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115th Congress } { Rept. 115-98
HOUSE OF REPRESENTATIVES
1st Session } { Part 1
======================================================================
KOREAN INTERDICTION AND MODERNIZATION OF SANCTIONS ACT
_______
April 28, 2017.--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. 1644]
[Including cost estimate of the Congressional Budget Office]
The Committee on Foreign Affairs, to whom was referred the
bill (H.R. 1644) to enhance sanctions with respect to
transactions relating to 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 of Legislation............................... 11
Background and Need for Legislation.............................. 12
Hearings/Briefings............................................... 16
Committee Consideration.......................................... 16
Committee Oversight Findings..................................... 16
New Budget Authority, Tax Expenditures, and Federal Mandates..... 16
Congressional Budget Office Cost Estimate........................ 17
Directed Rule Making............................................. 20
Non-Duplication of Federal Programs.............................. 20
Performance Goals and Objectives................................. 20
Congressional Accountability Act................................. 20
New Advisory Committees.......................................... 21
Earmark Identification........................................... 21
Letters of Jurisdiction.......................................... 21
Section-by-Section Analysis...................................... 31
Changes in Existing Law Made by the Bill, as Reported............ 34
The Amendment
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Korean Interdiction and Modernization
of Sanctions Act''.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definitions.
TITLE I--SANCTIONS TO ENFORCE AND IMPLEMENT UNITED NATIONS SECURITY
COUNCIL SANCTIONS AGAINST NORTH KOREA
Sec. 101. Modification and expansion of requirements for the
designation of persons.
Sec. 102. Prohibition on indirect correspondent accounts.
Sec. 103. Limitations on foreign assistance to noncompliant
governments.
Sec. 104. Amendments to enhance inspection authorities.
Sec. 105. Enforcing compliance with United Nations shipping sanctions
against North Korea.
Sec. 106. Report on cooperation between North Korea and Iran.
Sec. 107. Report on implementation of United Nations Security Council
resolutions by other governments.
Sec. 108. Briefing on measures to deny specialized financial messaging
services to designated North Korean financial institutions.
TITLE II--SANCTIONS WITH RESPECT TO HUMAN RIGHTS ABUSES BY THE
GOVERNMENT OF NORTH KOREA
Sec. 201. Sanctions for forced labor and slavery overseas of North
Koreans.
Sec. 202. Modifications to sanctions suspension and waiver authorities.
Sec. 203. Reward for informants.
Sec. 204. Determination on designation of North Korea as a state
sponsor of terrorism.
TITLE III--GENERAL AUTHORITIES
Sec. 301. Authority to consolidate reports.
Sec. 302. Rule of construction.
Sec. 303. Regulatory authority.
Sec. 304. Limitation on funds.
SEC. 3. DEFINITIONS.
(a) Amendments to Definitions in the North Korea Sanctions and Policy
Enhancement Act of 2016.--
(1) Applicable executive order.--Section 3(1)(A) of the North
Korea Sanctions and Policy Enhancement Act of 2016 (22 U.S.C.
9202(1)(A)) is amended--
(A) by striking ``or Executive Order 13694'' and
inserting ``Executive Order 13694''; and
(B) by inserting ``or Executive Order 13722 (50
U.S.C. 1701 note; relating to blocking the property of
the Government of North Korea and the Workers' Party of
Korea, and Prohibiting Certain Transactions With
Respect to North Korea),'' before ``to the extent''.
(2) Applicable united nations security council resolution.--
Section 3(2)(A) of the North Korea Sanctions and Policy
Enhancement Act of 2016 (22 U.S.C. 9202(2)(A)) is amended by
striking ``or 2094 (2013)'' and inserting ``2094 (2013), 2270
(2016), or 2321 (2016)''.
(3) Foreign person.--Section 3 of the North Korea Sanctions
and Policy Enhancement Act of 2016 (22 U.S.C. 9202) is
amended--
(A) by redesignating paragraphs (5) through (14) as
paragraphs (6) through (15), respectively; and
(B) by inserting after paragraph (4) the following
new paragraph:
``(5) Foreign person.--The term `foreign person' means--
``(A) an individual who is not a United States
citizen or an alien lawfully admitted for permanent
residence to the United States; or
``(B) an entity that is not a United States
person.''.
(4) Luxury goods.--Paragraph (9) of section 3 of the North
Korea Sanctions and Policy Enhancement Act of 2016 (22 U.S.C.
9202), as redesignated by paragraph (3) of this subsection, is
amended--
(A) in subparagraph (A), by striking ``and'' at the
end;
(B) in subparagraph (B), by striking the period at
the end and inserting ``; and''; and
(C) by adding at the end the following new
subparagraph:
``(C) also includes any items so designated under an
applicable United Nations Security Council
resolution.''.
(5) North korean person.--Section 3 of the North Korea
Sanctions and Policy Enhancement Act of 2016 (22 U.S.C. 9202),
as amended by paragraph (3) of this subsection, is further
amended--
(A) by redesignating paragraphs (13) through (15) as
paragraphs (14) through (16), respectively; and
(B) by inserting after paragraph (12) the following
new paragraph:
``(13) North korean person.--The term `North Korean person'
means--
``(A) a North Korean citizen or national; or
``(B) an entity owned or controlled by the Government
of North Korea or by a North Korean citizen or
national.''.
(b) Definitions for Purposes of This Act.--In this Act:
(1) Applicable united nations security council resolution;
luxury goods.--The terms ``applicable United Nations Security
Council resolution'' and ``luxury goods'' have the meanings
given those terms, respectively, in section 3 of the North
Korea Sanctions and Policy Enhancement Act of 2016 (22 U.S.C.
9202), as amended by subsection (a).
(2) Appropriate congressional committees; government of north
korea; united states person.--The terms ``appropriate
congressional committees'', ``Government of North Korea'', and
``United States person'' have the meanings given those terms,
respectively, in section 3 of the North Korea Sanctions and
Policy Enhancement Act of 2016 (22 U.S.C. 9202).
(3) Foreign person; north korean person.--The terms ``foreign
person'' and ``North Korean person'' have the meanings given
those terms, respectively, in paragraph (5) and paragraph (13)
of section 3 of the North Korea Sanctions and Policy
Enhancement Act of 2016 (22 U.S.C. 9202(5) and 9202(13)), as
added by subsection (a).
(4) Prohibited weapons program.--The term ``prohibited
weapons program'' means--
(A) any program related to the development of
nuclear, chemical, or biological weapons, and their
means of delivery, including ballistic missiles; and
(B) any program to develop any related materials with
respect to a program described in subparagraph (A).
TITLE I--SANCTIONS TO ENFORCE AND IMPLEMENT UNITED NATIONS SECURITY
COUNCIL SANCTIONS AGAINST NORTH KOREA
SEC. 101. MODIFICATION AND EXPANSION OF REQUIREMENTS FOR THE
DESIGNATION OF PERSONS.
(a) Expansion of Mandatory Designations.--Section 104(a) of the North
Korea Sanctions and Policy Enhancement Act of 2016 (22 U.S.C. 9214(a))
is amended--
(1) in paragraph (9), by striking ``; or'' and inserting ``or
any defense article or defense service (as such terms are
defined in section 47 of the Arms Export Control Act (22 U.S.C.
2794));'';
(2) by redesignating paragraph (10) as paragraph (15);
(3) by inserting after paragraph (9) the following new
paragraphs:
``(10) knowingly, directly or indirectly, purchases or
otherwise acquires from North Korea any significant amounts of
gold, titanium ore, vanadium ore, copper, silver, nickel, zinc,
or rare earth minerals;
``(11) knowingly, directly or indirectly, sells or transfers
to North Korea any significant amounts of rocket, aviation, or
jet fuel (except for use by a civilian passenger aircraft
outside North Korea, exclusively for consumption during its
flight to North Korea or its return flight);
``(12) knowingly, directly or indirectly, provides fuel,
supplies, or bunkering services to, or facilitates a
significant transaction or transactions to operate or maintain,
a vessel or aircraft that is designated under an applicable
Executive order or an applicable United Nations Security
Council resolution, or that is owned or controlled by a person
designated under an applicable Executive order or applicable
United Nations Security Council resolution;
``(13) knowingly, directly or indirectly, insures, registers,
facilitates the registration of, or maintains insurance or a
registration for, a vessel owned or controlled by the
Government of North Korea, except as specifically approved by
the United Nations Security Council;
``(14) knowingly, directly or indirectly, maintains a
correspondent account (as defined in section 201A(d)(1)) with
any North Korean financial institution, except as specifically
approved by the United Nations Security Council; or''; and
(4) in paragraph (15), as so redesignated, by striking
``(9)'' and inserting ``(14)''.
(b) Expansion of Additional Discretionary Designations.--Section
104(b)(1) of the North Korea Sanctions and Policy Enhancement Act of
2016 (22 U.S.C. 9214(b)(1)) is amended--
(1) in subparagraph (A), by striking ``pursuant to an
applicable United Nations Security Council resolution;'' and
inserting the following: ``pursuant to--
``(i) an applicable United Nations Security
Council resolution;
``(ii) any regulation promulgated under
section 404; or
``(iii) any applicable Executive order;'';
(2) in subparagraph (B)(iii), by striking ``or'' at the end;
(3) in subparagraph (C), by striking the period at the end
and inserting a semicolon; and
(4) by adding at the end the following new subparagraphs:
``(D) knowingly, directly or indirectly, purchased or
otherwise acquired from the Government of North Korea
significant quantities of coal, iron, or iron ore, in
excess of the limitations provided in applicable United
Nations Security Council resolutions;
``(E) knowingly, directly or indirectly, purchased or
otherwise acquired significant types or amounts of
textiles from the Government of North Korea;
``(F) knowingly facilitated any transfer of funds or
property of the Government of North Korea that
materially contributes to any violation of an
applicable United National Security Council resolution;
``(G) knowingly, directly or indirectly, facilitated
a significant transfer to or from the Government of
North Korea of bulk cash, precious metals, gemstones,
or other stores of value not described under subsection
(a)(10);
``(H) knowingly, directly or indirectly, sold,
transferred, or otherwise provided significant amounts
of crude oil, condensates, refined petroleum, other
types of petroleum or petroleum byproducts, liquified
natural gas, or other natural gas resources to the
Government of North Korea (except for heavy fuel oil,
gasoline, or diesel fuel for humanitarian use or as
excepted under subsection (a)(11));
``(I) knowingly, directly or indirectly, engaged in,
facilitated, or was responsible for the online
commercial activities of the Government of North Korea,
including online gambling;
``(J) knowingly, directly or indirectly, purchased or
otherwise acquired fishing rights from the Government
of North Korea;
``(K) knowingly, directly or indirectly, provided
significant telephonic, telegraphic, telecommunications
or other data services, in whole or in part, into or
out of North Korea, in excess of services needed for
humanitarian or diplomatic purposes (other than
services that are excepted under section 203(b)(1) of
the International Emergency Economic Powers Act (50
U.S.C. 1702(b)(1)));
``(L) knowingly, directly or indirectly, purchased or
otherwise acquired significant types or amounts of food
or agricultural products from the Government of North
Korea;
``(M) knowingly, directly or indirectly, engaged in,
facilitated, or was responsible for the exportation of
workers from North Korea in a manner intended to
generate significant revenue, directly or indirectly,
for use by the Government of North Korea or by the
Workers' Party of Korea;
``(N) knowingly conducted a significant transaction
or transactions in North Korea's transportation,
mining, energy, or financial services industries; or
``(O) except as specifically approved by the United
Nations Security Council, and other than through a
correspondent account as described in subsection
(a)(14), knowingly facilitated the operation of any
branch, subsidiary, or office of a North Korean
financial institution.''.
(c) Mandatory and Discretionary Asset Blocking.--Section 104(c) of
the North Korea Sanctions and Policy Enhancement Act of 2016 (22 U.S.C.
9214(c)) is amended--
(1) by striking ``of a designated person'' and inserting ``of
a person designated under subsection (a)'';
(2) by striking ``The President'' and inserting the
following:
``(1) Mandatory asset blocking.--The President''; and
(3) by adding at the end the following new paragraph:
``(2) Discretionary asset blocking.--The President may also
exercise such powers, in the same manner and to the same extent
described in paragraph (1), with respect to a person designated
under subsection (b).''.
(d) Designation of Additional Persons.--
(1) In general.--Not later than 180 days after the date of
the enactment of this Act, the President shall submit to the
appropriate congressional committees a report including a
determination as to whether reasonable grounds exist, and an
explanation of the reasons for any determination that such
grounds do not exist, to designate, pursuant to section 104 of
the North Korea Sanctions and Policy Enhancement Act of 2016
(22 U.S.C. 9214), as amended by this section, each of the
following:
(A) The Korea Shipowners' Protection and Indemnity
Association, a North Korean insurance company, with
respect to facilitating imports, exports, and reexports
of arms and related materiel to and from North Korea,
or for other activities prohibited by such section 104.
(B) Chinpo Shipping Company (Private) Limited, a
Singapore corporation, with respect to facilitating
imports, exports, and reexports of arms and related
materiel to and from North Korea.
(C) The Central Bank of the Democratic People's
Republic of Korea, with respect to the sale of gold to,
the receipt of gold from, or the import or export of
gold by the Government of North Korea.
(D) Kumgang Economic Development Corporation (KKG),
with respect to being an entity controlled by Bureau 39
of the Workers' Party of the Government of North Korea.
(E) Sam Pa, also known as Xu Jinghua, Xu Songhua, Sa
Muxu, Samo, Sampa, or Sam King, and any entities owned
or controlled by such individual, with respect to
transactions with KKG.
(F) The Chamber of Commerce of the Democratic
People's Republic of Korea, with respect to the
exportation of workers in violation of section
104(a)(5) or of section 104(b)(1)(M) of such Act, as
amended by subsection (b) of this section.
(2) Form.--The report submitted under paragraph (1) may
contain a classified annex.
SEC. 102. PROHIBITION ON INDIRECT CORRESPONDENT ACCOUNTS.
(a) In General.--Title II of the North Korea Sanctions and Policy
Enhancement Act of 2016 (22 U.S.C. 9221 et seq.) is amended by
inserting after section 201 the following new section:
``SEC. 201A. PROHIBITION ON INDIRECT CORRESPONDENT ACCOUNTS.
``(a) In General.--Except as provided in subsection (b), if a United
States financial institution has or obtains knowledge that a
correspondent account established, maintained, administered, or managed
by that institution for a foreign financial institution is being used
by the foreign financial institution to provide financial services
indirectly to any person, foreign government, or financial institution
designated under section 104, the United States financial institution
shall ensure that such correspondent account is no longer used to
provide such services.
``(b) Exception.--A United States financial institution is authorized
to process transfers of funds to or from North Korea, or for the direct
or indirect benefit of any person, foreign government, or financial
institution that is designated under section 104, only if the
transfer--
``(1) arises from, and is ordinarily incident and necessary
to give effect to, an underlying transaction that has been
authorized by a specific or general license issued by the
Secretary of the Treasury; and
``(2) does not involve debiting or crediting a North Korean
account.
``(c) Definitions.--In this section:
``(1) Correspondent account.--The term `correspondent
account' has the meaning given that term in section 5318A of
title 31, United States Code.
``(2) United states financial institution.--The term `United
States financial institution' means has the meaning given that
term in section 510.310 of title 31, Code of Federal
Regulations, as in effect on the date of the enactment of this
section.
``(3) Foreign financial institution.--The term `foreign
financial institution' has the meaning given that term in
section 1010.605 of title 31, Code of Federal Regulations, as
in effect on the date of the enactment of this section.''.
(b) Clerical Amendment.--The table of contents in section 1(b) of the
North Korea Sanctions and Policy Enhancement Act of 2016 is amended by
inserting after the item relating to section 201 the following new
item:
``Sec. 201A. Prohibition on indirect correspondent accounts.''.
SEC. 103. LIMITATIONS ON FOREIGN ASSISTANCE TO NONCOMPLIANT
GOVERNMENTS.
Section 203 of the North Korea Sanctions and Policy Enhancement Act
of 2016 (22 U.S.C. 9223) is amended--
(1) in subsection (b)--
(A) in the heading, by striking ``Transactions in
Lethal Military Equipment'' and inserting
``Transactions in Defense Articles or Defense
Services'';
(B) in paragraph (1), by striking ``that provides
lethal military equipment to the Government of North
Korea'' and inserting ``that provides to or receives
from the Government of North Korea a defense article or
defense service, as such terms are defined in section
47 of the Arms Export Control Act (22 U.S.C. 2794)'';
and
(C) in paragraph (2), by striking ``1 year'' and
inserting ``2 years'';
(2) in subsection (d), by striking ``or emergency'' and
inserting ``maternal and child health, disease prevention and
response, or''; and
(3) by adding at the end the following new subsection:
``(e) Report on Arms Trafficking Involving North Korea.--
``(1) In general.--Not later than 180 days after the date of
the enactment of this subsection, and every 180 days thereafter
for 5 years, the Secretary of State shall submit to the
appropriate congressional committees a report that specifically
describes the compliance of foreign countries and other foreign
jurisdictions with the requirement to curtail the trade
described in subsection (b)(1).
``(2) Form.--The report required under paragraph (1) shall be
submitted in unclassified form but may contain a classified
annex.''.
SEC. 104. AMENDMENTS TO ENHANCE INSPECTION AUTHORITIES.
Title II of the North Korea Sanctions and Policy Enhancement Act of
2016 (22 U.S.C. 9221 et seq.), as amended by section 102 of this Act,
is further amended by striking section 205 and inserting the following:
``SEC. 205. ENHANCED INSPECTION AUTHORITIES.
``(a) Report Required.--
``(1) In general.--Not later than 180 days after the date of
the enactment of this section, and annually thereafter for 5
years, the President shall submit to the appropriate
congressional committees a report--
``(A) identifying the operators of foreign sea ports
and airports that have knowingly--
``(i) failed to implement or enforce
regulations to inspect ships, aircraft, cargo,
or conveyances in transit to or from North
Korea, as required by applicable United Nations
Security Council resolutions;
``(ii) facilitated the transfer,
transshipment, or conveyance of significant
types or quantities of cargo, vessels, or
aircraft owned or controlled by persons
designated under applicable United Nations
Security Council resolutions; or
``(iii) facilitated any of the activities
described in section 104(a);
``(B) describing the extent to which the requirements
of applicable United Nations Security Council
resolutions to de-register any vessel owned,
controlled, or operated by the Government of North
Korea have been implemented by other foreign countries;
``(C) describing the compliance of the Islamic
Republic of Iran with the sanctions mandated in
applicable United Nations Security Council resolutions;
``(D) identifying vessels, aircraft, and conveyances
owned or controlled by the Reconnaissance General
Bureau of the Workers' Party of Korea; and
``(E) describing the diplomatic and enforcement
efforts by the President to secure the full
implementation of the applicable United Nations
Security Council resolutions, as described in
subparagraphs (A) through (C).
``(2) Form.--The report required under paragraph (1) shall be
submitted in unclassified form but may contain a classified
annex.
``(b) Specific Findings.--Each report required under subsection (a)
shall include specific findings with respect to the following ports and
airports:
``(1) The ports of Dandong, Dalian, and any other port in the
People's Republic of China that the President deems
appropriate.
``(2) The ports of Abadan, Bandar-e-Abbas, Chabahar, Bandar-
e-Khomeini, Bushehr Port, Asaluyeh Port, Kish, Kharg Island,
Bandar-e-Lenge, and Khorramshahr, and Tehran Imam Khomeini
International Airport, in the Islamic Republic of Iran.
``(3) The ports of Nakhodka, Vanino, and Vladivostok, in the
Russian Federation.
``(4) The ports of Latakia, Banias, and Tartous, and Damascus
International Airport, in the Syrian Arab Republic.
``(c) Enhanced Security Targeting Requirements.--
``(1) In general.--Except as provided in paragraph (2), the
Secretary of Homeland Security may, using the Automated
Targeting System operated by the National Targeting Center of
U.S. Customs and Border Protection, require enhanced screening
procedures to determine whether physical inspections are
warranted of any cargo bound for or landed in the United States
that--
``(A) has been transported through a sea port or
airport the operator of which has been identified by
the President in accordance with subsection (a)(1) as
having repeatedly failed to comply with applicable
United Nations Security Council resolutions;
``(B) is aboard a vessel or aircraft, or within a
conveyance that has, within the last 365 days, entered
the territory, waters, or airspace of North Korea, or
landed in any of the sea ports or airports of North
Korea; or
``(C) is registered by a country or jurisdiction
whose compliance has been identified by the President
as deficient pursuant to subsection (a)(2).
``(2) Exception for food, medicine, and humanitarian
shipments.--Paragraph (1) shall not apply to any vessel,
aircraft, or conveyance that has entered the territory, waters,
or airspace of North Korea, or landed in any of the sea ports
or airports of North Korea, exclusively for the purposes
described in section 208(b)(3)(B), or to import food, medicine,
or supplies into North Korea to meet the humanitarian needs of
the North Korean people.
``(d) Seizure and Forfeiture.--A vessel, aircraft, or conveyance used
to facilitate any of the activities described in section 104(a) under
the jurisdiction of the United States may be seized and forfeited
under--
``(1) chapter 46 of title 18, United States Code; or
``(2) part V of title IV of the Tariff Act of 1930 (19 U.S.C.
1581 et seq.).''.
SEC. 105. ENFORCING COMPLIANCE WITH UNITED NATIONS SHIPPING SANCTIONS
AGAINST NORTH KOREA.
(a) In General.--The Ports and Waterways Safety Act (33 U.S.C. 1221
et seq.) is amended by adding at the end the following new section:
``SEC. 16. PROHIBITION ON ENTRY AND OPERATION.
``(a) Prohibition.--
``(1) In general.--Except as otherwise provided in this
section, no vessel described in subsection (b) may enter or
operate in the navigable waters of the United States or
transfer cargo in any port or place under the jurisdiction of
the United States.
``(2) Limitation on application.--
``(A) Determination by secretary of state.--Paragraph
(1) shall not apply with respect to a vessel described
in subsection (b)(2) if the Secretary of State
determines that the vessel is no longer registered as
described in that subsection.
``(B) Notice.--The Secretary of State shall publish a
notice in the Federal Register of each determination
made under subparagraph (A).
``(b) Vessels Described.--A vessel referred to in subsection (a) is a
foreign vessel for which a notice of arrival is required to be filed
under section 4(a)(5), and that--
``(1) is on the most recent list of vessels published in
Federal Register under subsection (c)(2); or
``(2) more than 180 days after the publication of such list,
is knowingly registered, pursuant to the 1958 Convention on the
High Seas entered into force on September 30, 1962, by a
government the agents or instrumentalities of which are
maintaining a registration of a vessel that is included on such
list.
``(c) Information and Publication.--The Secretary of the department
in which the Coast Guard is operating, in consultation with the
Secretary of State, shall--
``(1) maintain timely information on the registrations of all
foreign vessels over 300 gross tons that are--
``(A) owned or operated by or on behalf of the
Government of North Korea or a North Korean person;
``(B) owned or operated by or on behalf of any
country in which a sea port or airport is located, the
operator of which the President has identified in the
most recent report submitted under section 205(a)(1) of
the North Korea Sanctions and Policy Enhancement Act of
2016; or
``(C) owned or operated by or on behalf of any
country identified by the President as a country that
has not complied with the applicable United Nations
Security Council resolutions (as such term is defined
in section 3 of such Act); and
``(2) not later than 180 days after the date of the enactment
of this section, and periodically thereafter, publish in the
Federal Register a list of the vessels described in paragraph
(1).
``(d) Notification of Governments.--
``(1) In general.--The Secretary of State shall notify each
government, the agents or instrumentalities of which are
maintaining a registration of a foreign vessel that is included
on a list published under subsection (c)(2), not later than 30
days after such publication, that all vessels registered under
such government's authority are subject to the prohibition
under subsection (a).
``(2) Additional notification.--In the case of a government
that continues to maintain a registration for a vessel that is
included on such list after receiving an initial notification
under paragraph (1), the Secretary shall issue an additional
notification to such government not later than 120 days after
the publication of a list under subsection (c)(2).
``(e) Notification of Vessels.--Upon receiving a notice of arrival
under section 4(a)(5) from a vessel described in subsection (b), the
Secretary of the department in which the Coast Guard is operating shall
notify the master of such vessel that the vessel may not enter or
operate in the navigable waters of the United States or transfer cargo
in any port or place under the jurisdiction of the United States,
unless--
``(1) the Secretary of State has made a determination under
subsection (a)(2); or
``(2) the Secretary of the department in which the Coast
Guard is operating allows provisional entry of the vessel, or
transfer of cargo from the vessel, under subsection (f).
``(f) Provisional Entry or Cargo Transfer.--Notwithstanding any other
provision of this section, the Secretary of the department in which the
Coast Guard is operating may allow provisional entry of, or transfer of
cargo from, a vessel, if such entry or transfer is necessary for the
safety of the vessel or persons aboard.
``(g) Right of Innocent Passage.--This section shall not be construed
as authority to restrict the right of innocent passage as recognized
under international law.
``(h) Foreign Vessel Defined.--In this section, the term `foreign
vessel' has the meaning given that term in section 110 of title 46,
United States Code.''.
(b) Conforming Amendments.--
(1) Special powers.--Section 4(b)(2) of the Ports and
Waterways Safety Act (33 U.S.C. 1223(b)(2)) is amended by
inserting ``or 16'' after ``section 9''.
(2) Denial of entry.--Section 13(e) of the Ports and
Waterways Safety Act (33 U.S.C. 1232(e)) is amended by striking
``section 9'' and inserting ``section 9 or 16''.
SEC. 106. REPORT ON COOPERATION BETWEEN NORTH KOREA AND IRAN.
(a) In General.--Not later than 90 days after the date of the
enactment of this Act, and annually thereafter for 5 years, the
President shall submit to the appropriate congressional committees a
report that includes--
(1) an assessment of the extent of cooperation (including
through the transfer of goods, services, or technology) between
North Korea and Iran relating to their respective nuclear,
ballistic missile development, chemical or biological weapons
development, or conventional weapons programs;
(2) the names of any Iranian or North Korean persons that
have knowingly engaged in or directed--
(A) the provision of material support to such
programs; or
(B) the exchange of information between North Korea
and Iran with respect to such programs; and
(3) a determination whether any of the activities described
in paragraphs (1) and (2) violate United Nations Security
Council Resolution 2231 (2015).
(b) Form.--The report required under subsection (a) shall be
submitted in unclassified form but may contain a classified annex.
SEC. 107. REPORT ON IMPLEMENTATION OF UNITED NATIONS SECURITY COUNCIL
RESOLUTIONS BY OTHER GOVERNMENTS.
(a) In General.--Not later than 180 days after the date of the
enactment of this Act, and every 180 days thereafter for 5 years, the
President shall submit to the appropriate congressional committees a
report that evaluates the degree to which the governments of other
countries have knowingly failed to--
(1) close the representative offices of persons designated
under applicable United Nations Security Council resolutions;
(2) expel any North Korean nationals, including diplomats,
working on behalf of such persons;
(3) prohibit the opening of new branches, subsidiaries, or
representative offices of North Korean financial institutions
within the jurisdictions of such governments; or
(4) expel any representatives of North Korean financial
institutions.
(b) Form.--The report required under subsection (a) shall be
submitted in unclassified form but may contain a classified annex.
SEC. 108. BRIEFING ON MEASURES TO DENY SPECIALIZED FINANCIAL MESSAGING
SERVICES TO DESIGNATED NORTH KOREAN FINANCIAL
INSTITUTIONS.
(a) In General.--Not later than 180 days after the date of the
enactment of this Act, and every 180 days thereafter for 5 years, the
President shall provide to the appropriate congressional committees a
briefing that includes the following information:
(1) A list of each person or foreign government the President
has identified that directly provides specialized financial
messaging services to, or enables or facilitates direct or
indirect access to such messaging services for, any North
Korean financial institution (as such term is defined in
section 3 of the North Korea Sanctions and Policy Enhancement
Act of 2016 (22 U.S.C. 9202)) designated under an applicable
United Nations Security Council resolution.
(2) A detailed assessment of the status of efforts by the
Secretary of the Treasury to work with the relevant authorities
in the home jurisdictions of such specialized financial
messaging providers to end such provision or access.
(b) Form.--The briefing required under subsection (a) may be
classified.
TITLE II--SANCTIONS WITH RESPECT TO HUMAN RIGHTS ABUSES BY THE
GOVERNMENT OF NORTH KOREA
SEC. 201. SANCTIONS FOR FORCED LABOR AND SLAVERY OVERSEAS OF NORTH
KOREANS.
(a) Sanctions for Trafficking in Persons.--
(1) In general.--Section 302(b) of the North Korea Sanctions
and Policy Enhancement Act of 2016 (22 U.S.C. 9241(b)) is
amended--
(A) in paragraph (1), by striking ``and'' at the end;
(B) in paragraph (2), by striking the period at the
end and inserting ``; and''; and
(C) by adding at the end the following new paragraph:
``(3) a list of foreign persons that employ North Korean
laborers.''.
(2) Additional determinations; reports.--With respect to any
country identified in section 302(b)(2) of the North Korea
Sanctions and Policy Enhancement Act of 2016 (22 U.S.C.
9241(b)(2)), as amended by paragraph (1), the report required
under section 302(a) of such Act shall--
(A) include a determination whether each person
identified in section 302(b)(3) of such Act (as amended
by paragraph (1)) who is a national or a citizen of
such identified country meets the criteria for
sanctions under--
(i) section 111 of the Trafficking Victims
Protection Act of 2000 (22 U.S.C. 7108)
(relating to the prevention of trafficking in
persons); or
(ii) section 104(a) or 104(b)(1) of the North
Korea Sanctions and Policy Enhancement Act of
2016 (22 U.S.C. 9214(a)), as amended by section
101 of this Act;
(B) be included in the report required under section
110(b) of the Trafficking Victims Protection Act of
2000 (22 U.S.C. 7107(b)) (relating to the annual report
on trafficking in persons); and
(C) be considered in any determination that the
government of such country has made serious and
sustained efforts to eliminate severe forms of
trafficking in persons, as such term is defined for
purposes of the Trafficking Victims Protection Act of
2000.
(b) Sanctions on Foreign Persons That Employ North Korean Labor.--
(1) In general.--Title III of the North Korea Sanctions and
Policy Enhancement Act of 2016 (22 U.S.C. 9241 et seq.) is
amended by inserting after section 302 the following new
sections:
``SEC. 302A. REBUTTABLE PRESUMPTION APPLICABLE TO GOODS MADE WITH NORTH
KOREAN LABOR.
``(a) In General.--Except as provided in subsection (b), any goods,
wares, articles, and merchandise mined, produced, or manufactured
wholly or in part by the labor of North Korean nationals or citizens
shall be deemed to be prohibited under section 307 of the Tariff Act of
1930 (19 U.S.C. 1307) and shall not be entitled to entry at any of the
ports of the United States.
``(b) Exception.--The prohibition described in subsection (a) shall
not apply if the Commissioner of U.S. Customs and Border Protection
finds, by clear and convincing evidence, that the goods, wares,
articles, or merchandise described in such paragraph were not produced
with convict labor, forced labor, or indentured labor under penal
sanctions.
``SEC. 302B. SANCTIONS ON FOREIGN PERSONS EMPLOYING NORTH KOREAN LABOR.
``(a) In General.--Except as provided in subsection (c), the
President shall designate any person identified under section 302(b)(3)
for the imposition of sanctions under subsection (b).
``(b) Imposition of Sanctions.--
``(1) In general.--The President shall impose the sanctions
described in paragraph (2) with respect to any person
designated under subsection (a).
``(2) Sanctions described.--The sanctions described in this
paragraph are sanctions pursuant to the International Emergency
Economic Powers Act (50 U.S.C. 1701 et seq.) to block and
prohibit all transactions in property and interests in property
of a person designated under subsection (a), if such property
and interests in property are in the United States, come within
the United States, or are or come within the possession or
control of a United States person.
``(c) Exception.--
``(1) In general.--A person may not be designated under
subsection (a) if the President certifies to the appropriate
congressional committees that the President has received
reliable assurances from such person that--
``(A) the employment of North Korean laborers does
not result in the direct or indirect transfer of
convertible currency, luxury goods, or other stores of
value to the Government of North Korea;
``(B) all wages and benefits are provided directly to
the laborers, and are held, as applicable, in accounts
within the jurisdiction in which they reside in locally
denominated currency; and
``(C) the laborers are subject to working conditions
consistent with international standards.
``(2) Recertification.--Not later than 180 days after the
date on which the President transmits to the appropriate
congressional committees an initial certification under
paragraph (1), and every 180 days thereafter, the President
shall--
``(A) transmit a recertification stating that the
conditions described in such paragraph continue to be
met; or
``(B) if such recertification cannot be transmitted,
impose the sanctions described in subsection (b)
beginning on the date on which the President determines
that such recertification cannot be transmitted.''.
(2) Clerical amendment.--The table of contents in section
1(b) of the North Korea Sanctions and Policy Enhancement Act of
2016 is amended by inserting after the item relating to section
302 the following new items:
``Sec. 302A. Rebuttable presumption applicable to goods made with North
Korean labor.
``Sec. 302B. Sanctions on foreign persons employing North Korean
labor.''.
SEC. 202. MODIFICATIONS TO SANCTIONS SUSPENSION AND WAIVER AUTHORITIES.
(a) Exemptions, Waivers, and Removals of Designation.--
(1) Exemptions.--Section 208(a) of the North Korea Sanctions
and Policy Enhancement Act of 2016 (22 U.S.C. 9228(a)) is
amended in the matter preceding paragraph (1)--
(A) by inserting ``201A,'' after ``104,''; and
(B) by inserting ``302A, 302B,'' after ``209,''.
(2) Humanitarian waiver.--Section 208(b) of the North Korea
Sanctions and Policy Enhancement Act of 2016 (22 U.S.C.
9228(b)(1)) is amended--
(A) by inserting ``201A,'' after ``104,'' in each
place it appears; and
(B) by inserting ``302A, 302B,'' after ``209(b),'' in
each place it appears.
(3) Waiver.--Section 208(c) of the North Korea Sanctions and
Policy Enhancement Act of 2016 (22 U.S.C. 9228(c)) is amended
in the matter preceding paragraph (1)--
(A) by inserting ``201A,'' after ``104,''; and
(B) by inserting ``302A, 302B,'' after ``209(b),''.
(b) Support for Family Reunification for Korean-Americans.--Section
402(2) of the North Korea Sanctions and Policy Enhancement Act of 2016
(22 U.S.C. 9252(2)) is amended--
(1) in subparagraph (D), by striking ``and'' at the end;
(2) in subparagraph (E), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following new subparagraph:
``(F) planning for unrestricted family reunification
meetings, including for those individuals in the
Korean-American community who maintain family ties with
relatives in North Korea.''.
SEC. 203. REWARD FOR INFORMANTS.
Section 36(b) of the State Department Basic Authorities Act of 1956
(22 U.S.C. 2708(b)), is amended--
(1) in paragraph (9), by striking ``or'' at the end;
(2) in paragraph (10), by striking the period at the end and
inserting a semicolon; and
(3) by adding at the end the following new paragraphs:
``(11) the identification or location of any person who,
while acting at the direction of or under the control of a
foreign government, aids or abets a violation of section 1030
of title 18, United States Code; or
``(12) the disruption of financial mechanisms of any person
who has engaged in the conduct described in sections 104(a) or
104(b)(1) of the North Korea Sanctions and Policy Enhancement
Act of 2016 (22 U.S.C. 2914(a) or (b)(1)).''.
SEC. 204. DETERMINATION ON DESIGNATION OF NORTH KOREA AS A STATE
SPONSOR OF TERRORISM.
(a) Determination.--
(1) In general.--Not later than 90 days after the date of the
enactment of this Act, the Secretary of State shall submit to
the appropriate congressional committees a determination
whether North Korea meets the criteria for designation as a
state sponsor of terrorism.
(2) Form.--The determination required by paragraph (1) shall
be submitted in unclassified form but may include a classified
annex, if appropriate.
(b) State Sponsor of Terrorism Defined.--For purposes of this
section, the term ``state sponsor of terrorism'' means a country the
government of which the Secretary of State has determined, for purposes
of section 6(j) of the Export Administration Act of 1979 (50 U.S.C.
4605(j)) (as in effect pursuant to the International Emergency Economic
Powers Act), section 620A of the Foreign Assistance Act of 1961 (22
U.S.C. 2371), section 40 of the Arms Export Control Act (22 U.S.C.
2780), or any other provision of law, is a government that has
repeatedly provided support for acts of international terrorism.
TITLE III--GENERAL AUTHORITIES
SEC. 301. AUTHORITY TO CONSOLIDATE REPORTS.
Any reports required to be submitted to the appropriate congressional
committees under this Act or any amendment made by this Act that are
subject to deadlines for submission consisting of similar units of time
may be consolidated into a single report that is submitted to
appropriate congressional committees pursuant to the earlier of such
deadlines. The consolidated reports must contain all information
required under this Act or any amendment made by this Act, in addition
to all other elements mandated by previous law.
SEC. 302. RULE OF CONSTRUCTION.
Nothing in this Act shall be construed to limit the authority or
obligation of the President to apply the sanctions described in section
104 of the North Korea Sanctions and Policy Enhancement Act of 2016 (22
U.S.C. 9214), as amended by section 101 of this Act, with regard to
persons who meet the criteria for designation under such section, or in
any other provision of law.
SEC. 303. REGULATORY AUTHORITY.
(a) In General.--The President shall, not later than 180 days after
the date of the enactment of this Act, promulgate regulations as
necessary for the implementation of this Act and the amendments made by
this Act.
(b) Notification to Congress.--Not fewer than 10 days before the
promulgation of a regulation under subsection (a), the President shall
notify and provide to the appropriate congressional committees the
proposed regulation, specifying the provisions of this Act or the
amendments made by this Act that the regulation is implementing.
SEC. 304. LIMITATION ON FUNDS.
No additional funds are authorized to carry out the requirements of
this Act or of the amendments made by this Act. Such requirements shall
be carried out using amounts otherwise authorized.
Summary and Purpose of Legislation
H.R. 1644, the ``Korean Interdiction and Modernization of
Sanctions Act,'' is a response to the urgent threat North Korea
poses to the United States and its allies. The legislation
builds upon the ``North Korea Sanctions and Policy Enhancement
Act'' (P.L. 114-122) to further restrict Pyongyang's access to
revenue which funds the regime's nuclear and missile programs
to protect the national security of the United States.
Experts believe that North Korea is developing an
intercontinental ballistic missile that could strike the United
States with a nuclear warhead. North Korea continues to produce
fissile material for nuclear weapons. Some non-governmental
studies have estimated that North Korea will accumulate enough
nuclear material to build up to 100 warheads over the next few
years. North Korea conducted two nuclear weapons tests and
launched a record 26 ballistic missiles in 2016. These actions
violate multiple U.N. Security Council resolutions.
In response the ``North Korea Sanctions and Policy
Enhancement Act'' was passed and signed into law last Congress.
P.L. 114-122 provides the executive branch with basis to target
North Korea's money laundering and other illicit activities
including arms and narcotics trafficking, and counterfeiting of
U.S. currency. This has helped to restrict the regime's access
to hard currency. The law's passage and signature into law was
followed by two comprehensive U.N. Security Council resolutions
being put into place.
Yet North Korea has worked over the past year to evade
international sanctions with the help of a vast network of
front companies and governments that span the globe. H.R. 1644,
the ``Korean Interdiction and Modernization of Sanctions Act''
works to counter these developments by deterring those who
continue to do business with North Korea and depriving North
Korea of the resources it requires to develop weapons that
threaten the United States. It enhances U.S. sanctions against
North Korea in order to end the regime's misuse of global
shipping to transport illicit materials; its exploitation of
the financial system to launder money; its severe human rights
abuses including the use of forced labor; and other activities
that violate applicable U.N. Security Council resolutions.
Background and Need for Legislation
North Korea's Escalating Threat to the United States
North Korea continues to threaten the United States and its
allies by rapidly developing its nuclear and ballistic missile
program in violation of numerous U.N. Security Council
resolutions. As of January 2017, Kim Jong Un has tested more
missiles than the two previous dictators of North Korea, Kim
Jong Il and Kim Il Sung, combined. North Korea conducted two
nuclear weapons tests and launched a record 26 ballistic
missiles in 2016. It most recently conducted a missile test on
April 4, 2017, its fourth missile test in 2017. North Korea has
tested a nuclear explosive device four other times since 2006.
These actions violate multiple U.N. Security Council
resolutions, pose a direct threat to U.S. allies and U.S.
forces stationed in Northeast Asia and left unchecked, will
soon pose a direct threat to the homeland of the United States.
The North Korean Government publicly acknowledges it
continues to develop nuclear weapons and has stated it is
willing to conduct preemptive strikes against the United States
and its allies as a means of self-defense. The North Korean
Government announcement of a September 9, 2016, nuclear test
claimed that North Korea has ``standardized'' its nuclear
warhead and would continue to advance the quality and quantity
of its ``nuclear force.'' The announcement stated ``the
standardization of the nuclear warhead will enable the DPRK to
produce at will . . . a variety of smaller, lighter and
diversified nuclear warheads of higher strike power.'' In his
2017 New Year's address, North Korean leader Kim Jong Un stated
that North Korea had ``achieved the status of a nuclear power''
and pledged to continue to ``build up our self-defense
capability . . . and the capability for preemptive strike . . .
to defend the peace and security of our state.'' Thae Yong Ho,
a high-ranking North Korean official who defected to Seoul last
year, has publicly stated Kim Jong Un is determined to complete
development of his nuclear weapons program by the end of 2017.
The speed with which North Korea's ballistic missile
program is advancing poses an immediate threat to our national
security. If left unchecked, North Korea will soon be able to
target all 50 States and our Asian allies with a nuclear
warhead. This poses a direct threat to the American people and
has a significant destabilizing effect on the world.
On February 7, 2016, North Korea used a modified version of
the Taepodong-2 ballistic missile to launch a satellite into
space. On August 24, 2016, North Korea successfully tested a
submarine-launched ballistic missile, firing the missile over
300 miles from a submerged submarine. In the wake of these and
other tests of their missile technology, the North Korean
Government announced on January 8, 2017, that it is ready to
test-launch an intercontinental ballistic missile capable of
striking the United States.
Legislative Response
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 weapons of
mass destruction 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 foreign exchange reserves and other assets in China
and Europe.
In September 2005, the Department of the Treasury invoked
the authority of Section 311 of the USA PATRIOT Act of 2001,
(P.L.107-56), and blocked the accounts of Banco Delta Asia, a
small Macau-based bank. According to the Treasury Department,
Banco Delta Asia 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
Asia, 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. Of course, North Korea reneged on its commitments.
Congress passed the ``North Korea Sanctions and Policy
Enhancement Act of 2016'' in an effort to replicate the impact
of Banco Delta Asia-like sanctions. The Act, the only
comprehensive North Korean sanctions bill to be signed into
law, provided the administration with tools to begin seriously
tackling this threat.
It has helped to constrain the regime's access to hard
currency. Since the enactment of the law, the Obama
administration sanctioned North Korean leader Kim Jong Un and
at least 10 other regime officials and five North Korean state-
run entities for human rights abuses against the North Korean
people. This was the first time the United States had
sanctioned Kim Jong Un personally. On March 16, 2016, the
Department of the Treasury formally determined that the
transportation, mining, energy, and financial services
industries in the North Korean economy shall be subject to U.S.
sanctions. Pursuant to a requirement in P.L. 114-122, in June
2016, the Department of the Treasury designated North Korea a
``primary money laundering concern'' under the Patriot Act.
That designation will require U.S. banks to ``implement
additional due diligence measures'' to make sure North Korean
banks don't get access--even through third parties.
Countering North Korea's Evasion of Sanctions
A February 2017 report by the United Nations Panel of
Experts stated that the Government of North Korea is using
``increasingly sophisticated'' techniques to evade existing
sanctions, including through dealings with middlemen and other
countries that are willing to trade in money, arms, and slave
labor that in turn funds the North Korean regime. That report
highlighted evidence of North Korea's ability to manufacture
and trade in sophisticated military technologies using overseas
networks and to mask the identity of ships to gain access to
restricted ports. It noted how ``designated entities and banks
have continued to operate in the sanctioned environment by
using agents who are highly experienced and well trained in
moving money, people and goods . . . across borders.'' House
Committee on Foreign Affairs Report 114-392 documented previous
efforts by North Korea to evade sanctions. This legislation
will provide additional tools to target the North Korean
regime's efforts to evade sanctions.
Specifically, this legislation further restricts North
Korea's access to money and materials for its weapons programs
by significantly expanding existing sanctions against the
regime. It mandates sanctions against any foreign person who
buys certain metals or minerals from the country or provides
certain types of military use fuel or insurance or reinsurance
to vessels sanctioned under a U.N. Security Council resolution
for engaging in illicit trade with North Korea.
The bill also expands the ability to sanction those who
import North Korean coal, iron, or iron ore above the limits
imposed by U.N. Security Council resolutions, buy textiles or
fishing rights from North Korea, facilitate the online business
activities of the regime, or fail to comply with U.N. Security
Council Resolutions targeting the country.
It also provides tools to target those involved in the
export or use of North Korean forced labor, which is both a
significant human rights abuse and another source of hard
currency for the regime.
Targeting Vital North Korean Commodities
Targeting exports of North Korean coal could deprive the
Kim regime of critical hard currency. With China amounting to
90 percent of all trade with North Korea, coal has long been
its top export. Some analysts believe that North Korea's
economy is 35 percent reliant on coal exports. With such a
heavy reliance on one country and commodity, many believed that
China's Ministry of Commerce announcement that China would
suspend all coal trading until the end of 2017 would deal a
significant blow to the North Korean economy. However, it has
been reported that coal trading has continued in Rizao Port, in
Shandong Province. A critical aspect of this legislation
targets this vital North Korean commodity.
Cracking Down on Overseas North Korean Slave Labor
According to United Nations reporting, tens of thousands of
North Koreans are sent to work abroad, earning the regime up to
$2.3 billion in foreign currency annually. Many of these
workers toil in extreme and dangerous conditions and only
receive a small fraction of their wages. Instead, the vast
majority of their earnings are paid directly to Pyongyang,
which uses this source of hard currency to advance development
of its nuclear weapons and intercontinental ballistic missiles.
Building on reporting requirements in the ``North Korea
Sanctions and Policy Enhancement Act of 2016,'' which required
the State Department to report to Congress the list of
countries where North Korean workers are employed, this
legislation prohibits goods produced in whole or part by North
Korean forced labor from entering the United States. It also
sanctions foreign persons that employ North Koreans who are
forced to labor in inhumane conditions and are denied access to
wages and benefits, and will deny Pyongyang a crucial source of
revenue.
North Korea and International Shipping
North Korea continues to violate sanctions against its use
of international shipping to further its weapons programs. This
legislation cracks down on North Korean shipping and port
access that violate existing U.N. Security Council Resolutions.
It prohibits any ships owned by the Government of North Korea
or those owned or operated on behalf of any country not
complying with U.N. Security Council resolutions from operating
in U.S. waters or landing at any U.S. port. It also authorizes
the Department of Homeland Security to conduct enhanced
screening for any cargo originating from ports that enable
North Korea to circumvent the search and seizure of vessels
that violate applicable sanctions.
North Korea and State Sponsor of Terrorism Designation
This legislation requires the Secretary of State to
determine whether North Korea meets the criteria to be
designated as a State Sponsor of Terrorism (SSOT). In 2008 the
Bush administration de-listed North Korea from the SSOT list in
a failed attempt to curb the Kim regimes illegal weapons
program. Since then, Pyongyang has continued to engage in
deeply concerning activity with the public assassination of Kim
Jong Un's brother, Kim Jong Nam, the use of malicious and
sophisticated cyber-attacks, and the intent to ship weapons to
Iran. Undertaking an assessment of North Korea's behavior and,
if warranted, relisting North Korea as a State Sponsor of
Terrorism would open Pyongyang up to an array of sanctions,
including a ban on arms-related exports and sales, controls
over dual-use items, prohibitions on economic assistance, and
imposition of financial restrictions. In addition to sanctions,
this designation would send a message to the international
community that Pyongyang is a pariah state, dissuading entities
from engaging in activity that continues to facilitate North
Korea's illegal weapons program.
Hearings/Briefings
During the present Congress, the committee has continued
its active oversight regarding North Korea policy, including
one Full Committee and one Asia and the Pacific Subcommittee
hearing related to the content of H.R. 1644:
February 7, 2017, Full Committee hearing on ``Countering
the North Korean Threat: New Steps in U.S. Policy'' (Victor
Cha, Ph.D., Senior Adviser and Korea Chair, Center for
Strategic and International Studies; Sue Mi Terry, Ph.D.,
Managing Director, Bower Group Asia; Mr. Anthony Ruggiero,
Senior Fellow, Foundation for Defense of Democracies; The
Honorable Robert L. Galluci, Distinguished Professor in the
Practice of Diplomacy, Walsh School of Foreign Service,
Georgetown University).
March 21, 2017, Subcommittee on Asia and the Pacific
hearing on ``Pressuring North Korea: Evaluating Options'' (Mr.
Bruce Klingner, Senior Research Fellow for Northeast Asia, The
Heritage Foundation; Sung-Yoon Lee, Ph.D., Kim Koo-Korea
Foundation Professor in Korean Studies and Assistant Professor,
The Fletcher School of Law and Diplomacy, Tufts University; Mr.
Anthony Ruggiero, Senior Fellow, Foundation for Defense of
Democracies).
Committee Consideration
On March 29, 2017, the Committee on Foreign Affairs marked
up H.R. 1644 in open session, pursuant to notice. An amendment
in the nature of a substitute (offered by the chairman) and two
amendments to that amendment in the nature of a substitute
(offered by Mr. Yoho and Mr. Connolly) were considered en bloc
with the underlying bill, and were agreed to by voice vote.
Committee Oversight Findings
In compliance with clause 3(c)(1) of Rule XIII of Rules of
the House of Representatives, the committee reports that
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 in the ``Background and Purpose of 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, April 24, 2017.
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. 1644, the Korean
Interdiction and Modernization of Sanctions Act.
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,
Keith Hall.
Enclosure
cc:
Honorable Eliot L. Engel
Ranking Member
H.R. 1644--Korean Interdiction and Modernization of Sanctions Act.
As ordered reported by the House Committee on Foreign
Affairs on March 29, 2017
SUMMARY
H.R. 1644 would require the President to expand existing
sanctions and impose new sanctions against North Korea. The
bill also would authorize the Department of State to provide
rewards for information on violations of certain sanctions.
Finally, the legislation would require preparation of several
reports to the Congress on the implementation of the bill.
CBO estimates that implementing H.R. 1644 would cost $10
million over the 2017-2022 period, assuming appropriation of
the estimated amounts. In addition, enacting the bill would
increase revenues by $8 million and have insignificant effects
on direct spending over the 2017-2027 period. Pay-as-you-go
procedures apply because enacting the legislation would affect
direct spending and revenues.
CBO estimates that enacting the legislation would not
increase net direct spending or on-budget deficits in any of
the four consecutive 10-year periods beginning in 2028.
H.R. 1644 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.
H.R. 1644 contains private-sector mandates, as defined in
UMRA, by imposing requirements related to certain transactions
associated with the new and expanded sanctions against North
Korea. Because of the broad scope of existing U.S. sanctions
against North Korea, CBO expects the number of domestic
entities that would be affected by the incremental requirements
in the bill would be small. Therefore, CBO estimates that the
aggregate cost of the mandates in the bill would fall below the
annual threshold established in UMRA for private-sector
mandates ($156 million in 2017, adjusted annually for
inflation.
ESTIMATED COST TO THE FEDERAL GOVERNMENT
The estimated budgetary effect of H.R. 1644 is shown in the
following table. The costs of this legislation fall within
budget functions 150 (international affairs) and 800 (general
government).
By Fiscal Year, in Millions of Dollars
----------------------------------------------------------------------------------------------------------------
2017 2018 2019 2020 2021 2022 2017-2022
----------------------------------------------------------------------------------------------------------------
INCREASES IN SPENDING SUBJECT TO APPROPRIATION
Estimated Authorization 0 2 2 2 2 2 10
Level
Estimated Outlays 0 2 2 2 2 2 10
INCREASES IN REVENUES\1\
Estimated Revenues 0 * * 1 1 1 3
----------------------------------------------------------------------------------------------------------------
Note: * = less than $500,000.
\1\CBO estimates enacting H.R. 1644 would increase revenues by $8 million and have insignificant effects on
direct spending over the 2017-2027 period.
BASIS OF ESTIMATE
For this estimate, CBO assumes that H.R. 1644 will be
enacted near the start of fiscal year 2018 and that the
estimated amounts will be appropriated near the beginning of
each fiscal year.
Spending Subject to Appropriation
Provisions of H.R. 1644 would increase administrative costs
at the Department of State and the Department of the Treasury.
Based on limited information from the administration and the
costs of implementing similar legislation, CBO estimates that
the departments would require additional appropriations of $2
million a year. In total, and incorporating the effects of
inflation, CBO estimates that implementing those provisions
would cost $10 million over the 2017-2022 period, assuming
appropriation of those estimated amounts.
Section 203 would authorize the Department of State to make
cash awards for information on violations of certain sanctions.
The department currently has a rewards program to deter
transnational organized crime, which uses appropriated funds to
offer cash awards for similar purposes. Based on information
about awards offered under that program, CBO expects that the
department could offer individual awards of up to $1 million to
$2 million under section 203; however, CBO has no basis for
estimating how many or when such amounts might be paid.
Direct Spending and Revenues
CBO expects that revenues from penalties would increase
under provisions of the bill that would expand economic and
trade sanctions, especially those covering certain financial
transactions. Because significant sanctions on activity with
North Korea already exist under current law and are generally
complied with, and because the North Korean economy is
relatively small, CBO expects that enacting the bill would
increase revenues from penalties by a small amount--less than
$500,000 each year in 2018 and 2019 and $1 million a year
starting in 2020. In total, CBO estimates that enacting H.R.
1644 would increase revenues by $8 million over the 2017-2027
period.
In addition, enacting H.R. 1644 would increase both the
number of people who would be denied visas by the Secretary of
State and the number who would be subject to civil or criminal
penalties. Most visa fees are retained by the Department of
State and spent without further appropriation, but some fees
are deposited in the Treasury as revenues. Penalties also are
recorded as revenues and a portion of those penalties can be
spent without further appropriation. However, CBO estimates
that those provisions would affect very few people and thus
have insignificant effects on both revenues and direct
spending.
PAY-AS-YOU-GO CONSIDERATIONS
The Statutory Pay-As-You-Go Act of 2010 establishes budget-
reporting and enforcement procedures for legislation affecting
direct spending or revenues. The net changes in outlays and
revenues that are subject to those pay-as-you-go procedures are
shown in the following table.
CBO Estimate of Pay-As-You-Go Effects for H.R. 1644 as ordered reported
by the House Committee on Foreign Affairs on March 29, 2017
By Fiscal Year, in Millions of Dollars
--------------------------------------------------------------------------------------------------------------------------------------------------------
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2017-2022 2017-2027
--------------------------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE OR DECREASE (-) IN THE DEFICIT
Statutory Pay-As-You-Go Impact 0 0 0 -1 -1 -1 -1 -1 -1 -1 -1 -3 -8
--------------------------------------------------------------------------------------------------------------------------------------------------------
INCREASE IN LONG-TERM DIRECT SPENDING AND DEFICITS
CBO estimates that enacting the legislation would not
increase net direct spending or on-budget deficits in any of
the four consecutive 10-year periods beginning in 2028.
ESTIMATED IMPACT ON STATE, LOCAL, AND TRIBAL GOVERNMENTS
H.R. 1644 contains no intergovernmental mandates as defined
in UMRA and would not affect the budgets of state, local, or
tribal governments.
ESTIMATED IMPACT ON THE PRIVATE SECTOR
H.R. 1644 would impose private-sector mandates, as defined
in UMRA, by prohibiting transactions that lack sufficient
financial controls to ensure that they do not facilitate any of
the new or expanded set of sanctions against North Korea. The
cost of the mandates would be the forgone net income from
complying with the incremental requirements of the bill.
Because of the broad scope of existing U.S. sanctions against
North Korea, the number of domestic entities and the value of
their transactions that would be affected by the bill would
probably be small. For example, according to foreign trade
statistics from the Census Bureau, U.S. exports to North Korea
amounted to about $5 million in 2015. Therefore, CBO expects
that the aggregate cost of mandates in the bill would fall
below the annual threshold established in UMRA for private-
sector mandates ($156 million in 2017, adjusted annually for
inflation).
ESTIMATE PREPARED BY:
Federal Costs: Sunita D'Monte and Matthew Pickford
Revenues: Jacob Fabian
Impact on State, Local, and Tribal Governments: Jon Sperl
Impact on the Private Sector: Logan Smith
ESTIMATE APPROVED BY:
H. Samuel Papenfuss
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 115th Congress, the
committee notes that H.R. 1644 contains no directed rule-making
provisions.
Non-Duplication of Federal Programs
Pursuant to clause 3(c)(5) of House Rule XIII, 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 was
included 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. 1644 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. 1644 does not establish or authorize any new advisory
committees.
Earmark Identification
H.R. 1644 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.
Letters of Jurisdiction
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
----------
Section-by-Section Analysis
Section 1. Short Title.
This Act may be cited as the ``Korean Interdiction and
Modernization of Sanctions Act.''
Section 2. Table of Contents.
This provision includes the table of contents for the
legislation.
Section 3. Definitions.
This provision both amends existing definitions under the
``North Korea Sanctions and Policy Enhancement Act'' to
modernize, update and expand definitions, as well as applying
new definitions for the purposes of this Act.
TITLE I--SANCTIONS TO ENFORCE AND IMPLEMENT UNITED NATIONS SECURITY
COUNCIL SANCTIONS AGAINST NORTH KOREA
Section 101. Modification and expansion of requirements for the
designation of persons.
This section further restricts North Korea's access to
money and materials for its weapons programs by significantly
expanding existing sanctions against the regime. It mandates
sanctions against any foreign person who buys certain metals or
minerals from the country or provides certain types of military
use fuel or insurance or reinsurance to vessels sanctioned
under a U.N. Security Council resolution for engaging in
illicit trade with North Korea.
To deny the Kim regime the hard currency it needs to fund
its weapons programs, this section expands the ability to
sanction those who import North Korean coal, iron, or iron ore
above the limits imposed by United Nations Security Council
resolutions, buy textiles or fishing rights from North Korea,
facilitate the online business activities of the regime, or
fail to comply with United Nations Security Council Resolutions
targeting the country.
It also provides tools to target those involved in the
export or use of North Korean forced labor, which is both a
significant human rights abuse and another source of hard
currency for the regime. To improve the North Korean people's
access to food, it includes similar sanctions that can be used
against those who buy food or agricultural products from the
country.
Section 102. Prohibition on indirect correspondent accounts.
A recent report by international investigators found that
North Korea has used concealment to continue its access to the
international financial system, including the ability to
``transact through top global financial centers.'' This section
ensures that U.S. financial institutions have terminated the
correspondent accounts they use to do business with foreign
financial institutions if that account is being used to provide
financial services to the North Korean Government or any of the
companies and banks that have been found to enable the regime.
To completely cut the Kim regime out of the U.S financial
system, this section also prohibits North Korea from conducting
any transactions using U.S. dollars. This includes ``U-turn''
transactions, where funds are briefly transferred into dollars
while being exchanged between North Korean won and another
foreign currency. This will further restrict the regime's
ability to do business abroad by targeting its use of the U.S.
dollar as an intermediary when transferring funds between two
foreign currencies.
Section 103. Limitations on foreign assistance to noncompliant
governments.
This section amends existing law to make clear that foreign
governments that buy or sell North Korea conventional weapons--
a serious and continuing problem--are prohibited from receiving
certain types of U.S. foreign assistance. It includes a
reporting requirement to strengthen congressional oversight of
this prohibition.
Section 104. Amendments to enhance inspection authorities.
North Korea continues to trade banned goods, utilizing
evasion techniques that are ``increasing in scale, scope and
sophistication.'' One recent ship interdiction seized the
largest cache of ammunition in the history of North Korean
sanctions. This section requires a report to Congress detailing
foreign countries whose seaports and airports fail to inspect
or seize the cargo of North Korean ships or aircraft, as
required by United Nations Security Council resolutions. The
Secretary of Homeland Security is authorized to implement
enhanced screening of cargo bound for the United States that
has transited one of these identified, failing seaports or
airports.
Section 105. Enforcing compliance with United Nations shipping
sanctions against North Korea.
This section prohibits any ships owned by the Government of
North Korea or owned or operated on behalf of any country not
complying with U.N. Security Council resolutions from operating
in United States waters or landing at any U.S. port.
Section 106. Report on nuclear program cooperation between North Korea
and Iran.
North Korea and Iran have cooperated in developing nuclear
weapons, ballistic missiles, and conventional arms. This
section requires a report to Congress detailing that
cooperation and potential consequences.
Section 107. Report on implementation of United Nations Security
Council resolutions by other governments.
This provision requires a report to Congress on foreign
governments' compliance with and implementation of U.N.
Security Council resolutions on North Korea. A recent
investigation by North Korea experts found that implementation
of these U.N. resolutions remains ``insufficient and highly
inconsistent.''
Section 108. Briefing on measures to deny specialized financial
messaging services to designated North Korean financial
institutions.
This section requires a briefing to Congress on entities
that provide specialized financial messaging services to North
Korean banks designated under U.N. Security Council
resolutions. As banks use these services to conduct
international transactions, this will help identify North
Korean banks that remain connected to the international
financial system.
TITLE II--SANCTIONS WITH RESPECT TO HUMAN RIGHTS ABUSES BY THE
GOVERNMENT OF NORTH KOREA
Section 201. Sanctions for forced labor and slavery overseas of North
Koreans.
This section prohibits goods produced in whole or part by
North Korean forced labor from entering the United States. It
also sanctions foreign persons that employ North Koreans who
are forced to labor in inhumane conditions and are denied
access to wages and benefits. Exporting forced labor to foreign
countries is estimated to earn the regime billions of dollars
of hard currency each year and represents a significant human
rights violation.
Section 202. Modifications to sanctions suspension authorities.
This section ensures the delivery of potential humanitarian
aid would not be adversely impacted. It also allows Korean-
Americans to plan reunion meetings with relatives in North
Korea.
Section 203. Reward for informants.
This section encourages whistleblowers to report violations
of financial sanctions on North Korea by allowing the State
Department to offer cash rewards for such information under the
Department's existing rewards program.
Section 204. Report on designation of North Korea as a state sponsor of
terrorism.
This section requires the administration to determine
within 90 days whether the Government of North Korea should be
re-designated as a State Sponsor of Terrorism. This
determination will take into account widespread reports the
North Korean Government has carried out assassinations,
kidnappings, and other terrorist acts outside of its own
borders, including the recent assassination in Malaysia of Kim
Jong Un's exiled half-brother using a banned chemical substance
TITLE III--GENERAL AUTHORITIES
Section 301. Authority to consolidate reports.
This provision allows for the consolidation of reports
consisting of similar units of time into a single report.
Section 302. Rule of construction.
This provision clarifies that this Act shall not limit the
authority of the President to apply additional sanctions under
``North Korea Sanctions and Policy Enhancement Act of 2016.''
Section 303. Regulatory authority.
This provision requires that the President promulgate
regulations to implement this Act not later than 180 days after
passage.
Section 304. Limitation on funds.
This provision states that no additional funds are
authorized to carry out the requirements of this Act.
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, and existing law in which no
change is proposed is shown in roman):
NORTH KOREA SANCTIONS AND POLICY ENHANCEMENT ACT OF 2016
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``North
Korea Sanctions and Policy Enhancement Act of 2016''.
(b) Table of Contents.--The table of contents for this Act
is as follows:
* * * * * * *
TITLE II--SANCTIONS AGAINST NORTH KOREAN PROLIFERATION, HUMAN RIGHTS
ABUSES, AND ILLICIT ACTIVITIES
* * * * * * *
Sec. 201A. Prohibition on indirect correspondent accounts.
* * * * * * *
TITLE III--PROMOTION OF HUMAN RIGHTS
* * * * * * *
Sec. 302A. Rebuttable presumption applicable to goods made with North
Korean labor.
Sec. 302B. Sanctions on foreign persons employing North Korean labor.
* * * * * * *
SEC. 3. DEFINITIONS.
In this Act:
(1) Applicable executive order.--The term
``applicable Executive order'' means--
(A) Executive Order 13382 (50 U.S.C. 1701
note; relating to blocking property of weapons
of mass destruction proliferators and their
supporters), Executive Order 13466 (50 U.S.C.
1701 note; relating to continuing certain
restrictions with respect to North Korea and
North Korean nationals), Executive Order 13551
(50 U.S.C. 1701 note; relating to blocking
property of certain persons with respect to
North Korea), Executive Order 13570 (50 U.S.C.
1701 note; relating to prohibiting certain
transactions with respect to North Korea),
Executive Order 13619 (50 U.S.C. 1701 note;
relating to blocking property of persons
threatening the peace, security, or stability
of Burma), Executive Order 13687 (50 U.S.C.
1701 note; relating to imposing additional
sanctions with respect to North Korea), [or
Executive Order 13694] Executive Order 13694
(50 U.S.C. 1701 note; relating to blocking the
property of certain persons engaging in
significant malicious cyber-enabled
activities), or Executive Order 13722 (50
U.S.C. 1701 note; relating to blocking the
property of the Government of North Korea and
the Workers' Party of Korea, and Prohibiting
Certain Transactions With Respect to North
Korea), to the extent that such Executive
order--
(i) authorizes the imposition of
sanctions on persons for conduct with
respect to North Korea;
(ii) prohibits transactions or
activities involving the Government of
North Korea; or
(iii) otherwise imposes sanctions
with respect to North Korea; and
(B) any Executive order adopted on or after
the date of the enactment of this Act, to the
extent that such Executive order--
(i) authorizes the imposition of
sanctions on persons for conduct with
respect to North Korea;
(ii) prohibits transactions or
activities involving the Government of
North Korea; or
(iii) otherwise imposes sanctions
with respect to 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)] 2094
(2013), 2270 (2016), or 2321 (2016); and
(B) any United Nations Security Council
resolution adopted on or after the date of the
enactment of this Act that--
(i) authorizes the imposition of
sanctions on persons for conduct with
respect to North Korea;
(ii) prohibits transactions or
activities involving the Government of
North Korea; or
(iii) otherwise imposes sanctions
with respect to North Korea.
(3) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Foreign Relations and
the Committee on Banking, Housing, and Urban
Affairs of the Senate; and
(B) the Committee on Foreign Affairs, the
Committee on Financial Services, and the
Committee on Ways and Means of the House of
Representatives.
(4) Designated person.--The term ``designated
person'' means a person designated under subsection (a)
or (b) of section 104 for purposes of applying 1 or
more of the sanctions described in title I or II with
respect to the person.
(5) Foreign person.--The term ``foreign person''
means--
(A) an individual who is not a United
States citizen or an alien lawfully admitted
for permanent residence to the United States;
or
(B) an entity that is not a United States
person.
[(5)] (6) Government of north korea.--The term
``Government of North Korea'' means the Government of
North Korea and its agencies, instrumentalities, and
controlled entities.
[(6)] (7) Humanitarian assistance.--The term
``humanitarian assistance'' means assistance to meet
humanitarian needs, including needs for food, medicine,
medical supplies, clothing, and shelter.
[(7)] (8) Intelligence community.--The term
``intelligence community'' has the meaning given such
term in section 3(4) of the National Security Act of
1947 (50 U.S.C. 3003(4)).
[(8)] (9) Luxury goods.--The term ``luxury
goods''--
(A) has the meaning given such term in
section 746.4(b)(1) of title 15, Code of
Federal Regulations; [and]
(B) includes the items listed in Supplement
No. 1 to part 746 of such title, and any
similar items[.]; and
(C) also includes any items so designated
under an applicable United Nations Security
Council resolution.
[(9)] (10) Monetary instruments.--The term
``monetary instruments'' has the meaning given such
term in section 5312(a) of title 31, United States
Code.
[(10)] (11) North korea.--The term ``North Korea''
means the Democratic People's Republic of Korea.
[(11)] (12) North korean financial institution.--
The term ``North Korean financial institution'' means
any financial institution that--
(A) is organized under the laws of North
Korea or any jurisdiction within North Korea
(including a foreign branch of such an
institution);
(B) is located in North Korea, except for a
financial institution that is excluded by the
President in accordance with section 208(c);
(C) is owned or controlled by the
Government of North Korea, regardless of
location; or
(D) is owned or controlled by a financial
institution described in subparagraph (A), (B),
or (C), regardless of location.
(13) North korean person.--The term ``North Korean
person'' means--
(A) a North Korean citizen or national; or
(B) an entity owned or controlled by the
Government of North Korea or by a North Korean
citizen or national.
[(12)] (14) Significant activities undermining
cybersecurity.--The term ``significant activities
undermining cybersecurity'' includes--
(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; and
(D) such other significant activities
described in regulations promulgated to
implement section 104.
[(13)] (15) South korea.--The term ``South Korea''
means the Republic of Korea.
[(14)] (16) United states person.--The term
``United States person'' means--
(A) a United States citizen or an alien
lawfully admitted for permanent residence to
the United States; or
(B) an entity organized under the laws of
the United States or of any jurisdiction within
the United States, including a foreign branch
of such an entity.
TITLE I--INVESTIGATIONS, PROHIBITED CONDUCT, AND PENALTIES
* * * * * * *
SEC. 104. DESIGNATION OF PERSONS.
(a) Mandatory Designations.--Except as provided in section
208, the President shall designate under this subsection any
person that the President determines--
(1) knowingly, directly or indirectly, imports,
exports, or reexports to, into, or from North Korea any
goods, services, or technology controlled for export by
the United States because of the use of such goods,
services, or technology for weapons of mass destruction
or delivery systems for such weapons and materially
contributes to the use, development, production,
possession, or acquisition by any person of a nuclear,
radiological, chemical, or biological weapon or any
device or system designed in whole or in part to
deliver such a weapon;
(2) knowingly, directly or indirectly, provides
training, advice, or other services or assistance, or
engages in significant financial transactions, relating
to the manufacture, maintenance, or use of any such
weapon, device, or system to be imported, exported, or
reexported to, into, or from North Korea;
(3) knowingly, directly or indirectly, imports,
exports, or reexports luxury goods to or into North
Korea;
(4) knowingly engages in, is responsible for, or
facilitates censorship by the Government of North
Korea;
(5) knowingly engages in, is responsible for, or
facilitates serious human rights abuses by the
Government of North Korea;
(6) knowingly, directly or indirectly, engages in
money laundering, the counterfeiting of goods or
currency, bulk cash smuggling, or narcotics trafficking
that supports the Government of North Korea or any
senior official or person acting for or on behalf of
that Government;
(7) knowingly engages in significant activities
undermining cybersecurity through the use of computer
networks or systems against foreign persons,
governments, or other entities on behalf of the
Government of North Korea;
(8) knowingly, directly or indirectly, sells,
supplies, or transfers to or from the Government of
North Korea or any person acting for or on behalf of
that Government, a significant amount of precious
metal, graphite, raw or semi-finished metals or
aluminum, steel, coal, or software, for use by or in
industrial processes directly related to weapons of
mass destruction and delivery systems for such weapons,
other proliferation activities, the Korean Workers'
Party, armed forces, internal security, or intelligence
activities, or the operation and maintenance of
political prison camps or forced labor camps, including
outside of North Korea;
(9) knowingly, directly or indirectly, imports,
exports, or reexports to, into, or from North Korea any
arms or related materiel[; or] or any defense article
or defense service (as such terms are defined in
section 47 of the Arms Export Control Act (22 U.S.C.
2794));
(10) knowingly, directly or indirectly, purchases
or otherwise acquires from North Korea any significant
amounts of gold, titanium ore, vanadium ore, copper,
silver, nickel, zinc, or rare earth minerals;
(11) knowingly, directly or indirectly, sells or
transfers to North Korea any significant amounts of
rocket, aviation, or jet fuel (except for use by a
civilian passenger aircraft outside North Korea,
exclusively for consumption during its flight to North
Korea or its return flight);
(12) knowingly, directly or indirectly, provides
fuel, supplies, or bunkering services to, or
facilitates a significant transaction or transactions
to operate or maintain, a vessel or aircraft that is
designated under an applicable Executive order or an
applicable United Nations Security Council resolution,
or that is owned or controlled by a person designated
under an applicable Executive order or applicable
United Nations Security Council resolution;
(13) knowingly, directly or indirectly, insures,
registers, facilitates the registration of, or
maintains insurance or a registration for, a vessel
owned or controlled by the Government of North Korea,
except as specifically approved by the United Nations
Security Council;
(14) knowingly, directly or indirectly, maintains a
correspondent account (as defined in section
201A(d)(1)) with any North Korean financial
institution, except as specifically approved by the
United Nations Security Council; or
[(10)] (15) knowingly attempts to engage in any of
the conduct described in paragraphs (1) through [(9)]
(14).
(b) Additional Discretionary Designations.--
(1) Prohibited conduct described.--Except as
provided in section 208, the President may designate
under this subsection any person that the President
determines--
(A) knowingly engages in, contributes to,
assists, sponsors, or provides financial,
material or technological support for, or goods
and services in support of, any person
designated [pursuant to an applicable United
Nations Security Council resolution;] pursuant
to--
(i) an applicable United Nations
Security Council resolution;
(ii) any regulation promulgated
under section 404; or
(iii) any applicable Executive
order;
(B) knowingly contributed to--
(i) the bribery of an official of
the Government of North Korea or any
person acting for on behalf of that
official;
(ii) the misappropriation, theft,
or embezzlement of public funds by, or
for the benefit of, an official of the
Government of North Korea or any person
acting for or on behalf of that
official; or
(iii) the use of any proceeds of
any activity described in clause (i) or
(ii); [or]
(C) knowingly and materially assisted,
sponsored, or provided significant financial,
material, or technological support for, or
goods or services to or in support of, the
activities described in subparagraph (A) or
(B)[.];
(D) knowingly, directly or indirectly,
purchased or otherwise acquired from the
Government of North Korea significant
quantities of coal, iron, or iron ore, in
excess of the limitations provided in
applicable United Nations Security Council
resolutions;
(E) knowingly, directly or indirectly,
purchased or otherwise acquired significant
types or amounts of textiles from the
Government of North Korea;
(F) knowingly facilitated any transfer of
funds or property of the Government of North
Korea that materially contributes to any
violation of an applicable United National
Security Council resolution;
(G) knowingly, directly or indirectly,
facilitated a significant transfer to or from
the Government of North Korea of bulk cash,
precious metals, gemstones, or other stores of
value not described under subsection (a)(10);
(H) knowingly, directly or indirectly,
sold, transferred, or otherwise provided
significant amounts of crude oil, condensates,
refined petroleum, other types of petroleum or
petroleum byproducts, liquified natural gas, or
other natural gas resources to the Government
of North Korea (except for heavy fuel oil,
gasoline, or diesel fuel for humanitarian use
or as excepted under subsection (a)(11));
(I) knowingly, directly or indirectly,
engaged in, facilitated, or was responsible for
the online commercial activities of the
Government of North Korea, including online
gambling;
(J) knowingly, directly or indirectly,
purchased or otherwise acquired fishing rights
from the Government of North Korea;
(K) knowingly, directly or indirectly,
provided significant telephonic, telegraphic,
telecommunications or other data services, in
whole or in part, into or out of North Korea,
in excess of services needed for humanitarian
or diplomatic purposes (other than services
that are excepted under section 203(b)(1) of
the International Emergency Economic Powers Act
(50 U.S.C. 1702(b)(1)));
(L) knowingly, directly or indirectly,
purchased or otherwise acquired significant
types or amounts of food or agricultural
products from the Government of North Korea;
(M) knowingly, directly or indirectly,
engaged in, facilitated, or was responsible for
the exportation of workers from North Korea in
a manner intended to generate significant
revenue, directly or indirectly, for use by the
Government of North Korea or by the Workers'
Party of Korea;
(N) knowingly conducted a significant
transaction or transactions in North Korea's
transportation, mining, energy, or financial
services industries; or
(O) except as specifically approved by the
United Nations Security Council, and other than
through a correspondent account as described in
subsection (a)(14), knowingly facilitated the
operation of any branch, subsidiary, or office
of a North Korean financial institution.
(2) Effect of designation.--With respect to any
person designated under this subsection, the President
may--
(A) apply the sanctions described in
section 204, 205(c), or 206 to the person to
the same extent and in the same manner as if
the person were designated under subsection
(a);
(B) apply any applicable special measures
described in section 5318A of title 31, United
States Code;
(C) prohibit any transactions in foreign
exchange--
(i) that are subject to the
jurisdiction of the United States; and
(ii) in which such person has any
interest; and
(D) 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--
(i) are subject to the jurisdiction
of the United States; and
(ii) involve any interest of such
person.
(c) Asset Blocking.--[The President]
(1) Mandatory asset blocking._The President shall
exercise all of the powers granted to the President
under the International Emergency Economic Powers Act
(50 U.S.C. 1701 et seq.) to the extent necessary to
block and prohibit all transactions in property and
interests in property [of a designated person] of a
person designated under subsection (a), the Government
of North Korea, or the Workers' Party of Korea, if such
property and interests in property are in the United
States, come within the United States, or are or come
within the possession or control of a United States
person.
(2) Discretionary asset blocking.--The President
may also exercise such powers, in the same manner and
to the same extent described in paragraph (1), with
respect to a person designated under subsection (b).
(d) Application to Subsidiaries and Agents.--The
designation of a person under subsection (a) or (b) and the
blocking of property and interests in property under subsection
(c) shall apply with respect to a person who is determined to
be owned or controlled by, or to have acted or purported to
have acted for or on behalf of, directly or indirectly, any
person whose property and interests in property are blocked
pursuant to this section.
(e) Transaction Licensing.--The President shall deny or
revoke any license for any transaction that the President
determines to lack sufficient financial controls to ensure that
such transaction will not facilitate any activity described in
subsection (a) or (b).
(f) Penalties.--The penalties provided for in subsections
(b) and (c) of section 206 of the International Emergency
Economic Powers Act (50 U.S.C. 1705) shall apply to any person
who violates, attempts to violate, conspires to violate, or
causes a violation of any prohibition of this section, or an
order or regulation prescribed under this section, to the same
extent that such penalties apply to a person that commits an
unlawful act described in section 206(a) of such Act (50 U.S.C.
1705(a)).
* * * * * * *
TITLE II--SANCTIONS AGAINST NORTH KOREAN PROLIFERATION, HUMAN RIGHTS
ABUSES, AND ILLICIT ACTIVITIES
* * * * * * *
SEC. 201A. PROHIBITION ON INDIRECT CORRESPONDENT ACCOUNTS.
(a) In General.--Except as provided in subsection (b), if a
United States financial institution has or obtains knowledge
that a correspondent account established, maintained,
administered, or managed by that institution for a foreign
financial institution is being used by the foreign financial
institution to provide financial services indirectly to any
person, foreign government, or financial institution designated
under section 104, the United States financial institution
shall ensure that such correspondent account is no longer used
to provide such services.
(b) Exception.--A United States financial institution is
authorized to process transfers of funds to or from North
Korea, or for the direct or indirect benefit of any person,
foreign government, or financial institution that is designated
under section 104, only if the transfer--
(1) arises from, and is ordinarily incident and
necessary to give effect to, an underlying transaction
that has been authorized by a specific or general
license issued by the Secretary of the Treasury; and
(2) does not involve debiting or crediting a North
Korean account.
(c) Definitions.--In this section:
(1) Correspondent account.--The term
``correspondent account'' has the meaning given that
term in section 5318A of title 31, United States Code.
(2) United states financial institution.--The term
``United States financial institution'' means has the
meaning given that term in section 510.310 of title 31,
Code of Federal Regulations, as in effect on the date
of the enactment of this section.
(3) Foreign financial institution.--The term
``foreign financial institution'' has the meaning given
that term in section 1010.605 of title 31, Code of
Federal Regulations, as in effect on the date of the
enactment of this section.
* * * * * * *
SEC. 203. PROLIFERATION PREVENTION SANCTIONS.
(a) Export of Certain Goods or Technology.--A validated
license shall be required for the export to North Korea of any
goods or technology otherwise covered under section 6(j) of the
Export Administration Act of 1979 (50 U.S.C. 4605(j)). No
defense exports may be approved for the Government of North
Korea.
(b) [Transactions in Lethal Military Equipment]
Transactions in Defense Articles or Defense Services.--
(1) In General.--The President shall withhold
assistance under the Foreign Assistance Act of 1961 (22
U.S.C. 2151 et seq.) to the government of any country
[that provides lethal military equipment to the
Government of North Korea] that provides to or receives
from the Government of North Korea a defense article or
defense service, as such terms are defined in section
47 of the Arms Export Control Act (22 U.S.C. 2794).
(2) Applicability.--The prohibition under paragraph
(1) with respect to a government shall terminate on the
date that is [1 year] 2 years after the date on which
the prohibition under paragraph (1) is applied to that
government.
(c) Waiver.--Notwithstanding any other provision of law,
the Secretary of State may waive the prohibitions under this
section with respect to a country if the Secretary--
(1) determines that such waiver is in the national
interest of the United States; and
(2) submits a written report to the appropriate
congressional committees that describes--
(A) the steps that the relevant agencies
are taking to curtail the trade described in
subsection (b)(1); and
(B) why such waiver is in the national
interest of the United States.
(d) Exception.--The prohibitions under this section shall
not apply to the provision of assistance for human rights,
democracy, rule of law, [or emergency] maternal and child
health, disease prevention and response, or humanitarian
purposes.
(e) Report on Arms Trafficking Involving North Korea.--
(1) In general.--Not later than 180 days after the
date of the enactment of this subsection, and every 180
days thereafter for 5 years, the Secretary of State
shall submit to the appropriate congressional
committees a report that specifically describes the
compliance of foreign countries and other foreign
jurisdictions with the requirement to curtail the trade
described in subsection (b)(1).
(2) Form.--The report required under paragraph (1)
shall be submitted in unclassified form but may contain
a classified annex.
* * * * * * *
[SEC. 205. ENHANCED INSPECTION AUTHORITIES.
[(a) Report Required.--Not later than 180 days after the
date of the enactment of this Act, and annually thereafter, the
President shall submit to the appropriate congressional
committees a report that identifies foreign ports and airports
at which inspections of ships, aircraft, and conveyances
originating in North Korea, carrying North Korean property, or
operated by the Government of North Korea are not sufficient to
effectively prevent the facilitation of any of the activities
described in section 104(a).
[(b) Enhanced Customs Inspection Requirements.--The
Secretary of Homeland Security may require enhanced inspections
of any goods entering the United States that have been
transported through a port or airport identified by the
President under subsection (a).
[(c) Seizure and Forfeiture.--A vessel, aircraft, or
conveyance used to facilitate any of the activities described
in section 104(a) under the jurisdiction of the United States
may be seized and forfeited under--
[(1) chapter 46 of title 18, United States Code; or
[(2) title V of the Tariff Act of 1930 (19 U.S.C.
1501 et seq.).]
SEC. 205. ENHANCED INSPECTION AUTHORITIES.
(a) Report Required.--
(1) In general.--Not later than 180 days after the
date of the enactment of this section, and annually
thereafter for 5 years, the President shall submit to
the appropriate congressional committees a report--
(A) identifying the operators of foreign
sea ports and airports that have knowingly--
(i) failed to implement or enforce
regulations to inspect ships, aircraft,
cargo, or conveyances in transit to or
from North Korea, as required by
applicable United Nations Security
Council resolutions;
(ii) facilitated the transfer,
transshipment, or conveyance of
significant types or quantities of
cargo, vessels, or aircraft owned or
controlled by persons designated under
applicable United Nations Security
Council resolutions; or
(iii) facilitated any of the
activities described in section 104(a);
(B) describing the extent to which the
requirements of applicable United Nations
Security Council resolutions to de-register any
vessel owned, controlled, or operated by the
Government of North Korea have been implemented
by other foreign countries;
(C) describing the compliance of the
Islamic Republic of Iran with the sanctions
mandated in applicable United Nations Security
Council resolutions;
(D) identifying vessels, aircraft, and
conveyances owned or controlled by the
Reconnaissance General Bureau of the Workers'
Party of Korea; and
(E) describing the diplomatic and
enforcement efforts by the President to secure
the full implementation of the applicable
United Nations Security Council resolutions, as
described in subparagraphs (A) through (C).
(2) Form.--The report required under paragraph (1)
shall be submitted in unclassified form but may contain
a classified annex.
(b) Specific Findings.--Each report required under
subsection (a) shall include specific findings with respect to
the following ports and airports:
(1) The ports of Dandong, Dalian, and any other
port in the People's Republic of China that the
President deems appropriate.
(2) The ports of Abadan, Bandar-e-Abbas, Chabahar,
Bandar-e-Khomeini, Bushehr Port, Asaluyeh Port, Kish,
Kharg Island, Bandar-e-Lenge, and Khorramshahr, and
Tehran Imam Khomeini International Airport, in the
Islamic Republic of Iran.
(3) The ports of Nakhodka, Vanino, and Vladivostok,
in the Russian Federation.
(4) The ports of Latakia, Banias, and Tartous, and
Damascus International Airport, in the Syrian Arab
Republic.
(c) Enhanced Security Targeting Requirements.--
(1) In general.--Except as provided in paragraph
(2), the Secretary of Homeland Security may, using the
Automated Targeting System operated by the National
Targeting Center of U.S. Customs and Border Protection,
require enhanced screening procedures to determine
whether physical inspections are warranted of any cargo
bound for or landed in the United States that--
(A) has been transported through a sea port
or airport the operator of which has been
identified by the President in accordance with
subsection (a)(1) as having repeatedly failed
to comply with applicable United Nations
Security Council resolutions;
(B) is aboard a vessel or aircraft, or
within a conveyance that has, within the last
365 days, entered the territory, waters, or
airspace of North Korea, or landed in any of
the sea ports or airports of North Korea; or
(C) is registered by a country or
jurisdiction whose compliance has been
identified by the President as deficient
pursuant to subsection (a)(2).
(2) Exception for food, medicine, and humanitarian
shipments.--Paragraph (1) shall not apply to any
vessel, aircraft, or conveyance that has entered the
territory, waters, or airspace of North Korea, or
landed in any of the sea ports or airports of North
Korea, exclusively for the purposes described in
section 208(b)(3)(B), or to import food, medicine, or
supplies into North Korea to meet the humanitarian
needs of the North Korean people.
(d) Seizure and Forfeiture.--A vessel, aircraft, or
conveyance used to facilitate any of the activities described
in section 104(a) under the jurisdiction of the United States
may be seized and forfeited under--
(1) chapter 46 of title 18, United States Code; or
(2) part V of title IV of the Tariff Act of 1930
(19 U.S.C. 1581 et seq.).
* * * * * * *
SEC. 208. EXEMPTIONS, WAIVERS, AND REMOVALS OF DESIGNATION.
(a) Exemptions.--The following activities shall be exempt
from sanctions under sections 104, 201A, 206, 209, 302A, 302B,
and 304:
(1) Activities subject to the reporting
requirements under title V of the National Security Act
of 1947 (50 U.S.C. 3091 et seq.), or to any authorized
intelligence activities of the United States.
(2) 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 at Lake Success June 26, 1947, and entered into
force November 21, 1947, or under the Convention on
Consular Relations, done at Vienna April 24, 1963, and
entered into force March 19, 1967, or under other
international agreements.
(3) Any activities incidental to the POW/MIA
accounting mission in North Korea, including activities
by the Defense POW/MIA Accounting Agency and other
governmental or nongovernmental organizations tasked
with identifying or recovering the remains of members
of the United States Armed Forces in North Korea.
(b) Humanitarian Waiver.--
(1) In general.--The President may waive, for
renewable periods of between 30 days and 1 year, the
application of the sanctions authorized under section
104, 201A, 204, 205, 206, 209(b), 302A, 302B, or 304(b)
if the President submits to the appropriate
congressional committees a written determination that
the waiver is necessary for humanitarian assistance or
to carry out the humanitarian purposes set forth
section 4 of the North Korean Human Rights Act of 2004
(22 U.S.C. 7802).
(2) Content of written determination.--A written
determination submitted under paragraph (1) with
respect to a waiver shall include a description of all
notification and accountability controls that have been
employed in order to ensure that the activities covered
by the waiver are humanitarian assistance or are
carried out for the purposes set forth in section 4 of
the North Korean Human Rights Act of 2004 (22 U.S.C.
7802) and do not entail any activities in North Korea
or dealings with the Government of North Korea not
reasonably related to humanitarian assistance or such
purposes.
(3) Clarification of permitted activities under
waiver.--An internationally recognized humanitarian
organization shall not be subject to sanctions under
section 104, 201A, 204, 205, 206, 209(b), 302A, 302B,
or 304(b) for--
(A) engaging in a financial transaction
relating to humanitarian assistance or for
humanitarian purposes pursuant to a waiver
issued under paragraph (1);
(B) transporting goods or services that are
necessary to carry out operations relating to
humanitarian assistance or humanitarian
purposes pursuant to such a waiver; or
(C) having merely incidental contact, in
the course of providing humanitarian assistance
or aid for humanitarian purposes pursuant to
such a waiver, with individuals who are under
the control of a foreign person subject to
sanctions under this Act.
(c) Waiver.--The President may waive, on a case-by-case
basis, for renewable periods of between 30 days and 1 year, the
application of the sanctions authorized under section 104,
201A, 201(c)(2), 204, 205, 206, 209(b), 302A, 302B, or 304(b)
if the President submits to the appropriate congressional
committees a written determination that the waiver--
(1) is important to the national security interests
of the United States; or
(2) will further the enforcement of this Act or is
for an important law enforcement purpose.
(d) Financial Services for Humanitarian and Consular
Activities.--The President may promulgate such regulations,
rules, and policies as may be necessary to facilitate the
provision of financial services by a foreign financial
institution that is not a North Korean financial institution in
support of activities conducted pursuant to an exemption or
waiver under this section.
* * * * * * *
TITLE III--PROMOTION OF HUMAN RIGHTS
* * * * * * *
SEC. 302. STRATEGY TO PROMOTE NORTH KOREAN HUMAN RIGHTS.
(a) In general.--Not later than 180 days after the date of
the enactment of this Act, the Secretary of State, in
coordination with other appropriate Federal departments and
agencies, shall submit to the Committee on Foreign Relations of
the Senate and the Committee on Foreign Affairs of the House of
Representatives a report that details a United States strategy
to promote initiatives to enhance international awareness of
and to address the human rights situation in North Korea.
(b) Information.--The report required under subsection (a)
should include--
(1) a list of countries that forcibly repatriate
refugees from North Korea; [and]
(2) a list of countries where North Korean laborers
work, including countries the governments of which have
formal arrangements with the Government of North Korea
or any person acting for or on behalf of that
Government to employ North Korean workers[.]; and
(3) a list of foreign persons that employ North
Korean laborers.
(c) Strategy.--The report required under subsection (a)
should include--
(1) a plan to enhance bilateral and multilateral
outreach, including sustained engagement with the
governments of partners and allies with overseas posts
to routinely demarche or brief those governments on
North Korea human rights issues, including forced
labor, trafficking, and repatriation of citizens of
North Korea;
(2) public affairs and public diplomacy campaigns,
including options to work with news organizations and
media outlets to publish opinion pieces and secure
public speaking opportunities for United States
Government officials on issues related to the human
rights situation in North Korea, including forced
labor, trafficking, and repatriation of citizens of
North Korea; and
(3) opportunities to coordinate and collaborate
with appropriate nongovernmental organizations and
private sector entities to raise awareness and provide
assistance to North Korean defectors throughout the
world.
SEC. 302A. REBUTTABLE PRESUMPTION APPLICABLE TO GOODS MADE WITH NORTH
KOREAN LABOR.
(a) In General.--Except as provided in subsection (b), any
goods, wares, articles, and merchandise mined, produced, or
manufactured wholly or in part by the labor of North Korean
nationals or citizens shall be deemed to be prohibited under
section 307 of the Tariff Act of 1930 (19 U.S.C. 1307) and
shall not be entitled to entry at any of the ports of the
United States.
(b) Exception.--The prohibition described in subsection (a)
shall not apply if the Commissioner of U.S. Customs and Border
Protection finds, by clear and convincing evidence, that the
goods, wares, articles, or merchandise described in such
paragraph were not produced with convict labor, forced labor,
or indentured labor under penal sanctions.
SEC. 302B. SANCTIONS ON FOREIGN PERSONS EMPLOYING NORTH KOREAN LABOR.
(a) In General.--Except as provided in subsection (c), the
President shall designate any person identified under section
302(b)(3) for the imposition of sanctions under subsection (b).
(b) Imposition of Sanctions.--
(1) In general.--The President shall impose the
sanctions described in paragraph (2) with respect to
any person designated under subsection (a).
(2) Sanctions described.--The sanctions described
in this paragraph are sanctions pursuant to the
International Emergency Economic Powers Act (50 U.S.C.
1701 et seq.) to block and prohibit all transactions in
property and interests in property of a person
designated under subsection (a), if such property and
interests in property are in the United States, come
within the United States, or are or come within the
possession or control of a United States person.
(c) Exception.--
(1) In general.--A person may not be designated
under subsection (a) if the President certifies to the
appropriate congressional committees that the President
has received reliable assurances from such person
that--
(A) the employment of North Korean laborers
does not result in the direct or indirect
transfer of convertible currency, luxury goods,
or other stores of value to the Government of
North Korea;
(B) all wages and benefits are provided
directly to the laborers, and are held, as
applicable, in accounts within the jurisdiction
in which they reside in locally denominated
currency; and
(C) the laborers are subject to working
conditions consistent with international
standards.
(2) Recertification.--Not later than 180 days after
the date on which the President transmits to the
appropriate congressional committees an initial
certification under paragraph (1), and every 180 days
thereafter, the President shall--
(A) transmit a recertification stating that
the conditions described in such paragraph
continue to be met; or
(B) if such recertification cannot be
transmitted, impose the sanctions described in
subsection (b) beginning on the date on which
the President determines that such
recertification cannot be transmitted.
* * * * * * *
TITLE IV--GENERAL AUTHORITIES
* * * * * * *
SEC. 402. TERMINATION OF SANCTIONS AND OTHER MEASURES.
Any sanction or other measure required under title I, II,
or III (or any amendment made by such titles) shall terminate
on the date on which the President determines and certifies to
the appropriate congressional committees that the Government of
North Korea has--
(1) met the requirements set forth in section 401;
and
(2) made significant progress toward--
(A) completely, verifiably, and
irreversibly dismantling all of its nuclear,
chemical, biological, and radiological weapons
programs, including all programs for the
development of systems designed in whole or in
part for the delivery of such weapons;
(B) releasing all political prisoners,
including the citizens of North Korea detained
in North Korea's political prison camps;
(C) ceasing its censorship of peaceful
political activity;
(D) establishing an open, transparent, and
representative society; [and]
(E) fully accounting for and repatriating
United States citizens (including deceased
United States citizens)--
(i) abducted or unlawfully held
captive by the Government of North
Korea; or
(ii) detained in violation of the
Agreement Concerning a Military
Armistice in Korea, signed at Panmunjom
July 27, 1953 (commonly referred to as
the ``Korean War Armistice
Agreement'')[.]; and
(F) planning for unrestricted family
reunification meetings, including for those
individuals in the Korean-American community
who maintain family ties with relatives in
North Korea.
* * * * * * *
----------
PORTS AND WATERWAYS SAFETY ACT
* * * * * * *
Sec. 4. Vessel Operating Requirements.
(a) In General.--Subject to the requirements of section 5,
the Secretary--
(1) in any port or place under the jurisdiction of
the United States, in the navigable waters of the
United States, or in any area covered by an
international agreement negotiated pursuant to section
11, may construct, operate, maintain, improve, or
expand vessel traffic services, consisting of measures
for controlling or supervising vessel traffic or for
protecting navigation and the marine environment and
may include, but need not be limited to one or more of
the following: reporting and operating requirements,
surveillance and communications systems, routing
systems, and fairways;
(2) shall require appropriate vessels which operate
in an area of a vessel traffic service to utilize or
comply with that service;
(3) may require vessels to install and use
specified navigation equipment, communications
equipment, electronic relative motion analyzer
equipment, or any electronic or other device necessary
to comply with a vessel traffic service or which is
necessary in the interests of vessel safety: Provided,
That the Secretary shall not require fishing vessels
under 300 gross tons as measured under section 14502 of
title 46, United States Code, or an alternate tonnage
measured under section 14302 of that title as
prescribed by the Secretary under section 14104 of that
title or recreational vessels 65 feet or less to
possess or use the equipment or devices required by
this subsection solely under the authority of this Act;
(4) may control vessel traffic in areas subject to
the jurisdiction of the United States which the
Secretary determines to be hazardous, or under
conditions of reduced visibility, adverse weather,
vessel congestion, or other hazardous circumstances
by--
(A) specifying times of entry, movement, or
departure;
(B) establishing vessel traffic routing
schemes;
(C) establishing vessel size, speed, draft
limitations and vessel operating conditions;
and
(D) restricting operation, in any hazardous
area or under hazardous conditions, to vessels
which have particular operating characteristics
or capabilities which he considers necessary
for safe operation under the circumstances;
(5) may require the receipt of prearrival messages
from any vessel, destined for a port or place subject
to the jurisdiction of the United States, in sufficient
time to permit advance vessel traffic planning prior to
port entry, which shall include any information which
is not already a matter of record and which the
Secretary determines necessary for the control of the
vessel and the safety of the port or the marine
environment; and
(6) may prohibit the use on vessels of electronic
or other devices that interfere with communication and
navigation equipment, except that such authority shall
not apply to electronic or other devices certified to
transmit in the maritime services by the Federal
Communications Commission and used within the frequency
bands 157.1875-157.4375 MHz and 161.7875-162.0375 MHz.
(b) Special Powers.--The Secretary may order any vessel, in
a port or place subject to the jurisdiction of the United
States or in the navigable waters of the United States, to
operate or a anchor in a manner he directs if--
(1) he has reasonable cause to believe such vessel
does not comply with any regulation issued under this
Act or any other applicable law or treaty;
(2) he determines that such vessel does not satisfy
the conditions for port entry set forth in section 9 or
16; or
(3) by reason of weather, visibility, sea
conditions, port congestion, other hazardous
circumstances, or the condition of such vessel, he is
satisfied that such directive is justified in the
interest of safety.
(c) Port Access Routes.--(1) In order to provide safe
access routes for the movement of vessel traffic proceeding to
or from ports or places subject to the jurisdiction of the
United States, and subject to the requirements of paragraph (3)
hereof, the Secretary shall designate necessary fairways and
traffic separation schemes for vessels operating in the
territorial sea of the United States and in high seas
approaches, outside the territorial sea, to such ports or
places. Such a designation shall recognize, within the
designated area, the paramount right of navigation over all
other uses.
(2) No designation may be made by the Secretary pursuant to
this subsection, if such a designation, as implemented, would
deprive any person of the effective exercise of a right granted
by a lease or permit executed or issued under other applicable
provisions of law: Provided, That such right has become vested
prior to the time of publication of the notice required by
clause (A) of paragraph (3) hereof: Provided further, That the
determination as to whether the designation would so deprive
any such person shall be made by the Secretary, after
consultation with the responsible official under whose
authority the lease was executed or the permit issued.
(3) Prior to making a designation pursuant to paragraph (1)
hereof, and in accordance with the requirements of section 5,
the Secretary shall--
(A) within six months after date of enactment of
this Act (and may, from time to time thereafter),
undertake a study of the potential traffic density and
the need for safe access routes for vessels in any area
for which fairways or traffic separation schemes are
proposed or which may otherwise be considered and shall
publish notice of such undertaking in the Federal
Register;
(B) in consultation with the Secretary of State,
the Secretary of the Interior, the Secretary of
Commerce, the Secretary of the Army, and the Governors
of affected States, as their responsibilities may
require, take into account all other uses of the area
under consideration (including, as appropriate, the
exploration for, or exploitation of, oil, gas, or other
mineral resources, the construction or operation of
deepwater ports or other structures on or above the
seabed or subsoil of the submerged lands or the Outer
Continental Shelf of the United States, the
establishment or operation of marine or estuarine
sanctuaries, and activities involving recreational or
commercial fishing); and
(C) to the extent practicable, reconcile the need
for safe access routes with the needs of all other
reasonable uses of the area involved.
(4) In carrying out his responsibilities under paragraph
(3), the Secretary shall proceed expeditiously to complete any
study undertaken. Thereafter, he shall promptly issue a notice
of proposed rulemaking for the designation contemplated or
shall have published in the Federal Register a notice that no
designation is contemplated as a result of the study and the
reason for such determination.
(5) In connection with a designation made pursuant to this
subsection, the Secretary--
(A) shall issue reasonable rules and regulations
governing the use of such designated areas, including
the applicability of rules 9 and 10 of the
International Regulations for Preventing Collisions at
Sea, 1972, relating to narrow channels and traffic
separation schemes, respectively, in waters where such
regulations apply;
(B) to the extent that he finds reasonable and
necessary to effectuate the purposes of the
designation, make the use of designated fairways and
traffic separation schemes mandatory for specific types
and sizes of vessels, foreign and domestic, operating
in the territorial sea of the United States and for
specific types and sizes of vessels of the United
States operating on the high seas beyond the
territorial sea of the United States;
(C) may, from time to time, as necessary, adjust
the location or limits of designated fairways or
traffic separation schemes, in order to accommodate the
needs of other uses which cannot be reasonably
accommodated otherwise: Provided, That such an
adjustment will not, in the judgment of the Secretary,
unacceptably adversely affect the purpose for which the
existing designation was made and the need for which
continues; and
(D) shall, through appropriate channels, (i) notify
cognizant international organizations of any
designation, or adjustment thereof, and (ii) take
action to seek the cooperation of foreign States in
making it mandatory for vessels under their control to
use any fairway or traffic separation scheme designated
pursuant to this subsection in any area of the high
seas, to the same extent as required by the Secretary
for vessels of the United States.
(d) Exception.--Except pursuant to international treaty,
convention, or agreement, to which the United States is a
party, this Act shall not apply to any foreign vessel that is
not destined for, or departing from, a port or place subject to
the jurisdiction of the United States and that is in--
(1) innocent passage through the territorial sea of
the United States, or
(2) transit through the navigable waters of the
United States which form a part of an international
strait.
(e) Cooperative Agreements.--(1) The Secretary may enter
into cooperative agreements with public or private agencies,
authorities, associations, institutions, corporations,
organizations, or other persons to carry out the functions
under subsection (a)(1).
(2) A nongovernmental entity may not under this subsection
carry out an inherently governmental function.
(3) As used in this paragraph, the term ``inherently
governmental function'' means any activity that is so
intimately related to the public interest as to mandate
performance by an officer or employee of the Federal
Government, including an activity that requires either the
exercise of discretion in applying the authority of the
Government or the use of judgment in making a decision for the
Government.
* * * * * * *
Sec. 13. Enforcement.
(a) Civil Penalty.--(1) Any person who is found by the
Secretary, after notice and an opportunity for a hearing, to
have violated this Act or a regulation issued hereunder shall
be liable to the United States for a civil penalty, not to
exceed $25,000 for each violation. Each day of a continuing
violation shall constitute a separate violation. The amount of
such civil penalty shall be assessed by the Secretary, or his
designee, by written notice. In determining the amount of such
penalty, the Secretary shall take into account the nature,
circumstances, extent and gravity of the prohibited acts
committed and, with respect to the violator, the degree of
culpability, any history of prior offenses, ability to pay, and
such other matters as justice may require.
(2) The Secretary may compromise, modify, or remit, with or
without conditions, any civil penalty which is subject to
imposition or which has been imposed under this section.
(3) If any person fails to pay an assessment of a civil
penalty after it has become final, the Secretary may refer the
matter to the Attorney General of the United States, for
collection in any appropriate district court of the United
States.
(b) Criminal Penalty.--(1) Any person who willfully and
knowingly violates this Act or any regulation issued hereunder
commits a class D felony.
(2) Any person who, in the willfull and knowing violation
of this Act or of any regulation issued hereunder, uses a
dangerous weapon, or engages in conduct that causes bodily
injury or fear of imminent bodily injury to any officer
authorized to enforce the provisions of this Act or the
regulations issued hereunder, commits a class C felony.
(c) In Rem Liability.--Any vessel subject to the provisions
of this Act, which is used in violation of this Act, or any
regulations issued hereunder, shall be liable in rem for any
civil penalty assessed pursuant to subsection (a) and may be
proceeded against in the United States district court for any
district in which such vessel may be found.
(d) Injunction.--The United States district courts shall
have jurisdiction to restrain violations of this Act or of
regulations issued hereunder, for cause shown.
(e) Denial of Entry.--Except as provided in [section 9]
section 9 or 16, the Secretary may, subject to recognized
principles of international law, deny entry into the navigable
waters of the United States or to any port or place under the
jurisdiction of the United States to any vessel not in
compliance with the provisions of this Act or the regulations
issued hereunder.
(f) Withholding of Clearance.--(1) If any owner, operator,
or individual in charge of a vessel is liable for a penalty or
fine under this section, or if reasonable cause exists to
believe that the owner, operator, or individual in charge may
be subject to a penalty or fine under this section, the
Secretary of the Treasury, upon the request of the Secretary,
shall with respect to such vessel refuse or revoke any
clearance required by section 4197 of the Revised Statutes of
the United States (46 App. U.S.C. 91).
(2) Clearance refused or revoked under this subsection may
be granted upon filing of a bond or other surety satisfactory
to the Secretary.
* * * * * * *
SEC. 16. PROHIBITION ON ENTRY AND OPERATION.
(a) Prohibition.--
(1) In general.--Except as otherwise provided in
this section, no vessel described in subsection (b) may
enter or operate in the navigable waters of the United
States or transfer cargo in any port or place under the
jurisdiction of the United States.
(2) Limitation on application.--
(A) Determination by secretary of state.--
Paragraph (1) shall not apply with respect to a
vessel described in subsection (b)(2) if the
Secretary of State determines that the vessel
is no longer registered as described in that
subsection.
(B) Notice.--The Secretary of State shall
publish a notice in the Federal Register of
each determination made under subparagraph (A).
(b) Vessels Described.--A vessel referred to in subsection
(a) is a foreign vessel for which a notice of arrival is
required to be filed under section 4(a)(5), and that--
(1) is on the most recent list of vessels published
in Federal Register under subsection (c)(2); or
(2) more than 180 days after the publication of
such list, is knowingly registered, pursuant to the
1958 Convention on the High Seas entered into force on
September 30, 1962, by a government the agents or
instrumentalities of which are maintaining a
registration of a vessel that is included on such list.
(c) Information and Publication.--The Secretary of the
department in which the Coast Guard is operating, in
consultation with the Secretary of State, shall--
(1) maintain timely information on the
registrations of all foreign vessels over 300 gross
tons that are--
(A) owned or operated by or on behalf of
the Government of North Korea or a North Korean
person;
(B) owned or operated by or on behalf of
any country in which a sea port or airport is
located, the operator of which the President
has identified in the most recent report
submitted under section 205(a)(1) of the North
Korea Sanctions and Policy Enhancement Act of
2016; or
(C) owned or operated by or on behalf of
any country identified by the President as a
country that has not complied with the
applicable United Nations Security Council
resolutions (as such term is defined in section
3 of such Act); and
(2) not later than 180 days after the date of the
enactment of this section, and periodically thereafter,
publish in the Federal Register a list of the vessels
described in paragraph (1).
(d) Notification of Governments.--
(1) In general.--The Secretary of State shall
notify each government, the agents or instrumentalities
of which are maintaining a registration of a foreign
vessel that is included on a list published under
subsection (c)(2), not later than 30 days after such
publication, that all vessels registered under such
government's authority are subject to the prohibition
under subsection (a).
(2) Additional notification.--In the case of a
government that continues to maintain a registration
for a vessel that is included on such list after
receiving an initial notification under paragraph (1),
the Secretary shall issue an additional notification to
such government not later than 120 days after the
publication of a list under subsection (c)(2).
(e) Notification of Vessels.--Upon receiving a notice of
arrival under section 4(a)(5) from a vessel described in
subsection (b), the Secretary of the department in which the
Coast Guard is operating shall notify the master of such vessel
that the vessel may not enter or operate in the navigable
waters of the United States or transfer cargo in any port or
place under the jurisdiction of the United States, unless--
(1) the Secretary of State has made a determination
under subsection (a)(2); or
(2) the Secretary of the department in which the
Coast Guard is operating allows provisional entry of
the vessel, or transfer of cargo from the vessel, under
subsection (f).
(f) Provisional Entry or Cargo Transfer.--Notwithstanding
any other provision of this section, the Secretary of the
department in which the Coast Guard is operating may allow
provisional entry of, or transfer of cargo from, a vessel, if
such entry or transfer is necessary for the safety of the
vessel or persons aboard.
(g) Right of Innocent Passage.--This section shall not be
construed as authority to restrict the right of innocent
passage as recognized under international law.
(h) Foreign Vessel Defined.--In this section, the term
`foreign vessel' has the meaning given that term in section 110
of title 46, United States Code.
----------
STATE DEPARTMENT BASIC AUTHORITIES ACT OF 1956
* * * * * * *
TITLE I--BASIC AUTHORITIES GENERALLY
* * * * * * *
SEC. 36. DEPARTMENT OF STATE REWARDS PROGRAM.
(a) Establishment.--
(1) In general.--There is established a program for
the payment of rewards to carry out the purposes of
this section.
(2) Purpose.--The rewards program shall be designed
to assist in the prevention of acts of international
terrorism, international narcotics trafficking, serious
violations of international humanitarian law,
transnational organized crime, and other related
criminal acts.
(3) Implementation.--The rewards program shall be
administered by the Secretary of State, in
consultation, as appropriate, with the Attorney
General.
(b) Rewards Authorized.--In the sole discretion of the
Secretary (except as provided in subsection (c)(2)) and in
consultation, as appropriate, with the heads of other relevant
departments or agencies, the Secretary may pay a reward to any
individual who furnishes information leading to--
(1) the arrest or conviction in any country of any
individual for the commission of an act of
international terrorism against a United States person
or United States property;
(2) the arrest or conviction in any country of any
individual conspiring or attempting to commit an act of
international terrorism against a United States person
or United States property;
(3) the arrest or conviction in any country of any
individual for committing, primarily outside the
territorial jurisdiction of the United States, any
narcotics-related offense if that offense involves or
is a significant part of conduct that involves--
(A) a violation of United States narcotics
laws such that the individual would be a major
violator of such laws;
(B) the killing or kidnapping of--
(i) any officer, employee, or
contract employee of the United States
Government while such individual is
engaged in official duties, or on
account of that individual's official
duties, in connection with the
enforcement of United States narcotics
laws or the implementing of United
States narcotics control objectives; or
(ii) a member of the immediate
family of any such individual on
account of that individual's official
duties, in connection with the
enforcement of United States narcotics
laws or the implementing of United
States narcotics control objectives; or
(C) an attempt or conspiracy to commit any
act described in subparagraph (A) or (B);
(4) the arrest or conviction in any country of any
individual aiding or abetting in the commission of an
act described in paragraph (1), (2), (3), (8), (9), or
(10);
(5) the prevention, frustration, or favorable
resolution of an act described in paragraph (1), (2),
(3), (8), (9), or (10) including by dismantling an
organization in whole or significant part;
(6) the identification or location of an individual
who holds a key leadership position in a terrorist
organization or transnational organized crime group;
(7) the disruption of financial mechanisms of a
foreign terrorist organization or transnational
organized crime group, including the use by such
organization or group of illicit narcotics production
or international narcotics trafficking--
(A) to finance acts of international
terrorism or transnational organized crime; or
(B) to sustain or support any terrorist
organization or transnational organized crime
group;
(8) the arrest or conviction in any country of any
individual for participating in, primarily outside the
United States, transnational organized crime;
(9) the arrest or conviction in any country of any
individual conspiring to participate in or attempting
to participate in transnational organized crime; [or]
(10) the arrest or conviction in any country, or
the transfer to or conviction by an international
criminal tribunal (including a hybrid or mixed
tribunal), of any foreign national accused of war
crimes, crimes against humanity, or genocide, as
defined under the statute of such tribunal[.];
(11) the identification or location of any person
who, while acting at the direction of or under the
control of a foreign government, aids or abets a
violation of section 1030 of title 18, United States
Code; or
(12) the disruption of financial mechanisms of any
person who has engaged in the conduct described in
sections 104(a) or 104(b)(1) of the North Korea
Sanctions and Policy Enhancement Act of 2016 (22 U.S.C.
2914(a) or (b)(1)).
(c) Coordination.--
(1) Procedures.--To ensure that the payment of
rewards pursuant to this section does not duplicate or
interfere with the payment of informants or the
obtaining of evidence or information, as authorized to
the Department of Justice, the offering,
administration, and payment of rewards under this
section, including procedures for--
(A) identifying individuals, organizations,
and offenses with respect to which rewards will
be offered;
(B) the publication of rewards;
(C) the offering of joint rewards with
foreign governments;
(D) the receipt and analysis of data; and
(E) the payment and approval of payment,
shall be governed by procedures developed by the
Secretary of State, in consultation with the Attorney
General.
(2) Prior approval of attorney general required.--
Before making a reward under this section in a matter
over which there is Federal criminal jurisdiction, the
Secretary of State shall obtain the concurrence of the
Attorney General.
(d) Funding.--
(1) Authorization of appropriations.--
Notwithstanding section 102 of the Foreign Relations
Authorization Act, Fiscal Years 1986 and 1987 (Public
Law 99-93; 99 Stat. 408), but subject to paragraph (2),
there are authorized to be appropriated to the
Department of State from time to time such amounts as
may be necessary to carry out this section.
(2) Period of availability.--Amounts appropriated
under paragraph (1) shall remain available until
expended.
(e) Limitations and Certification.--
(1) Maximum amount.--No reward paid under this
section may exceed $25,000,000, except as personally
authorized by the Secretary of State if he determines
that offer or payment of an award of a larger amount is
necessary to combat terrorism or defend the Nation
against terrorist acts. Without first making such
determination, the Secretary may authorize a reward of
up to twice the amount specified in this paragraph for
the capture or information leading to the capture of a
leader of a foreign terrorist organization.
(2) Approval.--A reward under this section of more
than $100,000 may not be made without the approval of
the Secretary.
(3) Certification for payment.--Any reward granted
under this section shall be approved and certified for
payment by the Secretary.
(4) Nondelegation of authority.--The authority to
approve rewards of more than $100,000 set forth in
paragraph (2) may not be delegated.
(5) Protection measures.--If the Secretary
determines that the identity of the recipient of a
reward or of the members of the recipient's immediate
family must be protected, the Secretary may take such
measures in connection with the payment of the reward
as he considers necessary to effect such protection.
(6) Forms of reward payment.--The Secretary may
make a reward under this section in the form of money,
a nonmonetary item (including such items as automotive
vehicles), or a combination thereof.
(f) Ineligibility.--An officer or employee of any entity of
Federal, State, or local government or of a foreign government
who, while in the performance of his or her official duties,
furnishes information described in subsection (b) shall not be
eligible for a reward under this section.
(g) Reports.--
(1) Reports on payment of rewards.--Not later than
30 days after the payment of any reward under this
section, the Secretary shall submit a report to the
appropriate congressional committees with respect to
such reward. The report, which may be submitted in
classified form if necessary, shall specify the amount
of the reward paid, to whom the reward was paid, and
the acts with respect to which the reward was paid. The
report shall also discuss the significance of the
information for which the reward was paid in dealing
with those acts.
(2) Annual reports.--Not later than 60 days after
the end of each fiscal year, the Secretary shall submit
a report to the appropriate congressional committees
with respect to the operation of the rewards program.
The report shall provide information on the total
amounts expended during the fiscal year ending in that
year to carry out this section, including amounts
expended to publicize the availability of rewards.
(3) Advance notification for international criminal
tribunal rewards.--Not less than 15 days before
publicly announcing that a reward may be offered for a
particular foreign national accused of war crimes,
crimes against humanity, or genocide, the Secretary of
State shall submit to the appropriate congressional
committees a report, which may be submitted in
classified form if necessary, setting forth the reasons
why the arrest or conviction of such foreign national
is in the national interests of the United States.
(4) Reports on rewards authorized.--Not less than
15 days after a reward is authorized under this
section, the Secretary of State shall submit to the
appropriate congressional committees a report, which
may be submitted in classified form if necessary to
protect intelligence sources and methods, detailing
information about the reward, including the identity of
the individual for whom the reward is being made, the
amount of the reward, the acts with respect to which
the reward is being made, and how the reward is being
publicized.
(h) Publication Regarding Rewards Offered by Foreign
Governments.--Notwithstanding any other provision of this
section, in the sole discretion of the Secretary, the resources
of the rewards program shall be available for the publication
of rewards offered by foreign governments regarding acts of
international terrorism which do not involve United States
persons or property or a violation of the narcotics laws of the
United States.
(i) Media Surveys and Advertisements.--
(1) Surveys conducted.--For the purpose of more
effectively disseminating information about the rewards
program, the Secretary may use the resources of the
rewards program to conduct media surveys, including
analyses of media markets, means of communication, and
levels of literacy, in countries determined by the
Secretary to be associated with acts of international
terrorism.
(2) Creation and purchase of advertisements.--The
Secretary may use the resources of the rewards program
to create advertisements to disseminate information
about the rewards program. The Secretary may base the
content of such advertisements on the findings of the
surveys conducted under paragraph (1). The Secretary
may purchase radio or television time, newspaper space,
or make use of any other means of advertisement, as
appropriate.
(j) Determinations of the Secretary.--A determination made
by the Secretary under this section shall be final and
conclusive and shall not be subject to judicial review.
(k) Definitions.--As used in this section:
(1) Act of international terrorism.--The term ``act
of international terrorism'' includes--
(A) any act substantially contributing to
the acquisition of unsafeguarded special
nuclear material (as defined in paragraph (8)
of section 830 of the Nuclear Proliferation
Prevention Act of 1994 (22 U.S.C. 3201 note))
or any nuclear explosive device (as defined in
paragraph (4) of that section) by an
individual, group, or non-nuclear-weapon state
(as defined in paragraph (5) of that section);
and
(B) any act, as determined by the
Secretary, which materially supports the
conduct of international terrorism, including
the counterfeiting of United States currency or
the illegal use of other monetary instruments
by an individual, group, or country supporting
international terrorism as determined for
purposes of section 6(j)(1)(A) of the Export
Administration Act of 1979 (50 U.S.C. App.
2405(j)(1)(A)).
(2) Appropriate congressional committees.--The term
``appropriate congressional committees'' means the
Committee on Foreign Affairs of the House of
Representatives and the Committee on Foreign Relations
of the Senate.
(3) Member of the immediate family.--The term
``member of the immediate family'', with respect to an
individual, includes--
(A) a spouse, parent, brother, sister, or
child of the individual;
(B) a person with respect to whom the
individual stands in loco parentis; and
(C) any person not covered by subparagraph
(A) or (B) who is living in the individual's
household and is related to the individual by
blood or marriage.
(4) Rewards program.--The term ``rewards program''
means the program established in subsection (a)(1).
(5) Transnational organized crime.--The term
``transnational organized crime'' means--
(A) racketeering activity (as such term is
defined in section 1961 of title 18, United
States Code) that involves at least one
jurisdiction outside the United States; or
(B) any other criminal offense punishable
by a term of imprisonment of at least four
years under Federal, State, or local law that
involves at least one jurisdiction outside the
United States and that is intended to obtain,
directly or indirectly, a financial or other
material benefit.
(6) Transnational organized crime group.--The term
``transnational organized crime group'' means a group
of persons that includes one or more citizens of a
foreign country, exists for a period of time, and acts
in concert with the aim of engaging in transnational
organized crime.
(7) United states narcotics laws.--The term
``United States narcotics laws'' means the laws of the
United States for the prevention and control of illicit
trafficking in controlled substances (as such term is
defined in section 102(6) of the Controlled Substances
Act (21 U.S.C. 802(6))).
(8) United states person.--The term ``United States
person'' means--
(A) a citizen or national of the United
States; and
(B) an alien lawfully present in the United
States.
* * * * * * *
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