H.R. 757 — what changed
North Korea Sanctions and Policy Enhancement Act of 2016
From Reported in House to Engrossed in House. 8 sections amended and 1 added between Reported in House and Engrossed in House.
Section 1 Short title; table of contents
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Short title— This Act may be cited as the “North Korea Sanctions Enforcement Act of 2015”.2016”.
Table of contents— The table of contents for this Act is as follows:
Sec. 3 Definitions
In this Act:
Applicable Executive order— The term applicable Executive order means—
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Executive Order No. 13382 (2005), 13466 (2008), 13551 (2010), or 13570 (2011), or 13687 (2015) to the extent that such Executive order authorizes the imposition of sanctions on persons for conduct, or prohibits transactions or activities, involving the Government of North Korea; or
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.
Applicable United Nations Security Council resolution— The term applicable United Nations Security Council resolution means—
United Nations Security Council Resolution 1695 (2006), 1718 (2006), 1874 (2009), 2087 (2013), or 2094 (2013); or
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.
Appropriate congressional committees— The term appropriate congressional committees means—
the Committee on Foreign Affairs, the Committee on Ways and Means, and the Committee on Financial Services of the House of Representatives; and
the Committee on Foreign Relations and the Committee on Banking, Housing, and Urban Affairs of the Senate.
Designated person— The term designated person means a person designated under subsection (a) or (b) of section 104 for purposes of applying one or more of the sanctions described in title I or II of this Act with respect to the person.
Government of North Korea— The term Government of North Korea means—
the Government of the Democratic People’s Republic of Korea or any political subdivision, agency, or instrumentality thereof; and
any person owned or controlled by, or acting for or on behalf of, the Government of the Democratic People’s Republic of Korea.
International terrorism— The term international terrorism has the meaning given such term in section 140(d) of the Foreign Relations Authorization Act, Fiscal Years 1988 and 1989 (22 U.S.C. 2656f(d)), and includes the conduct described in section 212(a)(3)(B)(iii) of the Immigration and Nationality Act (8 U.S.C. 1182(a)(3)(B)(iii)), to the extent such conduct involves the citizens of more than one country.
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.
Monetary instrument— The term monetary instrument has the meaning given such term under section 5312 of title 31, United States Code.
North Korean financial institution— The term North Korean financial institution means—
a financial institution organized under the laws of North Korea or any jurisdiction within North Korea (including a foreign branch of such institution);
any financial institution located in North Korea, except as may be excluded from such definition by the President in accordance with section 207(d);
any financial institution, wherever located, owned or controlled by the Government of North Korea; and
any financial institution, wherever located, owned or controlled by a financial institution described in subparagraph (A), (B), or (C).
Other stores of value— The term other stores of value means—
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
any covered goods, as defined in section 1027.100 of title 31, Code of Federal Regulations, and any instrument or tangible or intangible access device used for the storage and transmission of a representation of covered goods, or other device, as defined in section 1027.100 of title 31, Code of Federal Regulations.
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Person— The term person means an individual or entity as determined by has the Secretary meaning given such term in section 510.306 of State and the Secretary title 31, Code of the Treasury.Federal Regulations.
Significant activities undermining cyber security— The term “significant activities undermining cyber security” means—
significant efforts to—
deny access to or degrade, disrupt, or destroy an information and communications technology system or network; or
exfiltrate information from such a system or network without authorization;
significant destructive malware attacks;
significant denial of service activities; or
such other significant activities as may be described in regulations promulgated to implement section 104.
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United states person— The term United States person means—has the meaning given such term in section 510.311 of title 31, Code of Federal Regulations.
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a natural person who is a citizen of the United States or who owes permanent allegiance to the United States; and
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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 natural persons described in subparagraph (A) own, directly or indirectly, more than 50 percent of the outstanding capital stock or other beneficial interest in such legal entity.
Sec. 104 Designation of persons for prohibited conduct and mandatory and discretionary designation and sanctions authorities
Prohibited conduct and mandatory designation and sanctions authority—
Conduct described— Except as provided in section 207, the President shall designate under this subsection any person the President determines to—
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;
have knowingly imported, exported, or reexported to, into, or from North Korea any significant arms or related materiel, whether directly or indirectly;
have knowingly provided significant training, advice, or other services or assistance, or engaged in significant transactions, related to the manufacture, maintenance, or use of any arms or related materiel to be imported, exported, or reexported to, into, or from North Korea, or following their importation, exportation, or reexportation to, into, or from North Korea, whether directly or indirectly;
have knowingly, directly or indirectly, imported, exported, or reexported significant luxury goods to or into North Korea;
have knowingly engaged in or been responsible for censorship by the Government of North Korea, including prohibiting, limiting, or penalizing the exercise of freedom of expression or assembly, limiting access to print, radio or other broadcast media, Internet or other electronic communications, or the facilitation or support of intentional frequency manipulation that would jam or restrict an international signal;
have knowingly engaged in or been responsible for serious human rights abuses by the Government of North Korea, including torture or cruel, inhuman, or degrading treatment or punishment, prolonged detention without charges and trial, forced labor or trafficking in persons, causing the disappearance of persons by the abduction and clandestine detention of those persons, and other denial of the right to life, liberty, or the security of a person;
have knowingly, directly or indirectly, engaged in acts of money laundering, the counterfeiting of goods or currency, bulk cash smuggling, narcotics trafficking, or other illicit activity that involves or supports the Government of North Korea or any senior official thereof, whether directly or indirectly; or
have knowingly attempted to engage in any of the conduct described in subparagraphs (A) through (G) of this paragraph.
Effect of designation— With respect to any person designated under this subsection, the President—
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shall exercise the authorities of the International Emergency Economic Powers Act (50 U.S.C. 1705 et seq.) to block all property and interests in property of any person designated under this subsection that are in the United States, that hereafter come within the United States, or that are or hereafter come within the possession or control of any United States person, including any overseas foreign branch; and
may apply any of the sanctions described in sections 204, 205(c), and 206.
Penalties— The penalties provided for in section 206 of the International Emergency Economic Powers Act (50 U.S.C. 1705) shall apply to a person who violates, attempts to violate, conspires to violate, or causes a violation of any prohibition provided for in this subsection, or of an order or regulation prescribed under this Act, to the same extent that such penalties apply to a person that commits an unlawful act described in section 206(a) of that Act (50 U.S.C. 1705(a)).
Definition— In paragraph (1)(F), the term “trafficking in persons” has the meaning given the term in section 103(9) of the Trafficking Victims Protection Act of 2000 (22 U.S.C. 7102(9)).
Discretionary designation and sanctions authority—
Conduct described— Except as provided in section 207 and paragraph (3) of this subsection, the President may designate under this subsection any person that the President determines to—
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;
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;
have knowingly facilitated the transfer of any funds, financial assets, or economic resources, or any property or interests in property derived from, involved in, or that has materially contributed to conduct prohibited by subsection (a) or an applicable United Nations Security Council resolution;
have knowingly facilitated any transaction, including any transaction in bulk cash or other stores of value, without applying enhanced monitoring to ensure that such transaction does not contribute materially to conduct described in subsection (a) an applicable Executive order, or an applicable United Nations Security Council resolution;
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;
have knowingly, directly or indirectly, engaged in significant activities undermining cyber security for, in support of on behalf of, the Government of North Korea or any senior official thereof, or have knowingly contributed to the bribery of an official of the Government of North Korea, the misappropriation, theft, or embezzlement of public funds by, or for the benefit of, an official of the Government of North Korea, or the use of any proceeds of any such conduct; or
have knowingly and materially assisted, sponsored, or provided significant financial, material, or technological support for, or goods or services to or in support of, the conduct described in subparagraphs (A) through (F) of this paragraph or the conduct described in subparagraphs (A) through (G) of subsection (a)(1).
Effect of designation— With respect to any person designated under this subsection, the President—
may apply the sanctions described in section 204;
may apply any of the special measures described in section 5318A of title 31, United States Code;
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;
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
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may exercise the authorities of the International Emergency Economic Powers Act (50 U.S.C. 1705 et seq.) without regard to section 202 of such Act to block any property and interests in property of any person designated under this subsection that are in the United States, that hereafter come within the United States, or that are or hereafter come within the possession or control of any United States person, including any overseas foreign branch.
Limitation— If the President determines that a person has engaged in any conduct described in subparagraphs (A) through (F) of paragraph (1) that may also be construed to constitute conduct described in subparagraphs (A) through (H) of subsection (a)(1), the President may not designate the person under this subsection but rather shall designate the person under subsection (a).
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Blocking of all property and interests in property of the Government of North Korea and the Worker’s Party of Korea— Except as provided in section 207, the President shall exercise the authorities of the International Emergency Economic Powers Act (50 U.S.C. 1705 et seq.) to block all property and interests in property of the Government of North Korea or the Worker’s Party of Korea that on or after the date of the enactment of this Act come within the United States, or that come within the possession or control of any United States person, including any overseas foreign branch.
Application— The designation of a person under subsection (a) or (b) and the blocking of property and interests in property under subsection (c) shall also apply with respect to a person who is determined to be owned or controlled by, or to have acted or purported to act for or on behalf of, directly or indirectly, any person whose property and interests in property are blocked pursuant to this section.
Licensing—
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License required— Not later than 180 days after the date of enactment of this Act, the President shall promulgate regulations prohibiting United States persons from engaging in any transaction involving any property—property or services—
in which the Government of North Korea has an interest;
located in North Korea;
of North Korean origin; or
knowingly transferred, directly or indirectly, to the Government of North Korea.
Transaction licensing— The President shall deny or revoke any license for any transaction that, in the determination of the President, lacks sufficient financial controls to ensure that such transaction will not facilitate any of the conduct described in subsection (a) or subsection (b).
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Licensing Authorization— The President may issue regulations to authorize—
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Licensing Authorization—
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In general— Subject to subparagraph (B), the President may issue regulations to authorize—
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was (6)(4)(2)(3)
transactions for the purposes described in section 207; and
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was (6)(4)(2)(4)
transactions and activities authorized under North Korean Human Rights Act of 2004 (22 U.S.C. 7801 et seq.).
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Prohibition— The President may not issue regulations to authorize transactions under clause (i) or (ii) of subparagraph (A) if such transactions include any transactions with the Government of North Korea.
Sec. 105 Forfeiture of property
Amendment to property subject to forfeiture— Section 981(a)(1) of title 18, United States Code, is amended by adding at the end the following new subparagraph:
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“(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 2015.”2016.”
Amendment to definition of civil forfeiture statute— Section 983(i)(2)(D) of title 18, United States Code, is amended—
by striking “or the International Emergency Economic Powers Act” and inserting “, the International Emergency Economic Powers Act”; and
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by adding at the end before the semicolon the following: “, or the North Korea Sanctions Enforcement Act of 2015”.2016”.
Amendment to definition of specified unlawful activity— Section 1956(c)(7)(D) of title 18, United States Code, is amended—
by striking “or section 92 of the Atomic Energy Act of 1954” and inserting “section 92 of the Atomic Energy Act of 1954”; and
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by adding at the end the following: “, or section 104(a) of the North Korea Sanctions Enforcement Act of 2015;”.2016;”.
Sec. 206 Travel sanctions
Aliens ineligible for visas, admission, or parole—
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Visas, admission, or parole— An alien (or an alien who is a corporate officer of a person (as defined in subparagraph (B) or (C) of section 3(11))) person) who the Secretary of State or the Secretary of Homeland Security (or a designee of one of such Secretaries) knows, or has reasonable grounds to believe, is described in subsection (a)(1) or (b)(1) of section 104 is—
inadmissible to the United States;
ineligible to receive a visa or other documentation to enter the United States; and
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.).
Current visas revoked—
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.
Effect of revocation— A revocation under subparagraph (A)—
shall take effect immediately; and
shall automatically cancel any other valid visa or entry documentation that is in the alien’s possession.
Exception To comply with united nations headquarters agreement— Sanctions under subsection (a)(1)(B) shall not apply to an alien if admitting the alien into the United States is necessary to permit the United States to comply with the Agreement regarding the Headquarters of the United Nations, signed at Lake Success June 26, 1947, and entered into force November 21, 1947, between the United Nations and the United States, or other applicable international obligations.
Sec. 207 Exemptions, waivers, and removals of designation
Exemptions—
Mandatory exemptions— The following activities shall be exempt from sanctions under section 104:
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.
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.
Discretionary exemptions— The following activities may be exempt from sanctions under section 104 as determined by the President:
Any financial transaction the exclusive purpose for which is to provide humanitarian assistance to the people of North Korea.
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.
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—
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.);
the Arms Export Control Act (22 U.S.C. 2751 et seq.);
part B of title VIII of the Nuclear Proliferation Prevention Act of 1994 (22 U.S.C. 6301 et seq.); or
the Chemical and Biological Weapons Control and Warfare Elimination Act of 1991 (22 U.S.C. 5601 et seq.).
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Waiver— The President may waive, on a case-by-case basis, the imposition of sanctions for a period of not more than one 1 year, and may renew that waiver for additional periods of not more than one 1 year, any sanction or other measure under section 104, 204, 205, 206, or 303 if the President submits to the appropriate congressional committees a written determination that the waiver meets one or more of the following requirements:
The waiver is important to the economic or national security interests of the United States.
The waiver will further the enforcement of this Act or is for an important law enforcement purpose.
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).
Removals of sanctions— The President may prescribe rules and regulations for the removal of sanctions on a person that is designated under subsection (a) or (b) of section 104 and the removal of designations of a person with respect to such sanctions if the President determines that the designated person has verifiably ceased its participation in any of the conduct described in subsection (a) or (b) of section 104, as the case may be, and has given assurances that it will abide by the requirements of this Act.
Financial services for certain activities— The President may promulgate regulations, rules, and policies as may be necessary to facilitate the provision of financial services by a foreign financial institution that is not controlled by the Government of North Korea in support of the activities subject to exemption under this section.
Sec. 301 Information technology
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Section 104 of the North Korean Human Rights Act of 2004 (22 U.S.C. 7814) is amended by inserting after subsection (c) the following new subsection:amended—
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in subsection (a), by striking “radios capable of receiving broadcasting” and inserting “radio, Internet, and electronic mass communications capable of receiving content”; and
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by adding after subsection (c) the following new subsection:
added “(d) Information technology study
added “(1) In general—Not later than 180 days after the date of the enactment of this subsection, the President shall submit to the appropriate congressional committees a report setting forth a detailed plan for making unrestricted, unmonitored, and inexpensive, radio, Internet, and electronic mass communications available to the people of North Korea.
added “(2) Form—The report required by paragraph (1) shall be submitted in unclassified form, but may contain a classified annex.”
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“(d) Information technology study
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“(1) In general—Not later than 180 days after the date of the enactment of this subsection, the President shall submit to the appropriate congressional committees a report setting forth a detailed plan for making unrestricted, unmonitored, and inexpensive, radio, Internet, and electronic mass communications available to the people of North Korea.
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“(2) Form—The report required by paragraph (1) shall be submitted in unclassified form, but may contain a classified annex.”
Sec. 405 No additional funds authorized
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Except as otherwise provided in this Act, No additional funds are authorized to carry out the requirements of this Act and the amendments made by this Act shall take effect on the date of the enactment of this Act.
Sec. 406 Effective date
addedadded 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.