22 U.S.C. § 9222 — Ensuring the consistent enforcement of

Page 2203 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 9222 that such penalty applies to a person that com- mits an unlawful act described in section 206(a) of that Act if an entity owned or controlled by the United States financial institution and es- tablished or maintained outside the United States violates, attempts to violate, conspires to violate, or causes a violation of any order or regulation issued to implement subsection (a). (d) United States financial institution defined In this section, the term ‘‘United States finan- cial institution’’ has the meaning given the term ‘‘U.S. financial institution’’ in section 510.328 of title 31, Code of Federal Regulations (or any corresponding similar regulation or rul- ing). (Pub. L. 114–122, title II, § 201C, as added Pub. L. 116–92, div. F, title LXXI, § 7121(a), Dec. 20, 2019, 133 Stat. 2246.) Editorial Notes REFERENCES IN TEXT The International Emergency Economic Powers Act, referred to in subsec. (b), is title II of Pub. L. 95–223, Dec. 28, 1977, 91 Stat. 1626, which is classified generally to chapter 35 (§ 1701 et seq.) of Title 50, War and Na- tional Defense. For complete classification of this Act to the Code, see Short Title note set out under section 1701 of Title 50 and Tables. § 9222. Ensuring the consistent enforcement of United Nations Security Council resolutions and financial restrictions on North Korea (a) Findings Congress makes the following findings: (1) All member states of the United Nations are obligated to implement and enforce appli- cable United Nations Security Council resolu- tions fully and promptly, including by block- ing the property of, and ensuring that any property is prevented from being made avail- able to, persons designated for the blocking of property by the Security Council under appli- cable United Nations Security Council resolu- tions. (2) As of May 2015, 158 of the 193 member states of the United Nations had not sub- mitted reports on measures taken to imple- ment North Korea-specific United Nations Se- curity Council resolutions 1718, 1874, and 2094. (3) A recent report by the Government Ac- countability Office (GAO–15–485)— (A) finds that officials of the United States and representatives of the United Nations Panel of Experts established pursuant to United Nations Security Council Resolution 1874 (2009), which monitors and facilitates implementation of United Nations sanctions on North Korea, ‘‘agree that the lack of de- tailed reports from all member states is an impediment to the UN’s effective implemen- tation of its sanctions’’; and (B) notes that ‘‘many member states lack the technical capacity to enforce sanctions and prepare reports’’ on the implementation of United Nations sanctions on North Korea. (4) All member states share a common inter- est in protecting the international financial system from the risks of money laundering and illicit transactions emanating from North Korea. (5) 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 the risks described in paragraph (4). (6) The cooperation of the People’s Republic of China, as North Korea’s principal trading partner, is essential to— (A) the enforcement of applicable United Nations Security Council resolutions; and (B) the protection of the international fi- nancial system. (7) The report of the Panel of Experts ex- pressed concern about the ability of banks to detect and prevent illicit transfers involving North Korea if such banks are located in mem- ber states with less effective regulators or member states that are unable to afford effec- tive compliance. (8) North Korea has historically exploited in- consistencies between jurisdictions in the in- terpretation and enforcement of financial reg- ulations and applicable United Nations Secu- rity Council resolutions to circumvent sanc- tions and launder the proceeds of illicit activi- ties. (9) Amroggang Development Bank, Bank of East Land, and Tanchon Commercial Bank have been designated by the Secretary of the Treasury, the United Nations Security Coun- cil, and the European Union as having materi- ally contributed to the proliferation of weap- ons of mass destruction. (10) Korea Daesong Bank and Korea Kwangson Banking Corporation have been des- ignated by the Secretary of the Treasury and the European Union as having materially con- tributed to the proliferation of weapons of mass destruction. (11) The Foreign Trade Bank of North Korea has been designated by the Secretary of the Treasury for facilitating transactions on be- half of persons linked to its proliferation net- work and for serving as ‘‘a key financial node’’. (12) Daedong Credit Bank has been des- ignated by the Secretary of the Treasury for activities prohibited by applicable United Na- tions Security Council resolutions, including the use of deceptive financial practices to fa- cilitate 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 in appro- priate international fora, such as the United Na- tions, and bilaterally, to develop and implement a coordinated, consistent, multilateral strategy for protecting the global financial system against risks emanating from North Korea, in- cluding— (1) the cessation of any financial services the continuation of which is inconsistent with ap- plicable United Nations Security Council reso- lutions; (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; Page 2204 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 9223 1 See References in Text note below. (3) the blocking by all member states, in ac- cordance with the legal process of the state in which the property is held, of any property re- quired to be blocked under applicable United Nations Security Council resolutions; (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; (5) the blocking of any property involved in significant activities undermining cybersecurity by the Government of North Korea, directly or indirectly, against United States persons, or the theft of intellectual property by the Government of North Korea, directly or indirectly from United States per- sons; and (6) the blocking of any property of persons directly or indirectly involved in censorship or human rights abuses by the Government of North Korea. (c) Strategy to improve international implemen- tation and enforcement of United Nations North Korea-specific sanctions The President shall direct the Secretary of State, in coordination with other Federal de- partments and agencies, as appropriate, to de- velop a strategy to improve international imple- mentation and enforcement of United Nations North Korea-specific sanctions. The strategy should include elements— (1) to increase the number of countries sub- mitting reports to the United Nations Panel of Experts established pursuant to United Na- tions Security Council Resolution 1874 (2009), including developing a list of targeted coun- tries where effective implementation and en- forcement of United Nations sanctions would reduce the threat from North Korea; (2) to encourage member states of the United Nations to cooperate and share information with the panel in order to help facilitate in- vestigations; (3) to expand cooperation with the Panel of Experts; (4) to provide technical assistance to mem- ber states to implement United Nations sanc- tions, including developing the capacity to en- force sanctions through improved export con- trol regulations, border security, and customs systems; (5) to harness existing United States Govern- ment initiatives and assistance programs, as appropriate, to improve sanctions implemen- tation and enforcement; and (6) to increase outreach to the people of North Korea, and to support the engagement of independent, non-governmental journal- istic, humanitarian, and other institutions in North Korea. (d) Report required Not later than 90 days after February 18, 2016, and annually thereafter, the Secretary of State shall submit to the appropriate congressional committees a report that describes the actions undertaken to implement the strategy required by subsection (c). (Pub. L. 114–122, title II, § 202, Feb. 18, 2016, 130 Stat. 104.) § 9223. Proliferation prevention sanctions (a) Export of certain goods or technology A validated license shall be required for the export to North Korea of any goods or tech- nology otherwise covered under section 4605(j) 1 of title 50. No defense exports may be approved for the Government of North Korea. (b) Transactions in defense articles or defense services (1) In general The President shall withhold assistance under the Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.) to the government of any country that provides to or receives from the Government of North Korea a defense article or defense service, as such terms are defined in section 2794 of this title, if the President de- termines that a significant type or amount of such article or service has been so provided or received. (2) Applicability The prohibition under paragraph (1) with re- spect to a government shall terminate on the date that is 5 years after the date on which the prohibition under paragraph (1) is applied to that government. (c) Waiver Notwithstanding any other provision of law, the Secretary of State may waive the prohibi- tions under this section with respect to a coun- try if the Secretary— (1) determines that such waiver is in the na- tional interest of the United States; and (2) submits a written report to the appro- priate congressional committees that de- scribes— (A) the steps that the relevant agencies are taking to curtail the trade described in subsection (b)(1); and (B) why such waiver is in the national in- terest of the United States. (d) Exception The prohibitions under this section shall not apply to the provision of assistance for human rights, democracy, rule of law, maternal and child health, disease prevention and response, or humanitarian purposes. (e) Report on arms trafficking involving North Korea (1) In general Not later than 180 days after August 2, 2017, and annually thereafter for 5 years, the Sec- retary of State shall submit to the appropriate congressional committees a report that spe- cifically describes the compliance of foreign countries and other foreign jurisdictions with the requirement to curtail the trade described in subsection (b)(1). (2) Form The report required under paragraph (1) shall be submitted in unclassified form but may contain a classified annex. (Pub. L. 114–122, title II, § 203, Feb. 18, 2016, 130 Stat. 106; Pub. L. 115–44, title III, § 313, Aug. 2,