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114th Congress }                                    {   Rept. 114-392
                        HOUSE OF REPRESENTATIVES
 2nd Session    }                                    {   Part 1

======================================================================
 
             NORTH KOREA SANCTIONS ENFORCEMENT ACT OF 2015

                                _______
                                

January 11, 2016.--Committed to the Committee of the Whole House on
                  the State of the Union and ordered to be printed

                                _______
                                

    Mr. Royce, from the Committee on Foreign Affairs, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 757]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Foreign Affairs, to whom was referred the 
bill (H.R. 757) to improve the enforcement of sanctions against 
the Government of North Korea, and for other purposes, having 
considered the same, reports favorably thereon with an 
amendment and recommends that the bill as amended do pass.

                           TABLE OF CONTENTS

                                                                   Page
The Amendment....................................................     1
Summary and Purpose..............................................    16
Background and Need for Legislation..............................    17
Hearings.........................................................    25
Committee Consideration..........................................    25
Committee Oversight Findings.....................................    26
New Budget Authority, Tax Expenditures, and Federal Mandates.....    26
Congressional Budget Office Cost Estimate........................    26
Directed Rule Making.............................................    27
Non-Duplication of Federal Programs..............................    27
Performance Goals and Objectives.................................    28
Congressional Accountability Act.................................    28
New Advisory Committees..........................................    28
Earmark Identification...........................................    28
Section-by-Section Analysis......................................    28
Changes in Existing Law Made by the Bill, as Reported............    30

                             The Amendment

    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``North Korea 
Sanctions Enforcement Act of 2015''.
  (b) Table of Contents.--The table of contents for this Act is as 
follows:

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

       TITLE I--INVESTIGATIONS, PROHIBITED CONDUCT, AND PENALTIES

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

 TITLE II--SANCTIONS AGAINST NORTH KOREAN PROLIFERATION, HUMAN RIGHTS 
  ABUSES, ILLICIT ACTIVITIES, AND SIGNIFICANT ACTIVITIES UNDERMINING 
                             CYBER SECURITY

Sec. 201. Determinations with respect to North Korea as a jurisdiction 
of primary money laundering concern.
Sec. 202. Ensuring the consistent enforcement of United Nations 
Security Council resolutions and financial restrictions on North Korea.
Sec. 203. Proliferation prevention sanctions.
Sec. 204. Procurement sanctions.
Sec. 205. Enhanced inspections authorities.
Sec. 206. Travel sanctions.
Sec. 207. Exemptions, waivers, and removals of designation.
Sec. 208. Report on those responsible for knowingly engaging in 
significant activities undermining cyber security.
Sec. 209. Sense of Congress that trilateral cooperation among the 
United States, Japan, and the Republic of Korea is crucial to the 
stability of the Asia-Pacific region.
Sec. 210. Report on nuclear program cooperation between North Korea and 
Iran.

                  TITLE III--PROMOTION OF HUMAN RIGHTS

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

                     TITLE IV--GENERAL AUTHORITIES

Sec. 401. Suspension of sanctions and other measures.
Sec. 402. Termination of sanctions and other measures.
Sec. 403. Authority to consolidate reports.
Sec. 404. Regulations.
Sec. 405. Effective date.

SEC. 2. FINDINGS.

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

SEC. 3. DEFINITIONS.

  In this Act:
          (1) Applicable executive order.--The term ``applicable 
        Executive order'' means--
                  (A) Executive Order No. 13382 (2005), 13466 (2008), 
                13551 (2010), or 13570 (2011), to the extent that such 
                Executive order authorizes the imposition of sanctions 
                on persons for conduct, or prohibits transactions or 
                activities, involving the Government of North Korea; or
                  (B) any Executive order adopted on or after the date 
                of the enactment of this Act, to the extent that such 
                Executive order authorizes the imposition of sanctions 
                on persons for conduct, or prohibits transactions or 
                activities, involving the Government of North Korea.
          (2) Applicable united nations security council resolution.--
        The term ``applicable United Nations Security Council 
        resolution'' means--
                  (A) United Nations Security Council Resolution 1695 
                (2006), 1718 (2006), 1874 (2009), 2087 (2013), or 2094 
                (2013); or
                  (B) any United Nations Security Council resolution 
                adopted on or after the date of the enactment of this 
                Act, to the extent that such resolution authorizes the 
                imposition of sanctions on persons for conduct, or 
                prohibits transactions or activities, involving the 
                Government of North Korea.
          (3) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                  (A) the Committee on Foreign Affairs, the Committee 
                on Ways and Means, and the Committee on Financial 
                Services of the House of Representatives; and
                  (B) the Committee on Foreign Relations and the 
                Committee on Banking, Housing, and Urban Affairs of the 
                Senate.
          (4) Designated person.--The term ``designated person'' means 
        a person designated under subsection (a) or (b) of section 104 
        for purposes of applying one or more of the sanctions described 
        in title I or II of this Act with respect to the person.
          (5) Government of north korea.--The term ``Government of 
        North Korea'' means--
                  (A) the Government of the Democratic People's 
                Republic of Korea or any political subdivision, agency, 
                or instrumentality thereof; and
                  (B) any person owned or controlled by, or acting for 
                or on behalf of, the Government of the Democratic 
                People's Republic of Korea.
          (6) International terrorism.--The term ``international 
        terrorism'' has the meaning given such term in section 140(d) 
        of the Foreign Relations Authorization Act, Fiscal Years 1988 
        and 1989 (22 U.S.C. 2656f(d)), and includes the conduct 
        described in section 212(a)(3)(B)(iii) of the Immigration and 
        Nationality Act (8 U.S.C. 1182(a)(3)(B)(iii)), to the extent 
        such conduct involves the citizens of more than one country.
          (7) Luxury goods.--The term ``luxury goods'' has the meaning 
        given such term in subpart 746.4 of title 15, Code of Federal 
        Regulations, and includes the items listed in Supplement No. 1 
        to such regulation, and any similar items.
          (8) Monetary instrument.--The term ``monetary instrument'' 
        has the meaning given such term under section 5312 of title 31, 
        United States Code.
          (9) North korean financial institution.--The term ``North 
        Korean financial institution'' means--
                  (A) a financial institution organized under the laws 
                of North Korea or any jurisdiction within North Korea 
                (including a foreign branch of such institution);
                  (B) any financial institution located in North Korea, 
                except as may be excluded from such definition by the 
                President in accordance with section 207(d);
                  (C) any financial institution, wherever located, 
                owned or controlled by the Government of North Korea; 
                and
                  (D) any financial institution, wherever located, 
                owned or controlled by a financial institution 
                described in subparagraph (A), (B), or (C).
          (10) Other stores of value.--The term ``other stores of 
        value'' means--
                  (A) prepaid access devices, tangible or intangible 
                prepaid access devices, or other instruments or devices 
                for the storage or transmission of value, as defined in 
                part 1010 of title 31, Code of Federal Regulations; and
                  (B) any covered goods, as defined in section 1027.100 
                of title 31, Code of Federal Regulations, and any 
                instrument or tangible or intangible access device used 
                for the storage and transmission of a representation of 
                covered goods, or other device, as defined in section 
                1027.100 of title 31, Code of Federal Regulations.
          (11) Person.--The term ``person'' means an individual or 
        entity as determined by the Secretary of State and the 
        Secretary of the Treasury.
          (12) Significant activities undermining cyber security.--The 
        term ``significant activities undermining cyber security'' 
        means--
                  (A) significant efforts to--
                          (i) deny access to or degrade, disrupt, or 
                        destroy an information and communications 
                        technology system or network; or
                          (ii) exfiltrate information from such a 
                        system or network without authorization;
                  (B) significant destructive malware attacks;
                  (C) significant denial of service activities; or
                  (D) such other significant activities as may be 
                described in regulations promulgated to implement 
                section 104.
          (13) United states person.--The term ``United States person'' 
        means--
                  (A) a natural person who is a citizen of the United 
                States or who owes permanent allegiance to the United 
                States; and
                  (B) a corporation or other legal entity which is 
                organized under the laws of the United States, any 
                State or territory thereof, or the District of 
                Columbia, if natural persons described in subparagraph 
                (A) own, directly or indirectly, more than 50 percent 
                of the outstanding capital stock or other beneficial 
                interest in such legal entity.

       TITLE I--INVESTIGATIONS, PROHIBITED CONDUCT, AND PENALTIES

SEC. 101. STATEMENT OF POLICY.

  In order to achieve the peaceful disarmament of North Korea, Congress 
finds that it is necessary--
          (1) to encourage all states to fully and promptly implement 
        United Nations Security Council Resolution 2094 (2013);
          (2) to sanction--
                  (A) persons that facilitate proliferation of weapons 
                of mass destruction, illicit activities, arms 
                trafficking, imports of luxury goods, cash smuggling, 
                censorship, and knowingly engage in significant 
                activities undermining cyber security by the Government 
                of North Korea; and
                  (B) persons that fail to exercise due diligence to 
                ensure that financial institutions do not facilitate 
                any of the activities described in subparagraph (A) by 
                the Government of North Korea;
          (3) to deny the Government of North Korea access to the funds 
        it uses to obtain nuclear weapons, ballistic missiles, 
        offensive cyber capabilities, and luxury goods instead of 
        providing for the needs of its people; and
          (4) to enforce sanctions in a manner that avoids any adverse 
        humanitarian impact on the people of North Korea to the extent 
        possible and in a manner that does not unduly constrain the 
        enforcement of such sanctions.

SEC. 102. INVESTIGATIONS.

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

SEC. 103. BRIEFING TO CONGRESS.

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

SEC. 104. DESIGNATION OF PERSONS FOR PROHIBITED CONDUCT AND MANDATORY 
                    AND DISCRETIONARY DESIGNATION AND SANCTIONS 
                    AUTHORITIES.

  (a) Prohibited Conduct and Mandatory Designation and Sanctions 
Authority.--
          (1) Conduct described.--Except as provided in section 207, 
        the President shall designate under this subsection any person 
        the President determines to--
                  (A) have knowingly engaged in significant activities 
                or transactions with the Government of North Korea that 
                have materially contributed to the proliferation of 
                weapons of mass destruction or their means of delivery 
                (including missiles capable of delivering such 
                weapons), including any efforts to manufacture, 
                acquire, possess, develop, transport, transfer, or use 
                such items;
                  (B) have knowingly imported, exported, or reexported 
                to, into, or from North Korea any significant arms or 
                related materiel, whether directly or indirectly;
                  (C) have knowingly provided significant training, 
                advice, or other services or assistance, or engaged in 
                significant transactions, related to the manufacture, 
                maintenance, or use of any arms or related materiel to 
                be imported, exported, or reexported to, into, or from 
                North Korea, or following their importation, 
                exportation, or reexportation to, into, or from North 
                Korea, whether directly or indirectly;
                  (D) have knowingly, directly or indirectly, imported, 
                exported, or reexported significant luxury goods to or 
                into North Korea;
                  (E) have knowingly engaged in or been responsible for 
                censorship by the Government of North Korea, including 
                prohibiting, limiting, or penalizing the exercise of 
                freedom of expression or assembly, limiting access to 
                print, radio or other broadcast media, Internet or 
                other electronic communications, or the facilitation or 
                support of intentional frequency manipulation that 
                would jam or restrict an international signal;
                  (F) have knowingly engaged in or been responsible for 
                serious human rights abuses by the Government of North 
                Korea, including torture or cruel, inhuman, or 
                degrading treatment or punishment, prolonged detention 
                without charges and trial, forced labor or trafficking 
                in persons, causing the disappearance of persons by the 
                abduction and clandestine detention of those persons, 
                and other denial of the right to life, liberty, or the 
                security of a person;
                  (G) have knowingly, directly or indirectly, engaged 
                in acts of money laundering, the counterfeiting of 
                goods or currency, bulk cash smuggling, narcotics 
                trafficking, or other illicit activity that involves or 
                supports the Government of North Korea or any senior 
                official thereof, whether directly or indirectly; or
                  (H) have knowingly attempted to engage in any of the 
                conduct described in subparagraphs (A) through (G) of 
                this paragraph.
          (2) Effect of designation.--With respect to any person 
        designated under this subsection, the President--
                  (A) shall exercise the authorities of the 
                International Emergency Economic Powers Act (50 U.S.C. 
                1705 et seq.) to block all property and interests in 
                property of any person designated under this subsection 
                that are in the United States, that hereafter come 
                within the United States, or that are or hereafter come 
                within the possession or control of any United States 
                person, including any overseas branch; and
                  (B) may apply any of the sanctions described in 
                sections 204, 205(c), and 206.
          (3) Penalties.--The penalties provided for in section 206 of 
        the International Emergency Economic Powers Act (50 U.S.C. 
        1705) shall apply to a person who violates, attempts to 
        violate, conspires to violate, or causes a violation of any 
        prohibition provided for in this subsection, or of an order or 
        regulation prescribed under this Act, to the same extent that 
        such penalties apply to a person that commits an unlawful act 
        described in section 206(a) of that Act (50 U.S.C. 1705(a)).
          (4) Definition.--In paragraph (1)(F), the term ``trafficking 
        in persons'' has the meaning given the term in section 103(9) 
        of the Trafficking Victims Protection Act of 2000 (22 U.S.C. 
        7102(9)).
  (b) Discretionary Designation and Sanctions Authority.--
          (1) Conduct described.--Except as provided in section 207 and 
        paragraph (3) of this subsection, the President may designate 
        under this subsection any person that the President determines 
        to--
                  (A) have knowingly engaged in, contributed to, 
                assisted, sponsored, or provided financial, material or 
                technological support for, or goods and services in 
                support of, any violation of, or evasion of, an 
                applicable United Nations Security Council resolution;
                  (B) have knowingly facilitated the transfer of any 
                funds, financial assets, or economic resources of, or 
                property or interests in property of a person 
                designated under an applicable Executive order, or by 
                the United Nations Security Council pursuant to an 
                applicable United Nations Security Council resolution;
                  (C) have knowingly facilitated the transfer of any 
                funds, financial assets, or economic resources, or any 
                property or interests in property derived from, 
                involved in, or that has materially contributed to 
                conduct prohibited by subsection (a) or an applicable 
                United Nations Security Council resolution;
                  (D) have knowingly facilitated any transaction, 
                including any transaction in bulk cash or other stores 
                of value, without applying enhanced monitoring to 
                ensure that such transaction does not contribute 
                materially to conduct described in subsection (a) an 
                applicable Executive order, or an applicable United 
                Nations Security Council resolution;
                  (E) have knowingly facilitated any transactions in 
                cash or monetary instruments or other stores of value, 
                including through cash couriers transiting to or from 
                North Korea, used to facilitate any conduct prohibited 
                by an applicable United Nations Security Council 
                resolution;
                  (F) have knowingly, directly or indirectly, engaged 
                in significant activities undermining cyber security 
                for, in support of on behalf of, the Government of 
                North Korea or any senior official thereof, or have 
                knowingly contributed to the bribery of an official of 
                the Government of North Korea, the misappropriation, 
                theft, or embezzlement of public funds by, or for the 
                benefit of, an official of the Government of North 
                Korea, or the use of any proceeds of any such conduct; 
                or
                  (G) have knowingly and materially assisted, 
                sponsored, or provided significant financial, material, 
                or technological support for, or goods or services to 
                or in support of, the conduct described in 
                subparagraphs (A) through (F) of this paragraph or the 
                conduct described in subparagraphs (A) through (G) of 
                subsection (a)(1).
          (2) Effect of designation.--With respect to any person 
        designated under this subsection, the President--
                  (A) may apply the sanctions described in section 204;
                  (B) may apply any of the special measures described 
                in section 5318A of title 31, United States Code;
                  (C) may prohibit any transactions in foreign exchange 
                that are subject to the jurisdiction of the United 
                States and in which such person has any interest;
                  (D) may prohibit any transfers of credit or payments 
                between financial institutions or by, through, or to 
                any financial institution, to the extent that such 
                transfers or payments are subject to the jurisdiction 
                of the United States and involve any interest of the 
                person; and
                  (E) may exercise the authorities of the International 
                Emergency Economic Powers Act (50 U.S.C. 1705 et seq.) 
                without regard to section 202 of such Act to block any 
                property and interests in property of any person 
                designated under this subsection that are in the United 
                States, that hereafter come within the United States, 
                or that are or hereafter come within the possession or 
                control of any United States person, including any 
                overseas branch.
          (3) Limitation.--If the President determines that a person 
        has engaged in any conduct described in subparagraphs (A) 
        through (F) of paragraph (1) that may also be construed to 
        constitute conduct described in subparagraphs (A) through (H) 
        of subsection (a)(1), the President may not designate the 
        person under this subsection but rather shall designate the 
        person under subsection (a).
  (c) Blocking of All Property and Interests in Property of the 
Government of North Korea and the Worker's Party of Korea.--Except as 
provided in section 207, the President shall exercise the authorities 
of the International Emergency Economic Powers Act (50 U.S.C. 1705 et 
seq.) to block all property and interests in property of the Government 
of North Korea or the Worker's Party of Korea that on or after the date 
of the enactment of this Act come within the United States, or that 
come within the possession or control of any United States person, 
including any overseas branch.
  (d) Application.--The designation of a person under subsection (a) or 
(b) and the blocking of property and interests in property under 
subsection (c) shall also apply with respect to a person who is 
determined to be owned or controlled by, or to have acted or purported 
to act for or on behalf of, directly or indirectly, any person whose 
property and interests in property are blocked pursuant to this 
section.
  (e) Licensing.--
          (1) License required.--Not later than 180 days after the date 
        of enactment of this Act, the President shall promulgate 
        regulations prohibiting United States persons from engaging in 
        any transaction involving any property--
                  (A) in which the Government of North Korea has an 
                interest;
                  (B) located in North Korea;
                  (C) of North Korean origin; or
                  (D) knowingly transferred, directly or indirectly, to 
                the Government of North Korea.
          (2) Transaction licensing.--The President shall deny or 
        revoke any license for any transaction that, in the 
        determination of the President, lacks sufficient financial 
        controls to ensure that such transaction will not facilitate 
        any of the conduct described in subsection (a) or subsection 
        (b).
          (3) Licensing authorization.--
                  (A) In general.--Subject to subparagraph (B), the 
                President may issue regulations to authorize--
                          (i) transactions for the purposes described 
                        in section 207; and
                          (ii) transactions and activities authorized 
                        under North Korean Human Rights Act of 2004 (22 
                        U.S.C. 7801 et seq.).
                  (B) Prohibition.--The President may not issue 
                regulations to authorize transactions under clause (i) 
                or (ii) of subparagraph (A) if such transactions 
                include any transactions with the Government of North 
                Korea.

SEC. 105. FORFEITURE OF PROPERTY.

  (a) Amendment to Property Subject to Forfeiture.--Section 981(a)(1) 
of title 18, United States Code, is amended by adding at the end the 
following new subparagraph:
          ``(I) Any property, real or personal, that is involved in a 
        violation or attempted violation, or which constitutes or is 
        derived from proceeds traceable to a violation, of section 
        104(a) of the North Korea Sanctions Enforcement Act of 2015.''.
  (b) Amendment to Definition of Civil Forfeiture Statute.--Section 
983(i)(2)(D) of title 18, United States Code, is amended--
          (1) by striking ``or the International Emergency Economic 
        Powers Act'' and inserting ``, the International Emergency 
        Economic Powers Act''; and
          (2) by adding at the end before the semicolon the following: 
        ``, or the North Korea Sanctions Enforcement Act of 2015''.
  (c) Amendment to Definition of Specified Unlawful Activity.--Section 
1956(c)(7)(D) of title 18, United States Code, is amended--
          (1) by striking ``or section 92 of the Atomic Energy Act of 
        1954'' and inserting ``section 92 of the Atomic Energy Act of 
        1954''; and
          (2) by adding at the end the following: ``, or section 104(a) 
        of the North Korea Sanctions Enforcement Act of 2015;''.

 TITLE II--SANCTIONS AGAINST NORTH KOREAN PROLIFERATION, HUMAN RIGHTS 
  ABUSES, ILLICIT ACTIVITIES, AND SIGNIFICANT ACTIVITIES UNDERMINING 
                             CYBER SECURITY

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

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

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

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

SEC. 203. PROLIFERATION PREVENTION SANCTIONS.

  (a) Export of Certain Goods or Technology.--
          (1) In general.--Subject to section 207(a)(2)(C) of this Act, 
        a license shall be required for the export to North Korea of 
        any goods or technology subject to the Export Administration 
        Regulations (part 730 of title 15, Code of Federal Regulations) 
        without regard to whether the Secretary of State has designated 
        North Korea as a country the government of which has provided 
        support for acts of international terrorism, as determined by 
        the Secretary of State under section 6(j) of the Export 
        Administration Act of 1979 (50 U.S.C. App. 2045), as continued 
        in effect under the International Emergency Economic Powers 
        Act.
          (2) Presumption of denial.--A license for the export to North 
        Korea of any goods or technology as described in paragraph (1) 
        shall be subject to a presumption of denial.
  (b) Transactions With Countries Supporting Acts of International 
Terrorism.--
          (1) Arms export control act prohibitions.--The prohibitions 
        and restrictions described in section 40 of the Arms Export 
        Control Act (22 U.S.C. 2780), and other provisions provided for 
        in that Act, shall also apply to exporting or otherwise 
        providing (by sale, lease or loan, grant, or other means), 
        directly or indirectly, any munitions item to the Government of 
        North Korea without regard to whether or not North Korea is a 
        country with respect to which subsection (d) of such section 
        (relating to designation of state sponsors of terrorism) 
        applies.
          (2) Financial transactions.--Except as provided in section 
        207 of this Act and the North Korean Human Rights Act of 2004 
        (22 U.S.C. 7801 et seq.), the penalties provided for in section 
        2332d of title 18, United States Code, shall apply to a United 
        States person that engages in a financial transaction with the 
        Government of North Korea on or after the date of the enactment 
        of this Act to the same extent that such penalties apply to a 
        United States citizen that commits an unlawful act described in 
        section 2332d of title 18, United States Code.
  (c) Transactions in Lethal Military Equipment.--
          (1) In general.--The President shall withhold assistance 
        under the Foreign Assistance Act of 1961 (22 U.S.C. 2151 et 
        seq.) to any country that provides lethal military equipment 
        to, or receives lethal military equipment from, the Government 
        of North Korea.
          (2) Applicability.--The prohibition under this subsection 
        with respect to a country shall terminate on the date that is 1 
        year after the date on which such country ceases to provide 
        lethal military equipment to the Government of North Korea.
          (3) Waiver.--The President may, on a case-by-case basis, 
        waive the prohibition under this subsection with respect to a 
        country for a period of not more than 180 days, and may renew 
        the waiver for additional periods of not more than 180 days, if 
        the President determines and so reports to the appropriate 
        congressional committees that it is vital to the national 
        security interests of the United States to exercise such waiver 
        authority.

SEC. 204. PROCUREMENT SANCTIONS.

  (a) In General.--Except as provided in this section, the United 
States Government may not procure, or enter into any contract for the 
procurement of, any goods or services from any designated person.
  (b) FAR.--The Federal Acquisition Regulation issued pursuant to 
section 1303 of title 41, United States Code, shall be revised to 
require a certification from each person that is a prospective 
contractor that such person does not engage in any of the conduct 
described in subsection (a) or (b) of section 104. Such revision shall 
apply with respect to contracts in an amount greater than the 
simplified acquisition threshold (as defined in section 134 of title 
41, United States Code) for which solicitations are issued on or after 
the date that is 90 days after the date of the enactment of this Act.
  (c) Termination of Contracts and Initiation of Suspension and 
Debarment Proceeding.--
          (1) Termination of contracts.--Except as provided in 
        paragraph (2), the head of an executive agency shall terminate 
        a contract with a person who has provided a false certification 
        under subsection (b).
          (2) Waiver.--The head of an executive agency may waive the 
        requirement under paragraph (1) with respect to a person based 
        upon a written finding of urgent and compelling circumstances 
        significantly affecting the interests of the United States. If 
        the head of an executive agency waives the requirement under 
        paragraph (1) for a person, the head of the agency shall submit 
        to the appropriate congressional committees, within 30 days 
        after the waiver is made, a report containing the rationale for 
        the waiver and relevant information supporting the waiver 
        decision.
          (3) Initiation of suspension and debarment proceeding.--The 
        head of an executive agency shall initiate a suspension and 
        debarment proceeding against a person who has provided a false 
        certification under subsection (b). Upon determination of 
        suspension, debarment, or proposed debarment, the agency shall 
        ensure that such person is entered into the Governmentwide 
        database containing the list of all excluded parties ineligible 
        for Federal programs pursuant to Executive Order No. 12549 (31 
        U.S.C. 6101 note; relating to debarment and suspension) and 
        Executive Order No. 12689 (31 U.S.C. 6101 note; relating to 
        debarment and suspension).
  (d) Clarification Regarding Certain Products.--The remedies specified 
in subsections (a) through (c) shall not apply with respect to the 
procurement of eligible products, as defined in section 308(4) of the 
Trade Agreements Act of 1979 (19 U.S.C. 2518(4)), of any foreign 
country or instrumentality designated under section 301(b) of such Act 
(19 U.S.C. 2511(b)).
  (e) Rule of Construction.--Nothing in this subsection may be 
construed to limit the use of other remedies available to the head of 
an executive agency or any other official of the Federal Government on 
the basis of a determination of a false certification under subsection 
(b).
  (f) Executive Agency Defined.--In this section, the term ``executive 
agency'' has the meaning given such term in section 133 of title 41, 
United States Code.

SEC. 205. ENHANCED INSPECTIONS AUTHORITIES.

  (a) Report Required.--Not later than 180 days after the date of the 
enactment of this Act, and every 180 days thereafter, the President, 
acting through the Secretary of Homeland Security, shall submit to the 
appropriate congressional committees, the Committee on Homeland 
Security of the House of Representatives, and the Committee on Homeland 
Security and Governmental Affairs of the Senate, a report identifying 
foreign sea ports and airports whose inspections of ships, aircraft, 
and conveyances originating in North Korea, carrying North Korean 
property, or operated by the Government of North Korea are deficient to 
effectively prevent the facilitation of any of the activities described 
in section 104(a).
  (b) Enhanced Security Targeting Requirements.--Not later than 180 
days after the identification of any sea port or airport pursuant to 
subsection (a), the Secretary of Homeland Security shall, utilizing the 
Automated Targeting System operated by the National Targeting Center in 
U.S. Customs and Border Protection, require enhanced screening 
procedures to determine if physical inspections are warranted of any 
cargo bound for or landed in the United States that has been 
transported through such sea port or airport if there are reasonable 
grounds to believe that such cargo contains goods prohibited under this 
Act.
  (c) Seizure and Forfeiture.--A vessel, aircraft, or conveyance used 
to facilitate any of the activities described in section 104(a) that 
comes within the jurisdiction of the United States may be seized and 
forfeited under chapter 46 of title 18, United States Code, or under 
the Tariff Act of 1930.

SEC. 206. TRAVEL SANCTIONS.

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

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

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

SEC. 208. REPORT ON THOSE RESPONSIBLE FOR KNOWINGLY ENGAGING IN 
                    SIGNIFICANT ACTIVITIES UNDERMINING CYBER SECURITY.

  (a) In General.--The President shall submit to the appropriate 
congressional committees a report on significant activities undermining 
cyber security conducted, or otherwise ordered or controlled, directly 
or indirectly, by the Government of North Korea, including--
          (1) the identity and nationality of persons that have 
        knowingly engaged in, directed, or provided material support to 
        significant activities undermining cyber security by the 
        Government of North Korea;
          (2) the conduct engaged in by each person identified;
          (3) the extent to which a foreign government has provided 
        material support to significant activities undermining cyber 
        security conducted, or otherwise ordered or controlled by, the 
        Government of North Korea; and
          (4) the efforts made by the United States to engage foreign 
        governments to halt the capability of North Korea to conduct 
        significant activities undermining cyber security.
  (b) Submission and Form.--
          (1) Submission.--The report required under subsection (a) 
        shall be submitted not later than 90 days after the date of 
        enactment of this Act, and every 180 days thereafter for a 
        period not to exceed 3 years.
          (2) Form.--The report required under subsection (a) shall be 
        submitted in an unclassified form, but may contain a classified 
        annex.

SEC. 209. SENSE OF CONGRESS THAT TRILATERAL COOPERATION AMONG THE 
                    UNITED STATES, JAPAN, AND THE REPUBLIC OF KOREA IS 
                    CRUCIAL TO THE STABILITY OF THE ASIA-PACIFIC 
                    REGION.

  (a) Findings.--Congress finds the following:
          (1) The United States, Japan, and the Republic of Korea 
        (South Korea) share the values of democracy, free and open 
        markets, the rule of law, and respect for human rights.
          (2) The alliance relationship between the United States, 
        Japan, and South Korea are critical to peace and security in 
        the Asia-Pacific region.
          (3) The United States, Japan, and South Korea are committed 
        to continuing diplomatic efforts to ensure continued peace and 
        stability in the Asia-Pacific region.
          (4) On December 28, 2014, the United States, Japan, and South 
        Korea finalized a trilateral military intelligence-sharing 
        arrangement concerning the nuclear and missile threats posed by 
        North Korea.
          (5) The trilateral military intelligence-sharing arrangement 
        reinforces and strengthens the commitment between the United 
        States, Japan, and South Korea toward a Korean Peninsula free 
        of nuclear weapons.
  (b) Sense of Congress.--It is the sense of Congress that North 
Korea's nuclear and ballistic missile programs are of mutual concern to 
the United States, Japan, and South Korea and a trilateral military 
intelligence-sharing arrangement is essential to the security of each 
nation and the Asia-Pacific region.

SEC. 210. REPORT ON NUCLEAR PROGRAM COOPERATION BETWEEN NORTH KOREA AND 
                    IRAN.

  (a) In General.--The President shall submit to the Committee on 
Foreign Affairs of the House of Representatives and the Committee on 
Foreign Relations of the Senate a report on cooperation between North 
Korea and Iran on their nuclear programs, including the identity of 
Iranian and North Korean persons that have knowingly engaged in or 
directed the provision of material support or the exchange of 
information between North Korea and Iran on their respective nuclear 
programs.
  (b) Submission and Form.--
          (1) Submission.--The report required under subsection (a) 
        shall be submitted not later than 90 days after the date of 
        enactment of this Act.
          (2) Form.--The report required under subsection (a) shall be 
        submitted in an unclassified form, but may contain a classified 
        annex.

                  TITLE III--PROMOTION OF HUMAN RIGHTS

SEC. 301. INFORMATION TECHNOLOGY.

  Section 104 of the North Korean Human Rights Act of 2004 (22 U.S.C. 
7814) is amended by inserting after subsection (c) the following new 
subsection:
  ``(d) Information Technology Study.--
          ``(1) In general.--Not later than 180 days after the date of 
        the enactment of this subsection, the President shall submit to 
        the appropriate congressional committees a report setting forth 
        a detailed plan for making unrestricted, unmonitored, and 
        inexpensive, radio, Internet, and electronic mass 
        communications available to the people of North Korea.
          ``(2) Form.--The report required by paragraph (1) shall be 
        submitted in unclassified form, but may contain a classified 
        annex.''.

SEC. 302. REPORT ON NORTH KOREAN PRISON CAMPS.

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

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

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

                     TITLE IV--GENERAL AUTHORITIES

SEC. 401. SUSPENSION OF SANCTIONS AND OTHER MEASURES.

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

SEC. 402. TERMINATION OF SANCTIONS AND OTHER MEASURES.

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

SEC. 403. AUTHORITY TO CONSOLIDATE REPORTS.

  Any or all reports required to be submitted to appropriate 
congressional committees under this Act or any amendment 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 that is 
submitted to appropriate congressional committees pursuant to such 
deadline.

SEC. 404. REGULATIONS.

  (a) In General.--The President is authorized to promulgate such rules 
and regulations as may be necessary to carry out the provisions of this 
Act (which may include regulatory exceptions), including under sections 
203 and 205 of the International Emergency Economic Powers Act (50 
U.S.C. 1702 and 1704).
  (b) Rule of Construction.--Nothing in this Act or any amendment made 
by this Act shall be construed to limit the authority of the President 
pursuant to an applicable Executive order or otherwise pursuant to the 
International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.).

SEC. 405. EFFECTIVE DATE.

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

                          Summary and Purpose

    H.R. 757, the North Korea Sanctions Enforcement Act 
(NKSEA), is the first comprehensive sanctions legislation 
directed at North Korea. It is intended to address North 
Korea's nuclear, ballistic missile, and other WMD threats; its 
counterfeiting of U.S. currency and other illicit activities; 
its misuse of the financial system through money laundering; 
its severe human rights abuses; its cyber activities; and other 
activities that violate applicable U.N. Security Council 
resolutions, including arms trafficking, WMD proliferation, and 
luxury goods imports. As of 2014, no comprehensive sanctions 
legislation exists to address these threats.
    The purpose of this legislation is to compel the Government 
of North Korea to verifiably suspend, and ultimately dismantle, 
its nuclear weapons and ballistic missile programs, including, 
but not limited to, the cessation of all uranium enrichment and 
plutonium-related activities. Through the application of broad-
based sanctions, it is also intended to deprive North Korea of 
the resources it requires to develop other unconventional 
weapons and ballistic missiles, acquire destabilizing 
convention weapons that threaten U.S. allies in the region, 
support terrorism in the region and across the globe, and 
engage in the systematic oppression of the people of North 
Korea. Finally, it is intended to force the Government of North 
Korea to accept a degree of transparency that will allow for 
the verification of its commitments, peaceful coexistence with 
its neighbors, including South Korea, and an end to the 
repression of the North Korean people.
    H.R. 757 also reverses, in part, the relaxation of 
sanctions by President Bush in 2008, in response to an abortive 
2007 agreement by North Korea to verifiably dismantle its 
nuclear weapons program. Since the relaxation of these 
sanctions, North Korea has violated its commitments to 
dismantle its nuclear program, and has carried out multiple 
ballistic missile tests and two nuclear weapons tests.
    H.R. 757 would apply sanctions against the Government of 
North Korea with the objectives of compelling the regime to 
change its policies and behavior that threatens the United 
States and the people of North Korea; and deny the regime the 
necessary resources to continue these policies.
    In addition to advancing the aforementioned U.S. foreign 
policy objectives, H.R. 757 supports the interests of U.S. 
treaty allies whose cooperation will be essential to achieving 
U.S. foreign policy objectives. These interests include the 
return of allied nations' abducted citizens and unlawfully 
detained prisoners of war, and allowing for unrestricted 
reunions of separated families.
    H.R. 757 directly targets the foreign assets and income 
sources of the North Korean government and its senior officials 
by blocking those assets as they pass through the dollar-based 
financial system. It also targets North Korea indirectly, by 
sanctioning against third-party entities that facilitate 
sanctioned activities on behalf of the Government of North 
Korea.

                  Background and Need for Legislation

    North Korea's nuclear, ballistic missile, and chemical 
weapons programs, as well as its cyber activities pose a 
significant and rapidly increasing threat to the United States 
and its allies in Northeast Asia. Its suspected proliferation 
of WMD technologies to Iran and Syria, and its suspected supply 
of advanced weapons systems to terrorist organizations, both 
pose a threat to the United States, it allies in the Middle 
East, and other nations.
    Halting and dismantling North Korea's nuclear, ballistic 
missile, and other WMD programs, and ending its capacity to 
proliferate weapons and WMD technology to terrorists and state 
sponsors of terrorism, are vital U.S. national security 
interests.

Legislative Background

    The collapse of North Korea's industrial economy in the 
early 1990s left it highly dependent on external sources of 
hard currency to sustain a population of approximately 23 
million, a mechanized military of 1 million men and women, the 
military-industrial sector that supplies it, its WMD programs, 
and luxury items imported for senior regime officials. Because 
of the impracticality of transferring large sums of cash in 
bulk, North Korea continues to rely on the international 
financial system, and maintains large offshore deposits in 
China and Europe.
    In September 2005, the Treasury Department invoked the 
authority of Section 311 of the USA PATRIOT Act of 2001, Pub. 
L. No. 107-56, and blocked the correspondent accounts of Banco 
Delta Asia. Banco Delta Asia is a small Macau-based bank that, 
according to the Treasury Department, acted as ``a willing 
pawn'' of North Korean agents laundering the proceeds of 
illicit activity, including the counterfeiting of U.S. 
currency. Treasury's designation disconnected Banco Delta Asia 
from the international dollar-based financial system and caused 
a run on the bank. The Government of Macau intervened and 
blocked $25 million in North Korean deposits to prevent the 
bank from collapse. Indirectly, the action caused other banks 
to block other North Korean accounts, or to reject North Korean 
transactions.
    The effect on the regime's finances was devastating. 
Seventeen months after the sanction was imposed on Banco Delta, 
North Korea agreed to dismantle its nuclear weapons program, 
but first insisted that the United States return the $25 
million in blocked North Korean funds, effectively nullifying 
the Section 311 sanction as it applied to North Korea.
    In the intervening years, the Treasury Department has not 
used Section 311 against North Korean entities or funds. It has 
blocked the funds of North Korean individuals and trading 
companies under Executive Order 13,382 (June 25, 2005) and 
Executive Order 13,551 (Aug. 31, 2010), as authorized under the 
International Emergency Economic Powers Act of Act, Pub. L. No. 
95-223, title II, as amended. Only recently in March 2013, did 
it block the property of two North Korean banks, the Foreign 
Trade Bank and Daedong Credit Bank. It has not, however, 
applied broader sanctions to the Government of North Korea, 
such as designating it as a primary money laundering concern 
under Section 311. The Secretary of the Treasury has previously 
applied this designation to the governments of Nauru, Ukraine, 
Burma, and Iran.
    No existing comprehensive sanctions legislation targets 
North Korea's unique threats and vulnerabilities. The Iran, 
North Korea, and Syria Nonproliferation Act, Pub. L. No. 109-
353, reinforces restrictions on exporting WMD and related 
technologies to North Korea, but does not address North Korea's 
acquisition of WMD technologies and components from third 
countries, does not address other significant U.S. interests 
with respect to North Korea, and does not exploit North Korea's 
vulnerability to sanctions against its links to the global 
financial system.
    Since 2005, North Korea has diversified and concealed its 
financial lifelines, but it remains dependent on its access to 
the international financial system. The vast majority of 
international transactions are denominated in dollars, the 
world's reserve currency, and nearly all dollar-denominated 
transactions are cleared through U.S.-based banks regulated by 
the Treasury Department. North Korea continues to use the U.S. 
dollar for many of its international and domestic business 
transactions, and both legitimate and counterfeit U.S. dollars 
circulate widely inside North Korea. Although North Korea hides 
its dollar transactions within the dollar-based financial 
system using false names, shell companies, and other deceptive 
practices, determined financial investigators have defeated 
similar tactics by other rogue states, terrorists, and drug-
trafficking organizations.
    North Korea's reliance on the dollar allows U.S. sanctions 
to reach North Korean assets in two ways. First, if North Korea 
transfers or spends dollar-denominated assets, Treasury can 
block them as they pass through dollar-clearing banks in New 
York. Second, banks that clear North Korea's non-dollar 
transactions or convert its dollars to bulk cash, and 
businesses that facilitate barter transactions, still need 
access to dollar-clearing banks for the majority of their non-
North Korea business. H.R. 757 threatens the access of those 
banks and businesses to the dollar system. Few banks or 
businesses would be willing to take that risk to help North 
Korea evade Treasury sanctions.

North Korea's Nuclear Program

    North Korea's nuclear program dates back to the late 1950s, 
when it signed a nuclear cooperation agreement with the Soviet 
Union. It began to operate a small research reactor in 1967, 
and completed a second, 5-megawatt reactor at Yongbyon in 1986, 
which could produce approximately 6 kilograms of plutonium 
annually. After this point, U.S. satellite imagery showed a 
steady expansion of North Korea's nuclear program, including 
the construction of a reprocessing plant, a 50-megawatt reactor 
at Yongbyon, and a 200-megawatt reactor at Daecheon, although 
neither of these larger reactors is believed to have been 
completed.
    U.S. satellites observed that these reactors were not 
connected to North Korea's electrical grid, and that North 
Korea was conducting tests to separate plutonium from the 5-
megawatt reactor's spent fuel. U.S. intelligence agencies 
concluded that the reactors were part of a nuclear weapons 
program.
    The Soviet Union pressured North Korea to join the Nuclear 
Non-Proliferation Treaty (NPT) in 1985, but North Korea did not 
allow inspections of the reactor until 1992. North Korea has 
only allowed intermittent inspections of its nuclear facilities 
since then, and U.S. intelligence agencies are uncertain of how 
much fissile plutonium North Korea has reprocessed.
    In 2002, U.S. diplomats visited Pyongyang to confront the 
Government of North Korea with evidence that it was pursuing a 
parallel nuclear weapons program through the enrichment of 
uranium, in violation of the 1994 Agreed Framework. North 
Korean diplomats admitted the program's existence at the time, 
but the Government of North Korea subsequently denied it. The 
Bush Administration halted deliveries of fuel oil under the 
Agreed Framework. North Korea expelled IAEA inspectors and 
restarted the reactor, and the 1994 Agreed Framework collapsed.
    On October 9, 2006, North Korea conducted its first nuclear 
test, in Kilju County, North Hamgyeong Province, in 
northeastern North Korea. In response to the test, the U.N. 
Security Council approved Resolution 1718, which prohibited 
North Korea's nuclear, missile, chemical and biological weapons 
programs; prohibited North Korea from selling or purchasing 
most arms and related material (except for imports of light 
weapons); and prohibited North Korea from importing luxury 
goods.
    In September 2007, Israeli warplanes bombed a nuclear 
reactor in Al Kibar, Syria. A video produced and released by 
the Central Intelligence Agency cited evidence that the design 
of the Al Kibar reactor was based on the design of the Yongbyon 
reactor in North Korea, and that North Korean nuclear 
scientists had assisted with the reactor's design and 
construction.
    On May 25, 2009, North Korea conducted a second nuclear 
weapons test. The United Nations responded with Security 
Council Resolution 1874, which tightened sanctions under 
Resolution 1718 and imposed new shipping sanctions intended to 
curb North Korean proliferation.
    In November 2010, North Korea revealed the existence of an 
advanced uranium enrichment program at an underground facility 
at Yongbyon, which contained a cascade of 3,000 centrifuges 
based on a Pakistani design obtained from the A.Q. Khan 
network. The revelation confirmed longstanding suspicions that 
North Korea was pursuing a parallel nuclear weapons program, a 
program that likely dated back to the life span of the 1994 
Agreed Framework.
    In May of 2012, North Korea amended its constitution to 
declare itself ``a nuclear state.''
    On February 12, 2013, North Korea conducted a third nuclear 
test. The New York Times quoted an unidentified Obama 
Administration official, who suggested that North Korea may 
have cooperated with the Government of Iran in conducting the 
nuclear test. The U.N. Security Council responded with 
Resolution 2094, which tightened financial sanctions. It 
imposed additional financial due diligence requirements on 
governments and banks to block, or prevent the provision to 
North Korea of, assets that could be used for North Korea's WMD 
programs.
    On March 30, 2014, North Korea threatened to conduct an 
unspecified ``new form'' of nuclear test. As of 2014, North 
Korea is believed to possess between four and eight plutonium-
based nuclear weapons, and an unknown number of uranium-based 
weapons.

North Korea's Ballistic Missile Program

    North Korea continues to develop multiple types of 
ballistic missiles that could threaten the Republic of Korea, 
Japan, and the United States. North Korea is also believed to 
have supplied ballistic missile technology to Iran, Syria, and 
Yemen. According to David Kay, the head of the Iraq Survey 
Group, the Government of Iraq paid the Government of North 
Korea $10 million to supply it with Nodong-1 missiles; however, 
the 2003 U.S. invasion aborted the delivery of the missiles.
    North Korea has carried out multiple tests of its short-
range ballistic missiles since the 1990s. Although the United 
States has since deployed PAC-3 Patriot and Standard-3 missiles 
to protect U.S. allies and U.S. forces in the region, North 
Korea recently tested a 300-millimeter multiple-launch rocket 
system that may be capable of carrying chemical warheads. North 
Korea first tested its intermediate-range missile in 1998, 
directly overflying Japan with its trajectory.
    North Korea is also developing long-range missiles capable 
of striking the United States. The Taepodong-2 missile, which 
North Korea has tested five times between 2006 and 2012, may 
have sufficient range to reach the West Coast of the United 
States. The Unha-3, which was tested unsuccessfully in April 
2012 and successfully in December 2012, has demonstrated a 
capability to launch a satellite into space and hit targets 
more than 6,000 miles away, including the West Coast of the 
United States. Another possible intercontinental ballistic 
missile system, the KN-08, is not known to have been tested.

North Korea's Chemical and Biological Weapons Programs

    North Korea's chemical weapons program dates back to the 
1950s, and was established with Soviet and Chinese assistance. 
The North Korean military is believed to have produced blood, 
blister, nerve, and choking agents. Former North Korean prison 
camp guards have alleged that they witnessed chemical agents 
being tested on prisoners, including an entire family 
consisting of a father, mother, son, and daughter who were 
gassed at Camp 22, near the city of Hoeryong, as part of an 
experiment.
    In 2012, a United Nations Panel of Experts published 
photographs of chemical protective suits, gas masks, and 
chemical indicator ampoules that were in transit from North 
Korea to Syria. Open-source media reports alleged that in 2013, 
North Korea continued to provide assistance to Syria's chemical 
weapons program.
    North Korea is also believed to possess biological weapons, 
including anthrax. In 1998, U.S. military personnel in the 
Republic of Korea were required to be vaccinated against 
anthrax.

North Korea's Cyber Threat

    For years, the United States and our allies have been 
rightly concerned about the threat from North Korea's nuclear 
and missile programs. Now, the Kim regime has added a new 
weapon to its arsenal: cyberattacks. The state-sanctioned 
cyber-attack on Sony Pictures reminded us that North Korea's 
weapons are not for show; they are a direct threat to our 
security.
    North Korea's growing cyber capability emerged most starkly 
in 2013. South Korea suffered a series of cyberattacks that 
damaged its commercial and media networks, and disrupted 
banking services. Despite limited Internet capacity in the 
North Korea, defectors and security experts point to an elite 
cyber warfare unit known as ``Bureau 121'' as the source of 
these attacks.
    Last year's cyber-attack is estimated to have cost Sony 
hundreds of millions of dollars in damage to the company and 
its assets. This was not an act of ``vandalism'' but a state-
sanctioned attack that is of significant concern. Many are 
wonder that if North Korea can do to a movie company, how 
vulnerable is the rest of our critical infrastructure, such as 
our energy grid?

North Korea's Attacks and Threats Against South Korea

    North Korea's foreign policy objective continues to be to 
reunify the Korean Peninsula under the rule of the Government 
of North Korea. It has repeatedly expressed its disapproval of 
actions by the governments of South Korea, Japan, and the 
United States by threatening to turn their capital cities into 
a ``sea of fire,'' or similar threats. North Korea has also 
used its official state media to threaten foreign newspapers, 
government officials, and human rights activists.
    On March 26, 2010, a Republic of Korea naval corvette, the 
ROKS Cheonan, exploded and sank near Baekryeong Island in the 
Yellow Sea, with the loss of 44 personnel. An international 
Civilian-Military Investigation Group was convened, and 
concluded that the ROKS Cheonan was destroyed by a torpedo 
fired by a North Korean submarine. North Korea has denied 
responsibility for the attack.
    On November 23, 2010, North Korean artillery in South 
Hwanghae Province shelled a village on Yeonpyeong Island, South 
Korea, killing two civilians and two Republic of Korea Marines. 
North Korea admitted responsibility for the attack, but blamed 
it on South Korean live-fire exercises in the waters near 
Yeonpyeong Island.

North Korea's Sponsorship of Terrorism

    President Bush removed North Korea from the list of state 
sponsors of terrorism on October 11, 2008. Since this date, 
multiple North Korean agents--including two Korean Peoples' 
Army officers attached to the Reconnaissance Bureau of the 
Workers' Party of Korea--have been convicted in South Korean 
courts of attempting to assassinate North Korean exiles, 
planning to assassinate South Korean military officers, and 
kidnapping one U.S. resident, who is believed to have died in 
North Korea. North Korean agents are suspected of other 
completed and attempted assassinations of human rights 
activists in China.
    North Korea has long harbored terrorists of the Japanese 
Red Army, recently assisted Hezbollah in constructing a network 
of tunnels and bunkers, and according to published reports, 
supplied weapons to the Liberation Tigers of Tamil Eelam.
    In 2009, North Korean weapons shipments were intercepted in 
Bangkok, Thailand, and Dubai, United Arab Emirates. The Foreign 
Minister of Israel has publicly stated that the intended end 
users of these weapons included Hamas and Hezbollah, both 
designated terrorist organizations. The weapons intercepted in 
Bangkok included advanced man-portable surface-to-air missiles.
    According to a 2014 United Nations Panel of Experts, in 
2009, the Israeli Navy intercepted a third shipment of similar 
weapons in transit from Iran to Syria, although no further 
information is available on the intended end user of the 
weapons. The same 2014 U.N. report found that the fuses of 333-
millimeter rockets fired into Israel by Hamas were consistent 
with similar rocket fuses of North Korean manufacture.

North Korea's Human Rights Abuses

    In February of 2014, a Commission of Inquiry appointed by 
the United Nations Human Rights Council found that the 
Government of North Korea was responsible for crimes against 
humanity. The United States and other nations have important 
humanitarian interests in deterring, sanctioning, and ending 
these abuses.
    In its final report, the Commission of Inquiry recommended 
targeted sanctions against persons responsible for these 
abuses. Correspondence from the Commission Chairman Michael 
Kirby to Kim Jong Un calls on Kim Jong Un to investigate the 
individual responsibility of North Korean officials for these 
abuses, ``to render accountable all those, including possibly 
yourself, who may be responsible for crimes against humanity.''
    These abuses documented by the Commission of Inquiry 
include the operation of a system of political prison camps 
that contain as many as 120,000 men, women, and children, and 
in which an estimated 400,000 North Koreans have already died. 
Witnesses reports that prisoners in the camps are provided 
inadequate food and medical care, and that prisoners suffer 
high mortality rates from disease and starvation. Working 
conditions are severe and unsafe, and guards frequently kill or 
torture prisoners.
    The report finds evidence that North Korea targets the 
children of refugee women repatriated from China with forced 
abortions and infanticide, and cites the testimony of a woman 
who was forced to drown her own baby in a bucket.
    It finds that the Government of North Korea has deprived 
many of its citizens of food, even as it expended large sums of 
money on WMD programs, conventional weapons, luxury items, and 
leisure facilities for senior regime officials. It further 
finds that in the 1990s, the Government of North Korea impeded 
the delivery of food aid to starving North Koreans during a 
famine. Estimates for the death toll from the famine vary 
between 600,000 and 2.5 million people.
    North Korea is believed to have kidnapped 82,959 South 
Koreans during the Korean War; an additional 3,721 South 
Koreans since the Korean War; between 12 and 100 Japanese; 
approximately 200 Chinese, most of them ethnic Koreans who 
assisted North Korean refugees; and citizens of Lebanon, 
Thailand, Romania, and possibly other countries.

Negotiations

    Repeated diplomatic efforts by the United States and other 
governments have failed to dismantle North Korea's nuclear 
program. Under the Agreed Framework of 1994, North Korea 
initially shut down the 5-megawatt reactor, allowed inspectors 
to monitor NPT safeguards, and agreed to its eventual 
dismantlement in exchange for aid, including heavy fuel oil and 
the construction of two light-water reactors in Sinpo County, 
South Hamgyeong Province, along North Korea's East Coast.
    In 1997, the Board of Governors of the International Atomic 
Energy Agency (IAEA) reported that its inspectors were still 
unable to verify North Korea's initial declaration, and that 
North Korea still had not complied with NPT safeguards. North 
Korea also prevented IAEA inspectors from taking samples and 
installing monitoring devices.
    In 1998, North Korean tested a Taepodong-1 intermediate 
range ballistic missile, whose trajectory passed over Japan. 
Congress also became concerned about intelligence that North 
Korea was pursuing a parallel uranium-enrichment program.
    Diplomatic efforts resumed in 2003, when the first Six-
Party Talks were held. The nations represented were the United 
States, China, South Korea, Japan, Russia, and North Korea. 
Talks made little progress until September 2005, when the six 
parties agreed to a Joint Statement affirming North Korea's 
commitment to the complete, verifiable, and irreversible 
dismantlement of its nuclear programs. Within a day of signing 
the agreement, however, North Korea stated that its commitment 
was contingent on the completion of the light-water reactors, a 
term that was not mentioned in the Joint Statement and which 
would take several years and a substantial financial investment 
to fulfill.
    On February 13, 2007, the Bush Administration and North 
Korea reached a Second Agreed Framework, under which North 
Korean would shut down the Yongbyon reactor in exchange for a 
delivery of 1 million tons of heavy fuel oil. Eventually, North 
Korea would declare all of its nuclear weapons programs and 
implement the Joint Statement, dismantling its nuclear weapons 
program permanently.
    The agreement began to break down within months. North 
Korea delayed the shut-down of its reactor until it received 
$25 million in blocked funds from Banco Delta Asia. In 
September, Israeli warplanes destroyed a nuclear reactor in 
Syria that had been built with North Korean assistance. North 
Korea failed to submit timely and accurate declarations of its 
nuclear weapons programs, and continued to deny the existence 
of its uranium-enrichment program, even after submitting 
documents and samples of aluminum tubing that contained traces 
of enriched uranium.
    Although the Bush Administration relaxed sanctions against 
North Korea in 2008 and removed the Government of North Korea 
from the list of state sponsors of terrorism, North Korea 
refused to implement a verification protocol and declared that 
it would never relinquish its nuclear weapons programs.
    North Korea has not attended the Six-Party Talks since 
April 2009, although the United States has held bilateral talks 
with North Korea since then. The Obama Administration has since 
described its policy toward North Korea as one of ``strategic 
patience,'' applying gradual and incremental economic and 
financial pressure until the Government of North Korea is 
prepared to negotiate its disarmament.
    On February 29, 2012, the Obama Administration reached an 
agreement with North Korea to freeze North Korea's ballistic 
missile programs in exchange for 500,000 tons of food aid. Two 
weeks later, North Korea announced a new ``space launch 
vehicle'' test.
    On May 13, 2014, U.S. negotiator Glyn Davies announced that 
the United States would accept ``reversible steps'' in the 
early stages of an agreement to freeze, shut down, and 
dismantle North Korea's nuclear programs. Davies did not 
specify that the United States was willing to offer in exchange 
for those steps, and North Korea has offered no public 
statement suggesting that it is interested in such an 
agreement.

Enforcement of U.N. Security Council Sanctions

    Reports from the United Nations Panel of Experts cite 
numerous examples of nations failing to enforce U.N. Security 
Council Sanctions.
    In particular, the People's Republic of China has 
repeatedly hosted North Korean individuals and entities known 
to be involved in the proliferation of WMD components. North 
Korean shipments of arms and related materiel, WMD components, 
and luxury items have repeatedly been shipped through the ports 
of Dalian, Shanghai, and Hong Kong without inspection. China 
has repeatedly allowed ballistic missile components bound for 
North Korea, or bound from North Korea to Iran, to transit its 
airspace, its ports, and its airports. One state-owned company, 
Hubei Sanjiang Space Wanshan Special Vehicle Company sold North 
Korea six ballistic missile transporter-erector-launcher 
chassis, which it later claimed were ``lumber transporters.'' 
In one case, a U.N.-sanctioned North Korean machinery company 
was openly marketing its products at a Chinese trade fair.
    Targeted financial sanctions directed at banks, business, 
and shipping companies that facilitate North Korea's violation 
of U.N. Security Council Resolutions could be an effective way 
to deter the violation of those resolutions. Ports that fail to 
meet their inspection obligations under Resolution 1874 would 
be targeted for additional inspections of cargo originating in 
those ports.

                                Hearings

    On January 13, 2015, the full committee met and received 
testimony on ``The North Korean Threat: Nuclear, Missiles, and 
Cyber'' (The Honorable Sung Kim, Special Representative for 
North Korea Policy and Deputy Assistant Secretary of State for 
Korea and Japan, U.S. Department of State; The Honorable Daniel 
Glaser, Assistant Secretary for Terrorist Financing, Office of 
Terrorism and Financial Intelligence, U.S. Department of the 
Treasury; and Brigadier General Gregory J. Touhill (USAF, 
retired), Deputy Assistant Secretary for Cybersecurity 
Operations and Programs, U.S. Department of Homeland Security).
    During the 113th Congress, the committee held three 
hearings related to the content of this bill:
    March 5, 2013, full committee hearing on ``North Korea's 
Criminal Activities: Financing the Regime'' (David Asher, 
Ph.D., Non-Resident Senior Fellow, Center for a New American 
Security, and Former Senior Adviser, East Asian and Pacific 
Affairs, and Coordinator, North Korea Working Group, U.S. 
Department of State; Sung-Yoon Lee, Ph.D., Assistant Professor 
in Korean Studies, The Fletcher School of Law and Diplomacy, 
Tufts University; The Honorable Joseph R. DeTrani, President, 
Intelligence and National Security Alliance, and Former 
Director, National Counter Proliferation Center, Office of the 
Director of National Intelligence);
    April 11, 2013, joint hearing of the Subcommittee on Asia 
and the Pacific; Subcommittee on Terrorism, Nonproliferation, 
and Trade; and Subcommittee on the Middle East and North 
Africa, on ``Breaking the Iran, North Korea, and Syria Nexus'' 
(The Honorable R. James Woolsey, Chairman, Foundation for 
Defense of Democracies and Former Director of the Central 
Intelligence Agency; Mr. Henry D. Sokolski, Executive Director, 
Nonproliferation Policy Education Center, and Former Deputy for 
Nonproliferation Policy, U.S. Department of Defense; Mr. David 
Albright, Founder and President, Institute for Science and 
International Security; and Ray Takeyh, Ph.D. Senior Fellow for 
Middle Eastern Studies, Council on Foreign Relations); and
    March 26, 2014, the Subcommittee on Asia and the Pacific 
hearing on ``The Shocking Truth about North Korean Tyranny'' 
(Ms. Grace Jo, Survivor of North Korean human rights abuses; 
Mr. Greg Scarlatoiu, Executive Director, Committee for Human 
Rights in North Korea; Mr. Bruce Klingner, Senior Research 
Fellow, Northeast Asia, The Heritage Foundation).

                        Committee Consideration

    On February 27, 2015, the House Foreign Affairs Committee 
marked up the bill H.R. 757 pursuant to notice, in open 
session. Three amendments were considered en bloc and agreed to 
by voice vote. The bill, as amended, was agreed to by voice 
vote, and by unanimous consent was ordered favorably reported 
to the House as a single amendment in the nature of a 
substitute.

                      Committee Oversight Findings

    In compliance with clause 3(c)(1) of House Rule XIII, the 
committee reports that the findings and recommendations of the 
committee, based on oversight activities under clause 2(b)(1) 
of House Rule X, are incorporated in the descriptive portions 
of this report, particularly the ``Summary and Purpose,'' 
``Background and Need for Legislation,'' and ``Section-by-
Section Analysis'' sections.

      New Budget Authority, Tax Expenditures, and Federal Mandates

    In compliance with clause 3(c)(2) of House Rule XIII and 
the Unfunded Mandates Reform Act (P.L. 104-4), the committee 
adopts as its own the estimate of new budget authority, 
entitlement authority, tax expenditure or revenues, and Federal 
mandates contained in the cost estimate prepared by the 
Director of the Congressional Budget Office pursuant to section 
402 of the Congressional Budget Act of 1974.

               Congressional Budget Office Cost Estimate

                                     U.S. Congress,
                               Congressional Budget Office,
                                    Washington, DC, March 16, 2015.

Hon. Edward R. Royce, Chairman,
Committee on Foreign Affairs,
House of Representatives, Washington, DC.

    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 757, the North 
Korea Sanctions Enforcement Act of 2015.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Sunita 
D'Monte, who can be reached at 226-2840.
            Sincerely,
                                      Douglas W. Elmendorf.
Enclosure

cc:
        Honorable Eliot L. Engel
        Ranking Member

H.R. 757--North Korea Sanctions Enforcement Act of 2015

    As ordered reported by the House Committee on Foreign 
Affairs on February 27, 2015.
    H.R. 757 would expand existing sanctions against North 
Korea. CBO estimates that implementing the bill would cost $10 
million over the 2016-2020 period, assuming appropriation of 
the necessary amounts. Pay-as-you-go procedures apply to this 
legislation because it would affect direct spending and 
revenues; however, CBO estimates that those effects would not 
be significant.
    Provisions of H.R. 757 would increase administrative costs 
of the Department of State and the Department of the Treasury. 
Based on information from the Administration, CBO estimates 
that the departments would hire 10 additional employees to 
implement the bill and would require additional appropriations 
averaging $2 million a year over the 2016-2020 period.
    Sanctions required under the bill would probably increase 
the number of people who would be denied a visa by the 
Secretary of State. Most visa fees are retained by the 
department and spent without further appropriation, but some 
fees are deposited in the Treasury as revenues. CBO estimates 
that implementing those sanction provisions would affect very 
few people, however; thus, they would have an insignificant 
budgetary effect.
    Because the bill would expand the types of prohibited 
activities involving North Korea that are subject to civil and 
criminal penalties under current law, it could increase 
revenues and direct spending from the collection of those 
penalties; however, CBO estimates that the net budgetary effect 
of any additional penalties would be negligible for each year.
    H.R. 757 contains no intergovernmental mandates as defined 
in the Unfunded Mandates Reform Act (UMRA) and would not affect 
the budgets of state, local, or tribal governments. The bill 
would impose private-sector mandates, as defined in UMRA, on 
entities that export goods or services sent as nonhumanitarian 
assistance. Specifically, it would prohibit entities in the 
United States from exporting defense-related items, data, and 
services that are sent as assistance to countries that provide 
military equipment to North Korea. The bill also would impose a 
mandate by requiring the President to revoke licenses for 
transactions that lack financial controls to ensure that such 
transactions will not facilitate the proliferation of weapons 
or human rights abuses by the North Korean government. The cost 
of the mandates would be the forgone net revenues from exports 
or transactions prohibited by the bill. Because of the small 
number of entities that would be affected and the broad scope 
of existing U.S. sanctions against North Korea, CBO expects 
that the aggregate cost of the mandates would fall below the 
annual threshold established in UMRA for private-sector 
mandates ($154 million in 2015, adjusted annually for 
inflation).
    The CBO staff contacts for this estimate are Sunita 
D'Monte, Pamela Greene, and Matthew Pickford (for federal 
costs) and Paige Piper/Bach (for the private-sector impact). 
This estimate was approved by Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.

                          Directed Rule Making

    Pursuant to clause 3(c) of House Rule XIII, as modified by 
section 3(i) of H. Res. 5 during the 114th Congress, the 
committee notes that this bill contains no directed rule-making 
provisions.

                  Non-Duplication of Federal Programs

    Pursuant to clause 3(c) of House Rule XIII, as modified by 
section 3(g)(2) of H. Res. 5 during the 114th Congress, the 
committee states that no provision of this bill establishes or 
reauthorizes a program of the Federal Government known to be 
duplicative of another Federal program, a program that 
wasincluded in any report from the Government Accountability 
Office to Congress pursuant to section 21 of Public Law 111-
139, or a program related to a program identified in the most 
recent Catalog of Federal Domestic Assistance.

                    Performance Goals and Objectives

    The Act is intended to deprive North Korea of the resources 
it requires to further test, develop, produce and weaponize 
nuclear weapons; develop and export other unconventional 
weapons and ballistic missiles; engage in destabilizing 
activities within the region and across the globe; and engage 
in the systematic suppression of the people of North Korea. 
Performance goals associated with these objectives include, but 
are not limited to the following:

          A verifiable decrease in North Korea's 
        ability to fund its nuclear weapons program; and

          A verifiable decrease in North Korea's 
        ability to fund and export its unconventional weapons 
        programs, ballistic missiles and related technology 
        programs, destabilizing types and amounts of 
        conventional weapons, and support for regional 
        destabilization.

                    Congressional Accountability Act

    H.R. 757 does not apply to terms and conditions of 
employment or to access to public services or accommodations 
within the Legislative Branch.

                        New Advisory Committees

    H.R. 757 does not establish or authorize any new advisory 
committees.

                         Earmark Identification

    H.R. 757 contains no congressional earmarks, limited tax 
benefits, or limited tariff benefits as described in clauses 
9(e), 9(f), and 9(g) of House Rule XXI.

                      Section-by-Section Analysis


       TITLE I--INVESTIGATIONS, PROHIBITED CONDUCT, AND PENALTIES

    Section 101. This section states that it is the policy of 
the United States to vigorously pursue sanctions against the 
North Korean government in order to peacefully disarm 
Pyongyang.
    Section 102. This section mandates that the President 
investigate sanctionable conduct involving North Korea upon the 
receipt of credible information that a person or entity has 
engaged in such activity. Among other things, sanctionable 
conduct may include proliferation of weapons of mass 
destruction, arms related materials, luxury goods, and 
counterfeit goods. This provision would prevent any 
Administration from ignoring destructive North Korean behavior.
    Section 103. This section requires the Administration to 
regularly brief Congress on North Korean assets and 
transactions, so that Congress can oversee the enforcement of 
sanctions and ensure that North Korea is cut off from its 
offshore assets and income.
    Section 104. This section describes the conduct and 
entities subject to ``blocking sanctions'' (a prohibition on 
any transfers in financial instruments or other property). 
Although these blocking sanctions are permitted through 
existing regulations, this section makes them mandatory, rather 
than discretionary.
    Sanctions under this section are mandated against persons 
that have materially contributed to North Korea's nuclear and 
ballistic missile development or engaged in other destructive 
activities, including importing or exporting related WMD 
materiel into North Korea, or providing training to, or 
advising on, their weapons programs. This section also levies 
mandatory sanctions on those who import luxury goods into North 
Korea, or enable its censorship efforts or continuing human 
rights abuses. Finally, this section strikes at the heart of 
North Korea's efforts to fund their illicit activities by 
mandating sanctions against those who have engaged in money 
laundering, the manufacture of counterfeit goods, or narcotics 
trafficking.
    This section also provides the Administration the ability 
to sanction those transferring, or facilitating the transfer 
of, financial assets and property of the North Korea regime.
    The section also provides the President with the necessary 
authorities to effectively target those who enabled North 
Korea's cyber attack against the United States last year.
    Section 105. This section seizes assets forfeited for 
violations of North Korea sanctions laws, and provides it to 
the US Treasury.

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

    Section 201. This section instructs the Secretary of the 
Treasury to determine whether North Korea is a ``primary money 
laundering concern.'' If such a determination was made, that 
would block North Korean banks from direct or indirect access 
to the U.S. financial system, and require ``special measures'' 
against designated persons, North Korean government entities, 
and banks that provide financial services to entities found to 
have engaged in sanctionable conduct. Such a designation could 
have a debilitating effect on North Korea's ability to access 
the international financial system. It has been used against 
Iran.
    Section 202. This section finds that all states and 
jurisdictions are obligated to implement and enforce U.N. 
Security Council resolutions and provides as a sense of 
Congress that the President should intensify efforts to 
implement a diplomatic strategy to protect the global financial 
system from North Korean threats.
    Section 203. This section re-imposes those sanctions that 
were applied to North Korea until 2008, when the country was 
removed from the State Sponsors of Terrorism list. The 
prohibitions and restrictions described in section 203 will 
restrict export licenses for controlled goods and technologies, 
other than those issued for humanitarian purposes, subject to 
the same rules and regulations as if the regime were still 
designated a state sponsor of terrorism. It will apply 
penalties to U.S. persons who engage in financial transactions 
with the Government of North Korea, except as provided for in 
regulations or for humanitarian or human rights-related 
purposes. The section will also statutorily prohibit the export 
of munitions to North Korea, and sanction those who send or 
receive lethal military equipment from North Korea as if the 
regime were still designated a state sponsor of terrorism.
    Section 204. This section bars persons or entities 
designated facilitating North Korea's destructive policies from 
receiving U.S. government contracts.
    Section 205. This section requires the Administration to 
report to Congress on foreign sea ports and airports whose 
inspections of vessels originating from North Korea are 
deficient. Cargo coming from ports that consistently fail to 
inspect North Korean cargo, as required by U.N. resolutions, 
may be subject to increased inspection requirements at U.S. 
ports. It also allows for the seizure of ships or aircraft used 
for smuggling. This provision would therefore protect the U.S. 
homeland from ports that deliberately fail to sufficiently 
inspect North Korean cargo.
    Section 206. This section allows the President to deny the 
entry into the U.S. of any foreigner that has been sanctioned 
under this Act.
    Section 207. This section provides for exclusions and 
waivers from sanctions for humanitarian aid, consular 
activities, for cooperating witnesses and banks, and when vital 
to the economic or national security interests of the United 
States. Exemptions for humanitarian purposes are intended to 
include the provision of humanitarian assistance, as well as 
related supporting services such as financial, transportation, 
or insurance services, and related transactions with the 
government of North Korea.
    Section 208. This section requires a report from the 
Administration on persons that conduct cyber attacks against 
the United States on behalf of the Government of North Korea.

                  TITLE III--PROMOTION OF HUMAN RIGHTS

    Section 301. This section requires the President to study 
the feasibility of bringing unmonitored and inexpensive 
cellular and internet communications to the people of North 
Korea, to break the information blockade the regime has imposed 
on its own population.
    Section 302. This section requires a report by the State 
Department on North Korea's political prison camps, which are 
estimated to hold up to 200,000 men, women, and children, with 
the hope that more public attention will be paid to North 
Korea's grave and pervasive crimes against humanity.
    Section 303. This section requires a report by the State 
Department that identifies severe human rights abusers in North 
Korea, utilizing information collected in the recent U.N. 
Commission of Inquiry Report on North Korean human rights 
abuses, the most comprehensive such report to date.

                     TITLE IV-- GENERAL AUTHORITIES

    Section 401. This provision provides for a one-year 
suspension of sanctions, renewable for one consecutive year, if 
North Korea takes significant steps toward disarmament and 
reform, while preventing the premature relaxation of sanctions 
for false North Korean promises.
    Section 402. This section terminates these sanctions if 
North Korea undergoes a fundamental change of governance toward 
an open, free, and peaceful society.

         Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, existing law in which no change 
is proposed is shown in roman):

                      TITLE 18, UNITED STATES CODE



           *       *       *       *       *       *       *
PART I--CRIMES

           *       *       *       *       *       *       *


                         CHAPTER 46--FORFEITURE

Sec. 981. Civil forfeiture

    (a)(1) The following property is subject to forfeiture to 
the United States:
            (A) Any property, real or personal, involved in a 
        transaction or attempted transaction in violation of 
        section 1956, 1957 or 1960 of this title, or any 
        property traceable to such property.
            (B) Any property, real or personal, within the 
        jurisdiction of the United States, constituting, 
        derived from, or traceable to, any proceeds obtained 
        directly or indirectly from an offense against a 
        foreign nation, or any property used to facilitate such 
        an offense, if the offense--
                    (i) involves trafficking in nuclear, 
                chemical, biological, or radiological weapons 
                technology or material, or the manufacture, 
                importation, sale, or distribution of a 
                controlled substance (as that term is defined 
                for purposes of the Controlled Substances Act), 
                or any other conduct described in section 
                1956(c)(7)(B);
                    (ii) would be punishable within the 
                jurisdiction of the foreign nation by death or 
                imprisonment for a term exceeding 1 year; and
                    (iii) would be punishable under the laws of 
                the United States by imprisonment for a term 
                exceeding 1 year, if the act or activity 
                constituting the offense had occurred within 
                the jurisdiction of the United States.
            (C) Any property, real or personal, which 
        constitutes or is derived from proceeds traceable to a 
        violation of section 215, 471, 472, 473, 474, 476, 477, 
        478, 479, 480, 481, 485, 486, 487, 488, 501, 502, 510, 
        542, 545, 656, 657, 670, 842, 844, 1005, 1006, 1007, 
        1014, 1028, 1029, 1030, 1032, or 1344 of this title or 
        any offense constituting ``specified unlawful 
        activity'' (as defined in section 1956(c)(7) of this 
        title), or a conspiracy to commit such offense.
            (D) Any property, real or personal, which 
        represents or is traceable to the gross receipts 
        obtained, directly or indirectly, from a violation of--
                    (i) section 666(a)(1) (relating to Federal 
                program fraud);
                    (ii) section 1001 (relating to fraud and 
                false statements);
                    (iii) section 1031 (relating to major fraud 
                against the United States);
                    (iv) section 1032 (relating to concealment 
                of assets from conservator or receiver of 
                insured financial institution);
                    (v) section 1341 (relating to mail fraud); 
                or
                    (vi) section 1343 (relating to wire fraud),
        if such violation relates to the sale of assets 
        acquired or held by the the Federal Deposit Insurance 
        Corporation, as conservator or receiver for a financial 
        institution, or any other conservator for a financial 
        institution appointed by the Office of the Comptroller 
        of the Currency or the National Credit Union 
        Administration, as conservator or liquidating agent for 
        a financial institution.
            (E) With respect to an offense listed in subsection 
        (a)(1)(D) committed for the purpose of executing or 
        attempting to execute any scheme or artifice to 
        defraud, or for obtaining money or property by means of 
        false or fraudulent statements, pretenses, 
        representations or promises, the gross receipts of such 
        an offense shall include all property, real or 
        personal, tangible or intangible, which thereby is 
        obtained, directly or indirectly.
            (F) Any property, real or personal, which 
        represents or is traceable to the gross proceeds 
        obtained, directly or indirectly, from a violation of--
                    (i) section 511 (altering or removing motor 
                vehicle identification numbers);
                    (ii) section 553 (importing or exporting 
                stolen motor vehicles);
                    (iii) section 2119 (armed robbery of 
                automobiles);
                    (iv) section 2312 (transporting stolen 
                motor vehicles in interstate commerce); or
                    (v) section 2313 (possessing or selling a 
                stolen motor vehicle that has moved in 
                interstate commerce).
            (G) All assets, foreign or domestic--
                    (i) of any individual, entity, or 
                organization engaged in planning or 
                perpetrating any any Federal crime of terrorism 
                (as defined in section 2332b(g)(5)) against the 
                United States, citizens or residents of the 
                United States, or their property, and all 
                assets, foreign or domestic, affording any 
                person a source of influence over any such 
                entity or organization;
                    (ii) acquired or maintained by any person 
                with the intent and for the purpose of 
                supporting, planning, conducting, or concealing 
                any Federal crime of terrorism (as defined in 
                section 2332b(g)(5) against the United States, 
                citizens or residents of the United States, or 
                their property;
                    (iii) derived from, involved in, or used or 
                intended to be used to commit any Federal crime 
                of terrorism (as defined in section 
                2332b(g)(5)) against the United States, 
                citizens or residents of the United States, or 
                their property; or
                    (iv) of any individual, entity, or 
                organization engaged in planning or 
                perpetrating any act of international terrorism 
                (as defined in section 2331) against any 
                international organization (as defined in 
                section 209 of the State Department Basic 
                Authorities Act of 1956 (22 U.S.C. 4309(b)) or 
                against any foreign Government. Where the 
                property sought for forfeiture is located 
                beyond the territorial boundaries of the United 
                States, an act in furtherance of such planning 
                or perpetration must have occurred within the 
                jurisdiction of the United States.
            (H) Any property, real or personal, involved in a 
        violation or attempted violation, or which constitutes 
        or is derived from proceeds traceable to a violation, 
        of section 2339C of this title.
            (I) Any property, real or personal, that is 
        involved in a violation or attempted violation, or 
        which constitutes or is derived from proceeds traceable 
        to a violation, of section 104(a) of the North Korea 
        Sanctions Enforcement Act of 2015.
    (2) For purposes of paragraph (1), the term ``proceeds'' is 
defined as follows:
            (A) In cases involving illegal goods, illegal 
        services, unlawful activities, and telemarketing and 
        health care fraud schemes, the term ``proceeds'' means 
        property of any kind obtained directly or indirectly, 
        as the result of the commission of the offense giving 
        rise to forfeiture, and any property traceable thereto, 
        and is not limited to the net gain or profit realized 
        from the offense.
            (B) In cases involving lawful goods or lawful 
        services that are sold or provided in an illegal 
        manner, the term ``proceeds'' means the amount of money 
        acquired through the illegal transactions resulting in 
        the forfeiture, less the direct costs incurred in 
        providing the goods or services. The claimant shall 
        have the burden of proof with respect to the issue of 
        direct costs. The direct costs shall not include any 
        part of the overhead expenses of the entity providing 
        the goods or services, or any part of the income taxes 
        paid by the entity.
            (C) In cases involving fraud in the process of 
        obtaining a loan or extension of credit, the court 
        shall allow the claimant a deduction from the 
        forfeiture to the extent that the loan was repaid, or 
        the debt was satisfied, without any financial loss to 
        the victim.
    (b)(1) Except as provided in section 985, any property 
subject to forfeiture to the United States under subsection (a) 
may be seized by the Attorney General and, in the case of 
property involved in a violation investigated by the Secretary 
of the Treasury or the United States Postal Service, the 
property may also be seized by the Secretary of the Treasury or 
the Postal Service, respectively.
    (2) Seizures pursuant to this section shall be made 
pursuant to a warrant obtained in the same manner as provided 
for a search warrant under the Federal Rules of Criminal 
Procedure, except that a seizure may be made without a warrant 
if--
            (A) a complaint for forfeiture has been filed in 
        the United States district court and the court issued 
        an arrest warrant in rem pursuant to the Supplemental 
        Rules for Certain Admiralty and Maritime Claims;
            (B) there is probable cause to believe that the 
        property is subject to forfeiture and--
                    (i) the seizure is made pursuant to a 
                lawful arrest or search; or
                    (ii) another exception to the Fourth 
                Amendment warrant requirement would apply; or
            (C) the property was lawfully seized by a State or 
        local law enforcement agency and transferred to a 
        Federal agency.
    (3) Notwithstanding the provisions of rule 41(a) of the 
Federal Rules of Criminal Procedure, a seizure warrant may be 
issued pursuant to this subsection by a judicial officer in any 
district in which a forfeiture action against the property may 
be filed under section 1355(b) of title 28, and may be executed 
in any district in which the property is found, or transmitted 
to the central authority of any foreign state for service in 
accordance with any treaty or other international agreement. 
Any motion for the return of property seized under this section 
shall be filed in the district court in which the seizure 
warrant was issued or in the district court for the district in 
which the property was seized.
    (4)(A) If any person is arrested or charged in a foreign 
country in connection with an offense that would give rise to 
the forfeiture of property in the United States under this 
section or under the Controlled Substances Act, the Attorney 
General may apply to any Federal judge or magistrate judge in 
the district in which the property is located for an ex parte 
order restraining the property subject to forfeiture for not 
more than 30 days, except that the time may be extended for 
good cause shown at a hearing conducted in the manner provided 
in rule 43(e) of the Federal Rules of Civil Procedure.
    (B) The application for the restraining order shall set 
forth the nature and circumstances of the foreign charges and 
the basis for belief that the person arrested or charged has 
property in the United States that would be subject to 
forfeiture, and shall contain a statement that the restraining 
order is needed to preserve the availability of property for 
such time as is necessary to receive evidence from the foreign 
country or elsewhere in support of probable cause for the 
seizure of the property under this subsection.
    (c) Property taken or detained under this section shall not 
be repleviable, but shall be deemed to be in the custody of the 
Attorney General, the Secretary of the Treasury, or the Postal 
Service, as the case may be, subject only to the orders and 
decrees of the court or the official having jurisdiction 
thereof. Whenever property is seized under this subsection, the 
Attorney General, the Secretary of the Treasury, or the Postal 
Service, as the case may be, may--
            (1) place the property under seal;
            (2) remove the property to a place designated by 
        him; or
            (3) require that the General Services 
        Administration take custody of the property and remove 
        it, if practicable, to an appropriate location for 
        disposition in accordance with law.
    (d) For purposes of this section, the provisions of the 
customs laws relating to the seizure, summary and judicial 
forfeiture, condemnation of property for violation of the 
customs laws, the disposition of such property or the proceeds 
from the sale of such property under this section, the 
remission or mitigation of such forfeitures, and the compromise 
of claims (19 U.S.C. 1602 et seq.), insofar as they are 
applicable and not inconsistent with the provisions of this 
section, shall apply to seizures and forfeitures incurred, or 
alleged to have been incurred, under this section, except that 
such duties as are imposed upon the customs officer or any 
other person with respect to the seizure and forfeiture of 
property under the customs laws shall be performed with respect 
to seizures and forfeitures of property under this section by 
such officers, agents, or other persons as may be authorized or 
designated for that purpose by the Attorney General, the 
Secretary of the Treasury, or the Postal Service, as the case 
may be. The Attorney General shall have sole responsibility for 
disposing of petitions for remission or mitigation with respect 
to property involved in a judicial forfeiture proceeding.
    (e) Notwithstanding any other provision of the law, except 
section 3 of the Anti Drug Abuse Act of 1986, the Attorney 
General, the Secretary of the Treasury, or the Postal Service, 
as the case may be, is authorized to retain property forfeited 
pursuant to this section, or to transfer such property on such 
terms and conditions as he may determine--
            (1) to any other Federal agency;
            (2) to any State or local law enforcement agency 
        which participated directly in any of the acts which 
        led to the seizure or forfeiture of the property;
            (3) in the case of property referred to in 
        subsection (a)(1)(C), to any Federal financial 
        institution regulatory agency--
                    (A) to reimburse the agency for payments to 
                claimants or creditors of the institution; and
                    (B) to reimburse the insurance fund of the 
                agency for losses suffered by the fund as a 
                result of the receivership or liquidation;
            (4) in the case of property referred to in 
        subsection (a)(1)(C), upon the order of the appropriate 
        Federal financial institution regulatory agency, to the 
        financial institution as restitution, with the value of 
        the property so transferred to be set off against any 
        amount later recovered by the financial institution as 
        compensatory damages in any State or Federal 
        proceeding;
            (5) in the case of property referred to in 
        subsection (a)(1)(C), to any Federal financial 
        institution regulatory agency, to the extent of the 
        agency's contribution of resources to, or expenses 
        involved in, the seizure and forfeiture, and the 
        investigation leading directly to the seizure and 
        forfeiture, of such property;
            (6) as restoration to any victim of the offense 
        giving rise to the forfeiture, including, in the case 
        of a money laundering offense, any offense constituting 
        the underlying specified unlawful activity; or
            (7) In the case of property referred to in 
        subsection (a)(1)(D), to the Resolution Trust 
        Corporation, the Federal Deposit Insurance Corporation, 
        or any other Federal financial institution regulatory 
        agency (as defined in section 8(e)(7)(D) of the Federal 
        Deposit Insurance Act).
The Attorney General, the Secretary of the Treasury, or the 
Postal Service, as the case may be, shall ensure the equitable 
transfer pursuant to paragraph (2) of any forfeited property to 
the appropriate State or local law enforcement agency so as to 
reflect generally the contribution of any such agency 
participating directly in any of the acts which led to the 
seizure or forfeiture of such property. A decision by the 
Attorney General, the Secretary of the Treasury, or the Postal 
Service pursuant to paragraph (2) shall not be subject to 
review. The United States shall not be liable in any action 
arising out of the use of any property the custody of which was 
transferred pursuant to this section to any non-Federal agency. 
The Attorney General, the Secretary of the Treasury, or the 
Postal Service may order the discontinuance of any forfeiture 
proceedings under this section in favor of the institution of 
forfeiture proceedings by State or local authorities under an 
appropriate State or local statute. After the filing of a 
complaint for forfeiture under this section, the Attorney 
General may seek dismissal of the complaint in favor of 
forfeiture proceedings under State or local law. Whenever 
forfeiture proceedings are discontinued by the United States in 
favor of State or local proceedings, the United States may 
transfer custody and possession of the seized property to the 
appropriate State or local official immediately upon the 
initiation of the proper actions by such officials. Whenever 
forfeiture proceedings are discontinued by the United States in 
favor of State or local proceedings, notice shall be sent to 
all known interested parties advising them of the 
discontinuance or dismissal. The United States shall not be 
liable in any action arising out of the seizure, detention, and 
transfer of seized property to State or local officials. The 
United States shall not be liable in any action arising out of 
a transfer under paragraph (3), (4), or (5) of this subsection.
    (f) All right, title, and interest in property described in 
subsection (a) of this section shall vest in the United States 
upon commission of the act giving rise to forfeiture under this 
section.
    (g)(1) Upon the motion of the United States, the court 
shall stay the civil forfeiture proceeding if the court 
determines that civil discovery will adversely affect the 
ability of the Government to conduct a related criminal 
investigation or the prosecution of a related criminal case.
    (2) Upon the motion of a claimant, the court shall stay the 
civil forfeiture proceeding with respect to that claimant if 
the court determines that--
            (A) the claimant is the subject of a related 
        criminal investigation or case;
            (B) the claimant has standing to assert a claim in 
        the civil forfeiture proceeding; and
            (C) continuation of the forfeiture proceeding will 
        burden the right of the claimant against self-
        incrimination in the related investigation or case.
    (3) With respect to the impact of civil discovery described 
in paragraphs (1) and (2), the court may determine that a stay 
is unnecessary if a protective order limiting discovery would 
protect the interest of one party without unfairly limiting the 
ability of the opposing party to pursue the civil case. In no 
case, however, shall the court impose a protective order as an 
alternative to a stay if the effect of such protective order 
would be to allow one party to pursue discovery while the other 
party is substantially unable to do so.
    (4) In this subsection, the terms ``related criminal case'' 
and ``related criminal investigation'' mean an actual 
prosecution or investigation in progress at the time at which 
the request for the stay, or any subsequent motion to lift the 
stay is made. In determining whether a criminal case or 
investigation is ``related'' to a civil forfeiture proceeding, 
the court shall consider the degree of similarity between the 
parties, witnesses, facts, and circumstances involved in the 
two proceedings, without requiring an identity with respect to 
any one or more factors.
    (5) In requesting a stay under paragraph (1), the 
Government may, in appropriate cases, submit evidence ex parte 
in order to avoid disclosing any matter that may adversely 
affect an ongoing criminal investigation or pending criminal 
trial.
    (6) Whenever a civil forfeiture proceeding is stayed 
pursuant to this subsection, the court shall enter any order 
necessary to preserve the value of the property or to protect 
the rights of lienholders or other persons with an interest in 
the property while the stay is in effect.
    (7) A determination by the court that the claimant has 
standing to request a stay pursuant to paragraph (2) shall 
apply only to this subsection and shall not preclude the 
Government from objecting to the standing of the claimant by 
dispositive motion or at the time of trial.
    (h) In addition to the venue provided for in section 1395 
of title 28 or any other provision of law, in the case of 
property of a defendant charged with a violation that is the 
basis for forfeiture of the property under this section, a 
proceeding for forfeiture under this section may be brought in 
the judicial district in which the defendant owning such 
property is found or in the judicial district in which the 
criminal prosecution is brought.
    (i)(1) Whenever property is civilly or criminally forfeited 
under this chapter, the Attorney General or the Secretary of 
the Treasury, as the case may be, may transfer the forfeited 
personal property or the proceeds of the sale of any forfeited 
personal or real property to any foreign country which 
participated directly or indirectly in the seizure or 
forfeiture of the property, if such a transfer--
            (A) has been agreed to by the Secretary of State;
            (B) is authorized in an international agreement 
        between the United States and the foreign country; and
            (C) is made to a country which, if applicable, has 
        been certified under section 481(h) of the Foreign 
        Assistance Act of 1961.
A decision by the Attorney General or the Secretary of the 
Treasury pursuant to this paragraph shall not be subject to 
review. The foreign country shall, in the event of a transfer 
of property or proceeds of sale of property under this 
subsection, bear all expenses incurred by the United States in 
the seizure, maintenance, inventory, storage, forfeiture, and 
disposition of the property, and all transfer costs. The 
payment of all such expenses, and the transfer of assets 
pursuant to this paragraph, shall be upon such terms and 
conditions as the Attorney General or the Secretary of the 
Treasury may, in his discretion, set.
    (2) The provisions of this section shall not be construed 
as limiting or superseding any other authority of the United 
States to provide assistance to a foreign country in obtaining 
property related to a crime committed in the foreign country, 
including property which is sought as evidence of a crime 
committed in the foreign country.
    (3) A certified order or judgment of forfeiture by a court 
of competent jurisdiction of a foreign country concerning 
property which is the subject of forfeiture under this section 
and was determined by such court to be the type of property 
described in subsection (a)(1)(B) of this section, and any 
certified recordings or transcripts of testimony taken in a 
foreign judicial proceeding concerning such order or judgment 
of forfeiture, shall be admissible in evidence in a proceeding 
brought pursuant to this section. Such certified order or 
judgment of forfeiture, when admitted into evidence, shall 
constitute probable cause that the property forfeited by such 
order or judgment of forfeiture is subject to forfeiture under 
this section and creates a rebuttable presumption of the 
forfeitability of such property under this section.
    (4) A certified order or judgment of conviction by a court 
of competent jurisdiction of a foreign country concerning an 
unlawful drug activity which gives rise to forfeiture under 
this section and any certified recordings or transcripts of 
testimony taken in a foreign judicial proceeding concerning 
such order or judgment of conviction shall be admissible in 
evidence in a proceeding brought pursuant to this section. Such 
certified order or judgment of conviction, when admitted into 
evidence, creates a rebuttable presumption that the unlawful 
drug activity giving rise to forfeiture under this section has 
occurred.
    (5) The provisions of paragraphs (3) and (4) of this 
subsection shall not be construed as limiting the admissibility 
of any evidence otherwise admissible, nor shall they limit the 
ability of the United States to establish probable cause that 
property is subject to forfeiture by any evidence otherwise 
admissible.
    (j) For purposes of this section--
            (1) the term ``Attorney General'' means the 
        Attorney General or his delegate; and
            (2) the term ``Secretary of the Treasury'' means 
        the Secretary of the Treasury or his delegate.
    (k) Interbank Accounts.--
            (1) In general.--
                    (A) In general.--For the purpose of a 
                forfeiture under this section or under the 
                Controlled Substances Act (21 U.S.C. 801 et 
                seq.), if funds are deposited into an account 
                at a foreign financial institution (as defined 
                in section 984(c)(2)(A) of this title), and 
                that foreign financial institution (as defined 
                in section 984(c)(2)(A) of this title) has an 
                interbank account in the United States with a 
                covered financial institution (as defined in 
                section 5318(j)(1) of title 31), the funds 
                shall be deemed to have been deposited into the 
                interbank account in the United States, and any 
                restraining order, seizure warrant, or arrest 
                warrant in rem regarding the funds may be 
                served on the covered financial institution, 
                and funds in the interbank account, up to the 
                value of the funds deposited into the account 
                at the foreign financial institution (as 
                defined in section 984(c)(2)(A) of this title), 
                may be restrained, seized, or arrested.
                    (B) Authority to suspend.--The Attorney 
                General, in consultation with the Secretary of 
                the Treasury, may suspend or terminate a 
                forfeiture under this section if the Attorney 
                General determines that a conflict of law 
                exists between the laws of the jurisdiction in 
                which the foreign financial institution (as 
                defined in section 984(c)(2)(A) of this title) 
                is located and the laws of the United States 
                with respect to liabilities arising from the 
                restraint, seizure, or arrest of such funds, 
                and that such suspension or termination would 
                be in the interest of justice and would not 
                harm the national interests of the United 
                States.
            (2) No requirement for Government to trace funds.--
        If a forfeiture action is brought against funds that 
        are restrained, seized, or arrested under paragraph 
        (1), it shall not be necessary for the Government to 
        establish that the funds are directly traceable to the 
        funds that were deposited into the foreign financial 
        institution (as defined in section 984(c)(2)(A) of this 
        title), nor shall it be necessary for the Government to 
        rely on the application of section 984.
            (3) Claims brought by owner of the funds.--If a 
        forfeiture action is instituted against funds 
        restrained, seized, or arrested under paragraph (1), 
        the owner of the funds deposited into the account at 
        the foreign financial institution (as defined in 
        section 984(c)(2)(A) of this title) may contest the 
        forfeiture by filing a claim under section 983.
            (4) Definitions.--For purposes of this subsection, 
        the following definitions shall apply:
                    (A) Interbank account.--The term 
                ``interbank account'' has the same meaning as 
                in section 984(c)(2)(B).
                    (B) Owner.--
                            (i) In general.--Except as provided 
                        in clause (ii), the term ``owner''--
                                    (I) means the person who 
                                was the owner, as that term is 
                                defined in section 983(d)(6), 
                                of the funds that were 
                                deposited into the foreign 
                                financial institution (as 
                                defined in section 984(c)(2)(A) 
                                of this title) at the time such 
                                funds were deposited; and
                                    (II) does not include 
                                either the foreign financial 
                                institution (as defined in 
                                section 984(c)(2)(A) of this 
                                title) or any financial 
                                institution acting as an 
                                intermediary in the transfer of 
                                the funds into the interbank 
                                account.
                            (ii) Exception.--The foreign 
                        financial institution (as defined in 
                        section 984(c)(2)(A) of this title) may 
                        be considered the ``owner'' of the 
                        funds (and no other person shall 
                        qualify as the owner of such funds) 
                        only if--
                                    (I) the basis for the 
                                forfeiture action is wrongdoing 
                                committed by the foreign 
                                financial institution (as 
                                defined in section 984(c)(2)(A) 
                                of this title); or
                                    (II) the foreign financial 
                                institution (as defined in 
                                section 984(c)(2)(A) of this 
                                title) establishes, by a 
                                preponderance of the evidence, 
                                that prior to the restraint, 
                                seizure, or arrest of the 
                                funds, the foreign financial 
                                institution (as defined in 
                                section 984(c)(2)(A) of this 
                                title) had discharged all or 
                                part of its obligation to the 
                                prior owner of the funds, in 
                                which case the foreign 
                                financial institution (as 
                                defined in section 984(c)(2)(A) 
                                of this title) shall be deemed 
                                the owner of the funds to the 
                                extent of such discharged 
                                obligation.

           *       *       *       *       *       *       *


Sec. 983. General rules for civil forfeiture proceedings

    (a) Notice; Claim; Complaint.--
            (1)(A)(i) Except as provided in clauses (ii) 
        through (v), in any nonjudicial civil forfeiture 
        proceeding under a civil forfeiture statute, with 
        respect to which the Government is required to send 
        written notice to interested parties, such notice shall 
        be sent in a manner to achieve proper notice as soon as 
        practicable, and in no case more than 60 days after the 
        date of the seizure.
            (ii) No notice is required if, before the 60-day 
        period expires, the Government files a civil judicial 
        forfeiture action against the property and provides 
        notice of that action as required by law.
            (iii) If, before the 60-day period expires, the 
        Government does not file a civil judicial forfeiture 
        action, but does obtain a criminal indictment 
        containing an allegation that the property is subject 
        to forfeiture, the Government shall either--
                    (I) send notice within the 60 days and 
                continue the nonjudicial civil forfeiture 
                proceeding under this section; or
                    (II) terminate the nonjudicial civil 
                forfeiture proceeding, and take the steps 
                necessary to preserve its right to maintain 
                custody of the property as provided in the 
                applicable criminal forfeiture statute.
            (iv) In a case in which the property is seized by a 
        State or local law enforcement agency and turned over 
        to a Federal law enforcement agency for the purpose of 
        forfeiture under Federal law, notice shall be sent not 
        more than 90 days after the date of seizure by the 
        State or local law enforcement agency.
            (v) If the identity or interest of a party is not 
        determined until after the seizure or turnover but is 
        determined before a declaration of forfeiture is 
        entered, notice shall be sent to such interested party 
        not later than 60 days after the determination by the 
        Government of the identity of the party or the party's 
        interest.
            (B) A supervisory official in the headquarters 
        office of the seizing agency may extend the period for 
        sending notice under subparagraph (A) for a period not 
        to exceed 30 days (which period may not be further 
        extended except by a court), if the official determines 
        that the conditions in subparagraph (D) are present.
            (C) Upon motion by the Government, a court may 
        extend the period for sending notice under subparagraph 
        (A) for a period not to exceed 60 days, which period 
        may be further extended by the court for 60-day 
        periods, as necessary, if the court determines, based 
        on a written certification of a supervisory official in 
        the headquarters office of the seizing agency, that the 
        conditions in subparagraph (D) are present.
            (D) The period for sending notice under this 
        paragraph may be extended only if there is reason to 
        believe that notice may have an adverse result, 
        including--
                    (i) endangering the life or physical safety 
                of an individual;
                    (ii) flight from prosecution;
                    (iii) destruction of or tampering with 
                evidence;
                    (iv) intimidation of potential witnesses; 
                or
                    (v) otherwise seriously jeopardizing an 
                investigation or unduly delaying a trial.
            (E) Each of the Federal seizing agencies conducting 
        nonjudicial forfeitures under this section shall report 
        periodically to the Committees on the Judiciary of the 
        House of Representatives and the Senate the number of 
        occasions when an extension of time is granted under 
        subparagraph (B).
            (F) If the Government does not send notice of a 
        seizure of property in accordance with subparagraph (A) 
        to the person from whom the property was seized, and no 
        extension of time is granted, the Government shall 
        return the property to that person without prejudice to 
        the right of the Government to commence a forfeiture 
        proceeding at a later time. The Government shall not be 
        required to return contraband or other property that 
        the person from whom the property was seized may not 
        legally possess.
            (2)(A) Any person claiming property seized in a 
        nonjudicial civil forfeiture proceeding under a civil 
        forfeiture statute may file a claim with the 
        appropriate official after the seizure.
            (B) A claim under subparagraph (A) may be filed not 
        later than the deadline set forth in a personal notice 
        letter (which deadline may be not earlier than 35 days 
        after the date the letter is mailed), except that if 
        that letter is not received, then a claim may be filed 
        not later than 30 days after the date of final 
        publication of notice of seizure.
            (C) A claim shall--
                    (i) identify the specific property being 
                claimed;
                    (ii) state the claimant's interest in such 
                property; and
                    (iii) be made under oath, subject to 
                penalty of perjury.
            (D) A claim need not be made in any particular 
        form. Each Federal agency conducting nonjudicial 
        forfeitures under this section shall make claim forms 
        generally available on request, which forms shall be 
        written in easily understandable language.
            (E) Any person may make a claim under subparagraph 
        (A) without posting bond with respect to the property 
        which is the subject of the claim.
            (3)(A) Not later than 90 days after a claim has 
        been filed, the Government shall file a complaint for 
        forfeiture in the manner set forth in the Supplemental 
        Rules for Certain Admiralty and Maritime Claims or 
        return the property pending the filing of a complaint, 
        except that a court in the district in which the 
        complaint will be filed may extend the period for 
        filing a complaint for good cause shown or upon 
        agreement of the parties.
            (B) If the Government does not--
                    (i) file a complaint for forfeiture or 
                return the property, in accordance with 
                subparagraph (A); or
                    (ii) before the time for filing a complaint 
                has expired--
                            (I) obtain a criminal indictment 
                        containing an allegation that the 
                        property is subject to forfeiture; and
                            (II) take the steps necessary to 
                        preserve its right to maintain custody 
                        of the property as provided in the 
                        applicable criminal forfeiture statute,
        the Government shall promptly release the property 
        pursuant to regulations promulgated by the Attorney 
        General, and may not take any further action to effect 
        the civil forfeiture of such property in connection 
        with the underlying offense.
            (C) In lieu of, or in addition to, filing a civil 
        forfeiture complaint, the Government may include a 
        forfeiture allegation in a criminal indictment. If 
        criminal forfeiture is the only forfeiture proceeding 
        commenced by the Government, the Government's right to 
        continued possession of the property shall be governed 
        by the applicable criminal forfeiture statute.
            (D) No complaint may be dismissed on the ground 
        that the Government did not have adequate evidence at 
        the time the complaint was filed to establish the 
        forfeitability of the property.
            (4)(A) In any case in which the Government files in 
        the appropriate United States district court a 
        complaint for forfeiture of property, any person 
        claiming an interest in the seized property may file a 
        claim asserting such person's interest in the property 
        in the manner set forth in the Supplemental Rules for 
        Certain Admiralty and Maritime Claims, except that such 
        claim may be filed not later than 30 days after the 
        date of service of the Government's complaint or, as 
        applicable, not later than 30 days after the date of 
        final publication of notice of the filing of the 
        complaint.
            (B) A person asserting an interest in seized 
        property, in accordance with subparagraph (A), shall 
        file an answer to the Government's complaint for 
        forfeiture not later than 20 days after the date of the 
        filing of the claim.
    (b) Representation.--
            (1)(A) If a person with standing to contest the 
        forfeiture of property in a judicial civil forfeiture 
        proceeding under a civil forfeiture statute is 
        financially unable to obtain representation by counsel, 
        and the person is represented by counsel appointed 
        under section 3006A of this title in connection with a 
        related criminal case, the court may authorize counsel 
        to represent that person with respect to the claim.
            (B) In determining whether to authorize counsel to 
        represent a person under subparagraph (A), the court 
        shall take into account such factors as--
                    (i) the person's standing to contest the 
                forfeiture; and
                    (ii) whether the claim appears to be made 
                in good faith.
            (2)(A) If a person with standing to contest the 
        forfeiture of property in a judicial civil forfeiture 
        proceeding under a civil forfeiture statute is 
        financially unable to obtain representation by counsel, 
        and the property subject to forfeiture is real property 
        that is being used by the person as a primary 
        residence, the court, at the request of the person, 
        shall insure that the person is represented by an 
        attorney for the Legal Services Corporation with 
        respect to the claim.
            (B)(i) At appropriate times during a representation 
        under subparagraph (A), the Legal Services Corporation 
        shall submit a statement of reasonable attorney fees 
        and costs to the court.
            (ii) The court shall enter a judgment in favor of 
        the Legal Services Corporation for reasonable attorney 
        fees and costs submitted pursuant to clause (i) and 
        treat such judgment as payable under section 2465 of 
        title 28, United States Code, regardless of the outcome 
        of the case.
            (3) The court shall set the compensation for 
        representation under this subsection, which shall be 
        equivalent to that provided for court-appointed 
        representation under section 3006A of this title.
    (c) Burden of Proof.--In a suit or action brought under any 
civil forfeiture statute for the civil forfeiture of any 
property--
            (1) the burden of proof is on the Government to 
        establish, by a preponderance of the evidence, that the 
        property is subject to forfeiture;
            (2) the Government may use evidence gathered after 
        the filing of a complaint for forfeiture to establish, 
        by a preponderance of the evidence, that property is 
        subject to forfeiture; and
            (3) if the Government's theory of forfeiture is 
        that the property was used to commit or facilitate the 
        commission of a criminal offense, or was involved in 
        the commission of a criminal offense, the Government 
        shall establish that there was a substantial connection 
        between the property and the offense.
    (d) Innocent Owner Defense.--
            (1) An innocent owner's interest in property shall 
        not be forfeited under any civil forfeiture statute. 
        The claimant shall have the burden of proving that the 
        claimant is an innocent owner by a preponderance of the 
        evidence.
            (2)(A) With respect to a property interest in 
        existence at the time the illegal conduct giving rise 
        to forfeiture took place, the term ``innocent owner'' 
        means an owner who--
                    (i) did not know of the conduct giving rise 
                to forfeiture; or
                    (ii) upon learning of the conduct giving 
                rise to the forfeiture, did all that reasonably 
                could be expected under the circumstances to 
                terminate such use of the property.
            (B)(i) For the purposes of this paragraph, ways in 
        which a person may show that such person did all that 
        reasonably could be expected may include demonstrating 
        that such person, to the extent permitted by law--
                    (I) gave timely notice to an appropriate 
                law enforcement agency of information that led 
                the person to know the conduct giving rise to a 
                forfeiture would occur or has occurred; and
                    (II) in a timely fashion revoked or made a 
                good faith attempt to revoke permission for 
                those engaging in such conduct to use the 
                property or took reasonable actions in 
                consultation with a law enforcement agency to 
                discourage or prevent the illegal use of the 
                property.
            (ii) A person is not required by this subparagraph 
        to take steps that the person reasonably believes would 
        be likely to subject any person (other than the person 
        whose conduct gave rise to the forfeiture) to physical 
        danger.
            (3)(A) With respect to a property interest acquired 
        after the conduct giving rise to the forfeiture has 
        taken place, the term ``innocent owner'' means a person 
        who, at the time that person acquired the interest in 
        the property--
                    (i) was a bona fide purchaser or seller for 
                value (including a purchaser or seller of goods 
                or services for value); and
                    (ii) did not know and was reasonably 
                without cause to believe that the property was 
                subject to forfeiture.
            (B) An otherwise valid claim under subparagraph (A) 
        shall not be denied on the ground that the claimant 
        gave nothing of value in exchange for the property if--
                    (i) the property is the primary residence 
                of the claimant;
                    (ii) depriving the claimant of the property 
                would deprive the claimant of the means to 
                maintain reasonable shelter in the community 
                for the claimant and all dependents residing 
                with the claimant;
                    (iii) the property is not, and is not 
                traceable to, the proceeds of any criminal 
                offense; and
                    (iv) the claimant acquired his or her 
                interest in the property through marriage, 
                divorce, or legal separation, or the claimant 
                was the spouse or legal dependent of a person 
                whose death resulted in the transfer of the 
                property to the claimant through inheritance or 
                probate,
        except that the court shall limit the value of any real 
        property interest for which innocent ownership is 
        recognized under this subparagraph to the value 
        necessary to maintain reasonable shelter in the 
        community for such claimant and all dependents residing 
        with the claimant.
            (4) Notwithstanding any provision of this 
        subsection, no person may assert an ownership interest 
        under this subsection in contraband or other property 
        that it is illegal to possess.
            (5) If the court determines, in accordance with 
        this section, that an innocent owner has a partial 
        interest in property otherwise subject to forfeiture, 
        or a joint tenancy or tenancy by the entirety in such 
        property, the court may enter an appropriate order--
                    (A) severing the property;
                    (B) transferring the property to the 
                Government with a provision that the Government 
                compensate the innocent owner to the extent of 
                his or her ownership interest once a final 
                order of forfeiture has been entered and the 
                property has been reduced to liquid assets; or
                    (C) permitting the innocent owner to retain 
                the property subject to a lien in favor of the 
                Government to the extent of the forfeitable 
                interest in the property.
            (6) In this subsection, the term ``owner''--
                    (A) means a person with an ownership 
                interest in the specific property sought to be 
                forfeited, including a leasehold, lien, 
                mortgage, recorded security interest, or valid 
                assignment of an ownership interest; and
                    (B) does not include--
                            (i) a person with only a general 
                        unsecured interest in, or claim 
                        against, the property or estate of 
                        another;
                            (ii) a bailee unless the bailor is 
                        identified and the bailee shows a 
                        colorable legitimate interest in the 
                        property seized; or
                            (iii) a nominee who exercises no 
                        dominion or control over the property.
    (e) Motion To Set Aside Forfeiture.--
            (1) Any person entitled to written notice in any 
        nonjudicial civil forfeiture proceeding under a civil 
        forfeiture statute who does not receive such notice may 
        file a motion to set aside a declaration of forfeiture 
        with respect to that person's interest in the property, 
        which motion shall be granted if--
                    (A) the Government knew, or reasonably 
                should have known, of the moving party's 
                interest and failed to take reasonable steps to 
                provide such party with notice; and
                    (B) the moving party did not know or have 
                reason to know of the seizure within sufficient 
                time to file a timely claim.
            (2)(A) Notwithstanding the expiration of any 
        applicable statute of limitations, if the court grants 
        a motion under paragraph (1), the court shall set aside 
        the declaration of forfeiture as to the interest of the 
        moving party without prejudice to the right of the 
        Government to commence a subsequent forfeiture 
        proceeding as to the interest of the moving party.
            (B) Any proceeding described in subparagraph (A) 
        shall be commenced--
                    (i) if nonjudicial, within 60 days of the 
                entry of the order granting the motion; or
                    (ii) if judicial, within 6 months of the 
                entry of the order granting the motion.
            (3) A motion under paragraph (1) may be filed not 
        later than 5 years after the date of final publication 
        of notice of seizure of the property.
            (4) If, at the time a motion made under paragraph 
        (1) is granted, the forfeited property has been 
        disposed of by the Government in accordance with law, 
        the Government may institute proceedings against a 
        substitute sum of money equal to the value of the 
        moving party's interest in the property at the time the 
        property was disposed of.
            (5) A motion filed under this subsection shall be 
        the exclusive remedy for seeking to set aside a 
        declaration of forfeiture under a civil forfeiture 
        statute.
    (f) Release Of Seized Property.--
            (1) A claimant under subsection (a) is entitled to 
        immediate release of seized property if--
                    (A) the claimant has a possessory interest 
                in the property;
                    (B) the claimant has sufficient ties to the 
                community to provide assurance that the 
                property will be available at the time of the 
                trial;
                    (C) the continued possession by the 
                Government pending the final disposition of 
                forfeiture proceedings will cause substantial 
                hardship to the claimant, such as preventing 
                the functioning of a business, preventing an 
                individual from working, or leaving an 
                individual homeless;
                    (D) the claimant's likely hardship from the 
                continued possession by the Government of the 
                seized property outweighs the risk that the 
                property will be destroyed, damaged, lost, 
                concealed, or transferred if it is returned to 
                the claimant during the pendency of the 
                proceeding; and
                    (E) none of the conditions set forth in 
                paragraph (8) applies.
            (2) A claimant seeking release of property under 
        this subsection must request possession of the property 
        from the appropriate official, and the request must set 
        forth the basis on which the requirements of paragraph 
        (1) are met.
            (3)(A) If not later than 15 days after the date of 
        a request under paragraph (2) the property has not been 
        released, the claimant may file a petition in the 
        district court in which the complaint has been filed 
        or, if no complaint has been filed, in the district 
        court in which the seizure warrant was issued or in the 
        district court for the district in which the property 
        was seized.
            (B) The petition described in subparagraph (A) 
        shall set forth--
                    (i) the basis on which the requirements of 
                paragraph (1) are met; and
                    (ii) the steps the claimant has taken to 
                secure release of the property from the 
                appropriate official.
            (4) If the Government establishes that the 
        claimant's claim is frivolous, the court shall deny the 
        petition. In responding to a petition under this 
        subsection on other grounds, the Government may in 
        appropriate cases submit evidence ex parte in order to 
        avoid disclosing any matter that may adversely affect 
        an ongoing criminal investigation or pending criminal 
        trial.
            (5) The court shall render a decision on a petition 
        filed under paragraph (3) not later than 30 days after 
        the date of the filing, unless such 30-day limitation 
        is extended by consent of the parties or by the court 
        for good cause shown.
            (6) If--
                    (A) a petition is filed under paragraph 
                (3); and
                    (B) the claimant demonstrates that the 
                requirements of paragraph (1) have been met,
        the district court shall order that the property be 
        returned to the claimant, pending completion of 
        proceedings by the Government to obtain forfeiture of 
        the property.
            (7) If the court grants a petition under paragraph 
        (3)--
                    (A) the court may enter any order necessary 
                to ensure that the value of the property is 
                maintained while the forfeiture action is 
                pending, including--
                            (i) permitting the inspection, 
                        photographing, and inventory of the 
                        property;
                            (ii) fixing a bond in accordance 
                        with rule E(5) of the Supplemental 
                        Rules for Certain Admiralty and 
                        Maritime Claims; and
                            (iii) requiring the claimant to 
                        obtain or maintain insurance on the 
                        subject property; and
                    (B) the Government may place a lien against 
                the property or file a lis pendens to ensure 
                that the property is not transferred to another 
                person.
            (8) This subsection shall not apply if the seized 
        property--
                    (A) is contraband, currency, or other 
                monetary instrument, or electronic funds unless 
                such currency or other monetary instrument or 
                electronic funds constitutes the assets of a 
                legitimate business which has been seized;
                    (B) is to be used as evidence of a 
                violation of the law;
                    (C) by reason of design or other 
                characteristic, is particularly suited for use 
                in illegal activities; or
                    (D) is likely to be used to commit 
                additional criminal acts if returned to the 
                claimant.
    (g) Proportionality.--
            (1) The claimant under subsection (a)(4) may 
        petition the court to determine whether the forfeiture 
        was constitutionally excessive.
            (2) In making this determination, the court shall 
        compare the forfeiture to the gravity of the offense 
        giving rise to the forfeiture.
            (3) The claimant shall have the burden of 
        establishing that the forfeiture is grossly 
        disproportional by a preponderance of the evidence at a 
        hearing conducted by the court without a jury.
            (4) If the court finds that the forfeiture is 
        grossly disproportional to the offense it shall reduce 
        or eliminate the forfeiture as necessary to avoid a 
        violation of the Excessive Fines Clause of the Eighth 
        Amendment of the Constitution.
    (h) Civil Fine.--
            (1) In any civil forfeiture proceeding under a 
        civil forfeiture statute in which the Government 
        prevails, if the court finds that the claimant's 
        assertion of an interest in the property was frivolous, 
        the court may impose a civil fine on the claimant of an 
        amount equal to 10 percent of the value of the 
        forfeited property, but in no event shall the fine be 
        less than $250 or greater than $5,000.
            (2) Any civil fine imposed under this subsection 
        shall not preclude the court from imposing sanctions 
        under rule 11 of the Federal Rules of Civil Procedure.
            (3) In addition to the limitations of section 1915 
        of title 28, United States Code, in no event shall a 
        prisoner file a claim under a civil forfeiture statute 
        or appeal a judgment in a civil action or proceeding 
        based on a civil forfeiture statute if the prisoner 
        has, on three or more prior occasions, while 
        incarcerated or detained in any facility, brought an 
        action or appeal in a court of the United States that 
        was dismissed on the grounds that it is frivolous or 
        malicious, unless the prisoner shows extraordinary and 
        exceptional circumstances.
    (i) Civil Forfeiture Statute Defined.--In this section, the 
term ``civil forfeiture statute''--
            (1) means any provision of Federal law providing 
        for the forfeiture of property other than as a sentence 
        imposed upon conviction of a criminal offense; and
            (2) does not include--
                    (A) the Tariff Act of 1930 or any other 
                provision of law codified in title 19;
                    (B) the Internal Revenue Code of 1986;
                    (C) the Federal Food, Drug, and Cosmetic 
                Act (21 U.S.C. 301 et seq.);
                    (D) the Trading with the Enemy Act (50 
                U.S.C. App. 1 et seq.) [or the International 
                Emergency Economic Powers Act], the 
                International Emergency Economic Powers Act 
                (IEEPA) (50 U.S.C. 1701 et seq.), or the North 
                Korea Sanctions Enforcement Act of 2015; or
                    (E) section 1 of title VI of the Act of 
                June 15, 1917 (40 Stat. 233; 22 U.S.C. 401).
    (j) Restraining Orders; Protective Orders.--
            (1) Upon application of the United States, the 
        court may enter a restraining order or injunction, 
        require the execution of satisfactory performance 
        bonds, create receiverships, appoint conservators, 
        custodians, appraisers, accountants, or trustees, or 
        take any other action to seize, secure, maintain, or 
        preserve the availability of property subject to civil 
        forfeiture--
                    (A) upon the filing of a civil forfeiture 
                complaint alleging that the property with 
                respect to which the order is sought is subject 
                to civil forfeiture; or
                    (B) prior to the filing of such a 
                complaint, if, after notice to persons 
                appearing to have an interest in the property 
                and opportunity for a hearing, the court 
                determines that--
                            (i) there is a substantial 
                        probability that the United States will 
                        prevail on the issue of forfeiture and 
                        that failure to enter the order will 
                        result in the property being destroyed, 
                        removed from the jurisdiction of the 
                        court, or otherwise made unavailable 
                        for forfeiture; and
                            (ii) the need to preserve the 
                        availability of the property through 
                        the entry of the requested order 
                        outweighs the hardship on any party 
                        against whom the order is to be 
                        entered.
            (2) An order entered pursuant to paragraph (1)(B) 
        shall be effective for not more than 90 days, unless 
        extended by the court for good cause shown, or unless a 
        complaint described in paragraph (1)(A) has been filed.
            (3) A temporary restraining order under this 
        subsection may be entered upon application of the 
        United States without notice or opportunity for a 
        hearing when a complaint has not yet been filed with 
        respect to the property, if the United States 
        demonstrates that there is probable cause to believe 
        that the property with respect to which the order is 
        sought is subject to civil forfeiture and that 
        provision of notice will jeopardize the availability of 
        the property for forfeiture. Such a temporary order 
        shall expire not more than 14 days after the date on 
        which it is entered, unless extended for good cause 
        shown or unless the party against whom it is entered 
        consents to an extension for a longer period. A hearing 
        requested concerning an order entered under this 
        paragraph shall be held at the earliest possible time 
        and prior to the expiration of the temporary order.
            (4) The court may receive and consider, at a 
        hearing held pursuant to this subsection, evidence and 
        information that would be inadmissible under the 
        Federal Rules of Evidence.

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CHAPTER 95--RACKETEERING

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Sec. 1956. Laundering of monetary instruments

    (a)(1) Whoever, knowing that the property involved in a 
financial transaction represents the proceeds of some form of 
unlawful activity, conducts or attempts to conduct such a 
financial transaction which in fact involves the proceeds of 
specified unlawful activity--
            (A)(i) with the intent to promote the carrying on 
        of specified unlawful activity; or
            (ii) with intent to engage in conduct constituting 
        a violation of section 7201 or 7206 of the Internal 
        Revenue Code of 1986; or
            (B) knowing that the transaction is designed in 
        whole or in part--
                    (i) to conceal or disguise the nature, the 
                location, the source, the ownership, or the 
                control of the proceeds of specified unlawful 
                activity; or
                    (ii) to avoid a transaction reporting 
                requirement under State or Federal law,
shall be sentenced to a fine of not more than $500,000 or twice 
the value of the property involved in the transaction, 
whichever is greater, or imprisonment for not more than twenty 
years, or both. For purposes of this paragraph, a financial 
transaction shall be considered to be one involving the 
proceeds of specified unlawful activity if it is part of a set 
of parallel or dependent transactions, any one of which 
involves the proceeds of specified unlawful activity, and all 
of which are part of a single plan or arrangement.
    (2) Whoever transports, transmits, or transfers, or 
attempts to transport, transmit, or transfer a monetary 
instrument or funds from a place in the United States to or 
through a place outside the United States or to a place in the 
United States from or through a place outside the United 
States--
            (A) with the intent to promote the carrying on of 
        specified unlawful activity; or
            (B) knowing that the monetary instrument or funds 
        involved in the transportation, transmission, or 
        transfer represent the proceeds of some form of 
        unlawful activity and knowing that such transportation, 
        transmission, or transfer is designed in whole or in 
        part--
                    (i) to conceal or disguise the nature, the 
                location, the source, the ownership, or the 
                control of the proceeds of specified unlawful 
                activity; or
                    (ii) to avoid a transaction reporting 
                requirement under State or Federal law,
shall be sentenced to a fine of not more than $500,000 or twice 
the value of the monetary instrument or funds involved in the 
transportation, transmission, or transfer, whichever is 
greater, or imprisonment for not more than twenty years, or 
both. For the purpose of the offense described in subparagraph 
(B), the defendant's knowledge may be established by proof that 
a law enforcement officer represented the matter specified in 
subparagraph (B) as true, and the defendant's subsequent 
statements or actions indicate that the defendant believed such 
representations to be true.
    (3) Whoever, with the intent--
            (A) to promote the carrying on of specified 
        unlawful activity;
            (B) to conceal or disguise the nature, location, 
        source, ownership, or control of property believed to 
        be the proceeds of specified unlawful activity; or
            (C) to avoid a transaction reporting requirement 
        under State or Federal law,
conducts or attempts to conduct a financial transaction 
involving property represented to be the proceeds of specified 
unlawful activity, or property used to conduct or facilitate 
specified unlawful activity, shall be fined under this title or 
imprisoned for not more than 20 years, or both. For purposes of 
this paragraph and paragraph (2), the term ``represented'' 
means any representation made by a law enforcement officer or 
by another person at the direction of, or with the approval of, 
a Federal official authorized to investigate or prosecute 
violations of this section.
    (b) Penalties.--
            (1) In general.--Whoever conducts or attempts to 
        conduct a transaction described in subsection (a)(1) or 
        (a)(3), or section 1957, or a transportation, 
        transmission, or transfer described in subsection 
        (a)(2), is liable to the United States for a civil 
        penalty of not more than the greater of--
                    (A) the value of the property, funds, or 
                monetary instruments involved in the 
                transaction; or
                    (B) $10,000.
            (2) Jurisdiction over foreign persons.--For 
        purposes of adjudicating an action filed or enforcing a 
        penalty ordered under this section, the district courts 
        shall have jurisdiction over any foreign person, 
        including any financial institution authorized under 
        the laws of a foreign country, against whom the action 
        is brought, if service of process upon the foreign 
        person is made under the Federal Rules of Civil 
        Procedure or the laws of the country in which the 
        foreign person is found, and--
                    (A) the foreign person commits an offense 
                under subsection (a) involving a financial 
                transaction that occurs in whole or in part in 
                the United States;
                    (B) the foreign person converts, to his or 
                her own use, property in which the United 
                States has an ownership interest by virtue of 
                the entry of an order of forfeiture by a court 
                of the United States; or
                    (C) the foreign person is a financial 
                institution that maintains a bank account at a 
                financial institution in the United States.
            (3) Court authority over assets.--A court may issue 
        a pretrial restraining order or take any other action 
        necessary to ensure that any bank account or other 
        property held by the defendant in the United States is 
        available to satisfy a judgment under this section.
            (4) Federal receiver.--
                    (A) In general.--A court may appoint a 
                Federal Receiver, in accordance with 
                subparagraph (B) of this paragraph, to collect, 
                marshal, and take custody, control, and 
                possession of all assets of the defendant, 
                wherever located, to satisfy a civil judgment 
                under this subsection, a forfeiture judgment 
                under section 981 or 982, or a criminal 
                sentence under section 1957 or subsection (a) 
                of this section, including an order of 
                restitution to any victim of a specified 
                unlawful activity.
                    (B) Appointment and authority.--A Federal 
                Receiver described in subparagraph (A)--
                            (i) may be appointed upon 
                        application of a Federal prosecutor or 
                        a Federal or State regulator, by the 
                        court having jurisdiction over the 
                        defendant in the case;
                            (ii) shall be an officer of the 
                        court, and the powers of the Federal 
                        Receiver shall include the powers set 
                        out in section 754 of title 28, United 
                        States Code; and
                            (iii) shall have standing 
                        equivalent to that of a Federal 
                        prosecutor for the purpose of 
                        submitting requests to obtain 
                        information regarding the assets of the 
                        defendant--
                                    (I) from the Financial 
                                Crimes Enforcement Network of 
                                the Department of the Treasury; 
                                or
                                    (II) from a foreign country 
                                pursuant to a mutual legal 
                                assistance treaty, multilateral 
                                agreement, or other arrangement 
                                for international law 
                                enforcement assistance, 
                                provided that such requests are 
                                in accordance with the policies 
                                and procedures of the Attorney 
                                General.
    (c) As used in this section--
            (1) the term ``knowing that the property involved 
        in a financial transaction represents the proceeds of 
        some form of unlawful activity'' means that the person 
        knew the property involved in the transaction 
        represented proceeds from some form, though not 
        necessarily which form, of activity that constitutes a 
        felony under State, Federal, or foreign law, regardless 
        of whether or not such activity is specified in 
        paragraph (7);
            (2) the term ``conducts'' includes initiating, 
        concluding, or participating in initiating, or 
        concluding a transaction;
            (3) the term ``transaction'' includes a purchase, 
        sale, loan, pledge, gift, transfer, delivery, or other 
        disposition, and with respect to a financial 
        institution includes a deposit, withdrawal, transfer 
        between accounts, exchange of currency, loan, extension 
        of credit, purchase or sale of any stock, bond, 
        certificate of deposit, or other monetary instrument, 
        use of a safe deposit box, or any other payment, 
        transfer, or delivery by, through, or to a financial 
        institution, by whatever means effected;
            (4) the term ``financial transaction'' means (A) a 
        transaction which in any way or degree affects 
        interstate or foreign commerce (i) involving the 
        movement of funds by wire or other means or (ii) 
        involving one or more monetary instruments, or (iii) 
        involving the transfer of title to any real property, 
        vehicle, vessel, or aircraft, or (B) a transaction 
        involving the use of a financial institution which is 
        engaged in, or the activities of which affect, 
        interstate or foreign commerce in any way or degree;
            (5) the term ``monetary instruments'' means (i) 
        coin or currency of the United States or of any other 
        country, travelers' checks, personal checks, bank 
        checks, and money orders, or (ii) investment securities 
        or negotiable instruments, in bearer form or otherwise 
        in such form that title thereto passes upon delivery;
            (6) the term ``financial institution'' includes--
                    (A) any financial institution, as defined 
                in section 5312(a)(2) of title 31, United 
                States Code, or the regulations promulgated 
                thereunder; and
                    (B) any foreign bank, as defined in section 
                1 of the International Banking Act of 1978 (12 
                U.S.C. 3101);
            (7) the term ``specified unlawful activity'' 
        means--
                    (A) any act or activity constituting an 
                offense listed in section 1961(1) of this title 
                except an act which is indictable under 
                subchapter II of chapter 53 of title 31;
                    (B) with respect to a financial transaction 
                occurring in whole or in part in the United 
                States, an offense against a foreign nation 
                involving--
                            (i) the manufacture, importation, 
                        sale, or distribution of a controlled 
                        substance (as such term is defined for 
                        the purposes of the Controlled 
                        Substances Act);
                            (ii) murder, kidnapping, robbery, 
                        extortion, destruction of property by 
                        means of explosive or fire, or a crime 
                        of violence (as defined in section 16);
                            (iii) fraud, or any scheme or 
                        attempt to defraud, by or against a 
                        foreign bank (as defined in paragraph 7 
                        of section 1(b) of the International 
                        Banking Act of 1978));
                            (iv) bribery of a public official, 
                        or the misappropriation, theft, or 
                        embezzlement of public funds by or for 
                        the benefit of a public official;
                            (v) smuggling or export control 
                        violations involving--
                                    (I) an item controlled on 
                                the United States Munitions 
                                List established under section 
                                38 of the Arms Export Control 
                                Act (22 U.S.C. 2778); or
                                    (II) an item controlled 
                                under regulations under the 
                                Export Administration 
                                Regulations (15 C.F.R. Parts 
                                730-774);
                            (vi) an offense with respect to 
                        which the United States would be 
                        obligated by a multilateral treaty, 
                        either to extradite the alleged 
                        offender or to submit the case for 
                        prosecution, if the offender were found 
                        within the territory of the United 
                        States; or
                            (vii) trafficking in persons, 
                        selling or buying of children, sexual 
                        exploitation of children, or 
                        transporting, recruiting or harboring a 
                        person, including a child, for 
                        commercial sex acts;
                    (C) any act or acts constituting a 
                continuing criminal enterprise, as that term is 
                defined in section 408 of the Controlled 
                Substances Act (21 U.S.C. 848);
                    (D) an offense under section 32 (relating 
                to the destruction of aircraft), section 37 
                (relating to violence at international 
                airports), section 115 (relating to 
                influencing, impeding, or retaliating against a 
                Federal official by threatening or injuring a 
                family member), section 152 (relating to 
                concealment of assets; false oaths and claims; 
                bribery), section 175c (relating to the variola 
                virus), section 215 (relating to commissions or 
                gifts for procuring loans), section 351 
                (relating to congressional or Cabinet officer 
                assassination), any of sections 500 through 503 
                (relating to certain counterfeiting offenses), 
                section 513 (relating to securities of States 
                and private entities), section 541 (relating to 
                goods falsely classified), section 542 relating 
                to entry of goods by means of false 
                statements), section 545 (relating to smuggling 
                goods into the United States), section 549 
                (relating to removing goods from Customs 
                custody), section 554 (relating to smuggling 
                goods from the United States), section 555 
                (relating to border tunnels), section 641 
                (relating to public money, property, or 
                records), section 656 (relating to theft, 
                embezzlement, or misapplication by bank officer 
                or employee), section 657 (relating to lending, 
                credit, and insurance institutions), section 
                658 (relating to property mortgaged or pledged 
                to farm credit agencies), section 666 (relating 
                to theft or bribery concerning programs 
                receiving Federal funds), section 793, 794, or 
                798 (relating to espionage), section 831 
                (relating to prohibited transactions involving 
                nuclear materials), section 844 (f) or (i) 
                (relating to destruction by explosives or fire 
                of Government property or property affecting 
                interstate or foreign commerce), section 875 
                (relating to interstate communications), 
                section 922(1) (relating to the unlawful 
                importation of firearms), section 924(n) 
                (relating to firearms trafficking), section 956 
                (relating to conspiracy to kill, kidnap, maim, 
                or injure certain property in a foreign 
                country), section 1005 (relating to fraudulent 
                bank entries), 1006(relating to fraudulent 
                Federal credit institution entries), 
                1007(relating to Federal Deposit Insurance 
                transactions), 1014(relating to fraudulent loan 
                or credit applications), section 1030 (relating 
                to computer fraud and abuse), 1032(relating to 
                concealment of assets from conservator, 
                receiver, or liquidating agent of financial 
                institution), section 1111 (relating to 
                murder), section 1114 (relating to murder of 
                United States law enforcement officials), 
                section 1116 (relating to murder of foreign 
                officials, official guests, or internationally 
                protected persons), section 1201 (relating to 
                kidnaping), section 1203 (relating to hostage 
                taking), section 1361 (relating to willful 
                injury of Government property), section 1363 
                (relating to destruction of property within the 
                special maritime and territorial jurisdiction), 
                section 1708 (theft from the mail), section 
                1751 (relating to Presidential assassination), 
                section 2113 or 2114 (relating to bank and 
                postal robbery and theft), section 2252A 
                (relating to child pornography) where the child 
                pornography contains a visual depiction of an 
                actual minor engaging in sexually explicit 
                conduct, section 2260 (production of certain 
                child pornography for importation into the 
                United States), section 2280 (relating to 
                violence against maritime navigation), section 
                2281 (relating to violence against maritime 
                fixed platforms), section 2319 (relating to 
                copyright infringement), section 2320 (relating 
                to trafficking in counterfeit goods and 
                services), section 2332 (relating to terrorist 
                acts abroad against United States nationals), 
                section 2332a (relating to use of weapons of 
                mass destruction), section 2332b (relating to 
                international terrorist acts transcending 
                national boundaries), section 2332g (relating 
                to missile systems designed to destroy 
                aircraft), section 2332h (relating to 
                radiological dispersal devices), section 2339A 
                or 2339B (relating to providing material 
                support to terrorists), section 2339C (relating 
                to financing of terrorism), or section 2339D 
                (relating to receiving military-type training 
                from a foreign terrorist organization) of this 
                title, section 46502 of title 49, United States 
                Code, a felony violation of the Chemical 
                Diversion and Trafficking Act of 1988 (relating 
                to precursor and essential chemicals), section 
                590 of the Tariff Act of 1930 (19 U.S.C. 1590) 
                (relating to aviation smuggling), section 422 
                of the Controlled Substances Act (relating to 
                transportation of drug paraphernalia), section 
                38(c) (relating to criminal violations) of the 
                Arms Export Control Act, section 11 (relating 
                to violations) of the Export Administration Act 
                of 1979, section 206 (relating to penalties) of 
                the International Emergency Economic Powers 
                Act, section 16 (relating to offenses and 
                punishment) of the Trading with the Enemy Act, 
                any felony violation of section 15 of the Food 
                and Nutrition Act of 2008 (relating to 
                supplemental nutrition assistance program 
                benefits fraud) involving a quantity of 
                benefits having a value of not less than 
                $5,000, any violation of section 543(a)(1) of 
                the Housing Act of 1949 (relating to equity 
                skimming), any felony violation of the Foreign 
                Agents Registration Act of 1938, any felony 
                violation of the Foreign Corrupt Practices Act, 
                [or section 92 of the Atomic Energy Act of 
                1954] section 92 of the Atomic Energy Act of 
                1954 (42 U.S.C. 2122) (relating to prohibitions 
                governing atomic weapons), or section 104(a) of 
                the North Korea Sanctions Enforcement Act of 
                2015;
                    (E) a felony violation of the Federal Water 
                Pollution Control Act (33 U.S.C. 1251 et seq.), 
                the Ocean Dumping Act (33 U.S.C. 1401 et seq.), 
                the Act to Prevent Pollution from Ships (33 
                U.S.C. 1901 et seq.), the Safe Drinking Water 
                Act (42 U.S.C. 300f et seq.), or the Resources 
                Conservation and Recovery Act (42 U.S.C. 6901 
                et seq.); or
                    (F) any act or activity constituting an 
                offense involving a Federal health care 
                offense;
            (8) the term ``State'' includes a State of the 
        United States, the District of Columbia, and any 
        commonwealth, territory, or possession of the United 
        States; and
            (9) the term ``proceeds'' means any property 
        derived from or obtained or retained, directly or 
        indirectly, through some form of unlawful activity, 
        including the gross receipts of such activity.
    (d) Nothing in this section shall supersede any provision 
of Federal, State, or other law imposing criminal penalties or 
affording civil remedies in addition to those provided for in 
this section.
    (e) Violations of this section may be investigated by such 
components of the Department of Justice as the Attorney General 
may direct, and by such components of the Department of the 
Treasury as the Secretary of the Treasury may direct, as 
appropriate, and, with respect to offenses over which the 
Department of Homeland Security has jurisdiction, by such 
components of the Department of Homeland Security as the 
Secretary of Homeland Security may direct, and, with respect to 
offenses over which the United States Postal Service has 
jurisdiction, by the Postal Service. Such authority of the 
Secretary of the Treasury, the Secretary of Homeland Security, 
and the Postal Service shall be exercised in accordance with an 
agreement which shall be entered into by the Secretary of the 
Treasury, the Secretary of Homeland Security, the Postal 
Service, and the Attorney General. Violations of this section 
involving offenses described in paragraph (c)(7)(E) may be 
investigated by such components of the Department of Justice as 
the Attorney General may direct, and the National Enforcement 
Investigations Center of the Environmental Protection Agency.
    (f) There is extraterritorial jurisdiction over the conduct 
prohibited by this section if--
            (1) the conduct is by a United States citizen or, 
        in the case of a non-United States citizen, the conduct 
        occurs in part in the United States; and
            (2) the transaction or series of related 
        transactions involves funds or monetary instruments of 
        a value exceeding $10,000.
    (g) Notice of Conviction of Financial Institutions.--If any 
financial institution or any officer, director, or employee of 
any financial institution has been found guilty of an offense 
under this section, section 1957 or 1960 of this title, or 
section 5322 or 5324 of title 31, the Attorney General shall 
provide written notice of such fact to the appropriate 
regulatory agency for the financial institution.
    (h) Any person who conspires to commit any offense defined 
in this section or section 1957 shall be subject to the same 
penalties as those prescribed for the offense the commission of 
which was the object of the conspiracy.
    (i) Venue.--(1) Except as provided in paragraph (2), a 
prosecution for an offense under this section or section 1957 
may be brought in--
            (A) any district in which the financial or monetary 
        transaction is conducted; or
            (B) any district where a prosecution for the 
        underlying specified unlawful activity could be 
        brought, if the defendant participated in the transfer 
        of the proceeds of the specified unlawful activity from 
        that district to the district where the financial or 
        monetary transaction is conducted.
    (2) A prosecution for an attempt or conspiracy offense 
under this section or section 1957 may be brought in the 
district where venue would lie for the completed offense under 
paragraph (1), or in any other district where an act in 
furtherance of the attempt or conspiracy took place.
    (3) For purposes of this section, a transfer of funds from 
1 place to another, by wire or any other means, shall 
constitute a single, continuing transaction. Any person who 
conducts (as that term is defined in subsection (c)(2)) any 
portion of the transaction may be charged in any district in 
which the transaction takes place.

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                              ----------                              


                 NORTH KOREAN HUMAN RIGHTS ACT OF 2004



           *       *       *       *       *       *       *
TITLE I--PROMOTING THE HUMAN RIGHTS OF NORTH KOREANS

           *       *       *       *       *       *       *


SEC. 104. ACTIONS TO PROMOTE FREEDOM OF INFORMATION.

    (a) Actions.--The President is authorized to take such 
actions as may be necessary to increase the availability of 
information inside North Korea by increasing the availability 
of sources of information not controlled by the Government of 
North Korea, including sources such as radios capable of 
receiving broadcasting from outside North Korea.
    (b) Authorization of Appropriations.--
            (1) In general.--There are authorized to be 
        appropriated to the President $2,000,000 for each of 
        the fiscal years 2005 through 2017 to carry out 
        subsection (a).
            (2) Availability.--Amounts appropriated pursuant to 
        the authorization of appropriations under paragraph (1) 
        are authorized to remain available until expended.
    (c) Report.--Not later than 1 year after the date of the 
enactment of this Act, and annually through 2017, the Secretary 
of State, after consultation with the heads of other 
appropriate Federal departments and agencies, shall submit to 
the appropriate congressional committees a report, in 
classified form, on actions taken pursuant to this section.
    (d) Information Technology Study.--
            (1) In general.--Not later than 180 days after the 
        date of the enactment of this subsection, the President 
        shall submit to the appropriate congressional 
        committees a report setting forth a detailed plan for 
        making unrestricted, unmonitored, and inexpensive, 
        radio, Internet, and electronic mass communications 
        available to the people of North Korea.
            (2) Form.--The report required by paragraph (1) 
        shall be submitted in unclassified form, but may 
        contain a classified annex.

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