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Congressional Record—House H8099

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Congressional Record—House H8099 October 24, 2017 CONGRESSIONAL RECORD — HOUSE H8099 Mr. BARR. Mr. Speaker, I have no (D) North Korea generated at least $270 (22 U.S.C. 286 et seq.) is amended by adding further requests at this time, and I million during the reporting period through at the end the following: yield back the balance of my time. the violation of sectoral sanctions. ‘‘SEC. 73. OPPOSITION TO ASSISTANCE FOR ANY (5) North Korean entities engage in signifi- GOVERNMENT THAT FAILS TO IM- The SPEAKER pro tempore. The PLEMENT SANCTIONS ON NORTH question is on the motion offered by cant financial transactions through foreign bank accounts that are maintained by non- KOREA. the gentleman from Kentucky (Mr. North Korean nationals, thereby masking ‘‘(a) IN GENERAL.—The Secretary of the BARR) that the House suspend the rules account users’ identity in order to access fi- Treasury shall instruct the United States Executive Director at the international fi- and pass the bill, H.R. 3972, as amend- nancial services. nancial institutions (as defined under section ed. (6) North Korea’s sixth nuclear test on Sep- 1701(c) of the International Financial Insti- The question was taken; and (two- tember 3, 2017, demonstrated an estimated tutions Act) to use the voice and vote of the explosive power more than 100 times greater thirds being in the affirmative) the United States to oppose the provision of fi- rules were suspended and the bill, as than that generated by its first nuclear test nancial assistance to a foreign government, amended, was passed. in 2006. other than assistance to support basic A motion to reconsider was laid on (7) North Korea has successfully tested human needs, if the President determines submarine-launched and intercontinental the table. that, in the year preceding consideration of ballistic missiles, and is rapidly progressing approval of such assistance, the government f in its development of a nuclear-armed mis- has knowingly failed to prevent the provi- OTTO WARMBIER NORTH KOREA sile that is capable of reaching United States sion of financial services to, or freeze the NUCLEAR SANCTIONS ACT territory. funds, financial assets, and economic re- SEC. 3. CONDITIONS WITH RESPECT TO CERTAIN sources of, a person described under subpara- Mr. BARR. Mr. Speaker, I move to ACCOUNTS AND TRANSACTIONS AT graphs (A) through (E) of section 7(2) of the suspend the rules and pass the bill UNITED STATES FINANCIAL INSTITU- Otto Warmbier North Korea Nuclear Sanc- (H.R. 3898) to require the Secretary of TIONS. tions Act. (a) CORRESPONDENT AND PAYABLE-THROUGH ‘‘(b) WAIVER.—The President may waive the Treasury to place conditions on ACCOUNTS HELD BY FOREIGN FINANCIAL INSTI- certain accounts at United States fi- subsection (a) for up to 180 days at a time TUTIONS.— with respect to a foreign government if the nancial institutions with respect to (1) IN GENERAL.—Not later than 45 days President reports to Congress that— North Korea, and for other purposes, as after the date of the enactment of this Act, ‘‘(1) the foreign government’s failure de- amended. the Secretary of the Treasury shall prescribe scribed under (a) is due exclusively to a lack The Clerk read the title of the bill. regulations to prohibit, or impose strict con- of foreign government capacity; The text of the bill is as follows: ditions on, the opening or maintaining in the ‘‘(2) the foreign government is taking ef- H.R. 3898 United States of a correspondent account or fective steps to prevent recurrence of such a payable-through account by a foreign fi- Be it enacted by the Senate and House of Rep- failure; or nancial institution that the Secretary finds resentatives of the United States of America in ‘‘(3) such waiver is vital to the national se- knowingly facilitates a significant trans- Congress assembled, curity interests of the United States.’’. action or transactions or provides significant (b) EXPORT-IMPORT BANK.—Section 2(b) of SECTION 1. SHORT TITLE. financial services for a covered person. This Act may be cited as the ‘‘Otto the Export-Import Bank Act of 1945 (12 (2) PENALTIES.— U.S.C. 635(b)) is amended by adding at the Warmbier North Korea Nuclear Sanctions (A) CIVIL PENALTY.—A person who violates, end the following: Act’’. attempts to violate, conspires to violate, or ‘‘(14) PROHIBITION ON SUPPORT INVOLVING SEC. 2. FINDINGS. causes a violation of regulations prescribed PERSONS CONNECTED WITH NORTH KOREA.—The The Congress finds the following: under this subsection shall be subject to a Bank may not guarantee, insure, or extend (1) On June 1, 2016, the Department of the civil penalty in an amount not to exceed the credit, or participate in the extension of Treasury’s Financial Crimes Enforcement greater of— credit in connection with the export of a Network announced a Notice of Finding that (i) $250,000; or good or service to a covered person (as de- the Democratic People’s Republic of Korea is (ii) an amount that is twice the amount of fined under section 7 of the Otto Warmbier a jurisdiction of primary money laundering the transaction that is the basis of the viola- North Korea Nuclear Sanctions Act).’’. concern due to its use of state-controlled fi- tion with respect to which the penalty is im- SEC. 5. TREASURY REPORTS ON COMPLIANCE, nancial institutions and front companies to posed. PENALTIES, AND TECHNICAL AS- support the proliferation and development of (B) CRIMINAL PENALTY.—A person who will- SISTANCE. weapons of mass destruction (WMD) and bal- fully commits, willfully attempts to commit, (a) QUARTERLY REPORT.— listic missiles. or willfully conspires to commit, or aids or (1) IN GENERAL.—Not later than 120 days (2) The Financial Action Task Force abets in the commission of, a violation of following the date of the enactment of this (FATF) has expressed serious concerns with regulations prescribed under this subsection Act, and every 90 days thereafter, the Sec- the threat posed by North Korea’s prolifera- shall, upon conviction, be fined not more retary of the Treasury shall submit a report tion and financing of WMD, and has called on than $1,000,000, or if a natural person, may be to the Committee on Financial Services of FATF members to apply effective counter- imprisoned for not more than 20 years, or the House of Representatives and the Com- measures to protect their financial sectors both. mittee on Banking, Housing, and Urban Af- from North Korean money laundering, WMD (b) RESTRICTIONS ON CERTAIN TRANSACTIONS fairs of the Senate that includes— proliferation financing, and the financing of BY UNITED STATES FINANCIAL INSTITUTIONS.— (A) a list of financial institutions that, in terrorism. (1) IN GENERAL.—Not later than 45 days the period since the preceding report, know- (3) In its February 2017 report, the U.N. after the date of the enactment of this Act, ingly facilitated a significant transaction or Panel of Experts concluded that— the Secretary of the Treasury shall prescribe transactions or provided significant finan- (A) North Korea continued to access the regulations to prohibit a United States fi- cial services for a covered person, or failed to international financial system in support of nancial institution, and any person owned or apply appropriate due diligence to prevent illicit activities despite sanctions imposed controlled by a United States financial insti- such activities; by U.N. Security Council Resolutions 2270 tution, from knowingly engaging in a signifi- (B) a list of any penalties imposed under (2016) and 2321 (2016); cant transaction or transactions with or ben- section 3 in the period since the preceding re- (B) during the reporting period, no member efitting any person that the Secretary finds port; and state had reported taking actions to freeze to be a covered person. (C) a description of efforts by the Depart- North Korean assets; and (2) CIVIL PENALTY.—A person who violates, ment of the Treasury in the period since the (C) sanctions evasion by North Korea, com- attempts to violate, conspires to violate, or preceding report, through consultations, bined with inadequate compliance by mem- causes a violation of regulations prescribed technical assistance, or other appropriate ac- ber states, had significantly negated the im- under this subsection shall be subject to a tivities, to strengthen the capacity of finan- pact of U.N. Security Council resolutions. civil penalty in an amount not to exceed the cial institutions and foreign governments to (4) In its September 2017 report, the U.N. greater of— prevent the provision of financial services Panel of Experts found that— (A) $250,000; or benefitting any covered person. (A) North Korea continued to violate fi- (B) an amount that is twice the amount of (2) FORM OF REPORT; PUBLIC AVAILABILITY.— nancial sanctions by using agents acting the transaction that is the basis of the viola- (A) FORM.—The report required under para- abroad on the country’s behalf; tion with respect to which the penalty is im- graph (1) shall be submitted in unclassified (B) foreign financial institutions provided posed. form but may contain a classified annex. correspondent banking services to North Ko- SEC. 4. OPPOSITION TO ASSISTANCE BY THE (B) PUBLIC AVAILABILITY.—The unclassified rean persons and front companies for illicit INTERNATIONAL FINANCIAL INSTI- portion of such report shall be made avail- purposes; TUTIONS AND THE EXPORT-IMPORT able to the public and posted on the website (C) foreign companies violated sanctions BANK. of the Department of the Treasury. by maintaining links with North Korean fi- (a) INTERNATIONAL
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