--- kind: "diff" citation: "H.R. 1771" bill: "113-hr-1771" heading: "North Korea Sanctions Enforcement Act of 2014" from: "ih" from_label: "Introduced in House" to: "rh" to_label: "Reported in House" sections_amended: 21 sections_added: 1 sections_removed: 5 url: "https://uscodex.org/bills/113/hr/1771/changes/rh" --- # H.R. 1771 — what changed H.R. 1771, North Korea Sanctions Enforcement Act of 2014 — 21 sections amended, 1 added, and 5 removed between Introduced in House and Reported in House. Edits are marked `struck` and `inserted`. ## Section 1 Short title; table of contents - (a) Short title— This Act may be cited as the “North Korea Sanctions Enforcement Act of 2013”.2014”. - (b) Table of contents— The table of contents for this Act is as follows: ## Sec. 2 Findings - Congress finds the following: - (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. - (2) 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 illicit activities, including prohibited arms sales, narcotics trafficking, the counterfeiting of United States currency, and the counterfeiting of intellectual property of United States persons. - (4) The Government of North Korea has recently has, both historically and recently, repeatedly sponsored acts of international terrorism, including attempts to assassinate defectors and human rights activists; activists, repeated threats of violence against foreign persons, leaders, newspapers, and cities; cities, and the shipment of weapons to Hezbollah and Hamas via Iran.terrorists. - (5) North Korea has unilaterally withdrawn from the 1953 Armistice Agreement that ended the Korean War, and committed unprovoked acts of war provocations against South Korea in 2010 by sinking the warship Cheonan and killing 46 of her crew, and by shelling Yeonpyeong Island, killing four civilians.South Koreans. - (6) North Korea maintains a system of brutal political prison camps that contain as many as 200,000 men, women, and children, who live in atrocious living conditions with insufficient food, clothing, and medical care, and under constant fear of torture or arbitrary execution. - (7) The Congress reaffirms the purposes established in of the North Korean Human Rights Act of 2004 contained in section 4 of such Act (22 U.S.C. 7802). - (8) North Korea has prioritized weapons 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. - (9) 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. - (10) 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. - (11) The Congress seeks, through this legislation, to use nonmilitary means to address this emergency, 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. ## Sec. 3 Definitions - In this Act: - (1) Account; correspondent account; payable-through account—Applicable Executive order— The terms account, correspondent account, and payable-through account have the meanings given those terms, respectively, under section 5318A of title 31, United States Code.term “applicable Executive order” means— - (A) Executive Order 13382 (2005), 13466 (2008), 13551 (2010), or 13570 (2011), 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 - (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. - (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); or - (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. - (3) [was (4)] Appropriate congressional committees— The term appropriate congressional committees means— - (A) [was (4)(3)] the Committee on Foreign Affairs and the Committee on Financial Services of the House of Representatives; and - (B) [was (4)(4)] the Committee on Foreign Relations and the Committee on Banking, Housing, and Urban Affairs of the Senate. - (3) Censorship— The term censorship means, with respect to North Korea, activities that— - (A) prohibit, limit, or penalize the exercise of freedom of expression or assembly by citizens of North Korea; or - (B) limit access to print or broadcast media, including the facilitation or support of intentional frequency manipulation by the Government of North Korea that would jam or restrict an international signal. - (4) Designated person— The term designated person means a person, foreign government, or financial institution person designated by the President under subsection (a), (b), (c), (a) or (d) (b) of section 104 for purposes of applying one or more of the sanctions described in title I or II (as applicable) of this Act with respect to the person, foreign government, or financial institution.person. - (5) Domestic financial institution—Government of North Korea— The term domestic financial institution has the meaning given such term in section 5312 Government of title 31, United States Code.North Korea means— - (A) the Government of the Democratic People’s Republic of Korea or any political subdivision, agency, or instrumentality thereof; and - (B) any person owned or controlled by, or acting for or on behalf of, the Government of the Democratic People’s Republic of Korea. - (6) International terrorism— The term international terrorism has the meaning given such term in section 140(d) of the Foreign Relations Authorization Act, Fiscal Years 1988 and 1989 (22 U.S.C. 2656f(d)). - (6) Facilitate— - (A) In general— The term facilitate means, with respect to any of the activities described in section 104(a), to— - (i) provide material support to, aid, abet, attempt, or conspire to commit the activity; - (ii) conceal any evidence, proceeds, or instrumentalities of the activity; - (iii) possess, receive, exchange, or transmit the proceeds, instrumentalities, or other property involved in the activity; - (iv) sell, lease, or provide a vessel or conveyance, to register of reflag a vessel or conveyance, or provide insurance or reinsurance or any other shipping service in furtherance of the activity; or - (v) engage in any act with the purpose of causing the activity to occur. - (B) Exception— Nothing in this paragraph shall be construed to apply with respect to the provision of specialized financial messaging services (as described in section 202). - (7) Financial institution— The term financial institution means a financial institution specified in subparagraph (A), (B), (C), (D), (E), (F), (G), (H), (I), (J), (M), or (Y) of section 5312(a)(2) of title 31, United States Code. - (8) Financial transaction— The term financial transaction has the meaning given such term in section 1956 of title 18, United States Code. - (9) Foreign government— The term “foreign government” has the meaning given the term “foreign state” in section 1603 of title 28, United States Code. - (10) Government of north korea— The term Government of North Korea means— - (A) the Government of North Korea; - (B) any political subdivision, agency, or instrumentality thereof; - (C) the National Defense Commission of North Korea and its members; and - (D) any person owned or controlled by, or acting for or on behalf of, the Government of North Korea. - (11) Instrumentalities— The term instrumentalities includes, with respect to any of the activities described in section 104(a)— - (A) any property other than proceeds of such transaction which is also part of the subject matter of such transaction; - (B) any property used to facilitate such transaction, including any article, container, or conveyance used, or intended to be used, to facilitate such transaction; and - (C) any property other than the proceeds of such transaction that is involved in or used to facilitate such transaction. - (12) International terrorism— The term international terrorism has the meaning given such term in section 2331 of title 18, United States Code. - (7) [was (15)] Luxury goods— The term luxury goods has the meaning given such term in subpart 746.4 of title 15, Code of Federal Regulations, and includes the items listed in Supplement No. 1 to such regulation, and any similar items. - (8) Monetary instrument— The term monetary instrument has the meaning given such term under section 5312 of title 31, United States Code. - (14) Monetary instrument— The term monetary instrument has the meaning given such term under section 5312 of title 31, United States Code, and also includes— - (A) stored value cards, tangible or intangible prepaid access devices, or other instruments or devices for the electronic storage or transmission of value, as defined in part 1010 of title 31, Code of Federal Regulations; and - (B) any covered goods, as defined in section 1027.100 of title 31, Code of Federal Regulations, and any instrument or tangible or intangible access device use for the electronic storage and transmission of a representation of covered goods. - (9) [was (17)] North korean financial institution— The term North Korean financial institution means— - (A) a financial institution organized under the laws of North Korea or any jurisdiction within North Korea (including a foreign branch of such institution); - (B) any financial institution located in North Korea, except as may be excluded from such definition by the President in accordance with section 207(d); - (C) any financial institution, wherever located, owned or controlled by the Government of North Korea; and - (D) any financial institution, wherever located, owned or controlled by a financial institution described in subparagraph (A), (B), or (C). - (10) Other stores of value— The term “other stores of value” means— - (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 - (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. - (11) Person— The term person has the meaning given that term in section 510.306 of title 31, Code of Federal Regulations. - (A) a financial institution organized under the laws of North Korea or any jurisdiction within North Korea, including a foreign branch of such an institution; - (B) a financial institution located in North Korea, except as may be excluded from such definition by the President in accordance with section 207(d); - (C) a financial institution, wherever located, owned or controlled by the Government of North Korea; or - (D) a financial institution, wherever located, owned or controlled by a financial institution described in subparagraph (A), (B), or (C). - (16) North korean property— The term North Korean property includes any funds, financial assets, technology, property, or resources that are owned or controlled, directly or indirectly, by the Government of North Korea. - (17) Person— The term person means— - (A) a natural person; - (B) a corporation, business association, partnership, association, society, trust, financial institution, joint venture, corporation, group, subgroup, agency, insurer, underwriter, guarantor, and any other business organization, any other nongovernmental entity, organization, or group, and any governmental entity operating as a business enterprise; and - (C) a successor to any entity described in subparagraph (B). - (18) Proceeds— The term proceeds has the meaning given such term in section 1956 of title 18, United States Code. - (19) Serious human rights abuse— The term serious human rights abuse includes genocide, slavery, kidnaping, peonage, murder, torture, and aggravated sexual abuse, as those terms are described and made punishable under part I of title 18, United States Code, when carried out by the Government of North Korea, without regard to whether such conduct is within the criminal jurisdiction of the United States. - (20) Specified unlawful activity— The term specified unlawful activity has the meaning given such term in section 1956 of title 18, United States Code. - (21) Transaction— The term transaction has the meaning given such term in section 1956 of title 18, United States Code. - (22) United states person— The term United States person means— - (A) a natural person who is a citizen of the United States or who owes permanent allegiance to the United States; and - (B) a corporation or other legal entity which is organized under the laws of the United States, any State or territory thereof, or the District of Columbia, if a natural person described in subparagraph (A) owns, directly or indirectly, more than 50 percent of the outstanding capital stock or other beneficial interest in such corporation or other legal entity. ## 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 responsible members of the international community states to fully and promptly implement United Nations Security Council Resolution 2094;2094 (2013); - (2) to sanction the entities, officials, and persons, including financial institutions institutions, that facilitate proliferation, illicit activities, arms trafficking, imports of luxury goods, severe serious human rights abuses, cash smuggling, and censorship by the Government of North Korea; - (3) to authorize the President to sanction financial institutions and jurisdictions that persons who fail to exercise due diligence to ensure that such financial institutions and jurisdictions do not facilitate proliferation, arms trafficking, kleptocracy, and imports of luxury goods by the Government of North Korea; andKorea; - (4) to deny the Government of North Korea access to the funds it uses to obtain nuclear weapons, ballistic missiles, and luxury goods instead of providing for the needs of its people.people; and - (5) to enforce sanctions in a manner that avoids any adverse humanitarian impact on the people of North Korea. ## Sec. 102 Investigations - The President shall initiate an investigation into the possible designation of a person under section 104(a) upon receipt by the President of credible information indicating that such person has engaged in conduct described in section 104(a). - (a) Initiation of investigation— The President shall initiate an investigation into the possible designation of a person under section 104(a) upon receipt by the United States of credible information indicating that such person has engaged in one or more activities described in section 104(a) and, except as provided in section 207, shall designate any person who the President determines has engaged in one or more activities described in section 104(a). - (b) Personnel— The President shall direct the Secretary of State, the Secretary of the Treasury, the Attorney General, the Secretary of Homeland Security, the Secretary of Defense, the Director of Central Intelligence, and the heads of other Federal departments and agencies as may be necessary to assign sufficient experienced and qualified investigators, attorneys, and technical personnel to investigate and sanction any of the activities described in section 104(a) and to coordinate and ensure the effective enforcement of the provisions of this Act. - (c) Sharing of information— The Federal departments and agencies supporting the enforcement of this Act shall share such information with, and shall provide each other access to, databases and other sources of information as may be necessary to enforce the provisions of this Act. ## Sec. 103 Briefing to Congress - Not later than 180 days after the date of the enactment of this Act, and periodically thereafter, the President shall provide to the appropriate congressional committees a briefing on efforts to implement this Act, to include the following, to the extent the information is available: - (a) In general— Not later than 180 days after the date of the enactment of this Act, and every 180 days thereafter, the President shall provide to the appropriate congressional committees a briefing on the following: - (1) Assets of the government of north korea— The significant assets held by the Government of North Korea, the amount of each such asset, and the form and financial institution (if any) in which each such asset is held. - (2) Transactions involving the government of north korea— The significant international financial transactions by the Government of North Korea during the previous 180 days, including the amounts, parties, terms, and date of each such transaction, the property involved in the transaction, and the names and nationalities of any financial institutions involved in each such transaction. - (3) Designations— Each person, foreign government, or financial institution designated under subsection (a), (b), (c), or (d) of section 104 during the previous 180 days. - (4) Waivers, etc— All waivers, exclusions, and removals of designation granted under section 207 during the previous 180 days. - (1) Contents of briefing— The briefings required by subsection (a) shall also contain—principal foreign assets and sources of foreign income of the Government of North Korea. - (2) A list of the persons designated under subsections (a) and (b) of section 104. - (3) A list of the persons with respect to which sanctions were waived or removed under section 207. - (4) A summary of any diplomatic efforts made in accordance with section 202(b) and of the progress realized from such efforts, including efforts to 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. - (1) a list of all persons and foreign governments that have provided financial, storage, transportation, communication, messaging, promotional, or other services with respect to such property and transactions; - (2) an assessment of the sufficiency of financial safeguards to ensure that such property and transactions are prevented from being used to facilitate any of the activities described in section 104(a), and recommendations for any safeguards necessary to prevent such use; and - (3) whether any evidence exists to suggest that such property constitutes the proceeds or instrumentalities of any activity described in section 104(a). ## Sec. 104 Prohibited conduct and mandatory and discretionary designation and sanctions authorities - (a) Prohibited conduct and mandatory designation and sanctions authority— - (1) Conduct described— Except as provided in section 207, the President shall designate under this subsection any person the President determines to— - (A) have knowingly engaged in significant activities or transactions with the Government of North Korea that have materially contributed to the proliferation of weapons of mass destruction or their means of delivery (including missiles capable of delivering such weapons), including any efforts to manufacture, acquire, possess, develop, transport, transfer or use such items, by any person or foreign country; - (B) have knowingly imported, exported, or reexported to, into, or from North Korea any arms or related materiel, whether directly or indirectly; - (C) have knowingly provided significant training, advice, or other services or assistance, or engaged in 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; - (D) have knowingly, directly or indirectly, imported, exported, or reexported significant luxury goods to or into North Korea; - (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 or broadcast media, or the facilitation or support of intentional frequency manipulation that would jam or restrict an international signal; - (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, causing the disappearance of persons by the abduction and clandestine detention of those persons, and other denial of the right to life, liberty, or the security of a person; - (G) have knowingly, directly or indirectly, engaged in significant acts of money laundering, the counterfeiting of goods or currency, bulk cash smuggling, narcotics trafficking, or other illicit activity that involves or supports the Government of North Korea or any senior official thereof, whether directly or indirectly; or - (H) have knowingly attempted to engage in any of the conduct described in subparagraphs (A) through (G) of this paragraph. - (a) Designation of persons who engage in certain activities— Except as provided in section 207, the President shall exercise the authorities of the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) without regard to section 202 of such Act to designate and apply the sanctions described in title II, as applicable, with respect to any person if the President determines that the person— - (2) Effect of designation— knowingly and materially contributes, through the export to or import from North Korea of any goods or technology, With respect to the efforts by any government or person to use, develop, produce, stockpile, or otherwise acquire nuclear, radiological, chemical, or biological weapons, or any device or system designed in whole or in part to deliver such weapons;designated under this subsection, the President— - (A) shall exercise the authorities of the International Emergency Economic Powers Act (50 U.S.C. 1705 et seq.) without regard to section 202 of such Act to block all property and interests in property of any person designated under this subsection that are in the United States, that hereafter come within the United States, or that are or hereafter come within the possession or control of any United States person, including any overseas branch; and - (B) may apply any of the sanctions described in section 204. - (3) Penalties— knowingly exports, or facilitates The penalties provided for in section 206 of the export of, defense articles and defense services International Emergency Economic Powers Act (50 U.S.C. 1705) shall apply to the Government a person who violates, attempts to violate, conspires to violate, or causes a violation of North Korea, any prohibition of this subsection, or knowingly exports, of an order or facilitates regulation prescribed under this Act, to the export of, any defense articles and defense services from North Korea same extent that such penalties apply to any other country;a person that commits an unlawful act described in section 206(a) of that Act (50 U.S.C. 1705(a)). - (b) Discretionary designation and sanctions authority— - (1) Conduct described— Except as provided in section 207, the President may designate under this subsection any person the President determines to— - (A) have knowingly engaged in, contributed to, assisted, sponsored, or provided financial, material or technological support for, or goods and services in support of, any violation of, or evasion of, an applicable United Nations Security Council resolution; - (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; - (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 an applicable United Nations Security Council resolution; - (D) have knowingly facilitated any transaction that contributes materially to a violation of an applicable United Nations Security Council resolution; - (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; - (F) 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 - (G) have knowingly and materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, the conduct described in subparagraphs (A) through (F) of this paragraph or the conduct described in subparagraphs (A) through (G) of subsection (a)(1). - (3) knowingly exports, or facilitates the export of, any luxury goods to North Korea; - (4) knowingly provides, sells, leases, registers, or reflags a vessel, aircraft, or other conveyance, or provides insurance or reinsurance or any other shipping or transportation service used or intended to be used for, the transportation of goods to or from North Korea, for purposes facilitating a specified unlawful activity, or for purposes of evading a regulation established under this Act or the International Emergency Economic Powers Act; - (5) knowingly transfers, pays, exports, withdraws, or otherwise deals with any property or interest in property of the Government of North Korea for purposes of facilitating a specified unlawful activity, or for purposes of evading a regulation established under this Act or the International Emergency Economic Powers Act; - (6) knowingly engages in or facilitates censorship by the Government of North Korea; or - (7) knowingly commits or facilitates a serious human rights abuse by the Government of North Korea. - (b) Designation of persons and foreign governments that are sanctioned by executive order or the united nations— Except as provided in section 207, the President shall exercise the authorities of the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) without regard to section 202 of such Act to designate and apply the sanctions described in title II, as applicable, with respect to any person or foreign government if the President determines the person or foreign government— - (2) Effect of designation— has been listed or sanctioned under any regulation or Executive Order No. 13382, 13224, 13551, or otherwise pursuant With respect to any person designated under this subsection, the International Emergency Economic Powers Act for illicit activities or activities concerning North Korea’s proliferation of weapons of mass destruction;President— - (A) may apply the sanctions described in section 204; - (B) may apply any of the special measures described in section 5318A of title 31, United States Code; - (C) may prohibit any transactions in foreign exchange that are subject to the jurisdiction of the United States and in which such person has any interest; - (D) may prohibit any transfers of credit or payments between financial institutions or by, through, or to any financial institution, to the extent that such transfers or payments are subject to the jurisdiction of the United States and involve any interest of the person; and - (E) may exercise the authorities of the International Emergency Economic Powers Act (50 U.S.C. 1705 et seq.) without regard to section 202 of such Act to block any property and interests in property of the person 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 overseas branch. - (2) has been sanctioned under United Nations Security Council resolutions 1695, 1718, 1874, 2087, 2094, or other such resolution concerning North Korea’s proliferation of weapons of mass destruction; or - (3) has been convicted of a criminal offense for any of the activities described in paragraphs (1) through (7) of subsection (a). - (c) Designation Blocking of all property and interests in property of the Government of North Korea— Except as provided in section 207, the The President shall exercise the authorities of the International Emergency Economic Powers Act (50 U.S.C. 1701 1705 et seq.) without regard to section 202 of such Act to designate block all property and apply the sanctions described interests in title II, as applicable, with respect to property of the Government of North Korea.Korea that are in the United States, that hereafter come within the United States, or that are or hereafter come within the possession or control of any United States person, including any overseas branch. - (d) Discretionary authority To designate foreign governments and financial institutions—Application— Except as provided in section 207, the President may exercise the authorities The designation of a person and the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) without regard to section 202 blocking of such Act to designate and property under subsection (a), (b), or (c) shall also apply any of the sanctions described in sections 201 and 204, as applicable, with respect to any foreign government a person who is determined to be owned or financial institution if the President determines the foreign government controlled by, or financial institution, after the date that is 180 days after the date of the enactment of 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 Act—section. - (1) engages in any of the activities described in paragraphs (1) through (7) of subsection (a); - (2) fails to freeze any funds, financial assets, or economic resources of a person designated under subsection (a) or (b) in accordance with the legal process of the country in which such property is held; - (3) fails to freeze any funds, financial assets, or economic resources that could be used to facilitate any of the activities described in paragraph (1), (2), or (3) of subsection (a), in accordance with the legal process of the country in which such property is held; - (4) fails to apply enhanced monitoring to prevent any transactions that could be used to facilitate any of the activities described in paragraph (1), (2), or (3) of subsection (a); - (5) permits any North Korean financial institution to open any new branch, subsidiary or representative office, or to establish any new joint venture within its jurisdiction, or to take an ownership interest in, or establish or maintain a correspondent relationship with any bank in its jurisdiction, if such branch, subsidiary, representative office, joint venture, ownership interest, or correspondent relationship could be used to facilitate any of the activities described in paragraph (1), (2), or (3) of subsection (a); - (6) fails to prohibit any transfers of cash, including through cash couriers, transiting to and from North Korea so as to ensure such transfers of bulk cash are not used to facilitate any of the activities described in paragraph (1), (2), or (3) of subsection (a); - (7) provides public financial support for trade with the Government of North Korea (including the granting of export credits, guarantees or insurance to their nationals or entities involved in such trade) when such financial support could be used to facilitate any of the activities described in paragraph (1), (2), or (3) of subsection (a); or - (8) facilitates the use of any proceeds of the bribery of an official of the Government of North Korea, or the misappropriation, theft, or embezzlement of public funds by, or for the benefit of, an official of the Government of North Korea. - (e) Application to successors, etc—Transaction licensing— The designation of a person, foreign government, President shall deny or revoke any license for any transaction that, in the determination of the President, lacks sufficient financial institution under controls to ensure that such transaction will not facilitate any of the conduct described in subsection (a), (b), (c), (a) or (d) shall also apply with respect to—subsection (b). - (1) a successor entity to the designated person; - (2) a person owned or controlled by, or under common ownership or control with, the designated person, if the person owned or controlled by, or under common ownership or control with (as the case may be), the designated person knowingly engaged in the transaction causing the designation; - (3) a corporate officer or principal of, or a shareholder with a controlling interest in, such designated person, if such corporate officer, or principal or shareholder with a controlling interest, knowingly engaged in the transaction causing the designation; and - (4) a United States person, including a domestic financial institution, to the same extent as if the transaction were engaged in by the United States person or in the United States if— - (A) a person, including a foreign subsidiary, owned or controlled by the United States person engages in or facilitates any of the activities described in paragraphs (1) through (7) of subsection (a); and - (B) the United States person knew or should have known that the person engaged in or facilitated any of the activities described in paragraphs (1) through (7) of subsection (a). - (f) Regulations— - (1) In general— The President shall promulgate such regulations as may be necessary under the authority of the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) to carry out this section. - (2) Additional requirement— The regulations promulgated under this subsection shall require enhanced due diligence for all transactions with the Government of North Korea or involving North Korean property to prevent the facilitation of activities described in any of paragraphs (1) through (7) of subsection (a) or any of paragraphs (1) through (8) of subsection (d). - (g) Penalties— Any person who engages in the conduct described in subsection (a), or who violates any regulation promulgated under subsection (f) or section 404, shall be subject to the penalties under section 206 of the International Emergency Economic Powers Act (50 U.S.C. 1705) in the same manner and to the same extent as such penalties would apply to any person who violates any license, order, regulation, or prohibition issued under that Act (50 U.S.C. 1701 et seq.). ## Sec. 105 Forfeiture of property - (a) Use of funds derived from civil forfeitures—Amendment to property subject to forfeiture— Section 981(e) 981(a)(1) of title 18, United States Code, is amended—amended by adding at the end the following new subparagraph: - “(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 2014.” - (1) in paragraph (6), by striking “or” at the end; - (2) in paragraph (7), by striking the period at the end and inserting “; or”; and - (3) by inserting after paragraph (7) the following new paragraph: - “(8) in the case of property involved in any of the activities described in section 104(a) of the North Korea Sanctions Enforcement Act of 2013, in accordance with section 403 of that Act.” - (b) Customs forfeitures—Amendment to definition of civil forfeiture statute— Notwithstanding sections 609, 613(a)(3), and 613A(c) of the Tariff Act of 1930 (19 U.S.C. 1609(a), 1613(a)(3), and 1613b(c)), any funds derived from the forfeiture of property under section 596 of the Tariff Act of 1930 (19 U.S.C. 1595a) that relates to any Section 983(i)(2)(D) of the activities described in section 104(a) shall be deposited into the North Korea Enforcement and Humanitarian Fund established under section 403.title 18, United States Code, is amended— - (1) by striking “or the International Emergency Economic Powers Act” and inserting “, the International Emergency Economic Powers Act”; and - (2) by adding at the end before the semicolon the following: “, or the North Korea Sanctions Enforcement Act of 2014”. - (c) Payment in lieu Amendment to definition of forfeiture—specified unlawful activity— If a financial institution or other person pays a sum Section 1956(c)(7)(D) of money to the title 18, United States—States Code, is amended— - (1) in lieu by striking “or section 92 of the commencement Atomic Energy Act of criminal, civil, or administrative forfeiture proceedings to forfeit property involving any 1954” and inserting “section 92 of the activities described in section 104(a), orAtomic Energy Act of 1954”; and - (2) in settlement by adding at the end the following: “, or section 104(a) of such forfeiture proceedings if commenced,the North Korea Sanctions Enforcement Act of 2014”. ## Sec. 201 Determinations with respect to North Korea as a jurisdiction of primary money laundering concern - (a) Sense of congress—Findings— It is the sense of Congress that makes the Government of North Korea should be treated as a primary money laundering concern in accordance with section 5318A of title 31, United States Code.following findings: - (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: - (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.”. - (B) In 2011, the Undersecretary stated that “North Korea remains intent on engaging in proliferation, selling arms as well as bringing in material,” and was “aggressively pursuing the effort to establish front companies.”. - (C) In 2013, the Undersecretary stated, in reference to North Korea’s distribution of high-quality counterfeit United States currency, that “North Korea is continuing to try to pass a supernote into the international financial 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. - (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 these regimes and the serious threat they 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 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. - (3) On March 7, 2013, the United Nations Security Council unanimously adopted Resolution 2094, which— - (A) welcomed the Financial Action Task Force’s recommendation on financial sanctions related to proliferation, and its guidance on the implementation of sanctions; - (B) decided that Member States should apply enhanced monitoring and other legal measures to prevent the provision of financial services or the transfer of property that could contribute to activities prohibited by applicable United Nations Security Council resolutions; and - (C) called on Member States to prohibit North Korean banks from establishing or 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. - (b) Sense of congress regarding the designation of north korea as a jurisdiction of primary money laundering concern— Congress— - (b) Requirements for financial institutions maintaining accounts for foreign financial institutions— - (1) Termination of correspondent or payable-through accounts— A domestic financial institution shall terminate any correspondent account that is established, maintained, administered, or managed for, or on behalf of, any person, foreign government, or financial institution designated under subsection (a) or (b) of section 104. - (1) Prohibition on indirect correspondent accounts— If a domestic financial institution has or obtains knowledge that a correspondent account established, maintained, administered, or managed by that domestic financial institution for a foreign financial institution is being used by acknowledges the foreign financial institution to provide financial services indirectly to any person, foreign government, or financial institution designated under subsection (a) or (b) efforts of section 104, the domestic United Nations Security Council to impose limitations on, and require enhanced monitoring of, transactions involving North Korean financial institution shall ensure institutions that the correspondent account is no longer used could contribute to provide such services, including, when necessary, terminating the correspondent account.sanctioned activities; - (2) Enhanced due diligence and reporting requirements— Except as provided urges the President, in section 207, the Secretary of Treasury shall require all domestic financial institutions strongest terms, to apply one or more consider immediately designating North Korea as a jurisdiction of the primary money laundering concern, and to adopt stringent special measures described in paragraphs (1) through (5) of section 5318A(b) to safeguard the financial system against the risks posed by North Korea’s willful evasion of title 31, United States Code, to—sanctions and its illicit activities; and - (A) any financial institution that establishes, maintains, administers, or manages any correspondent account for a person, financial institution, or foreign government designated under subsection (a) or (b) of section 104; and - (B) any person, financial institution, or foreign government designated under subsection (c) or (d) of section 104. - (3) Additional requirements— A domestic 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 institution required system, including by sharing information about activities, transactions, and property that could contribute to terminate an account pursuant activities sanctioned by applicable United Nations Security Council resolutions, or to this subsection—the evasion of sanctions. - (A) shall not permit the foreign bank to establish any new positions or execute any transactions through such account, other than those necessary to close the account; and - (B) may reestablish an account closed pursuant to such subsection if the Secretary of the Treasury determines that the account will not be used to provide financial services indirectly to a person designated under subsection (a) or (b) of section 104. - (5) Prohibition on designation as primary dealer— With respect to a designated person that is a domestic financial institution, neither the Board of Governors of the Federal Reserve System nor the Federal Reserve Bank of New York may designate, or permit the continuation of any prior designation of, such financial institution as a primary dealer in United States Government debt instruments. - (6) Prohibition on service as a repository of government funds— With respect to a designated person that is a domestic financial institution, such domestic financial institution may not serve as agent of the United States Government or serve as a repository for United States Government funds. - (7) Foreign exchange— The President may prohibit any transactions in foreign exchange by any domestic financial institution in which a designated person has any interest. - (8) Banking transactions— The President may prohibit any transfers of credit or payments between domestic financial institutions or by, through, or to any financial institution, to the extent that such transfers or payments involve any interest of a designated person. - (9) Penalties— - (A) Title 31, U.S.C— The penalties provided for in sections 5321(a) and 5322 of title 31, United States Code, shall apply to a person that violates a regulation prescribed under paragraph (1), (2), (3), or (4) in the same manner and to the same extent as such penalties would apply to any person that is otherwise subject to such section 5321(a) or 5322. - (B) IEEPA— 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 a regulation prescribed under paragraph (5), (6), (7), or (8) in the same manner and to the same extent as such penalties would apply to any person that is otherwise subject to such section. - (c) Blocking of property—Determinations regarding north korea— - (1) In general— The President shall exercise Secretary of the authorities Treasury shall, not later than 180 days after the date of the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) without regard to enactment of this Act, determine, in consultation with the Secretary of State and Attorney General, and in accordance with section 202 5318A of such Act to immediately freeze or block—title 31, United States Code, whether reasonable grounds exist for concluding that North Korea is a jurisdiction of primary money laundering concern. - (A) any North Korean property, and - (B) any property involved in any of the activities described in section 104(a), - (2) Property of a designated person—Enhanced due diligence and reporting requirements— The President may exercise Except as provided in section 207, if the authorities Secretary of the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) without regard to section 202 Treasury determines under this subsection that reasonable grounds exist for finding that North Korea is a jurisdiction of such Act to block any property primary money laundering concern, the Secretary of a designated person within the jurisdiction 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, or held by a domestic financial institution.States Code, with respect to the jurisdiction of North Korea. - (3) Report required— - (A) In general— The Secretary of the Treasury shall, not later than 180 days after the enactment of this Act, and for each of the 3 calendar years thereafter, submit to the appropriate congressional committees a report on the determination made under paragraph (1) together with the reasons for that determination. - (B) Form— A report or copy of any report submitted under this paragraph shall be submitted in unclassified form but may contain a classified annex. - (3) Property derived from misappropriation, theft, or embezzlement of public funds— The President shall exercise the authorities of the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) without regard to section 202 of such Act to encourage foreign governments and foreign financial institutions to block, in accordance with the legal process of the country in which the property is held, any property derived from the misappropriation, theft, or embezzlement of public funds by, or for the benefit of, an official of the Government of North Korea. - (4) Scope of authority— Activities prohibited by reason of the blocking of property and financial transactions under this section shall include the following: - (A) Payments or transfers of any property, or any transactions involving the transfer of anything of economic value by any United States person, including any United States financial institution and any branch or office of such financial institution that is located outside the United States, to a designated person. - (B) The transfer directly or indirectly, of any goods, technology, or services by a United States person to a designated person. - (d) Review of transaction licenses— The Secretary of the Treasury shall review all transaction licenses granted pursuant to subpart E of part 510 of title 31, Code of Federal Regulations, all applications for such licenses, and all exclusions from such licensing requirements not later than 180 days after the date of the enactment of this Act, and shall deny or revoke any license for any transaction that, in the determination of the Secretary of the Treasury, lacks sufficient financial controls to ensure that such transaction will not facilitate any of the activities described in section 104(a). - (e) Denial of visas— The President may direct the Secretary of State to deny a visa to, and the Secretary of Homeland Security to exclude from the United States, any alien who is a designated person, or who is a corporate officer or principal of, or a shareholder with a controlling interest in, a designated person. - (f) International cooperation— The President shall— - (1) take appropriate steps to secure the effective enforcement of anti-money laundering protocols consistent with the purpose of this Act, through bilateral discussions with foreign governments and through the Financial Action Task Force; and - (2) support efforts of foreign governments to enact and enforce legislation consistent with the purposes of this Act. ## Sec. 202 Ensuring the consistent enforcement of United Nations Security Council resolutions and financial restrictions on North Korea - (a) Findings— Congress finds that— - (a) Briefings required— - (1) In general— Not later than 90 days after the date of the enactment of this Act, and every 180 days thereafter, the President shall provide to the appropriate congressional committees a briefing on the following: - (A) A list of all persons and foreign governments that the President has identified that directly provide specialized financial messaging services to, or enable or facilitate direct or indirect access to such messaging services for, any North Korean financial institution designated under section 104(b). - (B) A detailed assessment of the status of efforts by the President to end the direct provision of such messaging services to, and the enabling or facilitation of direct or indirect access to such messaging services for any North Korean financial institution designated under section 104(b). - (1) Enabling or facilitation of access to specialized financial messaging services through intermediary financial institutions— For purposes of paragraph (1) all states and subsection (b), enabling or facilitating direct or indirect access to specialized financial messaging services for any North Korean financial institution designated under section 104(b) includes doing so by serving as an intermediary financial institution with access jurisdictions are obligated to such messaging services.implement and enforce applicable United Nations Security Council resolutions fully and promptly, including by— - (A) blocking the property of, and ensuring that any property is prevented from being made available to, persons designated by the Security Council under applicable United Nations Security Council resolutions; - (B) blocking any property associated with an activity prohibited by applicable United Nations Security Council resolutions; and - (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; - (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; - (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; - (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; - (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; - (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; - (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; - (8) Korea Daesong Bank and Korea Kwangson Banking Corporation have been designated by the Secretary of the Treasury and the European Union; - (9) the Foreign Trade Bank of North Korea has been designated by the Secretary of the Treasury for facilitating transactions on behalf of persons linked to its proliferation network, and for serving as “a key financial node”; and - (10) Daedong Credit Bank has been designated by the Secretary of the Treasury for activities 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, 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— - (b) Authorization of imposition of sanctions— - (1) In general— Except as provided in paragraph (2), if, on or after the date that is 180 days after the date of the enactment of this Act, a person continues to knowingly and directly provide specialized financial messaging services to, or knowingly enable or facilitate direct or indirect access to such messaging services for any North Korean financial institution designated under section 104(b), the President may impose sanctions pursuant to section 206(b) of the International Emergency Economic Powers Act (50 U.S.C. 1705(b)) with respect to the person. - (1) Exception— The President may not impose sanctions pursuant to paragraph (1) with respect to a person for directly providing specialized financial messaging services to, or enabling or facilitating direct or indirect access to such messaging services for, the cessation of any North Korean financial institution designated under section 104(b) if—services whose continuation is inconsistent with applicable United Nations Security Council resolutions; - (A) the person is subject to a sanctions regime under its governing foreign law that requires it to eliminate the knowing provision of such messaging services to, and the knowing enabling and facilitation of direct or indirect access to such messaging services for any North Korean financial institution designated under section 104(b); and - (B) the person has, pursuant to that sanctions regime, terminated the knowing provision of such messaging services to, and the knowing enabling and facilitation of direct or indirect access to such messaging services for, any North Korean financial institution designated under section 104(b) identified under such governing foreign law for purposes of that sanctions regime. - (2) Requirement for consultation— The President may not impose sanctions pursuant to paragraph (1) with respect to a person for directly providing specialized financial messaging services to, or enabling or facilitating direct or indirect access to such messaging services for, any North Korean financial institution designated under section 104(b) unless the President has made good-faith efforts to obtain the voluntary cessation of such specialized any financial messaging services to persons, including financial institutions, that present unacceptable risks of facilitating money laundering and illicit activity by such person.the Government of North Korea; - (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; and - (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. ## Sec. 203 Proliferation prevention sanctions - (a) Export of certain goods or technology— - (1) In general— Subject to section 207(a)(2)(C) of this Act, a license shall be required for the export to North Korea of any goods or 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. - (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. - (a) In general— Section 6(j) of the Export Administration Act of 1979 (50 U.S.C. App. 2405), as continued in effect under the International Emergency Economic Powers Act, is amended by adding at the end the following new paragraph: - “(7) A validated license shall be required for the export to North Korea of any goods or technology without regard to whether or not 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 paragraph (1) or any other provision of law.” - (b) Transactions with countries supporting acts of international terrorism— The prohibitions and restrictions described in section 40 of the Arms Export Control Act (22 U.S.C. 2780) 2780), and other provisions in that Act, shall also apply to exporting or otherwise providing (by sale, lease or loan, grant, or other means), directly or indirectly, any munitions item or defense articles and defense services 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. - (c) 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 any country that provides lethal military equipment to, or receives lethal military equipment from, the Government of North Korea. - (2) Applicability— The prohibition under this subsection with respect to a country shall terminate on the date that is 1 year after the date on which such country ceases to provide lethal military equipment to the Government of North Korea. - (3) Waiver— The President may waive the prohibition under this subsection with respect to a country if the President determines that it is in the national interest of the United States to do so. ## Sec. 204 Procurement sanctions - (a) In general— Except as provided in this section, the United States Government may not procure, or enter into any contract for the procurement of, any goods or services from any designated person. - (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 activities conduct described in section 104(a). Such amendment revision shall apply with respect to contracts in an amount greater than the simple acquisition threshold (as defined in section 134 of title 41, United States Code) for which solicitations are issued on or after the date that is 90 days after the date of the enactment of this Act. - (c) Termination of contracts and initiation of suspension and debarment proceeding— - (1) Termination of contracts— Except as provided in paragraph (2), the head of an executive agency shall terminate a contract with a person who has provided a false certification under subsection (b). - (2) Waiver— The head of an executive agency may waive the requirement under paragraph (1) with respect to a person based upon a written finding of urgent and compelling circumstances significantly 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. - (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 Government-wide database containing the list of all excluded parties ineligible for Federal programs pursuant to Executive Order 12549 (31 U.S.C. 6101 note; relating to debarment and suspension) and Executive Order 12689 (31 U.S.C. 6101 note; relating to debarment and suspension). - (c) GSA— 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). 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 terminate a contract with such person or debar or suspend such person from eligibility for Federal contracts for a period of not more than three years. Any such debarment or suspension shall be subject to the procedures that apply to debarment and suspension under the Federal Acquisition Regulation under subpart 9.4 of part 9 of title 48, Code of Federal Regulations. - (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)). - (e) Rule of construction— Nothing in his 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 inspections authorities - (a) Briefing required— Not later than 180 days after the date of the enactment of this Act, and every 180 days thereafter, the President President, acting through the Secretary of Homeland Security, shall provide to the appropriate congressional committees committees, the Committee on Homeland Security of the House of Representatives, and the Committee on Homeland Security and Governmental Affairs of the Senate, a briefing 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). - (b) Enhanced customs inspection 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 promulgate regulations imposing enhanced physical inspection requirements requirements, as identified by the Automated Targeting System operated by the National Targeting Center in U.S. Customs and Border Protection, on any cargo landed in the United States or entering interstate commerce that has been transported through such sea port or airport. - (c) Seizure and forfeiture— A vessel, aircraft, or conveyance used to facilitate any of the activities described in section 104(a) that comes within the jurisdiction of the United States may be seized and forfeited under chapter 46 of title 18, United States Code, or under chapter 4 of title 19, United States Code, and the proceeds Tariff Act of any such forfeiture shall be available for the purposes described in section 403.1930. ## Sec. 206 Travel sanctions - (a) Aliens ineligible for visas, admission, or parole— - (1) Visas, admission, or parole— An alien who the Secretary of State or the Secretary of 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— - (A) inadmissible to the United States; - (B) ineligible to receive a visa or other documentation to enter the United States; and - (C) otherwise ineligible to be admitted or paroled into the United States or to receive any other benefit under the Immigration and Nationality Act (8 U.S.C. 1101 et seq.). - (2) Current visas revoked— - (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. - (B) Effect of revocation— A revocation under subparagraph (A)— - (i) shall take effect immediately; and - (ii) shall automatically cancel any other valid visa or entry documentation that is in the alien’s possession. - (a) Condition on provision of united states funds to an international financial institution— Funds appropriated for payment to an international financial institution (as defined in section 1701(c)(2) of the International Financial Institutions Act (22 U.S.C. 262r(c)(2))) shall not be made available to the institution unless the institution provides assurances to the Secretary of State that the funds will not be used for assistance to the Government of North Korea. - (b) Opposition Exception to use of international financial institution funds for north korea—comply with united nations headquarters agreement— The United States Executive Director at each international financial institution (as so defined) Sanctions under subsection (a)(1)(B) shall use not apply to an alien if admitting the voice, vote, and influence of alien into the United States is necessary to oppose the provision by permit the institution of any assistance United States to comply with the Government Agreement regarding the Headquarters of North Korea.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. - (c) Transactions in defense articles and defense services— - (1) In general— The President shall withhold assistance under part I of the Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.) to the government of any country that provides defense articles and defense services to the Government of North Korea or receives defense articles and defense services from the Government of North Korea. - (2) Applicability— The prohibition described in paragraph (1) shall terminate on the date that is 2 years after the date on which such foreign government ceases to provide defense articles and defense services to the Government of North Korea, or to purchase or receive defense articles and defense services from the Government of North Korea. - (3) Waiver— Assistance may be furnished to a foreign government described in paragraph (1) if the President makes the determinations prescribed in subsection (b) of section 620G of the Foreign Assistance Act of 1961, as amended (22 U.S.C. 2377(b)). ## Sec. 207 Exemptions, waivers, and removals of designation - (a) Exemptions— - (1) Mandatory exemptions— The following activities shall be exempt from sanctions under section 104: - (a) Exclusions— The following activities shall not apply with respect to the requirement under subsection (a), (b), (c), or (d) of section 104 to designate a person, foreign government, or financial institution for purposes of imposing a sanction or sanctions on the designated person: - (A) [was (2)(3)] 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. - (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. - (2) Discretionary exemptions— The following activities may be exempt from sanctions under section 104 as determined by the President: - (A) Any financial transaction the exclusive purpose for which is to provide humanitarian assistance to the people of North Korea. - (B) Any financial transaction the exclusive purpose for which is to import food products into North Korea, if such food items are not defined as luxury goods. - (C) Any transaction the exclusive purpose for which is to import agricultural products, medicine, or medical devices into North Korea, provided that such supplies or equipment are classified as designated “EAR 99” under the Export Administration Regulations (part 730 of title 15, Code of Federal Regulations) and not controlled under— - (2) Any transaction the exclusive purpose for which is to provide humanitarian assistance to the people of North Korea. - (3) Any transaction the exclusive purpose for which is to import food products into North Korea, if such food items are not defined as luxury goods. - (4) Any transaction necessary to maintain a diplomatic or consular relationship 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 November 21, 1947, or under the Vienna Convention on Consular Relations, signed April 24, 1963, and entered into force on March 19, 1967. - (5) Any transaction the exclusive purpose for which is to import fertilizers, pesticides, agricultural equipment, or medical supplies or equipment into North Korea, provided that such supplies or equipment are not controlled under— - (i) [was (2)(7)(2)] 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.); - (ii) [was (2)(7)(3)] the Arms Export Control Act (22 U.S.C. 2751 et seq.); - (iii) [was (2)(7)(4)] part B of title VIII of the Nuclear Proliferation Prevention Act of 1994 (22 U.S.C. 6301 et seq.); or - (iv) [was (2)(7)(5)] the Chemical and Biological Weapons Control and Warfare Elimination Act of 1991 (22 U.S.C. 5601 et seq.). - (b) Waiver— The President may waive, on a case-by-case basis, the imposition of sanctions for a period of not more than one year, and may renew that waiver for additional periods of not more than one year, any sanction or other measure under section 104, 204, 205, 206, or 303 if the President submits to the appropriate congressional committees a written determination that the waiver meets one or more of the following requirements: - (b) Waivers— - (1) In general— The President may waive, on a case-by-case basis, and for a period not to exceed one year, the requirement under subsection (a) or (b) of section 104 to designate a person, foreign government, or financial institution, or to impose a sanction or sanctions on the designated person, if the President submits to the appropriate congressional committees a written determination that the waiver meets the following requirements: - (A) The waiver is vital to the economic or national security interests of the United States. - (B) The waiver will advance the purposes set forth in section 4 of the North Korea Human Rights Act of 2004 (22 U.S.C. 7801 et seq.). - (C) The waiver is for the benefit of a financial institution that— - (i) has blocked all North Korean property deposited in such financial institution, pending an audit of the origin of such property and the implementation of safeguards to ensure that the property is not used to facilitate any of the activities described in section 104(a); and - (ii) is providing good-faith cooperation with the investigation of any of the activities described in section 104(a) or the enforcement of the provisions of this Act. - (D) The waiver is for the benefit of a person, foreign government, or financial institution that is providing good-faith cooperation with the investigation of any of the activities described in section 104(a) and the enforcement of this Act. - (E) The waiver is for the benefit of a person, foreign government, or financial institution that provides underwriting, financial, insurance, reinsurance, reflagging, transportation, or financial messaging services, and who has exercised due diligence in establishing and enforcing official policies, procedures, and controls to ensure that the person, foreign government, or financial institution (as the case may be) does not facilitate any of the activities described in section 104(a). - (F) In the absence of the waiver, the imposition of the sanction or sanctions would have a severe and adverse humanitarian impact on the people of North Korea and such impact substantially outweighs the interest of the United States in enforcing the provisions of this Act. - (1) Government of North Korea— The President may waive, on a case-by-case basis, and for a period not to exceed one year, the requirement under section 104(c) waiver is important to designate the Government of North Korea, or to impose a sanction economic or sanctions on the Government national security interests of North Korea, if the President submits to the appropriate congressional committees a written determination that the waiver meets the requirements described in paragraph (1)(F).United States. - (2) The waiver will further the enforcement of this Act or is for an important law enforcement purpose. - (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). - (c) Removal Removals of sanctions— The President may prescribe rules and regulations for the removal of sanctions on a person, foreign government, or financial institution person that is designated under subsection (a), (b), (a) or (d) (b) of section 104 and the removal of designations of a person, foreign government, or financial institution person with respect to such sanctions if the President determines that the designated person has verifiably ceased its participation in any of the activities conduct described in subsection (a) or (b) of section 104(a) 104, as the case may be, and is cooperating with has given assurances that it will abide by the investigation requirements of such activities and carrying out this Act. - (d) Financial services for humanitarian and consular certain activities— The President may promulgate regulations, rules, and polices 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 exclusion exemption under this section. ## Sec. 208 Sense of Congress on enforcement of sanctions on North Korea — added - (a) Findings— Congress finds the following: - (1) On March 6, 2014, pursuant to United Nations Security Council Resolution 1874, a Panel of Experts issued a report assessing the enforcement of existing sanctions on North Korea. The Panel reported that North Korea continues to “trade in arms and related materiel in violation of the resolutions” and that “there is no question that it is one of the country’s most profitable revenue sources”. - (2) The Panel of Experts found that North Korea “presents a stiff challenge to Member States” through “multiple and tiered circumvention techniques” and “is experienced in actions it takes to evade sanctions”. - (b) Sense of Congress— It is the sense of Congress that the United States should work to increase the capacity of responsible nations to implement United Nations Security Council Resolutions 1695, 1718, 1874, 2087, and 2094, including to strengthen the capacity of responsible nations to monitor and interdict shipments to and from North Korea that contribute to prohibited activities under such Resolutions. ## Sec. 302 Report on North Korean prison camps - (a) In general— Section 13 of the Securities Exchange Act The Secretary of 1934 (15 U.S.C. 78m) is amended by adding at State shall submit to the end appropriate congressional committees a report describing, with respect to each political prison camp in North Korea to the following new subsection:extent information is available— - (1) the camp’s estimated prisoner population; - (2) the camp’s geographical coordinates; - (3) the reasons for confinement of the prisoners; - (4) the camp’s primary industries and products, and the end users of any goods produced in such camp; - (5) the natural persons 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 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. - “(s) Disclosure of certain activities relating to North Korea, terrorism, and the proliferation of weapons of mass destruction - “(1) General disclosure required—Each issuer required to file an annual or quarterly report under subsection (a) shall include with such report a statement of whether, during the period since the issuer made the last such report, the issuer or any affiliate of the issuer— - “(A) was designated under section 104 of the North Korea Sanctions Enforcement Act of 2013, or engaged in any of the activities described in section 104(a) of such Act; or - “(B) knowingly conducted any transaction or dealing with any person designated pursuant to subsection (a), (b), (c), or (d) of section 104 of the North Korea Sanctions Enforcement Act of 2013. - “(2) Specific disclosure required—If an issuer reports under paragraph (1) that the issuer or an affiliate of the issuer has engaged in any activity described in that paragraph, the issuer shall include with the statement required under that paragraph a detailed description of each such activity, including— - “(A) the nature and extent of the activity; - “(B) the revenues and profits, if any, attributable to the activity; and - “(C) whether the issuer or the affiliate of the issuer (as the case may be) intends to continue the activity. - “(3) Investigation of disclosures—When the Commission receives a report under paragraph (1) from an issuer that the issuer or an affiliate of the issuer has engaged in any activity described in that paragraph, the President shall— - “(A) initiate an investigation into the possible imposition of sanctions under the North Korea Sanctions Enforcement Act of 2013, the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.), Executive Order 13224, Executive Order 13382, Executive Order 13551, Executive Order 13570, or any other provision of law; and - “(B) not later than 180 days after initiating such an investigation, make such determinations as are required by section 104 of the North Korea Sanctions Enforcement Act of 2013.” - (b) Effective date—Form— The amendment made by report required under subsection (a) shall take effect with respect to reports may be included in the first report required to be filed with the Securities and Exchange Commission after a date that is 90 days submitted to Congress after the date of the enactment of this Act.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). ## Sec. 303 Report on persons who are responsible for serious human rights abuses or censorship in North Korea - (a) Sense of congress—In general— It is the sense of Congress that the United States should support the decision The Secretary of any State or local government shall submit to the appropriate congressional committees a report that contains an identification of each person the Secretary determines to be responsible for moral, prudential, or reputational reasons divests from, serious human rights abuses or prohibits the investment of assets censorship in North Korea and a description of such State abuses or local government in, a person that engages in investment activities censorship engaged in North Korea, if North Korea is subject to economic sanctions imposed by the United States.such person. - (b) Authority To divest—Consideration— Notwithstanding any other provision of law, a State or local government may adopt and enforce measures that meet In preparing the requirements of report required under subsection (d) to divest (a), the assets Secretary of such State or local government from, or prohibit investment shall give due consideration to the findings of the assets United Nations Commission of such State or local government in, any person that such State or local government determines, using credible information available Inquiry on Human Rights in North Korea, and shall make specific findings with respect to the public, engages in investment activities in responsibility of Kim Jong Un, and of each natural person who is a member of the National Defense Commission of North Korea described in subsection (c).Korea, for serious human rights abuses and censorship. - (c) Investment activities described—Designation of Persons— A The President shall designate under section 104(a) any person engages listed in investment activities the report required under subsection (a) as responsible for serious human rights abuses or censorship in North Korea described in this subsection if the person—Korea. - (d) Submission and form— - (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). - (1) has an investment of $10,000 or more in North Korea; or - (2) is a financial institution that extends $10,000 or more in credit to another person, for 45 days or more, if such person will use such credit for investment in North Korea. - (d) Requirements— Any measure taken by a State or local government under subsection (b) shall meet the following requirements: - (2) Notice—Form— The State or local government shall provide written notice to each person with respect to which a measure report required under this section is to subsection (a) shall be applied.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 website. - (2) Timing— The measure applied under this section shall apply to a person not earlier than the date that is 90 days after the date on which written notice is provided to such person under paragraph (1). - (3) Opportunity for hearing— The State or local government at issue shall provide an opportunity to comment in writing to each person with respect to which a measure is to be applied under this section. If such person demonstrates to such State or local government that such person does not engage in investment activities in North Korea described in subsection (c), such measure shall not apply to such person. - (4) Sense of congress on avoiding erroneous targeting— It is the sense of Congress that a State or local government should not adopt a measure under subsection (b) with respect to a person unless such State or local government has made every effort to avoid erroneously targeting such person and has verified that such person engages in investment activities in North Korea described in subsection (c). - (e) Notice to department of justice— Not later than 30 days after a State of local government applies a measure under this section, such State or local government shall notify the Attorney General of such measure. - (f) Nonpreemption— A measure applied by a State or local government authorized under subsection (b) or (i) is not preempted by any Federal law or regulation. - (g) Definitions— In this section: - (1) Asset— - (A) In general— Except as provided in subparagraph (B), the term asset refers to public monies and includes any pension, retirement, annuity, or endowment fund, or similar instrument, that is controlled by a State or local government. - (B) Exception— The term asset does not include employee benefit plans covered by title I of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1001 et seq.). - (2) Investment— The term investment includes— - (A) a commitment or contribution of funds or property; - (B) a loan or other extension of credit; and - (C) the entry into or renewal of a contract for goods or services. - (h) Effective date— - (1) In general— Except as provided in paragraph (2) or subsection (i), this section applies to measures applied by a State or local government before, on, or after the date of the enactment of this Act. - (2) Notice requirements— Except as provided in subsection (i), subsections (d) and (e) apply to measures applied by a State or local government on or after the date of the enactment of this Act. - (i) Authorization for prior applied measures— - (1) In general— Notwithstanding any other provision of this section or any other provision of law, a State or local government may enforce a measure (without regard to the requirements of subsection (d), except as provided in paragraph (2)) applied by such State or local government before the date of the enactment of this Act that provides for the divestment of assets of such State or local government from, or prohibits the investment of the assets of such State or local government in, any person that such State or local government determines, using credible information available to the public, engages in investment activities in North Korea (determined without regard to subsection (c)) or other business activities in North Korea that are identified in such measure. - (2) Application of notice requirements— A measure described in paragraph (1) shall be subject to the requirements of paragraphs (1) and (2) and the first sentence of paragraph (3) of subsection (d) on and after the date that is two years after the date of the enactment of this Act. - (j) Rule of construction— Nothing in this Act or any other provision of law authorizing sanctions with respect to North Korea shall be construed to abridge the authority of a State or local government to issue and enforce rules governing the safety, soundness, and solvency of a financial institution subject to its jurisdiction or the business of insurance pursuant to the Act of March 9, 1945 (15 U.S.C. 1011 et seq.) (commonly known as the “McCarran-Ferguson Act”). ## Sec. 304 Safe harbor for changes of investment policies by asset managers — removed - (a) In general— Section 13(c)(1) of the Investment Company Act of 1940 (15 U.S.C. 80a–13(c)(1)) is amended— - (1) in subparagraph (A), by striking “or” at the end; - (2) in subparagraph (B), by striking the period and inserting “; or”; and - (3) by adding at the end the following: - “(C) engage in investment activities in North Korea described in section 303 of the North Korea Sanctions Enforcement Act of 2013.” - (b) Securities and exchange commission regulations— Not later than 120 days after the date of the enactment of this Act, the Securities and Exchange Commission shall issue any revisions the Commission determines to be necessary to the regulations requiring disclosure by each registered investment company that divests itself of securities in accordance with section 13(c) of the Investment Company Act of 1940 (15 U.S.C. 80a–13(c)), including divestments of securities in accordance with subparagraph (C) of such section, as added by subsection (a)(3). ## Sec. 305 Sense of Congress regarding certain ERISA plan investments — removed - It is the sense of Congress that a fiduciary of an employee benefit plan, as defined in section 3(3) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1002(3)), may divest plan assets from, or avoid investing plan assets in, any person the fiduciary determines engages in investment activities in North Korea described in section 406 of this Act, without breaching the responsibilities, obligations, or duties imposed upon such fiduciary by subparagraph (A) or (B) of section 404(a)(1) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1104(a)(1)), if— - (1) such fiduciary makes such determination using credible information that is available to the public; and - (2) such fiduciary prudently determines that the result of such divestment or avoidance of investment would not be expected to provide the employee benefit plan with— - (A) a lower rate of return than alternative investments with commensurate degrees of risk; or - (B) a higher degree of risk than alternative investments with commensurate rates of return. ## Sec. 306 Report on North Korean prison camps — removed - (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— - (1) the camp’s estimated prisoner population; - (2) the camp’s geographical coordinates; - (3) the reasons for confinement of the prisoners; - (4) the camp’s primary industries and products, and the end users of any goods produced in such camp; - (5) the natural persons 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 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. - (b) Form— The report required under subsection (a) shall 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). ## Sec. 307 Limits on jurisdictional immunity — removed - The exception to immunity provided in section 1605A of title 28, United States Code, applies to North Korea, to the same extent as any foreign state (as defined in section 1603 of such title), and (as provided in section 1605(c) of such title) to any official, employee, or agent of North Korea, without regard to whether or not North Korea is designated as a state sponsor of terrorism, as defined in section 1605A(h) of such title. ## Sec. 401 Suspension of sanctions and other measures - (a) In general— Any sanction or other measure required by title II I, II, or III of this Act (or any amendment made by title II I, II, or III of this Act) 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— - (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; - (2) taken significant steps toward financial transparency to comply with generally accepted protocols to cease and prevent the laundering of monetary instruments; - (3) taken significant steps toward verification of its compliance with United Nations Security Council Resolutions 1695, 1718, 1874, 2087, and 2094; - (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;Korea or detained in violation of the 1953 Armistice Agreement; - (E) taken significant steps toward verification of its compliance with the Joint Statement of September 19, 2005; - (5) [was (2)(8)] accepted and begun to abide by internationally recognized standards for the distribution and monitoring of humanitarian aid; - (6) provided credible assurances that it will not support further acts of international terrorism; - (7) provided credible assurances that it will not support further acts of international terrorism; taken significant and verified steps to improve living conditions in its political prison camps; and - (8) taken made significant and verified steps to improve living conditions progress in its political prison camps.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. - (b) Renewal of suspension— The suspension described in paragraph (1) subsection (a) may be renewed for an additional consecutive period periods of 365 days upon certification by the President to the appropriate congressional committees that the Government of North Korea—Korea has continued to comply with the conditions described in subsection (a) during the previous year. - (A) has continued to make significant progress toward compliance with the conditions described in paragraph (1) during the previous year; and - (B) meets 2 or more of the requirements described in paragraphs (1) through (6) of section 402. ## Sec. 402 Termination of sanctions and other measures - Any sanction or other measure required by title II I, II, or III and of this Act (or any amendment made by title II I, II, or III of this Act) 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— - (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; - (2) released all political prisoners, including the citizens of North Korea detained in the North Korea’s political prison camps; - (3) ceased its censorship of peaceful political activity; - (4) has taken significant steps toward the establishment of an open, transparent, and representative society; - (5) has fully accounted for and repatriated all citizens of all nations abducted or unlawfully held captive by the Government of North Korea; Korea or detained in violation of the 1953 Armistice Agreement; and - (6) made public commitments to, agreed with the Financial Action Task Force on a plan of action to address deficiencies in its anti-money laundering regime and continues begun to make significant progress toward—implement this plan of action. - (A) establishing an independent judiciary; and - (B) respecting the human rights and basic freedoms recognized in the Universal Declaration of Human Rights. ## Sec. 403 Regulations - (a) Establishment—In general— There The President is established in the Treasury of the United States a fund authorized to be known promulgate such rules and regulations as may be necessary to carry out the North Korea Enforcement and Humanitarian Fund (in provisions of this Act (which may include regulatory exceptions), including under section referred to as 205 of the “Fund”).International Emergency Economic Powers Act (50 U.S.C. 1704). - (b) Deposits—Rule of construction— All revenues derived from any criminal, civil, or administrative forfeitures of property involved Nothing in this Act or any amendment made by this Act shall be construed to limit the authority of the activities described in section 104(a), and all revenues derived from any agreement President to defer prosecution for any such activities, and all revenues derived from penalties assessed under section 206 of designate or sanction persons pursuant to an applicable Executive order or otherwise pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1705) arising from violations of section 104(a) or the regulations promulgated under section 104(f) or section 404, shall be deposited into the Fund, and may be transferred and consolidated on the books of the Treasury into a special account for the purposes described in subsection (c).1701 et seq.). - (c) Uses— There are authorized to be appropriated from the Fund each fiscal year— - (1) such amounts as shall be necessary and appropriate for the administration of the Fund; and - (2) without regard to fiscal year limitation, amounts not exceeding— - (A) for salaries, benefits, and expenses for persons assigned by the President to conduct investigations and enforce sanctions as prescribed in this Act, $5,000,000; - (B) for any of the purposes described in section 524(c) of title 28, United States Code, or section 9703 of title 31, United States Code, with respect to investigations and enforcement activities under title I or title II, $5,000,000; - (C) to carry out section 103 of the North Korea Human Rights Act of 2004 (22 U.S.C. 7813), $3,000,000; - (D) to carry out section 104 of the North Korea Human Rights Act of 2004 (22 U.S.C. 7814), $5,000,000; - (E) to carry out section 203 of the North Korea Human Rights Act of 2004 (22 U.S.C. 7833), $5,000,000; and - (F) to carry out subsection (d) of section 104 of the North Korean Human Rights Act of 2004 (22 U.S.C. 7814) (as added by section 301 of this Act), $2,000,000. - (d) Transfer— To prevent the accumulation of excessive surpluses in the Fund, in any fiscal year an amount specified in an annual appropriation law may be transferred out of the Fund and deposited, in equal proportions, into the funds established under section 9703 of title 31, United States Code, and under section 524(c) of title 28, United States Code. - (e) Sunset— The Fund established under this section shall cease to exist on September 30, 2023, and any unexpended funds remaining in the Fund after such date shall be transferred in accordance with subsection (d). ## Sec. 404 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. - (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. - (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 to designate or sanction persons pursuant to Executive Order No. 13382, 13224, 13551, or otherwise pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.). ## Sec. 405 Effective date — removed - 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.