,,ii #aafth ,,congress #ast ,session ,s4 #ffg ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,march #e1 #bjai ,mr4 ,van ,hollen 7for himself and ,mr4 ,toomey7 introduced the following bill2 which was read twice and referred to the ,committee on ,banking1 ,housing1 and ,urban ,affairs ,a ,,bill ,to impose sanctions with respect to the ,democratic ,people's ,republic of ,korea1 and for other purposes4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,otto ,warmbier ,banking ,restrictions ,involving ,north ,korea ,act of #bjai4 7b7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4 ,,title ,i--,sanctions with respect to ,north ,korea ,sec4 #aja4 ,findings4 ,sec4 #ajb4 ,sense of ,congress4 ,sec4 #ajc4 ,definitions4 ,subtitle ,a--,expansion of sanctions and related matters ,sec4 #aaa4 ,sanctions with respect to foreign financial institutions that provide financial services to certain sanctioned persons4 ,sec4 #aab4 ,codification of ,executive orders relating to sanctions with respect to ,north ,korea4 ,sec4 #aac4 ,expansion of mandatory designations under ,north ,korea ,sanctions and ,policy ,enhancement ,act of #bjaf4 ,sec4 #aad4 ,extension of applicability period of proliferation prevention sanctions4 ,sec4 #aae4 ,sense of ,congress on identification and blocking of property of ,north ,korean officials4 ,sec4 #aaf4 ,modification of report on implementation of ,united ,nations ,security ,council resolutions by other governments4 ,sec4 #aag4 ,report on use by the ,government of ,north ,korea of beneficial ownership rules to access the international financial system4 ,subtitle ,b--,congressional review and oversight ,sec4 #aba4 ,notification of termination or suspension of sanctions4 ,sec4 #abb4 ,reports on certain licensing actions4 ,sec4 #abc4 ,briefings on implementation and enforcement of sanctions4 ,sec4 #abd4 ,report on financial networks and financial methods of the ,government of ,north ,korea4 ,sec4 #abe4 ,report on countries of concern with respect to transshipment1 reexportation1 or diversion of certain items to ,north ,korea4 ,subtitle ,c--,general matters ,sec4 #aca4 ,rulemaking4 ,sec4 #acb4 ,authority to consolidate reports4 ,sec4 #acc4 ,waivers1 exemptions1 and termination4 ,sec4 #acd4 ,procedures for review of classified information4 ,sec4 #ace4 ,briefing on proliferation financing4 ,,title ,,ii--,divestment from ,north ,korea ,sec4 #bja4 ,authority of ,state and local governments to divest from companies that invest in ,north ,korea4 ,sec4 #bjb4 ,safe harbor for changes of investment policies by asset managers4 ,sec4 #bjc4 ,sense of ,congress regarding certain ,,erisa plan investments4 ,sec4 #bjd4 ,rule of construction4 ,,title ,,iii--,financial industry guidance to halt trafficking ,sec4 #cja4 ,short title4 ,sec4 #cjb4 ,findings4 ,sec4 #cjc4 ,sense of ,congress4 ,sec4 #cjd4 ,coordination of human trafficking issues by the ,office of ,terrorism and ,financial ,intelligence4 ,sec4 #cje4 ,strengthening the role of anti-money laundering and other financial tools in combating human trafficking4 ,sec4 #cjf4 ,sense of ,congress on resources to combat human trafficking4 ,i ,sanctions with respect to ,north ,korea #aja4 ,findings ,congress finds the following3 7#a7 ,since #bjjf1 the ,united ,nations ,security ,council has adopted #aj resolutions imposing sanctions against ,north ,korea under chapter ,,vii of the ,united ,nations ,charter1 which-- 7,a7 prohibit the use1 development1 and proliferation of weapons of mass destruction by ,north ,korea2 7,b7 prohibit the supply1 sale1 or transfer of arms and related materiel to or from ,north ,korea2 7,c7 prohibit the transfer of luxury goods to ,north ,korea2 7,d7 restrict access by ,north ,korea to financial services that could contribute to nuclear1 missile1 or other programs related to the development of weapons of mass destruction2 7,e7 restrict ,north ,korean shipping1 including the registration1 reflagging1 or insuring of ,north ,korean ships2 7,f7 prohibit1 with limited exceptions1 ,north ,korean exports of coal1 precious metals1 iron1 vanadium1 and rare earth minerals2 7,g7 prohibit the transfer to ,north ,korea of rocket1 aviation1 or jet fuel1 as well as gasoline1 condensates1 and natural gas liquids2 7,h7 prohibit new work authorization for ,north ,korean laborers and require the repatriation of all ,north ,korean laborers by ,december #bjai2 7,i7 prohibit exports of ,north ,korean food and agricultural products1 including seafood2 7,j7 prohibit joint ventures or cooperative commercial entities or expanding joint ventures with ,north ,korea2 7,k7 prohibit exports of ,north ,korean textiles2 7,l7 require member countries of the ,united ,nations to seize1 inspect1 and impound any ship in its jurisdiction that is suspected of violating ,security ,council resolutions with respect to ,north ,korea and to interdict and inspect all cargo heading to or from ,north ,korea by land1 sea1 or air2 7,m7 limit the transfer to ,north ,korea of refined petroleum products and crude oil2 7,n7 ban the sale or transfer to ,north ,korea of industrial machinery1 transportation vehicles1 electronics1 iron1 steel1 and other metals2 7,o7 reduce ,north ,korean diplomatic staff numbers in member countries of the ,united ,nations and expel any ,north ,korean diplomats found to be working on behalf of a person subject to sanctions or assisting in sanctions evasion2 7,p7 limit ,north ,korean diplomatic missions abroad with respect to staff size and access to banking privileges and prohibit commerce from being conducted out of ,north ,korean consular or diplomatic offices2 7,q7 require member states of the ,united ,nations to close representative offices1 subsidiaries1 and bank accounts in ,north ,korea2 7,r7 prohibit countries from providing or receiving military training to or from ,north ,korea or hosting ,north ,koreans for specialized teaching or training that could contribute to the programs of ,north ,korea related to the development of weapons of mass destruction2 7,s7 ban countries from granting landing and flyover rights to ,north ,korean aircraft2 and 7,t7 prohibit trade in statuary of ,north ,korean origin4 7#b7 ,the ,government of ,north ,korea has threatened to carry out nuclear attacks against the ,united ,states1 ,south ,korea1 and ,japan4 7#c7 ,the ,government of ,north ,korea tested its sixth and largest nuclear device on ,september #c1 #bjag4 7#d7 ,according to a report by the ,international ,atomic ,energy ,agency released in ,august #bjah1 ,the continuation and further development of the ,,dprk's nuclear programme and related statements by the ,,dprk are a cause for grave concern4 ,the ,,dprk's nuclear activities1 including those in relation to the ,yongbyon ,experimental ,nuclear ,power ,plant 7#e ,,mw7e77 reactor1 the use of the building which houses the reported centrifuge enrichment facility and the construction at the light water reactor1 as well as the ,,dprk's sixth nuclear test1 are clear violations of relevant ,,un ,security ,council resolutions1 including resolution #bcge 7#bjag7 and are deeply regrettable44 7#e7 ,in ,july #bjah1 ,secretary of ,state ,mike ,pompeo testified to the ,committee on ,foreign ,relations of the ,senate that ,north ,korea continues to produce fissile material despite public pledges by ,north ,korean leader ,kim ,jong-un to denuclearize4 7#f7 ,the #bjai ,missile ,defense ,review conducted by the ,department of ,defense states that ,north ,korea continues to pose an extraordinary threat and the ,united ,states must remain vigilant4 ,in the past1 ,north ,korea frequently issued explicit nuclear missile threats against the ,united ,states and allies1 all the while working aggressively to field the capability to strike the ,u4,s4 homeland with nuclear-armed ballistic missiles4 ,over the past decade1 it has invested considerable resources in its nuclear and ballistic missile programs1 and undertaken extensive nuclear and missile testing in order to realize the capability to threaten the ,u4,s4 homeland with missile attack4 ,as a result1 ,north ,korea has neared the time when it could credibly do so44 7#g7 ,financial transactions and investments that provide financial resources to the ,government of ,north ,korea1 and that fail to incorporate adequate safeguards against the misuse of those financial resources1 pose an undue risk of contributing to-- 7,a7 weapons of mass destruction programs of that ,government2 and 7,b7 efforts to evade restrictions required by the ,united ,nations ,security ,council on imports or exports of arms and related materiel1 services1 or technology by that ,government4 7#h7 ,the ,federal ,bureau of ,investigation has determined that the ,government of ,north ,korea was responsible for cyberattacks against entities in the ,united ,states1 ,south ,korea1 and around the world4 7#i7 ,in ,november #bjag1 ,president ,donald ,trump designated the government of ,north ,korea as a state sponsor of terrorism pursuant to authorities under the ,export ,administration ,act of #aigi 7#ej ,u4,s4,c4 ,app4 #bdja et seq471 as continued in effect at the time under the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agja et seq471 the ,foreign ,assistance ,act of #aifa 7#bb ,u4,s4,c4 #baea et seq471 and the ,arms ,export ,control ,act 7#bb ,u4,s4,c4 #bgea et seq472 7#aj7 ,on ,february #bb1 #bjah1 the ,secretary of ,state determined that the ,government of ,north ,korea was responsible for the lethal nerve agent attack in #bjag on ,kim ,jong ,nam1 the half-brother of ,north ,korean leader ,kim ,jong-un1 in ,malaysia1 triggering sanctions required under the ,chemical and ,biological ,weapons ,control and ,warfare ,elimination ,act of #aiia 7#bb ,u4,s4,c4 #efja et seq474 7#aa7 ,the strict enforcement of sanctions is essential to the efforts of the international community to achieve the peaceful1 complete1 verifiable1 and irreversible dismantlement of weapons of mass destruction programs of the ,government of ,north ,korea4 #ajb4 ,sense of ,congress ,it is the sense of ,congress that-- 7#a7 the ,united ,states is committed to working with its allies and partners to halt the nuclear and ballistic missile programs of ,north ,korea through a policy of maximum pressure and diplomatic engagement2 7#b7 the imposition of sanctions1 including those under this ,act1 should not be construed to limit the authority of the ,president to fully engage in diplomatic negotiations to further the policy objective described in paragraph 7#a72 7#c7 the successful use of sanctions to halt the nuclear and ballistic missile programs of ,north ,korea is part of a broader diplomatic and economic strategy that relies on effective coordination among relevant ,federal agencies and officials1 as well as with international partners of the ,united ,states2 and 7#d7 the coordination described in paragraph 7#c7 should include proper vetting of external messaging and communications from all parts of the ,executive branch to ensure that those communications are an intentional component of and aligned with the strategy of the ,united ,states with respect to ,north ,korea4 #ajc4 ,definitions 7a7 ,in general ,in this title1 the terms applicable ,executive order1 applicable ,united ,nations ,security ,council resolution1 appropriate congressional committees1 ,government of ,north ,korea1 ,north ,korea1 and ,north ,korean financial institution have the meanings given those terms in section #c of the ,north ,korea ,sanctions and ,policy ,enhancement ,act of #bjaf 7#bb ,u4,s4,c4 #ibjb71 as amended by subsection 7b74 7b7 ,amendments to definitions in ,north ,korea ,sanctions and ,policy ,enhancement ,act of #bjaf ,section #c of the ,north ,korea ,sanctions and ,policy ,enhancement ,act of #bjaf 7#bb ,u4,s4,c4 #ibjb7 is amended-- 7#a7 in paragraph 7#a77;,a71 in the matter preceding clause 7i71 by striking ,executive ,order ,no4 #acfid and all that follows through to the extent that and inserting the following3 ,executive ,order #acfid 7#ej ,u4,s4,c4 #agja note2 relating to blocking the property of certain persons engaging in significant malicious cyber-enabled activities71 ,executive ,order #acgbb 7#ej ,u4,s4,c4 #agja note2 relating to blocking the property of the ,government of ,north ,korea and the ,workers' ,party of ,korea1 and prohibiting certain transactions with respect to ,north ,korea71 or ,executive ,order #achaj 7#hb ,fed4 ,reg4 #ddgje2 relating to imposing additional sanctions with respect to ,north ,korea71 to the extent that2 and 7#b7 in paragraph 7#b77;,a71 by striking or #bcba 7#bjaf7 and inserting #bcba 7#bjaf71 #bcef 7#bjag71 #bcga 7#bjag71 #bcge 7#bjag71 or #bcig 7#bjag74 ,a ,expansion of sanctions and related matters #aaa4 ,sanctions with respect to foreign financial institutions that provide financial services to certain sanctioned persons 7a7 ,in general ,title ,,ii of the ,north ,korea ,sanctions and ,policy ,enhancement ,act of #bjaf 7#bb ,u4,s4,c4 #ibba et seq47 is amended by inserting after the item relating to section #bja;,a the following3 #bja;,b4 ,sanctions with respect to foreign financial institutions that provide financial services to certain sanctioned persons 7a7 ,in general ,the ,secretary of the ,treasury shall impose one or more of the sanctions described in subsection 7b7 with respect to a foreign financial institution that the ,secretary determines1 on or after the date that is #ij days after the date of the enactment of the ,otto ,warmbier ,banking ,restrictions ,involving ,north ,korea ,act of #bjai1 knowingly provides significant financial services to any person designated for the imposition of sanctions under-- 7#a7 subsection 7a7 or 7b7 of section #ajd2 7#b7 an applicable ,executive order2 or 7#c7 an applicable ,united ,nations ,security ,council resolution4 7b7 ,sanctions described ,the sanctions that may be imposed with respect to a foreign financial institution subject to subsection 7a7 are the following3 7#a7 ,asset blocking ,the ,secretary may block and prohibit1 pursuant to the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agja et seq471 all transactions in all property and interests in property of the foreign financial institution 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 7#b7 ,restrictions on correspondent and payable-through accounts ,the ,secretary may prohibit1 or impose strict conditions on1 the opening or maintaining in the ,united ,states of a correspondent account or a payable-through account by the foreign financial institution4 7c7 ,implementation2 penalties 7#a7 ,implementation ,the ,president may exercise all authorities provided under sections #bjc and #bje of the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agjb and #agjd7 to carry out this section4 7#b7 ,penalties ,a person that violates1 attempts to violate1 conspires to violate1 or causes a violation of this section or any regulation1 license1 or order issued to carry out this section shall be subject to the penalties set forth in subsections 7b7 and 7c7 of section #bjf of the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agje7 to the same extent as a person that commits an unlawful act described in subsection 7a7 of that section4 7d7 ,regulations ,not later than #abj days after the date of the enactment of the ,otto ,warmbier ,banking ,restrictions ,involving ,north ,korea ,act of #bjai1 the ,president shall1 as appropriate1 prescribe regulations to carry out this section4 7e7 ,definitions ,in this section3 7#a7 ,account2 correspondent account2 payable-through account ,the terms account1 correspondent account1 and payable-through account have the meanings given those terms in section #ecah;,a of title #ca1 ,united ,states ,code4 7#b7 ,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#c7 ,foreign financial institution ,the term foreign financial institution shall have the meaning of that term as determined by the ,secretary of the ,treasury4 7#d7 ,knowingly ,the term knowingly1 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 4 7b7 ,clerical amendment ,the table of contents for the ,north ,korea ,sanctions and ,policy ,enhancement ,act of #bjaf is amended by inserting after the item relating to section #bja;,a the following3 #bja;,b4 ,sanctions with respect to foreign financial institutions that provide financial services to certain sanctioned persons4 4 #aab4 ,codification of ,executive orders relating to sanctions with respect to ,north ,korea 7a7 ,in general ,section #baj of the ,north ,korea ,sanctions and ,policy ,enhancement ,act of #bjaf 7#bb ,u4,s4,c4 #ibcj7 is amended-- 7#a7 by striking ,united ,states sanctions and all that follows through the date of the enactment of this ,act and inserting ,united ,states sanctions provided for in ,executive ,order #acfhg 7#ej ,u4,s4,c4 #agja note2 relating to imposing additional sanctions with respect to ,north ,korea71 ,executive ,order #acfid 7#ej ,u4,s4,c4 #agja note2 relating to blocking the property of certain persons engaging in significant malicious cyber-enabled activities71 ,executive ,order #acgbb 7#ej ,u4,s4,c4 #agja note2 relating to blocking the property of the ,government of ,north ,korea and the ,workers' ,party of ,korea1 and prohibiting certain transactions with respect to ,north ,korea71 or ,executive ,order #achaj 7#hb ,fed4 ,reg4 #ddgje2 relating to imposing additional sanctions with respect to ,north ,korea71 as such ,executive ,orders are in effect on the day before the date of the enactment of the ,otto ,warmbier ,banking ,restrictions ,involving ,north ,korea ,act of #bjai2 7#b7 by striking the ,government of ,north ,korea1 persons acting for or on behalf of that ,government1 and persons owned or controlled1 directly or indirectly1 by that ,government or persons acting for or on behalf of that ,government1 and inserting persons subject to such sanctions2 and 7#c7 by striking and #bjid 7#bjac7 and inserting #bjid 7#bjac71 #bbgj 7#bjaf71 #bcba 7#bjaf71 #bcef 7#bjag71 #bcga 7#bjag71 #bcge 7#bjag71 and #bcig 7#bjag74 7b7 ,conforming amendment ,section #baj of the ,north ,korea ,sanctions and ,policy ,enhancement ,act of #bjaf 7#bb ,u4,s4,c4 #ibcj7 is amended in the section heading by striking sanctions with respect to ,north ,korean activities undermining cybersecurity and inserting ,executive orders relating to sanctions with respect to ,north ,korea4 7c7 ,clerical amendment ,the table of contents for the ,north ,korea ,sanctions and ,policy ,enhancement ,act of #bjaf is amended by striking the item relating to section #baj and inserting the following3 ,sec4 #baj4 ,codification of ,executive orders relating to sanctions with respect to ,north ,korea4 4 #aac4 ,expansion of mandatory designations under ,north ,korea ,sanctions and ,policy ,enhancement ,act of #bjaf 7a7 ,in general ,section #ajd7;a7 of the ,north ,korea ,sanctions and ,policy ,enhancement ,act of #bjaf 7#bb ,u4,s4,c4 #ibad7;a77 is amended-- 7#a7 in paragraph 7#ad71 by striking or at the end2 7#b7 by redesignating paragraph 7#ae7 as paragraph 7#bd72 7#c7 by inserting after paragraph 7#ad7 the following3 7#ae7 knowingly1 directly or indirectly1 purchases or otherwise acquires from ,north ,korea significant quantities of coal1 iron1 or iron ore2 7#af7 knowingly1 directly or indirectly1 provides to ,north ,korea coal1 iron1 or iron ore2 7#ag7 knowingly1 directly or indirectly1 purchases or otherwise acquires textiles from ,north ,korea2 7#ah7 knowingly facilitates a significant transfer of funds or property from ,north ,korea that materially contributes to any violation of an applicable ,united ,nations ,security ,council resolution2 7#ai7 knowingly1 directly or indirectly1 purchases or otherwise acquires significant types or amounts of seafood from ,north ,korea2 7#bj7 knowingly1 directly or indirectly1 engages in1 facilitates1 or is responsible for the exportation of workers from ,north ,korea2 7#ba7 knowingly1 directly or indirectly1 sells or transfers vessels to ,north ,korea1 except as specifically approved by the ,united ,nations ,security ,council2 7#bb7 knowingly1 directly or indirectly1 supplies1 sells1 or transfers to ,north ,korea crude oil or refined petroleum products in excess of the aggregate amounts established in applicable ,united ,nations ,security ,council resolutions2 7#bc7 knowingly contributes to-- 7,a7 the bribery of an official of the ,government of ,north ,korea or any person acting for or on behalf of that official2 7,b7 the misappropriation1 theft1 or embezzlement of public funds by1 or for the benefit of1 an official of the ,government of ,north ,korea or any person acting for or on behalf of that official2 or 7,c7 the use of any proceeds of any activity described in subparagraph 7,a7 or 7,b72 or 2 and 7#d7 in paragraph 7#bd71 as redesignated by paragraph 7#b71 by striking through 7#ad7 and inserting through 7#bc74 7b7 ,conforming amendments ,the ,north ,korea ,sanctions and ,policy ,enhancement ,act of #bjaf is amended-- 7#a7 in section #ajd7;b77#a7 7#bb ,u4,s4,c4 #ibad7;b77#a77-- 7,a7 by striking subparagraphs 7,b71 7,d71 7,e71 7,f71 and 7,l72 and 7,b7 by redesignating subparagraphs 7,c71 7,g71 7,h71 7,i71 7,j71 7,k71 7,m71 and 7,n7 as subparagraphs 7,b71 7,c71 7,d71 7,e71 7,f71 7,g71 7,h71 and 7,i71 respectively2 and 7#b7 in section #cjb7;b77#c7 7#bb ,u4,s4,c4 #ibda7;b77#c771 by striking section #ajd7;b77#a77,m7 and inserting section #ajd7;a77#bj74 #aad4 ,extension of applicability period of proliferation prevention sanctions ,section #bjc7;b77#b7 of the ,north ,korea ,sanctions and ,policy ,enhancement ,act of #bjaf 7#bb ,u4,s4,c4 #ibbc7;b77#b77 is amended by striking #b years and inserting #e years4 #aae4 ,sense of ,congress on identification and blocking of property of ,north ,korean officials ,it is the sense of ,congress that the ,president should-- 7#a7 encourage international collaboration through the ,financial ,action ,task ,force and its network of ,financial ,action ,task ,force-style regional bodies to apply best practices in disrupting money laundering related to kleptocracy and corruption1 especially as it relates to ,north ,korea2 and 7#b7 prioritize multilateral efforts to identify and block-- 7,a7 any property owned or controlled by a ,north ,korean official2 and 7,b7 any significant proceeds of kleptocracy by the ,government of ,north ,korea or a ,north ,korean official4 #aaf4 ,modification of report on implementation of ,united ,nations ,security ,council resolutions by other governments ,section #cag of the ,korean ,interdiction and ,modernization of ,sanctions ,act 7title ,,iii of ,public ,law #aae-dd2 #aca ,stat4 #iej7 is amended-- 7#a7 in subsection 7a7-- 7,a7 in the matter preceding paragraph 7#a71 by striking ,not later than #ahj days after the date of the enactment of this ,act1 and annually thereafter for #e years1 and inserting ,not later than #ahj days after the date of the enactment of the ,otto ,warmbier ,banking ,restrictions ,involving ,north ,korea ,act of #bjai1 and annually thereafter for #e years12 7,b7 in paragraph 7#c71 by striking 2 or and inserting a semicolon2 7,c7 by redesignating paragraph 7#d7 as paragraph 7#h72 and 7,d7 by inserting after paragraph 7#c7 the following3 7#d7 prohibit1 in the territories of such countries or by persons subject to the jurisdiction of such governments1 the opening of new joint ventures or cooperative entities with ,north ,korean persons or the expansion of existing joint ventures through additional investments1 whether or not for or on behalf of the ,government of ,north ,korea1 unless such joint ventures or cooperative entities have been approved by the ,committee of the ,united ,nations ,security ,council established by ,united ,nations ,security ,council ,resolution #agah 7#bjjf72 7#e7 prohibit the unauthorized clearing of funds by ,north ,korean financial institutions through financial institutions subject to the jurisdiction of such governments2 7#f7 prohibit the unauthorized conduct of commercial trade with ,north ,korea that is prohibited under applicable ,united ,nations ,security ,council resolutions2 7#g7 prevent the provision of financial services to ,north ,korean persons or the transfer of financial services to ,north ,korean persons to1 through1 or from the territories of such countries or by persons subject to the jurisdiction of such governments2 or 2 and 7#b7 by amending subsection 7c7 to read as follows3 7c7 ,definitions ,in this section3 7#a7 ,appropriate congressional committees and leadership ,the term appropriate congressional committees and leadership means-- 7,a7 the ,committee on ,foreign ,relations1 the ,committee on ,banking1 ,housing1 and ,urban ,affairs1 and the majority and minority leaders of the ,senate2 and 7,b7 the ,committee on ,foreign ,affairs1 the ,committee on ,financial ,services1 the ,committee on ,ways and ,means1 and the ,speaker1 the majority leader1 and the minority leader of the ,house of ,representatives4 7#b7 ,applicable ,united ,nations ,security ,council resolution2 ,north ,korean financial institution2 ,north ,korean person ,the terms applicable ,united ,nations ,security ,council resolution1 ,north ,korean financial institution1 and ,north ,korean person have the meanings given those terms in section #c of the ,north ,korea ,sanctions and ,policy ,enhancement ,act of #bjaf 7#bb ,u4,s4,c4 #ibjb74 4 #aag4 ,report on use by the ,government of ,north ,korea of beneficial ownership rules to access the international financial system 7a7 ,in general ,not later than #ahj days after the date of the enactment of this ,act1 the ,secretary of the ,treasury shall submit to the appropriate congressional committees a report setting forth the findings of the ,secretary regarding how the ,government of ,north ,korea is exploiting laws with respect to the beneficial owner of an entity in order to access the international financial system4 7b7 ,elements ,the ,secretary shall include in the report required under subsection 7a7 proposals for such legislative and administrative action as the ,secretary considers appropriate to combat the abuse by the ,government of ,north ,korea of shell companies and other similar entities to avoid or evade sanctions4 7c7 ,form ,the report required by subsection 7a7 shall be submitted in unclassified form but may include a classified annex4 7d7 ,beneficial owner defined 7#a7 ,in general ,in this section1 the term beneficial owner-- 7,a7 means1 with respect to an entity1 each natural person who1 directly or indirectly-- 7i7 exercises control over the entity through ownership interests1 voting rights1 agreements1 or otherwise2 or 7ii7 has an interest in or receives substantial economic benefits from the assets of the entity2 and 7,b7 does not include1 with respect to an entity-- 7i7 a minor child2 7ii7 a person acting as a nominee1 intermediary1 custodian1 or agent on behalf of another person2 7iii7 a person acting solely as an employee of the entity and whose control over or economic benefits from the entity derives solely from the employment status of the person2 7iv7 a person whose only interest in the entity is through a right of inheritance1 unless the person otherwise meets the definition of a beneficial owner under this subsection2 and 7v7 a creditor of the entity1 unless the creditor otherwise meets the definition of a beneficial owner under this subsection4 7#b7 ,anti-abuse rule ,the exceptions under paragraph 7#a77;,b7 shall not apply if used for the purpose of evading1 circumventing1 or abusing laws described in subsection 7a74 ,b ,congressional review and oversight #aba4 ,notification of termination or suspension of sanctions ,not less than #ae days before taking any action to terminate or suspend the application of sanctions under this title or an amendment made by this title1 the ,president shall notify the appropriate congressional committees of the ,president's intent to take the action and the reasons for the action4 #abb4 ,reports on certain licensing actions 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 submit to the appropriate congressional committees a report on the operation of the system for issuing licenses for transactions under covered regulatory provisions during the preceding #ahj-;day period that includes-- 7#a7 the number and types of such licenses applied for during that period2 7#b7 the number and types of such licenses issued during that period2 and 7#c7 a summary of all general and specific licenses issued with respect to ,north ,korea4 7b7 ,covered regulatory provision defined ,in this section1 the term covered regulatory provision means any of the following provisions1 as in effect on the day before the date of the enactment of this ,act and as such provisions relate to ,north ,korea3 7#a7 ,part #gdc1 #gdd1 or #gdf of title #ae1 ,code of ,federal ,regulations4 7#b7 ,part #eaj of title #ca1 ,code of ,federal ,regulations4 7#c7 ,any other provision of title #ca1 ,code of ,federal ,regulations4 7c7 ,form ,each report required by subsection 7a7 shall be submitted in unclassified form but may include a classified annex4 #abc4 ,briefings on implementation and enforcement of sanctions ,not later than #ij days after the date of the enactment of this ,act1 and every #ahj days thereafter1 the ,secretary of the ,treasury shall provide to the appropriate congressional committees a briefing on efforts relating to the implementation and enforcement of ,united ,states sanctions with respect to ,north ,korea1 including appropriate updates on the efforts of the ,department of the ,treasury to address compliance with such sanctions by foreign financial institutions4 #abd4 ,report on financial networks and financial methods of the ,government of ,north ,korea 7a7 ,report required 7#a7 ,in general ,not later than #ahj days after the date of the enactment of this ,act1 and annually thereafter through #bjbe1 the ,president shall submit to the appropriate congressional committees a report on sources of external support for the ,government of ,north ,korea that includes-- 7,a7 a description of the methods used by the ,government of ,north ,korea to deal in1 transact in1 or conceal the ownership1 control1 or origin of goods and services exported by ,north ,korea2 7,b7 an assessment of the relationship between the proliferation of weapons of mass destruction by the ,government of ,north ,korea and the financial industry or financial institutions2 7,c7 an assessment of the relationship between the acquisition by the ,government of ,north ,korea of military expertise1 equipment1 and technology and the financial industry or financial institutions2 7,d7 a description of the export by any person to the ,united ,states of goods1 services1 or technology that are made with significant amounts of ,north ,korean labor1 material1 or goods1 including minerals1 manufacturing1 seafood1 overseas labor1 or other exports from ,north ,korea2 7,e7 an assessment of the involvement of any person in human trafficking involving citizens or nationals of ,north ,korea2 7,f7 a description of how the ,president plans to address the flow of funds generated by activities described in subparagraphs 7,a7 through 7,e71 including through the use of sanctions or other means2 7,g7 an assessment of the extent to which the ,government of ,north ,korea engages in criminal activities1 including money laundering1 to support that ,government2 7,h7 information relating to the identification1 blocking1 and release of property described in section #bja;,b7b77#a7 of the ,north ,korea ,sanctions and ,policy ,enhancement ,act of #bjaf1 as added by section #aaa2 7,i7 a description of the metrics used to measure the effectiveness of law enforcement and diplomatic initiatives of ,federal1 ,state1 and foreign governments to comply with the provisions of applicable ,united ,nations ,security ,council resolutions2 and 7,j7 an assessment of the effectiveness of programs within the financial industry to ensure compliance with ,united ,states sanctions1 applicable ,united ,nations ,security ,council resolutions1 and applicable ,executive orders4 7#b7 ,form ,each report required by paragraph 7#a7 shall be submitted in unclassified form but may include a classified annex4 7b7 ,interagency coordination ,the ,president shall ensure that any information collected pursuant to subsection 7a7 is shared among the ,federal departments and agencies involved in investigations described in section #ajb7;b7 of the ,north ,korea ,sanctions and ,policy ,enhancement ,act of #bjaf 7#bb ,u4,s4,c4 #ibab7;b774 #abe4 ,report on countries of concern with respect to transshipment1 reexportation1 or diversion of certain items to ,north ,korea 7a7 ,in general ,not later than #ahj days after the date of the enactment of this ,act1 and annually thereafter through #bjbc1 the ,director of ,national ,intelligence shall submit to the ,president1 the ,secretary of ,defense1 the ,secretary of ,commerce1 the ,secretary of ,state1 the ,secretary of the ,treasury1 and the appropriate congressional committees a report that identifies all countries that the ,director determines are of concern with respect to transshipment1 reexportation1 or diversion of items subject to the provisions of the ,export ,administration ,regulations under subchapter ,c of chapter ,,vii of title #ae1 ,code of ,federal ,regulations1 to an entity owned or controlled by the ,government of ,north ,korea4 7b7 ,form ,each report required by subsection 7a7 shall be submitted in unclassified form but may include a classified annex4 ,c ,general matters #aca4 ,rulemaking ,the ,president shall prescribe such rules and regulations as may be necessary to carry out this title and amendments made by this title4 #acb4 ,authority to consolidate reports 7a7 ,in general ,any and all reports required to be submitted to the appropriate congressional committees under this title or an amendment made by this title that are subject to a deadline for submission consisting of the same unit of time may be consolidated into a single report that is submitted pursuant to that deadline4 7b7 ,contents ,any reports consolidated under subsection 7a7 shall contain all information required under this title or an amendment made by this title and any other elements that may be required by existing law4 #acc4 ,waivers1 exemptions1 and termination 7a7 ,application and modification of exemptions and waivers from ,north ,korea ,sanctions and ,policy ,enhancement ,act of #bjaf ,section #bjh of the ,north ,korea ,sanctions and ,policy ,enhancement ,act of #bjaf 7#bb ,u4,s4,c4 #ibbh7 is amended-- 7#a7 by inserting #bja;,b1 after #bja;,a1 each place it appears2 and 7#b7 in subsection 7c71 by inserting 1 not less than #ae days before the waiver takes effect1 after if the ,president4 7b7 ,exception relating to importation of goods 7#a7 ,in general ,no provision affecting sanctions under this title or an amendment made by this title shall apply to sanctions on the importation of goods4 7#b7 ,good defined ,in this subsection1 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 7c7 ,suspension 7#a7 ,in general ,subject to section #aba1 any requirement to impose sanctions under this title or the amendments made by this title1 and any sanctions imposed pursuant to this title or any such amendment1 may be suspended for up to one year if the ,president makes the certification described in section #dja of the ,north ,korea ,sanctions and ,policy ,enhancement ,act of #bjaf 7#bb ,u4,s4,c4 #ibea7 to the appropriate congressional committees4 7#b7 ,renewal ,a suspension under paragraph 7#a7 may be renewed in accordance with section #dja7;b7 of the ,north ,korea ,sanctions and ,policy ,enhancement ,act of #bjaf 7#bb ,u4,s4,c4 #ibea7;b774 7d7 ,termination ,subject to section #aba1 any requirement to impose sanctions under this title or the amendments made by this title1 and any sanctions imposed pursuant to this title or any such amendment1 shall terminate on the date on which the ,president makes the certification described in section #djb of the ,north ,korea ,sanctions and ,policy ,enhancement ,act of #bjaf 7#bb ,u4,s4,c4 #ibeb74 #acd4 ,procedures for review of classified information 7a7 ,in general ,if a finding under this title or an amendment made by this title1 a prohibition1 condition1 or penalty imposed as a result of any such finding1 or a penalty imposed under this title or an amendment made by this title1 is based on classified information 7as defined in section #a7;a7 of the ,classified ,information ,procedures ,act 7#ah ,u4,s4,c4 ,app477 and a court reviews the finding or the imposition of the prohibition1 condition1 or penalty1 the ,secretary of the ,treasury may submit such information to the court ex parte and in camera4 7b7 ,rule of construction ,nothing in this section shall be construed to confer or imply any right to judicial review of any finding under this title or an amendment made by this title1 any prohibition1 condition1 or penalty imposed as a result of any such finding1 or any penalty imposed under this title or an amendment made by this title4 #ace4 ,briefing on proliferation financing 7a7 ,in general ,not later than #fj days after the date of the enactment of this ,act1 the ,secretary of the ,treasury shall provide to the appropriate congressional committees a briefing on addressing proliferation finance4 7b7 ,elements ,the briefing required by subsection 7a7 shall include the following3 7#a7 ,the ,department of the ,treasury's definition and description of an appropriate risk-based approach to combating financing of the proliferation of weapons of mass destruction4 7#b7 ,an assessment of-- 7,a7 ,federal financial regulatory agency oversight1 including by the ,financial ,crimes ,enforcement ,network1 of ,united ,states financial institutions and the adoption by their foreign subsidiaries1 branches1 and correspondent institutions of a risk-based approach to proliferation financing2 and 7,b7 whether financial institutions in foreign jurisdictions known by the ,united ,states intelligence and law enforcement communities to be jurisdictions through which ,north ,korea moves substantial sums of licit and illicit finance are applying a risk-based approach to proliferation financing1 and if that approach is comparable to the approach required by ,united ,states financial institution supervisors4 7#c7 ,a survey of the technical assistance the ,office of ,technical ,assistance of the ,department of the ,treasury1 and other appropriate ,executive branch offices1 currently provide foreign institutions on implementing counter-proliferation financing best practices4 7#d7 ,an assessment of the ability of foreign subsidiaries1 branches1 and correspondent institutions of ,united ,states financial institutions to implement a risk-based approach to proliferation financing4 ,,ii ,divestment from ,north ,korea #bja4 ,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 made for moral1 prudential1 or reputational reasons1 to divest from1 or prohibit the investment of assets of the ,state or local government in1 a person that engages in investment activities described in subsection 7c7 if ,north ,korea is subject to economic sanctions imposed by the ,united ,states or the ,united ,nations ,security ,council4 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 the ,state or local government from1 or prohibit investment of the assets of the ,state or local government in1 any person that the ,state or local government determines1 using credible information available to the public1 engages in investment activities described in subsection 7c74 7c7 ,investment activities described ,investment activities described in this subsection are activities of a value of more than #aj1jjj relating to an investment in ,north ,korea or in goods or services originating in ,north ,korea that are not conducted pursuant to a license issued by the ,department of the ,treasury4 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 under paragraph 7#a7 is provided to the person4 7#c7 ,opportunity to demonstrate compliance 7,a7 ,in general ,the ,state or local government shall provide to each person with respect to which a measure is to be applied under this section an opportunity to demonstrate to the ,state or local government that the person does not engage in investment activities described in subsection 7c74 7,b7 ,nonapplication ,if a person with respect to which a measure is to be applied under this section demonstrates to the ,state or local government under subparagraph 7,a7 that the person does not engage in investment activities described in subsection 7c71 the measure shall not apply to that 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 the ,state or local government has-- 7,a7 made every effort to avoid erroneously targeting the person2 and 7,b7 verified that the person engages in investment activities described in subsection 7c74 7e7 ,notice to ,department of ,justice ,not later than #cj days before a ,state or local government applies a measure under this section1 the ,state or local government shall notify the ,attorney ,general of that measure4 7f7 ,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 the ,state or local government before the date of the enactment of this ,act that provides for the divestment of assets of the ,state or local government from1 or prohibits the investment of the assets of the ,state or local government in1 any person that the ,state or local government determines1 using credible information available to the public1 engages in investment activities described in subsection 7c7 that are identified in that measure4 7#b7 ,application of notice requirements ,a measure described in paragraph 7#a7 shall be subject to the requirements of paragraphs 7#a71 7#b71 and 7#c77;,a7 of subsection 7d7 on and after the date that is #b years after the date of the enactment of this ,act4 7g7 ,no preemption ,a measure applied by a ,state or local government that is consistent with subsection 7b7 or 7f7 is not preempted by any ,federal law4 7h7 ,definitions ,in this section3 7#a7 ,asset 7,a7 ,in general ,except as provided in subparagraph 7,b71 the term asset means public monies1 and includes any pension1 retirement1 annuity1 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 7i7 ,effective date 7#a7 ,in general ,except as provided in paragraph 7#b7 and subsection 7f71 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 7f71 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 #bjb4 ,safe harbor for changes of investment policies by asset managers ,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 described in section #bja7;c7 of the ,otto ,warmbier ,banking ,restrictions ,involving ,north ,korea ,act of #bjai4 4 #bjc4 ,sense of ,congress regarding certain ,,erisa plan investments ,it is the sense of ,congress that-- 7#a7 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 described in section #bja7;c71 if-- 7,a7 the fiduciary makes that determination using credible information that is available to the public2 and 7,b7 the fiduciary prudently determines that the result of that divestment or avoidance of investment would not be expected to provide the employee benefit plan with-- 7i7 a lower rate of return than alternative investments with commensurate degrees of risk2 or 7ii7 a higher degree of risk than alternative investments with commensurate rates of return2 and 7#b7 by divesting assets or avoiding the investment of assets as described in paragraph 7#a71 the fiduciary is not breaching the responsibilities1 obligations1 or duties imposed upon the 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#a774 #bjd4 ,rule of construction ,nothing in this title1 an amendment made by this title1 or any other provision of law authorizing sanctions with respect to ,north ,korea shall be construed to affect or displace-- 7#a7 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 jurisdiction2 or 7#b7 the regulation and taxation by the several ,states of the business of insurance1 pursuant to the ,act of ,march #i1 #aide 7#ei ,stat4 #cc1 chapter #bj2 #ae ,u4,s4,c4 #ajaa et seq47 7commonly known as the ,mc,carran-,ferguson ,act74 ,,iii ,financial industry guidance to halt trafficking #cja4 ,short title ,this title may be cited as the ,financial ,industry ,guidance to ,halt ,trafficking ,act or the ,,fight ,act4 #cjb4 ,findings ,congress finds the following3 7#a7 ,the terms human trafficking and trafficking in persons are used interchangeably to describe crimes involving the exploitation of a person for the purposes of compelled labor or commercial sex through the use of force1 fraud1 or coercion4 7#b7 ,according to the ,international ,labour ,organization1 there are an estimated #bd1ijj1jjj people worldwide who are victims of forced labor1 including human trafficking victims in the ,united ,states4 7#c7 ,human trafficking is perpetrated for financial gain4 7#d7 ,according to the ,international ,labour ,organization1 of the estimated #aej1jjj1jjj1jjj or more in global profits generated annually from human trafficking-- 7,a7 approximately #b_/c are generated by commercial sexual exploitation1 exacted by fraud or by force2 and 7,b7 approximately #a_/c are generated by forced labor4 7#e7 ,most purchases of commercial sex acts are paid for with cash1 making trafficking proceeds difficult to identify in the financial system4 ,nonetheless1 traffickers rely heavily on access to financial institutions as destinations for trafficking proceeds and as conduits to finance every step of the trafficking process4 7#f7 ,under section #aief of title #ah1 ,united ,states ,code 7relating to money laundering71 human trafficking is a specified unlawful activity and transactions conducted with proceeds earned from trafficking people1 or used to further trafficking operations1 can be prosecuted as money laundering offenses4 #cjc4 ,sense of ,congress ,it is the sense of ,congress that-- 7#a7 the ,president should aggressively apply1 as appropriate1 existing sanctions for human trafficking authorized under section #aaa of the ,trafficking ,victims ,protection ,act of #bjjj 7#bb ,u4,s4,c4 #gajh72 7#b7 the ,financial ,crimes ,enforcement ,network of the ,department of the ,treasury should continue-- 7,a7 to monitor reporting required under subchapter ,,ii of chapter #ec of title #ca1 ,united ,states ,code 7commonly known as the ,bank ,secrecy ,act7 and to update advisories1 as warranted2 7,b7 to periodically review its advisories to provide covered financial institutions1 as appropriate1 with a list of new red flags for identifying activities of concern1 particularly human trafficking2 7,c7 to encourage entities covered by the advisories described in subparagraph 7,b7 to incorporate relevant elements provided in the advisories into their current transaction and account monitoring systems or in policies1 procedures1 and training on human trafficking to enable financial institutions to maintain ongoing efforts to examine transactions and accounts2 7,d7 to use geographic targeting orders1 as appropriate1 to impose additional reporting and recordkeeping requirements under section #ecbf7;a7 of title #ca1 ,united ,states ,code1 to carry out the purposes of1 and prevent evasions of the ,bank ,secrecy ,act2 and 7,e7 to utilize the ,bank ,secrecy ,act ,advisory ,group and other relevant entities to identify opportunities for nongovernmental organizations to share relevant actionable information on human traffickers' use of the financial sector for nefarious purposes2 7#c7 ,federal banking regulators1 the ,department of the ,treasury1 relevant law enforcement agencies1 and the ,human ,smuggling and ,trafficking ,center1 in partnership with representatives from the ,united ,states financial community1 should adopt regular forms of sharing information to disrupt human trafficking1 including developing protocols and procedures to share actionable information between and amongst covered institutions1 law enforcement1 and the ,united ,states intelligence community2 7#d7 training front line bank and money service business employees1 school teachers1 law enforcement officers1 foreign service officers1 counselors1 and the general public is an important factor in identifying trafficking victims2 7#e7 the ,department of ,homeland ,security's ,blue ,campaign1 training by the ,,best ,employers ,alliance1 and similar efforts by industry1 human rights1 and nongovernmental organizations focused on human trafficking provide good examples of current efforts to educate employees of critical sectors to save victims and disrupt trafficking networks2 7#f7 the ,president should intensify diplomatic efforts1 bilaterally and in appropriate international fora1 such as the ,united ,nations1 to develop and implement a coordinated1 consistent1 multilateral strategy for addressing the international financial networks supporting human trafficking2 and 7#g7 in deliberations between the ,united ,states ,government and any foreign country1 including through participation in the ,egmont ,group of ,financial ,intelligence ,units1 regarding money laundering1 corruption1 and transnational crimes1 the ,united ,states ,government should-- 7,a7 encourage cooperation by foreign governments and relevant international fora in identifying the extent to which the proceeds from human trafficking are being used to facilitate terrorist financing1 corruption1 or other illicit financial crimes2 7,b7 encourage cooperation by foreign governments and relevant international fora in identifying the nexus between human trafficking and money laundering2 7,c7 advance policies that promote the cooperation of foreign governments1 through information sharing1 training1 or other measures1 in the enforcement of this title2 7,d7 encourage the ,financial ,action ,task ,force to update its ,july #bjaa typology reports entitled1 ,laundering the ,proceeds of ,corruption and ,money ,laundering ,risks ,arising from ,trafficking in ,human ,beings and ,smuggling of ,migrants1 to identify the money laundering risk arising from the trafficking of human beings2 and 7,e7 encourage the ,egmont ,group of ,financial ,intelligence ,units to study the extent to which human trafficking operations are being used for money laundering1 terrorist financing1 or other illicit financial purposes4 #cjd4 ,coordination of human trafficking issues by the ,office of ,terrorism and ,financial ,intelligence 7a7 ,functions ,section #cab7;a77#d7 of title #ca1 ,united ,states ,code1 is amended-- 7#a7 by redesignating subparagraphs 7,e71 7,f71 and 7,g7 as subparagraphs 7,f71 7,g71 and 7,h71 respectively2 and 7#b7 by inserting after subparagraph 7,d7 the following3 7,e7 combating illicit financing relating to human trafficking2 4 7b7 ,interagency coordination ,section #cab7;a7 of such title is amended by adding at the end the following3 7#h7 ,interagency coordination ,the ,secretary of the ,treasury1 after consultation with the ,undersecretary for ,terrorism and ,financial ,crimes1 shall designate an office within the ,,otfi that shall coordinate efforts to combat the illicit financing of human trafficking with-- 7,a7 other offices of the ,department of the ,treasury2 7,b7 other ,federal agencies1 including-- 7i7 the ,office to ,monitor and ,combat ,trafficking in ,persons of the ,department of ,state2 and 7ii7 the ,interagency ,task ,force to ,monitor and ,combat ,trafficking2 7,c7 ,state and local law enforcement agencies2 and 7,d7 foreign governments4 4 #cje4 ,strengthening the role of anti-money laundering and other financial tools in combating human trafficking 7a7 ,interagency task force recommendations targeting money laundering related to human trafficking 7#a7 ,in general ,not later than #bgj days after the date of the enactment of this ,act1 the ,interagency ,task ,force to ,monitor and ,combat ,trafficking shall submit to the ,committee on ,banking1 ,housing1 and ,urban ,affairs1 the ,committee on ,foreign ,relations1 and the ,committee on the ,judiciary of the ,senate1 the ,committee on ,financial ,services1 the ,committee on ,foreign ,affairs1 and the ,committee on the ,judiciary of the ,house of ,representatives1 the ,secretary of the ,treasury1 and each appropriate ,federal banking agency-- 7,a7 an analysis of anti-money laundering efforts of the ,united ,states ,government1 ,united ,states financial institutions1 and multilateral development banks related to human trafficking2 and 7,b7 appropriate legislative1 administrative1 and other recommendations to strengthen efforts against money laundering relating to human trafficking4 7#b7 ,required recommendations ,the recommendations under paragraph 7#a7 shall include-- 7,a7 best practices based on successful anti-human trafficking programs currently in place at domestic and international financial institutions that are suitable for broader adoption2 7,b7 feedback from stakeholders1 including victims of severe trafficking in persons1 advocates of persons at risk of becoming victims of severe forms of trafficking in persons1 the ,united ,states ,advisory ,council on ,human ,trafficking1 civil society organizations1 and financial institutions on policy proposals derived from the analysis conducted by the task force referred to in paragraph 7#a7 that would enhance the efforts and programs of financial institutions to detect and deter money laundering related to human trafficking1 including any recommended changes to internal policies1 procedures1 and controls related to human trafficking2 7,c7 any recommended changes to training programs at financial institutions to better equip employees to deter and detect money laundering related to human trafficking2 and 7,d7 any recommended changes to expand human trafficking-related information sharing among financial institutions and between such financial institutions1 appropriate law enforcement agencies1 and appropriate ,federal agencies4 7b7 ,additional reporting requirement ,section #aje7;d77#g7 of the ,trafficking ,victims ,protection ,act of #bjjj 7#bb ,u4,s4,c4 #gajc7;d77#g77 is amended-- 7#a7 in the matter preceding subparagraph 7,a7-- 7,a7 by inserting the ,committee on ,financial ,services1 after the ,committee on ,foreign ,affairs2 and 7,b7 by inserting the ,committee on ,banking1 ,housing1 and ,urban ,affairs1 after the ,committee on ,foreign ,relations12 7#b7 in subparagraph 7,q77vii71 by striking 2 and and inserting a semicolon2 7#c7 in subparagraph 7,r71 by striking the period at the end and inserting 2 and2 and 7#d7 by adding at the end the following3 7,s7 the efforts of the ,united ,states to eliminate money laundering related to human trafficking and the number of investigations1 arrests1 indictments1 and convictions in money laundering cases with a nexus to human trafficking4 4 7c7 ,required review of procedures ,not later than #ahj days after the date of the enactment of this ,act1 the ,federal ,financial ,institutions ,examination ,council1 in consultation with the ,secretary of the ,treasury1 victims of severe forms of trafficking in persons1 advocates of persons at risk of becoming victims of severe forms of trafficking in persons1 the ,united ,states ,advisory ,council on ,trafficking1 civil society organizations1 the private sector1 and appropriate law enforcement agencies1 shall-- 7#a7 review and enhance training and examinations procedures to improve the surveillance capabilities of anti-money laundering and countering the financing of terrorism programs to detect human trafficking-related financial transactions2 7#b7 review and enhance procedures for referring potential human trafficking cases to the appropriate law enforcement agency2 and 7#c7 determine1 as appropriate1 whether requirements for financial institutions and covered financial institutions are sufficient to detect and deter money laundering related to human trafficking4 7d7 ,limitations ,nothing in this section shall be construed to-- 7#a7 grant rulemaking authority to the ,interagency ,task ,force to ,monitor and ,combat ,trafficking2 or 7#b7 authorize financial institutions to deny services to or violate the privacy of victims of trafficking1 victims of severe forms of trafficking1 or individuals not responsible for promoting severe forms of trafficking in persons4 #cjf4 ,sense of ,congress on resources to combat human trafficking ,it is the sense of ,congress that-- 7#a7 adequate funding should be provided for critical ,federal efforts to combat human trafficking2 7#b7 the ,department of the ,treasury should have the appropriate resources to vigorously investigate human trafficking networks under section #aaa of the ,trafficking ,victims ,protection ,act of #bjjj 7#bb ,u4,s4,c4 #gajh7 and other relevant statutes and ,executive orders2 7#c7 the ,department of the ,treasury and the ,department of ,justice should each have the capacity and appropriate resources to support technical assistance to develop foreign partners' ability to combat human trafficking through strong national anti-money laundering and countering the financing of terrorism programs2 7#d7 each ,united ,states ,attorney's ,office should be provided appropriate funding to increase the number of personnel for community education and outreach and investigative support and forensic analysis related to human trafficking2 and 7#e7 the ,department of ,state should be provided additional resources1 as necessary1 to carry out the ,survivors of ,human ,trafficking ,empowerment ,act 7section #aae of ,public ,law #aad-bb2 #abi ,stat4 #bdc74