsection (a) should
include--
(1) a plan to enhance bilateral and multilateral outreach,
including sustained engagement with the governments of partners
and allies with overseas posts to routinely demarche or brief
those governments on North Korea human rights issues, including
forced labor, trafficking, and repatriation of citizens of
North Korea;
(2) public affairs and public diplomacy campaigns,
including options to work with news organizations and media
outlets to publish opinion pieces and secure public speaking
opportunities for United States Government officials on issues
related to the human rights situation in North Korea, including
forced labor, trafficking, and repatriation of citizens of
North Korea; and
(3) opportunities to coordinate and collaborate with
appropriate nongovernmental organizations and private sector
entities to raise awareness and provide assistance to North
Korean defectors throughout the world.
SEC. 303. REPORT ON NORTH KOREAN PRISON CAMPS.
(a) In General.--The Secretary of State shall submit to the
appropriate congressional committees a report that describes, with
respect to each political prison camp in North Korea, to the extent
information is available--
(1) the camp's estimated prisoner population;
(2) the camp's geographical coordinates;
(3) the reasons for the confinement of the prisoners;
(4) the camp's primary industries and products, and the end
users of any goods produced in the camp;
(5) the individuals and agencies responsible for conditions
in the camp;
(6) the conditions under which prisoners are confined, with
respect to the adequacy of food, shelter, medical care, working
conditions, and reports of ill-treatment of prisoners; and
(7) imagery, to include satellite imagery of the camp, in a
format that, if published, would not compromise the sources and
methods used by the United States intelligence community to
capture geospatial imagery.
(b) Form.--The report required under subsection (a) may be included
in the first human rights report required to be submitted to Congress
after the date of the enactment of this Act under sections 116(d) and
502B(b) of the Foreign Assistance Act of 1961 (22 U.S.C. 2151n(d) and
2304(b)).
SEC. 304. REPORT ON AND IMPOSITION OF SANCTIONS WITH RESPECT TO SERIOUS
HUMAN RIGHTS ABUSES OR CENSORSHIP IN NORTH KOREA.
(a) Report Required.--
(1) In general.--The Secretary of State shall submit to the
appropriate congressional committees a report that--
(A) identifies each person the Secretary determines
to be responsible for serious human rights abuses or
censorship in North Korea and describes the conduct of
that person; and
(B) describes serious human rights abuses or
censorship undertaken by the Government of North Korea
or any person acting for or on behalf of that
Government in the most recent year ending before the
submission of the report.
(2) Consideration.--In preparing the report required under
paragraph (1), the Secretary of State shall--
(A) give due consideration to the findings of the
United Nations Commission of Inquiry on Human Rights in
North Korea; and
(B) make specific findings with respect to the
responsibility of Kim Jong Un, and of each individual
who is a member of the National Defense Commission of
North Korea or the Organization and Guidance Department
of the Workers' Party of Korea, for serious human
rights abuses and censorship.
(3) Submission and form.--
(A) Submission.--The report required under
paragraph (1) shall be submitted not later than 120
days after the date of the enactment of this Act, and
every 180 days thereafter for a period not to exceed 3
years, and shall be included in each human rights
report required under sections 116(d) and 502B(b) of
the Foreign Assistance Act of 1961 (22 U.S.C. 2151n(d)
and 2304(b)).
(B) Form.--The report required under paragraph (1)
shall be submitted in unclassified form, but may
include a classified annex.
(C) Public availability.--The Secretary of State
shall publish the unclassified part of the report
required under paragraph (1) on the website of the
Department of State.
(b) Designation of Persons.--The President shall designate under
section 104(a) any person listed in the report required under
subsection (a)(1) that--
(1) knowingly engages in, is responsible for, or
facilitates censorship by the Government of North Korea; or
(2) knowingly engages in, is responsible for, or
facilitates serious human rights abuses by the Government of
North Korea.
(c) Sense of Congress.--It is the sense of Congress that the
President should--
(1) seek the prompt adoption by the United Nations Security
Council of a resolution calling for the blocking of the assets
of all persons responsible for severe human rights abuses or
censorship in North Korea; and
(2) fully cooperate with the prosecution of any individual
listed in the report required under subsection (a)(1) before
any international tribunal that may be established to prosecute
persons responsible for severe human rights abuses or
censorship in North Korea.
TITLE IV--GENERAL AUTHORITIES
SEC. 401. SUSPENSION OF SANCTIONS AND OTHER MEASURES.
(a) In General.--Any sanction or other measure required under title
I, II, or III (or any amendment made by such titles) may be suspended
for up to 1 year upon certification by the President to the appropriate
congressional committees that the Government of North Korea has made
progress toward--
(1) verifiably ceasing its counterfeiting of United States
currency, including the surrender or destruction of specialized
materials and equipment used or particularly suitable for
counterfeiting;
(2) taking steps toward financial transparency to comply
with generally accepted protocols to cease and prevent the
laundering of monetary instruments;
(3) taking steps toward verification of its compliance with
applicable United Nations Security Council resolutions;
(4) taking steps toward accounting for and repatriating the
citizens of other countries--
(A) abducted or unlawfully held captive by the
Government of North Korea; or
(B) detained in violation of the Agreement
Concerning a Military Armistice in Korea, signed at
Panmunjom July 27, 1953 (commonly referred to as the
``Korean War Armistice Agreement'');
(5) accepting and beginning to abide by internationally
recognized standards for the distribution and monitoring of
humanitarian aid; and
(6) taking verified steps to improve living conditions in
its political prison camps.
(b) Renewal of Suspension.--The suspension described in subsection
(a) may be renewed for additional, consecutive 180-day periods after
the President certifies to the appropriate congressional committees
that the Government of North Korea has continued to comply with the
conditions described in subsection (a) during the previous year.
SEC. 402. TERMINATION OF SANCTIONS AND OTHER MEASURES.
Any sanction or other measure required under title I, II, or III
(or any amendment made by such titles) shall terminate on the date on
which the President determines and certifies to the appropriate
congressional committees that the Government of North Korea has--
(1) met the requirements set forth in section 401; and
(2) made significant progress toward--
(A) completely, verifiably, and irreversibly
dismantling all of its nuclear, chemical, biological,
and radiological weapons programs, including all
programs for the development of systems designed in
whole or in part for the delivery of such weapons;
(B) releasing all political prisoners, including
the citizens of North Korea detained in North Korea's
political prison camps;
(C) ceasing its censorship of peaceful political
activity;
(D) establishing an open, transparent, and
representative society; and
(E) fully accounting for and repatriating United
States citizens (including deceased United States
citizens)--
(i) abducted or unlawfully held captive by
the Government of North Korea; or
(ii) detained in violation of the Agreement
Concerning a Military Armistice in Korea,
signed at Panmunjom July 27, 1953 (commonly
referred to as the ``Korean War Armistice
Agreement'').
SEC. 403. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--There are authorized to be appropriated for each
of fiscal years 2017 through 2021--
(1) $3,000,000 to carry out section 103 of the North Korea
Human Rights Act of 2004 (22 U.S.C. 7813);
(2) $3,000,000 to carry out subsections (a), (b), and (c)
of section 104 of that Act (22 U.S.C. 7814);
(3) $2,000,000 to carry out subsection (d) of such section
104, as add by section 301 of this Act; and
(4) $2,000,000 to carry out section 203 of the North Korea
Human Rights Act of 2004 (22 U.S.C. 7833).
(b) Availability of Funds.--Amounts appropriated for each fiscal
year pursuant to subsection (a) shall remain available until expended.
SEC. 404. RULEMAKING.
(a) In General.--The President is authorized to promulgate such
rules and regulations as may be necessary to carry out the provisions
of this Act (which may include regulatory exceptions), including under
section 205 of the International Emergency Economic Powers Act (50
U.S.C. 1704).
(b) Rule of Construction.--Nothing in this Act, or in any amendment
made by this Act, may be construed to limit the authority of the
President to designate or sanction persons pursuant to an applicable
Executive order or otherwise pursuant to the International Emergency
Economic Powers Act (50 U.S.C. 1701 et seq.).
SEC. 405. AUTHORITY TO CONSOLIDATE REPORTS.
Any and all reports required to be submitted to appropriate
congressional committees under this Act or any amendment made by this
Act that are subject to a deadline for submission consisting of the
same unit of time may be consolidated into a single report that is
submitted to appropriate congressional committees pursuant to such
deadline. The consolidated reports must contain all information
required under this Act or any amendment made by this Act, in addition
to all other elements mandated by previous law.
SEC. 406. EFFECTIVE DATE.
Except as otherwise provided in this Act, this Act and the
amendments made by this Act shall take effect on the date of the
enactment of this Act.
Calendar No. 359
114th CONGRESS
2d Session
H. R. 757
_______________________________________________________________________
AN ACT
To improve the enforcement of sanctions against the Government of North
Korea, and for other purposes.
_______________________________________________________________________
February 2, 2016
Reported with an amendment