S.Amdt. 1062

SA 1062. Mr. VAN HOLLEN (for himself and Mr. Toomey) submitted an
amendment intended to be proposed by him to the bill H.R. 2810, to
authorize appropriations for fiscal year 2018 for military activities
of the Department of Defense, for military construction, and for
defense activities of the Department of Energy, to prescribe military
personnel strengths for such fiscal year, and for other purposes; which
was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

Subtitle __--Sanctions With Respect to North Korea

SEC. __01. SHORT TITLE.

This subtitle may be cited as the ``Banking Restrictions
Involving North Korea (BRINK) Act of 2017''.

SEC. __02. FINDINGS.

Congress finds the following:
(1) Since 2006, the United Nations Security Council has
approved 5 resolutions imposing sanctions against North Korea
under chapter VII of the United Nations Charter, which--
(A) prohibit the use, development, and proliferation of
weapons of mass destruction by the Government of North Korea;
(B) prohibit the transfer of arms and related materiel to
or by the Government of North Korea;
(C) prohibit the transfer of luxury goods to North Korea;
(D) restrict access by the Government of North Korea to the
financial system and require due diligence on the part of
financial institutions to prevent the financing of
proliferation involving the Government of North Korea;
(E) restrict North Korean shipping, including the
reflagging of ships owned or controlled by the Government of
North Korea;
(F) limit the sale by the Government of North Korea of
precious metals, iron, coal, vanadium, and rare earth
minerals; and
(G) prohibit the transfer to North Korea of rocket,
aviation, or jet fuel.
(2) The Government of North Korea has threatened to carry
out nuclear attacks against the United States and South Korea
and has sent clandestine agents to kidnap or murder the
citizens of foreign countries and murder dissidents in exile.
(3) The Federal Bureau of Investigation has determined that
the Government of North Korea was responsible for
cyberattacks against the United States and South Korea.
(4) In February 2016, the Director of National Intelligence
reported that the Government of North Korea is ``committed to
developing a long-range, nuclear-armed missile that is
capable of posing a direct threat to the United States'' and
some arms control experts have estimated that the Government
of North Korea may acquire this capability by 2020.
(5) The Government of North Korea tested its 5th and
largest nuclear device on September 9, 2016.
(6) The Government of North Korea has increased the pace of
its missile testing, including the test of a submarine-
launched ballistic missile, potentially furthering the
development of capability to attack the United States with a
nuclear weapon.
(7) Financial transactions and investments that provide
financial resources to the Government of North Korea, and
that fail to incorporate adequate safeguards against the
misuse of those financial resources, pose an undue risk of
contributing to--
(A) weapons of mass destruction programs of that
Government; and
(B) prohibited imports or exports of arms and related
materiel, services, or technology by that Government.
(8) The strict enforcement of sanctions is essential to the
efforts by the international community to achieve the
peaceful, complete, verifiable, and irreversible
dismantlement of weapons of mass destruction programs of the
Government of North Korea.

SEC. __03. DEFINITIONS.

In this subtitle:
(1) Applicable executive order; applicable united nations
security council resolution; government of north korea; north
korea.--The terms ``applicable Executive order'',
``applicable United Nations Security Council resolution'',
``Government of North Korea'', and ``North Korea'' have the
meanings given those terms in section 3 of the North Korea
Sanctions and Policy Enhancement Act of 2016 (22 U.S.C.
9202).
(2) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Banking, Housing, and Urban Affairs
and the Committee on Foreign Relations of the Senate; and
(B) the Committee on Financial Services and the Committee
on Foreign Affairs of the House of Representatives.
(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.
(4) North korean covered property.--
(A) In general.--The term ``North Korean covered property''
includes any goods, services, or technology--
(i) that are in North Korea;
(ii) that are made with significant amounts of North Korean
labor, materials, goods, or technology;
(iii) in which the Government of North Korea or a North
Korean financial institution has a significant interest or
exercises significant control; or
(iv) in which a designated person has a significant
interest or exercises significant control.
(B) Designated person.--In this paragraph, the term
designated person means a person who is designated under--
(i) an applicable executive order;
(ii) an applicable United Nations Security Council
resolution; or

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(iii) section 104 of the North Korea Sanctions and Policy
Enhancement Act of 2016 (22 U.S.C. 9204).
(5) North korean financial institution.--The term ``North
Korean financial institution'' includes--
(A) any North Korean financial institution, as defined in
section 3 of the North Korea Sanctions and Policy Enhancement
Act of 2016 (22 U.S.C. 9202);
(B) any financial agency, as defined in section 5312 of
title 31, United States Code, that is owned or controlled by
the Government of North Korea;
(C) any money transmitting business, as defined in section
5330(d) of title 31, United States Code, that is owned or
controlled by the Government of North Korea; and
(D) any financial institution that is a joint venture
between any person and the Government of North Korea.
(6) Secretary.--Unless otherwise specified, the term
``Secretary'' means the Secretary of the Treasury.
(7) United states financial institution.--The term ``United
States financial institution'' means a financial institution
that--
(A) is a United States person, regardless of where the
person operates; or
(B) operates or does business in the United States,
including by conducting wire transfers through correspondent
banks in the United States.
(8) United states person.--The term ``United States
person'' means--
(A) a citizen or resident of the United States or a
national of the United States (as defined in section 101(a)
of the Immigration and Nationality Act (8 U.S.C. 1101(a));
and
(B) an entity that is organized under the laws of the
United States or any jurisdiction within the United States,
including a foreign subsidiary of such an entity.

PART I--FINANCIAL REQUIREMENTS AND SANCTIONS RELATING TO TRANSACTIONS
INVOLVING NORTH KOREA

SEC. __11. SANCTIONS WITH RESPECT TO FINANCIAL INSTITUTIONS
PROVIDING SUPPORT TO THE GOVERNMENT OF NORTH
KOREA.

(a) In General.--Section 201A of the North Korea Sanctions
and Policy Enhancement Act of 2016 (22 U.S.C. 9221a) is
amended to read as follows:

``SEC. 201A. SANCTIONS WITH RESPECT TO FINANCIAL INSTITUTIONS
PROVIDING SUPPORT TO THE GOVERNMENT OF NORTH
KOREA.

``(a) Report on Noncompliant Financial Institutions.--
``(1) In general.--Not later than 60 days after the date of
the enactment of the Banking Restrictions Involving North
Korea (BRINK) Act of 2017, and every 180 days thereafter, the
President shall submit to the appropriate congressional
committees and publish in the Federal Register a report that
contains a list of any financial institutions that the
President has identified as having engaged in, during the
one-year period preceding the submission of the report, the
following conduct:
``(A) Dealing in North Korean covered property.
``(B) Providing correspondent or interbank services to one
or more North Korean financial institutions.
``(C) Failing to apply enhanced due diligence to prevent
North Korean financial institutions from gaining access to
correspondent or interbank services in the United States or
provided by United States persons.
``(D) Knowingly operating or participating with or on
behalf of an offshore United States dollar clearing system
that conducts transactions involving the Government of North
Korea or North Korean covered property.
``(E) Conducting or facilitating one or more significant
transactions in North Korean covered property involving
covered goods (as that term is defined in section 1027.100 of
title 31, Code of Federal Regulations, or any successor
regulation) or the currency of a country other than the
country in which the person is operating at the time of the
transaction.
``(2) Form of report.--Each report required under paragraph
(1) shall be submitted in unclassified form but may contain a
classified annex.
``(b) Imposition of Sanctions and Penalties.--If the
President determines that a financial institution identified
under subsection (a) has knowingly engaged in conduct
described in that subsection, the President shall apply one
or more of the following with respect to that financial
institution:
``(1) Prohibit the opening, and prohibit or impose strict
conditions on the maintaining, in the United States of any
correspondent account or payable-through account by the
financial institution if the financial institution is a
foreign financial institution.
``(2) In accordance with the International Emergency
Economic Powers Act (50 U.S.C. 1701 et seq.), block and
prohibit all transactions in all property and interests in
property of the financial institution if such property and
interests in property are in the United States, come within
the United States, or are or come within the possession or
control of a United States person.
``(3) In the case of a United States financial
institution--
``(A) if the financial institution has taken reasonable
steps to prevent a recurrence of conduct described in that
subsection and is cooperating fully with the efforts of the
President to enforce the provisions of this Act and the
Banking Restrictions Involving North Korea (BRINK) Act of
2017--
``(i) unless the financial institution is described in
clause (ii), the imposition of a civil penalty not to exceed
$100,000 for each reportable act described in subparagraphs
(A) through (E) of subsection (a)(1) that is knowingly
conducted; or
``(ii) if the financial institution has not previously been
reported for similar conduct under subsection (a), the
issuance of a cautionary letter to that financial
institution; or
``(B) if the financial institution is not a financial
institution described in subparagraph (A), for each
reportable act described in subparagraphs (A) through (E) of
subsection (a)(1) that is knowingly conducted, the imposition
of a civil penalty not to exceed the greater of--
``(i) $250,000; or
``(ii) an amount that is twice the amount of the
transaction that is the basis of the reportable act with
respect to which the penalty is imposed.
``(c) Suspension for Law Enforcement Purposes.--The
President may suspend the submission of the reports described
in subsection (a) and the application of sanctions and
penalties described in subsection (b) for a one-year period
if--
``(1) such reporting and application of sanctions and
penalties could compromise an ongoing law enforcement
investigation or prosecution; or
``(2) a criminal prosecution is pending, or a criminal or
civil fine or penalty has been imposed or conditionally
deferred, for the conduct reported pursuant to subsection
(a).
``(d) Suspension and Termination of Sanctions and
Penalties.--
``(1) Suspension.--The President may suspend the
application of any sanctions or penalties under subsection
(b) for a period of not more than one year if the President
certifies to the appropriate congressional committees that
the Government of North Korea is taking steps toward--
``(A) the verification of its compliance with applicable
United Nations Security Council Resolutions; and
``(B) fully accounting for and repatriating United States
citizens and permanent residents (including deceased United
States citizens and permanent residents)--
``(i) abducted or unlawfully held captive by the Government
of North Korea; or
``(ii) detained in violation of the Agreement Concerning a
Military Armistice in Korea, signed at Panmunjom July 27,
1953 (commonly referred to as the `Korean War Armistice
Agreement').
``(2) Renewal of suspension.--The President may renew a
suspension described in paragraph (1) for additional periods
of not more than 180 days if the President certifies to the
appropriate congressional committees that the Government of
North Korea continues to take steps as described in paragraph
(1).
``(3) Termination of sanctions.--Subject to subsection (f),
the President may terminate the application of any sanctions
or penalties under subsection (b) if the President certifies
that the Government of North Korea has made significant
progress towards--
``(A) completely, verifiably, and irreversibly dismantling
all of its nuclear, chemical, biological, and radiological
weapons programs, including all programs for the development
of systems designed in whole or in part for the delivery of
such weapons; and
``(B) fully accounting for and repatriating United States
citizens and permanent residents (including deceased United
States citizens and permanent residents)--
``(i) abducted or unlawfully held captive by the Government
of North Korea; or
``(ii) detained in violation of the Agreement Concerning a
Military Armistice in Korea, signed at Panmunjom July 27,
1953 (commonly referred to as the `Korean War Armistice
Agreement').
``(e) Waiver.--Subject to subsection (f), the President may
waive the application of sanctions or penalties under
subsection (b) with respect to a financial institution if the
President determines that the waiver is in the national
security interest of the United States.
``(f) Congressional Review of Proposed Actions to Waive or
Terminate Sanctions.--
``(1) Submission to congress of proposed action.--
``(A) In general.--Notwithstanding any other provision of
law, before taking any action described in subparagraph (B),
the President shall submit to the appropriate congressional
committees and leadership a report that describes the
proposed action and the reasons for that action.
``(B) Actions described.--An action described in this
subparagraph is--
``(i) an action to suspend, renew a suspension, or
terminate under subsection (d) the application of sanctions
or penalties under subsection (b); or
``(ii) with respect to sanctions or penalties under
subsection (b) imposed by the President with respect to a
person, an action to waive under subsection (e) the
application of those sanctions or penalties with respect to
that person.
``(C) Description of type of action.--Each report submitted
under subparagraph (A) with respect to an action described in
subparagraph (B) shall include a description of whether the
action--
``(i) is not intended to significantly alter United States
foreign policy with regard to North Korea; or

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``(ii) is intended to significantly alter United States
foreign policy with regard to North Korea.
``(D) Inclusion of additional matter.--
``(i) In general.--Each report submitted under subparagraph
(A) that relates to an action that is intended to
significantly alter United States foreign policy with regard
to North Korea shall include a description of--

``(I) the significant alteration to United States foreign
policy with regard to North Korea;
``(II) the anticipated effect of the action on the national
security interests of the United States; and
``(III) the policy objectives for which the sanctions
affected by the action were initially imposed.

``(ii) Requests from banking and financial services
committees.--The Committee on Banking, Housing, and Urban
Affairs of the Senate or the Committee on Financial Services
of the House of Representatives may request the submission to
the Committee of the matter described in subclauses (II) and
(III) of clause (i) with respect to a report submitted under
subparagraph (A) that relates to an action that is not
intended to significantly alter United States foreign policy
with regard to North Korea.
``(2) Period for review by congress.--
``(A) In general.--During the period of 30 calendar days
beginning on the date on which the President submits a report
under paragraph (1)(A)--
``(i) in the case of a report that relates to an action
that is not intended to significantly alter United States
foreign policy with regard to North Korea, the Committee on
Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of
Representatives should, as appropriate, hold hearings and
briefings and otherwise obtain information in order to fully
review the report; and
``(ii) in the case of a report that relates to an action
that is intended to significantly alter United States foreign
policy with regard to North Korea, the Committee on Foreign
Relations of the Senate and the Committee on Foreign Affairs
of the House of Representatives should, as appropriate, hold
hearings and briefings and otherwise obtain information in
order to fully review the report.
``(B) Exception.--The period for congressional review under
subparagraph (A) of a report required to be submitted under
paragraph (1)(A) shall be 60 calendar days if the report is
submitted on or after July 10 and on or before September 7 in
any calendar year.
``(C) Limitation on actions during initial congressional
review period.--Notwithstanding any other provision of law,
during the period for congressional review provided for under
subparagraph (A) of a report submitted under paragraph (1)(A)
proposing an action described in paragraph (1)(B), including
any additional period for such review as applicable under the
exception provided in subparagraph (B), the President may not
take that action unless a joint resolution of approval with
respect to that action is enacted in accordance with
paragraph (3).
``(D) Limitation on actions during presidential
consideration of a joint resolution of disapproval.--
Notwithstanding any other provision of law, if a joint
resolution of disapproval relating to a report submitted
under paragraph (1)(A) proposing an action described in
paragraph (1)(B) passes both Houses of Congress in accordance
with paragraph (3), the President may not take that action
for a period of 12 calendar days after the date of passage of
the joint resolution of disapproval.
``(E) Limitation on actions during congressional
reconsideration of a joint resolution of disapproval.--
Notwithstanding any other provision of law, if a joint
resolution of disapproval relating to a report submitted
under paragraph (1)(A) proposing an action described in
paragraph (1)(B) passes both Houses of Congress in accordance
with paragraph (3), and the President vetoes the joint
resolution, the President may not take that action for a
period of 10 calendar days after the date of the President's
veto.
``(F) Effect of enactment of a joint resolution of
disapproval.--Notwithstanding any other provision of law, if
a joint resolution of disapproval relating to a report
submitted under paragraph (1)(A) proposing an action
described in paragraph (1)(B) is enacted in accordance with
paragraph (3), the President may not take that action.
``(3) Joint resolutions of disapproval or approval.--
``(A) Joint resolutions of disapproval or approval
defined.--In this paragraph:
``(i) Joint resolution of approval.--The term `joint
resolution of approval' means only a joint resolution of
either House of Congress--

``(I) the title of which is as follows: `A joint resolution
approving the President's proposal to take an action relating
to the application of certain sanctions with respect to North
Korea.'; and
``(II) the sole matter after the resolving clause of which
is the following: `Congress approves of the action relating
to the application of sanctions imposed with respect to North
Korea proposed by the President in the report submitted to
Congress under section 201A(f)(1)(A) of the North Korea
Sanctions and Policy Enhancement Act of 2016 on _______