July 28, 2014 sees Congressional Record publish “NORTH KOREA SANCTIONS ENFORCEMENT ACT OF 2014”

Volume 160, No. 119 covering the 2nd Session of the 113th Congress (2013 - 2014) was published by the Congressional Record.

The Congressional Record is a unique source of public documentation. It started in 1873, documenting nearly all the major and minor policies being discussed and debated.

“NORTH KOREA SANCTIONS ENFORCEMENT ACT OF 2014” mentioning the U.S. Dept of State was published in the House of Representatives section on pages H6877-H6886 on July 28, 2014.

The publication is reproduced in full below:

NORTH KOREA SANCTIONS ENFORCEMENT ACT OF 2014

Mr. ROYCE. Mr. Speaker, I move to suspend the rules and pass the bill

(H.R. 1771) to improve the enforcement of sanctions against the Government of North Korea, and for other purposes, as amended.

The Clerk read the title of the bill.

The text of the bill is as follows:

H.R. 1771

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``North Korea Sanctions Enforcement Act of 2014''.

(b) Table of Contents.--The table of contents for this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Findings.

Sec. 3. Definitions.

TITLE I--INVESTIGATIONS, PROHIBITED CONDUCT, AND PENALTIES

Sec. 101. Statement of policy.

Sec. 102. Investigations.

Sec. 103. Briefing to Congress.

Sec. 104. Prohibited conduct and mandatory and discretionary designation and sanctions authorities.

Sec. 105. Forfeiture of property.

TITLE II--SANCTIONS AGAINST NORTH KOREAN PROLIFERATION, HUMAN RIGHTS

ABUSES, AND ILLICIT ACTIVITIES

Sec. 201. Determinations with respect to North Korea as a jurisdiction of primary money laundering concern.

Sec. 202. Ensuring the consistent enforcement of United Nations

Security Council resolutions and financial restrictions on North Korea. Sec. 203. Proliferation prevention sanctions.

Sec. 204. Procurement sanctions.

Sec. 205. Enhanced inspections authorities.

Sec. 206. Travel sanctions.

Sec. 207. Exemptions, waivers, and removals of designation.

Sec. 208. Sense of Congress on enforcement of sanctions on North Korea.

TITLE III--PROMOTION OF HUMAN RIGHTS

Sec. 301. Information technology.

Sec. 302. Report on North Korean prison camps.

Sec. 303. Report on persons who are responsible for serious human rights abuses or censorship in North Korea.

TITLE IV--GENERAL AUTHORITIES

Sec. 401. Suspension of sanctions and other measures.

Sec. 402. Termination of sanctions and other measures.

Sec. 403. Regulations.

Sec. 404. Effective date.

SEC. 2. FINDINGS.

Congress finds the following:

(1) The Government of North Korea has repeatedly violated its commitments to the complete, verifiable, irreversible dismantlement of its nuclear weapons programs, and has willfully violated multiple United Nations Security Council resolutions calling for it to cease its development, testing, and production of weapons of mass destruction.

(2) North Korea poses a grave risk for the proliferation of nuclear weapons and other weapons of mass destruction.

(3) The Government of North Korea has been implicated repeatedly in money laundering and illicit activities, including prohibited arms sales, narcotics trafficking, the counterfeiting of United States currency, and the counterfeiting of intellectual property of United States persons.

(4) The Government of North Korea has, both historically and recently, repeatedly sponsored acts of international terrorism, including attempts to assassinate defectors and human rights activists, repeated threats of violence against foreign persons, leaders, newspapers, and cities, and the shipment of weapons to terrorists.

(5) North Korea has unilaterally withdrawn from the 1953 Armistice Agreement that ended the Korean War, and committed provocations against South Korea in 2010 by sinking the warship Cheonan and killing 46 of her crew, and by shelling Yeonpyeong Island, killing four South Koreans.

(6) North Korea maintains a system of brutal political prison camps that contain as many as 120,000 men, women, and children, who live in atrocious living conditions with insufficient food, clothing, and medical care, and under constant fear of torture or arbitrary execution.

(7) The Congress reaffirms the purposes of the North Korean Human Rights Act of 2004 contained in section 4 of such Act

(22 U.S.C. 7802).

(8) North Korea has prioritized weapons programs and the procurement of luxury goods, in defiance of United Nations Security Council resolutions, and in gross disregard of the needs of its people.

(9) Persons, including financial institutions, who engage in transactions with, or provide financial services to, the Government of North Korea and its financial institutions without establishing sufficient financial safeguards against North Korea's use of these transactions to promote proliferation, weapons trafficking, human rights violations, illicit activity, and the purchase of luxury goods, aid and abet North Korea's misuse of the international financial system, and also violate the intent of relevant United Nations Security Council resolutions.

(10) The Government of North Korea's conduct poses an imminent threat to the security of the United States and its allies, to the global economy, to the safety of members of the United States armed forces, to the integrity of the global financial system, to the integrity of global nonproliferation programs, and to the people of North Korea.

(11) The Congress seeks, through this legislation, to use nonmilitary means to address this crisis, to provide diplomatic leverage to negotiate necessary changes in North Korea's conduct, and to ease the suffering of the people of North Korea.

SEC. 3. DEFINITIONS.

In this Act:

(1) Applicable executive order.--The term ``applicable Executive order'' means--

(A) Executive Order 13382 (2005), 13466 (2008), 13551

(2010), or 13570 (2011), to the extent that such Executive order authorizes the imposition of sanctions on persons for conduct, or prohibits transactions or activities, involving the Government of North Korea; or

(B) any Executive order adopted on or after the date of the enactment of this Act, to the extent that such Executive order authorizes the imposition of sanctions on persons for conduct, or prohibits transactions or activities, involving the Government of North Korea.

(2) Applicable united nations security council resolution.--The term ``applicable United Nations Security Council resolution'' means--

(A) United Nations Security Council Resolution 1695 (2006), 1718 (2006), 1874 (2009), 2087 (2013), or 2094 (2013); or

(B) any United Nations Security Council resolution adopted on or after the date of the enactment of this Act, to the extent that such resolution authorizes the imposition of sanctions on persons for conduct, or prohibits transactions or activities, involving the Government of North Korea.

(3) Appropriate congressional committees.--The term

``appropriate congressional committees'' means--

(A) the Committee on Foreign Affairs, the Committee on Ways and Means, and the Committee on Financial Services of the House of Representatives; and

(B) the Committee on Foreign Relations and the Committee on Banking, Housing, and Urban Affairs of the Senate.

(4) Designated person.--The term ``designated person'' means a person designated under subsection (a) or (b) of section 104 for purposes of applying one or more of the sanctions described in title I or II of this Act with respect to the person.

(5) Government of north korea.--The term ``Government of North Korea'' means--

(A) the Government of the Democratic People's Republic of Korea or any political subdivision, agency, or instrumentality thereof; and

(B) any person owned or controlled by, or acting for or on behalf of, the Government of the Democratic People's Republic of Korea.

(6) International terrorism.--The term ``international terrorism'' has the meaning given such term in section 140(d) of the Foreign Relations Authorization Act, Fiscal Years 1988 and 1989 (22 U.S.C. 2656f(d)).

(7) Luxury goods.--The term ``luxury goods'' has the meaning given such term in subpart 746.4 of title 15, Code of Federal Regulations, and includes the items listed in Supplement No. 1 to such regulation, and any similar items.

(8) Monetary instrument.--The term ``monetary instrument'' has the meaning given such term under section 5312 of title 31, United States Code.

(9) North korean financial institution.--The term ``North Korean financial institution'' means--

(A) a financial institution organized under the laws of North Korea or any jurisdiction within North Korea (including a foreign branch of such institution);

(B) any financial institution located in North Korea, except as may be excluded from such definition by the President in accordance with section 207(d);

(D) any financial institution, wherever located, owned or controlled by a financial institution described in subparagraph (A), (B), or (C).

(10) Other stores of value.--The term ``other stores of value'' means--

(A) prepaid access devices, tangible or intangible prepaid access devices, or other instruments or devices for the storage or transmission of value, as defined in part 1010 of title 31, Code of Federal Regulations; and

(B) any covered goods, as defined in section 1027.100 of title 31, Code of Federal Regulations, and any instrument or tangible or intangible access device used for the storage and transmission of a representation of covered goods, or other device, as defined in section 1027.100 of title 31, Code of Federal Regulations.

(11) Person.--The term ``person'' means--

(A) a natural person;

(B) a corporation, business association, partnership, society, trust, financial institution, insurer, underwriter, guarantor, and any other business organization, any other nongovernmental entity, organization, or group, and any governmental entity operating as a business enterprise; and

(B).

TITLE I--INVESTIGATIONS, PROHIBITED CONDUCT, AND PENALTIES

SEC. 101. STATEMENT OF POLICY.

In order to achieve the peaceful disarmament of North Korea, Congress finds that it is necessary--

(1) to encourage all states to fully and promptly implement United Nations Security Council Resolution 2094 (2013);

(2) to sanction the persons, including financial institutions, that facilitate proliferation, illicit activities, arms trafficking, imports of luxury goods, serious human rights abuses, cash smuggling, and censorship by the Government of North Korea;

(3) to authorize the President to sanction persons who fail to exercise due diligence to ensure that such financial institutions and jurisdictions do not facilitate proliferation, arms trafficking, kleptocracy, and imports of luxury goods by the Government of North Korea;

(4) to deny the Government of North Korea access to the funds it uses to obtain nuclear weapons, ballistic missiles, and luxury goods instead of providing for the needs of its people; and

(5) to enforce sanctions in a manner that avoids any adverse humanitarian impact on the people of North Korea.

SEC. 102. INVESTIGATIONS.

The President shall initiate an investigation into the possible designation of a person under section 104(a) upon receipt by the President of credible information indicating that such person has engaged in conduct described in section 104(a).

SEC. 103. BRIEFING TO CONGRESS.

Not later than 180 days after the date of the enactment of this Act, and periodically thereafter, the President shall provide to the appropriate congressional committees a briefing on efforts to implement this Act, to include the following, to the extent the information is available:

(1) The principal foreign assets and sources of foreign income of the Government of North Korea.

(2) A list of the persons designated under subsections (a) and (b) of section 104.

(3) A list of the persons with respect to which sanctions were waived or removed under section 207.

(4) A summary of any diplomatic efforts made in accordance with section 202(b) and of the progress realized from such efforts, including efforts to encourage the European Union and other states and jurisdictions to sanction and block the assets of the Foreign Trade Bank of North Korea and Daedong Credit Bank.

SEC. 104. PROHIBITED CONDUCT AND MANDATORY AND DISCRETIONARY

DESIGNATION AND SANCTIONS AUTHORITIES.

(a) Prohibited Conduct and Mandatory Designation and Sanctions Authority.--

(1) Conduct described.--Except as provided in section 207, the President shall designate under this subsection any person the President determines to--

(A) have knowingly engaged in significant activities or transactions with the Government of North Korea that have materially contributed to the proliferation of weapons of mass destruction or their means of delivery (including missiles capable of delivering such weapons), including any efforts to manufacture, acquire, possess, develop, transport, transfer, or use such items;

(B) have knowingly imported, exported, or reexported to, into, or from North Korea any arms or related materiel, whether directly or indirectly;

(C) have knowingly provided significant training, advice, or other services or assistance, or engaged in transactions, related to the manufacture, maintenance, or use of any arms or related materiel to be imported, exported, or reexported to, into, or from North Korea, or following their importation, exportation, or reexportation to, into, or from North Korea, whether directly or indirectly;

(D) have knowingly, directly or indirectly, imported, exported, or reexported significant luxury goods to or into North Korea;

(E) have knowingly engaged in or been responsible for censorship by the Government of North Korea, including prohibiting, limiting, or penalizing the exercise of freedom of expression or assembly, limiting access to print or broadcast media, or the facilitation or support of intentional frequency manipulation that would jam or restrict an international signal;

(F) have knowingly engaged in or been responsible for serious human rights abuses by the Government of North Korea, including torture or cruel, inhuman, or degrading treatment or punishment, prolonged detention without charges and trial, causing the disappearance of persons by the abduction and clandestine detention of those persons, and other denial of the right to life, liberty, or the security of a person;

(G) have knowingly, directly or indirectly, engaged in significant acts of money laundering, the counterfeiting of goods or currency, bulk cash smuggling, narcotics trafficking, or other illicit activity that involves or supports the Government of North Korea or any senior official thereof, whether directly or indirectly; or

(H) have knowingly attempted to engage in any of the conduct described in subparagraphs (A) through (G) of this paragraph.

(2) Effect of designation.--With respect to any person designated under this subsection, the President--

(A) shall exercise the authorities of the International Emergency Economic Powers Act (50 U.S.C. 1705 et seq.) without regard to section 202 of such Act to block all property and interests in property of any person designated under this subsection that are in the United States, that hereafter come within the United States, or that are or hereafter come within the possession or control of any United States person, including any overseas branch; and

(B) may apply any of the sanctions described in section 204, 205(c), and 206.

(3) Penalties.--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, attempts to violate, conspires to violate, or causes a violation of any prohibition of this subsection, or of an order or regulation prescribed under this Act, to the same extent that such penalties apply to a person that commits an unlawful act described in section 206(a) of that Act (50 U.S.C. 1705(a)).

(b) Discretionary Designation and Sanctions Authority.--

(1) Conduct described.--Except as provided in section 207, the President may designate under this subsection any person the President determines to--

(A) have knowingly engaged in, contributed to, assisted, sponsored, or provided financial, material or technological support for, or goods and services in support of, any violation of, or evasion of, an applicable United Nations Security Council resolution;

(B) have knowingly facilitated the transfer of any funds, financial assets, or economic resources of, or property or interests in property of a person designated under an applicable Executive order, or by the United Nations Security Council pursuant to an applicable United Nations Security Council resolution;

(C) have knowingly facilitated the transfer of any funds, financial assets, or economic resources, or any property or interests in property derived from, involved in, or that has materially contributed to conduct prohibited by subsection

(a) or an applicable United Nations Security Council resolution;

(D) have knowingly facilitated any transaction that contributes materially to a violation of an applicable United Nations Security Council resolution;

(E) have knowingly facilitated any transactions in cash or monetary instruments or other stores of value, including through cash couriers transiting to or from North Korea, used to facilitate any conduct prohibited by an applicable United Nations Security Council resolution;

(F) have knowingly contributed to the bribery of an official of the Government of North Korea, the misappropriation, theft, or embezzlement of public funds by, or for the benefit of, an official of the Government of North Korea, or the use of any proceeds of any such conduct; or

(G) have knowingly and materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, the conduct described in subparagraphs (A) through (F) of this paragraph or the conduct described in subparagraphs (A) through (G) of subsection (a)(1).

(2) Effect of designation.--With respect to any person designated under this subsection, the President--

(A) may apply the sanctions described in section 204;

(B) may apply any of the special measures described in section 5318A of title 31, United States Code;

(C) may prohibit any transactions in foreign exchange that are subject to the jurisdiction of the United States and in which such person has any interest;

(D) may prohibit any transfers of credit or payments between financial institutions or by, through, or to any financial institution, to the extent that such transfers or payments are subject to the jurisdiction of the United States and involve any interest of the person; and

(E) may exercise the authorities of the International Emergency Economic Powers Act (50 U.S.C. 1705 et seq.) without regard to section 202 of such Act to block any property and interests in property of the person that are in the United States, that hereafter come within the United States, or that are or hereafter come within the possession or control of any United States person, including any overseas branch.

(c) Blocking of All Property and Interests in Property of the Government of North Korea.--The President shall exercise the authorities of the International Emergency Economic Powers Act (50 U.S.C. 1705 et seq.) without regard to section 202 of such Act to block all property and interests in property of the Government of North Korea that are in the United States, that hereafter come within the United States, or that are or hereafter come within the possession or control of any United States person, including any overseas branch.

(d) Application.--The designation of a person and the blocking of property and interests in property under subsection (a), (b), or (c) shall also apply with respect to a person who is determined to be owned or controlled by, or to have acted or purported to act for or on behalf of, directly or indirectly, any person whose property and interests in property are blocked pursuant to this section.

(e) Transaction Licensing.--The President shall deny or revoke any license for any transaction that, in the determination of the President, lacks sufficient financial controls to ensure that such transaction will not facilitate any of the conduct described in subsection (a) or subsection

(b).

SEC. 105. FORFEITURE OF PROPERTY.

(a) Amendment to Property Subject to Forfeiture.--Section 981(a)(1) of title 18, United States Code, is amended by adding at the end the following new subparagraph:

``(I) Any property, real or personal, that is involved in a violation or attempted violation, or which constitutes or is derived from proceeds traceable to a violation, of section 104(a) of the North Korea Sanctions Enforcement Act of 2014.''.

(b) Amendment to Definition of Civil Forfeiture Statute.--Section 983(i)(2)(D) of title 18, United States Code, is amended--

(1) by striking ``or the International Emergency Economic Powers Act'' and inserting ``, the International Emergency Economic Powers Act''; and

(2) by adding at the end before the semicolon the following: ``, or the North Korea Sanctions Enforcement Act of 2014''.

(c) Amendment to Definition of Specified Unlawful Activity.--Section 1956(c)(7)(D) of title 18, United States Code, is amended--

(1) by striking ``or section 92 of the Atomic Energy Act of 1954'' and inserting ``section 92 of the Atomic Energy Act of 1954''; and

(2) by adding at the end the following: ``, or section 104(a) of the North Korea Sanctions Enforcement Act of 2014''.

TITLE II--SANCTIONS AGAINST NORTH KOREAN PROLIFERATION, HUMAN RIGHTS

ABUSES, AND ILLICIT ACTIVITIES

SEC. 201. DETERMINATIONS WITH RESPECT TO NORTH KOREA AS A

JURISDICTION OF PRIMARY MONEY LAUNDERING

CONCERN.

(a) Findings.--Congress makes the following findings:

(1) The Undersecretary of the Treasury for Terrorism and Financial Intelligence, who is responsible for safeguarding the financial system against illicit use, money laundering, terrorist financing, and the proliferation of weapons of mass destruction, has repeatedly expressed concern about North Korea's misuse of the international financial system as follows:

(A) In 2006, the Undersecretary stated that, given North Korea's ``counterfeiting of U.S. currency, narcotics trafficking and use of accounts worldwide to conduct proliferation-related transactions, the line between illicit and licit North Korean money is nearly invisible'' and urged financial institutions worldwide to ``think carefully about the risks of doing any North Korea-related business.''.

(B) In 2011, the Undersecretary stated that ``North Korea remains intent on engaging in proliferation, selling arms as well as bringing in material,'' and was ``aggressively pursuing the effort to establish front companies.''.

(C) In 2013, the Undersecretary stated, in reference to North Korea's distribution of high-quality counterfeit United States currency, that ``North Korea is continuing to try to pass a supernote into the international financial system,'' and that the Department of the Treasury would soon introduce new currency with improved security features to protect against counterfeiting by the Government of North Korea.

(2) The Financial Action Task Force, an intergovernmental body whose purpose is to develop and promote national and international policies to combat money laundering and terrorist financing, has repeatedly--

(A) expressed concern at deficiencies in North Korea's regimes to combat money laundering and terrorist financing;

(B) urged North Korea to adopt a plan of action to address significant deficiencies in these regimes and the serious threat they pose to the integrity of the international financial system;

(C) urged all jurisdictions to apply countermeasures to protect the international financial system from ongoing and substantial money laundering and terrorist financing risks emanating from North Korea;

(D) urged all jurisdictions to advise their financial institutions to give special attention to business relationships and transactions with North Korea, including North Korean companies and financial institutions; and

(E) called on all jurisdictions to protect against correspondent relationships being used to bypass or evade countermeasures and risk mitigation practices, and take into account money laundering and terrorist financing risks when considering requests by North Korean financial institutions to open branches and subsidiaries in their jurisdiction.

(3) On March 7, 2013, the United Nations Security Council unanimously adopted Resolution 2094, which--

(A) welcomed the Financial Action Task Force's recommendation on financial sanctions related to proliferation, and its guidance on the implementation of sanctions;

(B) decided that Member States should apply enhanced monitoring and other legal measures to prevent the provision of financial services or the transfer of property that could contribute to activities prohibited by applicable United Nations Security Council resolutions; and

(C) called on Member States to prohibit North Korean banks from establishing or maintaining correspondent relationships with banks in their jurisdictions, to prevent the provision of financial services, if they have information that provides reasonable grounds to believe that these activities could contribute to activities prohibited by an applicable United Nations Security Council resolution, or to the evasion of such prohibitions.

(b) Sense of Congress Regarding the Designation of North Korea as a Jurisdiction of Primary Money Laundering Concern.--Congress--

(1) acknowledges the efforts of the United Nations Security Council to impose limitations on, and require enhanced monitoring of, transactions involving North Korean financial institutions that could contribute to sanctioned activities;

(2) urges the President, in the strongest terms, to consider immediately designating North Korea as a jurisdiction of primary money laundering concern, and to adopt stringent special measures to safeguard the financial system against the risks posed by North Korea's willful evasion of sanctions and its illicit activities; and

(3) urges the President to seek the prompt implementation by other states of enhanced monitoring and due diligence to prevent North Korea's misuse of the international financial system, including by sharing information about activities, transactions, and property that could contribute to activities sanctioned by applicable United Nations Security Council resolutions, or to the evasion of sanctions.

(1) In general.--The Secretary of the Treasury shall, not later than 180 days after the date of the enactment of this Act, determine, in consultation with the Secretary of State and Attorney General, and in accordance with section 5318A of title 31, United States Code, whether reasonable grounds exist for concluding that North Korea is a jurisdiction of primary money laundering concern.

(2) Enhanced due diligence and reporting requirements.--Except as provided in section 207, if the Secretary of the Treasury determines under this subsection that reasonable grounds exist for finding that North Korea is a jurisdiction of primary money laundering concern, the Secretary of the Treasury, in consultation with the Federal functional regulators, shall impose one or more of the special measures described in paragraphs (1) through (5) of section 5318A(b) of title 31, United States Code, with respect to the jurisdiction of North Korea.

(3) Report required.--

(A) In general.--If the Secretary of the Treasury determines that North Korea is a jurisdiction of primary money laundering concern, the Secretary of the Treasury shall, not later than 90 days after the date on which the Secretary makes such determination, submit to the appropriate congressional committees a report on the determination made under paragraph (1) together with the reasons for that determination.

(B) Form.--A report or copy of any report submitted under this paragraph shall be submitted in unclassified form but may contain a classified annex.

SEC. 202. ENSURING THE CONSISTENT ENFORCEMENT OF UNITED

NATIONS SECURITY COUNCIL RESOLUTIONS AND

FINANCIAL RESTRICTIONS ON NORTH KOREA.

(a) Findings.--Congress finds that--

(1) all states and jurisdictions are obligated to implement and enforce applicable United Nations Security Council resolutions fully and promptly, including by--

(A) blocking the property of, and ensuring that any property is prevented from being made available to, persons designated by the Security Council under applicable United Nations Security Council resolutions;

(B) blocking any property associated with an activity prohibited by applicable United Nations Security Council resolutions; and

(C) preventing any transfer of property and any provision of financial services that could contribute to an activity prohibited by applicable United Nations Security Council resolutions, or to the evasion of sanctions under such resolutions;

(2) all states and jurisdictions share a common interest in protecting the international financial system from the risks of money laundering and illicit transactions emanating from North Korea;

(3) the United States Dollar and the Euro are the world's principal reserve currencies, and the United States and the European Union are primarily responsible for the protection of the international financial system from these risks;

(4) the cooperation of the People's Republic of China, as North Korea's principal trading partner, is essential to the enforcement of applicable United Nations Security Council resolutions and to the protection of the international financial system;

(5) the report of the Panel of Experts established pursuant to United Nations Security Council Resolution 1874, dated June 11, 2013, expressed concern about the ability of banks in states with less effective regulators and those unable to afford effective compliance to detect and prevent illicit transfers involving North Korea;

(6) North Korea has historically exploited inconsistencies between jurisdictions in the interpretation and enforcement of financial regulations and applicable United Nations Security Council resolutions to circumvent sanctions and launder the proceeds of illicit activities;

(7) Amroggang Development Bank, Bank of East Land, and Tanchon Commercial Bank have been designated by the Secretary of the Treasury, the United Nations Security Council, and the European Union;

(8) Korea Daesong Bank and Korea Kwangson Banking Corporation have been designated by the Secretary of the Treasury and the European Union;

(9) the Foreign Trade Bank of North Korea has been designated by the Secretary of the Treasury for facilitating transactions on behalf of persons linked to its proliferation network, and for serving as ``a key financial node''; and

(10) Daedong Credit Bank has been designated by the Secretary of the Treasury for activities prohibited by applicable United Nations Security Council resolutions, including the use of deceptive financial practices to facilitate transactions on behalf of persons linked to North Korea's proliferation network.

(b) Sense of Congress.--It is the sense of Congress that the President should intensify diplomatic efforts, both in appropriate international fora such as the United Nations and bilaterally, to develop and implement a coordinated, consistent, multilateral strategy for protecting the global financial system against risks emanating from North Korea, including--

(1) the cessation of any financial services whose continuation is inconsistent with applicable United Nations Security Council resolutions;

(2) the cessation of any financial services to persons, including financial institutions, that present unacceptable risks of facilitating money laundering and illicit activity by the Government of North Korea;

(3) the blocking by all states and jurisdictions, in accordance with the legal process of the state or jurisdiction in which the property is held, of any property required to be blocked under applicable United Nations Security Council resolutions; and

(4) the blocking of any property derived from illicit activity, or from the misappropriation, theft, or embezzlement of public funds by, or for the benefit of, officials of the Government of North Korea.

SEC. 203. PROLIFERATION PREVENTION SANCTIONS.

(a) Export of Certain Goods or Technology.--

(1) In general.--Subject to section 207(a)(2)(C) of this Act, a license shall be required for the export to North Korea of any goods or technology subject to the Export Administration Regulations (part 730 of title 15, Code of Federal Regulations) without regard to whether the Secretary of State has designated North Korea as a country the government of which has provided support for acts of international terrorism, as determined by the Secretary of State under section 6(j) of the Export Administration Act of 1979 (50 U.S.C. App. 2045), as continued in effect under the International Emergency Economic Powers Act.

(2) Presumption of denial.--A license for the export to North Korea of any goods or technology as described in paragraph (1) shall be subject to a presumption of denial.

(b) Transactions With Countries Supporting Acts of International Terrorism.--The prohibitions and restrictions described in section 40 of the Arms Export Control Act (22 U.S.C. 2780), and other provisions in that Act, shall also apply to exporting or otherwise providing (by sale, lease or loan, grant, or other means), directly or indirectly, any munitions item to the Government of North Korea without regard to whether or not North Korea is a country with respect to which subsection (d) of such section (relating to designation of state sponsors of terrorism) applies.

(1) In general.--The President shall withhold assistance under the Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.) to any country that provides lethal military equipment to, or receives lethal military equipment from, the Government of North Korea.

(2) Applicability.--The prohibition under this subsection with respect to a country shall terminate on the date that is 1 year after the date on which such country ceases to provide lethal military equipment to the Government of North Korea.

(3) Waiver.--The President may waive the prohibition under this subsection with respect to a country if the President determines that it is in the national interest of the United States to do so.

SEC. 204. PROCUREMENT SANCTIONS.

(a) In General.--Except as provided in this section, the United States Government may not procure, or enter into any contract for the procurement of, any goods or services from any designated person.

(b) FAR.--The Federal Acquisition Regulation issued pursuant to section 1303 of title 41, United States Code, shall be revised to require a certification from each person that is a prospective contractor that such person does not engage in any of the conduct described in section 104(a). Such revision shall apply with respect to contracts in an amount greater than the simplified acquisition threshold (as defined in section 134 of title 41, United States Code) for which solicitations are issued on or after the date that is 90 days after the date of the enactment of this Act.

(1) Termination of contracts.--Except as provided in paragraph (2), the head of an executive agency shall terminate a contract with a person who has provided a false certification under subsection (b).

(2) Waiver.--The head of an executive agency may waive the requirement under paragraph (1) with respect to a person based upon a written finding of urgent and compelling circumstances significantly affecting the interests of the United States. If the head of an executive agency waives the requirement under paragraph (1) for a person, the head of the agency shall submit to the appropriate congressional committees, within 30 days after the waiver is made, a report containing the rationale for the waiver and relevant information supporting the waiver decision.

(3) Initiation of suspension and debarment proceeding.--The head of an executive agency shall initiate a suspension and debarment proceeding against a person who has provided a false certification under subsection (b). Upon determination of suspension, debarment, or proposed debarment, the agency shall ensure that such person is entered into the Government-wide database containing the list of all excluded parties ineligible for Federal programs pursuant to Executive Order 12549 (31 U.S.C. 6101 note; relating to debarment and suspension) and Executive Order 12689 (31 U.S.C. 6101 note; relating to debarment and suspension).

(d) Clarification Regarding Certain Products.--The remedies specified in subsections (a) through (c) shall not apply with respect to the procurement of eligible products, as defined in section 308(4) of the Trade Agreements Act of 1979 (19 U.S.C. 2518(4)), of any foreign country or instrumentality designated under section 301(b) of such Act (19 U.S.C. 2511(b)).

(e) Rule of Construction.--Nothing in this subsection may be construed to limit the use of other remedies available to the head of an executive agency or any other official of the Federal Government on the basis of a determination of a false certification under subsection (b).

(f) Executive Agency Defined.--In this section, the term

``executive agency'' has the meaning given such term in section 133 of title 41, United States Code.

SEC. 205. ENHANCED INSPECTIONS AUTHORITIES.

(a) Report Required.--Not later than 180 days after the date of the enactment of this Act, and every 180 days thereafter, the President, acting through the Secretary of Homeland Security, shall submit to the appropriate congressional committees, the Committee on Homeland Security of the House of Representatives, and the Committee on Homeland Security and Governmental Affairs of the Senate, a report identifying foreign sea ports and airports whose inspections of ships, aircraft, and conveyances originating in North Korea, carrying North Korean property, or operated by the Government of North Korea are deficient to effectively prevent the facilitation of any of the activities described in section 104(a).

(b) Enhanced Security Targeting Requirements.--Not later than 180 days after the identification of any sea port or airport pursuant to subsection (a), the Secretary of Homeland Security shall, utilizing the Automated Targeting System operated by the National Targeting Center in U.S. Customs and Border Protection, require enhanced screening procedures to determine if physical inspections are warranted of any cargo bound for or landed in the United States that has been transported through such sea port or airport if there are reasonable grounds to believe that such cargo contains goods prohibited under this Act.

(c) Seizure and Forfeiture.--A vessel, aircraft, or conveyance used to facilitate any of the activities described in section 104(a) that comes within the jurisdiction of the United States may be seized and forfeited under chapter 46 of title 18, United States Code, or under the Tariff Act of 1930.

SEC. 206. TRAVEL SANCTIONS.

(a) Aliens Ineligible for Visas, Admission, or Parole.--

(1) Visas, admission, or parole.--An alien (or an alien who is a corporate officer of a person (as defined in subparagraph (B) or (C) of section 3(11)) who the Secretary of State or the Secretary of Homeland Security (or a designee of one of such Secretaries) knows, or has reasonable grounds to believe, is described in subsection (a)(1) or (b)(1) of section 104 is--

(A) inadmissible to the United States;

(B) ineligible to receive a visa or other documentation to enter the United States; and

(C) otherwise ineligible to be admitted or paroled into the United States or to receive any other benefit under the Immigration and Nationality Act (8 U.S.C. 1101 et seq.).

(2) Current visas revoked.--

(A) In general.--The issuing consular officer, the Secretary of State, or the Secretary of Homeland Security (or a designee of one of such Secretaries) shall revoke any visa or other entry documentation issued to an alien who is described in subsection (a)(1) or (b)(1) of section 104 regardless of when issued.

(B) Effect of revocation.--A revocation under subparagraph

(A)--

(i) shall take effect immediately; and

(ii) shall automatically cancel any other valid visa or entry documentation that is in the alien's possession.

(b) Exception to Comply With United Nations Headquarters Agreement.--Sanctions under subsection (a)(1)(B) shall not apply to an alien if admitting the alien into the United States is necessary to permit the United States to comply with the Agreement regarding the Headquarters of the United Nations, signed at Lake Success June 26, 1947, and entered into force November 21, 1947, between the United Nations and the United States, or other applicable international obligations.

SEC. 207. EXEMPTIONS, WAIVERS, AND REMOVALS OF DESIGNATION.

(a) Exemptions.--

(1) Mandatory exemptions.--The following activities shall be exempt from sanctions under section 104:

(A) Activities subject to the reporting requirements of title V of the National Security Act of 1947 (50 U.S.C. 413 et seq.), or to any authorized intelligence activities of the United States.

(B) Any transaction necessary to comply with United States obligations under the Agreement between the United Nations and the United States of America regarding the Headquarters of the United Nations, signed June 26, 1947, and entered into force on November 21, 1947, or under the Vienna Convention on Consular Relations, signed April 24, 1963, and entered into force on March 19, 1967, or under other international agreements.

(2) Discretionary exemptions.--The following activities may be exempt from sanctions under section 104 as determined by the President:

(A) Any financial transaction the exclusive purpose for which is to provide humanitarian assistance to the people of North Korea.

(B) Any financial transaction the exclusive purpose for which is to import food products into North Korea, if such food items are not defined as luxury goods.

(C) Any transaction the exclusive purpose for which is to import agricultural products, medicine, or medical devices into North Korea, provided that such supplies or equipment are classified as designated ``EAR 99'' under the Export Administration Regulations (part 730 of title 15, Code of Federal Regulations) and not controlled under--

(i) the Export Administration Act of 1979 (50 U.S.C. App. 2401 et seq.), as continued in effect under the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.);

(ii) the Arms Export Control Act (22 U.S.C. 2751 et seq.);

(iii) part B of title VIII of the Nuclear Proliferation Prevention Act of 1994 (22 U.S.C. 6301 et seq.); or

(iv) the Chemical and Biological Weapons Control and Warfare Elimination Act of 1991 (22 U.S.C. 5601 et seq.).

(b) Waiver.--The President may waive, on a case-by-case basis, the imposition of sanctions for a period of not more than one year, and may renew that waiver for additional periods of not more than one year, any sanction or other measure under section 104, 204, 205, 206, or 303 if the President submits to the appropriate congressional committees a written determination that the waiver meets one or more of the following requirements:

(1) The waiver is important to the economic or national security interests of the United States.

(2) The waiver will further the enforcement of this Act or is for an important law enforcement purpose.

(3) The waiver is for an important humanitarian purpose, including any of the purposes described in section 4 of the North Korean Human Rights Act of 2004 (22 U.S.C. 7802).

(c) Removals of Sanctions.--The President may prescribe rules and regulations for the removal of sanctions on a person that is designated under subsection (a) or (b) of section 104 and the removal of designations of a person with respect to such sanctions if the President determines that the designated person has verifiably ceased its participation in any of the conduct described in subsection (a) or (b) of section 104, as the case may be, and has given assurances that it will abide by the requirements of this Act.

(d) Financial Services for Certain Activities.--The President may promulgate regulations, rules, and policies as may be necessary to facilitate the provision of financial services by a foreign financial institution that is not controlled by the Government of North Korea in support of the activities subject to exemption under this section.

SEC. 208. SENSE OF CONGRESS ON ENFORCEMENT OF SANCTIONS ON

NORTH KOREA.

(a) Findings.--Congress finds the following:

(1) On March 6, 2014, pursuant to United Nations Security Council Resolution 1874, a Panel of Experts issued a report assessing the enforcement of existing sanctions on North Korea. The Panel reported that North Korea continues to

``trade in arms and related materiel in violation of the resolutions'' and that ``there is no question that it is one of the country's most profitable revenue sources''.

(2) The Panel of Experts found that North Korea ``presents a stiff challenge to Member States'' through ``multiple and tiered circumvention techniques'' and ``is experienced in actions it takes to evade sanctions''.

(b) Sense of Congress.--It is the sense of Congress that the United States should work to increase the capacity of responsible nations to implement United Nations Security Council Resolutions 1695, 1718, 1874, 2087, and 2094, including to strengthen the capacity of responsible nations to monitor and interdict shipments to and from North Korea that contribute to prohibited activities under such Resolutions.

TITLE III--PROMOTION OF HUMAN RIGHTS

SEC. 301. INFORMATION TECHNOLOGY.

Section 104 of the North Korean Human Rights Act of 2004

(22 U.S.C. 7814) is amended by inserting after subsection (c) the following new subsection:

``(d) Information Technology Study.--Not later than 180 days after the date of the enactment of this subsection, the President shall submit to the appropriate congressional committees a classified report setting forth a detailed plan for making unrestricted, unmonitored, and inexpensive electronic mass communications available to the people of North Korea.''.

SEC. 302. REPORT ON NORTH KOREAN PRISON CAMPS.

(a) In General.--The Secretary of State shall submit to the appropriate congressional committees a report describing, with respect to each political prison camp in North Korea to the extent information is available--

(1) the camp's estimated prisoner population;

(2) the camp's geographical coordinates;

(3) the reasons for confinement of the prisoners;

(4) the camp's primary industries and products, and the end users of any goods produced in such camp;

(5) the natural persons and agencies responsible for conditions in the camp;

(6) the conditions under which prisoners are confined, with respect to the adequacy of food, shelter, medical care, working conditions, and reports of ill-treatment of prisoners; and

(7) imagery, to include satellite imagery of each such camp, in a format that, if published, would not compromise the sources and methods used by the intelligence agencies of the United States to capture geospatial imagery.

(b) Form.--The report required under subsection (a) may be included in the first report required to be submitted to Congress after the date of the enactment of this Act under sections 116(d) and 502B(b) of the Foreign Assistance Act of 1961 (22 U.S.C. 2151n(d) and 2304(b)) (relating to the annual human rights report).

SEC. 303. REPORT ON PERSONS WHO ARE RESPONSIBLE FOR SERIOUS

HUMAN RIGHTS ABUSES OR CENSORSHIP IN NORTH

KOREA.

(a) In General.--The Secretary of State shall submit to the appropriate congressional committees a report that contains an identification of each person the Secretary determines to be responsible for serious human rights abuses or censorship in North Korea and a description of such abuses or censorship engaged in by such person.

(b) Consideration.--In preparing the report required under subsection (a), the Secretary of State shall give due consideration to the findings of the United Nations Commission of Inquiry on Human Rights in North Korea, and shall make specific findings with respect to the responsibility of Kim Jong Un, and of each natural person who is a member of the National Defense Commission of North Korea, or the Organization and Guidance Department of the Workers' Party of Korea, for serious human rights abuses and censorship.

(c) Designation of Persons.--The President shall designate under section 104(a) any person listed in the report required under subsection (a) as responsible for serious human rights abuses or censorship in North Korea.

(d) Submission and Form.--

(1) Submission.--The report required under subsection (a) shall be submitted not later than 90 days after the date of the enactment of this Act, and every 180 days thereafter for a period not to exceed 3 years, shall be included in each report required under sections 116(d) and 502B(b) of the Foreign Assistance Act of 1961 (22 U.S.C. 2151n(d) and 2304(b)) (relating to the annual human rights report).

(2) Form.--The report required under subsection (a) shall be submitted in unclassified form, but may include a classified annex. The Secretary of State shall also publish the unclassified part of the report on the Department of State's website.

TITLE IV--GENERAL AUTHORITIES

SEC. 401. SUSPENSION OF SANCTIONS AND OTHER MEASURES.

(a) In General.--Any sanction or other measure required by title I, II, or III of this Act (or any amendment made by title I, II, or III of this Act) may be suspended for up to 365 days upon certification by the President to the appropriate congressional committees that the Government of North Korea has--

(1) verifiably ceased its counterfeiting of United States currency, including the surrender or destruction of specialized materials and equipment used for or particularly suitable for counterfeiting;

(2) taken significant steps toward financial transparency to comply with generally accepted protocols to cease and prevent the laundering of monetary instruments;

(3) taken significant steps toward verification of its compliance with United Nations Security Council Resolutions 1695, 1718, 1874, 2087, and 2094;

(4) taken significant steps toward accounting for and repatriating the citizens of other countries abducted or unlawfully held captive by the Government of North Korea or detained in violation of the 1953 Armistice Agreement;

(5) accepted and begun to abide by internationally recognized standards for the distribution and monitoring of humanitarian aid;

(6) provided credible assurances that it will not support further acts of international terrorism;

(7) taken significant and verified steps to improve living conditions in its political prison camps; and

(8) made significant progress in planning for unrestricted family reunification meetings, including for those individuals among the two million strong Korean-American community who maintain family ties with relatives in North Korea.

(b) Renewal of Suspension.--The suspension described in subsection (a) may be renewed for additional consecutive periods of 180 days upon certification by the President to the appropriate congressional committees that the Government of North Korea has continued to comply with the conditions described in subsection (a) during the previous year.

SEC. 402. TERMINATION OF SANCTIONS AND OTHER MEASURES.

Any sanction or other measure required by title I, II, or III of this Act (or any amendment made by title I, II, or III of this Act) shall terminate on the date on which the President determines and certifies to the appropriate congressional committees that the Government of North Korea has met the requirements of section 401, and has also--

(1) completely, verifiably, and irreversibly dismantled 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;

(2) released all political prisoners, including the citizens of North Korea detained in North Korea's political prison camps;

(3) ceased its censorship of peaceful political activity;

(4) taken significant steps toward the establishment of an open, transparent, and representative society;

(5) fully accounted for and repatriated all citizens of all nations abducted or unlawfully held captive by the Government of North Korea or detained in violation of the 1953 Armistice Agreement; and

(6) agreed with the Financial Action Task Force on a plan of action to address deficiencies in its anti-money laundering regime and begun to implement this plan of action.

SEC. 403. REGULATIONS.

(a) In General.--The President is authorized to promulgate such rules and regulations as may be necessary to carry out the provisions of this Act (which may include regulatory exceptions), including under section 205 of the International Emergency Economic Powers Act (50 U.S.C. 1704).

(b) Rule of Construction.--Nothing in this Act or any amendment made by this Act shall be construed to limit the authority of the President pursuant to an applicable Executive order or otherwise pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.).

SEC. 404. EFFECTIVE DATE.

Except as otherwise provided in this Act, this Act and the amendments made by this Act shall take effect on the date of the enactment of this Act.

SEC. 405. OFFSET.

Section 102(a) of the Enhanced Partnership with Pakistan Act of 2009 (Public Law 111-73; 22 U.S.C. 8412(a)) is amended by striking ``$1,500,000,000'' and inserting

``$1,490,000,000''.

The SPEAKER pro tempore. Pursuant to the rule, the gentleman from California (Mr. Royce) and the gentleman from Virginia (Mr. Connolly) each will control 20 minutes.

The Chair recognizes the gentleman from California.

General Leave

Mr. ROYCE. Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days to revise and extend their remarks and to include any extraneous materials in the Record.

The SPEAKER pro tempore. Is there objection to the request of the gentleman from California?

There was no objection.

Mr. ROYCE. Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, North Korea, which is one of the nuclear proliferators on this planet in having proliferated missiles to Iran and in having proliferated to Syria the construction some years ago of a site in order to create nuclear weapons, this particular regime remains today one of the most significant national security threats that we face. It is an enduring threat to us and our allies in northeast Asia. It is an enduring threat not just because of that proliferation but also because of the attitude of the regime there. Frankly, America's policy over the last 25 years, whether we are talking about a Republican administration or a Democrat administration, has been a bipartisan failure for that whole period of time.

This year marks the 20th anniversary of the Clinton administration's agreed framework, the first in a long line of failed agreements in which North Korea holds out the promise of cooperation, only to game the negotiations for more time and more incentives and uses that opportunity to continue to expand its nuclear program.

{time} 1530

Today, we are no closer to the goal of disarming those nukes than we were in 1994. The only difference is there is a whole lot more of them.

Meanwhile, North Korea continues to make progress on its nuclear weapons program, conducting three tests in recent years. It has actively worked on intercontinental ballistic missile technology to deliver a three-stage ICBM.

To underscore the threats that we face, let us not forget that, in 2007, a North Korean-built nuclear reactor was destroyed in Syria along the banks of the Euphrates River.

Mr. Speaker, we need a new approach, frankly, to North Korea, and it is time for Congress to lead. Recent events around the world underscore the foolishness of inaction. We need a clear framework for sanctions to deprive Kim Jong Un of his ability to build nuclear weapons and to repress and abuse the North Korean people. The way a regime treats its own people will tell you a lot in life about how they may end up treating their neighbors.

The North Korea Sanctions Enforcement Act seeks to apply the same type of pressure that the Treasury Department used back in 2005 when it caught the regime counterfeiting hundred-dollar bills. Treasury, at that time, targeted the bank in Macao that was complicit in counterfeiting with North Korea. This action sent a ripple throughout the international financial system, and it seriously hindered North Korea's finances. This was one of the most effective steps in 20 years that we took against North Korea.

I can tell you some of the results because we have talked with defectors afterwards about what they had seen in terms of the fact that productions had closed. The regime could not pay their own generals, and that is not a good position for dictators to be in. Unfortunately, though, the sanctions were lifted by the State Department in the naive hope that the North Koreans would negotiate away their nuclear program.

It is time to open our eyes. This legislation enables our government to go after Kim Jong Un's illicit activities, just like we went after organized crime in our own country, by interdicting shipments and disrupting the flow of money, stopping the hard currency, the very hard currency he utilizes for his weapons program.

These sanctions target North Korea's money laundering, their counterfeiting, their narcotics trafficking operation. The only way we can stop North Korea is cutting off its access to this hard currency, to stop Kim Jong Un from being able to pay his generals or conduct research on nuclear weapons.

Critically, the North Korea Sanctions Enforcement Act also includes the basis imposing sanctions based on North Korea's deplorable human rights abuses. By directly targeting individuals in positions of power, we will finally hold North Korea responsible for the torture, the gulags, the extrajudicial killings that were recently exposed by that high-level UN inquiry, one of the first of its kind.

For far too long, the world has turned a blind eye to human rights abuses in North Korea. By supporting this bill, we will take a critical step toward stopping this type of abuse.

This bipartisan piece of legislation, by the way, has over 140 cosponsors. It has garnered the support of humanitarian groups around the world. And I note that humanitarian aid is in no way affected by this legislation.

Again, humanitarian societies worldwide support this, and I urge my colleagues to support the bill.

Mr. Speaker, I reserve the balance of my time.

House of Representatives,

Committee on the Judiciary,

Washington, DC, July 23, 2014.Hon. Ed Royce,Chairman, Committee on Foreign Affairs,Rayburn House Office Building, Washington, DC.

Dear Chairman Royce, I am writing with respect to H.R. 1771, the ``North Korea Sanctions Enforcement Act,'' which the Committee on Foreign Affairs ordered reported favorably on May 29, 2014. As a result of your having consulted with us on provisions in H.R. 1771 that fall within the Rule X jurisdiction of the Committee on the Judiciary, I agree to discharge our Committee from further consideration of this bill so that it may proceed expeditiously to the House floor for consideration.

The Judiciary Committee takes this action with our mutual understanding that by foregoing consideration of H.R. 1771 at this time, we do not waive any jurisdiction over subject matter contained in this or similar legislation, and that our Committee will be appropriately consulted and involved as this bill or similar legislation moves forward so that we may address any remaining issues in our jurisdiction. Our Committee also reserves the right to seek appointment of an appropriate number of conferees to any House-Senate conference involving this or similar legislation, and asks that you support any such request.

I would appreciate a response to this letter confirming this understanding with respect to H.R. 1771, and would ask that a copy of our exchange of letters on this matter be included in the Congressional Record during Floor consideration of H.R. 1771.

Sincerely,

Bob Goodlatte,Chairman.

____

House of Representatives,

Committee on Foreign Affairs,

Washington, DC, July 25, 2014.Hon. Bob Goodlatte,Chairman, Committee on the Judiciary, Rayburn House Office

Building, Washington, DC.

Dear Chairman Goodlatte: Thank you for consulting with the Committee on Foreign Affairs on H.R. 1771, the North Korea Sanctions Enforcement Act, and for agreeing to be discharged from further consideration of that bill so that it may proceed expeditiously to the House Floor. The suspension text contains edits to portions of the bill within the Rule X jurisdiction of your committee that were worked out in consultation with your staff.

I agree that your forgoing further action on this measure does not in any way diminish or alter the jurisdiction of the Committee on the Judiciary, or prejudice its jurisdictional prerogatives on this bill or similar legislation in the future. I would support your effort to seek appointment of an appropriate number of conferees to any House-Senate conference involving this legislation.

I will seek to place our letters on H.R. 1771 into the Congressional Record during floor consideration of the bill. I appreciate your cooperation regarding this legislation and look forward to continuing to work with your Committee as this measure moves through the legislative process.

Sincerely,

Edward R. Royce,Chairman.

____

House of Representatives,

Committee on Ways and Means,

Washington, DC, July 24, 2014.Hon. Edward R. Royce,Chairman, Committee on Foreign Affairs, Rayburn House Office

Building, Washington, DC.

Dear Chairman Royce: I am writing concerning H.R. 1771, the

``North Korea Sanctions Enforcement Act of 2014,'' which was favorably reported out of your Committee on May 29, 2014.

Given that certain provisions in the bill are within the jurisdiction of the Committee on Ways and Means, I appreciate that you have addressed these provisions in response to the Committee's concerns. As a result, in order to expedite floor consideration of the bill, the Committee on Ways and Means will forgo action on H.R. 1771. Further, the Committee will not oppose the bill's consideration on the suspension calendar, based on our understanding that you will work with us as the legislative process moves forward to ensure that our concerns continue to be addressed. This is also being done with the understanding that it does not in any way prejudice the Committee with respect to the appointment of conferees or its jurisdictional prerogatives on this or similar legislation.

I would appreciate your response to this letter, confirming this understanding with respect to H.R. 1771, and would ask that a copy of our exchange of letters on this matter be included in the Congressional Record during Floor consideration.

Sincerely,

Dave Camp,Chairman.

____

House of Representatives,

Committee on Foreign Affairs,

Washington, DC, July 25, 2014.Hon. Dave Camp,Chairman, Committee on Ways and Means, Longworth House Office

Building, Washington, DC.

Dear Chairman Camp: Thank you for consulting with the Committee on Foreign Affairs on H.R. 1771, the North Korea Sanctions Enforcement Act, and for agreeing to be discharged from further consideration of that bill so that it may proceed expeditiously to the House Floor. The suspension text contains edits to portions of the bill within the rule X jurisdiction of your committee that were worked out in consultation with your staff.

I agree that your forgoing further action on this measure does not in any way diminish or alter the jurisdiction of the Committee on Ways and Means, or prejudice its jurisdictional prerogatives on this bill or similar legislation in the future. I would support your effort to seek appointment of an appropriate number of conferees to any House-Senate conference involving this legislation.

Sincerely,

Edward R. Royce,Chairman.

____

House of Representatives,

Committee on Foreign Affairs,

Washington, DC, July 25, 2014.Hon. Jeb Hensarling,Chairman, Committee on Financial Services, Rayburn House

Office Building, Washington, DC.

Dear Chairman Hensarling: Thank you for consulting with the Committee on Foreign Affairs on H.R. 1771, the North Korea Sanctions Enforcement Act, and for agreeing to be discharged from further consideration of that bill so that it may proceed expeditiously to the House Floor. The suspension text contains edits to portions of the bill within the Rule X jurisdiction of your committee that were worked out in consultation with your staff.

I agree that your forgoing further action on this measure does not in any way diminish or alter the jurisdiction of the Committee on Financial Services, or prejudice its jurisdictional prerogatives on this bill or similar legislation in the future. I would support your effort to seek appointment of an appropriate number of conferees to any House-Senate conference involving this legislation.

Sincerely,

Edward R. Royce,Chairman.

____

House of Representatives,

Committee on Financial Services,

Washington, DC, July 28, 2014.Hon. Edward R. Royce,Chairman, House Committee on Foreign Affairs, Rayburn House

Office Building, Washington, DC.

Dear Chairman Royce: On May 29, 2014, the Committee on Foreign Affairs ordered H.R. 1771, the North Korea Sanctions Enforcement Act of 2013, to be reported favorably to the House with an amendment. As a result of your having consulted with the Committee on Financial Services concerning provisions of the bill that fall within our Rule X jurisdiction, I agree to discharge our committee from further consideration of the bill so that it may proceed expeditiously to the House Floor.

The Committee on Financial Services takes this action with our mutual understanding that by foregoing consideration of H.R. 1771, as amended, at this time, we do not waive any jurisdiction over the subject matter contained in this or similar legislation, and that our committee will be appropriately consulted and involved as the bill or similar legislation moves forward so that we may address any remaining issues that fall within our Rule X jurisdiction. Our committee also reserves the right to seek appointment of an appropriate number of conferees to any House-Senate conference involving this or similar legislation, and requests your support for any such request.

Finally, I appreciate your July 25 letter anticipating this letter memorializing this understanding with respect to H.R. 1771, as amended. I would further appreciate your inclusion of a copy of our exchange of letters on this matter be included in your committee's report to accompany the legislation and in the Congressional Record during floor consideration thereof.

Sincerely,

Jeb Hensarling,Chairman.

____

House of Representatives,

Committee on Foreign Affairs,

Washington, DC, July 25, 2014.Hon. Darrell Issa,Chairman, Committee on Oversight and Government Reform,

Rayburn House Office Building, Washington, DC.

Dear Chairman Issa: Thank you for consulting with the Committee on Foreign Affairs on H.R. 1771, the North Korea Sanctions Enforcement Act, and for agreeing to be discharged from further consideration of that bill so that it may proceed expeditiously to the House Floor. The suspension text contains edits to portions of the bill within the Rule X jurisdiction of your committee that were worked out in consultation with your staff.

I agree that your forgoing further action on this measure does not in any way diminish or alter the jurisdiction of the Committee on Oversight and Government Reform, or prejudice its jurisdictional prerogatives on this bill or similar legislation in the future. I would support your effort to seek appointment of an appropriate number of conferees to any House-Senate conference involving this legislation.

Sincerely,

Edward R. Royce,Chairman.

____

House of Representatives,

Committee on Oversight and Government Reform,

Washington, DC, July 28, 2014.Hon. Edward R. Royce,Chairman, Committee on Foreign Affairs, House of

Representatives, Washington, DC.

Dear Mr. Chairman: I am writing concerning H.R. 1771, the

``North Korea Sanctions Enforcement Act of 2013.''

H.R. 1771 contains provisions within the Committee on Oversight and Government Reform's rule X jurisdiction. As a result of your having consulted with the Committee and in order to expedite this bill for floor consideration, the Committee on Oversight and Government Reform will forego action on the bill. This is being done on the basis of our mutual understanding that doing so will in no way diminish or alter the jurisdiction of the Committee on Oversight and Government Reform with respect to the appointment of conferees, or to any future jurisdictional claim over the subject matters contained in the bill or similar legislation.

I would appreciate your response to this letter confirming this understanding, and would request that you include a copy of this letter and your response in the Congressional Record during the floor consideration of this bill. Thank you in advance for your cooperation.

Sincerely,

Darrell Issa,

Chairman.

____

House of Representatives,

Committee on Foreign Affairs,

Ford House Office Building,

Washington, DC, July 25, 2014.Hon. Michael McCaul,Chairman, Committee on Homeland Security, Washington, DC.

Dear Chairman McCaul: Thank you for consulting with the Committee on Foreign Affairs on H.R. 1771, the North Korea Sanctions Enforcement Act, and for agreeing to forgo a sequential referral request so that the bill may proceed expeditiously to the Floor.

I agree that your forgoing further action on this measure does not in any way diminish or alter the jurisdiction of the Committee on Homeland Security, or prejudice its jurisdictional prerogatives on this bill or similar legislation in the future.

I will seek to place our letters on H.R. 1771 into our Committee Report and into the Congressional Record during floor consideration of the bill. I appreciate your cooperation regarding this legislation and look forward to continuing to work with your Committee as this measure moves through the legislative process.

Sincerely,

Edward R. Royce,Chairman.

____

House of Representatives,

Committee on Homeland Security,

Washington, DC, July 28, 2014.Hon. Ed Royce,Chairman, Committee on Foreign Affairs, Rayburn House Office

Building, Washington, DC.

Dear Chairman Royce: I am writing concerning H.R. 1771, the

``North Korea Sanctions Enforcement Act,'' which your Committee ordered reported on May 29, 2014.

As a result of your having consulted with the Committee on Homeland Security on provisions in our jurisdiction and in an effort to expedite the House's consideration of H.R. 1771, the Committee on Homeland Security will not assert a jurisdictional claim over this bill by seeking a sequential referral. However, this is conditional upon our mutual understanding and agreement that doing so will in no way diminish or alter the jurisdiction of the Committee on Homeland Security with respect to the appointment of conferees or to any future jurisdictional claim over the subject matter contained in this bill or similar legislation.

I request that you include a copy of this letter and your response in the Congressional Record during floor consideration of this bill. Thank you for your attention to this matter.

Sincerely,

Michael T. McCaul,

Chairman.

Mr. CONNOLLY. Mr. Speaker, I rise today in the strongest support of H.R. 1771, the North Korea Sanctions Enforcement Act of 2014.

I yield myself such time as I may consume.

I also want to thank the distinguished chairman. He and I had a conversation several months ago where I encouraged that we put this on the schedule, the agenda, for a markup on the House Foreign Affairs Committee, and he did so with alacrity, and I really appreciate his consideration and leadership.

This legislation, which I am pleased to have cosponsored, provides us with the opportunity to communicate that the House of Representatives is resolved to hold the Orwellian North Korean regime accountable for unspeakable brutality against its own people and the erratic and dangerous manner in which it conducts itself on the world stage.

The bill imposes the first comprehensive sanctions on the North Korea regime, and those in other countries, who abet its arms smuggling, weapons of mass destruction and ballistic missile development, human rights abuses, and terrorism support.

It imposes asset freezes and seizures and visa denials on persons who materially contribute to North Korea's WMD missile development and proliferation, as well as its human rights abuses and support for terrorism.

H.R. 1771 requires the Treasury Department to determine if North Korea is engaged in money laundering, and, if so, it blocks any entity from access to the entire United States financial system if it conducts direct or indirect transactions with North Korea's banks.

It also requires a public report identifying North Korean human rights violators and political prison camps. It calls for a feasibility study of providing North Korean nationals with Internet communication devices that can overcome the incredible censorship in that country.

Mr. Speaker, these sanctions are warranted. North Korea is a reckless international actor that has amassed a litany of violations and abuses of international law that one would think belong in a fictional novel. It continues to develop nuclear weapons programs in defiance of the Security Council and worldwide condemnation.

North Korea supports the development of Iranian missile technology and nuclear capabilities. Hamas and Hezbollah, both designated foreign terrorist organizations by the United States Government, receive missile technology and training from the North Korea regime that they have used to attack Israel, an ally of the United States.

The Security Council at the United Nations' resolutions deterring missile tests and launches are routinely flouted. It is clear that a pattern of behavior has developed in North Korea that should be concerning to all in the international community, not just this body.

The U.S. will not and cannot allow an authoritarian regime to operate with impunity and threaten our national security and that of our allies.

Of course, the United States and the international community should not only address the aggression North Korea has projected outward. The atrocities committed within the borders of North Korea are, of course, of equal concern and deserve similar condemnation.

The status of human rights seems to have regressed under Kim Jong Un, if that is at all possible. A recent United Nations report recounts in horrifying detail the ``offenses'' which land individuals in labor camps, including the misspelling of Kim Jong Il. Deplorable conditions persist in the nation's system of gulags that reports say contain as many as 200,000 prisoners.

People seeking refuge from the oppressive regime must disregard public executions used to intimidate the populace and brave a ``shoot to kill'' set of orders levied against citizens who are simply attempting to make a living somewhere else. Family reunifications between South Korean families and their loved ones on the other side of the DMZ remain limited to fleeting reunions.

I really want to thank Chairman Royce and our committee staff on both sides for working with us on an amendment that makes the suspension of sanctions in this legislation conditional on North Korea making significant progress in planning for unrestricted family reunification meetings, including for those individuals among the 2 million strong Korean American community who still have relatives in North Korea.

Pyongyang must pay, and the lives of North Koreans must be improved.

I applaud this legislation for levying extensive sanctions against bad actors in the North Korean saga while recognizing the urgency of humanitarian, medical, and food assistance for North Korea's citizens. Rest assured that no such reprieve is offered by the regime in Pyongyang.

Again, I commend my colleagues, the chairman, and the ranking member of our committee for finding, once again, common ground on the North Korea sanctions issue and for taking decisive action against this despotic regime.

Mr. Speaker, we have no further speakers on this side.

I urge passage of this legislation. I think it can send a very important message to our allies and to our foes and to, especially, the North Korea regime itself. I think the timing is right.

Mr. Speaker, I yield back the balance of my time.

Mr. ROYCE. Mr. Speaker, for far too long the world has ignored the significant human rights abuses that occur almost every single day in North Korea. Increasingly, as people escape, we begin to get some sense of what life is like for the hundreds of thousands that live in these concentration camps.

By turning a blind eye to what is going on in North Korea, we, and the rest of the world, risk missing an opportunity to hold the Kim regime responsible for its terrible crimes against humanity. This legislation is a chance to hold them responsible for those crimes against their own people. We have an opportunity here to cut off the hard currency that goes right to the leadership in this regime. They depend on that hard currency.

Earlier this year, the U.N. Commission of Inquiry laid out the most damning case against North Korea. Internationally, communities were shocked by the revelations in this Commission of Inquiry.

As chairman of the Foreign Affairs Committee, I have met with a number of North Korean defectors and refugees over the years. I have heard their stories. We have had some of them testify here in the House of Representatives. I have seen North Korea with my own eyes. I have seen the malnutrition engineered by the regime, while the money goes into their nuclear arms program and their military buildup.

Listen. The message from the defectors and the survivors are remarkably similar. What they tell us is: please help us. By supporting H.R. 1771, we send an unmistakable message that the United States will no longer tolerate a regime that tortures and kills its own people. We will not tolerate, either, nuclear weapons and unchecked proliferation being developed with the hard currency that this regime gets its hands on by violating international law and being involved in the type of smuggling and illegal activities that they are involved in.

North Korea is, undoubtedly, one of the most significant security threats that we here face and our allies face, and I urge my colleagues to support this legislation.

Mr. Speaker, I yield back the balance of my time.

The SPEAKER pro tempore. The question is on the motion offered by the gentleman from California (Mr. Royce) that the House suspend the rules and pass the bill, H.R. 1771, as amended.

The question was taken; and (two-thirds being in the affirmative) the rules were suspended and the bill, as amended, was passed.

A motion to reconsider was laid on the table.

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SOURCE: Congressional Record Vol. 160, No. 119