[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 667 Introduced in Senate (IS)]
<DOC>
116th CONGRESS
1st Session
S. 667
To impose sanctions with respect to the Democratic People's Republic of
Korea, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 5, 2019
Mr. Van Hollen (for himself and Mr. Toomey) introduced the following
bill; which was read twice and referred to the Committee on Banking,
Housing, and Urban Affairs
_______________________________________________________________________
A BILL
To impose sanctions with respect to the Democratic People's Republic of
Korea, 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 ``Otto Warmbier
Banking Restrictions Involving North Korea Act of 2019''.
(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.
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 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 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 I--SANCTIONS WITH RESPECT TO NORTH KOREA
SEC. 101. FINDINGS.
Congress finds the following:
(1) Since 2006, the United Nations Security Council has
adopted 10 resolutions imposing sanctions against North Korea
under chapter VII of the United Nations Charter, which--
(A) prohibit the use, development, and
proliferation of weapons of mass destruction by North
Korea;
(B) prohibit the supply, sale, or transfer of arms
and related materiel to or from North Korea;
(C) prohibit the transfer of luxury goods to North
Korea;
(D) restrict access by North Korea to financial
services that could contribute to nuclear, missile, or
other programs related to the development of weapons of
mass destruction;
(E) restrict North Korean shipping, including the
registration, reflagging, or insuring of North Korean
ships;
(F) prohibit, with limited exceptions, North Korean
exports of coal, precious metals, iron, vanadium, and
rare earth minerals;
(G) prohibit the transfer to North Korea of rocket,
aviation, or jet fuel, as well as gasoline,
condensates, and natural gas liquids;
(H) prohibit new work authorization for North
Korean laborers and require the repatriation of all
North Korean laborers by December 2019;
(I) prohibit exports of North Korean food and
agricultural products, including seafood;
(J) prohibit joint ventures or cooperative
commercial entities or expanding joint ventures with
North Korea;
(K) prohibit exports of North Korean textiles;
(L) require member countries of the United Nations
to seize, inspect, and impound any ship in its
jurisdiction that is suspected of violating Security
Council resolutions with respect to North Korea and to
interdict and inspect all cargo heading to or from
North Korea by land, sea, or air;
(M) limit the transfer to North Korea of refined
petroleum products and crude oil;
(N) ban the sale or transfer to North Korea of
industrial machinery, transportation vehicles,
electronics, iron, steel, and other metals;
(O) reduce North Korean diplomatic staff numbers in
member countries of the United Nations and expel any
North Korean diplomats found to be working on behalf of
a person subject to sanctions or assisting in sanctions
evasion;
(P) limit North Korean diplomatic missions abroad
with respect to staff size and access to banking
privileges and prohibit commerce from being conducted
out of North Korean consular or diplomatic offices;
(Q) require member states of the United Nations to
close representative offices, subsidiaries, and bank
accounts in North Korea;
(R) prohibit countries from providing or receiving
military training to or from North Korea or hosting
North Koreans for specialized teaching or training that
could contribute to the programs of North Korea related
to the development of weapons of mass destruction;
(S) ban countries from granting landing and flyover
rights to North Korean aircraft; and
(T) prohibit trade in statuary of North Korean
origin.
(2) The Government of North Korea has threatened to carry
out nuclear attacks against the United States, South Korea, and
Japan.
(3) The Government of North Korea tested its sixth and
largest nuclear device on September 3, 2017.
(4) According to a report by the International Atomic
Energy Agency released in August 2018, ``The continuation and
further development of the DPRK's nuclear programme and related
statements by the DPRK are a cause for grave concern. The
DPRK's nuclear activities, including those in relation to the
Yongbyon Experimental Nuclear Power Plant (5 MW(e)) reactor,
the use of the building which houses the reported centrifuge
enrichment facility and the construction at the light water
reactor, as well as the DPRK's sixth nuclear test, are clear
violations of relevant UN Security Council resolutions,
including resolution 2375 (2017) and are deeply regrettable.''.
(5) In July 2018, Secretary of State Mike Pompeo testified
to the Committee on Foreign Relations of the Senate that North
Korea ``continue[s] to produce fissile material'' despite
public pledges by North Korean leader Kim Jong-un to
denuclearize.
(6) The 2019 Missile Defense Review conducted by the
Department of Defense states that North Korea ``continues to
pose an extraordinary threat and the United States must remain
vigilant. In the past, North Korea frequently issued explicit
nuclear missile threats against the United States and allies,
all the while working aggressively to field the capability to
strike the U.S. homeland with nuclear-armed ballistic missiles.
Over the past decade, it has invested considerable resources in
its nuclear and ballistic missile programs, and undertaken
extensive nuclear and missile testing in order to realize the
capability to threaten the U.S. homeland with missile attack.
As a result, North Korea has neared the time when it could
credibly do so.''.
(7) Financial transactions and investments that provide
financial resources to the Government of North Korea, and that
fail to incorporate adequate safeguards against the misuse of
those financial resources, pose an undue risk of contributing
to--
(A) weapons of mass destruction programs of that
Government; and
(B) efforts to evade restrictions required by the
United Nations Security Council on imports or exports
of arms and related materiel, services, or technology
by that Government.
(8) The Federal Bureau of Investigation has determined that
the Government of North Korea was responsible for cyberattacks
against entities in the United States, South Korea, and around
the world.
(9) In November 2017, President Donald Trump designated the
government of North Korea as a state sponsor of terrorism
pursuant to authorities under the Export Administration Act of
1979 (50 U.S.C. App. 2401 et seq.), as continued in effect at
the time under the International Emergency Economic Powers Act
(50 U.S.C. 1701 et seq.), the Foreign Assistance Act of 1961
(22 U.S.C. 2151 et seq.), and the Arms Export Control Act (22
U.S.C. 2751 et seq.);
(10) On February 22, 2018, the Secretary of State
determined that the Government of North Korea was responsible
for the lethal nerve agent attack in 2017 on Kim Jong Nam, the
half-brother of North Korean leader Kim Jong-un, in Malaysia,
triggering sanctions required under the Chemical and Biological
Weapons Control and Warfare Elimination Act of 1991 (22 U.S.C.
5601 et seq.).
(11) The strict enforcement of sanctions is essential to
the efforts of the international community to achieve the
peaceful, complete, verifiable, and irreversible dismantlement
of weapons of mass destruction programs of the Government of
North Korea.
SEC. 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), 2375 (2017),
or 2397 (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 2019,
knowingly provides significant financial services to any person
designated for the imposition of sanctions under--
``(1) subsection (a) or (b) of section 104;
``(2) an applicable Executive order; or
``(3) an applicable United Nations Security Council
resolution.
``(b) Sanctions Described.--The sanctions that may be imposed with
respect to a foreign financial institution subject to subsection (a)
are the following:
``(1) Asset blocking.--The Secretary may block and
prohibit, pursuant to the International Emergency Economic
Powers Act (50 U.S.C. 1701 et seq.), all transactions in all
property and interests in property of the foreign financial
institution if such property and interests in property are in
the United States, come within the United States, or are or
come within the possession or control of a United States
person.
``(2) Restrictions on correspondent and payable-through
accounts.--The Secretary may prohibit, or impose strict
conditions on, the opening or maintaining in the United States
of a correspondent account or a payable-through account by the
foreign financial institution.
``(c) Implementation; Penalties.--
``(1) Implementation.--The President may exercise all
authorities provided under sections 203 and 205 of the
International Emergency Economic Powers Act (50 U.S.C. 1702 and
1704) to carry out this section.
``(2) Penalties.--A person that violates, attempts to
violate, conspires to violate, or causes a violation of this
section or any regulation, license, or order issued to carry
out this section shall be subject to the penalties set forth in
subsections (b) and (c) of section 206 of the International
Emergency Economic Powers Act (50 U.S.C. 1705) to the same
extent as a person that commits an unlawful act described in
subsection (a) of that section.
``(d) Regulations.--Not later than 120 days after the date of the
enactment of the Otto Warmbier Banking Restrictions Involving North
Korea Act of 2019, the President shall, as appropriate, prescribe
regulations to carry out this section.
``(e) Definitions.--In this section:
``(1) Account; correspondent account; payable-through
account.--The terms `account', `correspondent account', and
`payable-through account' have the meanings given those terms
in section 5318A of title 31, United States Code.
``(2) Financial institution.--The term `financial
institution' means a financial institution specified in
subparagraph (A), (B), (C), (D), (E), (F), (G), (H), (I), (J),
(M), or (Y) of section 5312(a)(2) of title 31, United States
Code.
``(3) Foreign financial institution.--The term `foreign
financial institution' shall have the meaning of that term as
determined by the Secretary of the Treasury.
``(4) Knowingly.--The term `knowingly', with respect to
conduct, a circumstance, or a result, means that a person has
actual knowledge, or should have known, of the conduct, the
circumstance, or the result.''.
(b) Clerical Amendment.--The table of contents for the North Korea
Sanctions and Policy Enhancement Act of 2016 is amended by inserting
after the item relating to section 201A the following:
``201B. Sanctions with respect to foreign financial institutions that
provide financial services to certain
sanctioned persons.''.
SEC. 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.
1701 note; relating to blocking the property of the Government
of North Korea and the Workers' Party of Korea, and prohibiting
certain transactions with respect to North Korea), or Executive
Order 13810 (82 Fed. Reg. 44705; relating to imposing
additional sanctions with respect to North Korea), as such
Executive Orders are in effect on the day before the date of
the enactment of the Otto Warmbier Banking Restrictions
Involving North Korea Act of 2019'';
(2) by striking ``the Government of North Korea, persons
acting for or on behalf of that Government, and persons owned
or controlled, directly or indirectly, by that Government or
persons acting for or on behalf of that Government,'' and
inserting ``persons subject to such sanctions''; and
(3) by striking ``and 2094 (2013)'' and inserting ``2094
(2013), 2270 (2016), 2321 (2016), 2356 (2017), 2371 (2017),
2375 (2017), and 2397 (2017)''.
(b) Conforming Amendment.--Section 210 of the North Korea Sanctions
and Policy Enhancement Act of 2016 (22 U.S.C. 9230) is amended in the
section heading by striking ``sanctions with respect to north korean
activities undermining cybersecurity'' and inserting ``executive orders
relating to sanctions with respect to north korea''.
(c) Clerical Amendment.--The table of contents for the North Korea
Sanctions and Policy Enhancement Act of 2016 is amended by striking the
item relating to section 210 and inserting the following:
``Sec. 210. Codification of Executive orders relating to sanctions with
respect to North Korea.''.
SEC. 113. EXPANSION OF MANDATORY DESIGNATIONS UNDER NORTH KOREA
SANCTIONS AND POLICY ENHANCEMENT ACT OF 2016.
(a) In General.--Section 104(a) of the North Korea Sanctions and
Policy Enhancement Act of 2016 (22 U.S.C. 9214(a)) is amended--
(1) in paragraph (14), by striking ``or'' at the end;
(2) by redesignating paragraph (15) as paragraph (24);
(3) by inserting after paragraph (14) the following:
``(15) knowingly, directly or indirectly, purchases or
otherwise acquires from North Korea significant quantities of
coal, iron, or iron ore;
``(16) knowingly, directly or indirectly, provides to North
Korea coal, iron, or iron ore;
``(17) knowingly, directly or indirectly, purchases or
otherwise acquires textiles from North Korea;
``(18) knowingly facilitates a significant transfer of
funds or property from North Korea that materially contributes
to any violation of an applicable United Nations Security
Council resolution;
``(19) knowingly, directly or indirectly, purchases or
otherwise acquires significant types or amounts of seafood from
North Korea;
``(20) knowingly, directly or indirectly, engages in,
facilitates, or is responsible for the exportation of workers
from North Korea;
``(21) knowingly, directly or indirectly, sells or
transfers vessels to North Korea, except as specifically
approved by the United Nations Security Council;
``(22) knowingly, directly or indirectly, supplies, sells,
or transfers to North Korea crude oil or refined petroleum
products in excess of the aggregate amounts established in
applicable United Nations Security Council resolutions;
``(23) knowingly contributes to--
``(A) the bribery of an official of the Government
of North Korea or any person acting for or on behalf of
that official;
``(B) the misappropriation, theft, or embezzlement
of public funds by, or for the benefit of, an official
of the Government of North Korea or any person acting
for or on behalf of that official; or
``(C) the use of any proceeds of any activity
described in subparagraph (A) or (B); or''; and
(4) in paragraph (24), as redesignated by paragraph (2), by
striking ``through (14)'' and inserting ``through (23)''.
(b) Conforming Amendments.--The North Korea Sanctions and Policy
Enhancement Act of 2016 is amended--
(1) in section 104(b)(1) (22 U.S.C. 9214(b)(1))--
(A) by striking subparagraphs (B), (D), (E), (F),
and (L); and
(B) by redesignating subparagraphs (C), (G), (H),
(I), (J), (K), (M), and (N) as subparagraphs (B), (C),
(D), (E), (F), (G), (H), and (I), respectively; and
(2) in section 302(b)(3) (22 U.S.C. 9241(b)(3)), by
striking ``section 104(b)(1)(M)'' and inserting ``section
104(a)(20)''.
SEC. 114. EXTENSION OF APPLICABILITY PERIOD OF PROLIFERATION PREVENTION
SANCTIONS.
Section 203(b)(2) of the North Korea Sanctions and Policy
Enhancement Act of 2016 (22 U.S.C. 9223(b)(2)) is amended by striking
``2 years'' and inserting ``5 years''.
SEC. 115. SENSE OF CONGRESS ON IDENTIFICATION AND BLOCKING OF PROPERTY
OF NORTH KOREAN OFFICIALS.
It is the sense of Congress that the President should--
(1) encourage international collaboration through the
Financial Action Task Force and its network of Financial Action
Task Force-style regional bodies to apply best practices in
disrupting money laundering related to kleptocracy and
corruption, especially as it relates to North Korea; and
(2) prioritize multilateral efforts to identify and block--
(A) any property owned or controlled by a North
Korean official; and
(B) any significant proceeds of kleptocracy by the
Government of North Korea or a North Korean official.
SEC. 116. MODIFICATION OF REPORT ON IMPLEMENTATION OF UNITED NATIONS
SECURITY COUNCIL RESOLUTIONS BY OTHER GOVERNMENTS.
Section 317 of the Korean Interdiction and Modernization of
Sanctions Act (title III of Public Law 115-44; 131 Stat. 950) is
amended--
(1) in subsection (a)--
(A) in the matter preceding paragraph (1), by
striking ``Not later than 180 days after the date of
the enactment of this Act, and annually thereafter for
5 years,'' and inserting ``Not later than 180 days
after the date of the enactment of the Otto Warmbier
Banking Restrictions Involving North Korea Act of 2019,
and annually thereafter for 5 years,'';
(B) in paragraph (3), by striking ``; or'' and
inserting a semicolon;
(C) by redesignating paragraph (4) as paragraph
(8); and
(D) by inserting after paragraph (3) the following:
``(4) prohibit, in the territories of such countries or by
persons subject to the jurisdiction of such governments, the
opening of new joint ventures or cooperative entities with
North Korean persons or the expansion of existing joint
ventures through additional investments, whether or not for or
on behalf of the Government of North Korea, unless such joint
ventures or cooperative entities have been approved by the
Committee of the United Nations Security Council established by
United Nations Security Council Resolution 1718 (2006);
``(5) prohibit the unauthorized clearing of funds by North
Korean financial institutions through financial institutions
subject to the jurisdiction of such governments;
``(6) prohibit the unauthorized conduct of commercial trade
with North Korea that is prohibited under applicable United
Nations Security Council resolutions;
``(7) prevent the provision of financial services to North
Korean persons or the transfer of financial services to North
Korean persons to, through, or from the territories of such
countries or by persons subject to the jurisdiction of such
governments; or''; and
(2) by amending subsection (c) to read as follows:
``(c) Definitions.--In this section:
``(1) Appropriate congressional committees and
leadership.--The term `appropriate congressional committees and
leadership' means--
``(A) the Committee on Foreign Relations, the
Committee on Banking, Housing, and Urban Affairs, and
the majority and minority leaders of the Senate; and
``(B) the Committee on Foreign Affairs, the
Committee on Financial Services, the Committee on Ways
and Means, and the Speaker, the majority leader, and
the minority leader of the House of Representatives.
``(2) Applicable united nations security council
resolution; north korean financial institution; north korean
person.--The terms `applicable United Nations Security Council
resolution', `North Korean financial institution', and `North
Korean person' have the meanings given those terms in section 3
of the North Korea Sanctions and Policy Enhancement Act of 2016
(22 U.S.C. 9202).''.
SEC. 117. REPORT ON USE BY THE GOVERNMENT OF NORTH KOREA OF BENEFICIAL
OWNERSHIP RULES TO ACCESS THE INTERNATIONAL FINANCIAL
SYSTEM.
(a) In General.--Not later than 180 days after the date of the
enactment of this Act, the Secretary of the Treasury shall submit to
the appropriate congressional committees a report setting forth the
findings of the Secretary regarding how the Government of North Korea
is exploiting laws with respect to the beneficial owner of an entity in
order to access the international financial system.
(b) Elements.--The Secretary shall include in the report required
under subsection (a) proposals for such legislative and administrative
action as the Secretary considers appropriate to combat the abuse by
the Government of North Korea of shell companies and other similar
entities to avoid or evade sanctions.
(c) Form.--The report required by subsection (a) shall be submitted
in unclassified form but may include a classified annex.
(d) Beneficial Owner Defined.--
(1) In general.--In this section, the term ``beneficial
owner''--
(A) means, with respect to an entity, each natural
person who, directly or indirectly--
(i) exercises control over the entity
through ownership interests, voting rights,
agreements, or otherwise; or
(ii) has an interest in or receives
substantial economic benefits from the assets
of the entity; and
(B) does not include, with respect to an entity--
(i) a minor child;
(ii) a person acting as a nominee,
intermediary, custodian, or agent on behalf of
another person;
(iii) a person acting solely as an employee
of the entity and whose control over or
economic benefits from the entity derives
solely from the employment status of the
person;
(iv) a person whose only interest in the
entity is through a right of inheritance,
unless the person otherwise meets the
definition of a beneficial owner under this
subsection; and
(v) a creditor of the entity, unless the
creditor otherwise meets the definition of a
beneficial owner under this subsection.
(2) Anti-abuse rule.--The exceptions under paragraph (1)(B)
shall not apply if used for the purpose of evading,
circumventing, or abusing laws described in subsection (a).
Subtitle B--Congressional Review and Oversight
SEC. 121. NOTIFICATION OF TERMINATION OR SUSPENSION OF SANCTIONS.
Not less than 15 days before taking any action to terminate or
suspend the application of sanctions under this title or an amendment
made by this title, the President shall notify the appropriate
congressional committees of the President's intent to take the action
and the reasons for the action.
SEC. 122. REPORTS ON CERTAIN LICENSING ACTIONS.
(a) In General.--Not later than 180 days after the date of the
enactment of this Act, and every 180 days thereafter, the President
shall submit to the appropriate congressional committees a report on
the operation of the system for issuing licenses for transactions under
covered regulatory provisions during the preceding 180-day period that
includes--
(1) the number and types of such licenses applied for
during that period;
(2) the number and types of such licenses issued during
that period; and
(3) a summary of all general and specific licenses issued
with respect to North Korea.
(b) Covered Regulatory Provision Defined.--In this section, the
term ``covered regulatory provision'' means any of the following
provisions, as in effect on the day before the date of the enactment of
this Act and as such provisions relate to North Korea:
(1) Part 743, 744, or 746 of title 15, Code of Federal
Regulations.
(2) Part 510 of title 31, Code of Federal Regulations.
(3) Any other provision of title 31, Code of Federal
Regulations.
(c) Form.--Each report required by subsection (a) shall be
submitted in unclassified form but may include a classified annex.
SEC. 123. BRIEFINGS ON IMPLEMENTATION AND ENFORCEMENT OF SANCTIONS.
Not later than 90 days after the date of the enactment of this Act,
and every 180 days thereafter, the Secretary of the Treasury shall
provide to the appropriate congressional committees a briefing on
efforts relating to the implementation and enforcement of United States
sanctions with respect to North Korea, including appropriate updates on
the efforts of the Department of the Treasury to address compliance
with such sanctions by foreign financial institutions.
SEC. 124. REPORT ON FINANCIAL NETWORKS AND FINANCIAL METHODS OF THE
GOVERNMENT OF NORTH KOREA.
(a) Report Required.--
(1) In general.--Not later than 180 days after the date of
the enactment of this Act, and annually thereafter through
2025, the President shall submit to the appropriate
congressional committees a report on sources of external
support for the Government of North Korea that includes--
(A) a description of the methods used by the
Government of North Korea to deal in, transact in, or
conceal the ownership, control, or origin of goods and
services exported by North Korea;
(B) an assessment of the relationship between the
proliferation of weapons of mass destruction by the
Government of North Korea and the financial industry or
financial institutions;
(C) an assessment of the relationship between the
acquisition by the Government of North Korea of
military expertise, equipment, and technology and the
financial industry or financial institutions;
(D) a description of the export by any person to
the United States of goods, services, or technology
that are made with significant amounts of North Korean
labor, material, or goods, including minerals,
manufacturing, seafood, overseas labor, or other
exports from North Korea;
(E) an assessment of the involvement of any person
in human trafficking involving citizens or nationals of
North Korea;
(F) a description of how the President plans to
address the flow of funds generated by activities
described in subparagraphs (A) through (E), including
through the use of sanctions or other means;
(G) an assessment of the extent to which the
Government of North Korea engages in criminal
activities, including money laundering, to support that
Government;
(H) information relating to the identification,
blocking, and release of property described in section
201B(b)(1) of the North Korea Sanctions and Policy
Enhancement Act of 2016, as added by section 111;
(I) a description of the metrics used to measure
the effectiveness of law enforcement and diplomatic
initiatives of Federal, State, and foreign governments
to comply with the provisions of applicable United
Nations Security Council resolutions; and
(J) an assessment of the effectiveness of programs
within the financial industry to ensure compliance with
United States sanctions, applicable United Nations
Security Council resolutions, and applicable Executive
orders.
(2) Form.--Each report required by paragraph (1) shall be
submitted in unclassified form but may include a classified
annex.
(b) Interagency Coordination.--The President shall ensure that any
information collected pursuant to subsection (a) is shared among the
Federal departments and agencies involved in investigations described
in section 102(b) of the North Korea Sanctions and Policy Enhancement
Act of 2016 (22 U.S.C. 9212(b)).
SEC. 125. REPORT ON COUNTRIES OF CONCERN WITH RESPECT TO TRANSSHIPMENT,
REEXPORTATION, OR DIVERSION OF CERTAIN ITEMS TO NORTH
KOREA.
(a) In General.--Not later than 180 days after the date of the
enactment of this Act, and annually thereafter through 2023, the
Director of National Intelligence shall submit to the President, the
Secretary of Defense, the Secretary of Commerce, the Secretary of
State, the Secretary of the Treasury, and the appropriate congressional
committees a report that identifies all countries that the Director
determines are of concern with respect to transshipment, reexportation,
or diversion of items subject to the provisions of the Export
Administration Regulations under subchapter C of chapter VII of title
15, Code of Federal Regulations, to an entity owned or controlled by
the Government of North Korea.
(b) Form.--Each report required by subsection (a) shall be
submitted in unclassified form but may include a classified annex.
Subtitle C--General Matters
SEC. 131. RULEMAKING.
The President shall prescribe such rules and regulations as may be
necessary to carry out this title and amendments made by this title.
SEC. 132. AUTHORITY TO CONSOLIDATE REPORTS.
(a) In General.--Any and all reports required to be submitted to
the appropriate congressional committees under this title or an
amendment made by this title that are subject to a deadline for
submission consisting of the same unit of time may be consolidated into
a single report that is submitted pursuant to that deadline.
(b) Contents.--Any reports consolidated under subsection (a) shall
contain all information required under this title or an amendment made
by this title and any other elements that may be required by existing
law.
SEC. 133. WAIVERS, EXEMPTIONS, AND TERMINATION.
(a) Application and Modification of Exemptions and Waivers From
North Korea Sanctions and Policy Enhancement Act of 2016.--Section 208
of the North Korea Sanctions and Policy Enhancement Act of 2016 (22
U.S.C. 9228) is amended--
(1) by inserting ``201B,'' after ``201A,'' each place it
appears; and
(2) in subsection (c), by inserting ``, not less than 15
days before the waiver takes effect,'' after ``if the
President''.
(b) Exception Relating to Importation of Goods.--
(1) In general.--No provision affecting sanctions under
this title or an amendment made by this title shall apply to
sanctions on the importation of goods.
(2) Good defined.--In this subsection, the term ``good''
means any article, natural or man-made substance, material,
supply or manufactured product, including inspection and test
equipment, and excluding technical data.
(c) Suspension.--
(1) In general.--Subject to section 121, any requirement to
impose sanctions under this title or the amendments made by
this title, and any sanctions imposed pursuant to this title or
any such amendment, may be suspended for up to one year if the
President makes the certification described in section 401 of
the North Korea Sanctions and Policy Enhancement Act of 2016
(22 U.S.C. 9251) to the appropriate congressional committees.
(2) Renewal.--A suspension under paragraph (1) may be
renewed in accordance with section 401(b) of the North Korea
Sanctions and Policy Enhancement Act of 2016 (22 U.S.C.
9251(b)).
(d) Termination.--Subject to section 121, any requirement to impose
sanctions under this title or the amendments made by this title, and
any sanctions imposed pursuant to this title or any such amendment,
shall terminate on the date on which the President makes the
certification described in section 402 of the North Korea Sanctions and
Policy Enhancement Act of 2016 (22 U.S.C. 9252).
SEC. 134. PROCEDURES FOR REVIEW OF CLASSIFIED INFORMATION.
(a) In General.--If a finding under this title or an amendment made
by this title, a prohibition, condition, or penalty imposed as a result
of any such finding, or a penalty imposed under this title or an
amendment made by this title, is based on classified information (as
defined in section 1(a) of the Classified Information Procedures Act
(18 U.S.C. App.)) and a court reviews the finding or the imposition of
the prohibition, condition, or penalty, the Secretary of the Treasury
may submit such information to the court ex parte and in camera.
(b) Rule of Construction.--Nothing in this section shall be
construed to confer or imply any right to judicial review of any
finding under this title or an amendment made by this title, any
prohibition, condition, or penalty imposed as a result of any such
finding, or any penalty imposed under this title or an amendment made
by this title.
SEC. 135. BRIEFING ON PROLIFERATION FINANCING.
(a) In General.--Not later than 60 days after the date of the
enactment of this Act, the Secretary of the Treasury shall provide to
the appropriate congressional committees a briefing on addressing
proliferation finance.
(b) Elements.--The briefing required by subsection (a) shall
include the following:
(1) The Department of the Treasury's definition and
description of an appropriate risk-based approach to combating
financing of the proliferation of weapons of mass destruction.
(2) An assessment of--
(A) Federal financial regulatory agency oversight,
including by the Financial Crimes Enforcement Network,
of United States financial institutions and the
adoption by their foreign subsidiaries, branches, and
correspondent institutions of a risk-based approach to
proliferation financing; and
(B) whether financial institutions in foreign
jurisdictions known by the United States intelligence
and law enforcement communities to be jurisdictions
through which North Korea moves substantial sums of
licit and illicit finance are applying a risk-based
approach to proliferation financing, and if that
approach is comparable to the approach required by
United States financial institution supervisors.
(3) A survey of the technical assistance the Office of
Technical Assistance of the Department of the Treasury, and
other appropriate Executive branch offices, currently provide
foreign institutions on implementing counter-proliferation
financing best practices.
(4) An assessment of the ability of foreign subsidiaries,
branches, and correspondent institutions of United States
financial institutions to implement a risk-based approach to
proliferation financing.
TITLE II--DIVESTMENT FROM NORTH KOREA
SEC. 201. AUTHORITY OF STATE AND LOCAL GOVERNMENTS TO DIVEST FROM
COMPANIES THAT INVEST IN NORTH KOREA.
(a) Sense of Congress.--It is the sense of Congress that the United
States should support the decision of any State or local government
made for moral, prudential, or reputational reasons, to divest from, or
prohibit the investment of assets of the State or local government in,
a person that engages in investment activities described in subsection
(c) if North Korea is subject to economic sanctions imposed by the
United States or the United Nations Security Council.
(b) Authority To Divest.--Notwithstanding any other provision of
law, a State or local government may adopt and enforce measures that
meet the requirements of subsection (d) to divest the assets of the
State or local government from, or prohibit investment of the assets of
the State or local government in, any person that the State or local
government determines, using credible information available to the
public, engages in investment activities described in subsection (c).
(c) Investment Activities Described.--Investment activities
described in this subsection are activities of a value of more than
$10,000 relating to an investment in North Korea or in goods or
services originating in North Korea that are not conducted pursuant to
a license issued by the Department of the Treasury.
(d) Requirements.--Any measure taken by a State or local government
under subsection (b) shall meet the following requirements:
(1) Notice.--The State or local government shall provide
written notice to each person with respect to which a measure
under this section is to be applied.
(2) Timing.--The measure applied under this section shall
apply to a person not earlier than the date that is 90 days
after the date on which written notice under paragraph (1) is
provided to the person.
(3) Opportunity to demonstrate compliance.--
(A) In general.--The State or local government
shall provide to each person with respect to which a
measure is to be applied under this section an
opportunity to demonstrate to the State or local
government that the person does not engage in
investment activities described in subsection (c).
(B) Nonapplication.--If a person with respect to
which a measure is to be applied under this section
demonstrates to the State or local government under
subparagraph (A) that the person does not engage in
investment activities described in subsection (c), the
measure shall not apply to that person.
(4) Sense of congress on avoiding erroneous targeting.--It
is the sense of Congress that a State or local government
should not adopt a measure under subsection (b) with respect to
a person unless the State or local government has--
(A) made every effort to avoid erroneously
targeting the person; and
(B) verified that the person engages in investment
activities described in subsection (c).
(e) Notice to Department of Justice.--Not later than 30 days before
a State or local government applies a measure under this section, the
State or local government shall notify the Attorney General of that
measure.
(f) Authorization for Prior Applied Measures.--
(1) In general.--Notwithstanding any other provision of
this section or any other provision of law, a State or local
government may enforce a measure (without regard to the
requirements of subsection (d), except as provided in paragraph
(2)) applied by the State or local government before the date
of the enactment of this Act that provides for the divestment
of assets of the State or local government from, or prohibits
the investment of the assets of the State or local government
in, any person that the State or local government determines,
using credible information available to the public, engages in
investment activities described in subsection (c) that are
identified in that measure.
(2) Application of notice requirements.--A measure
described in paragraph (1) shall be subject to the requirements
of paragraphs (1), (2), and (3)(A) of subsection (d) on and
after the date that is 2 years after the date of the enactment
of this Act.
(g) No Preemption.--A measure applied by a State or local
government that is consistent with subsection (b) or (f) is not
preempted by any Federal law.
(h) Definitions.--In this section:
(1) Asset.--
(A) In general.--Except as provided in subparagraph
(B), the term ``asset'' means public monies, and
includes any pension, retirement, annuity, endowment
fund, or similar instrument, that is controlled by a
State or local government.
(B) Exception.--The term ``asset'' does not include
employee benefit plans covered by title I of the
Employee Retirement Income Security Act of 1974 (29
U.S.C. 1001 et seq.).
(2) Investment.--The term ``investment'' includes--
(A) a commitment or contribution of funds or
property;
(B) a loan or other extension of credit; and
(C) the entry into or renewal of a contract for
goods or services.
(i) Effective Date.--
(1) In general.--Except as provided in paragraph (2) and
subsection (f), this section applies to measures applied by a
State or local government before, on, or after the date of the
enactment of this Act.
(2) Notice requirements.--Except as provided in subsection
(f), subsections (d) and (e) apply to measures applied by a
State or local government on or after the date of the enactment
of this Act.
SEC. 202. SAFE HARBOR FOR CHANGES OF INVESTMENT POLICIES BY ASSET
MANAGERS.
Section 13(c)(1) of the Investment Company Act of 1940 (15 U.S.C.
80a-13(c)(1)) is amended--
(1) in subparagraph (A), by striking ``or'' at the end;
(2) in subparagraph (B), by striking the period and
inserting ``; or''; and
(3) by adding at the end the following:
``(C) engage in investment activities described in
section 201(c) of the Otto Warmbier Banking
Restrictions Involving North Korea Act of 2019.''.
SEC. 203. SENSE OF CONGRESS REGARDING CERTAIN ERISA PLAN INVESTMENTS.
It is the sense of Congress that--
(1) a fiduciary of an employee benefit plan, as defined in
section 3(3) of the Employee Retirement Income Security Act of
1974 (29 U.S.C. 1002(3)), may divest plan assets from, or avoid
investing plan assets in, any person the fiduciary determines
engages in investment activities described in section 201(c),
if--
(A) the fiduciary makes that determination using
credible information that is available to the public;
and
(B) the fiduciary prudently determines that the
result of that divestment or avoidance of investment
would not be expected to provide the employee benefit
plan with--
(i) a lower rate of return than alternative
investments with commensurate degrees of risk;
or
(ii) a higher degree of risk than
alternative investments with commensurate rates
of return; and
(2) by divesting assets or avoiding the investment of
assets as described in paragraph (1), the fiduciary is not
breaching the responsibilities, obligations, or duties imposed
upon the fiduciary by subparagraph (A) or (B) of section
404(a)(1) of the Employee Retirement Income Security Act of
1974 (29 U.S.C. 1104(a)(1)).
SEC. 204. RULE OF CONSTRUCTION.
Nothing in this title, an amendment made by this title, or any
other provision of law authorizing sanctions with respect to North
Korea shall be construed to affect or displace--
(1) the authority of a State or local government to issue
and enforce rules governing the safety, soundness, and solvency
of a financial institution subject to its jurisdiction; or
(2) the regulation and taxation by the several States of
the business of insurance, pursuant to the Act of March 9, 1945
(59 Stat. 33, chapter 20; 15 U.S.C. 1011 et seq.) (commonly
known as the ``McCarran-Ferguson Act'').
TITLE III--FINANCIAL INDUSTRY GUIDANCE TO HALT TRAFFICKING
SEC. 301. SHORT TITLE.
This title may be cited as the ``Financial Industry Guidance to
Halt Trafficking Act'' or the ``FIGHT Act''.
SEC. 302. FINDINGS.
Congress finds the following:
(1) The terms ``human trafficking'' and ``trafficking in
persons'' are used interchangeably to describe crimes involving
the exploitation of a person for the purposes of compelled
labor or commercial sex through the use of force, fraud, or
coercion.
(2) According to the International Labour Organization,
there are an estimated 24,900,000 people worldwide who are
victims of forced labor, including human trafficking victims in
the United States.
(3) Human trafficking is perpetrated for financial gain.
(4) According to the International Labour Organization, of
the estimated $150,000,000,000 or more in global profits
generated annually from human trafficking--
(A) approximately \2/3\ are generated by commercial
sexual exploitation, exacted by fraud or by force; and
(B) approximately \1/3\ are generated by forced
labor.
(5) Most purchases of commercial sex acts are paid for with
cash, making trafficking proceeds difficult to identify in the
financial system. Nonetheless, traffickers rely heavily on
access to financial institutions as destinations for
trafficking proceeds and as conduits to finance every step of
the trafficking process.
(6) Under section 1956 of title 18, United States Code
(relating to money laundering), human trafficking is a
``specified unlawful activity'' and transactions conducted with
proceeds earned from trafficking people, or used to further
trafficking operations, can be prosecuted as money laundering
offenses.
SEC. 303. SENSE OF CONGRESS.
It is the sense of Congress that--
(1) the President should aggressively apply, as
appropriate, existing sanctions for human trafficking
authorized under section 111 of the Trafficking Victims
Protection Act of 2000 (22 U.S.C. 7108);
(2) the Financial Crimes Enforcement Network of the
Department of the Treasury should continue--
(A) to monitor reporting required under subchapter
II of chapter 53 of title 31, United States Code
(commonly known as the ``Bank Secrecy Act'') and to
update advisories, as warranted;
(B) to periodically review its advisories to
provide covered financial institutions, as appropriate,
with a list of new ``red flags'' for identifying
activities of concern, particularly human trafficking;
(C) to encourage entities covered by the advisories
described in subparagraph (B) to incorporate relevant
elements provided in the advisories into their current
transaction and account monitoring systems or in
policies, procedures, and training on human trafficking
to enable financial institutions to maintain ongoing
efforts to examine transactions and accounts;
(D) to use geographic targeting orders, as
appropriate, to impose additional reporting and
recordkeeping requirements under section 5326(a) of
title 31, United States Code, to carry out the purposes
of, and prevent evasions of the Bank Secrecy Act; and
(E) to utilize the Bank Secrecy Act Advisory Group
and other relevant entities to identify opportunities
for nongovernmental organizations to share relevant
actionable information on human traffickers' use of the
financial sector for nefarious purposes;
(3) Federal banking regulators, the Department of the
Treasury, relevant law enforcement agencies, and the Human
Smuggling and Trafficking Center, in partnership with
representatives from the United States financial community,
should adopt regular forms of sharing information to disrupt
human trafficking, including developing protocols and
procedures to share actionable information between and amongst
covered institutions, law enforcement, and the United States
intelligence community;
(4) training front line bank and money service business
employees, school teachers, law enforcement officers, foreign
service officers, counselors, and the general public is an
important factor in identifying trafficking victims;
(5) the Department of Homeland Security's Blue Campaign,
training by the BEST Employers Alliance, and similar efforts by
industry, human rights, and nongovernmental organizations
focused on human trafficking provide good examples of current
efforts to educate employees of critical sectors to save
victims and disrupt trafficking networks;
(6) the President should intensify diplomatic efforts,
bilaterally and in appropriate international fora, such as the
United Nations, to develop and implement a coordinated,
consistent, multilateral strategy for addressing the
international financial networks supporting human trafficking;
and
(7) in deliberations between the United States Government
and any foreign country, including through participation in the
Egmont Group of Financial Intelligence Units, regarding money
laundering, corruption, and transnational crimes, the United
States Government should--
(A) encourage cooperation by foreign governments
and relevant international fora in identifying the
extent to which the proceeds from human trafficking are
being used to facilitate terrorist financing,
corruption, or other illicit financial crimes;
(B) encourage cooperation by foreign governments
and relevant international fora in identifying the
nexus between human trafficking and money laundering;
(C) advance policies that promote the cooperation
of foreign governments, through information sharing,
training, or other measures, in the enforcement of this
title;
(D) encourage the Financial Action Task Force to
update its July 2011 typology reports entitled,
``Laundering the Proceeds of Corruption'' and ``Money
Laundering Risks Arising from Trafficking in Human
Beings and Smuggling of Migrants'', to identify the
money laundering risk arising from the trafficking of
human beings; and
(E) encourage the Egmont Group of Financial
Intelligence Units to study the extent to which human
trafficking operations are being used for money
laundering, terrorist financing, or other illicit
financial purposes.
SEC. 304. COORDINATION OF HUMAN TRAFFICKING ISSUES BY THE OFFICE OF
TERRORISM AND FINANCIAL INTELLIGENCE.
(a) Functions.--Section 312(a)(4) of title 31, United States Code,
is amended--
(1) by redesignating subparagraphs (E), (F), and (G) as
subparagraphs (F), (G), and (H), respectively; and
(2) by inserting after subparagraph (D) the following:
``(E) combating illicit financing relating to human
trafficking;''.
(b) Interagency Coordination.--Section 312(a) of such title is
amended by adding at the end the following:
``(8) Interagency coordination.--The Secretary of the
Treasury, after consultation with the Undersecretary for
Terrorism and Financial Crimes, shall designate an office
within the OTFI that shall coordinate efforts to combat the
illicit financing of human trafficking with--
``(A) other offices of the Department of the
Treasury;
``(B) other Federal agencies, including--
``(i) the Office to Monitor and Combat
Trafficking in Persons of the Department of
State; and
``(ii) the Interagency Task Force to
Monitor and Combat Trafficking;
``(C) State and local law enforcement agencies; and
``(D) foreign governments.''.
SEC. 305. STRENGTHENING THE ROLE OF ANTI-MONEY LAUNDERING AND OTHER
FINANCIAL TOOLS IN COMBATING HUMAN TRAFFICKING.
(a) Interagency Task Force Recommendations Targeting Money
Laundering Related to Human Trafficking.--
(1) In general.--Not later than 270 days after the date of
the enactment of this Act, the Interagency Task Force to
Monitor and Combat Trafficking shall submit to the Committee on
Banking, Housing, and Urban Affairs, the Committee on Foreign
Relations, and the Committee on the Judiciary of the Senate,
the Committee on Financial Services, the Committee on Foreign
Affairs, and the Committee on the Judiciary of the House of
Representatives, the Secretary of the Treasury, and each
appropriate Federal banking agency--
(A) an analysis of anti-money laundering efforts of
the United States Government, United States financial
institutions, and multilateral development banks
related to human trafficking; and
(B) appropriate legislative, administrative, and
other recommendations to strengthen efforts against
money laundering relating to human trafficking.
(2) Required recommendations.--The recommendations under
paragraph (1) shall include--
(A) best practices based on successful anti-human
trafficking programs currently in place at domestic and
international financial institutions that are suitable
for broader adoption;
(B) feedback from stakeholders, including victims
of severe trafficking in persons, advocates of persons
at risk of becoming victims of severe forms of
trafficking in persons, the United States Advisory
Council on Human Trafficking, civil society
organizations, and financial institutions on policy
proposals derived from the analysis conducted by the
task force referred to in paragraph (1) that would
enhance the efforts and programs of financial
institutions to detect and deter money laundering
related to human trafficking, including any recommended
changes to internal policies, procedures, and controls
related to human trafficking;
(C) any recommended changes to training programs at
financial institutions to better equip employees to
deter and detect money laundering related to human
trafficking; and
(D) any recommended changes to expand human
trafficking-related information sharing among financial
institutions and between such financial institutions,
appropriate law enforcement agencies, and appropriate
Federal agencies.
(b) Additional Reporting Requirement.--Section 105(d)(7) of the
Trafficking Victims Protection Act of 2000 (22 U.S.C. 7103(d)(7)) is
amended--
(1) in the matter preceding subparagraph (A)--
(A) by inserting ``the Committee on Financial
Services,'' after ``the Committee on Foreign Affairs'';
and
(B) by inserting ``the Committee on Banking,
Housing, and Urban Affairs,'' after ``the Committee on
Foreign Relations,'';
(2) in subparagraph (Q)(vii), by striking ``; and'' and
inserting a semicolon;
(3) in subparagraph (R), by striking the period at the end
and inserting ``; and''; and
(4) by adding at the end the following:
``(S) the efforts of the United States to eliminate
money laundering related to human trafficking and the
number of investigations, arrests, indictments, and
convictions in money laundering cases with a nexus to
human trafficking.''.
(c) Required Review of Procedures.--Not later than 180 days after
the date of the enactment of this Act, the Federal Financial
Institutions Examination Council, in consultation with the Secretary of
the Treasury, victims of severe forms of trafficking in persons,
advocates of persons at risk of becoming victims of severe forms of
trafficking in persons, the United States Advisory Council on
Trafficking, civil society organizations, the private sector, and
appropriate law enforcement agencies, shall--
(1) review and enhance training and examinations procedures
to improve the surveillance capabilities of anti-money
laundering and countering the financing of terrorism programs
to detect human trafficking-related financial transactions;
(2) review and enhance procedures for referring potential
human trafficking cases to the appropriate law enforcement
agency; and
(3) determine, as appropriate, whether requirements for
financial institutions and covered financial institutions are
sufficient to detect and deter money laundering related to
human trafficking.
(d) Limitations.--Nothing in this section shall be construed to--
(1) grant rulemaking authority to the Interagency Task
Force to Monitor and Combat Trafficking; or
(2) authorize financial institutions to deny services to or
violate the privacy of victims of trafficking, victims of
severe forms of trafficking, or individuals not responsible for
promoting severe forms of trafficking in persons.
SEC. 306. SENSE OF CONGRESS ON RESOURCES TO COMBAT HUMAN TRAFFICKING.
It is the sense of Congress that--
(1) adequate funding should be provided for critical
Federal efforts to combat human trafficking;
(2) the Department of the Treasury should have the
appropriate resources to vigorously investigate human
trafficking networks under section 111 of the Trafficking
Victims Protection Act of 2000 (22 U.S.C. 7108) and other
relevant statutes and Executive orders;
(3) the Department of the Treasury and the Department of
Justice should each have the capacity and appropriate resources
to support technical assistance to develop foreign partners'
ability to combat human trafficking through strong national
anti-money laundering and countering the financing of terrorism
programs;
(4) each United States Attorney's Office should be provided
appropriate funding to increase the number of personnel for
community education and outreach and investigative support and
forensic analysis related to human trafficking; and
(5) the Department of State should be provided additional
resources, as necessary, to carry out the Survivors of Human
Trafficking Empowerment Act (section 115 of Public Law 114-22;
129 Stat. 243).
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