Sec. 101. Sanctions with respect to financial institutions providing support to the Government of North Korea
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Not later than 60 days after the date of the enactment of this Act, and every 180 days thereafter, the President shall submit to the appropriate congressional committees and publish in the Federal Register a report that contains a list of any financial institutions that the President has identified as having engaged in, during the one-year period preceding the submission of the report, the following conduct: Dealing in North Korean covered property. Providing correspondent or interbank services to one or more North Korean financial institutions.
Failing to apply enhanced due diligence to prevent North Korean financial institutions from gaining access to correspondent or interbank services in the United States or provided by United States persons. Knowingly operating or participating with or on behalf of an offshore United States dollar clearing system that conducts transactions involving the Government of North Korea or North Korean covered property. Conducting or facilitating one or more significant transactions in North Korean covered property involving covered goods (as that term is defined in section 1027.100 of title 31, Code of Federal Regulations, or any successor regulation) or the currency of a country other than the country in which the person is operating at the time of the transaction.
Each report required under paragraph
(1)shall be submitted in unclassified form but may contain a classified annex. If the President determines that a financial institution identified under subsection
(a)has knowingly engaged in conduct described in that subsection, the President shall apply the following sanctions with respect to that financial institution: Prohibit the designation of the financial institution, or the continuation of any prior designation of the financial institution, as a primary dealer in United States Government debt instruments. Prohibit the financial institution from serving as agent of the United States Government or as a repository for funds of the United States Government. One or more of the following: Prohibit the opening, and prohibit or impose strict conditions on the maintaining, in the United States of any correspondent account or payable-through account by the financial institution if the financial institution is a foreign financial institution. Prohibit any transactions in foreign exchange that are subject to the jurisdiction of the United States and in which the financial institution has any interest. In accordance with the International Emergency Economic Powers Act ( 50 U.S.C. 1701 et seq.), block and prohibit all transactions in all property and interests in property of the financial institution 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. If the President determines that a financial institution identified under subsection
(a)that is a United States financial institution has knowingly engaged in conduct described in that subsection— if the financial institution has taken reasonable steps to prevent a recurrence of conduct described in that subsection and is cooperating fully with the efforts of the President to enforce the provisions of this Act— unless the financial institution is described in clause (ii), the President shall impose a civil penalty not to exceed $100,000 for each reportable act described in subparagraphs
(A)through
(E)of subsection (a)(1) that is knowingly conducted; or if the financial institution has not previously been reported for similar conduct under subsection (a), the President shall issue a cautionary letter to that financial institution; or if the financial institution is not a financial institution described in subparagraph (A), the President shall impose a civil penalty not to exceed $250,000 for each reportable act described in subparagraphs
(A)through
(E)of subsection (a)(1) that is knowingly conducted. The President may suspend the submission of the reports described in subsection
(a)and the application of sanctions and penalties described in subsection
(b)for a one-year period if— such reporting and application of sanctions and penalties could compromise an ongoing law enforcement investigation or prosecution; or a criminal prosecution is pending, or a criminal or civil fine or penalty has been imposed or conditionally deferred, for the conduct reported pursuant to subsection (a). The President may suspend the application of any sanctions or penalties under subsection
(b)for a period of not more than one year if the President certifies to the appropriate congressional committees that the Government of North Korea is taking steps toward— the verification of its compliance with applicable United Nations Security Council Resolutions; and fully accounting for and repatriating United States citizens and permanent residents (including deceased United States citizens and permanent residents)— abducted or unlawfully held captive by the Government of North Korea; or 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 ). The President may renew a suspension described in paragraph
(1)for additional periods of not more than 180 days if the President certifies to the appropriate congressional committees that the Government of North Korea continues to take steps as described in paragraph (1). Subject to subsection (f), the President may terminate the application of any sanctions or penalties under subsection
(b)if the President certifies that the Government of North Korea has made significant progress towards— 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; and fully accounting for and repatriating United States citizens and permanent residents (including deceased United States citizens and permanent residents)— abducted or unlawfully held captive by the Government of North Korea; or 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 ). Subject to subsection (f), the President may waive the application of sanctions or penalties under subsection
(b)with respect to a financial institution if the President determines that the waiver is in the national security interest of the United States. Notwithstanding any other provision of law, before taking any action described in subparagraph (B), the President shall submit to the appropriate congressional committees and leadership a report that describes the proposed action and the reasons for that action. An action described in this subparagraph is— an action to suspend, renew a suspension, or terminate under subsection
(d)the application of sanctions or penalties under subsection (b); or with respect to sanctions or penalties under subsection
(b)imposed by the President with respect to a person, an action to waive under subsection
(e)the application of those sanctions or penalties with respect to that person. Each report submitted under subparagraph
(A)with respect to an action described in subparagraph
(B)shall include a description of whether the action— is not intended to significantly alter United States foreign policy with regard to North Korea; or is intended to significantly alter United States foreign policy with regard to North Korea. Each report submitted under subparagraph
(A)that relates to an action that is intended to significantly alter United States foreign policy with regard to North Korea shall include a description of— the significant alteration to United States foreign policy with regard to North Korea; the anticipated effect of the action on the national security interests of the United States; and the policy objectives for which the sanctions affected by the action were initially imposed. The Committee on Banking, Housing, and Urban Affairs of the Senate or the Committee on Financial Services of the House of Representatives may request the submission to the Committee of the matter described in subclauses
(II)and
(III)of clause
(i)with respect to a report submitted under subparagraph
(A)that relates to an action that is not intended to significantly alter United States foreign policy with regard to North Korea. During the period of 30 calendar days beginning on the date on which the President submits a report under paragraph (1)(A)— in the case of a report that relates to an action that is not intended to significantly alter United States foreign policy with regard to North Korea, the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives should, as appropriate, hold hearings and briefings and otherwise obtain information in order to fully review the report; and in the case of a report that relates to an action that is intended to significantly alter United States foreign policy with regard to North Korea, the Committee on Foreign Relations of the Senate and the Committee on Foreign Affairs of the House of Representatives should, as appropriate, hold hearings and briefings and otherwise obtain information in order to fully review the report. The period for congressional review under subparagraph
(A)of a report required to be submitted under paragraph (1)(A) shall be 60 calendar days if the report is submitted on or after July 10 and on or before September 7 in any calendar year. Notwithstanding any other provision of law, during the period for congressional review provided for under subparagraph
(A)of a report submitted under paragraph (1)(A) proposing an action described in paragraph (1)(B), including any additional period for such review as applicable under the exception provided in subparagraph (B), the President may not take that action unless a joint resolution of approval with respect to that action is enacted in accordance with paragraph (3). Notwithstanding any other provision of law, if a joint resolution of disapproval relating to a report submitted under paragraph (1)(A) proposing an action described in paragraph (1)(B) passes both Houses of Congress in accordance with paragraph (3), the President may not take that action for a period of 12 calendar days after the date of passage of the joint resolution of disapproval. Notwithstanding any other provision of law, if a joint resolution of disapproval relating to a report submitted under paragraph (1)(A) proposing an action described in paragraph (1)(B) passes both Houses of Congress in accordance with paragraph (3), and the President vetoes the joint resolution, the President may not take that action for a period of 10 calendar days after the date of the President’s veto. Notwithstanding any other provision of law, if a joint resolution of disapproval relating to a report submitted under paragraph (1)(A) proposing an action described in paragraph (1)(B) is enacted in accordance with paragraph (3), the President may not take that action. In this paragraph: The term joint resolution of approval means only a joint resolution of either House of Congress— the title of which is as follows: A joint resolution approving the President's proposal to take an action relating to the application of certain sanctions with respect to North Korea. ; and the sole matter after the resolving clause of which is the following: Congress approves of the action relating to the application of sanctions imposed with respect to North Korea proposed by the President in the report submitted to Congress under section 101(f)(1)(A) of the , with the first blank space being filled with the appropriate date and the second blank space being filled with a short description of the proposed action. Banking Restrictions Involving North Korea (BRINK) Act of 2017 on _______ relating to ________. The term joint resolution of disapproval means only a joint resolution of either House of Congress— the title of which is as follows: A joint resolution disapproving the President's proposal to take an action relating to the application of certain sanctions with respect to North Korea. ; and the sole matter after the resolving clause of which is the following: Congress disapproves of the action relating to the application of sanctions imposed with respect to North Korea proposed by the President in the report submitted to Congress under section 101(f)(1)(A) of the , with the first blank space being filled with the appropriate date and the second blank space being filled with a short description of the proposed action. Banking Restrictions Involving North Korea (BRINK) Act of 2017 on _______ relating to ________. During the period of 30 calendar days provided for under paragraph (2)(A), including any additional period as applicable under the exception provided in paragraph (2)(B), a joint resolution of approval or joint resolution of disapproval may be introduced— in the House of Representatives, by the majority leader or the minority leader; and in the Senate, by the majority leader (or the majority leader's designee) or the minority leader (or the minority leader's designee). If a committee of the House of Representatives to which a joint resolution of approval or joint resolution of disapproval has been referred has not reported the joint resolution within 10 calendar days after the date of referral, that committee shall be discharged from further consideration of the joint resolution. Beginning on the third legislative day after each committee to which a joint resolution of approval or joint resolution of disapproval has been referred reports the joint resolution to the House or has been discharged from further consideration of the joint resolution, it shall be in order to move to proceed to consider the joint resolution in the House. All points of order against the motion are waived. Such a motion shall not be in order after the House has disposed of a motion to proceed on the joint resolution. The previous question shall be considered as ordered on the motion to its adoption without intervening motion. The motion shall not be debatable. A motion to reconsider the vote by which the motion is disposed of shall not be in order. The joint resolution of approval or joint resolution of disapproval shall be considered as read. All points of order against the joint resolution and against its consideration are waived. The previous question shall be considered as ordered on the joint resolution to final passage without intervening motion except 2 hours of debate equally divided and controlled by the sponsor of the joint resolution (or a designee) and an opponent. A motion to reconsider the vote on passage of the joint resolution shall not be in order. A joint resolution of approval or joint resolution of disapproval introduced in the Senate shall be— referred to the Committee on Banking, Housing, and Urban Affairs if the joint resolution relates to a report submitted under paragraph (1)(A) with respect to an action that is not intended to significantly alter United States foreign policy with regard to North Korea; and referred to the Committee on Foreign Relations if the joint resolution relates to a report submitted under paragraph (1)(A) with respect to an action that is intended to significantly alter United States foreign policy with respect to North Korea. If the committee to which a joint resolution of approval or joint resolution of disapproval was referred has not reported the joint resolution within 10 calendar days after the date of referral of the joint resolution, that committee shall be discharged from further consideration of the joint resolution and the joint resolution shall be placed on the appropriate calendar. Notwithstanding Rule XXII of the Standing Rules of the Senate, it is in order at any time after the Committee on Banking, Housing, and Urban Affairs or the Committee on Foreign Relations, as the case may be, reports a joint resolution of approval or joint resolution of disapproval to the Senate or has been discharged from consideration of such a joint resolution (even though a previous motion to the same effect has been disagreed to) to move to proceed to the consideration of the joint resolution, and all points of order against the joint resolution (and against consideration of the joint resolution) are waived. The motion to proceed is not debatable. The motion is not subject to a motion to postpone. A motion to reconsider the vote by which the motion is agreed to or disagreed to shall not be in order. Appeals from the decisions of the Chair relating to the application of the rules of the Senate, as the case may be, to the procedure relating to a joint resolution of approval or joint resolution of disapproval shall be decided without debate. Debate in the Senate of any veto message with respect to a joint resolution of approval or joint resolution of disapproval, including all debatable motions and appeals in connection with the joint resolution, shall be limited to 10 hours, to be equally divided between, and controlled by, the majority leader and the minority leader or their designees. If, before the passage by one House of a joint resolution of approval or joint resolution of disapproval of that House, that House receives an identical joint resolution from the other House, the following procedures shall apply: The joint resolution of the other House shall not be referred to a committee. With respect to the joint resolution of the House receiving the joint resolution from the other House— the procedure in that House shall be the same as if no joint resolution had been received from the other House; but the vote on passage shall be on the joint resolution of the other House. If one House fails to introduce a joint resolution of approval or joint resolution of disapproval, a joint resolution of approval or joint resolution of disapproval of the other House shall be entitled to expedited procedures in that House under this subsection. If, following passage of a joint resolution of approval or joint resolution of disapproval in the Senate, the Senate receives an identical joint resolution from the House of Representatives, that joint resolution shall be placed on the appropriate Senate calendar. The provisions of this subparagraph shall not apply in the House of Representatives to a joint resolution of approval or joint resolution of disapproval that is a revenue measure. This paragraph is enacted by Congress— as an exercise of the rulemaking power of the Senate and the House of Representatives, respectively, and as such is deemed a part of the rules of each House, respectively, but applicable only with respect to the procedure to be followed in that House in the case of a joint resolution of approval or joint resolution of disapproval, and supersedes other rules only to the extent that it is inconsistent with such rules; and with full recognition of the constitutional right of either House to change the rules (so far as relating to the procedure of that House) at any time, in the same manner, and to the same extent as in the case of any other rule of that House. Not later than 180 days after the date of the enactment of this Act, and every 180 days thereafter, the President shall brief the appropriate congressional committees on the status of efforts by the President to prevent conduct described in subparagraphs
(A)through
(E)of subsection (a)(1). Nothing in this section shall be construed to prohibit any person from, or authorize or require the imposition of sanctions with respect to any person for, conducting or facilitating any transaction for the sale or donation of agricultural commodities, food, medicine, or medical devices. In this section, the term appropriate congressional committees and leadership means— the Committee on Banking, Housing, and Urban Affairs, the Committee on Foreign Relations, and the majority and minority leaders of the Senate; and the Committee on Financial Services, the Committee on Foreign Affairs, and the Speaker, the majority leader, and the minority leader of the House of Representatives.
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Sec. 101
Sanctions with respect to financial institutions providing support to the Government of North Korea
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