[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 3012 Introduced in Senate (IS)]

113th CONGRESS
  2d Session
                                S. 3012

To improve the enforcement of sanctions against the Government of North 
                     Korea, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           December 12, 2014

 Mr. Menendez introduced the following bill; which was read twice and 
             referred to the Committee on Foreign Relations

_______________________________________________________________________

                                 A BILL


 
To improve the enforcement of sanctions against the Government of North 
                     Korea, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``North Korea 
Sanctions Enforcement Act of 2014''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings; purposes.
Sec. 3. Definitions.
       TITLE I--INVESTIGATIONS, PROHIBITED CONDUCT, AND PENALTIES

Sec. 101. Statement of policy.
Sec. 102. Investigations.
Sec. 103. Briefing to Congress.
Sec. 104. Designation of persons.
Sec. 105. Forfeiture of property.
 TITLE II--SANCTIONS AGAINST NORTH KOREAN PROLIFERATION, HUMAN RIGHTS 
                     ABUSES, AND ILLICIT ACTIVITIES

Sec. 201. Determinations with respect to North Korea as a jurisdiction 
                            of primary money laundering concern.
Sec. 202. Ensuring the consistent enforcement of United Nations 
                            Security Council resolutions and financial 
                            restrictions on North Korea.
Sec. 203. Proliferation prevention sanctions.
Sec. 204. Procurement sanctions.
Sec. 205. Enhanced inspection authorities.
Sec. 206. Travel sanctions.
Sec. 207. Exemptions, waivers, and removals of designation.
                  TITLE III--PROMOTION OF HUMAN RIGHTS

Sec. 301. Information technology.
Sec. 302. Report on North Korean prison camps.
Sec. 303. Briefing on serious human rights abuses or censorship in 
                            North Korea.
                     TITLE IV--GENERAL AUTHORITIES

Sec. 401. Suspension of sanctions and other measures.
Sec. 402. Termination of sanctions and other measures.
Sec. 403. North Korea Enforcement and Humanitarian Fund.
Sec. 404. Rulemaking.
Sec. 405. Effective date.

SEC. 2. FINDINGS; PURPOSES.

    (a) Findings.--Congress finds the following:
            (1) The Government of North Korea--
                    (A) has repeatedly violated its commitments to the 
                complete, verifiable, and irreversible dismantlement of 
                its nuclear weapons programs; and
                    (B) has willfully violated multiple United Nations 
                Security Council resolutions calling for it to cease 
                its development, testing, and production of weapons of 
                mass destruction.
            (2) North Korea poses a grave risk for the proliferation of 
        nuclear weapons and other weapons of mass destruction.
            (3) The Government of North Korea has been implicated 
        repeatedly in money laundering and illicit activities, 
        including--
                    (A) prohibited arms sales;
                    (B) narcotics trafficking;
                    (C) the counterfeiting of United States currency; 
                and
                    (D) the counterfeiting of intellectual property of 
                United States persons.
            (4) North Korea has--
                    (A) unilaterally withdrawn from the Korean War 
                Armistice Agreement, done at Panmunjom, Korea, July 27, 
                1953; and
                    (B) committed provocations against South Korea in 
                2010--
                            (i) by sinking the warship Cheonan and 
                        killing 46 of her crew; and
                            (ii) by shelling Yeonpyeong Island and 
                        killing 4 South Korean civilians.
            (5) North Korea maintains a system of brutal political 
        prison camps that contain as many as 200,000 men, women, and 
        children, who are--
                    (A) kept in atrocious living conditions with 
                insufficient food, clothing, and medical care; and
                    (B) under constant fear of torture or arbitrary 
                execution.
            (6) North Korea has prioritized weapons programs and the 
        procurement of luxury goods--
                    (A) in defiance of United Nations Security Council 
                Resolutions 1695 (adopted July 15, 2006), 1718 (adopted 
                October 14, 2006), 1874 (adopted June 12, 2009), 2087 
                (adopted January 22, 2013), and 2094 (adopted March 7, 
                2013); and
                    (B) in gross disregard of the needs of its people.
            (7) Persons, including financial institutions, who engage 
        in transactions with, or provide financial services to, the 
        Government of North Korea and its financial institutions 
        without establishing sufficient financial safeguards against 
        North Korea's use of these transactions to promote 
        proliferation, weapons trafficking, human rights violations, 
        illicit activity, and the purchase of luxury goods--
                    (A) aid and abet North Korea's misuse of the 
                international financial system; and
                    (B) violate the intent of the United Nations 
                Security Council resolutions referred to in paragraph 
                (6)(A).
            (8) The conduct of the Government of North Korea poses an 
        imminent threat to--
                    (A) the security of the United States and its 
                allies;
                    (B) the global economy;
                    (C) the safety of members of the United States 
                Armed Forces;
                    (D) the integrity of the global financial system;
                    (E) the integrity of global nonproliferation 
                programs; and
                    (F) the people of North Korea.
    (b) Purposes.--Through this Act, Congress seeks--
            (1) to use nonmilitary means to address the crisis 
        described in subsection (a);
            (2) to provide diplomatic leverage to negotiate necessary 
        changes in North Korea's conduct;
            (3) to ease the suffering of the people of North Korea; and
            (4) to reaffirm the purposes set forth in section 4 of the 
        North Korean Human Rights Act of 2004 (22 U.S.C. 7802).

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Applicable executive order.--The term ``applicable 
        Executive order'' means--
                    (A) Executive Order 13382 (70 Fed. Reg. 38567; 
                relating to blocking property of weapons of mass 
                destruction proliferators and their supports), 
                Executive Order 13466 (73 Fed. Reg. 36787; relating to 
                continuing certain restrictions with respect to North 
                Korea and North Korean nationals), Executive Order 
                13551 (75 Fed. Reg. 53837; relating to blocking 
                property of certain persons with respect to North 
                Korea), or Executive Order 13570 (76 Fed. Reg. 22291; 
                relating to prohibiting certain transactions with 
                respect to North Korea), to the extent that such 
                Executive order--
                            (i) authorizes the imposition of sanctions 
                        on persons for conduct; or
                            (ii) prohibits transactions or activities 
                        involving the Government of North Korea; or
                    (B) any Executive order adopted on or after the 
                date of the enactment of this Act, to the extent that 
                such Executive order--
                            (i) authorizes the imposition of sanctions 
                        on persons for conduct; or
                            (ii) prohibits transactions or activities 
                        involving the Government of North Korea.
            (2) Applicable united nations security council 
        resolution.--The term ``applicable United Nations Security 
        Council resolution'' means--
                    (A) United Nations Security Council Resolution 1695 
                (adopted July 15, 2006), 1718 (adopted October 14, 
                2006), 1874 (adopted June 12, 2009), 2087 (adopted 
                January 22, 2013), or 2094 (adopted March 7, 2013); or
                    (B) any United Nations Security Council resolution 
                adopted on or after the date of the enactment of this 
                Act that--
                            (i) authorizes the imposition of sanctions 
                        on persons for conduct; or
                            (ii) prohibits transactions or activities 
                        involving the Government of North Korea.
            (3) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                    (A) the Committee on Foreign Relations of the 
                Senate;
                    (B) the Committee on Banking, Housing, and Urban 
                Affairs of the Senate;
                    (C) the Committee on Foreign Affairs of the House 
                of Representatives; and
                    (D) the Committee on Financial Services of the 
                House of Representatives.
            (4) Designated person.--The term ``designated person'' 
        means a person designated under subsection (a) or (b) of 
        section 104 for purposes of applying 1 or more of the sanctions 
        described in title I or II with respect to the person.
            (5) Government of north korea.--The term ``Government of 
        North Korea'' means--
                    (A) the Government of the Democratic People's 
                Republic of Korea or any political subdivision, agency, 
                or instrumentality thereof; and
                    (B) any person owned or controlled by, or acting 
                for or on behalf of, the Government of North Korea.
            (6) Luxury goods.--The term ``luxury goods''--
                    (A) has the meaning given such term in section 
                746.4(b)(1) of title 15, Code of Federal Regulations; 
                and
                    (B) includes the items listed in Supplement No. 1 
                to Part 746 of such title, and any similar items.
            (7) Monetary instruments.--The term ``monetary 
        instruments'' has the meaning given such term in section 
        5312(a) of title 31, United States Code.
            (8) North korean financial institution.--The term ``North 
        Korean financial institution'' means any financial institution 
        that--
                    (A) is organized under the laws of North Korea or 
                any jurisdiction within North Korea (including a 
                foreign branch of such institution);
                    (B) is located in North Korea, except for a 
                financial institution that is excluded by the President 
                in accordance with section 207(d);
                    (C) is owned or controlled by the Government of 
                North Korea, regardless of location; and
                    (D) is owned or controlled by a financial 
                institution described in subparagraph (A), (B), or (C), 
                regardless of location.
            (9) Other stores of value.--The term ``other stores of 
        value'' means--
                    (A) prepaid access devices, tangible or intangible 
                prepaid access devices, and other instruments or 
                devices for the storage or transmission of value (as 
                such terms are defined in part 1010 of title 31, Code 
                of Federal Regulations); and
                    (B) any covered goods (as defined in section 
                1027.100 of title 31, Code of Federal Regulations), and 
                any instrument or tangible or intangible access device 
                used for the storage and transmission of a 
                representation of covered goods, or other device (as 
                defined in such section 1027.100).

       TITLE I--INVESTIGATIONS, PROHIBITED CONDUCT, AND PENALTIES

SEC. 101. STATEMENT OF POLICY.

    In order to achieve the peaceful disarmament of North Korea, 
Congress finds that it is necessary--
            (1) to encourage all member states to fully and promptly 
        implement United Nations Security Council Resolution 2094 
        (adopted March 7, 2013);
            (2) to sanction the persons, including financial 
        institutions, that facilitate proliferation, illicit 
        activities, arms trafficking, imports of luxury goods, serious 
        human rights abuses, cash smuggling, and censorship by the 
        Government of North Korea;
            (3) to authorize the President to sanction persons who fail 
        to exercise due diligence to ensure that such financial 
        institutions and jurisdictions do not facilitate proliferation, 
        arms trafficking, kleptocracy, and imports of luxury goods by 
        the Government of North Korea;
            (4) to deny the Government of North Korea access to the 
        funds it uses to obtain nuclear weapons, ballistic missiles, 
        and luxury goods instead of providing for the needs of its 
        people; and
            (5) to enforce sanctions in a manner that avoids any 
        adverse humanitarian impact on the people of North Korea.

SEC. 102. INVESTIGATIONS.

    (a) Initiation.--The President is authorized to initiate an 
investigation into the possible designation of a person under section 
104(a) upon receipt by the President of credible information indicating 
that such person has engaged in conduct described in section 104(a).
    (b) Personnel.--The President may direct the Secretary of State, 
the Secretary of the Treasury, and the heads of other Federal 
departments and agencies as may be necessary to assign sufficient 
experienced and qualified investigators, attorneys, and technical 
personnel--
            (1) to investigate the conduct described in subsections (a) 
        and (b) of section 104; and
            (2) to coordinate and ensure the effective enforcement of 
        the provisions of this Act.

SEC. 103. BRIEFING TO CONGRESS.

    Not later than 180 days after the date of the enactment of this 
Act, and periodically thereafter, the President shall provide to the 
appropriate congressional committees a briefing on efforts to implement 
this Act.

SEC. 104. DESIGNATION OF PERSONS.

    (a) Prohibited Activities.--
            (1) Prohibited conduct described.--Except as provided in 
        section 207, the President may designate under this subsection 
        any person that the President determines--
                    (A) knowingly (directly or indirectly) imported, 
                exported, or reexported to, into, or from North Korea 
                any goods, services, or technology controlled for 
                export by the United States due to their use for 
                weapons of mass destruction and their delivery systems 
                and materially contributing to the use, development, 
                production, possession, or acquisition by any persons 
                of a nuclear, radiological, chemical, or biological 
                weapon, or any device or system designed in whole or in 
                part to deliver such a weapon;
                    (B) knowingly (directly or indirectly) provided 
                training, advice, or other services or assistance, or 
                engaged in significant financial transactions, relating 
                to the manufacture, maintenance, or use of any such 
                weapon or system to be imported, exported, or 
                reexported to, into, or from North Korea;
                    (C) knowingly (directly or indirectly) imported, 
                exported, or reexported luxury goods to or into North 
                Korea;
                    (D) knowingly engaged in, or is responsible for, 
                censorship by the Government of North Korea;
                    (E) knowingly engaged in, or is responsible for, 
                serious human rights abuses by the Government of North 
                Korea;
                    (F) knowingly (directly or indirectly) engaged in 
                money laundering, the counterfeiting of goods or 
                currency, bulk cash smuggling, or narcotics trafficking 
                that supports the Government of North Korea or any 
                senior official thereof; or
                    (G) knowingly attempted to engage in any of the 
                conduct described in subparagraphs (A) through (E).
            (2) Penalties.--The penalties provided for in subsections 
        (b) and (c) of section 206 of the International Emergency 
        Economic Powers Act (50 U.S.C. 1705) shall apply to any person 
        who violates, attempts to violate, conspires to violate, or 
        causes a violation of any prohibition under this subsection, or 
        of an order or regulation prescribed under this Act, to the 
        same extent that such penalties apply to a person that commits 
        an unlawful act described in section 206(a) of such Act (50 
        U.S.C. 1705(a)).
    (b) Additional Prohibited Activities.--
            (1) Prohibited conduct described.--Except as provided in 
        section 207, the President may designate under this subsection 
        any person that the President determines--
                    (A) knowingly engaged in, contributed to, assisted, 
                sponsored, or provided financial, material or 
                technological support for, or goods and services in 
                support of, any person designated pursuant to an 
                applicable United Nations Security Council resolution;
                    (B) knowingly contributed to--
                            (i) the bribery of an official of the 
                        Government of North Korea;
                            (ii) the misappropriation, theft, or 
                        embezzlement of public funds by, or for the 
                        benefit of, an official of the Government of 
                        North Korea; or
                            (iii) the use of any proceeds of any such 
                        conduct; or
                    (C) knowingly and materially assisted, sponsored, 
                or provided significant financial, material, or 
                technological support for, or goods or services to or 
                in support of, the activities described in subparagraph 
                (A) or (B).
            (2) Effect of designation.--With respect to any person 
        designated under this subsection, the President may--
                    (A) apply the sanctions described in section 204, 
                205, or 206;
                    (B) apply any of the special measures described in 
                section 5318A of title 31, United States Code;
                    (C) prohibit any transactions in foreign exchange--
                            (i) that are subject to the jurisdiction of 
                        the United States; and
                            (ii) in which such person has any interest; 
                        and
                    (D) prohibit any transfers of credit or payments 
                between financial institutions or by, through, or to 
                any financial institution, to the extent that such 
                transfers or payments--
                            (i) are subject to the jurisdiction of the 
                        United States; and
                            (ii) involve any interest of such person.
    (c) Asset Blocking.--The President shall exercise all of the powers 
granted to the President under the International Emergency Economic 
Powers Act (50 U.S.C. 1701 et seq.) to the extent necessary to block 
and prohibit all transactions in property and interests in property of 
a person determined by the President to be subject to this section if 
such property and interests in property are in the United States, come 
within the United States, or are or come within the possession or 
control of a United States person.
    (d) Application.--The designation of a person under subsection (a) 
or (b) and the blocking of property and interests in property under 
subsection (c) shall apply with respect to a person who is determined 
to be owned or controlled by, or to have acted or purported to have 
acted for or on behalf of (directly or indirectly) any person whose 
property and interests in property are blocked pursuant to this 
section.
    (e) Transaction Licensing.--The President shall deny or revoke any 
license for any transaction that the President determines to lack 
sufficient financial controls to ensure that such transaction will not 
facilitate any of the conduct described in subsection (a) or (b).

SEC. 105. FORFEITURE OF PROPERTY.

    (a) Amendment to Property Subject to Forfeiture.--Section 981(a)(1) 
of title 18, United States Code, is amended by adding at the end the 
following:
            ``(I) Any real or personal property that is involved in a 
        violation or attempted violation, or which constitutes or is 
        derived from proceeds traceable to a violation, of section 
        104(a) of the North Korea Sanctions Enforcement Act of 2014.''.
    (b) Amendment to Definition of Civil Forfeiture Statute.--Section 
983(i)(2)(D) of title 18, United States Code, is amended to read as 
follows:
                    ``(D) the Trading with the Enemy Act (50 U.S.C. 
                App. 1 et seq.), the International Emergency Economic 
                Powers Act (50 U.S.C. 1701 et seq.), or the North Korea 
                Sanctions Enforcement Act of 2014; or''.
    (c) Amendment to Definition of Specified Unlawful Activity.--
Section 1956(c)(7)(D) of title 18, United States Code, is amended--
            (1) by striking ``or section 92 of the Atomic Energy Act of 
        1954'' and inserting ``section 92 of the Atomic Energy Act of 
        1954''; and
            (2) by adding at the end the following: ``, or section 
        104(a) of the North Korea Sanctions Enforcement Act of 2014 
        (relating to prohibited trade with North Korea);''.
    (d) Authorization of Appropriations.--From the amounts in the 
Assets Forfeiture Fund established under section 524(c) of title 28, 
United States Code, or the Department of the Treasury Forfeiture Fund 
established under section 9703 of title 31, United States Code, as 
added by the Treasury Forfeiture Fund Act of 1992 (section 638 of 
Public Law 102-393), there are authorized to be appropriated for each 
of the fiscal years 2015 through 2023, in such proportions as the 
President may determine, and without fiscal year limitation, $5,000,000 
for law enforcement expenses for the enforcement of this Act or any 
amendment made by this Act, including salaries and expenses of 
investigators, attorneys, technical personnel, and such personnel as 
the President determines to be necessary to enforce this Act or any 
such amendment.
    (e) Payment in Lieu of Forfeiture.--Any money paid to the United 
States by a financial institution or other person in lieu of the 
commencement of criminal, civil, or administrative forfeiture 
proceedings to forfeit property involving any activity described in 
section 104(a) or in settlement of such forfeiture proceedings--
            (1) shall be treated as forfeited funds; and
            (2) shall be deposited, in such proportions as the 
        President may determine, into--
                    (A) the Assets Forfeiture Fund established under 
                section 524(c) of title 28, United States Code; or
                    (B) the Department of the Treasury Forfeiture Fund 
                established under section 9703 of title 31, United 
                States Code, as added by the Treasury Forfeiture Fund 
                Act of 1992 (section 638 of Public Law 102-393).
    (f) Rule of Construction.--Nothing in this title or any amendment 
made by this title may be construed to restrict or limit the authority 
of the President under--
            (1) section 524(c) of title 28, United States Code; or
            (2) section 9703 of title 31, United States Code, as added 
        by the Treasury Forfeiture Fund Act of 1992 (section 638 of 
        Public Law 102-393).

 TITLE II--SANCTIONS AGAINST NORTH KOREAN PROLIFERATION, HUMAN RIGHTS 
                     ABUSES, AND ILLICIT ACTIVITIES

SEC. 201. DETERMINATIONS WITH RESPECT TO NORTH KOREA AS A JURISDICTION 
              OF PRIMARY MONEY LAUNDERING CONCERN.

    (a) Findings.--Congress makes the following findings:
            (1) The Under Secretary for Terrorism and Financial 
        Intelligence, who is responsible for safeguarding the financial 
        system against illicit use, money laundering, terrorist 
        financing, and the proliferation of weapons of mass 
        destruction, and has repeatedly expressed concern about North 
        Korea's misuse of the international financial system--
                    (A) in 2006--
                            (i) stated, ``Given [North Korea's] 
                        counterfeiting of U.S. currency, narcotics 
                        trafficking and use of accounts world-wide to 
                        conduct proliferation-related transactions, the 
                        line between illicit and licit North Korean 
                        money is nearly invisible.''; and
                            (ii) urged financial institutions worldwide 
                        to ``think carefully about the risks of doing 
                        any North Korea-related business'';
                    (B) in 2011, stated that North Korea--
                            (i) ``remains intent on engaging in 
                        proliferation, selling arms as well as bringing 
                        in material''; and
                            (ii) was ``aggressively pursuing the effort 
                        to establish front companies.''; and
                    (C) in 2013, stated--
                            (i) in reference to North Korea's 
                        distribution of high-quality counterfeit United 
                        States currency, that ``North Korea is 
                        continuing to try to pass a supernote into the 
                        international financial system''; and
                            (ii) the Department of the Treasury would 
                        soon introduce new currency with improved 
                        security features to protect against 
                        counterfeiting by the Government of North 
                        Korea.
            (2) The Financial Action Task Force, an intergovernmental 
        body whose purpose is to develop and promote national and 
        international policies to combat money laundering and terrorist 
        financing, has repeatedly--
                    (A) expressed concern at deficiencies in North 
                Korea's regimes to combat money laundering and 
                terrorist financing;
                    (B) urged North Korea to adopt a plan of action to 
                address significant deficiencies in these regimes and 
                the serious threat they pose to the integrity of the 
                international financial system;
                    (C) urged all jurisdictions to apply 
                countermeasures to protect the international financial 
                system from ongoing and substantial money laundering 
                and terrorist financing risks emanating from North 
                Korea;
                    (D) urged all jurisdictions to advise their 
                financial institutions to give special attention to 
                business relationships and transactions with North 
                Korea, including North Korean companies and financial 
                institutions; and
                    (E) called on all jurisdictions--
                            (i) to protect against correspondent 
                        relationships being used to bypass or evade 
                        countermeasures and risk mitigation practices; 
                        and
                            (ii) to take into account money laundering 
                        and terrorist financing risks when considering 
                        requests by North Korean financial institutions 
                        to open branches and subsidiaries in their 
                        respective jurisdictions.
            (3) On March 7, 2013, the United Nations Security Council 
        unanimously adopted Resolution 2094, which--
                    (A) welcomed the Financial Action Task Force's--
                            (i) recommendation on financial sanctions 
                        related to proliferation; and
                            (ii) guidance on the implementation of such 
                        sanctions;
                    (B) decided that United Nations Member States 
                should apply enhanced monitoring and other legal 
                measures to prevent the provision of financial services 
                or the transfer of property that could contribute to 
                activities prohibited by applicable United Nations 
                Security Council resolutions; and
                    (C) called on United Nations Member States to 
                prohibit North Korean banks from establishing or 
                maintaining correspondent relationships with banks in 
                their respective jurisdictions to prevent the provision 
                of financial services if such states have information 
                that provides reasonable grounds to believe that such 
                activities could contribute to--
                            (i) activities prohibited by an applicable 
                        United Nations Security Council resolution; or
                            (ii) the evasion of such prohibitions.
    (b) Sense of Congress Regarding the Designation of North Korea as a 
Jurisdiction of Primary Money Laundering Concern.--Congress--
            (1) acknowledges the efforts of the United Nations Security 
        Council to impose limitations on, and to require the enhanced 
        monitoring of, transactions involving North Korean financial 
        institutions that could contribute to sanctioned activities;
            (2) urges the President, in the strongest terms--
                    (A) to consider immediately designating North Korea 
                as a jurisdiction of primary money laundering concern; 
                and
                    (B) to adopt stringent special measures to 
                safeguard the financial system against the risks posed 
                by North Korea's willful evasion of sanctions and its 
                illicit activities; and
            (3) urges the President to seek the prompt implementation 
        by other states of enhanced monitoring and due diligence to 
        prevent North Korea's misuse of the international financial 
        system, including by sharing information about activities, 
        transactions, and property that could contribute to--
                    (A) activities sanctioned by applicable United 
                Nations Security Council resolutions; or
                    (B) the evasion of such sanctions.
    (c) Determinations Regarding North Korea.--
            (1) In general.--Not later than 180 days after the date of 
        the enactment of this Act, the Secretary of the Treasury, in 
        consultation with the Secretary of State and Attorney General, 
        and in accordance with section 5318A of title 31, United States 
        Code, shall determine whether reasonable grounds exist for 
        concluding that North Korea is a jurisdiction of primary money 
        laundering concern.
            (2) Enhanced due diligence and reporting requirements.--
        Except as provided in section 207, if the Secretary of the 
        Treasury determines under this subsection that reasonable 
        grounds exist for concluding that North Korea is a jurisdiction 
        of primary money laundering concern, the Secretary, in 
        consultation with the Federal functional regulators, shall 
        impose 1 or more of the special measures described in 
        paragraphs (1) through (5) of section 5318A(b) of title 31, 
        United States Code, with respect to the jurisdiction of North 
        Korea.
            (3) Report required.--
                    (A) In general.--The Secretary of the Treasury 
                shall submit a report to the appropriate congressional 
                committees that contains the reasons for any 
                determination under paragraph (1).
                    (B) Form.--The report submitted under subparagraph 
                (A) shall be submitted in unclassified form, but may 
                contain a classified annex.

SEC. 202. ENSURING THE CONSISTENT ENFORCEMENT OF UNITED NATIONS 
              SECURITY COUNCIL RESOLUTIONS AND FINANCIAL RESTRICTIONS 
              ON NORTH KOREA.

    (a) Findings.--Congress finds that--
            (1) all member states and jurisdictions are obligated to 
        implement and enforce applicable United Nations Security 
        Council resolutions fully and promptly, including by blocking 
        the property of, and ensuring that any property is prevented 
        from being made available to, persons designated by the 
        Security Council under applicable United Nations Security 
        Council resolutions;
            (2) all states and jurisdictions share a common interest in 
        protecting the international financial system from the risks of 
        money laundering and illicit transactions emanating from North 
        Korea;
            (3) the United States dollar and the euro are the world's 
        principal reserve currencies, and the United States and the 
        European Union are primarily responsible for the protection of 
        the international financial system from these risks;
            (4) the cooperation of the People's Republic of China, as 
        North Korea's principal trading partner, is essential to--
                    (A) the enforcement of applicable United Nations 
                Security Council resolutions; and
                    (B) the protection of the international financial 
                system;
            (5) the report of the Panel of Experts established pursuant 
        to United Nations Security Council Resolution 1874 (adopted on 
        June 11, 2013) expressed concern about the ability of banks 
        in--
                    (A) states with less effective regulators; and
                    (B) states that are unable to afford effective 
                compliance to detect and prevent illicit transfers 
                involving North Korea;
            (6) North Korea has historically exploited inconsistencies 
        between jurisdictions in the interpretation and enforcement of 
        financial regulations and applicable United Nations Security 
        Council resolutions to circumvent sanctions and launder the 
        proceeds of illicit activities;
            (7) Amroggang Development Bank, Bank of East Land, and 
        Tanchon Commercial Bank have been designated by the Secretary 
        of the Treasury, the United Nations Security Council, and the 
        European Union as having materially contributed to the 
        proliferation of weapons of mass destruction;
            (8) Korea Daesong Bank and Korea Kwangson Banking 
        Corporation have been designated by the Secretary of the 
        Treasury and the European Union as having materially 
        contributed to the proliferation of weapons of mass 
        destruction;
            (9) the Foreign Trade Bank of North Korea has been 
        designated by the Secretary of the Treasury for facilitating 
        transactions on behalf of persons linked to its proliferation 
        network, and for serving as ``a key financial node''; and
            (10) Daedong Credit Bank has been designated by the 
        Secretary of the Treasury for activities prohibited by 
        applicable United Nations Security Council resolutions, 
        including the use of deceptive financial practices to 
        facilitate transactions on behalf of persons linked to North 
        Korea's proliferation network.
    (b) Sense of Congress.--It is the sense of Congress that the 
President should intensify diplomatic efforts in appropriate 
international fora, such as the United Nations, and bilaterally, to 
develop and implement a coordinated, consistent, multilateral strategy 
for protecting the global financial system against risks emanating from 
North Korea, including--
            (1) the cessation of any financial services whose 
        continuation is inconsistent with applicable United Nations 
        Security Council resolutions;
            (2) the cessation of any financial services to persons, 
        including financial institutions, that present unacceptable 
        risks of facilitating money laundering and illicit activity by 
        the Government of North Korea;
            (3) the blocking by all states and jurisdictions, in 
        accordance with the legal process of the state or jurisdiction 
        in which the property is held, of any property required to be 
        blocked under applicable United Nations Security Council 
        resolutions; and
            (4) the blocking of any property derived from illicit 
        activity, or from the misappropriation, theft, or embezzlement 
        of public funds by, or for the benefit of, officials of the 
        Government of North Korea.

SEC. 203. PROLIFERATION PREVENTION SANCTIONS.

    (a) Export of Certain Goods or Technology.--A validated license 
shall be required for the export of any goods or technology otherwise 
covered under section 6(j) of the Export Administration Act of 1979 (50 
U.S.C. App. 2405(j)). No defense exports may be approved for the 
Government of North Korea.
    (b) Transactions in Lethal Military Equipment.--
            (1) In general.--The President shall withhold assistance 
        under the Foreign Assistance Act of 1961 (22 U.S.C. 2151 et 
        seq.) to the government of any country that provides lethal 
        military equipment to the Government of North Korea.
            (2) Applicability.--The prohibition under this subsection 
        with respect to a foreign government shall terminate on the 
        date that is 1 year after the date on which the restriction 
        under paragraph (1) may have been applied.
    (c) Waiver.--The Secretary of State may waive the prohibitions 
under this section with respect to a country if the Secretary 
determines that it is in the national interest of the United States to 
do so.
    (d) Exception.--The prohibitions under this section shall not apply 
to the provision of assistance for human rights, democracy, rule of 
law, or emergency humanitarian assistance.

SEC. 204. PROCUREMENT SANCTIONS.

    (a) In General.--Except as provided in this section, the United 
States Government may not procure, or enter into any contract for the 
procurement of, any goods or services from any designated person.
    (b) Federal Acquisition Regulation.--
            (1) In general.--The Federal Acquisition Regulation issued 
        pursuant to section 1303 of title 41, United States Code, shall 
        be revised to require that each person that is a prospective 
        contractor submit a certification that such person does not 
        engage in any of the conduct described in section 104(a).
            (2) Applicability.--The revision referred to in paragraph 
        (1) shall apply with respect to contracts for which 
        solicitations are issued on or after the date that is 90 days 
        after the date of the enactment of this Act.
    (c) General Services Administration.--
            (1) Inclusion on list.--The Administrator of General 
        Services shall include, on the List of Parties Excluded from 
        Federal Procurement and Nonprocurement Programs maintained by 
        the Administrator under part 9 of the Federal Acquisition 
        Regulation, each person that is debarred, suspended, or 
        proposed for debarment or suspension by the head of an 
        executive agency on the basis of a determination of a false 
        certification under subsection (b).
            (2) Contract termination; suspension.--If the head of an 
        executive agency determines that a person has submitted a false 
        certification under subsection (b) after the date on which the 
        Federal Acquisition Regulation is revised to implement the 
        requirements of this section, the head of such executive agency 
        shall--
                    (A) terminate a contract with such person; or
                    (B) debar or suspend such person from eligibility 
                for Federal contracts for a period of not more than 2 
                years.
            (3) Applicable procedures.--Any debarment or suspension 
        under paragraph (2)(B) shall be subject to the procedures that 
        apply to debarment and suspension under the Federal Acquisition 
        Regulation under subpart 9.4 of part 9 of title 48, Code of 
        Federal Regulations.
    (d) Clarification Regarding Certain Products.--The remedies 
specified in subsections (a) through (c) shall not apply with respect 
to the procurement of any eligible product (as defined in section 
308(4) of the Trade Agreements Act of 1979 (19 U.S.C. 2518(4)) of any 
foreign country or instrumentality designated under section 301(b) of 
such Act (19 U.S.C. 2511(b)).
    (e) Rule of Construction.--Nothing in this subsection may be 
construed to limit the use of other remedies available to the head of 
an executive agency or any other official of the Federal Government on 
the basis of a determination of a false certification under subsection 
(b).
    (f) Executive Agency Defined.--In this section, the term 
``executive agency'' has the meaning given such term in section 133 of 
title 41, United States Code.

SEC. 205. ENHANCED INSPECTION AUTHORITIES.

    (a) Report Required.--Not later than 180 days after the date of the 
enactment of this Act, and annually thereafter, the President shall 
submit a report to the appropriate congressional committees that 
identifies foreign ports and airports whose inspections of ships, 
aircraft, and conveyances originating in North Korea, carrying North 
Korean property, or operated by the Government of North Korea are not 
sufficient to effectively prevent the facilitation of any of the 
activities described in section 104(a).
    (b) Enhanced Customs Inspection Requirements.--The Secretary of 
Homeland Security may require enhanced inspections of any cargo landed 
in the United States or entering the stream of interstate commerce that 
has been transported through a port or airport identified by the 
President under subsection (a).
    (c) Seizure and Forfeiture.--A vessel, aircraft, or conveyance used 
to facilitate any of the activities described in section 104(a) under 
the jurisdiction of the United States may be seized and forfeited 
under--
            (1) chapter 46 of title 18, United States Code; or
            (2) under the Tariff Act of 1930 (19 U.S.C. 1202 et seq.).

SEC. 206. TRAVEL SANCTIONS.

    The Secretary of State may deny a visa to, and the Secretary of 
Homeland Security, pursuant to section 104, may deny entry into the 
United States of, any alien who is--
            (1) a designated person;
            (2) a corporate officer of a designated person; or
            (3) a principal shareholder with a controlling interest in 
        a designated person.

SEC. 207. EXEMPTIONS, WAIVERS, AND REMOVALS OF DESIGNATION.

    (a) Exemptions.--
            (1) In general.--The following activities shall be exempt 
        from sanctions under sections 104 and 206:
                    (A) Activities subject to the reporting 
                requirements under title V of the National Security Act 
                of 1947 (50 U.S.C. 413 et seq.), or to any authorized 
                intelligence activities of the United States.
                    (B) Any transaction necessary to comply with United 
                States obligations under the Agreement between the 
                United Nations and the United States of America 
                regarding the Headquarters of the United Nations, 
                signed June 26, 1947, and entered into force on 
                November 21, 1947, or under the Vienna Convention on 
                Consular Relations, signed April 24, 1963, and entered 
                into force on March 19, 1967, or under other 
                international agreements.
                    (C) Any financial transaction for which the 
                exclusive purpose is to import agricultural products, 
                medicine, or medical devices into North Korea if such 
                supplies or equipment--
                            (i) are designated as ``EAR 99'' under the 
                        Export Administration Regulations (15 C.F.R. 
                        730 et seq.); and
                            (ii) are not controlled under--
                                    (I) the Export Administration Act 
                                of 1979 (50 U.S.C. App. 2401 et seq.), 
                                as continued in effect under the 
                                International Emergency Economic Powers 
                                Act (50 U.S.C. 1701 et seq.);
                                    (II) the Arms Export Control Act 
                                (22 U.S.C. 2751 et seq.);
                                    (III) part B of title VIII of the 
                                Nuclear Proliferation Prevention Act of 
                                1994 (22 U.S.C. 6301 et seq.); or
                                    (IV) the Chemical and Biological 
                                Weapons Control and Warfare Elimination 
                                Act of 1991 (22 U.S.C. 5601 et seq.).
            (2) Export administration regulations defined.--In this 
        subsection, the term ``Export Administration Regulations'' 
        means the regulations set forth in subchapter C of chapter VII 
        of title 15, Code of Federal Regulations (15 C.F.R. 730 et 
        seq.) and maintained and amended under the authority of the 
        International Emergency Economic Powers Ac (50 U.S.C. 1701 et 
        seq.).
    (b) Waiver.--The President may waive, for 1-year renewable periods, 
the application of the sanctions authorized under section 104, 204, 
205, or 206 if the President submits to the appropriate congressional 
committees a written determination that the waiver meets 1 or more of 
the following requirements:
            (1) The waiver is important to the national security 
        interests of the United States.
            (2) The waiver will further the enforcement of this Act or 
        is for an important law enforcement purpose.
            (3) The waiver is for an important humanitarian purpose, 
        including any of the purposes described in section 4 of the 
        North Korean Human Rights Act of 2004 (22 U.S.C. 7802).
    (c) Financial Services for Humanitarian and Consular Activities.--
The President may promulgate such regulations, rules, and policies as 
may be necessary to facilitate the provision of financial services by a 
foreign financial institution that is not controlled by the Government 
of North Korea in support of the activities subject to exemption under 
this Act.

                  TITLE III--PROMOTION OF HUMAN RIGHTS

SEC. 301. INFORMATION TECHNOLOGY.

    Section 104 of the North Korean Human Rights Act of 2004 (22 U.S.C. 
7814) is amended by adding at the end the following:
    ``(d) Information Technology Study.--Not later than 180 days after 
the date of the enactment of the North Korea Sanctions Enforcement Act 
of 2014, the President shall submit a classified report to the 
appropriate congressional committees that sets forth a detailed plan 
for making unrestricted, unmonitored, and inexpensive electronic mass 
communications available to the people of North Korea.''.

SEC. 302. REPORT ON NORTH KOREAN PRISON CAMPS.

    (a) In General.--The Secretary of State shall submit a report to 
the appropriate congressional committees that describes, with respect 
to each political prison camp in North Korea, to the extent information 
is available--
            (1) the camp's estimated prisoner population;
            (2) the camp's geographical coordinates;
            (3) the reasons for the confinement of the prisoners;
            (4) the camp's primary industries and products, and the end 
        users of any goods produced in such camp;
            (5) the natural persons and agencies responsible for 
        conditions in the camp;
            (6) the conditions under which prisoners are confined, with 
        respect to the adequacy of food, shelter, medical care, working 
        conditions, and reports of ill-treatment of prisoners; and
            (7) imagery, to include satellite imagery of each such 
        camp, in a format that, if published, would not compromise the 
        sources and methods used by the intelligence agencies of the 
        United States to capture geospatial imagery.
    (b) Form.--The report required under subsection (a) may be included 
in the first report required to be submitted to Congress after the date 
of the enactment of this Act under sections 116(d) and 502B(b) of the 
Foreign Assistance Act of 1961 (22 U.S.C. 2151n(d) and 2304(b)) 
(relating to the annual human rights report).

SEC. 303. BRIEFING ON SERIOUS HUMAN RIGHTS ABUSES OR CENSORSHIP IN 
              NORTH KOREA.

    (a) In General.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of State shall providing a 
briefing, which may be classified, to the appropriate congressional 
committees that describes serious human rights abuses or serious 
censorship undertaken by the North Korean government in the most recent 
year.
    (b) Designation of Responsible Persons.--The President may 
designate under section 104(a) any person described in the briefing 
required under subsection (a) as responsible for serious human rights 
abuses or censorship in North Korea.
    (c) Sense of Congress.--It is the sense of Congress that the 
President should--
            (1) seek the prompt adoption by the United Nations Security 
        Council of a resolution calling for the blocking of the assets 
        of all persons responsible for severe human rights abuses or 
        censorship in North Korea; and
            (2) fully cooperate with the prosecution of any natural 
        person listed in the report required under subsection (a) 
        before any international tribunal that may be established to 
        prosecute persons responsible for severe human rights abuses or 
        censorship in North Korea.

                     TITLE IV--GENERAL AUTHORITIES

SEC. 401. SUSPENSION OF SANCTIONS AND OTHER MEASURES.

    (a) In General.--Any sanction or other measure required under title 
I, II, or III (or any amendment made by such titles) may be suspended 
for up to 1 year upon certification by the President to the appropriate 
congressional committees that the Government of North Korea has made 
progress toward--
            (1) verifiably ceasing its counterfeiting of United States 
        currency, including the surrender or destruction of specialized 
        materials and equipment used or particularly suitable for 
        counterfeiting;
            (2) taking steps toward financial transparency to comply 
        with generally accepted protocols to cease and prevent the 
        laundering of monetary instruments;
            (3) taking steps toward verification of its compliance with 
        applicable United Nations Security Council resolutions;
            (4) taking steps toward accounting for and repatriating the 
        citizens of other countries--
                    (A) abducted or unlawfully held captive by the 
                Government of North Korea; or
                    (B) detained in violation of the 1953 Armistice 
                Agreement;
            (5) accepting and beginning to abide by internationally 
        recognized standards for the distribution and monitoring of 
        humanitarian aid; and
            (6) taking verified steps to improve living conditions in 
        its political prison camps.
    (b) Renewal of Suspension.--The suspension described in subsection 
(a) may be renewed for additional, consecutive 180-day periods after 
the President certifies to the appropriate congressional committees 
that the Government of North Korea has continued to comply with the 
conditions described in subsection (a) during the previous year.

SEC. 402. TERMINATION OF SANCTIONS AND OTHER MEASURES.

    Any sanction or other measure required under title I, II, or III 
(or any amendment made by such titles) shall terminate on the date on 
which the President determines and certifies to the appropriate 
congressional committees that the Government of North Korea has--
            (1) met the requirements set forth in section 401; and
            (2) has made significant progress toward--
                    (A) completely, verifiably, and irreversibly 
                dismantling all of its nuclear, chemical, biological, 
                and radiological weapons programs, including all 
                programs for the development of systems designed in 
                whole or in part for the delivery of such weapons;
                    (B) releasing all political prisoners, including 
                the citizens of North Korea detained in North Korea's 
                political prison camps; and
                    (C)(i) ceasing its censorship of peaceful political 
                activity;
                    (ii) establishing an open, transparent, and 
                representative society; and
                    (iii) fully accounting for and repatriating United 
                States citizens (included deceased)--
                            (I) abducted or unlawfully held captive by 
                        the Government of North Korea; or
                            (II) detained in violation of the 1953 
                        Armistice Agreement.

SEC. 403. NORTH KOREA ENFORCEMENT AND HUMANITARIAN FUND.

    (a) Establishment.--There is established in the Treasury of the 
United States a fund to be known as the North Korea Enforcement and 
Humanitarian Fund (referred to in this section as the ``Fund'').
    (b) Deposits.--The President shall deposit into the Fund, and shall 
transfer and consolidate on the books of the Treasury in a special 
account for the purposes described in subsection (c), all revenues 
derived from--
            (1) fines and penalties assessed for violations of this 
        Act, or any regulation established under this Act, or for any 
        violation of an applicable Executive order; and
            (2) except as provided in section 105(c), all fines and 
        penalties paid in lieu of the commencement of, or paid in 
        settlement of, criminal or civil proceedings for a violation of 
        this Act or any regulation established under this Act, or for 
        any violation of an applicable Executive order.
    (c) Uses.--There are authorized to be appropriated from the Fund 
each fiscal year--
            (1) such amounts as may be specified in an Act making 
        appropriations for the administration of the Fund; and
            (2) without regard to fiscal year limitation, amounts not 
        exceeding--
                    (A) to carry out section 103 of the North Korea 
                Human Rights Act of 2004 (22 U.S.C. 7813), $3,000,000;
                    (B) to carry out section 104 of the North Korea 
                Human Rights Act of 2004 (22 U.S.C. 7814), $5,000,000;
                    (C) to carry out section 203 of the North Korea 
                Human Rights Act of 2004 (22 U.S.C. 7833), $5,000,000; 
                and
                    (D) to carry out subsection (d) of section 104 of 
                the North Korean Human Rights Act of 2004 (22 U.S.C. 
                7814) (as added by section 301 of this Act), 
                $2,000,000.
    (d) Satisfaction of Judgments.--
            (1) In general.--The President may direct a transfer of 
        funds from the Fund established under this section to the 
        United States district court in which any judgment has been 
        entered against the Government of North Korea pursuant to 
        section 1605A of title 28, United States Code, pursuant to 
        section 1083(c)(2) of the National Defense Authorization Act 
        for Fiscal Year 2008 (28 U.S.C. 1605A note), or pursuant to 
        section 201 of the Terrorism Risk Insurance Act of 2002 (28 
        U.S.C. 1610 note), such amounts as may be available after the 
        obligation of amounts appropriated pursuant to the 
        authorization of appropriations under subsection (c), for the 
        satisfaction of such judgments.
            (2) Rule of construction on standing by judgment 
        creditors.--Nothing in this section, any amendment made by 
        section 105, or section 306 shall be construed to create 
        standing by any judgment creditor to contest or intervene in a 
        forfeiture action under chapter 46 of title 18, United States 
        Code.
    (e) Briefing Required.--Not later than 180 days after the date of 
the enactment of this Act, and every 180 days thereafter, the President 
shall provide a briefing to the appropriate congressional committees 
describing amounts available in the Fund, amounts obligated and 
expended for each purpose, and any amounts transferred out of the Fund.
    (f) Transfer.--To prevent the accumulation of excessive surpluses 
in the Fund, in any fiscal year an amount specified in an annual 
appropriation law that is available after the obligation of amounts 
authorized to be appropriated in subsection (c) and authorized to be 
transferred in subsection (d), may be transferred out of the Fund and 
deposited, in equal proportions, into the funds established under 
section 524(c) of title 28, United States Code, and section 9703 of 
title 31, United States Code.
    (g) Sunset.--The Fund established under this section shall cease to 
exist on September 30, 2023, and any unexpended funds remaining in the 
Fund after such date shall be transferred in accordance with subsection 
(f).

SEC. 404. RULEMAKING.

    (a) In General.--The President is authorized to promulgate such 
rules and regulations as may be necessary to carry out the provisions 
of this Act (which may include regulatory exceptions), including under 
section 205 of the International Emergency Economic Powers Act (50 
U.S.C. 1704).
    (b) Rule of Construction.--Nothing in this Act or in any amendment 
made by this Act shall be construed to limit the authority of the 
President to designate or sanction persons pursuant to an applicable 
Executive order or otherwise pursuant to the International Emergency 
Economic Powers Act (50 U.S.C. 1701 et seq.).

SEC. 405. EFFECTIVE DATE.

    Except as otherwise provided in this Act, this Act, and the 
amendments made by this Act, shall be in effect during the 3-year 
period beginning on the date of the enactment of this Act.
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