[Congressional Record Volume 166, Number 117 (Thursday, June 25, 2020)]
[Senate]
[Pages S3516-S3520]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 2074. Mr. GARDNER submitted an amendment intended to be proposed
by him to the bill S. 4049, to authorize appropriations for fiscal year
2021 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 appropriate place, insert the following:
TITLE __--DENUCLEARIZATION OF DEMOCRATIC PEOPLE'S REPUBLIC OF KOREA
SEC. __01. SHORT TITLE.
This title may be cited as the ``Leverage to Enhance
Effective Diplomacy Act of 2019'' or the ``LEED Act''.
Subtitle A--Review of Strategy and Policy Toward the Democratic
People's Republic of Korea
SEC. __11. FINDINGS.
Congress makes the following findings:
(1) The Government of the Democratic People's Republic of
Korea has flagrantly defied the international community by
illicitly developing its nuclear and ballistic missile
programs, in violation of United Nations Security Council
Resolutions 1718 (2006), 1874 (2009), 2087 (2013), 2094
(2013), 2270 (2016), 2321 (2016), 2371 (2017), 2375 (2017),
and 2397 (2017).
(2) The March 5, 2019, report of the Panel of Experts
established pursuant to United Nations Security Council
Resolution 1874 (2009) highlighted several deficiencies in
the enforcement of sanctions with respect to the Democratic
People's Republic of Korea.
(3) The Panel of Experts report illustrated that the
People's Republic of China and the Russian Federation are
among those countries not fully implementing multilateral
sanctions and that the Russian Federation has impeded efforts
by the United States to expose and address illegal ship-to-
ship transfers.
(4) Despite known deficiencies in global sanctions
implementation, the pace of United States sanctions
designations with respect to the Democratic People's Republic
of Korea has slowed noticeably, even as relevant United
States law, including the North Korea Sanctions and Policy
Enhancement Act of 2016 (22 U.S.C. 9201 et seq.) and the Asia
Reassurance Initiative Act of 2018 (Public Law 115-409),
mandates the imposition of United States sanctions for
behaviors described in the Panel of Experts report, including
human rights violations and malign activities in cyberspace.
SEC. __12. SENSE OF CONGRESS.
It is the sense of Congress that--
(1) the United States is committed to the peaceful pursuit
of the complete, verifiable, and irreversible dismantlement
of the illicit weapons programs of the Democratic People's
Republic of Korea through a combination of pressure and
engagement;
(2) meaningful advancement in relations between the United
States and the Democratic People's Republic of Korea is
directly contingent on significant progress by the Democratic
People's Republic of Korea toward dismantling its weapons of
mass destruction and associated delivery systems, ceasing its
human rights violations, complying with United Nations
Security Council resolutions, repatriating United States
citizens and the citizens of other countries, instituting
political openness, and establishing financial transparency;
and
(3) the Democratic People's Republic of Korea should
immediately resume efforts to identify and return the remains
of members of the Armed Forces of the United States killed in
action during the Korean War, and should immediately return
to the United States the U.S.S. Pueblo, illegally captured by
the Democratic People's Republic of Korea on January 23,
1968.
SEC. __13. ADDRESSING THE EVOLVING THREATS POSED BY AND
CAPABILITIES OF THE DEMOCRATIC PEOPLE'S
REPUBLIC OF KOREA.
(a) In General.--Not later than 60 days after the date of
the enactment of this Act, and every 180 days thereafter
until the date that is 2 years after such date of enactment,
the Director of National Intelligence, in consultation with
the Secretary of State and the Secretary of Defense, and, as
appropriate, the Secretary of the Treasury and the
Administrator of the Drug Enforcement Administration, shall
brief the appropriate congressional committees on--
(1) the evolving threats posed by and capabilities of the
Democratic People's Republic of Korea; and
(2) United States efforts to mitigate and respond to those
threats and capabilities.
(b) Elements.--Each briefing under subsection (a) shall
address the following:
(1) An assessment of the status of the nuclear and
ballistic missile programs of the Democratic People's
Republic of Korea, including what elements constitute such
programs, and any technological advancements, disruptions, or
setbacks to such programs during--
(A) in the case of the first such briefing, the 60-day
period preceding the briefing; and
(B) in the case of any subsequent such briefing, the 180-
day period preceding the briefing.
(2) An assessment of the sources, methods, and funding
mechanisms of the Democratic People's Republic of Korea for
procuring critical components for its nuclear and ballistic
missile programs, including liquid and solid rocket fuels and
components, navigation and guidance systems, computer and
electrical components, and specialized materials.
(3) An assessment of--
(A) the cyber capabilities of the Democratic People's
Republic of Korea, including its efforts to conduct cyber and
corporate espionage, to commit illicit commercial and
financial activities through international cyber systems, and
to suppress opposition to and spread propaganda in support of
its nuclear and ballistic missile activities; and
(B) any foreign entities that may be enhancing the capacity
of the Democratic People's Republic of Korea to conduct
malicious cyber-enabled activities, including by providing
internet infrastructure.
(4) A summary of activities of the Democratic People's
Republic of Korea relating to evading sanctions imposed by
the United States or the United Nations Security Council,
including an assessment of the sourcing, manufacture, trade,
or distribution of methamphetamines, narcotics (including
opioids such as fentanyl), and other illicit substances and
any associated precursor chemicals, including by state-owned
entities, other entities (including universities), and
individuals, for the purpose of financing or otherwise
supporting the nuclear and ballistic missile programs of the
Democratic People's Republic of Korea.
SEC. __14. BRIEFING ON UNITED STATES ENGAGEMENT WITH THE
DEMOCRATIC PEOPLE'S REPUBLIC OF KOREA.
Not later than 30 days after the date of the enactment of
this Act, and regularly thereafter until the date that is 2
years after such date of enactment, the Secretary of State
shall brief the appropriate congressional committees on the
status of any United States diplomatic engagement with the
Government of the Democratic People's Republic of Korea,
including with respect to efforts to secure the release of
United States citizens detained in the Democratic People's
Republic of Korea.
SEC. __15. BRIEFING AND STRATEGY RELATING TO USE OF ROCKET
FUELS FOR BALLISTIC MISSILES BY THE DEMOCRATIC
PEOPLE'S REPUBLIC OF KOREA.
(a) Briefing Required.--
(1) In general.--Not later than 90 days after the date of
the enactment of this Act, the Director of National
Intelligence, in conjunction with the Secretary of State,
shall brief the appropriate congressional committees on the
use by the Democratic People's Republic of Korea of
unsymmetrical dimethyl hydrazine, solid fuels, and other
rocket fuels to power its ballistic missiles.
(2) Elements.--The briefing under paragraph (1) shall
include the following:
(A) An assessment of each type of rocket fuel the
Democratic People's Republic of Korea uses, or potentially
may use, to power its ballistic missiles, including the
chemical precursors, production process, and required
production equipment for each such type of rocket fuel.
(B) With respect to each such type of rocket fuel, an
assessment of the following:
(i) Whether the use of that type of rocket fuel by the
Democratic People's Republic of Korea is prohibited under
United Nations Security Council resolutions, other
multilateral sanctions imposed with respect to the Democratic
People's Republic of Korea, or sanctions imposed by the
United States with respect to the Democratic People's
Republic of Korea.
(ii) Whether the Democratic People's Republic of Korea
imports that type of rocket fuel as a finished product or
imports chemical precursors and manufactures the finished
product.
(iii) The countries from which the Democratic People's
Republic of Korea imports that type of rocket fuel as a
finished product or from which the Democratic People's
Republic of Korea imports the chemical precursors and
equipment to manufacture that type of rocket fuel.
[[Page S3517]]
(iv) The size and locations of the Democratic People's
Republic of Korea's stockpiles, if any, of that type of
rocket fuel.
(v) Whether that type of rocket fuel can be attributed to
its original exporter based on unique chemical signatures or
other relevant identifying information.
(b) Strategy Required.--The Secretary of State, in
consultation with the heads of relevant agencies, shall
develop a diplomatic strategy to end the transfer of all
rocket fuels and chemical precursors for rocket fuels to the
Democratic People's Republic of Korea.
(c) Sense of Congress.--It is the sense of Congress that
the United States Ambassador to the United Nations should
introduce a resolution to the United Nations Security Council
to request that the Panel of Experts on the Democratic
People's Republic of Korea established by United Nations
Security Council Resolution 1874 (2009) investigate the
importation and manufacture by the Democratic People's
Republic of Korea of rocket and ballistic missile fuels,
including unsymmetrical dimethyl hydrazine, solid fuels, and
other fuels or their chemical precursors.
SEC. __16. BRIEFING AND STRATEGY RELATING TO EFFORTS BY THE
RUSSIAN FEDERATION TO BLOCK ENFORCEMENT OF
UNITED NATIONS SANCTIONS.
(a) Briefing Required.--
(1) In general.--Not later than 90 days after the date of
the enactment of this Act, the Secretary of State shall brief
the appropriate congressional committees on the efforts of
the Russian Federation to undercut enforcement of United
Nations sanctions with respect to the Democratic People's
Republic of Korea, with particular focus on the limit set by
the United Nations Security Council on the supply, sale, or
transfer to the Democratic People's Republic of Korea of all
refined petroleum products in excess of an aggregate amount
of 500,000 barrels during any 12-month period beginning on or
after January 1, 2018.
(2) Elements.--The briefing under paragraph (1) shall
include the following:
(A) An assessment of the likelihood that the patterns of
behavior illustrated by Annexes 1-3 to the March 5, 2019,
report of the Panel of Experts established pursuant to United
Nations Security Council Resolution 1874 (2009), including
efforts of the Russian Federation to dismiss findings, will
continue.
(B) A description of steps being taken to ensure, despite
the opposition of the Russian Federation, a timely decision
by the United Nations Security Council to act to halt all
refined petroleum product exports to the Democratic People's
Republic of Korea in each 12-month period that the limit
described in paragraph (1) is exceeded.
(C) A description of any other United Nations sanctions
with respect to the Democratic People's Republic of Korea
being disregarded or actively undercut by the Russian
Federation.
(b) Strategy Required.--The Secretary of State, in
consultation with the heads of relevant agencies, shall
develop a diplomatic strategy to counter efforts by the
Russian Federation to undercut enforcement of United Nations
sanctions, including the limit described in subsection
(a)(1), with respect to the Democratic People's Republic of
Korea.
SEC. __17. APPROPRIATE CONGRESSIONAL COMMITTEES DEFINED.
In this subtitle, the term ``appropriate congressional
committees'' means the Committee on Foreign Relations of the
Senate and the Committee on Foreign Affairs of the House of
Representatives.
Subtitle B--Measures to Address the Threats Posed by and Capabilities
of the Democratic People's Republic of Korea
SEC. __21. REPORT ON EFFECTING A STRATEGY TO DIPLOMATICALLY
AND ECONOMICALLY PRESSURE THE DEMOCRATIC
PEOPLE'S REPUBLIC OF KOREA.
(a) In General.--Not later than 90 days after the date of
the enactment of this Act, and every 180 days thereafter, the
Secretary of State shall submit to the appropriate
congressional committees a report on actions taken by the
United States to diplomatically and economically pressure the
Democratic People's Republic of Korea.
(b) Elements.--Each report required by subsection (a) shall
include the following:
(1) A description of the actions taken by the Secretary of
State to consult with governments around the world, with the
purpose of inducing those governments to diplomatically and
economically pressure the Democratic People's Republic of
Korea.
(2) A description of the actions taken by those governments
to implement measures to diplomatically and economically
pressure the Democratic People's Republic of Korea.
(3) A list of countries the governments of which the
Secretary has determined to be noncooperative with respect to
implementing measures to diplomatically and economically
pressure the Democratic People's Republic of Korea.
(4) A plan of action to engage with, and increase
cooperation with respect to the Democratic People's Republic
of Korea by, the governments of the countries on the list
required by paragraph (3).
(c) Form of Report.--Each report required by subsection (a)
shall be submitted in unclassified form but may include a
classified annex.
SEC. __22. AUTHORIZATION TO ALTER UNITED STATES RELATIONS
WITH COUNTRIES ENABLING THE DEMOCRATIC PEOPLE'S
REPUBLIC OF KOREA.
(a) In General.--The Secretary of State may take such
actions as are necessary to induce countries on the list
required by section __21(b)(3) to take measures to
diplomatically and economically pressure the Democratic
People's Republic of Korea.
(b) Actions Included.--Actions described in subsection (a)
may include--
(1) reduction of the diplomatic presence in the United
States of countries on the list required by section
__21(b)(3); and
(2) reduction of the diplomatic presence of the United
States in those countries.
(c) Consultation.--Not less than 15 days before taking any
action under subsection (a), the Secretary shall consult with
the appropriate congressional committees with respect to the
action.
(d) Sense of Congress.--It is the sense of Congress that
inaction by certain countries in the Indo-Pacific region to
reduce cooperation with the Democratic People's Republic of
Korea hinders the deepening of strategic relationships with
the United States.
SEC. __23. AUTHORIZATION TO TERMINATE OR REDUCE UNITED STATES
FOREIGN ASSISTANCE TO COUNTRIES ENABLING THE
DEMOCRATIC PEOPLE'S REPUBLIC OF KOREA.
(a) In General.--The Secretary of State may terminate or
reduce United States foreign assistance to countries on the
list required by section __21(b)(3).
(b) Assistance Included.--Assistance terminated or reduced
under subsection (a) may include--
(1) assistance under chapter 4 of part II of the Foreign
Assistance Act of 1961 (22 U.S.C. 2346 et seq.; relating to
the Economic Support Fund);
(2) military assistance provided pursuant to section 23 of
the Arms Export Control Act (22 U.S.C. 2763; relating to the
Foreign Military Financing Program); and
(3) assistance provided under chapter 5 of part II of the
Foreign Assistance Act of 1961 (22 U.S.C. 2347 et seq.;
relating to international military education and training).
(c) Consultation.--Not less than 15 days before taking any
action under subsection (a), the Secretary shall consult with
the appropriate congressional committees with respect to the
action.
(d) Sense of Congress.--It is the sense of Congress that
inaction by certain countries in the Indo-Pacific region to
reduce cooperation with the Democratic People's Republic of
Korea hinders the deepening of strategic relationships with
the United States.
SEC. __24. APPROPRIATE CONGRESSIONAL COMMITTEES DEFINED.
In this subtitle, the term ``appropriate congressional
committees'' means--
(1) the Committee on Foreign Relations and the Committee on
Appropriations of the Senate; and
(2) the Committee on Foreign Affairs and the Committee on
Appropriations of the House of Representatives.
Subtitle C--Strategy to End Use of North Korean Laborers by Other
Countries
SEC. __31. STRATEGY TO END USE OF NORTH KOREAN LABORERS AND
HUMAN RIGHTS VIOLATIONS.
(a) In General.--Not later than 60 days after the date of
the enactment of this Act, the Secretary of State shall brief
the appropriate congressional committees on a strategy for
leveraging the sanctions imposed pursuant to section 302B of
the North Korea Sanctions and Policy Enhancement Act of 2016
(22 U.S.C. 9241b) to convince countries that import North
Korean laborers in a manner described in section 104(b)(1)(L)
of that Act (22 U.S.C. 9214(b)(1)(L)) to end that practice.
(b) Appropriate Congressional Committees Defined.--In this
section, the term ``appropriate congressional committees''
means--
(1) the Committee on Foreign Relations and the Committee on
Banking, Housing, and Urban Affairs of the Senate; and
(2) the Committee on Foreign Affairs and the Committee on
Financial Services of the House of Representatives.
SEC. __32. AMENDMENT OF REPORTING REQUIREMENT REGARDING
STRATEGY TO PROMOTE NORTH KOREAN HUMAN RIGHTS.
(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 (2), by striking ``and'' at the end;
(B) in paragraph (3), by striking ``104(b)(1)(M).'' and
inserting ``104(b)(1)(L); and''; and
(C) by adding at the end the following new paragraphs:
``(4) a list of countries that have not repatriated to the
Democratic People's Republic of Korea--
``(A) all nationals of the Democratic People's Republic of
Korea earning income in their jurisdictions; and
``(B) all safety oversight attaches of the Democratic
People's Republic of Korea; and
``(5) for each country on the list required by paragraph
(4)--
``(A) a list of the entities that employ significant
numbers of nationals of the Democratic People's Republic of
Korea earning income in the jurisdiction of that country; and
``(B) an assessment of which national or local government
agencies and officials are involved in facilitating the work,
presence, or authorization for work of nationals of the
[[Page S3518]]
Democratic People's Republic of Korea earning income in the
jurisdiction of the country and of safety oversight attaches
of the Democratic People's Republic of Korea.''.
(2) Frequency of reports clarified.--Section 302(a) of the
North Korea Sanctions and Policy Enhancement Act of 2016 (22
U.S.C. 9241(a)) is amended by striking ``periodically'' and
inserting ``every 120 days''.
Subtitle D--Enhancing Sanctions With Respect to the Democratic People's
Republic of Korea
SEC. __41. SANCTIONS RELATED TO ENABLERS OF THE DEMOCRATIC
PEOPLE'S REPUBLIC OF KOREA.
Section 104(d) of the North Korea Sanctions and Policy
Enhancement Act of 2016 (22 U.S.C. 9214(d)) is amended to
read as follows:
``(d) Application to Certain Persons, Subsidiaries, and
Agents.--The designation of a person under subsection (a) or
(b) and the blocking of property and interests in property
under subsection (c) shall apply with respect to a person who
is determined--
``(1) to be owned or controlled by, or to have acted or
purported to have acted for or on behalf of, directly or
indirectly, any person whose property and interests in
property are blocked pursuant to this section; or
``(2) to knowingly assist, sponsor, or provide significant
financial, material, or technological support to or for a
person designated under--
``(A) subsection (a) or (b);
``(B) an applicable Executive order; or
``(C) an applicable United Nations Security Council
resolution.''.
SEC. __42. MODIFICATION OF PENALTIES RELATING TO SANCTIONS.
Section 104(f) of the North Korea Sanctions and Policy
Enhancement Act of 2016 (22 U.S.C. 9214(f)) is amended to
read as follows:
``(f) Penalties.--
``(1) Prohibited conduct.--It shall be unlawful for any
person--
``(A) to engage in, conspire or attempt to engage in, or
cause any of the conduct described in paragraphs (1) through
(14) of subsection (a);
``(B) to knowingly evade or avoid a prohibition on such
conduct or the imposition of a sanction or penalty relating
to such conduct; or
``(C) to violate, attempt to violate, conspire to violate,
or cause a violation of any license, order, regulation, or
prohibition issued to carry out this section.
``(2) Civil penalties.--A person who engages in an unlawful
act described in paragraph (1) shall be subject to a civil
penalty in an amount not to exceed the greater of--
``(A) $500,000; or
``(B) an amount that is twice the amount of the transaction
that is the basis of the violation with respect to which the
penalty is imposed.
``(3) Criminal penalties.--A person who willfully engages
in an unlawful act described in paragraph (1) shall, upon
conviction, be fined not more than $1,000,000 and, in the
case of an individual, imprisoned for not more than 20 years,
or both.
``(4) Rule of construction.--The civil and criminal
penalties under paragraphs (2) and (3) for engaging an
unlawful act described in paragraph (1) shall be imposed with
respect to a person without regard to whether the President
has designated the person for the imposition of sanctions
under this section or pursuant to the International Emergency
Economic Powers Act (50 U.S.C. 1701 et seq.).''.
SEC. __43. ENHANCEMENT OF CARGO SCREENING CRITERIA.
Section 205(c)(1) of the North Korea Sanctions and Policy
Enhancement Act of 2016 (22 U.S.C. 9225(c)(1)) is amended--
(1) in subparagraph (B), by striking ``; or'' and inserting
a semicolon;
(2) in subparagraph (C), by striking the period and
inserting ``; or''; and
(3) by adding at the end the following:
``(D) originates in a jurisdiction or a geographical area
that the Secretary determines is otherwise of concern with
respect to evasion of sanctions mandated with respect to
North Korea.''.
SEC. __44. ENFORCEMENT OF UNITED NATIONS SANCTIONS WITH
RESPECT TO CRUDE OIL AND REFINED PETROLEUM
PRODUCTS.
(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 the following:
``SEC. 212. ENFORCEMENT OF UNITED NATIONS SANCTIONS WITH
RESPECT TO CRUDE OIL AND REFINED PETROLEUM
PRODUCTS.
``(a) In General.--The President shall impose one or more
of the sanctions described in subsection (c) on a person
described in subsection (b).
``(b) Person Described.--A person described in this
subsection is a person that--
``(1) the President determines knowingly, on or after the
date of the enactment of the Leverage to Enhance Effective
Diplomacy Act of 2019, directly or indirectly, supplies,
sells, or transfers crude oil to any entity or
instrumentality of the Government of North Korea or any
person representing that government; and
``(2) is organized under the laws of a jurisdiction that
the President determines to have exported more than the
aggregate amount of 4,000,000 barrels of crude oil during any
12-month period to North Korea.
``(c) Sanctions Described.--The sanctions described in this
subsection are the following:
``(1) Asset blocking.--The President may block and prohibit
all transactions in all property and interests in property of
a person described in subsection (b) 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) Ban on investment in equity or debt.--The President
may, pursuant to such regulations or guidelines as the
President may prescribe, prohibit any United States person
from investing in or purchasing significant amounts of equity
or debt instruments of the person described in subsection
(b).
``(3) Exclusion of corporate officers.--The President may
direct the Secretary of State to deny a visa to, and the
Secretary of Homeland Security to exclude from the United
States, any alien that the President determines is a
corporate officer or principal of, or a shareholder with a
controlling interest in, the person described in subsection
(b).
``(4) Sanctions on principal executive officers.--The
President may impose on the principal executive officer or
officers of the person described in subsection (b), or on
persons performing similar functions and with similar
authorities as such officer or officers, any of the sanctions
under this subsection.
``(d) Waivers.--
``(1) Efforts to enforce united nations limits.--The
President may waive the application of sanctions under
subsection (a) if the President certifies to Congress that
the jurisdiction described in subsection (b)(2) is applying
appropriate effort to--
``(A) fulfill its obligation under international law to
prohibit its nationals, individuals otherwise subject to its
jurisdiction, entities incorporated in its territory or
subject to its jurisdiction, and vessels flying its flag from
facilitating or engaging in ship-to-ship transfers to or from
North Korea-flagged vessels of any goods or items that are
being supplied, sold, or transferred to or from North Korea,
including refined petroleum products and coal; and
``(B) reduce, towards the limit established by the United
Nations Security Council, the aggregate amount of crude oil
exported from or re-exported through the jurisdiction to
North Korea.
``(2) National security.--The President may waive the
application of sanctions under subsection (a) if the
President certifies to Congress that the waiver is important
to the national security interest of the United States.
``(3) Briefing required.--If the President waives the
application of sanctions under paragraph (1) or (2), the
President shall brief the following committees on the waiver:
``(A) The Committee on Banking, Housing, and Urban Affairs
and the Committee on Foreign Relations of the Senate.
``(B) The Committee on Financial Services and the Committee
on Foreign Affairs of the House of Representatives.
``(e) United States Person Defined.--In this section, the
term `United States person' means--
``(1) a United States citizen or an alien lawfully admitted
for permanent residence to the United States; or
``(2) an entity organized under the laws of the United
States or of any jurisdiction within the United States,
including a foreign branch of such an entity.''.
(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 211
the following:
``Sec. 212. Enforcement of United Nations sanctions with respect to
crude oil and refined petroleum products.''.
SEC. __45. SANCTIONS WITH RESPECT TO SOURCING, MANUFACTURE,
TRADE, OR DISTRIBUTION OF ILLICIT SUBSTANCES.
Section 104(a)(6) of the North Korea Sanctions and Policy
Enhancement Act of 2016 (22 U.S.C. 9214(a)(6)) is amended by
striking ``narcotics trafficking'' and inserting
``trafficking of, or facilitation of the souring,
manufacture, trade, or distribution of methamphetamines,
narcotics including opioids such as fentanyl, and other
illicit substances,''.
SEC. __46. REPORT ON CERTAIN ENTITIES CONDUCTING BUSINESS
WITH THE DEMOCRATIC PEOPLE'S REPUBLIC OF KOREA.
(a) In General.--Not later than 90 days after the date of
the date of the enactment of this Act, the President shall
submit to the appropriate congressional committees a report
that includes the following:
(1) A list of entities that, during the 12-month period
preceding submission of the report, have imported or exported
any goods, services, or technology to or from the Democratic
People's Republic of Korea valued at more than $100,000,000.
(2) A list of entities in the People's Republic of China,
the Russian Federation, and other countries outside of the
Democratic People's Republic of Korea that are known to
employ significant numbers of laborers from the Democratic
People's Republic of Korea.
(3) For each country that hosts significant numbers of such
laborers, a list of specific economic sectors in which such
laborers are most commonly used.
(b) Form.--The report required by subsection (a) shall be
submitted in unclassified form, but may include a classified
annex.
[[Page S3519]]
(c) Briefing.--The President shall brief the appropriate
congressional committees, in a classified setting if
necessary, not later than 30 days after the delivery of the
report required by subsection (a) on whether the entities
identified in subsection (a)(2) meet the criteria for
designation for the imposition of sanctions under applicable
provisions of law.
SEC. __47. ENHANCING THE REVIEW PROCESS FOR CHANGES TO
SANCTIONS AND RULEMAKING.
Section 208 of the North Korea Sanctions and Policy
Enhancement Act of 2016 (22 U.S.C. 9228) is amended by adding
at the end the following:
``(e) Certification Requirement for Removal of Certain
Persons From the List of Specially Designated Nationals and
Blocked Persons.--
``(1) In general.--On and after the date of the enactment
of the Leverage to Enhance Effective Diplomacy Act of 2019,
the President may not remove a person described in paragraph
(2) from the list of specially designated nationals and
blocked persons maintained by the Office of Foreign Asset
Control of the Department of the Treasury unless and until
the President submits to the appropriate congressional
committees a certification described in paragraph (3) with
respect to the person.
``(2) Persons described.--A person described in this
paragraph is a person the property and interests in property
of which are blocked pursuant to the International Emergency
Economic Powers Act (50 U.S.C. 1701 et seq.) under this Act,
an applicable Executive order, or an applicable United
Nations Security Council resolution.
``(3) Certification described.--A certification described
in this paragraph with respect to a person is a certification
that the person is not engaging in conduct--
``(A) for which the person was included on the list of
specially designated nationals and blocked persons by the
Office of Foreign Assets Control; or
``(B) that violates applicable United States or
international laws.
``(4) Form.--A certification described in paragraph (3)
shall be submitted in unclassified form, but may include a
classified annex.
``(f) Certification Requirement for Removal of Designation
of North Korea as a Jurisdiction of Primary Money Laundering
Concern.--
``(1) In general.--The President may not terminate the
designation of North Korea as a jurisdiction of primary money
laundering concern pursuant to section 5318A of title 31,
United States Code, unless the President submits to the
appropriate congressional committees a certification
described in paragraph (2) with respect to North Korea.
``(2) Certification described.--A certification described
in this paragraph is a certification that the Government of
North Korea--
``(A) is no longer using state-controlled financial
institutions and front companies to conduct transactions that
support the proliferation of weapons of mass destruction and
ballistic missiles;
``(B) has instituted sufficient bank supervision and
controls with respect to anti-money laundering and combating
the financing of terrorism;
``(C) is cooperating with United States law enforcement and
regulatory officials in obtaining information about
transactions originating in or routed through or to North
Korea; and
``(D) is no longer relying on the illicit and corrupt
activity of high-level officials to support its government.
``(3) Form.--The certification described in paragraph (2)
shall be submitted in unclassified form, but may include a
classified annex.
``(g) Applicability of Congressional Review of Certain
Agency Rulemaking Relating to North Korea.--Notwithstanding
any other provision of law, any rule to amend or otherwise
alter any provision of part 510 of title 31, Code of Federal
Regulations, that is published on or after the date of the
enactment of the Leverage to Enhance Effective Diplomacy Act
of 2019 shall be deemed to be a rule or major rule (as the
case may be) for purposes of chapter 8 of title 5, United
States Code, and shall be subject to all applicable
requirements of that chapter.''.
SEC. __48. REINFORCING GLOBAL EXPORT CONTROLS.
There are authorized to be appropriated to the Secretary of
State such sums as may be necessary to assess and, where
necessary, to enhance the adequacy of the export control
regimes of United Nations member countries, including through
the use of action plans to encourage and assist countries in
adopting and using authorities necessary to enforce sanctions
and export controls required by United Nations Security
Council resolutions.
SEC. __49. ADDITIONAL RESOURCES TO DETECT EVASION OF
SANCTIONS TARGETING THE DEMOCRATIC PEOPLE'S
REPUBLIC OF KOREA.
(a) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary of State and the
Secretary of the Treasury such sums as may be necessary to
enhance the ability of the Department of State and the
Department of the Treasury to detect evasion of sanctions
targeting the Democratic People's Republic of Korea,
including through actions described in subsection (b).
(b) Assignment of Detailees.--The Secretary of the Treasury
should assign one additional detailee to each United States
embassy or consulate in each country that the Secretary, in
consultation with the Secretary of State, assesses to be
commonly linked to evasion of sanctions targeting the
Democratic People's Republic of Korea.
(c) Sense of Congress.--It is the sense of Congress that
the United States should devote additional maritime patrol
and reconnaissance aircraft to areas known to be associated
with maritime forms of sanctions evasion by the Democratic
People's Republic of Korea, including ship-to-ship transfers
of refined petroleum products, oil, coal, and other goods and
the export of arms by the Democratic People's Republic of
Korea, to enhance the capability of the United States to
detect and publicize such activities.
SEC. __50. BRIEFING ON EVASION OF SANCTIONS TARGETING THE
DEMOCRATIC PEOPLE'S REPUBLIC OF KOREA.
(a) In General.--Not later than 180 days after the date of
the enactment of this Act, and annually thereafter until the
date that is 5 years after such date of enactment, the
Secretary of State and the Secretary of the Treasury shall
brief the appropriate congressional committees regarding
evasion of sanctions targeting the Democratic People's
Republic of Korea.
(b) Elements.--Each briefing required by subsection (a)
shall--
(1) cover each country described in section __49(b) by
discussing any known or suspected cases or types of sanctions
evasion that implicate that country; and
(2) be based on the input of detailees assigned as
described in that section.
SEC. __51. BRIEFING ON ILLICIT USE OF VIRTUAL CURRENCIES BY
THE DEMOCRATIC PEOPLE'S REPUBLIC OF KOREA.
(a) In General.--Not later than 180 days after the date of
the enactment of this Act, the Secretary of the Treasury
shall brief the appropriate congressional committees on the
illicit use of virtual currencies by the Democratic People's
Republic of Korea.
(b) Elements.--The briefing required by subsection (a)
shall--
(1) to the extent possible, provide an estimate of the
amount of fiat currency that the Democratic People's Republic
of Korea has been able to generate as of the date of the
briefing through conversion of virtual currency obtained by
illicit means including cyberattacks;
(2) describe known pathways through which the Democratic
People's Republic of Korea executes such conversions, with an
emphasis on identifying virtual currency exchanges used by
the Democratic People's Republic of Korea or its agents; and
(3) cover any known instances of purchases of goods or
services by the Democratic People's Republic of Korea using
virtual currency without converting that currency to fiat
currency before the purchases.
SEC. __52. BRIEFING ON CROSS-BORDER FLOWS OF FENTANYL AND
OTHER ILLICIT SUBSTANCES.
(a) In General.--Not later than 180 days after the date of
the date of the enactment of this Act, the Secretary of the
Treasury shall brief the appropriate congressional committees
on the methods by which the Democratic People's Republic of
Korea produces and exports methamphetamines and other
narcotics, including opioids such as fentanyl.
(b) Elements.--The briefing required by subsection (a)
shall--
(1) provide estimates of the amounts of illicit substances
exported by the Democratic People's Republic of Korea and the
associated revenues;
(2) describe known pathways through which the Democratic
People's Republic of Korea procures precursors for and
conducts exports of such substances, with particular focus on
exports into the People's Republic of China; and
(3) assess the extent to which such pathways differ from
pathways used by the Democratic People's Republic of Korea to
export arms and other goods the export of which is
prohibited.
SEC. __53. BRIEFING ON UNITED STATES CITIZENS DETAINED BY THE
DEMOCRATIC PEOPLE'S REPUBLIC OF KOREA.
(a) In General.--Notwithstanding any other provision of
law, not later than 30 days after the date of the enactment
of this Act, and every 180 days thereafter until the date
that is 2 years after such date of enactment, the Secretary
of State shall brief the appropriate congressional committees
on United States citizens detained by the Government of the
Democratic People's Republic of Korea, including United
States citizens who are also citizens of other countries.
(b) Elements.--Each briefing required by subsection (a)
shall, to the extent practicable and appropriate, include,
with respect to each United States citizen detained by the
Government of the Democratic People's Republic of Korea, the
following:
(1) The name of the United States citizen.
(2) A description of the circumstances surrounding the
detention of the United States citizen.
(3) An assessment of the health and welfare of the United
States citizen.
(4) An assessment of whether any United States Government
officials or foreign government officials have been provided
access to the United States citizen.
(5) A summary of any communications or comments by
officials of the Government of the Democratic People's
Republic of Korea regarding the detention and welfare of the
United States citizen.
[[Page S3520]]
(6) A summary of official communications by United States
Government officials or foreign government officials, or
other persons acting on behalf of those officials, regarding
the United States citizen, including efforts to secure the
release of the United States citizen.
(c) Interim Briefings.--During periods between briefings
under subsection (a), the Secretary of State shall brief the
appropriate congressional committees on any significant
updates on the status and welfare of any United States
citizens detained by the Government of the Democratic
People's Republic of Korea.
SEC. __54. ADDITION OF DISCUSSION OF SANCTIONS EVASION TO
ANNUAL REPORT OF THE UNITED STATES-CHINA
ECONOMIC AND SECURITY REVIEW COMMISSION.
Section 1238(c)(2) of the Floyd D. Spence National Defense
Authorization Act for Fiscal Year 2001 (as enacted into law
by Public Law 106-398; 22 U.S.C. 7002(c)(2)) is amended by
adding at the end the following:
``(L) The evasion of sanctions targeting the Democratic
People's Republic of Korea by or involving the People's
Republic of China.''.
SEC. __55. EXCEPTION RELATING TO IMPORTATION OF GOODS.
(a) 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.
(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.
SEC. __56. APPROPRIATE CONGRESSIONAL COMMITTEES DEFINED.
In this subtitle, the term ``appropriate congressional
committees'' means--
(1) the Committee on Foreign Relations and the Committee on
Banking, Housing, and Urban Affairs of the Senate; and
(2) the Committee on Foreign Affairs and the Committee on
Financial Services of the House of Representatives.
SEC. __57. EFFECTIVE DATE.
The amendments made by this subtitle shall take effect on
the date of the enactment of this Act and apply with respect
to conduct engaged on or after such date of enactment.
Subtitle E--Miscellaneous
SEC. __61. AUTHORITY TO CONSOLIDATE REPORTS AND BRIEFINGS.
Any reports or briefings required to be submitted to
Congress under this title or any amendments made by this
title that are subject to a deadline for submission
consisting of the same unit of time may be consolidated into
a single report or briefing. The consolidated report or
briefing shall contain all information required under this
title or any amendment made by this title with respect to the
reports comprising such consolidated report or briefing.
______