H.R. 1771, The North Korea Sanctions Enforcement Act of 2014

H.R. 1771

The North Korea Sanctions Enforcement Act of 2014

Sponsor
Rep. Ed Royce

Date
July 28, 2014 (113th Congress, 2nd Session)

Staff Contact
Communications

Floor Situation

On Monday, July 28, 2014, the House will consider H.R. 1771, the North Korea Sanctions Enforcement Act of 2014, under suspension of the rules.  H.R. 1771 was introduced on April 26, 2013 by Rep. Ed Royce (R-CA) and was referred to the House Foreign Affairs Committee.  The bill was marked up on May 29, 2014 and was ordered reported, as amended, by unanimous consent.

Bill Summary

The following summary of H.R. 1771 was provided by the House Foreign Affairs Committee.  The bill:

  • Denies sanctioned North Koreans and their enablers access to the United States, blocking all property, including access to the U.S. financial system;
  • Calls for a determination as to whether North Korean banks and government entities are primary money laundering concerns, requiring that banks meet strict monitoring and reporting rules when dealing with those banks and entities;
  • Provides the Administration the tools necessary to sanction third-country persons and banks that facilitate North Korean proliferation, smuggling, money laundering, and human rights abuses;
  • Authorizes the President to sanction banks and foreign governments that facilitate the financial restrictions of U.N. Security Council Resolution 2094, passed in the wake of North Korea’s last nuclear test;
  • Blocks and seizes any assets connected with North Korea’s proliferation, illicit activities, and human rights violations;
  • Requires enhanced inspection requirements to ships and aircraft arriving from ports and airports that fail to meet their international obligation to inspect North Korean cargo carefully. This provision is critical as it protects the U.S. homeland from ports that deliberately fail to sufficiently inspect North Korean cargo; and
  • Holds North Korean officials accountable for human rights abuses.

Background

The Government of North Korea has repeatedly refused to dismantle its nuclear weapons program, breaking its commitment to do so and “willfully violat[ing] multiple United Nations Security Council resolutions calling for it to cease its development, testing, and production of weapons of mass destruction.”[1]  Additionally, it has been involved in “money laundering and illicit activities, including prohibited arms sales, narcotics trafficking, the counterfeiting of [U.S.] currency, and the counterfeiting of intellectual property of [U.S.] persons.”[2]  Beyond these activities, North Korea has been a perpetrator of state-sponsored human rights abuses and international terrorism, “including attempts to assassinate defectors and human rights activists, repeated threats of violence against foreign persons, leaders, newspapers, and cities, and the shipment of weapons to terrorists.”[3]  As many as 120,000 political prisoners are detained in prison camps, living in “atrocious living conditions” and under constant fear of torture or execution.[4]  North Korea’s actions pose “an imminent threat to the security of the [U.S.] and its allies, to the global economy, to the safety of members of the [U.S.] armed forces, to the integrity of the global financial system, to the integrity of global nonproliferation programs, and to the people of North Korea.”[5]

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[1] H.R. 1771, Sec. 2(1).
[2] Id. at Sec. 2(3).
[3] Id. at Sec. 2(4).
[4] Id. at Sec. 2(6).
[5] Id. at Sec. 2(10).

Cost

According to CBO estimates, implementing H.R. 1771 “would cost $10 million over the 2015-2019 period, assuming appropriation of the estimated amounts.  The bill would have an insignificant effect on direct spending and revenues.

Additional Information

For questions or further information contact the GOP Conference at 5-5107.