22 U.S.C. § 9214 — Designation of persons

Page 2197 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 9214 (1) is based on a full and complete inter- agency review of current policies and possible alternatives, including with respect to North Korea’s weapons of mass destruction and mis- sile programs, human rights atrocities, and significant activities undermining cybersecurity; and (2) includes recommendations for such legis- lative or administrative action as the Sec- retary considers appropriate based on the re- sults of the review. (Pub. L. 114–122, title I, § 103, Feb. 18, 2016, 130 Stat. 98.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in subsec. (a), was in the original ‘‘this Act’’, meaning Pub. L. 114–122, Feb. 18, 2016, 130 Stat. 93, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note set out under section 9201 of this title and Tables. Executive Documents DELEGATION OF FUNCTIONS Functions and authorities of President under subsec. (a) of this section delegated to Secretary of State, in consultation with Secretary of the Treasury, by Memo- randum of President of the United States, May 18, 2016, 81 F.R. 37479, set out as a note under section 9212 of this title. § 9214. Designation of persons (a) Mandatory designations Except as provided in section 9228 of this title, the President shall designate under this sub- section any person that the President deter- mines— (1) knowingly, directly or indirectly, im- ports, exports, or reexports to, into, or from North Korea any goods, services, or tech- nology controlled for export by the United States because of the use of such goods, serv- ices, or technology for weapons of mass de- struction or delivery systems for such weapons and materially contributes to the use, devel- opment, production, possession, or acquisition by any person of a nuclear, radiological, chem- ical, or biological weapon or any device or sys- tem designed in whole or in part to deliver such a weapon; (2) knowingly, directly or indirectly, pro- vides training, advice, or other services or as- sistance, or engages in significant financial transactions, relating to the manufacture, maintenance, or use of any such weapon, de- vice, or system to be imported, exported, or reexported to, into, or from North Korea; (3) knowingly, directly or indirectly, im- ports, exports, or reexports luxury goods to or into North Korea; (4) knowingly engages in, is responsible for, or facilitates censorship by the Government of North Korea; (5) knowingly engages in, is responsible for, or facilitates serious human rights abuses by the Government of North Korea; (6) knowingly, directly or indirectly, en- gages in money laundering, the counterfeiting of goods or currency, bulk cash smuggling, or narcotics trafficking that supports the Gov- ernment of North Korea or any senior official or person acting for or on behalf of that Gov- ernment; (7) knowingly engages in significant activi- ties undermining cybersecurity through the use of computer networks or systems against foreign persons, governments, or other enti- ties on behalf of the Government of North Korea; (8) knowingly, directly or indirectly, sells, supplies, or transfers to or from the Govern- ment of North Korea or any person acting for or on behalf of that Government, a significant amount of precious metal, graphite, raw or semi-finished metals or aluminum, steel, coal, or software, for use by or in industrial proc- esses directly related to weapons of mass de- struction and delivery systems for such weap- ons, other proliferation activities, the Korean Workers’ Party, armed forces, internal secu- rity, or intelligence activities, or the oper- ation and maintenance of political prison camps or forced labor camps, including outside of North Korea; (9) knowingly, directly or indirectly, im- ports, exports, or reexports to, into, or from North Korea any arms or related materiel or any defense article or defense service (as such terms are defined in section 2794 of this title); (10) knowingly, directly or indirectly, pur- chases or otherwise acquires from North Korea any significant amounts of gold, titanium ore, vanadium ore, copper, silver, nickel, zinc, or rare earth minerals; (11) knowingly, directly or indirectly, sells or transfers to North Korea any significant amounts of rocket, aviation, or jet fuel (except for use by a civilian passenger aircraft outside North Korea, exclusively for consumption dur- ing its flight to North Korea or its return flight); (12) knowingly, directly or indirectly, pro- vides significant amounts of fuel or supplies, provides bunkering services, or facilitates a significant transaction or transactions to op- erate or maintain, a vessel or aircraft that is designated under an applicable Executive order or an applicable United Nations Security Council resolution, or that is owned or con- trolled by a person designated under an appli- cable Executive order or applicable United Na- tions Security Council resolution; (13) knowingly, directly or indirectly, in- sures, registers, facilitates the registration of, or maintains insurance or a registration for, a vessel owned or controlled by the Government of North Korea, except as specifically ap- proved by the United Nations Security Coun- cil; (14) knowingly, directly or indirectly, main- tains a correspondent account (as defined in section 9221a(d)(1) of this title) with any North Korean financial institution, except as specifi- cally approved by the United Nations Security Council; or (15) knowingly attempts to engage in any of the conduct described in paragraphs (1) through (14). Page 2198 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 9214 1 So in original. Probably should be ‘‘Nations’’. 2 See References in Text note below. (b) Additional discretionary designations (1) Prohibited conduct described Except as provided in section 9228 of this title, the President may designate under this subsection any person that the President de- termines— (A) knowingly engages in, contributes to, assists, sponsors, or provides financial, ma- terial or technological support for, or goods and services in support of, any person des- ignated pursuant to— (i) an applicable United Nations Security Council resolution; (ii) any regulation promulgated under section 9254 of this title; or (iii) any applicable Executive order; (B) knowingly contributed to— (i) the bribery of an official of the Gov- ernment of North Korea or any person act- ing for on behalf of that official; (ii) the misappropriation, theft, or em- bezzlement of public funds by, or for the benefit of, an official of the Government of North Korea or any person acting for or on behalf of that official; or (iii) the use of any proceeds of any activ- ity described in clause (i) or (ii); (C) knowingly and materially assisted, sponsored, or provided significant financial, material, or technological support for, or goods or services to or in support of, the ac- tivities described in subparagraph (A) or (B); (D) knowingly, directly or indirectly, pur- chased or otherwise acquired from the Gov- ernment of North Korea significant quan- tities of coal, iron, or iron ore, in excess of the limitations provided in applicable United Nations Security Council resolu- tions; (E) knowingly, directly or indirectly, pur- chased or otherwise acquired significant types or amounts of textiles from the Gov- ernment of North Korea; (F) knowingly facilitated a significant transfer of funds or property of the Govern- ment of North Korea that materially con- tributes to any violation of an applicable United National 1 Security Council resolu- tion; (G) knowingly, directly or indirectly, fa- cilitated a significant transfer to or from the Government of North Korea of bulk cash, precious metals, gemstones, or other stores of value not described under sub- section (a)(10); (H) knowingly, directly or indirectly, sold, transferred, or otherwise provided signifi- cant amounts of crude oil, condensates, re- fined petroleum, other types of petroleum or petroleum byproducts, liquified natural gas, or other natural gas resources to the Gov- ernment of North Korea (except for heavy fuel oil, gasoline, or diesel fuel for humani- tarian use or as excepted under subsection (a)(11)); (I) knowingly, directly or indirectly, en- gaged in, facilitated, or was responsible for the online commercial activities of the Gov- ernment of North Korea, including online gambling; (J) knowingly, directly or indirectly, pur- chased or otherwise acquired fishing rights from the Government of North Korea; (K) knowingly, directly or indirectly, pur- chased or otherwise acquired significant types or amounts of food or agricultural products from the Government of North Korea; (L) knowingly, directly or indirectly, en- gaged in, facilitated, or was responsible for the exportation of workers from North Korea in a manner intended to generate sig- nificant revenue, directly or indirectly, for use by the Government of North Korea or by the Workers’ Party of Korea; (M) knowingly conducted a significant transaction or transactions in North Korea’s transportation, mining, energy, or financial services industries; or (N) except as specifically approved by the United Nations Security Council, and other than through a correspondent account as de- scribed in subsection (a)(14), knowingly fa- cilitated the operation of any branch, sub- sidiary, or office of a North Korean financial institution. (2) Effect of designation With respect to any person designated under this subsection, the President may— (A) apply the sanctions described in sec- tion 9224, 9225(c),2 or 9226 of this title to the person to the same extent and in the same manner as if the person were designated under subsection (a); (B) apply any applicable special measures described in section 5318A of title 31; (C) prohibit any transactions in foreign ex- change— (i) that are subject to the jurisdiction of the United States; and (ii) in which such person has any inter- est; and (D) prohibit any transfers of credit or pay- ments between financial institutions or by, through, or to any financial institution, to the extent that such transfers or payments— (i) are subject to the jurisdiction of the United States; and (ii) involve any interest of such person. (c) Asset blocking (1) Mandatory asset blocking The President shall exercise all of the pow- ers granted to the President under the Inter- national Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) to the extent necessary to block and prohibit all transactions in property and interests in property of a person des- ignated under subsection (a) or (g), the Gov- ernment of North Korea, or the Workers’ Party of Korea, if such property and interests in property are in the United States, come within the United States, or are or come with- in the possession or control of a United States person. Page 2199 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 9214 (2) Discretionary asset blocking The President may also exercise such pow- ers, in the same manner and to the same ex- tent described in paragraph (1), with respect to a person designated under subsection (b). (d) Application to subsidiaries and agents The designation of a person under subsection (a), (b), or (g) and the blocking of property and interests in property under subsection (c) shall apply with respect to a person who is deter- mined to be owned or controlled by, or to have acted or purported to have acted 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 the President deter- mines to lack sufficient financial controls to en- sure that such transaction will not facilitate any activity described in subsection (a), (b), or (g). (f) Penalties The penalties provided for in subsections (b) and (c) of section 206 of the International Emer- gency Economic Powers Act (50 U.S.C. 1705) shall apply to any person who violates, attempts to violate, conspires to violate, or causes a vio- lation of any prohibition of this section, or an order or regulation prescribed under this sec- tion, to the same extent that such penalties apply to a person that commits an unlawful act described in section 206(a) of such Act (50 U.S.C. 1705(a)). (g) Additional mandatory designations (1) In general Except as provided in section 9228 of this title, the President shall designate under this subsection any person that the President de- termines— (A) knowingly, directly or indirectly, en- gages in the importation from or expor- tation to North Korea of significant quan- tities of— (i)(I) coal, textiles, seafood, iron, or iron ore; or (II) refined petroleum products or crude oil above limits set by the United Nations Security Council and with which the United States concurs; or (ii) services or technology related to goods specified in clause (i); (B) knowingly facilitates a significant transfer of funds or property of the Govern- ment of North Korea that materially con- tributes to any violation of an applicable United Nations Security Council resolution; (C) knowingly, directly or indirectly, en- gages in, facilitates, or is responsible for the exportation of workers from North Korea, or the employment of such workers, in a man- ner that generates significant revenue, di- rectly or indirectly, for use by the Govern- ment of North Korea or by the Workers’ Party of Korea; (D) knowingly, directly or indirectly, sells or transfers a significant number of vessels to North Korea, except as specifically ap- proved by the United Nations Security Coun- cil; (E) knowingly engages in a significant ac- tivity to charter, insure, register, facilitate the registration of, or maintain insurance or a registration for, a vessel owned, con- trolled, commanded, or crewed by a North Korean person; or (F) knowingly contributes to and partici- pates in— (i) a significant act of bribery of an offi- cial of the Government of North Korea or any person acting for or on behalf of that official; (ii) the misappropriation, theft, or em- bezzlement of a significant amount of pub- lic funds by, or for the benefit of, an offi- cial of the Government of North Korea or any person acting for or on behalf of that official; or (iii) the use of any proceeds of any activ- ity described in subparagraph (A) or (B). (Pub. L. 114–122, title I, § 104, Feb. 18, 2016, 130 Stat. 99; Pub. L. 115–44, title III, § 311(a), (b)(1), (c), Aug. 2, 2017, 131 Stat. 942, 944; Pub. L. 116–92, div. F, title LXXI, § 7122(a), Dec. 20, 2019, 133 Stat. 2247.) Editorial Notes REFERENCES IN TEXT Section 9225, referred to in subsec. (b)(2)(B), was re- pealed and a new section 9225 enacted by Pub. L. 115–44, title III, § 314, Aug. 2, 2017, 131 Stat. 946. The sanctions formerly described in section 9225(c) of this title are now contained in section 9225(d) of this title. The International Emergency Economic Powers Act, referred to in subsec. (c)(1), 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. AMENDMENTS 2019—Subsec. (c)(1). Pub. L. 116–92, § 7122(a)(2), in- serted ‘‘or (g)’’ after ‘‘subsection (a)’’. Subsec. (d). Pub. L. 116–92, § 7122(a)(3), substituted ‘‘(a), (b), or (g)’’ for ‘‘(a) or (b)’’. Subsec. (e). Pub. L. 116–92, § 7122(a)(4), substituted ‘‘(a), (b), or (g)’’ for ‘‘(a) or (b)’’. Subsec. (g). Pub. L. 116–92, § 7122(a)(1), added subsec. (g). 2017—Subsec. (a)(9). Pub. L. 115–44, § 311(a)(1), sub- stituted ‘‘or any defense article or defense service (as such terms are defined in section 2794 of this title);’’ for ‘‘; or’’. Subsec. (a)(10) to (15). Pub. L. 115–44, § 311(a)(2)–(4), added pars. (10) to (14), redesignated former par. (10) as (15), and in par. (15), substituted ‘‘(14)’’ for ‘‘(9)’’. Subsec. (b)(1)(A). Pub. L. 115–44, § 311(b)(1)(A), sub- stituted ‘‘pursuant to—’’ and items (i) to (iii) for ‘‘pur- suant to an applicable United Nations Security Council resolution;’’. Subsec. (b)(1)(D) to (N). Pub. L. 115–44, § 311(b)(1)(B)–(D), added subpars. (D) to (N). Subsec. (c). Pub. L. 115–44, § 311(c), designated existing text as par. (1), inserted heading, substituted ‘‘of a per- son designated under subsection (a)’’ for ‘‘of a des- ignated person’’, and added par. (2). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2017 AMENDMENT Pub. L. 115–44, title III, § 311(b)(2), Aug. 2, 2017, 131 Stat. 943, provided that: ‘‘The amendments made by Page 2200 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 9221 paragraph (1) [amending this section] take effect on the date of the enactment of this Act [Aug. 2, 2017] and apply with respect to conduct described in subpara- graphs (D) through (N) of section 104(b)(1) of the North Korea Sanctions and Policy Enhancement Act of 2016 [22 U.S.C. 9214(b)(1)], as added by paragraph (1), engaged in on or after such date of enactment.’’ Executive Documents DELEGATION OF FUNCTIONS Functions and authorities of President under section 7122 of Pub. L. 116–92 with respect to subsec. (g) of this section delegated to Secretary of the Treasury, in con- sultation with the Secretary of State, by section 1(b)(iv) of Memorandum of President of the United States, Feb. 21, 2020, 85 F.R. 13717, set out as a note under section 286yy of this title. Functions and authorities of President under subsecs. (a), (b), and (d) of this section delegated to Secretary of the Treasury, in consultation with Secretary of State, and functions and authorities under subsecs. (c) and (e) of this section delegated to Secretary of the Treasury, by Memorandum of President of the United States, May 18, 2016, 81 F.R. 37479, set out as a note under sec- tion 9212 of this title. SUBCHAPTER II—SANCTIONS AGAINST NORTH KOREAN PROLIFERATION, HUMAN RIGHTS ABUSES, AND ILLICIT ACTIVI- TIES § 9221. Determinations with respect to North Korea as a jurisdiction of primary money laundering concern (a) Findings Congress makes the following findings: (1) The Under Secretary of the Treasury for Terrorism and Financial Intelligence, who is responsible for safeguarding the financial sys- tem against illicit use, money laundering, ter- rorist financing, and the proliferation of weap- ons of mass destruction, and has repeatedly expressed concern about North Korea’s misuse of the international financial system— (A) in 2006— (i) stated, ‘‘Given [North Korea’s] coun- terfeiting of U.S. currency, narcotics traf- ficking and use of accounts world-wide to conduct proliferation-related transactions, the line between illicit and licit North Ko- rean money is nearly invisible.’’; and (ii) urged financial institutions world- wide to ‘‘think carefully about the risks of doing any North Korea-related business’’; (B) in 2011, stated that North Korea— (i) ‘‘remains intent on engaging in pro- liferation, selling arms as well as bringing in material’’; and (ii) was ‘‘aggressively pursuing the effort to establish front companies.’’; and (C) in 2013, stated— (i) in reference to North Korea’s dis- tribution of high-quality counterfeit United States currency, that ‘‘North Korea is continuing to try to pass a supernote into the international financial system’’; and (ii) 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 inter- national 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 those regimes and the serious threat those deficiencies pose to the integrity of the international financial system; (C) urged all jurisdictions to apply coun- termeasures to protect the international fi- nancial system from ongoing and substan- tial money laundering and terrorist financ- ing risks emanating from North Korea; (D) urged all jurisdictions to advise their financial institutions to give special atten- tion to business relationships and trans- actions with North Korea, including North Korean companies and financial institu- tions; and (E) called on all jurisdictions— (i) to protect against correspondent rela- tionships being used to bypass or evade countermeasures and risk mitigation prac- tices; and (ii) to take into account money laun- dering and terrorist financing risks when considering requests by North Korean fi- nancial institutions to open branches and subsidiaries in their respective jurisdic- tions. (3) On March 7, 2013, the United Nations Se- curity Council unanimously adopted Resolu- tion 2094, which— (A) welcomed the Financial Action Task Force’s— (i) recommendation on financial sanc- tions related to proliferation; and (ii) guidance on the implementation of such sanctions; (B) decided that United Nations member states should apply enhanced monitoring and other legal measures to prevent the pro- vision of financial services or the transfer of property that could contribute to activities prohibited by applicable United Nations Se- curity Council resolutions; and (C) called upon United Nations member states to prohibit North Korean financial in- stitutions from establishing or maintaining correspondent relationships with financial institutions in their respective jurisdictions to prevent the provision of financial services if such member states have information that provides reasonable grounds to believe that such activities could contribute to— (i) activities prohibited by an applicable United Nations Security Council resolu- tion; or (ii) 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 limita-