Sec. 7121. SANCTIONS WITH RESPECT TO FOREIGN FINANCIAL INSTITUTIONS THAT PROVIDE FINANCIAL SERVICES TO CERTAIN SANCTIONED PERSONS

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## SEC. 7121 SANCTIONS WITH RESPECT TO FOREIGN FINANCIAL INSTITUTIONS THAT PROVIDE FINANCIAL SERVICES TO CERTAIN SANCTIONED PERSONS ###

(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 201A the following: > > ## “SEC. 201B SANCTIONS WITH RESPECT TO FOREIGN FINANCIAL INSTITUTIONS THAT PROVIDE FINANCIAL SERVICES TO CERTAIN SANCTIONED PERSONS > > **[**[22 U.S.C. 9221b](/us/usc/t22/s9221b)**]** > > > ### “(a) In General > > The Secretary of the Treasury shall impose one or more of the sanctions described in subsection

(b)with respect to a foreign financial institution that the Secretary determines, in consultation with the Secretary of State, knowingly, on or after the date that is 120 days after the date of the enactment of the Otto Warmbier North Korea Nuclear Sanctions and Enforcement Act of 2019, provides significant financial services to any person designated for the imposition of sanctions with respect to North Korea under— > > > #### “(1) > > subsection (a), (b), or

(g)of section 104; > > > #### “(2) > > an applicable Executive order; or > > > #### “(3) > > an applicable United Nations Security Council resolution. > > > ### “(b) Sanctions Described > > The sanctions that may be imposed with respect to a foreign financial institution subject to subsection

(a)are the following: > > > #### “(1) Asset blocking > > The Secretary may block and prohibit, pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.), all transactions in all property and interests in property of the foreign 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. > > > #### “(2) Restrictions on correspondent and payable-through accounts > > The Secretary may prohibit, or impose strict conditions on, the opening or maintaining in the United States of a correspondent account or a payable-through account by the foreign financial institution. > > > ### “(c) Implementation; Penalties > > > #### “(1) Implementation > > The President may exercise all authorities provided under sections 203 and 205 of the International Emergency Economic Powers Act (50 U.S.C. 1702 and 1704) to carry out this section. > > > #### “(2) Penalties > > A person that violates, attempts to violate, conspires to violate, or causes a violation of this section or any regulation, license, or order issued to carry out this section shall be subject to the penalties set forth in subsections

(b)and

(c)of section 206 of the International Emergency Economic Powers Act (50 U.S.C. 1705) to the same extent as a person that commits an unlawful act described in subsection

(a)of that section. > > > ### “(d) Regulations > > Not later than 120 days after the date of the enactment of the Otto Warmbier North Korea Nuclear Sanctions and Enforcement Act of 2019, the President shall, as appropriate, prescribe regulations to carry out this section. > > > ### “(e) Exception Relating to Importation of Goods > > > #### “(1) In general > > Notwithstanding section 404(b) or any provision of this section, the authorities and requirements to impose sanctions under this section shall not include the authority or a requirement to impose sanctions on the importation of goods. > > > #### “(2) Good defined > > In this subsection, the term ‘good’ means any article, natural or manmade substance, material, supply or manufactured product, including inspection and test equipment, and excluding technical data. > > > ### “(f) Definitions > > In this section: > > > #### “(1) Account; correspondent account; payable-through account > > The terms ‘account’, ‘correspondent account’, and ‘payable-through account’ have the meanings given those terms in section 5318A of title 31, United States Code. > > > #### “(2) Foreign financial institution > > The term ‘foreign financial institution’ has the meaning given that term in section 510.309 of title 31, Code of Federal Regulations (or any corresponding similar regulation or ruling). > > > #### “(3) Knowingly > > The term ‘knowingly’, with respect to conduct, a circumstance, or a result, means that a person has actual knowledge, or should have known, of the conduct, the circumstance, or the result. > > > ## “SEC. 201C PROHIBITION ON TRANSACTIONS WITH CERTAIN SANCTIONED PERSONS BY PERSONS OWNED OR CONTROLLED BY UNITED STATES FINANCIAL INSTITUTIONS > > **[**[22 U.S.C. 9221c](/us/usc/t22/s9221c)**]** > > > ### “(a) In General > > Not later than 180 days after the date of the enactment of the Otto Warmbier North Korea Nuclear Sanctions and Enforcement Act of 2019, the Secretary of the Treasury, in consultation with the Secretary of State, shall prohibit an entity owned or controlled by a United States financial institution and established or maintained outside the United States from knowingly engaging in any transaction described in subsection

(b)directly or indirectly with the Government of North Korea or any person designated for the imposition of sanctions with respect to North Korea under— > > > #### “(1) > > subsection (a), (b), or

(g)of section 104; > > > #### “(2) > > an applicable Executive order; or > > > #### “(3) > > an applicable United Nations Security Council resolution. > > > ### “(b) Transactions Described > > A transaction described in this subsection is a transaction that would be prohibited by an order or regulation issued pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) if the transaction were engaged in in the United States or by a United States person. > > > ### “(c) Civil Penalties > > The civil penalty provided for in section 206(b) of the International Emergency Economic Powers Act (50 U.S.C. 1705(b)) shall apply to a United States financial institution to the same extent that such penalty applies to a person that commits an unlawful act described in section 206(a) of that Act if an entity owned or controlled by the United States financial institution and established or maintained outside the United States violates, attempts to violate, conspires to violate, or causes a violation of any order or regulation issued to implement subsection (a). > > > ### “(d) United States Financial Institution Defined > > In this section, the term ‘United States financial institution’ has the meaning given the term ‘U.S. financial institution’ in section 510.328 of title 31, Code of Federal Regulations (or any corresponding similar regulation or ruling).” > . ###

(b)Clerical Amendment 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 201A the following:" “Sec. 201B. Sanctions with respect to foreign financial institutions that provide financial services to certain sanctioned persons. “Sec. 201C. Prohibition on transactions with certain sanctioned persons by persons owned or controlled by United States financial institutions.” ".

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Sec. 7121

SANCTIONS WITH RESPECT TO FOREIGN FINANCIAL INSTITUTIONS THAT PROVIDE FINANCIAL SERVICES TO CERTAIN SANCTIONED PERSONS

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