H.R. 757 – North Korea Sanctions and Policy Enhancement Act
Noteworthy
Background: The House passed its version of this bill by a vote of 418-2 on January 12, 2016. On January 28, the Senate Foreign Relations Committee passed its version of this bill out of committee by voice vote, without recorded opposition.
Floor Situation: Pursuant to a unanimous consent agreement, the Senate will consider this bill on Wednesday, February 10. Upon the use or yielding back of time, the committee-reported substitute amendment, which is covered in this notice, will be agreed to and the Senate will vote on final passage. The agreement does not provide for the consideration of amendments.
Executive Summary: North Korean state behavior presents a wide-ranging spectrum of threats to the United States. The country is developing weapons of mass destruction specifically directed at threatening the U.S. homeland, as evidenced most recently by its nuclear weapon test early last month. This bill is directed at requiring more aggressive implementation of sanctions to deprive the regime of the resources it needs to engage in such threatening behavior.
Overview of the Issue
Although there is no comprehensive trade embargo specific to North Korea, there are many issue bases in law for the application of sanctions against North Korea. Sanctions have been imposed on North Korea for its proliferation activities, form of government, narcotics trafficking, and other illicit activities. This has the effect of making U.S. trade with North Korea minimal, mostly limited to humanitarian-type goods. China is, by far, North Korea’s largest trading partner.
Earlier this month, North Korea conducted at least its fourth nuclear weapon test. It has also conducted multiple separate tests of missile technology specifically directed at threatening the U.S. homeland. In March 2010, it sank a warship of ally South Korea, causing the murder of the 46 sailors aboard. North Korea has abused the international financial system with money laundering practices, even printing counterfeit U.S. currency. Its threatening activities in cyberspace are increasing, as evidenced by its hack of Sony Entertainment. Its human rights practices are a humanitarian catastrophe.
Considerations on the Bill
This bill is directed at addressing these North Korea threats in a comprehensive manner. A more aggressive implementation of sanctions against North Korea would go further toward depriving it of the resources necessary to develop weapons of mass destruction and to carry out other aggressive behavior. Some of the measures in this bill are specifically directed at North Korea’s illicit financial activities.
Notable Bill Provisions
Title I – Investigations, Prohibited Conduct, and Penalties
Section 102 – Investigations of potential sanctionable activity
Directs the president to investigate the possible sanctions designation of someone upon receipt of credible information indicating that person has engaged in sanctionable activity.
Section 104 – Sanctions designations/describing sanctionable activity
Directs the president to sanction any person determined to engage in trade with North Korea of certain weapons of mass destruction technology, luxury goods, or precious metals. People responsible for serious human rights abuses, engaging in money laundering, counterfeiting currency, bulk cash smuggling, or undermining cybersecurity are also to be sanctioned. Directs the president to block the property and assets of any designated person, the North Korean government, or the Workers’ Party of Korea. Waiver authority is provided in section 208.
Title II – Sanctions Against North Korean Proliferation, Human Rights Abuses, and Illicit Activities
Section 201 – Primary money laundering concern
Directs the secretary of the Treasury to determine within 180 days whether reasonable grounds exist to conclude North Korea is a jurisdiction of primary money laundering concern. If it is determined such grounds do exist, this section directs the secretary to impose at least one special measure in response. Urges the president in the strongest possible terms to designate North Korea as a jurisdiction of primary money laundering concern. When such a designation is made, the government has broad and substantial authority to take “special measures” under Patriot Act section 311 to address a designated entity’s illicit behavior within the financial system.
Section 203 – Proliferation prevention sanctions
Requires the president to withhold foreign assistance to any country providing lethal military equipment to North Korea. Waiver authority is provided, along with exceptions for assistance related to humanitarian and democratization efforts.
Section 208 – Waiver authority and clarifications
Authorizes the president to waive sanctions for humanitarian, national security, or law enforcement purposes. To use the humanitarian waiver, the president must, among other things, describe the controls employed to ensure activities are for humanitarian assistance or purposes. It further provides that an internationally recognized humanitarian organization shall not be subject to sanctions for certain trade or financial transactions.
Section 209 – Cybersecurity
Requires a report describing significant activities undermining U.S. cybersecurity conducted by North Korea, including identifying people engaging in such conduct. It then reiterates that the president is to designate for sanctions any such person pursuant to section 104.
Section 210 – Codifying cybersecurity sanctions authority
Provides that sanctions imposed under Executive Orders 13687 or 13694 on North Korean people for their malicious actions undermining cybersecurity shall remain in effect until 30 days after the president certifies such people are no longer engaged in such illicit activities. This includes involvement in actions violating certain named U.N. Security Council Resolutions. Executive Order 13687 authorized sanctions on any person determined to be an entity or official of the North Korean government or Workers’ Party of North Korea, or to have provided material assistance to any such person.
Title III – Promotion of human rights
The sections of this title require reports on a strategy to address the human rights situation in North Korea, on North Korean prison camps, and identifying each person determined to be responsible for serious human rights abuses in North Korea. Section 304 reiterates the president is to designate for sanctions pursuant to section 104 any person responsible for serious human rights abuses in North Korea.
Title IV – General Authorities
Section 401 – Conditions for suspending sanctions
Authorizes up to a one-year suspension of sanctions required under this bill if the president certifies North Korea has made progress toward meeting certain goals, such as steps toward compliance with applicable U.N. Security Council resolutions.
Section 402 – Conditions for terminating sanctions
Authorizes the termination of sanctions required under this bill if the president certifies North Korea has taken certain actions, such as making significant progress toward verifiably dismantling all WMD programs, releasing all political prisoners, ceasing censorship of peaceful political activity, establishing an open society, and fully accounting for U.S. citizens unlawfully held captive by North Korea.
Section 403 – Authorization of appropriations
Authorizes to be appropriated $10 million each year for fiscal years 2017-2021 to carry out the purposes of the North Korea Human Rights Act.
Administration Position
There is no statement of administration policy on either the House or Senate version of this bill.
Cost
There is no CBO score for this bill.
Amendments
No amendments will be in order during consideration of this bill.