[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1644 Engrossed in House (EH)]

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115th CONGRESS
  1st Session
                                H. R. 1644

_______________________________________________________________________

                                 AN ACT


 
  To enhance sanctions with respect to transactions relating to 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.

    This Act may be cited as the ``Korean Interdiction and 
Modernization of Sanctions Act''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definitions.
  TITLE I--SANCTIONS TO ENFORCE AND IMPLEMENT UNITED NATIONS SECURITY 
                 COUNCIL SANCTIONS AGAINST NORTH KOREA

Sec. 101. Modification and expansion of requirements for the 
                            designation of persons.
Sec. 102. Prohibition on indirect correspondent accounts.
Sec. 103. Limitations on foreign assistance to noncompliant 
                            governments.
Sec. 104. Amendments to enhance inspection authorities.
Sec. 105. Enforcing compliance with United Nations shipping sanctions 
                            against North Korea.
Sec. 106. Report on cooperation between North Korea and Iran.
Sec. 107. Report on implementation of United Nations Security Council 
                            resolutions by other governments.
Sec. 108. Briefing on measures to deny specialized financial messaging 
                            services to designated North Korean 
                            financial institutions.
    TITLE II--SANCTIONS WITH RESPECT TO HUMAN RIGHTS ABUSES BY THE 
                       GOVERNMENT OF NORTH KOREA

Sec. 201. Sanctions for forced labor and slavery overseas of North 
                            Koreans.
Sec. 202. Modifications to sanctions suspension and waiver authorities.
Sec. 203. Reward for informants.
Sec. 204. Determination on designation of North Korea as a state 
                            sponsor of terrorism.
                     TITLE III--GENERAL AUTHORITIES

Sec. 301. Authority to consolidate reports.
Sec. 302. Rule of construction.
Sec. 303. Regulatory authority.
Sec. 304. Limitation on funds.

SEC. 3. DEFINITIONS.

    (a) Amendments to Definitions in the North Korea Sanctions and 
Policy Enhancement Act of 2016.--
            (1) Applicable executive order.--Section 3(1)(A) of the 
        North Korea Sanctions and Policy Enhancement Act of 2016 (22 
        U.S.C. 9202(1)(A)) is amended--
                    (A) by striking ``or Executive Order 13694'' and 
                inserting ``Executive Order No. 13694''; and
                    (B) by inserting ``or Executive Order No. 13722 (50 
                U.S.C. 1701 note; relating to blocking the property of 
                the Government of North Korea and the Workers' Party of 
                Korea, and Prohibiting Certain Transactions With 
                Respect to North Korea),'' before ``to the extent''.
            (2) Applicable united nations security council 
        resolution.--Section 3(2)(A) of the North Korea Sanctions and 
        Policy Enhancement Act of 2016 (22 U.S.C. 9202(2)(A)) is 
        amended by striking ``or 2094 (2013)'' and inserting ``2094 
        (2013), 2270 (2016), or 2321 (2016)''.
            (3) Foreign person.--Section 3 of the North Korea Sanctions 
        and Policy Enhancement Act of 2016 (22 U.S.C. 9202) is 
        amended--
                    (A) by redesignating paragraphs (5) through (14) as 
                paragraphs (6) through (15), respectively; and
                    (B) by inserting after paragraph (4) the following 
                new paragraph:
            ``(5) Foreign person.--The term `foreign person' means--
                    ``(A) an individual who is not a United States 
                citizen or an alien lawfully admitted for permanent 
                residence to the United States; or
                    ``(B) an entity that is not a United States 
                person.''.
            (4) Luxury goods.--Paragraph (9) of section 3 of the North 
        Korea Sanctions and Policy Enhancement Act of 2016 (22 U.S.C. 
        9202), as redesignated by paragraph (3) of this subsection, is 
        amended--
                    (A) in subparagraph (A), by striking ``and'' at the 
                end;
                    (B) in subparagraph (B), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(C) also includes any items so designated under 
                an applicable United Nations Security Council 
                resolution.''.
            (5) North korean person.--Section 3 of the North Korea 
        Sanctions and Policy Enhancement Act of 2016 (22 U.S.C. 9202), 
        as amended by paragraph (3) of this subsection, is further 
        amended--
                    (A) by redesignating paragraphs (13) through (15) 
                as paragraphs (14) through (16), respectively; and
                    (B) by inserting after paragraph (12) the following 
                new paragraph:
            ``(13) North korean person.--The term `North Korean person' 
        means--
                    ``(A) a North Korean citizen or national; or
                    ``(B) an entity owned or controlled by the 
                Government of North Korea or by a North Korean citizen 
                or national.''.
    (b) Definitions for Purposes of This Act.--In this Act:
            (1) Applicable united nations security council resolution; 
        luxury goods.--The terms ``applicable United Nations Security 
        Council resolution'' and ``luxury goods'' have the meanings 
        given those terms, respectively, in section 3 of the North 
        Korea Sanctions and Policy Enhancement Act of 2016 (22 U.S.C. 
        9202), as amended by subsection (a).
            (2) Appropriate congressional committees; government of 
        north korea; united states person.--The terms ``appropriate 
        congressional committees'', ``Government of North Korea'', and 
        ``United States person'' have the meanings given those terms, 
        respectively, in section 3 of the North Korea Sanctions and 
        Policy Enhancement Act of 2016 (22 U.S.C. 9202).
            (3) Foreign person; north korean person.--The terms 
        ``foreign person'' and ``North Korean person'' have the 
        meanings given those terms, respectively, in paragraph (5) and 
        paragraph (13) of section 3 of the North Korea Sanctions and 
        Policy Enhancement Act of 2016 (22 U.S.C. 9202(5) and 
        9202(13)), as added by subsection (a).
            (4) Prohibited weapons program.--The term ``prohibited 
        weapons program'' means--
                    (A) any program related to the development of 
                nuclear, chemical, or biological weapons, and their 
                means of delivery, including ballistic missiles; and
                    (B) any program to develop related materials with 
                respect to a program described in subparagraph (A).

  TITLE I--SANCTIONS TO ENFORCE AND IMPLEMENT UNITED NATIONS SECURITY 
                 COUNCIL SANCTIONS AGAINST NORTH KOREA

SEC. 101. MODIFICATION AND EXPANSION OF REQUIREMENTS FOR THE 
              DESIGNATION OF PERSONS.

    (a) Expansion of Mandatory Designations.--Section 104(a) of the 
North Korea Sanctions and Policy Enhancement Act of 2016 (22 U.S.C. 
9214(a)) is amended--
            (1) in paragraph (9), by striking ``; or'' and inserting 
        ``or any defense article or defense service (as such terms are 
        defined in section 47 of the Arms Export Control Act (22 U.S.C. 
        2794));'';
            (2) by redesignating paragraph (10) as paragraph (15);
            (3) by inserting after paragraph (9) the following new 
        paragraphs:
            ``(10) knowingly, directly or indirectly, purchases or 
        otherwise acquires from North Korea any significant amounts of 
        gold, titanium ore, vanadium ore, copper, silver, nickel, zinc, 
        or rare earth minerals;
            ``(11) knowingly, directly or indirectly, sells or 
        transfers to North Korea any significant amounts of rocket, 
        aviation, or jet fuel (except for use by a civilian passenger 
        aircraft outside North Korea, exclusively for consumption 
        during its flight to North Korea or its return flight);
            ``(12) knowingly, directly or indirectly, provides 
        significant amounts of fuel or supplies, provides bunkering 
        services, or facilitates a significant transaction or 
        transactions to operate or maintain, a vessel or aircraft that 
        is designated under an applicable Executive order or an 
        applicable United Nations Security Council resolution, or that 
        is owned or controlled by a person designated under an 
        applicable Executive order or applicable United Nations 
        Security Council resolution;
            ``(13) knowingly, directly or indirectly, insures, 
        registers, facilitates the registration of, or maintains 
        insurance or a registration for, a vessel owned or controlled 
        by the Government of North Korea, except as specifically 
        approved by the United Nations Security Council;
            ``(14) knowingly, directly or indirectly, maintains a 
        correspondent account (as defined in section 201A(d)(1)) with 
        any North Korean financial institution, except as specifically 
        approved by the United Nations Security Council; or''; and
            (4) in paragraph (15), as so redesignated, by striking 
        ``(9)'' and inserting ``(14)''.
    (b) Expansion of Additional Discretionary Designations.--Section 
104(b)(1) of the North Korea Sanctions and Policy Enhancement Act of 
2016 (22 U.S.C. 9214(b)(1)) is amended--
            (1) in subparagraph (A), by striking ``pursuant to an 
        applicable United Nations Security Council resolution;'' and 
        inserting the following: ``pursuant to--
                            ``(i) an applicable United Nations Security 
                        Council resolution;
                            ``(ii) any regulation promulgated under 
                        section 404; or
                            ``(iii) any applicable Executive order;'';
            (2) in subparagraph (B)(iii), by striking ``or'' at the 
        end;
            (3) in subparagraph (C), by striking the period at the end 
        and inserting a semicolon; and
            (4) by adding at the end the following new subparagraphs:
                    ``(D) knowingly, directly or indirectly, purchased 
                or otherwise acquired from the Government of North 
                Korea significant quantities of coal, iron, or iron 
                ore, in excess of the limitations provided in 
                applicable United Nations Security Council resolutions;
                    ``(E) knowingly, directly or indirectly, purchased 
                or otherwise acquired significant types or amounts of 
                textiles from the Government of North Korea;
                    ``(F) knowingly facilitated a significant transfer 
                of funds or property of the Government of North Korea 
                that materially contributes to any violation of an 
                applicable United National Security Council resolution;
                    ``(G) knowingly, directly or indirectly, 
                facilitated a significant transfer to or from the 
                Government of North Korea of bulk cash, precious 
                metals, gemstones, or other stores of value not 
                described under subsection (a)(10);
                    ``(H) knowingly, directly or indirectly, sold, 
                transferred, or otherwise provided significant amounts 
                of crude oil, condensates, refined petroleum, other 
                types of petroleum or petroleum byproducts, liquified 
                natural gas, or other natural gas resources to the 
                Government of North Korea (except for heavy fuel oil, 
                gasoline, or diesel fuel for humanitarian use or as 
                excepted under subsection (a)(11));
                    ``(I) knowingly, directly or indirectly, engaged 
                in, facilitated, or was responsible for the online 
                commercial activities of the Government of North Korea, 
                including online gambling;
                    ``(J) knowingly, directly or indirectly, purchased 
                or otherwise acquired fishing rights from the 
                Government of North Korea;
                    ``(K) knowingly, directly or indirectly, provided 
                significant telephonic, telegraphic, telecommunications 
                or other data services, in whole or in part, into or 
                out of North Korea, in excess of services needed for 
                humanitarian or diplomatic purposes (other than 
                services that are excepted under section 203(b)(1) of 
                the International Emergency Economic Powers Act (50 
                U.S.C. 1702(b)(1)));
                    ``(L) knowingly, directly or indirectly, purchased 
                or otherwise acquired significant types or amounts of 
                food or agricultural products from the Government of 
                North Korea;
                    ``(M) knowingly, directly or indirectly, engaged 
                in, facilitated, or was responsible for the exportation 
                of workers from North Korea in a manner intended to 
                generate significant revenue, directly or indirectly, 
                for use by the Government of North Korea or by the 
                Workers' Party of Korea;
                    ``(N) knowingly conducted a significant transaction 
                or transactions in North Korea's transportation, 
                mining, energy, or financial services industries; or
                    ``(O) except as specifically approved by the United 
                Nations Security Council, and other than through a 
                correspondent account as described in subsection 
                (a)(14), knowingly facilitated the operation of any 
                branch, subsidiary, or office of a North Korean 
                financial institution.''.
    (c) Mandatory and Discretionary Asset Blocking.--Section 104(c) of 
the North Korea Sanctions and Policy Enhancement Act of 2016 (22 U.S.C. 
9214(c)) is amended--
            (1) by striking ``of a designated person'' and inserting 
        ``of a person designated under subsection (a)'';
            (2) by striking ``The President'' and inserting the 
        following:
            ``(1) Mandatory asset blocking.--The President''; and
            (3) by adding at the end the following new paragraph:
            ``(2) Discretionary asset blocking.--The President may also 
        exercise such powers, in the same manner and to the same extent 
        described in paragraph (1), with respect to a person designated 
        under subsection (b).''.
    (d) Designation of Additional Persons.--
            (1) In general.--Not later than 180 days after the date of 
        the enactment of this Act, the President shall submit to the 
        appropriate congressional committees a report including a 
        determination as to whether reasonable grounds exist, and an 
        explanation of the reasons for any determination that such 
        grounds do not exist, to designate, pursuant to section 104 of 
        the North Korea Sanctions and Policy Enhancement Act of 2016 
        (22 U.S.C. 9214), as amended by this section, each of the 
        following:
                    (A) The Korea Shipowners' Protection and Indemnity 
                Association, a North Korean insurance company, with 
                respect to facilitating imports, exports, and reexports 
                of arms and related materiel to and from North Korea, 
                or for other activities prohibited by such section 104.
                    (B) Chinpo Shipping Company (Private) Limited, a 
                Singapore corporation, with respect to facilitating 
                imports, exports, and reexports of arms and related 
                materiel to and from North Korea.
                    (C) The Central Bank of the Democratic People's 
                Republic of Korea, with respect to the sale of gold to, 
                the receipt of gold from, or the import or export of 
                gold by the Government of North Korea.
                    (D) Kumgang Economic Development Corporation (KKG), 
                with respect to being an entity controlled by Bureau 39 
                of the Workers' Party of the Government of North Korea.
                    (E) Sam Pa, also known as Xu Jinghua, Xu Songhua, 
                Sa Muxu, Samo, Sampa, or Sam King, and any entities 
                owned or controlled by such individual, with respect to 
                transactions with KKG.
                    (F) The Chamber of Commerce of the Democratic 
                People's Republic of Korea, with respect to the 
                exportation of workers in violation of section 
                104(a)(5) or of section 104(b)(1)(M) of such Act, as 
                amended by subsection (b) of this section.
            (2) Form.--The report submitted under paragraph (1) may 
        contain a classified annex.

SEC. 102. PROHIBITION ON INDIRECT CORRESPONDENT ACCOUNTS.

    (a) In General.--Title II of the North Korea Sanctions and Policy 
Enhancement Act of 2016 (22 U.S.C. 9221 et seq.) is amended by 
inserting after section 201 the following new section:

``SEC. 201A. PROHIBITION ON INDIRECT CORRESPONDENT ACCOUNTS.

    ``(a) In General.--Except as provided in subsection (b), if a 
United States financial institution has or obtains knowledge that a 
correspondent account established, maintained, administered, or managed 
by that institution for a foreign financial institution is being used 
by the foreign financial institution to provide significant financial 
services indirectly to any person, foreign government, or financial 
institution designated under section 104, the United States financial 
institution shall ensure that such correspondent account is no longer 
used to provide such services.
    ``(b) Exception.--A United States financial institution is 
authorized to process transfers of funds to or from North Korea, or for 
the direct or indirect benefit of any person, foreign government, or 
financial institution that is designated under section 104, only if the 
transfer--
            ``(1) arises from, and is ordinarily incident and necessary 
        to give effect to, an underlying transaction that has been 
        authorized by a specific or general license issued by the 
        Secretary of the Treasury; and
            ``(2) does not involve debiting or crediting a North Korean 
        account.
    ``(c) Definitions.--In this section:
            ``(1) Correspondent account.--The term `correspondent 
        account' has the meaning given that term in section 5318A of 
        title 31, United States Code.
            ``(2) United states financial institution.--The term 
        `United States financial institution' means has the meaning 
        given that term in section 510.310 of title 31, Code of Federal 
        Regulations, as in effect on the date of the enactment of this 
        section.
            ``(3) Foreign financial institution.--The term `foreign 
        financial institution' has the meaning given that term in 
        section 1010.605 of title 31, Code of Federal Regulations, as 
        in effect on the date of the enactment of this section.''.
    (b) Clerical Amendment.--The table of contents in section 1(b) of 
the North Korea Sanctions and Policy Enhancement Act of 2016 is amended 
by inserting after the item relating to section 201 the following new 
item:

``Sec. 201A. Prohibition on indirect correspondent accounts.''.

SEC. 103. LIMITATIONS ON FOREIGN ASSISTANCE TO NONCOMPLIANT 
              GOVERNMENTS.

    Section 203 of the North Korea Sanctions and Policy Enhancement Act 
of 2016 (22 U.S.C. 9223) is amended--
            (1) in subsection (b)--
                    (A) in the heading, by striking ``Transactions in 
                Lethal Military Equipment'' and inserting 
                ``Transactions in Defense Articles or Defense 
                Services'';
                    (B) in paragraph (1), by striking ``that provides 
                lethal military equipment to the Government of North 
                Korea'' and inserting ``that provides to or receives 
                from the Government of North Korea a defense article or 
                defense service, as such terms are defined in section 
                47 of the Arms Export Control Act (22 U.S.C. 2794), if 
                the President determines that a significant type or 
                amount of such article or service has been so provided 
                or received''; and
                    (C) in paragraph (2), by striking ``1 year'' and 
                inserting ``2 years'';
            (2) in subsection (d), by striking ``or emergency'' and 
        inserting ``maternal and child health, disease prevention and 
        response, or''; and
            (3) by adding at the end the following new subsection:
    ``(e) Report on Arms Trafficking Involving North Korea.--
            ``(1) In general.--Not later than 180 days after the date 
        of the enactment of this subsection, and annually thereafter 
        for 5 years, the Secretary of State shall submit to the 
        appropriate congressional committees a report that specifically 
        describes the compliance of foreign countries and other foreign 
        jurisdictions with the requirement to curtail the trade 
        described in subsection (b)(1).
            ``(2) Form.--The report required under paragraph (1) shall 
        be submitted in unclassified form but may contain a classified 
        annex.''.

SEC. 104. AMENDMENTS TO ENHANCE INSPECTION AUTHORITIES.

    Title II of the North Korea Sanctions and Policy Enhancement Act of 
2016 (22 U.S.C. 9221 et seq.), as amended by section 102 of this Act, 
is further amended by striking section 205 and inserting the following:

``SEC. 205. ENHANCED INSPECTION AUTHORITIES.

    ``(a) Report Required.--
            ``(1) In general.--Not later than 180 days after the date 
        of the enactment of this section, and annually thereafter for 5 
        years, the President shall submit to the appropriate 
        congressional committees a report--
                    ``(A) identifying the operators of foreign sea 
                ports and airports that knowingly--
                            ``(i) significantly fail to implement or 
                        enforce regulations to inspect ships, aircraft, 
                        cargo, or conveyances in transit to or from 
                        North Korea, as required by applicable United 
                        Nations Security Council resolutions;
                            ``(ii) facilitate the transfer, 
                        transshipment, or conveyance of significant 
                        types or quantities of cargo, vessels, or 
                        aircraft owned or controlled by persons 
                        designated under applicable United Nations 
                        Security Council resolutions; or
                            ``(iii) facilitate any of the activities 
                        described in section 104(a);
                    ``(B) describing the extent to which the 
                requirements of applicable United Nations Security 
                Council resolutions to de-register any vessel owned, 
                controlled, or operated by or on behalf of the 
                Government of North Korea have been implemented by 
                other foreign countries;
                    ``(C) describing the compliance of the Islamic 
                Republic of Iran with the sanctions mandated in 
                applicable United Nations Security Council resolutions;
                    ``(D) identifying vessels, aircraft, and 
                conveyances owned or controlled by the Reconnaissance 
                General Bureau of the Workers' Party of Korea; and
                    ``(E) describing the diplomatic and enforcement 
                efforts by the President to secure the full 
                implementation of the applicable United Nations 
                Security Council resolutions, as described in 
                subparagraphs (A) through (C).
            ``(2) Form.--The report required under paragraph (1) shall 
        be submitted in unclassified form but may contain a classified 
        annex.
    ``(b) Specific Findings.--Each report required under subsection (a) 
shall include specific findings with respect to the following ports and 
airports:
            ``(1) The ports of Dandong, Dalian, and any other port in 
        the People's Republic of China that the President deems 
        appropriate.
            ``(2) The ports of Abadan, Bandar-e-Abbas, Chabahar, 
        Bandar-e-Khomeini, Bushehr Port, Asaluyeh Port, Kish, Kharg 
        Island, Bandar-e-Lenge, and Khorramshahr, and Tehran Imam 
        Khomeini International Airport, in the Islamic Republic of 
        Iran.
            ``(3) The ports of Nakhodka, Vanino, and Vladivostok, in 
        the Russian Federation.
            ``(4) The ports of Latakia, Banias, and Tartous, and 
        Damascus International Airport, in the Syrian Arab Republic.
    ``(c) Enhanced Security Targeting Requirements.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        Secretary of Homeland Security may, using a layered approach, 
        require enhanced screening procedures to determine whether 
        physical inspections are warranted of any cargo bound for or 
        landed in the United States that--
                    ``(A) has been transported through a sea port or 
                airport the operator of which has been identified by 
                the President in accordance with subsection (a)(1) as 
                having repeatedly failed to comply with applicable 
                United Nations Security Council resolutions;
                    ``(B) is aboard a vessel or aircraft, or within a 
                conveyance that has, within the last 365 days, entered 
                the territory or waters of North Korea, or landed in 
                any of the sea ports or airports of North Korea; or
                    ``(C) is registered by a country or jurisdiction 
                whose compliance has been identified by the President 
                as deficient pursuant to subsection (a)(2).
            ``(2) Exception for food, medicine, and humanitarian 
        shipments.--Paragraph (1) shall not apply to any vessel, 
        aircraft, or conveyance that has entered the territory or 
        waters of North Korea, or landed in any of the sea ports or 
        airports of North Korea, exclusively for the purposes described 
        in section 208(b)(3)(B), or to import food, medicine, or 
        supplies into North Korea to meet the humanitarian needs of the 
        North Korean people.
    ``(d) 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, or subject to forfeiture, under--
            ``(1) chapter 46 of title 18, United States Code; or
            ``(2) part V of title IV of the Tariff Act of 1930 (19 
        U.S.C. 1581 et seq.).''.

SEC. 105. ENFORCING COMPLIANCE WITH UNITED NATIONS SHIPPING SANCTIONS 
              AGAINST NORTH KOREA.

    (a) In General.--The Ports and Waterways Safety Act (33 U.S.C. 1221 
et seq.) is amended by adding at the end the following new section:

``SEC. 16. PROHIBITION ON ENTRY AND OPERATION.

    ``(a) Prohibition.--
            ``(1) In general.--Except as otherwise provided in this 
        section, no vessel described in subsection (b) may enter or 
        operate in the navigable waters of the United States or 
        transfer cargo in any port or place under the jurisdiction of 
        the United States.
            ``(2) Limitations on application.--
                    ``(A) In general.--The prohibition under paragraph 
                (1) shall not apply with respect to--
                            ``(i) a vessel described in subsection 
                        (b)(1), if the Secretary of State determines 
                        that--
                                    ``(I) the vessel is owned or 
                                operated by or on behalf of a country 
                                the government of which the Secretary 
                                of State determines is closely 
                                cooperating with the United States with 
                                respect to implementing the applicable 
                                United Nations Security Council 
                                resolutions (as such term is defined in 
                                section 3 of the North Korea Sanctions 
                                and Policy Enhancement Act of 2016); or
                                    ``(II) it is in the national 
                                security interest not to apply the 
                                prohibition to such vessel; or
                            ``(ii) a vessel described in subsection 
                        (b)(2), if the Secretary of State determines 
                        that the vessel is no longer registered as 
                        described in that subsection.
                    ``(B) Notice.--Not later than 15 days after making 
                a determination under subparagraph (A), the Secretary 
                of State shall submit to the Committee on Foreign 
                Affairs and the Committee on Transportation and 
                Infrastructure of the House of Representatives and the 
                Committee on Foreign Relations and the Committee on 
                Commerce, Science, and Transportation of the Senate 
                written notice of the determination and the basis upon 
                which the determination was made.
                    ``(C) Publication.--The Secretary of State shall 
                publish a notice in the Federal Register of each 
                determination made under subparagraph (A).
    ``(b) Vessels Described.--A vessel referred to in subsection (a) is 
a foreign vessel for which a notice of arrival is required to be filed 
under section 4(a)(5), and that--
            ``(1) is on the most recent list of vessels published in 
        Federal Register under subsection (c)(2); or
            ``(2) more than 180 days after the publication of such 
        list, is knowingly registered, pursuant to the 1958 Convention 
        on the High Seas entered into force on September 30, 1962, by a 
        government the agents or instrumentalities of which are 
        maintaining a registration of a vessel that is included on such 
        list.
    ``(c) Information and Publication.--The Secretary of the department 
in which the Coast Guard is operating, with the concurrence of the 
Secretary of State, shall--
            ``(1) maintain timely information on the registrations of 
        all foreign vessels over 300 gross tons that are known to be--
                    ``(A) owned or operated by or on behalf of the 
                Government of North Korea or a North Korean person;
                    ``(B) owned or operated by or on behalf of any 
                country in which a sea port is located, the operator of 
                which the President has identified in the most recent 
                report submitted under section 205(a)(1)(A) of the 
                North Korea Sanctions and Policy Enhancement Act of 
                2016; or
                    ``(C) owned or operated by or on behalf of any 
                country identified by the President as a country that 
                has not complied with the applicable United Nations 
                Security Council resolutions (as such term is defined 
                in section 3 of such Act); and
            ``(2) not later than 180 days after the date of the 
        enactment of this section, and periodically thereafter, publish 
        in the Federal Register a list of the vessels described in 
        paragraph (1).
    ``(d) Notification of Governments.--
            ``(1) In general.--The Secretary of State shall notify each 
        government, the agents or instrumentalities of which are 
        maintaining a registration of a foreign vessel that is included 
        on a list published under subsection (c)(2), not later than 30 
        days after such publication, that all vessels registered under 
        such government's authority are subject to subsection (a).
            ``(2) Additional notification.--In the case of a government 
        that continues to maintain a registration for a vessel that is 
        included on such list after receiving an initial notification 
        under paragraph (1), the Secretary shall issue an additional 
        notification to such government not later than 120 days after 
        the publication of a list under subsection (c)(2).
    ``(e) Notification of Vessels.--Upon receiving a notice of arrival 
under section 4(a)(5) from a vessel described in subsection (b), the 
Secretary of the department in which the Coast Guard is operating shall 
notify the master of such vessel that the vessel may not enter or 
operate in the navigable waters of the United States or transfer cargo 
in any port or place under the jurisdiction of the United States, 
unless--
            ``(1) the Secretary of State has made a determination under 
        subsection (a)(2); or
            ``(2) the Secretary of the department in which the Coast 
        Guard is operating allows provisional entry of the vessel, or 
        transfer of cargo from the vessel, under subsection (f).
    ``(f) Provisional Entry or Cargo Transfer.--Notwithstanding any 
other provision of this section, the Secretary of the department in 
which the Coast Guard is operating may allow provisional entry of, or 
transfer of cargo from, a vessel, if such entry or transfer is 
necessary for the safety of the vessel or persons aboard.
    ``(g) Right of Innocent Passage and Right of Transit Passage.--This 
section shall not be construed as authority to restrict the right of 
innocent passage or the right of transit passage as recognized under 
international law.
    ``(h) Foreign Vessel Defined.--In this section, the term `foreign 
vessel' has the meaning given that term in section 110 of title 46, 
United States Code.''.
    (b) Conforming Amendments.--
            (1) Special powers.--Section 4(b)(2) of the Ports and 
        Waterways Safety Act (33 U.S.C. 1223(b)(2)) is amended by 
        inserting ``or 16'' after ``section 9''.
            (2) Denial of entry.--Section 13(e) of the Ports and 
        Waterways Safety Act (33 U.S.C. 1232(e)) is amended by striking 
        ``section 9'' and inserting ``section 9 or 16''.

SEC. 106. REPORT ON COOPERATION BETWEEN NORTH KOREA AND IRAN.

    (a) In General.--Not later than 180 days after the date of the 
enactment of this Act, and annually thereafter for 5 years, the 
President shall submit to the appropriate congressional committees a 
report that includes--
            (1) an assessment of the extent of cooperation (including 
        through the transfer of goods, services, technology, or 
        intellectual property) between North Korea and Iran relating to 
        their respective nuclear, ballistic missile development, 
        chemical or biological weapons development, or conventional 
        weapons programs;
            (2) the names of any Iranian or North Korean persons that 
        have knowingly engaged in or directed--
                    (A) the provision of material support to such 
                programs; or
                    (B) the exchange of information between North Korea 
                and Iran with respect to such programs;
            (3) the names of any other foreign persons that have 
        facilitated the activities described in paragraph (1); and
            (4) a determination whether any of the activities described 
        in paragraphs (1) and (2) violate United Nations Security 
        Council Resolution 2231 (2015).
    (b) Form.--The report required under subsection (a) shall be 
submitted in unclassified form but may contain a classified annex.

SEC. 107. REPORT ON IMPLEMENTATION OF UNITED NATIONS SECURITY COUNCIL 
              RESOLUTIONS BY OTHER GOVERNMENTS.

    (a) In General.--Not later than 180 days after the date of the 
enactment of this Act, and annually thereafter for 5 years, the 
President shall submit to the appropriate congressional committees a 
report that evaluates the degree to which the governments of other 
countries have knowingly failed to--
            (1) close the representative offices of persons designated 
        under applicable United Nations Security Council resolutions;
            (2) expel any North Korean nationals, including diplomats, 
        working on behalf of such persons;
            (3) prohibit the opening of new branches, subsidiaries, or 
        representative offices of North Korean financial institutions 
        within the jurisdictions of such governments; or
            (4) expel any representatives of North Korean financial 
        institutions.
    (b) Form.--The report required under subsection (a) shall be 
submitted in unclassified form but may contain a classified annex.

SEC. 108. BRIEFING ON MEASURES TO DENY SPECIALIZED FINANCIAL MESSAGING 
              SERVICES TO DESIGNATED NORTH KOREAN FINANCIAL 
              INSTITUTIONS.

    (a) In General.--Not later than 180 days after the date of the 
enactment of this Act, and every 180 days thereafter for 5 years, the 
President shall provide to the appropriate congressional committees a 
briefing that includes the following information:
            (1) A list of each person or foreign government the 
        President has identified that directly provides specialized 
        financial messaging services to, or enables or facilitates 
        direct or indirect access to such messaging services for--
                    (A) any North Korean financial institution (as such 
                term is defined in section 3 of the North Korea 
                Sanctions and Policy Enhancement Act of 2016 (22 U.S.C. 
                9202)) designated under an applicable United Nations 
                Security Council resolution; or
                    (B) any other North Korean person, on behalf of 
                such a North Korean financial institution.
            (2) A detailed assessment of the status of efforts by the 
        Secretary of the Treasury to work with the relevant authorities 
        in the home jurisdictions of such specialized financial 
        messaging providers to end such provision or access.
    (b) Form.--The briefing required under subsection (a) may be 
classified.

    TITLE II--SANCTIONS WITH RESPECT TO HUMAN RIGHTS ABUSES BY THE 
                       GOVERNMENT OF NORTH KOREA

SEC. 201. SANCTIONS FOR FORCED LABOR AND SLAVERY OVERSEAS OF NORTH 
              KOREANS.

    (a) Sanctions for Trafficking in Persons.--
            (1) In general.--Section 302(b) of the North Korea 
        Sanctions and Policy Enhancement Act of 2016 (22 U.S.C. 
        9241(b)) is amended--
                    (A) in paragraph (1), by striking ``and'' at the 
                end;
                    (B) in paragraph (2), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(3) a list of foreign persons that knowingly employ North 
        Korean laborers, as described in section 104(b)(1)(M).''.
            (2) Additional determinations; reports.--With respect to 
        any country identified in section 302(b)(2) of the North Korea 
        Sanctions and Policy Enhancement Act of 2016 (22 U.S.C. 
        9241(b)(2)), as amended by paragraph (1), the report required 
        under section 302(a) of such Act shall--
                    (A) include a determination whether each person 
                identified in section 302(b)(3) of such Act (as amended 
                by paragraph (1)) who is a national or a citizen of 
                such identified country meets the criteria for 
                sanctions under--
                            (i) section 111 of the Trafficking Victims 
                        Protection Act of 2000 (22 U.S.C. 7108) 
                        (relating to the prevention of trafficking in 
                        persons); or
                            (ii) section 104(a) or 104(b)(1) of the 
                        North Korea Sanctions and Policy Enhancement 
                        Act of 2016 (22 U.S.C. 9214(a)), as amended by 
                        section 101 of this Act;
                    (B) be included in the report required under 
                section 110(b) of the Trafficking Victims Protection 
                Act of 2000 (22 U.S.C. 7107(b)) (relating to the annual 
                report on trafficking in persons); and
                    (C) be considered in any determination that the 
                government of such country has made serious and 
                sustained efforts to eliminate severe forms of 
                trafficking in persons, as such term is defined for 
                purposes of the Trafficking Victims Protection Act of 
                2000.
    (b) Sanctions on Foreign Persons That Employ North Korean Labor.--
            (1) In general.--Title III of the North Korea Sanctions and 
        Policy Enhancement Act of 2016 (22 U.S.C. 9241 et seq.) is 
        amended by inserting after section 302 the following new 
        sections:

``SEC. 302A. REBUTTABLE PRESUMPTION APPLICABLE TO GOODS MADE WITH NORTH 
              KOREAN LABOR.

    ``(a) In General.--Except as provided in subsection (b), any 
significant goods, wares, articles, and merchandise mined, produced, or 
manufactured wholly or in part by the labor of North Korean nationals 
or citizens shall be deemed to be prohibited under section 307 of the 
Tariff Act of 1930 (19 U.S.C. 1307) and shall not be entitled to entry 
at any of the ports of the United States.
    ``(b) Exception.--The prohibition described in subsection (a) shall 
not apply if the Commissioner of U.S. Customs and Border Protection 
finds, by clear and convincing evidence, that the goods, wares, 
articles, or merchandise described in such paragraph were not produced 
with convict labor, forced labor, or indentured labor under penal 
sanctions.

``SEC. 302B. SANCTIONS ON FOREIGN PERSONS EMPLOYING NORTH KOREAN LABOR.

    ``(a) In General.--Except as provided in subsection (c), the 
President shall designate any person identified under section 302(b)(3) 
for the imposition of sanctions under subsection (b).
    ``(b) Imposition of Sanctions.--
            ``(1) In general.--The President shall impose the sanctions 
        described in paragraph (2) with respect to any person 
        designated under subsection (a).
            ``(2) Sanctions described.--The sanctions described in this 
        paragraph are sanctions pursuant to the International Emergency 
        Economic Powers Act (50 U.S.C. 1701 et seq.) to block and 
        prohibit all transactions in property and interests in property 
        of a person designated under subsection (a), 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.
    ``(c) Exception.--
            ``(1) In general.--A person may not be designated under 
        subsection (a) if the President certifies to the appropriate 
        congressional committees that the President has received 
        reliable assurances from such person that--
                    ``(A) the employment of North Korean laborers does 
                not result in the direct or indirect transfer of 
                convertible currency, luxury goods, or other stores of 
                value to the Government of North Korea;
                    ``(B) all wages and benefits are provided directly 
                to the laborers, and are held, as applicable, in 
                accounts within the jurisdiction in which they reside 
                in locally denominated currency; and
                    ``(C) the laborers are subject to working 
                conditions consistent with international standards.
            ``(2) Recertification.--Not later than 180 days after the 
        date on which the President transmits to the appropriate 
        congressional committees an initial certification under 
        paragraph (1), and every 180 days thereafter, the President 
        shall--
                    ``(A) transmit a recertification stating that the 
                conditions described in such paragraph continue to be 
                met; or
                    ``(B) if such recertification cannot be 
                transmitted, impose the sanctions described in 
                subsection (b) beginning on the date on which the 
                President determines that such recertification cannot 
                be transmitted.''.
            (2) Clerical amendment.--The table of contents in section 
        1(b) of the North Korea Sanctions and Policy Enhancement Act of 
        2016 is amended by inserting after the item relating to section 
        302 the following new items:

``Sec. 302A. Rebuttable presumption applicable to goods made with North 
                            Korean labor.
``Sec. 302B. Sanctions on foreign persons employing North Korean 
                            labor.''.

SEC. 202. MODIFICATIONS TO SANCTIONS SUSPENSION AND WAIVER AUTHORITIES.

    (a) Exemptions.--Section 208(a) of the North Korea Sanctions and 
Policy Enhancement Act of 2016 (22 U.S.C. 9228(a)) is amended in the 
matter preceding paragraph (1)--
            (1) by inserting ``201A,'' after ``104,''; and
            (2) by inserting ``302A, 302B,'' after ``209,''.
    (b) Humanitarian Waiver.--Section 208(b) of the North Korea 
Sanctions and Policy Enhancement Act of 2016 (22 U.S.C. 9228(b)(1)) is 
amended--
            (1) by inserting ``201A,'' after ``104,'' in each place it 
        appears; and
            (2) by inserting ``302A, 302B,'' after ``209(b),'' in each 
        place it appears.
    (c) Waiver.--Section 208(c) of the North Korea Sanctions and Policy 
Enhancement Act of 2016 (22 U.S.C. 9228(c)) is amended in the matter 
preceding paragraph (1)--
            (1) by inserting ``201A,'' after ``104,''; and
            (2) by inserting ``302A, 302B,'' after ``209(b),''.

SEC. 203. REWARD FOR INFORMANTS.

    Section 36(b) of the State Department Basic Authorities Act of 1956 
(22 U.S.C. 2708(b)), is amended--
            (1) in paragraph (9), by striking ``or'' at the end;
            (2) in paragraph (10), by striking the period at the end 
        and inserting a semicolon; and
            (3) by adding at the end the following new paragraphs:
            ``(11) the identification or location of any person who, 
        while acting at the direction of or under the control of a 
        foreign government, aids or abets a violation of section 1030 
        of title 18, United States Code; or
            ``(12) the disruption of financial mechanisms of any person 
        who has engaged in the conduct described in sections 104(a) or 
        104(b)(1) of the North Korea Sanctions and Policy Enhancement 
        Act of 2016 (22 U.S.C. 2914(a) or (b)(1)).''.

SEC. 204. DETERMINATION ON DESIGNATION OF NORTH KOREA AS A STATE 
              SPONSOR OF TERRORISM.

    (a) Determination.--
            (1) In general.--Not later than 90 days after the date of 
        the enactment of this Act, the Secretary of State shall submit 
        to the appropriate congressional committees a determination 
        whether North Korea meets the criteria for designation as a 
        state sponsor of terrorism.
            (2) Form.--The determination required by paragraph (1) 
        shall be submitted in unclassified form but may include a 
        classified annex, if appropriate.
    (b) State Sponsor of Terrorism Defined.--For purposes of this 
section, the term ``state sponsor of terrorism'' means a country the 
government of which the Secretary of State has determined, for purposes 
of section 6(j) of the Export Administration Act of 1979 (50 U.S.C. 
4605(j)) (as in effect pursuant to the International Emergency Economic 
Powers Act), section 620A of the Foreign Assistance Act of 1961 (22 
U.S.C. 2371), section 40 of the Arms Export Control Act (22 U.S.C. 
2780), or any other provision of law, is a government that has 
repeatedly provided support for acts of international terrorism.

                     TITLE III--GENERAL AUTHORITIES

SEC. 301. AUTHORITY TO CONSOLIDATE REPORTS.

    Any reports required to be submitted to the appropriate 
congressional committees under this Act or any amendment made by this 
Act that are subject to deadlines for submission consisting of similar 
units of time may be consolidated into a single report that is 
submitted to appropriate congressional committees pursuant to the 
earlier of such deadlines. The consolidated reports must contain all 
information required under this Act or any amendment made by this Act, 
in addition to all other elements mandated by previous law.

SEC. 302. RULE OF CONSTRUCTION.

    Nothing in this Act shall be construed to limit--
            (1) the authority or obligation of the President to apply 
        the sanctions described in section 104 of the North Korea 
        Sanctions and Policy Enhancement Act of 2016 (22 U.S.C. 9214), 
        as amended by section 101 of this Act, with regard to persons 
        who meet the criteria for designation under such section, or in 
        any other provision of law; or
            (2) the authorities of the President pursuant to the 
        International Emergency Economic Powers Act (50 U.S.C. 1701 et 
        seq.).

SEC. 303. REGULATORY AUTHORITY.

    (a) In General.--The President shall, not later than 180 days after 
the date of the enactment of this Act, promulgate regulations as 
necessary for the implementation of this Act and the amendments made by 
this Act.
    (b) Notification to Congress.--Not fewer than 10 days before the 
promulgation of a regulation under subsection (a), the President shall 
notify and provide to the appropriate congressional committees the 
proposed regulation, specifying the provisions of this Act or the 
amendments made by this Act that the regulation is implementing.

SEC. 304. LIMITATION ON FUNDS.

    No additional funds are authorized to carry out the requirements of 
this Act or of the amendments made by this Act. Such requirements shall 
be carried out using amounts otherwise authorized.

            Passed the House of Representatives May 4, 2017.

            Attest:

                                                                 Clerk.
115th CONGRESS

  1st Session

                               H. R. 1644

_______________________________________________________________________

                                 AN ACT

  To enhance sanctions with respect to transactions relating to North 
                     Korea, and for other purposes.