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Title I — Investigations, prohibited conduct, and penalties

S. 3012 · 113th Congress · Dec 12, 2014 · Lineage

I Investigations, prohibited conduct, and penalties

Sec. 101 Statement of policy

In order to achieve the peaceful disarmament of North Korea, Congress finds that it is necessary—
(1)
to encourage all member states to fully and promptly implement United Nations Security Council Resolution 2094 (adopted March 7, 2013);
(2)
to sanction the persons, including financial institutions, that facilitate proliferation, illicit activities, arms trafficking, imports of luxury goods, serious human rights abuses, cash smuggling, and censorship by the Government of North Korea;
(3)
to authorize the President to sanction persons who fail to exercise due diligence to ensure that such financial institutions and jurisdictions do not facilitate proliferation, arms trafficking, kleptocracy, and imports of luxury goods by the Government of North Korea;
(4)
to deny the Government of North Korea access to the funds it uses to obtain nuclear weapons, ballistic missiles, and luxury goods instead of providing for the needs of its people; and
(5)
to enforce sanctions in a manner that avoids any adverse humanitarian impact on the people of North Korea.

Sec. 102 Investigations

(a)
Initiation— The President is authorized to initiate an investigation into the possible designation of a person under section 104(a) upon receipt by the President of credible information indicating that such person has engaged in conduct described in section 104(a).
(b)
Personnel— The President may direct the Secretary of State, the Secretary of the Treasury, and the heads of other Federal departments and agencies as may be necessary to assign sufficient experienced and qualified investigators, attorneys, and technical personnel—
(1)
to investigate the conduct described in subsections (a) and (b) of section 104; and
(2)
to coordinate and ensure the effective enforcement of 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.

Sec. 104 Designation of persons

(a)
Prohibited activities—
(1)
Prohibited conduct described— Except as provided in section 207, the President may designate under this subsection any person that the President determines—
(A)
knowingly (directly or indirectly) imported, exported, or reexported to, into, or from North Korea any goods, services, or technology controlled for export by the United States due to their use for weapons of mass destruction and their delivery systems and materially contributing to the use, development, production, possession, or acquisition by any persons of a nuclear, radiological, chemical, or biological weapon, or any device or system designed in whole or in part to deliver such a weapon;
(B)
knowingly (directly or indirectly) provided training, advice, or other services or assistance, or engaged in significant financial transactions, relating to the manufacture, maintenance, or use of any such weapon or system to be imported, exported, or reexported to, into, or from North Korea;
(C)
knowingly (directly or indirectly) imported, exported, or reexported luxury goods to or into North Korea;
(D)
knowingly engaged in, or is responsible for, censorship by the Government of North Korea;
(E)
knowingly engaged in, or is responsible for, serious human rights abuses by the Government of North Korea;
(F)
knowingly (directly or indirectly) engaged in money laundering, the counterfeiting of goods or currency, bulk cash smuggling, or narcotics trafficking that supports the Government of North Korea or any senior official thereof; or
(G)
knowingly attempted to engage in any of the conduct described in subparagraphs (A) through (E).
(2)
Penalties— The penalties provided for in subsections (b) and (c) of section 206 of the International Emergency Economic Powers Act (50 U.S.C. 1705) shall apply to any person who violates, attempts to violate, conspires to violate, or causes a violation of any prohibition under this subsection, or of an order or regulation prescribed under this Act, to the same extent that such penalties apply to a person that commits an unlawful act described in section 206(a) of such Act (50 U.S.C. 1705(a)).
(b)
Additional prohibited activities—
(1)
Prohibited conduct described— Except as provided in section 207, the President may designate under this subsection any person that the President determines—
(A)
knowingly engaged in, contributed to, assisted, sponsored, or provided financial, material or technological support for, or goods and services in support of, any person designated pursuant to an applicable United Nations Security Council resolution;
(B)
knowingly contributed to—
(i)
the bribery of an official of the Government of North Korea;
(ii)
the misappropriation, theft, or embezzlement of public funds by, or for the benefit of, an official of the Government of North Korea; or
(iii)
the use of any proceeds of any such conduct; or
(C)
knowingly and materially assisted, sponsored, or provided significant financial, material, or technological support for, or goods or services to or in support of, the activities described in subparagraph (A) or (B).
(2)
Effect of designation— With respect to any person designated under this subsection, the President may—
(A)
apply the sanctions described in section 204, 205, or 206;
(B)
apply any of the special measures described in section 5318A of title 31, United States Code;
(C)
prohibit any transactions in foreign exchange—
(i)
that are subject to the jurisdiction of the United States; and
(ii)
in which such person has any interest; and
(D)
prohibit any transfers of credit or payments between financial institutions or by, through, or to any financial institution, to the extent that such transfers or payments—
(i)
are subject to the jurisdiction of the United States; and
(ii)
involve any interest of such person.
(c)
Asset blocking— The President shall exercise all of the powers granted to the President under the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) to the extent necessary to block and prohibit all transactions in property and interests in property of a person determined by the President to be subject to this section if such property and interests in property are in the United States, come within the United States, or are or come within the possession or control of a United States person.
(d)
Application— The designation of a person under subsection (a) or (b) and the blocking of property and interests in property under subsection (c) shall apply with respect to a person who is determined to be owned or controlled by, or to have acted or purported to have acted for or on behalf of (directly or indirectly) any person whose property and interests in property are blocked pursuant to this section.
(e)
Transaction licensing— The President shall deny or revoke any license for any transaction that the President determines to lack sufficient financial controls to ensure that such transaction will not facilitate any of the conduct described in subsection (a) or (b).

Sec. 105 Forfeiture of property

(a)
Amendment to property subject to forfeiture— Section 981(a)(1) of title 18, United States Code, is amended by adding at the end the following:

“(I) Any real or personal property 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.”

(b)
Amendment to definition of civil forfeiture statute— Section 983(i)(2)(D) of title 18, United States Code, is amended to read as follows:

“(D) the Trading with the Enemy Act (50 U.S.C. App. 1 et seq.), the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.), or the North Korea Sanctions Enforcement Act of 2014; or”

(c)
Amendment to definition of specified unlawful activity— Section 1956(c)(7)(D) of title 18, United States Code, is amended—
(1)
by striking “or section 92 of the Atomic Energy Act of 1954” and inserting “section 92 of the Atomic Energy Act of 1954”; and
(2)
by adding at the end the following: “, or section 104(a) of the North Korea Sanctions Enforcement Act of 2014 (relating to prohibited trade with North Korea);”.
(d)
Authorization of appropriations— From the amounts in the Assets Forfeiture Fund established under section 524(c) of title 28, United States Code, or the Department of the Treasury Forfeiture Fund established under section 9703 of title 31, United States Code, as added by the Treasury Forfeiture Fund Act of 1992 (section 638 of Public Law 102–393), there are authorized to be appropriated for each of the fiscal years 2015 through 2023, in such proportions as the President may determine, and without fiscal year limitation, $5,000,000 for law enforcement expenses for the enforcement of this Act or any amendment made by this Act, including salaries and expenses of investigators, attorneys, technical personnel, and such personnel as the President determines to be necessary to enforce this Act or any such amendment.
(e)
Payment in lieu of forfeiture— Any money paid to the United States by a financial institution or other person in lieu of the commencement of criminal, civil, or administrative forfeiture proceedings to forfeit property involving any activity described in section 104(a) or in settlement of such forfeiture proceedings—
(1)
shall be treated as forfeited funds; and
(2)
shall be deposited, in such proportions as the President may determine, into—
(A)
the Assets Forfeiture Fund established under section 524(c) of title 28, United States Code; or
(B)
the Department of the Treasury Forfeiture Fund established under section 9703 of title 31, United States Code, as added by the Treasury Forfeiture Fund Act of 1992 (section 638 of Public Law 102–393).
(f)
Rule of construction— Nothing in this title or any amendment made by this title may be construed to restrict or limit the authority of the President under—
(1)
section 524(c) of title 28, United States Code; or
(2)
section 9703 of title 31, United States Code, as added by the Treasury Forfeiture Fund Act of 1992 (section 638 of Public Law 102–393).