,i #aacth ,,congress #ast ,session ,h4 ,r4 #agga ,,in ,,the ,,house ,,of ,,representatives ,april #bf1 #bjac ,mr4 ,royce 7for himself1 ,mr4 ,engel1 ,mr4 ,chabot1 ,ms4 ,ros-,lehtinen1 ,mr4 ,rohrabacher1 ,mr4 ,poe of ,texas1 ,mr4 ,sherman1 and ,mr4 ,salmon7 introduced the following bill2 which was referred to the ,committee on ,foreign ,affairs1 and in addition to the ,committees on ,ways and ,means1 the ,judiciary1 ,financial ,services1 and ,oversight and ,government ,reform1 for a period to be subsequently determined by the ,speaker1 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 ,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 #bjac4 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 activities1 and penalties ,sec4 #aja4 ,statement of policy4 ,sec4 #ajb4 ,investigations4 ,sec4 #ajc4 ,briefing to ,congress4 ,sec4 #ajd4 ,designation of persons1 foreign governments1 and financial institutions4 ,sec4 #aje4 ,forfeiture of property4 ,title ,,ii--,sanctions ,against ,north ,korean ,proliferation1 ,human ,rights ,violations1 and ,illicit ,activities ,sec4 #bja4 ,sanctions for material support of ,north ,korean proliferation4 ,sec4 #bjb4 ,sanctions against the provision of specialized financial messaging services to designated ,north ,korean financial institutions4 ,sec4 #bjc4 ,proliferation prevention sanctions4 ,sec4 #bjd4 ,procurement sanctions4 ,sec4 #bje4 ,sanctions with respect to the provision of vessels or shipping services to transport certain goods related to proliferation1 terrorism1 or criminal activities of ,north ,korea4 ,sec4 #bjf4 ,international assistance4 ,sec4 #bjg4 ,exclusion1 waiver1 and removal of designation4 ,title ,,iii--,promotion of human rights and disinvestment ,sec4 #cja4 ,information technology4 ,sec4 #cjb4 ,disclosures to ,securities and ,exchange ,commission relating to sanctionable activities4 ,sec4 #cjc4 ,authority of ,state and local governments to divest from companies that invest in ,north ,korea4 ,sec4 #cjd4 ,safe harbor for changes of investment policies by asset managers4 ,sec4 #cje4 ,sense of ,congress regarding certain ,,erisa plan investments4 ,sec4 #cjf4 ,report on ,north ,korean prison camps4 ,sec4 #cjg4 ,limits on jurisdictional immunity4 ,title ,,iv--,general authorities ,sec4 #dja4 ,suspension of sanctions and other measures4 ,sec4 #djb4 ,termination of sanctions and other measures4 ,sec4 #djc4 ,north ,korea ,enforcement and ,humanitarian ,fund4 ,sec4 #djd4 ,regulations4 ,sec4 #dje4 ,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 has recently and repeatedly sponsored acts of international terrorism1 including attempts to assassinate defectors and human rights activists2 repeated threats of violence against foreign persons1 leaders1 newspapers1 and cities2 and the shipment of weapons to ,hezbollah and ,hamas via ,iran4 7#e7 ,north ,korea has unilaterally withdrawn from the #aiec ,armistice ,agreement that ended the ,korean ,war1 and committed unprovoked acts of war against ,south ,korea in #bjaj by sinking the warship ,cheonan and killing #df of her crew1 and by shelling ,yeonpyeong ,island1 killing four civilians4 7#f7 ,north ,korea maintains a system of brutal political prison camps that contain as many as #bjj1jjj 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 established in the ,north ,korean ,human ,rights ,act of #bjjd 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 emergency1 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 ,account2 correspondent account2 payable-through account ,the terms account1 correspondent account1 and payable-through account have the meanings given those terms1 respectively1 under section #ecah;,a of title #ca1 ,united ,states ,code4 7#b7 ,appropriate congressional committees ,the term appropriate congressional committees means-- 7,a7 the ,committee on ,foreign ,affairs 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#c7 ,censorship ,the term censorship means1 with respect to ,north ,korea1 activities that-- 7,a7 prohibit1 limit1 or penalize the exercise of freedom of expression or assembly by citizens of ,north ,korea2 or 7,b7 limit access to print or broadcast media1 including the facilitation or support of intentional frequency manipulation by the ,government of ,north ,korea that would jam or restrict an international signal4 7#d7 ,designated person ,the term designated person means a person1 foreign government1 or financial institution designated by the ,president under subsection 7a71 7b71 7c71 or 7d7 of section #ajd for purposes of applying the sanctions described in title ,,ii 7as applicable7 with respect to the person1 foreign government1 or financial institution4 7#e7 ,domestic financial institution ,the term domestic financial institution has the meaning given such term in section #ecab of title #ca1 ,united ,states ,code4 7#f7 ,facilitate 7,a7 ,in general ,the term facilitate means1 with respect to any of the activities described in section #ajd7;a71 to-- 7i7 provide material support to1 aid1 abet1 attempt1 or conspire to commit the activity2 7ii7 conceal any evidence1 proceeds1 or instrumentalities of the activity2 7iii7 possess1 receive1 exchange1 or transmit the proceeds1 instrumentalities1 or other property involved in the activity2 7iv7 sell1 lease1 or provide a vessel or conveyance1 to register of reflag a vessel or conveyance1 or provide insurance or reinsurance or any other shipping service in furtherance of the activity2 or 7v7 engage in any act with the purpose of causing the activity to occur4 7,b7 ,exception ,nothing in this paragraph shall be construed to apply with respect to the provision of specialized financial messaging services 7as described in section #bjb74 7#g7 ,financial institution ,the term financial institution means a financial institution specified in subparagraph 7,a71 7,b71 7,c71 7,d71 7,e71 7,f71 7,g71 7,h71 7,i71 7,j71 7,m71 or 7,y7 of section #ecab7;a77#b7 of title #ca1 ,united ,states ,code4 7#h7 ,financial transaction ,the term financial transaction has the meaning given such term in section #aief of title #ah1 ,united ,states ,code4 7#i7 ,foreign government ,the term foreign government has the meaning given the term foreign state in section #afjc of title #bh1 ,united ,states ,code4 7#aj7 ,government of north korea ,the term ,government of ,north ,korea means-- 7,a7 the ,government of ,north ,korea2 7,b7 any political subdivision1 agency1 or instrumentality thereof2 7,c7 the ,national ,defense ,commission of ,north ,korea and its members2 and 7,d7 any person owned or controlled by1 or acting for or on behalf of1 the ,government of ,north ,korea4 7#aa7 ,instrumentalities ,the term instrumentalities includes1 with respect to any of the activities described in section #ajd7;a7-- 7,a7 any property other than proceeds of such transaction which is also part of the subject matter of such transaction2 7,b7 any property used to facilitate such transaction1 including any article1 container1 or conveyance used1 or intended to be used1 to facilitate such transaction2 and 7,c7 any property other than the proceeds of such transaction that is involved in or used to facilitate such transaction4 7#ab7 ,international terrorism ,the term international terrorism has the meaning given such term in section #bcca of title #ah1 ,united ,states ,code4 7#ac7 ,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#ad7 ,monetary instrument ,the term monetary instrument has the meaning given such term under section #ecab of title #ca1 ,united ,states ,code1 and also includes-- 7,a7 stored value cards1 tangible or intangible prepaid access devices1 or other instruments or devices for the electronic 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 use for the electronic storage and transmission of a representation of covered goods4 7#ae7 ,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 ,korea1 including a foreign branch of such an institution2 7,b7 a 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 a financial institution1 wherever located1 owned or controlled by the ,government of ,north ,korea2 or 7,d7 a financial institution1 wherever located1 owned or controlled by a financial institution described in subparagraph 7,a71 7,b71 or 7,c74 7#af7 ,north korean property ,the term ,north ,korean property includes any funds1 financial assets1 technology1 property1 or resources that are owned or controlled1 directly or indirectly1 by the ,government of ,north ,korea4 7#ag7 ,person ,the term person means-- 7,a7 a natural person2 7,b7 a corporation1 business association1 partnership1 association1 society1 trust1 financial institution1 joint venture1 corporation1 group1 subgroup1 agency1 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 a successor to any entity described in subparagraph 7,b74 7#ah7 ,proceeds ,the term proceeds has the meaning given such term in section #aief of title #ah1 ,united ,states ,code4 7#ai7 ,serious human rights abuse ,the term serious human rights abuse includes genocide1 slavery1 kidnaping1 peonage1 murder1 torture1 and aggravated sexual abuse1 as those terms are described and made punishable under part ,i of title #ah1 ,united ,states ,code1 when carried out by the ,government of ,north ,korea1 without regard to whether such conduct is within the criminal jurisdiction of the ,united ,states4 7#bj7 ,specified unlawful activity ,the term specified unlawful activity has the meaning given such term in section #aief of title #ah1 ,united ,states ,code4 7#ba7 ,transaction ,the term transaction has the meaning given such term in section #aief of title #ah1 ,united ,states ,code4 7#bb7 ,united states person ,the term ,united ,states person means-- 7,a7 a natural person who is a citizen of the ,united ,states or who owes permanent allegiance to the ,united ,states2 and 7,b7 a corporation or other legal entity which is organized under the laws of the ,united ,states1 any ,state or territory thereof1 or the ,district of ,columbia1 if a natural person described in subparagraph 7,a7 owns1 directly or indirectly1 more than #ej percent of the outstanding capital stock or other beneficial interest in such corporation or other legal entity4 ,i ,investigations1 prohibited activities1 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 responsible members of the international community to fully and promptly implement ,united ,nations ,security ,council ,resolution #bjid2 7#b7 to sanction the entities1 officials1 and financial institutions that facilitate proliferation1 illicit activities1 arms trafficking1 imports of luxury goods1 severe human rights abuses1 cash smuggling1 and censorship by the ,government of ,north ,korea2 7#c7 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 proliferation1 arms trafficking1 kleptocracy1 and imports of luxury goods by the ,government of ,north ,korea2 and 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 people4 #ajb4 ,investigations 7a7 ,initiation of investigation ,the ,president shall initiate an investigation into the possible designation of a person under section #ajd7;a7 upon receipt by the ,united ,states of credible information indicating that such person has engaged in one or more activities described in section #ajd7;a7 and1 except as provided in section #bjg1 shall designate any person who the ,president determines has engaged in one or more activities described in section #ajd7;a74 7b7 ,personnel ,the ,president shall direct the ,secretary of ,state1 the ,secretary of the ,treasury1 the ,attorney ,general1 the ,secretary of ,homeland ,security1 the ,secretary of ,defense1 the ,director of ,central ,intelligence1 and the heads of other ,federal departments and agencies as may be necessary to assign sufficient experienced and qualified investigators1 attorneys1 and technical personnel to investigate and sanction any of the activities described in section #ajd7;a7 and to coordinate and ensure the effective enforcement of the provisions of this ,act4 7c7 ,sharing of information ,the ,federal departments and agencies supporting the enforcement of this ,act shall share such information with1 and shall provide each other access to1 databases and other sources of information as may be necessary to enforce the provisions of this ,act4 #ajc4 ,briefing to ,congress 7a7 ,in general ,not later than #ahj days after the date of the enactment of this ,act1 and every #ahj days thereafter1 the ,president shall provide to the appropriate congressional committees a briefing on the following3 7#a7 ,assets of the government of north korea ,the significant assets held by the ,government of ,north ,korea1 the amount of each such asset1 and the form and financial institution 7if any7 in which each such asset is held4 7#b7 ,transactions involving the government of north korea ,the significant international financial transactions by the ,government of ,north ,korea during the previous #ahj days1 including the amounts1 parties1 terms1 and date of each such transaction1 the property involved in the transaction1 and the names and nationalities of any financial institutions involved in each such transaction4 7#c7 ,designations ,each person1 foreign government1 or financial institution designated under subsection 7a71 7b71 7c71 or 7d7 of section #ajd during the previous #ahj days4 7#d7 ,waivers1 etc ,all waivers1 exclusions1 and removals of designation granted under section #bjg during the previous #ahj days4 7b7 ,contents of briefing ,the briefings required by subsection 7a7 shall also contain-- 7#a7 a list of all persons and foreign governments that have provided financial1 storage1 transportation1 communication1 messaging1 promotional1 or other services with respect to such property and transactions2 7#b7 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 #ajd7;a71 and recommendations for any safeguards necessary to prevent such use2 and 7#c7 whether any evidence exists to suggest that such property constitutes the proceeds or instrumentalities of any activity described in section #ajd7;a74 #ajd4 ,designation of persons1 foreign governments1 and financial institutions 7a7 ,designation of persons who engage in certain activities ,except as provided in section #bjg1 the ,president shall exercise the authorities of the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agja et seq47 without regard to section #bjb of such ,act to designate and apply the sanctions described in title ,,ii1 as applicable1 with respect to any person if the ,president determines that the person-- 7#a7 knowingly and materially contributes1 through the export to or import from ,north ,korea of any goods or technology1 to the efforts by any government or person to use1 develop1 produce1 stockpile1 or otherwise acquire nuclear1 radiological1 chemical1 or biological weapons1 or any device or system designed in whole or in part to deliver such weapons2 7#b7 knowingly exports1 or facilitates the export of1 defense articles and defense services to the ,government of ,north ,korea1 or knowingly exports1 or facilitates the export of1 any defense articles and defense services from ,north ,korea to any other country2 7#c7 knowingly exports1 or facilitates the export of1 any luxury goods to ,north ,korea2 7#d7 knowingly provides1 sells1 leases1 registers1 or reflags a vessel1 aircraft1 or other conveyance1 or provides insurance or reinsurance or any other shipping or transportation service used or intended to be used for1 the transportation of goods to or from ,north ,korea1 for purposes facilitating a specified unlawful activity1 or for purposes of evading a regulation established under this ,act or the ,international ,emergency ,economic ,powers ,act2 7#e7 knowingly transfers1 pays1 exports1 withdraws1 or otherwise deals with any property or interest in property of the ,government of ,north ,korea for purposes of facilitating a specified unlawful activity1 or for purposes of evading a regulation established under this ,act or the ,international ,emergency ,economic ,powers ,act2 7#f7 knowingly engages in or facilitates censorship by the ,government of ,north ,korea2 or 7#g7 knowingly commits or facilitates a serious human rights abuse by the ,government of ,north ,korea4 7b7 ,designation of persons and foreign governments that are sanctioned by executive order or the united nations ,except as provided in section #bjg1 the ,president shall exercise the authorities of the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agja et seq47 without regard to section #bjb of such ,act to designate and apply the sanctions described in title ,,ii1 as applicable1 with respect to any person or foreign government if the ,president determines the person or foreign government-- 7#a7 has been listed or sanctioned under any regulation or ,executive ,order ,no4 #acchb1 #acbbd1 #aceea1 or otherwise pursuant to the ,international ,emergency ,economic ,powers ,act for illicit activities or activities concerning ,north ,korea's proliferation of weapons of mass destruction2 7#b7 has been sanctioned under ,united ,nations ,security ,council resolutions #afie1 #agah1 #ahgd1 #bjhg1 #bjid1 or other such resolution concerning ,north ,korea's proliferation of weapons of mass destruction2 or 7#c7 has been convicted of a criminal offense for any of the activities described in paragraphs 7#a7 through 7#g7 of subsection 7a74 7c7 ,designation of ,government of ,north ,korea ,except as provided in section #bjg1 the ,president shall exercise the authorities of the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agja et seq47 without regard to section #bjb of such ,act to designate and apply the sanctions described in title ,,ii1 as applicable1 with respect to the ,government of ,north ,korea4 7d7 ,discretionary authority ,to designate foreign governments and financial institutions ,except as provided in section #bjg1 the ,president may exercise the authorities of the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agja et seq47 without regard to section #bjb of such ,act to designate and apply any of the sanctions described in sections #bja and #bjd1 as applicable1 with respect to any foreign government or financial institution if the ,president determines the foreign government or financial institution1 after the date that is #ahj days after the date of the enactment of this ,act-- 7#a7 engages in any of the activities described in paragraphs 7#a7 through 7#g7 of subsection 7a72 7#b7 fails to freeze any funds1 financial assets1 or economic resources of a person designated under subsection 7a7 or 7b7 in accordance with the legal process of the country in which such property is held2 7#c7 fails to freeze any funds1 financial assets1 or economic resources that could be used to facilitate any of the activities described in paragraph 7#a71 7#b71 or 7#c7 of subsection 7a71 in accordance with the legal process of the country in which such property is held2 7#d7 fails to apply enhanced monitoring to prevent any transactions that could be used to facilitate any of the activities described in paragraph 7#a71 7#b71 or 7#c7 of subsection 7a72 7#e7 permits any ,north ,korean financial institution to open any new branch1 subsidiary or representative office1 or to establish any new joint venture within its jurisdiction1 or to take an ownership interest in1 or establish or maintain a correspondent relationship with any bank in its jurisdiction1 if such branch1 subsidiary1 representative office1 joint venture1 ownership interest1 or correspondent relationship could be used to facilitate any of the activities described in paragraph 7#a71 7#b71 or 7#c7 of subsection 7a72 7#f7 fails to prohibit any transfers of cash1 including through cash couriers1 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 7#a71 7#b71 or 7#c7 of subsection 7a72 7#g7 provides public financial support for trade with the ,government of ,north ,korea 7including the granting of export credits1 guarantees or insurance to their nationals or entities involved in such trade7 when such financial support could be used to facilitate any of the activities described in paragraph 7#a71 7#b71 or 7#c7 of subsection 7a72 or 7#h7 facilitates the use of any proceeds of the bribery of an official of the ,government of ,north ,korea1 or the misappropriation1 theft1 or embezzlement of public funds by1 or for the benefit of1 an official of the ,government of ,north ,korea4 7e7 ,application to successors1 etc ,the designation of a person1 foreign government1 or financial institution under subsection 7a71 7b71 7c71 or 7d7 shall also apply with respect to-- 7#a7 a successor entity to the designated person2 7#b7 a person owned or controlled by1 or under common ownership or control with1 the designated person1 if the person owned or controlled by1 or under common ownership or control with 7as the case may be71 the designated person knowingly engaged in the transaction causing the designation2 7#c7 a corporate officer or principal of1 or a shareholder with a controlling interest in1 such designated person1 if such corporate officer1 or principal or shareholder with a controlling interest1 knowingly engaged in the transaction causing the designation2 and 7#d7 a ,united ,states person1 including a domestic financial institution1 to the same extent as if the transaction were engaged in by the ,united ,states person or in the ,united ,states if-- 7,a7 a person1 including a foreign subsidiary1 owned or controlled by the ,united ,states person engages in or facilitates any of the activities described in paragraphs 7#a7 through 7#g7 of subsection 7a72 and 7,b7 the ,united ,states person knew or should have known that the person engaged in or facilitated any of the activities described in paragraphs 7#a7 through 7#g7 of subsection 7a74 7f7 ,regulations 7#a7 ,in general ,the ,president shall promulgate such regulations as may be necessary under the authority of the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agja et seq47 to carry out this section4 7#b7 ,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 7#a7 through 7#g7 of subsection 7a7 or any of paragraphs 7#a7 through 7#h7 of subsection 7d74 7g7 ,penalties ,any person who engages in the conduct described in subsection 7a71 or who violates any regulation promulgated under subsection 7f7 or section #djd1 shall be subject to the penalties under section #bjf of the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agje7 in the same manner and to the same extent as such penalties would apply to any person who violates any license1 order1 regulation1 or prohibition issued under that ,act 7#ej ,u4,s4,c4 #agja et seq474 #aje4 ,forfeiture of property 7a7 ,use of funds derived from civil forfeitures ,section #iha7;e7 of title #ah1 ,united ,states ,code1 is amended-- 7#a7 in paragraph 7#f71 by striking or at the end2 7#b7 in paragraph 7#g71 by striking the period at the end and inserting 2 or2 and 7#c7 by inserting after paragraph 7#g7 the following new paragraph3 7#h7 in the case of property involved in any of the activities described in section #ajd7;a7 of the ,north ,korea ,sanctions ,enforcement ,act of #bjac1 in accordance with section #djc of that ,act4 4 7b7 ,customs forfeitures ,notwithstanding sections #fji1 #fac7;a77#c71 and #fac;,a7c7 of the ,tariff ,act of #aicj 7#ai ,u4,s4,c4 #afji7;a71 #afac7;a77#c71 and #afac;b7c771 any funds derived from the forfeiture of property under section #eif of the ,tariff ,act of #aicj 7#ai ,u4,s4,c4 #aeie;a7 that relates to any of the activities described in section #ajd7;a7 shall be deposited into the ,north ,korea ,enforcement and ,humanitarian ,fund established under section #djc4 7c7 ,payment in lieu of forfeiture ,if a financial institution or other person pays a sum of money to the ,united ,states-- 7#a7 in lieu of the commencement of criminal1 civil1 or administrative forfeiture proceedings to forfeit property involving any of the activities described in section #ajd7;a71 or 7#b7 in settlement of such forfeiture proceedings if commenced1 such sum of money shall be treated as forfeited funds and disposed of in accordance with section #djc4 ,,ii ,sanctions ,against ,north ,korean ,proliferation1 ,human ,rights ,violations1 and ,illicit ,activities #bja4 ,sanctions for material support of ,north ,korean proliferation 7a7 ,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 #ecah;,a of title #ca1 ,united ,states ,code4 7b7 ,requirements for financial institutions maintaining accounts for foreign financial institutions 7#a7 ,termination of correspondent or payable-through accounts ,a domestic financial institution shall terminate any correspondent account that is established1 maintained1 administered1 or managed for1 or on behalf of1 any person1 foreign government1 or financial institution designated under subsection 7a7 or 7b7 of section #ajd4 7#b7 ,prohibition on indirect correspondent accounts ,if a domestic financial institution has or obtains knowledge that a correspondent account established1 maintained1 administered1 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 person1 foreign government1 or financial institution designated under subsection 7a7 or 7b7 of section #ajd1 the domestic financial institution shall ensure that the correspondent account is no longer used to provide such services1 including1 when necessary1 terminating the correspondent account4 7#c7 ,enhanced due diligence and reporting requirements ,except as provided in section #bjg1 the ,secretary of ,treasury shall require all domestic financial institutions to apply 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 to-- 7,a7 any financial institution that establishes1 maintains1 administers1 or manages any correspondent account for a person1 financial institution1 or foreign government designated under subsection 7a7 or 7b7 of section #ajd2 and 7,b7 any person1 financial institution1 or foreign government designated under subsection 7c7 or 7d7 of section #ajd4 7#d7 ,additional requirements ,a domestic financial institution required to terminate an account pursuant to this subsection-- 7,a7 shall not permit the foreign bank to establish any new positions or execute any transactions through such account1 other than those necessary to close the account2 and 7,b7 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 7a7 or 7b7 of section #ajd4 7#e7 ,prohibition on designation as primary dealer ,with respect to a designated person that is a domestic financial institution1 neither the ,board of ,governors of the ,federal ,reserve ,system nor the ,federal ,reserve ,bank of ,new ,york may designate1 or permit the continuation of any prior designation of1 such financial institution as a primary dealer in ,united ,states ,government debt instruments4 7#f7 ,prohibition on service as a repository of government funds ,with respect to a designated person that is a domestic financial institution1 such domestic financial institution may not serve as agent of the ,united ,states ,government or serve as a repository for ,united ,states ,government funds4 7#g7 ,foreign exchange ,the ,president may prohibit any transactions in foreign exchange by any domestic financial institution in which a designated person has any interest4 7#h7 ,banking transactions ,the ,president may prohibit any transfers of credit or payments between domestic financial institutions or by1 through1 or to any financial institution1 to the extent that such transfers or payments involve any interest of a designated person4 7#i7 ,penalties 7,a7 ,title #ca1 ,u4,s4,c ,the penalties provided for in sections #ecba7;a7 and #ecbb of title #ca1 ,united ,states ,code1 shall apply to a person that violates a regulation prescribed under paragraph 7#a71 7#b71 7#c71 or 7#d7 in the same manner and to the same extent as such penalties would apply to any person that is otherwise subject to such section #ecba7;a7 or #ecbb4 7,b7 ,,ieepa ,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 violates a regulation prescribed under paragraph 7#e71 7#f71 7#g71 or 7#h7 in the same manner and to the same extent as such penalties would apply to any person that is otherwise subject to such section4 7c7 ,blocking of property 7#a7 ,in general ,the ,president shall exercise the authorities of the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agja et seq47 without regard to section #bjb of such ,act to immediately freeze or block-- 7,a7 any ,north ,korean property1 and 7,b7 any property involved in any of the activities described in section #ajd7;a71 within the jurisdiction of the ,united ,states1 or held by a domestic financial institution4 7#b7 ,property of a designated person ,the ,president may exercise the authorities of the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agja et seq47 without regard to section #bjb of such ,act to block any property of a designated person within the jurisdiction of the ,united ,states1 or held by a domestic financial institution4 7#c7 ,property derived from misappropriation1 theft1 or embezzlement of public funds ,the ,president shall exercise the authorities of the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agja et seq47 without regard to section #bjb of such ,act to encourage foreign governments and foreign financial institutions to block1 in accordance with the legal process of the country in which the property is held1 any property derived from the misappropriation1 theft1 or embezzlement of public funds by1 or for the benefit of1 an official of the ,government of ,north ,korea4 7#d7 ,scope of authority ,activities prohibited by reason of the blocking of property and financial transactions under this section shall include the following3 7,a7 ,payments or transfers of any property1 or any transactions involving the transfer of anything of economic value by any ,united ,states person1 including any ,united ,states financial institution and any branch or office of such financial institution that is located outside the ,united ,states1 to a designated person4 7,b7 ,the transfer directly or indirectly1 of any goods1 technology1 or services by a ,united ,states person to a designated person4 7d7 ,review of transaction licenses ,the ,secretary of the ,treasury shall review all transaction licenses granted pursuant to subpart ,e of part #eaj of title #ca1 ,code of ,federal ,regulations1 all applications for such licenses1 and all exclusions from such licensing requirements not later than #ahj days after the date of the enactment of this ,act1 and shall deny or revoke any license for any transaction that1 in the determination of the ,secretary of the ,treasury1 lacks sufficient financial controls to ensure that such transaction will not facilitate any of the activities described in section #ajd7;a74 7e7 ,denial of visas ,the ,president may direct the ,secretary of ,state to deny a visa to1 and the ,secretary of ,homeland ,security to exclude from the ,united ,states1 any alien who is a designated person1 or who is a corporate officer or principal of1 or a shareholder with a controlling interest in1 a designated person4 7f7 ,international cooperation ,the ,president shall-- 7#a7 take appropriate steps to secure the effective enforcement of anti-money laundering protocols consistent with the purpose of this ,act1 through bilateral discussions with foreign governments and through the ,financial ,action ,task ,force2 and 7#b7 support efforts of foreign governments to enact and enforce legislation consistent with the purposes of this ,act4 #bjb4 ,sanctions against the provision of specialized financial messaging services to designated ,north ,korean financial institutions 7a7 ,briefings required 7#a7 ,in general ,not later than #ij days after the date of the enactment of this ,act1 and every #ahj days thereafter1 the ,president shall provide to the appropriate congressional committees a briefing on the following3 7,a7 ,a list of all persons and foreign governments that the ,president has identified that directly provide specialized financial messaging services to1 or enable or facilitate direct or indirect access to such messaging services for1 any ,north ,korean financial institution designated under section #ajd7;b74 7,b7 ,a detailed assessment of the status of efforts by the ,president to end the direct provision of such messaging services to1 and the enabling or facilitation of direct or indirect access to such messaging services for any ,north ,korean financial institution designated under section #ajd7;b74 7#b7 ,enabling or facilitation of access to specialized financial messaging services through intermediary financial institutions ,for purposes of paragraph 7#a7 and subsection 7b71 enabling or facilitating direct or indirect access to specialized financial messaging services for any ,north ,korean financial institution designated under section #ajd7;b7 includes doing so by serving as an intermediary financial institution with access to such messaging services4 7b7 ,authorization of imposition of sanctions 7#a7 ,in general ,except as provided in paragraph 7#b71 if1 on or after the date that is #ahj days after the date of the enactment of this ,act1 a person continues to knowingly and directly provide specialized financial messaging services to1 or knowingly enable or facilitate direct or indirect access to such messaging services for any ,north ,korean financial institution designated under section #ajd7;b71 the ,president may impose sanctions pursuant to section #bjf7;b7 of the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agje7;b77 with respect to the person4 7#b7 ,exception ,the ,president may not impose sanctions pursuant to paragraph 7#a7 with respect to a person for directly providing specialized financial messaging services to1 or enabling or facilitating direct or indirect access to such messaging services for1 any ,north ,korean financial institution designated under section #ajd7;b7 if-- 7,a7 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 to1 and the knowing enabling and facilitation of direct or indirect access to such messaging services for any ,north ,korean financial institution designated under section #ajd7;b72 and 7,b7 the person has1 pursuant to that sanctions regime1 terminated the knowing provision of such messaging services to1 and the knowing enabling and facilitation of direct or indirect access to such messaging services for1 any ,north ,korean financial institution designated under section #ajd7;b7 identified under such governing foreign law for purposes of that sanctions regime4 7#c7 ,requirement for consultation ,the ,president may not impose sanctions pursuant to paragraph 7#a7 with respect to a person for directly providing specialized financial messaging services to1 or enabling or facilitating direct or indirect access to such messaging services for1 any ,north ,korean financial institution designated under section #ajd7;b7 unless the ,president has made good-faith efforts to obtain the voluntary cessation of such specialized financial messaging services by such person4 #bjc4 ,proliferation prevention sanctions 7a7 ,in general ,section #f7;j7 of the ,export ,administration ,act of #aigi 7#ej ,u4,s4,c4 ,app4 #bdje71 as continued in effect under the ,international ,emergency ,economic ,powers ,act1 is amended by adding at the end the following new paragraph3 7#g7 ,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 terrorism1 as determined by the ,secretary of ,state under paragraph 7#a7 or any other provision of law4 4 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 #bghj7 shall also apply to exporting or otherwise providing 7by sale1 lease or loan1 grant1 or other means71 directly or indirectly1 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 7d7 of such section 7relating to designation of state sponsors of terrorism7 applies4 #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 activities described in section #ajd7;a74 ,such amendment shall apply with respect to contracts for which solicitations are issued on or after the date that is #ij days after the date of the enactment of this ,act4 7c7 ,,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 #i of the ,federal ,acquisition ,regulation each person that is debarred1 suspended1 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 7b74 ,if the head of an executive agency determines that a person has submitted a false certification under subsection 7b7 after the date on which the ,federal ,acquisition ,regulation is revised to implement the requirements of this section1 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 years4 ,any such debarment or suspension shall be subject to the procedures that apply to debarment and suspension under the ,federal ,acquisition ,regulation under subpart #i4d of part #i of title #dh1 ,code of ,federal ,regulations4 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 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 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 ,sanctions with respect to the provision of vessels or shipping services to transport certain goods related to proliferation1 terrorism1 or criminal activities of ,north ,korea 7a7 ,briefing required ,not later than #ahj days after the date of the enactment of this ,act1 and every #ahj days thereafter1 the ,president shall provide to the appropriate congressional committees a briefing identifying foreign 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 customs inspection requirements ,not later than #ahj days after the identification of any port or airport pursuant to subsection 7a71 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 airport4 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 chapter #d of title #ai1 ,united ,states ,code1 and the proceeds of any such forfeiture shall be available for the purposes described in section #djc4 #bjf4 ,international assistance 7a7 ,condition on provision of united states funds to an international financial institution ,funds appropriated for payment to an international financial institution 7as defined in section #agja7;c77#b7 of the ,international ,financial ,institutions ,act 7#bb ,u4,s4,c4 #bfbr7c77#b777 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 ,korea4 7b7 ,opposition to use of international financial institution funds for north korea ,the ,united ,states ,executive ,director at each international financial institution 7as so defined7 shall use the voice1 vote1 and influence of the ,united ,states to oppose the provision by the institution of any assistance to the ,government of ,north ,korea4 7c7 ,transactions in defense articles and defense services 7#a7 ,in general ,the ,president shall withhold assistance under part ,i of the ,foreign ,assistance ,act of #aifa 7#bb ,u4,s4,c4 #baea et seq47 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 ,korea4 7#b7 ,applicability ,the prohibition described in paragraph 7#a7 shall terminate on the date that is #b years after the date on which such foreign government ceases to provide defense articles and defense services to the ,government of ,north ,korea1 or to purchase or receive defense articles and defense services from the ,government of ,north ,korea4 7#c7 ,waiver ,assistance may be furnished to a foreign government described in paragraph 7#a7 if the ,president makes the determinations prescribed in subsection 7b7 of section #fbj;,g of the ,foreign ,assistance ,act of #aifa1 as amended 7#bb ,u4,s4,c4 #bcgg7;b774 #bjg4 ,exclusion1 waiver1 and removal of designation 7a7 ,exclusions ,the following activities shall not apply with respect to the requirement under subsection 7a71 7b71 7c71 or 7d7 of section #ajd to designate a person1 foreign government1 or financial institution for purposes of imposing a sanction or sanctions on the designated person3 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 the exclusive purpose for which is to provide humanitarian assistance to the people of ,north ,korea4 7#c7 ,any 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#d7 ,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 ,nations1 signed ,june #bf1 #aidg1 and entered into force ,november #ba1 #aidg1 or under the ,vienna ,convention on ,consular ,relations1 signed ,april #bd1 #aifc1 and entered into force on ,march #ai1 #aifg4 7#e7 ,any transaction the exclusive purpose for which is to import fertilizers1 pesticides1 agricultural equipment1 or medical supplies or equipment into ,north ,korea1 provided that such supplies or equipment are not controlled under-- 7,a7 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 7,b7 the ,arms ,export ,control ,act 7#bb ,u4,s4,c4 #bgea et seq472 7,c7 part ,b of title ,,viii of the ,nuclear ,proliferation ,prevention ,act of #aiid 7#bb ,u4,s4,c4 #fcja et seq472 or 7,d7 the ,chemical and ,biological ,weapons ,control and ,warfare ,elimination ,act of #aiia 7#bb ,u4,s4,c4 #efja et seq474 7b7 ,waivers 7#a7 ,in general ,the ,president may waive1 on a case-by-case basis1 and for a period not to exceed one year1 the requirement under subsection 7a7 or 7b7 of section #ajd to designate a person1 foreign government1 or financial institution1 or to impose a sanction or sanctions on the designated person1 if the ,president submits to the appropriate congressional committees a written determination that the waiver meets the following requirements3 7,a7 ,the waiver is vital to the economic or national security interests of the ,united ,states4 7,b7 ,the waiver will advance the purposes set forth in section #d of the ,north ,korea ,human ,rights ,act of #bjjd 7#bb ,u4,s4,c4 #ghja et seq474 7,c7 ,the waiver is for the benefit of a financial institution that-- 7i7 has blocked all ,north ,korean property deposited in such financial institution1 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 #ajd7;a72 and 7ii7 is providing good-faith cooperation with the investigation of any of the activities described in section #ajd7;a7 or the enforcement of the provisions of this ,act4 7,d7 ,the waiver is for the benefit of a person1 foreign government1 or financial institution that is providing good-faith cooperation with the investigation of any of the activities described in section #ajd7;a7 and the enforcement of this ,act4 7,e7 ,the waiver is for the benefit of a person1 foreign government1 or financial institution that provides underwriting1 financial1 insurance1 reinsurance1 reflagging1 transportation1 or financial messaging services1 and who has exercised due diligence in establishing and enforcing official policies1 procedures1 and controls to ensure that the person1 foreign government1 or financial institution 7as the case may be7 does not facilitate any of the activities described in section #ajd7;a74 7,f7 ,in the absence of the waiver1 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 ,act4 7#b7 ,government of ,north ,korea ,the ,president may waive1 on a case-by-case basis1 and for a period not to exceed one year1 the requirement under section #ajd7;c7 to designate the ,government of ,north ,korea1 or to impose a sanction or sanctions on the ,government of ,north ,korea1 if the ,president submits to the appropriate congressional committees a written determination that the waiver meets the requirements described in paragraph 7#a77;,f74 7c7 ,removal of sanctions ,the ,president may prescribe rules and regulations for the removal of sanctions on a person1 foreign government1 or financial institution that is designated under subsection 7a71 7b71 or 7d7 of section #ajd and the removal of designations of a person1 foreign government1 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 #ajd7;a7 and is cooperating with the investigation of such activities and carrying out this ,act4 7d7 ,financial services for humanitarian and consular activities ,the ,president may promulgate regulations1 rules1 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 section4 ,,iii ,promotion of human rights and disinvestment #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 ,disclosures to ,securities and ,exchange ,commission relating to sanctionable activities 7a7 ,in general ,section #ac of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #ghm7 is amended by adding at the end the following new subsection3 7s7 ,disclosure of certain activities relating to ,north ,korea1 terrorism1 and the proliferation of weapons of mass destruction 7#a7 ,general disclosure required ,each issuer required to file an annual or quarterly report under subsection 7a7 shall include with such report a statement of whether1 during the period since the issuer made the last such report1 the issuer or any affiliate of the issuer-- 7,a7 was designated under section #ajd of the ,north ,korea ,sanctions ,enforcement ,act of #bjac1 or engaged in any of the activities described in section #ajd7;a7 of such ,act2 or 7,b7 knowingly conducted any transaction or dealing with any person designated pursuant to subsection 7a71 7b71 7c71 or 7d7 of section #ajd of the ,north ,korea ,sanctions ,enforcement ,act of #bjac4 7#b7 ,specific disclosure required ,if an issuer reports under paragraph 7#a7 that the issuer or an affiliate of the issuer has engaged in any activity described in that paragraph1 the issuer shall include with the statement required under that paragraph a detailed description of each such activity1 including-- 7,a7 the nature and extent of the activity2 7,b7 the revenues and profits1 if any1 attributable to the activity2 and 7,c7 whether the issuer or the affiliate of the issuer 7as the case may be7 intends to continue the activity4 7#c7 ,investigation of disclosures ,when the ,commission receives a report under paragraph 7#a7 from an issuer that the issuer or an affiliate of the issuer has engaged in any activity described in that paragraph1 the ,president shall-- 7,a7 initiate an investigation into the possible imposition of sanctions under the ,north ,korea ,sanctions ,enforcement ,act of #bjac1 the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agja et seq471 ,executive ,order #acbbd1 ,executive ,order #acchb1 ,executive ,order #aceea1 ,executive ,order #acegj1 or any other provision of law2 and 7,b7 not later than #ahj days after initiating such an investigation1 make such determinations as are required by section #ajd of the ,north ,korea ,sanctions ,enforcement ,act of #bjac4 4 7b7 ,effective date ,the amendment made by subsection 7a7 shall take effect with respect to reports required to be filed with the ,securities and ,exchange ,commission after a date that is #ij days after the date of the enactment of this ,act4 #cjc4 ,authority of ,state and local governments to divest from companies that invest in ,north ,korea 7a7 ,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 moral1 prudential1 or reputational reasons divests from1 or prohibits the investment of assets of such ,state or local government in1 a person that engages in investment activities in ,north ,korea1 if ,north ,korea is subject to economic sanctions imposed by the ,united ,states4 7b7 ,authority ,to divest ,notwithstanding any other provision of law1 a ,state or local government may adopt and enforce measures that meet the requirements of subsection 7d7 to divest the assets of such ,state or local government from1 or prohibit investment of the assets of such ,state or local government in1 any person that such ,state or local government determines1 using credible information available to the public1 engages in investment activities in ,north ,korea described in subsection 7c74 7c7 ,investment activities described ,a person engages in investment activities in ,north ,korea described in this subsection if the person-- 7#a7 has an investment of #aj1jjj or more in ,north ,korea2 or 7#b7 is a financial institution that extends #aj1jjj or more in credit to another person1 for #de days or more1 if such person will use such credit for investment in ,north ,korea4 7d7 ,requirements ,any measure taken by a ,state or local government under subsection 7b7 shall meet the following requirements3 7#a7 ,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 applied4 7#b7 ,timing ,the measure applied under this section shall apply to a person not earlier than the date that is #ij days after the date on which written notice is provided to such person under paragraph 7#a74 7#c7 ,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 section4 ,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 7c71 such measure shall not apply to such person4 7#d7 ,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 7b7 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 7c74 7e7 ,notice to department of justice ,not later than #cj days after a ,state of local government applies a measure under this section1 such ,state or local government shall notify the ,attorney ,general of such measure4 7f7 ,nonpreemption ,a measure applied by a ,state or local government authorized under subsection 7b7 or 7i7 is not preempted by any ,federal law or regulation4 7g7 ,definitions ,in this section3 7#a7 ,asset 7,a7 ,in general ,except as provided in subparagraph 7,b71 the term asset refers to public monies and includes any pension1 retirement1 annuity1 or endowment fund1 or similar instrument1 that is controlled by a ,state or local government4 7,b7 ,exception ,the term asset does not include employee benefit plans covered by title ,i of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajja et seq474 7#b7 ,investment ,the term investment includes-- 7,a7 a commitment or contribution of funds or property2 7,b7 a loan or other extension of credit2 and 7,c7 the entry into or renewal of a contract for goods or services4 7h7 ,effective date 7#a7 ,in general ,except as provided in paragraph 7#b7 or subsection 7i71 this section applies to measures applied by a ,state or local government before1 on1 or after the date of the enactment of this ,act4 7#b7 ,notice requirements ,except as provided in subsection 7i71 subsections 7d7 and 7e7 apply to measures applied by a ,state or local government on or after the date of the enactment of this ,act4 7i7 ,authorization for prior applied measures 7#a7 ,in general ,notwithstanding any other provision of this section or any other provision of law1 a ,state or local government may enforce a measure 7without regard to the requirements of subsection 7d71 except as provided in paragraph 7#b77 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 from1 or prohibits the investment of the assets of such ,state or local government in1 any person that such ,state or local government determines1 using credible information available to the public1 engages in investment activities in ,north ,korea 7determined without regard to subsection 7c77 or other business activities in ,north ,korea that are identified in such measure4 7#b7 ,application of notice requirements ,a measure described in paragraph 7#a7 shall be subject to the requirements of paragraphs 7#a7 and 7#b7 and the first sentence of paragraph 7#c7 of subsection 7d7 on and after the date that is two years after the date of the enactment of this ,act4 7j7 ,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 safety1 soundness1 and solvency of a financial institution subject to its jurisdiction or the business of insurance pursuant to the ,act of ,march #i1 #aide 7#ae ,u4,s4,c4 #ajaa et seq47 7commonly known as the ,mc,carran-,ferguson ,act74 #cjd4 ,safe harbor for changes of investment policies by asset managers 7a7 ,in general ,section #ac7;c77#a7 of the ,investment ,company ,act of #aidj 7#ae ,u4,s4,c4 #hj;a-#ac7;c77#a77 is amended-- 7#a7 in subparagraph 7,a71 by striking or at the end2 7#b7 in subparagraph 7,b71 by striking the period and inserting 2 or2 and 7#c7 by adding at the end the following3 7,c7 engage in investment activities in ,north ,korea described in section #cjc of the ,north ,korea ,sanctions ,enforcement ,act of #bjac4 4 7b7 ,securities and exchange commission regulations ,not later than #abj days after the date of the enactment of this ,act1 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 #ac7;c7 of the ,investment ,company ,act of #aidj 7#ae ,u4,s4,c4 #hj;a-#ac7;c771 including divestments of securities in accordance with subparagraph 7,c7 of such section1 as added by subsection 7a77#c74 #cje4 ,sense of ,congress regarding certain ,,erisa plan investments ,it is the sense of ,congress that a fiduciary of an employee benefit plan1 as defined in section #c7c7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajjb7c771 may divest plan assets from1 or avoid investing plan assets in1 any person the fiduciary determines engages in investment activities in ,north ,korea described in section #djf of this ,act1 without breaching the responsibilities1 obligations1 or duties imposed upon such fiduciary by subparagraph 7,a7 or 7,b7 of section #djd7;a77#a7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #aajd7;a77#a771 if-- 7#a7 such fiduciary makes such determination using credible information that is available to the public2 and 7#b7 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-- 7,a7 a lower rate of return than alternative investments with commensurate degrees of risk2 or 7,b7 a higher degree of risk than alternative investments with commensurate rates of return4 #cjf4 ,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-- 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 shall 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 #cjg4 ,limits on jurisdictional immunity ,the exception to immunity provided in section #afje;,a of title #bh1 ,united ,states ,code1 applies to ,north ,korea1 to the same extent as any foreign state 7as defined in section #afjc of such title71 and 7as provided in section #afje7;c7 of such title7 to any official1 employee1 or agent of ,north ,korea1 without regard to whether or not ,north ,korea is designated as a state sponsor of terrorism1 as defined in section #afje;,a7h7 of such title4 ,,iv ,general authorities #dja4 ,suspension of sanctions and other measures 7#a7 ,in general ,any sanction or other measure required by title ,,ii or ,,iii of this ,act 7or any amendment made by title ,,ii 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 by the ,government of ,north ,korea2 7,e7 taken significant steps toward verification of its compliance with the ,joint ,statement of ,september #ai1 #bjje2 7,f7 accepted and begun to abide by internationally recognized standards for the distribution and monitoring of humanitarian aid2 7,g7 provided credible assurances that it will not support further acts of international terrorism2 and 7,h7 taken significant and verified steps to improve living conditions in its political prison camps4 7#b7 ,renewal of suspension ,the suspension described in paragraph 7#a7 may be renewed for an additional consecutive period of #cfe days upon certification by the ,president to the appropriate congressional committees that the ,government of ,north ,korea-- 7,a7 has continued to make significant progress toward compliance with the conditions described in paragraph 7#a7 during the previous year2 and 7,b7 meets #b or more of the requirements described in paragraphs 7#a7 through 7#f7 of section #djb4 #djb4 ,termination of sanctions and other measures ,any sanction or other measure required by title ,,ii or ,,iii and of this ,act 7or any amendment made by title ,,ii 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 the ,north ,korea's political prison camps2 7#c7 ceased its censorship of peaceful political activity2 7#d7 has taken significant steps toward the establishment of an open1 transparent1 and representative society2 7#e7 has fully accounted for all citizens of all nations abducted by the ,government of ,north ,korea2 and 7#f7 made public commitments to1 and continues to make significant progress toward-- 7,a7 establishing an independent judiciary2 and 7,b7 respecting the human rights and basic freedoms recognized in the ,universal ,declaration of ,human ,rights4 #djc4 ,north ,korea ,enforcement and ,humanitarian ,fund 7a7 ,establishment ,there is established in the ,treasury of the ,united ,states a fund to be known as the ,north ,korea ,enforcement and ,humanitarian ,fund 7in this section referred to as the ,fund74 7b7 ,deposits ,all revenues derived from any criminal1 civil1 or administrative forfeitures of property involved in any of the activities described in section #ajd7;a71 and all revenues derived from any agreement to defer prosecution for any such activities1 and all revenues derived from penalties assessed under section #bjf of the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agje7 arising from violations of section #ajd7;a7 or the regulations promulgated under section #ajd7;f7 or section #djd1 shall be deposited into the ,fund1 and may be transferred and consolidated on the books of the ,treasury into a special account for the purposes described in subsection 7c74 7c7 ,uses ,there are authorized to be appropriated from the ,fund each fiscal year-- 7#a7 such amounts as shall be necessary and appropriate for the administration of the ,fund2 and 7#b7 without regard to fiscal year limitation1 amounts not exceeding-- 7,a7 for salaries1 benefits1 and expenses for persons assigned by the ,president to conduct investigations and enforce sanctions as prescribed in this ,act1 #e1jjj1jjj2 7,b7 for any of the purposes described in section #ebd7;c7 of title #bh1 ,united ,states ,code1 or section #igjc of title #ca1 ,united ,states ,code1 with respect to investigations and enforcement activities under title ,i or title ,,ii1 #e1jjj1jjj2 7,c7 to carry out section #ajc of the ,north ,korea ,human ,rights ,act of #bjjd 7#bb ,u4,s4,c4 #ghac71 #c1jjj1jjj2 7,d7 to carry out section #ajd of the ,north ,korea ,human ,rights ,act of #bjjd 7#bb ,u4,s4,c4 #ghad71 #e1jjj1jjj2 7,e7 to carry out section #bjc of the ,north ,korea ,human ,rights ,act of #bjjd 7#bb ,u4,s4,c4 #ghcc71 #e1jjj1jjj2 and 7,f7 to carry out subsection 7d7 of section #ajd of the ,north ,korean ,human ,rights ,act of #bjjd 7#bb ,u4,s4,c4 #ghad7 7as added by section #cja of this ,act71 #b1jjj1jjj4 7d7 ,transfer ,to prevent the accumulation of excessive surpluses in the ,fund1 in any fiscal year an amount specified in an annual appropriation law may be transferred out of the ,fund and deposited1 in equal proportions1 into the funds established under section #igjc of title #ca1 ,united ,states ,code1 and under section #ebd7;c7 of title #bh1 ,united ,states ,code4 7e7 ,sunset ,the ,fund established under this section shall cease to exist on ,september #cj1 #bjbc1 and any unexpended funds remaining in the ,fund after such date shall be transferred in accordance with subsection 7d74 #djd4 ,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 ,act4 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 to designate or sanction persons pursuant to ,executive ,order ,no4 #acchb1 #acbbd1 #aceea1 or otherwise pursuant to the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agja et seq474 #dje4 ,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