[Congressional Record Volume 165, Number 99 (Thursday, June 13, 2019)]
[Senate]
[Pages S3522-S3527]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 525. Mr. VAN HOLLEN (for himself, Mr. Toomey, Mr. Brown, Mr. 
Portman, Mr. Gardner, and Mr. Markey) submitted an amendment intended 
to be proposed by him to the bill S. 1790, to authorize appropriations 
for fiscal year 2020 for military activities of the Department of 
Defense, for military construction, and for defense activities of the 
Department of Energy, to prescribe military personnel strengths for 
such fiscal year, and for other purposes; which was ordered to lie on 
the table; as follows:

       At the end of division A, add the following:

 TITLE XVII--OTTO WARMBIER BANKING RESTRICTIONS INVOLVING NORTH KOREA 
                              ACT OF 2019

     SEC. 1701. SHORT TITLE.

       This title may be cited as the ``Otto Warmbier Banking 
     Restrictions Involving North Korea Act of 2019''.

           Subtitle A--Sanctions With Respect to North Korea

     SEC. 1711. FINDINGS.

       Congress finds the following:
       (1) Since 2006, the United Nations Security Council has 
     adopted 10 resolutions imposing sanctions against North Korea 
     under chapter VII of the United Nations Charter, which--
       (A) prohibit the use, development, and proliferation of 
     weapons of mass destruction by North Korea;
       (B) prohibit the supply, sale, or transfer of arms and 
     related materiel to or from North Korea;
       (C) prohibit the transfer of luxury goods to North Korea;
       (D) restrict access by North Korea to financial services 
     that could contribute to nuclear, missile, or other programs 
     related to the development of weapons of mass destruction;
       (E) restrict North Korean shipping, including the 
     registration, reflagging, or insuring of North Korean ships;
       (F) prohibit, with limited exceptions, North Korean exports 
     of coal, precious metals, iron, vanadium, and rare earth 
     minerals;
       (G) prohibit the transfer to North Korea of rocket, 
     aviation, or jet fuel, as well as gasoline, condensates, and 
     natural gas liquids;
       (H) prohibit new work authorization for North Korean 
     laborers and require the repatriation of all North Korean 
     laborers by December 2019;
       (I) prohibit exports of North Korean food and agricultural 
     products, including seafood;
       (J) prohibit joint ventures or cooperative commercial 
     entities or expanding joint ventures with North Korea;
       (K) prohibit exports of North Korean textiles;
       (L) require member countries of the United Nations to 
     seize, inspect, and impound any ship in its jurisdiction that 
     is suspected of violating Security Council resolutions with 
     respect to North Korea and to interdict and inspect all cargo 
     heading to or from North Korea by land, sea, or air;
       (M) limit the transfer to North Korea of refined petroleum 
     products and crude oil;
       (N) ban the sale or transfer to North Korea of industrial 
     machinery, transportation vehicles, electronics, iron, steel, 
     and other metals;
       (O) reduce North Korean diplomatic staff numbers in member 
     countries of the United Nations and expel any North Korean 
     diplomats found to be working on behalf of a person subject 
     to sanctions or assisting in sanctions evasion;
       (P) limit North Korean diplomatic missions abroad with 
     respect to staff size and access to banking privileges and 
     prohibit commerce from being conducted out of North Korean 
     consular or diplomatic offices;
       (Q) require member states of the United Nations to close 
     representative offices, subsidiaries, and bank accounts in 
     North Korea;
       (R) prohibit countries from providing or receiving military 
     training to or from North Korea or hosting North Koreans for 
     specialized teaching or training that could contribute to the 
     programs of North Korea related to the development of weapons 
     of mass destruction;
       (S) ban countries from granting landing and flyover rights 
     to North Korean aircraft; and
       (T) prohibit trade in statuary of North Korean origin.
       (2) The Government of North Korea has threatened to carry 
     out nuclear attacks against the United States, South Korea, 
     and Japan.
       (3) The Government of North Korea tested its sixth and 
     largest nuclear device on September 3, 2017.
       (4) According to a report by the International Atomic 
     Energy Agency released in August 2018, ``The continuation and 
     further development of the DPRK's nuclear programme and 
     related statements by the DPRK are a cause for grave concern. 
     The DPRK's nuclear activities, including those in relation to 
     the Yongbyon Experimental Nuclear Power Plant (5 MW(e)) 
     reactor, the use of the building which houses the reported 
     centrifuge enrichment facility and the construction at the 
     light water reactor, as well as the DPRK's sixth nuclear 
     test, are clear violations of relevant UN Security Council 
     resolutions, including resolution 2375 (2017) and are deeply 
     regrettable.''.
       (5) In July 2018, Secretary of State Mike Pompeo testified 
     to the Committee on Foreign Relations of the Senate that 
     North Korea ``continue[s] to produce fissile material'' 
     despite public pledges by North Korean leader Kim Jong-un to 
     denuclearize.
       (6) The 2019 Missile Defense Review conducted by the 
     Department of Defense states that North Korea ``continues to 
     pose an extraordinary threat and the United States must 
     remain vigilant. In the past, North Korea frequently issued 
     explicit nuclear missile threats against the United States 
     and allies, all the while working aggressively to field the 
     capability to strike the U.S. homeland with nuclear-armed 
     ballistic missiles. Over the past decade, it has invested 
     considerable resources in its nuclear and ballistic missile 
     programs, and undertaken extensive nuclear and missile 
     testing in order to realize the capability to threaten the 
     U.S. homeland with missile attack. As a result, North Korea 
     has neared the time when it could credibly do so.''.
       (7) Financial transactions and investments that provide 
     financial resources to the Government of North Korea, and 
     that fail to incorporate adequate safeguards against the 
     misuse of those financial resources, pose an undue risk of 
     contributing to--
       (A) weapons of mass destruction programs of that 
     Government; and
       (B) efforts to evade restrictions required by the United 
     Nations Security Council on imports or exports of arms and 
     related materiel, services, or technology by that Government.
       (8) The Federal Bureau of Investigation has determined that 
     the Government of North Korea was responsible for 
     cyberattacks against entities in the United States, South 
     Korea, and around the world.
       (9) In November 2017, President Donald Trump designated the 
     government of North Korea as a state sponsor of terrorism 
     pursuant to authorities under the Export Administration Act 
     of 1979 (50 U.S.C. App. 2401 et seq.), as continued in effect 
     at the time under the International Emergency Economic Powers 
     Act (50 U.S.C. 1701 et seq.)), the Foreign Assistance Act of 
     1961 (22 U.S.C. 2151 et seq.), and the Arms Export Control 
     Act (22 U.S.C. 2751 et seq.);
       (10) On February 22, 2018, the Secretary of State 
     determined that the Government of North Korea was responsible 
     for the lethal nerve agent attack in 2017 on Kim Jong Nam, 
     the half-brother of North Korean leader Kim Jong-un, in 
     Malaysia, triggering sanctions required under the Chemical 
     and Biological Weapons Control and Warfare Elimination Act of 
     1991 (22 U.S.C. 5601 et seq.).
       (11) The strict enforcement of sanctions is essential to 
     the efforts of the international community to achieve the 
     peaceful, complete, verifiable, and irreversible 
     dismantlement of weapons of mass destruction programs of the 
     Government of North Korea.

     SEC. 1712. SENSE OF CONGRESS.

       It is the sense of Congress that--
       (1) the United States is committed to working with its 
     allies and partners to halt the nuclear and ballistic missile 
     programs of North Korea through a policy of maximum pressure 
     and diplomatic engagement;
       (2) the imposition of sanctions, including those under this 
     title, should not be construed to limit the authority of the 
     President to fully engage in diplomatic negotiations to 
     further the policy objective described in paragraph (1);
       (3) the successful use of sanctions to halt the nuclear and 
     ballistic missile programs of North Korea is part of a 
     broader diplomatic and economic strategy that relies on 
     effective coordination among relevant Federal agencies and 
     officials, as well as with international partners of the 
     United States; and
       (4) the coordination described in paragraph (3) should 
     include proper vetting of external messaging and 
     communications from all parts of the Executive branch to 
     ensure that those communications are an intentional component 
     of and aligned with the strategy of the United States with 
     respect to North Korea.

     SEC. 1713. DEFINITIONS.

       (a) In General.--In this subtitle, the terms ``applicable 
     Executive order'', ``applicable United Nations Security 
     Council resolution'', ``appropriate congressional 
     committees'', ``Government of North Korea'', ``North Korea'', 
     and ``North Korean financial institution'' have the meanings 
     given those terms in section 3 of the North Korea Sanctions 
     and Policy Enhancement Act of 2016 (22 U.S.C. 9202), as 
     amended by subsection (b).

[[Page S3523]]

       (b) Amendments to Definitions in North Korea Sanctions and 
     Policy Enhancement Act of 2016.--Section 3 of the North Korea 
     Sanctions and Policy Enhancement Act of 2016 (22 U.S.C. 9202) 
     is amended--
       (1) in paragraph (1)(A), in the matter preceding clause 
     (i), by striking ``Executive Order No. 13694'' and all that 
     follows through ``to the extent that'' and inserting the 
     following: ``Executive Order 13694 (50 U.S.C. 1701 note; 
     relating to blocking the property of certain persons engaging 
     in significant malicious cyber-enabled activities), 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), or Executive Order 13810 (82 Fed. 
     Reg. 44705; relating to imposing additional sanctions with 
     respect to North Korea), to the extent that''; and
       (2) in paragraph (2)(A), by striking ``or 2321 (2016)'' and 
     inserting ``2321 (2016), 2356 (2017), 2371 (2017), 2375 
     (2017), or 2397 (2017)''.

           PART I--EXPANSION OF SANCTIONS AND RELATED MATTERS

     SEC. 1721. SANCTIONS WITH RESPECT TO FOREIGN FINANCIAL 
                   INSTITUTIONS THAT PROVIDE FINANCIAL SERVICES TO 
                   CERTAIN SANCTIONED PERSONS.

       (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 the item relating to section 201A 
     the following:

     ``SEC. 201B. SANCTIONS WITH RESPECT TO FOREIGN FINANCIAL 
                   INSTITUTIONS THAT PROVIDE FINANCIAL SERVICES TO 
                   CERTAIN SANCTIONED PERSONS.

       ``(a) In General.--The Secretary of the Treasury shall 
     impose one or more of the sanctions described in subsection 
     (b) with respect to a foreign financial institution that the 
     Secretary determines, on or after the date that is 90 days 
     after the date of the enactment of the Otto Warmbier Banking 
     Restrictions Involving North Korea Act of 2019, knowingly 
     provides significant financial services to any person 
     designated for the imposition of sanctions under--
       ``(1) subsection (a) or (b) of section 104;
       ``(2) an applicable Executive order; or
       ``(3) an applicable United Nations Security Council 
     resolution.
       ``(b) Sanctions Described.--The sanctions that may be 
     imposed with respect to a foreign financial institution 
     subject to subsection (a) are the following:
       ``(1) Asset blocking.--The Secretary may block and 
     prohibit, pursuant to the International Emergency Economic 
     Powers Act (50 U.S.C. 1701 et seq.), all transactions in all 
     property and interests in property of the foreign financial 
     institution if such property and interests in property are in 
     the United States, come within the United States, or are or 
     come within the possession or control of a United States 
     person.
       ``(2) Restrictions on correspondent and payable-through 
     accounts.--The Secretary may prohibit, or impose strict 
     conditions on, the opening or maintaining in the United 
     States of a correspondent account or a payable-through 
     account by the foreign financial institution.
       ``(c) Implementation; Penalties.--
       ``(1) Implementation.--The President may exercise all 
     authorities provided under sections 203 and 205 of the 
     International Emergency Economic Powers Act (50 U.S.C. 1702 
     and 1704) to carry out this section.
       ``(2) Penalties.--A person that violates, attempts to 
     violate, conspires to violate, or causes a violation of this 
     section or any regulation, license, or order issued to carry 
     out this section shall be subject to the penalties set forth 
     in subsections (b) and (c) of section 206 of the 
     International Emergency Economic Powers Act (50 U.S.C. 1705) 
     to the same extent as a person that commits an unlawful act 
     described in subsection (a) of that section.
       ``(d) Regulations.--Not later than 180 days after the date 
     of the enactment of the Otto Warmbier Banking Restrictions 
     Involving North Korea Act of 2019, the President shall, as 
     appropriate, prescribe regulations to carry out this section.
       ``(e) Definitions.--In this section:
       ``(1) Account; correspondent account; payable-through 
     account.--The terms `account', `correspondent account', and 
     `payable-through account' have the meanings given those terms 
     in section 5318A of title 31, United States Code.
       ``(2) Financial institution.--The term `financial 
     institution' means a financial institution specified in 
     subparagraph (A), (B), (C), (D), (E), (F), (G), (H), (I), 
     (J), (M), or (Y) of section 5312(a)(2) of title 31, United 
     States Code.
       ``(3) Foreign financial institution.--The term `foreign 
     financial institution' shall have the meaning of that term as 
     determined by the Secretary of the Treasury.
       ``(4) Knowingly.--The term `knowingly', with respect to 
     conduct, a circumstance, or a result, means that a person has 
     actual knowledge, or should have known, of the conduct, the 
     circumstance, or the result.''.
       (b) Clerical Amendment.--The table of contents for the 
     North Korea Sanctions and Policy Enhancement Act of 2016 is 
     amended by inserting after the item relating to section 201A 
     the following:

``201B. Sanctions with respect to foreign financial institutions that 
              provide financial services to certain sanctioned 
              persons.''.

     SEC. 1722. CODIFICATION OF EXECUTIVE ORDERS RELATING TO 
                   SANCTIONS WITH RESPECT TO NORTH KOREA.

       (a) In General.--Section 210 of the North Korea Sanctions 
     and Policy Enhancement Act of 2016 (22 U.S.C. 9230) is 
     amended--
       (1) by striking ``United States sanctions'' and all that 
     follows through ``the date of the enactment of this Act'' and 
     inserting ``United States sanctions provided for in Executive 
     Order 13687 (50 U.S.C. 1701 note; relating to imposing 
     additional sanctions with respect to North Korea), Executive 
     Order 13694 (50 U.S.C. 1701 note; relating to blocking the 
     property of certain persons engaging in significant malicious 
     cyber-enabled activities), 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), or Executive Order 13810 (82 Fed. Reg. 44705; 
     relating to imposing additional sanctions with respect to 
     North Korea), as such Executive Orders are in effect on the 
     day before the date of the enactment of the Otto Warmbier 
     Banking Restrictions Involving North Korea Act of 2019'';
       (2) by striking ``the Government of North Korea, persons 
     acting for or on behalf of that Government, and persons owned 
     or controlled, directly or indirectly, by that Government or 
     persons acting for or on behalf of that Government,'' and 
     inserting ``persons subject to such sanctions''; and
       (3) by striking ``and 2094 (2013)'' and inserting ``2094 
     (2013), 2270 (2016), 2321 (2016), 2356 (2017), 2371 (2017), 
     2375 (2017), and 2397 (2017)''.
       (b) Conforming Amendment.--Section 210 of the North Korea 
     Sanctions and Policy Enhancement Act of 2016 (22 U.S.C. 9230) 
     is amended in the section heading by striking ``sanctions 
     with respect to north korean activities undermining 
     cybersecurity'' and inserting ``executive orders relating to 
     sanctions with respect to north korea''.
       (c) Clerical Amendment.--The table of contents for the 
     North Korea Sanctions and Policy Enhancement Act of 2016 is 
     amended by striking the item relating to section 210 and 
     inserting the following:

``Sec. 210. Codification of Executive orders relating to sanctions with 
              respect to North Korea.''.

     SEC. 1723. EXPANSION OF MANDATORY DESIGNATIONS UNDER NORTH 
                   KOREA SANCTIONS AND POLICY ENHANCEMENT ACT OF 
                   2016.

       (a) In General.--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 (14), by striking ``or'' at the end;
       (2) by redesignating paragraph (15) as paragraph (24);
       (3) by inserting after paragraph (14) the following:
       ``(15) knowingly, directly or indirectly, purchases or 
     otherwise acquires from the Government of North Korea 
     significant quantities of coal, iron, or iron ore, except as 
     specifically approved by the United Nations Security Council;
       ``(16) knowingly, directly or indirectly, provides to North 
     Korea coal, iron, or iron ore;
       ``(17) knowingly, directly or indirectly, purchases or 
     otherwise acquires textiles from the Government of North 
     Korea, except as specifically approved by the United Nations 
     Security Council;
       ``(18) knowingly facilitates a significant transfer of 
     funds or property from the Government of North Korea that 
     materially contributes to any violation of an applicable 
     United Nations Security Council resolution;
       ``(19) knowingly, directly or indirectly, purchases or 
     otherwise acquires significant types or amounts of seafood 
     from North Korea, except as specifically approved by the 
     United Nations Security Council;
       ``(20) knowingly, directly or indirectly, engages in, 
     facilitates, or is responsible for the exportation of workers 
     from North Korea;
       ``(21) knowingly, directly or indirectly, sells or 
     transfers vessels to North Korea, except as specifically 
     approved by the United Nations Security Council;
       ``(22) knowingly, directly or indirectly, supplies, sells, 
     or transfers to North Korea crude oil or refined petroleum 
     products in excess of the aggregate amounts established in 
     applicable United Nations Security Council resolutions, 
     except as specifically approved by the United Nations 
     Security Council;
       ``(23) knowingly contributes to--
       ``(A) the bribery of an official of the Government of North 
     Korea or any person acting for or on behalf of that official;
       ``(B) the misappropriation, theft, or embezzlement of 
     public funds by, or for the benefit of, an official of the 
     Government of North Korea or any person acting for or on 
     behalf of that official; or
       ``(C) the use of any proceeds of any activity described in 
     subparagraph (A) or (B); or''; and
       (4) in paragraph (24), as redesignated by paragraph (2), by 
     striking ``through (14)'' and inserting ``through (23)''.
       (b) Conforming Amendments.--The North Korea Sanctions and 
     Policy Enhancement Act of 2016 is amended--
       (1) in section 104(b)(1) (22 U.S.C. 9214(b)(1))--
       (A) by striking subparagraphs (B), (D), (E), (F), and (L); 
     and

[[Page S3524]]

       (B) by redesignating subparagraphs (C), (G), (H), (I), (J), 
     (K), (M), and (N) as subparagraphs (B), (C), (D), (E), (F), 
     (G), (H), and (I), respectively; and
       (2) in section 302(b)(3) (22 U.S.C. 9241(b)(3)), by 
     striking ``section 104(b)(1)(M)'' and inserting ``section 
     104(a)(20)''.

     SEC. 1724. EXTENSION OF APPLICABILITY PERIOD OF PROLIFERATION 
                   PREVENTION SANCTIONS.

       Section 203(b)(2) of the North Korea Sanctions and Policy 
     Enhancement Act of 2016 (22 U.S.C. 9223(b)(2)) is amended by 
     striking ``2 years'' and inserting ``5 years''.

     SEC. 1725. SENSE OF CONGRESS ON IDENTIFICATION AND BLOCKING 
                   OF PROPERTY OF NORTH KOREAN OFFICIALS.

       It is the sense of Congress that the President should--
       (1) encourage international collaboration through the 
     Financial Action Task Force and its global network to utilize 
     its standards and apply means at its disposal to counter the 
     money laundering, terrorist financing, and proliferation 
     financing threats emanating from North Korea; and
       (2) prioritize multilateral efforts to identify and block--
       (A) any property owned or controlled by a North Korean 
     official; and
       (B) any significant proceeds of kleptocracy by the 
     Government of North Korea or a North Korean official.

     SEC. 1726. MODIFICATION OF REPORT ON IMPLEMENTATION OF UNITED 
                   NATIONS SECURITY COUNCIL RESOLUTIONS BY OTHER 
                   GOVERNMENTS.

       Section 317 of the Korean Interdiction and Modernization of 
     Sanctions Act (title III of Public Law 115-44; 131 Stat. 950) 
     is amended--
       (1) in subsection (a)--
       (A) in the matter preceding paragraph (1), by striking 
     ``Not later than 180 days after the date of the enactment of 
     this Act, and annually thereafter for 5 years,'' and 
     inserting ``Not later than 180 days after the date of the 
     enactment of the Otto Warmbier Banking Restrictions Involving 
     North Korea Act of 2019, and annually thereafter for 5 
     years,'';
       (B) in paragraph (3), by striking ``; or'' and inserting a 
     semicolon;
       (C) by redesignating paragraph (4) as paragraph (8); and
       (D) by inserting after paragraph (3) the following:
       ``(4) prohibit, in the territories of such countries or by 
     persons subject to the jurisdiction of such governments, the 
     opening of new joint ventures or cooperative entities with 
     North Korean persons or the expansion of existing joint 
     ventures through additional investments, whether or not for 
     or on behalf of the Government of North Korea, unless such 
     joint ventures or cooperative entities have been approved by 
     the Committee of the United Nations Security Council 
     established by United Nations Security Council Resolution 
     1718 (2006);
       ``(5) prohibit the unauthorized clearing of funds by North 
     Korean financial institutions through financial institutions 
     subject to the jurisdiction of such governments;
       ``(6) prohibit the unauthorized conduct of commercial trade 
     with North Korea that is prohibited under applicable United 
     Nations Security Council resolutions;
       ``(7) prevent the provision of financial services to North 
     Korean persons or the transfer of financial services to North 
     Korean persons to, through, or from the territories of such 
     countries or by persons subject to the jurisdiction of such 
     governments; or''; and
       (2) by amending subsection (c) to read as follows:
       ``(c) Definitions.--In this section:
       ``(1) Appropriate congressional committees and 
     leadership.--The term `appropriate congressional committees 
     and leadership' means--
       ``(A) the Committee on Foreign Relations, the Committee on 
     Banking, Housing, and Urban Affairs, and the majority and 
     minority leaders of the Senate; and
       ``(B) the Committee on Foreign Affairs, the Committee on 
     Financial Services, the Committee on Ways and Means, and the 
     Speaker, the majority leader, and the minority leader of the 
     House of Representatives.
       ``(2) Applicable united nations security council 
     resolution; north korean financial institution; north korean 
     person.--The terms `applicable United Nations Security 
     Council resolution', `North Korean financial institution', 
     and `North Korean person' have the meanings given those terms 
     in section 3 of the North Korea Sanctions and Policy 
     Enhancement Act of 2016 (22 U.S.C. 9202).''.

     SEC. 1727. REPORT ON USE BY THE GOVERNMENT OF NORTH KOREA OF 
                   BENEFICIAL OWNERSHIP RULES TO ACCESS THE 
                   INTERNATIONAL FINANCIAL SYSTEM.

       (a) In General.--Not later than 180 days after the date of 
     the enactment of this Act, the Secretary of the Treasury 
     shall submit to the appropriate congressional committees a 
     report setting forth the findings of the Secretary regarding 
     how the Government of North Korea is exploiting laws with 
     respect to the beneficial owner of an entity in order to 
     access the international financial system.
       (b) Elements.--The Secretary shall include in the report 
     required under subsection (a) proposals for such legislative 
     and administrative action as the Secretary considers 
     appropriate to combat the abuse by the Government of North 
     Korea of shell companies and other similar entities to avoid 
     or evade sanctions.
       (c) Form.--The report required by subsection (a) shall be 
     submitted in unclassified form but may include a classified 
     annex.

              PART II--CONGRESSIONAL REVIEW AND OVERSIGHT

     SEC. 1731. NOTIFICATION OF TERMINATION OR SUSPENSION OF 
                   SANCTIONS.

       Not less than 15 days before taking any action to terminate 
     or suspend the application of sanctions under this subtitle 
     or an amendment made by this subtitle, the President shall 
     notify the appropriate congressional committees of the 
     President's intent to take the action and the reasons for the 
     action.

     SEC. 1732. REPORTS ON CERTAIN LICENSING ACTIONS.

       (a) In General.--Not later than 180 days after the date of 
     the enactment of this Act, and every 180 days thereafter, the 
     President shall submit to the appropriate congressional 
     committees a report on the operation of the system for 
     issuing licenses for transactions under covered regulatory 
     provisions during the preceding 180-day period that 
     includes--
       (1) the number and types of such licenses applied for 
     during that period; and
       (2) the number and types of such licenses issued during 
     that period.
       (b) Covered Regulatory Provision Defined.--In this section, 
     the term ``covered regulatory provision'' means any of the 
     following provisions, as in effect on the day before the date 
     of the enactment of this Act and as such provisions relate to 
     North Korea:
       (1) Part 743, 744, or 746 of title 15, Code of Federal 
     Regulations.
       (2) Part 510 of title 31, Code of Federal Regulations.
       (3) Any other provision of title 31, Code of Federal 
     Regulations.
       (c) Form.--Each report required by subsection (a) shall be 
     submitted in unclassified form but may include a classified 
     annex.

     SEC. 1733. BRIEFINGS ON IMPLEMENTATION AND ENFORCEMENT OF 
                   SANCTIONS.

       Not later than 90 days after the date of the enactment of 
     this Act, and every 180 days thereafter, the Secretary of the 
     Treasury shall provide to the appropriate congressional 
     committees a briefing on efforts relating to the 
     implementation and enforcement of United States sanctions 
     with respect to North Korea, including appropriate updates on 
     the efforts of the Department of the Treasury to address 
     compliance with such sanctions by foreign financial 
     institutions.

     SEC. 1734. REPORT ON FINANCIAL NETWORKS AND FINANCIAL METHODS 
                   OF THE GOVERNMENT OF NORTH KOREA.

       (a) Report Required.--
       (1) In general.--Not later than 180 days after the date of 
     the enactment of this Act, and annually thereafter through 
     2025, the President shall submit to the appropriate 
     congressional committees a report on sources of external 
     support for the Government of North Korea that includes--
       (A) a description of the methods used by the Government of 
     North Korea to deal in, transact in, or conceal the 
     ownership, control, or origin of goods and services exported 
     by North Korea;
       (B) an assessment of the relationship between the 
     proliferation of weapons of mass destruction by the 
     Government of North Korea and the financial industry or 
     financial institutions;
       (C) an assessment of the relationship between the 
     acquisition by the Government of North Korea of military 
     expertise, equipment, and technology and the financial 
     industry or financial institutions;
       (D) a description of the export by any person to the United 
     States of goods, services, or technology that are made with 
     significant amounts of North Korean labor, material, or 
     goods, including minerals, manufacturing, seafood, overseas 
     labor, or other exports from North Korea;
       (E) an assessment of the involvement of any person in human 
     trafficking involving citizens or nationals of North Korea;
       (F) a description of how the President plans to address the 
     flow of funds generated by activities described in 
     subparagraphs (A) through (E), including through the use of 
     sanctions or other means;
       (G) an assessment of the extent to which the Government of 
     North Korea engages in criminal activities, including money 
     laundering, to support that Government;
       (H) information relating to the identification, blocking, 
     and release of property described in section 201B(b)(1) of 
     the North Korea Sanctions and Policy Enhancement Act of 2016, 
     as added by section 1721;
       (I) a description of the metrics used to measure the 
     effectiveness of law enforcement and diplomatic initiatives 
     of Federal, State, and foreign governments to comply with the 
     provisions of applicable United Nations Security Council 
     resolutions; and
       (J) an assessment of the effectiveness of programs within 
     the financial industry to ensure compliance with United 
     States sanctions, applicable United Nations Security Council 
     resolutions, and applicable Executive orders.
       (2) Form.--Each report required by paragraph (1) shall be 
     submitted in unclassified form but may include a classified 
     annex.
       (b) Interagency Coordination.--The President shall ensure 
     that any information collected pursuant to subsection (a) is 
     shared among the Federal departments and agencies involved in 
     investigations described in section 102(b) of the North Korea 
     Sanctions and Policy Enhancement Act of 2016 (22 U.S.C. 
     9212(b)).

     SEC. 1735. REPORT ON COUNTRIES OF CONCERN WITH RESPECT TO 
                   TRANSSHIPMENT, REEXPORTATION, OR DIVERSION OF 
                   CERTAIN ITEMS TO NORTH KOREA.

       (a) In General.--Not later than 180 days after the date of 
     the enactment of this Act,

[[Page S3525]]

     and annually thereafter through 2023, the Director of 
     National Intelligence shall submit to the President, the 
     Secretary of Defense, the Secretary of Commerce, the 
     Secretary of State, the Secretary of the Treasury, and the 
     appropriate congressional committees a report that identifies 
     all countries that the Director determines are of concern 
     with respect to transshipment, reexportation, or diversion of 
     items subject to the provisions of the Export Administration 
     Regulations under subchapter C of chapter VII of title 15, 
     Code of Federal Regulations, to an entity owned or controlled 
     by the Government of North Korea.
       (b) Form.--Each report required by subsection (a) shall be 
     submitted in unclassified form but may include a classified 
     annex.

                       PART III--GENERAL MATTERS

     SEC. 1741. RULEMAKING.

       The President shall prescribe such rules and regulations as 
     may be necessary to carry out this subtitle and amendments 
     made by this subtitle.

     SEC. 1742. AUTHORITY TO CONSOLIDATE REPORTS.

       (a) In General.--Any and all reports required to be 
     submitted to the appropriate congressional committees under 
     this subtitle or an amendment made by this subtitle that are 
     subject to a deadline for submission consisting of the same 
     unit of time may be consolidated into a single report that is 
     submitted pursuant to that deadline.
       (b) Contents.--Any reports consolidated under subsection 
     (a) shall contain all information required under this 
     subtitle or an amendment made by this subtitle and any other 
     elements that may be required by existing law.

     SEC. 1743. WAIVERS, EXEMPTIONS, AND TERMINATION.

       (a) Application and Modification of Exemptions and Waivers 
     From North Korea Sanctions and Policy Enhancement Act of 
     2016.--Section 208 of the North Korea Sanctions and Policy 
     Enhancement Act of 2016 (22 U.S.C. 9228) is amended--
       (1) by inserting ``201B,'' after ``201A,'' each place it 
     appears; and
       (2) in subsection (c), by inserting ``, not less than 15 
     days before the waiver takes effect,'' after ``if the 
     President''.
       [(b) Exception Relating to Importation of Goods.--]
       [(1) In general.--No provision affecting sanctions under 
     this subtitle or an amendment made by this subtitle shall 
     apply to sanctions on the importation of goods.]
       [(2) Good defined.--In this subsection, the term ``good'' 
     means any article, natural or man-made substance, material, 
     supply or manufactured product, including inspection and test 
     equipment, and excluding technical data.]
       (c) Suspension.--
       (1) In general.--Subject to section 1731, any requirement 
     to impose sanctions under this subtitle or the amendments 
     made by this subtitle, and any sanctions imposed pursuant to 
     this subtitle or any such amendment, may be suspended for up 
     to one year if the President makes the certification 
     described in section 401 of the North Korea Sanctions and 
     Policy Enhancement Act of 2016 (22 U.S.C. 9251) to the 
     appropriate congressional committees.
       (2) Renewal.--A suspension under paragraph (1) may be 
     renewed in accordance with section 401(b) of the North Korea 
     Sanctions and Policy Enhancement Act of 2016 (22 U.S.C. 
     9251(b)).
       (d) Termination.--Subject to section 1731, any requirement 
     to impose sanctions under this subtitle or the amendments 
     made by this subtitle, and any sanctions imposed pursuant to 
     this subtitle or any such amendment, shall terminate on the 
     date on which the President makes the certification described 
     in section 402 of the North Korea Sanctions and Policy 
     Enhancement Act of 2016 (22 U.S.C. 9252).

     SEC. 1744. PROCEDURES FOR REVIEW OF CLASSIFIED INFORMATION.

       (a) In General.--If a finding under this subtitle or an 
     amendment made by this subtitle, a prohibition, condition, or 
     penalty imposed as a result of any such finding, or a penalty 
     imposed under this subtitle or an amendment made by this 
     subtitle, is based on classified information (as defined in 
     section 1(a) of the Classified Information Procedures Act (18 
     U.S.C. App.)) and a court reviews the finding or the 
     imposition of the prohibition, condition, or penalty, the 
     Secretary of the Treasury may submit such information to the 
     court ex parte and in camera.
       (b) Rule of Construction.--Nothing in this section shall be 
     construed to confer or imply any right to judicial review of 
     any finding under this subtitle or an amendment made by this 
     subtitle, any prohibition, condition, or penalty imposed as a 
     result of any such finding, or any penalty imposed under this 
     subtitle or an amendment made by this subtitle.

     SEC. 1745. BRIEFING ON RESOURCING OF SANCTIONS PROGRAMS.

       Not later than 30 days after the date of the enactment of 
     this Act, the Secretary of the Treasury shall provide to the 
     appropriate congressional committees a briefing on--
       (1) the resources allocated by the Department of the 
     Treasury to support each sanctions program administered by 
     the Department; and
       (2) recommendations for additional authorities or resources 
     necessary to expand the capacity or capability of the 
     Department related to implementation and enforcement of such 
     programs.

     SEC. 1746. BRIEFING ON PROLIFERATION FINANCING.

       (a) In General.--Not later than 60 days after the date of 
     the enactment of this Act, the Secretary of the Treasury 
     shall provide to the appropriate congressional committees a 
     briefing on addressing proliferation finance.
       (b) Elements.--The briefing required by subsection (a) 
     shall include the following:
       (1) The Department of the Treasury's definition and 
     description of an appropriate risk-based approach to 
     combating financing of the proliferation of weapons of mass 
     destruction.
       (2) An assessment of--
       (A) Federal financial regulatory agency oversight, 
     including by the Financial Crimes Enforcement Network, of 
     United States financial institutions and the adoption by 
     their foreign subsidiaries, branches, and correspondent 
     institutions of a risk-based approach to proliferation 
     financing; and
       (B) whether financial institutions in foreign jurisdictions 
     known by the United States intelligence and law enforcement 
     communities to be jurisdictions through which North Korea 
     moves substantial sums of licit and illicit finance are 
     applying a risk-based approach to proliferation financing, 
     and if that approach is comparable to the approach required 
     by United States financial institution supervisors.
       (3) A survey of the technical assistance the Office of 
     Technical Assistance of the Department of the Treasury, and 
     other appropriate Executive branch offices, currently provide 
     foreign institutions on implementing counter-proliferation 
     financing best practices.
       (4) An assessment of the ability of foreign subsidiaries, 
     branches, and correspondent institutions of United States 
     financial institutions to implement a risk-based approach to 
     proliferation financing.

                Subtitle B--Divestment From North Korea

     SEC. 1751. AUTHORITY OF STATE AND LOCAL GOVERNMENTS TO DIVEST 
                   FROM COMPANIES THAT INVEST IN NORTH KOREA.

       (a) Sense of Congress.--It is the sense of Congress that 
     the United States should support the decision of any State or 
     local government made for moral, prudential, or reputational 
     reasons, to divest from, or prohibit the investment of assets 
     of the State or local government in, a person that engages in 
     investment activities described in subsection (c) if North 
     Korea is subject to economic sanctions imposed by the United 
     States or the United Nations Security Council.
       (b) Authority To Divest.--Notwithstanding any other 
     provision of law, a State or local government may adopt and 
     enforce measures that meet the requirements of subsection (d) 
     to divest the assets of the State or local government from, 
     or prohibit investment of the assets of the State or local 
     government in, any person that the State or local government 
     determines, using credible information available to the 
     public, engages in investment activities described in 
     subsection (c).
       (c) Investment Activities Described.--Investment activities 
     described in this subsection are activities of a value of 
     more than $10,000 relating to an investment in North Korea or 
     in goods or services originating in North Korea that are not 
     conducted pursuant to a license issued by the Department of 
     the Treasury.
       (d) Requirements.--Any measure taken by a State or local 
     government under subsection (b) shall meet the following 
     requirements:
       (1) Notice.--The State or local government shall provide 
     written notice to each person with respect to which a measure 
     under this section is to be applied.
       (2) Timing.--The measure applied under this section shall 
     apply to a person not earlier than the date that is 90 days 
     after the date on which written notice under paragraph (1) is 
     provided to the person.
       (3) Opportunity to demonstrate compliance.--
       (A) In general.--The State or local government shall 
     provide to each person with respect to which a measure is to 
     be applied under this section an opportunity to demonstrate 
     to the State or local government that the person does not 
     engage in investment activities described in subsection (c).
       (B) Nonapplication.--If a person with respect to which a 
     measure is to be applied under this section demonstrates to 
     the State or local government under subparagraph (A) that the 
     person does not engage in investment activities described in 
     subsection (c), the measure shall not apply to that person.
       (4) Sense of congress on avoiding erroneous targeting.--It 
     is the sense of Congress that a State or local government 
     should not adopt a measure under subsection (b) with respect 
     to a person unless the State or local government has--
       (A) made every effort to avoid erroneously targeting the 
     person; and
       (B) verified that the person engages in investment 
     activities described in subsection (c).
       (e) Notice to Department of Justice.--Not later than 30 
     days before a State or local government applies a measure 
     under this section, the State or local government shall 
     notify the Attorney General of that measure.
  

       (f) Authorization for Prior Applied Measures.--

[[Page S3526]]

       (1) In general.--Notwithstanding any other provision of 
     this section or any other provision of law, a State or local 
     government may enforce a measure (without regard to the 
     requirements of subsection (d), except as provided in 
     paragraph (2)) applied by the State or local government 
     before the date of the enactment of this Act that provides 
     for the divestment of assets of the State or local government 
     from, or prohibits the investment of the assets of the State 
     or local government in, any person that the State or local 
     government determines, using credible information available 
     to the public, engages in investment activities described in 
     subsection (c) that are identified in that measure.
       (2) Application of notice requirements.--A measure 
     described in paragraph (1) shall be subject to the 
     requirements of paragraphs (1), (2), and (3)(A) of subsection 
     (d) on and after the date that is 2 years after the date of 
     the enactment of this Act.
       (g) No Preemption.--A measure applied by a State or local 
     government that is consistent with subsection (b) or (f) is 
     not preempted by any Federal law.
       (h) Definitions.--In this section:
       (1) Asset.--
       (A) In general.--Except as provided in subparagraph (B), 
     the term ``asset'' means public monies, and includes any 
     pension, retirement, annuity, endowment fund, or similar 
     instrument, that is controlled by a State or local 
     government.
       (B) Exception.--The term ``asset'' does not include 
     employee benefit plans covered by title I of the Employee 
     Retirement Income Security Act of 1974 (29 U.S.C. 1001 et 
     seq.).
       (2) Investment.--The term ``investment'' includes--
       (A) a commitment or contribution of funds or property;
       (B) a loan or other extension of credit; and
       (C) the entry into or renewal of a contract for goods or 
     services.
       (i) Effective Date.--
       (1) In general.--Except as provided in paragraph (2) and 
     subsection (f), this section applies to measures applied by a 
     State or local government before, on, or after the date of 
     the enactment of this Act.
       (2) Notice requirements.--Except as provided in subsection 
     (f), subsections (d) and (e) apply to measures applied by a 
     State or local government on or after the date of the 
     enactment of this Act.

     SEC. 1752. SAFE HARBOR FOR CHANGES OF INVESTMENT POLICIES BY 
                   ASSET MANAGERS.

       Section 13(c)(1) of the Investment Company Act of 1940 (15 
     U.S.C. 80a-13(c)(1)) is amended--
       (1) in subparagraph (A), by striking ``or'' at the end;
       (2) in subparagraph (B), by striking the period and 
     inserting ``; or''; and
       (3) by adding at the end the following:
       ``(C) engage in investment activities described in section 
     1751(c) of the Otto Warmbier Banking Restrictions Involving 
     North Korea Act of 2019.''.

     SEC. 1753. SENSE OF CONGRESS REGARDING CERTAIN ERISA PLAN 
                   INVESTMENTS.

       It is the sense of Congress that--
       (1) a fiduciary of an employee benefit plan, as defined in 
     section 3(3) of the Employee Retirement Income Security Act 
     of 1974 (29 U.S.C. 1002(3)), may divest plan assets from, or 
     avoid investing plan assets in, any person the fiduciary 
     determines engages in investment activities described in 
     section 1751(c), if--
       (A) the fiduciary makes that determination using credible 
     information that is available to the public; and
       (B) the fiduciary prudently determines that the result of 
     that divestment or avoidance of investment would not be 
     expected to provide the employee benefit plan with--
       (i) a lower rate of return than alternative investments 
     with commensurate degrees of risk; or
       (ii) a higher degree of risk than alternative investments 
     with commensurate rates of return; and
       (2) by divesting assets or avoiding the investment of 
     assets as described in paragraph (1), the fiduciary is not 
     breaching the responsibilities, obligations, or duties 
     imposed upon the fiduciary by subparagraph (A) or (B) of 
     section 404(a)(1) of the Employee Retirement Income Security 
     Act of 1974 (29 U.S.C. 1104(a)(1)).

     SEC. 1754. RULE OF CONSTRUCTION.

       Nothing in this subtitle, an amendment made by this 
     subtitle, or any other provision of law authorizing sanctions 
     with respect to North Korea shall be construed to affect or 
     displace--
       (1) the authority of a State or local government to issue 
     and enforce rules governing the safety, soundness, and 
     solvency of a financial institution subject to its 
     jurisdiction; or
       (2) the regulation and taxation by the several States of 
     the business of insurance, pursuant to the Act of March 9, 
     1945 (59 Stat. 33, chapter 20; 15 U.S.C. 1011 et seq.) 
     (commonly known as the ``McCarran-Ferguson Act'').

      Subtitle C--Financial Industry Guidance to Halt Trafficking

     SEC. 1761. SHORT TITLE.

       This subtitle may be cited as the ``Financial Industry 
     Guidance to Halt Trafficking Act'' or the ``FIGHT Act''.

     SEC. 1762. FINDINGS.

       Congress finds the following:
       (1) The terms ``human trafficking'' and ``trafficking in 
     persons'' are used interchangeably to describe crimes 
     involving the exploitation of a person for the purposes of 
     compelled labor or commercial sex through the use of force, 
     fraud, or coercion.
       (2) According to the International Labour Organization, 
     there are an estimated 24,900,000 people worldwide who are 
     victims of forced labor, including human trafficking victims 
     in the United States.
       (3) Human trafficking is perpetrated for financial gain.
       (4) According to the International Labour Organization, of 
     the estimated $150,000,000,000 or more in global profits 
     generated annually from human trafficking--
       (A) approximately \2/3\ are generated by commercial sexual 
     exploitation, exacted by fraud or by force; and
       (B) approximately \1/3\ are generated by forced labor.
       (5) Most purchases of commercial sex acts are paid for with 
     cash, making trafficking proceeds difficult to identify in 
     the financial system. Nonetheless, traffickers rely heavily 
     on access to financial institutions as destinations for 
     trafficking proceeds and as conduits to finance every step of 
     the trafficking process.
       (6) Under section 1956 of title 18, United States Code 
     (relating to money laundering), human trafficking is a 
     ``specified unlawful activity'' and transactions conducted 
     with proceeds earned from trafficking people, or used to 
     further trafficking operations, can be prosecuted as money 
     laundering offenses.

     SEC. 1763. SENSE OF CONGRESS.

       It is the sense of Congress that--
       (1) the President should aggressively apply, as 
     appropriate, existing sanctions for human trafficking 
     authorized under section 111 of the Trafficking Victims 
     Protection Act of 2000 (22 U.S.C. 7108);
       (2) the Financial Crimes Enforcement Network of the 
     Department of the Treasury should continue--
       (A) to monitor reporting required under subchapter II of 
     chapter 53 of title 31, United States Code (commonly known as 
     the ``Bank Secrecy Act'') and to update advisories, as 
     warranted;
       (B) to periodically review its advisories to provide 
     covered financial institutions, as appropriate, with a list 
     of new ``red flags'' for identifying activities of concern, 
     particularly human trafficking;
       (C) to encourage entities covered by the advisories 
     described in subparagraph (B) to incorporate relevant 
     elements provided in the advisories into their current 
     transaction and account monitoring systems or in policies, 
     procedures, and training on human trafficking to enable 
     financial institutions to maintain ongoing efforts to examine 
     transactions and accounts;
       (D) to use geographic targeting orders, as appropriate, to 
     impose additional reporting and recordkeeping requirements 
     under section 5326(a) of title 31, United States Code, to 
     carry out the purposes of, and prevent evasions of the Bank 
     Secrecy Act; and
       (E) to utilize the Bank Secrecy Act Advisory Group and 
     other relevant entities to identify opportunities for 
     nongovernmental organizations to share relevant actionable 
     information on human traffickers' use of the financial sector 
     for nefarious purposes;
       (3) Federal banking regulators, the Department of the 
     Treasury, relevant law enforcement agencies, and the Human 
     Smuggling and Trafficking Center, in partnership with 
     representatives from the United States financial community, 
     should adopt regular forms of sharing information to disrupt 
     human trafficking, including developing protocols and 
     procedures to share actionable information between and 
     amongst covered institutions, law enforcement, and the United 
     States intelligence community;
       (4) training front line bank and money service business 
     employees, school teachers, law enforcement officers, foreign 
     service officers, counselors, and the general public is an 
     important factor in identifying trafficking victims;
       (5) the Department of Homeland Security's Blue Campaign, 
     training by the BEST Employers Alliance, and similar efforts 
     by industry, human rights, and nongovernmental organizations 
     focused on human trafficking provide good examples of current 
     efforts to educate employees of critical sectors to save 
     victims and disrupt trafficking networks;
       (6) the President should intensify diplomatic efforts, 
     bilaterally and in appropriate international fora, such as 
     the United Nations, to develop and implement a coordinated, 
     consistent, multilateral strategy for addressing the 
     international financial networks supporting human 
     trafficking; and
       (7) in deliberations between the United States Government 
     and any foreign country, including through participation in 
     the Egmont Group of Financial Intelligence Units, regarding 
     money laundering, corruption, and transnational crimes, the 
     United States Government should--
       (A) encourage cooperation by foreign governments and 
     relevant international fora in identifying the extent to 
     which the proceeds from human trafficking are being used to 
     facilitate terrorist financing, corruption, or other illicit 
     financial crimes;
       (B) encourage cooperation by foreign governments and 
     relevant international fora in identifying the nexus between 
     human trafficking and money laundering;
       (C) advance policies that promote the cooperation of 
     foreign governments, through information sharing, training, 
     or other measures, in the enforcement of this subtitle;

[[Page S3527]]

       (D) encourage the Financial Action Task Force to update its 
     July 2011 typology reports entitled, ``Laundering the 
     Proceeds of Corruption'' and ``Money Laundering Risks Arising 
     from Trafficking in Human Beings and Smuggling of Migrants'', 
     to identify the money laundering risk arising from the 
     trafficking of human beings; and
       (E) encourage the Egmont Group of Financial Intelligence 
     Units to study the extent to which human trafficking 
     operations are being used for money laundering, terrorist 
     financing, or other illicit financial purposes.

     SEC. 1764. COORDINATION OF HUMAN TRAFFICKING ISSUES BY THE 
                   OFFICE OF TERRORISM AND FINANCIAL INTELLIGENCE.

       (a) Functions.--Section 312(a)(4) of title 31, United 
     States Code, is amended--
       (1) by redesignating subparagraphs (E), (F), and (G) as 
     subparagraphs (F), (G), and (H), respectively; and
       (2) by inserting after subparagraph (D) the following:
       ``(E) combating illicit financing relating to human 
     trafficking;''.
       (b) Interagency Coordination.--Section 312(a) of such title 
     is amended by adding at the end the following:
       ``(8) Interagency coordination.--The Secretary of the 
     Treasury, after consultation with the Undersecretary for 
     Terrorism and Financial Crimes, shall designate an office 
     within the OTFI that shall coordinate efforts to combat the 
     illicit financing of human trafficking with--
       ``(A) other offices of the Department of the Treasury;
       ``(B) other Federal agencies, including--
       ``(i) the Office to Monitor and Combat Trafficking in 
     Persons of the Department of State; and
       ``(ii) the Interagency Task Force to Monitor and Combat 
     Trafficking;
       ``(C) State and local law enforcement agencies; and
       ``(D) foreign governments.''.

     SEC. 1765. STRENGTHENING THE ROLE OF ANTI-MONEY LAUNDERING 
                   AND OTHER FINANCIAL TOOLS IN COMBATING HUMAN 
                   TRAFFICKING.

       (a) Interagency Task Force Recommendations Targeting Money 
     Laundering Related to Human Trafficking.--
       (1) In general.--Not later than 270 days after the date of 
     the enactment of this Act, the Interagency Task Force to 
     Monitor and Combat Trafficking shall submit to the Committee 
     on Banking, Housing, and Urban Affairs, the Committee on 
     Foreign Relations, and the Committee on the Judiciary of the 
     Senate, the Committee on Financial Services, the Committee on 
     Foreign Affairs, and the Committee on the Judiciary of the 
     House of Representatives, the Secretary of the Treasury, and 
     each appropriate Federal banking agency--
       (A) an analysis of anti-money laundering efforts of the 
     United States Government, United States financial 
     institutions, and multilateral development banks related to 
     human trafficking; and
       (B) appropriate legislative, administrative, and other 
     recommendations to strengthen efforts against money 
     laundering relating to human trafficking.
       (2) Required recommendations.--The recommendations under 
     paragraph (1) shall include--
       (A) best practices based on successful anti-human 
     trafficking programs currently in place at domestic and 
     international financial institutions that are suitable for 
     broader adoption;
       (B) feedback from stakeholders, including victims of severe 
     trafficking in persons, advocates of persons at risk of 
     becoming victims of severe forms of trafficking in persons, 
     the United States Advisory Council on Human Trafficking, 
     civil society organizations, and financial institutions on 
     policy proposals derived from the analysis conducted by the 
     task force referred to in paragraph (1) that would enhance 
     the efforts and programs of financial institutions to detect 
     and deter money laundering related to human trafficking, 
     including any recommended changes to internal policies, 
     procedures, and controls related to human trafficking;
       (C) any recommended changes to training programs at 
     financial institutions to better equip employees to deter and 
     detect money laundering related to human trafficking; and
       (D) any recommended changes to expand human trafficking-
     related information sharing among financial institutions and 
     between such financial institutions, appropriate law 
     enforcement agencies, and appropriate Federal agencies.
       (b) Additional Reporting Requirement.--Section 105(d)(7) of 
     the Trafficking Victims Protection Act of 2000 (22 U.S.C. 
     7103(d)(7)) is amended--
       (1) in the matter preceding subparagraph (A)--
       (A) by inserting ``the Committee on Financial Services,'' 
     after ``the Committee on Foreign Affairs''; and
       (B) by inserting ``the Committee on Banking, Housing, and 
     Urban Affairs,'' after ``the Committee on Foreign 
     Relations,'';
       (2) in subparagraph (Q)(vii), by striking ``; and'' and 
     inserting a semicolon;
       (3) in subparagraph (R), by striking the period at the end 
     and inserting ``; and''; and
       (4) by adding at the end the following:
       ``(S) the efforts of the United States to eliminate money 
     laundering related to human trafficking and the number of 
     investigations, arrests, indictments, and convictions in 
     money laundering cases with a nexus to human trafficking.''.
       (c) Required Review of Procedures.--Not later than 180 days 
     after the date of the enactment of this Act, the Federal 
     Financial Institutions Examination Council, in consultation 
     with the Secretary of the Treasury, victims of severe forms 
     of trafficking in persons, advocates of persons at risk of 
     becoming victims of severe forms of trafficking in persons, 
     the United States Advisory Council on Trafficking, civil 
     society organizations, the private sector, and appropriate 
     law enforcement agencies, shall--
       (1) review and enhance training and examinations procedures 
     to improve the surveillance capabilities of anti-money 
     laundering and countering the financing of terrorism programs 
     to detect human trafficking-related financial transactions;
       (2) review and enhance procedures for referring potential 
     human trafficking cases to the appropriate law enforcement 
     agency; and
       (3) determine, as appropriate, whether requirements for 
     financial institutions and covered financial institutions are 
     sufficient to detect and deter money laundering related to 
     human trafficking.
       (d) Limitations.--Nothing in this section shall be 
     construed to--
       (1) grant rulemaking authority to the Interagency Task 
     Force to Monitor and Combat Trafficking; or
       (2) authorize financial institutions to deny services to or 
     violate the privacy of victims of trafficking, victims of 
     severe forms of trafficking, or individuals not responsible 
     for promoting severe forms of trafficking in persons.

     SEC. 1766. SENSE OF CONGRESS ON RESOURCES TO COMBAT HUMAN 
                   TRAFFICKING.

       It is the sense of Congress that--
       (1) adequate funding should be provided for critical 
     Federal efforts to combat human trafficking;
       (2) the Department of the Treasury should have the 
     appropriate resources to vigorously investigate human 
     trafficking networks under section 111 of the Trafficking 
     Victims Protection Act of 2000 (22 U.S.C. 7108) and other 
     relevant statutes and Executive orders;
       (3) the Department of the Treasury and the Department of 
     Justice should each have the capacity and appropriate 
     resources to support technical assistance to develop foreign 
     partners' ability to combat human trafficking through strong 
     national anti-money laundering and countering the financing 
     of terrorism programs;
       (4) each United States Attorney's Office should be provided 
     appropriate funding to increase the number of personnel for 
     community education and outreach and investigative support 
     and forensic analysis related to human trafficking; and
       (5) the Department of State should be provided additional 
     resources, as necessary, to carry out the Survivors of Human 
     Trafficking Empowerment Act (section 115 of Public Law 114-
     22; 129 Stat. 243).

                       Subtitle D--Miscellaneous

     SEC. 1771. EXCEPTION RELATING TO IMPORTATION OF GOODS.

       (a) In General.--The authorities and requirements to impose 
     sanctions under this title or any amendment made by this 
     title shall not include the authority or a requirement to 
     impose sanctions on the importation of goods.
       (b) Good Defined.--In this section, the term ``good'' means 
     any article, natural or manmade substance, material, supply 
     or manufactured product, including inspection and test 
     equipment, and excluding technical data.
                                 ______