#aacth ,,congress #b;d ,session ,h4 ,r4 #agga ,,an ,,act ,to improve the enforcement of sanctions against the ,government of ,north ,korea1 and for other purposes4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,north ,korea ,sanctions ,enforcement ,act of #bjad4 7b7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4 ,sec4 #b4 ,findings4 ,sec4 #c4 ,definitions4 ,title ,i--,investigations1 prohibited conduct1 and penalties ,sec4 #aja4 ,statement of policy4 ,sec4 #ajb4 ,investigations4 ,sec4 #ajc4 ,briefing to ,congress4 ,sec4 #ajd4 ,prohibited conduct and mandatory and discretionary designation and sanctions authorities4 ,sec4 #aje4 ,forfeiture of property4 ,title ,,ii--,sanctions ,against ,north ,korean ,proliferation1 ,human ,rights ,abuses1 and ,illicit ,activities ,sec4 #bja4 ,determinations with respect to ,north ,korea as a jurisdiction of primary money laundering concern4 ,sec4 #bjb4 ,ensuring the consistent enforcement of ,united ,nations ,security ,council resolutions and financial restrictions on ,north ,korea4 ,sec4 #bjc4 ,proliferation prevention sanctions4 ,sec4 #bjd4 ,procurement sanctions4 ,sec4 #bje4 ,enhanced inspections authorities4 ,sec4 #bjf4 ,travel sanctions4 ,sec4 #bjg4 ,exemptions1 waivers1 and removals of designation4 ,sec4 #bjh4 ,sense of ,congress on enforcement of sanctions on ,north ,korea4 ,title ,,iii--,promotion of human rights ,sec4 #cja4 ,information technology4 ,sec4 #cjb4 ,report on ,north ,korean prison camps4 ,sec4 #cjc4 ,report on persons who are responsible for serious human rights abuses or censorship in ,north ,korea4 ,title ,,iv--,general authorities ,sec4 #dja4 ,suspension of sanctions and other measures4 ,sec4 #djb4 ,termination of sanctions and other measures4 ,sec4 #djc4 ,regulations4 ,sec4 #djd4 ,effective date4 #b4 ,findings ,congress finds the following3 7#a7 ,the ,government of ,north ,korea has repeatedly violated its commitments to the complete1 verifiable1 irreversible dismantlement of its nuclear weapons programs1 and has willfully violated multiple ,united ,nations ,security ,council resolutions calling for it to cease its development1 testing1 and production of weapons of mass destruction4 7#b7 ,north ,korea poses a grave risk for the proliferation of nuclear weapons and other weapons of mass destruction4 7#c7 ,the ,government of ,north ,korea has been implicated repeatedly in money laundering and illicit activities1 including prohibited arms sales1 narcotics trafficking1 the counterfeiting of ,united ,states currency1 and the counterfeiting of intellectual property of ,united ,states persons4 7#d7 ,the ,government of ,north ,korea has1 both historically and recently1 repeatedly sponsored acts of international terrorism1 including attempts to assassinate defectors and human rights activists1 repeated threats of violence against foreign persons1 leaders1 newspapers1 and cities1 and the shipment of weapons to terrorists4 7#e7 ,north ,korea has unilaterally withdrawn from the #aiec ,armistice ,agreement that ended the ,korean ,war1 and committed provocations against ,south ,korea in #bjaj by sinking the warship ,cheonan and killing #df of her crew1 and by shelling ,yeonpyeong ,island1 killing four ,south ,koreans4 7#f7 ,north ,korea maintains a system of brutal political prison camps that contain as many as #abj1jjj men1 women1 and children1 who live in atrocious living conditions with insufficient food1 clothing1 and medical care1 and under constant fear of torture or arbitrary execution4 7#g7 ,the ,congress reaffirms the purposes of the ,north ,korean ,human ,rights ,act of #bjjd contained in section #d of such ,act 7#bb ,u4,s4,c4 #ghjb74 7#h7 ,north ,korea has prioritized weapons programs and the procurement of luxury goods1 in defiance of ,united ,nations ,security ,council resolutions1 and in gross disregard of the needs of its people4 7#i7 ,persons1 including financial institutions1 who engage in transactions with1 or provide financial services to1 the ,government of ,north ,korea and its financial institutions without establishing sufficient financial safeguards against ,north ,korea's use of these transactions to promote proliferation1 weapons trafficking1 human rights violations1 illicit activity1 and the purchase of luxury goods1 aid and abet ,north ,korea's misuse of the international financial system1 and also violate the intent of relevant ,united ,nations ,security ,council resolutions4 7#aj7 ,the ,government of ,north ,korea's conduct poses an imminent threat to the security of the ,united ,states and its allies1 to the global economy1 to the safety of members of the ,united ,states armed forces1 to the integrity of the global financial system1 to the integrity of global nonproliferation programs1 and to the people of ,north ,korea4 7#aa7 ,the ,congress seeks1 through this legislation1 to use nonmilitary means to address this crisis1 to provide diplomatic leverage to negotiate necessary changes in ,north ,korea's conduct1 and to ease the suffering of the people of ,north ,korea4 #c4 ,definitions ,in this ,act3 7#a7 ,applicable ,executive order ,the term applicable ,executive order means-- 7,a7 ,executive ,order ,no4 #acchb 7#bjje71 #acdff 7#bjjh71 #aceea 7#bjaj71 or #acegj 7#bjaa71 to the extent that such ,executive order authorizes the imposition of sanctions on persons for conduct1 or prohibits transactions or activities1 involving the ,government of ,north ,korea2 or 7,b7 any ,executive order adopted on or after the date of the enactment of this ,act1 to the extent that such ,executive order authorizes the imposition of sanctions on persons for conduct1 or prohibits transactions or activities1 involving the ,government of ,north ,korea4 7#b7 ,applicable ,united ,nations ,security ,council resolution ,the term applicable ,united ,nations ,security ,council resolution means-- 7,a7 ,united ,nations ,security ,council ,resolution #afie 7#bjjf71 #agah 7#bjjf71 #ahgd 7#bjji71 #bjhg 7#bjac71 or #bjid 7#bjac72 or 7,b7 any ,united ,nations ,security ,council resolution adopted on or after the date of the enactment of this ,act1 to the extent that such resolution authorizes the imposition of sanctions on persons for conduct1 or prohibits transactions or activities1 involving the ,government of ,north ,korea4 7#c7 ,appropriate congressional committees ,the term appropriate congressional committees means-- 7,a7 the ,committee on ,foreign ,affairs1 the ,committee on ,ways and ,means1 and the ,committee on ,financial ,services of the ,house of ,representatives2 and 7,b7 the ,committee on ,foreign ,relations and the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate4 7#d7 ,designated person ,the term designated person means a person designated under subsection 7a7 or 7b7 of section #ajd for purposes of applying one or more of the sanctions described in title ,i or ,,ii of this ,act with respect to the person4 7#e7 ,government of ,north ,korea ,the term ,government of ,north ,korea means-- 7,a7 the ,government of the ,democratic ,people's ,republic of ,korea or any political subdivision1 agency1 or instrumentality thereof2 and 7,b7 any person owned or controlled by1 or acting for or on behalf of1 the ,government of the ,democratic ,people's ,republic of ,korea4 7#f7 ,international terrorism ,the term international terrorism has the meaning given such term in section #adj7;d7 of the ,foreign ,relations ,authorization ,act1 ,fiscal ,years #aihh and #aihi 7#bb ,u4,s4,c4 #bfef;f7d774 7#g7 ,luxury goods ,the term luxury goods has the meaning given such term in subpart #gdf4d of title #ae1 ,code of ,federal ,regulations1 and includes the items listed in ,supplement ,no4 #a to such regulation1 and any similar items4 7#h7 ,monetary instrument ,the term monetary instrument has the meaning given such term under section #ecab of title #ca1 ,united ,states ,code4 7#i7 ,north ,korean financial institution ,the term ,north ,korean financial institution means-- 7,a7 a financial institution organized under the laws of ,north ,korea or any jurisdiction within ,north ,korea 7including a foreign branch of such institution72 7,b7 any financial institution located in ,north ,korea1 except as may be excluded from such definition by the ,president in accordance with section #bjg7;d72 7,c7 any financial institution1 wherever located1 owned or controlled by the ,government of ,north ,korea2 and 7,d7 any financial institution1 wherever located1 owned or controlled by a financial institution described in subparagraph 7,a71 7,b71 or 7,c74 7#aj7 ,other stores of value ,the term other stores of value means-- 7,a7 prepaid access devices1 tangible or intangible prepaid access devices1 or other instruments or devices for the storage or transmission of value1 as defined in part #ajaj of title #ca1 ,code of ,federal ,regulations2 and 7,b7 any covered goods1 as defined in section #ajbg4ajj of title #ca1 ,code of ,federal ,regulations1 and any instrument or tangible or intangible access device used for the storage and transmission of a representation of covered goods1 or other device1 as defined in section #ajbg4ajj of title #ca1 ,code of ,federal ,regulations4 7#aa7 ,person ,the term person means-- 7,a7 a natural person2 7,b7 a corporation1 business association1 partnership1 society1 trust1 financial institution1 insurer1 underwriter1 guarantor1 and any other business organization1 any other nongovernmental entity1 organization1 or group1 and any governmental entity operating as a business enterprise2 and 7,c7 any successor to any entity described in subparagraph 7,b74 ,i ,investigations1 prohibited conduct1 and penalties #aja4 ,statement of policy ,in order to achieve the peaceful disarmament of ,north ,korea1 ,congress finds that it is necessary-- 7#a7 to encourage all states to fully and promptly implement ,united ,nations ,security ,council ,resolution #bjid 7#bjac72 7#b7 to sanction the persons1 including financial institutions1 that facilitate proliferation1 illicit activities1 arms trafficking1 imports of luxury goods1 serious human rights abuses1 cash smuggling1 and censorship by the ,government of ,north ,korea2 7#c7 to authorize the ,president to sanction persons who fail to exercise due diligence to ensure that such financial institutions and jurisdictions do not facilitate proliferation1 arms trafficking1 kleptocracy1 and imports of luxury goods by the ,government of ,north ,korea2 7#d7 to deny the ,government of ,north ,korea access to the funds it uses to obtain nuclear weapons1 ballistic missiles1 and luxury goods instead of providing for the needs of its people2 and 7#e7 to enforce sanctions in a manner that avoids any adverse humanitarian impact on the people of ,north ,korea4 #ajb4 ,investigations ,the ,president shall initiate an investigation into the possible designation of a person under section #ajd7;a7 upon receipt by the ,president of credible information indicating that such person has engaged in conduct described in section #ajd7;a74 #ajc4 ,briefing to ,congress ,not later than #ahj days after the date of the enactment of this ,act1 and periodically thereafter1 the ,president shall provide to the appropriate congressional committees a briefing on efforts to implement this ,act1 to include the following1 to the extent the information is available3 7#a7 ,the principal foreign assets and sources of foreign income of the ,government of ,north ,korea4 7#b7 ,a list of the persons designated under subsections 7a7 and 7b7 of section #ajd4 7#c7 ,a list of the persons with respect to which sanctions were waived or removed under section #bjg4 7#d7 ,a summary of any diplomatic efforts made in accordance with section #bjb7;b7 and of the progress realized from such efforts1 including efforts to encourage the ,european ,union and other states and jurisdictions to sanction and block the assets of the ,foreign ,trade ,bank of ,north ,korea and ,daedong ,credit ,bank4 #ajd4 ,prohibited conduct and mandatory and discretionary designation and sanctions authorities 7a7 ,prohibited conduct and mandatory designation and sanctions authority 7#a7 ,conduct described ,except as provided in section #bjg1 the ,president shall designate under this subsection any person the ,president determines to-- 7,a7 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 7including missiles capable of delivering such weapons71 including any efforts to manufacture1 acquire1 possess1 develop1 transport1 transfer1 or use such items2 7,b7 have knowingly imported1 exported1 or reexported to1 into1 or from ,north ,korea any arms or related materiel1 whether directly or indirectly2 7,c7 have knowingly provided significant training1 advice1 or other services or assistance1 or engaged in transactions1 related to the manufacture1 maintenance1 or use of any arms or related materiel to be imported1 exported1 or reexported to1 into1 or from ,north ,korea1 or following their importation1 exportation1 or reexportation to1 into1 or from ,north ,korea1 whether directly or indirectly2 7,d7 have knowingly1 directly or indirectly1 imported1 exported1 or reexported significant luxury goods to or into ,north ,korea2 7,e7 have knowingly engaged in or been responsible for censorship by the ,government of ,north ,korea1 including prohibiting1 limiting1 or penalizing the exercise of freedom of expression or assembly1 limiting access to print or broadcast media1 or the facilitation or support of intentional frequency manipulation that would jam or restrict an international signal2 7,f7 have knowingly engaged in or been responsible for serious human rights abuses by the ,government of ,north ,korea1 including torture or cruel1 inhuman1 or degrading treatment or punishment1 prolonged detention without charges and trial1 causing the disappearance of persons by the abduction and clandestine detention of those persons1 and other denial of the right to life1 liberty1 or the security of a person2 7,g7 have knowingly1 directly or indirectly1 engaged in significant acts of money laundering1 the counterfeiting of goods or currency1 bulk cash smuggling1 narcotics trafficking1 or other illicit activity that involves or supports the ,government of ,north ,korea or any senior official thereof1 whether directly or indirectly2 or 7,h7 have knowingly attempted to engage in any of the conduct described in subparagraphs 7,a7 through 7,g7 of this paragraph4 7#b7 ,effect of designation ,with respect to any person designated under this subsection1 the ,president-- 7,a7 shall exercise the authorities of the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agje et seq47 without regard to section #bjb of such ,act to block all property and interests in property of any person designated under this subsection that are in the ,united ,states1 that hereafter come within the ,united ,states1 or that are or hereafter come within the possession or control of any ,united ,states person1 including any overseas branch2 and 7,b7 may apply any of the sanctions described in sections #bjd1 #bje7;c71 and #bjf4 7#c7 ,penalties ,the penalties provided for in section #bjf of the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agje7 shall apply to a person who violates1 attempts to violate1 conspires to violate1 or causes a violation of any prohibition of this subsection1 or of an order or regulation prescribed under this ,act1 to the same extent that such penalties apply to a person that commits an unlawful act described in section #bjf7;a7 of that ,act 7#ej ,u4,s4,c4 #agje7;a774 7b7 ,discretionary designation and sanctions authority 7#a7 ,conduct described ,except as provided in section #bjg1 the ,president may designate under this subsection any person the ,president determines to-- 7,a7 have knowingly engaged in1 contributed to1 assisted1 sponsored1 or provided financial1 material or technological support for1 or goods and services in support of1 any violation of1 or evasion of1 an applicable ,united ,nations ,security ,council resolution2 7,b7 have knowingly facilitated the transfer of any funds1 financial assets1 or economic resources of1 or property or interests in property of a person designated under an applicable ,executive order1 or by the ,united ,nations ,security ,council pursuant to an applicable ,united ,nations ,security ,council resolution2 7,c7 have knowingly facilitated the transfer of any funds1 financial assets1 or economic resources1 or any property or interests in property derived from1 involved in1 or that has materially contributed to conduct prohibited by subsection 7a7 or an applicable ,united ,nations ,security ,council resolution2 7,d7 have knowingly facilitated any transaction that contributes materially to a violation of an applicable ,united ,nations ,security ,council resolution2 7,e7 have knowingly facilitated any transactions in cash or monetary instruments or other stores of value1 including through cash couriers transiting to or from ,north ,korea1 used to facilitate any conduct prohibited by an applicable ,united ,nations ,security ,council resolution2 7,f7 have knowingly contributed to the bribery of an official of the ,government of ,north ,korea1 the misappropriation1 theft1 or embezzlement of public funds by1 or for the benefit of1 an official of the ,government of ,north ,korea1 or the use of any proceeds of any such conduct2 or 7,g7 have knowingly and materially assisted1 sponsored1 or provided financial1 material1 or technological support for1 or goods or services to or in support of1 the conduct described in subparagraphs 7,a7 through 7,f7 of this paragraph or the conduct described in subparagraphs 7,a7 through 7,g7 of subsection 7a77#a74 7#b7 ,effect of designation ,with respect to any person designated under this subsection1 the ,president-- 7,a7 may apply the sanctions described in section #bjd2 7,b7 may apply any of the special measures described in section #ecah;,a of title #ca1 ,united ,states ,code2 7,c7 may prohibit any transactions in foreign exchange that are subject to the jurisdiction of the ,united ,states and in which such person has any interest2 7,d7 may prohibit any transfers of credit or payments between financial institutions or by1 through1 or to any financial institution1 to the extent that such transfers or payments are subject to the jurisdiction of the ,united ,states and involve any interest of the person2 and 7,e7 may exercise the authorities of the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agje et seq47 without regard to section #bjb of such ,act to block any property and interests in property of the person that are in the ,united ,states1 that hereafter come within the ,united ,states1 or that are or hereafter come within the possession or control of any ,united ,states person1 including any overseas branch4 7c7 ,blocking of all property and interests in property of the ,government of ,north ,korea ,the ,president shall exercise the authorities of the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agje et seq47 without regard to section #bjb of such ,act to block all property and interests in property of the ,government of ,north ,korea that are in the ,united ,states1 that hereafter come within the ,united ,states1 or that are or hereafter come within the possession or control of any ,united ,states person1 including any overseas branch4 7d7 ,application ,the designation of a person and the blocking of property and interests in property under subsection 7a71 7b71 or 7c7 shall also apply with respect to a person who is determined to be owned or controlled by1 or to have acted or purported to act for or on behalf of1 directly or indirectly1 any person whose property and interests in property are blocked pursuant to this section4 7e7 ,transaction licensing ,the ,president shall deny or revoke any license for any transaction that1 in the determination of the ,president1 lacks sufficient financial controls to ensure that such transaction will not facilitate any of the conduct described in subsection 7a7 or subsection 7b74 #aje4 ,forfeiture of property 7a7 ,amendment to property subject to forfeiture ,section #iha7;a77#a7 of title #ah1 ,united ,states ,code1 is amended by adding at the end the following new subparagraph3 7,i7 ,any property1 real or personal1 that is involved in a violation or attempted violation1 or which constitutes or is derived from proceeds traceable to a violation1 of section #ajd7;a7 of the ,north ,korea ,sanctions ,enforcement ,act of #bjad4 4 7b7 ,amendment to definition of civil forfeiture statute ,section #ihc7;i77#b77;,d7 of title #ah1 ,united ,states ,code1 is amended-- 7#a7 by striking or the ,international ,emergency ,economic ,powers ,act and inserting 1 the ,international ,emergency ,economic ,powers ,act2 and 7#b7 by adding at the end before the semicolon the following3 1 or the ,north ,korea ,sanctions ,enforcement ,act of #bjad4 7c7 ,amendment to definition of specified unlawful activity ,section #aief7;c77#g77;,d7 of title #ah1 ,united ,states ,code1 is amended-- 7#a7 by striking or section #ib of the ,atomic ,energy ,act of #aied and inserting section #ib of the ,atomic ,energy ,act of #aied2 and 7#b7 by adding at the end the following3 1 or section #ajd7;a7 of the ,north ,korea ,sanctions ,enforcement ,act of #bjad4 ,,ii ,sanctions ,against ,north ,korean ,proliferation1 ,human ,rights ,abuses1 and ,illicit ,activities #bja4 ,determinations with respect to ,north ,korea as a jurisdiction of primary money laundering concern 7a7 ,findings ,congress makes the following findings3 7#a7 ,the ,undersecretary of the ,treasury for ,terrorism and ,financial ,intelligence1 who is responsible for safeguarding the financial system against illicit use1 money laundering1 terrorist financing1 and the proliferation of weapons of mass destruction1 has repeatedly expressed concern about ,north ,korea's misuse of the international financial system as follows3 7,a7 ,in #bjjf1 the ,undersecretary stated that1 given ,north ,korea's counterfeiting of ,u4,s4 currency1 narcotics trafficking and use of accounts worldwide to conduct proliferation-related transactions1 the line between illicit and licit ,north ,korean money is nearly invisible and urged financial institutions worldwide to think carefully about the risks of doing any ,north ,korea-related business44 7,b7 ,in #bjaa1 the ,undersecretary stated that ,north ,korea remains intent on engaging in proliferation1 selling arms as well as bringing in material1 and was aggressively pursuing the effort to establish front companies44 7,c7 ,in #bjac1 the ,undersecretary stated1 in reference to ,north ,korea's distribution of high-quality counterfeit ,united ,states currency1 that ,north ,korea is continuing to try to pass a supernote into the international financial system1 and that the ,department of the ,treasury would soon introduce new currency with improved security features to protect against counterfeiting by the ,government of ,north ,korea4 7#b7 ,the ,financial ,action ,task ,force1 an intergovernmental body whose purpose is to develop and promote national and international policies to combat money laundering and terrorist financing1 has repeatedly-- 7,a7 expressed concern at deficiencies in ,north ,korea's regimes to combat money laundering and terrorist financing2 7,b7 urged ,north ,korea to adopt a plan of action to address significant deficiencies in these regimes and the serious threat they pose to the integrity of the international financial system2 7,c7 urged all jurisdictions to apply countermeasures to protect the international financial system from ongoing and substantial money laundering and terrorist financing risks emanating from ,north ,korea2 7,d7 urged all jurisdictions to advise their financial institutions to give special attention to business relationships and transactions with ,north ,korea1 including ,north ,korean companies and financial institutions2 and 7,e7 called on all jurisdictions to protect against correspondent relationships being used to bypass or evade countermeasures and risk mitigation practices1 and take into account money laundering and terrorist financing risks when considering requests by ,north ,korean financial institutions to open branches and subsidiaries in their jurisdiction4 7#c7 ,on ,march #g1 #bjac1 the ,united ,nations ,security ,council unanimously adopted ,resolution #bjid1 which-- 7,a7 welcomed the ,financial ,action ,task ,force's recommendation on financial sanctions related to proliferation1 and its guidance on the implementation of sanctions2 7,b7 decided that ,member ,states should apply enhanced monitoring and other legal measures to prevent the provision of financial services or the transfer of property that could contribute to activities prohibited by applicable ,united ,nations ,security ,council resolutions2 and 7,c7 called on ,member ,states to prohibit ,north ,korean banks from establishing or maintaining correspondent relationships with banks in their jurisdictions1 to prevent the provision of financial services1 if they have information that provides reasonable grounds to believe that these activities could contribute to activities prohibited by an applicable ,united ,nations ,security ,council resolution1 or to the evasion of such prohibitions4 7b7 ,sense of congress regarding the designation of north korea as a jurisdiction of primary money laundering concern ,congress-- 7#a7 acknowledges the efforts of the ,united ,nations ,security ,council to impose limitations on1 and require enhanced monitoring of1 transactions involving ,north ,korean financial institutions that could contribute to sanctioned activities2 7#b7 urges the ,president1 in the strongest terms1 to consider immediately designating ,north ,korea as a jurisdiction of primary money laundering concern1 and to adopt stringent special measures to safeguard the financial system against the risks posed by ,north ,korea's willful evasion of sanctions and its illicit activities2 and 7#c7 urges the ,president to seek the prompt implementation by other states of enhanced monitoring and due diligence to prevent ,north ,korea's misuse of the international financial system1 including by sharing information about activities1 transactions1 and property that could contribute to activities sanctioned by applicable ,united ,nations ,security ,council resolutions1 or to the evasion of sanctions4 7c7 ,determinations regarding north korea 7#a7 ,in general ,the ,secretary of the ,treasury shall1 not later than #ahj days after the date of the enactment of this ,act1 determine1 in consultation with the ,secretary of ,state and ,attorney ,general1 and in accordance with section #ecah;,a of title #ca1 ,united ,states ,code1 whether reasonable grounds exist for concluding that ,north ,korea is a jurisdiction of primary money laundering concern4 7#b7 ,enhanced due diligence and reporting requirements ,except as provided in section #bjg1 if the ,secretary of the ,treasury determines under this subsection that reasonable grounds exist for finding that ,north ,korea is a jurisdiction of primary money laundering concern1 the ,secretary of the ,treasury1 in consultation with the ,federal functional regulators1 shall impose one or more of the special measures described in paragraphs 7#a7 through 7#e7 of section #ecah;,a7b7 of title #ca1 ,united ,states ,code1 with respect to the jurisdiction of ,north ,korea4 7#c7 ,report required 7,a7 ,in general ,if the ,secretary of the ,treasury determines that ,north ,korea is a jurisdiction of primary money laundering concern1 the ,secretary of the ,treasury shall1 not later than #ij days after the date on which the ,secretary makes such determination1 submit to the appropriate congressional committees a report on the determination made under paragraph 7#a7 together with the reasons for that determination4 7,b7 ,form ,a report or copy of any report submitted under this paragraph shall be submitted in unclassified form but may contain a classified annex4 #bjb4 ,ensuring the consistent enforcement of ,united ,nations ,security ,council resolutions and financial restrictions on ,north ,korea 7a7 ,findings ,congress finds that-- 7#a7 all states and jurisdictions are obligated to implement and enforce applicable ,united ,nations ,security ,council resolutions fully and promptly1 including by-- 7,a7 blocking the property of1 and ensuring that any property is prevented from being made available to1 persons designated by the ,security ,council under applicable ,united ,nations ,security ,council resolutions2 7,b7 blocking any property associated with an activity prohibited by applicable ,united ,nations ,security ,council resolutions2 and 7,c7 preventing any transfer of property and any provision of financial services that could contribute to an activity prohibited by applicable ,united ,nations ,security ,council resolutions1 or to the evasion of sanctions under such resolutions2 7#b7 all states and jurisdictions share a common interest in protecting the international financial system from the risks of money laundering and illicit transactions emanating from ,north ,korea2 7#c7 the ,united ,states ,dollar and the ,euro are the world's principal reserve currencies1 and the ,united ,states and the ,european ,union are primarily responsible for the protection of the international financial system from these risks2 7#d7 the cooperation of the ,people's ,republic of ,china1 as ,north ,korea's principal trading partner1 is essential to the enforcement of applicable ,united ,nations ,security ,council resolutions and to the protection of the international financial system2 7#e7 the report of the ,panel of ,experts established pursuant to ,united ,nations ,security ,council ,resolution #ahgd1 dated ,june #aa1 #bjac1 expressed concern about the ability of banks in states with less effective regulators and those unable to afford effective compliance to detect and prevent illicit transfers involving ,north ,korea2 7#f7 ,north ,korea has historically exploited inconsistencies between jurisdictions in the interpretation and enforcement of financial regulations and applicable ,united ,nations ,security ,council resolutions to circumvent sanctions and launder the proceeds of illicit activities2 7#g7 ,amroggang ,development ,bank1 ,bank of ,east ,land1 and ,tanchon ,commercial ,bank have been designated by the ,secretary of the ,treasury1 the ,united ,nations ,security ,council1 and the ,european ,union2 7#h7 ,korea ,daesong ,bank and ,korea ,kwangson ,banking ,corporation have been designated by the ,secretary of the ,treasury and the ,european ,union2 7#i7 the ,foreign ,trade ,bank of ,north ,korea has been designated by the ,secretary of the ,treasury for facilitating transactions on behalf of persons linked to its proliferation network1 and for serving as a key financial node2 and 7#aj7 ,daedong ,credit ,bank has been designated by the ,secretary of the ,treasury for activities prohibited by applicable ,united ,nations ,security ,council resolutions1 including the use of deceptive financial practices to facilitate transactions on behalf of persons linked to ,north ,korea's proliferation network4 7b7 ,sense of congress ,it is the sense of ,congress that the ,president should intensify diplomatic efforts1 both in appropriate international fora such as the ,united ,nations and bilaterally1 to develop and implement a coordinated1 consistent1 multilateral strategy for protecting the global financial system against risks emanating from ,north ,korea1 including-- 7#a7 the cessation of any financial services whose continuation is inconsistent with applicable ,united ,nations ,security ,council resolutions2 7#b7 the cessation of any financial services to persons1 including financial institutions1 that present unacceptable risks of facilitating money laundering and illicit activity by the ,government of ,north ,korea2 7#c7 the blocking by all states and jurisdictions1 in accordance with the legal process of the state or jurisdiction in which the property is held1 of any property required to be blocked under applicable ,united ,nations ,security ,council resolutions2 and 7#d7 the blocking of any property derived from illicit activity1 or from the misappropriation1 theft1 or embezzlement of public funds by1 or for the benefit of1 officials of the ,government of ,north ,korea4 #bjc4 ,proliferation prevention sanctions 7a7 ,export of certain goods or technology 7#a7 ,in general ,subject to section #bjg7;a77#b77;,c7 of this ,act1 a license shall be required for the export to ,north ,korea of any goods or technology subject to the ,export ,administration ,regulations 7part #gcj of title #ae1 ,code of ,federal ,regulations7 without regard to whether the ,secretary of ,state has designated ,north ,korea as a country the government of which has provided support for acts of international terrorism1 as determined by the ,secretary of ,state under section #f7;j7 of the ,export ,administration ,act of #aigi 7#ej ,u4,s4,c4 ,app4 #bjde71 as continued in effect under the ,international ,emergency ,economic ,powers ,act4 7#b7 ,presumption of denial ,a license for the export to ,north ,korea of any goods or technology as described in paragraph 7#a7 shall be subject to a presumption of denial4 7b7 ,transactions with countries supporting acts of international terrorism ,the prohibitions and restrictions described in section #dj of the ,arms ,export ,control ,act 7#bb ,u4,s4,c4 #bghj71 and other provisions in that ,act1 shall also apply to exporting or otherwise providing 7by sale1 lease or loan1 grant1 or other means71 directly or indirectly1 any munitions item to the ,government of ,north ,korea without regard to whether or not ,north ,korea is a country with respect to which subsection 7d7 of such section 7relating to designation of state sponsors of terrorism7 applies4 7c7 ,transactions in lethal military equipment 7#a7 ,in general ,the ,president shall withhold assistance under the ,foreign ,assistance ,act of #aifa 7#bb ,u4,s4,c4 #baea et seq47 to any country that provides lethal military equipment to1 or receives lethal military equipment from1 the ,government of ,north ,korea4 7#b7 ,applicability ,the prohibition under this subsection with respect to a country shall terminate on the date that is #a year after the date on which such country ceases to provide lethal military equipment to the ,government of ,north ,korea4 7#c7 ,waiver ,the ,president may waive the prohibition under this subsection with respect to a country if the ,president determines that it is in the national interest of the ,united ,states to do so4 #bjd4 ,procurement sanctions 7a7 ,in general ,except as provided in this section1 the ,united ,states ,government may not procure1 or enter into any contract for the procurement of1 any goods or services from any designated person4 7b7 ,,far ,the ,federal ,acquisition ,regulation issued pursuant to section #acjc of title #da1 ,united ,states ,code1 shall be revised to require a certification from each person that is a prospective contractor that such person does not engage in any of the conduct described in section #ajd7;a74 ,such revision shall apply with respect to contracts in an amount greater than the simplified acquisition threshold 7as defined in section #acd of title #da1 ,united ,states ,code7 for which solicitations are issued on or after the date that is #ij days after the date of the enactment of this ,act4 7c7 ,termination of contracts and initiation of suspension and debarment proceeding 7#a7 ,termination of contracts ,except as provided in paragraph 7#b71 the head of an executive agency shall terminate a contract with a person who has provided a false certification under subsection 7b74 7#b7 ,waiver ,the head of an executive agency may waive the requirement under paragraph 7#a7 with respect to a person based upon a written finding of urgent and compelling circumstances significantly affecting the interests of the ,united ,states4 ,if the head of an executive agency waives the requirement under paragraph 7#a7 for a person1 the head of the agency shall submit to the appropriate congressional committees1 within #cj days after the waiver is made1 a report containing the rationale for the waiver and relevant information supporting the waiver decision4 7#c7 ,initiation of suspension and debarment proceeding ,the head of an executive agency shall initiate a suspension and debarment proceeding against a person who has provided a false certification under subsection 7b74 ,upon determination of suspension1 debarment1 or proposed debarment1 the agency shall ensure that such person is entered into the ,government-wide database containing the list of all excluded parties ineligible for ,federal programs pursuant to ,executive ,order ,no4 #abedi 7#ca ,u4,s4,c4 #faja note2 relating to debarment and suspension7 and ,executive ,order ,no4 #abfhi 7#ca ,u4,s4,c4 #faja note2 relating to debarment and suspension74 7d7 ,clarification regarding certain products ,the remedies specified in subsections 7a7 through 7c7 shall not apply with respect to the procurement of eligible products1 as defined in section #cjh7d7 of the ,trade ,agreements ,act of #aigi 7#ai ,u4,s4,c4 #beah7d771 of any foreign country or instrumentality designated under section #cja7;b7 of such ,act 7#ai ,u4,s4,c4 #beaa7;b774 7e7 ,rule of construction ,nothing in this subsection may be construed to limit the use of other remedies available to the head of an executive agency or any other official of the ,federal ,government on the basis of a determination of a false certification under subsection 7b74 7f7 ,executive agency defined ,in this section1 the term executive agency has the meaning given such term in section #acc of title #da1 ,united ,states ,code4 #bje4 ,enhanced inspections authorities 7a7 ,report required ,not later than #ahj days after the date of the enactment of this ,act1 and every #ahj days thereafter1 the ,president1 acting through the ,secretary of ,homeland ,security1 shall submit to the appropriate congressional committees1 the ,committee on ,homeland ,security of the ,house of ,representatives1 and the ,committee on ,homeland ,security and ,governmental ,affairs of the ,senate1 a report identifying foreign sea ports and airports whose inspections of ships1 aircraft1 and conveyances originating in ,north ,korea1 carrying ,north ,korean property1 or operated by the ,government of ,north ,korea are deficient to effectively prevent the facilitation of any of the activities described in section #ajd7;a74 7b7 ,enhanced security targeting requirements ,not later than #ahj days after the identification of any sea port or airport pursuant to subsection 7a71 the ,secretary of ,homeland ,security shall1 utilizing the ,automated ,targeting ,system operated by the ,national ,targeting ,center in ,u4,s4 ,customs and ,border ,protection1 require enhanced screening procedures to determine if physical inspections are warranted of any cargo bound for or landed in the ,united ,states that has been transported through such sea port or airport if there are reasonable grounds to believe that such cargo contains goods prohibited under this ,act4 7c7 ,seizure and forfeiture ,a vessel1 aircraft1 or conveyance used to facilitate any of the activities described in section #ajd7;a7 that comes within the jurisdiction of the ,united ,states may be seized and forfeited under chapter #df of title #ah1 ,united ,states ,code1 or under the ,tariff ,act of #aicj4 #bjf4 ,travel sanctions 7a7 ,aliens ineligible for visas1 admission1 or parole 7#a7 ,visas1 admission1 or parole ,an alien 7or an alien who is a corporate officer of a person 7as defined in subparagraph 7,b7 or 7,c7 of section #c7aa77 who the ,secretary of ,state or the ,secretary of ,homeland ,security 7or a designee of one of such ,secretaries7 knows1 or has reasonable grounds to believe1 is described in subsection 7a77#a7 or 7b77#a7 of section #ajd is-- 7,a7 inadmissible to the ,united ,states2 7,b7 ineligible to receive a visa or other documentation to enter the ,united ,states2 and 7,c7 otherwise ineligible to be admitted or paroled into the ,united ,states or to receive any other benefit under the ,immigration and ,nationality ,act 7#h ,u4,s4,c4 #aaja et seq474 7#b7 ,current visas revoked 7,a7 ,in general ,the issuing consular officer1 the ,secretary of ,state1 or the ,secretary of ,homeland ,security 7or a designee of one of such ,secretaries7 shall revoke any visa or other entry documentation issued to an alien who is described in subsection 7a77#a7 or 7b77#a7 of section #ajd regardless of when issued4 7,b7 ,effect of revocation ,a revocation under subparagraph 7,a7-- 7i7 shall take effect immediately2 and 7ii7 shall automatically cancel any other valid visa or entry documentation that is in the alien's possession4 7b7 ,exception ,to comply with united nations headquarters agreement ,sanctions under subsection 7a77#a77;,b7 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 ,nations1 signed at ,lake ,success ,june #bf1 #aidg1 and entered into force ,november #ba1 #aidg1 between the ,united ,nations and the ,united ,states1 or other applicable international obligations4 #bjg4 ,exemptions1 waivers1 and removals of designation 7a7 ,exemptions 7#a7 ,mandatory exemptions ,the following activities shall be exempt from sanctions under section #ajd3 7,a7 ,activities subject to the reporting requirements of title ,v of the ,national ,security ,act of #aidg 7#ej ,u4,s4,c4 #dac et seq471 or to any authorized intelligence activities of the ,united ,states4 7,b7 ,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 ,nations1 signed ,june #bf1 #aidg1 and entered into force on ,november #ba1 #aidg1 or under the ,vienna ,convention on ,consular ,relations1 signed ,april #bd1 #aifc1 and entered into force on ,march #ai1 #aifg1 or under other international agreements4 7#b7 ,discretionary exemptions ,the following activities may be exempt from sanctions under section #ajd as determined by the ,president3 7,a7 ,any financial transaction the exclusive purpose for which is to provide humanitarian assistance to the people of ,north ,korea4 7,b7 ,any financial transaction the exclusive purpose for which is to import food products into ,north ,korea1 if such food items are not defined as luxury goods4 7,c7 ,any transaction the exclusive purpose for which is to import agricultural products1 medicine1 or medical devices into ,north ,korea1 provided that such supplies or equipment are classified as designated ,,ear #ii under the ,export ,administration ,regulations 7part #gcj of title #ae1 ,code of ,federal ,regulations7 and not controlled under-- 7i7 the ,export ,administration ,act of #aigi 7#ej ,u4,s4,c4 ,app4 #bdja et seq471 as continued in effect under the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agja et seq472 7ii7 the ,arms ,export ,control ,act 7#bb ,u4,s4,c4 #bgea et seq472 7iii7 part ,b of title ,,viii of the ,nuclear ,proliferation ,prevention ,act of #aiid 7#bb ,u4,s4,c4 #fcja et seq472 or 7iv7 the ,chemical and ,biological ,weapons ,control and ,warfare ,elimination ,act of #aiia 7#bb ,u4,s4,c4 #efja et seq474 7b7 ,waiver ,the ,president may waive1 on a case-by-case basis1 the imposition of sanctions for a period of not more than one year1 and may renew that waiver for additional periods of not more than one year1 any sanction or other measure under section #ajd1 #bjd1 #bje1 #bjf1 or #cjc if the ,president submits to the appropriate congressional committees a written determination that the waiver meets one or more of the following requirements3 7#a7 ,the waiver is important to the economic or national security interests of the ,united ,states4 7#b7 ,the waiver will further the enforcement of this ,act or is for an important law enforcement purpose4 7#c7 ,the waiver is for an important humanitarian purpose1 including any of the purposes described in section #d of the ,north ,korean ,human ,rights ,act of #bjjd 7#bb ,u4,s4,c4 #ghjb74 7c7 ,removals of sanctions ,the ,president may prescribe rules and regulations for the removal of sanctions on a person that is designated under subsection 7a7 or 7b7 of section #ajd 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 7a7 or 7b7 of section #ajd1 as the case may be1 and has given assurances that it will abide by the requirements of this ,act4 7d7 ,financial services for certain activities ,the ,president may promulgate regulations1 rules1 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 section4 #bjh4 ,sense of ,congress on enforcement of sanctions on ,north ,korea 7a7 ,findings ,congress finds the following3 7#a7 ,on ,march #f1 #bjad1 pursuant to ,united ,nations ,security ,council ,resolution #ahgd1 a ,panel of ,experts issued a report assessing the enforcement of existing sanctions on ,north ,korea4 ,the ,panel reported that ,north ,korea continues to trade in arms and related materiel in violation of the resolutions and that there is no question that it is one of the country's most profitable revenue sources4 7#b7 ,the ,panel of ,experts found that ,north ,korea presents a stiff challenge to ,member ,states through multiple and tiered circumvention techniques and is experienced in actions it takes to evade sanctions4 7b7 ,sense of ,congress ,it is the sense of ,congress that the ,united ,states should work to increase the capacity of responsible nations to implement ,united ,nations ,security ,council ,resolutions #afie1 #agah1 #ahgd1 #bjhg1 and #bjid1 including to strengthen the capacity of responsible nations to monitor and interdict shipments to and from ,north ,korea that contribute to prohibited activities under such ,resolutions4 ,,iii ,promotion of human rights #cja4 ,information technology ,section #ajd of the ,north ,korean ,human ,rights ,act of #bjjd 7#bb ,u4,s4,c4 #ghad7 is amended by inserting after subsection 7c7 the following new subsection3 7d7 ,information technology study ,not later than #ahj days after the date of the enactment of this subsection1 the ,president shall submit to the appropriate congressional committees a classified report setting forth a detailed plan for making unrestricted1 unmonitored1 and inexpensive electronic mass communications available to the people of ,north ,korea4 4 #cjb4 ,report on ,north ,korean prison camps 7a7 ,in general ,the ,secretary of ,state shall submit to the appropriate congressional committees a report describing1 with respect to each political prison camp in ,north ,korea to the extent information is available-- 7#a7 the camp's estimated prisoner population2 7#b7 the camp's geographical coordinates2 7#c7 the reasons for confinement of the prisoners2 7#d7 the camp's primary industries and products1 and the end users of any goods produced in such camp2 7#e7 the natural persons and agencies responsible for conditions in the camp2 7#f7 the conditions under which prisoners are confined1 with respect to the adequacy of food1 shelter1 medical care1 working conditions1 and reports of ill-treatment of prisoners2 and 7#g7 imagery1 to include satellite imagery of each such camp1 in a format that1 if published1 would not compromise the sources and methods used by the intelligence agencies of the ,united ,states to capture geospatial imagery4 7b7 ,form ,the report required under subsection 7a7 may be included in the first report required to be submitted to ,congress after the date of the enactment of this ,act under sections #aaf7;d7 and #ejb;,b7b7 of the ,foreign ,assistance ,act of #aifa 7#bb ,u4,s4,c4 #baean7d7 and #bcjd7;b77 7relating to the annual human rights report74 #cjc4 ,report on persons who are responsible for serious human rights abuses or censorship in ,north ,korea 7a7 ,in general ,the ,secretary of ,state shall submit to the appropriate congressional committees a report that contains an identification of each person the ,secretary determines to be responsible for serious human rights abuses or censorship in ,north ,korea and a description of such abuses or censorship engaged in by such person4 7b7 ,consideration ,in preparing the report required under subsection 7a71 the ,secretary of ,state shall give due consideration to the findings of the ,united ,nations ,commission of ,inquiry on ,human ,rights in ,north ,korea1 and shall make specific findings with respect to the responsibility of ,kim ,jong ,un1 and of each natural person who is a member of the ,national ,defense ,commission of ,north ,korea1 or the ,organization and ,guidance ,department of the ,workers' ,party of ,korea1 for serious human rights abuses and censorship4 7c7 ,designation of ,persons ,the ,president shall designate under section #ajd7;a7 any person listed in the report required under subsection 7a7 as responsible for serious human rights abuses or censorship in ,north ,korea4 7d7 ,submission and form 7#a7 ,submission ,the report required under subsection 7a7 shall be submitted not later than #ij days after the date of the enactment of this ,act1 and every #ahj days thereafter for a period not to exceed #c years1 shall be included in each report required under sections #aaf7;d7 and #ejb;,b7b7 of the ,foreign ,assistance ,act of #aifa 7#bb ,u4,s4,c4 #baean7d7 and #bcjd7;b77 7relating to the annual human rights report74 7#b7 ,form ,the report required under subsection 7a7 shall be submitted in unclassified form1 but may include a classified annex4 ,the ,secretary of ,state shall also publish the unclassified part of the report on the ,department of ,state's website4 ,,iv ,general authorities #dja4 ,suspension of sanctions and other measures 7a7 ,in general ,any sanction or other measure required by title ,i1 ,,ii1 or ,,iii of this ,act 7or any amendment made by title ,i1 ,,ii1 or ,,iii of this ,act7 may be suspended for up to #cfe days upon certification by the ,president to the appropriate congressional committees that the ,government of ,north ,korea has-- 7#a7 verifiably ceased its counterfeiting of ,united ,states currency1 including the surrender or destruction of specialized materials and equipment used for or particularly suitable for counterfeiting2 7#b7 taken significant steps toward financial transparency to comply with generally accepted protocols to cease and prevent the laundering of monetary instruments2 7#c7 taken significant steps toward verification of its compliance with ,united ,nations ,security ,council ,resolutions #afie1 #agah1 #ahgd1 #bjhg1 and #bjid2 7#d7 taken significant steps toward accounting for and repatriating the citizens of other countries abducted or unlawfully held captive by the ,government of ,north ,korea or detained in violation of the #aiec ,armistice ,agreement2 7#e7 accepted and begun to abide by internationally recognized standards for the distribution and monitoring of humanitarian aid2 7#f7 provided credible assurances that it will not support further acts of international terrorism2 7#g7 taken significant and verified steps to improve living conditions in its political prison camps2 and 7#h7 made significant progress in planning for unrestricted family reunification meetings1 including for those individuals among the two million strong ,korean-,american community who maintain family ties with relatives in ,north ,korea4 7b7 ,renewal of suspension ,the suspension described in subsection 7a7 may be renewed for additional consecutive periods of #ahj days upon certification by the ,president to the appropriate congressional committees that the ,government of ,north ,korea has continued to comply with the conditions described in subsection 7a7 during the previous year4 #djb4 ,termination of sanctions and other measures ,any sanction or other measure required by title ,i1 ,,ii1 or ,,iii of this ,act 7or any amendment made by title ,i1 ,,ii1 or ,,iii of this ,act7 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 #dja1 and has also-- 7#a7 completely1 verifiably1 and irreversibly dismantled all of its nuclear1 chemical1 biological1 and radiological weapons programs1 including all programs for the development of systems designed in whole or in part for the delivery of such weapons2 7#b7 released all political prisoners1 including the citizens of ,north ,korea detained in ,north ,korea's political prison camps2 7#c7 ceased its censorship of peaceful political activity2 7#d7 taken significant steps toward the establishment of an open1 transparent1 and representative society2 7#e7 fully accounted for and repatriated all citizens of all nations abducted or unlawfully held captive by the ,government of ,north ,korea or detained in violation of the #aiec ,armistice ,agreement2 and 7#f7 agreed with the ,financial ,action ,task ,force on a plan of action to address deficiencies in its anti-money laundering regime and begun to implement this plan of action4 #djc4 ,regulations 7a7 ,in general ,the ,president is authorized to promulgate such rules and regulations as may be necessary to carry out the provisions of this ,act 7which may include regulatory exceptions71 including under section #bje of the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agjd74 7b7 ,rule of construction ,nothing in this ,act or any amendment made by this ,act shall be construed to limit the authority of the ,president pursuant to an applicable ,executive order or otherwise pursuant to the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agja et seq474 #djd4 ,effective date ,except as otherwise provided in this ,act1 this ,act and the amendments made by this ,act shall take effect on the date of the enactment of this ,act4 #dje4 ,offset ,section #ajb7;a7 of the ,enhanced ,partnership with ,pakistan ,act of #bjji 7,public ,law #aaa-gc2 #bb ,u4,s4,c4 #hdab7;a77 is amended by striking #a1ejj1jjj1jjj and inserting #a1dij1jjj1jjj4 ,passed the ,house of ,representatives ,july #bh1 #bjad4;,clerk4