[Congressional Record Volume 160, Number 119 (Monday, July 28, 2014)]
[House]
[Pages H6877-H6886]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
NORTH KOREA SANCTIONS ENFORCEMENT ACT OF 2014
Mr. ROYCE. Mr. Speaker, I move to suspend the rules and pass the bill
(H.R. 1771) to improve the enforcement of sanctions against the
Government of North Korea, and for other purposes, as amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 1771
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.
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. Prohibited conduct and mandatory and discretionary
designation and sanctions authorities.
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.
[[Page H6878]]
Sec. 203. Proliferation prevention sanctions.
Sec. 204. Procurement sanctions.
Sec. 205. Enhanced inspections authorities.
Sec. 206. Travel sanctions.
Sec. 207. Exemptions, waivers, and removals of designation.
Sec. 208. Sense of Congress on enforcement of sanctions on North Korea.
TITLE III--PROMOTION OF HUMAN RIGHTS
Sec. 301. Information technology.
Sec. 302. Report on North Korean prison camps.
Sec. 303. Report on persons who are responsible for 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. Regulations.
Sec. 404. Effective date.
SEC. 2. FINDINGS.
Congress finds the following:
(1) The Government of North Korea has repeatedly violated
its commitments to the complete, verifiable, irreversible
dismantlement of its nuclear weapons programs, and 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 prohibited arms sales, narcotics trafficking, the
counterfeiting of United States currency, and the
counterfeiting of intellectual property of United States
persons.
(4) The Government of North Korea has, both historically
and recently, repeatedly sponsored acts of international
terrorism, including attempts to assassinate defectors and
human rights activists, repeated threats of violence against
foreign persons, leaders, newspapers, and cities, and the
shipment of weapons to terrorists.
(5) North Korea has unilaterally withdrawn from the 1953
Armistice Agreement that ended the Korean War, and committed
provocations against South Korea in 2010 by sinking the
warship Cheonan and killing 46 of her crew, and by shelling
Yeonpyeong Island, killing four South Koreans.
(6) North Korea maintains a system of brutal political
prison camps that contain as many as 120,000 men, women, and
children, who live in atrocious living conditions with
insufficient food, clothing, and medical care, and under
constant fear of torture or arbitrary execution.
(7) The Congress reaffirms the purposes of the North Korean
Human Rights Act of 2004 contained in section 4 of such Act
(22 U.S.C. 7802).
(8) North Korea has prioritized weapons programs and the
procurement of luxury goods, in defiance of United Nations
Security Council resolutions, and in gross disregard of the
needs of its people.
(9) 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, aid and
abet North Korea's misuse of the international financial
system, and also violate the intent of relevant United
Nations Security Council resolutions.
(10) The Government of North Korea's conduct poses an
imminent threat to the security of the United States and its
allies, to the global economy, to the safety of members of
the United States armed forces, to the integrity of the
global financial system, to the integrity of global
nonproliferation programs, and to the people of North Korea.
(11) The Congress seeks, through this legislation, to use
nonmilitary means to address this crisis, to provide
diplomatic leverage to negotiate necessary changes in North
Korea's conduct, and to ease the suffering of the people of
North Korea.
SEC. 3. DEFINITIONS.
In this Act:
(1) Applicable executive order.--The term ``applicable
Executive order'' means--
(A) Executive Order 13382 (2005), 13466 (2008), 13551
(2010), or 13570 (2011), to the extent that such Executive
order authorizes the imposition of sanctions on persons for
conduct, or 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 authorizes the imposition of sanctions on persons for
conduct, or 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 (2006),
1718 (2006), 1874 (2009), 2087 (2013), or 2094 (2013); or
(B) any United Nations Security Council resolution adopted
on or after the date of the enactment of this Act, to the
extent that such resolution authorizes the imposition of
sanctions on persons for conduct, or 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 Affairs, the Committee on Ways
and Means, and the Committee on Financial Services of the
House of Representatives; and
(B) the Committee on Foreign Relations and the Committee on
Banking, Housing, and Urban Affairs of the Senate.
(4) Designated person.--The term ``designated person''
means a person designated under subsection (a) or (b) of
section 104 for purposes of applying one or more of the
sanctions described in title I or II of this Act 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 the Democratic People's Republic
of Korea.
(6) International terrorism.--The term ``international
terrorism'' has the meaning given such term in section 140(d)
of the Foreign Relations Authorization Act, Fiscal Years 1988
and 1989 (22 U.S.C. 2656f(d)).
(7) Luxury goods.--The term ``luxury goods'' has the
meaning given such term in subpart 746.4 of title 15, Code of
Federal Regulations, and includes the items listed in
Supplement No. 1 to such regulation, and any similar items.
(8) Monetary instrument.--The term ``monetary instrument''
has the meaning given such term under section 5312 of title
31, United States Code.
(9) North korean financial institution.--The term ``North
Korean financial institution'' means--
(A) a financial institution organized under the laws of
North Korea or any jurisdiction within North Korea (including
a foreign branch of such institution);
(B) any financial institution located in North Korea,
except as may be excluded from such definition by the
President in accordance with section 207(d);
(C) any financial institution, wherever located, owned or
controlled by the Government of North Korea; and
(D) any financial institution, wherever located, owned or
controlled by a financial institution described in
subparagraph (A), (B), or (C).
(10) Other stores of value.--The term ``other stores of
value'' means--
(A) prepaid access devices, tangible or intangible prepaid
access devices, or other instruments or devices for the
storage or transmission of value, as 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 section 1027.100 of title 31, Code of
Federal Regulations.
(11) Person.--The term ``person'' means--
(A) a natural person;
(B) a corporation, business association, partnership,
society, trust, financial institution, insurer, underwriter,
guarantor, and any other business organization, any other
nongovernmental entity, organization, or group, and any
governmental entity operating as a business enterprise; and
(C) any successor to any entity described in subparagraph
(B).
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 states to fully and promptly implement
United Nations Security Council Resolution 2094 (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.
The President shall 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).
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, to
[[Page H6879]]
include the following, to the extent the information is
available:
(1) The principal foreign assets and sources of foreign
income of the Government of North Korea.
(2) A list of the persons designated under subsections (a)
and (b) of section 104.
(3) A list of the persons with respect to which sanctions
were waived or removed under section 207.
(4) A summary of any diplomatic efforts made in accordance
with section 202(b) and of the progress realized from such
efforts, including efforts to encourage the European Union
and other states and jurisdictions to sanction and block the
assets of the Foreign Trade Bank of North Korea and Daedong
Credit Bank.
SEC. 104. PROHIBITED CONDUCT AND MANDATORY AND DISCRETIONARY
DESIGNATION AND SANCTIONS AUTHORITIES.
(a) Prohibited Conduct and Mandatory Designation and
Sanctions Authority.--
(1) Conduct described.--Except as provided in section 207,
the President shall designate under this subsection any
person the President determines to--
(A) have knowingly engaged in significant activities or
transactions with the Government of North Korea that have
materially contributed to the proliferation of weapons of
mass destruction or their means of delivery (including
missiles capable of delivering such weapons), including any
efforts to manufacture, acquire, possess, develop, transport,
transfer, or use such items;
(B) have knowingly imported, exported, or reexported to,
into, or from North Korea any arms or related materiel,
whether directly or indirectly;
(C) have knowingly provided significant training, advice,
or other services or assistance, or engaged in transactions,
related to the manufacture, maintenance, or use of any arms
or related materiel to be imported, exported, or reexported
to, into, or from North Korea, or following their
importation, exportation, or reexportation to, into, or from
North Korea, whether directly or indirectly;
(D) have knowingly, directly or indirectly, imported,
exported, or reexported significant luxury goods to or into
North Korea;
(E) have knowingly engaged in or been responsible for
censorship by the Government of North Korea, including
prohibiting, limiting, or penalizing the exercise of freedom
of expression or assembly, limiting access to print or
broadcast media, or the facilitation or support of
intentional frequency manipulation that would jam or restrict
an international signal;
(F) have knowingly engaged in or been responsible for
serious human rights abuses by the Government of North Korea,
including torture or cruel, inhuman, or degrading treatment
or punishment, prolonged detention without charges and trial,
causing the disappearance of persons by the abduction and
clandestine detention of those persons, and other denial of
the right to life, liberty, or the security of a person;
(G) have knowingly, directly or indirectly, engaged in
significant acts of money laundering, the counterfeiting of
goods or currency, bulk cash smuggling, narcotics
trafficking, or other illicit activity that involves or
supports the Government of North Korea or any senior official
thereof, whether directly or indirectly; or
(H) have knowingly attempted to engage in any of the
conduct described in subparagraphs (A) through (G) of this
paragraph.
(2) Effect of designation.--With respect to any person
designated under this subsection, the President--
(A) shall exercise the authorities of the International
Emergency Economic Powers Act (50 U.S.C. 1705 et seq.)
without regard to section 202 of such Act to block all
property and interests in property of any person designated
under this subsection that are in the United States, that
hereafter come within the United States, or that are or
hereafter come within the possession or control of any United
States person, including any overseas branch; and
(B) may apply any of the sanctions described in section
204, 205(c), and 206.
(3) Penalties.--The penalties provided for in section 206
of the International Emergency Economic Powers Act (50 U.S.C.
1705) shall apply to a person who violates, attempts to
violate, conspires to violate, or causes a violation of any
prohibition of 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 that Act (50 U.S.C. 1705(a)).
(b) Discretionary Designation and Sanctions Authority.--
(1) Conduct described.--Except as provided in section 207,
the President may designate under this subsection any person
the President determines to--
(A) have knowingly engaged in, contributed to, assisted,
sponsored, or provided financial, material or technological
support for, or goods and services in support of, any
violation of, or evasion of, an applicable United Nations
Security Council resolution;
(B) have knowingly facilitated the transfer of any funds,
financial assets, or economic resources of, or property or
interests in property of a person designated under an
applicable Executive order, or by the United Nations Security
Council pursuant to an applicable United Nations Security
Council resolution;
(C) have knowingly facilitated the transfer of any funds,
financial assets, or economic resources, or any property or
interests in property derived from, involved in, or that has
materially contributed to conduct prohibited by subsection
(a) or an applicable United Nations Security Council
resolution;
(D) have knowingly facilitated any transaction that
contributes materially to a violation of an applicable United
Nations Security Council resolution;
(E) have knowingly facilitated any transactions in cash or
monetary instruments or other stores of value, including
through cash couriers transiting to or from North Korea, used
to facilitate any conduct prohibited by an applicable United
Nations Security Council resolution;
(F) have knowingly contributed to the bribery of an
official of the Government of North Korea, the
misappropriation, theft, or embezzlement of public funds by,
or for the benefit of, an official of the Government of North
Korea, or the use of any proceeds of any such conduct; or
(G) have knowingly and materially assisted, sponsored, or
provided financial, material, or technological support for,
or goods or services to or in support of, the conduct
described in subparagraphs (A) through (F) of this paragraph
or the conduct described in subparagraphs (A) through (G) of
subsection (a)(1).
(2) Effect of designation.--With respect to any person
designated under this subsection, the President--
(A) may apply the sanctions described in section 204;
(B) may apply any of the special measures described in
section 5318A of title 31, United States Code;
(C) may prohibit any transactions in foreign exchange that
are subject to the jurisdiction of the United States and in
which such person has any interest;
(D) may 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 are subject to the jurisdiction of the United States
and involve any interest of the person; and
(E) may exercise the authorities of the International
Emergency Economic Powers Act (50 U.S.C. 1705 et seq.)
without regard to section 202 of such Act to block any
property and interests in property of the person that are in
the United States, that hereafter come within the United
States, or that are or hereafter come within the possession
or control of any United States person, including any
overseas branch.
(c) Blocking of All Property and Interests in Property of
the Government of North Korea.--The President shall exercise
the authorities of the International Emergency Economic
Powers Act (50 U.S.C. 1705 et seq.) without regard to section
202 of such Act to block all property and interests in
property of the Government of North Korea that are in the
United States, that hereafter come within the United States,
or that are or hereafter come within the possession or
control of any United States person, including any overseas
branch.
(d) Application.--The designation of a person and the
blocking of property and interests in property under
subsection (a), (b), or (c) shall also apply with respect to
a person who is determined to be owned or controlled by, or
to have acted or purported to act 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, in the
determination of the President, lacks sufficient financial
controls to ensure that such transaction will not facilitate
any of the conduct described in subsection (a) or subsection
(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 new subparagraph:
``(I) Any property, real or personal, 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--
(1) by striking ``or the International Emergency Economic
Powers Act'' and inserting ``, the International Emergency
Economic Powers Act''; and
(2) by adding at the end before the semicolon the
following: ``, or the North Korea Sanctions Enforcement Act
of 2014''.
(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''.
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 Undersecretary of the Treasury for Terrorism and
Financial Intelligence, who is
[[Page H6880]]
responsible for safeguarding the financial system against
illicit use, money laundering, terrorist financing, and the
proliferation of weapons of mass destruction, has repeatedly
expressed concern about North Korea's misuse of the
international financial system as follows:
(A) In 2006, the Undersecretary stated that, given North
Korea's ``counterfeiting of U.S. currency, narcotics
trafficking and use of accounts worldwide to conduct
proliferation-related transactions, the line between illicit
and licit North Korean money is nearly invisible'' and urged
financial institutions worldwide to ``think carefully about
the risks of doing any North Korea-related business.''.
(B) In 2011, the Undersecretary stated that ``North Korea
remains intent on engaging in proliferation, selling arms as
well as bringing in material,'' and was ``aggressively
pursuing the effort to establish front companies.''.
(C) In 2013, the Undersecretary stated, 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 that 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 to protect against
correspondent relationships being used to bypass or evade
countermeasures and risk mitigation practices, and take into
account money laundering and terrorist financing risks when
considering requests by North Korean financial institutions
to open branches and subsidiaries in their jurisdiction.
(3) On March 7, 2013, the United Nations Security Council
unanimously adopted Resolution 2094, which--
(A) welcomed the Financial Action Task Force's
recommendation on financial sanctions related to
proliferation, and its guidance on the implementation of
sanctions;
(B) decided that 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 Member States to prohibit North Korean banks
from establishing or maintaining correspondent relationships
with banks in their jurisdictions, to prevent the provision
of financial services, if they have information that provides
reasonable grounds to believe that these activities could
contribute to activities prohibited by an applicable United
Nations Security Council resolution, or to 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 require enhanced
monitoring of, transactions involving North Korean financial
institutions that could contribute to sanctioned activities;
(2) urges the President, in the strongest terms, to
consider immediately designating North Korea as a
jurisdiction of primary money laundering concern, and 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
activities sanctioned by applicable United Nations Security
Council resolutions, or to the evasion of sanctions.
(c) Determinations Regarding North Korea.--
(1) In general.--The Secretary of the Treasury shall, not
later than 180 days after the date of the enactment of this
Act, determine, in consultation with the Secretary of State
and Attorney General, and in accordance with section 5318A of
title 31, United States Code, 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 finding that North Korea is a jurisdiction
of primary money laundering concern, the Secretary of the
Treasury, in consultation with the Federal functional
regulators, shall impose one 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.--If the Secretary of the Treasury
determines that North Korea is a jurisdiction of primary
money laundering concern, the Secretary of the Treasury
shall, not later than 90 days after the date on which the
Secretary makes such determination, submit to the appropriate
congressional committees a report on the determination made
under paragraph (1) together with the reasons for that
determination.
(B) Form.--A report or copy of any report submitted under
this paragraph 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 states and jurisdictions are obligated to implement
and enforce applicable United Nations Security Council
resolutions fully and promptly, including by--
(A) 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;
(B) blocking any property associated with an activity
prohibited by applicable United Nations Security Council
resolutions; and
(C) preventing any transfer of property and any provision
of financial services that could contribute to an activity
prohibited by applicable United Nations Security Council
resolutions, or to the evasion of sanctions under such
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 the
enforcement of applicable United Nations Security Council
resolutions and to the protection of the international
financial system;
(5) the report of the Panel of Experts established pursuant
to United Nations Security Council Resolution 1874, dated
June 11, 2013, expressed concern about the ability of banks
in states with less effective regulators and those 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;
(8) Korea Daesong Bank and Korea Kwangson Banking
Corporation have been designated by the Secretary of the
Treasury and the European Union;
(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, both 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
[[Page H6881]]
(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.--
(1) In general.--Subject to section 207(a)(2)(C) of this
Act, a license shall be required for the export to North
Korea of any goods or technology subject to the Export
Administration Regulations (part 730 of title 15, Code of
Federal Regulations) without regard to whether the Secretary
of State has designated North Korea as a country the
government of which has provided support for acts of
international terrorism, as determined by the Secretary of
State under section 6(j) of the Export Administration Act of
1979 (50 U.S.C. App. 2045), as continued in effect under the
International Emergency Economic Powers Act.
(2) Presumption of denial.--A license for the export to
North Korea of any goods or technology as described in
paragraph (1) shall be subject to a presumption of denial.
(b) Transactions With Countries Supporting Acts of
International Terrorism.--The prohibitions and restrictions
described in section 40 of the Arms Export Control Act (22
U.S.C. 2780), and other provisions in that Act, shall also
apply to exporting or otherwise providing (by sale, lease or
loan, grant, or other means), directly or indirectly, any
munitions item to the Government of North Korea without
regard to whether or not North Korea is a country with
respect to which subsection (d) of such section (relating to
designation of state sponsors of terrorism) applies.
(c) 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 any country that provides lethal military equipment
to, or receives lethal military equipment from, the
Government of North Korea.
(2) Applicability.--The prohibition under this subsection
with respect to a country shall terminate on the date that is
1 year after the date on which such country ceases to provide
lethal military equipment to the Government of North Korea.
(3) Waiver.--The President may waive the prohibition under
this subsection with respect to a country if the President
determines that it is in the national interest of the United
States to do so.
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) FAR.--The Federal Acquisition Regulation issued
pursuant to section 1303 of title 41, United States Code,
shall be revised to require a certification from each person
that is a prospective contractor that such person does not
engage in any of the conduct described in section 104(a).
Such revision shall apply with respect to contracts in an
amount greater than the simplified acquisition threshold (as
defined in section 134 of title 41, United States Code) for
which solicitations are issued on or after the date that is
90 days after the date of the enactment of this Act.
(c) Termination of Contracts and Initiation of Suspension
and Debarment Proceeding.--
(1) Termination of contracts.--Except as provided in
paragraph (2), the head of an executive agency shall
terminate a contract with a person who has provided a false
certification under subsection (b).
(2) Waiver.--The head of an executive agency may waive the
requirement under paragraph (1) with respect to a person
based upon a written finding of urgent and compelling
circumstances significantly affecting the interests of the
United States. If the head of an executive agency waives the
requirement under paragraph (1) for a person, the head of the
agency shall submit to the appropriate congressional
committees, within 30 days after the waiver is made, a report
containing the rationale for the waiver and relevant
information supporting the waiver decision.
(3) Initiation of suspension and debarment proceeding.--The
head of an executive agency shall initiate a suspension and
debarment proceeding against a person who has provided a
false certification under subsection (b). Upon determination
of suspension, debarment, or proposed debarment, the agency
shall ensure that such person is entered into the Government-
wide database containing the list of all excluded parties
ineligible for Federal programs pursuant to Executive Order
12549 (31 U.S.C. 6101 note; relating to debarment and
suspension) and Executive Order 12689 (31 U.S.C. 6101 note;
relating to debarment and suspension).
(d) Clarification Regarding Certain Products.--The remedies
specified in subsections (a) through (c) shall not apply with
respect to the procurement of eligible products, 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 INSPECTIONS AUTHORITIES.
(a) Report Required.--Not later than 180 days after the
date of the enactment of this Act, and every 180 days
thereafter, the President, acting through the Secretary of
Homeland Security, shall submit to the appropriate
congressional committees, the Committee on Homeland Security
of the House of Representatives, and the Committee on
Homeland Security and Governmental Affairs of the Senate, a
report identifying foreign sea 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 deficient to effectively
prevent the facilitation of any of the activities described
in section 104(a).
(b) Enhanced Security Targeting Requirements.--Not later
than 180 days after the identification of any sea port or
airport pursuant to subsection (a), the Secretary of Homeland
Security shall, utilizing the Automated Targeting System
operated by the National Targeting Center in U.S. Customs and
Border Protection, require enhanced screening procedures to
determine if physical inspections are warranted of any cargo
bound for or landed in the United States that has been
transported through such sea port or airport if there are
reasonable grounds to believe that such cargo contains goods
prohibited under this Act.
(c) Seizure and Forfeiture.--A vessel, aircraft, or
conveyance used to facilitate any of the activities described
in section 104(a) that comes within the jurisdiction of the
United States may be seized and forfeited under chapter 46 of
title 18, United States Code, or under the Tariff Act of
1930.
SEC. 206. TRAVEL SANCTIONS.
(a) Aliens Ineligible for Visas, Admission, or Parole.--
(1) Visas, admission, or parole.--An alien (or an alien who
is a corporate officer of a person (as defined in
subparagraph (B) or (C) of section 3(11)) who the Secretary
of State or the Secretary of Homeland Security (or a designee
of one of such Secretaries) knows, or has reasonable grounds
to believe, is described in subsection (a)(1) or (b)(1) of
section 104 is--
(A) inadmissible to the United States;
(B) ineligible to receive a visa or other documentation to
enter the United States; and
(C) otherwise ineligible to be admitted or paroled into the
United States or to receive any other benefit under the
Immigration and Nationality Act (8 U.S.C. 1101 et seq.).
(2) Current visas revoked.--
(A) In general.--The issuing consular officer, the
Secretary of State, or the Secretary of Homeland Security (or
a designee of one of such Secretaries) shall revoke any visa
or other entry documentation issued to an alien who is
described in subsection (a)(1) or (b)(1) of section 104
regardless of when issued.
(B) Effect of revocation.--A revocation under subparagraph
(A)--
(i) shall take effect immediately; and
(ii) shall automatically cancel any other valid visa or
entry documentation that is in the alien's possession.
(b) Exception to Comply With United Nations Headquarters
Agreement.--Sanctions under subsection (a)(1)(B) shall not
apply to an alien if admitting the alien into the United
States is necessary to permit the United States to comply
with the Agreement regarding the Headquarters of the United
Nations, signed at Lake Success June 26, 1947, and entered
into force November 21, 1947, between the United Nations and
the United States, or other applicable international
obligations.
SEC. 207. EXEMPTIONS, WAIVERS, AND REMOVALS OF DESIGNATION.
(a) Exemptions.--
(1) Mandatory exemptions.--The following activities shall
be exempt from sanctions under section 104:
(A) Activities subject to the reporting requirements of
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.
(2) Discretionary exemptions.--The following activities may
be exempt from sanctions under section 104 as determined by
the President:
(A) Any financial transaction the exclusive purpose for
which is to provide humanitarian assistance to the people of
North Korea.
(B) Any financial transaction the exclusive purpose for
which is to import food products into North Korea, if such
food items are not defined as luxury goods.
(C) Any transaction the exclusive purpose for which is to
import agricultural products, medicine, or medical devices
into North Korea, provided that such supplies or equipment
are classified as designated ``EAR 99''
[[Page H6882]]
under the Export Administration Regulations (part 730 of
title 15, Code of Federal Regulations) and 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.).
(b) Waiver.--The President may waive, on a case-by-case
basis, the imposition of sanctions for a period of not more
than one year, and may renew that waiver for additional
periods of not more than one year, any sanction or other
measure under section 104, 204, 205, 206, or 303 if the
President submits to the appropriate congressional committees
a written determination that the waiver meets one or more of
the following requirements:
(1) The waiver is important to the economic or 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) Removals of Sanctions.--The President may prescribe
rules and regulations for the removal of sanctions on a
person that is designated under subsection (a) or (b) of
section 104 and the removal of designations of a person with
respect to such sanctions if the President determines that
the designated person has verifiably ceased its participation
in any of the conduct described in subsection (a) or (b) of
section 104, as the case may be, and has given assurances
that it will abide by the requirements of this Act.
(d) Financial Services for Certain Activities.--The
President may promulgate 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 section.
SEC. 208. SENSE OF CONGRESS ON ENFORCEMENT OF SANCTIONS ON
NORTH KOREA.
(a) Findings.--Congress finds the following:
(1) On March 6, 2014, pursuant to United Nations Security
Council Resolution 1874, a Panel of Experts issued a report
assessing the enforcement of existing sanctions on North
Korea. The Panel reported that North Korea continues to
``trade in arms and related materiel in violation of the
resolutions'' and that ``there is no question that it is one
of the country's most profitable revenue sources''.
(2) The Panel of Experts found that North Korea ``presents
a stiff challenge to Member States'' through ``multiple and
tiered circumvention techniques'' and ``is experienced in
actions it takes to evade sanctions''.
(b) Sense of Congress.--It is the sense of Congress that
the United States should work to increase the capacity of
responsible nations to implement United Nations Security
Council Resolutions 1695, 1718, 1874, 2087, and 2094,
including to strengthen the capacity of responsible nations
to monitor and interdict shipments to and from North Korea
that contribute to prohibited activities under such
Resolutions.
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 inserting after subsection (c)
the following new subsection:
``(d) Information Technology Study.--Not later than 180
days after the date of the enactment of this subsection, the
President shall submit to the appropriate congressional
committees a classified report setting 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 to the
appropriate congressional committees a report describing,
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 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. REPORT ON PERSONS WHO ARE RESPONSIBLE FOR SERIOUS
HUMAN RIGHTS ABUSES OR CENSORSHIP IN NORTH
KOREA.
(a) In General.--The Secretary of State shall submit to the
appropriate congressional committees a report that contains
an identification of each person the Secretary determines to
be responsible for serious human rights abuses or censorship
in North Korea and a description of such abuses or censorship
engaged in by such person.
(b) Consideration.--In preparing the report required under
subsection (a), the Secretary of State shall give due
consideration to the findings of the United Nations
Commission of Inquiry on Human Rights in North Korea, and
shall make specific findings with respect to the
responsibility of Kim Jong Un, and of each natural person who
is a member of the National Defense Commission of North
Korea, or the Organization and Guidance Department of the
Workers' Party of Korea, for serious human rights abuses and
censorship.
(c) Designation of Persons.--The President shall designate
under section 104(a) any person listed in the report required
under subsection (a) as responsible for serious human rights
abuses or censorship in North Korea.
(d) Submission and Form.--
(1) Submission.--The report required under subsection (a)
shall be submitted not later than 90 days after the date of
the enactment of this Act, and every 180 days thereafter for
a period not to exceed 3 years, shall be included in each
report required 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).
(2) Form.--The report required under subsection (a) shall
be submitted in unclassified form, but may include a
classified annex. The Secretary of State shall also publish
the unclassified part of the report on the Department of
State's website.
TITLE IV--GENERAL AUTHORITIES
SEC. 401. SUSPENSION OF SANCTIONS AND OTHER MEASURES.
(a) In General.--Any sanction or other measure required by
title I, II, or III of this Act (or any amendment made by
title I, II, or III of this Act) may be suspended for up to
365 days upon certification by the President to the
appropriate congressional committees that the Government of
North Korea has--
(1) verifiably ceased its counterfeiting of United States
currency, including the surrender or destruction of
specialized materials and equipment used for or particularly
suitable for counterfeiting;
(2) taken significant steps toward financial transparency
to comply with generally accepted protocols to cease and
prevent the laundering of monetary instruments;
(3) taken significant steps toward verification of its
compliance with United Nations Security Council Resolutions
1695, 1718, 1874, 2087, and 2094;
(4) taken significant steps toward accounting for and
repatriating the citizens of other countries abducted or
unlawfully held captive by the Government of North Korea or
detained in violation of the 1953 Armistice Agreement;
(5) accepted and begun to abide by internationally
recognized standards for the distribution and monitoring of
humanitarian aid;
(6) provided credible assurances that it will not support
further acts of international terrorism;
(7) taken significant and verified steps to improve living
conditions in its political prison camps; and
(8) made significant progress in planning for unrestricted
family reunification meetings, including for those
individuals among the two million strong Korean-American
community who maintain family ties with relatives in North
Korea.
(b) Renewal of Suspension.--The suspension described in
subsection (a) may be renewed for additional consecutive
periods of 180 days upon certification by the President 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 by title I, II, or
III of this Act (or any amendment made by title I, II, or III
of this Act) shall terminate on the date on which the
President determines and certifies to the appropriate
congressional committees that the Government of North Korea
has met the requirements of section 401, and has also--
(1) completely, verifiably, and irreversibly dismantled 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;
(2) released all political prisoners, including the
citizens of North Korea detained in North Korea's political
prison camps;
(3) ceased its censorship of peaceful political activity;
[[Page H6883]]
(4) taken significant steps toward the establishment of an
open, transparent, and representative society;
(5) fully accounted for and repatriated all citizens of all
nations abducted or unlawfully held captive by the Government
of North Korea or detained in violation of the 1953 Armistice
Agreement; and
(6) agreed with the Financial Action Task Force on a plan
of action to address deficiencies in its anti-money
laundering regime and begun to implement this plan of action.
SEC. 403. REGULATIONS.
(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 any
amendment made by this Act shall be construed to limit the
authority of the President pursuant to an applicable
Executive order or otherwise pursuant to the International
Emergency Economic Powers Act (50 U.S.C. 1701 et seq.).
SEC. 404. EFFECTIVE DATE.
Except as otherwise provided in this Act, this Act and the
amendments made by this Act shall take effect on the date of
the enactment of this Act.
SEC. 405. OFFSET.
Section 102(a) of the Enhanced Partnership with Pakistan
Act of 2009 (Public Law 111-73; 22 U.S.C. 8412(a)) is amended
by striking ``$1,500,000,000'' and inserting
``$1,490,000,000''.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
California (Mr. Royce) and the gentleman from Virginia (Mr. Connolly)
each will control 20 minutes.
The Chair recognizes the gentleman from California.
General Leave
Mr. ROYCE. Mr. Speaker, I ask unanimous consent that all Members may
have 5 legislative days to revise and extend their remarks and to
include any extraneous materials in the Record.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from California?
There was no objection.
Mr. ROYCE. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, North Korea, which is one of the nuclear proliferators
on this planet in having proliferated missiles to Iran and in having
proliferated to Syria the construction some years ago of a site in
order to create nuclear weapons, this particular regime remains today
one of the most significant national security threats that we face. It
is an enduring threat to us and our allies in northeast Asia. It is an
enduring threat not just because of that proliferation but also because
of the attitude of the regime there. Frankly, America's policy over the
last 25 years, whether we are talking about a Republican administration
or a Democrat administration, has been a bipartisan failure for that
whole period of time.
This year marks the 20th anniversary of the Clinton administration's
agreed framework, the first in a long line of failed agreements in
which North Korea holds out the promise of cooperation, only to game
the negotiations for more time and more incentives and uses that
opportunity to continue to expand its nuclear program.
{time} 1530
Today, we are no closer to the goal of disarming those nukes than we
were in 1994. The only difference is there is a whole lot more of them.
Meanwhile, North Korea continues to make progress on its nuclear
weapons program, conducting three tests in recent years. It has
actively worked on intercontinental ballistic missile technology to
deliver a three-stage ICBM.
To underscore the threats that we face, let us not forget that, in
2007, a North Korean-built nuclear reactor was destroyed in Syria along
the banks of the Euphrates River.
Mr. Speaker, we need a new approach, frankly, to North Korea, and it
is time for Congress to lead. Recent events around the world underscore
the foolishness of inaction. We need a clear framework for sanctions to
deprive Kim Jong Un of his ability to build nuclear weapons and to
repress and abuse the North Korean people. The way a regime treats its
own people will tell you a lot in life about how they may end up
treating their neighbors.
The North Korea Sanctions Enforcement Act seeks to apply the same
type of pressure that the Treasury Department used back in 2005 when it
caught the regime counterfeiting hundred-dollar bills. Treasury, at
that time, targeted the bank in Macao that was complicit in
counterfeiting with North Korea. This action sent a ripple throughout
the international financial system, and it seriously hindered North
Korea's finances. This was one of the most effective steps in 20 years
that we took against North Korea.
I can tell you some of the results because we have talked with
defectors afterwards about what they had seen in terms of the fact that
productions had closed. The regime could not pay their own generals,
and that is not a good position for dictators to be in. Unfortunately,
though, the sanctions were lifted by the State Department in the naive
hope that the North Koreans would negotiate away their nuclear program.
It is time to open our eyes. This legislation enables our government
to go after Kim Jong Un's illicit activities, just like we went after
organized crime in our own country, by interdicting shipments and
disrupting the flow of money, stopping the hard currency, the very hard
currency he utilizes for his weapons program.
These sanctions target North Korea's money laundering, their
counterfeiting, their narcotics trafficking operation. The only way we
can stop North Korea is cutting off its access to this hard currency,
to stop Kim Jong Un from being able to pay his generals or conduct
research on nuclear weapons.
Critically, the North Korea Sanctions Enforcement Act also includes
the basis imposing sanctions based on North Korea's deplorable human
rights abuses. By directly targeting individuals in positions of power,
we will finally hold North Korea responsible for the torture, the
gulags, the extrajudicial killings that were recently exposed by that
high-level UN inquiry, one of the first of its kind.
For far too long, the world has turned a blind eye to human rights
abuses in North Korea. By supporting this bill, we will take a critical
step toward stopping this type of abuse.
This bipartisan piece of legislation, by the way, has over 140
cosponsors. It has garnered the support of humanitarian groups around
the world. And I note that humanitarian aid is in no way affected by
this legislation.
Again, humanitarian societies worldwide support this, and I urge my
colleagues to support the bill.
Mr. Speaker, I reserve the balance of my time.
House of Representatives,
Committee on the Judiciary,
Washington, DC, July 23, 2014.
Hon. Ed Royce,
Chairman, Committee on Foreign Affairs,
Rayburn House Office Building, Washington, DC.
Dear Chairman Royce, I am writing with respect to H.R.
1771, the ``North Korea Sanctions Enforcement Act,'' which
the Committee on Foreign Affairs ordered reported favorably
on May 29, 2014. As a result of your having consulted with us
on provisions in H.R. 1771 that fall within the Rule X
jurisdiction of the Committee on the Judiciary, I agree to
discharge our Committee from further consideration of this
bill so that it may proceed expeditiously to the House floor
for consideration.
The Judiciary Committee takes this action with our mutual
understanding that by foregoing consideration of H.R. 1771 at
this time, we do not waive any jurisdiction over subject
matter contained in this or similar legislation, and that our
Committee will be appropriately consulted and involved as
this bill or similar legislation moves forward so that we may
address any remaining issues in our jurisdiction. Our
Committee also reserves the right to seek appointment of an
appropriate number of conferees to any House-Senate
conference involving this or similar legislation, and asks
that you support any such request.
I would appreciate a response to this letter confirming
this understanding with respect to H.R. 1771, and would ask
that a copy of our exchange of letters on this matter be
included in the Congressional Record during Floor
consideration of H.R. 1771.
Sincerely,
Bob Goodlatte,
Chairman.
____
House of Representatives,
Committee on Foreign Affairs,
Washington, DC, July 25, 2014.
Hon. Bob Goodlatte,
Chairman, Committee on the Judiciary, Rayburn House Office
Building, Washington, DC.
Dear Chairman Goodlatte: Thank you for consulting with the
Committee on Foreign Affairs on H.R. 1771, the North Korea
Sanctions Enforcement Act, and for agreeing to be discharged
from further consideration of that bill so that it may
proceed expeditiously to the House Floor. The suspension text
contains edits to portions of the bill
[[Page H6884]]
within the Rule X jurisdiction of your committee that were
worked out in consultation with your staff.
I agree that your forgoing further action on this measure
does not in any way diminish or alter the jurisdiction of the
Committee on the Judiciary, or prejudice its jurisdictional
prerogatives on this bill or similar legislation in the
future. I would support your effort to seek appointment of an
appropriate number of conferees to any House-Senate
conference involving this legislation.
I will seek to place our letters on H.R. 1771 into the
Congressional Record during floor consideration of the bill.
I appreciate your cooperation regarding this legislation and
look forward to continuing to work with your Committee as
this measure moves through the legislative process.
Sincerely,
Edward R. Royce,
Chairman.
____
House of Representatives,
Committee on Ways and Means,
Washington, DC, July 24, 2014.
Hon. Edward R. Royce,
Chairman, Committee on Foreign Affairs, Rayburn House Office
Building, Washington, DC.
Dear Chairman Royce: I am writing concerning H.R. 1771, the
``North Korea Sanctions Enforcement Act of 2014,'' which was
favorably reported out of your Committee on May 29, 2014.
Given that certain provisions in the bill are within the
jurisdiction of the Committee on Ways and Means, I appreciate
that you have addressed these provisions in response to the
Committee's concerns. As a result, in order to expedite floor
consideration of the bill, the Committee on Ways and Means
will forgo action on H.R. 1771. Further, the Committee will
not oppose the bill's consideration on the suspension
calendar, based on our understanding that you will work with
us as the legislative process moves forward to ensure that
our concerns continue to be addressed. This is also being
done with the understanding that it does not in any way
prejudice the Committee with respect to the appointment of
conferees or its jurisdictional prerogatives on this or
similar legislation.
I would appreciate your response to this letter, confirming
this understanding with respect to H.R. 1771, and would ask
that a copy of our exchange of letters on this matter be
included in the Congressional Record during Floor
consideration.
Sincerely,
Dave Camp,
Chairman.
____
House of Representatives,
Committee on Foreign Affairs,
Washington, DC, July 25, 2014.
Hon. Dave Camp,
Chairman, Committee on Ways and Means, Longworth House Office
Building, Washington, DC.
Dear Chairman Camp: Thank you for consulting with the
Committee on Foreign Affairs on H.R. 1771, the North Korea
Sanctions Enforcement Act, and for agreeing to be discharged
from further consideration of that bill so that it may
proceed expeditiously to the House Floor. The suspension text
contains edits to portions of the bill within the rule X
jurisdiction of your committee that were worked out in
consultation with your staff.
I agree that your forgoing further action on this measure
does not in any way diminish or alter the jurisdiction of the
Committee on Ways and Means, or prejudice its jurisdictional
prerogatives on this bill or similar legislation in the
future. I would support your effort to seek appointment of an
appropriate number of conferees to any House-Senate
conference involving this legislation.
I will seek to place our letters on H.R. 1771 into the
Congressional Record during floor consideration of the bill.
I appreciate your cooperation regarding this legislation and
look forward to continuing to work with your Committee as
this measure moves through the legislative process.
Sincerely,
Edward R. Royce,
Chairman.
____
House of Representatives,
Committee on Foreign Affairs,
Washington, DC, July 25, 2014.
Hon. Jeb Hensarling,
Chairman, Committee on Financial Services, Rayburn House
Office Building, Washington, DC.
Dear Chairman Hensarling: Thank you for consulting with the
Committee on Foreign Affairs on H.R. 1771, the North Korea
Sanctions Enforcement Act, and for agreeing to be discharged
from further consideration of that bill so that it may
proceed expeditiously to the House Floor. The suspension text
contains edits to portions of the bill within the Rule X
jurisdiction of your committee that were worked out in
consultation with your staff.
I agree that your forgoing further action on this measure
does not in any way diminish or alter the jurisdiction of the
Committee on Financial Services, or prejudice its
jurisdictional prerogatives on this bill or similar
legislation in the future. I would support your effort to
seek appointment of an appropriate number of conferees to any
House-Senate conference involving this legislation.
I will seek to place our letters on H.R. 1771 into the
Congressional Record during floor consideration of the bill.
I appreciate your cooperation regarding this legislation and
look forward to continuing to work with your Committee as
this measure moves through the legislative process.
Sincerely,
Edward R. Royce,
Chairman.
____
House of Representatives,
Committee on Financial Services,
Washington, DC, July 28, 2014.
Hon. Edward R. Royce,
Chairman, House Committee on Foreign Affairs, Rayburn House
Office Building, Washington, DC.
Dear Chairman Royce: On May 29, 2014, the Committee on
Foreign Affairs ordered H.R. 1771, the North Korea Sanctions
Enforcement Act of 2013, to be reported favorably to the
House with an amendment. As a result of your having consulted
with the Committee on Financial Services concerning
provisions of the bill that fall within our Rule X
jurisdiction, I agree to discharge our committee from further
consideration of the bill so that it may proceed
expeditiously to the House Floor.
The Committee on Financial Services takes this action with
our mutual understanding that by foregoing consideration of
H.R. 1771, as amended, at this time, we do not waive any
jurisdiction over the subject matter contained in this or
similar legislation, and that our committee will be
appropriately consulted and involved as the bill or similar
legislation moves forward so that we may address any
remaining issues that fall within our Rule X jurisdiction.
Our committee also reserves the right to seek appointment of
an appropriate number of conferees to any House-Senate
conference involving this or similar legislation, and
requests your support for any such request.
Finally, I appreciate your July 25 letter anticipating this
letter memorializing this understanding with respect to H.R.
1771, as amended. I would further appreciate your inclusion
of a copy of our exchange of letters on this matter be
included in your committee's report to accompany the
legislation and in the Congressional Record during floor
consideration thereof.
Sincerely,
Jeb Hensarling,
Chairman.
____
House of Representatives,
Committee on Foreign Affairs,
Washington, DC, July 25, 2014.
Hon. Darrell Issa,
Chairman, Committee on Oversight and Government Reform,
Rayburn House Office Building, Washington, DC.
Dear Chairman Issa: Thank you for consulting with the
Committee on Foreign Affairs on H.R. 1771, the North Korea
Sanctions Enforcement Act, and for agreeing to be discharged
from further consideration of that bill so that it may
proceed expeditiously to the House Floor. The suspension text
contains edits to portions of the bill within the Rule X
jurisdiction of your committee that were worked out in
consultation with your staff.
I agree that your forgoing further action on this measure
does not in any way diminish or alter the jurisdiction of the
Committee on Oversight and Government Reform, or prejudice
its jurisdictional prerogatives on this bill or similar
legislation in the future. I would support your effort to
seek appointment of an appropriate number of conferees to any
House-Senate conference involving this legislation.
I will seek to place our letters on H.R. 1771 into the
Congressional Record during floor consideration of the bill.
I appreciate your cooperation regarding this legislation and
look forward to continuing to work with your Committee as
this measure moves through the legislative process.
Sincerely,
Edward R. Royce,
Chairman.
____
House of Representatives,
Committee on Oversight and Government Reform,
Washington, DC, July 28, 2014.
Hon. Edward R. Royce,
Chairman, Committee on Foreign Affairs, House of
Representatives, Washington, DC.
Dear Mr. Chairman: I am writing concerning H.R. 1771, the
``North Korea Sanctions Enforcement Act of 2013.''
H.R. 1771 contains provisions within the Committee on
Oversight and Government Reform's rule X jurisdiction. As a
result of your having consulted with the Committee and in
order to expedite this bill for floor consideration, the
Committee on Oversight and Government Reform will forego
action on the bill. This is being done on the basis of our
mutual understanding that doing so will in no way diminish or
alter the jurisdiction of the Committee on Oversight and
Government Reform with respect to the appointment of
conferees, or to any future jurisdictional claim over the
subject matters contained in the bill or similar legislation.
I would appreciate your response to this letter confirming
this understanding, and would request that you include a copy
of this letter and your response in the Congressional Record
during the floor consideration of this bill. Thank you in
advance for your cooperation.
Sincerely,
Darrell Issa,
Chairman.
[[Page H6885]]
____
House of Representatives,
Committee on Foreign Affairs,
Ford House Office Building,
Washington, DC, July 25, 2014.
Hon. Michael McCaul,
Chairman, Committee on Homeland Security, Washington, DC.
Dear Chairman McCaul: Thank you for consulting with the
Committee on Foreign Affairs on H.R. 1771, the North Korea
Sanctions Enforcement Act, and for agreeing to forgo a
sequential referral request so that the bill may proceed
expeditiously to the Floor.
I agree that your forgoing further action on this measure
does not in any way diminish or alter the jurisdiction of the
Committee on Homeland Security, or prejudice its
jurisdictional prerogatives on this bill or similar
legislation in the future.
I will seek to place our letters on H.R. 1771 into our
Committee Report and into the Congressional Record during
floor consideration of the bill. I appreciate your
cooperation regarding this legislation and look forward to
continuing to work with your Committee as this measure moves
through the legislative process.
Sincerely,
Edward R. Royce,
Chairman.
____
House of Representatives,
Committee on Homeland Security,
Washington, DC, July 28, 2014.
Hon. Ed Royce,
Chairman, Committee on Foreign Affairs, Rayburn House Office
Building, Washington, DC.
Dear Chairman Royce: I am writing concerning H.R. 1771, the
``North Korea Sanctions Enforcement Act,'' which your
Committee ordered reported on May 29, 2014.
As a result of your having consulted with the Committee on
Homeland Security on provisions in our jurisdiction and in an
effort to expedite the House's consideration of H.R. 1771,
the Committee on Homeland Security will not assert a
jurisdictional claim over this bill by seeking a sequential
referral. However, this is conditional upon our mutual
understanding and agreement that doing so will in no way
diminish or alter the jurisdiction of the Committee on
Homeland Security with respect to the appointment of
conferees or to any future jurisdictional claim over the
subject matter contained in this bill or similar legislation.
I request that you include a copy of this letter and your
response in the Congressional Record during floor
consideration of this bill. Thank you for your attention to
this matter.
Sincerely,
Michael T. McCaul,
Chairman.
Mr. CONNOLLY. Mr. Speaker, I rise today in the strongest support of
H.R. 1771, the North Korea Sanctions Enforcement Act of 2014.
I yield myself such time as I may consume.
I also want to thank the distinguished chairman. He and I had a
conversation several months ago where I encouraged that we put this on
the schedule, the agenda, for a markup on the House Foreign Affairs
Committee, and he did so with alacrity, and I really appreciate his
consideration and leadership.
This legislation, which I am pleased to have cosponsored, provides us
with the opportunity to communicate that the House of Representatives
is resolved to hold the Orwellian North Korean regime accountable for
unspeakable brutality against its own people and the erratic and
dangerous manner in which it conducts itself on the world stage.
The bill imposes the first comprehensive sanctions on the North Korea
regime, and those in other countries, who abet its arms smuggling,
weapons of mass destruction and ballistic missile development, human
rights abuses, and terrorism support.
It imposes asset freezes and seizures and visa denials on persons who
materially contribute to North Korea's WMD missile development and
proliferation, as well as its human rights abuses and support for
terrorism.
H.R. 1771 requires the Treasury Department to determine if North
Korea is engaged in money laundering, and, if so, it blocks any entity
from access to the entire United States financial system if it conducts
direct or indirect transactions with North Korea's banks.
It also requires a public report identifying North Korean human
rights violators and political prison camps. It calls for a feasibility
study of providing North Korean nationals with Internet communication
devices that can overcome the incredible censorship in that country.
Mr. Speaker, these sanctions are warranted. North Korea is a reckless
international actor that has amassed a litany of violations and abuses
of international law that one would think belong in a fictional novel.
It continues to develop nuclear weapons programs in defiance of the
Security Council and worldwide condemnation.
North Korea supports the development of Iranian missile technology
and nuclear capabilities. Hamas and Hezbollah, both designated foreign
terrorist organizations by the United States Government, receive
missile technology and training from the North Korea regime that they
have used to attack Israel, an ally of the United States.
The Security Council at the United Nations' resolutions deterring
missile tests and launches are routinely flouted. It is clear that a
pattern of behavior has developed in North Korea that should be
concerning to all in the international community, not just this body.
The U.S. will not and cannot allow an authoritarian regime to operate
with impunity and threaten our national security and that of our
allies.
Of course, the United States and the international community should
not only address the aggression North Korea has projected outward. The
atrocities committed within the borders of North Korea are, of course,
of equal concern and deserve similar condemnation.
The status of human rights seems to have regressed under Kim Jong Un,
if that is at all possible. A recent United Nations report recounts in
horrifying detail the ``offenses'' which land individuals in labor
camps, including the misspelling of Kim Jong Il. Deplorable conditions
persist in the nation's system of gulags that reports say contain as
many as 200,000 prisoners.
People seeking refuge from the oppressive regime must disregard
public executions used to intimidate the populace and brave a ``shoot
to kill'' set of orders levied against citizens who are simply
attempting to make a living somewhere else. Family reunifications
between South Korean families and their loved ones on the other side of
the DMZ remain limited to fleeting reunions.
I really want to thank Chairman Royce and our committee staff on both
sides for working with us on an amendment that makes the suspension of
sanctions in this legislation conditional on North Korea making
significant progress in planning for unrestricted family reunification
meetings, including for those individuals among the 2 million strong
Korean American community who still have relatives in North Korea.
Pyongyang must pay, and the lives of North Koreans must be improved.
I applaud this legislation for levying extensive sanctions against
bad actors in the North Korean saga while recognizing the urgency of
humanitarian, medical, and food assistance for North Korea's citizens.
Rest assured that no such reprieve is offered by the regime in
Pyongyang.
Again, I commend my colleagues, the chairman, and the ranking member
of our committee for finding, once again, common ground on the North
Korea sanctions issue and for taking decisive action against this
despotic regime.
Mr. Speaker, we have no further speakers on this side.
I urge passage of this legislation. I think it can send a very
important message to our allies and to our foes and to, especially, the
North Korea regime itself. I think the timing is right.
Mr. Speaker, I yield back the balance of my time.
Mr. ROYCE. Mr. Speaker, for far too long the world has ignored the
significant human rights abuses that occur almost every single day in
North Korea. Increasingly, as people escape, we begin to get some sense
of what life is like for the hundreds of thousands that live in these
concentration camps.
By turning a blind eye to what is going on in North Korea, we, and
the rest of the world, risk missing an opportunity to hold the Kim
regime responsible for its terrible crimes against humanity. This
legislation is a chance to hold them responsible for those crimes
against their own people. We have an opportunity here to cut off the
hard currency that goes right to the leadership in this regime. They
depend on that hard currency.
Earlier this year, the U.N. Commission of Inquiry laid out the most
damning case against North Korea. Internationally, communities were
shocked by the revelations in this Commission of Inquiry.
[[Page H6886]]
As chairman of the Foreign Affairs Committee, I have met with a
number of North Korean defectors and refugees over the years. I have
heard their stories. We have had some of them testify here in the House
of Representatives. I have seen North Korea with my own eyes. I have
seen the malnutrition engineered by the regime, while the money goes
into their nuclear arms program and their military buildup.
Listen. The message from the defectors and the survivors are
remarkably similar. What they tell us is: please help us. By supporting
H.R. 1771, we send an unmistakable message that the United States will
no longer tolerate a regime that tortures and kills its own people. We
will not tolerate, either, nuclear weapons and unchecked proliferation
being developed with the hard currency that this regime gets its hands
on by violating international law and being involved in the type of
smuggling and illegal activities that they are involved in.
North Korea is, undoubtedly, one of the most significant security
threats that we here face and our allies face, and I urge my colleagues
to support this legislation.
Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from California (Mr. Royce) that the House suspend the rules
and pass the bill, H.R. 1771, as amended.
The question was taken; and (two-thirds being in the affirmative) the
rules were suspended and the bill, as amended, was passed.
A motion to reconsider was laid on the table.
____________________