[Congressional Record Volume 163, Number 75 (Tuesday, May 2, 2017)]
[House]
[Pages H3026-H3038]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




         KOREAN INTERDICTION AND MODERNIZATION OF SANCTIONS ACT

  Mr. ROYCE of California. Mr. Speaker, I move to suspend the rules and 
pass the bill (H.R. 1644) to enhance sanctions with respect to 
transactions relating to 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. 1644

       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.

[[Page H3027]]

    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 13694''; and
       (B) by inserting ``or Executive Order 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

[[Page H3028]]

     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

[[Page H3029]]

     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:

[[Page H3030]]

       (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--

[[Page H3031]]

       (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.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
California (Mr. Royce) and the gentleman from New York (Mr. Engel) each 
will control 20 minutes.
  The Chair recognizes the gentleman from California.


                             General Leave

  Mr. ROYCE of California. Mr. Speaker, I ask unanimous consent that 
all Members may have 5 legislative days to revise and extend their 
remarks and to include extraneous material on this measure in the 
Record.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from California?
  There was no objection.
  Mr. ROYCE of California. Mr. Speaker, I yield myself such time as I 
may consume.
  Mr. Speaker, I rise in support of H.R. 1644, the Korean Interdiction 
and Modernization of Sanctions Act.
  I want to begin by thanking the coauthor of this bill, Ranking Member 
Eliot Engel, for his work on this legislation and for his steadfast 
leadership that he has shown on addressing this threat to national 
security. He has been in North Korea twice--I have been there once--and 
he has been focused on this for a long time.
  Mr. Speaker, North Korea does, in fact, pose an immediate threat to 
the national security of the United States and to our allies. Experts 
believe that, in less than 4 years, North Korea will have the ability 
probably to target the United States with a reliable intercontinental 
ballistic missile, one topped by a nuclear warhead.
  The quick speed with which North Korea's program is advancing is a 
game changer for our national security. It is no wonder that former 
President Obama warned President Trump that North Korea would be the 
top threat to the United States--and this is after the program of 
strategic patience which President Obama deployed. That policy of 
strategic patience, unfortunately, has not worked out. We must move 
forward with something based on a plan that has worked in the past.
  North Korea, now that they have conducted two nuclear weapons tests 
this last year and launched a total of 26 ballistic missiles, including 
one from a submarine, has reached the point where it is a threat to the 
United States. In the last 2 years alone, we have seen 49 of these 
tests of one kind or another as they have built out this program.
  Alarmingly, with every test, North Korea gains valuable technical 
knowledge that has enabled it to make significant improvements to its 
developing arsenal. So as they march towards the day that it will have 
the capability of striking all 50 States with an ICBM, we have been 
reminded by our Chairman of the Joint Chiefs that the ``I'' in that 
acronym stands for ``intercontinental,'' and he says: as from that 
continent to this continent.
  More immediately, these missiles gravely threaten our allies in South 
Korea and Japan, and it is a threat to the tens of thousands of U.S. 
servicemen serving in those countries.
  North Korea has been a major proliferator, cooperating on its nuclear 
and missile programs with the likes of Iran, of Syria, and of Pakistan. 
I will remind the Members that they built a carbon copy of their 
nuclear program in Syria on the banks of the Euphrates River. Had it 
not been--had it not been--for the Israeli Defense Forces taking that 
facility out some years ago, we would be wrestling right now with the 
question of whether that facility was in the hands of al-Nusra or in 
the hands of ISIS or in the hands of Hezbollah. They are undermining 
U.S. security along with the entire global counterproliferation system, 
so we can only guess the extent of the damage that is being done 
through illicit, undetected networks.
  Mr. Speaker, Congress has a chance to put North Korea policy on 
firmer ground, and this bill, this Korean Interdiction and 
Modernization of Sanctions Act, is a response to this immediate threat. 
It builds upon the North Korea Sanctions and Policy Enhancement Act, 
which was a bill authored by Mr. Engel and myself that was signed into 
law last Congress. With this law, the United States designated North 
Korea as a primary money laundering concern, cutting off their access 
to cash, and found Kim Jong-un and his top lieutenants responsible for 
grave human rights abuses. Indeed, the magazine The Economist 
accurately described North Korea as a gulag now masquerading as a 
country.
  But at the same time, North Korea has worked over the past year to 
evade international sanctions with the help of a vast network of front 
companies, which we have now identified, and those front companies work 
with governments spanning the globe. Those who do business with North 
Korea provide it with money to fund the regime's nuclear program and 
fund its grotesque human rights abuses, and they must be stopped.
  This bill does that by expanding sanctions to deter North Korea's 
nuclear programs and to enforce United Nations Security Council 
resolutions. Let's be clear: these are international commitments that 
all nations are obliged to honor, including China.
  It targets those who employ North Korean slave labor overseas. 
Companies from Senegal to Qatar to Angola import these North Korean 
workers who promptly send their salary back to the regime in North 
Korea, earning the regime billions of dollars in hard currency each 
year.
  This is money that Kim Jong-un uses to advance his nuclear and 
missile program and also pay his generals, buying their loyalty to his 
brutal regime. That is what the high-level defectors that I have met 
with say. So let's squeeze his purse.
  It cracks down on North Korean shipping and the use of international 
ports, restricting the regime's ability to ship weapons and other 
banned goods.
  When we discover that foreign banks have helped Kim Jong-un skirt 
these sanctions, as some in China have repeatedly done, then we must 
give those banks and businesses a stark choice: to do business with 
that regime in North Korea or the United States. As we have heard from 
the new administration, this is a key focus of theirs.
  So, Mr. Speaker, this legislation gives the administration powerful 
new tools to protect the U.S. and our allies from the threat of North 
Korean nuclear missiles by going after those who enable the regime's 
aggression. This shows the world that Congress stands ready to help the 
administration work with our allies and others to counter North Korea's 
belligerent behavior and maintain peace and stability in Northeast 
Asia.
  Mr. Speaker, I urge my colleagues to vote ``yes'' on H.R. 1644, and I 
reserve the balance of my time.

         House of Representatives, Committee on Oversight and 
           Government Reform,
                                   Washington, DC, April 24, 2017.
     Hon. Edward R. Royce,
     Chairman, Committee on Foreign Affairs, Washington, DC.
       Dear Mr, Chairman: I write concerning H.R. 1644, the Korean 
     Interdiction and Modernization of Sanctions Act. As you know, 
     the Committee on Foreign Affairs received an original 
     referral and the Committee on Oversight and Government Reform 
     a secondary referral when the bill was introduced on March 
     21, 2017. I recognize and appreciate your desire to bring 
     this legislation before the House of Representatives in an 
     expeditious manner, and accordingly, the Committee on 
     Oversight and Government Reform will forego action on the 
     bill.
       The Committee takes this action with our mutual 
     understanding that by foregoing consideration of H.R. 1644 at 
     this time, we do not waive any jurisdiction over the subject 
     matter contained in this or similar legislation. Further, I 
     request your support for the

[[Page H3032]]

     appointment of conferees from the Committee on Oversight and 
     Government Reform during any House-Senate conference convened 
     on this or related legislation.
       Finally, I would ask that a copy of our exchange of letters 
     on this matter be included in the bill report filed by the 
     Committee on Foreign Affairs, as well as in the Congressional 
     Record during floor consideration, to memorialize our 
     understanding.
           Sincerely,
                                                   Jason Chaffetz,
     Chairman.
                                  ____

                                         House of Representatives,


                                 Committee on Foreign Affairs,

                                   Washington, DC, April 24, 2017.
     Hon. Jason Chaffetz,
     Chairman, Committee on Oversight and Government Reform, 
         Washington, DC.
       Dear Mr. Chairman: Thank you for consulting with the 
     Foreign Affairs Committee and agreeing to be discharged from 
     further consideration of H.R. 1644, the Korean Interdiction 
     and Modernization of Sanctions Act, so that the bill may 
     proceed expeditiously to the House floor.
       I agree that your forgoing further action on this measure 
     does not in any way diminish or alter the jurisdiction of 
     your committee, or prejudice its jurisdictional prerogatives 
     on this resolution or similar legislation in the future. I 
     would support your effort to seek appointment of an 
     appropriate number of conferees from your committee to any 
     House-Senate conference on this legislation.
       I will seek to place our letters on H.R. 1644 into the 
     Congressional Record during floor consideration of the 
     resolution. I appreciate your cooperation regarding this 
     legislation and look forward to continuing to work together 
     as this measure moves through the legislative process.
           Sincerely,
                                                  Edward R. Royce,
     Chairman.
                                  ____

                                         House of Representatives,


                                  Committee on Ways and Means,

                                   Washington, DC, April 25, 2017.
     Hon. Edward R. Royce,
     Chairman, Committee on Foreign Affairs, Washington, DC.
       Dear Chairman Royce: I am writing with respect to H.R. 
     1644, the ``Korean Interdiction and Modernization of 
     Sanctions Act,'' on with the Committee on Ways and Means was 
     granted an additional referral.
       In order to allow H.R. 1644 to move expeditiously to the 
     House floor, I agree to waive formal consideration of this 
     bill. The Committee on Ways and Means takes this action with 
     the mutual understanding that we do not waive any 
     jurisdiction over the subject matter contained in this or 
     similar legislation, and the 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 jurisdiction. The 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 
     such request.
       Finally, I would appreciate your response to this letter 
     confirming this understanding, 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. 1644.
           Sincerely,
                                                      Kevin Brady,
     Chairman.
                                  ____

                                         House of Representatives,


                                 Committee on Foreign Affairs,

                                   Washington, DC, April 24, 2017.
     Hon. Kevin Brady,
     Chairman, Committee on Ways and Means, Washington, DC.
       Dear Chairman Brady: Thank you for consulting with the 
     Foreign Affairs Committee and agreeing to be discharged from 
     further consideration of H.R. 1644, the Korean Interdiction 
     and Modernization of Sanctions Act, so that the bill may 
     proceed expeditiously to the House floor.
       I agree that your forgoing further action on this measure 
     does not in any way diminish or alter the jurisdiction of 
     your committee, or prejudice its jurisdictional prerogatives 
     on this resolution or similar legislation in the future. I 
     would support your effort to seek appointment of an 
     appropriate number of conferees from your committee to any 
     House-Senate conference on this legislation.
       I will seek to place our letters on H.R. 1644 into the 
     Congressional Record during floor consideration of the 
     resolution. I appreciate your cooperation regarding this 
     legislation and look forward to continuing to work together 
     as this measure moves through the legislative process.
           Sincerely,
                                                  Edward R. Royce,
     Chairman.
                                  ____

                                         House of Representatives,


                              Committee on Financial Services,

                                   Washington, DC, April 26, 2017.
     Hon. Ed Royce,
     Chairman, Committee on Foreign Affairs, Washington, DC.
       Dear Chairman Royce: I am writing concerning H.R. 1644, the 
     Korean Interdiction and Modernization of Sanctions Act.
       As a result of your having consulted with the Committee on 
     Financial Services concerning provisions in the bill that 
     fall within our Rule X jurisdiction, I agree to forgo action 
     on 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. 1644 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 this 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 would appreciate your response to this letter 
     confirming this understanding with respect to H.R. 1644 and 
     would ask that a copy of our exchange of letters on this 
     matter be included in the Congressional Record during floor 
     consideration of the bill.
           Sincerely,
                                                   Jeb Hensarling,
     Chairman.
                                  ____

                                         House of Representatives,


                                 Committee on Foreign Affairs,

                                   Washington, DC, April 26, 2017.
     Hon. Jeb Hensarling,
     Chairman, Committee on Financial Services, Washington, DC.
       Dear Chairman Hensarling: Thank you for consulting with the 
     Foreign Affairs Committee and agreeing to be discharged from 
     further consideration of H.R. 1644, the Korean Interdiction 
     and Modernization of Sanctions Act, so that the bill may 
     proceed expeditiously to the House floor.
       I agree that your forgoing further action on this measure 
     does not in any way diminish or alter the jurisdiction of 
     your committee, 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 from your committee to any House-Senate 
     conference on this legislation.
       I will seek to place our letters on H.R. 1644 into the 
     Congressional Record during floor consideration of the bill. 
     I appreciate your cooperation regarding this legislation and 
     look forward to continuing to work together as this measure 
     moves through the legislative process.
           Sincerely,
                                                  Edward R. Royce,
     Chairman.
                                  ____

                                         House of Representatives,


                                   Committee on the Judiciary,

                                   Washington, DC, April 27, 2017.
     Hon. Edward R. Royce,
     Chairman, Committee on Foreign Affairs, Washington, DC.
       Dear Chairman Royce: I write with respect to H.R. 1644, the 
     ``Korean Interdiction and Modernization of Sanctions Act.'' 
     As a result of your having consulted with us on provisions 
     within H.R. 1644 that fall within the Rule X jurisdiction of 
     the Committee on the Judiciary, I forego any 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. 1644 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. 1644 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. 1644.
           Sincerely,
                                                    Bob Goodlatte,
     Chairman.
                                  ____

                                         House of Representatives,


                                 Committee on Foreign Affairs,

                                   Washington, DC, April 26, 2017.
     Hon. Bob Goodlatte,
     Chairman, Committee on the Judiciary, Washington, DC.
       Dear Chairman Goodlatte: Thank you for consulting with the 
     Foreign Affairs Committee and agreeing to be discharged from 
     further consideration of H.R. 1644, the Korean Interdiction 
     and Modernization of Sanctions Act, so that the bill may 
     proceed expeditiously to the House floor.
       I agree that your forgoing further action on this measure 
     does not in any way diminish or alter the jurisdiction of 
     your committee, 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 from your committee to any House-Senate 
     conference on this legislation.
       I will seek to place our letters on H.R. 1644 into the 
     Congressional Record during floor consideration of the 
     measure. I appreciate your cooperation regarding this 
     legislation

[[Page H3033]]

     and look forward to continuing to work together as this 
     measure moves through the legislative process.
           Sincerely,
                                                  Edward R. Royce,
     Chairman.
                                  ____

         House of Representatives, Committee on Transportation and 
           Infrastructure,
                                   Washington, DC, April 26, 2017.
     Hon. Ed Royce,
     Chairman, Committee on Foreign Affairs, Washington, DC.
       Dear Chairman Royce: I write concerning H.R. 1644, the 
     ``Korean Interdiction and Modernization of Sanctions Act.'' 
     This legislation includes matters that fall within the Rule X 
     jurisdiction of the Committee on Transportation and 
     Infrastructure.
       In order to expedite Floor consideration of H.R. 1644, the 
     Committee on Transportation and Infrastructure will forgo 
     action on this bill. However, this is conditional on our 
     mutual understanding that forgoing consideration of the bill 
     does not prejudice the Committee with respect to the 
     appointment of conferees or to any future jurisdictional 
     claim over the subject matters contained in the bill or 
     similar legislation that fall Within the Committee's Rule X 
     jurisdiction. I request you urge the Speaker to name members 
     of the Committee to any conference committee named to 
     consider such provisions.
       Please place a copy of this letter and your response 
     acknowledging our jurisdictional interest into the committee 
     report on H.R. 1644 and in the Congressional Record during 
     House Floor consideration of the bill. Thank you for working 
     with us on this bill, and I look forward to working with the 
     Committee on Foreign Affairs as the bill moves through the 
     legislative process.
           Sincerely,
                                                     Bill Shuster,
     Chairman.
                                  ____

                                         House of Representatives,


                                 Committee on Foreign Affairs,

                                   Washington, DC, April 26, 2017.
     Hon. Bill Shuster,
     Chairman, Committee on Transportation and Infrastructure, 
         Washington, DC.
       Dear Mr. Chairman: Thank you for consulting with the 
     Foreign Affairs Committee and agreeing to be discharged from 
     further consideration of H.R. 1644, the Korean Interdiction 
     and Modernization of Sanctions Act, so that the bill may 
     proceed expeditiously to the House floor.
       I agree that your forgoing further action on this measure 
     does not in any way diminish or alter the jurisdiction of 
     your committee, 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 from your committee to any House-Senate 
     conference on this legislation.
       I will seek to place our letters on H.R. 1644 into the 
     Congressional Record during floor consideration of the bill. 
     I appreciate your cooperation regarding this legislation and 
     look forward to continuing to work together as this measure 
     moves through the legislative process.
           Sincerely,
                                                  Edward R. Royce,
                                                         Chairman.

                              {time}  1500

  Mr. ENGEL. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise in strong support of this legislation, and let me 
start by thanking our chairman on the Foreign Affairs Committee, Ed 
Royce from California. His personal commitment to this important issue 
is reflected by his long track record and leadership in crafting the 
legislation before us today. We have had innumerable talks about North 
Korea and the threat through the years. Ed Royce has always been there 
at the forefront in this very important issue.
  I am proud to be the lead Democratic cosponsor of the bill. We stand 
on the floor today speaking in a unified, bipartisan voice about the 
threat that North Korea and the Kim regime pose to the United States, 
to our friend and allies, and to peace and stability across the globe.
  Already, Mr. Speaker, North Korea poses a potentially catastrophic 
danger to our closest allies in Northeast Asia: Japan and South Korea. 
With each passing day, the reclusive regime in Pyongyang continues to 
make progress on nuclear and ballistic missile technology that could 
reach American soil.
  This isn't a laughing matter. This isn't a matter about something 
that might happen. This is a matter about something that will happen, 
unless we take steps to prevent it from happening.
  American administrations of both parties have tried and failed to 
curb the dangerous behavior of the Kim regime. Before Kim, you had his 
father and his grandfather before him. There is plenty of blame to go 
around for how we got here, but rehashing past mistakes won't get us 
anywhere. Instead, the United States and other global powers need to 
focus on this challenge before it is too late.
  However, I fear that the administration's inconsistency in recent 
weeks has thrown fuel to the fire. We have seen the White House blow 
hot and cold on the potential for talks with Pyongyang. We have seen 
careless rhetoric alienate South Korea, a critical ally whose 
partnership is essential in trying to contain North Korea.
  One week we see saber rattling toward North Korea, including the 
false claim that an aircraft carrier battle group was headed toward the 
Korean Peninsula, and the next week, the President saying he would be 
``honored'' to meet with ``smart cookie'' Kim Jong-un, the latest in a 
long list of totalitarian strongmen who seem to have won the 
President's admiration.
  We are sending mixed signals, Mr. Speaker, and the world is taking 
notice. Inconsistency on national security matters is not a foreign 
policy strategy that will succeed. When America appears confused or 
unmoored, it emboldens our adversaries and gives our friends and allies 
pause. When we are talking about nuclear weapons, there is simply no 
margin for error.
  Fortunately, in this Congress, our priorities are clear: work with 
China and our close partners in the region and dial up pressure on the 
Kim regime to return to the negotiating table.
  Last year, under Chairman Royce's leadership, we passed a sanctions 
bill that President Obama signed into law.
  Kim Jong-un is exceedingly crafty: his regime is becoming 
increasingly effective at invading international sanctions.
  When we make sanctions tougher, they come up with new ways to get 
around them: phony bank accounts, fake companies overseas, shipments 
under foreign flags.
  We need to go back to the well to close the loopholes that the regime 
exploits. That is what this measure does. It dials up sanctions on 
those who do business with the Kim regime, hopefully, making them think 
twice before providing cover to one of the most brutal human rights 
abusers in the world and the nuclear ambitions of the leader of that 
country.
  If you buy certain materials like metals or minerals from North 
Korea, if you sell fuel that the North Korean military can use, if you 
have a role in maintaining overseas bank accounts or insuring the ships 
Pyongyang uses to evade the law, then you are going to get caught up in 
these new sanctions.
  If you ignore the U.N.'s limits on important North Korean coal or 
iron, or try to buy cheap textiles or fishing rights from the 
government, or help the Kim regime conduct business online, you will be 
subject to additional scrutiny with this legislation.
  With this bill, we will target those who use North Korean forced 
labor, a gross human rights abuse and a cash cow for the regime. We 
will consider limiting certain types of assistance to countries buying 
or selling American equipment to Pyongyang.
  In light of the recent public assassination of Kim's half brother, 
and other nefarious activities, we require the State Department to take 
a hard look at whether North Korea should be put back on the State 
Sponsors of Terrorism list.
  The Kim regime must be made to understand that we will not back down 
in our effort to cut off support for its dangerous activities. Every 
time they cut another corner, we will put up another roadblock. We will 
come after them again and again until they realize there is no option 
but to sit down and negotiate.
  As we have seen, it won't be an easy process. Making real progress on 
complex global issues rarely is. Reckless threats and bombastic talk 
usually make matters worse, especially when you are dealing with an 
unpredictable and impulsive leader.
  The stakes are very high. No one wants to see war on the Korean 
Peninsula, least of all the 25 million people in Seoul and the nearly 
30,000 United States troops who are in Pyongyang's sights every single 
day.
  We need to remain focused, with clarity of purpose, in order to get 
the results we all want. This bipartisan bill builds on our record in 
the House of grappling with this challenge. I am

[[Page H3034]]

glad to join with Chairman Royce in this effort. I fully support this 
bill.
  Mr. Speaker, I reserve the balance of my time.
  Mr. ROYCE of California. Mr. Speaker, I yield 2 minutes to the 
gentleman from Ohio (Mr. Chabot), a senior member of the Committee on 
Foreign Affairs.
  Mr. CHABOT. Mr. Speaker, I thank the gentleman for yielding.
  Mr. Speaker, I rise today in support of H.R. 1644, the Korean 
Interdiction and Modernization of Sanctions Act.
  Kim Jong-un murdered his uncle. He murdered his brother. He and his 
father and grandfather were responsible for the deaths of hundreds of 
thousands, probably millions, of their own people. Now this ruthless 
tyrant is trying to develop long-range nuclear weapons that very soon 
could reach the United States.
  Let me be clear: North Korea is a threat to the security of the 
United States of America. It is a threat to our allies. It is a threat 
to the world. As long as North Korea has nuclear weapons, the world is 
not safe.
  For far too long, we have done very little to deter the Kim regime's 
persistent march in the development of its nuclear weapons program. 
That changes today.
  The Kim regime's nuclear program lives and dies by its access to hard 
currency. North Korea acquires that hard currency from various sources. 
We know that China is the worst offender. But China is not the only bad 
actor. Terrorist networks around the world purchase weapons, 
technology, and training from North Korea. North Korea, in exchange, 
gets that money, the hard currency that it needs.
  Autocrats like the Congo's Joseph Kabila have long reasoned that no 
one would actually enforce the arms embargo currently against North 
Korea. They continue to support the Kim regime and its nuclear program 
with no consequence.
  This bill would put a stop to that. It requires that the President 
cut off bad actors from our financial system. No more transactions in 
dollars. No more using banks that serve U.S. customers. The Kim regime 
will know that we are finally serious.
  I want to thank Chairman Royce for his leadership on this, Ranking 
Member Engel, and also Subcommittee Chairman Mr. Yoho and Ranking 
Member Sherman for their leadership.
  This is critical legislation. North Korea has been getting away with 
murder, literally, for far too long in their own country. We need to 
make sure that hundreds of thousands--perhaps millions--of Americans' 
lives are not wiped out by North Korea sometime in the very near future 
if we do not push back and actually stop their nuclear weapons program, 
particularly the ballistic missile system that they are trying to 
develop.
  Mr. ENGEL. Mr. Speaker, I yield 3 minutes to the gentleman from 
California (Mr. Sherman), the ranking member of the Asia and the 
Pacific Subcommittee of the Foreign Affairs Committee.
  Mr. SHERMAN. Mr. Speaker, I rise in strong support of H.R. 1644, the 
Korean Interdiction and Modernization of Sanctions Act.
  This bill was introduced by the chair and ranking member of the full 
committee, Mr. Royce and Mr. Engel; by the chair and ranking member of 
the Asia and the Pacific Subcommittee, Mr. Yoho; and myself. It is a 
clear example of the way bipartisanship should be here in the House of 
Representatives.
  North Korea continues to act as a state sponsor of terrorism, test 
ballistic missiles, conduct cyber warfare, build nuclear weapons, and 
threaten the United States and our allies.
  We need a strategy to confront North Korea. An essential part of that 
strategy is to confront North Korea with economic and political 
pressure. A key to that would be to get China fully on board and to be 
willing to threaten China with tariffs if China continued to serve as 
the lifeline for the North Korean criminal regime. In addition to 
working with China, we need to start modernizing our own sanctions 
regime to impose a greater cost on Kim Jong-un.
  This bill expands the North Korea Sanctions and Policy Enhancement 
Act passed by this Congress in 2016 to provide expanded and mandatory 
and discretionary sanctions on the North Korean Government, 
particularly involving gold and other precious minerals, jet fuel, 
coal, iron ore, and textiles.
  The bill requires U.S. financial institutions to ensure that no 
correspondent accounts are being used by foreign financial institutions 
to provide financial services to North Korea. It does a host of other 
necessary things, including requiring the State Department to submit to 
Congress a report detailing their decision on whether to put North 
Korea back on the State Sponsors of Terrorism list, and that we get 
that report within 90 days.
  It seems clear to me that North Korea should be listed as a state 
sponsor of terror. We took them off the list not because they stopped 
engaging in international terror, but as a quid pro quo for suspending 
their own nuclear program, which they didn't suspend.
  So why are they still off the list?
  There is no doubt that North Korea has engaged in multiple acts of 
international terrorism, including the murder of the half brother of 
Kim Jong-un; the cyber attack against Sony Pictures; and although the 
initial action was taken decades ago, they seized Japanese civilians in 
order to learn Japanese manners in order to instruct their spies. They 
continue to hold those Japanese civilians today in a continuing act of 
terrorism.
  Finally, the bill, requires a report from the President of 
cooperation between North Korea and Iran. We would suspect that North 
Korea, after it builds a certain cache of nuclear weapons, would be 
willing to sell to Iran not for millions but for billions of dollars 
fully assembled nuclear weapons or the fissile material to create 
those. This is an important thing Congress needs to address.
  Mr. ROYCE of California. Mr. Speaker, I yield 2 minutes to the 
gentleman from South Carolina (Mr. Wilson), a senior member of the 
Committee on Foreign Affairs, who also chairs the Armed Services 
Subcommittee on Emerging Threats and Capabilities.
  Mr. WILSON of South Carolina. Mr. Speaker, I appreciate Mr. Royce's 
determined leadership on this important issue of national security 
protecting American families.
  I am in strong support of H.R. 1644, the Korean Interdiction and 
Modernization of Sanctions Act. In 2003, I traveled to Pyongyang, North 
Korea, with the ranking member, Congressman Eliot Engel, in a 
bipartisan delegation, along with Congressman Curt Weldon, Chairman 
Jeff Miller, Silvestre Reyes, and Solomon Ortiz, where we saw firsthand 
the tyranny and oppression of the Communist regime.
  Last month, the House of Representatives overwhelmingly passed H. 
Res. 92, a bipartisan resolution I introduced condemning the regime in 
North Korea for their recent ballistic missiles, and called for the 
consideration of all available sanctions. It passed 398-3.
  Since then, North Korea has continued testing missiles and released 
yet another propaganda video--this one simulating the destruction of 
American troops, aircraft, warships, and even the U.S. Capitol 
Building.
  After 8 years of ``strategic patience,'' I appreciate the strong 
leadership of President Trump and his administration, along with the 
Ambassador to the U.N., Nikki Haley, and also Secretary of State Rex 
Tillerson.
  It is clear the regime in North Korea will only respond to strength, 
and these sanctions that are proposed in this package would effectively 
target the regime and any other individuals who would do business with 
North Korea, especially in the shipping and financial industries.
  I appreciate the extraordinary leadership of Chairman Ed Royce and 
Ranking Member Eliot Engel on the legislation, and I urge my colleagues 
to vote in support.

                              {time}  1515

  Mr. ENGEL. Mr. Speaker, before I call on the next speaker, I want to 
talk to the gentleman from South Carolina (Mr. Wilson). When we went on 
that trip to North Korea, I am sure that he will remember that he took 
a clandestine picture of a big billboard that was in Pyongyang showing 
a North Korean soldier with a bayonet sticking through an American 
soldier's head. So the propaganda and the anti-American

[[Page H3035]]

rhetoric is ingrained, it is taught, and it was very disconcerting. I 
remember the gentleman sitting in the front of the bus very 
clandestinely taking that picture so no one would know. It was really a 
good thing to do. I want to thank the gentleman.
  Mr. WILSON of South Carolina. Will the gentleman yield?
  Mr. ENGEL. I yield to the gentleman from South Carolina.
  Mr. WILSON of South Carolina. Mr. Speaker, it was my honor to be with 
Ranking Member Eliot Engel.
  Mr. ENGEL. Mr. Speaker, I yield 2 minutes to the gentleman from 
Massachusetts (Mr. Keating), the ranking member of the Subcommittee on 
Terrorism, Nonproliferation, and Trade of the Committee on Foreign 
Affairs.
  Mr. KEATING. Mr. Speaker, I rise in strong support of H.R. 1644, the 
Korean Interdiction and Modernization of Sanctions Act. I thank the 
chairman of the committee, the gentleman from California (Mr. Royce); 
and the ranking member, the gentleman from New York (Mr. Engel), for 
their leadership in this important legislation.
  This legislation furthers North Korea's severe financial isolation by 
further targeting banks and money lenders to gain cooperation 
throughout the region. This bipartisan bill builds on the pressure and 
sanctions imposed under both the Bush and Obama administrations to 
strengthen our response to North Korea's continued belligerence by, 
number one, expanding sanctions on North Korea's government 
transactions involving precious metals, minerals, jet fuel, and coal; 
providing restrictions on U.S. foreign assistance to any country that 
buys or sells military equipment from North Korea; and provides 
increasing scrutiny of North Korean shipping vessels to target against 
trafficking, counterfeiting, and aspects of North Korea's illicit 
economy, among other things, in order to tighten sanctions in 
accordance with the United Nations Security Council. This vote comes at 
a critical juncture. Despite rounds of sanctions aimed at squeezing the 
faltering economy of North Korea, recent reports from the peninsula 
suggest that the country continues to gain sufficient traction to move 
forward.
  North Korea poses a real and immediate threat to the stability in the 
region, to our allies, and to ourselves. By broadening eligibility 
activities to be sanctioned and extending the duration of sanctions to 
prevent arms trade, this bill will further leverage the North Korean 
economy to enhance our ability to reduce its nuclear threat. What is 
more, this bill will strengthen our ability to hinder trade between 
North Korea's strongest partners, including businesses and banks within 
Russia and China that are exposed to the international financial 
market. In the face of growing uncertainty and seeming lack of clarity 
surrounding the current administration's plan toward North Korea, this 
act demonstrates the strong, bipartisan, and resolute stance of this 
Congress in the face of increased provocative and aggressive actions by 
North Korea.
  As an original sponsor of the unprecedented legislation signed into 
law last year that sanctioned North Korea for its egregious human 
rights violations, I am proud to now support this critical legislation 
and urge my colleagues to do the same.
  Mr. ROYCE of California. Mr. Speaker, I yield 2\1/2\ minutes to the 
gentleman from Texas (Mr. Poe), the chairman of the Subcommittee on 
Terrorism, Nonproliferation, and Trade of the Committee on Foreign 
Affairs.
  Mr. POE of Texas. Mr. Speaker, I thank the chairman and ranking 
member for sponsoring this legislation.
  Mr. Speaker, a few years ago, North Korea ordered its missile units 
on standby to strike the United States. Little Kim, as I call him, and 
his generals convened a press conference and displayed a chart of what 
they called U.S. mainland strike plan.
  The attack plan targeted several major United States population 
centers, including Austin, Texas. Mr. Speaker, I am personally offended 
by that. At the time of this plan, it was ridiculed by international 
media. After all, the administration was pursuing a passive strategic 
patience plan.
  But now experts say that, in less than 4 years, North Korea will have 
intercontinental ballistic missiles capable of raining down nuclear 
weapons on the entire United States. North Korea is making steady 
progress on its nuclear program. It conducted two nuclear tests in 2016 
alone.
  So the time has come to tighten the noose on little Kim. We need to 
choke off the sources of his ill-gotten gain, and these sanctions will 
help do that. This bill expands sanctions to target some of the 
regime's most lucrative sources of revenue. It also requires the State 
Department to reassess whether North Korea should be placed back on the 
State Sponsors of Terrorism list. I think that is long overdue.
  Little Kim has earned the distinction of being a worldwide terrorist. 
So little Kim means it when he says he wants to destroy the United 
States. He even wants to put ICBMs in submarines and send them off the 
coast of California. He cannot be allowed to do this mischief. He needs 
to know the United States means it when we say that we will protect the 
American people.
  And that is just the way it is.
  Mr. ENGEL. Mr. Speaker, I yield 2 minutes to the gentleman from 
Virginia (Mr. Connolly), my friend, co-chair of the Korea Caucus, and a 
respected member of the Committee on Foreign Affairs.
  Mr. CONNOLLY. Mr. Speaker, I thank my good friend from New York, our 
very distinguished ranking member.
  I rise today in support of H.R. 1644, the Korean Interdiction and 
Modernization of Sanctions Act. I am pleased to cosponsor this bill, an 
act that updates and expands the North Korea sanctions policy that was 
enacted just last year. It is undeniable that North Korea's nuclear and 
ballistic missile programs have accelerated in recent years. In 2016 
alone, the regime conducted two nuclear tests and more than 20 missile 
tests.
  In response to this threat, the U.S. helped negotiate the passage of 
the U.N. Security Council Resolutions 2270 and 2231 to strengthen U.N. 
sanctions against the regime. H.R. 1644 builds on those Security 
Council resolutions by expanding mandatory and discretionary sanctions 
and authorizing new sanctions provisions related to evasion and the use 
of North Korean exported labor, correspondent banking, and trade in 
oil, textiles, food, and agricultural products.
  For example, if someone knowingly transfers significant amounts of 
jet fuel to North Korea, then the President could freeze that person's 
assets that come within the jurisdiction of the United States. Vessels 
that use North Korean ports will be banned from entering U.S. waters or 
using U.S. ports. The bill also establishes restrictions on the use of 
foreign assistance to any country that violates these provisions.
  I want to thank the chairman and the ranking member for their 
leadership and for including my amendment, which will ensure that U.S. 
sanctions against North Korea do not impede the provision of vital U.S. 
assistance to developing countries for maternal and child health, 
disease prevention, and response.
  U.S. sanctions are necessary, but they are not a complete tool to 
address the threat of North Korea's impending nuclear development 
program. The U.S. must undertake a rigorous diplomatic effort to urge 
the global community, and China in particular, to use their goodwill, 
their leverage to enforce international sanctions and to get North 
Korea back to the negotiating table.
  The Korean Peninsula remains one of the most dangerous flash points 
in the world. President Trump, sadly, I think has escalated regional 
tensions by sending mixed signals about the location of U.S. military 
assets, about his views, as the ranking member said, about Kim Jong-un, 
and about how best the United States ought to respond that we are going 
to disabuse ourselves of the previous policy which seems to mean the 
only policy left is kinetic, a military option. I don't think that 
makes anything better on the Korean Peninsula.
  I thank the leaders for this effort. I think it is the right way to 
go. I support it fully.
  Mr. ROYCE of California. Mr. Speaker, I yield 3 minutes to the 
gentleman from Florida (Mr. Yoho), chairman of the Subcommittee on Asia 
and the Pacific of the Committee on Foreign Affairs and a coauthor of 
this bill.

[[Page H3036]]

  

  Mr. YOHO. Mr. Speaker, I rise today in strong support of the Korea 
Interdiction and Modernization of Sanctions Act, H.R. 1644, the KIMS 
Act.
  I thank Chairman Royce for his leadership in guiding this bill 
through the Committee on Foreign Affairs and the original cosponsors of 
this bill, Ranking Member Engel and Congressman Sherman, who serves 
alongside me as the ranking member of the Subcommittee on Asia and the 
Pacific. I also thank the chairman and ranking member for accepting my 
amendment to this bill that targets the ability of leaders like those 
of the Democratic Republic of the Congo that have been buying North 
Korean arms for years with impunity, supplying a means of income for 
the North Korean regime to fund their nuclear program and the regime of 
terror and provocations.
  Mr. Speaker, North Korea's nuclear program has never been a bigger 
threat, and we need to respond with all the tools at our disposal. 
After all, the world community is against nuclear proliferation from 
any country, so the world community should support the United States 
preventing North Korea's nuclear program. If anything, Pyongyang has 
dramatically accelerated its belligerent behavior, conducting two 
nuclear tests and two dozen missile launches last year.
  Speaking before the U.N. Security Council, Secretary Tillerson was 
right when he said that the threat of a North Korea nuclear attack on 
Seoul or Tokyo is very real. That is why it is so important that 
Congress, as we are doing here today, continue to apply pressure on 
Pyongyang, providing the administration with the tools it needs to 
deprive the Kim regime of the hard currency it depends on to feed its 
illicit weapons program.
  Importantly, this measure will advance the national security 
interests of not just the United States and the Korean Peninsula but of 
the whole Asia-Pacific region and will contribute to regional security 
by targeting North Korea's abhorrent overseas slave labor, which is 
estimated at bringing in as much as $230 million each year. There are 
precious few nonmilitary tools left for managing the security situation 
on the Korean Peninsula. Financial sanctions are the most important and 
effective of these tools.
  By advancing this legislation, the House will continue its critical 
work to ensure our country has the necessary authorities and mandates 
in place to ensure our financial measures are effective. A peaceful 
outcome on the peninsula depends on inflicting enough pressure on Kim 
to force him to make the hard but smart choices. This bill will affect 
him where it hurts--in his bank accounts.
  Again, I commend Chairman Royce and Ranking Member Engel for their 
contributions and leadership on this important legislation. I urge my 
colleagues to support this bill.
  Mr. ENGEL. Mr. Speaker, I yield 2 minutes to the gentleman from Texas 
(Mr. Castro), co-chair of the Japan Caucus, a very respected member of 
our Committee on Foreign Affairs, and a member of the Permanent 
Select Committee on Intelligence.

  Mr. CASTRO of Texas. Mr. Speaker, I thank Ranking Member Engel for 
yielding me this time. I rise in support of H.R. 1644, the Korean 
Interdiction and Modernization of Sanctions Act, legislation that would 
more effectively cut off the Kim regime's access to hard currency and 
equipment for its ballistic missile and nuclear programs.
  This legislation updates and expands the range of sanctions available 
for the United States to use against persons or entities that violate 
existing U.S. sanction laws and United Nations Security Council 
resolutions regarding North Korea. The bill also requires the President 
to report to Congress on foreign countries' compliance with those 
Security Council resolutions.
  The United States is determined to preserve the stability in the 
Asia-Pacific region. Our Nation will uphold its treaty commitments to 
Japan and South Korea and will defend their security in the face of the 
North Korean threat.
  I urge my colleagues to join me and vote in favor of this 
legislation, which makes clear that the United States will target 
individuals, companies, and banks that continue to do business with 
North Korea.
  Mr. ROYCE of California. Mr. Speaker, I reserve the balance of my 
time.
  Mr. ENGEL. Mr. Speaker, I yield 2 minutes to the distinguished 
gentleman from Texas (Mr. Doggett).

                              {time}  1530

  Mr. DOGGETT. Mr. Speaker, I commend the leaders of the Foreign 
Affairs Committee for their leadership on this important matter. We 
need stronger international action like this to send a message to the 
North Korean regime.
  Our sanctions approach should be at least as strong against North 
Korea as it has been against Iran; and to be effective, sanctions must 
include all countries. Chinese trade during the last year with North 
Korea has actually increased. It is clear that it is shirking its 
responsibility. If it were to limit energy and access to hard currency 
reserves to North Korea, the regime would likely collapse.
  Intensified sanctions of the type contemplated by this measure are 
particularly important because, despite all of the recent saber 
rattling from Donald Trump, we have no acceptable military solution. 
Any military attack on North Korea would result in the death of 
hundreds of thousands, if not millions, of the 25 million Koreans in 
the greater Seoul area and the over 100,000 Americans that are in that 
region.
  Only this week, General McMaster, President Trump's national security 
adviser, conceded that a preventive military strike would result in a 
human catastrophe. We cannot eliminate the risk of North Korea, but we 
can better manage it, and this measure is a step in the right 
direction.
  The arsenal of our democracy is more than just our military might. 
Let's apply every bit of international pressure possible and hope that 
the great self-described dealmaker Donald J. Trump can begin direct 
negotiations to secure an agreement with North Korea that achieves at 
least as much as President Obama did with Iran.
  Mr. ROYCE of California. Mr. Speaker, I continue to reserve the 
balance of my time.
  Mr. ENGEL. Mr. Speaker, may I ask how much time is remaining on both 
sides?
  The SPEAKER pro tempore. The gentleman from New York has 3\1/2\ 
minutes remaining. The gentleman from California has 4\1/2\ minutes 
remaining.
  Mr. ENGEL. Mr. Speaker, I yield 1 minute to the gentlewoman from 
Florida (Ms. Frankel), a very respected and hardworking member of the 
Foreign Affairs Committee.
  Ms. FRANKEL of Florida. Mr. Speaker, I thank my colleague from New 
York.
  I just returned from a trip to South Korea and Japan, a bipartisan 
trip, where we focused on the dangers of North Korea. First, I want to 
just say what became very clear to us is how important our relationship 
is with South Korea and Japan, both economically and for our national 
security.
  We sat in roundtable discussions with scholars, ambassadors, and 
military leaders from the United States, Japan, South Korea, and China; 
and I will tell you one thing was unanimous in the thinking: a 
preemptive military strike right now on our part would be 
catastrophic--catastrophic not only to our friends in South Korea, the 
millions who live there, our friends in Japan, but the hundreds of 
thousands of American citizens and our military personnel.
  I thank our chairman and our ranking member for their good work, and 
I urge my colleagues to support this good bill.
  Mr. ENGEL. Mr. Speaker, I yield myself the balance of my time, and I 
want to close the way I opened. I want to again thank Chairman Royce 
for authoring this measure and for his hard work.
  One of the things I have been most proud about as the ranking member 
of the Foreign Affairs Committee is the collaborative work that the 
chairman and I have done together in passing so many bills with both 
our names. It is what the American people want us to do, and I think 
the Foreign Affairs Committee is a great example of how the American 
people want Congress to work together. This bill is exactly a product 
of that, of working together.
  If we want to pressure the Kim regime and if we want to prevent a 
potentially devastating conflict in Northeast Asia, we cannot be 
impulsive. The risks are too high. We need a strong, focused, and 
consistent policy. We need

[[Page H3037]]

strong measures that cut off support for the Kim regime and careful 
diplomacy to bring the relevant players together. This bill represents 
an important part of such a policy.
  So, again, as I said, I am glad we are advancing this measure with 
strong bipartisan support, and I hope the other body will take up this 
legislation soon.
  Mr. Speaker, I yield back the balance of my time.
  Mr. ROYCE of California. Mr. Speaker, I yield myself such time as I 
may consume.
  Mr. Speaker, I thank my colleague, Mr. Engel, for his comments.
  I will return to this theme about the urgent threat that the United 
States and our allies face here. We have listened to experts who have 
looked at this problem. In less than 4 years, Pyongyang may have the 
ability to make a reliable intercontinental ballistic missile topped by 
a nuclear warhead capable of targeting the continental United States. 
When we watch these tests and we see, from a North Korean submarine, 
how they are launching missiles and we watch the atomic weapons tests 
that they are doing, you can see how North Korea has advanced in their 
capabilities as they try to shrink these warheads and figure out how to 
put them onto an ICBM.

  The problem is that, in the next few years, at the current rate of 
production of their nuclear material, they are going to be able to 
build out 100 atomic weapons for these intercontinental ballistic 
missiles. So the threat from North Korea is real, and real threats 
demand real responses.
  We have tried various approaches in the past. We tried strategic 
patience during the last administration. I will tell you that I think 
Secretary Tillerson has helped devise a strategy of maximum pressure 
that makes a tremendous amount of sense to me, and I will share with 
you why I think it is very credible.
  We have seen in the past, in 2005, back during Banco Delta Asia, back 
when North Korea was caught counterfeiting $100 U.S. bank notes, a 
strategy deployed that froze the capability of that regime to move 
forward with its nuclear weapons program. We know from talking to 
defectors about the impact that that had internally on North Korea 
because, frankly, these weapons programs are very expensive to run. It 
requires billions and billions of dollars every year.
  North Korea doesn't really manufacture much, other than some of the 
clandestine missile parts and so forth that they transfer overseas and 
some meth and counterfeit cigarettes. All of that can be halted so that 
hard currency doesn't come into the hands of the regime, and, 
therefore, the regime will no longer have this capability.
  Because it happened in 2005 and because we know of the consequences 
at the time, but also because of what we have seen with other nations, 
we should move with bipartisan legislation here.
  I am going to speak for a moment about what this House of 
Representatives and our counterparts in the Senate did in the 1990s 
when it came to the issue of a regime in South Africa that had obtained 
a nuclear weapon and also was doubling down on their practices of 
apartheid in terms of the way that that regime treated its own people.
  If you will recall, despite the assurances and warnings about 
sanctions that this was the wrong road, this House stood up, and over 
80 percent of the Members here and over 80 percent of the Members in 
the Senate--or 75--huge bipartisan majorities of Republicans and 
Democrats came together with a policy that said enough--enough of the 
conduct of that apartheid state, enough of them developing a nuclear 
weapon.
  It was time for the United States to lead on this, work with the 
international community and enforce sanctions in a way that did what? 
That, within a short period of time, brought the apartheid regime to 
offer up to the international community that atomic weapon and to say: 
We are done with it. And for the South African apartheid regime to say, 
in terms of elections: Next year we are going to hold free and fair 
elections in South Africa--in terms of the release of Nelson Mandela 
and in terms of his election to President of South Africa.
  Now, when people argue with us that sanctions may not be a way 
forward, I would remind them that, when we unite the international 
community and when we speak with one voice, yes, we could see a change 
of conduct in this regime in North Korea. So I say this gives a 
powerful tool to cut off the funding by going after those who do 
business with the regime in violation of U.N. Security Council 
resolutions.
  Mr. Speaker, I thank Mr. Engel for his assistance in this, and I 
thank all of my colleagues who helped on this measure.
  Mr. Speaker, I yield back the balance of my time.
  Mr. SMITH of New Jersey. Mr. Speaker, the era of strategic patience 
is over. In its place there is a need for more concerted action to 
counter North Korea's nuclear proliferation, its horrific human rights 
abuses, and its sponsorship of terrorism globally. This bill 
strengthens the tools the Administration can use to counter the threat 
posed by a nuclear armed North Korea. It targets the shipping and 
financial sectors and also targets those, in China and Russia and 
elsewhere, who profit from using North Korean slave labor. I strongly 
support this legislation and commend my colleagues on the House Foreign 
Affairs Committee--Chairman Ed Royce and Ranking Member Eliot Engel for 
their leadership.
  The Administration must continue to uncover and sanction both 
Pyongyang's enablers and those it enables. We should further target 
with sanctions those individuals responsible for gross human rights 
violations inside the so-called ``hermit kingdom'' and stop money and 
materials from reaching terrorists and nuclear proliferators globally.
  Not taking the North Korea threat seriously enough have been a 
bipartisan problem of the last three Administrations. I commend the 
Trump Administration for taking more strategic actions. The U.S. cannot 
sit on the sidelines while Kim Jong Un proliferates nuclear and missile 
technology that will threaten the United States. We cannot stand idly 
by while Kim Jong Un sponsors terrorism and traffics his own people for 
profit. We cannot be silent while an estimated 120,000 people are being 
held in political-prison labor camps, suffering and dying in barbaric 
conditions. Torture, rape, and the public executions of religious 
believers are part of the daily life in these camps.
  North Korea's political-prisoner camps are inhumane, they are 
horrific, they are a crime against humanity and they must be 
dismantled.
  We know that the threat posed by North Korea was high on the agenda 
of President Trump and President Xi meeting in Florida several weeks 
ago. As we all know, the Chinese government's actions have not always 
been helpful. China usually describes the China-North Korea 
relationship as being one of ``like lips to teeth.'' It was good to see 
this formula changed after the Trump-Xi meeting. Foreign Minister Wang 
Yi know says China's relationship with ``the Peninsula'' both North and 
South Korea is like lips to teeth. That is big change in rhetoric and 
hopefully China will no longer prop up Kim Jong Un's deliberate 
attempts to destabilize the Korean peninsula.
  In addition to a more robust sanctions regime, the Administration 
should pay more attention to undermining the faith of the North Korean 
people in Kim Jong Un's leadership. The cult of personality that 
surrounds the Kim family remains a strong deterrent to protest and 
uprisings within North Korea. The Kim family is accorded god-like 
status--the cult of personality is sometimes called Juche--and it 
offers Kim Jong Un a `divine mandate' to pursue nuclear weapons, 
national security, and human rights abuses with impunity.
  More needs to be done to tarnish Kim Jong Un's image and that of the 
Kim family. The U.S. should be actively seeking to undermine the cult 
of personality and drive a wedge between North Korea elites and the Kim 
family. Sanctions are one way to drive such a wedge, but also needed 
are more radio broadcasts and USB drives with South Korean pop culture 
and news and information targeting North Korean military and elites. 
The more information the North Korean people have, the less isolated 
they are, the more likely they will see the Kim family as false gods.
  Some of this work is being done by North Korean defectors living in 
South Korea. But their efforts are tiny and were not supported by the 
previous Administration.
  The current sanctions regime is having some effect. High-level 
diplomats, military leaders, and the families of high-ranking officials 
are defecting--they are recognizing that they will be held accountable 
if they continue to support Kim Jong Un's barbaric regime.
  Nevertheless, recent evidence shows that North Korea has become very 
good at evading sanctions. Last month a U.N. report made clear that 
North Korea is using `increasingly sophisticated' tactics to evade 
existing sanctions. Money, arms, and people are moved across borders by 
networks of middlemen and banks to avoid detection. The U.N. report 
concluded that sanctions enforcement `remains insufficient.' This 
legislation will expand U.S.

[[Page H3038]]

sanctions to target those help Kim Jong Un avoid sanctions and fund his 
nuclear program and human rights abuses.
  I urge support for the legislation offered today and commend my 
colleagues for bringing this important legislation before the House.
  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. 1644, as amended.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds 
being in the affirmative, the ayes have it.
  Mr. ROYCE of California. Mr. Speaker, on that I demand the yeas and 
nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further 
proceedings on this motion will be postponed.

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