Sec. 201. Sanctions for material support of North Korean proliferation
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/bill/113/hr/1771/ih/section-201·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
It is the sense of Congress that the Government of North Korea should be treated as a primary money laundering concern in accordance with section 5318A of title 31, United States Code. A domestic financial institution shall terminate any correspondent account that is established, maintained, administered, or managed for, or on behalf of, any person, foreign government, or financial institution designated under subsection
(a)or
(b)of section 104. If a domestic financial institution has or obtains knowledge that a correspondent account established, maintained, administered, or managed by that domestic financial 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 subsection
(a)or
(b)of section 104, the domestic financial institution shall ensure that the correspondent account is no longer used to provide such services, including, when necessary, terminating the correspondent account. Except as provided in section 207, the Secretary of Treasury shall require all domestic financial institutions to apply one or more of the special measures described in paragraphs
(1)through
(5)of section 5318A(b) of title 31, United States Code, to— any financial institution that establishes, maintains, administers, or manages any correspondent account for a person, financial institution, or foreign government designated under subsection
(a)or
(b)of section 104; and any person, financial institution, or foreign government designated under subsection
(c)or
(d)of section 104. A domestic financial institution required to terminate an account pursuant to this subsection— shall not permit the foreign bank to establish any new positions or execute any transactions through such account, other than those necessary to close the account; and may reestablish an account closed pursuant to such subsection if the Secretary of the Treasury determines that the account will not be used to provide financial services indirectly to a person designated under subsection
(a)or
(b)of section 104. With respect to a designated person that is a domestic financial institution, neither the Board of Governors of the Federal Reserve System nor the Federal Reserve Bank of New York may designate, or permit the continuation of any prior designation of, such financial institution as a primary dealer in United States Government debt instruments. With respect to a designated person that is a domestic financial institution, such domestic financial institution may not serve as agent of the United States Government or serve as a repository for United States Government funds. The President may prohibit any transactions in foreign exchange by any domestic financial institution in which a designated person has any interest. The President may prohibit any transfers of credit or payments between domestic financial institutions or by, through, or to any financial institution, to the extent that such transfers or payments involve any interest of a designated person. The penalties provided for in sections 5321(a) and 5322 of title 31, United States Code, shall apply to a person that violates a regulation prescribed under paragraph (1), (2), (3), or
(4)in the same manner and to the same extent as such penalties would apply to any person that is otherwise subject to such section 5321(a) or 5322. The penalties provided for in section 206 of the International Emergency Economic Powers Act ( 50 U.S.C. 1705 ) shall apply to a person who violates a regulation prescribed under paragraph (5), (6), (7), or
(8)in the same manner and to the same extent as such penalties would apply to any person that is otherwise subject to such section. 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 immediately freeze or block— any North Korean property, and any property involved in any of the activities described in section 104(a), within the jurisdiction of the United States, or held by a domestic financial institution. 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 block any property of a designated person within the jurisdiction of the United States, or held by a domestic financial institution. 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 encourage foreign governments and foreign financial institutions to block, in accordance with the legal process of the country in which the property is held, any property derived from the misappropriation, theft, or embezzlement of public funds by, or for the benefit of, an official of the Government of North Korea. Activities prohibited by reason of the blocking of property and financial transactions under this section shall include the following: Payments or transfers of any property, or any transactions involving the transfer of anything of economic value by any United States person, including any United States financial institution and any branch or office of such financial institution that is located outside the United States, to a designated person. The transfer directly or indirectly, of any goods, technology, or services by a United States person to a designated person. The Secretary of the Treasury shall review all transaction licenses granted pursuant to subpart E of part 510 of title 31, Code of Federal Regulations, all applications for such licenses, and all exclusions from such licensing requirements not later than 180 days after the date of the enactment of this Act, and shall deny or revoke any license for any transaction that, in the determination of the Secretary of the Treasury, lacks sufficient financial controls to ensure that such transaction will not facilitate any of the activities described in section 104(a). The President may direct the Secretary of State to deny a visa to, and the Secretary of Homeland Security to exclude from the United States, any alien who is a designated person, or who is a corporate officer or principal of, or a shareholder with a controlling interest in, a designated person. The President shall— take appropriate steps to secure the effective enforcement of anti-money laundering protocols consistent with the purpose of this Act, through bilateral discussions with foreign governments and through the Financial Action Task Force; and support efforts of foreign governments to enact and enforce legislation consistent with the purposes of this Act.
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