#aaeth ,,congress #ast ,session ,h4 ,r4 #chih ,,an ,,act ,to impose secondary sanctions with respect to ,north ,korea1 strengthen international efforts to improve sanctions enforcement1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,otto ,warmbier ,north ,korea ,nuclear ,sanctions ,act4 #b4 ,findings ,the ,congress finds the following3 7#a7 ,on ,june #a1 #bjaf1 the ,department of the ,treasury's ,financial ,crimes ,enforcement ,network announced a ,notice of ,finding that the ,democratic ,people's ,republic of ,korea is a jurisdiction of primary money laundering concern due to its use of state-controlled financial institutions and front companies to support the proliferation and development of weapons of mass destruction 7,,wmd7 and ballistic missiles4 7#b7 ,the ,financial ,action ,task ,force 7,,fatf7 has expressed serious concerns with the threat posed by ,north ,korea's proliferation and financing of ,,wmd1 and has called on ,,fatf members to apply effective counter-measures to protect their financial sectors from ,north ,korean money laundering1 ,,wmd proliferation financing1 and the financing of terrorism4 7#c7 ,in its ,february #bjag report1 the ,u4,n4 ,panel of ,experts concluded that-- 7,a7 ,north ,korea continued to access the international financial system in support of illicit activities despite sanctions imposed by ,u4,n4 ,security ,council ,resolutions #bbgj 7#bjaf7 and #bcba 7#bjaf72 7,b7 during the reporting period1 no member state had reported taking actions to freeze ,north ,korean assets2 and 7,c7 sanctions evasion by ,north ,korea1 combined with inadequate compliance by member states1 had significantly negated the impact of ,u4,n4 ,security ,council resolutions4 7#d7 ,in its ,september #bjag report1 the ,u4,n4 ,panel of ,experts found that-- 7,a7 ,north ,korea continued to violate financial sanctions by using agents acting abroad on the country's behalf2 7,b7 foreign financial institutions provided correspondent banking services to ,north ,korean persons and front companies for illicit purposes2 7,c7 foreign companies violated sanctions by maintaining links with ,north ,korean financial institutions2 and 7,d7 ,north ,korea generated at least #bgj million during the reporting period through the violation of sectoral sanctions4 7#e7 ,north ,korean entities engage in significant financial transactions through foreign bank accounts that are maintained by non-,north ,korean nationals1 thereby masking account users' identity in order to access financial services4 7#f7 ,north ,korea's sixth nuclear test on ,september #c1 #bjag1 demonstrated an estimated explosive power more than #ajj times greater than that generated by its first nuclear test in #bjjf4 7#g7 ,north ,korea has successfully tested submarine-launched and intercontinental ballistic missiles1 and is rapidly progressing in its development of a nuclear-armed missile that is capable of reaching ,united ,states territory4 #c4 ,conditions with respect to certain accounts and transactions at ,united ,states financial institutions 7a7 ,correspondent and payable-,through accounts held by foreign financial institutions 7#a7 ,in general ,not later than #de days after the date of the enactment of this ,act1 the ,secretary of the ,treasury shall prescribe regulations to prohibit1 or impose strict conditions on1 the opening or maintaining in the ,united ,states of a correspondent account or a payable-through account by a foreign financial institution that the ,secretary finds knowingly facilitates a significant transaction or transactions or provides significant financial services for a covered person4 7#b7 ,penalties 7,a7 ,civil penalty ,a person who violates1 attempts to violate1 conspires to violate1 or causes a violation of regulations prescribed under this subsection shall be subject to a civil penalty in an amount not to exceed the greater of-- 7i7 #bej1jjj2 or 7ii7 an amount that is twice the amount of the transaction that is the basis of the violation with respect to which the penalty is imposed4 7,b7 ,criminal penalty ,a person who willfully commits1 willfully attempts to commit1 or willfully conspires to commit1 or aids or abets in the commission of1 a violation of regulations prescribed under this subsection shall1 upon conviction1 be fined not more than #a1jjj1jjj1 or if a natural person1 may be imprisoned for not more than #bj years1 or both4 7b7 ,restrictions on certain transactions by ,united ,states financial institutions 7#a7 ,in general ,not later than #de days after the date of the enactment of this ,act1 the ,secretary of the ,treasury shall prescribe regulations to prohibit a ,united ,states financial institution1 and any person owned or controlled by a ,united ,states financial institution1 from knowingly engaging in a significant transaction or transactions with or benefitting any person that the ,secretary finds to be a covered person4 7#b7 ,civil penalty ,a person who violates1 attempts to violate1 conspires to violate1 or causes a violation of regulations prescribed under this subsection shall be subject to a civil penalty in an amount not to exceed the greater of-- 7,a7 #bej1jjj2 or 7,b7 an amount that is twice the amount of the transaction that is the basis of the violation with respect to which the penalty is imposed4 #d4 ,opposition to assistance by the international financial institutions and the ,export-,import ,bank 7a7 ,international financial institutions ,the ,bretton ,woods ,agreements ,act 7#bb ,u4,s4,c4 #bhf et seq47 is amended by adding at the end the following3 #gc4 ,opposition to assistance for any government that fails to implement sanctions on ,north ,korea 7a7 ,in general ,the ,secretary of the ,treasury shall instruct the ,united ,states ,executive ,director at the international financial institutions 7as defined under section #agja7;c7 of the ,international ,financial ,institutions ,act7 to use the voice and vote of the ,united ,states to oppose the provision of financial assistance to a foreign government1 other than assistance to support basic human needs1 if the ,president determines that1 in the year preceding consideration of approval of such assistance1 the government has knowingly failed to prevent the provision of financial services to1 or freeze the funds1 financial assets1 and economic resources of1 a person described under subparagraphs 7,a7 through 7,e7 of section #g7b7 of the ,otto ,warmbier ,north ,korea ,nuclear ,sanctions ,act4 7b7 ,waiver ,the ,president may waive subsection 7a7 for up to #ahj days at a time with respect to a foreign government if the ,president reports to ,congress that-- 7#a7 the foreign government's failure described under 7a7 is due exclusively to a lack of foreign government capacity2 7#b7 the foreign government is taking effective steps to prevent recurrence of such failure2 or 7#c7 such waiver is vital to the national security interests of the ,united ,states4 4 7b7 ,export-,import ,bank ,section #b7;b7 of the ,export-,import ,bank ,act of #aide 7#ab ,u4,s4,c4 #fce7;b77 is amended by adding at the end the following3 7#ad7 ,prohibition on support involving persons connected with ,north ,korea ,the ,bank may not guarantee1 insure1 or extend credit1 or participate in the extension of credit in connection with the export of a good or service to a covered person 7as defined under section #g of the ,otto ,warmbier ,north ,korea ,nuclear ,sanctions ,act74 4 #e4 ,treasury reports on compliance1 penalties1 and technical assistance 7a7 ,quarterly report 7#a7 ,in general ,not later than #abj days following the date of the enactment of this ,act1 and every #ij days thereafter1 the ,secretary of the ,treasury shall submit a report to the ,committee on ,financial ,services of the ,house of ,representatives and the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate that includes-- 7,a7 a list of financial institutions that1 in the period since the preceding report1 knowingly facilitated a significant transaction or transactions or provided significant financial services for a covered person1 or failed to apply appropriate due diligence to prevent such activities2 7,b7 a list of any penalties imposed under section #c in the period since the preceding report2 and 7,c7 a description of efforts by the ,department of the ,treasury in the period since the preceding report1 through consultations1 technical assistance1 or other appropriate activities1 to strengthen the capacity of financial institutions and foreign governments to prevent the provision of financial services benefitting any covered person4 7#b7 ,form of report2 public availability 7,a7 ,form ,the report required under paragraph 7#a7 shall be submitted in unclassified form but may contain a classified annex4 7,b7 ,public availability ,the unclassified portion of such report shall be made available to the public and posted on the website of the ,department of the ,treasury4 7b7 ,testimony required ,upon request of the ,committee on ,financial ,services of the ,house of ,representatives or the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate1 the ,under ,secretary of the ,treasury for ,terrorism and ,financial ,intelligence shall testify to explain the effects of this ,act1 and the amendments made by this ,act1 on ,north ,korea's access to finance4 7c7 ,international ,monetary ,fund ,title ,,xvi of the ,international ,financial ,institutions ,act 7#bb ,u4,s4,c4 #bfbp et seq47 is amended by adding at the end the following3 #afbi4 ,support for capacity of the ,international ,monetary ,fund to prevent money laundering and financing of terrorism ,the ,secretary of the ,treasury shall instruct the ,united ,states ,executive ,director at the ,international ,monetary ,fund to support the use of the administrative budget of the ,fund for technical assistance that strengthens the capacity of ,fund members to prevent money laundering and the financing of terrorism4 4 7d7 ,national ,advisory ,council report to ,congress ,the ,chairman of the ,national ,advisory ,council on ,international ,monetary and ,financial ,policies shall include in the report required by section #agja of the ,international ,financial ,institutions ,act 7#bb ,u4,s4,c4 #bfbr7 for the fiscal year following the date of the enactment of this ,act a description of-- 7#a7 the activities of the ,international ,monetary ,fund in the most recently completed fiscal year to provide technical assistance that strengthens the capacity of ,fund members to prevent money laundering and the financing of terrorism1 and the effectiveness of the assistance2 and 7#b7 the efficacy of efforts by the ,united ,states to support such technical assistance through the use of the ,fund's administrative budget4 #f4 ,suspension and termination of prohibitions and penalties 7a7 ,suspension ,the ,president may suspend1 on a case-by-case basis1 the application of any provision of this ,act1 or provision in an amendment made by this ,act1 for a period of not more than #ahj days at a time if the ,president certifies to ,congress that-- 7#a7 the ,government of ,north ,korea has-- 7,a7 committed to the verifiable suspension of ,north ,korea's proliferation and testing of ,,wmd1 including systems designed in whole or in part for the delivery of such weapons2 and 7,b7 has agreed to multilateral talks including the ,government of the ,united ,states1 with the goal of permanently and verifiably limiting ,north ,korea's ,,wmd and ballistic missile programs2 or 7#b7 such suspension is vital to the national security interests of the ,united ,states1 with an explanation of the reasons therefor4 7b7 ,termination 7#a7 ,in general ,on the date that is #cj days after the date on which the ,president makes the certification described under paragraph 7#b7-- 7,a7 section #c1 subsections 7a7 and 7b7 of section #e1 and section #f7;a7 of this ,act shall cease to have any force or effect2 7,b7 section #gc of the ,bretton ,woods ,agreements ,act1 as added by section #d7;a71 shall be repealed2 and 7,c7 section #b7;b77#ad7 of the ,export-,import ,bank ,act of #aide1 as added by section #d7;b71 shall be repealed4 7#b7 ,certification ,the certification described under this paragraph is a certification by the ,president to the ,congress that-- 7,a7 the ,government of ,north ,korea-- 7i7 has ceased to pose a significant threat to national security1 with an explanation of the reasons therefor2 or 7ii7 is committed to1 and is taking effective steps to achieving1 the goal of permanently and verifiably limiting ,north ,korea's ,,wmd and ballistic missile programs2 or 7,b7 such termination is vital to the national security interests of the ,united ,states1 with an explanation of the reasons therefor4 #g4 ,definitions ,for purposes of this ,act3 7#a7 ,terms related to ,north ,korea ,the terms applicable ,executive order1 ,government of ,north ,korea1 ,north ,korea1 ,north ,korean person1 and significant activities undermining cybersecurity have the meanings given those terms1 respectively1 in section #c of the ,north ,korea ,sanctions and ,policy ,enhancement ,act of #bjaf 7#bb ,u4,s4,c4 #ibjb74 7#b7 ,covered person ,the term covered person means the following3 7,a7 ,any designated person under an applicable ,executive order4 7,b7 ,any ,north ,korean person that facilitates the transfer of bulk cash or covered goods 7as defined under section #ajbg4ajj of title #ca1 ,code of ,federal ,regulations74 7,c7 ,any ,north ,korean financial institution4 7,d7 ,any ,north ,korean person employed outside of ,north ,korea1 except that the ,secretary of the ,treasury may waive the application of this subparagraph for a ,north ,korean person that is not otherwise a covered person and-- 7i7 has been granted asylum or refugee status by the country of employment2 or 7ii7 is employed as essential diplomatic personnel for the ,government of ,north ,korea4 7,e7 ,any person acting on behalf of1 or at the direction of1 a person described under subparagraphs 7,a7 through 7,d74 7,f7 ,any person that knowingly employs a person described under subparagraph 7,d74 7,g7 ,any person that facilitates the import of goods1 services1 technology1 or natural resources1 including energy imports and minerals1 or their derivatives1 from ,north ,korea4 7,h7 ,any person that facilitates the export of goods1 services1 technology1 or natural resources1 including energy exports and minerals1 or their derivatives1 to ,north ,korea1 except for food1 medicine1 or medical supplies required for civilian humanitarian needs4 7,i7 ,any person that invests in1 or participates in a joint venture with1 an entity in which the ,government of ,north ,korea participates or an entity that is created or organized under ,north ,korean law4 7,j7 ,any person that provides financial services1 including through a subsidiary or joint venture1 in ,north ,korea4 7,k7 ,any person that insures1 registers1 facilitates the registration of1 or maintains insurance or a registration for1 a vessel owned1 controlled1 commanded1 or operated by a ,north ,korean person4 7,l7 ,any person providing specialized teaching1 training1 or information or providing material or technological support to a ,north ,korean person that-- 7i7 may contribute to ,north ,korea's development and proliferation of ,,wmd1 including systems designed in whole or in part for the delivery of such weapons2 or 7ii7 may contribute to significant activities undermining cybersecurity4 7#c7 ,financial institution definitions 7,a7 ,financial institution ,the term financial institution means a ,united ,states financial institution or a foreign financial institution4 7,b7 ,foreign financial institution ,the term foreign financial institution has the meaning given that term under section #ajaj4fje of title #ca1 ,code of ,federal ,regulations4 7,c7 ,north ,korean financial institution ,the term ,north ,korean financial institution includes-- 7i7 any ,north ,korean financial institution1 as defined in section #c of the ,north ,korea ,sanctions and ,policy ,enhancement ,act of #bjaf 7#bb ,u4,s4,c4 #ibjb72 7ii7 any financial agency1 as defined in section #ecab of title #ca1 ,united ,states ,code1 that is owned or controlled by the ,government of ,north ,korea2 7iii7 any money transmitting business1 as defined in section #eccj7;d7 of title #ca1 ,united ,states ,code1 that is owned or controlled by the ,government of ,north ,korea2 7iv7 any financial institution that is a joint venture between any person and the ,government of ,north ,korea2 and 7v7 any joint venture involving a ,north ,korean financial institution4 7,d7 ,united ,states financial institution ,the term ,united ,states financial institution has the meaning given the term ,u4,s4 financial institution under section #eaj4caj of title #ca1 ,code of ,federal ,regulations4 7#d7 ,knowingly ,the term knowingly with respect to conduct1 a circumstance1 or a result1 means that a person has actual knowledge1 or should have known1 of the conduct1 the circumstance1 or the result4 ,passed the ,house of ,representatives ,october #bd1 #bjag4;,clerk4