Sec. 104. Designation of persons, foreign governments, and financial institutions
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Except as provided in section 207, the President shall exercise the authorities of the International Emergency Economic Powers Act ( 50 U.S.C. 1701 et seq. ) without regard to section 202 of such Act to designate and apply the sanctions described in title II, as applicable, with respect to any person if the President determines that the person— knowingly and materially contributes, through the export to or import from North Korea of any goods or technology, to the efforts by any government or person to use, develop, produce, stockpile, or otherwise acquire nuclear, radiological, chemical, or biological weapons, or any device or system designed in whole or in part to deliver such weapons; knowingly exports, or facilitates the export of, defense articles and defense services to the Government of North Korea, or knowingly exports, or facilitates the export of, any defense articles and defense services from North Korea to any other country; knowingly exports, or facilitates the export of, any luxury goods to North Korea; knowingly provides, sells, leases, registers, or reflags a vessel, aircraft, or other conveyance, or provides insurance or reinsurance or any other shipping or transportation service used or intended to be used for, the transportation of goods to or from North Korea, for purposes facilitating a specified unlawful activity, or for purposes of evading a regulation established under this Act or the International Emergency Economic Powers Act; knowingly transfers, pays, exports, withdraws, or otherwise deals with any property or interest in property of the Government of North Korea for purposes of facilitating a specified unlawful activity, or for purposes of evading a regulation established under this Act or the International Emergency Economic Powers Act; knowingly engages in or facilitates censorship by the Government of North Korea; or knowingly commits or facilitates a serious human rights abuse by the Government of North Korea.
Except as provided in section 207, the President shall exercise the authorities of the International Emergency Economic Powers Act ( 50 U.S.C. 1701 et seq. ) without regard to section 202 of such Act to designate and apply the sanctions described in title II, as applicable, with respect to any person or foreign government if the President determines the person or foreign government— has been listed or sanctioned under any regulation or Executive Order No. 13382, 13224, 13551, or otherwise pursuant to the International Emergency Economic Powers Act for illicit activities or activities concerning North Korea’s proliferation of weapons of mass destruction; has been sanctioned under United Nations Security Council resolutions 1695, 1718, 1874, 2087, 2094, or other such resolution concerning North Korea’s proliferation of weapons of mass destruction; or has been convicted of a criminal offense for any of the activities described in paragraphs
(1)through
(7)of subsection (a). Except as provided in section 207, the President shall exercise the authorities of the International Emergency Economic Powers Act ( 50 U.S.C. 1701 et seq. ) without regard to section 202 of such Act to designate and apply the sanctions described in title II, as applicable, with respect to the Government of North Korea. Except as provided in section 207, the President may exercise the authorities of the International Emergency Economic Powers Act ( 50 U.S.C. 1701 et seq. ) without regard to section 202 of such Act to designate and apply any of the sanctions described in sections 201 and 204, as applicable, with respect to any foreign government or financial institution if the President determines the foreign government or financial institution, after the date that is 180 days after the date of the enactment of this Act— engages in any of the activities described in paragraphs
(1)through
(7)of subsection (a); fails to freeze any funds, financial assets, or economic resources of a person designated under subsection
(a)or
(b)in accordance with the legal process of the country in which such property is held; fails to freeze any funds, financial assets, or economic resources that could be used to facilitate any of the activities described in paragraph (1), (2), or
(3)of subsection (a), in accordance with the legal process of the country in which such property is held; fails to apply enhanced monitoring to prevent any transactions that could be used to facilitate any of the activities described in paragraph (1), (2), or
(3)of subsection (a); permits any North Korean financial institution to open any new branch, subsidiary or representative office, or to establish any new joint venture within its jurisdiction, or to take an ownership interest in, or establish or maintain a correspondent relationship with any bank in its jurisdiction, if such branch, subsidiary, representative office, joint venture, ownership interest, or correspondent relationship could be used to facilitate any of the activities described in paragraph (1), (2), or
(3)of subsection (a); fails to prohibit any transfers of cash, including through cash couriers, transiting to and from North Korea so as to ensure such transfers of bulk cash are not used to facilitate any of the activities described in paragraph (1), (2), or
(3)of subsection (a); provides public financial support for trade with the Government of North Korea (including the granting of export credits, guarantees or insurance to their nationals or entities involved in such trade) when such financial support could be used to facilitate any of the activities described in paragraph (1), (2), or
(3)of subsection (a); or facilitates the use of any proceeds of the bribery of an official of the Government of North Korea, or the misappropriation, theft, or embezzlement of public funds by, or for the benefit of, an official of the Government of North Korea. The designation of a person, foreign government, or financial institution under subsection (a), (b), (c), or
(d)shall also apply with respect to— a successor entity to the designated person; a person owned or controlled by, or under common ownership or control with, the designated person, if the person owned or controlled by, or under common ownership or control with (as the case may be), the designated person knowingly engaged in the transaction causing the designation; a corporate officer or principal of, or a shareholder with a controlling interest in, such designated person, if such corporate officer, or principal or shareholder with a controlling interest, knowingly engaged in the transaction causing the designation; and a United States person, including a domestic financial institution, to the same extent as if the transaction were engaged in by the United States person or in the United States if— a person, including a foreign subsidiary, owned or controlled by the United States person engages in or facilitates any of the activities described in paragraphs
(1)through
(7)of subsection (a); and the United States person knew or should have known that the person engaged in or facilitated any of the activities described in paragraphs
(1)through
(7)of subsection (a). The President shall promulgate such regulations as may be necessary under the authority of the International Emergency Economic Powers Act ( 50 U.S.C. 1701 et seq. ) to carry out this section. The regulations promulgated under this subsection shall require enhanced due diligence for all transactions with the Government of North Korea or involving North Korean property to prevent the facilitation of activities described in any of paragraphs
(1)through
(7)of subsection
(a)or any of paragraphs
(1)through
(8)of subsection (d). Any person who engages in the conduct described in subsection (a), or who violates any regulation promulgated under subsection
(f)or section 404, shall be subject to the penalties under section 206 of the International Emergency Economic Powers Act ( 50 U.S.C. 1705 ) in the same manner and to the same extent as such penalties would apply to any person who violates any license, order, regulation, or prohibition issued under that Act ( 50 U.S.C. 1701 et seq. ).
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Sec. 104
Designation of persons, foreign governments, and financial institutions
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