Sec. 103. Prohibition on indirect correspondent accounts
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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 (as amended by section 102 of this Act) the following new section: 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.
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— 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 does not involve debiting or crediting a North Korean account.
In this section: The term correspondent account has the meaning given that term in section 5318A of title 31, United States Code. The term United States financial institution 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. 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. .
The table of contents for the North Korea Sanctions and Policy Enhancement Act of 2016 is amended by inserting after the item relating to section 201 the following new item: Sec. 201A. Prohibition on indirect correspondent accounts. .
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Sec. 103
Prohibition on indirect correspondent accounts
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