[Congressional Record (Bound Edition), Volume 160 (2014), Part 9]
[House]
[Pages 13264-13272]
[From the U.S. Government Publishing Office, www.gpo.gov]




             NORTH KOREA SANCTIONS ENFORCEMENT ACT OF 2014

  Mr. ROYCE. Mr. Speaker, I move to suspend the rules and pass the bill 
(H.R. 1771) to improve the enforcement of sanctions against the 
Government of North Korea, and for other purposes, as amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 1771

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``North 
     Korea Sanctions Enforcement Act of 2014''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Definitions.

       TITLE I--INVESTIGATIONS, PROHIBITED CONDUCT, AND PENALTIES

Sec. 101. Statement of policy.
Sec. 102. Investigations.
Sec. 103. Briefing to Congress.
Sec. 104. Prohibited conduct and mandatory and discretionary 
              designation and sanctions authorities.
Sec. 105. Forfeiture of property.

 TITLE II--SANCTIONS AGAINST NORTH KOREAN PROLIFERATION, HUMAN RIGHTS 
                     ABUSES, AND ILLICIT ACTIVITIES

Sec. 201. Determinations with respect to North Korea as a jurisdiction 
              of primary money laundering concern.
Sec. 202. Ensuring the consistent enforcement of United Nations 
              Security Council resolutions and financial restrictions 
              on North Korea.
Sec. 203. Proliferation prevention sanctions.
Sec. 204. Procurement sanctions.
Sec. 205. Enhanced inspections authorities.
Sec. 206. Travel sanctions.
Sec. 207. Exemptions, waivers, and removals of designation.
Sec. 208. Sense of Congress on enforcement of sanctions on North Korea.

                  TITLE III--PROMOTION OF HUMAN RIGHTS

Sec. 301. Information technology.
Sec. 302. Report on North Korean prison camps.
Sec. 303. Report on persons who are responsible for serious human 
              rights abuses or censorship in North Korea.

                     TITLE IV--GENERAL AUTHORITIES

Sec. 401. Suspension of sanctions and other measures.
Sec. 402. Termination of sanctions and other measures.
Sec. 403. Regulations.
Sec. 404. Effective date.

     SEC. 2. FINDINGS.

       Congress finds the following:
       (1) The Government of North Korea has repeatedly violated 
     its commitments to the complete, verifiable, irreversible 
     dismantlement of its nuclear weapons programs, and has 
     willfully violated multiple United Nations Security Council 
     resolutions calling for it to cease its development, testing, 
     and production of weapons of mass destruction.
       (2) North Korea poses a grave risk for the proliferation of 
     nuclear weapons and other weapons of mass destruction.
       (3) The Government of North Korea has been implicated 
     repeatedly in money laundering and illicit activities, 
     including prohibited arms sales, narcotics trafficking, the 
     counterfeiting of United States currency, and the 
     counterfeiting of intellectual property of United States 
     persons.
       (4) The Government of North Korea has, both historically 
     and recently, repeatedly sponsored acts of international 
     terrorism, including attempts to assassinate defectors and 
     human rights activists, repeated threats of violence against 
     foreign persons, leaders, newspapers, and cities, and the 
     shipment of weapons to terrorists.
       (5) North Korea has unilaterally withdrawn from the 1953 
     Armistice Agreement that ended the Korean War, and committed 
     provocations against South Korea in 2010 by sinking the 
     warship Cheonan and killing 46 of her crew, and by shelling 
     Yeonpyeong Island, killing four South Koreans.
       (6) North Korea maintains a system of brutal political 
     prison camps that contain as many as 120,000 men, women, and 
     children, who live in atrocious living conditions with 
     insufficient food, clothing, and medical care, and under 
     constant fear of torture or arbitrary execution.
       (7) The Congress reaffirms the purposes of the North Korean 
     Human Rights Act of 2004 contained in section 4 of such Act 
     (22 U.S.C. 7802).
       (8) North Korea has prioritized weapons programs and the 
     procurement of luxury goods, in defiance of United Nations 
     Security Council resolutions, and in gross disregard of the 
     needs of its people.
       (9) Persons, including financial institutions, who engage 
     in transactions with, or provide financial services to, the 
     Government of North Korea and its financial institutions 
     without establishing sufficient financial safeguards against 
     North Korea's use of these transactions to promote 
     proliferation, weapons trafficking, human rights violations, 
     illicit activity, and the purchase of luxury goods, aid and 
     abet North Korea's misuse of the international financial 
     system, and also violate the intent of relevant United 
     Nations Security Council resolutions.
       (10) The Government of North Korea's conduct poses an 
     imminent threat to the security of the United States and its 
     allies, to the global economy, to the safety of members of 
     the United States armed forces, to the integrity of the 
     global financial system, to the integrity of global 
     nonproliferation programs, and to the people of North Korea.
       (11) The Congress seeks, through this legislation, to use 
     nonmilitary means to address this crisis, to provide 
     diplomatic leverage to negotiate necessary changes in North 
     Korea's conduct, and to ease the suffering of the people of 
     North Korea.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Applicable executive order.--The term ``applicable 
     Executive order'' means--
       (A) Executive Order 13382 (2005), 13466 (2008), 13551 
     (2010), or 13570 (2011), to the extent that such Executive 
     order authorizes the imposition of sanctions on persons for 
     conduct, or prohibits transactions or activities, involving 
     the Government of North Korea; or
       (B) any Executive order adopted on or after the date of the 
     enactment of this Act, to the extent that such Executive 
     order authorizes the imposition of sanctions on persons for 
     conduct, or prohibits transactions or activities, involving 
     the Government of North Korea.
       (2) Applicable united nations security council 
     resolution.--The term ``applicable United Nations Security 
     Council resolution'' means--
       (A) United Nations Security Council Resolution 1695 (2006), 
     1718 (2006), 1874 (2009), 2087 (2013), or 2094 (2013); or
       (B) any United Nations Security Council resolution adopted 
     on or after the date of the enactment of this Act, to the 
     extent that such resolution authorizes the imposition of 
     sanctions on persons for conduct, or prohibits transactions 
     or activities, involving the Government of North Korea.
       (3) Appropriate congressional committees.--The term 
     ``appropriate congressional committees'' means--
       (A) the Committee on Foreign Affairs, the Committee on Ways 
     and Means, and the Committee on Financial Services of the 
     House of Representatives; and
       (B) the Committee on Foreign Relations and the Committee on 
     Banking, Housing, and Urban Affairs of the Senate.
       (4) Designated person.--The term ``designated person'' 
     means a person designated under subsection (a) or (b) of 
     section 104 for purposes of applying one or more of the 
     sanctions described in title I or II of this Act with respect 
     to the person.
       (5) Government of north korea.--The term ``Government of 
     North Korea'' means--
       (A) the Government of the Democratic People's Republic of 
     Korea or any political subdivision, agency, or 
     instrumentality thereof; and
       (B) any person owned or controlled by, or acting for or on 
     behalf of, the Government of the Democratic People's Republic 
     of Korea.
       (6) International terrorism.--The term ``international 
     terrorism'' has the meaning given such term in section 140(d) 
     of the Foreign Relations Authorization Act, Fiscal Years 1988 
     and 1989 (22 U.S.C. 2656f(d)).
       (7) Luxury goods.--The term ``luxury goods'' has the 
     meaning given such term in subpart 746.4 of title 15, Code of 
     Federal Regulations, and includes the items listed in 
     Supplement No. 1 to such regulation, and any similar items.
       (8) Monetary instrument.--The term ``monetary instrument'' 
     has the meaning given such term under section 5312 of title 
     31, United States Code.
       (9) North korean financial institution.--The term ``North 
     Korean financial institution'' means--
       (A) a financial institution organized under the laws of 
     North Korea or any jurisdiction within North Korea (including 
     a foreign branch of such institution);
       (B) any financial institution located in North Korea, 
     except as may be excluded from such definition by the 
     President in accordance with section 207(d);
       (C) any financial institution, wherever located, owned or 
     controlled by the Government of North Korea; and

[[Page 13265]]

       (D) any financial institution, wherever located, owned or 
     controlled by a financial institution described in 
     subparagraph (A), (B), or (C).
       (10) Other stores of value.--The term ``other stores of 
     value'' means--
       (A) prepaid access devices, tangible or intangible prepaid 
     access devices, or other instruments or devices for the 
     storage or transmission of value, as defined in part 1010 of 
     title 31, Code of Federal Regulations; and
       (B) any covered goods, as defined in section 1027.100 of 
     title 31, Code of Federal Regulations, and any instrument or 
     tangible or intangible access device used for the storage and 
     transmission of a representation of covered goods, or other 
     device, as defined in section 1027.100 of title 31, Code of 
     Federal Regulations.
       (11) Person.--The term ``person'' means--
       (A) a natural person;
       (B) a corporation, business association, partnership, 
     society, trust, financial institution, insurer, underwriter, 
     guarantor, and any other business organization, any other 
     nongovernmental entity, organization, or group, and any 
     governmental entity operating as a business enterprise; and
       (C) any successor to any entity described in subparagraph 
     (B).

       TITLE I--INVESTIGATIONS, PROHIBITED CONDUCT, AND PENALTIES

     SEC. 101. STATEMENT OF POLICY.

       In order to achieve the peaceful disarmament of North 
     Korea, Congress finds that it is necessary--
       (1) to encourage all states to fully and promptly implement 
     United Nations Security Council Resolution 2094 (2013);
       (2) to sanction the persons, including financial 
     institutions, that facilitate proliferation, illicit 
     activities, arms trafficking, imports of luxury goods, 
     serious human rights abuses, cash smuggling, and censorship 
     by the Government of North Korea;
       (3) to authorize the President to sanction persons who fail 
     to exercise due diligence to ensure that such financial 
     institutions and jurisdictions do not facilitate 
     proliferation, arms trafficking, kleptocracy, and imports of 
     luxury goods by the Government of North Korea;
       (4) to deny the Government of North Korea access to the 
     funds it uses to obtain nuclear weapons, ballistic missiles, 
     and luxury goods instead of providing for the needs of its 
     people; and
       (5) to enforce sanctions in a manner that avoids any 
     adverse humanitarian impact on the people of North Korea.

     SEC. 102. INVESTIGATIONS.

       The President shall initiate an investigation into the 
     possible designation of a person under section 104(a) upon 
     receipt by the President of credible information indicating 
     that such person has engaged in conduct described in section 
     104(a).

     SEC. 103. BRIEFING TO CONGRESS.

       Not later than 180 days after the date of the enactment of 
     this Act, and periodically thereafter, the President shall 
     provide to the appropriate congressional committees a 
     briefing on efforts to implement this Act, to include the 
     following, to the extent the information is available:
       (1) The principal foreign assets and sources of foreign 
     income of the Government of North Korea.
       (2) A list of the persons designated under subsections (a) 
     and (b) of section 104.
       (3) A list of the persons with respect to which sanctions 
     were waived or removed under section 207.
       (4) A summary of any diplomatic efforts made in accordance 
     with section 202(b) and of the progress realized from such 
     efforts, including efforts to encourage the European Union 
     and other states and jurisdictions to sanction and block the 
     assets of the Foreign Trade Bank of North Korea and Daedong 
     Credit Bank.

     SEC. 104. PROHIBITED CONDUCT AND MANDATORY AND DISCRETIONARY 
                   DESIGNATION AND SANCTIONS AUTHORITIES.

       (a) Prohibited Conduct and Mandatory Designation and 
     Sanctions Authority.--
       (1) Conduct described.--Except as provided in section 207, 
     the President shall designate under this subsection any 
     person the President determines to--
       (A) have knowingly engaged in significant activities or 
     transactions with the Government of North Korea that have 
     materially contributed to the proliferation of weapons of 
     mass destruction or their means of delivery (including 
     missiles capable of delivering such weapons), including any 
     efforts to manufacture, acquire, possess, develop, transport, 
     transfer, or use such items;
       (B) have knowingly imported, exported, or reexported to, 
     into, or from North Korea any arms or related materiel, 
     whether directly or indirectly;
       (C) have knowingly provided significant training, advice, 
     or other services or assistance, or engaged in transactions, 
     related to the manufacture, maintenance, or use of any arms 
     or related materiel to be imported, exported, or reexported 
     to, into, or from North Korea, or following their 
     importation, exportation, or reexportation to, into, or from 
     North Korea, whether directly or indirectly;
       (D) have knowingly, directly or indirectly, imported, 
     exported, or reexported significant luxury goods to or into 
     North Korea;
       (E) have knowingly engaged in or been responsible for 
     censorship by the Government of North Korea, including 
     prohibiting, limiting, or penalizing the exercise of freedom 
     of expression or assembly, limiting access to print or 
     broadcast media, or the facilitation or support of 
     intentional frequency manipulation that would jam or restrict 
     an international signal;
       (F) have knowingly engaged in or been responsible for 
     serious human rights abuses by the Government of North Korea, 
     including torture or cruel, inhuman, or degrading treatment 
     or punishment, prolonged detention without charges and trial, 
     causing the disappearance of persons by the abduction and 
     clandestine detention of those persons, and other denial of 
     the right to life, liberty, or the security of a person;
       (G) have knowingly, directly or indirectly, engaged in 
     significant acts of money laundering, the counterfeiting of 
     goods or currency, bulk cash smuggling, narcotics 
     trafficking, or other illicit activity that involves or 
     supports the Government of North Korea or any senior official 
     thereof, whether directly or indirectly; or
       (H) have knowingly attempted to engage in any of the 
     conduct described in subparagraphs (A) through (G) of this 
     paragraph.
       (2) Effect of designation.--With respect to any person 
     designated under this subsection, the President--
       (A) shall exercise the authorities of the International 
     Emergency Economic Powers Act (50 U.S.C. 1705 et seq.) 
     without regard to section 202 of such Act to block all 
     property and interests in property of any person designated 
     under this subsection that are in the United States, that 
     hereafter come within the United States, or that are or 
     hereafter come within the possession or control of any United 
     States person, including any overseas branch; and
       (B) may apply any of the sanctions described in section 
     204, 205(c), and 206.
       (3) Penalties.--The penalties provided for in section 206 
     of the International Emergency Economic Powers Act (50 U.S.C. 
     1705) shall apply to a person who violates, attempts to 
     violate, conspires to violate, or causes a violation of any 
     prohibition of this subsection, or of an order or regulation 
     prescribed under this Act, to the same extent that such 
     penalties apply to a person that commits an unlawful act 
     described in section 206(a) of that Act (50 U.S.C. 1705(a)).
       (b) Discretionary Designation and Sanctions Authority.--
       (1) Conduct described.--Except as provided in section 207, 
     the President may designate under this subsection any person 
     the President determines to--
       (A) have knowingly engaged in, contributed to, assisted, 
     sponsored, or provided financial, material or technological 
     support for, or goods and services in support of, any 
     violation of, or evasion of, an applicable United Nations 
     Security Council resolution;
       (B) have knowingly facilitated the transfer of any funds, 
     financial assets, or economic resources of, or property or 
     interests in property of a person designated under an 
     applicable Executive order, or by the United Nations Security 
     Council pursuant to an applicable United Nations Security 
     Council resolution;
       (C) have knowingly facilitated the transfer of any funds, 
     financial assets, or economic resources, or any property or 
     interests in property derived from, involved in, or that has 
     materially contributed to conduct prohibited by subsection 
     (a) or an applicable United Nations Security Council 
     resolution;
       (D) have knowingly facilitated any transaction that 
     contributes materially to a violation of an applicable United 
     Nations Security Council resolution;
       (E) have knowingly facilitated any transactions in cash or 
     monetary instruments or other stores of value, including 
     through cash couriers transiting to or from North Korea, used 
     to facilitate any conduct prohibited by an applicable United 
     Nations Security Council resolution;
       (F) have knowingly contributed to the bribery of an 
     official of the Government of North Korea, the 
     misappropriation, theft, or embezzlement of public funds by, 
     or for the benefit of, an official of the Government of North 
     Korea, or the use of any proceeds of any such conduct; or
       (G) have knowingly and materially assisted, sponsored, or 
     provided financial, material, or technological support for, 
     or goods or services to or in support of, the conduct 
     described in subparagraphs (A) through (F) of this paragraph 
     or the conduct described in subparagraphs (A) through (G) of 
     subsection (a)(1).
       (2) Effect of designation.--With respect to any person 
     designated under this subsection, the President--
       (A) may apply the sanctions described in section 204;
       (B) may apply any of the special measures described in 
     section 5318A of title 31, United States Code;
       (C) may prohibit any transactions in foreign exchange that 
     are subject to the jurisdiction of the United States and in 
     which such person has any interest;
       (D) may prohibit any transfers of credit or payments 
     between financial institutions or by, through, or to any 
     financial institution, to the extent that such transfers or 
     payments are subject to the jurisdiction of the

[[Page 13266]]

     United States and involve any interest of the person; and
       (E) may exercise the authorities of the International 
     Emergency Economic Powers Act (50 U.S.C. 1705 et seq.) 
     without regard to section 202 of such Act to block any 
     property and interests in property of the person that are in 
     the United States, that hereafter come within the United 
     States, or that are or hereafter come within the possession 
     or control of any United States person, including any 
     overseas branch.
       (c) Blocking of All Property and Interests in Property of 
     the Government of North Korea.--The President shall exercise 
     the authorities of the International Emergency Economic 
     Powers Act (50 U.S.C. 1705 et seq.) without regard to section 
     202 of such Act to block all property and interests in 
     property of the Government of North Korea that are in the 
     United States, that hereafter come within the United States, 
     or that are or hereafter come within the possession or 
     control of any United States person, including any overseas 
     branch.
       (d) Application.--The designation of a person and the 
     blocking of property and interests in property under 
     subsection (a), (b), or (c) shall also apply with respect to 
     a person who is determined to be owned or controlled by, or 
     to have acted or purported to act for or on behalf of, 
     directly or indirectly, any person whose property and 
     interests in property are blocked pursuant to this section.
       (e) Transaction Licensing.--The President shall deny or 
     revoke any license for any transaction that, in the 
     determination of the President, lacks sufficient financial 
     controls to ensure that such transaction will not facilitate 
     any of the conduct described in subsection (a) or subsection 
     (b).

     SEC. 105. FORFEITURE OF PROPERTY.

       (a) Amendment to Property Subject to Forfeiture.--Section 
     981(a)(1) of title 18, United States Code, is amended by 
     adding at the end the following new subparagraph:
       ``(I) Any property, real or personal, that is involved in a 
     violation or attempted violation, or which constitutes or is 
     derived from proceeds traceable to a violation, of section 
     104(a) of the North Korea Sanctions Enforcement Act of 
     2014.''.
       (b) Amendment to Definition of Civil Forfeiture Statute.--
     Section 983(i)(2)(D) of title 18, United States Code, is 
     amended--
       (1) by striking ``or the International Emergency Economic 
     Powers Act'' and inserting ``, the International Emergency 
     Economic Powers Act''; and
       (2) by adding at the end before the semicolon the 
     following: ``, or the North Korea Sanctions Enforcement Act 
     of 2014''.
       (c) Amendment to Definition of Specified Unlawful 
     Activity.--Section 1956(c)(7)(D) of title 18, United States 
     Code, is amended--
       (1) by striking ``or section 92 of the Atomic Energy Act of 
     1954'' and inserting ``section 92 of the Atomic Energy Act of 
     1954''; and
       (2) by adding at the end the following: ``, or section 
     104(a) of the North Korea Sanctions Enforcement Act of 
     2014''.

 TITLE II--SANCTIONS AGAINST NORTH KOREAN PROLIFERATION, HUMAN RIGHTS 
                     ABUSES, AND ILLICIT ACTIVITIES

     SEC. 201. DETERMINATIONS WITH RESPECT TO NORTH KOREA AS A 
                   JURISDICTION OF PRIMARY MONEY LAUNDERING 
                   CONCERN.

       (a) Findings.--Congress makes the following findings:
       (1) The Undersecretary of the Treasury for Terrorism and 
     Financial Intelligence, who is responsible for safeguarding 
     the financial system against illicit use, money laundering, 
     terrorist financing, and the proliferation of weapons of mass 
     destruction, has repeatedly expressed concern about North 
     Korea's misuse of the international financial system as 
     follows:
       (A) In 2006, the Undersecretary stated that, given North 
     Korea's ``counterfeiting of U.S. currency, narcotics 
     trafficking and use of accounts worldwide to conduct 
     proliferation-related transactions, the line between illicit 
     and licit North Korean money is nearly invisible'' and urged 
     financial institutions worldwide to ``think carefully about 
     the risks of doing any North Korea-related business.''.
       (B) In 2011, the Undersecretary stated that ``North Korea 
     remains intent on engaging in proliferation, selling arms as 
     well as bringing in material,'' and was ``aggressively 
     pursuing the effort to establish front companies.''.
       (C) In 2013, the Undersecretary stated, in reference to 
     North Korea's distribution of high-quality counterfeit United 
     States currency, that ``North Korea is continuing to try to 
     pass a supernote into the international financial system,'' 
     and that the Department of the Treasury would soon introduce 
     new currency with improved security features to protect 
     against counterfeiting by the Government of North Korea.
       (2) The Financial Action Task Force, an intergovernmental 
     body whose purpose is to develop and promote national and 
     international policies to combat money laundering and 
     terrorist financing, has repeatedly--
       (A) expressed concern at deficiencies in North Korea's 
     regimes to combat money laundering and terrorist financing;
       (B) urged North Korea to adopt a plan of action to address 
     significant deficiencies in these regimes and the serious 
     threat they pose to the integrity of the international 
     financial system;
       (C) urged all jurisdictions to apply countermeasures to 
     protect the international financial system from ongoing and 
     substantial money laundering and terrorist financing risks 
     emanating from North Korea;
       (D) urged all jurisdictions to advise their financial 
     institutions to give special attention to business 
     relationships and transactions with North Korea, including 
     North Korean companies and financial institutions; and
       (E) called on all jurisdictions to protect against 
     correspondent relationships being used to bypass or evade 
     countermeasures and risk mitigation practices, and take into 
     account money laundering and terrorist financing risks when 
     considering requests by North Korean financial institutions 
     to open branches and subsidiaries in their jurisdiction.
       (3) On March 7, 2013, the United Nations Security Council 
     unanimously adopted Resolution 2094, which--
       (A) welcomed the Financial Action Task Force's 
     recommendation on financial sanctions related to 
     proliferation, and its guidance on the implementation of 
     sanctions;
       (B) decided that Member States should apply enhanced 
     monitoring and other legal measures to prevent the provision 
     of financial services or the transfer of property that could 
     contribute to activities prohibited by applicable United 
     Nations Security Council resolutions; and
       (C) called on Member States to prohibit North Korean banks 
     from establishing or maintaining correspondent relationships 
     with banks in their jurisdictions, to prevent the provision 
     of financial services, if they have information that provides 
     reasonable grounds to believe that these activities could 
     contribute to activities prohibited by an applicable United 
     Nations Security Council resolution, or to the evasion of 
     such prohibitions.
       (b) Sense of Congress Regarding the Designation of North 
     Korea as a Jurisdiction of Primary Money Laundering 
     Concern.--Congress--
       (1) acknowledges the efforts of the United Nations Security 
     Council to impose limitations on, and require enhanced 
     monitoring of, transactions involving North Korean financial 
     institutions that could contribute to sanctioned activities;
       (2) urges the President, in the strongest terms, to 
     consider immediately designating North Korea as a 
     jurisdiction of primary money laundering concern, and to 
     adopt stringent special measures to safeguard the financial 
     system against the risks posed by North Korea's willful 
     evasion of sanctions and its illicit activities; and
       (3) urges the President to seek the prompt implementation 
     by other states of enhanced monitoring and due diligence to 
     prevent North Korea's misuse of the international financial 
     system, including by sharing information about activities, 
     transactions, and property that could contribute to 
     activities sanctioned by applicable United Nations Security 
     Council resolutions, or to the evasion of sanctions.
       (c) Determinations Regarding North Korea.--
       (1) In general.--The Secretary of the Treasury shall, not 
     later than 180 days after the date of the enactment of this 
     Act, determine, in consultation with the Secretary of State 
     and Attorney General, and in accordance with section 5318A of 
     title 31, United States Code, whether reasonable grounds 
     exist for concluding that North Korea is a jurisdiction of 
     primary money laundering concern.
       (2) Enhanced due diligence and reporting requirements.--
     Except as provided in section 207, if the Secretary of the 
     Treasury determines under this subsection that reasonable 
     grounds exist for finding that North Korea is a jurisdiction 
     of primary money laundering concern, the Secretary of the 
     Treasury, in consultation with the Federal functional 
     regulators, shall impose one or more of the special measures 
     described in paragraphs (1) through (5) of section 5318A(b) 
     of title 31, United States Code, with respect to the 
     jurisdiction of North Korea.
       (3) Report required.--
       (A) In general.--If the Secretary of the Treasury 
     determines that North Korea is a jurisdiction of primary 
     money laundering concern, the Secretary of the Treasury 
     shall, not later than 90 days after the date on which the 
     Secretary makes such determination, submit to the appropriate 
     congressional committees a report on the determination made 
     under paragraph (1) together with the reasons for that 
     determination.
       (B) Form.--A report or copy of any report submitted under 
     this paragraph shall be submitted in unclassified form but 
     may contain a classified annex.

     SEC. 202. ENSURING THE CONSISTENT ENFORCEMENT OF UNITED 
                   NATIONS SECURITY COUNCIL RESOLUTIONS AND 
                   FINANCIAL RESTRICTIONS ON NORTH KOREA.

       (a) Findings.--Congress finds that--
       (1) all states and jurisdictions are obligated to implement 
     and enforce applicable United Nations Security Council 
     resolutions fully and promptly, including by--

[[Page 13267]]

       (A) blocking the property of, and ensuring that any 
     property is prevented from being made available to, persons 
     designated by the Security Council under applicable United 
     Nations Security Council resolutions;
       (B) blocking any property associated with an activity 
     prohibited by applicable United Nations Security Council 
     resolutions; and
       (C) preventing any transfer of property and any provision 
     of financial services that could contribute to an activity 
     prohibited by applicable United Nations Security Council 
     resolutions, or to the evasion of sanctions under such 
     resolutions;
       (2) all states and jurisdictions share a common interest in 
     protecting the international financial system from the risks 
     of money laundering and illicit transactions emanating from 
     North Korea;
       (3) the United States Dollar and the Euro are the world's 
     principal reserve currencies, and the United States and the 
     European Union are primarily responsible for the protection 
     of the international financial system from these risks;
       (4) the cooperation of the People's Republic of China, as 
     North Korea's principal trading partner, is essential to the 
     enforcement of applicable United Nations Security Council 
     resolutions and to the protection of the international 
     financial system;
       (5) the report of the Panel of Experts established pursuant 
     to United Nations Security Council Resolution 1874, dated 
     June 11, 2013, expressed concern about the ability of banks 
     in states with less effective regulators and those unable to 
     afford effective compliance to detect and prevent illicit 
     transfers involving North Korea;
       (6) North Korea has historically exploited inconsistencies 
     between jurisdictions in the interpretation and enforcement 
     of financial regulations and applicable United Nations 
     Security Council resolutions to circumvent sanctions and 
     launder the proceeds of illicit activities;
       (7) Amroggang Development Bank, Bank of East Land, and 
     Tanchon Commercial Bank have been designated by the Secretary 
     of the Treasury, the United Nations Security Council, and the 
     European Union;
       (8) Korea Daesong Bank and Korea Kwangson Banking 
     Corporation have been designated by the Secretary of the 
     Treasury and the European Union;
       (9) the Foreign Trade Bank of North Korea has been 
     designated by the Secretary of the Treasury for facilitating 
     transactions on behalf of persons linked to its proliferation 
     network, and for serving as ``a key financial node''; and
       (10) Daedong Credit Bank has been designated by the 
     Secretary of the Treasury for activities prohibited by 
     applicable United Nations Security Council resolutions, 
     including the use of deceptive financial practices to 
     facilitate transactions on behalf of persons linked to North 
     Korea's proliferation network.
       (b) Sense of Congress.--It is the sense of Congress that 
     the President should intensify diplomatic efforts, both in 
     appropriate international fora such as the United Nations and 
     bilaterally, to develop and implement a coordinated, 
     consistent, multilateral strategy for protecting the global 
     financial system against risks emanating from North Korea, 
     including--
       (1) the cessation of any financial services whose 
     continuation is inconsistent with applicable United Nations 
     Security Council resolutions;
       (2) the cessation of any financial services to persons, 
     including financial institutions, that present unacceptable 
     risks of facilitating money laundering and illicit activity 
     by the Government of North Korea;
       (3) the blocking by all states and jurisdictions, in 
     accordance with the legal process of the state or 
     jurisdiction in which the property is held, of any property 
     required to be blocked under applicable United Nations 
     Security Council resolutions; and
       (4) the blocking of any property derived from illicit 
     activity, or from the misappropriation, theft, or 
     embezzlement of public funds by, or for the benefit of, 
     officials of the Government of North Korea.

     SEC. 203. PROLIFERATION PREVENTION SANCTIONS.

       (a) Export of Certain Goods or Technology.--
       (1) In general.--Subject to section 207(a)(2)(C) of this 
     Act, a license shall be required for the export to North 
     Korea of any goods or technology subject to the Export 
     Administration Regulations (part 730 of title 15, Code of 
     Federal Regulations) without regard to whether the Secretary 
     of State has designated North Korea as a country the 
     government of which has provided support for acts of 
     international terrorism, as determined by the Secretary of 
     State under section 6(j) of the Export Administration Act of 
     1979 (50 U.S.C. App. 2045), as continued in effect under the 
     International Emergency Economic Powers Act.
       (2) Presumption of denial.--A license for the export to 
     North Korea of any goods or technology as described in 
     paragraph (1) shall be subject to a presumption of denial.
       (b) Transactions With Countries Supporting Acts of 
     International Terrorism.--The prohibitions and restrictions 
     described in section 40 of the Arms Export Control Act (22 
     U.S.C. 2780), and other provisions in that Act, shall also 
     apply to exporting or otherwise providing (by sale, lease or 
     loan, grant, or other means), directly or indirectly, any 
     munitions item to the Government of North Korea without 
     regard to whether or not North Korea is a country with 
     respect to which subsection (d) of such section (relating to 
     designation of state sponsors of terrorism) applies.
       (c) Transactions in Lethal Military Equipment.--
       (1) In general.--The President shall withhold assistance 
     under the Foreign Assistance Act of 1961 (22 U.S.C. 2151 et 
     seq.) to any country that provides lethal military equipment 
     to, or receives lethal military equipment from, the 
     Government of North Korea.
       (2) Applicability.--The prohibition under this subsection 
     with respect to a country shall terminate on the date that is 
     1 year after the date on which such country ceases to provide 
     lethal military equipment to the Government of North Korea.
       (3) Waiver.--The President may waive the prohibition under 
     this subsection with respect to a country if the President 
     determines that it is in the national interest of the United 
     States to do so.

     SEC. 204. PROCUREMENT SANCTIONS.

       (a) In General.--Except as provided in this section, the 
     United States Government may not procure, or enter into any 
     contract for the procurement of, any goods or services from 
     any designated person.
       (b) FAR.--The Federal Acquisition Regulation issued 
     pursuant to section 1303 of title 41, United States Code, 
     shall be revised to require a certification from each person 
     that is a prospective contractor that such person does not 
     engage in any of the conduct described in section 104(a). 
     Such revision shall apply with respect to contracts in an 
     amount greater than the simplified acquisition threshold (as 
     defined in section 134 of title 41, United States Code) for 
     which solicitations are issued on or after the date that is 
     90 days after the date of the enactment of this Act.
       (c) Termination of Contracts and Initiation of Suspension 
     and Debarment Proceeding.--
       (1) Termination of contracts.--Except as provided in 
     paragraph (2), the head of an executive agency shall 
     terminate a contract with a person who has provided a false 
     certification under subsection (b).
       (2) Waiver.--The head of an executive agency may waive the 
     requirement under paragraph (1) with respect to a person 
     based upon a written finding of urgent and compelling 
     circumstances significantly affecting the interests of the 
     United States. If the head of an executive agency waives the 
     requirement under paragraph (1) for a person, the head of the 
     agency shall submit to the appropriate congressional 
     committees, within 30 days after the waiver is made, a report 
     containing the rationale for the waiver and relevant 
     information supporting the waiver decision.
       (3) Initiation of suspension and debarment proceeding.--The 
     head of an executive agency shall initiate a suspension and 
     debarment proceeding against a person who has provided a 
     false certification under subsection (b). Upon determination 
     of suspension, debarment, or proposed debarment, the agency 
     shall ensure that such person is entered into the Government-
     wide database containing the list of all excluded parties 
     ineligible for Federal programs pursuant to Executive Order 
     12549 (31 U.S.C. 6101 note; relating to debarment and 
     suspension) and Executive Order 12689 (31 U.S.C. 6101 note; 
     relating to debarment and suspension).
       (d) Clarification Regarding Certain Products.--The remedies 
     specified in subsections (a) through (c) shall not apply with 
     respect to the procurement of eligible products, as defined 
     in section 308(4) of the Trade Agreements Act of 1979 (19 
     U.S.C. 2518(4)), of any foreign country or instrumentality 
     designated under section 301(b) of such Act (19 U.S.C. 
     2511(b)).
       (e) Rule of Construction.--Nothing in this subsection may 
     be construed to limit the use of other remedies available to 
     the head of an executive agency or any other official of the 
     Federal Government on the basis of a determination of a false 
     certification under subsection (b).
       (f) Executive Agency Defined.--In this section, the term 
     ``executive agency'' has the meaning given such term in 
     section 133 of title 41, United States Code.

     SEC. 205. ENHANCED INSPECTIONS AUTHORITIES.

       (a) Report Required.--Not later than 180 days after the 
     date of the enactment of this Act, and every 180 days 
     thereafter, the President, acting through the Secretary of 
     Homeland Security, shall submit to the appropriate 
     congressional committees, the Committee on Homeland Security 
     of the House of Representatives, and the Committee on 
     Homeland Security and Governmental Affairs of the Senate, a 
     report identifying foreign sea ports and airports whose 
     inspections of ships, aircraft, and conveyances originating 
     in North Korea, carrying North Korean property, or operated 
     by the Government of North Korea are deficient to effectively 
     prevent the facilitation of any of the activities described 
     in section 104(a).
       (b) Enhanced Security Targeting Requirements.--Not later 
     than 180 days after

[[Page 13268]]

     the identification of any sea port or airport pursuant to 
     subsection (a), the Secretary of Homeland Security shall, 
     utilizing the Automated Targeting System operated by the 
     National Targeting Center in U.S. Customs and Border 
     Protection, require enhanced screening procedures to 
     determine if physical inspections are warranted of any cargo 
     bound for or landed in the United States that has been 
     transported through such sea port or airport if there are 
     reasonable grounds to believe that such cargo contains goods 
     prohibited under this Act.
       (c) Seizure and Forfeiture.--A vessel, aircraft, or 
     conveyance used to facilitate any of the activities described 
     in section 104(a) that comes within the jurisdiction of the 
     United States may be seized and forfeited under chapter 46 of 
     title 18, United States Code, or under the Tariff Act of 
     1930.

     SEC. 206. TRAVEL SANCTIONS.

       (a) Aliens Ineligible for Visas, Admission, or Parole.--
       (1) Visas, admission, or parole.--An alien (or an alien who 
     is a corporate officer of a person (as defined in 
     subparagraph (B) or (C) of section 3(11)) who the Secretary 
     of State or the Secretary of Homeland Security (or a designee 
     of one of such Secretaries) knows, or has reasonable grounds 
     to believe, is described in subsection (a)(1) or (b)(1) of 
     section 104 is--
       (A) inadmissible to the United States;
       (B) ineligible to receive a visa or other documentation to 
     enter the United States; and
       (C) otherwise ineligible to be admitted or paroled into the 
     United States or to receive any other benefit under the 
     Immigration and Nationality Act (8 U.S.C. 1101 et seq.).
       (2) Current visas revoked.--
       (A) In general.--The issuing consular officer, the 
     Secretary of State, or the Secretary of Homeland Security (or 
     a designee of one of such Secretaries) shall revoke any visa 
     or other entry documentation issued to an alien who is 
     described in subsection (a)(1) or (b)(1) of section 104 
     regardless of when issued.
       (B) Effect of revocation.--A revocation under subparagraph 
     (A)--
       (i) shall take effect immediately; and
       (ii) shall automatically cancel any other valid visa or 
     entry documentation that is in the alien's possession.
       (b) Exception to Comply With United Nations Headquarters 
     Agreement.--Sanctions under subsection (a)(1)(B) shall not 
     apply to an alien if admitting the alien into the United 
     States is necessary to permit the United States to comply 
     with the Agreement regarding the Headquarters of the United 
     Nations, signed at Lake Success June 26, 1947, and entered 
     into force November 21, 1947, between the United Nations and 
     the United States, or other applicable international 
     obligations.

     SEC. 207. EXEMPTIONS, WAIVERS, AND REMOVALS OF DESIGNATION.

       (a) Exemptions.--
       (1) Mandatory exemptions.--The following activities shall 
     be exempt from sanctions under section 104:
       (A) Activities subject to the reporting requirements of 
     title V of the National Security Act of 1947 (50 U.S.C. 413 
     et seq.), or to any authorized intelligence activities of the 
     United States.
       (B) Any transaction necessary to comply with United States 
     obligations under the Agreement between the United Nations 
     and the United States of America regarding the Headquarters 
     of the United Nations, signed June 26, 1947, and entered into 
     force on November 21, 1947, or under the Vienna Convention on 
     Consular Relations, signed April 24, 1963, and entered into 
     force on March 19, 1967, or under other international 
     agreements.
       (2) Discretionary exemptions.--The following activities may 
     be exempt from sanctions under section 104 as determined by 
     the President:
       (A) Any financial transaction the exclusive purpose for 
     which is to provide humanitarian assistance to the people of 
     North Korea.
       (B) Any financial transaction the exclusive purpose for 
     which is to import food products into North Korea, if such 
     food items are not defined as luxury goods.
       (C) Any transaction the exclusive purpose for which is to 
     import agricultural products, medicine, or medical devices 
     into North Korea, provided that such supplies or equipment 
     are classified as designated ``EAR 99'' under the Export 
     Administration Regulations (part 730 of title 15, Code of 
     Federal Regulations) and not controlled under--
       (i) the Export Administration Act of 1979 (50 U.S.C. App. 
     2401 et seq.), as continued in effect under the International 
     Emergency Economic Powers Act (50 U.S.C. 1701 et seq.);
       (ii) the Arms Export Control Act (22 U.S.C. 2751 et seq.);
       (iii) part B of title VIII of the Nuclear Proliferation 
     Prevention Act of 1994 (22 U.S.C. 6301 et seq.); or
       (iv) the Chemical and Biological Weapons Control and 
     Warfare Elimination Act of 1991 (22 U.S.C. 5601 et seq.).
       (b) Waiver.--The President may waive, on a case-by-case 
     basis, the imposition of sanctions for a period of not more 
     than one year, and may renew that waiver for additional 
     periods of not more than one year, any sanction or other 
     measure under section 104, 204, 205, 206, or 303 if the 
     President submits to the appropriate congressional committees 
     a written determination that the waiver meets one or more of 
     the following requirements:
       (1) The waiver is important to the economic or national 
     security interests of the United States.
       (2) The waiver will further the enforcement of this Act or 
     is for an important law enforcement purpose.
       (3) The waiver is for an important humanitarian purpose, 
     including any of the purposes described in section 4 of the 
     North Korean Human Rights Act of 2004 (22 U.S.C. 7802).
       (c) Removals of Sanctions.--The President may prescribe 
     rules and regulations for the removal of sanctions on a 
     person that is designated under subsection (a) or (b) of 
     section 104 and the removal of designations of a person with 
     respect to such sanctions if the President determines that 
     the designated person has verifiably ceased its participation 
     in any of the conduct described in subsection (a) or (b) of 
     section 104, as the case may be, and has given assurances 
     that it will abide by the requirements of this Act.
       (d) Financial Services for Certain Activities.--The 
     President may promulgate regulations, rules, and policies as 
     may be necessary to facilitate the provision of financial 
     services by a foreign financial institution that is not 
     controlled by the Government of North Korea in support of the 
     activities subject to exemption under this section.

     SEC. 208. SENSE OF CONGRESS ON ENFORCEMENT OF SANCTIONS ON 
                   NORTH KOREA.

       (a) Findings.--Congress finds the following:
       (1) On March 6, 2014, pursuant to United Nations Security 
     Council Resolution 1874, a Panel of Experts issued a report 
     assessing the enforcement of existing sanctions on North 
     Korea. The Panel reported that North Korea continues to 
     ``trade in arms and related materiel in violation of the 
     resolutions'' and that ``there is no question that it is one 
     of the country's most profitable revenue sources''.
       (2) The Panel of Experts found that North Korea ``presents 
     a stiff challenge to Member States'' through ``multiple and 
     tiered circumvention techniques'' and ``is experienced in 
     actions it takes to evade sanctions''.
       (b) Sense of Congress.--It is the sense of Congress that 
     the United States should work to increase the capacity of 
     responsible nations to implement United Nations Security 
     Council Resolutions 1695, 1718, 1874, 2087, and 2094, 
     including to strengthen the capacity of responsible nations 
     to monitor and interdict shipments to and from North Korea 
     that contribute to prohibited activities under such 
     Resolutions.

                  TITLE III--PROMOTION OF HUMAN RIGHTS

     SEC. 301. INFORMATION TECHNOLOGY.

       Section 104 of the North Korean Human Rights Act of 2004 
     (22 U.S.C. 7814) is amended by inserting after subsection (c) 
     the following new subsection:
       ``(d) Information Technology Study.--Not later than 180 
     days after the date of the enactment of this subsection, the 
     President shall submit to the appropriate congressional 
     committees a classified report setting forth a detailed plan 
     for making unrestricted, unmonitored, and inexpensive 
     electronic mass communications available to the people of 
     North Korea.''.

     SEC. 302. REPORT ON NORTH KOREAN PRISON CAMPS.

       (a) In General.--The Secretary of State shall submit to the 
     appropriate congressional committees a report describing, 
     with respect to each political prison camp in North Korea to 
     the extent information is available--
       (1) the camp's estimated prisoner population;
       (2) the camp's geographical coordinates;
       (3) the reasons for confinement of the prisoners;
       (4) the camp's primary industries and products, and the end 
     users of any goods produced in such camp;
       (5) the natural persons and agencies responsible for 
     conditions in the camp;
       (6) the conditions under which prisoners are confined, with 
     respect to the adequacy of food, shelter, medical care, 
     working conditions, and reports of ill-treatment of 
     prisoners; and
       (7) imagery, to include satellite imagery of each such 
     camp, in a format that, if published, would not compromise 
     the sources and methods used by the intelligence agencies of 
     the United States to capture geospatial imagery.
       (b) Form.--The report required under subsection (a) may be 
     included in the first report required to be submitted to 
     Congress after the date of the enactment of this Act under 
     sections 116(d) and 502B(b) of the Foreign Assistance Act of 
     1961 (22 U.S.C. 2151n(d) and 2304(b)) (relating to the annual 
     human rights report).

     SEC. 303. REPORT ON PERSONS WHO ARE RESPONSIBLE FOR SERIOUS 
                   HUMAN RIGHTS ABUSES OR CENSORSHIP IN NORTH 
                   KOREA.

       (a) In General.--The Secretary of State shall submit to the 
     appropriate congressional committees a report that contains 
     an identification of each person the Secretary determines to 
     be responsible for serious human rights abuses or censorship 
     in North Korea and a description of such abuses or censorship 
     engaged in by such person.

[[Page 13269]]

       (b) Consideration.--In preparing the report required under 
     subsection (a), the Secretary of State shall give due 
     consideration to the findings of the United Nations 
     Commission of Inquiry on Human Rights in North Korea, and 
     shall make specific findings with respect to the 
     responsibility of Kim Jong Un, and of each natural person who 
     is a member of the National Defense Commission of North 
     Korea, or the Organization and Guidance Department of the 
     Workers' Party of Korea, for serious human rights abuses and 
     censorship.
       (c) Designation of Persons.--The President shall designate 
     under section 104(a) any person listed in the report required 
     under subsection (a) as responsible for serious human rights 
     abuses or censorship in North Korea.
       (d) Submission and Form.--
       (1) Submission.--The report required under subsection (a) 
     shall be submitted not later than 90 days after the date of 
     the enactment of this Act, and every 180 days thereafter for 
     a period not to exceed 3 years, shall be included in each 
     report required under sections 116(d) and 502B(b) of the 
     Foreign Assistance Act of 1961 (22 U.S.C. 2151n(d) and 
     2304(b)) (relating to the annual human rights report).
       (2) Form.--The report required under subsection (a) shall 
     be submitted in unclassified form, but may include a 
     classified annex. The Secretary of State shall also publish 
     the unclassified part of the report on the Department of 
     State's website.

                     TITLE IV--GENERAL AUTHORITIES

     SEC. 401. SUSPENSION OF SANCTIONS AND OTHER MEASURES.

       (a) In General.--Any sanction or other measure required by 
     title I, II, or III of this Act (or any amendment made by 
     title I, II, or III of this Act) may be suspended for up to 
     365 days upon certification by the President to the 
     appropriate congressional committees that the Government of 
     North Korea has--
       (1) verifiably ceased its counterfeiting of United States 
     currency, including the surrender or destruction of 
     specialized materials and equipment used for or particularly 
     suitable for counterfeiting;
       (2) taken significant steps toward financial transparency 
     to comply with generally accepted protocols to cease and 
     prevent the laundering of monetary instruments;
       (3) taken significant steps toward verification of its 
     compliance with United Nations Security Council Resolutions 
     1695, 1718, 1874, 2087, and 2094;
       (4) taken significant steps toward accounting for and 
     repatriating the citizens of other countries abducted or 
     unlawfully held captive by the Government of North Korea or 
     detained in violation of the 1953 Armistice Agreement;
       (5) accepted and begun to abide by internationally 
     recognized standards for the distribution and monitoring of 
     humanitarian aid;
       (6) provided credible assurances that it will not support 
     further acts of international terrorism;
       (7) taken significant and verified steps to improve living 
     conditions in its political prison camps; and
       (8) made significant progress in planning for unrestricted 
     family reunification meetings, including for those 
     individuals among the two million strong Korean-American 
     community who maintain family ties with relatives in North 
     Korea.
       (b) Renewal of Suspension.--The suspension described in 
     subsection (a) may be renewed for additional consecutive 
     periods of 180 days upon certification by the President to 
     the appropriate congressional committees that the Government 
     of North Korea has continued to comply with the conditions 
     described in subsection (a) during the previous year.

     SEC. 402. TERMINATION OF SANCTIONS AND OTHER MEASURES.

       Any sanction or other measure required by title I, II, or 
     III of this Act (or any amendment made by title I, II, or III 
     of this Act) shall terminate on the date on which the 
     President determines and certifies to the appropriate 
     congressional committees that the Government of North Korea 
     has met the requirements of section 401, and has also--
       (1) completely, verifiably, and irreversibly dismantled all 
     of its nuclear, chemical, biological, and radiological 
     weapons programs, including all programs for the development 
     of systems designed in whole or in part for the delivery of 
     such weapons;
       (2) released all political prisoners, including the 
     citizens of North Korea detained in North Korea's political 
     prison camps;
       (3) ceased its censorship of peaceful political activity;
       (4) taken significant steps toward the establishment of an 
     open, transparent, and representative society;
       (5) fully accounted for and repatriated all citizens of all 
     nations abducted or unlawfully held captive by the Government 
     of North Korea or detained in violation of the 1953 Armistice 
     Agreement; and
       (6) agreed with the Financial Action Task Force on a plan 
     of action to address deficiencies in its anti-money 
     laundering regime and begun to implement this plan of action.

     SEC. 403. REGULATIONS.

       (a) In General.--The President is authorized to promulgate 
     such rules and regulations as may be necessary to carry out 
     the provisions of this Act (which may include regulatory 
     exceptions), including under section 205 of the International 
     Emergency Economic Powers Act (50 U.S.C. 1704).
       (b) Rule of Construction.--Nothing in this Act or any 
     amendment made by this Act shall be construed to limit the 
     authority of the President pursuant to an applicable 
     Executive order or otherwise pursuant to the International 
     Emergency Economic Powers Act (50 U.S.C. 1701 et seq.).

     SEC. 404. EFFECTIVE DATE.

       Except as otherwise provided in this Act, this Act and the 
     amendments made by this Act shall take effect on the date of 
     the enactment of this Act.

     SEC. 405. OFFSET.

       Section 102(a) of the Enhanced Partnership with Pakistan 
     Act of 2009 (Public Law 111-73; 22 U.S.C. 8412(a)) is amended 
     by striking ``$1,500,000,000'' and inserting 
     ``$1,490,000,000''.

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


                             General Leave

  Mr. ROYCE. Mr. Speaker, I ask unanimous consent that all Members may 
have 5 legislative days to revise and extend their remarks and to 
include any extraneous materials in the Record.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from California?
  There was no objection.
  Mr. ROYCE. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, North Korea, which is one of the nuclear proliferators 
on this planet in having proliferated missiles to Iran and in having 
proliferated to Syria the construction some years ago of a site in 
order to create nuclear weapons, this particular regime remains today 
one of the most significant national security threats that we face. It 
is an enduring threat to us and our allies in northeast Asia. It is an 
enduring threat not just because of that proliferation but also because 
of the attitude of the regime there. Frankly, America's policy over the 
last 25 years, whether we are talking about a Republican administration 
or a Democrat administration, has been a bipartisan failure for that 
whole period of time.
  This year marks the 20th anniversary of the Clinton administration's 
agreed framework, the first in a long line of failed agreements in 
which North Korea holds out the promise of cooperation, only to game 
the negotiations for more time and more incentives and uses that 
opportunity to continue to expand its nuclear program.

                              {time}  1530

  Today, we are no closer to the goal of disarming those nukes than we 
were in 1994. The only difference is there is a whole lot more of them.
  Meanwhile, North Korea continues to make progress on its nuclear 
weapons program, conducting three tests in recent years. It has 
actively worked on intercontinental ballistic missile technology to 
deliver a three-stage ICBM.
  To underscore the threats that we face, let us not forget that, in 
2007, a North Korean-built nuclear reactor was destroyed in Syria along 
the banks of the Euphrates River.
  Mr. Speaker, we need a new approach, frankly, to North Korea, and it 
is time for Congress to lead. Recent events around the world underscore 
the foolishness of inaction. We need a clear framework for sanctions to 
deprive Kim Jong Un of his ability to build nuclear weapons and to 
repress and abuse the North Korean people. The way a regime treats its 
own people will tell you a lot in life about how they may end up 
treating their neighbors.
  The North Korea Sanctions Enforcement Act seeks to apply the same 
type of pressure that the Treasury Department used back in 2005 when it 
caught the regime counterfeiting hundred-dollar bills. Treasury, at 
that time, targeted the bank in Macao that was complicit in 
counterfeiting with North Korea. This action sent a ripple throughout 
the international financial system, and it seriously hindered North 
Korea's finances. This was one of the most effective steps in 20 years 
that we took against North Korea.
  I can tell you some of the results because we have talked with 
defectors afterwards about what they had seen in terms of the fact that 
productions had

[[Page 13270]]

closed. The regime could not pay their own generals, and that is not a 
good position for dictators to be in. Unfortunately, though, the 
sanctions were lifted by the State Department in the naive hope that 
the North Koreans would negotiate away their nuclear program.
  It is time to open our eyes. This legislation enables our government 
to go after Kim Jong Un's illicit activities, just like we went after 
organized crime in our own country, by interdicting shipments and 
disrupting the flow of money, stopping the hard currency, the very hard 
currency he utilizes for his weapons program.
  These sanctions target North Korea's money laundering, their 
counterfeiting, their narcotics trafficking operation. The only way we 
can stop North Korea is cutting off its access to this hard currency, 
to stop Kim Jong Un from being able to pay his generals or conduct 
research on nuclear weapons.
  Critically, the North Korea Sanctions Enforcement Act also includes 
the basis imposing sanctions based on North Korea's deplorable human 
rights abuses. By directly targeting individuals in positions of power, 
we will finally hold North Korea responsible for the torture, the 
gulags, the extrajudicial killings that were recently exposed by that 
high-level UN inquiry, one of the first of its kind.
  For far too long, the world has turned a blind eye to human rights 
abuses in North Korea. By supporting this bill, we will take a critical 
step toward stopping this type of abuse.
  This bipartisan piece of legislation, by the way, has over 140 
cosponsors. It has garnered the support of humanitarian groups around 
the world. And I note that humanitarian aid is in no way affected by 
this legislation.
  Again, humanitarian societies worldwide support this, and I urge my 
colleagues to support the bill.
  Mr. Speaker, I reserve the balance of my time.

                                         House of Representatives,


                                   Committee on the Judiciary,

                                    Washington, DC, July 23, 2014.
     Hon. Ed Royce,
     Chairman, Committee on Foreign Affairs,
     Rayburn House Office Building, Washington, DC.
       Dear Chairman Royce, I am writing with respect to H.R. 
     1771, the ``North Korea Sanctions Enforcement Act,'' which 
     the Committee on Foreign Affairs ordered reported favorably 
     on May 29, 2014. As a result of your having consulted with us 
     on provisions in H.R. 1771 that fall within the Rule X 
     jurisdiction of the Committee on the Judiciary, I agree to 
     discharge our Committee from further consideration of this 
     bill so that it may proceed expeditiously to the House floor 
     for consideration.
       The Judiciary Committee takes this action with our mutual 
     understanding that by foregoing consideration of H.R. 1771 at 
     this time, we do not waive any jurisdiction over subject 
     matter contained in this or similar legislation, and that our 
     Committee will be appropriately consulted and involved as 
     this bill or similar legislation moves forward so that we may 
     address any remaining issues in our jurisdiction. Our 
     Committee also reserves the right to seek appointment of an 
     appropriate number of conferees to any House-Senate 
     conference involving this or similar legislation, and asks 
     that you support any such request.
       I would appreciate a response to this letter confirming 
     this understanding with respect to H.R. 1771, and would ask 
     that a copy of our exchange of letters on this matter be 
     included in the Congressional Record during Floor 
     consideration of H.R. 1771.
           Sincerely,
                                                    Bob Goodlatte,
     Chairman.
                                  ____

                                         House of Representatives,


                                 Committee on Foreign Affairs,

                                    Washington, DC, July 25, 2014.
     Hon. Bob Goodlatte,
     Chairman, Committee on the Judiciary, Rayburn House Office 
         Building, Washington, DC.
       Dear Chairman Goodlatte: Thank you for consulting with the 
     Committee on Foreign Affairs on H.R. 1771, the North Korea 
     Sanctions Enforcement Act, and for agreeing to be discharged 
     from further consideration of that bill so that it may 
     proceed expeditiously to the House Floor. The suspension text 
     contains edits to portions of the bill within the Rule X 
     jurisdiction of your committee that were worked out in 
     consultation with your staff.
       I agree that your forgoing further action on this measure 
     does not in any way diminish or alter the jurisdiction of the 
     Committee on the Judiciary, or prejudice its jurisdictional 
     prerogatives on this bill or similar legislation in the 
     future. I would support your effort to seek appointment of an 
     appropriate number of conferees to any House-Senate 
     conference involving this legislation.
       I will seek to place our letters on H.R. 1771 into the 
     Congressional Record during floor consideration of the bill. 
     I appreciate your cooperation regarding this legislation and 
     look forward to continuing to work with your Committee as 
     this measure moves through the legislative process.
       Sincerely,
                                                  Edward R. Royce,
     Chairman.
                                  ____

                                         House of Representatives,


                                  Committee on Ways and Means,

                                    Washington, DC, July 24, 2014.
     Hon. Edward R. Royce,
     Chairman, Committee on Foreign Affairs, Rayburn House Office 
         Building, Washington, DC.
       Dear Chairman Royce: I am writing concerning H.R. 1771, the 
     ``North Korea Sanctions Enforcement Act of 2014,'' which was 
     favorably reported out of your Committee on May 29, 2014.
       Given that certain provisions in the bill are within the 
     jurisdiction of the Committee on Ways and Means, I appreciate 
     that you have addressed these provisions in response to the 
     Committee's concerns. As a result, in order to expedite floor 
     consideration of the bill, the Committee on Ways and Means 
     will forgo action on H.R. 1771. Further, the Committee will 
     not oppose the bill's consideration on the suspension 
     calendar, based on our understanding that you will work with 
     us as the legislative process moves forward to ensure that 
     our concerns continue to be addressed. This is also being 
     done with the understanding that it does not in any way 
     prejudice the Committee with respect to the appointment of 
     conferees or its jurisdictional prerogatives on this or 
     similar legislation.
       I would appreciate your response to this letter, confirming 
     this understanding with respect to H.R. 1771, and would ask 
     that a copy of our exchange of letters on this matter be 
     included in the Congressional Record during Floor 
     consideration.
           Sincerely,
                                                        Dave Camp,
     Chairman.
                                  ____

                                         House of Representatives,


                                 Committee on Foreign Affairs,

                                    Washington, DC, July 25, 2014.
     Hon. Dave Camp,
     Chairman, Committee on Ways and Means, Longworth House Office 
         Building, Washington, DC.
       Dear Chairman Camp: Thank you for consulting with the 
     Committee on Foreign Affairs on H.R. 1771, the North Korea 
     Sanctions Enforcement Act, and for agreeing to be discharged 
     from further consideration of that bill so that it may 
     proceed expeditiously to the House Floor. The suspension text 
     contains edits to portions of the bill within the rule X 
     jurisdiction of your committee that were worked out in 
     consultation with your staff.
       I agree that your forgoing further action on this measure 
     does not in any way diminish or alter the jurisdiction of the 
     Committee on Ways and Means, or prejudice its jurisdictional 
     prerogatives on this bill or similar legislation in the 
     future. I would support your effort to seek appointment of an 
     appropriate number of conferees to any House-Senate 
     conference involving this legislation.
       I will seek to place our letters on H.R. 1771 into the 
     Congressional Record during floor consideration of the bill. 
     I appreciate your cooperation regarding this legislation and 
     look forward to continuing to work with your Committee as 
     this measure moves through the legislative process.
           Sincerely,
                                                  Edward R. Royce,
     Chairman.
                                  ____

                                         House of Representatives,


                                 Committee on Foreign Affairs,

                                    Washington, DC, July 25, 2014.
     Hon. Jeb Hensarling,
     Chairman, Committee on Financial Services, Rayburn House 
         Office Building, Washington, DC.
       Dear Chairman Hensarling: Thank you for consulting with the 
     Committee on Foreign Affairs on H.R. 1771, the North Korea 
     Sanctions Enforcement Act, and for agreeing to be discharged 
     from further consideration of that bill so that it may 
     proceed expeditiously to the House Floor. The suspension text 
     contains edits to portions of the bill within the Rule X 
     jurisdiction of your committee that were worked out in 
     consultation with your staff.
       I agree that your forgoing further action on this measure 
     does not in any way diminish or alter the jurisdiction of the 
     Committee on Financial Services, or prejudice its 
     jurisdictional prerogatives on this bill or similar 
     legislation in the future. I would support your effort to 
     seek appointment of an appropriate number of conferees to any 
     House-Senate conference involving this legislation.
       I will seek to place our letters on H.R. 1771 into the 
     Congressional Record during floor consideration of the bill. 
     I appreciate your

[[Page 13271]]

     cooperation regarding this legislation and look forward to 
     continuing to work with your Committee as this measure moves 
     through the legislative process.
           Sincerely,
                                                  Edward R. Royce,
     Chairman.
                                  ____

                                         House of Representatives,


                              Committee on Financial Services,

                                    Washington, DC, July 28, 2014.
     Hon. Edward R. Royce,
     Chairman, House Committee on Foreign Affairs, Rayburn House 
         Office Building, Washington, DC.
       Dear Chairman Royce: On May 29, 2014, the Committee on 
     Foreign Affairs ordered H.R. 1771, the North Korea Sanctions 
     Enforcement Act of 2013, to be reported favorably to the 
     House with an amendment. As a result of your having consulted 
     with the Committee on Financial Services concerning 
     provisions of the bill that fall within our Rule X 
     jurisdiction, I agree to discharge our committee from further 
     consideration of the bill so that it may proceed 
     expeditiously to the House Floor.
       The Committee on Financial Services takes this action with 
     our mutual understanding that by foregoing consideration of 
     H.R. 1771, as amended, at this time, we do not waive any 
     jurisdiction over the subject matter contained in this or 
     similar legislation, and that our committee will be 
     appropriately consulted and involved as the bill or similar 
     legislation moves forward so that we may address any 
     remaining issues that fall within our Rule X jurisdiction. 
     Our committee also reserves the right to seek appointment of 
     an appropriate number of conferees to any House-Senate 
     conference involving this or similar legislation, and 
     requests your support for any such request.
       Finally, I appreciate your July 25 letter anticipating this 
     letter memorializing this understanding with respect to H.R. 
     1771, as amended. I would further appreciate your inclusion 
     of a copy of our exchange of letters on this matter be 
     included in your committee's report to accompany the 
     legislation and in the Congressional Record during floor 
     consideration thereof.
           Sincerely,
                                                   Jeb Hensarling,
     Chairman.
                                  ____

                                         House of Representatives,


                                 Committee on Foreign Affairs,

                                    Washington, DC, July 25, 2014.
     Hon. Darrell Issa,
     Chairman, Committee on Oversight and Government Reform, 
         Rayburn House Office Building, Washington, DC.
       Dear Chairman Issa: Thank you for consulting with the 
     Committee on Foreign Affairs on H.R. 1771, the North Korea 
     Sanctions Enforcement Act, and for agreeing to be discharged 
     from further consideration of that bill so that it may 
     proceed expeditiously to the House Floor. The suspension text 
     contains edits to portions of the bill within the Rule X 
     jurisdiction of your committee that were worked out in 
     consultation with your staff.
       I agree that your forgoing further action on this measure 
     does not in any way diminish or alter the jurisdiction of the 
     Committee on Oversight and Government Reform, or prejudice 
     its jurisdictional prerogatives on this bill or similar 
     legislation in the future. I would support your effort to 
     seek appointment of an appropriate number of conferees to any 
     House-Senate conference involving this legislation.
       I will seek to place our letters on H.R. 1771 into the 
     Congressional Record during floor consideration of the bill. 
     I appreciate your cooperation regarding this legislation and 
     look forward to continuing to work with your Committee as 
     this measure moves through the legislative process.
           Sincerely,
                                                  Edward R. Royce,
     Chairman.
                                  ____

         House of Representatives,


                 Committee on Oversight and Government Reform,

                                    Washington, DC, July 28, 2014.
     Hon. Edward R. Royce,
     Chairman, Committee on Foreign Affairs, House of 
         Representatives, Washington, DC.
       Dear Mr. Chairman: I am writing concerning H.R. 1771, the 
     ``North Korea Sanctions Enforcement Act of 2013.''
       H.R. 1771 contains provisions within the Committee on 
     Oversight and Government Reform's rule X jurisdiction. As a 
     result of your having consulted with the Committee and in 
     order to expedite this bill for floor consideration, the 
     Committee on Oversight and Government Reform will forego 
     action on the bill. This is being done on the basis of our 
     mutual understanding that doing so will in no way diminish or 
     alter the jurisdiction of the Committee on Oversight and 
     Government Reform with respect to the appointment of 
     conferees, or to any future jurisdictional claim over the 
     subject matters contained in the bill or similar legislation.
       I would appreciate your response to this letter confirming 
     this understanding, and would request that you include a copy 
     of this letter and your response in the Congressional Record 
     during the floor consideration of this bill. Thank you in 
     advance for your cooperation.
           Sincerely,
                                                     Darrell Issa,
     Chairman.
                                  ____

                                       House of Representatives,  


                               Committee on Foreign Affairs,  

                                   Ford House Office Building,

                                    Washington, DC, July 25, 2014.
     Hon. Michael McCaul,
     Chairman, Committee on Homeland Security, Washington, DC.
       Dear Chairman McCaul: Thank you for consulting with the 
     Committee on Foreign Affairs on H.R. 1771, the North Korea 
     Sanctions Enforcement Act, and for agreeing to forgo a 
     sequential referral request so that the bill may proceed 
     expeditiously to the Floor.
       I agree that your forgoing further action on this measure 
     does not in any way diminish or alter the jurisdiction of the 
     Committee on Homeland Security, or prejudice its 
     jurisdictional prerogatives on this bill or similar 
     legislation in the future.
       I will seek to place our letters on H.R. 1771 into our 
     Committee Report and into the Congressional Record during 
     floor consideration of the bill. I appreciate your 
     cooperation regarding this legislation and look forward to 
     continuing to work with your Committee as this measure moves 
     through the legislative process.
           Sincerely,
                                                  Edward R. Royce,
     Chairman.
                                  ____

                                         House of Representatives,


                               Committee on Homeland Security,

                                    Washington, DC, July 28, 2014.
     Hon. Ed Royce,
     Chairman, Committee on Foreign Affairs, Rayburn House Office 
         Building, Washington, DC.
       Dear Chairman Royce: I am writing concerning H.R. 1771, the 
     ``North Korea Sanctions Enforcement Act,'' which your 
     Committee ordered reported on May 29, 2014.
       As a result of your having consulted with the Committee on 
     Homeland Security on provisions in our jurisdiction and in an 
     effort to expedite the House's consideration of H.R. 1771, 
     the Committee on Homeland Security will not assert a 
     jurisdictional claim over this bill by seeking a sequential 
     referral. However, this is conditional upon our mutual 
     understanding and agreement that doing so will in no way 
     diminish or alter the jurisdiction of the Committee on 
     Homeland Security with respect to the appointment of 
     conferees or to any future jurisdictional claim over the 
     subject matter contained in this bill or similar legislation.
       I request that you include a copy of this letter and your 
     response in the Congressional Record during floor 
     consideration of this bill. Thank you for your attention to 
     this matter.
           Sincerely,
                                                Michael T. McCaul,
                                                         Chairman.

  Mr. CONNOLLY. Mr. Speaker, I rise today in the strongest support of 
H.R. 1771, the North Korea Sanctions Enforcement Act of 2014.
  I yield myself such time as I may consume.
  I also want to thank the distinguished chairman. He and I had a 
conversation several months ago where I encouraged that we put this on 
the schedule, the agenda, for a markup on the House Foreign Affairs 
Committee, and he did so with alacrity, and I really appreciate his 
consideration and leadership.
  This legislation, which I am pleased to have cosponsored, provides us 
with the opportunity to communicate that the House of Representatives 
is resolved to hold the Orwellian North Korean regime accountable for 
unspeakable brutality against its own people and the erratic and 
dangerous manner in which it conducts itself on the world stage.
  The bill imposes the first comprehensive sanctions on the North Korea 
regime, and those in other countries, who abet its arms smuggling, 
weapons of mass destruction and ballistic missile development, human 
rights abuses, and terrorism support.
  It imposes asset freezes and seizures and visa denials on persons who 
materially contribute to North Korea's WMD missile development and 
proliferation, as well as its human rights abuses and support for 
terrorism.
  H.R. 1771 requires the Treasury Department to determine if North 
Korea is engaged in money laundering, and, if so, it blocks any entity 
from access to the entire United States financial system if it conducts 
direct or indirect transactions with North Korea's banks.

[[Page 13272]]

  It also requires a public report identifying North Korean human 
rights violators and political prison camps. It calls for a feasibility 
study of providing North Korean nationals with Internet communication 
devices that can overcome the incredible censorship in that country.
  Mr. Speaker, these sanctions are warranted. North Korea is a reckless 
international actor that has amassed a litany of violations and abuses 
of international law that one would think belong in a fictional novel. 
It continues to develop nuclear weapons programs in defiance of the 
Security Council and worldwide condemnation.
  North Korea supports the development of Iranian missile technology 
and nuclear capabilities. Hamas and Hezbollah, both designated foreign 
terrorist organizations by the United States Government, receive 
missile technology and training from the North Korea regime that they 
have used to attack Israel, an ally of the United States.
  The Security Council at the United Nations' resolutions deterring 
missile tests and launches are routinely flouted. It is clear that a 
pattern of behavior has developed in North Korea that should be 
concerning to all in the international community, not just this body.
  The U.S. will not and cannot allow an authoritarian regime to operate 
with impunity and threaten our national security and that of our 
allies.
  Of course, the United States and the international community should 
not only address the aggression North Korea has projected outward. The 
atrocities committed within the borders of North Korea are, of course, 
of equal concern and deserve similar condemnation.
  The status of human rights seems to have regressed under Kim Jong Un, 
if that is at all possible. A recent United Nations report recounts in 
horrifying detail the ``offenses'' which land individuals in labor 
camps, including the misspelling of Kim Jong Il. Deplorable conditions 
persist in the nation's system of gulags that reports say contain as 
many as 200,000 prisoners.
  People seeking refuge from the oppressive regime must disregard 
public executions used to intimidate the populace and brave a ``shoot 
to kill'' set of orders levied against citizens who are simply 
attempting to make a living somewhere else. Family reunifications 
between South Korean families and their loved ones on the other side of 
the DMZ remain limited to fleeting reunions.
  I really want to thank Chairman Royce and our committee staff on both 
sides for working with us on an amendment that makes the suspension of 
sanctions in this legislation conditional on North Korea making 
significant progress in planning for unrestricted family reunification 
meetings, including for those individuals among the 2 million strong 
Korean American community who still have relatives in North Korea.
  Pyongyang must pay, and the lives of North Koreans must be improved.
  I applaud this legislation for levying extensive sanctions against 
bad actors in the North Korean saga while recognizing the urgency of 
humanitarian, medical, and food assistance for North Korea's citizens. 
Rest assured that no such reprieve is offered by the regime in 
Pyongyang.
  Again, I commend my colleagues, the chairman, and the ranking member 
of our committee for finding, once again, common ground on the North 
Korea sanctions issue and for taking decisive action against this 
despotic regime.
  Mr. Speaker, we have no further speakers on this side.
  I urge passage of this legislation. I think it can send a very 
important message to our allies and to our foes and to, especially, the 
North Korea regime itself. I think the timing is right.
  Mr. Speaker, I yield back the balance of my time.
  Mr. ROYCE. Mr. Speaker, for far too long the world has ignored the 
significant human rights abuses that occur almost every single day in 
North Korea. Increasingly, as people escape, we begin to get some sense 
of what life is like for the hundreds of thousands that live in these 
concentration camps.
  By turning a blind eye to what is going on in North Korea, we, and 
the rest of the world, risk missing an opportunity to hold the Kim 
regime responsible for its terrible crimes against humanity. This 
legislation is a chance to hold them responsible for those crimes 
against their own people. We have an opportunity here to cut off the 
hard currency that goes right to the leadership in this regime. They 
depend on that hard currency.
  Earlier this year, the U.N. Commission of Inquiry laid out the most 
damning case against North Korea. Internationally, communities were 
shocked by the revelations in this Commission of Inquiry.
  As chairman of the Foreign Affairs Committee, I have met with a 
number of North Korean defectors and refugees over the years. I have 
heard their stories. We have had some of them testify here in the House 
of Representatives. I have seen North Korea with my own eyes. I have 
seen the malnutrition engineered by the regime, while the money goes 
into their nuclear arms program and their military buildup.
  Listen. The message from the defectors and the survivors are 
remarkably similar. What they tell us is: please help us. By supporting 
H.R. 1771, we send an unmistakable message that the United States will 
no longer tolerate a regime that tortures and kills its own people. We 
will not tolerate, either, nuclear weapons and unchecked proliferation 
being developed with the hard currency that this regime gets its hands 
on by violating international law and being involved in the type of 
smuggling and illegal activities that they are involved in.
  North Korea is, undoubtedly, one of the most significant security 
threats that we here face and our allies face, and I urge my colleagues 
to support this legislation.
  Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from California (Mr. Royce) that the House suspend the rules 
and pass the bill, H.R. 1771, as amended.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

                          ____________________