,i  #aafth ,,congress  #ast ,session    
,h4 ,r4 #djhd  ,,in ,,the ,,house ,,of  
,,representatives  ,july #bf1 #bjai,mr4 
,barr 7for himself and ,mr4 ,stivers7   
introduced the following bill2 which was
 referred to the ,committee on          
,financial ,services  ,a ,,bill  ,to    
impose sanctions with respect to the    
,democratic ,people's ,republic of      
,korea1 and for other purposes4  #a4    
,short title ,this ,act may be cited as 
the ,otto ,warmbier ,north ,korea       
,nuclear ,sanctions ,act of #bjai4  #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  
,on ,february #bc1 #bjah1 the           
,department of the ,treasury announced  
its largest-ever set of ,north          
,korea-related sanctions1 with a        
particular focus on shipping and trading
 companies1 and issued a maritime       
advisory to highlight ,north ,korea's   
sanctions evasion tactics4 ,on ,may #i1 
#bjai1 the ,united ,states seized a     
,north ,korean ship1 the ,wise ,honest1 
which had previously been detained by   
,indonesia for carrying coal in         
violation of ,united ,nations sanctions4
  7#h7 ,according to the ,march #bjai   
,final ,report of the ,u4,n4 ,panel of  
,experts1 ,the nuclear and ballistic    
missile programmes of the ,democratic   
,people's ,republic of ,korea remain    
intact and the country continues to defy
 ,security ,council resolutions through 
a massive increase in illegal           

ship-to-ship transfers of petroleum     
products and coal4 ,these violations    
render the latest ,united ,nations      
sanctions ineffective by flouting the   
caps on the import of petroleum products
 and crude oil by the ,democratic       
,people's ,republic of ,korea as well as
 the coal ban1 imposed in #bjag by the  
,security ,council in response to the   
country's unprecedented nuclear and     
ballistic missile testing44  7#i7 ,the  
,u4,n4 ,panel of ,experts further       
concluded3 ,financial sanctions remain  
some of the most poorly implemented and 
actively evaded measures of the         
sanctions regime4 ,individuals empowered
 to act as extensions of financial      
institutions of the ,democratic         
,people's ,republic of ,korea operate in
 at least five countries with seeming   
impunity44  7#aj7 ,north ,korea has     
successfully tested short-range1        
submarine-launched1 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 #ahj 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 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 #ahj 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 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 #h7b7 of the    
,otto ,warmbier ,north ,korea ,nuclear  
,sanctions ,act of #bjai4  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 #h of the ,otto   
,warmbier ,north ,korea ,nuclear        
,sanctions ,act of #bjai74  4  #e4      
,treasury reports on compliance1        
penalties1 and technical assistance  7a7

 ,semiannual report  7#a7 ,in general   
,not later than #abj days following the 
date of the enactment of this ,act1 and 
every #ahj 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 person2  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  7#c7     
,sunset ,the report requirement under   
this subsection shall terminate after   
the end of the #e-year period beginning 
on the date of enactment of this ,act4  
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 
illicit finance channels4  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 increased 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
 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 budget1 and  
the level of such support4  7e7 ,sunset 
,effective on the date that is the end  
of the #d-year period beginning on the  
date of enactment of this ,act1 section 
#afbi of the ,international ,financial  
,institutions ,act1 as added by         
subsection 7c71 is repealed4  #f4       
,suspension and termination of          
prohibitions and penalties  7a7         
,suspension ,except for any provision of
 section #g1 the ,president may suspend1
 on a case-by-case basis1 the           

application of any provision of this    
subtitle1 or provision in an amendment  
made by this subtitle1 with respect to  
an entity1 individual1 or transaction1  
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  
subsection 7a71 section #c1 and         
subsections 7a7 and 7b7 of section #e   
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 ,exception       
relating to importation of goods  7a7   
,in general ,the authorities and        
requirements to impose sanctions        
authorized under this subtitle shall not
 include the authority or requirement to
 impose sanctions on the importation of 
goods4  7b7 ,good defined ,in this      
section1 the term good means any        
article1 natural or man-made substance1 
material1 supply or manufactured        
product1 including inspection and test  
equipment1 and excluding technical data4
  #h4 ,definitions ,for purposes of this
 subtitle3 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 ,north ,korean     
person designated under an applicable   
,executive order4  7,b7 ,any ,north     
,korean person that knowingly           
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 knowingly  
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   
knowingly 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 knowingly 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 knowingly provides financial       
services1 including through a subsidiary
 or joint venture1 in ,north ,korea4    
7,k7 ,any person that knowingly 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
 knowingly 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