HR 1771
HR 1771은 대북 제재에 관한 애드 로이스의 북한제재 이행법안이다..
[Congressional Bills 113th Congress]
[From the U.S. Government Printing Office]
[H.R. 1771 Introduced in House (IH)]
113th CONGRESS
1st Session
H. R. 1771
To improve the enforcement of sanctions against the Government of North
Korea, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 26, 2013
Mr. Royce (for himself, Mr. Engel, Mr. Chabot, Ms. Ros-Lehtinen, Mr.
Rohrabacher, Mr. Poe of Texas, Mr. Sherman, and Mr. Salmon) introduced
the following bill; which was referred to the Committee on Foreign
Affairs, and in addition to the Committees on Ways and Means, the
Judiciary, Financial Services, and Oversight and Government Reform, for
a period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
_______________________________________________________________________
A BILL
To improve the enforcement of sanctions against the Government of North
Korea, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``North Korea
Sanctions Enforcement Act of 2013''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Definitions.
TITLE I--INVESTIGATIONS, PROHIBITED ACTIVITIES, AND PENALTIES
Sec. 101. Statement of policy.
Sec. 102. Investigations.
Sec. 103. Briefing to Congress.
Sec. 104. Designation of persons, foreign governments, and financial
institutions.
Sec. 105. Forfeiture of property.
TITLE II--SANCTIONS AGAINST NORTH KOREAN PROLIFERATION, HUMAN RIGHTS
VIOLATIONS, AND ILLICIT ACTIVITIES
Sec. 201. Sanctions for material support of North Korean proliferation.
Sec. 202. Sanctions against the provision of specialized financial
messaging services to designated North
Korean financial institutions.
Sec. 203. Proliferation prevention sanctions.
Sec. 204. Procurement sanctions.
Sec. 205. Sanctions with respect to the provision of vessels or
shipping services to transport certain
goods related to proliferation, terrorism,
or criminal activities of North Korea.
Sec. 206. International assistance.
Sec. 207. Exclusion, waiver, and removal of designation.
TITLE III--PROMOTION OF HUMAN RIGHTS AND DISINVESTMENT
Sec. 301. Information technology.
Sec. 302. Disclosures to Securities and Exchange Commission relating to
sanctionable activities.
Sec. 303. Authority of State and local governments to divest from
companies that invest in North Korea.
Sec. 304. Safe harbor for changes of investment policies by asset
managers.
Sec. 305. Sense of Congress regarding certain ERISA plan investments.
Sec. 306. Report on North Korean prison camps.
Sec. 307. Limits on jurisdictional immunity.
TITLE IV--GENERAL AUTHORITIES
Sec. 401. Suspension of sanctions and other measures.
Sec. 402. Termination of sanctions and other measures.
Sec. 403. North Korea Enforcement and Humanitarian Fund.
Sec. 404. Regulations.
Sec. 405. Effective date.
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 and
repeatedly sponsored acts of international terrorism, including
attempts to assassinate defectors and human rights activists;
repeated threats of violence against foreign persons, leaders,
newspapers, and cities; and the shipment of weapons to
Hezbollah and Hamas via Iran.
(5) North Korea has unilaterally withdrawn from the 1953
Armistice Agreement that ended the Korean War, and committed
unprovoked acts of war against South Korea in 2010 by sinking
the warship Cheonan and killing 46 of her crew, and by shelling
Yeonpyeong Island, killing four civilians.
(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 the
North Korean Human Rights Act of 2004 (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, 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.--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.
(2) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Foreign Affairs and the
Committee on Financial Services of the House of
Representatives; and
(B) 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
designated by the President under subsection (a), (b), (c), or
(d) of section 104 for purposes of applying the sanctions
described in title II (as applicable) with respect to the
person, foreign government, or financial institution.
(5) Domestic financial institution.--The term ``domestic
financial institution'' has the meaning given such term in
section 5312 of title 31, United States Code.
(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.
(13) 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.
(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.
(15) 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 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.
TITLE I--INVESTIGATIONS, PROHIBITED ACTIVITIES, 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 responsible members of the
international community to fully and promptly implement United
Nations Security Council Resolution 2094;
(2) to sanction the entities, officials, and financial
institutions that facilitate proliferation, illicit activities,
arms trafficking, imports of luxury goods, severe 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 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; and
(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.
SEC. 102. INVESTIGATIONS.
(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.
(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.
(b) Contents of Briefing.--The briefings required by subsection (a)
shall also contain--
(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. DESIGNATION OF PERSONS, FOREIGN GOVERNMENTS, AND FINANCIAL
INSTITUTIONS.
(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--
(1) knowingly and materially contributes, through the
export to or import from North Korea of any goods or
technology, 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;
(2) knowingly exports, or facilitates the export of,
defense articles and defense services to the Government of
North Korea, or knowingly exports, or facilitates the export
of, any defense articles and defense services from North Korea
to any other country;
(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--
(1) has been listed or sanctioned under any regulation or
Executive Order No. 13382, 13224, 13551, or otherwise pursuant
to the International Emergency Economic Powers Act for illicit
activities or activities concerning North Korea's proliferation
of weapons of mass destruction;
(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 of Government of North Korea.--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 the
Government of North Korea.
(d) Discretionary Authority To Designate Foreign Governments and
Financial Institutions.--Except as provided in section 207, the
President may 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 any of the sanctions described
in sections 201 and 204, as applicable, with respect to any foreign
government or financial institution if the President determines the
foreign government or financial institution, after the date that is 180
days after the date of the enactment of this Act--
(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.--The designation of a person,
foreign government, or financial institution under subsection (a), (b),
(c), or (d) shall also apply with respect to--
(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.--Section 981(e) of
title 18, United States Code, is amended--
(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.--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 of the activities described in section 104(a) shall be deposited
into the North Korea Enforcement and Humanitarian Fund established
under section 403.
(c) Payment in Lieu of Forfeiture.--If a financial institution or
other person pays a sum of money to the United States--
(1) in lieu of the commencement of criminal, civil, or
administrative forfeiture proceedings to forfeit property
involving any of the activities described in section 104(a), or
(2) in settlement of such forfeiture proceedings if
commenced,
such sum of money shall be treated as forfeited funds and disposed of
in accordance with section 403.
TITLE II--SANCTIONS AGAINST NORTH KOREAN PROLIFERATION, HUMAN RIGHTS
VIOLATIONS, AND ILLICIT ACTIVITIES
SEC. 201. SANCTIONS FOR MATERIAL SUPPORT OF NORTH KOREAN PROLIFERATION.
(a) Sense of Congress.--It is the sense of Congress that 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.
(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.
(2) 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 the foreign financial
institution to provide financial services indirectly to any
person, foreign government, or financial institution designated
under subsection (a) or (b) of section 104, the domestic
financial institution shall ensure that the correspondent
account is no longer used to provide such services, including,
when necessary, terminating the correspondent account.
(3) Enhanced due diligence and reporting requirements.--
Except as provided in section 207, the Secretary of Treasury
shall require all domestic financial institutions to apply one
or more of the special measures described in paragraphs (1)
through (5) of section 5318A(b) of title 31, United States
Code, to--
(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.
(4) Additional requirements.--A domestic financial
institution required to terminate an account pursuant to this
subsection--
(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.--
(1) In general.--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 immediately freeze or block--
(A) any North Korean property, and
(B) any property involved in any of the activities
described in section 104(a),
within the jurisdiction of the United States, or held by a
domestic financial institution.
(2) Property of a designated person.--The President may
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 block any property of a designated
person within the jurisdiction of the United States, or held by
a domestic financial institution.
(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. SANCTIONS AGAINST THE PROVISION OF SPECIALIZED FINANCIAL
MESSAGING SERVICES TO DESIGNATED NORTH KOREAN FINANCIAL
INSTITUTIONS.
(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).
(2) Enabling or facilitation of access to specialized
financial messaging services through intermediary financial
institutions.--For purposes of paragraph (1) 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 to such messaging services.
(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.
(2) 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, any North Korean financial institution
designated under section 104(b) if--
(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.
(3) 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 financial messaging
services by such person.
SEC. 203. PROLIFERATION PREVENTION SANCTIONS.
(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) 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.
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
described in section 104(a). Such amendment shall apply with respect to
contracts for which solicitations are issued on or after the date that
is 90 days after the date of the enactment of this Act.
(c) 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 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. SANCTIONS WITH RESPECT TO THE PROVISION OF VESSELS OR
SHIPPING SERVICES TO TRANSPORT CERTAIN GOODS RELATED TO
PROLIFERATION, TERRORISM, OR CRIMINAL ACTIVITIES OF NORTH
KOREA.
(a) Briefing Required.--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
identifying foreign 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 Requirements.--Not later than 180
days after the identification of any port or airport pursuant to
subsection (a), the Secretary of Homeland Security shall promulgate
regulations imposing enhanced inspection requirements on any cargo
landed in the United States or entering interstate commerce that has
been transported through such 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 of any such
forfeiture shall be available for the purposes described in section
403.
SEC. 206. INTERNATIONAL ASSISTANCE.
(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 to Use of International Financial Institution Funds
for North Korea.--The United States Executive Director at each
international financial institution (as so defined) shall use the
voice, vote, and influence of the United States to oppose the provision
by the institution of any assistance to the Government of North Korea.
(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. EXCLUSION, WAIVER, AND REMOVAL OF DESIGNATION.
(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:
(1) 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.
(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--
(A) 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.);
(B) the Arms Export Control Act (22 U.S.C. 2751 et
seq.);
(C) part B of title VIII of the Nuclear
Proliferation Prevention Act of 1994 (22 U.S.C. 6301 et
seq.); or
(D) the Chemical and Biological Weapons Control and
Warfare Elimination Act of 1991 (22 U.S.C. 5601 et
seq.).
(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.
(2) 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) to designate the
Government of North Korea, or to impose a sanction or sanctions
on the Government 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).
(c) Removal of Sanctions.--The President may prescribe rules and
regulations for the removal of sanctions on a person, foreign
government, or financial institution that is designated under
subsection (a), (b), or (d) of section 104 and the removal of
designations of a person, foreign government, or financial institution
with respect to such sanctions if the President determines that the
designated person has verifiably ceased its participation in any of the
activities described in section 104(a) and is cooperating with the
investigation of such activities and carrying out this Act.
(d) Financial Services for Humanitarian and Consular Activities.--
The President may promulgate regulations, rules, and polices 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 under
this section.
TITLE III--PROMOTION OF HUMAN RIGHTS AND DISINVESTMENT
SEC. 301. INFORMATION TECHNOLOGY.
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:
``(d) Information Technology Study.--Not later than 180 days after
the date of the enactment of this subsection, the President shall
submit to the appropriate congressional committees a classified report
setting forth a detailed plan for making unrestricted, unmonitored, and
inexpensive electronic mass communications available to the people of
North Korea.''.
SEC. 302. DISCLOSURES TO SECURITIES AND EXCHANGE COMMISSION RELATING TO
SANCTIONABLE ACTIVITIES.
(a) In General.--Section 13 of the Securities Exchange Act of 1934
(15 U.S.C. 78m) is amended by adding at the end the following new
subsection:
``(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.--The amendment made by subsection (a) shall
take effect with respect to reports required to be filed with the
Securities and Exchange Commission after a date that is 90 days after
the date of the enactment of this Act.
SEC. 303. AUTHORITY OF STATE AND LOCAL GOVERNMENTS TO DIVEST FROM
COMPANIES THAT INVEST IN NORTH KOREA.
(a) Sense of Congress.--It is the sense of Congress that the United
States should support the decision of any State or local government
that for moral, prudential, or reputational reasons divests from, or
prohibits the investment of assets of such State or local government
in, a person that engages in investment activities in North Korea, if
North Korea is subject to economic sanctions imposed by the United
States.
(b) Authority To Divest.--Notwithstanding any other provision of
law, a State or local government may adopt and enforce measures that
meet the requirements of subsection (d) to divest the assets of such
State or local government from, or prohibit 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 described in
subsection (c).
(c) Investment Activities Described.--A person engages in
investment activities in North Korea described in this subsection if
the person--
(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:
(1) Notice.--The State or local government shall provide
written notice to each person with respect to which a measure
under this section is to be applied.
(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.
(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.
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.
(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.
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.
TITLE IV--GENERAL AUTHORITIES
SEC. 401. SUSPENSION OF SANCTIONS AND OTHER MEASURES.
(1) In general.--Any sanction or other measure required by
title II or III of this Act (or any amendment made by title 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--
(A) 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;
(B) taken significant steps toward financial
transparency to comply with generally accepted
protocols to cease and prevent the laundering of
monetary instruments;
(C) taken significant steps toward verification of
its compliance with United Nations Security Council
Resolutions 1695, 1718, 1874, 2087, and 2094;
(D) taken significant steps toward accounting for
and repatriating the citizens of other countries
abducted by the Government of North Korea;
(E) taken significant steps toward verification of
its compliance with the Joint Statement of September
19, 2005;
(F) accepted and begun to abide by internationally
recognized standards for the distribution and
monitoring of humanitarian aid;
(G) provided credible assurances that it will not
support further acts of international terrorism; and
(H) taken significant and verified steps to improve
living conditions in its political prison camps.
(2) Renewal of suspension.--The suspension described in
paragraph (1) may be renewed for an additional consecutive
period of 365 days upon certification by the President to the
appropriate congressional committees that the Government of
North Korea--
(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 or III and of
this Act (or any amendment made by title 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 all citizens of all nations
abducted by the Government of North Korea; and
(6) made public commitments to, and continues to make
significant progress toward--
(A) establishing an independent judiciary; and
(B) respecting the human rights and basic freedoms
recognized in the Universal Declaration of Human
Rights.
SEC. 403. NORTH KOREA ENFORCEMENT AND HUMANITARIAN FUND.
(a) Establishment.--There is established in the Treasury of the
United States a fund to be known as the North Korea Enforcement and
Humanitarian Fund (in this section referred to as the ``Fund'').
(b) Deposits.--All revenues derived from any criminal, civil, or
administrative forfeitures of property involved in any of the
activities described in section 104(a), and all revenues derived from
any agreement to defer prosecution for any such activities, and all
revenues derived from penalties assessed under section 206 of 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).
(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. REGULATIONS.
(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.
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.
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