[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3364 Enrolled Bill (ENR)]
H.R.3364
One Hundred Fifteenth Congress
of the
United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Tuesday,
the third day of January, two thousand and seventeen
An Act
To provide congressional review and to counter aggression by the
Governments of Iran, the Russian Federation, and North Korea, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Countering
America's Adversaries Through Sanctions Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--SANCTIONS WITH RESPECT TO IRAN
Sec. 101. Short title.
Sec. 102. Definitions.
Sec. 103. Regional strategy for countering conventional and asymmetric
Iranian threats in the Middle East and North Africa.
Sec. 104. Imposition of additional sanctions in response to Iran's
ballistic missile program.
Sec. 105. Imposition of terrorism-related sanctions with respect to the
IRGC.
Sec. 106. Imposition of additional sanctions with respect to persons
responsible for human rights abuses.
Sec. 107. Enforcement of arms embargos.
Sec. 108. Review of applicability of sanctions relating to Iran's
support for terrorism and its ballistic missile program.
Sec. 109. Report on coordination of sanctions between the United States
and the European Union.
Sec. 110. Report on United States citizens detained by Iran.
Sec. 111. Exceptions for national security and humanitarian assistance;
rule of construction.
Sec. 112. Presidential waiver authority.
TITLE II--SANCTIONS WITH RESPECT TO THE RUSSIAN FEDERATION AND COMBATING
TERRORISM AND ILLICIT FINANCING
Sec. 201. Short title.
Subtitle A--Sanctions and Other Measures With Respect to the Russian
Federation
Sec. 211. Findings.
Sec. 212. Sense of Congress.
Part 1--Congressional Review of Sanctions Imposed With Respect to the
Russian Federation
Sec. 215. Short title.
Sec. 216. Congressional review of certain actions relating to sanctions
imposed with respect to the Russian Federation.
Part 2--Sanctions With Respect to the Russian Federation
Sec. 221. Definitions.
Sec. 222. Codification of sanctions relating to the Russian Federation.
Sec. 223. Modification of implementation of Executive Order No. 13662.
Sec. 224. Imposition of sanctions with respect to activities of the
Russian Federation undermining cybersecurity.
Sec. 225. Imposition of sanctions relating to special Russian crude oil
projects.
Sec. 226. Imposition of sanctions with respect to Russian and other
foreign financial institutions.
Sec. 227. Mandatory imposition of sanctions with respect to significant
corruption in the Russian Federation.
Sec. 228. Mandatory imposition of sanctions with respect to certain
transactions with foreign sanctions evaders and serious human
rights abusers in the Russian Federation.
Sec. 229. Notifications to Congress under Ukraine Freedom Support Act of
2014.
Sec. 230. Standards for termination of certain sanctions with respect to
the Russian Federation.
Sec. 231. Imposition of sanctions with respect to persons engaging in
transactions with the intelligence or defense sectors of the
Government of the Russian Federation.
Sec. 232. Sanctions with respect to the development of pipelines in the
Russian Federation.
Sec. 233. Sanctions with respect to investment in or facilitation of
privatization of state-owned assets by the Russian Federation.
Sec. 234. Sanctions with respect to the transfer of arms and related
materiel to Syria.
Sec. 235. Sanctions described.
Sec. 236. Exceptions, waiver, and termination.
Sec. 237. Exception relating to activities of the National Aeronautics
and Space Administration.
Sec. 238. Rule of construction.
Part 3--Reports
Sec. 241. Report on oligarchs and parastatal entities of the Russian
Federation.
Sec. 242. Report on effects of expanding sanctions to include sovereign
debt and derivative products.
Sec. 243. Report on illicit finance relating to the Russian Federation.
Subtitle B--Countering Russian Influence in Europe and Eurasia
Sec. 251. Findings.
Sec. 252. Sense of Congress.
Sec. 253. Statement of policy.
Sec. 254. Coordinating aid and assistance across Europe and Eurasia.
Sec. 255. Report on media organizations controlled and funded by the
Government of the Russian Federation.
Sec. 256. Report on Russian Federation influence on elections in Europe
and Eurasia.
Sec. 257. Ukranian energy security.
Sec. 258. Termination.
Sec. 259. Appropriate congressional committees defined.
Subtitle C--Combating Terrorism and Illicit Financing
Part 1--National Strategy for Combating Terrorist and Other Illicit
Financing
Sec. 261. Development of national strategy.
Sec. 262. Contents of national strategy.
Part 2--Enhancing Antiterrorism Tools of the Department of the Treasury
Sec. 271. Improving antiterror finance monitoring of funds transfers.
Sec. 272. Sense of Congress on international cooperation regarding
terrorist financing intelligence.
Sec. 273. Examining the counter-terror financing role of the Department
of the Treasury in embassies.
Sec. 274. Inclusion of Secretary of the Treasury on the National
Security Council.
Sec. 275. Inclusion of all funds.
Part 3--Definitions
Sec. 281. Definitions.
Subtitle D--Rule of Construction
Sec. 291. Rule of construction.
Sec. 292. Sense of Congress on the strategic importance of Article 5 of
the North Atlantic Treaty.
TITLE III--SANCTIONS WITH RESPECT TO NORTH KOREA
Sec. 301. Short title.
Sec. 302. Definitions.
Subtitle A--Sanctions to Enforce and Implement United Nations Security
Council Sanctions Against North Korea
Sec. 311. Modification and expansion of requirements for the designation
of persons.
Sec. 312. Prohibition on indirect correspondent accounts.
Sec. 313. Limitations on foreign assistance to noncompliant governments.
Sec. 314. Amendments to enhance inspection authorities.
Sec. 315. Enforcing compliance with United Nations shipping sanctions
against North Korea.
Sec. 316. Report on cooperation between North Korea and Iran.
Sec. 317. Report on implementation of United Nations Security Council
resolutions by other governments.
Sec. 318. Briefing on measures to deny specialized financial messaging
services to designated North Korean financial institutions.
Subtitle B--Sanctions With Respect to Human Rights Abuses by the
Government of North Korea
Sec. 321. Sanctions for forced labor and slavery overseas of North
Koreans.
Sec. 322. Modifications to sanctions suspension and waiver authorities.
Sec. 323. Reward for informants.
Sec. 324. Determination on designation of North Korea as a state sponsor
of terrorism.
Subtitle C--General Authorities
Sec. 331. Authority to consolidate reports.
Sec. 332. Rule of construction.
Sec. 333. Regulatory authority.
Sec. 334. Limitation on funds.
TITLE I--SANCTIONS WITH RESPECT TO IRAN
SEC. 101. SHORT TITLE.
This title may be cited as the ``Countering Iran's Destabilizing
Activities Act of 2017''.
SEC. 102. DEFINITIONS.
In this title:
(1) Act of international terrorism.--The term ``act of
international terrorism'' has the meaning given that term in
section 14 of the Iran Sanctions Act of 1996 (Public Law 104-172;
50 U.S.C. 1701 note).
(2) Appropriate congressional committees.--The term
``appropriate congressional committees'' has the meaning given that
term in section 14 of the Iran Sanctions Act of 1996 (Public Law
104-172; 50 U.S.C. 1701 note).
(3) Foreign person.--The term ``foreign person'' means a person
that is not a United States person.
(4) Iranian person.--The term ``Iranian person'' means--
(A) an individual who is a citizen or national of Iran; or
(B) an entity organized under the laws of Iran or otherwise
subject to the jurisdiction of the Government of Iran.
(5) IRGC.--The term ``IRGC'' means Iran's Islamic Revolutionary
Guard Corps.
(6) Knowingly.--The term ``knowingly'' has the meaning given
that term in section 14 of the Iran Sanctions Act of 1996 (Public
Law 104-172; 50 U.S.C. 1701 note).
(7) United states person.--The term ``United States person''
means--
(A) a United States citizen or an alien lawfully admitted
for permanent residence to the United States; or
(B) an entity organized under the laws of the United States
or of any jurisdiction within the United States, including a
foreign branch of such an entity.
SEC. 103. REGIONAL STRATEGY FOR COUNTERING CONVENTIONAL AND
ASYMMETRIC IRANIAN THREATS IN THE MIDDLE EAST AND NORTH AFRICA.
(a) In General.--Not later than 180 days after the date of the
enactment of this Act, and every 2 years thereafter, the Secretary of
State, the Secretary of Defense, the Secretary of the Treasury, and the
Director of National Intelligence shall jointly develop and submit to
the appropriate congressional committees and leadership a strategy for
deterring conventional and asymmetric Iranian activities and threats
that directly threaten the United States and key allies in the Middle
East, North Africa, and beyond.
(b) Elements.--The strategy required by subsection (a) shall
include at a minimum the following:
(1) A summary of the near- and long-term United States
objectives, plans, and means for countering Iran's destabilizing
activities, including identification of countries that share the
objective of countering Iran's destabilizing activities.
(2) A summary of the capabilities and contributions of
individual countries to shared efforts to counter Iran's
destabilizing activities, and a summary of additional actions or
contributions that each country could take to further contribute.
(3) An assessment of Iran's conventional force capabilities and
an assessment of Iran's plans to upgrade its conventional force
capabilities, including its acquisition, development, and
deployment of ballistic and cruise missile capabilities, unmanned
aerial vehicles, and maritime offensive and anti-access or area
denial capabilities.
(4) An assessment of Iran's chemical and biological weapons
capabilities and an assessment of Iranian plans to upgrade its
chemical or biological weapons capabilities.
(5) An assessment of Iran's asymmetric activities in the
region, including--
(A) the size, capabilities, and activities of the IRGC,
including the Quds Force;
(B) the size, capabilities, and activities of Iran's cyber
operations;
(C) the types and amount of support, including funding,
lethal and nonlethal contributions, and training, provided to
Hezbollah, Hamas, special groups in Iraq, the regime of Bashar
al-Assad in Syria, Houthi fighters in Yemen, and other violent
groups across the Middle East; and
(D) the scope and objectives of Iran's information
operations and use of propaganda.
(6) A summary of United States actions, unilaterally and in
cooperation with foreign governments, to counter destabilizing
Iranian activities, including--
(A) interdiction of Iranian lethal arms bound for groups
designated as foreign terrorist organizations under section 219
of the Immigration and Nationality Act (8 U.S.C. 1189);
(B) Iran's interference in international commercial
shipping lanes;
(C) attempts by Iran to undermine or subvert
internationally recognized governments in the Middle East
region; and
(D) Iran's support for the regime of Bashar al-Assad in
Syria, including--
(i) financial assistance, military equipment and
personnel, and other support provided to that regime; and
(ii) support and direction to other armed actors that
are not Syrian or Iranian and are acting on behalf of that
regime.
(c) Form of Strategy.--The strategy required by subsection (a)
shall be submitted in unclassified form, but may include a classified
annex.
(d) Appropriate Congressional Committees and Leadership Defined.--
In this section, the term ``appropriate congressional committees and
leadership'' means--
(1) the Committee on Finance, the Committee on Banking,
Housing, and Urban Affairs, the Committee on Foreign Relations, and
the majority and minority leaders of the Senate; and
(2) the Committee on Ways and Means, the Committee on Financial
Services, the Committee on Foreign Affairs, and the Speaker, the
majority leader, and the minority leader of the House of
Representatives.
SEC. 104. IMPOSITION OF ADDITIONAL SANCTIONS IN RESPONSE TO IRAN'S
BALLISTIC MISSILE PROGRAM.
(a) Sense of Congress.--It is the sense of Congress that the
Secretary of the Treasury and the Secretary of State should continue to
implement Executive Order No. 13382 (50 U.S.C. 1701 note; relating to
blocking property of weapons of mass destruction delivery system
proliferators and their supporters).
(b) Imposition of Sanctions.--The President shall impose the
sanctions described in subsection (c) with respect to any person that
the President determines, on or after the date of the enactment of this
Act--
(1) knowingly engages in any activity that materially
contributes to the activities of the Government of Iran with
respect to its ballistic missile program, or any other program in
Iran for developing, deploying, or maintaining systems capable of
delivering weapons of mass destruction, including any efforts to
manufacture, acquire, possess, develop, transport, transfer, or use
such capabilities;
(2) is a successor entity to a person referred to in paragraph
(1);
(3) owns or controls or is owned or controlled by a person
referred to in paragraph (1);
(4) forms an entity with the purpose of evading sanctions that
would otherwise be imposed pursuant to paragraph (3);
(5) is acting for or on behalf of a person referred to in
paragraph (1), (2), (3), or (4); or
(6) knowingly provides or attempts to provide financial,
material, technological, or other support for, or goods or services
in support of, a person referred to in paragraph (1), (2), (3), (4)
or (5).
(c) Sanctions Described.--The sanctions described in this
subsection are the following:
(1) Blocking of property.--The President shall block, in
accordance with the International Emergency Economic Powers Act (50
U.S.C. 1701 et seq.), all transactions in all property and
interests in property of any person subject to subsection (b) 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.
(2) Exclusion from united states.--The Secretary of State shall
deny a visa to, and the Secretary of Homeland Security shall
exclude from the United States, any person subject to subsection
(b) that is an alien.
(d) Penalties.--A person that violates, attempts to violate,
conspires to violate, or causes a violation of subsection (c)(1) or any
regulation, license, or order issued to carry out that subsection shall
be subject to the penalties set forth in subsections (b) and (c) of
section 206 of the International Emergency Economic Powers Act (50
U.S.C. 1705) to the same extent as a person that commits an unlawful
act described in subsection (a) of that section.
(e) Report on Contributions to Iran's Ballistic Missile Program.--
(1) In general.--Not later than 180 days after the date of the
enactment of this Act, and every 180 days thereafter, the President
shall submit to the appropriate congressional committees a report
describing each person that--
(A) has, during the period specified in paragraph (2),
conducted any activity that has materially contributed to the
activities of the Government of Iran with respect to its
ballistic missile program, or any other program in Iran for
developing, deploying, or maintaining systems capable of
delivering weapons of mass destruction, including any efforts
to manufacture, acquire, possess, develop, transport, transfer,
or use such capabilities;
(B) is a successor entity to a person referred to in
subparagraph (A);
(C) owns or controls or is owned or controlled by a person
referred to in subparagraph (A);
(D) forms an entity with the purpose of evading sanctions
that could be imposed as a result of a relationship described
in subparagraph (C);
(E) is acting for or on behalf of a person referred to in
subparagraph (A), (B), (C), or (D); or
(F) is known or believed to have provided, or attempted to
provide, during the period specified in paragraph (2),
financial, material, technological, or other support for, or
goods or services in support of, any material contribution to a
program described in subparagraph (A) carried out by a person
described in subparagraph (A), (B), (C), (D), or (E).
(2) Period specified.--The period specified in this paragraph
is--
(A) in the case of the first report submitted under
paragraph (1), the period beginning January 1, 2016, and ending
on the date the report is submitted; and
(B) in the case of a subsequent such report, the 180-day
period preceding the submission of the report.
(3) Form of report.--Each report required by paragraph (1)
shall be submitted in unclassified form but may include a
classified annex.
SEC. 105. IMPOSITION OF TERRORISM-RELATED SANCTIONS WITH RESPECT TO
THE IRGC.
(a) Findings.--Congress makes the following findings:
(1) The IRGC is subject to sanctions pursuant to Executive
Order No. 13382 (50 U.S.C. 1701 note; relating to blocking property
of weapons of mass destruction delivery system proliferators and
their supporters), the Comprehensive Iran Sanctions,
Accountability, and Divestment Act of 2010 (22 U.S.C. 8501 et
seq.), Executive Order No. 13553 (50 U.S.C. 1701 note; relating to
blocking property of certain persons with respect to serious human
rights abuses by the Government of Iran), and Executive Order No.
13606 (50 U.S.C. 1701 note; relating to blocking the property and
suspending entry into the United States of certain persons with
respect to grave human rights abuses by the Governments of Iran and
Syria via information technology).
(2) The Iranian Revolutionary Guard Corps-Quds Force (in this
section referred to as the ``IRGC-QF'') is the primary arm of the
Government of Iran for executing its policy of supporting terrorist
and insurgent groups. The IRGC-QF provides material, logistical
assistance, training, and financial support to militants and
terrorist operatives throughout the Middle East and South Asia and
was designated for the imposition of sanctions by the Secretary of
the Treasury pursuant to Executive Order No. 13224 (50 U.S.C. 1701
note; relating to blocking property and prohibiting transactions
with persons who commit, threaten to commit, or support terrorism)
in October 2007 for its support of terrorism.
(3) The IRGC, not just the IRGC-QF, is responsible for
implementing Iran's international program of destabilizing
activities, support for acts of international terrorism, and
ballistic missile program.
(b) In General.--Beginning on the date that is 90 days after the
date of the enactment of this Act, the President shall impose the
sanctions described in subsection (c) with respect to the IRGC and
foreign persons that are officials, agents, or affiliates of the IRGC.
(c) Sanctions Described.--The sanctions described in this
subsection are sanctions applicable with respect to a foreign person
pursuant to Executive Order No. 13224 (50 U.S.C. 1701 note; relating to
blocking property and prohibiting transactions with persons who commit,
threaten to commit, or support terrorism).
SEC. 106. IMPOSITION OF ADDITIONAL SANCTIONS WITH RESPECT TO
PERSONS RESPONSIBLE FOR HUMAN RIGHTS ABUSES.
(a) In General.--Not later than 90 days after the date of the
enactment of this Act, and annually thereafter, the Secretary of State
shall submit to the appropriate congressional committees a list of each
person the Secretary determines, based on credible evidence, on or
after the date of the enactment of this Act--
(1) is responsible for extrajudicial killings, torture, or
other gross violations of internationally recognized human rights
committed against individuals in Iran who seek--
(A) to expose illegal activity carried out by officials of
the Government of Iran; or
(B) to obtain, exercise, defend, or promote internationally
recognized human rights and freedoms, such as the freedoms of
religion, expression, association, and assembly, and the rights
to a fair trial and democratic elections; or
(2) acts as an agent of or on behalf of a foreign person in a
matter relating to an activity described in paragraph (1).
(b) Sanctions Described.--
(1) In general.--The President may, in accordance with the
International Emergency Economic Powers Act (50 U.S.C. 1701 et
seq.), block all transactions in all property and interests in
property of a person on the list required by subsection (a) 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.
(2) Penalties.--A person that violates, attempts to violate,
conspires to violate, or causes a violation of paragraph (1) or any
regulation, license, or order issued to carry out paragraph (1)
shall be subject to the penalties set forth in subsections (b) and
(c) of section 206 of the International Emergency Economic Powers
Act (50 U.S.C. 1705) to the same extent as a person that commits an
unlawful act described in subsection (a) of that section.
SEC. 107. ENFORCEMENT OF ARMS EMBARGOS.
(a) In General.--Except as provided in subsection (d), the
President shall impose the sanctions described in subsection (b) with
respect to any person that the President determines--
(1) knowingly engages in any activity that materially
contributes to the supply, sale, or transfer directly or indirectly
to or from Iran, or for the use in or benefit of Iran, of any
battle tanks, armored combat vehicles, large caliber artillery
systems, combat aircraft, attack helicopters, warships, missiles or
missile systems, as defined for the purpose of the United Nations
Register of Conventional Arms, or related materiel, including spare
parts; or
(2) knowingly provides to Iran any technical training,
financial resources or services, advice, other services or
assistance related to the supply, sale, transfer, manufacture,
maintenance, or use of arms and related materiel described in
paragraph (1).
(b) Sanctions Described.--
(1) Blocking of property.--The President shall block, in
accordance with the International Emergency Economic Powers Act (50
U.S.C. 1701 et seq.), all transactions in all property and
interests in property of any person subject to subsection (a) 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.
(2) Exclusion from united states.--The Secretary of State shall
deny a visa to, and the Secretary of Homeland Security shall
exclude from the United States, any person subject to subsection
(a) that is an alien.
(c) Penalties.--A person that violates, attempts to violate,
conspires to violate, or causes a violation of subsection (b)(1) or any
regulation, license, or order issued to carry out that subsection shall
be subject to the penalties set forth in subsections (b) and (c) of
section 206 of the International Emergency Economic Powers Act (50
U.S.C. 1705) to the same extent as a person that commits an unlawful
act described in subsection (a) of that section.
(d) Exception.--The President is not required to impose sanctions
under subsection (a) with respect to a person for engaging in an
activity described in that subsection if the President certifies to the
appropriate congressional committees that--
(1) permitting the activity is in the national security
interest of the United States;
(2) Iran no longer presents a significant threat to the
national security of the United States and to the allies of the
United States; and
(3) the Government of Iran has ceased providing operational or
financial support for acts of international terrorism and no longer
satisfies the requirements for designation as a state sponsor of
terrorism.
(e) State Sponsor of Terrorism Defined.--In this section, the term
``state sponsor of terrorism'' means a country the government of which
the Secretary of State has determined to be a government that has
repeatedly provided support for acts of international terrorism for
purposes of--
(1) section 6(j)(1)(A) of the Export Administration Act of 1979
(50 U.S.C. 4605(j)(1)(A)) (as continued in effect pursuant to the
International Emergency Economic Powers Act (50 U.S.C. 1701 et
seq.));
(2) section 620A(a) of the Foreign Assistance Act of 1961 (22
U.S.C. 2371(a));
(3) section 40(d) of the Arms Export Control Act (22 U.S.C.
2780(d)); or
(4) any other provision of law.
SEC. 108. REVIEW OF APPLICABILITY OF SANCTIONS RELATING TO IRAN'S
SUPPORT FOR TERRORISM AND ITS BALLISTIC MISSILE PROGRAM.
(a) In General.--Not later than 5 years after the date of the
enactment of this Act, the President shall conduct a review of all
persons on the list of specially designated nationals and blocked
persons maintained by the Office of Foreign Assets Control of the
Department of the Treasury for activities relating to Iran--
(1) to assess the conduct of such persons as that conduct
relates to--
(A) any activity that materially contributes to the
activities of the Government of Iran with respect to its
ballistic missile program; or
(B) support by the Government of Iran for acts of
international terrorism; and
(2) to determine the applicability of sanctions with respect to
such persons under--
(A) Executive Order No. 13382 (50 U.S.C. 1701 note;
relating to blocking property of weapons of mass destruction
delivery system proliferators and their supporters); or
(B) Executive Order No. 13224 (50 U.S.C. 1701 note;
relating to blocking property and prohibiting transactions with
persons who commit, threaten to commit, or support terrorism).
(b) Implementation of Sanctions.--If the President determines under
subsection (a) that sanctions under an Executive order specified in
paragraph (2) of that subsection are applicable with respect to a
person, the President shall--
(1) impose sanctions with respect to that person pursuant to
that Executive order; or
(2) exercise the waiver authority provided under section 112.
SEC. 109. REPORT ON COORDINATION OF SANCTIONS BETWEEN THE UNITED
STATES AND THE EUROPEAN UNION.
(a) In General.--Not later than 180 days after the date of the
enactment of this Act, and every 180 days thereafter, the President
shall submit to the appropriate congressional committees a report that
includes the following:
(1) A description of each instance, during the period specified
in subsection (b)--
(A) in which the United States has imposed sanctions with
respect to a person for activity related to the proliferation
of weapons of mass destruction or delivery systems for such
weapons to or by Iran, support for acts of international
terrorism by Iran, or human rights abuses in Iran, but in which
the European Union has not imposed corresponding sanctions; and
(B) in which the European Union has imposed sanctions with
respect to a person for activity related to the proliferation
of weapons of mass destruction or delivery systems for such
weapons to or by Iran, support for acts of international
terrorism by Iran, or human rights abuses in Iran, but in which
the United States has not imposed corresponding sanctions.
(2) An explanation for the reason for each discrepancy between
sanctions imposed by the European Union and sanctions imposed by
the United States described in subparagraphs (A) and (B) of
paragraph (1).
(b) Period Specified.--The period specified in this subsection is--
(1) in the case of the first report submitted under subsection
(a), the period beginning on the date of the enactment of this Act
and ending on the date the report is submitted; and
(2) in the case of a subsequent such report, the 180-day period
preceding the submission of the report.
(c) Form of Report.--The report required by subsection (a) shall be
submitted in unclassified form but may include a classified annex.
SEC. 110. REPORT ON UNITED STATES CITIZENS DETAINED BY IRAN.
(a) In General.--Not later than 90 days after the date of the
enactment of this Act, and every 180 days thereafter, the President
shall submit to the appropriate congressional committees and leadership
a report on United States citizens, including United States citizens
who are also citizens of other countries, detained by Iran or groups
supported by Iran that includes--
(1) information regarding any officials of the Government of
Iran involved in any way in the detentions; and
(2) a summary of efforts the United States Government has taken
to secure the swift release of those United States citizens.
(b) Form of Report.--The report required by subsection (a) shall be
submitted in unclassified form, but may include a classified annex.
(c) Appropriate Congressional Committees and Leadership Defined.--
In this section, the term ``appropriate congressional committees and
leadership'' means--
(1) the Committee on Finance, the Committee on Banking,
Housing, and Urban Affairs, the Committee on Foreign Relations, and
the majority and minority leaders of the Senate; and
(2) the Committee on Ways and Means, the Committee on Financial
Services, the Committee on Foreign Affairs, and the Speaker, the
majority leader, and the minority leader of the House of
Representatives.
SEC. 111. EXCEPTIONS FOR NATIONAL SECURITY AND HUMANITARIAN
ASSISTANCE; RULE OF CONSTRUCTION.
(a) In General.--The following activities shall be exempt from
sanctions under sections 104, 105, 106, and 107:
(1) Any activity subject to the reporting requirements under
title V of the National Security Act of 1947 (50 U.S.C. 3091 et
seq.), or to any authorized intelligence activities of the United
States.
(2) The admission of an alien to the United States if such
admission is necessary to comply with United States obligations
under the Agreement between the United Nations and the United
States of America regarding the Headquarters of the United Nations,
signed at Lake Success June 26, 1947, and entered into force
November 21, 1947, or under the Convention on Consular Relations,
done at Vienna April 24, 1963, and entered into force March 19,
1967, or other applicable international obligations of the United
States.
(3) The conduct or facilitation of a transaction for the sale
of agricultural commodities, food, medicine, or medical devices to
Iran or for the provision of humanitarian assistance to the people
of Iran, including engaging in a financial transaction relating to
humanitarian assistance or for humanitarian purposes or
transporting goods or services that are necessary to carry out
operations relating to humanitarian assistance or humanitarian
purposes.
(b) Implementation.--The President may exercise all authorities
provided under sections 203 and 205 of the International Emergency
Economic Powers Act (50 U.S.C. 1702 and 1704) to carry out this Act.
(c) Rule of Construction.--Nothing in this Act shall be construed
to limit the authority of the President under the International
Emergency Economic Powers Act (50 U.S.C. 1701 et seq.).
(d) Definitions.--In this section:
(1) Agricultural commodity.--The term ``agricultural
commodity'' has the meaning given that term in section 102 of the
Agricultural Trade Act of 1978 (7 U.S.C. 5602).
(2) Good.--The term ``good'' has the meaning given that term in
section 16 of the Export Administration Act of 1979 (50 U.S.C.
4618) (as continued in effect pursuant to the International
Emergency Economic Powers Act (50 U.S.C. 1701 et seq.)).
(3) Medical device.--The term ``medical device'' has the
meaning given the term ``device'' in section 201 of the Federal
Food, Drug, and Cosmetic Act (21 U.S.C. 321).
(4) Medicine.--The term ``medicine'' has the meaning given the
term ``drug'' in section 201 of the Federal Food, Drug, and
Cosmetic Act (21 U.S.C. 321).
SEC. 112. PRESIDENTIAL WAIVER AUTHORITY.
(a) Case-by-Case Waiver Authority.--
(1) In general.--The President may waive, on a case-by-case
basis and for a period of not more than 180 days, a requirement
under section 104, 105, 106, 107, or 108 to impose or maintain
sanctions with respect to a person, and may waive the continued
imposition of such sanctions, not less than 30 days after the
President determines and reports to the appropriate congressional
committees that it is vital to the national security interests of
the United States to waive such sanctions.
(2) Renewal of waivers.--The President may, on a case-by-case
basis, renew a waiver under paragraph (1) for an additional period
of not more than 180 days if, not later than 15 days before that
waiver expires, the President makes the determination and submits
to the appropriate congressional committees a report described in
paragraph (1).
(3) Successive renewal.--The renewal authority provided under
paragraph (2) may be exercised for additional successive periods of
not more than 180 days if the President follows the procedures set
forth in paragraph (2), and submits the report described in
paragraph (1), for each such renewal.
(b) Contents of Waiver Reports.--Each report submitted under
subsection (a) in connection with a waiver of sanctions under section
104, 105, 106, 107, or 108 with respect to a person, or the renewal of
such a waiver, shall include--
(1) a specific and detailed rationale for the determination
that the waiver is vital to the national security interests of the
United States;
(2) a description of the activity that resulted in the person
being subject to sanctions;
(3) an explanation of any efforts made by the United States, as
applicable, to secure the cooperation of the government with
primary jurisdiction over the person or the location where the
activity described in paragraph (2) occurred in terminating or, as
appropriate, penalizing the activity; and
(4) an assessment of the significance of the activity described
in paragraph (2) in contributing to the ability of Iran to threaten
the interests of the United States or allies of the United States,
develop systems capable of delivering weapons of mass destruction,
support acts of international terrorism, or violate the human
rights of any person in Iran.
(c) Effect of Report on Waiver.--If the President submits a report
under subsection (a) in connection with a waiver of sanctions under
section 104, 105, 106, 107, or 108 with respect to a person, or the
renewal of such a waiver, the President shall not be required to impose
or maintain sanctions under section 104, 105, 106, 107, or 108, as
applicable, with respect to the person described in the report during
the 30-day period referred to in subsection (a).
TITLE II--SANCTIONS WITH RESPECT TO THE RUSSIAN FEDERATION AND
COMBATING TERRORISM AND ILLICIT FINANCING
SEC. 201. SHORT TITLE.
This title may be cited as the ``Countering Russian Influence in
Europe and Eurasia Act of 2017''.
Subtitle A--Sanctions and Other Measures With Respect to the Russian
Federation
SEC. 211. FINDINGS.
Congress makes the following findings:
(1) On March 6, 2014, President Barack Obama issued Executive
Order No. 13660 (79 Fed. Reg. 13493; relating to blocking property
of certain persons contributing to the situation in Ukraine), which
authorizes the Secretary of the Treasury, in consultation with the
Secretary of State, to impose sanctions on those determined to be
undermining democratic processes and institutions in Ukraine or
threatening the peace, security, stability, sovereignty, and
territorial integrity of Ukraine. President Obama subsequently
issued Executive Order No. 13661 (79 Fed. Reg. 15535; relating to
blocking property of additional persons contributing to the
situation in Ukraine) and Executive Order No. 13662 (79 Fed. Reg.
16169; relating to blocking property of additional persons
contributing to the situation in Ukraine) to expand sanctions on
certain persons contributing to the situation in Ukraine.
(2) On December 18, 2014, the Ukraine Freedom Support Act of
2014 was enacted (Public Law 113-272; 22 U.S.C. 8921 et seq.),
which includes provisions directing the President to impose
sanctions on foreign persons that the President determines to be
entities owned or controlled by the Government of the Russian
Federation or nationals of the Russian Federation that manufacture,
sell, transfer, or otherwise provide certain defense articles into
Syria.
(3) On April 1, 2015, President Obama issued Executive Order
No. 13694 (80 Fed. Reg. 18077; relating to blocking the property of
certain persons engaging in significant malicious cyber-enabled
activities), which authorizes the Secretary of the Treasury, in
consultation with the Attorney General and the Secretary of State,
to impose sanctions on persons determined to be engaged in
malicious cyber-hacking.
(4) On July 26, 2016, President Obama approved a Presidential
Policy Directive on United States Cyber Incident Coordination,
which states, ``certain cyber incidents that have significant
impacts on an entity, our national security, or the broader economy
require a unique approach to response efforts''.
(5) On December 29, 2016, President Obama issued an annex to
Executive Order No. 13694, which authorized sanctions on the
following entities and individuals:
(A) The Main Intelligence Directorate (also known as
Glavnoe Razvedyvatel'noe Upravlenie or the GRU) in Moscow,
Russian Federation.
(B) The Federal Security Service (also known as Federalnaya
Sluzhba Bezopasnosti or the FSB) in Moscow, Russian Federation.
(C) The Special Technology Center (also known as STLC, Ltd.
Special Technology Center St. Petersburg) in St. Petersburg,
Russian Federation.
(D) Zorsecurity (also known as Esage Lab) in Moscow,
Russian Federation.
(E) The autonomous noncommercial organization known as the
Professional Association of Designers of Data Processing
Systems (also known as ANO PO KSI) in Moscow, Russian
Federation.
(F) Igor Valentinovich Korobov.
(G) Sergey Aleksandrovich Gizunov.
(H) Igor Olegovich Kostyukov.
(I) Vladimir Stepanovich Alexseyev.
(6) On January 6, 2017, an assessment of the United States
intelligence community entitled, ``Assessing Russian Activities and
Intentions in Recent U.S. Elections'' stated, ``Russian President
Vladimir Putin ordered an influence campaign in 2016 aimed at the
United States presidential election.'' The assessment warns that
``Moscow will apply lessons learned from its Putin-ordered campaign
aimed at the U.S. Presidential election to future influence efforts
worldwide, including against U.S. allies and their election
processes''.
SEC. 212. SENSE OF CONGRESS.
It is the sense of Congress that the President--
(1) should continue to uphold and seek unity with European and
other key partners on sanctions implemented against the Russian
Federation, which have been effective and instrumental in
countering Russian aggression in Ukraine;
(2) should engage to the fullest extent possible with partner
governments with regard to closing loopholes, including the
allowance of extended prepayment for the delivery of goods and
commodities and other loopholes, in multilateral and unilateral
restrictive measures against the Russian Federation, with the aim
of maximizing alignment of those measures; and
(3) should increase efforts to vigorously enforce compliance
with sanctions in place as of the date of the enactment of this Act
with respect to the Russian Federation in response to the crisis in
eastern Ukraine, cyber intrusions and attacks, and human rights
violators in the Russian Federation.
PART 1--CONGRESSIONAL REVIEW OF SANCTIONS IMPOSED WITH RESPECT TO THE
RUSSIAN FEDERATION
SEC. 215. SHORT TITLE.
This part may be cited as the ``Russia Sanctions Review Act of
2017''.
SEC. 216. CONGRESSIONAL REVIEW OF CERTAIN ACTIONS RELATING TO
SANCTIONS IMPOSED WITH RESPECT TO THE RUSSIAN FEDERATION.
(a) Submission to Congress of Proposed Action.--
(1) In general.--Notwithstanding any other provision of law,
before taking any action described in paragraph (2), the President
shall submit to the appropriate congressional committees and
leadership a report that describes the proposed action and the
reasons for that action.
(2) Actions described.--
(A) In general.--An action described in this paragraph is--
(i) an action to terminate the application of any
sanctions described in subparagraph (B);
(ii) with respect to sanctions described in
subparagraph (B) imposed by the President with respect to a
person, an action to waive the application of those
sanctions with respect to that person; or
(iii) a licensing action that significantly alters
United States' foreign policy with regard to the Russian
Federation.
(B) Sanctions described.--The sanctions described in this
subparagraph are--
(i) sanctions provided for under--
(I) this title or any provision of law amended by
this title, including the Executive orders codified
under section 222;
(II) the Support for the Sovereignty, Integrity,
Democracy, and Economic Stability of Ukraine Act of
2014 (22 U.S.C. 8901 et seq.); or
(III) the Ukraine Freedom Support Act of 2014 (22
U.S.C. 8921 et seq.); and
(ii) the prohibition on access to the properties of the
Government of the Russian Federation located in Maryland
and New York that the President ordered vacated on December
29, 2016.
(3) Description of type of action.--Each report submitted under
paragraph (1) with respect to an action described in paragraph (2)
shall include a description of whether the action--
(A) is not intended to significantly alter United States
foreign policy with regard to the Russian Federation; or
(B) is intended to significantly alter United States
foreign policy with regard to the Russian Federation.
(4) Inclusion of additional matter.--
(A) In general.--Each report submitted under paragraph (1)
that relates to an action that is intended to significantly
alter United States foreign policy with regard to the Russian
Federation shall include a description of--
(i) the significant alteration to United States foreign
policy with regard to the Russian Federation;
(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.
(B) 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 clauses (ii) and (iii) of
subparagraph (A) with respect to a report submitted under
paragraph (1) that relates to an action that is not intended to
significantly alter United States foreign policy with regard to
the Russian Federation.
(5) Confidentiality of proprietary information.--Proprietary
information that can be associated with a particular person with
respect to an action described in paragraph (2) may be included in
a report submitted under paragraph (1) only if the appropriate
congressional committees and leadership provide assurances of
confidentiality, unless such person otherwise consents in writing
to such disclosure.
(6) Rule of construction.--Paragraph (2)(A)(iii) shall not be
construed to require the submission of a report under paragraph (1)
with respect to the routine issuance of a license that does not
significantly alter United States foreign policy with regard to the
Russian Federation.
(b) Period for Review by Congress.--
(1) In general.--During the period of 30 calendar days
beginning on the date on which the President submits a report under
subsection (a)(1)--
(A) 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 the Russian Federation, 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
(B) in the case of a report that relates to an action that
is intended to significantly alter United States foreign policy
with regard to the Russian Federation, 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.
(2) Exception.--The period for congressional review under
paragraph (1) of a report required to be submitted under subsection
(a)(1) 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.
(3) Limitation on actions during initial congressional review
period.--Notwithstanding any other provision of law, during the
period for congressional review provided for under paragraph (1) of
a report submitted under subsection (a)(1) proposing an action
described in subsection (a)(2), including any additional period for
such review as applicable under the exception provided in paragraph
(2), the President may not take that action unless a joint
resolution of approval with respect to that action is enacted in
accordance with subsection (c).
(4) 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 subsection (a)(1) proposing an action
described in subsection (a)(2) passes both Houses of Congress in
accordance with subsection (c), 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.
(5) 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 subsection (a)(1) proposing an action
described in subsection (a)(2) passes both Houses of Congress in
accordance with subsection (c), 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.
(6) 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 subsection
(a)(1) proposing an action described in subsection (a)(2) is
enacted in accordance with subsection (c), the President may not
take that action.
(c) Joint Resolutions of Disapproval or Approval Defined.--In this
subsection:
(1) Joint resolution of approval.--The term ``joint resolution
of approval'' means only a joint resolution of either House of
Congress--
(A) 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 the
Russian Federation.''; and
(B) 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 the
Russian Federation proposed by the President in the report
submitted to Congress under section 216(a)(1) of the Russia
Sanctions Review Act of 2017 on _______ relating to
________.'', with the first blank space being filled with the
appropriate date and the second blank space being filled with a
short description of the proposed action.
(2) Joint resolution of disapproval.--The term ``joint
resolution of disapproval'' means only a joint resolution of either
House of Congress--
(A) the title of which is as follows: ``A joint resolution
disapproving the President's proposal to take an action
relating to the application of certain sanctions with respect
to the Russian Federation.''; and
(B) the sole matter after the resolving clause of which is
the following: ``Congress disapproves of the action relating to
the application of sanctions imposed with respect to the
Russian Federation proposed by the President in the report
submitted to Congress under section 216(a)(1) of the Russia
Sanctions Review Act of 2017 on _______ relating to
________.'', with the first blank space being filled with the
appropriate date and the second blank space being filled with a
short description of the proposed action.
(3) Introduction.--During the period of 30 calendar days
provided for under subsection (b)(1), including any additional
period as applicable under the exception provided in subsection
(b)(2), a joint resolution of approval or joint resolution of
disapproval may be introduced--
(A) in the House of Representatives, by the majority leader
or the minority leader; and
(B) in the Senate, by the majority leader (or the majority
leader's designee) or the minority leader (or the minority
leader's designee).
(4) Floor consideration in house of representatives.--If a
committee of the House of Representatives to which a joint
resolution of approval or joint resolution of disapproval has been
referred has not reported the joint resolution within 10 calendar
days after the date of referral, that committee shall be discharged
from further consideration of the joint resolution.
(5) Consideration in the senate.--
(A) Committee referral.--A joint resolution of approval or
joint resolution of disapproval introduced in the Senate shall
be--
(i) referred to the Committee on Banking, Housing, and
Urban Affairs if the joint resolution relates to a report
under subsection (a)(3)(A) that relates to an action that
is not intended to significantly alter United States
foreign policy with regard to the Russian Federation; and
(ii) referred to the Committee on Foreign Relations if
the joint resolution relates to a report under subsection
(a)(3)(B) that relates to an action that is intended to
significantly alter United States foreign policy with
respect to the Russian Federation.
(B) Reporting and discharge.--If the committee to which a
joint resolution of approval or joint resolution of disapproval
was referred has not reported the joint resolution within 10
calendar days after the date of referral of the joint
resolution, that committee shall be discharged from further
consideration of the joint resolution and the joint resolution
shall be placed on the appropriate calendar.
(C) Proceeding to consideration.--Notwithstanding Rule XXII
of the Standing Rules of the Senate, it is in order at any time
after the Committee on Banking, Housing, and Urban Affairs or
the Committee on Foreign Relations, as the case may be, reports
a joint resolution of approval or joint resolution of
disapproval to the Senate or has been discharged from
consideration of such a joint resolution (even though a
previous motion to the same effect has been disagreed to) to
move to proceed to the consideration of the joint resolution,
and all points of order against the joint resolution (and
against consideration of the joint resolution) are waived. The
motion to proceed is not debatable. The motion is not subject
to a motion to postpone. A motion to reconsider the vote by
which the motion is agreed to or disagreed to shall not be in
order.
(D) Rulings of the chair on procedure.--Appeals from the
decisions of the Chair relating to the application of the rules
of the Senate, as the case may be, to the procedure relating to
a joint resolution of approval or joint resolution of
disapproval shall be decided without debate.
(E) Consideration of veto messages.--Debate in the Senate
of any veto message with respect to a joint resolution of
approval or joint resolution of disapproval, including all
debatable motions and appeals in connection with the joint
resolution, shall be limited to 10 hours, to be equally divided
between, and controlled by, the majority leader and the
minority leader or their designees.
(6) Rules relating to senate and house of representatives.--
(A) Treatment of senate joint resolution in house.--In the
House of Representatives, the following procedures shall apply
to a joint resolution of approval or a joint resolution of
disapproval received from the Senate (unless the House has
already passed a joint resolution relating to the same proposed
action):
(i) The joint resolution shall be referred to the
appropriate committees.
(ii) If a committee to which a joint resolution has
been referred has not reported the joint resolution within
2 calendar days after the date of referral, that committee
shall be discharged from further consideration of the joint
resolution.
(iii) Beginning on the third legislative day after each
committee to which a joint resolution has been referred
reports the joint resolution to the House or has been
discharged from further consideration thereof, it shall be
in order to move to proceed to consider the joint
resolution in the House. All points of order against the
motion are waived. Such a motion shall not be in order
after the House has disposed of a motion to proceed on the
joint resolution. The previous question shall be considered
as ordered on the motion to its adoption without
intervening motion. The motion shall not be debatable. A
motion to reconsider the vote by which the motion is
disposed of shall not be in order.
(iv) The joint resolution shall be considered as read.
All points of order against the joint resolution and
against its consideration are waived. The previous question
shall be considered as ordered on the joint resolution to
final passage without intervening motion except 2 hours of
debate equally divided and controlled by the sponsor of the
joint resolution (or a designee) and an opponent. A motion
to reconsider the vote on passage of the joint resolution
shall not be in order.
(B) Treatment of house joint resolution in senate.--
(i) If, before the passage by the Senate of a joint
resolution of approval or joint resolution of disapproval,
the Senate receives an identical joint resolution from the
House of Representatives, the following procedures shall
apply:
(I) That joint resolution shall not be referred to
a committee.
(II) With respect to that joint resolution--
(aa) the procedure in the Senate shall be the
same as if no joint resolution had been received
from the House of Representatives; but
(bb) the vote on passage shall be on the joint
resolution from the House of Representatives.
(ii) If, following passage of a joint resolution of
approval or joint resolution of disapproval in the Senate,
the Senate receives an identical joint resolution from the
House of Representatives, that joint resolution shall be
placed on the appropriate Senate calendar.
(iii) If a joint resolution of approval or a joint
resolution of disapproval is received from the House, and
no companion joint resolution has been introduced in the
Senate, the Senate procedures under this subsection shall
apply to the House joint resolution.
(C) Application to revenue measures.--The provisions of
this paragraph shall not apply in the House of Representatives
to a joint resolution of approval or joint resolution of
disapproval that is a revenue measure.
(7) Rules of house of representatives and senate.--This
subsection is enacted by Congress--
(A) as an exercise of the rulemaking power of the Senate
and the House of Representatives, respectively, and as such is
deemed a part of the rules of each House, respectively, and
supersedes other rules only to the extent that it is
inconsistent with such rules; and
(B) with full recognition of the constitutional right of
either House to change the rules (so far as relating to the
procedure of that House) at any time, in the same manner, and
to the same extent as in the case of any other rule of that
House.
(d) Appropriate Congressional Committees and Leadership Defined.--
In this section, the term ``appropriate congressional committees and
leadership'' means--
(1) the Committee on Banking, Housing, and Urban Affairs, the
Committee on Foreign Relations, and the majority and minority
leaders of the Senate; and
(2) the Committee on Financial Services, the Committee on
Foreign Affairs, and the Speaker, the majority leader, and the
minority leader of the House of Representatives.
PART 2--SANCTIONS WITH RESPECT TO THE RUSSIAN FEDERATION
SEC. 221. DEFINITIONS.
In this part:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Banking, Housing, and Urban Affairs,
the Committee on Foreign Relations, and the Committee on
Finance of the Senate; and
(B) the Committee on Foreign Affairs, the Committee on
Financial Services, and the Committee on Ways and Means of the
House of Representatives.
(2) Good.--The term ``good'' has the meaning given that term in
section 16 of the Export Administration Act of 1979 (50 U.S.C.
4618) (as continued in effect pursuant to the International
Emergency Economic Powers Act (50 U.S.C. 1701 et seq.)).
(3) International financial institution.--The term
``international financial institution'' has the meaning given that
term in section 1701(c) of the International Financial Institutions
Act (22 U.S.C. 262r(c)).
(4) 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.
(5) Person.--The term ``person'' means an individual or entity.
(6) United states person.--The term ``United States person''
means--
(A) a United States citizen or an alien lawfully admitted
for permanent residence to the United States; or
(B) an entity organized under the laws of the United States
or of any jurisdiction within the United States, including a
foreign branch of such an entity.
SEC. 222. CODIFICATION OF SANCTIONS RELATING TO THE RUSSIAN
FEDERATION.
(a) Codification.--United States sanctions provided for in
Executive Order No. 13660 (79 Fed. Reg. 13493; relating to blocking
property of certain persons contributing to the situation in Ukraine),
Executive Order No. 13661 (79 Fed. Reg. 15535; relating to blocking
property of additional persons contributing to the situation in
Ukraine), Executive Order No. 13662 (79 Fed. Reg. 16169; relating to
blocking property of additional persons contributing to the situation
in Ukraine), Executive Order No. 13685 (79 Fed. Reg. 77357; relating to
blocking property of certain persons and prohibiting certain
transactions with respect to the Crimea region of Ukraine), Executive
Order No. 13694 (80 Fed. Reg. 18077; relating to blocking the property
of certain persons engaging in significant malicious cyber-enabled
activities), and Executive Order No. 13757 (82 Fed. Reg. 1; relating to
taking additional steps to address the national emergency with respect
to significant malicious cyber-enabled activities), as in effect on the
day before the date of the enactment of this Act, including with
respect to all persons sanctioned under such Executive orders, shall
remain in effect except as provided in subsection (b).
(b) Termination of Certain Sanctions.--Subject to section 216, the
President may terminate the application of sanctions described in
subsection (a) that are imposed on a person in connection with activity
conducted by the person if the President submits to the appropriate
congressional committees a notice that--
(1) the person is not engaging in the activity that was the
basis for the sanctions or has taken significant verifiable steps
toward stopping the activity; and
(2) the President has received reliable assurances that the
person will not knowingly engage in activity subject to sanctions
described in subsection (a) in the future.
(c) Application of New Cyber Sanctions.--The President may waive
the initial application under subsection (a) of sanctions with respect
to a person under Executive Order No. 13694 or 13757 only if the
President submits to the appropriate congressional committees--
(1) a written determination that the waiver--
(A) is in the vital national security interests of the
United States; or
(B) will further the enforcement of this title; and
(2) a certification that the Government of the Russian
Federation has made significant efforts to reduce the number and
intensity of cyber intrusions conducted by that Government.
(d) Application of New Ukraine-Related Sanctions.--The President
may waive the initial application under subsection (a) of sanctions
with respect to a person under Executive Order No. 13660, 13661, 13662,
or 13685 only if the President submits to the appropriate congressional
committees--
(1) a written determination that the waiver--
(A) is in the vital national security interests of the
United States; or
(B) will further the enforcement of this title; and
(2) a certification that the Government of the Russian
Federation is taking steps to implement the Minsk Agreement to
address the ongoing conflict in eastern Ukraine, signed in Minsk,
Belarus, on February 11, 2015, by the leaders of Ukraine, Russia,
France, and Germany, the Minsk Protocol, which was agreed to on
September 5, 2014, and any successor agreements that are agreed to
by the Government of Ukraine.
SEC. 223. MODIFICATION OF IMPLEMENTATION OF EXECUTIVE ORDER NO.
13662.
(a) Determination That Certain Entities Are Subject to Sanctions.--
The Secretary of the Treasury may determine that a person meets one or
more of the criteria in section 1(a) of Executive Order No. 13662 if
that person is a state-owned entity operating in the railway or metals
and mining sector of the economy of the Russian Federation.
(b) Modification of Directive 1 With Respect to the Financial
Services Sector of the Russian Federation Economy.--Not later than 60
days after the date of the enactment of this Act, the Secretary of the
Treasury shall modify Directive 1 (as amended), dated September 12,
2014, issued by the Office of Foreign Assets Control under Executive
Order No. 13662, or any successor directive (which shall be effective
beginning on the date that is 60 days after the date of such
modification), to ensure that the directive prohibits the conduct by
United States persons or persons within the United States of all
transactions in, provision of financing for, and other dealings in new
debt of longer than 14 days maturity or new equity of persons
determined to be subject to the directive, their property, or their
interests in property.
(c) Modification of Directive 2 With Respect to the Energy Sector
of the Russian Federation Economy.--Not later than 60 days after the
date of the enactment of this Act, the Secretary of the Treasury shall
modify Directive 2 (as amended), dated September 12, 2014, issued by
the Office of Foreign Assets Control under Executive Order No. 13662,
or any successor directive (which shall be effective beginning on the
date that is 60 days after the date of such modification), to ensure
that the directive prohibits the conduct by United States persons or
persons within the United States of all transactions in, provision of
financing for, and other dealings in new debt of longer than 60 days
maturity of persons determined to be subject to the directive, their
property, or their interests in property.
(d) Modification of Directive 4.--Not later than 90 days after the
date of the enactment of this Act, the Secretary of the Treasury shall
modify Directive 4, dated September 12, 2014, issued by the Office of
Foreign Assets Control under Executive Order No. 13662, or any
successor directive (which shall be effective beginning on the date
that is 90 days after the date of such modification), to ensure that
the directive prohibits the provision, exportation, or reexportation,
directly or indirectly, by United States persons or persons within the
United States, of goods, services (except for financial services), or
technology in support of exploration or production for new deepwater,
Arctic offshore, or shale projects--
(1) that have the potential to produce oil; and
(2) that involve any person determined to be subject to the
directive or the property or interests in property of such a person
who has a controlling interest or a substantial non-controlling
ownership interest in such a project defined as not less than a 33
percent interest.
SEC. 224. IMPOSITION OF SANCTIONS WITH RESPECT TO ACTIVITIES OF THE
RUSSIAN FEDERATION UNDERMINING CYBERSECURITY.
(a) In General.--On and after the date that is 60 days after the
date of the enactment of this Act, the President shall--
(1) impose the sanctions described in subsection (b) with
respect to any person that the President determines--
(A) knowingly engages in significant activities undermining
cybersecurity against any person, including a democratic
institution, or government on behalf of the Government of the
Russian Federation; or
(B) is owned or controlled by, or acts or purports to act
for or on behalf of, directly or indirectly, a person described
in subparagraph (A);
(2) impose five or more of the sanctions described in section
235 with respect to any person that the President determines
knowingly materially assists, sponsors, or provides financial,
material, or technological support for, or goods or services
(except financial services) in support of, an activity described in
paragraph (1)(A); and
(3) impose three or more of the sanctions described in section
4(c) of the of the Ukraine Freedom Support Act of 2014 (22 U.S.C.
8923(c)) with respect to any person that the President determines
knowingly provides financial services in support of an activity
described in paragraph (1)(A).
(b) Sanctions Described.--The sanctions described in this
subsection are the following:
(1) Asset blocking.--The exercise of all powers granted to the
President by the International Emergency Economic Powers Act (50
U.S.C. 1701 et seq.) to the extent necessary to block and prohibit
all transactions in all property and interests in property of a
person determined by the President to be subject to subsection
(a)(1) 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.
(2) Exclusion from the united states and revocation of visa or
other documentation.--In the case of an alien determined by the
President to be subject to subsection (a)(1), denial of a visa to,
and exclusion from the United States of, the alien, and revocation
in accordance with section 221(i) of the Immigration and
Nationality Act (8 U.S.C. 1201(i)), of any visa or other
documentation of the alien.
(c) Application of New Cyber Sanctions.--The President may waive
the initial application under subsection (a) of sanctions with respect
to a person only if the President submits to the appropriate
congressional committees--
(1) a written determination that the waiver--
(A) is in the vital national security interests of the
United States; or
(B) will further the enforcement of this title; and
(2) a certification that the Government of the Russian
Federation has made significant efforts to reduce the number and
intensity of cyber intrusions conducted by that Government.
(d) Significant Activities Undermining Cybersecurity Defined.--In
this section, the term ``significant activities undermining
cybersecurity'' includes--
(1) significant efforts--
(A) to deny access to or degrade, disrupt, or destroy an
information and communications technology system or network; or
(B) to exfiltrate, degrade, corrupt, destroy, or release
information from such a system or network without authorization
for purposes of--
(i) conducting influence operations; or
(ii) causing a significant misappropriation of funds,
economic resources, trade secrets, personal
identifications, or financial information for commercial or
competitive advantage or private financial gain;
(2) significant destructive malware attacks; and
(3) significant denial of service activities.
SEC. 225. IMPOSITION OF SANCTIONS RELATING TO SPECIAL RUSSIAN CRUDE
OIL PROJECTS.
Section 4(b)(1) of the Ukraine Freedom Support Act of 2014 (22
U.S.C. 8923(b)(1)) is amended by striking ``on and after the date that
is 45 days after the date of the enactment of this Act, the President
may impose'' and inserting ``on and after the date that is 30 days
after the date of the enactment of the Countering Russian Influence in
Europe and Eurasia Act of 2017, the President shall impose, unless the
President determines that it is not in the national interest of the
United States to do so,''.
SEC. 226. IMPOSITION OF SANCTIONS WITH RESPECT TO RUSSIAN AND OTHER
FOREIGN FINANCIAL INSTITUTIONS.
Section 5 of the Ukraine Freedom Support Act of 2014 (22 U.S.C.
8924) is amended--
(1) in subsection (a)--
(A) by striking ``may impose'' and inserting ``shall
impose, unless the President determines that it is not in the
national interest of the United States to do so,''; and
(B) by striking ``on or after the date of the enactment of
this Act'' and inserting ``on or after the date of the
enactment of the Countering Russian Influence in Europe and
Eurasia Act of 2017''; and
(2) in subsection (b)--
(A) by striking ``may impose'' and inserting ``shall
impose, unless the President determines that it is not in the
national interest of the United States to do so,''; and
(B) by striking ``on or after the date that is 180 days
after the date of the enactment of this Act'' and inserting
``on or after the date that is 30 days after the date of the
enactment of the Countering Russian Influence in Europe and
Eurasia Act of 2017''.
SEC. 227. MANDATORY IMPOSITION OF SANCTIONS WITH RESPECT TO
SIGNIFICANT CORRUPTION IN THE RUSSIAN FEDERATION.
Section 9 of the Sovereignty, Integrity, Democracy, and Economic
Stability of Ukraine Act of 2014 (22 U.S.C. 8908(a)) is amended--
(1) in subsection (a)--
(A) in the matter preceding paragraph (1), by striking ``is
authorized and encouraged to'' and inserting ``shall''; and
(B) in paragraph (1)--
(i) by striking ``President determines is'' and
inserting ``President determines is, on or after the date
of the enactment of the Countering Russian Influence in
Europe and Eurasia Act of 2017,''; and
(ii) by inserting ``or elsewhere'' after ``in the
Russian Federation'';
(2) by redesignating subsection (d) as subsection (e);
(3) in subsection (c), by striking ``The President'' and
inserting ``except as provided in subsection (d), the President'';
and
(4) by inserting after subsection (c) the following:
``(d) Application of New Sanctions.--The President may waive the
initial application of sanctions under subsection (b) with respect to a
person only if the President submits to the appropriate congressional
committees--
``(1) a written determination that the waiver--
``(A) is in the vital national security interests of the
United States; or
``(B) will further the enforcement of this Act; and
``(2) a certification that the Government of the Russian
Federation is taking steps to implement the Minsk Agreement to
address the ongoing conflict in eastern Ukraine, signed in Minsk,
Belarus, on February 11, 2015, by the leaders of Ukraine, Russia,
France, and Germany, the Minsk Protocol, which was agreed to on
September 5, 2014, and any successor agreements that are agreed to
by the Government of Ukraine.''.
SEC. 228. MANDATORY IMPOSITION OF SANCTIONS WITH RESPECT TO CERTAIN
TRANSACTIONS WITH FOREIGN SANCTIONS EVADERS AND SERIOUS HUMAN
RIGHTS ABUSERS IN THE RUSSIAN FEDERATION.
(a) In General.--The Support for the Sovereignty, Integrity,
Democracy, and Economic Stability of Ukraine Act of 2014 (22 U.S.C.
8901 et seq.) is amended by adding at the end the following:
``SEC. 10. MANDATORY IMPOSITION OF SANCTIONS WITH RESPECT TO CERTAIN
TRANSACTIONS WITH PERSONS THAT EVADE SANCTIONS IMPOSED WITH
RESPECT TO THE RUSSIAN FEDERATION.
``(a) In General.--The President shall impose the sanctions
described in subsection (b) with respect to a foreign person if the
President determines that the foreign person knowingly, on or after the
date of the enactment of the Countering Russian Influence in Europe and
Eurasia Act of 2017--
``(1) materially violates, attempts to violate, conspires to
violate, or causes a violation of any license, order, regulation,
or prohibition contained in or issued pursuant to any covered
Executive order, this Act, or the Ukraine Freedom Support Act of
2014 (22 U.S.C. 8921 et seq.); or
``(2) facilitates a significant transaction or transactions,
including deceptive or structured transactions, for or on behalf
of--
``(A) any person subject to sanctions imposed by the United
States with respect to the Russian Federation; or
``(B) any child, spouse, parent, or sibling of an
individual described in subparagraph (A).
``(b) Sanctions Described.--The sanctions described in this
subsection are the exercise of all powers granted to the President by
the International Emergency Economic Powers Act (50 U.S.C. 1701 et
seq.) to the extent necessary to block and prohibit all transactions in
all property and interests in property of a person determined by the
President to be subject to subsection (a) 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.
``(c) Implementation; Penalties.--
``(1) Implementation.--The President may exercise all
authorities provided to the President under sections 203 and 205 of
the International Emergency Economic Powers Act (50 U.S.C. 1702 and
1704) to carry out subsection (b).
``(2) Penalties.--A person that violates, attempts to violate,
conspires to violate, or causes a violation of subsection (b) or
any regulation, license, or order issued to carry out subsection
(b) shall be subject to the penalties set forth in subsections (b)
and (c) of section 206 of the International Emergency Economic
Powers Act (50 U.S.C. 1705) to the same extent as a person that
commits an unlawful act described in subsection (a) of that
section.
``(d) Application of New Sanctions.--The President may waive the
initial application of sanctions under subsection (b) with respect to a
person only if the President submits to the appropriate congressional
committees--
``(1) a written determination that the waiver--
``(A) is in the vital national security interests of the
United States; or
``(B) will further the enforcement of this Act;
``(2) in the case of sanctions imposed under this section in
connection with a covered Executive order described in subparagraph
(A), (B), (C), or (D) of subsection (f)(1), a certification that
the Government of the Russian Federation is taking steps to
implement the Minsk Agreement to address the ongoing conflict in
eastern Ukraine, signed in Minsk, Belarus, on February 11, 2015, by
the leaders of Ukraine, Russia, France, and Germany, the Minsk
Protocol, which was agreed to on September 5, 2014, and any
successor agreements that are agreed to by the Government of
Ukraine; and
``(3) in the case of sanctions imposed under this section in
connection with a covered Executive order described in
subparagraphs (E) or (F) of subsection (f)(1), a certification that
the Government of the Russian Federation has made significant
efforts to reduce the number and intensity of cyber intrusions
conducted by that Government.
``(e) Termination.--Subject to section 216 of the Russia Sanctions
Review Act of 2017, the President may terminate the application of
sanctions under subsection (b) with respect to a person if the
President submits to the appropriate congressional committees--
``(1) a notice of and justification for the termination; and
``(2) a notice that--
``(A) the person is not engaging in the activity that was
the basis for the sanctions or has taken significant verifiable
steps toward stopping the activity; and
``(B) the President has received reliable assurances that
the person will not knowingly engage in activity subject to
sanctions under subsection (a) in the future.
``(f) Definitions.--In this section:
``(1) Covered executive order.--The term `covered Executive
order' means any of the following:
``(A) Executive Order No. 13660 (79 Fed. Reg. 13493;
relating to blocking property of certain persons contributing
to the situation in Ukraine).
``(B) Executive Order No. 13661 (79 Fed. Reg. 15535;
relating to blocking property of additional persons
contributing to the situation in Ukraine).
``(C) Executive Order No. 13662 (79 Fed. Reg. 16169;
relating to blocking property of additional persons
contributing to the situation in Ukraine).
``(D) Executive Order No. 13685 (79 Fed. Reg. 77357;
relating to blocking property of certain persons and
prohibiting certain transactions with respect to the Crimea
region of Ukraine).
``(E) Executive Order No. 13694 (80 Fed. Reg. 18077;
relating to blocking the property of certain persons engaging
in significant malicious cyber-enabled activities), relating to
the Russian Federation.
``(F) Executive Order No. 13757 (82 Fed. Reg. 1; relating
to taking additional steps to address the national emergency
with respect to significant malicious cyber-enabled
activities), relating to the Russian Federation.
``(2) Foreign person.--The term `foreign person' has the
meaning given such term in section 595.304 of title 31, Code of
Federal Regulations (as in effect on the date of the enactment of
this section).
``(3) Structured.--The term `structured', with respect to a
transaction, has the meaning given the term `structure' in
paragraph (xx) of section 1010.100 of title 31, Code of Federal
Regulations (or any corresponding similar regulation or ruling).
``SEC. 11. MANDATORY IMPOSITION OF SANCTIONS WITH RESPECT TO
TRANSACTIONS WITH PERSONS RESPONSIBLE FOR HUMAN RIGHTS ABUSES.
``(a) In General.--The President shall impose the sanctions
described in subsection (b) with respect to a foreign person if the
President determines that the foreign person, based on credible
information, on or after the date of the enactment of this section--
``(1) is responsible for, complicit in, or responsible for
ordering, controlling, or otherwise directing, the commission of
serious human rights abuses in any territory forcibly occupied or
otherwise controlled by the Government of the Russian Federation;
``(2) materially assists, sponsors, or provides financial,
material, or technological support for, or goods or services to, a
foreign person described in paragraph (1); or
``(3) is owned or controlled by, or acts or purports to act for
or on behalf of, directly or indirectly, a foreign person described
in paragraph (1).
``(b) Sanctions Described.--
``(1) Asset blocking.--The exercise of all powers granted to
the President by the International Emergency Economic Powers Act
(50 U.S.C. 1701 et seq.) to the extent necessary to block and
prohibit all transactions in all property and interests in property
of a person determined by the President to be subject to subsection
(a) 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.
``(2) Exclusion from the united states and revocation of visa
or other documentation.--In the case of an alien determined by the
President to be subject to subsection (a), denial of a visa to, and
exclusion from the United States of, the alien, and revocation in
accordance with section 221(i) of the Immigration and Nationality
Act (8 U.S.C. 1201(i)), of any visa or other documentation of the
alien.
``(c) Application of New Sanctions.--The President may waive the
initial application of sanctions under subsection (b) with respect to a
person only if the President submits to the appropriate congressional
committees--
``(1) a written determination that the waiver--
``(A) is in the vital national security interests of the
United States; or
``(B) will further the enforcement of this Act; and
``(2) a certification that the Government of the Russian
Federation has made efforts to reduce serious human rights abuses
in territory forcibly occupied or otherwise controlled by that
Government.
``(d) Implementation; Penalties.--
``(1) Implementation.--The President may exercise all
authorities provided to the President under sections 203 and 205 of
the International Emergency Economic Powers Act (50 U.S.C. 1702 and
1704) to carry out subsection (b)(1).
``(2) Penalties.--A person that violates, attempts to violate,
conspires to violate, or causes a violation of subsection (b)(1) or
any regulation, license, or order issued to carry out subsection
(b)(1) shall be subject to the penalties set forth in subsections
(b) and (c) of section 206 of the International Emergency Economic
Powers Act (50 U.S.C. 1705) to the same extent as a person that
commits an unlawful act described in subsection (a) of that
section.
``(e) Termination.--Subject to section 216 of Russia Sanctions
Review Act of 2017, the President may terminate the application of
sanctions under subsection (b) with respect to a person if the
President submits to the appropriate congressional committees--
``(1) a notice of and justification for the termination; and
``(2) a notice--
``(A) that--
``(i) the person is not engaging in the activity that
was the basis for the sanctions or has taken significant
verifiable steps toward stopping the activity; and
``(ii) the President has received reliable assurances
that the person will not knowingly engage in activity
subject to sanctions under subsection (a) in the future; or
``(B) that the President determines that insufficient basis
exists for the determination by the President under subsection
(a) with respect to the person.''.
(b) Definition of Appropriate Congressional Committees.--Section
2(2) of the Support for the Sovereignty, Integrity, Democracy, and
Economic Stability of Ukraine Act of 2014 (22 U.S.C. 8901(2)) is
amended--
(1) in subparagraph (A), by inserting ``the Committee on
Banking, Housing, and Urban Affairs,'' before ``the Committee on
Foreign Relations''; and
(2) in subparagraph (B), by inserting ``the Committee on
Financial Services'' before ``the Committee on Foreign Affairs''.
SEC. 229. NOTIFICATIONS TO CONGRESS UNDER UKRAINE FREEDOM SUPPORT
ACT OF 2014.
(a) Sanctions Relating to Defense and Energy Sectors of the Russian
Federation.--Section 4 of the Ukraine Freedom Support Act of 2014 (22
U.S.C. 8923) is amended--
(1) by redesignating subsections (g) and (h) as subsections (h)
and (i), respectively;
(2) by inserting after subsection (f) the following:
``(g) Notifications and Certifications to Congress.--
``(1) Imposition of sanctions.--The President shall notify the
appropriate congressional committees in writing not later than 15
days after imposing sanctions with respect to a foreign person
under subsection (a) or (b).
``(2) Termination of sanctions with respect to russian
producers, transferors, or brokers of defense articles.--Subject to
section 216 of the Russia Sanctions Review Act of 2017, the
President may terminate the imposition of sanctions under
subsection (a)(2) with respect to a foreign person if the President
submits to the appropriate congressional committees--
``(A) a notice of and justification for the termination;
and
``(B) a notice that--
``(i) the foreign person is not engaging in the
activity that was the basis for the sanctions or has taken
significant verifiable steps toward stopping the activity;
and
``(ii) the President has received reliable assurances
that the foreign person will not knowingly engage in
activity subject to sanctions under subsection (a)(2) in
the future.''; and
(3) in subparagraph (B)(ii) of subsection (a)(3), by striking
``subsection (h)'' and inserting ``subsection (i)''.
(b) Sanctions on Russian and Other Foreign Financial
Institutions.--Section 5 of the Ukraine Freedom Support Act of 2014 (22
U.S.C. 8924) is amended--
(1) by redesignating subsections (e) and (f) as subsections (f)
and (g), respectively;
(2) by inserting after subsection (d) the following:
``(e) Notification to Congress on Imposition of Sanctions.--The
President shall notify the appropriate congressional committees in
writing not later than 15 days after imposing sanctions with respect to
a foreign financial institution under subsection (a) or (b).''; and
(3) in subsection (g), as redesignated by paragraph (1), by
striking ``section 4(h)'' and inserting ``section 4(i)''.
SEC. 230. STANDARDS FOR TERMINATION OF CERTAIN SANCTIONS WITH
RESPECT TO THE RUSSIAN FEDERATION.
(a) Sanctions Relating to Undermining the Peace, Security,
Stability, Sovereignty, or Territorial Integrity of Ukraine.--Section 8
of the Sovereignty, Integrity, Democracy, and Economic Stability of
Ukraine Act of 2014 (22 U.S.C. 8907) is amended--
(1) by redesignating subsection (d) as subsection (e); and
(2) by inserting after subsection (c) the following:
``(d) Termination.--Subject to section 216 of the Russia Sanctions
Review Act of 2017, the President may terminate the application of
sanctions under subsection (b) with respect to a person if the
President submits to the appropriate congressional committees a notice
that--
``(1) the person is not engaging in the activity that was the
basis for the sanctions or has taken significant verifiable steps
toward stopping the activity; and
``(2) the President has received reliable assurances that the
person will not knowingly engage in activity subject to sanctions
under subsection (a) in the future.''.
(b) Sanctions Relating to Corruption.--Section 9 of the
Sovereignty, Integrity, Democracy, and Economic Stability of Ukraine
Act of 2014 (22 U.S.C. 8908) is amended--
(1) by redesignating subsection (d) as subsection (e); and
(2) by inserting after subsection (c) the following:
``(d) Termination.--Subject to section 216 of the Russia Sanctions
Review Act of 2017, the President may terminate the application of
sanctions under subsection (b) with respect to a person if the
President submits to the appropriate congressional committees a notice
that--
``(1) the person is not engaging in the activity that was the
basis for the sanctions or has taken significant verifiable steps
toward stopping the activity; and
``(2) the President has received reliable assurances that the
person will not knowingly engage in activity subject to sanctions
under subsection (a) in the future.''.
SEC. 231. IMPOSITION OF SANCTIONS WITH RESPECT TO PERSONS ENGAGING
IN TRANSACTIONS WITH THE INTELLIGENCE OR DEFENSE SECTORS OF THE
GOVERNMENT OF THE RUSSIAN FEDERATION.
(a) In General.--On and after the date that is 180 days after the
date of the enactment of this Act, the President shall impose five or
more of the sanctions described in section 235 with respect to a person
the President determines knowingly, on or after such date of enactment,
engages in a significant transaction with a person that is part of, or
operates for or on behalf of, the defense or intelligence sectors of
the Government of the Russian Federation, including the Main
Intelligence Agency of the General Staff of the Armed Forces of the
Russian Federation or the Federal Security Service of the Russian
Federation.
(b) Application of New Sanctions.--The President may waive the
initial application of sanctions under subsection (a) with respect to a
person only if the President submits to the appropriate congressional
committees--
(1) a written determination that the waiver--
(A) is in the vital national security interests of the
United States; or
(B) will further the enforcement of this title; and
(2) a certification that the Government of the Russian
Federation has made significant efforts to reduce the number and
intensity of cyber intrusions conducted by that Government.
(c) Delay of Imposition of Sanctions.--The President may delay the
imposition of sanctions under subsection (a) with respect to a person
if the President certifies to the appropriate congressional committees,
not less frequently than every 180 days while the delay is in effect,
that the person is substantially reducing the number of significant
transactions described in subsection (a) in which that person engages.
(d) Requirement To Issue Guidance.--Not later than 60 days after
the date of the enactment of this Act, the President shall issue
regulations or other guidance to specify the persons that are part of,
or operate for or on behalf of, the defense and intelligence sectors of
the Government of the Russian Federation.
(e) Penalties.--A person that violates, attempts to violate,
conspires to violate, or causes a violation of subsection (a) or any
regulation, license, or order issued to carry out subsection (a) shall
be subject to the penalties set forth in subsections (b) and (c) of
section 206 of the International Emergency Economic Powers Act (50
U.S.C. 1705) to the same extent as a person that commits an unlawful
act described in subsection (a) of that section.
SEC. 232. SANCTIONS WITH RESPECT TO THE DEVELOPMENT OF PIPELINES IN
THE RUSSIAN FEDERATION.
(a) In General.--The President, in coordination with allies of the
United States, may impose five or more of the sanctions described in
section 235 with respect to a person if the President determines that
the person knowingly, on or after the date of the enactment of this
Act, makes an investment described in subsection (b) or sells, leases,
or provides to the Russian Federation, for the construction of Russian
energy export pipelines, goods, services, technology, information, or
support described in subsection (c)--
(1) any of which has a fair market value of $1,000,000 or more;
or
(2) that, during a 12-month period, have an aggregate fair
market value of $5,000,000 or more.
(b) Investment Described.--An investment described in this
subsection is an investment that directly and significantly contributes
to the enhancement of the ability of the Russian Federation to
construct energy export pipelines.
(c) Goods, Services, Technology, Information, or Support
Described.--Goods, services, technology, information, or support
described in this subsection are goods, services, technology,
information, or support that could directly and significantly
facilitate the maintenance or expansion of the construction,
modernization, or repair of energy export pipelines by the Russian
Federation.
SEC. 233. SANCTIONS WITH RESPECT TO INVESTMENT IN OR FACILITATION
OF PRIVATIZATION OF STATE-OWNED ASSETS BY THE RUSSIAN FEDERATION.
(a) In General.--The President shall impose five or more of the
sanctions described in section 235 if the President determines that a
person, with actual knowledge, on or after the date of the enactment of
this Act, makes an investment of $10,000,000 or more (or any
combination of investments of not less than $1,000,000 each, which in
the aggregate equals or exceeds $10,000,000 in any 12-month period), or
facilitates such an investment, if the investment directly and
significantly contributes to the ability of the Russian Federation to
privatize state-owned assets in a manner that unjustly benefits--
(1) officials of the Government of the Russian Federation; or
(2) close associates or family members of those officials.
(b) Application of New Sanctions.--The President may waive the
initial application of sanctions under subsection (a) with respect to a
person only if the President submits to the appropriate congressional
committees--
(1) a written determination that the waiver--
(A) is in the vital national security interests of the
United States; or
(B) will further the enforcement of this title; and
(2) a certification that the Government of the Russian
Federation is taking steps to implement the Minsk Agreement to
address the ongoing conflict in eastern Ukraine, signed in Minsk,
Belarus, on February 11, 2015, by the leaders of Ukraine, Russia,
France, and Germany, the Minsk Protocol, which was agreed to on
September 5, 2014, and any successor agreements that are agreed to
by the Government of Ukraine.
SEC. 234. SANCTIONS WITH RESPECT TO THE TRANSFER OF ARMS AND
RELATED MATERIEL TO SYRIA.
(a) Imposition of Sanctions.--
(1) In general.--The President shall impose on a foreign person
the sanctions described in subsection (b) if the President
determines that such foreign person has, on or after the date of
the enactment of this Act, knowingly exported, transferred, or
otherwise provided to Syria significant financial, material, or
technological support that contributes materially to the ability of
the Government of Syria to--
(A) acquire or develop chemical, biological, or nuclear
weapons or related technologies;
(B) acquire or develop ballistic or cruise missile
capabilities;
(C) acquire or develop destabilizing numbers and types of
advanced conventional weapons;
(D) acquire significant defense articles, defense services,
or defense information (as such terms are defined under the
Arms Export Control Act (22 U.S.C. 2751 et seq.)); or
(E) acquire items designated by the President for purposes
of the United States Munitions List under section 38(a)(1) of
the Arms Export Control Act (22 U.S.C. 2778(a)(1)).
(2) Applicability to other foreign persons.--The sanctions
described in subsection (b) shall also be imposed on any foreign
person that--
(A) is a successor entity to a foreign person described in
paragraph (1); or
(B) is owned or controlled by, or has acted for or on
behalf of, a foreign person described in paragraph (1).
(b) Sanctions Described.--The sanctions to be imposed on a foreign
person described in subsection (a) are the following:
(1) Blocking of property.--The President shall exercise all
powers granted by the International Emergency Economic Powers Act
(50 U.S.C. 1701 et seq.) (except that the requirements of section
202 of such Act (50 U.S.C. 1701) shall not apply) to the extent
necessary to block and prohibit all transactions in all property
and interests in property of the foreign person 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.
(2) Aliens ineligible for visas, admission, or parole.--
(A) Exclusion from the united states.--If the foreign
person is an individual, the Secretary of State shall deny a
visa to, and the Secretary of Homeland Security shall exclude
from the United States, the foreign person.
(B) Current visas revoked.--
(i) In general.--The issuing consular officer, the
Secretary of State, or the Secretary of Homeland Security
(or a designee of one of such Secretaries) shall revoke any
visa or other entry documentation issued to the foreign
person regardless of when issued.
(ii) Effect of revocation.--A revocation under clause
(i) shall take effect immediately and shall automatically
cancel any other valid visa or entry documentation that is
in the possession of the foreign person.
(c) Waiver.--Subject to section 216, the President may waive the
application of sanctions under subsection (b) with respect to a person
if the President determines that such a waiver is in the national
security interest of the United States.
(d) Definitions.--In this section:
(1) Financial, material, or technological support.--The term
``financial, material, or technological support'' has the meaning
given such term in section 542.304 of title 31, Code of Federal
Regulations (or any corresponding similar regulation or ruling).
(2) Foreign person.--The term ``foreign person'' has the
meaning given such term in section 594.304 of title 31, Code of
Federal Regulations (or any corresponding similar regulation or
ruling).
(3) Syria.--The term ``Syria'' has the meaning given such term
in section 542.316 of title 31, Code of Federal Regulations (or any
corresponding similar regulation or ruling).
SEC. 235. SANCTIONS DESCRIBED.
(a) Sanctions Described.--The sanctions to be imposed with respect
to a person under section 224(a)(2), 231(b), 232(a), or 233(a) are the
following:
(1) Export-import bank assistance for exports to sanctioned
persons.--The President may direct the Export-Import Bank of the
United States not to give approval to the issuance of any
guarantee, insurance, extension of credit, or participation in the
extension of credit in connection with the export of any goods or
services to the sanctioned person.
(2) Export sanction.--The President may order the United States
Government not to issue any specific license and not to grant any
other specific permission or authority to export any goods or
technology to the sanctioned person under--
(A) the Export Administration Act of 1979 (50 U.S.C. 4601
et seq.) (as continued in effect pursuant to the International
Emergency Economic Powers Act (50 U.S.C. 1701 et seq.));
(B) the Arms Export Control Act (22 U.S.C. 2751 et seq.);
(C) the Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.);
or
(D) any other statute that requires the prior review and
approval of the United States Government as a condition for the
export or reexport of goods or services.
(3) Loans from united states financial institutions.--The
President may prohibit any United States financial institution from
making loans or providing credits to the sanctioned person totaling
more than $10,000,000 in any 12-month period unless the person is
engaged in activities to relieve human suffering and the loans or
credits are provided for such activities.
(4) Loans from international financial institutions.--The
President may direct the United States executive director to each
international financial institution to use the voice and vote of
the United States to oppose any loan from the international
financial institution that would benefit the sanctioned person.
(5) Prohibitions on financial institutions.--The following
prohibitions may be imposed against the sanctioned person if that
person is a financial institution:
(A) Prohibition on designation as primary dealer.--Neither
the Board of Governors of the Federal Reserve System nor the
Federal Reserve Bank of New York may designate, or permit the
continuation of any prior designation of, the financial
institution as a primary dealer in United States Government
debt instruments.
(B) Prohibition on service as a repository of government
funds.--The financial institution may not serve as agent of the
United States Government or serve as repository for United
States Government funds.
The imposition of either sanction under subparagraph (A) or (B)
shall be treated as one sanction for purposes of subsection (b),
and the imposition of both such sanctions shall be treated as two
sanctions for purposes of subsection (b).
(6) Procurement sanction.--The United States Government may not
procure, or enter into any contract for the procurement of, any
goods or services from the sanctioned person.
(7) Foreign exchange.--The President may, pursuant to such
regulations as the President may prescribe, prohibit any
transactions in foreign exchange that are subject to the
jurisdiction of the United States and in which the sanctioned
person has any interest.
(8) Banking transactions.--The President may, pursuant to such
regulations as the President may prescribe, prohibit any transfers
of credit or payments between financial institutions or by,
through, or to any financial institution, to the extent that such
transfers or payments are subject to the jurisdiction of the United
States and involve any interest of the sanctioned person.
(9) Property transactions.--The President may, pursuant to such
regulations as the President may prescribe, prohibit any person
from--
(A) acquiring, holding, withholding, using, transferring,
withdrawing, transporting, importing, or exporting any property
that is subject to the jurisdiction of the United States and
with respect to which the sanctioned person has any interest;
(B) dealing in or exercising any right, power, or privilege
with respect to such property; or
(C) conducting any transaction involving such property.
(10) Ban on investment in equity or debt of sanctioned
person.--The President may, pursuant to such regulations or
guidelines as the President may prescribe, prohibit any United
States person from investing in or purchasing significant amounts
of equity or debt instruments of the sanctioned person.
(11) Exclusion of corporate officers.--The President may direct
the Secretary of State to deny a visa to, and the Secretary of
Homeland Security to exclude from the United States, any alien that
the President determines is a corporate officer or principal of, or
a shareholder with a controlling interest in, the sanctioned
person.
(12) Sanctions on principal executive officers.--The President
may impose on the principal executive officer or officers of the
sanctioned person, or on persons performing similar functions and
with similar authorities as such officer or officers, any of the
sanctions under this subsection.
(b) Sanctioned Person Defined.--In this section, the term
``sanctioned person'' means a person subject to sanctions under section
224(a)(2), 231(b), 232(a), or 233(a).
SEC. 236. EXCEPTIONS, WAIVER, AND TERMINATION.
(a) Exceptions.--The provisions of this part and amendments made by
this part shall not apply with respect to the following:
(1) Activities subject to the reporting requirements under
title V of the National Security Act of 1947 (50 U.S.C. 3091 et
seq.), or any authorized intelligence activities of the United
States.
(2) The admission of an alien to the United States if such
admission is necessary to comply with United States obligations
under the Agreement between the United Nations and the United
States of America regarding the Headquarters of the United Nations,
signed at Lake Success June 26, 1947, and entered into force
November 21, 1947, under the Convention on Consular Relations, done
at Vienna April 24, 1963, and entered into force March 19, 1967, or
under other international agreements.
(b) Waiver of Sanctions That Are Imposed.--Subject to section 216,
if the President imposes sanctions with respect to a person under this
part or the amendments made by this part, the President may waive the
application of those sanctions if the President determines that such a
waiver is in the national security interest of the United States.
(c) Termination.--Subject to section 216, the President may
terminate the application of sanctions under section 224, 231, 232,
233, or 234 with respect to a person if the President submits to the
appropriate congressional committees--
(1) a notice of and justification for the termination; and
(2) a notice that--
(A) the person is not engaging in the activity that was the
basis for the sanctions or has taken significant verifiable
steps toward stopping the activity; and
(B) the President has received reliable assurances that the
person will not knowingly engage in activity subject to
sanctions under this part in the future.
SEC. 237. EXCEPTION RELATING TO ACTIVITIES OF THE NATIONAL
AERONAUTICS AND SPACE ADMINISTRATION.
(a) In General.--This Act and the amendments made by this Act shall
not apply with respect to activities of the National Aeronautics and
Space Administration.
(b) Rule of Construction.--Nothing in this Act or the amendments
made by this Act shall be construed to authorize the imposition of any
sanction or other condition, limitation, restriction, or prohibition,
that directly or indirectly impedes the supply by any entity of the
Russian Federation of any product or service, or the procurement of
such product or service by any contractor or subcontractor of the
United States or any other entity, relating to or in connection with
any space launch conducted for--
(1) the National Aeronautics and Space Administration; or
(2) any other non-Department of Defense customer.
SEC. 238. RULE OF CONSTRUCTION.
Nothing in this part or the amendments made by this part shall be
construed--
(1) to supersede the limitations or exceptions on the use of
rocket engines for national security purposes under section 1608 of
the Carl Levin and Howard P. ``Buck'' McKeon National Defense
Authorization Act for Fiscal Year 2015 (Public Law 113-291; 128
Stat. 3626; 10 U.S.C. 2271 note), as amended by section 1607 of the
National Defense Authorization Act for Fiscal Year 2016 (Public Law
114-92; 129 Stat. 1100) and section 1602 of the National Defense
Authorization Act for Fiscal Year 2017 (Public Law 114-328; 130
Stat. 2582); or
(2) to prohibit a contractor or subcontractor of the Department
of Defense from acquiring components referred to in such section
1608.
PART 3--REPORTS
SEC. 241. REPORT ON OLIGARCHS AND PARASTATAL ENTITIES OF THE
RUSSIAN FEDERATION.
(a) In General.--Not later than 180 days after the date of the
enactment of this Act, the Secretary of the Treasury, in consultation
with the Director of National Intelligence and the Secretary of State,
shall submit to the appropriate congressional committees a detailed
report on the following:
(1) Senior foreign political figures and oligarchs in the
Russian Federation, including the following:
(A) An identification of the most significant senior
foreign political figures and oligarchs in the Russian
Federation, as determined by their closeness to the Russian
regime and their net worth.
(B) An assessment of the relationship between individuals
identified under subparagraph (A) and President Vladimir Putin
or other members of the Russian ruling elite.
(C) An identification of any indices of corruption with
respect to those individuals.
(D) The estimated net worth and known sources of income of
those individuals and their family members (including spouses,
children, parents, and siblings), including assets,
investments, other business interests, and relevant beneficial
ownership information.
(E) An identification of the non-Russian business
affiliations of those individuals.
(2) Russian parastatal entities, including an assessment of the
following:
(A) The emergence of Russian parastatal entities and their
role in the economy of the Russian Federation.
(B) The leadership structures and beneficial ownership of
those entities.
(C) The scope of the non-Russian business affiliations of
those entities.
(3) The exposure of key economic sectors of the United States
to Russian politically exposed persons and parastatal entities,
including, at a minimum, the banking, securities, insurance, and
real estate sectors.
(4) The likely effects of imposing debt and equity restrictions
on Russian parastatal entities, as well as the anticipated effects
of adding Russian parastatal entities to the list of specially
designated nationals and blocked persons maintained by the Office
of Foreign Assets Control of the Department of the Treasury.
(5) The potential impacts of imposing secondary sanctions with
respect to Russian oligarchs, Russian state-owned enterprises, and
Russian parastatal entities, including impacts on the entities
themselves and on the economy of the Russian Federation, as well as
on the economies of the United States and allies of the United
States.
(b) Form of Report.--The report required under subsection (a) shall
be submitted in an unclassified form, but may contain a classified
annex.
(c) Definitions.--In this section:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Banking, Housing, and Urban Affairs,
the Committee on Foreign Relations, and the Committee on
Finance of the Senate; and
(B) the Committee on Foreign Affairs, the Committee on
Financial Services, and the Committee on Ways and Means of the
House of Representatives.
(2) Senior foreign political figure.--The term ``senior foreign
political figure'' has the meaning given that term in section
1010.605 of title 31, Code of Federal Regulations (or any
corresponding similar regulation or ruling).
SEC. 242. REPORT ON EFFECTS OF EXPANDING SANCTIONS TO INCLUDE
SOVEREIGN DEBT AND DERIVATIVE PRODUCTS.
(a) In General.--Not later than 180 days after the date of the
enactment of this Act, the Secretary of the Treasury, in consultation
with the Director of National Intelligence and the Secretary of State,
shall submit to the appropriate congressional committees a report
describing in detail the potential effects of expanding sanctions under
Directive 1 (as amended), dated September 12, 2014, issued by the
Office of Foreign Assets Control under Executive Order No. 13662 (79
Fed. Reg. 16169; relating to blocking property of additional persons
contributing to the situation in Ukraine), or any successor directive,
to include sovereign debt and the full range of derivative products.
(b) Form of Report.--The report required under subsection (a) shall
be submitted in an unclassified form, but may contain a classified
annex.
(c) Appropriate Congressional Committees Defined.--In this section,
the term ``appropriate congressional committees'' means--
(1) the Committee on Banking, Housing, and Urban Affairs, the
Committee on Foreign Relations, and the Committee on Finance of the
Senate; and
(2) the Committee on Foreign Affairs, the Committee on
Financial Services, and the Committee on Ways and Means of the
House of Representatives.
SEC. 243. REPORT ON ILLICIT FINANCE RELATING TO THE RUSSIAN
FEDERATION.
(a) In General.--Not later than 1 year after the date of the
enactment of this Act, and not later than the end of each 1-year period
thereafter until 2021, the Secretary of the Treasury shall submit to
the appropriate congressional committees a report describing
interagency efforts in the United States to combat illicit finance
relating to the Russian Federation.
(b) Elements.--The report required by subsection (a) shall contain
a summary of efforts by the United States to do the following:
(1) Identify, investigate, map, and disrupt illicit financial
flows linked to the Russian Federation if such flows affect the
United States financial system or those of major allies of the
United States.
(2) Conduct outreach to the private sector, including
information sharing efforts to strengthen compliance efforts by
entities, including financial institutions, to prevent illicit
financial flows described in paragraph (1).
(3) Engage and coordinate with allied international partners on
illicit finance, especially in Europe, to coordinate efforts to
uncover and prosecute the networks responsible for illicit
financial flows described in paragraph (1), including examples of
that engagement and coordination.
(4) Identify foreign sanctions evaders and loopholes within the
sanctions regimes of foreign partners of the United States.
(5) Expand the number of real estate geographic targeting
orders or other regulatory actions, as appropriate, to degrade
illicit financial activity relating to the Russian Federation in
relation to the financial system of the United States.
(6) Provide support to counter those involved in illicit
finance relating to the Russian Federation across all appropriate
law enforcement, intelligence, regulatory, and financial
authorities of the Federal Government, including by imposing
sanctions with respect to or prosecuting those involved.
(7) In the case of the Department of the Treasury and the
Department of Justice, investigate or otherwise develop major
cases, including a description of those cases.
(c) Briefing.--After submitting a report under this section, the
Secretary of the Treasury shall provide briefings to the appropriate
congressional committees with respect to that report.
(d) Coordination.--The Secretary of the Treasury shall coordinate
with the Attorney General, the Director of National Intelligence, the
Secretary of Homeland Security, and the Secretary of State in preparing
each report under this section.
(e) Form.--Each report submitted under this section shall be
submitted in unclassified form, but may contain a classified annex.
(f) Definitions.--In this section:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Banking, Housing, and Urban Affairs,
the Committee on Foreign Relations, and the Committee on
Finance of the Senate; and
(B) the Committee on Foreign Affairs, the Committee on
Financial Services, and the Committee on Ways and Means of the
House of Representatives.
(2) Illicit finance.--The term ``illicit finance'' means the
financing of terrorism, narcotics trafficking, or proliferation,
money laundering, or other forms of illicit financing domestically
or internationally, as defined by the President.
Subtitle B--Countering Russian Influence in Europe and Eurasia
SEC. 251. FINDINGS.
Congress makes the following findings:
(1) The Government of the Russian Federation has sought to
exert influence throughout Europe and Eurasia, including in the
former states of the Soviet Union, by providing resources to
political parties, think tanks, and civil society groups that sow
distrust in democratic institutions and actors, promote xenophobic
and illiberal views, and otherwise undermine European unity. The
Government of the Russian Federation has also engaged in well-
documented corruption practices as a means toward undermining and
buying influence in European and Eurasian countries.
(2) The Government of the Russian Federation has largely
eliminated a once-vibrant Russian-language independent media sector
and severely curtails free and independent media within the borders
of the Russian Federation. Russian-language media organizations
that are funded and controlled by the Government of the Russian
Federation and disseminate information within and outside of the
Russian Federation routinely traffic in anti-Western
disinformation, while few independent, fact-based media sources
provide objective reporting for Russian-speaking audiences inside
or outside of the Russian Federation.
(3) The Government of the Russian Federation continues to
violate its commitments under the Memorandum on Security Assurances
in connection with Ukraine's Accession to the Treaty on the Non-
Proliferation of Nuclear Weapons, done at Budapest December 5,
1994, and the Conference on Security and Co-operation in Europe
Final Act, concluded at Helsinki August 1, 1975 (commonly referred
to as the ``Helsinki Final Act''), which laid the ground-work for
the establishment of the Organization for Security and Co-operation
in Europe, of which the Russian Federation is a member, by its
illegal annexation of Crimea in 2014, its illegal occupation of
South Ossetia and Abkhazia in Georgia in 2008, and its ongoing
destabilizing activities in eastern Ukraine.
(4) The Government of the Russian Federation continues to
ignore the terms of the August 2008 ceasefire agreement relating to
Georgia, which requires the withdrawal of Russian Federation
troops, free access by humanitarian groups to the regions of South
Ossetia and Abkhazia, and monitoring of the conflict areas by the
European Union Monitoring Mission.
(5) The Government of the Russian Federation is failing to
comply with the terms of the Minsk Agreement to address the ongoing
conflict in eastern Ukraine, signed in Minsk, Belarus, on February
11, 2015, by the leaders of Ukraine, Russia, France, and Germany,
as well as the Minsk Protocol, which was agreed to on September 5,
2014.
(6) The Government of the Russian Federation is--
(A) in violation of the Treaty between the United States of
America and the Union of Soviet Socialist Republics on the
Elimination of their Intermediate-Range and Shorter-Range
Missiles, signed at Washington December 8, 1987, and entered
into force June 1, 1988 (commonly known as the ``INF Treaty'');
and
(B) failing to meet its obligations under the Treaty on
Open Skies, done at Helsinki March 24, 1992, and entered into
force January 1, 2002 (commonly known as the ``Open Skies
Treaty'').
SEC. 252. SENSE OF CONGRESS.
It is the sense of Congress that--
(1) the Government of the Russian Federation bears
responsibility for the continuing violence in Eastern Ukraine,
including the death on April 24, 2017, of Joseph Stone, a citizen
of the United States working as a monitor for the Organization for
Security and Co-operation in Europe;
(2) the President should call on the Government of the Russian
Federation--
(A) to withdraw all of its forces from the territories of
Georgia, Ukraine, and Moldova;
(B) to return control of the borders of those territories
to their respective governments; and
(C) to cease all efforts to undermine the popularly elected
governments of those countries;
(3) the Government of the Russian Federation has applied, and
continues to apply, to the countries and peoples of Georgia and
Ukraine, traditional uses of force, intelligence operations, and
influence campaigns, which represent clear and present threats to
the countries of Europe and Eurasia;
(4) in response, the countries of Europe and Eurasia should
redouble efforts to build resilience within their institutions,
political systems, and civil societies;
(5) the United States supports the institutions that the
Government of the Russian Federation seeks to undermine, including
the North Atlantic Treaty Organization and the European Union;
(6) a strong North Atlantic Treaty Organization is critical to
maintaining peace and security in Europe and Eurasia;
(7) the United States should continue to work with the European
Union as a partner against aggression by the Government of the
Russian Federation, coordinating aid programs, development
assistance, and other counter-Russian efforts;
(8) the United States should encourage the establishment of a
commission for media freedom within the Council of Europe, modeled
on the Venice Commission regarding rule of law issues, that would
be chartered to provide governments with expert recommendations on
maintaining legal and regulatory regimes supportive of free and
independent media and an informed citizenry able to distinguish
between fact-based reporting, opinion, and disinformation;
(9) in addition to working to strengthen the North Atlantic
Treaty Organization and the European Union, the United States
should work with the individual countries of Europe and Eurasia--
(A) to identify vulnerabilities to aggression,
disinformation, corruption, and so-called hybrid warfare by the
Government of the Russian Federation;
(B) to establish strategic and technical plans for
addressing those vulnerabilities;
(C) to ensure that the financial systems of those countries
are not being used to shield illicit financial activity by
officials of the Government of the Russian Federation or
individuals in President Vladimir Putin's inner circle who have
been enriched through corruption;
(D) to investigate and prosecute cases of corruption by
Russian actors; and
(E) to work toward full compliance with the Convention on
Combating Bribery of Foreign Public Officials in International
Business Transactions (commonly referred to as the ``Anti-
Bribery Convention'') of the Organization for Economic Co-
operation and Development; and
(10) the President of the United States should use the
authority of the President to impose sanctions under--
(A) the Sergei Magnitsky Rule of Law Accountability Act of
2012 (title IV of Public Law 112-208; 22 U.S.C. 5811 note); and
(B) the Global Magnitsky Human Rights Accountability Act
(subtitle F of title XII of Public Law 114-328; 22 U.S.C. 2656
note).
SEC. 253. STATEMENT OF POLICY.
The United States, consistent with the principle of ex injuria jus
non oritur, supports the policy known as the ``Stimson Doctrine'' and
thus does not recognize territorial changes effected by force,
including the illegal invasions and occupations of Abkhazia, South
Ossetia, Crimea, Eastern Ukraine, and Transnistria.
SEC. 254. COORDINATING AID AND ASSISTANCE ACROSS EUROPE AND
EURASIA.
(a) Authorization of Appropriations.--There are authorized to be
appropriated for the Countering Russian Influence Fund $250,000,000 for
fiscal years 2018 and 2019.
(b) Use of Funds.--Amounts in the Countering Russian Influence Fund
shall be used to effectively implement, prioritized in the following
order and subject to the availability of funds, the following goals:
(1) To assist in protecting critical infrastructure and
electoral mechanisms from cyberattacks in the following countries:
(A) Countries that are members of the North Atlantic Treaty
Organization or the European Union that the Secretary of State
determines--
(i) are vulnerable to influence by the Russian
Federation; and
(ii) lack the economic capability to effectively
respond to aggression by the Russian Federation without the
support of the United States.
(B) Countries that are participating in the enlargement
process of the North Atlantic Treaty Organization or the
European Union, including Albania, Bosnia and Herzegovina,
Georgia, Macedonia, Moldova, Kosovo, Serbia, and Ukraine.
(2) To combat corruption, improve the rule of law, and
otherwise strengthen independent judiciaries and prosecutors
general offices in the countries described in paragraph (1).
(3) To respond to the humanitarian crises and instability
caused or aggravated by the invasions and occupations of Georgia
and Ukraine by the Russian Federation.
(4) To improve participatory legislative processes and legal
education, political transparency and competition, and compliance
with international obligations in the countries described in
paragraph (1).
(5) To build the capacity of civil society, media, and other
nongovernmental organizations countering the influence and
propaganda of the Russian Federation to combat corruption,
prioritize access to truthful information, and operate freely in
all regions in the countries described in paragraph (1).
(6) To assist the Secretary of State in executing the functions
specified in section 1287(b) of the National Defense Authorization
Act for Fiscal Year 2017 (Public Law 114-328; 22 U.S.C. 2656 note)
for the purposes of recognizing, understanding, exposing, and
countering propaganda and disinformation efforts by foreign
governments, in coordination with the relevant regional Assistant
Secretary or Assistant Secretaries of the Department of State.
(c) Revision of Activities for Which Amounts May Be Used.--The
Secretary of State may modify the goals described in subsection (b) if,
not later than 15 days before revising such a goal, the Secretary
notifies the appropriate congressional committees of the revision.
(d) Implementation.--
(1) In general.--The Secretary of State shall, acting through
the Coordinator of United States Assistance to Europe and Eurasia
(authorized pursuant to section 601 of the Support for East
European Democracy (SEED) Act of 1989 (22 U.S.C. 5461) and section
102 of the Freedom for Russia and Emerging Eurasian Democracies and
Open Markets Support Act of 1992 (22 U.S.C. 5812)), and in
consultation with the Administrator for the United States Agency
for International Development, the Director of the Global
Engagement Center of the Department of State, the Secretary of
Defense, the Chairman of the Broadcasting Board of Governors, and
the heads of other relevant Federal agencies, coordinate and carry
out activities to achieve the goals described in subsection (b).
(2) Method.--Activities to achieve the goals described in
subsection (b) shall be carried out through--
(A) initiatives of the United States Government;
(B) Federal grant programs such as the Information Access
Fund; or
(C) nongovernmental or international organizations, such as
the Organization for Security and Co-operation in Europe, the
National Endowment for Democracy, the Black Sea Trust, the
Balkan Trust for Democracy, the Prague Civil Society Centre,
the North Atlantic Treaty Organization Strategic Communications
Centre of Excellence, the European Endowment for Democracy, and
related organizations.
(3) Report on implementation.--
(A) In general.--Not later than April 1 of each year, the
Secretary of State, acting through the Coordinator of United
States Assistance to Europe and Eurasia, shall submit to the
appropriate congressional committees a report on the programs
and activities carried out to achieve the goals described in
subsection (b) during the preceding fiscal year.
(B) Elements.--Each report required by subparagraph (A)
shall include, with respect to each program or activity
described in that subparagraph--
(i) the amount of funding for the program or activity;
(ii) the goal described in subsection (b) to which the
program or activity relates; and
(iii) an assessment of whether or not the goal was met.
(e) Coordination With Global Partners.--
(1) In general.--In order to maximize cost efficiency,
eliminate duplication, and speed the achievement of the goals
described in subsection (b), the Secretary of State shall ensure
coordination with--
(A) the European Union and its institutions;
(B) the governments of countries that are members of the
North Atlantic Treaty Organization or the European Union; and
(C) international organizations and quasi-governmental
funding entities that carry out programs and activities that
seek to accomplish the goals described in subsection (b).
(2) Report by secretary of state.--Not later than April 1 of
each year, the Secretary of State shall submit to the appropriate
congressional committees a report that includes--
(A) the amount of funding provided to each country referred
to in subsection (b) by--
(i) the European Union or its institutions;
(ii) the government of each country that is a member of
the European Union or the North Atlantic Treaty
Organization; and
(iii) international organizations and quasi-
governmental funding entities that carry out programs and
activities that seek to accomplish the goals described in
subsection (b); and
(B) an assessment of whether the funding described in
subparagraph (A) is commensurate with funding provided by the
United States for those goals.
(f) Rule of Construction.--Nothing in this section shall be
construed to apply to or limit United States foreign assistance not
provided using amounts available in the Countering Russian Influence
Fund.
(g) Ensuring Adequate Staffing for Governance Activities.--In order
to ensure that the United States Government is properly focused on
combating corruption, improving rule of law, and building the capacity
of civil society, media, and other nongovernmental organizations in
countries described in subsection (b)(1), the Secretary of State shall
establish a pilot program for Foreign Service officer positions focused
on governance and anticorruption activities in such countries.
SEC. 255. REPORT ON MEDIA ORGANIZATIONS CONTROLLED AND FUNDED BY
THE GOVERNMENT OF THE RUSSIAN FEDERATION.
(a) In General.--Not later than 90 days after the date of the
enactment of this Act, and annually thereafter, the President shall
submit to the appropriate congressional committees a report that
includes a description of media organizations that are controlled and
funded by the Government of the Russian Federation, and any affiliated
entities, whether operating within or outside the Russian Federation,
including broadcast and satellite-based television, radio, Internet,
and print media organizations.
(b) Form of Report.--The report required by subsection (a) shall be
submitted in unclassified form but may include a classified annex.
SEC. 256. REPORT ON RUSSIAN FEDERATION INFLUENCE ON ELECTIONS IN
EUROPE AND EURASIA.
(a) In General.--Not later than 90 days after the date of the
enactment of this Act, and annually thereafter, the President shall
submit to the appropriate congressional committees and leadership a
report on funds provided by, or funds the use of which was directed by,
the Government of the Russian Federation or any Russian person with the
intention of influencing the outcome of any election or campaign in any
country in Europe or Eurasia during the preceding year, including
through direct support to any political party, candidate, lobbying
campaign, nongovernmental organization, or civic organization.
(b) Form of Report.--Each report required by subsection (a) shall
be submitted in unclassified form but may include a classified annex.
(c) Definitions.--In this section:
(1) Appropriate congressional committees and leadership.--The
term ``appropriate congressional committees and leadership''
means--
(A) the Committee on Foreign Relations, the Committee on
Banking, Housing, and Urban Affairs, the Committee on Armed
Services, the Committee on Homeland Security and Governmental
Affairs, the Committee on Appropriations, the Select Committee
on Intelligence, and the majority and minority leaders of the
Senate; and
(B) the Committee on Foreign Affairs, the Committee on
Financial Services, the Committee on Armed Services, the
Committee on Homeland Security, the Committee on
Appropriations, the Permanent Select Committee on Intelligence,
and the Speaker, the majority leader, and the minority leader
of the House of Representatives.
(2) Russian person.--The term ``Russian person'' means--
(A) an individual who is a citizen or national of the
Russian Federation; or
(B) an entity organized under the laws of the Russian
Federation or otherwise subject to the jurisdiction of the
Government of the Russian Federation.
SEC. 257. UKRANIAN ENERGY SECURITY.
(a) Statement of Policy.--It is the policy of the United States--
(1) to support the Government of Ukraine in restoring its
sovereign and territorial integrity;
(2) to condemn and oppose all of the destabilizing efforts by
the Government of the Russian Federation in Ukraine in violation of
its obligations and international commitments;
(3) to never recognize the illegal annexation of Crimea by the
Government of the Russian Federation or the separation of any
portion of Ukrainian territory through the use of military force;
(4) to deter the Government of the Russian Federation from
further destabilizing and invading Ukraine and other independent
countries in Central and Eastern Europe and the Caucuses;
(5) to assist in promoting reform in regulatory oversight and
operations in Ukraine's energy sector, including the establishment
and empowerment of an independent regulatory organization;
(6) to encourage and support fair competition, market
liberalization, and reliability in Ukraine's energy sector;
(7) to help Ukraine and United States allies and partners in
Europe reduce their dependence on Russian energy resources,
especially natural gas, which the Government of the Russian
Federation uses as a weapon to coerce, intimidate, and influence
other countries;
(8) to work with European Union member states and European
Union institutions to promote energy security through developing
diversified and liberalized energy markets that provide diversified
sources, suppliers, and routes;
(9) to continue to oppose the NordStream 2 pipeline given its
detrimental impacts on the European Union's energy security, gas
market development in Central and Eastern Europe, and energy
reforms in Ukraine; and
(10) that the United States Government should prioritize the
export of United States energy resources in order to create
American jobs, help United States allies and partners, and
strengthen United States foreign policy.
(b) Plan To Promote Energy Security in Ukraine.--
(1) In general.--The Secretary of State, in coordination with
the Administrator of the United States Agency for International
Development and the Secretary of Energy, shall work with the
Government of Ukraine to develop a plan to increase energy security
in Ukraine, increase the amount of energy produced in Ukraine, and
reduce Ukraine's reliance on energy imports from the Russian
Federation.
(2) Elements.--The plan developed under paragraph (1) shall
include strategies for market liberalization, effective regulation
and oversight, supply diversification, energy reliability, and
energy efficiency, such as through supporting--
(A) the promotion of advanced technology and modern
operating practices in Ukraine's oil and gas sector;
(B) modern geophysical and meteorological survey work as
needed followed by international tenders to help attract
qualified investment into exploration and development of areas
with untapped resources in Ukraine;
(C) a broadening of Ukraine's electric power transmission
interconnection with Europe;
(D) the strengthening of Ukraine's capability to maintain
electric power grid stability and reliability;
(E) independent regulatory oversight and operations of
Ukraine's gas market and electricity sector;
(F) the implementation of primary gas law including
pricing, tariff structure, and legal regulatory implementation;
(G) privatization of government owned energy companies
through credible legal frameworks and a transparent process
compliant with international best practices;
(H) procurement and transport of emergency fuel supplies,
including reverse pipeline flows from Europe;
(I) provision of technical assistance for crisis planning,
crisis response, and public outreach;
(J) repair of infrastructure to enable the transport of
fuel supplies;
(K) repair of power generating or power transmission
equipment or facilities; and
(L) improved building energy efficiency and other measures
designed to reduce energy demand in Ukraine.
(3) Reports.--
(A) Implementation of ukraine freedom support act of 2014
provisions.--Not later than 180 days after the date of the
enactment of this Act, the Secretary of State shall submit to
the appropriate congressional committees a report detailing the
status of implementing the provisions required under section
7(c) of the Ukraine Freedom Support Act of 2014 (22 U.S.C.
8926(c)), including detailing the plans required under that
section, the level of funding that has been allocated to and
expended for the strategies set forth under that section, and
progress that has been made in implementing the strategies
developed pursuant to that section.
(B) In general.--Not later than 180 days after the date of
the enactment of this Act, and every 180 days thereafter, the
Secretary of State shall submit to the appropriate
congressional committees a report detailing the plan developed
under paragraph (1), the level of funding that has been
allocated to and expended for the strategies set forth in
paragraph (2), and progress that has been made in implementing
the strategies.
(C) Briefings.--The Secretary of State, or a designee of
the Secretary, shall brief the appropriate congressional
committees not later than 30 days after the submission of each
report under subparagraph (B). In addition, the Department of
State shall make relevant officials available upon request to
brief the appropriate congressional committees on all available
information that relates directly or indirectly to Ukraine or
energy security in Eastern Europe.
(D) Appropriate congressional committees defined.--In this
paragraph, the term ``appropriate congressional committees''
means--
(i) the Committee on Foreign Relations and the
Committee on Appropriations of the Senate; and
(ii) the Committee on Foreign Affairs and the Committee
on Appropriations of the House of Representatives.
(c) Supporting Efforts of Countries in Europe and Eurasia To
Decrease Their Dependence on Russian Sources of Energy.--
(1) Findings.--Congress makes the following findings:
(A) The Government of the Russian Federation uses its
strong position in the energy sector as leverage to manipulate
the internal politics and foreign relations of the countries of
Europe and Eurasia.
(B) This influence is based not only on the Russian
Federation's oil and natural gas resources, but also on its
state-owned nuclear power and electricity companies.
(2) Sense of congress.--It is the sense of Congress that--
(A) the United States should assist the efforts of the
countries of Europe and Eurasia to enhance their energy
security through diversification of energy supplies in order to
lessen dependencies on Russian Federation energy resources and
state-owned entities; and
(B) the Export-Import Bank of the United States and the
Overseas Private Investment Corporation should play key roles
in supporting critical energy projects that contribute to that
goal.
(3) Use of countering russian influence fund to provide
technical assistance.--Amounts in the Countering Russian Influence
Fund pursuant to section 254 shall be used to provide technical
advice to countries described in subsection (b)(1) of such section
designed to enhance energy security and lessen dependence on energy
from Russian Federation sources.
(d) Authorization of Appropriations.--There is authorized to be
appropriated for the Department of State a total of $30,000,000 for
fiscal years 2018 and 2019 to carry out the strategies set forth in
subsection (b)(2) and other activities under this section related to
the promotion of energy security in Ukraine.
(e) Rule of Construction.--Nothing in this section shall be
construed as affecting the responsibilities required and authorities
provided under section 7 of the Ukraine Freedom Support Act of 2014 (22
U.S.C. 8926).
SEC. 258. TERMINATION.
The provisions of this subtitle shall terminate on the date that is
5 years after the date of the enactment of this Act.
SEC. 259. APPROPRIATE CONGRESSIONAL COMMITTEES DEFINED.
Except as otherwise provided, in this subtitle, the term
``appropriate congressional committees'' means--
(1) the Committee on Foreign Relations, the Committee on
Banking, Housing, and Urban Affairs, the Committee on Armed
Services, the Committee on Homeland Security and Governmental
Affairs, the Committee on Appropriations, and the Select Committee
on Intelligence of the Senate; and
(2) the Committee on Foreign Affairs, the Committee on
Financial Services, the Committee on Armed Services, the Committee
on Homeland Security, the Committee on Appropriations, and the
Permanent Select Committee on Intelligence of the House of
Representatives.
Subtitle C--Combating Terrorism and Illicit Financing
PART 1--NATIONAL STRATEGY FOR COMBATING TERRORIST AND OTHER ILLICIT
FINANCING
SEC. 261. DEVELOPMENT OF NATIONAL STRATEGY.
(a) In General.--The President, acting through the Secretary,
shall, in consultation with the Attorney General, the Secretary of
State, the Secretary of Homeland Security, the Director of National
Intelligence, the Director of the Office of Management and Budget, and
the appropriate Federal banking agencies and Federal functional
regulators, develop a national strategy for combating the financing of
terrorism and related forms of illicit finance.
(b) Transmittal to Congress.--
(1) In general.--Not later than 1 year after the date of the
enactment of this Act, the President shall submit to the
appropriate congressional committees a comprehensive national
strategy developed in accordance with subsection (a).
(2) Updates.--Not later than January 31, 2020, and January 31,
2022, the President shall submit to the appropriate congressional
committees updated versions of the national strategy submitted
under paragraph (1).
(c) Separate Presentation of Classified Material.--Any part of the
national strategy that involves information that is properly classified
under criteria established by the President shall be submitted to
Congress separately in a classified annex and, if requested by the
chairman or ranking member of one of the appropriate congressional
committees, as a briefing at an appropriate level of security.
SEC. 262. CONTENTS OF NATIONAL STRATEGY.
The strategy described in section 261 shall contain the following:
(1) Evaluation of existing efforts.--An assessment of the
effectiveness of and ways in which the United States is currently
addressing the highest levels of risk of various forms of illicit
finance, including those identified in the documents entitled
``2015 National Money Laundering Risk Assessment'' and ``2015
National Terrorist Financing Risk Assessment'', published by the
Department of the Treasury and a description of how the strategy is
integrated into, and supports, the broader counter terrorism
strategy of the United States.
(2) Goals, objectives, and priorities.--A comprehensive,
research-based, long-range, quantifiable discussion of goals,
objectives, and priorities for disrupting and preventing illicit
finance activities within and transiting the financial system of
the United States that outlines priorities to reduce the incidence,
dollar value, and effects of illicit finance.
(3) Threats.--An identification of the most significant illicit
finance threats to the financial system of the United States.
(4) Reviews and proposed changes.--Reviews of enforcement
efforts, relevant regulations and relevant provisions of law and,
if appropriate, discussions of proposed changes determined to be
appropriate to ensure that the United States pursues coordinated
and effective efforts at all levels of government, and with
international partners of the United States, in the fight against
illicit finance.
(5) Detection and prosecution initiatives.--A description of
efforts to improve, as necessary, detection and prosecution of
illicit finance, including efforts to ensure that--
(A) subject to legal restrictions, all appropriate data
collected by the Federal Government that is relevant to the
efforts described in this section be available in a timely
fashion to--
(i) all appropriate Federal departments and agencies;
and
(ii) as appropriate and consistent with section 314 of
the International Money Laundering Abatement and Financial
Anti-Terrorism Act of 2001 (31 U.S.C. 5311 note), to
financial institutions to assist the financial institutions
in efforts to comply with laws aimed at curbing illicit
finance; and
(B) appropriate efforts are undertaken to ensure that
Federal departments and agencies charged with reducing and
preventing illicit finance make thorough use of publicly
available data in furtherance of this effort.
(6) The role of the private financial sector in prevention of
illicit finance.--A discussion of ways to enhance partnerships
between the private financial sector and Federal departments and
agencies with regard to the prevention and detection of illicit
finance, including--
(A) efforts to facilitate compliance with laws aimed at
stopping such illicit finance while maintaining the
effectiveness of such efforts; and
(B) providing guidance to strengthen internal controls and
to adopt on an industry-wide basis more effective policies.
(7) Enhancement of intergovernmental cooperation.--A discussion
of ways to combat illicit finance by enhancing--
(A) cooperative efforts between and among Federal, State,
and local officials, including State regulators, State and
local prosecutors, and other law enforcement officials; and
(B) cooperative efforts with and between governments of
countries and with and between multinational institutions with
expertise in fighting illicit finance, including the Financial
Action Task Force and the Egmont Group of Financial
Intelligence Units.
(8) Trend analysis of emerging illicit finance threats.--A
discussion of and data regarding trends in illicit finance,
including evolving forms of value transfer such as so-called
cryptocurrencies, other methods that are computer,
telecommunications, or Internet-based, cyber crime, or any other
threats that the Secretary may choose to identify.
(9) Budget priorities.--A multiyear budget plan that identifies
sufficient resources needed to successfully execute the full range
of missions called for in this section.
(10) Technology enhancements.--An analysis of current and
developing ways to leverage technology to improve the effectiveness
of efforts to stop the financing of terrorism and other forms of
illicit finance, including better integration of open-source data.
PART 2--ENHANCING ANTITERRORISM TOOLS OF THE DEPARTMENT OF THE TREASURY
SEC. 271. IMPROVING ANTITERROR FINANCE MONITORING OF FUNDS
TRANSFERS.
(a) Study.--
(1) In general.--To improve the ability of the Department of
the Treasury to better track cross-border fund transfers and
identify potential financing of terrorist or other forms of illicit
finance, the Secretary shall carry out a study to assess--
(A) the potential efficacy of requiring banking regulators
to establish a pilot program to provide technical assistance to
depository institutions and credit unions that wish to provide
account services to money services businesses serving
individuals in Somalia;
(B) whether such a pilot program could be a model for
improving the ability of United States persons to make
legitimate funds transfers through transparent and easily
monitored channels while preserving strict compliance with the
Bank Secrecy Act (Public Law 91-508; 84 Stat. 1114) and related
controls aimed at stopping money laundering and the financing
of terrorism; and
(C) consistent with current legal requirements regarding
confidential supervisory information, the potential impact of
allowing money services businesses to share certain State
examination information with depository institutions and credit
unions, or whether another appropriate mechanism could be
identified to allow a similar exchange of information to give
the depository institutions and credit unions a better
understanding of whether an individual money services business
is adequately meeting its anti-money laundering and counter-
terror financing obligations to combat money laundering, the
financing of terror, or related illicit finance.
(2) Public input.--The Secretary should solicit and consider
public input as appropriate in developing the study required under
subsection (a).
(b) Report.--Not later than 270 days after the date of the
enactment of this Act, the Secretary shall submit to the Committee on
Banking, Housing, and Urban Affairs and the Committee on Foreign
Relations of the Senate and the Committee on Financial Services and the
Committee on Foreign Affairs of the House of Representatives a report
that contains all findings and determinations made in carrying out the
study required under subsection (a).
SEC. 272. SENSE OF CONGRESS ON INTERNATIONAL COOPERATION REGARDING
TERRORIST FINANCING INTELLIGENCE.
It is the sense of Congress that the Secretary, acting through the
Under Secretary for Terrorism and Financial Crimes, should intensify
work with foreign partners to help the foreign partners develop
intelligence analytic capacities, in a financial intelligence unit,
finance ministry, or other appropriate agency, that are--
(1) commensurate to the threats faced by the foreign partner;
and
(2) designed to better integrate intelligence efforts with the
anti-money laundering and counter-terrorist financing regimes of
the foreign partner.
SEC. 273. EXAMINING THE COUNTER-TERROR FINANCING ROLE OF THE
DEPARTMENT OF THE TREASURY IN EMBASSIES.
Not later than 180 days after the date of the enactment of this
Act, the Secretary shall submit to the Committee on Banking, Housing,
and Urban Affairs and the Committee on Foreign Relations of the Senate
and the Committee on Financial Services and the Committee on Foreign
Affairs of the House of Representatives a report that contains--
(1) a list of the United States embassies in which a full-time
Department of the Treasury financial attache is stationed and a
description of how the interests of the Department of the Treasury
relating to terrorist financing and money laundering are addressed
(via regional attaches or otherwise) at United States embassies
where no such attaches are present;
(2) a list of the United States embassies at which the
Department of the Treasury has assigned a technical assistance
advisor from the Office of Technical Assistance of the Department
of the Treasury;
(3) an overview of how Department of the Treasury financial
attaches and technical assistance advisors assist in efforts to
counter illicit finance, to include money laundering, terrorist
financing, and proliferation financing; and
(4) an overview of patterns, trends, or other issues identified
by the Department of the Treasury and whether resources are
sufficient to address these issues.
SEC. 274. INCLUSION OF SECRETARY OF THE TREASURY ON THE NATIONAL
SECURITY COUNCIL.
(a) In General.--Section 101(c)(1) of the National Security Act of
1947 (50 U.S.C. 3021(c)(1)) is amended by inserting ``the Secretary of
the Treasury,'' before ``and such other officers''.
(b) Rule of Construction.--The amendment made by subsection (a) may
not be construed to authorize the National Security Council to have a
professional staff level that exceeds the limitation set forth under
section 101(e)(3) of the National Security Act of 1947 (50 U.S.C.
3021(e)(3)).
SEC. 275. INCLUSION OF ALL FUNDS.
(a) In General.--Section 5326 of title 31, United States Code, is
amended--
(1) in the heading of such section, by striking ``coin and
currency'';
(2) in subsection (a)--
(A) by striking ``subtitle and'' and inserting ``subtitle
or to''; and
(B) in paragraph (1)(A), by striking ``United States coins
or currency (or such other monetary instruments as the
Secretary may describe in such order)'' and inserting ``funds
(as the Secretary may describe in such order),''; and
(3) in subsection (b)--
(A) in paragraph (1)(A), by striking ``coins or currency
(or monetary instruments)'' and inserting ``funds''; and
(B) in paragraph (2), by striking ``coins or currency (or
such other monetary instruments as the Secretary may describe
in the regulation or order)'' and inserting ``funds (as the
Secretary may describe in the regulation or order)''.
(b) Clerical Amendment.--The table of contents for chapter 53 of
title 31, United States Code, is amended in the item relating to
section 5326 by striking ``coin and currency''.
PART 3--DEFINITIONS
SEC. 281. DEFINITIONS.
In this subtitle--
(1) the term ``appropriate congressional committees'' means--
(A) the Committee on Banking, Housing, and Urban Affairs,
the Committee on Foreign Relations, Committee on Armed
Services, Committee on the Judiciary, Committee on Homeland
Security and Governmental Affairs, and the Select Committee on
Intelligence of the Senate; and
(B) the Committee on Financial Services, the Committee on
Foreign Affairs, the Committee on Armed Services, the Committee
on the Judiciary, Committee on Homeland Security, and the
Permanent Select Committee on Intelligence of the House of
Representatives;
(2) the term ``appropriate Federal banking agencies'' has the
meaning given the term in section 3 of the Federal Deposit
Insurance Act (12 U.S.C. 1813);
(3) the term ``Bank Secrecy Act'' means--
(A) section 21 of the Federal Deposit Insurance Act (12
U.S.C. 1829b);
(B) chapter 2 of title I of Public Law 91-508 (12 U.S.C.
1951 et seq.); and
(C) subchapter II of chapter 53 of title 31, United States
Code;
(4) the term ``Federal functional regulator'' has the meaning
given that term in section 509 of the Gramm-Leach-Bliley Act (15
U.S.C. 6809);
(5) the term ``illicit finance'' means the financing of
terrorism, narcotics trafficking, or proliferation, money
laundering, or other forms of illicit financing domestically or
internationally, as defined by the President;
(6) the term ``money services business'' has the meaning given
the term under section 1010.100 of title 31, Code of Federal
Regulations;
(7) the term ``Secretary'' means the Secretary of the Treasury;
and
(8) the term ``State'' means each of the several States, the
District of Columbia, and each territory or possession of the
United States.
Subtitle D--Rule of Construction
SEC. 291. RULE OF CONSTRUCTION.
Nothing in this title or the amendments made by this title (other
than sections 216 and 236(b)) shall be construed to limit the authority
of the President under the International Emergency Economic Powers Act
(50 U.S.C. 1701 et seq.).
SEC. 292. SENSE OF CONGRESS ON THE STRATEGIC IMPORTANCE OF ARTICLE
5 OF THE NORTH ATLANTIC TREATY.
(a) Findings.--Congress makes the following findings:
(1) The principle of collective defense of the North Atlantic
Treaty Organization (NATO) is immortalized in Article 5 of the
North Atlantic Treaty in which members pledge that ``an armed
attack against one or more of them in Europe or North America shall
be considered an attack against them all''.
(2) For almost 7 decades, the principle of collective defense
has effectively served as a strategic deterrent for the member
nations of the North Atlantic Treaty Organization and provided
stability throughout the world, strengthening the security of the
United States and all 28 other member nations.
(3) Following the September 11, 2001, terrorist attacks in New
York, Washington, and Pennsylvania, the Alliance agreed to invoke
Article 5 for the first time, affirming its commitment to
collective defense.
(4) Countries that are members of the North Atlantic Treaty
Organization have made historic contributions and sacrifices while
combating terrorism in Afghanistan through the International
Security Assistance Force and the Resolute Support Mission.
(5) The recent attacks in the United Kingdom underscore the
importance of an international alliance to combat hostile nation
states and terrorist groups.
(6) At the 2014 NATO summit in Wales, the member countries of
the North Atlantic Treaty Organization decided that all countries
that are members of NATO would spend an amount equal to 2 percent
of their gross domestic product on defense by 2024.
(7) Collective defense unites the 29 members of the North
Atlantic Treaty Organization, each committing to protecting and
supporting one another from external adversaries, which bolsters
the North Atlantic Alliance.
(b) Sense of Congress.--It is the sense of Congress--
(1) to express the vital importance of Article 5 of the North
Atlantic Treaty, the charter of the North Atlantic Treaty
Organization, as it continues to serve as a critical deterrent to
potential hostile nations and terrorist organizations;
(2) to remember the first and only invocation of Article 5 by
the North Atlantic Treaty Organization in support of the United
States after the terrorist attacks of September 11, 2001;
(3) to affirm that the United States remains fully committed to
the North Atlantic Treaty Organization and will honor its
obligations enshrined in Article 5; and
(4) to condemn any threat to the sovereignty, territorial
integrity, freedom, or democracy of any country that is a member of
the North Atlantic Treaty Organization.
TITLE III--SANCTIONS WITH RESPECT TO NORTH KOREA
SEC. 301. SHORT TITLE.
This title may be cited as the ``Korean Interdiction and
Modernization of Sanctions Act''.
SEC. 302. DEFINITIONS.
(a) Amendments to Definitions in the North Korea Sanctions and
Policy Enhancement Act of 2016.--
(1) Applicable executive order.--Section 3(1)(A) of the North
Korea Sanctions and Policy Enhancement Act of 2016 (22 U.S.C.
9202(1)(A)) is amended--
(A) by striking ``or Executive Order 13694'' and inserting
``Executive Order No. 13694''; and
(B) by inserting ``or Executive Order No. 13722 (50 U.S.C.
1701 note; relating to blocking the property of the Government
of North Korea and the Workers' Party of Korea, and Prohibiting
Certain Transactions With Respect to North Korea),'' before
``to the extent''.
(2) Applicable united nations security council resolution.--
Section 3(2)(A) of the North Korea Sanctions and Policy Enhancement
Act of 2016 (22 U.S.C. 9202(2)(A)) is amended by striking ``or 2094
(2013)'' and inserting ``2094 (2013), 2270 (2016), or 2321
(2016)''.
(3) Foreign person.--Section 3 of the North Korea Sanctions and
Policy Enhancement Act of 2016 (22 U.S.C. 9202) is amended--
(A) by redesignating paragraphs (5) through (14) as
paragraphs (6) through (15), respectively; and
(B) by inserting after paragraph (4) the following new
paragraph:
``(5) Foreign person.--The term `foreign person' means--
``(A) an individual who is not a United States citizen or
an alien lawfully admitted for permanent residence to the
United States; or
``(B) an entity that is not a United States person.''.
(4) Luxury goods.--Paragraph (9) of section 3 of the North
Korea Sanctions and Policy Enhancement Act of 2016 (22 U.S.C.
9202), as redesignated by paragraph (3) of this subsection, is
amended--
(A) in subparagraph (A), by striking ``and'' at the end;
(B) in subparagraph (B), by striking the period at the end
and inserting ``; and''; and
(C) by adding at the end the following new subparagraph:
``(C) also includes any items so designated under an
applicable United Nations Security Council resolution.''.
(5) North korean person.--Section 3 of the North Korea
Sanctions and Policy Enhancement Act of 2016 (22 U.S.C. 9202), as
amended by paragraph (3) of this subsection, is further amended--
(A) by redesignating paragraphs (13) through (15) as
paragraphs (14) through (16), respectively; and
(B) by inserting after paragraph (12) the following new
paragraph:
``(13) North korean person.--The term `North Korean person'
means--
``(A) a North Korean citizen or national; or
``(B) an entity owned or controlled by the Government of
North Korea or by a North Korean citizen or national.''.
(b) Definitions for Purposes of This Act.--In this title:
(1) Applicable united nations security council resolution;
luxury goods.--The terms ``applicable United Nations Security
Council resolution'' and ``luxury goods'' have the meanings given
those terms, respectively, in section 3 of the North Korea
Sanctions and Policy Enhancement Act of 2016 (22 U.S.C. 9202), as
amended by subsection (a).
(2) Appropriate congressional committees; government of north
korea; united states person.--The terms ``appropriate congressional
committees'', ``Government of North Korea'', and ``United States
person'' have the meanings given those terms, respectively, in
section 3 of the North Korea Sanctions and Policy Enhancement Act
of 2016 (22 U.S.C. 9202).
(3) Foreign person; north korean person.--The terms ``foreign
person'' and ``North Korean person'' have the meanings given those
terms, respectively, in paragraph (5) and paragraph (13) of section
3 of the North Korea Sanctions and Policy Enhancement Act of 2016
(22 U.S.C. 9202(5) and 9202(13)), as added by subsection (a).
(4) Prohibited weapons program.--The term ``prohibited weapons
program'' means--
(A) any program related to the development of nuclear,
chemical, or biological weapons, and their means of delivery,
including ballistic missiles; and
(B) any program to develop related materials with respect
to a program described in subparagraph (A).
Subtitle A--Sanctions to Enforce and Implement United Nations Security
Council Sanctions Against North Korea
SEC. 311. MODIFICATION AND EXPANSION OF REQUIREMENTS FOR THE
DESIGNATION OF PERSONS.
(a) Expansion of Mandatory Designations.--Section 104(a) of the
North Korea Sanctions and Policy Enhancement Act of 2016 (22 U.S.C.
9214(a)) is amended--
(1) in paragraph (9), by striking ``; or'' and inserting ``or
any defense article or defense service (as such terms are defined
in section 47 of the Arms Export Control Act (22 U.S.C. 2794));'';
(2) by redesignating paragraph (10) as paragraph (15);
(3) by inserting after paragraph (9) the following new
paragraphs:
``(10) knowingly, directly or indirectly, purchases 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 during its flight to North Korea
or its return flight);
``(12) knowingly, directly or indirectly, provides significant
amounts of fuel or supplies, provides bunkering services, or
facilitates a significant transaction or transactions to operate 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 controlled by a person
designated under an applicable Executive order or applicable United
Nations Security Council resolution;
``(13) knowingly, directly or indirectly, insures, 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 approved by the United Nations
Security Council;
``(14) knowingly, directly or indirectly, maintains a
correspondent account (as defined in section 201A(d)(1)) with any
North Korean financial institution, except as specifically approved
by the United Nations Security Council; or''; and
(4) in paragraph (15), as so redesignated, by striking ``(9)''
and inserting ``(14)''.
(b) Expansion of Additional Discretionary Designations.--
(1) In general.--Section 104(b)(1) of the North Korea Sanctions
and Policy Enhancement Act of 2016 (22 U.S.C. 9214(b)(1)) is
amended--
(A) in subparagraph (A), by striking ``pursuant to an
applicable United Nations Security Council resolution;'' and
inserting the following: ``pursuant to--
``(i) an applicable United Nations Security Council
resolution;
``(ii) any regulation promulgated under section 404; or
``(iii) any applicable Executive order;'';
(B) in subparagraph (B)(iii), by striking ``or'' at the
end;
(C) in subparagraph (C), by striking the period at the end
and inserting a semicolon; and
(D) by adding at the end the following new subparagraphs:
``(D) knowingly, directly or indirectly, purchased or
otherwise acquired from the Government of North Korea
significant quantities of coal, iron, or iron ore, in excess of
the limitations provided in applicable United Nations Security
Council resolutions;
``(E) knowingly, directly or indirectly, purchased or
otherwise acquired significant types or amounts of textiles
from the Government of North Korea;
``(F) knowingly facilitated a significant transfer of funds
or property of the Government of North Korea that materially
contributes to any violation of an applicable United National
Security Council resolution;
``(G) knowingly, directly or indirectly, facilitated 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 subsection (a)(10);
``(H) knowingly, directly or indirectly, sold, transferred,
or otherwise provided significant amounts of crude oil,
condensates, refined petroleum, other types of petroleum or
petroleum byproducts, liquified natural gas, or other natural
gas resources to the Government of North Korea (except for
heavy fuel oil, gasoline, or diesel fuel for humanitarian use
or as excepted under subsection (a)(11));
``(I) knowingly, directly or indirectly, engaged in,
facilitated, or was responsible for the online commercial
activities of the Government of North Korea, including online
gambling;
``(J) knowingly, directly or indirectly, purchased or
otherwise acquired fishing rights from the Government of North
Korea;
``(K) knowingly, directly or indirectly, purchased or
otherwise acquired significant types or amounts of food or
agricultural products from the Government of North Korea;
``(L) knowingly, directly or indirectly, engaged in,
facilitated, or was responsible for the exportation of workers
from North Korea in a manner intended to generate significant
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 described in subsection (a)(14), knowingly
facilitated the operation of any branch, subsidiary, or office
of a North Korean financial institution.''.
(2) Effective date.--The amendments made by paragraph (1) take
effect on the date of the enactment of this Act and apply with
respect to conduct described in subparagraphs (D) through (N) of
section 104(b)(1) of the North Korea Sanctions and Policy
Enhancement Act of 2016, as added by paragraph (1), engaged in on
or after such date of enactment.
(c) Mandatory and Discretionary Asset Blocking.--Section 104(c) of
the North Korea Sanctions and Policy Enhancement Act of 2016 (22 U.S.C.
9214(c)) is amended--
(1) by striking ``of a designated person'' and inserting ``of a
person designated under subsection (a)'';
(2) by striking ``The President'' and inserting the following:
``(1) Mandatory asset blocking.--The President''; and
(3) by adding at the end the following new paragraph:
``(2) Discretionary asset blocking.--The President may also
exercise such powers, in the same manner and to the same extent
described in paragraph (1), with respect to a person designated
under subsection (b).''.
(d) Designation of Additional Persons.--
(1) In general.--Not later than 180 days after the date of the
enactment of this Act, the President shall submit to the
appropriate congressional committees a report including a
determination as to whether reasonable grounds exist, and an
explanation of the reasons for any determination that such grounds
do not exist, to designate, pursuant to section 104 of the North
Korea Sanctions and Policy Enhancement Act of 2016 (22 U.S.C.
9214), as amended by this section, each of the following:
(A) The Korea Shipowners' Protection and Indemnity
Association, a North Korean insurance company, with respect to
facilitating imports, exports, and reexports of arms and
related materiel to and from North Korea, or for other
activities prohibited by such section 104.
(B) Chinpo Shipping Company (Private) Limited, a Singapore
corporation, with respect to facilitating imports, exports, and
reexports of arms and related materiel to and from North Korea.
(C) The Central Bank of the Democratic People's Republic of
Korea, with respect to the sale of gold to, the receipt of gold
from, or the import or export of gold by the Government of
North Korea.
(D) Kumgang Economic Development Corporation (KKG), with
respect to being an entity controlled by Bureau 39 of the
Workers' Party of the Government of North Korea.
(E) Sam Pa, also known as Xu Jinghua, Xu Songhua, Sa Muxu,
Samo, Sampa, or Sam King, and any entities owned or controlled
by such individual, with respect to transactions with KKG.
(F) The Chamber of Commerce of the Democratic People's
Republic of Korea, with respect to the exportation of workers
in violation of section 104(a)(5) or of section 104(b)(1)(M) of
such Act, as amended by subsection (b) of this section.
(2) Form.--The report submitted under paragraph (1) may contain
a classified annex.
SEC. 312. PROHIBITION ON INDIRECT CORRESPONDENT ACCOUNTS.
(a) In General.--Title II of the North Korea Sanctions and Policy
Enhancement Act of 2016 (22 U.S.C. 9221 et seq.) is amended by
inserting after section 201 the following new section:
``SEC. 201A. PROHIBITION ON INDIRECT CORRESPONDENT ACCOUNTS.
``(a) In General.--Except as provided in subsection (b), if a
United States financial institution has or obtains knowledge that a
correspondent account established, maintained, administered, or managed
by that institution for a foreign financial institution is being used
by the foreign financial institution to provide significant financial
services indirectly to any person, foreign government, or financial
institution designated under section 104, the United States financial
institution shall ensure that such correspondent account is no longer
used to provide such services.
``(b) Exception.--A United States financial institution is
authorized to process transfers of funds to or from North Korea, or for
the direct or indirect benefit of any person, foreign government, or
financial institution that is designated under section 104, only if the
transfer--
``(1) arises from, and is ordinarily incident and necessary to
give effect to, an underlying transaction that has been authorized
by a specific or general license issued by the Secretary of the
Treasury; and
``(2) does not involve debiting or crediting a North Korean
account.
``(c) Definitions.--In this section:
``(1) Correspondent account.--The term `correspondent account'
has the meaning given that term in section 5318A of title 31,
United States Code.
``(2) United states financial institution.--The term `United
States financial institution' means has the meaning given that term
in section 510.310 of title 31, Code of Federal Regulations, as in
effect on the date of the enactment of this section.
``(3) Foreign financial institution.--The term `foreign
financial institution' has the meaning given that term in section
1010.605 of title 31, Code of Federal Regulations, as in effect on
the date of the enactment of this section.''.
(b) Clerical Amendment.--The table of contents in section 1(b) of
the North Korea Sanctions and Policy Enhancement Act of 2016 is amended
by inserting after the item relating to section 201 the following new
item:
``Sec. 201A. Prohibition on indirect correspondent accounts.''.
SEC. 313. LIMITATIONS ON FOREIGN ASSISTANCE TO NONCOMPLIANT
GOVERNMENTS.
Section 203 of the North Korea Sanctions and Policy Enhancement Act
of 2016 (22 U.S.C. 9223) is amended--
(1) in subsection (b)--
(A) in the heading, by striking ``Transactions in Lethal
Military Equipment'' and inserting ``Transactions in Defense
Articles or Defense Services'';
(B) in paragraph (1), by striking ``that provides lethal
military equipment to the Government of North Korea'' and
inserting ``that provides to or receives from the Government of
North Korea a defense article or defense service, as such terms
are defined in section 47 of the Arms Export Control Act (22
U.S.C. 2794), if the President determines that a significant
type or amount of such article or service has been so provided
or received''; and
(C) in paragraph (2), by striking ``1 year'' and inserting
``2 years'';
(2) in subsection (d), by striking ``or emergency'' and
inserting ``maternal and child health, disease prevention and
response, or''; and
(3) by adding at the end the following new subsection:
``(e) Report on Arms Trafficking Involving North Korea.--
``(1) In general.--Not later than 180 days after the date of
the enactment of this subsection, and annually thereafter for 5
years, the Secretary of State shall submit to the appropriate
congressional committees a report that specifically 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.''.
SEC. 314. AMENDMENTS TO ENHANCE INSPECTION AUTHORITIES.
Title II of the North Korea Sanctions and Policy Enhancement Act of
2016 (22 U.S.C. 9221 et seq.), as amended by section 102 of this Act,
is further amended by striking section 205 and inserting the following:
``SEC. 205. ENHANCED INSPECTION AUTHORITIES.
``(a) Report Required.--
``(1) In general.--Not later than 180 days after the date of
the enactment of this section, and annually thereafter for 5 years,
the President shall submit to the appropriate congressional
committees a report--
``(A) identifying the operators of foreign sea ports and
airports that knowingly--
``(i) significantly fail to implement or enforce
regulations to inspect ships, aircraft, cargo, or
conveyances in transit to or from North Korea, as required
by applicable United Nations Security Council resolutions;
``(ii) facilitate the transfer, transshipment, or
conveyance of significant types or quantities of cargo,
vessels, or aircraft owned or controlled by persons
designated under applicable United Nations Security Council
resolutions; or
``(iii) facilitate any of the activities described in
section 104(a);
``(B) describing the extent to which the requirements of
applicable United Nations Security Council resolutions to de-
register any vessel owned, controlled, or operated by or on
behalf of the Government of North Korea have been implemented
by other foreign countries;
``(C) describing the compliance of the Islamic Republic of
Iran with the sanctions mandated in applicable United Nations
Security Council resolutions;
``(D) identifying vessels, aircraft, and conveyances owned
or controlled by the Reconnaissance General Bureau of the
Workers' Party of Korea; and
``(E) describing the diplomatic and enforcement efforts by
the President to secure the full implementation of the
applicable United Nations Security Council resolutions, as
described in subparagraphs (A) through (C).
``(2) Form.--The report required under paragraph (1) shall be
submitted in unclassified form but may contain a classified annex.
``(b) Specific Findings.--Each report required under subsection (a)
shall include specific findings with respect to the following ports and
airports:
``(1) The ports of Dandong, Dalian, and any other port in the
People's Republic of China that the President deems appropriate.
``(2) The ports of Abadan, Bandar-e-Abbas, Chabahar, Bandar-e-
Khomeini, Bushehr Port, Asaluyeh Port, Kish, Kharg Island, Bandar-
e-Lenge, and Khorramshahr, and Tehran Imam Khomeini International
Airport, in the Islamic Republic of Iran.
``(3) The ports of Nakhodka, Vanino, and Vladivostok, in the
Russian Federation.
``(4) The ports of Latakia, Banias, and Tartous, and Damascus
International Airport, in the Syrian Arab Republic.
``(c) Enhanced Security Targeting Requirements.--
``(1) In general.--Except as provided in paragraph (2), the
Secretary of Homeland Security may, using a layered approach,
require enhanced screening procedures to determine whether physical
inspections are warranted of any cargo bound for or landed in the
United States that--
``(A) has been transported through a sea port or airport
the operator of which has been identified by the President in
accordance with subsection (a)(1) as having repeatedly failed
to comply with applicable United Nations Security Council
resolutions;
``(B) is aboard a vessel or aircraft, or within a
conveyance that has, within the last 365 days, entered the
territory or waters of North Korea, or landed in any of the sea
ports or airports of North Korea; or
``(C) is registered by a country or jurisdiction whose
compliance has been identified by the President as deficient
pursuant to subsection (a)(2).
``(2) Exception for food, medicine, and humanitarian
shipments.--Paragraph (1) shall not apply to any vessel, aircraft,
or conveyance that has entered the territory or waters of North
Korea, or landed in any of the sea ports or airports of North
Korea, exclusively for the purposes described in section
208(b)(3)(B), or to import food, medicine, or supplies into North
Korea to meet the humanitarian needs of the North Korean people.
``(d) Seizure and Forfeiture.--A vessel, aircraft, or conveyance
used to facilitate any of the activities described in section 104(a)
under the jurisdiction of the United States may be seized and
forfeited, or subject to forfeiture, under--
``(1) chapter 46 of title 18, United States Code; or
``(2) part V of title IV of the Tariff Act of 1930 (19 U.S.C.
1581 et seq.).''.
SEC. 315. ENFORCING COMPLIANCE WITH UNITED NATIONS SHIPPING
SANCTIONS AGAINST NORTH KOREA.
(a) In General.--The Ports and Waterways Safety Act (33 U.S.C. 1221
et seq.) is amended by adding at the end the following new section:
``SEC. 16. PROHIBITION ON ENTRY AND OPERATION.
``(a) Prohibition.--
``(1) In general.--Except as otherwise provided in this
section, no vessel described in subsection (b) may enter or operate
in the navigable waters of the United States or transfer cargo in
any port or place under the jurisdiction of the United States.
``(2) Limitations on application.--
``(A) In general.--The prohibition under paragraph (1)
shall not apply with respect to--
``(i) a vessel described in subsection (b)(1), if the
Secretary of State determines that--
``(I) the vessel is owned or operated by or on
behalf of a country the government of which the
Secretary of State determines is closely cooperating
with the United States with respect to implementing the
applicable United Nations Security Council resolutions
(as such term is defined in section 3 of the North
Korea Sanctions and Policy Enhancement Act of 2016); or
``(II) it is in the national security interest not
to apply the prohibition to such vessel; or
``(ii) a vessel described in subsection (b)(2), if the
Secretary of State determines that the vessel is no longer
registered as described in that subsection.
``(B) Notice.--Not later than 15 days after making a
determination under subparagraph (A), the Secretary of State
shall submit to the Committee on Foreign Affairs and the
Committee on Transportation and Infrastructure of the House of
Representatives and the Committee on Foreign Relations and the
Committee on Commerce, Science, and Transportation of the
Senate written notice of the determination and the basis upon
which the determination was made.
``(C) Publication.--The Secretary of State shall publish a
notice in the Federal Register of each determination made under
subparagraph (A).
``(b) Vessels Described.--A vessel referred to in subsection (a) is
a foreign vessel for which a notice of arrival is required to be filed
under section 4(a)(5), and that--
``(1) is on the most recent list of vessels published in
Federal Register under subsection (c)(2); or
``(2) more than 180 days after the publication of such list, is
knowingly registered, pursuant to the 1958 Convention on the High
Seas entered into force on September 30, 1962, by a government the
agents or instrumentalities of which are maintaining a registration
of a vessel that is included on such list.
``(c) Information and Publication.--The Secretary of the department
in which the Coast Guard is operating, with the concurrence of the
Secretary of State, shall--
``(1) maintain timely information on the registrations of all
foreign vessels over 300 gross tons that are known to be--
``(A) owned or operated by or on behalf of the Government
of North Korea or a North Korean person;
``(B) owned or operated by or on behalf of any country in
which a sea port is located, the operator of which the
President has identified in the most recent report submitted
under section 205(a)(1)(A) of the North Korea Sanctions and
Policy Enhancement Act of 2016; or
``(C) owned or operated by or on behalf of any country
identified by the President as a country that has not complied
with the applicable United Nations Security Council resolutions
(as such term is defined in section 3 of such Act); and
``(2) not later than 180 days after the date of the enactment
of this section, and periodically thereafter, publish in the
Federal Register a list of the vessels described in paragraph (1).
``(d) Notification of Governments.--
``(1) In general.--The Secretary of State shall notify each
government, the agents or instrumentalities of which are
maintaining a registration of a foreign vessel that is included on
a list published under subsection (c)(2), not later than 30 days
after such publication, that all vessels registered under such
government's authority are subject to subsection (a).
``(2) Additional notification.--In the case of a government
that continues to maintain a registration for a vessel that is
included on such list after receiving an initial notification under
paragraph (1), the Secretary shall issue an additional notification
to such government not later than 120 days after the publication of
a list under subsection (c)(2).
``(e) Notification of Vessels.--Upon receiving a notice of arrival
under section 4(a)(5) from a vessel described in subsection (b), the
Secretary of the department in which the Coast Guard is operating shall
notify the master of such vessel that the vessel may not enter or
operate in the navigable waters of the United States or transfer cargo
in any port or place under the jurisdiction of the United States,
unless--
``(1) the Secretary of State has made a determination under
subsection (a)(2); or
``(2) the Secretary of the department in which the Coast Guard
is operating allows provisional entry of the vessel, or transfer of
cargo from the vessel, under subsection (f).
``(f) Provisional Entry or Cargo Transfer.--Notwithstanding any
other provision of this section, the Secretary of the department in
which the Coast Guard is operating may allow provisional entry of, or
transfer of cargo from, a vessel, if such entry or transfer is
necessary for the safety of the vessel or persons aboard.
``(g) Right of Innocent Passage and Right of Transit Passage.--This
section shall not be construed as authority to restrict the right of
innocent passage or the right of transit passage as recognized under
international law.
``(h) Foreign Vessel Defined.--In this section, the term `foreign
vessel' has the meaning given that term in section 110 of title 46,
United States Code.''.
(b) Conforming Amendments.--
(1) Special powers.--Section 4(b)(2) of the Ports and Waterways
Safety Act (33 U.S.C. 1223(b)(2)) is amended by inserting ``or 16''
after ``section 9''.
(2) Denial of entry.--Section 13(e) of the Ports and Waterways
Safety Act (33 U.S.C. 1232(e)) is amended by striking ``section 9''
and inserting ``section 9 or 16''.
SEC. 316. REPORT ON COOPERATION BETWEEN NORTH KOREA AND IRAN.
(a) In General.--Not later than 180 days after the date of the
enactment of this Act, and annually thereafter for 5 years, the
President shall submit to the appropriate congressional committees and
leadership a report that includes--
(1) an assessment of the extent of cooperation (including
through the transfer of goods, services, technology, or
intellectual property) between North Korea and Iran relating to
their respective nuclear, ballistic missile development, chemical
or biological weapons development, or conventional weapons
programs;
(2) the names of any Iranian or North Korean persons that have
knowingly engaged in or directed--
(A) the provision of material support to such programs; or
(B) the exchange of information between North Korea and
Iran with respect to such programs;
(3) the names of any other foreign persons that have
facilitated the activities described in paragraph (1); and
(4) a determination whether any of the activities described in
paragraphs (1) and (2) violate United Nations Security Council
Resolution 2231 (2015).
(b) Form.--The report required under subsection (a) shall be
submitted in unclassified form but may contain a classified annex.
(c) Appropriate Congressional Committees and Leadership Defined.--
In this section, the term ``appropriate congressional committees and
leadership'' means--
(1) the Committee on Foreign Relations, the Committee on
Banking, Housing, and Urban Affairs, and the majority and minority
leaders of the Senate; and
(2) the Committee on Foreign Affairs, the Committee on
Financial Services, the Committee on Ways and Means, and the
Speaker, the majority leader, and the minority leader of the House
of Representatives.
SEC. 317. REPORT ON IMPLEMENTATION OF UNITED NATIONS SECURITY
COUNCIL RESOLUTIONS BY OTHER GOVERNMENTS.
(a) In General.--Not later than 180 days after the date of the
enactment of this Act, and annually thereafter for 5 years, the
President shall submit to the appropriate congressional committees and
leadership a report that evaluates the degree to which the governments
of other countries have knowingly failed to--
(1) close the representative offices of persons designated
under applicable United Nations Security Council resolutions;
(2) expel any North Korean nationals, including diplomats,
working on behalf of such persons;
(3) prohibit the opening of new branches, subsidiaries, or
representative offices of North Korean financial institutions
within the jurisdictions of such governments; or
(4) expel any representatives of North Korean financial
institutions.
(b) Form.--The report required under subsection (a) shall be
submitted in unclassified form but may contain a classified annex.
(c) Appropriate Congressional Committees and Leadership Defined.--
In this section, the term ``appropriate congressional committees and
leadership'' means--
(1) the Committee on Foreign Relations, the Committee on
Banking, Housing, and Urban Affairs, and the majority and minority
leaders of the Senate; and
(2) the Committee on Foreign Affairs, the Committee on
Financial Services, the Committee on Ways and Means, and the
Speaker, the majority leader, and the minority leader of the House
of Representatives.
SEC. 318. BRIEFING ON MEASURES TO DENY SPECIALIZED FINANCIAL
MESSAGING SERVICES TO DESIGNATED NORTH KOREAN FINANCIAL
INSTITUTIONS.
(a) In General.--Not later than 180 days after the date of the
enactment of this Act, and every 180 days thereafter for 5 years, the
President shall provide to the appropriate congressional committees a
briefing that includes the following information:
(1) A list of each person or foreign government the President
has identified that directly provides specialized financial
messaging services to, or enables or facilitates direct or indirect
access to such messaging services for--
(A) any North Korean financial institution (as such term is
defined in section 3 of the North Korea Sanctions and Policy
Enhancement Act of 2016 (22 U.S.C. 9202)) designated under an
applicable United Nations Security Council resolution; or
(B) any other North Korean person, on behalf of such a
North Korean financial institution.
(2) A detailed assessment of the status of efforts by the
Secretary of the Treasury to work with the relevant authorities in
the home jurisdictions of such specialized financial messaging
providers to end such provision or access.
(b) Form.--The briefing required under subsection (a) may be
classified.
Subtitle B--Sanctions With Respect to Human Rights Abuses by the
Government of North Korea
SEC. 321. SANCTIONS FOR FORCED LABOR AND SLAVERY OVERSEAS OF NORTH
KOREANS.
(a) Sanctions for Trafficking in Persons.--
(1) In general.--Section 302(b) of the North Korea Sanctions
and Policy Enhancement Act of 2016 (22 U.S.C. 9241(b)) is amended--
(A) in paragraph (1), by striking ``and'' at the end;
(B) in paragraph (2), by striking the period at the end and
inserting ``; and''; and
(C) by adding at the end the following new paragraph:
``(3) a list of foreign persons that knowingly employ North
Korean laborers, as described in section 104(b)(1)(M).''.
(2) Additional determinations; reports.--With respect to any
country identified in section 302(b)(2) of the North Korea
Sanctions and Policy Enhancement Act of 2016 (22 U.S.C.
9241(b)(2)), as amended by paragraph (1), the report required under
section 302(a) of such Act shall--
(A) include a determination whether each person identified
in section 302(b)(3) of such Act (as amended by paragraph (1))
who is a national or a citizen of such identified country meets
the criteria for sanctions under--
(i) section 111 of the Trafficking Victims Protection
Act of 2000 (22 U.S.C. 7108) (relating to the prevention of
trafficking in persons); or
(ii) section 104(a) or 104(b)(1) of the North Korea
Sanctions and Policy Enhancement Act of 2016 (22 U.S.C.
9214(a)), as amended by section 101 of this Act;
(B) be included in the report required under section 110(b)
of the Trafficking Victims Protection Act of 2000 (22 U.S.C.
7107(b)) (relating to the annual report on trafficking in
persons); and
(C) be considered in any determination that the government
of such country has made serious and sustained efforts to
eliminate severe forms of trafficking in persons, as such term
is defined for purposes of the Trafficking Victims Protection
Act of 2000.
(b) Sanctions on Foreign Persons That Employ North Korean Labor.--
(1) In general.--Title III of the North Korea Sanctions and
Policy Enhancement Act of 2016 (22 U.S.C. 9241 et seq.) is amended
by inserting after section 302 the following new sections:
``SEC. 302A. REBUTTABLE PRESUMPTION APPLICABLE TO GOODS MADE WITH NORTH
KOREAN LABOR.
``(a) In General.--Except as provided in subsection (b), any
significant goods, wares, articles, and merchandise mined, produced, or
manufactured wholly or in part by the labor of North Korean nationals
or citizens shall be deemed to be prohibited under section 307 of the
Tariff Act of 1930 (19 U.S.C. 1307) and shall not be entitled to entry
at any of the ports of the United States.
``(b) Exception.--The prohibition described in subsection (a) shall
not apply if the Commissioner of U.S. Customs and Border Protection
finds, by clear and convincing evidence, that the goods, wares,
articles, or merchandise described in such paragraph were not produced
with convict labor, forced labor, or indentured labor under penal
sanctions.
``SEC. 302B. SANCTIONS ON FOREIGN PERSONS EMPLOYING NORTH KOREAN LABOR.
``(a) In General.--Except as provided in subsection (c), the
President shall designate any person identified under section 302(b)(3)
for the imposition of sanctions under subsection (b).
``(b) Imposition of Sanctions.--
``(1) In general.--The President shall impose the sanctions
described in paragraph (2) with respect to any person designated
under subsection (a).
``(2) Sanctions described.--The sanctions described in this
paragraph are sanctions pursuant to the International Emergency
Economic Powers Act (50 U.S.C. 1701 et seq.) to block and prohibit
all transactions in property and interests in property of a person
designated under subsection (a), 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.
``(c) Exception.--
``(1) In general.--A person may not be designated under
subsection (a) if the President certifies to the appropriate
congressional committees that the President has received reliable
assurances from such person that--
``(A) the employment of North Korean laborers does not
result in the direct or indirect transfer of convertible
currency, luxury goods, or other stores of value to the
Government of North Korea;
``(B) all wages and benefits are provided directly to the
laborers, and are held, as applicable, in accounts within the
jurisdiction in which they reside in locally denominated
currency; and
``(C) the laborers are subject to working conditions
consistent with international standards.
``(2) Recertification.--Not later than 180 days after the date
on which the President transmits to the appropriate congressional
committees an initial certification under paragraph (1), and every
180 days thereafter, the President shall--
``(A) transmit a recertification stating that the
conditions described in such paragraph continue to be met; or
``(B) if such recertification cannot be transmitted, impose
the sanctions described in subsection (b) beginning on the date
on which the President determines that such recertification
cannot be transmitted.''.
(2) Clerical amendment.--The table of contents in section 1(b)
of the North Korea Sanctions and Policy Enhancement Act of 2016 is
amended by inserting after the item relating to section 302 the
following new items:
``Sec. 302A. Rebuttable presumption applicable to goods made with North
Korean labor.
``Sec. 302B. Sanctions on foreign persons employing North Korean
labor.''.
SEC. 322. MODIFICATIONS TO SANCTIONS SUSPENSION AND WAIVER
AUTHORITIES.
(a) Exemptions.--Section 208(a) of the North Korea Sanctions and
Policy Enhancement Act of 2016 (22 U.S.C. 9228(a)) is amended in the
matter preceding paragraph (1)--
(1) by inserting ``201A,'' after ``104,''; and
(2) by inserting ``302A, 302B,'' after ``209,''.
(b) Humanitarian Waiver.--Section 208(b) of the North Korea
Sanctions and Policy Enhancement Act of 2016 (22 U.S.C. 9228(b)(1)) is
amended--
(1) by inserting ``201A,'' after ``104,'' in each place it
appears; and
(2) by inserting ``302A, 302B,'' after ``209(b),'' in each
place it appears.
(c) Waiver.--Section 208(c) of the North Korea Sanctions and Policy
Enhancement Act of 2016 (22 U.S.C. 9228(c)) is amended in the matter
preceding paragraph (1)--
(1) by inserting ``201A,'' after ``104,''; and
(2) by inserting ``302A, 302B,'' after ``209(b),''.
SEC. 323. REWARD FOR INFORMANTS.
Section 36(b) of the State Department Basic Authorities Act of 1956
(22 U.S.C. 2708(b)), is amended--
(1) in paragraph (9), by striking ``or'' at the end;
(2) in paragraph (10), by striking the period at the end and
inserting a semicolon; and
(3) by adding at the end the following new paragraphs:
``(11) the identification or location of any person who, while
acting at the direction of or under the control of a foreign
government, aids or abets a violation of section 1030 of title 18,
United States Code; or
``(12) the disruption of financial mechanisms of any person who
has engaged in the conduct described in sections 104(a) or
104(b)(1) of the North Korea Sanctions and Policy Enhancement Act
of 2016 (22 U.S.C. 2914(a) or (b)(1)).''.
SEC. 324. DETERMINATION ON DESIGNATION OF NORTH KOREA AS A STATE
SPONSOR OF TERRORISM.
(a) Determination.--
(1) In general.--Not later than 90 days after the date of the
enactment of this Act, the Secretary of State shall submit to the
appropriate congressional committees a determination whether North
Korea meets the criteria for designation as a state sponsor of
terrorism.
(2) Form.--The determination required by paragraph (1) shall be
submitted in unclassified form but may include a classified annex,
if appropriate.
(b) State Sponsor of Terrorism Defined.--For purposes of this
section, the term ``state sponsor of terrorism'' means a country the
government of which the Secretary of State has determined, for purposes
of section 6(j) of the Export Administration Act of 1979 (50 U.S.C.
4605(j)) (as in effect pursuant to the International Emergency Economic
Powers Act), section 620A of the Foreign Assistance Act of 1961 (22
U.S.C. 2371), section 40 of the Arms Export Control Act (22 U.S.C.
2780), or any other provision of law, is a government that has
repeatedly provided support for acts of international terrorism.
Subtitle C--General Authorities
SEC. 331. AUTHORITY TO CONSOLIDATE REPORTS.
Any reports required to be submitted to the appropriate
congressional committees under this title or any amendment made by this
title that are subject to deadlines for submission consisting of
similar units of time may be consolidated into a single report that is
submitted to appropriate congressional committees pursuant to the
earlier of such deadlines. The consolidated reports must contain all
information required under this title or any amendment made by this
title, in addition to all other elements mandated by previous law.
SEC. 332. RULE OF CONSTRUCTION.
Nothing in this title shall be construed to limit--
(1) the authority or obligation of the President to apply the
sanctions described in section 104 of the North Korea Sanctions and
Policy Enhancement Act of 2016 (22 U.S.C. 9214), as amended by
section 311 of this Act, with regard to persons who meet the
criteria for designation under such section, or in any other
provision of law; or
(2) the authorities of the President pursuant to the
International Emergency Economic Powers Act (50 U.S.C. 1701 et
seq.).
SEC. 333. REGULATORY AUTHORITY.
(a) In General.--The President shall, not later than 180 days after
the date of the enactment of this Act, promulgate regulations as
necessary for the implementation of this title and the amendments made
by this title.
(b) Notification to Congress.--Not fewer than 10 days before the
promulgation of a regulation under subsection (a), the President shall
notify and provide to the appropriate congressional committees the
proposed regulation, specifying the provisions of this title or the
amendments made by this title that the regulation is implementing.
SEC. 334. LIMITATION ON FUNDS.
No additional funds are authorized to carry out the requirements of
this title or of the amendments made by this title. Such requirements
shall be carried out using amounts otherwise authorized.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.