[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 2050 Introduced in Senate (IS)]
<DOC>
116th CONGRESS
1st Session
S. 2050
To require global economic and political pressure to support diplomatic
denuclearization of the Korean Peninsula, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 28 (legislative day, June 27), 2019
Mr. Gardner (for himself and Mr. Markey) introduced the following bill;
which was read twice and referred to the Committee on Foreign Relations
_______________________________________________________________________
A BILL
To require global economic and political pressure to support diplomatic
denuclearization of the Korean Peninsula, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Leverage to
Enhance Effective Diplomacy Act of 2019'' or the ``LEED Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--REVIEW OF STRATEGY AND POLICY TOWARD THE DEMOCRATIC PEOPLE'S
REPUBLIC OF KOREA
Sec. 101. Findings.
Sec. 102. Sense of Congress.
Sec. 103. Addressing the evolving threats posed by and capabilities of
the Democratic People's Republic of Korea.
Sec. 104. Briefing on United States engagement with the Democratic
People's Republic of Korea.
Sec. 105. Briefing and strategy relating to use of rocket fuels for
ballistic missiles by the Democratic
People's Republic of Korea.
Sec. 106. Briefing and strategy relating to efforts by the Russian
Federation to block enforcement of United
Nations sanctions.
Sec. 107. Appropriate congressional committees defined.
TITLE II--MEASURES TO ADDRESS THE THREATS POSED BY AND CAPABILITIES OF
THE DEMOCRATIC PEOPLE'S REPUBLIC OF KOREA
Sec. 201. Report on effecting a strategy to diplomatically and
economically pressure the Democratic
People's Republic of Korea.
Sec. 202. Authorization to alter United States relations with countries
enabling the Democratic People's Republic
of Korea.
Sec. 203. Authorization to terminate or reduce United States foreign
assistance to countries enabling the
Democratic People's Republic of Korea.
Sec. 204. Appropriate congressional committees defined.
TITLE III--STRATEGY TO END USE OF NORTH KOREAN LABORERS BY OTHER
COUNTRIES
Sec. 301. Strategy to end use of North Korean laborers and human rights
violations.
Sec. 302. Amendment of reporting requirement regarding strategy to
promote North Korean human rights.
TITLE IV--ENHANCING SANCTIONS WITH RESPECT TO THE DEMOCRATIC PEOPLE'S
REPUBLIC OF KOREA
Sec. 401. Sanctions related to enablers of the Democratic People's
Republic of Korea.
Sec. 402. Modification of penalties relating to sanctions.
Sec. 403. Enhancement of cargo screening criteria.
Sec. 404. Enforcement of United Nations sanctions with respect to crude
oil and refined petroleum products.
Sec. 405. Sanctions with respect to sourcing, manufacture, trade, or
distribution of illicit substances.
Sec. 406. Report on certain entities conducting business with the
Democratic People's Republic of Korea.
Sec. 407. Enhancing the review process for changes to sanctions and
rulemaking.
Sec. 408. Reinforcing global export controls.
Sec. 409. Additional resources to detect evasion of sanctions targeting
the Democratic People's Republic of Korea.
Sec. 410. Briefing on evasion of sanctions targeting the Democratic
People's Republic of Korea.
Sec. 411. Briefing on illicit use of virtual currencies by the
Democratic People's Republic of Korea.
Sec. 412. Briefing on cross-border flows of fentanyl and other illicit
substances.
Sec. 413. Briefing on United States citizens detained by the Democratic
People's Republic of Korea.
Sec. 414. Addition of discussion of sanctions evasion to annual report
of the United States-China Economic and
Security Review Commission.
Sec. 415. Exception relating to importation of goods.
Sec. 416. Appropriate congressional committees defined.
Sec. 417. Effective date.
TITLE V--MISCELLANEOUS
Sec. 501. Authority to consolidate reports and briefings.
TITLE I--REVIEW OF STRATEGY AND POLICY TOWARD THE DEMOCRATIC PEOPLE'S
REPUBLIC OF KOREA
SEC. 101. FINDINGS.
Congress makes the following findings:
(1) The Government of the Democratic People's Republic of
Korea has flagrantly defied the international community by
illicitly developing its nuclear and ballistic missile
programs, in violation of United Nations Security Council
Resolutions 1718 (2006), 1874 (2009), 2087 (2013), 2094 (2013),
2270 (2016), 2321 (2016), 2371 (2017), 2375 (2017), and 2397
(2017).
(2) The March 5, 2019, report of the Panel of Experts
established pursuant to United Nations Security Council
Resolution 1874 (2009) highlighted several deficiencies in the
enforcement of sanctions with respect to the Democratic
People's Republic of Korea.
(3) The Panel of Experts report illustrated that the
People's Republic of China and the Russian Federation are among
those countries not fully implementing multilateral sanctions
and that the Russian Federation has impeded efforts by the
United States to expose and address illegal ship-to-ship
transfers.
(4) Despite known deficiencies in global sanctions
implementation, the pace of United States sanctions
designations with respect to the Democratic People's Republic
of Korea has slowed noticeably, even as relevant United States
law, including the North Korea Sanctions and Policy Enhancement
Act of 2016 (22 U.S.C. 9201 et seq.) and the Asia Reassurance
Initiative Act of 2018 (Public Law 115-409), mandates the
imposition of United States sanctions for behaviors described
in the Panel of Experts report, including human rights
violations and malign activities in cyberspace.
SEC. 102. SENSE OF CONGRESS.
It is the sense of Congress that--
(1) the United States is committed to the peaceful pursuit
of the complete, verifiable, and irreversible dismantlement of
the illicit weapons programs of the Democratic People's
Republic of Korea through a combination of pressure and
engagement;
(2) meaningful advancement in relations between the United
States and the Democratic People's Republic of Korea is
directly contingent on significant progress by the Democratic
People's Republic of Korea toward dismantling its weapons of
mass destruction and associated delivery systems, ceasing its
human rights violations, complying with United Nations Security
Council resolutions, repatriating United States citizens and
the citizens of other countries, instituting political
openness, and establishing financial transparency; and
(3) the Democratic People's Republic of Korea should
immediately resume efforts to identify and return the remains
of members of the Armed Forces of the United States killed in
action during the Korean War, and should immediately return to
the United States the U.S.S. Pueblo, illegally captured by the
Democratic People's Republic of Korea on January 23, 1968.
SEC. 103. ADDRESSING THE EVOLVING THREATS POSED BY AND CAPABILITIES OF
THE DEMOCRATIC PEOPLE'S REPUBLIC OF KOREA.
(a) In General.--Not later than 60 days after the date of the
enactment of this Act, and every 180 days thereafter until the date
that is 2 years after such date of enactment, the Director of National
Intelligence, in consultation with the Secretary of State and the
Secretary of Defense, and, as appropriate, the Secretary of the
Treasury and the Administrator of the Drug Enforcement Administration,
shall brief the appropriate congressional committees on--
(1) the evolving threats posed by and capabilities of the
Democratic People's Republic of Korea; and
(2) United States efforts to mitigate and respond to those
threats and capabilities.
(b) Elements.--Each briefing under subsection (a) shall address the
following:
(1) An assessment of the status of the nuclear and
ballistic missile programs of the Democratic People's Republic
of Korea, including what elements constitute such programs, and
any technological advancements, disruptions, or setbacks to
such programs during--
(A) in the case of the first such briefing, the 60-
day period preceding the briefing; and
(B) in the case of any subsequent such briefing,
the 180-day period preceding the briefing.
(2) An assessment of the sources, methods, and funding
mechanisms of the Democratic People's Republic of Korea for
procuring critical components for its nuclear and ballistic
missile programs, including liquid and solid rocket fuels and
components, navigation and guidance systems, computer and
electrical components, and specialized materials.
(3) An assessment of--
(A) the cyber capabilities of the Democratic
People's Republic of Korea, including its efforts to
conduct cyber and corporate espionage, to commit
illicit commercial and financial activities through
international cyber systems, and to suppress opposition
to and spread propaganda in support of its nuclear and
ballistic missile activities; and
(B) any foreign entities that may be enhancing the
capacity of the Democratic People's Republic of Korea
to conduct malicious cyber-enabled activities,
including by providing internet infrastructure.
(4) A summary of activities of the Democratic People's
Republic of Korea relating to evading sanctions imposed by the
United States or the United Nations Security Council, including
an assessment of the sourcing, manufacture, trade, or
distribution of methamphetamines, narcotics (including opioids
such as fentanyl), and other illicit substances and any
associated precursor chemicals, including by state-owned
entities, other entities (including universities), and
individuals, for the purpose of financing or otherwise
supporting the nuclear and ballistic missile programs of the
Democratic People's Republic of Korea.
SEC. 104. BRIEFING ON UNITED STATES ENGAGEMENT WITH THE DEMOCRATIC
PEOPLE'S REPUBLIC OF KOREA.
Not later than 30 days after the date of the enactment of this Act,
and regularly thereafter until the date that is 2 years after such date
of enactment, the Secretary of State shall brief the appropriate
congressional committees on the status of any United States diplomatic
engagement with the Government of the Democratic People's Republic of
Korea, including with respect to efforts to secure the release of
United States citizens detained in the Democratic People's Republic of
Korea.
SEC. 105. BRIEFING AND STRATEGY RELATING TO USE OF ROCKET FUELS FOR
BALLISTIC MISSILES BY THE DEMOCRATIC PEOPLE'S REPUBLIC OF
KOREA.
(a) Briefing Required.--
(1) In general.--Not later than 90 days after the date of
the enactment of this Act, the Director of National
Intelligence, in conjunction with the Secretary of State, shall
brief the appropriate congressional committees on the use by
the Democratic People's Republic of Korea of unsymmetrical
dimethyl hydrazine, solid fuels, and other rocket fuels to
power its ballistic missiles.
(2) Elements.--The briefing under paragraph (1) shall
include the following:
(A) An assessment of each type of rocket fuel the
Democratic People's Republic of Korea uses, or
potentially may use, to power its ballistic missiles,
including the chemical precursors, production process,
and required production equipment for each such type of
rocket fuel.
(B) With respect to each such type of rocket fuel,
an assessment of the following:
(i) Whether the use of that type of rocket
fuel by the Democratic People's Republic of
Korea is prohibited under United Nations
Security Council resolutions, other
multilateral sanctions imposed with respect to
the Democratic People's Republic of Korea, or
sanctions imposed by the United States with
respect to the Democratic People's Republic of
Korea.
(ii) Whether the Democratic People's
Republic of Korea imports that type of rocket
fuel as a finished product or imports chemical
precursors and manufactures the finished
product.
(iii) The countries from which the
Democratic People's Republic of Korea imports
that type of rocket fuel as a finished product
or from which the Democratic People's Republic
of Korea imports the chemical precursors and
equipment to manufacture that type of rocket
fuel.
(iv) The size and locations of the
Democratic People's Republic of Korea's
stockpiles, if any, of that type of rocket
fuel.
(v) Whether that type of rocket fuel can be
attributed to its original exporter based on
unique chemical signatures or other relevant
identifying information.
(b) Strategy Required.--The Secretary of State, in consultation
with the heads of relevant agencies, shall develop a diplomatic
strategy to end the transfer of all rocket fuels and chemical
precursors for rocket fuels to the Democratic People's Republic of
Korea.
(c) Sense of Congress.--It is the sense of Congress that the United
States Ambassador to the United Nations should introduce a resolution
to the United Nations Security Council to request that the Panel of
Experts on the Democratic People's Republic of Korea established by
United Nations Security Council Resolution 1874 (2009) investigate the
importation and manufacture by the Democratic People's Republic of
Korea of rocket and ballistic missile fuels, including unsymmetrical
dimethyl hydrazine, solid fuels, and other fuels or their chemical
precursors.
SEC. 106. BRIEFING AND STRATEGY RELATING TO EFFORTS BY THE RUSSIAN
FEDERATION TO BLOCK ENFORCEMENT OF UNITED NATIONS
SANCTIONS.
(a) Briefing Required.--
(1) In general.--Not later than 90 days after the date of
the enactment of this Act, the Secretary of State shall brief
the appropriate congressional committees on the efforts of the
Russian Federation to undercut enforcement of United Nations
sanctions with respect to the Democratic People's Republic of
Korea, with particular focus on the limit set by the United
Nations Security Council on the supply, sale, or transfer to
the Democratic People's Republic of Korea of all refined
petroleum products in excess of an aggregate amount of 500,000
barrels during any 12-month period beginning on or after
January 1, 2018.
(2) Elements.--The briefing under paragraph (1) shall
include the following:
(A) An assessment of the likelihood that the
patterns of behavior illustrated by Annexes 1-3 to the
March 5, 2019, report of the Panel of Experts
established pursuant to United Nations Security Council
Resolution 1874 (2009), including efforts of the
Russian Federation to dismiss findings, will continue.
(B) A description of steps being taken to ensure,
despite the opposition of the Russian Federation, a
timely decision by the United Nations Security Council
to act to halt all refined petroleum product exports to
the Democratic People's Republic of Korea in each 12-
month period that the limit described in paragraph (1)
is exceeded.
(C) A description of any other United Nations
sanctions with respect to the Democratic People's
Republic of Korea being disregarded or actively
undercut by the Russian Federation.
(b) Strategy Required.--The Secretary of State, in consultation
with the heads of relevant agencies, shall develop a diplomatic
strategy to counter efforts by the Russian Federation to undercut
enforcement of United Nations sanctions, including the limit described
in subsection (a)(1), with respect to the Democratic People's Republic
of Korea.
SEC. 107. APPROPRIATE CONGRESSIONAL COMMITTEES DEFINED.
In this title, the term ``appropriate congressional committees''
means the Committee on Foreign Relations of the Senate and the
Committee on Foreign Affairs of the House of Representatives.
TITLE II--MEASURES TO ADDRESS THE THREATS POSED BY AND CAPABILITIES OF
THE DEMOCRATIC PEOPLE'S REPUBLIC OF KOREA
SEC. 201. REPORT ON EFFECTING A STRATEGY TO DIPLOMATICALLY AND
ECONOMICALLY PRESSURE THE DEMOCRATIC PEOPLE'S REPUBLIC OF
KOREA.
(a) In General.--Not later than 90 days after the date of the
enactment of this Act, and every 180 days thereafter, the Secretary of
State shall submit to the appropriate congressional committees a report
on actions taken by the United States to diplomatically and
economically pressure the Democratic People's Republic of Korea.
(b) Elements.--Each report required by subsection (a) shall include
the following:
(1) A description of the actions taken by the Secretary of
State to consult with governments around the world, with the
purpose of inducing those governments to diplomatically and
economically pressure the Democratic People's Republic of
Korea.
(2) A description of the actions taken by those governments
to implement measures to diplomatically and economically
pressure the Democratic People's Republic of Korea.
(3) A list of countries the governments of which the
Secretary has determined to be noncooperative with respect to
implementing measures to diplomatically and economically
pressure the Democratic People's Republic of Korea.
(4) A plan of action to engage with, and increase
cooperation with respect to the Democratic People's Republic of
Korea by, the governments of the countries on the list required
by paragraph (3).
(c) Form of Report.--Each report required by subsection (a) shall
be submitted in unclassified form but may include a classified annex.
SEC. 202. AUTHORIZATION TO ALTER UNITED STATES RELATIONS WITH COUNTRIES
ENABLING THE DEMOCRATIC PEOPLE'S REPUBLIC OF KOREA.
(a) In General.--The Secretary of State may take such actions as
are necessary to induce countries on the list required by section
201(b)(3) to take measures to diplomatically and economically pressure
the Democratic People's Republic of Korea.
(b) Actions Included.--Actions described in subsection (a) may
include--
(1) reduction of the diplomatic presence in the United
States of countries on the list required by section 201(b)(3);
and
(2) reduction of the diplomatic presence of the United
States in those countries.
(c) Consultation.--Not less than 15 days before taking any action
under subsection (a), the Secretary shall consult with the appropriate
congressional committees with respect to the action.
(d) Sense of Congress.--It is the sense of Congress that inaction
by certain countries in the Indo-Pacific region to reduce cooperation
with the Democratic People's Republic of Korea hinders the deepening of
strategic relationships with the United States.
SEC. 203. AUTHORIZATION TO TERMINATE OR REDUCE UNITED STATES FOREIGN
ASSISTANCE TO COUNTRIES ENABLING THE DEMOCRATIC PEOPLE'S
REPUBLIC OF KOREA.
(a) In General.--The Secretary of State may terminate or reduce
United States foreign assistance to countries on the list required by
section 201(b)(3).
(b) Assistance Included.--Assistance terminated or reduced under
subsection (a) may include--
(1) assistance under chapter 4 of part II of the Foreign
Assistance Act of 1961 (22 U.S.C. 2346 et seq.; relating to the
Economic Support Fund);
(2) military assistance provided pursuant to section 23 of
the Arms Export Control Act (22 U.S.C. 2763; relating to the
Foreign Military Financing Program); and
(3) assistance provided under chapter 5 of part II of the
Foreign Assistance Act of 1961 (22 U.S.C. 2347 et seq.;
relating to international military education and training).
(c) Consultation.--Not less than 15 days before taking any action
under subsection (a), the Secretary shall consult with the appropriate
congressional committees with respect to the action.
(d) Sense of Congress.--It is the sense of Congress that inaction
by certain countries in the Indo-Pacific region to reduce cooperation
with the Democratic People's Republic of Korea hinders the deepening of
strategic relationships with the United States.
SEC. 204. APPROPRIATE CONGRESSIONAL COMMITTEES DEFINED.
In this title, the term ``appropriate congressional committees''
means--
(1) the Committee on Foreign Relations and the Committee on
Appropriations of the Senate; and
(2) the Committee on Foreign Affairs and the Committee on
Appropriations of the House of Representatives.
TITLE III--STRATEGY TO END USE OF NORTH KOREAN LABORERS BY OTHER
COUNTRIES
SEC. 301. STRATEGY TO END USE OF NORTH KOREAN LABORERS AND HUMAN RIGHTS
VIOLATIONS.
(a) In General.--Not later than 60 days after the date of the
enactment of this Act, the Secretary of State shall brief the
appropriate congressional committees on a strategy for leveraging the
sanctions imposed pursuant to section 302B of the North Korea Sanctions
and Policy Enhancement Act of 2016 (22 U.S.C. 9241b) to convince
countries that import North Korean laborers in a manner described in
section 104(b)(1)(L) of that Act (22 U.S.C. 9214(b)(1)(L)) to end that
practice.
(b) Appropriate Congressional Committees Defined.--In this section,
the term ``appropriate congressional committees'' means--
(1) the Committee on Foreign Relations and the Committee on
Banking, Housing, and Urban Affairs of the Senate; and
(2) the Committee on Foreign Affairs and the Committee on
Financial Services of the House of Representatives.
SEC. 302. AMENDMENT OF REPORTING REQUIREMENT REGARDING STRATEGY TO
PROMOTE NORTH KOREAN HUMAN RIGHTS.
(1) In general.--Section 302(b) of the North Korea
Sanctions and Policy Enhancement Act of 2016 (22 U.S.C.
9241(b)) is amended--
(A) in paragraph (2), by striking ``and'' at the
end;
(B) in paragraph (3), by striking ``104(b)(1)(M).''
and inserting ``104(b)(1)(L); and''; and
(C) by adding at the end the following new
paragraphs:
``(4) a list of countries that have not repatriated to the
Democratic People's Republic of Korea--
``(A) all nationals of the Democratic People's
Republic of Korea earning income in their
jurisdictions; and
``(B) all safety oversight attaches of the
Democratic People's Republic of Korea; and
``(5) for each country on the list required by paragraph
(4)--
``(A) a list of the entities that employ
significant numbers of nationals of the Democratic
People's Republic of Korea earning income in the
jurisdiction of that country; and
``(B) an assessment of which national or local
government agencies and officials are involved in
facilitating the work, presence, or authorization for
work of nationals of the Democratic People's Republic
of Korea earning income in the jurisdiction of the
country and of safety oversight attaches of the
Democratic People's Republic of Korea.''.
(2) Frequency of reports clarified.--Section 302(a) of the
North Korea Sanctions and Policy Enhancement Act of 2016 (22
U.S.C. 9241(a)) is amended by striking ``periodically'' and
inserting ``every 120 days''.
TITLE IV--ENHANCING SANCTIONS WITH RESPECT TO THE DEMOCRATIC PEOPLE'S
REPUBLIC OF KOREA
SEC. 401. SANCTIONS RELATED TO ENABLERS OF THE DEMOCRATIC PEOPLE'S
REPUBLIC OF KOREA.
Section 104(d) of the North Korea Sanctions and Policy Enhancement
Act of 2016 (22 U.S.C. 9214(d)) is amended to read as follows:
``(d) Application to Certain Persons, Subsidiaries, and Agents.--
The designation of a person under subsection (a) or (b) and the
blocking of property and interests in property under subsection (c)
shall apply with respect to a person who is determined--
``(1) to be owned or controlled by, or to have acted or
purported to have acted for or on behalf of, directly or
indirectly, any person whose property and interests in property
are blocked pursuant to this section; or
``(2) to knowingly assist, sponsor, or provide significant
financial, material, or technological support to or for a
person designated under--
``(A) subsection (a) or (b);
``(B) an applicable Executive order; or
``(C) an applicable United Nations Security Council
resolution.''.
SEC. 402. MODIFICATION OF PENALTIES RELATING TO SANCTIONS.
Section 104(f) of the North Korea Sanctions and Policy Enhancement
Act of 2016 (22 U.S.C. 9214(f)) is amended to read as follows:
``(f) Penalties.--
``(1) Prohibited conduct.--It shall be unlawful for any
person--
``(A) to engage in, conspire or attempt to engage
in, or cause any of the conduct described in paragraphs
(1) through (14) of subsection (a);
``(B) to knowingly evade or avoid a prohibition on
such conduct or the imposition of a sanction or penalty
relating to such conduct; or
``(C) to violate, attempt to violate, conspire to
violate, or cause a violation of any license, order,
regulation, or prohibition issued to carry out this
section.
``(2) Civil penalties.--A person who engages in an unlawful
act described in paragraph (1) shall be subject to a civil
penalty in an amount not to exceed the greater of--
``(A) $500,000; or
``(B) an amount that is twice the amount of the
transaction that is the basis of the violation with
respect to which the penalty is imposed.
``(3) Criminal penalties.--A person who willfully engages
in an unlawful act described in paragraph (1) shall, upon
conviction, be fined not more than $1,000,000 and, in the case
of an individual, imprisoned for not more than 20 years, or
both.
``(4) Rule of construction.--The civil and criminal
penalties under paragraphs (2) and (3) for engaging an unlawful
act described in paragraph (1) shall be imposed with respect to
a person without regard to whether the President has designated
the person for the imposition of sanctions under this section
or pursuant to the International Emergency Economic Powers Act
(50 U.S.C. 1701 et seq.).''.
SEC. 403. ENHANCEMENT OF CARGO SCREENING CRITERIA.
Section 205(c)(1) of the North Korea Sanctions and Policy
Enhancement Act of 2016 (22 U.S.C. 9225(c)(1)) is amended--
(1) in subparagraph (B), by striking ``; or'' and inserting
a semicolon;
(2) in subparagraph (C), by striking the period and
inserting ``; or''; and
(3) by adding at the end the following:
``(D) originates in a jurisdiction or a
geographical area that the Secretary determines is
otherwise of concern with respect to evasion of
sanctions mandated with respect to North Korea.''.
SEC. 404. ENFORCEMENT OF UNITED NATIONS SANCTIONS WITH RESPECT TO CRUDE
OIL AND REFINED PETROLEUM PRODUCTS.
(a) In General.--Title II of the North Korea Sanctions and Policy
Enhancement Act of 2016 (22 U.S.C. 9221 et seq.) is amended by
inserting the following:
``SEC. 212. ENFORCEMENT OF UNITED NATIONS SANCTIONS WITH RESPECT TO
CRUDE OIL AND REFINED PETROLEUM PRODUCTS.
``(a) In General.--The President shall impose one or more of the
sanctions described in subsection (c) on a person described in
subsection (b).
``(b) Person Described.--A person described in this subsection is a
person that--
``(1) the President determines knowingly, on or after the
date of the enactment of the Leverage to Enhance Effective
Diplomacy Act of 2019, directly or indirectly, supplies, sells,
or transfers crude oil to any entity or instrumentality of the
Government of North Korea or any person representing that
government; and
``(2) is organized under the laws of a jurisdiction that
the President determines to have exported more than the
aggregate amount of 4,000,000 barrels of crude oil during any
12-month period to North Korea.
``(c) Sanctions Described.--The sanctions described in this
subsection are the following:
``(1) Asset blocking.--The President may block and prohibit
all transactions in all property and interests in property of a
person described in subsection (b) if such property and
interests in property are in the United States, come within the
United States, or are or come within the possession or control
of a United States person.
``(2) Ban on investment in equity or debt.--The President
may, pursuant to such regulations or guidelines as the
President may prescribe, prohibit any United States person from
investing in or purchasing significant amounts of equity or
debt instruments of the person described in subsection (b).
``(3) Exclusion of corporate officers.--The President may
direct the Secretary of State to deny a visa to, and the
Secretary of Homeland Security to exclude from the United
States, any alien that the President determines is a corporate
officer or principal of, or a shareholder with a controlling
interest in, the person described in subsection (b).
``(4) Sanctions on principal executive officers.--The
President may impose on the principal executive officer or
officers of the person described in subsection (b), or on
persons performing similar functions and with similar
authorities as such officer or officers, any of the sanctions
under this subsection.
``(d) Waivers.--
``(1) Efforts to enforce united nations limits.--The
President may waive the application of sanctions under
subsection (a) if the President certifies to Congress that the
jurisdiction described in subsection (b)(2) is applying
appropriate effort to--
``(A) fulfill its obligation under international
law to prohibit its nationals, individuals otherwise
subject to its jurisdiction, entities incorporated in
its territory or subject to its jurisdiction, and
vessels flying its flag from facilitating or engaging
in ship-to-ship transfers to or from North Korea-
flagged vessels of any goods or items that are being
supplied, sold, or transferred to or from North Korea,
including refined petroleum products and coal; and
``(B) reduce, towards the limit established by the
United Nations Security Council, the aggregate amount
of crude oil exported from or re-exported through the
jurisdiction to North Korea.
``(2) National security.--The President may waive the
application of sanctions under subsection (a) if the President
certifies to Congress that the waiver is important to the
national security interest of the United States.
``(3) Briefing required.--If the President waives the
application of sanctions under paragraph (1) or (2), the
President shall brief the following committees on the waiver:
``(A) The Committee on Banking, Housing, and Urban
Affairs and the Committee on Foreign Relations of the
Senate.
``(B) The Committee on Financial Services and the
Committee on Foreign Affairs of the House of
Representatives.
``(e) United States Person Defined.--In this section, the term
`United States person' means--
``(1) a United States citizen or an alien lawfully admitted
for permanent residence to the United States; or
``(2) an entity organized under the laws of the United
States or of any jurisdiction within the United States,
including a foreign branch of such an entity.''.
(b) Clerical Amendment.--The table of contents for the North Korea
Sanctions and Policy Enhancement Act of 2016 is amended by inserting
after the item relating to section 211 the following:
``Sec. 212. Enforcement of United Nations sanctions with respect to
crude oil and refined petroleum
products.''.
SEC. 405. SANCTIONS WITH RESPECT TO SOURCING, MANUFACTURE, TRADE, OR
DISTRIBUTION OF ILLICIT SUBSTANCES.
Section 104(a)(6) of the North Korea Sanctions and Policy
Enhancement Act of 2016 (22 U.S.C. 9214(a)(6)) is amended by striking
``narcotics trafficking'' and inserting ``trafficking of, or
facilitation of the souring, manufacture, trade, or distribution of
methamphetamines, narcotics including opioids such as fentanyl, and
other illicit substances,''.
SEC. 406. REPORT ON CERTAIN ENTITIES CONDUCTING BUSINESS WITH THE
DEMOCRATIC PEOPLE'S REPUBLIC OF KOREA.
(a) In General.--Not later than 90 days after the date of the date
of the enactment of this Act, the President shall submit to the
appropriate congressional committees a report that includes the
following:
(1) A list of entities that, during the 12-month period
preceding submission of the report, have imported or exported
any goods, services, or technology to or from the Democratic
People's Republic of Korea valued at more than $100,000,000.
(2) A list of entities in the People's Republic of China,
the Russian Federation, and other countries outside of the
Democratic People's Republic of Korea that are known to employ
significant numbers of laborers from the Democratic People's
Republic of Korea.
(3) For each country that hosts significant numbers of such
laborers, a list of specific economic sectors in which such
laborers are most commonly used.
(b) Form.--The report required by subsection (a) shall be submitted
in unclassified form, but may include a classified annex.
(c) Briefing.--The President shall brief the appropriate
congressional committees, in a classified setting if necessary, not
later than 30 days after the delivery of the report required by
subsection (a) on whether the entities identified in subsection (a)(2)
meet the criteria for designation for the imposition of sanctions under
applicable provisions of law.
SEC. 407. ENHANCING THE REVIEW PROCESS FOR CHANGES TO SANCTIONS AND
RULEMAKING.
Section 208 of the North Korea Sanctions and Policy Enhancement Act
of 2016 (22 U.S.C. 9228) is amended by adding at the end the following:
``(e) Certification Requirement for Removal of Certain Persons From
the List of Specially Designated Nationals and Blocked Persons.--
``(1) In general.--On and after the date of the enactment
of the Leverage to Enhance Effective Diplomacy Act of 2019, the
President may not remove a person described in paragraph (2)
from the list of specially designated nationals and blocked
persons maintained by the Office of Foreign Asset Control of
the Department of the Treasury unless and until the President
submits to the appropriate congressional committees a
certification described in paragraph (3) with respect to the
person.
``(2) Persons described.--A person described in this
paragraph is a person the property and interests in property of
which are blocked pursuant to the International Emergency
Economic Powers Act (50 U.S.C. 1701 et seq.) under this Act, an
applicable Executive order, or an applicable United Nations
Security Council resolution.
``(3) Certification described.--A certification described
in this paragraph with respect to a person is a certification
that the person is not engaging in conduct--
``(A) for which the person was included on the list
of specially designated nationals and blocked persons
by the Office of Foreign Assets Control; or
``(B) that violates applicable United States or
international laws.
``(4) Form.--A certification described in paragraph (3)
shall be submitted in unclassified form, but may include a
classified annex.
``(f) Certification Requirement for Removal of Designation of North
Korea as a Jurisdiction of Primary Money Laundering Concern.--
``(1) In general.--The President may not terminate the
designation of North Korea as a jurisdiction of primary money
laundering concern pursuant to section 5318A of title 31,
United States Code, unless the President submits to the
appropriate congressional committees a certification described
in paragraph (2) with respect to North Korea.
``(2) Certification described.--A certification described
in this paragraph is a certification that the Government of
North Korea--
``(A) is no longer using state-controlled financial
institutions and front companies to conduct
transactions that support the proliferation of weapons
of mass destruction and ballistic missiles;
``(B) has instituted sufficient bank supervision
and controls with respect to anti-money laundering and
combating the financing of terrorism;
``(C) is cooperating with United States law
enforcement and regulatory officials in obtaining
information about transactions originating in or routed
through or to North Korea; and
``(D) is no longer relying on the illicit and
corrupt activity of high-level officials to support its
government.
``(3) Form.--The certification described in paragraph (2)
shall be submitted in unclassified form, but may include a
classified annex.
``(g) Applicability of Congressional Review of Certain Agency
Rulemaking Relating to North Korea.--Notwithstanding any other
provision of law, any rule to amend or otherwise alter any provision of
part 510 of title 31, Code of Federal Regulations, that is published on
or after the date of the enactment of the Leverage to Enhance Effective
Diplomacy Act of 2019 shall be deemed to be a rule or major rule (as
the case may be) for purposes of chapter 8 of title 5, United States
Code, and shall be subject to all applicable requirements of that
chapter.''.
SEC. 408. REINFORCING GLOBAL EXPORT CONTROLS.
There are authorized to be appropriated to the Secretary of State
such sums as may be necessary to assess and, where necessary, to
enhance the adequacy of the export control regimes of United Nations
member countries, including through the use of action plans to
encourage and assist countries in adopting and using authorities
necessary to enforce sanctions and export controls required by United
Nations Security Council resolutions.
SEC. 409. ADDITIONAL RESOURCES TO DETECT EVASION OF SANCTIONS TARGETING
THE DEMOCRATIC PEOPLE'S REPUBLIC OF KOREA.
(a) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary of State and the Secretary of the
Treasury such sums as may be necessary to enhance the ability of the
Department of State and the Department of the Treasury to detect
evasion of sanctions targeting the Democratic People's Republic of
Korea, including through actions described in subsection (b).
(b) Assignment of Detailees.--The Secretary of the Treasury should
assign one additional detailee to each United States embassy or
consulate in each country that the Secretary, in consultation with the
Secretary of State, assesses to be commonly linked to evasion of
sanctions targeting the Democratic People's Republic of Korea.
(c) Sense of Congress.--It is the sense of Congress that the United
States should devote additional maritime patrol and reconnaissance
aircraft to areas known to be associated with maritime forms of
sanctions evasion by the Democratic People's Republic of Korea,
including ship-to-ship transfers of refined petroleum products, oil,
coal, and other goods and the export of arms by the Democratic People's
Republic of Korea, to enhance the capability of the United States to
detect and publicize such activities.
SEC. 410. BRIEFING ON EVASION OF SANCTIONS TARGETING THE DEMOCRATIC
PEOPLE'S REPUBLIC OF KOREA.
(a) In General.--Not later than 180 days after the date of the
enactment of this Act, and annually thereafter until the date that is 5
years after such date of enactment, the Secretary of State and the
Secretary of the Treasury shall brief the appropriate congressional
committees regarding evasion of sanctions targeting the Democratic
People's Republic of Korea.
(b) Elements.--Each briefing required by subsection (a) shall--
(1) cover each country described in section 409(b) by
discussing any known or suspected cases or types of sanctions
evasion that implicate that country; and
(2) be based on the input of detailees assigned as
described in that section.
SEC. 411. BRIEFING ON ILLICIT USE OF VIRTUAL CURRENCIES BY THE
DEMOCRATIC PEOPLE'S REPUBLIC OF KOREA.
(a) In General.--Not later than 180 days after the date of the
enactment of this Act, the Secretary of the Treasury shall brief the
appropriate congressional committees on the illicit use of virtual
currencies by the Democratic People's Republic of Korea.
(b) Elements.--The briefing required by subsection (a) shall--
(1) to the extent possible, provide an estimate of the
amount of fiat currency that the Democratic People's Republic
of Korea has been able to generate as of the date of the
briefing through conversion of virtual currency obtained by
illicit means including cyberattacks;
(2) describe known pathways through which the Democratic
People's Republic of Korea executes such conversions, with an
emphasis on identifying virtual currency exchanges used by the
Democratic People's Republic of Korea or its agents; and
(3) cover any known instances of purchases of goods or
services by the Democratic People's Republic of Korea using
virtual currency without converting that currency to fiat
currency before the purchases.
SEC. 412. BRIEFING ON CROSS-BORDER FLOWS OF FENTANYL AND OTHER ILLICIT
SUBSTANCES.
(a) In General.--Not later than 180 days after the date of the date
of the enactment of this Act, the Secretary of the Treasury shall brief
the appropriate congressional committees on the methods by which the
Democratic People's Republic of Korea produces and exports
methamphetamines and other narcotics, including opioids such as
fentanyl.
(b) Elements.--The briefing required by subsection (a) shall--
(1) provide estimates of the amounts of illicit substances
exported by the Democratic People's Republic of Korea and the
associated revenues;
(2) describe known pathways through which the Democratic
People's Republic of Korea procures precursors for and conducts
exports of such substances, with particular focus on exports
into the People's Republic of China; and
(3) assess the extent to which such pathways differ from
pathways used by the Democratic People's Republic of Korea to
export arms and other goods the export of which is prohibited.
SEC. 413. BRIEFING ON UNITED STATES CITIZENS DETAINED BY THE DEMOCRATIC
PEOPLE'S REPUBLIC OF KOREA.
(a) In General.--Notwithstanding any other provision of law, not
later than 30 days after the date of the enactment of this Act, and
every 180 days thereafter until the date that is 2 years after such
date of enactment, the Secretary of State shall brief the appropriate
congressional committees on United States citizens detained by the
Government of the Democratic People's Republic of Korea, including
United States citizens who are also citizens of other countries.
(b) Elements.--Each briefing required by subsection (a) shall, to
the extent practicable and appropriate, include, with respect to each
United States citizen detained by the Government of the Democratic
People's Republic of Korea, the following:
(1) The name of the United States citizen.
(2) A description of the circumstances surrounding the
detention of the United States citizen.
(3) An assessment of the health and welfare of the United
States citizen.
(4) An assessment of whether any United States Government
officials or foreign government officials have been provided
access to the United States citizen.
(5) A summary of any communications or comments by
officials of the Government of the Democratic People's Republic
of Korea regarding the detention and welfare of the United
States citizen.
(6) A summary of official communications by United States
Government officials or foreign government officials, or other
persons acting on behalf of those officials, regarding the
United States citizen, including efforts to secure the release
of the United States citizen.
(c) Interim Briefings.--During periods between briefings under
subsection (a), the Secretary of State shall brief the appropriate
congressional committees on any significant updates on the status and
welfare of any United States citizens detained by the Government of the
Democratic People's Republic of Korea.
SEC. 414. ADDITION OF DISCUSSION OF SANCTIONS EVASION TO ANNUAL REPORT
OF THE UNITED STATES-CHINA ECONOMIC AND SECURITY REVIEW
COMMISSION.
Section 1238(c)(2) of the Floyd D. Spence National Defense
Authorization Act for Fiscal Year 2001 (as enacted into law by Public
Law 106-398; 22 U.S.C. 7002(c)(2)) is amended by adding at the end the
following:
``(L) The evasion of sanctions targeting the
Democratic People's Republic of Korea by or involving
the People's Republic of China.''.
SEC. 415. EXCEPTION RELATING TO IMPORTATION OF GOODS.
(a) In General.--No provision affecting sanctions under this title
or an amendment made by this title shall apply to sanctions on the
importation of goods.
(b) Good Defined.--In this section, the term ``good'' means any
article, natural or manmade substance, material, supply or manufactured
product, including inspection and test equipment, and excluding
technical data.
SEC. 416. APPROPRIATE CONGRESSIONAL COMMITTEES DEFINED.
In this title, the term ``appropriate congressional committees''
means--
(1) the Committee on Foreign Relations and the Committee on
Banking, Housing, and Urban Affairs of the Senate; and
(2) the Committee on Foreign Affairs and the Committee on
Financial Services of the House of Representatives.
SEC. 417. EFFECTIVE DATE.
The amendments made by this title shall take effect on the date of
the enactment of this Act and apply with respect to conduct engaged on
or after such date of enactment.
TITLE V--MISCELLANEOUS
SEC. 501. AUTHORITY TO CONSOLIDATE REPORTS AND BRIEFINGS.
Any reports or briefings required to be submitted to Congress under
this Act or any amendments made by this Act that are subject to a
deadline for submission consisting of the same unit of time may be
consolidated into a single report or briefing. The consolidated report
or briefing shall contain all information required under this Act or
any amendment made by this Act with respect to the reports comprising
such consolidated report or briefing.
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