,,ii #aacth ,,congress #b;d ,session ,s4 #cjab ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,december #ab1 #bjad,mr4 ,menendez introduced the following bill2 which was read twice and referred to the ,committee on ,foreign ,relations ,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 #bjad4 7b7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4 ,sec4 #b4 ,findings2 purposes4 ,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 ,designation of persons4 ,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 inspection authorities4 ,sec4 #bjf4 ,travel sanctions4 ,sec4 #bjg4 ,exemptions1 waivers1 and removals of designation4 ,,title ,,iii--,promotion of human rights ,sec4 #cja4 ,information technology4 ,sec4 #cjb4 ,report on ,north ,korean prison camps4 ,sec4 #cjc4 ,briefing on 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 ,north ,korea ,enforcement and ,humanitarian ,fund4 ,sec4 #djd4 ,rulemaking4 ,sec4 #dje4 ,effective date4 #b4 ,findings2 purposes 7a7 ,findings ,congress finds the following3 7#a7 ,the ,government of ,north ,korea-- 7,a7 has repeatedly violated its commitments to the complete1 verifiable1 and irreversible dismantlement of its nuclear weapons programs2 and 7,b7 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-- 7,a7 prohibited arms sales2 7,b7 narcotics trafficking2 7,c7 the counterfeiting of ,united ,states currency2 and 7,d7 the counterfeiting of intellectual property of ,united ,states persons4 7#d7 ,north ,korea has-- 7,a7 unilaterally withdrawn from the ,korean ,war ,armistice ,agreement1 done at ,panmunjom1 ,korea1 ,july #bg1 #aiec2 and 7,b7 committed provocations against ,south ,korea in #bjaj-- 7i7 by sinking the warship ,cheonan and killing #df of her crew2 and 7ii7 by shelling ,yeonpyeong ,island and killing #d ,south ,korean civilians4 7#e7 ,north ,korea maintains a system of brutal political prison camps that contain as many as #bjj1jjj men1 women1 and children1 who are-- 7,a7 kept in atrocious living conditions with insufficient food1 clothing1 and medical care2 and 7,b7 under constant fear of torture or arbitrary execution4 7#f7 ,north ,korea has prioritized weapons programs and the procurement of luxury goods-- 7,a7 in defiance of ,united ,nations ,security ,council ,resolutions #afie 7adopted ,july #ae1 #bjjf71 #agah 7adopted ,october #ad1 #bjjf71 #ahgd 7adopted ,june #ab1 #bjji71 #bjhg 7adopted ,january #bb1 #bjac71 and #bjid 7adopted ,march #g1 #bjac72 and 7,b7 in gross disregard of the needs of its people4 7#g7 ,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 goods-- 7,a7 aid and abet ,north ,korea's misuse of the international financial system2 and 7,b7 violate the intent of the ,united ,nations ,security ,council resolutions referred to in paragraph 7#f77;,a74 7#h7 ,the conduct of the ,government of ,north ,korea poses an imminent threat to-- 7,a7 the security of the ,united ,states and its allies2 7,b7 the global economy2 7,c7 the safety of members of the ,united ,states ,armed ,forces2 7,d7 the integrity of the global financial system2 7,e7 the integrity of global nonproliferation programs2 and 7,f7 the people of ,north ,korea4 7b7 ,purposes ,through this ,act1 ,congress seeks-- 7#a7 to use nonmilitary means to address the crisis described in subsection 7a72 7#b7 to provide diplomatic leverage to negotiate necessary changes in ,north ,korea's conduct2 7#c7 to ease the suffering of the people of ,north ,korea2 and 7#d7 to reaffirm the purposes set forth in section #d of the ,north ,korean ,human ,rights ,act of #bjjd 7#bb ,u4,s4,c4 #ghjb74 #c4 ,definitions ,in this ,act3 7#a7 ,applicable executive order ,the term applicable ,executive order means-- 7,a7 ,executive ,order #acchb 7#gj ,fed4 ,reg4 #chefg2 relating to blocking property of weapons of mass destruction proliferators and their supports71 ,executive ,order #acdff 7#gc ,fed4 ,reg4 #cfghg2 relating to continuing certain restrictions with respect to ,north ,korea and ,north ,korean nationals71 ,executive ,order #aceea 7#ge ,fed4 ,reg4 #echcg2 relating to blocking property of certain persons with respect to ,north ,korea71 or ,executive ,order #acegj 7#gf ,fed4 ,reg4 #bbbia2 relating to prohibiting certain transactions with respect to ,north ,korea71 to the extent that such ,executive order-- 7i7 authorizes the imposition of sanctions on persons for conduct2 or 7ii7 prohibits transactions or activities 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-- 7i7 authorizes the imposition of sanctions on persons for conduct2 or 7ii7 prohibits transactions or activities 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 7adopted ,july #ae1 #bjjf71 #agah 7adopted ,october #ad1 #bjjf71 #ahgd 7adopted ,june #ab1 #bjji71 #bjhg 7adopted ,january #bb1 #bjac71 or #bjid 7adopted ,march #g1 #bjac72 or 7,b7 any ,united ,nations ,security ,council resolution adopted on or after the date of the enactment of this ,act that-- 7i7 authorizes the imposition of sanctions on persons for conduct2 or 7ii7 prohibits transactions or activities involving the ,government of ,north ,korea4 7#c7 ,appropriate congressional committees ,the term appropriate congressional committees means-- 7,a7 the ,committee on ,foreign ,relations of the ,senate2 7,b7 the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate2 7,c7 the ,committee on ,foreign ,affairs of the ,house of ,representatives2 and 7,d7 the ,committee on ,financial ,services of the ,house of ,representatives4 7#d7 ,designated person ,the term designated person means a person designated under subsection 7a7 or 7b7 of section #ajd for purposes of applying #a or more of the sanctions described in title ,i or ,,ii 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 ,north ,korea4 7#f7 ,luxury goods ,the term luxury goods-- 7,a7 has the meaning given such term in section #gdf4d7;b77#a7 of title #ae1 ,code of ,federal ,regulations2 and 7,b7 includes the items listed in ,supplement ,no4 #a to ,part #gdf of such title1 and any similar items4 7#g7 ,monetary instruments ,the term monetary instruments has the meaning given such term in section #ecab7;a7 of title #ca1 ,united ,states ,code4 7#h7 ,north ,korean financial institution ,the term ,north ,korean financial institution means any financial institution that-- 7,a7 is organized under the laws of ,north ,korea or any jurisdiction within ,north ,korea 7including a foreign branch of such institution72 7,b7 is located in ,north ,korea1 except for a financial institution that is excluded by the ,president in accordance with section #bjg7;d72 7,c7 is owned or controlled by the ,government of ,north ,korea1 regardless of location2 and 7,d7 is owned or controlled by a financial institution described in subparagraph 7,a71 7,b71 or 7,c71 regardless of location4 7#i7 ,other stores of value ,the term other stores of value means-- 7,a7 prepaid access devices1 tangible or intangible prepaid access devices1 and other instruments or devices for the storage or transmission of value 7as such terms are defined in part #ajaj of title #ca1 ,code of ,federal ,regulations72 and 7,b7 any covered goods 7as defined in section #ajbg4ajj of title #ca1 ,code of ,federal ,regulations71 and any instrument or tangible or intangible access device used for the storage and transmission of a representation of covered goods1 or other device 7as defined in such section #ajbg4ajj74 ,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 member states to fully and promptly implement ,united ,nations ,security ,council ,resolution #bjid 7adopted ,march #g1 #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 7a7 ,initiation ,the ,president is authorized to 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 7b7 ,personnel ,the ,president may direct the ,secretary of ,state1 the ,secretary of the ,treasury1 and the heads of other ,federal departments and agencies as may be necessary to assign sufficient experienced and qualified investigators1 attorneys1 and technical personnel-- 7#a7 to investigate the conduct described in subsections 7a7 and 7b7 of section #ajd2 and 7#b7 to coordinate and ensure the effective enforcement of the provisions of this ,act4 #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 ,act4 #ajd4 ,designation of persons 7a7 ,prohibited activities 7#a7 ,prohibited conduct described ,except as provided in section #bjg1 the ,president may designate under this subsection any person that the ,president determines-- 7,a7 knowingly 7directly or indirectly7 imported1 exported1 or reexported to1 into1 or from ,north ,korea any goods1 services1 or technology controlled for export by the ,united ,states due to their use for weapons of mass destruction and their delivery systems and materially contributing to the use1 development1 production1 possession1 or acquisition by any persons of a nuclear1 radiological1 chemical1 or biological weapon1 or any device or system designed in whole or in part to deliver such a weapon2 7,b7 knowingly 7directly or indirectly7 provided training1 advice1 or other services or assistance1 or engaged in significant financial transactions1 relating to the manufacture1 maintenance1 or use of any such weapon or system to be imported1 exported1 or reexported to1 into1 or from ,north ,korea2 7,c7 knowingly 7directly or indirectly7 imported1 exported1 or reexported luxury goods to or into ,north ,korea2 7,d7 knowingly engaged in1 or is responsible for1 censorship by the ,government of ,north ,korea2 7,e7 knowingly engaged in1 or is responsible for1 serious human rights abuses by the ,government of ,north ,korea2 7,f7 knowingly 7directly or indirectly7 engaged in money laundering1 the counterfeiting of goods or currency1 bulk cash smuggling1 or narcotics trafficking that supports the ,government of ,north ,korea or any senior official thereof2 or 7,g7 knowingly attempted to engage in any of the conduct described in subparagraphs 7,a7 through 7,e74 7#b7 ,penalties ,the penalties provided for in subsections 7b7 and 7c7 of section #bjf of the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agje7 shall apply to any person who violates1 attempts to violate1 conspires to violate1 or causes a violation of any prohibition under 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 such ,act 7#ej ,u4,s4,c4 #agje7;a774 7b7 ,additional prohibited activities 7#a7 ,prohibited conduct described ,except as provided in section #bjg1 the ,president may designate under this subsection any person that the ,president determines-- 7,a7 knowingly engaged in1 contributed to1 assisted1 sponsored1 or provided financial1 material or technological support for1 or goods and services in support of1 any person designated pursuant to an applicable ,united ,nations ,security ,council resolution2 7,b7 knowingly contributed to-- 7i7 the bribery of an official of the ,government of ,north ,korea2 7ii7 the misappropriation1 theft1 or embezzlement of public funds by1 or for the benefit of1 an official of the ,government of ,north ,korea2 or 7iii7 the use of any proceeds of any such conduct2 or 7,c7 knowingly and materially assisted1 sponsored1 or provided significant financial1 material1 or technological support for1 or goods or services to or in support of1 the activities described in subparagraph 7,a7 or 7,b74 7#b7 ,effect of designation ,with respect to any person designated under this subsection1 the ,president may-- 7,a7 apply the sanctions described in section #bjd1 #bje1 or #bjf2 7,b7 apply any of the special measures described in section #ecah;,a of title #ca1 ,united ,states ,code2 7,c7 prohibit any transactions in foreign exchange-- 7i7 that are subject to the jurisdiction of the ,united ,states2 and 7ii7 in which such person has any interest2 and 7,d7 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-- 7i7 are subject to the jurisdiction of the ,united ,states2 and 7ii7 involve any interest of such person4 7c7 ,asset blocking ,the ,president shall exercise all of the powers granted to the ,president under the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agja et seq47 to the extent necessary to block and prohibit all transactions in property and interests in property of a person determined by the ,president to be subject to this section if such property and interests in property are in the ,united ,states1 come within the ,united ,states1 or are or come within the possession or control of a ,united ,states person4 7d7 ,application ,the designation of a person under subsection 7a7 or 7b7 and the blocking of property and interests in property under subsection 7c7 shall apply with respect to a person who is determined to be owned or controlled by1 or to have acted or purported to have acted for or on behalf of 7directly or indirectly7 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 that the ,president determines to lack sufficient financial controls to ensure that such transaction will not facilitate any of the conduct described in subsection 7a7 or 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 following3 7,i7 ,any real or personal property 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 to read as follows3 7,d7 the ,trading with the ,enemy ,act 7#ej ,u4,s4,c4 ,app4 #a et seq471 the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agja et seq471 or the ,north ,korea ,sanctions ,enforcement ,act of #bjad2 or 4 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 #bjad 7relating to prohibited trade with ,north ,korea724 7d7 ,authorization of appropriations ,from the amounts in the ,assets ,forfeiture ,fund established under section #ebd7;c7 of title #bh1 ,united ,states ,code1 or the ,department of the ,treasury ,forfeiture ,fund established under section #igjc of title #ca1 ,united ,states ,code1 as added by the ,treasury ,forfeiture ,fund ,act of #aiib 7section #fch of ,public ,law #ajb-cic71 there are authorized to be appropriated for each of the fiscal years #bjae through #bjbc1 in such proportions as the ,president may determine1 and without fiscal year limitation1 #e1jjj1jjj for law enforcement expenses for the enforcement of this ,act or any amendment made by this ,act1 including salaries and expenses of investigators1 attorneys1 technical personnel1 and such personnel as the ,president determines to be necessary to enforce this ,act or any such amendment4 7e7 ,payment in lieu of forfeiture ,any money paid to the ,united ,states by a financial institution or other person in lieu of the commencement of criminal1 civil1 or administrative forfeiture proceedings to forfeit property involving any activity described in section #ajd7;a7 or in settlement of such forfeiture proceedings-- 7#a7 shall be treated as forfeited funds2 and 7#b7 shall be deposited1 in such proportions as the ,president may determine1 into-- 7,a7 the ,assets ,forfeiture ,fund established under section #ebd7;c7 of title #bh1 ,united ,states ,code2 or 7,b7 the ,department of the ,treasury ,forfeiture ,fund established under section #igjc of title #ca1 ,united ,states ,code1 as added by the ,treasury ,forfeiture ,fund ,act of #aiib 7section #fch of ,public ,law #ajb-cic74 7f7 ,rule of construction ,nothing in this title or any amendment made by this title may be construed to restrict or limit the authority of the ,president under-- 7#a7 section #ebd7;c7 of title #bh1 ,united ,states ,code2 or 7#b7 section #igjc of title #ca1 ,united ,states ,code1 as added by the ,treasury ,forfeiture ,fund ,act of #aiib 7section #fch of ,public ,law #ajb-cic74 ,,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 ,under ,secretary 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 and has repeatedly expressed concern about ,north ,korea's misuse of the international financial system-- 7,a7 in #bjjf-- 7i7 stated1 ,given ,north ,korea's counterfeiting of ,u4,s4 currency1 narcotics trafficking and use of accounts world-wide to conduct proliferation-related transactions1 the line between illicit and licit ,north ,korean money is nearly invisible42 and 7ii7 urged financial institutions worldwide to think carefully about the risks of doing any ,north ,korea-related business2 7,b7 in #bjaa1 stated that ,north ,korea-- 7i7 remains intent on engaging in proliferation1 selling arms as well as bringing in material2 and 7ii7 was aggressively pursuing the effort to establish front companies42 and 7,c7 in #bjac1 stated-- 7i7 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 system2 and 7ii7 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-- 7i7 to protect against correspondent relationships being used to bypass or evade countermeasures and risk mitigation practices2 and 7ii7 to take into account money laundering and terrorist financing risks when considering requests by ,north ,korean financial institutions to open branches and subsidiaries in their respective jurisdictions4 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-- 7i7 recommendation on financial sanctions related to proliferation2 and 7ii7 guidance on the implementation of such sanctions2 7,b7 decided that ,united ,nations ,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 ,united ,nations ,member ,states to prohibit ,north ,korean banks from establishing or maintaining correspondent relationships with banks in their respective jurisdictions to prevent the provision of financial services if such states have information that provides reasonable grounds to believe that such activities could contribute to-- 7i7 activities prohibited by an applicable ,united ,nations ,security ,council resolution2 or 7ii7 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 to require the enhanced monitoring of1 transactions involving ,north ,korean financial institutions that could contribute to sanctioned activities2 7#b7 urges the ,president1 in the strongest terms-- 7,a7 to consider immediately designating ,north ,korea as a jurisdiction of primary money laundering concern2 and 7,b7 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-- 7,a7 activities sanctioned by applicable ,united ,nations ,security ,council resolutions2 or 7,b7 the evasion of such sanctions4 7c7 ,determinations regarding ,north ,korea 7#a7 ,in general ,not later than #ahj days after the date of the enactment of this ,act1 the ,secretary of the ,treasury1 in consultation with the ,secretary of ,state and ,attorney ,general1 and in accordance with section #ecah;,a of title #ca1 ,united ,states ,code1 shall determine 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 concluding that ,north ,korea is a jurisdiction of primary money laundering concern1 the ,secretary1 in consultation with the ,federal functional regulators1 shall impose #a 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 ,the ,secretary of the ,treasury shall submit a report to the appropriate congressional committees that contains the reasons for any determination under paragraph 7#a74 7,b7 ,form ,the report submitted under subparagraph 7,a7 shall be submitted in unclassified form1 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 member states and jurisdictions are obligated to implement and enforce applicable ,united ,nations ,security ,council resolutions fully and promptly1 including by 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 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-- 7,a7 the enforcement of applicable ,united ,nations ,security ,council resolutions2 and 7,b7 the protection of the international financial system2 7#e7 the report of the ,panel of ,experts established pursuant to ,united ,nations ,security ,council ,resolution #ahgd 7adopted on ,june #aa1 #bjac7 expressed concern about the ability of banks in-- 7,a7 states with less effective regulators2 and 7,b7 states that are 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 ,union as having materially contributed to the proliferation of weapons of mass destruction2 7#h7 ,korea ,daesong ,bank and ,korea ,kwangson ,banking ,corporation have been designated by the ,secretary of the ,treasury and the ,european ,union as having materially contributed to the proliferation of weapons of mass destruction2 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 efforts in appropriate international fora1 such as the ,united ,nations1 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 ,a validated license shall be required for the export of any goods or technology otherwise covered under section #f7;j7 of the ,export ,administration ,act of #aigi 7#ej ,u4,s4,c4 ,app4 #bdje7;j774 ,no defense exports may be approved for the ,government of ,north ,korea4 7b7 ,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 the government of any country that provides lethal military equipment to the ,government of ,north ,korea4 7#b7 ,applicability ,the prohibition under this subsection with respect to a foreign government shall terminate on the date that is #a year after the date on which the restriction under paragraph 7#a7 may have been applied4 7c7 ,waiver ,the ,secretary of ,state may waive the prohibitions under this section with respect to a country if the ,secretary determines that it is in the national interest of the ,united ,states to do so4 7d7 ,exception ,the prohibitions under this section shall not apply to the provision of assistance for human rights1 democracy1 rule of law1 or emergency humanitarian assistance4 #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 ,federal ,acquisition ,regulation 7#a7 ,in general ,the ,federal ,acquisition ,regulation issued pursuant to section #acjc of title #da1 ,united ,states ,code1 shall be revised to require that each person that is a prospective contractor submit a certification that such person does not engage in any of the conduct described in section #ajd7;a74 7#b7 ,applicability ,the revision referred to in paragraph 7#a7 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 ,general ,services ,administration 7#a7 ,inclusion on list ,the ,administrator of ,general ,services shall include1 on the ,list of ,parties ,excluded from ,federal ,procurement and ,nonprocurement ,programs maintained by the ,administrator under part #i of the ,federal ,acquisition ,regulation1 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 7#b7 ,contract termination2 suspension ,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-- 7,a7 terminate a contract with such person2 or 7,b7 debar or suspend such person from eligibility for ,federal contracts for a period of not more than #b years4 7#c7 ,applicable procedures ,any debarment or suspension under paragraph 7#b77;,b7 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 any eligible product 7as defined in section #cjh7d7 of the ,trade ,agreements ,act of #aigi 7#ai ,u4,s4,c4 #beah7d77 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 inspection authorities 7a7 ,report required ,not later than #ahj days after the date of the enactment of this ,act1 and annually thereafter1 the ,president shall submit a report to the appropriate congressional committees that identifies 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 not sufficient to effectively prevent the facilitation of any of the activities described in section #ajd7;a74 7b7 ,enhanced customs inspection requirements ,the ,secretary of ,homeland ,security may require enhanced inspections of any cargo landed in the ,united ,states or entering the stream of interstate commerce that has been transported through a port or airport identified by the ,president under subsection 7a74 7c7 ,seizure and forfeiture ,a vessel1 aircraft1 or conveyance used to facilitate any of the activities described in section #ajd7;a7 under the jurisdiction of the ,united ,states may be seized and forfeited under-- 7#a7 chapter #df of title #ah1 ,united ,states ,code2 or 7#b7 under the ,tariff ,act of #aicj 7#ai ,u4,s4,c4 #abjb et seq474 #bjf4 ,travel sanctions ,the ,secretary of ,state may deny a visa to1 and the ,secretary of ,homeland ,security1 pursuant to section #ajd1 may deny entry into the ,united ,states of1 any alien who is-- 7#a7 a designated person2 7#b7 a corporate officer of a designated person2 or 7#c7 a principal shareholder with a controlling interest in a designated person4 #bjg4 ,exemptions1 waivers1 and removals of designation 7a7 ,exemptions 7#a7 ,in general ,the following activities shall be exempt from sanctions under sections #ajd and #bjf3 7,a7 ,activities subject to the reporting requirements under 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,c7 ,any financial transaction for which the exclusive purpose is to import agricultural products1 medicine1 or medical devices into ,north ,korea if such supplies or equipment-- 7i7 are designated as ,,ear #ii under the ,export ,administration ,regulations 7#ae ,c4,f4,r4 #gcj et seq472 and 7ii7 are not controlled under-- 7,i7 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,,ii7 the ,arms ,export ,control ,act 7#bb ,u4,s4,c4 #bgea et seq472 7,,iii7 part ,b of title ,,viii of the ,nuclear ,proliferation ,prevention ,act of #aiid 7#bb ,u4,s4,c4 #fcja et seq472 or 7,,iv7 the ,chemical and ,biological ,weapons ,control and ,warfare ,elimination ,act of #aiia 7#bb ,u4,s4,c4 #efja et seq474 7#b7 ,export administration regulations defined ,in this subsection1 the term ,export ,administration ,regulations means the regulations set forth in subchapter ,c of chapter ,,vii of title #ae1 ,code of ,federal ,regulations 7#ae ,c4,f4,r4 #gcj et seq47 and maintained and amended under the authority of the ,international ,emergency ,economic ,powers ,ac 7#ej ,u4,s4,c4 #agja et seq474 7b7 ,waiver ,the ,president may waive1 for #a-year renewable periods1 the application of the sanctions authorized under section #ajd1 #bjd1 #bje1 or #bjf if the ,president submits to the appropriate congressional committees a written determination that the waiver meets #a or more of the following requirements3 7#a7 ,the waiver is important to the 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 ,financial services for humanitarian and consular activities ,the ,president may promulgate such 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 ,act4 ,,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 adding at the end the following3 7d7 ,information technology study ,not later than #ahj days after the date of the enactment of the ,north ,korea ,sanctions ,enforcement ,act of #bjad1 the ,president shall submit a classified report to the appropriate congressional committees that sets 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 a report to the appropriate congressional committees that describes1 with respect to each political prison camp in ,north ,korea1 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 the 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 ,briefing on serious human rights abuses or censorship in ,north ,korea 7a7 ,in general ,not later than #ahj days after the date of the enactment of this ,act1 the ,secretary of ,state shall providing a briefing1 which may be classified1 to the appropriate congressional committees that describes serious human rights abuses or serious censorship undertaken by the ,north ,korean government in the most recent year4 7b7 ,designation of responsible persons ,the ,president may designate under section #ajd7;a7 any person described in the briefing required under subsection 7a7 as responsible for serious human rights abuses or censorship in ,north ,korea4 7c7 ,sense of ,congress ,it is the sense of ,congress that the ,president should-- 7#a7 seek the prompt adoption by the ,united ,nations ,security ,council of a resolution calling for the blocking of the assets of all persons responsible for severe human rights abuses or censorship in ,north ,korea2 and 7#b7 fully cooperate with the prosecution of any natural person listed in the report required under subsection 7a7 before any international tribunal that may be established to prosecute persons responsible for severe human rights abuses or censorship in ,north ,korea4 ,,iv ,general authorities #dja4 ,suspension of sanctions and other measures 7a7 ,in general ,any sanction or other measure required under title ,i1 ,,ii1 or ,,iii 7or any amendment made by such titles7 may be suspended for up to #a year upon certification by the ,president to the appropriate congressional committees that the ,government of ,north ,korea has made progress toward-- 7#a7 verifiably ceasing its counterfeiting of ,united ,states currency1 including the surrender or destruction of specialized materials and equipment used or particularly suitable for counterfeiting2 7#b7 taking steps toward financial transparency to comply with generally accepted protocols to cease and prevent the laundering of monetary instruments2 7#c7 taking steps toward verification of its compliance with applicable ,united ,nations ,security ,council resolutions2 7#d7 taking steps toward accounting for and repatriating the citizens of other countries-- 7,a7 abducted or unlawfully held captive by the ,government of ,north ,korea2 or 7,b7 detained in violation of the #aiec ,armistice ,agreement2 7#e7 accepting and beginning to abide by internationally recognized standards for the distribution and monitoring of humanitarian aid2 and 7#f7 taking verified steps to improve living conditions in its political prison camps4 7b7 ,renewal of suspension ,the suspension described in subsection 7a7 may be renewed for additional1 consecutive #ahj-;day periods after the ,president certifies 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 under title ,i1 ,,ii1 or ,,iii 7or any amendment made by such titles7 shall terminate on the date on which the ,president determines and certifies to the appropriate congressional committees that the ,government of ,north ,korea has-- 7#a7 met the requirements set forth in section #dja2 and 7#b7 has made significant progress toward-- 7,a7 completely1 verifiably1 and irreversibly dismantling 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 releasing all political prisoners1 including the citizens of ,north ,korea detained in ,north ,korea's political prison camps2 and 7,c7 7i7 ceasing its censorship of peaceful political activity2 7ii7 establishing an open1 transparent1 and representative society2 and 7iii7 fully accounting for and repatriating ,united ,states citizens 7included deceased7-- 7,i7 abducted or unlawfully held captive by the ,government of ,north ,korea2 or 7,,ii7 detained in violation of the #aiec ,armistice ,agreement4 #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 7referred to in this section as the ,fund74 7b7 ,deposits ,the ,president shall deposit into the ,fund1 and shall transfer and consolidate on the books of the ,treasury in a special account for the purposes described in subsection 7c71 all revenues derived from-- 7#a7 fines and penalties assessed for violations of this ,act1 or any regulation established under this ,act1 or for any violation of an applicable ,executive order2 and 7#b7 except as provided in section #aje7;c71 all fines and penalties paid in lieu of the commencement of1 or paid in settlement of1 criminal or civil proceedings for a violation of this ,act or any regulation established under this ,act1 or for any violation of an applicable ,executive order4 7c7 ,uses ,there are authorized to be appropriated from the ,fund each fiscal year-- 7#a7 such amounts as may be specified in an ,act making appropriations for the administration of the ,fund2 and 7#b7 without regard to fiscal year limitation1 amounts not exceeding-- 7,a7 to carry out section #ajc of the ,north ,korea ,human ,rights ,act of #bjjd 7#bb ,u4,s4,c4 #ghac71 #c1jjj1jjj2 7,b7 to carry out section #ajd of the ,north ,korea ,human ,rights ,act of #bjjd 7#bb ,u4,s4,c4 #ghad71 #e1jjj1jjj2 7,c7 to carry out section #bjc of the ,north ,korea ,human ,rights ,act of #bjjd 7#bb ,u4,s4,c4 #ghcc71 #e1jjj1jjj2 and 7,d7 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 ,satisfaction of judgments 7#a7 ,in general ,the ,president may direct a transfer of funds from the ,fund established under this section to the ,united ,states district court in which any judgment has been entered against the ,government of ,north ,korea pursuant to section #afje;,a of title #bh1 ,united ,states ,code1 pursuant to section #ajhc7;c77#b7 of the ,national ,defense ,authorization ,act for ,fiscal ,year #bjjh 7#bh ,u4,s4,c4 #afje;,a note71 or pursuant to section #bja of the ,terrorism ,risk ,insurance ,act of #bjjb 7#bh ,u4,s4,c4 #afaj note71 such amounts as may be available after the obligation of amounts appropriated pursuant to the authorization of appropriations under subsection 7c71 for the satisfaction of such judgments4 7#b7 ,rule of construction on standing by judgment creditors ,nothing in this section1 any amendment made by section #aje1 or section #cjf shall be construed to create standing by any judgment creditor to contest or intervene in a forfeiture action under chapter #df of title #ah1 ,united ,states ,code4 7e7 ,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 a briefing to the appropriate congressional committees describing amounts available in the ,fund1 amounts obligated and expended for each purpose1 and any amounts transferred out of the ,fund4 7f7 ,transfer ,to prevent the accumulation of excessive surpluses in the ,fund1 in any fiscal year an amount specified in an annual appropriation law that is available after the obligation of amounts authorized to be appropriated in subsection 7c7 and authorized to be transferred in subsection 7d71 may be transferred out of the ,fund and deposited1 in equal proportions1 into the funds established under section #ebd7;c7 of title #bh1 ,united ,states ,code1 and section #igjc of title #ca1 ,united ,states ,code4 7g7 ,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 7f74 #djd4 ,rulemaking 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 in any amendment made by this ,act shall be construed to limit the authority of the ,president to designate or sanction persons pursuant to an applicable ,executive order 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 ,act1 and the amendments made by this ,act1 shall be in effect during the #c-year period beginning on the date of the enactment of this ,act4