S 1591 — Otto Warmbier Banking Restrictions Involving North Korea Act of 2017

SEC.<DELETED>SEC.

FINDINGS.FINDINGS.</DELETED> <DELETED> Congress finds the following:</DELETED> <DELETED> (1) Since 2006, the United Nations Security Council has approved 5 resolutions imposing sanctions against North Korea under chapter VII of the United Nations Charter, which--</DELETED> <DELETED> (A) prohibit the use, development, and proliferation of weapons of mass destruction by the Government of North Korea;</DELETED> <DELETED> (B) prohibit the transfer of arms and related materiel to or by the Government of North Korea;</DELETED> <DELETED> (C) prohibit the transfer of luxury goods to North Korea;</DELETED> <DELETED> (D) restrict access by the Government of North Korea to the financial system and require due diligence on the part of financial institutions to prevent the financing of proliferation involving the Government of North Korea;</DELETED> <DELETED> (E) restrict North Korean shipping, including the reflagging of ships owned or controlled by the Government of North Korea;</DELETED> <DELETED> (F) limit the sale by the Government of North Korea of precious metals, iron, coal, vanadium, and rare earth minerals;

Congressand</DELETED> finds<DELETED> (G) prohibit the following:transfer to North Korea of rocket, aviation, or jet fuel.</DELETED> <DELETED> (2) The Government of North Korea has threatened to carry out nuclear attacks against the United States and South Korea and has sent clandestine agents to kidnap or murder the citizens of foreign countries and murder dissidents in exile.</DELETED> <DELETED> (3) The Federal Bureau of Investigation has determined that the Government of North Korea was responsible for cyberattacks against the United States and South Korea.</DELETED> <DELETED> (4) In February 2016, the Director of National Intelligence reported that the Government of North Korea is ``committed to developing a long-range, nuclear-armed missile that is capable of posing a direct threat to the United States'' and some arms control experts have estimated that the Government of North Korea may acquire this capability by 2020.</DELETED> <DELETED> (5) The Government of North Korea tested its 5th and largest nuclear device on September 9, 2016.</DELETED> <DELETED> (6) The Government of North Korea has increased the pace of its missile testing, including the test of a submarine-launched ballistic missile, potentially furthering the development of capability to attack the United States with a nuclear weapon.</DELETED> <DELETED> (7) Financial transactions and investments that provide financial resources to the Government of North Korea, and that fail to incorporate adequate safeguards against the misuse of those financial resources, pose an undue risk of contributing to--</DELETED> <DELETED> (A) weapons of mass destruction programs of that government;

(1)and</DELETED> Since<DELETED> 2006,(B) theprohibited Unitedimports Nationsor Securityexports Councilof hasarms approvedand 5related resolutionsmateriel, imposingservices, sanctionsor againsttechnology Northby Koreathat undergovernment.</DELETED> chapter<DELETED> VII(8) The strict enforcement of sanctions is essential to the Unitedefforts Nationsby Charter,the which--international (A)community prohibitto achieve the use,peaceful, development,complete, verifiable, and proliferationirreversible dismantlement of weapons of mass destruction byprograms of the Government of North Korea;Korea.</DELETED> <DELETED>SEC.

(B) prohibit the transfer of arms and related materiel to or by the Government of North Korea;

(C) prohibit the transfer of luxury goods to North Korea;

(D) restrict access by the Government of North Korea to the financial system and require due diligence on the part of financial institutions to prevent the financing of proliferation involving the Government of North Korea;

(E) restrict North Korean shipping, including the reflagging of ships owned or controlled by the Government of North Korea;

(F) limit the sale by the Government of North Korea of precious metals, iron, coal, vanadium, and rare earth minerals;

and (G) prohibit the transfer to North Korea of rocket, aviation, or jet fuel.

(2) The Government of North Korea has threatened to carry out nuclear attacks against the United States and South Korea and has sent clandestine agents to kidnap or murder the citizens of foreign countries and murder dissidents in exile.

(3) The Federal Bureau of Investigation has determined that the Government of North Korea was responsible for cyberattacks against the United States and South Korea.

(4) In February 2016, the Director of National Intelligence reported that the Government of North Korea is ``committed to developing a long-range, nuclear-armed missile that is capable of posing a direct threat to the United States'' and some arms control experts have estimated that the Government of North Korea may acquire this capability by 2020.

(5) The Government of North Korea tested its 5th and largest nuclear device on September 9, 2016.

(6) The Government of North Korea has increased the pace of its missile testing, including the test of a submarine-launched ballistic missile, potentially furthering the development of capability to attack the United States with a nuclear weapon.

(7) Financial transactions and investments that provide financial resources to the Government of North Korea, and that fail to incorporate adequate safeguards against the misuse of those financial resources, pose an undue risk of contributing to-- (A) weapons of mass destruction programs of that government;

and (B) prohibited imports or exports of arms and related materiel, services, or technology by that government.

(8) The strict enforcement of sanctions is essential to the efforts by the international community to achieve the peaceful, complete, verifiable, and irreversible dismantlement of weapons of mass destruction programs of the Government of North Korea.

SEC.

DEFINITIONS.DEFINITIONS.</DELETED> <DELETED> In this Act:</DELETED> <DELETED> (1) Applicable executive order;

In this Act:

(1) Applicable executive order;

9202).9202).</DELETED> <DELETED> (2) Appropriate congressional committees.--The term ``appropriate congressional committees'' means--</DELETED> <DELETED> (A) the Committee on Banking, Housing, and Urban Affairs and the Committee on Foreign Relations of the Senate;

(2)and</DELETED> Appropriate<DELETED> congressional(B) committees.--Thethe termCommittee ``appropriateon congressionalFinancial committees''Services means--and (A) the Committee on Banking,Foreign Housing,Affairs andof Urbanthe AffairsHouse andof Representatives.</DELETED> <DELETED> (3) Knowingly.--The term ``knowingly'', with respect to conduct, a circumstance, or a result, means that a person has actual knowledge, or should have known, of the Committeeconduct, onthe Foreigncircumstance, Relationsor the result.</DELETED> <DELETED> (4) North korean covered property.--</DELETED> <DELETED> (A) In general.--The term ``North Korean covered property'' includes any goods, services, or technology--</DELETED> <DELETED> (i) that are in North Korea;</DELETED> <DELETED> (ii) that are made with significant amounts of North Korean labor, materials, goods, or technology;</DELETED> <DELETED> (iii) in which the Senate;Government of North Korea or a North Korean financial institution has a significant interest or exercises significant control;

andor</DELETED> <DELETED> (iv) in which a designated person has a significant interest or exercises significant control.</DELETED> <DELETED> (B) Designated person.--In this paragraph, the Committeeterm ondesignated Financialperson Servicesmeans anda theperson Committeewho onis Foreigndesignated Affairsunder--</DELETED> of<DELETED> the(i) Housean ofapplicable Representatives.Executive order;</DELETED> <DELETED> (ii) an applicable United Nations Security Council resolution;

(3)or</DELETED> Knowingly.--The<DELETED> term(iii) ``knowingly'',section with104 respectof tothe conduct,North aKorea circumstance,Sanctions orand aPolicy result,Enhancement meansAct that a person has actual knowledge, or should have known, of the(22 conduct,U.S.C. the circumstance, or the result.

(4)9204).</DELETED> <DELETED> (5) North korean coveredfinancial property.--institution.--The (A) In general.--The term ``North Korean coveredfinancial property''institution'' includesincludes--</DELETED> any<DELETED> goods,(A) services,any orNorth technology--Korean (i)financial thatinstitution, areas defined in section 3 of the North Korea;Korea Sanctions and Policy Enhancement Act of 2016 (22 U.S.C.

(ii)9202);</DELETED> <DELETED> (B) any financial agency, as defined in section 5312 of title 31, United States Code, that areis madeowned withor significantcontrolled amountsby the Government of North KoreanKorea;</DELETED> labor,<DELETED> materials,(C) goods,any money transmitting business, as defined in section 5330(d) of title 31, United States Code, that is owned or technology;controlled by the Government of North Korea;

(iii)and</DELETED> in<DELETED> which(D) any financial institution that is a joint venture between any person and the Government of North KoreaKorea.</DELETED> or<DELETED> a(6) NorthSecretary.--Unless Koreanotherwise specified, the term ``Secretary'' means the Secretary of the Treasury.</DELETED> <DELETED> (7) United states financial institution.--The term ``United States financial institution'' means a financial institution hasthat--</DELETED> <DELETED> (A) is a significantUnited interestStates orperson, exercisesregardless significantof control;where the person operates;

or</DELETED> <DELETED> (B) operates or (iv)does business in whichthe aUnited designatedStates, personincluding hasby conducting wire transfers through correspondent banks in the United States.</DELETED> <DELETED> (8) United states person.--The term ``United States person'' means--</DELETED> <DELETED> (A) a significantcitizen interestor resident of the United States or exercisesa significantnational control.of the United States (as defined in section 101(a) of the Immigration and Nationality Act (8 U.S.C.

(B) Designated person.--In this paragraph, the term designated person means a person who is designated under-- (i) an applicable Executive order;

(ii) an applicable United Nations Security Council resolution;

or (iii) section 104 of the North Korea Sanctions and Policy Enhancement Act of 2016 (22 U.S.C.

9204).

(5) North korean financial institution.--The term ``North Korean financial institution'' includes-- (A) any North Korean financial institution, as defined in section 3 of the North Korea Sanctions and Policy Enhancement Act of 2016 (22 U.S.C.

9202);

(B) any financial agency, as defined in section of title 31, United States Code, that is owned or controlled by the Government of North Korea;

(C) any money transmitting business, as defined in section 5330(d) of title 31, United States Code, that is owned or controlled by the Government of North Korea;

and (D) any financial institution that is a joint venture between any person and the Government of North Korea.

(6) Secretary.--Unless otherwise specified, the term ``Secretary'' means the Secretary of the Treasury.

(7) United states financial institution.--The term ``United States financial institution'' means a financial institution that-- (A) is a United States person, regardless of where the person operates;

or (B) operates or does business in the United States, including by conducting wire transfers through correspondent banks in the United States.

(8) United states person.--The term ``United States person'' means-- (A) a citizen or resident of the United States or a national of the United States (as defined in section 101(a) of the Immigration and Nationality Act (8 U.S.C.

andand</DELETED> <DELETED> (B) an entity that is organized under the laws of the United States or any jurisdiction within the United States, including a foreign subsidiary of such an entity.entity.</DELETED> <DELETED>TITLE I--FINANCIAL REQUIREMENTS AND SANCTIONS RELATING TO TRANSACTIONS INVOLVING NORTH KOREA</DELETED> <DELETED>SEC.

TITLE I--FINANCIAL REQUIREMENTS AND SANCTIONS RELATING TO TRANSACTIONS INVOLVING NORTH KOREA SEC.

SANCTIONS WITH RESPECT TO FINANCIAL INSTITUTIONS PROVIDING SUPPORT TO THE GOVERNMENT OF NORTH KOREA.KOREA.</DELETED> <DELETED> (a) Report on Noncompliant Financial Institutions.-- </DELETED> <DELETED> (1) In general.--Not later than 60 days after the date of the enactment of this Act, and every 180 days thereafter, the President shall submit to the appropriate congressional committees and publish in the Federal Register a report that contains a list of any financial institutions that the President has identified as having engaged in, during the one-year period preceding the submission of the report, the following conduct:</DELETED> <DELETED> (A) Dealing in North Korean covered property.</DELETED> <DELETED> (B) Providing correspondent or interbank services to one or more North Korean financial institutions.</DELETED> <DELETED> (C) Failing to apply enhanced due diligence to prevent North Korean financial institutions from gaining access to correspondent or interbank services in the United States or provided by United States persons.</DELETED> <DELETED> (D) Knowingly operating or participating with or on behalf of an offshore United States dollar clearing system that conducts transactions involving the Government of North Korea or North Korean covered property.</DELETED> <DELETED> (E) Conducting or facilitating one or more significant transactions in North Korean covered property involving covered goods (as that term is defined in section 1027.100 of title 31, Code of Federal Regulations, or any successor regulation) or the currency of a country other than the country in which the person is operating at the time of the transaction.</DELETED> <DELETED> (2) Form of report.--Each report required under paragraph (1) shall be submitted in unclassified form but may contain a classified annex.</DELETED> <DELETED> (b) Imposition of Sanctions.--</DELETED> <DELETED> (1) In general.--If the President determines that a financial institution identified under subsection (a) has knowingly engaged in conduct described in that subsection, the President shall apply the following sanctions with respect to that financial institution:</DELETED> <DELETED> (A) Prohibit the designation of the financial institution, or the continuation of any prior designation of the financial institution, as a primary dealer in United States Government debt instruments.</DELETED> <DELETED> (B) Prohibit the financial institution from serving as agent of the United States Government or as a repository for funds of the United States Government.</DELETED> <DELETED> (C) One or more of the following:</DELETED> <DELETED> (i) Prohibit the opening, and prohibit or impose strict conditions on the maintaining, in the United States of any correspondent account or payable-through account by the financial institution if the financial institution is a foreign financial institution.</DELETED> <DELETED> (ii) Prohibit any transactions in foreign exchange that are subject to the jurisdiction of the United States and in which the financial institution has any interest.</DELETED> <DELETED> (iii) In accordance with the International Emergency Economic Powers Act (50 U.S.C.

(a)1701 Reportet onseq.), Noncompliantblock Financialand Institutions.--prohibit (1)all Intransactions general.--Notin laterall thanproperty 60and daysinterests afterin theproperty date of the enactmentfinancial ofinstitution thisif Act,such property and everyinterests 180in daysproperty thereafter,are in the PresidentUnited shallStates, submitcome towithin the appropriateUnited congressionalStates, committeesor andare publishor income within the Federalpossession Registeror control of a reportUnited thatStates containsperson.</DELETED> <DELETED> (2) Civil penalties.--If the President determines that a listfinancial ofinstitution anyidentified under subsection (a) that is a United States financial institutionsinstitution has knowingly engaged in conduct described in that subsection--</DELETED> <DELETED> (A) if the Presidentfinancial institution has identifiedtaken asreasonable havingsteps engagedto in,prevent duringa recurrence of conduct described in that subsection and is cooperating fully with the one-efforts yearof periodthe precedingPresident to enforce the submissionprovisions of this Act--</DELETED> <DELETED> (i) unless the report,financial institution is described in clause (ii), the followingPresident conduct:shall impose a civil penalty not to exceed $100,000 for each reportable act described in subparagraphs (A) through (E) of subsection (a)(1) that is knowingly conducted;

(A)or</DELETED> Dealing<DELETED> in(ii) Northif Koreanthe coveredfinancial property.institution has not previously been reported for similar conduct under subsection (a), the President shall issue a cautionary letter to that financial institution;

or</DELETED> <DELETED> (B) Providingif correspondentthe orfinancial interbankinstitution servicesis not a financial institution described in subparagraph (A), the President shall impose a civil penalty not to oneexceed or$250,000 morefor Northeach Koreanreportable financialact institutions.described in subparagraphs (A) through (E) of subsection (a)(1) that is knowingly conducted.</DELETED> <DELETED> (c) Suspension for Law Enforcement Purposes.--The President may suspend the submission of the reports described in subsection (a) and the application of sanctions and penalties described in subsection (b) for a one-year period if--</DELETED> <DELETED> (1) such reporting and application of sanctions and penalties could compromise an ongoing law enforcement investigation or prosecution;

(C)or</DELETED> Failing<DELETED> to(2) applya enhancedcriminal dueprosecution diligenceis topending, preventor Northa Koreancriminal financialor institutionscivil fromfine gainingor accesspenalty tohas correspondentbeen imposed or interbankconditionally servicesdeferred, infor the Unitedconduct Statesreported pursuant to subsection (a).</DELETED> <DELETED> (d) Suspension and Termination of Sanctions and Penalties.--</DELETED> <DELETED> (1) Suspension.--The President may suspend the application of any sanctions or providedpenalties byunder subsection (b) for a period of not more than one year if the President certifies to the appropriate congressional committees that the Government of North Korea is taking steps toward--</DELETED> <DELETED> (A) the verification of its compliance with applicable United StatesNations persons.Security Council Resolutions;

(D)and</DELETED> Knowingly<DELETED> operating(B) orfully participatingaccounting withfor orand onrepatriating behalfUnited ofStates ancitizens offshoreand permanent residents (including deceased United States dollarcitizens clearingand systempermanent thatresidents)--</DELETED> conducts<DELETED> transactions(i) involvingabducted theor Governmentunlawfully ofheld Northcaptive Koreaby orthe NorthGovernment Koreanof coveredNorth property.Korea;

(E)or</DELETED> Conducting<DELETED> or(ii) facilitatingdetained onein orviolation moreof significantthe transactionsAgreement Concerning a Military Armistice in NorthKorea, Koreansigned coveredat propertyPanmunjom involvingJuly covered27, goods1953 (as(commonly thatreferred termto isas definedthe ``Korean War Armistice Agreement'').</DELETED> <DELETED> (2) Renewal of suspension.--The President may renew a suspension described in sectionparagraph 1027.100(1) for additional periods of titlenot 31,more Codethan 180 days if the President certifies to the appropriate congressional committees that the Government of FederalNorth Regulations,Korea orcontinues anyto successortake regulation)steps oras described in paragraph (1).</DELETED> <DELETED> (3) Termination of sanctions.--Subject to subsection (f), the currencyPresident may terminate the application of aany countrysanctions otheror thanpenalties under subsection (b) if the countryPresident incertifies whichthat the personGovernment isof operatingNorth atKorea has made significant progress towards--</DELETED> <DELETED> (A) completely, verifiably, and irreversibly dismantling all of its nuclear, chemical, biological, and radiological weapons programs, including all programs for the timedevelopment of systems designed in whole or in part for the transaction.delivery of such weapons;

(2)and</DELETED> Form<DELETED> of(B) report.--Eachfully reportaccounting requiredfor underand paragraphrepatriating (1)United shallStates becitizens submittedand inpermanent unclassifiedresidents form(including butdeceased mayUnited containStates acitizens classifiedand annex.permanent residents)--</DELETED> <DELETED> (i) abducted or unlawfully held captive by the Government of North Korea;

(b)or</DELETED> Imposition<DELETED> (ii) detained in violation of Sanctions.--the (1)Agreement InConcerning general.--Ifa Military Armistice in Korea, signed at Panmunjom July 27, 1953 (commonly referred to as the ``Korean War Armistice Agreement'').</DELETED> <DELETED> (e) Waiver.--Subject to subsection (f), the President determinesmay thatwaive the application of sanctions or penalties under subsection (b) with respect to a financial institution identifiedif underthe subsectionPresident (a)determines hasthat knowinglythe engagedwaiver is in conductthe national security interest of the United States.</DELETED> <DELETED> (f) Congressional Review of Proposed Actions To Waive or Terminate Sanctions.--</DELETED> <DELETED> (1) Submission to congress of proposed action.-- </DELETED> <DELETED> (A) In general.--Notwithstanding any other provision of law, before taking any action described in thatsubparagraph subsection,(B), the President shall applysubmit to the followingappropriate sanctionscongressional withcommittees respectand toleadership a report that financialdescribes institution:the proposed action and the reasons for that action.</DELETED> <DELETED> (B) Actions described.--An action described in this subparagraph is--</DELETED> <DELETED> (i) an action to suspend, renew a suspension, or terminate under subsection (d) the application of sanctions or penalties under subsection (b);

(A)or</DELETED> Prohibit<DELETED> (ii) with respect to sanctions or penalties under subsection (b) imposed by the designationPresident ofwith respect to a person, an action to waive under subsection (e) the financialapplication institution,of those sanctions or thepenalties continuationwith respect to that person.</DELETED> <DELETED> (C) Description of anytype priorof designationaction.--Each report submitted under subparagraph (A) with respect to an action described in subparagraph (B) shall include a description of whether the financialaction--</DELETED> institution,<DELETED> as(i) ais primarynot dealerintended into significantly alter United States Governmentforeign debtpolicy instruments.with regard to North Korea;

(B)or</DELETED> Prohibit<DELETED> the(ii) financialis institutionintended fromto servingsignificantly asalter agentUnited States foreign policy with regard to North Korea.</DELETED> <DELETED> (D) Inclusion of theadditional matter.-- </DELETED> <DELETED> (i) In general.--Each report submitted under subparagraph (A) that relates to an action that is intended to significantly alter United States Governmentforeign orpolicy aswith regard to North Korea shall include a repositorydescription forof-- funds</DELETED> of<DELETED> (I) the significant alteration to United States Government.foreign policy with regard to North Korea;</DELETED> <DELETED> (II) the anticipated effect of the action on the national security interests of the United States;

(C)and</DELETED> One<DELETED> (III) the policy objectives for which the sanctions affected by the action were initially imposed.</DELETED> <DELETED> (ii) Requests from banking and financial services committees.--The Committee on Banking, Housing, and Urban Affairs of the Senate or morethe Committee on Financial Services of the following:House of Representatives may request the submission to the Committee of the matter described in subclauses (II) and (III) of clause (i) with respect to a report submitted under subparagraph (A) that relates to an action that is not intended to significantly alter United States foreign policy with regard to North Korea.</DELETED> <DELETED> (2) Period for review by congress.--</DELETED> <DELETED> (A) In general.--During the period of 30 calendar days beginning on the date on which the President submits a report under paragraph (1)(A)-- </DELETED> <DELETED> (i) in the case of a report that relates to an action that is not intended to significantly alter United States foreign policy with regard to North Korea, the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives should, as appropriate, hold hearings and briefings and otherwise obtain information in order to fully review the report;

(i)and</DELETED> Prohibit<DELETED> (ii) in the opening,case of a report that relates to an action that is intended to significantly alter United States foreign policy with regard to North Korea, the Committee on Foreign Relations of the Senate and prohibitthe Committee on Foreign Affairs of the House of Representatives should, as appropriate, hold hearings and briefings and otherwise obtain information in order to fully review the report.</DELETED> <DELETED> (B) Exception.--The period for congressional review under subparagraph (A) of a report required to be submitted under paragraph (1)(A) shall be 60 calendar days if the report is submitted on or imposeafter strictJuly conditions10 and on or before September 7 in any calendar year.</DELETED> <DELETED> (C) Limitation on actions during initial congressional review period.--Notwithstanding any other provision of law, during the maintaining,period for congressional review provided for under subparagraph (A) of a report submitted under paragraph (1)(A) proposing an action described in paragraph (1)(B), including any additional period for such review as applicable under the Unitedexception Statesprovided in subparagraph (B), the President may not take that action unless a joint resolution of approval with respect to that action is enacted in accordance with paragraph (3).</DELETED> <DELETED> (D) Limitation on actions during presidential consideration of a joint resolution of disapproval.--Notwithstanding any correspondentother accountprovision orof payable-throughlaw, accountif bya joint resolution of disapproval relating to a report submitted under paragraph (1)(A) proposing an action described in paragraph (1)(B) passes both Houses of Congress in accordance with paragraph (3), the financialPresident institutionmay not take that action for a period of 12 calendar days after the date of passage of the joint resolution of disapproval.</DELETED> <DELETED> (E) Limitation on actions during congressional reconsideration of a joint resolution of disapproval.--Notwithstanding any other provision of law, if a joint resolution of disapproval relating to a report submitted under paragraph (1)(A) proposing an action described in paragraph (1)(B) passes both Houses of Congress in accordance with paragraph (3), and the financialPresident institutionvetoes the joint resolution, the President may not take that action for a period of 10 calendar days after the date of the President's veto.</DELETED> <DELETED> (F) Effect of enactment of a joint resolution of disapproval.--Notwithstanding any other provision of law, if a joint resolution of disapproval relating to a report submitted under paragraph (1)(A) proposing an action described in paragraph (1)(B) is enacted in accordance with paragraph (3), the President may not take that action.</DELETED> <DELETED> (3) Joint resolutions of disapproval or approval.--</DELETED> <DELETED> (A) Joint resolutions of disapproval or approval defined.--In this paragraph:</DELETED> <DELETED> (i) Joint resolution of approval.--The term ``joint resolution of approval'' means only a foreignjoint financialresolution institution.of either House of Congress--</DELETED> <DELETED> (I) the title of which is as follows:

(ii) Prohibit any transactions in foreign exchange that are subject to the jurisdiction of the United States and in which the financial institution has any interest.

(iii) In accordance with the International Emergency Economic Powers Act (50 U.S.C.

1701 et seq.), block and prohibit all transactions in all property and interests in property of the financial institution if such property and interests in property are in the United States, come within the United States, or are or come within the possession or control of a United States person.

(2) Civil penalties.--If the President determines that a financial institution identified under subsection (a) that is a United States financial institution has knowingly engaged in conduct described in that subsection-- (A) if the financial institution has taken reasonable steps to prevent a recurrence of conduct described in that subsection and is cooperating fully with the efforts of the President to enforce the provisions of this Act-- (i) unless the financial institution is described in clause (ii), the President shall impose a civil penalty not to exceed $100,000 for each reportable act described in subparagraphs (A) through (E) of subsection (a)(1) that is knowingly conducted;

or (ii) if the financial institution has not previously been reported for similar conduct under subsection (a), the President shall issue a cautionary letter to that financial institution;

or (B) if the financial institution is not a financial institution described in subparagraph (A), the President shall impose a civil penalty not to exceed $250,000 for each reportable act described in subparagraphs (A) through (E) of subsection (a)(1) that is knowingly conducted.

(c) Suspension for Law Enforcement Purposes.--The President may suspend the submission of the reports described in subsection (a) and the application of sanctions and penalties described in subsection (b) for a one-year period if-- (1) such reporting and application of sanctions and penalties could compromise an ongoing law enforcement investigation or prosecution;

or (2) a criminal prosecution is pending, or a criminal or civil fine or penalty has been imposed or conditionally deferred, for the conduct reported pursuant to subsection (a).

(d) Suspension and Termination of Sanctions and Penalties.-- (1) Suspension.--The President may suspend the application of any sanctions or penalties under subsection (b) for a period of not more than one year if the President certifies to the appropriate congressional committees that the Government of North Korea is taking steps toward-- (A) the verification of its compliance with applicable United Nations Security Council Resolutions;

and (B) fully accounting for and repatriating United States citizens and permanent residents (including deceased United States citizens and permanent residents)-- (i) abducted or unlawfully held captive by the Government of North Korea;

or (ii) detained in violation of the Agreement Concerning a Military Armistice in Korea, signed at Panmunjom July 27, 1953 (commonly referred to as the ``Korean War Armistice Agreement'').

(2) Renewal of suspension.--The President may renew a suspension described in paragraph (1) for additional periods of not more than 180 days if the President certifies to the appropriate congressional committees that the Government of North Korea continues to take steps as described in paragraph (1).

(3) Termination of sanctions.--Subject to subsection (f), the President may terminate the application of any sanctions or penalties under subsection (b) if the President certifies that the Government of North Korea has made significant progress towards-- (A) completely, verifiably, and irreversibly dismantling 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;

and (B) fully accounting for and repatriating United States citizens and permanent residents (including deceased United States citizens and permanent residents)-- (i) abducted or unlawfully held captive by the Government of North Korea;

or (ii) detained in violation of the Agreement Concerning a Military Armistice in Korea, signed at Panmunjom July 27, 1953 (commonly referred to as the ``Korean War Armistice Agreement'').

(e) Waiver.--Subject to subsection (f), the President may waive the application of sanctions or penalties under subsection (b) with respect to a financial institution if the President determines that the waiver is in the national security interest of the United States.

(f) Congressional Review of Proposed Actions To Waive or Terminate Sanctions.-- (1) Submission to congress of proposed action.-- (A) In general.--Notwithstanding any other provision of law, before taking any action described in subparagraph (B), the President shall submit to the appropriate congressional committees and leadership a report that describes the proposed action and the reasons for that action.

(B) Actions described.--An action described in this subparagraph is-- (i) an action to suspend, renew a suspension, or terminate under subsection (d) the application of sanctions or penalties under subsection (b);

or (ii) with respect to sanctions or penalties under subsection (b) imposed by the President with respect to a person, an action to waive under subsection (e) the application of those sanctions or penalties with respect to that person.

(C) Description of type of action.--Each report submitted under subparagraph (A) with respect to an action described in subparagraph (B) shall include a description of whether the action-- (i) is not intended to significantly alter United States foreign policy with regard to North Korea;

or (ii) is intended to significantly alter United States foreign policy with regard to North Korea.

(D) Inclusion of additional matter.-- (i) In general.--Each report submitted under subparagraph (A) that relates to an action that is intended to significantly alter United States foreign policy with regard to North Korea shall include a description of-- (I) the significant alteration to United States foreign policy with regard to North Korea;

(II) the anticipated effect of the action on the national security interests of the United States;

and (III) the policy objectives for which the sanctions affected by the action were initially imposed.

(ii) Requests from banking and financial services committees.--The Committee on Banking, Housing, and Urban Affairs of the Senate or the Committee on Financial Services of the House of Representatives may request the submission to the Committee of the matter described in subclauses (II) and (III) of clause (i) with respect to a report submitted under subparagraph (A) that relates to an action that is not intended to significantly alter United States foreign policy with regard to North Korea.

(2) Period for review by congress.-- (A) In general.--During the period of 30 calendar days beginning on the date on which the President submits a report under paragraph (1)(A)-- (i) in the case of a report that relates to an action that is not intended to significantly alter United States foreign policy with regard to North Korea, the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives should, as appropriate, hold hearings and briefings and otherwise obtain information in order to fully review the report;

and (ii) in the case of a report that relates to an action that is intended to significantly alter United States foreign policy with regard to North Korea, the Committee on Foreign Relations of the Senate and the Committee on Foreign Affairs of the House of Representatives should, as appropriate, hold hearings and briefings and otherwise obtain information in order to fully review the report.

(B) Exception.--The period for congressional review under subparagraph (A) of a report required to be submitted under paragraph (1)(A) shall be 60 calendar days if the report is submitted on or after July 10 and on or before September 7 in any calendar year.

(C) Limitation on actions during initial congressional review period.--Notwithstanding any other provision of law, during the period for congressional review provided for under subparagraph (A) of a report submitted under paragraph (1)(A) proposing an action described in paragraph (1)(B), including any additional period for such review as applicable under the exception provided in subparagraph (B), the President may not take that action unless a joint resolution of approval with respect to that action is enacted in accordance with paragraph (3).

(D) Limitation on actions during presidential consideration of a joint resolution of disapproval.-- Notwithstanding any other provision of law, if a joint resolution of disapproval relating to a report submitted under paragraph (1)(A) proposing an action described in paragraph (1)(B) passes both Houses of Congress in accordance with paragraph (3), the President may not take that action for a period of 12 calendar days after the date of passage of the joint resolution of disapproval.

(E) Limitation on actions during congressional reconsideration of a joint resolution of disapproval.-- Notwithstanding any other provision of law, if a joint resolution of disapproval relating to a report submitted under paragraph (1)(A) proposing an action described in paragraph (1)(B) passes both Houses of Congress in accordance with paragraph (3), and the President vetoes the joint resolution, the President may not take that action for a period of 10 calendar days after the date of the President's veto.

(F) Effect of enactment of a joint resolution of disapproval.--Notwithstanding any other provision of law, if a joint resolution of disapproval relating to a report submitted under paragraph (1)(A) proposing an action described in paragraph (1)(B) is enacted in accordance with paragraph (3), the President may not take that action.

(3) Joint resolutions of disapproval or approval.-- (A) Joint resolutions of disapproval or approval defined.--In this paragraph:

(i) Joint resolution of approval.--The term ``joint resolution of approval'' means only a joint resolution of either House of Congress-- (I) the title of which is as follows:

andand</DELETED> <DELETED> (II) the sole matter after the resolving clause of which is the following:

``Congress approves of the action relating to the application of sanctions imposed with respect to North Korea proposed by the President in the report submitted to Congress under section 101(f)(1)(A) of the Banking Restrictions Involving North Korea (BRINK) Act of 2017 on _______ relating to ________.'', with the first blank space being filled with the appropriate date and the second blank space being filled with a short description of the proposed action.action.</DELETED> <DELETED> (ii) Joint resolution of disapproval.--The term ``joint resolution of disapproval'' means only a joint resolution of either House of Congress--</DELETED> <DELETED> (I) the title of which is as follows:

(ii) Joint resolution of disapproval.--The term ``joint resolution of disapproval'' means only a joint resolution of either House of Congress-- (I) the title of which is as follows:

andand</DELETED> <DELETED> (II) the sole matter after the resolving clause of which is the following:

``Congress disapproves of the action relating to the application of sanctions imposed with respect to North Korea proposed by the President in the report submitted to Congress under section 101(f)(1)(A) of the Banking Restrictions Involving North Korea (BRINK) Act of 2017 on _______ relating to ________.'', with the first blank space being filled with the appropriate date and the second blank space being filled with a short description of the proposed action.action.</DELETED> <DELETED> (B) Introduction.--During the period of 30 calendar days provided for under paragraph (2)(A), including any additional period as applicable under the exception provided in paragraph (2)(B), a joint resolution of approval or joint resolution of disapproval may be introduced--</DELETED> <DELETED> (i) in the House of Representatives, by the majority leader or the minority leader;

(B)and</DELETED> Introduction.--During<DELETED> (ii) in the periodSenate, by the majority leader (or the majority leader's designee) or the minority leader (or the minority leader's designee).</DELETED> <DELETED> (C) Floor consideration in house of 30representatives.--</DELETED> <DELETED> (i) Reporting and discharge.--If a committee of the House of Representatives to which a joint resolution of approval or joint resolution of disapproval has been referred has not reported the joint resolution within 10 calendar days providedafter forthe underdate paragraphof (2)(A),referral, includingthat anycommittee additionalshall periodbe asdischarged applicablefrom underfurther consideration of the exceptionjoint providedresolution.</DELETED> in<DELETED> paragraph(ii) (2)(B),Proceeding to consideration.--Beginning on the third legislative day after each committee to which a joint resolution of approval or joint resolution of disapproval mayhas bebeen introduced--referred (i)reports inthe joint resolution to the House ofor Representatives,has bybeen discharged from further consideration of the majorityjoint leaderresolution, orit shall be in order to move to proceed to consider the minorityjoint leader;resolution in the House.

and (ii) in the Senate, by the majority leader (or the majority leader's designee) or the minority leader (or the minority leader's designee).

(C) Floor consideration in house of representatives.-- (i) Reporting and discharge.--If a committee of the House of Representatives to which a joint resolution of approval or joint resolution of disapproval has been referred has not reported the joint resolution within 10 calendar days after the date of referral, that committee shall be discharged from further consideration of the joint resolution.

(ii) Proceeding to consideration.-- Beginning on the third legislative day after each committee to which a joint resolution of approval or joint resolution of disapproval has been referred reports the joint resolution to the House or has been discharged from further consideration of the joint resolution, it shall be in order to move to proceed to consider the joint resolution in the House.

A motion to reconsider the vote by which the motion is disposed of shall not be in order.order.</DELETED> <DELETED> (iii) Consideration.--The joint resolution of approval or joint resolution of disapproval shall be considered as read.

(iii) Consideration.--The joint resolution of approval or joint resolution of disapproval shall be considered as read.

A motion to reconsider the vote on passage of the joint resolution shall not be in order.order.</DELETED> <DELETED> (D) Consideration in the senate.-- </DELETED> <DELETED> (i) Committee referral.--A joint resolution of approval or joint resolution of disapproval introduced in the Senate shall be-- </DELETED> <DELETED> (I) referred to the Committee on Banking, Housing, and Urban Affairs if the joint resolution relates to a report submitted under paragraph (1)(A) with respect to an action that is not intended to significantly alter United States foreign policy with regard to North Korea;

(D)and</DELETED> Consideration<DELETED> in(II) thereferred senate.--to (i)the Committee referral.--Aon Foreign Relations if the joint resolution relates to a report submitted under paragraph (1)(A) with respect to an action that is intended to significantly alter United States foreign policy with respect to North Korea.</DELETED> <DELETED> (ii) Reporting and discharge.--If the committee to which a joint resolution of approval or joint resolution of disapproval introducedwas inreferred has not reported the Senatejoint resolution within 10 calendar days after the date of referral of the joint resolution, that committee shall be--be (I)discharged referredfrom further consideration of the joint resolution and the joint resolution shall be placed on the appropriate calendar.</DELETED> <DELETED> (iii) Proceeding to consideration.--Notwithstanding Rule XXII of the Standing Rules of the Senate, it is in order at any time after the Committee on Banking, Housing, and Urban Affairs ifor the Committee on Foreign Relations, as the case may be, reports a joint resolution relatesof approval or joint resolution of disapproval to the Senate or has been discharged from consideration of such a reportjoint submittedresolution under(even paragraphthough (1)(A)a withprevious respectmotion to anthe actionsame thateffect ishas notbeen intendeddisagreed to) to significantlymove alterto Unitedproceed Statesto foreignthe policyconsideration withof regardthe tojoint Northresolution, Korea;and all points of order against the joint resolution (and against consideration of the joint resolution) are waived.

and (II) referred to the Committee on Foreign Relations if the joint resolution relates to a report submitted under paragraph (1)(A) with respect to an action that is intended to significantly alter United States foreign policy with respect to North Korea.

(ii) Reporting and discharge.--If the committee to which a joint resolution of approval or joint resolution of disapproval was referred has not reported the joint resolution within 10 calendar days after the date of referral of the joint resolution, that committee shall be discharged from further consideration of the joint resolution and the joint resolution shall be placed on the appropriate calendar.

(iii) Proceeding to consideration.-- Notwithstanding Rule XXII of the Standing Rules of the Senate, it is in order at any time after the Committee on Banking, Housing, and Urban Affairs or the Committee on Foreign Relations, as the case may be, reports a joint resolution of approval or joint resolution of disapproval to the Senate or has been discharged from consideration of such a joint resolution (even though a previous motion to the same effect has been disagreed to) to move to proceed to the consideration of the joint resolution, and all points of order against the joint resolution (and against consideration of the joint resolution) are waived.

A motion to reconsider the vote by which the motion is agreed to or disagreed to shall not be in order.order.</DELETED> <DELETED> (iv) Rulings of the chair on procedure.--Appeals from the decisions of the Chair relating to the application of the rules of the Senate, as the case may be, to the procedure relating to a joint resolution of approval or joint resolution of disapproval shall be decided without debate.</DELETED> <DELETED> (v) Consideration of veto messages.--Debate in the Senate of any veto message with respect to a joint resolution of approval or joint resolution of disapproval, including all debatable motions and appeals in connection with the joint resolution, shall be limited to 10 hours, to be equally divided between, and controlled by, the majority leader and the minority leader or their designees.</DELETED> <DELETED> (E) Rules relating to senate and house of representatives.--</DELETED> <DELETED> (i) Coordination with action by other house.--If, before the passage by one House of a joint resolution of approval or joint resolution of disapproval of that House, that House receives an identical joint resolution from the other House, the following procedures shall apply:</DELETED> <DELETED> (I) The joint resolution of the other House shall not be referred to a committee.</DELETED> <DELETED> (II) With respect to the joint resolution of the House receiving the joint resolution from the other House--</DELETED> <DELETED> (aa) the procedure in that House shall be the same as if no joint resolution had been received from the other House;

(iv)but</DELETED> Rulings<DELETED> of(bb) the chairvote on procedure.--passage Appealsshall frombe on the decisionsjoint resolution of the Chairother relatingHouse.</DELETED> <DELETED> (ii) Treatment of a joint resolution of other house.--If one House fails to theintroduce applicationa joint resolution of approval or joint resolution of disapproval, a joint resolution of approval or joint resolution of disapproval of the rulesother House shall be entitled to expedited procedures in that House under this subsection.</DELETED> <DELETED> (iii) Treatment of house joint resolution in senate.--If, following passage of a joint resolution of approval or joint resolution of disapproval in the Senate, asthe Senate receives an identical joint resolution from the caseHouse mayof be,Representatives, that joint resolution shall be placed on the appropriate Senate calendar.</DELETED> <DELETED> (iv) Application to revenue measures.--The provisions of this subparagraph shall not apply in the procedureHouse relatingof Representatives to a joint resolution of approval or joint resolution of disapproval shallthat is a revenue measure.</DELETED> <DELETED> (F) Rules of house of representatives and senate.--This paragraph is enacted by Congress-- </DELETED> <DELETED> (i) as an exercise of the rulemaking power of the Senate and the House of Representatives, respectively, and as such is deemed a part of the rules of each House, respectively, but applicable only with respect to the procedure to be decidedfollowed withoutin debate.that House in the case of a joint resolution of approval or joint resolution of disapproval, and supersedes other rules only to the extent that it is inconsistent with such rules;

(v)and</DELETED> Consideration<DELETED> (ii) with full recognition of vetothe messages.--Debateconstitutional inright of either House to change the Senaterules (so far as relating to the procedure of that House) at any vetotime, messagein withthe respectsame manner, and to athe jointsame resolutionextent as in the case of approvalany orother jointrule resolutionof that House.</DELETED> <DELETED> (g) Briefing Required.--Not later than 180 days after the date of disapproval,the includingenactment allof debatablethis motionsAct, and appealsevery in180 connectiondays withthereafter, the jointPresident resolution,shall brief the appropriate congressional committees on the status of efforts by the President to prevent conduct described in subparagraphs (A) through (E) of subsection (a)(1).</DELETED> <DELETED> (h) Rule of Construction.--Nothing in this section shall be limitedconstrued to hours,prohibit any person from, or authorize or require the imposition of sanctions with respect to beany equallyperson dividedfor, between,conducting or facilitating any transaction for the sale or donation of agricultural commodities, food, medicine, or medical devices.</DELETED> <DELETED> (i) Appropriate Congressional Committees and controlledLeadership by,Defined.--In this section, the majorityterm leader``appropriate congressional committees and leadership'' means--</DELETED> <DELETED> (1) the Committee on Banking, Housing, and Urban Affairs, the Committee on Foreign Relations, and the majority and minority leaderleaders orof theirthe designees.Senate;

(E)and</DELETED> Rules<DELETED> relating(2) tothe senateCommittee andon houseFinancial ofServices, representatives.--the (i)Committee Coordinationon withForeign actionAffairs, byand otherthe house.--If,Speaker, before the passagemajority byleader, oneand Housethe ofminority aleader joint resolution of approvalthe orHouse joint resolution of disapprovalRepresentatives.</DELETED> of<DELETED>SEC. that House, that House receives an identical joint resolution from the other House, the following procedures shall apply:

(I) The joint resolution of the other House shall not be referred to a committee.

(II) With respect to the joint resolution of the House receiving the joint resolution from the other House-- (aa) the procedure in that House shall be the same as if no joint resolution had been received from the other House;

but (bb) the vote on passage shall be on the joint resolution of the other House.

(ii) Treatment of a joint resolution of other house.--If one House fails to introduce a joint resolution of approval or joint resolution of disapproval, a joint resolution of approval or joint resolution of disapproval of the other House shall be entitled to expedited procedures in that House under this subsection.

(iii) Treatment of house joint resolution in senate.--If, following passage of a joint resolution of approval or joint resolution of disapproval in the Senate, the Senate receives an identical joint resolution from the House of Representatives, that joint resolution shall be placed on the appropriate Senate calendar.

(iv) Application to revenue measures.--The provisions of this subparagraph shall not apply in the House of Representatives to a joint resolution of approval or joint resolution of disapproval that is a revenue measure.

(F) Rules of house of representatives and senate.-- This paragraph is enacted by Congress-- (i) as an exercise of the rulemaking power of the Senate and the House of Representatives, respectively, and as such is deemed a part of the rules of each House, respectively, but applicable only with respect to the procedure to be followed in that House in the case of a joint resolution of approval or joint resolution of disapproval, and supersedes other rules only to the extent that it is inconsistent with such rules;

and (ii) with full recognition of the constitutional right of either House to change the rules (so far as relating to the procedure of that House) at any time, in the same manner, and to the same extent as in the case of any other rule of that House.

(g) Briefing Required.--Not later than 180 days after the date of the enactment of this Act, and every 180 days thereafter, the President shall brief the appropriate congressional committees on the status of efforts by the President to prevent conduct described in subparagraphs (A) through (E) of subsection (a)(1).

(h) Rule of Construction.--Nothing in this section shall be construed to prohibit any person from, or authorize or require the imposition of sanctions with respect to any person for, conducting or facilitating any transaction for the sale or donation of agricultural commodities, food, medicine, or medical devices.

(i) Appropriate Congressional Committees and Leadership Defined.-- In this section, the term ``appropriate congressional committees and leadership'' means-- (1) the Committee on Banking, Housing, and Urban Affairs, the Committee on Foreign Relations, and the majority and minority leaders of the Senate;

and (2) the Committee on Financial Services, the Committee on Foreign Affairs, and the Speaker, the majority leader, and the minority leader of the House of Representatives.

SEC.

EXPANSION OF LICENSING REQUIREMENTS FOR TRANSACTIONS IN NORTH KOREAN COVERED PROPERTY.PROPERTY.</DELETED> <DELETED> (a) License Required.--</DELETED> <DELETED> (1) In general.--Except as provided in paragraph (2), not later than 180 days after the date of the enactment of this Act, the President shall prescribe regulations prohibiting any transaction involving the manufacture, sale, purchase, transfer, import, or export of North Korean covered property by a United States person or conducted in the United States.</DELETED> <DELETED> (2) Exception.--</DELETED> <DELETED> (A) In general.--Except as provided in subparagraph (B), the Secretary may grant licenses and permits for the following purposes:</DELETED> <DELETED> (i) For any purpose covered by an exemption or waiver under section 208 of the North Korea Sanctions and Policy Enhancement Act of 2016 (22 U.S.C.

(a)9228), Licenseincluding Required.--humanitarian, (1)diplomatic, Inconsular, general.--Exceptlaw asenforcement, providedand inother paragraphpurposes.</DELETED> (2),<DELETED> (ii) To import food products into North Korea if such food products are not laterdefined thanas 180luxury daysgoods.</DELETED> after<DELETED> (iii) To meet an urgent and compelling humanitarian need.</DELETED> <DELETED> (iv) For activities to promote human rights in North Korea, the datedevelopment of private agriculture and markets in North Korea, and the enactmentfree flow of thisinformation Act,to, thefrom, Presidentand shallwithin prescribeNorth regulationsKorea.</DELETED> prohibiting<DELETED> any(v) transactionTo involvingimport theagricultural manufacture,products, sale,medicine, purchase,or transfer,medical import,devices into North Korea if such products, medicine, or exportdevices are classified as designated ``EAR 99'' under subchapter C of Northchapter KoreanVII coveredof propertytitle by15, aCode Unitedof StatesFederal personRegulations, or conductedany insuccessor regulations (commonly known as the United``Export States.Administration Regulations''), and not controlled under--</DELETED> <DELETED> (I) the Export Administration Act of 1979 (50 U.S.C.

(2) Exception.-- (A) In general.--Except as provided in subparagraph (B), the Secretary may grant licenses and permits for the following purposes:

(i) For any purpose covered by an exemption or waiver under section 208 of the North Korea Sanctions and Policy Enhancement Act of 2016 (22 U.S.C.

9228), including humanitarian, diplomatic, consular, law enforcement, and other purposes.

(ii) To import food products into North Korea if such food products are not defined as luxury goods.

(iii) To meet an urgent and compelling humanitarian need.

(iv) For activities to promote human rights in North Korea, the development of private agriculture and markets in North Korea, and the free flow of information to, from, and within North Korea.

(v) To import agricultural products, medicine, or medical devices into North Korea if such products, medicine, or devices are classified as designated ``EAR 99'' under subchapter C of chapter VII of title 15, Code of Federal Regulations, or any successor regulations (commonly known as the ``Export Administration Regulations''), and not controlled under-- (I) the Export Administration Act of 1979 (50 U.S.C.

1701 et seq.);seq.);</DELETED> <DELETED> (II) the Arms Export Control Act (22 U.S.C.

(II)2751 et seq.);</DELETED> <DELETED> (III) part B of title VIII of the ArmsNuclear ExportProliferation ControlPrevention Act of 1994 (22 U.S.C.

2751 et seq.);

(III) part B of title VIII of the Nuclear Proliferation Prevention Act of (22 U.S.C.

oror</DELETED> <DELETED> (IV) the Chemical and Biological Weapons Control and Warfare Elimination Act of 1991 (22 U.S.C.

5601 et seq.).seq.).</DELETED> <DELETED> (B) Exception.--The Secretary may not grant a license or permit under subparagraph (A) for an activity described in section 104(a) of the North Korea Sanctions and Policy Enhancement Act of 2016 (22 U.S.C.

(B)9214(a)).</DELETED> Exception.--The<DELETED> Secretary(b) mayPenalties.--</DELETED> <DELETED> (1) In general.--A person shall be fined not grantmore athan license$5,000,000, imprisoned for not more than 20 years, or permitboth, underif subparagraphthe person knowingly--</DELETED> <DELETED> (A) forengages anin activitya transaction described in sectionsubsection 104(a)(a)(1), ofexcept thepursuant Northto Koreaa Sanctionslicense andor Policypermit Enhancementgranted Actunder ofthis 2016section (22or U.S.C.regulations prescribed pursuant to this section;

9214(a)).or</DELETED> <DELETED> (B) evades a requirement to obtain a license or permit under this section or a regulations prescribed pursuant to this section.</DELETED> <DELETED> (2) Forfeiture of property.--Any property, real or personal, that is involved in a transaction that is a violation of subsection (a)(1), is involved in an attempt to conduct such a transaction, or constitutes or is derived from proceeds traceable to such a transaction, is subject to forfeiture to the United States.</DELETED> <DELETED> (c) Report Required.--</DELETED> <DELETED> (1) In general.--Not later than 180 days after the date of the enactment of this Act, and annually thereafter, the President shall submit to the appropriate congressional committees a report listing any licenses or permits granted under subsection (a).</DELETED> <DELETED> (2) Form.--Each report required under paragraph (1) shall be submitted in unclassified form but may include a classified annex.</DELETED> <DELETED> (3) Public availability.--Not later than 30 days after the submission of a report under paragraph (1), the Secretary of the Treasury and the Secretary of State shall each publish the unclassified part of the report on a publicly available Internet website of the Department of the Treasury and the Department of State, as the case may be.</DELETED> <DELETED> (d) Termination of Requirements.--The President may terminate the prohibition on transactions described in subsection (a) and the imposition of penalties under subsection (b) if the President submits to the appropriate congressional committees the certification described in section 402 of the North Korea Sanctions and Policy Enhancement Act of 2016 (22 U.S.C.

(b)9252).</DELETED> Penalties.--<DELETED> (1)(e) InModification general.--Aof personDefinition shallof beSpecified finedUnlawful notActivity more than $5,000,000, imprisoned for notMoney moreLaundering thanPurposes.--Section 201956(c)(7)(D) years,of ortitle both,18, ifUnited theStates personCode, knowingly--is (A)amended--</DELETED> engages<DELETED> in(1) aby transactionstriking described``or in subsection (a)(1), except pursuant to a license or permit granted under this section or104(a) regulationsof'' prescribedand pursuantinserting to``section this104(a) section;of'';

orand</DELETED> (B)<DELETED> evades(2) aby requirementinserting tobefore obtainthe asemicolon licenseat orthe permitend underthe thisfollowing: section or a regulations prescribed pursuant to this section.

(2)``, Forfeiture of property.--Any property, real or personal,section that102(b) isof involvedthe inBanking aRestrictions transactionInvolving thatNorth isKorea a(BRINK) violationAct of subsection2017 (a)(1),(relating isto involvedtransactions in ancertain attemptNorth toKorean conductproperty)''.</DELETED> such<DELETED>SEC. a transaction, or constitutes or is derived from proceeds traceable to such a transaction, is subject to forfeiture to the United States.

(c) Report Required.-- (1) In general.--Not later than 180 days after the date of the enactment of this Act, and annually thereafter, the President shall submit to the appropriate congressional committees a report listing any licenses or permits granted under subsection (a).

(2) Form.--Each report required under paragraph (1) shall be submitted in unclassified form but may include a classified annex.

(3) Public availability.--Not later than 30 days after the submission of a report under paragraph (1), the Secretary of the Treasury and the Secretary of State shall each publish the unclassified part of the report on a publicly available Internet website of the Department of the Treasury and the Department of State, as the case may be.

(d) Termination of Requirements.--The President may terminate the prohibition on transactions described in subsection (a) and the imposition of penalties under subsection (b) if the President submits to the appropriate congressional committees the certification described in section 402 of the North Korea Sanctions and Policy Enhancement Act of 2016 (22 U.S.C.

9252).

(e) Modification of Definition of Specified Unlawful Activity for Money Laundering Purposes.--Section 1956(c)(7)(D) of title 18, United States Code, is amended-- (1) by striking ``or section 104(a) of'' and inserting ``section 104(a) of'';

and (2) by inserting before the semicolon at the end the following:

``, or section 102(b) of the Banking Restrictions Involving North Korea (BRINK) Act of 2017 (relating to transactions in certain North Korean property)''.

SEC.

AUTHORIZATION OF IMPOSITION OF SANCTIONS WITH RESPECT TO THE PROVISION OF SPECIALIZED FINANCIAL MESSAGING SERVICES TO NORTH KOREAN FINANCIAL INSTITUTIONS AND SANCTIONED PERSONS.PERSONS.</DELETED> <DELETED> (a) Sense of Congress.--It is the sense of Congress that-- </DELETED> <DELETED> (1) providers of specialized financial messaging services have been used as a critical link between the Government of North Korea and the international financial system;</DELETED> <DELETED> (2) the Financial Action Task Force has repeatedly called for jurisdictions to apply countermeasures to protect the financial system from the risks of money laundering and proliferation financing emanating from North Korea;</DELETED> <DELETED> (3) credible published reports have implicated the Government of North Korea in stealing approximately $81,000,000 from the Bangladesh Bank and attempting to steal another $951,000,000 from other banks using a financial messaging service;

(a)and</DELETED> Sense<DELETED> of(4) Congress.--Itdirectly isproviding thespecialized sensefinancial ofmessaging Congressservices that--to, (1)or providersenabling ofor specializedfacilitating financialdirect or indirect access to such messaging services havefor, beenany usedfinancial asinstitution adesignated criticalby linkthe betweenUnited theNations GovernmentSecurity Council is inconsistent with applicable United Nations Security Council resolutions.</DELETED> <DELETED> (b) Authorization of NorthImposition Koreaof andSanctions.--The President may impose sanctions pursuant to the internationalInternational financialEmergency system;Economic Powers Act (50 U.S.C.

(2)1701 theet Financialseq.) Actionwith Taskrespect Forceto hasa repeatedlyperson calledif, foron jurisdictionsor toafter applythe countermeasuresdate tothat protectis the90 financialdays systemafter fromthe date of the risksenactment of moneythis launderingAct, the person knowingly and proliferationdirectly financingprovides emanatingspecialized fromfinancial messaging services to, or knowingly enables or facilitates direct or indirect access to such messaging services for-- </DELETED> <DELETED> (1) a North Korea;Korean financial institution;</DELETED> <DELETED> (2) a person, including a financial institution, that is designated pursuant to--</DELETED> <DELETED> (A) an applicable Executive order;</DELETED> <DELETED> (B) an applicable United Nations Security Council resolution;

(3)or</DELETED> credible<DELETED> published(C) reportssection have104 implicatedof the Government of North Korea inSanctions stealing approximately $81,000,000 from the Bangladesh Bank and attemptingPolicy toEnhancement stealAct anotherof $951,000,0002016 from(22 otherU.S.C. banks using a financial messaging service;

and (4) directly providing specialized financial messaging services to, or enabling or facilitating direct or indirect access to such messaging services for, any financial institution designated by the United Nations Security Council is inconsistent with applicable United Nations Security Council resolutions.

(b) Authorization of Imposition of Sanctions.--The President may impose sanctions pursuant to the International Emergency Economic Powers Act (50 U.S.C.

1701 et seq.) with respect to a person if, on or after the date that is 90 days after the date of the enactment of this Act, the person knowingly and directly provides specialized financial messaging services to, or knowingly enables or facilitates direct or indirect access to such messaging services for-- (1) a North Korean financial institution;

(2) a person, including a financial institution, that is designated pursuant to-- (A) an applicable Executive order;

(B) an applicable United Nations Security Council resolution;

or (C) section 104 of the North Korea Sanctions and Policy Enhancement Act of 2016 (22 U.S.C.

oror</DELETED> <DELETED> (3) a person subject to sanctions under this Act.Act.</DELETED> <DELETED> (c) Enabling or Facilitating Access to Specialized Financial Messaging Services.--For purposes of this section, enabling or facilitating direct or indirect access to specialized financial messaging services to a person described in paragraph (1) or (2) of subsection (b) includes doing so by serving as an intermediary financial institution with access to such messaging services.</DELETED> <DELETED> (d) Suspension and Termination of Sanctions.--</DELETED> <DELETED> (1) Suspension.--The President may suspend the application of any sanctions under subsection (b) for a period of not more than one year if the President certifies to the appropriate congressional committees that the Government of North Korea is taking steps toward--</DELETED> <DELETED> (A) the verification of its compliance with applicable United Nations Security Council Resolutions;

(c)and</DELETED> Enabling<DELETED> or(B) Facilitatingfully Accessaccounting tofor Specializedand Financialrepatriating MessagingUnited Services.--ForStates purposescitizens ofand thispermanent section,residents enabling(including ordeceased facilitatingUnited directStates orcitizens indirectand accesspermanent toresidents)--</DELETED> specialized<DELETED> financial(i) messagingabducted services to a person described in paragraph (1) or (2)unlawfully ofheld subsectioncaptive (b) includes doing so by servingthe asGovernment anof intermediaryNorth financialKorea; institution with access to such messaging services.

(d)or</DELETED> Suspension<DELETED> and(ii) Terminationdetained in violation of Sanctions.--the (1)Agreement Suspension.--TheConcerning Presidenta mayMilitary suspendArmistice in Korea, signed at Panmunjom July 27, 1953 (commonly referred to as the application``Korean War Armistice Agreement'').</DELETED> <DELETED> (2) Renewal of anysuspension.--The sanctionsPresident undermay subsectionrenew (b)a suspension described in paragraph (1) for aadditional periodperiods of not more than one180 yeardays if the President certifies to the appropriate congressional committees that the Government of North Korea iscontinues takingto take steps toward--as (A)described in paragraph (1).</DELETED> <DELETED> (3) Termination of sanctions.--The President may terminate the verificationapplication of any sanctions under subsection (b) if the President certifies that the Government of North Korea has made significant progress towards--</DELETED> <DELETED> (A) completely, verifiably, and irreversibly dismantling all of its compliancenuclear, withchemical, applicablebiological, Unitedand Nationsradiological Securityweapons Councilprograms, Resolutions;including all programs for the development of systems designed in whole or in part for the delivery of such weapons;

andand</DELETED> <DELETED> (B) fully accounting for and repatriating United States citizens and permanent residents (including deceased United States citizens and permanent residents)--residents)--</DELETED> <DELETED> (i) abducted or unlawfully held captive by the Government of North Korea;

oror</DELETED> <DELETED> (ii) detained in violation of the Agreement Concerning a Military Armistice in Korea, signed at Panmunjom July 27, 1953 (commonly referred to as the ``Korean War Armistice Agreement'').Agreement'').</DELETED> <DELETED>SEC.

(2) Renewal of suspension.--The President may renew a suspension described in paragraph (1) for additional periods of not more than 180 days if the President certifies to the appropriate congressional committees that the Government of North Korea continues to take steps as described in paragraph (1).

(3) Termination of sanctions.--The President may terminate the application of any sanctions under subsection (b) if the President certifies that the Government of North Korea has made significant progress towards-- (A) completely, verifiably, and irreversibly dismantling 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;

and (B) fully accounting for and repatriating United States citizens and permanent residents (including deceased United States citizens and permanent residents)-- (i) abducted or unlawfully held captive by the Government of North Korea;

or (ii) detained in violation of the Agreement Concerning a Military Armistice in Korea, signed at Panmunjom July 27, 1953 (commonly referred to as the ``Korean War Armistice Agreement'').

SEC.

AUTHORIZATION OF IMPOSITION OF SANCTIONS WITH RESPECT TO GOVERNMENTS THAT FAIL TO COMPLY WITH UNITED NATIONS SECURITY COUNCIL SANCTIONS AGAINST NORTH KOREA.KOREA.</DELETED> <DELETED> (a) Briefing Required.--Not later than 90 days after the date of the enactment of this Act, the President shall brief the appropriate congressional committees regarding each government of a foreign country that the President has identified as failing to-- </DELETED> <DELETED> (1) close the branches, subsidiaries, or representative offices of North Korean financial institutions in that country;</DELETED> <DELETED> (2) expel representatives of North Korean financial institutions;</DELETED> <DELETED> (3) close the representative offices and expel the representatives of persons designated under applicable United Nations Security Council resolutions;</DELETED> <DELETED> (4) prohibit joint ventures with North Korean financial institutions;</DELETED> <DELETED> (5) deregister any vessel that constitutes North Korean covered property;

(a)or</DELETED> Briefing<DELETED> Required.--Not(6) laterexpel thanNorth 90Korean daysnationals, afterincluding thediplomats, dateworking on behalf of thepersons enactmentdesignated ofunder thisapplicable Act,United Nations Security Council resolutions.</DELETED> <DELETED> (b) Publication.--The Secretary of the PresidentTreasury shall briefpublish in the appropriateFederal congressionalRegister committeesthe regardingnames of each foreign country that has failed to carry out the activities described in paragraphs (1) through (6) of subsection (a).</DELETED> <DELETED> (c) Sanctions Authorized.--With respect to any government of a foreign country thatincluded in the briefing under subsection (a), the President hasmay, identifieduntil such time as failingthe to--President (1)determines closethat the branches,government subsidiaries,has taken substantial steps to terminate conduct described in that subsection, impose one or representativemore officesof the following sanctions with respect to that government:</DELETED> <DELETED> (1) Prohibit or curtail the export of Northany Koreangoods financialor institutionstechnology into that country;foreign country pursuant to the authorities provided in section 6 of the Export Administration Act of 1979 (50 U.S.C.

(2) expel representatives of North Korean financial institutions;

(3) close the representative offices and expel the representatives of persons designated under applicable United Nations Security Council resolutions;

(4) prohibit joint ventures with North Korean financial institutions;

(5) deregister any vessel that constitutes North Korean covered property;

or (6) expel North Korean nationals, including diplomats, working on behalf of persons designated under applicable United Nations Security Council resolutions.

(b) Publication.--The Secretary of the Treasury shall publish in the Federal Register the names of each foreign country that has failed to carry out the activities described in paragraphs (1) through (6) of subsection (a).

(c) Sanctions Authorized.--With respect to any government of a foreign country included in the briefing under subsection (a), the President may, until such time as the President determines that the government has taken substantial steps to terminate conduct described in that subsection, impose one or more of the following sanctions with respect to that government:

(1) Prohibit or curtail the export of any goods or technology to that foreign country pursuant to the authorities provided in section 6 of the Export Administration Act of 1979 (50 U.S.C.

1701 et seq.)).seq.)).</DELETED> <DELETED> (2) Withhold assistance under the Foreign Assistance Act of 1961 (22 U.S.C.

(2)2151 Withholdet assistanceseq.) underto that government.</DELETED> <DELETED> (3) Instruct the ForeignUnited AssistanceStates Actexecutive director at each international financial institution (as defined in section 1701(c) of the International Financial Institutions Act (22 U.S.C.

2151262r(c))) etto seq.)use the voice and vote of the United States to oppose the provision of loans, benefits, or other use of the funds of the institution to that government.government.</DELETED> <DELETED> (d) Rule of Construction.--This section shall not be construed to limit the use of other sanctions authorities available to the President in response to conduct described in subsection (a).</DELETED> <DELETED>SEC.

(3) Instruct the United States executive director at each international financial institution (as defined in section 1701(c) of the International Financial Institutions Act (22 U.S.C.

262r(c))) to use the voice and vote of the United States to oppose the provision of loans, benefits, or other use of the funds of the institution to that government.

(d) Rule of Construction.--This section shall not be construed to limit the use of other sanctions authorities available to the President in response to conduct described in subsection (a).

SEC.

GRANTS TO CONDUCT RESEARCH ON FINANCIAL NETWORKS AND FINANCIAL METHODS OF THE GOVERNMENT OF NORTH KOREA.KOREA.</DELETED> <DELETED> (a) Grants Authorized.--</DELETED> <DELETED> (1) In general.--The President, acting through the Attorney General, the Secretary of State, the Secretary of the Treasury, or the Director of National Intelligence, may award grants to, and enter into cooperative agreements with, States, units of local government, nongovernmental organizations, and relevant international organizations to further the purposes of this title and provide data to address the issues identified in section 2.</DELETED> <DELETED> (2) Research initiatives.--Grants awarded and cooperative agreements entered into under paragraph (1) shall include grants and agreements for the purpose of conducting research initiatives on the following:</DELETED> <DELETED> (A) The methods used by the Government of North Korea to deal in, transact in, or conceal the ownership, control, or origin of North Korean covered property.</DELETED> <DELETED> (B) The relationship between proliferation by the Government of North Korea and the financial industry or financial institutions.</DELETED> <DELETED> (C) The export by any person to the United States of North Korean covered property.</DELETED> <DELETED> (D) The involvement of any person in human trafficking involving citizens or nationals of North Korea.</DELETED> <DELETED> (E) Information relating to transactions described in section 102(a).</DELETED> <DELETED> (F) Information relating to activities described in section 104(a).</DELETED> <DELETED> (G) Information relating to the identification, blocking, and release of property or proceeds described in section 107(a).</DELETED> <DELETED> (H) The effectiveness of law enforcement and diplomatic initiatives of Federal, State, and foreign governments to comply with the provisions of applicable United Nations Security Council resolutions.</DELETED> <DELETED> (I) The effectiveness of compliance programs within the financial industry to ensure compliance with applicable United Nations Security Council resolutions.</DELETED> <DELETED> (b) Interagency Coordination.--The President shall ensure that any information collected pursuant to subsection (a) is shared among the agencies involved in investigations described in section 102(b) of the North Korea Sanctions and Policy Enhancement Act of 2016 (22 U.S.C.

(a)9212).</DELETED> Grants<DELETED> Authorized.--(c) (1)Authorization Inof general.--TheAppropriations.--There President,is actingauthorized throughto thebe Attorneyappropriated General,for theeach Secretary of State,fiscal theyears Secretary2018 ofthrough the2021 Treasury,such orsums theas Director of National Intelligence, may awardbe grantsnecessary to, and enter into cooperative agreements with, States, units of local government, nongovernmental organizations, and relevant international organizations to furthercarry theout purposes of this titlesection.</DELETED> and<DELETED>SEC. provide data to address the issues identified in section 2.

(2) Research initiatives.--Grants awarded and cooperative agreements entered into under paragraph (1) shall include grants and agreements for the purpose of conducting research initiatives on the following:

(A) The methods used by the Government of North Korea to deal in, transact in, or conceal the ownership, control, or origin of North Korean covered property.

(B) The relationship between proliferation by the Government of North Korea and the financial industry or financial institutions.

(C) The export by any person to the United States of North Korean covered property.

(D) The involvement of any person in human trafficking involving citizens or nationals of North Korea.

(E) Information relating to transactions described in section 102(a).

(F) Information relating to activities described in section 104(a).

(G) Information relating to the identification, blocking, and release of property or proceeds described in section 107(a).

(H) The effectiveness of law enforcement and diplomatic initiatives of Federal, State, and foreign governments to comply with the provisions of applicable United Nations Security Council resolutions.

(I) The effectiveness of compliance programs within the financial industry to ensure compliance with applicable United Nations Security Council resolutions.

(b) Interagency Coordination.--The President shall ensure that any information collected pursuant to subsection (a) is shared among the agencies involved in investigations described in section 102(b) of the North Korea Sanctions and Policy Enhancement Act of 2016 (22 U.S.C.

9212).

(c) Authorization of Appropriations.--There is authorized to be appropriated for each of fiscal years 2018 through 2021 such sums as may be necessary to carry out this section.

SEC.

REPORT ON USE BY THE GOVERNMENT OF NORTH KOREA OF BENEFICIAL OWNERSHIP RULES TO ACCESS THE INTERNATIONAL FINANCIAL SYSTEM.SYSTEM.</DELETED> <DELETED> (a) In General.--Not later than November 11, 2018, the Director of the Financial Crimes Enforcement Network of the Department of the Treasury shall submit to the appropriate congressional committees and publish in the Federal Register a report setting forth the findings of the Director regarding how the Government of North Korea is using laws regarding beneficial ownership of property to access the international financial system.</DELETED> <DELETED> (b) Elements.--The Director shall include in the report required under subsection (a) proposals for such legislative and administrative action as the Director considers appropriate.</DELETED> <DELETED>SEC.

(a) In General.--Not later than November 11, 2018, the Director of the Financial Crimes Enforcement Network of the Department of the Treasury shall submit to the appropriate congressional committees and publish in the Federal Register a report setting forth the findings of the Director regarding how the Government of North Korea is using laws regarding beneficial ownership of property to access the international financial system.

(b) Elements.--The Director shall include in the report required under subsection (a) proposals for such legislative and administrative action as the Director considers appropriate.

SEC.

SENSE OF CONGRESS ON IDENTIFICATION AND BLOCKING OF PROPERTY OF NORTH KOREAN OFFICIALS.OFFICIALS.</DELETED> <DELETED> (a) In General.--It is the sense of Congress that the President should collaborate with the Stolen Asset Recovery Initiative of the World Bank Group and the United Nations Office on Drugs and Crime to prioritize the identification, blocking, and release for humanitarian purposes of--</DELETED> <DELETED> (1) any property owned or controlled by a North Korean official;

(a)or</DELETED> In<DELETED> General.--It(2) isany thesignificant senseproceeds of Congresskleptocracy thatby the PresidentGovernment shouldof collaborateNorth withKorea theor Stolena AssetNorth RecoveryKorean Initiativeofficial.</DELETED> of<DELETED> the(b) WorldNorth BankKorean GroupOfficial andDefined.--In thethis Unitedsection, Nationsthe Officeterm on``North DrugsKorean andofficial'' Crimeincludes--</DELETED> to<DELETED> prioritize(1) the identification,individuals blocking,described andin releasesection for304(a)(2)(B) humanitarianof purposesthe of--North (1)Korea anySanctions propertyand ownedPolicy orEnhancement controlledAct byof a2016 North(22 KoreanU.S.C. official;

or (2) any significant proceeds of kleptocracy by the Government of North Korea or a North Korean official.

(b) North Korean Official Defined.--In this section, the term ``North Korean official'' includes-- (1) the individuals described in section 304(a)(2)(B) of the North Korea Sanctions and Policy Enhancement Act of 2016 (22 U.S.C.

andand</DELETED> <DELETED> (2) such additional officials as the President may determine to be officials of the Government of North Korea.Korea.</DELETED> <DELETED>SEC.

SEC.

SENSE OF CONGRESS REGARDING THE KAESONG INDUSTRIAL COMPLEX.COMPLEX.</DELETED> <DELETED> (a) Findings.--Congress finds the following:</DELETED> <DELETED> (1) On October 14, 2006, the United Nations Security Council adopted Resolution 1718, paragraph 8(d) of which requires member states of the United Nations to ensure that persons under their jurisdiction prevent any funds, financial assets, and economic resources from being used by persons or entities engaged in or proving support for the nuclear, chemical, or biological weapons programs of North Korea or the ballistic missile programs of North Korea.</DELETED> <DELETED> (2) On April 11, 2011, the President signed Executive Order 13570 (50 U.S.C.

(a) Findings.--Congress finds the following:

(1) On October 14, 2006, the United Nations Security Council adopted Resolution 1718, paragraph 8(d) of which requires member states of the United Nations to ensure that persons under their jurisdiction prevent any funds, financial assets, and economic resources from being used by persons or entities engaged in or proving support for the nuclear, chemical, or biological weapons programs of North Korea or the ballistic missile programs of North Korea.

(2) On April 11, 2011, the President signed Executive Order (50 U.S.C.

relating to prohibiting certain transactions with respect to North Korea), which prohibits the importation into the United States, directly or indirectly, of any goods, services, or technology from North Korea, except as provided in statute or in licenses, regulations, orders, or directives that may be issued pursuant to that Executive order.order.</DELETED> <DELETED> (3) In April 2013, the Under Secretary of the Treasury for Terrorism and Financial Intelligence said, in reference to the Kaesong Industrial Complex, ``Precisely what North Koreans do with earnings from Kaesong, I think, is something that we are concerned about.''.</DELETED> <DELETED> (4) In February 2016, on announcing the suspension of operations at the Kaesong Industrial Complex, the Unification Ministry of the Republic of Korea stated that the Government of North Korea may have used the proceeds from the Kaesong Industrial Complex to finance its nuclear weapons program.</DELETED> <DELETED> (5) On November 30, 2016, the United States Security Council approved Resolution 2321, paragraph 32 of which requires member states of the United Nations to prohibit public and private financial support for trade with North Korea from within their territories or by persons subject to their jurisdiction, including the granting of export credits, guarantees, or insurance to persons involved in such trade, except as approved in advance by a committee appointed by the Security Council on a case-by-case basis.</DELETED> <DELETED> (b) Sense of Congress.--It is the sense of Congress that-- </DELETED> <DELETED> (1) the United States stands in solidarity with its ally in the Republic of Korea, and has expressed that solidarity with the sacrifice of 36,914 people of the United States and with the continued presence of 29,500 members of the Armed Forces of the United States in the Republic of Korea;</DELETED> <DELETED> (2) the nuclear weapons program of North Korea poses a grave and imminent threat to the freedom and security of both the United States and the Republic of Korea;</DELETED> <DELETED> (3) the Kaesong Industrial Complex yielded few, if any, apparent benefits with regard to the reform, liberalization, or disarmament of North Korea;</DELETED> <DELETED> (4) the unconditional provision of revenue from the Kaesong Industrial Complex to the Government of North Korea undermines the financial pressure necessary to strict and effective enforcement of United Nations Security Council sanctions;</DELETED> <DELETED> (5) the strict and effective enforcement of United Nations Security Council sanctions is the last plausible option to achieve the complete, verifiable, irreversible, and peaceful nuclear disarmament of North Korea;

(3)and</DELETED> In<DELETED> April(6) 2013,the Kaesong Industrial Complex should not be reopened until the UnderGovernment Secretaryof North Korea has completely, verifiably, and irreversibly dismantled all of theits Treasurynuclear, forchemical, Terrorismbiological, and Financialradiological Intelligenceweapons said,programs, inincluding referenceall toprograms for the Kaesongdevelopment Industrialof Complex,systems ``Preciselydesigned whatin Northwhole Koreansor doin withpart earningsfor fromthe Kaesong,delivery Iof think,such isweapons.</DELETED> something<DELETED>TITLE thatII--DIVESTMENT weFROM areNORTH concernedKOREA</DELETED> about.''.<DELETED>SEC.

(4)201. In February 2016, on announcing the suspension of operations at the Kaesong Industrial Complex, the Unification Ministry of the Republic of Korea stated that the Government of North Korea may have used the proceeds from the Kaesong Industrial Complex to finance its nuclear weapons program.

(5)AUTHORITY OnOF NovemberSTATE 30,AND 2016,LOCAL theGOVERNMENTS UnitedTO StatesDIVEST SecurityFROM CouncilCOMPANIES approvedTHAT ResolutionINVEST 2321,IN paragraphNORTH 32KOREA.</DELETED> <DELETED> (a) Sense of whichCongress.--It requiresis memberthe statessense of Congress that the United NationsStates should support the decision of any State or local government, for moral, prudential, or reputational reasons, to divest from, or prohibit publicthe andinvestment privateof financialassets supportof forthe tradeState withor local government in, a person that engages in investment activities involving North Korean covered property if North Korea fromis withinsubject theirto territorieseconomic orsanctions imposed by personsthe subjectUnited States or the United Nations Security Council.</DELETED> <DELETED> (b) Authority To Divest.--Notwithstanding any other provision of law, a State or local government may adopt and enforce measures that meet the requirements of subsection (c) to theirdivest jurisdiction,the includingassets of the grantingState or local government from, or prohibit investment of exportthe credits,assets guarantees,of the State or insurancelocal government in, any person that the State or local government determines, using credible information available to personsthe involvedpublic, engages in suchinvestment trade,activities exceptinvolving asNorth approvedKorean incovered advanceproperty byof a committeevalue appointedof more than $10,000.</DELETED> <DELETED> (c) Requirements.--Any measure taken by a State or local government under subsection (b) shall meet the Securityfollowing Councilrequirements:</DELETED> <DELETED> (1) Notice.--The State or local government shall provide written notice to each person with respect to which a measure under this section is to be applied.</DELETED> <DELETED> (2) Timing.--The measure applied under this section shall apply to a person not earlier than the date that is 90 days after the date on which written notice under paragraph (1) is provided to the person.</DELETED> <DELETED> (3) Opportunity to demonstrate compliance.-- </DELETED> <DELETED> (A) In general.--The State or local government shall provide to each person with respect to which a case-by-casemeasure basis.is to be applied under this section an opportunity to demonstrate to the State or local government that the person does not engage in investment activities in North Korean covered property.</DELETED> <DELETED> (B) Nonapplication.--If a person with respect to which a measure is to be applied under this section demonstrates to the State or local government under subparagraph (A) that the person does not engage in investment activities in North Korean covered property, the measure shall not apply to that person.</DELETED> <DELETED> (4) Sense of congress on avoiding erroneous targeting.--It is the sense of Congress that a State or local government should not adopt a measure under subsection (b) with respect to a person unless the State or local government has-- </DELETED> <DELETED> (A) made every effort to avoid erroneously targeting the person;

(b)and</DELETED> Sense<DELETED> (B) verified that the person engages in investment activities in North Korean covered property.</DELETED> <DELETED> (d) Notice to Department of Congress.--ItJustice.--Not islater than 30 days after a State or local government applies a measure under this section, the senseState or local government shall notify the Attorney General of Congressthat that--measure.</DELETED> <DELETED> (e) Authorization for Prior Applied Measures.--</DELETED> <DELETED> (1) In general.--Notwithstanding any other provision of this section or any other provision of law, a State or local government may enforce a measure (without regard to the Unitedrequirements Statesof standssubsection (c), except as provided in solidarityparagraph with(2)) itsapplied allyby inthe State or local government before the Republicdate of Korea,the andenactment hasof expressedthis Act that solidarityprovides withfor the sacrificedivestment of 36,914assets peopleof the State or local government from, or prohibits the investment of the Unitedassets Statesof andthe withState or local government in, any person that the continuedState presenceor local government determines, using credible information available to the public, engages in investment activities in North Korean covered property that are identified in that measure.</DELETED> <DELETED> (2) Application of 29,500notice membersrequirements.--A measure described in paragraph (1) shall be subject to the requirements of paragraphs (1), (2), and (3)(A) of subsection (c) on and after the Armeddate Forcesthat is two years after the date of the Unitedenactment Statesof this Act.</DELETED> <DELETED> (f) No Preemption.--A measure applied by a State or local government authorized under subsection (b) or (e) is not preempted by any Federal law.</DELETED> <DELETED> (g) Definitions.--In this section:</DELETED> <DELETED> (1) Asset.--</DELETED> <DELETED> (A) In general.--Except as provided in subparagraph (B), the Republicterm ``asset'' means public monies, and includes any pension, retirement, annuity, endowment fund, or similar instrument, that is controlled by a State or local government.</DELETED> <DELETED> (B) Exception.--The term ``asset'' does not include employee benefit plans covered by title I of Korea;the Employee Retirement Income Security Act of 1974 (29 U.S.C.

(2)1001 theet nuclearseq.).</DELETED> weapons<DELETED> program(2) ofInvestment.--The Northterm Korea``investment'' posesincludes--</DELETED> a<DELETED> grave(A) anda imminentcommitment threator tocontribution theof freedomfunds andor securityproperty;</DELETED> of<DELETED> both(B) thea Unitedloan Statesor andother theextension Republic of Korea;credit;

(3)and</DELETED> <DELETED> (C) the Kaesongentry Industrialinto Complexor yieldedrenewal few,of ifa any,contract apparentfor benefitsgoods withor regardservices.</DELETED> <DELETED> (h) Effective Date.--</DELETED> <DELETED> (1) In general.--Except as provided in paragraph (2) and subsection (e), this section applies to measures applied by a State or local government before, on, or after the reform,date liberalization,of the enactment of this Act.</DELETED> <DELETED> (2) Notice requirements.--Except as provided in subsection (h), subsections (c) and (d) apply to measures applied by a State or disarmamentlocal government on or after the date of Norththe Korea;enactment of this Act.</DELETED> <DELETED>SEC.

(4)202. the unconditional provision of revenue from the Kaesong Industrial Complex to the Government of North Korea undermines the financial pressure necessary to strict and effective enforcement of United Nations Security Council sanctions;

(5)SAFE theHARBOR strictFOR andCHANGES effectiveOF enforcementINVESTMENT ofPOLICIES UnitedBY NationsASSET SecurityMANAGERS.</DELETED> Council<DELETED> sanctions(a) isIn theGeneral.--Section last13(c)(1) plausibleof option to achieve the complete,Investment verifiable,Company irreversible,Act and peaceful nuclear disarmament of North1940 Korea;(15 U.S.C.

and80a-13(c)(1)) (6)is theamended--</DELETED> Kaesong<DELETED> Industrial(1) Complexin shouldsubparagraph not(A) beby reopenedstriking until``or'' theat Government of North Korea has completely, verifiably, and irreversibly dismantled all of its nuclear, chemical, biological, and radiological weapons programs, including all programs for the developmentend;</DELETED> of<DELETED> systems(2) designed in wholesubparagraph or(B) inby partstriking for the deliveryperiod ofand suchinserting weapons.``;

or'';

and</DELETED> <DELETED> (3) by adding at the end the following:</DELETED> <DELETED> ``(C) engage in investment activities involving North Korean covered property, as defined in section 3 of the Banking Restrictions Involving North Korea (BRINK) Act of 2017.''.</DELETED> <DELETED> (b) Securities and Exchange Commission Regulations.--Not later than 120 days after the date of the enactment of this Act, the Securities and Exchange Commission shall issue any revisions the Securities and Exchange Commission determines to be necessary to the regulations requiring disclosure by each registered investment company that divests itself of securities in accordance with section 13(c) of the Investment Company Act of 1940 (15 U.S.C.

80a-13(c)), including in accordance with paragraph (1)(C) of that section, as added by subsection (a)(3).</DELETED> <DELETED>SEC.

203.

SENSE OF CONGRESS REGARDING CERTAIN ERISA PLAN INVESTMENTS.</DELETED> <DELETED> It is the sense of Congress that--</DELETED> <DELETED> (1) a fiduciary of an employee benefit plan, as defined in section 3(3) of the Employee Retirement Income Security Act of 1974 (29 U.S.C.

1002(3)), may divest plan assets from, or avoid investing plan assets in, any person the fiduciary determines engages in investment activities involving North Korean covered property, if--</DELETED> <DELETED> (A) the fiduciary makes that determination using credible information that is available to the public;

and</DELETED> <DELETED> (B) the fiduciary prudently determines that the result of that divestment or avoidance of investment would not be expected to provide the employee benefit plan with--</DELETED> <DELETED> (i) a lower rate of return than alternative investments with commensurate degrees of risk;

or</DELETED> <DELETED> (ii) a higher degree of risk than alternative investments with commensurate rates of return;

and</DELETED> <DELETED> (2) by divesting assets or avoiding the investment of assets as described in paragraph (1), the fiduciary is not breaching the responsibilities, obligations, or duties imposed upon the fiduciary by subparagraph (A) or (B) of section 404(a)(1) of the Employee Retirement Income Security Act of (29 U.S.C.

1104(a)(1)).</DELETED> <DELETED>SEC.

204.

RULE OF CONSTRUCTION.</DELETED> <DELETED> Nothing in this Act or any other provision of law authorizing sanctions with respect to North Korea shall be construed to affect or displace--</DELETED> <DELETED> (1) the authority of a State or local government to issue and enforce rules governing the safety, soundness, and solvency of a financial institution subject to its jurisdiction;

or</DELETED> <DELETED> (2) the regulation and taxation by the several States of the business of insurance, pursuant to the Act of March 9, 1945 (59 Stat.

34, chapter 20;

15 U.S.C.

1011 et seq.) (commonly known as the ``McCarran-Ferguson Act'').</DELETED> <DELETED>TITLE III--GENERAL AUTHORITIES</DELETED> <DELETED>SEC.

301.

RULEMAKING.</DELETED> <DELETED> The President may prescribe such rules and regulations as may be necessary to carry out this Act.</DELETED> <DELETED>SEC.

302.

AUTHORITY TO CONSOLIDATE REPORTS.</DELETED> <DELETED> (a) In General.--Any and all reports required to be submitted to the appropriate congressional committees under this Act that are subject to a deadline for submission consisting of the same unit of time may be consolidated into a single report that is submitted pursuant to that deadline.</DELETED> <DELETED> (b) Contents.--Any reports consolidated under subsection (a) shall contain all information required under this Act and any other elements that may be required by existing law.</DELETED> <DELETED>SEC.

303.

RULE OF CONSTRUCTION.</DELETED> <DELETED> Nothing in this Act shall be construed to limit the authority or obligation of the President--</DELETED> <DELETED> (1) to apply the sanctions described in section of the North Korea Sanctions and Policy Enhancement Act of (22 U.S.C.

9214) with regard to persons that meet the criteria for designation under such section;

or</DELETED> <DELETED> (2) to exercise any other law enforcement authorities available to the President.</DELETED> SECTION 1.

SHORT TITLE;

TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``Otto Warmbier Banking Restrictions Involving North Korea Act of 2017''.

(b) Table of Contents.--The table of contents for this Act is as follows:

Sec.

1.

Short title;

table of contents.

TITLE I--SANCTIONS WITH RESPECT TO NORTH KOREA Sec.

101.

Findings.

Sec.

102.

Sense of Congress.

Sec.

103.

Definitions.

Subtitle A--Expansion of Sanctions and Related Matters Sec.

111.

Sanctions with respect to foreign financial institutions that provide financial services to certain sanctioned persons.

Sec.

112.

Codification of Executive orders relating to sanctions with respect to North Korea.

Sec.

113.

Expansion of mandatory designations under North Korea Sanctions and Policy Enhancement Act of 2016.

Sec.

114.

Extension of applicability period of proliferation prevention sanctions.

Sec.

115.

Sense of Congress on identification and blocking of property of North Korean officials.

Sec.

116.

Modification of report on implementation of United Nations Security Council resolutions by other governments.

Sec.

117.

Report on use by the Government of North Korea of beneficial ownership rules to access the international financial system.

Sec.

118.

North Korea strategy.

Subtitle B--Congressional Review and Oversight Sec.

121.

Notification of termination or suspension of sanctions.

Sec.

122.

Reports on certain licensing actions.

Sec.

123.

Briefings on implementation and enforcement of sanctions.

Sec.

124.

Report on financial networks and financial methods of the Government of North Korea.

Sec.

125.

Report on North Korean cyber capabilities and threats to United States economic and security interests.

Sec.

126.

Report on countries of concern with respect to transshipment, reexportation, or diversion of certain items to North Korea.

Subtitle C--General Matters Sec.

131.

Rulemaking.

Sec.

132.

Authority to consolidate reports.

Sec.

133.

Waivers, exemptions, and termination.

Sec.

134.

Procedures for review of classified information.

Sec.

135.

Briefing on resourcing of sanctions programs.

Sec.

136.

Briefing on proliferation financing.

TITLE II--DIVESTMENT FROM NORTH KOREA Sec.

201.

Authority of State and local governments to divest from companies that invest in North Korea.

Sec.

202.

Safe harbor for changes of investment policies by asset managers.

Sec.

203.

Sense of Congress regarding certain ERISA plan investments.

Sec.

204.

Rule of construction.

TITLE III--FINANCIAL INDUSTRY GUIDANCE TO HALT TRAFFICKING Sec.

301.

Short title.

Sec.

302.

Findings.

Sec.

303.

Sense of Congress.

Sec.

304.

Coordination of human trafficking issues by the Office of Terrorism and Financial Intelligence.

Sec.

305.

Strengthening the role of anti-money laundering and other financial tools in combating human trafficking.

Sec.

306.

Sense of Congress on resources to combat human trafficking.

TITLE IV--DEFENSE PRODUCTION ACT MATTERS Sec.

401.

Limitation on cancellation of designation of Secretary of the Air Force as Department of Defense Executive Agent for a certain Defense Production Act program.

TITLE I--SANCTIONS WITH RESPECT TO NORTH KOREA SEC.

101.

FINDINGS.

Congress finds the following:

(1) Since 2006, the United Nations Security Council has approved 9 resolutions imposing sanctions against North Korea under chapter VII of the United Nations Charter, which-- (A) prohibit the use, development, and proliferation of weapons of mass destruction by the Government of North Korea;

(B) prohibit the transfer of arms and related materiel to or by the Government of North Korea;

(C) prohibit the transfer of luxury goods to North Korea;

(D) restrict access by the Government of North Korea to the financial system and require due diligence on the part of financial institutions to prevent the financing of proliferation involving the Government of North Korea;

(E) restrict North Korean shipping, including the reflagging of ships owned or controlled by the Government of North Korea;

(F) limit the sale by the Government of North Korea of precious metals, iron, coal, vanadium, and rare earth minerals;

(G) prohibit the transfer to North Korea of rocket, aviation, or jet fuel;

(H) prohibit new work authorization for North Korean labors;

(I) prohibit exports of North Korean seafood;

(J) prohibit joint ventures or cooperative commercial entities or expanding joint ventures with North Korea;

(K) prohibit exports of North Korean textiles;

and (L) call on member countries of the United Nations to interdict and inspect vessels suspected of containing prohibited North Korean cargo.

(2) The Government of North Korea has threatened to carry out nuclear attacks against the United States, South Korea, and Japan.

(3) The Federal Bureau of Investigation has determined that the Government of North Korea was responsible for cyberattacks against entities in the United States and South Korea.

(4) In May 2017, the Director of National Intelligence found that ``North Korea has also expanded the size and sophistication of its ballistic missile forces--from close- range ballistic missiles (CRBMs) to ICBMs--and continues to conduct test launches.

In 2016, North Korea conducted an unprecedented number of ballistic missile tests.

Pyongyang is committed to developing a long-range, nuclear-armed missile that is capable of posing a direct threat to the United States;

it has publicly displayed its road-mobile ICBMs on multiple occasions.

We assess that North Korea has taken steps toward fielding an ICBM but has not flight-tested it.''.

(5) The Government of North Korea tested its sixth and largest nuclear device on September 3, 2017.

(6) The Government of North Korea has increased the pace of its missile testing, including the test of a submarine-launched ballistic missile, potentially furthering the development of the capability to attack the United States with a nuclear weapon.

(7) Financial transactions and investments that provide financial resources to the Government of North Korea, and that fail to incorporate adequate safeguards against the misuse of those financial resources, pose an undue risk of contributing to-- (A) weapons of mass destruction programs of that Government;

and (B) efforts to evade restrictions required by the United Nations Security Council on imports or exports of arms and related materiel, services, or technology by that Government.

(8) The strict enforcement of sanctions is essential to the efforts of the international community to achieve the peaceful, complete, verifiable, and irreversible dismantlement of weapons of mass destruction programs of the Government of North Korea.

SEC.

102.

SENSE OF CONGRESS.

It is the sense of Congress that-- (1) the United States is committed to working with its allies and partners to halt the nuclear and ballistic missile programs of North Korea through a policy of maximum pressure and diplomatic engagement;

(2) the imposition of sanctions, including those under this Act, should not be construed to limit the authority of the President to fully engage in diplomatic negotiations to further the policy objective described in paragraph (1);

(3) the successful use of sanctions to halt the nuclear and ballistic missile programs of North Korea is part of a broader diplomatic and economic strategy that relies on effective coordination among relevant Federal agencies and officials, as well as with international partners of the United States;

and (4) the coordination described in paragraph (3) should include proper vetting of external messaging and communications from all parts of the Executive branch to ensure that those communications are an intentional component of and aligned with the strategy of the United States with respect to North Korea.

SEC.

103.

DEFINITIONS.

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

9202), as amended by subsection (b).

(b) Amendments to Definitions in North Korea Sanctions and Policy Enhancement Act of 2016.--Section 3 of the North Korea Sanctions and Policy Enhancement Act of 2016 (22 U.S.C.

9202) is amended-- (1) in paragraph (1)(A), in the matter preceding clause (i), by striking ``Executive Order No.

13694'' and all that follows through ``to the extent that'' and inserting the following:

``Executive Order 13694 (50 U.S.C.

1701 note;

relating to blocking the property of certain persons engaging in significant malicious cyber-enabled activities), Executive Order 13722 (50 U.S.C.

1701 note;

relating to blocking the property of the Government of North Korea and the Workers' Party of Korea, and prohibiting certain transactions with respect to North Korea), or Executive Order 13810 (82 Fed.

Reg.

44705;

relating to imposing additional sanctions with respect to North Korea), to the extent that'';

and (2) in paragraph (2)(A), by striking ``or 2321 (2016)'' and inserting ``2321 (2016), 2356 (2017), 2371 (2017), or 2375 (2017)''.

Subtitle A--Expansion of Sanctions and Related Matters SEC.

111.

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

(a) In General.--Title II of the North Korea Sanctions and Policy Enhancement Act of 2016 (22 U.S.C.

9221 et seq.) is amended by inserting after the item relating to section 201A the following:

``SEC.

201B.

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

``(a) In General.--The Secretary of the Treasury shall impose one or more of the sanctions described in subsection (b) with respect to a foreign financial institution that the Secretary determines, on or after the date that is 90 days after the date of the enactment of the Otto Warmbier Banking Restrictions Involving North Korea Act of 2017, knowingly provides significant financial services to any person designated for the imposition of sanctions under-- ``(1) subsection (a) or (b) of section 104;

``(2) an applicable Executive order;

or ``(3) an applicable United Nations Security Council resolution.

``(b) Sanctions Described.--The sanctions that may be imposed with respect to a foreign financial institution subject to subsection (a) are the following:

``(1) Asset blocking.--The Secretary may block and prohibit, pursuant to the International Emergency Economic Powers Act (50 U.S.C.

1701 et seq.), all transactions in all property and interests in property of the foreign financial institution if such property and interests in property are in the United States, come within the United States, or are or come within the possession or control of a United States person.

``(2) Restrictions on correspondent and payable-through accounts.--The Secretary may prohibit, or impose strict conditions on, the opening or maintaining in the United States of a correspondent account or a payable-through account by the foreign financial institution.

``(c) Implementation;

Penalties.-- ``(1) Implementation.--The President may exercise all authorities provided under sections 203 and 205 of the International Emergency Economic Powers Act (50 U.S.C.

1702 and 1704) to carry out this section.

``(2) Penalties.--A person that violates, attempts to violate, conspires to violate, or causes a violation of this section or any regulation, license, or order issued to carry out this section shall be subject to the penalties set forth in subsections (b) and (c) of section 206 of the International Emergency Economic Powers Act (50 U.S.C.

1705) to the same extent as a person that commits an unlawful act described in subsection (a) of that section.

``(d) Regulations.--Not later than 120 days after the date of the enactment of the Otto Warmbier Banking Restrictions Involving North Korea Act of 2017, the President shall, as appropriate, prescribe regulations to carry out this section.

``(e) Definitions.--In this section:

``(1) Account;

correspondent account;

payable-through account.--The terms `account', `correspondent account', and `payable-through account' have the meanings given those terms in section 5318A of title 31, United States Code.

``(2) Financial institution.--The term `financial institution' means a financial institution specified in subparagraph (A), (B), (C), (D), (E), (F), (G), (H), (I), (J), (M), or (Y) of section 5312(a)(2) of title 31, United States Code.

``(3) Foreign financial institution.--The term `foreign financial institution' shall have the meaning of that term as determined by the Secretary of the Treasury.

``(4) Knowingly.--The term `knowingly', with respect to conduct, a circumstance, or a result, means that a person has actual knowledge, or should have known, of the conduct, the circumstance, or the result.''.

(b) Clerical Amendment.--The table of contents for the North Korea Sanctions and Policy Enhancement Act of 2016 is amended by inserting after the item relating to section 201A the following:

``201B.

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

SEC.

112.

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

(a) In General.--Section 210 of the North Korea Sanctions and Policy Enhancement Act of 2016 (22 U.S.C.

9230) is amended-- (1) by striking ``United States sanctions'' and all that follows through ``the date of the enactment of this Act'' and inserting ``United States sanctions provided for in Executive Order 13687 (50 U.S.C.

1701 note;

relating to imposing additional sanctions with respect to North Korea), Executive Order 13694 (50 U.S.C.

1701 note;

relating to blocking the property of certain persons engaging in significant malicious cyber-enabled activities), Executive Order 13722 (50 U.S.C.

note;

relating to blocking the property of the Government of North Korea and the Workers' Party of Korea, and prohibiting certain transactions with respect to North Korea), or Executive Order 13810 (82 Fed.

Reg.