H. R. 3364 To provide congressional review and to counter aggression by the Governments of Iran, the Russian Federation, and North Korea, and for other purposes.

I 115TH CONGRESS 1ST SESSION H. R. 3364 To provide congressional review and to counter aggression by the Governments of Iran, the Russian Federation, and North Korea, and for other purposes. IN THE HOUSE OF REPRESENTATIVES JULY 24, 2017 Mr. ROYCE of California (for himself, Mr. ENGEL, Mr. MCCARTHY, and Mr. HOYER) introduced the following bill; which was referred to the Committee on Foreign Affairs, and in addition to the Committees on Intelligence, the Judiciary, Oversight and Government Reform, Armed Services, Financial Services, Rules, Ways and Means, and Transportation and Infrastructure, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To provide congressional review and to counter aggression by the Governments of Iran, the Russian Federation, and North Korea, and for other purposes. 1 Be it enacted by the Senate and House of Representa- 2 tives of the United States of America in Congress assembled, 3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 4 (a) SHORT TITLE.—This Act may be cited as the 5 ‘‘Countering America’s Adversaries Through Sanctions 6 Act’’. VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 2 •HR 3364 IH 1 (b) TABLE OF CONTENTS.—The table of contents for 2 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 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. VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6211 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 3 •HR 3364 IH 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. VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6211 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 4 •HR 3364 IH 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. VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6211 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 5 •HR 3364 IH 1 TITLE I—SANCTIONS WITH 2 RESPECT TO IRAN 3 SEC. 101. SHORT TITLE. 4 This title may be cited as the ‘‘Countering Iran’s De- 5 stabilizing Activities Act of 2017’’. 6 SEC. 102. DEFINITIONS. 7 In this title: 8 (1) ACT OF INTERNATIONAL TERRORISM.—The 9 term ‘‘act of international terrorism’’ has the mean- 10 ing given that term in section 14 of the Iran Sanc- 11 tions Act of 1996 (Public Law 104–172; 50 U.S.C. 12 1701 note). 13 (2) APPROPRIATE CONGRESSIONAL COMMIT- 14 TEES.—The term ‘‘appropriate congressional com- 15 mittees’’ has the meaning given that term in section 16 14 of the Iran Sanctions Act of 1996 (Public Law 17 104–172; 50 U.S.C. 1701 note). 18 (3) FOREIGN PERSON.—The term ‘‘foreign per- 19 son’’ means a person that is not a United States 20 person. 21 (4) IRANIAN PERSON.—The term ‘‘Iranian per- 22 son’’ means— 23 (A) an individual who is a citizen or na- 24 tional of Iran; or VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 6 •HR 3364 IH 1 (B) an entity organized under the laws of 2 Iran or otherwise subject to the jurisdiction of 3 the Government of Iran. 4 (5) IRGC.—The term ‘‘IRGC’’ means Iran’s Is- 5 lamic Revolutionary Guard Corps. 6 (6) KNOWINGLY.—The term ‘‘knowingly’’ has 7 the meaning given that term in section 14 of the 8 Iran Sanctions Act of 1996 (Public Law 104–172; 9 50 U.S.C. 1701 note). 10 (7) UNITED STATES PERSON.—The term 11 ‘‘United States person’’ means— 12 (A) a United States citizen or an alien law- 13 fully admitted for permanent residence to the 14 United States; or 15 (B) an entity organized under the laws of 16 the United States or of any jurisdiction within 17 the United States, including a foreign branch of 18 such an entity. 19 SEC. 103. REGIONAL STRATEGY FOR COUNTERING CON- 20 VENTIONAL AND ASYMMETRIC IRANIAN 21 THREATS IN THE MIDDLE EAST AND NORTH 22 AFRICA. 23 (a) IN GENERAL.—Not later than 180 days after the 24 date of the enactment of this Act, and every 2 years there- 25 after, the Secretary of State, the Secretary of Defense, VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 7 •HR 3364 IH 1 the Secretary of the Treasury, and the Director of Na- 2 tional Intelligence shall jointly develop and submit to the 3 appropriate congressional committees and leadership a 4 strategy for deterring conventional and asymmetric Ira- 5 nian activities and threats that directly threaten the 6 United States and key allies in the Middle East, North 7 Africa, and beyond. 8 (b) ELEMENTS.—The strategy required by subsection 9 (a) shall include at a minimum the following: 10 (1) A summary of the near- and long-term 11 United States objectives, plans, and means for coun- 12 tering Iran’s destabilizing activities, including identi- 13 fication of countries that share the objective of coun- 14 tering Iran’s destabilizing activities. 15 (2) A summary of the capabilities and contribu- 16 tions of individual countries to shared efforts to 17 counter Iran’s destabilizing activities, and a sum- 18 mary of additional actions or contributions that each 19 country could take to further contribute. 20 (3) An assessment of Iran’s conventional force 21 capabilities and an assessment of Iran’s plans to up- 22 grade its conventional force capabilities, including its 23 acquisition, development, and deployment of ballistic 24 and cruise missile capabilities, unmanned aerial vehiVerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 8 •HR 3364 IH 1 cles, and maritime offensive and anti-access or area 2 denial capabilities. 3 (4) An assessment of Iran’s chemical and bio- 4 logical weapons capabilities and an assessment of 5 Iranian plans to upgrade its chemical or biological 6 weapons capabilities. 7 (5) An assessment of Iran’s asymmetric activi- 8 ties in the region, including— 9 (A) the size, capabilities, and activities of 10 the IRGC, including the Quds Force; 11 (B) the size, capabilities, and activities of 12 Iran’s cyber operations; 13 (C) the types and amount of support, in- 14 cluding funding, lethal and nonlethal contribu- 15 tions, and training, provided to Hezbollah, 16 Hamas, special groups in Iraq, the regime of 17 Bashar al-Assad in Syria, Houthi fighters in 18 Yemen, and other violent groups across the 19 Middle East; and 20 (D) the scope and objectives of Iran’s in- 21 formation operations and use of propaganda. 22 (6) A summary of United States actions, unilat- 23 erally and in cooperation with foreign governments, 24 to counter destabilizing Iranian activities, includ- 25 ing— VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 9 •HR 3364 IH 1 (A) interdiction of Iranian lethal arms 2 bound for groups designated as foreign terrorist 3 organizations under section 219 of the Immi- 4 gration and Nationality Act (8 U.S.C. 1189); 5 (B) Iran’s interference in international 6 commercial shipping lanes; 7 (C) attempts by Iran to undermine or sub- 8 vert internationally recognized governments in 9 the Middle East region; and 10 (D) Iran’s support for the regime of 11 Bashar al-Assad in Syria, including— 12 (i) financial assistance, military equip- 13 ment and personnel, and other support 14 provided to that regime; and 15 (ii) support and direction to other 16 armed actors that are not Syrian or Ira- 17 nian and are acting on behalf of that re- 18 gime. 19 (c) FORM OF STRATEGY.—The strategy required by 20 subsection (a) shall be submitted in unclassified form, but 21 may include a classified annex. 22 (d) APPROPRIATE CONGRESSIONAL COMMITTEES 23 AND LEADERSHIP DEFINED.—In this section, the term 24 ‘‘appropriate congressional committees and leadership’’ 25 means— VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 10 •HR 3364 IH 1 (1) the Committee on Finance, the Committee 2 on Banking, Housing, and Urban Affairs, the Com- 3 mittee on Foreign Relations, and the majority and 4 minority leaders of the Senate; and 5 (2) the Committee on Ways and Means, the 6 Committee on Financial Services, the Committee on 7 Foreign Affairs, and the Speaker, the majority lead- 8 er, and the minority leader of the House of Rep- 9 resentatives. 10 SEC. 104. IMPOSITION OF ADDITIONAL SANCTIONS IN RE- 11 SPONSE TO IRAN’S BALLISTIC MISSILE PRO- 12 GRAM. 13 (a) SENSE OF CONGRESS.—It is the sense of Con- 14 gress that the Secretary of the Treasury and the Secretary 15 of State should continue to implement Executive Order 16 13382 (50 U.S.C. 1701 note; relating to blocking property 17 of weapons of mass destruction delivery system 18 proliferators and their supporters). 19 (b) IMPOSITION OF SANCTIONS.—The President shall 20 impose the sanctions described in subsection (c) with re- 21 spect to any person that the President determines, on or 22 after the date of the enactment of this Act— 23 (1) knowingly engages in any activity that ma- 24 terially contributes to the activities of the Govern- 25 ment of Iran with respect to its ballistic missile proVerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 11 •HR 3364 IH 1 gram, or any other program in Iran for developing, 2 deploying, or maintaining systems capable of deliv- 3 ering weapons of mass destruction, including any ef- 4 forts to manufacture, acquire, possess, develop, 5 transport, transfer, or use such capabilities; 6 (2) is a successor entity to a person referred to 7 in paragraph (1); 8 (3) owns or controls or is owned or controlled 9 by a person referred to in paragraph (1); 10 (4) forms an entity with the purpose of evading 11 sanctions that would otherwise be imposed pursuant 12 to paragraph (3); 13 (5) is acting for or on behalf of a person re- 14 ferred to in paragraph (1), (2), (3), or (4); or 15 (6) knowingly provides or attempts to provide 16 financial, material, technological, or other support 17 for, or goods or services in support of, a person re- 18 ferred to in paragraph (1), (2), (3), (4) or (5). 19 (c) SANCTIONS DESCRIBED.—The sanctions de- 20 scribed in this subsection are the following: 21 (1) BLOCKING OF PROPERTY.—The President 22 shall block, in accordance with the International 23 Emergency Economic Powers Act (50 U.S.C. 1701 24 et seq.), all transactions in all property and interests 25 in property of any person subject to subsection (b) VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 12 •HR 3364 IH 1 if such property and interests in property are in the 2 United States, come within the United States, or are 3 or come within the possession or control of a United 4 States person. 5 (2) EXCLUSION FROM UNITED STATES.—The 6 Secretary of State shall deny a visa to, and the Sec- 7 retary of Homeland Security shall exclude from the 8 United States, any person subject to subsection (b) 9 that is an alien. 10 (d) PENALTIES.—A person that violates, attempts to 11 violate, conspires to violate, or causes a violation of sub- 12 section (c)(1) or any regulation, license, or order issued 13 to carry out that subsection shall be subject to the pen- 14 alties set forth in subsections (b) and (c) of section 206 15 of the International Emergency Economic Powers Act (50 16 U.S.C. 1705) to the same extent as a person that commits 17 an unlawful act described in subsection (a) of that section. 18 (e) REPORT ON CONTRIBUTIONS TO IRAN’S BAL- 19 LISTIC MISSILE PROGRAM.— 20 (1) IN GENERAL.—Not later than 180 days 21 after the date of the enactment of this Act, and 22 every 180 days thereafter, the President shall sub- 23 mit to the appropriate congressional committees a 24 report describing each person that— VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 13 •HR 3364 IH 1 (A) has, during the period specified in 2 paragraph (2), conducted any activity that has 3 materially contributed to the activities of the 4 Government of Iran with respect to its ballistic 5 missile program, or any other program in Iran 6 for developing, deploying, or maintaining sys- 7 tems capable of delivering weapons of mass de- 8 struction, including any efforts to manufacture, 9 acquire, possess, develop, transport, transfer, or 10 use such capabilities; 11 (B) is a successor entity to a person re- 12 ferred to in subparagraph (A); 13 (C) owns or controls or is owned or con- 14 trolled by a person referred to in subparagraph 15 (A); 16 (D) forms an entity with the purpose of 17 evading sanctions that could be imposed as a 18 result of a relationship described in subpara- 19 graph (C); 20 (E) is acting for or on behalf of a person 21 referred to in subparagraph (A), (B), (C), or 22 (D); or 23 (F) is known or believed to have provided, 24 or attempted to provide, during the period spec- 25 ified in paragraph (2), financial, material, techVerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 14 •HR 3364 IH 1 nological, or other support for, or goods or serv- 2 ices in support of, any material contribution to 3 a program described in subparagraph (A) car- 4 ried out by a person described in subparagraph 5 (A), (B), (C), (D), or (E). 6 (2) PERIOD SPECIFIED.—The period specified 7 in this paragraph is— 8 (A) in the case of the first report sub- 9 mitted under paragraph (1), the period begin- 10 ning January 1, 2016, and ending on the date 11 the report is submitted; and 12 (B) in the case of a subsequent such re- 13 port, the 180-day period preceding the submis- 14 sion of the report. 15 (3) FORM OF REPORT.—Each report required 16 by paragraph (1) shall be submitted in unclassified 17 form but may include a classified annex. 18 SEC. 105. IMPOSITION OF TERRORISM-RELATED SANC- 19 TIONS WITH RESPECT TO THE IRGC. 20 (a) FINDINGS.—Congress makes the following find- 21 ings: 22 (1) The IRGC is subject to sanctions pursuant 23 to Executive Order 13382 (50 U.S.C. 1701 note; re- 24 lating to blocking property of weapons of mass de- 25 struction delivery system proliferators and their supVerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 15 •HR 3364 IH 1 porters), the Comprehensive Iran Sanctions, Ac- 2 countability, and Divestment Act of 2010 (22 U.S.C. 3 8501 et seq.), Executive Order 13553 (50 U.S.C. 4 1701 note; relating to blocking property of certain 5 persons with respect to serious human rights abuses 6 by the Government of Iran), and Executive Order 7 13606 (50 U.S.C. 1701 note; relating to blocking 8 the property and suspending entry into the United 9 States of certain persons with respect to grave 10 human rights abuses by the Governments of Iran 11 and Syria via information technology). 12 (2) The Iranian Revolutionary Guard Corps– 13 Quds Force (in this section referred to as the 14 ‘‘IRGC–QF’’) is the primary arm of the Government 15 of Iran for executing its policy of supporting ter- 16 rorist and insurgent groups. The IRGC–QF provides 17 material, logistical assistance, training, and financial 18 support to militants and terrorist operatives 19 throughout the Middle East and South Asia and was 20 designated for the imposition of sanctions by the 21 Secretary of the Treasury pursuant to Executive 22 Order 13224 (50 U.S.C. 1701 note; relating to 23 blocking property and prohibiting transactions with 24 persons who commit, threaten to commit, or support VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00015 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 16 •HR 3364 IH 1 terrorism) in October 2007 for its support of ter- 2 rorism. 3 (3) The IRGC, not just the IRGC–QF, is re- 4 sponsible for implementing Iran’s international pro- 5 gram of destabilizing activities, support for acts of 6 international terrorism, and ballistic missile pro- 7 gram. 8 (b) IN GENERAL.—Beginning on the date that is 90 9 days after the date of the enactment of this Act, the Presi- 10 dent shall impose the sanctions described in subsection (c) 11 with respect to the IRGC and foreign persons that are 12 officials, agents, or affiliates of the IRGC. 13 (c) SANCTIONS DESCRIBED.—The sanctions de- 14 scribed in this subsection are sanctions applicable with re- 15 spect to a foreign person pursuant to Executive Order 16 13224 (50 U.S.C. 1701 note; relating to blocking property 17 and prohibiting transactions with persons who commit, 18 threaten to commit, or support terrorism). 19 SEC. 106. IMPOSITION OF ADDITIONAL SANCTIONS WITH 20 RESPECT TO PERSONS RESPONSIBLE FOR 21 HUMAN RIGHTS ABUSES. 22 (a) IN GENERAL.—Not later than 90 days after the 23 date of the enactment of this Act, and annually thereafter, 24 the Secretary of State shall submit to the appropriate con- 25 gressional committees a list of each person the Secretary VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 17 •HR 3364 IH 1 determines, based on credible evidence, on or after the 2 date of the enactment of this Act— 3 (1) is responsible for extrajudicial killings, tor- 4 ture, or other gross violations of internationally rec- 5 ognized human rights committed against individuals 6 in Iran who seek— 7 (A) to expose illegal activity carried out by 8 officials of the Government of Iran; or 9 (B) to obtain, exercise, defend, or promote 10 internationally recognized human rights and 11 freedoms, such as the freedoms of religion, ex- 12 pression, association, and assembly, and the 13 rights to a fair trial and democratic elections; 14 or 15 (2) acts as an agent of or on behalf of a foreign 16 person in a matter relating to an activity described 17 in paragraph (1). 18 (b) SANCTIONS DESCRIBED.— 19 (1) IN GENERAL.—The President may, in ac- 20 cordance with the International Emergency Eco- 21 nomic Powers Act (50 U.S.C. 1701 et seq.), block 22 all transactions in all property and interests in prop- 23 erty of a person on the list required by subsection 24 (a) if such property and interests in property are in 25 the United States, come within the United States, or VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00017 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 18 •HR 3364 IH 1 are or come within the possession or control of a 2 United States person. 3 (2) PENALTIES.—A person that violates, at- 4 tempts to violate, conspires to violate, or causes a 5 violation of paragraph (1) or any regulation, license, 6 or order issued to carry out paragraph (1) shall be 7 subject to the penalties set forth in subsections (b) 8 and (c) of section 206 of the International Emer- 9 gency Economic Powers Act (50 U.S.C. 1705) to the 10 same extent as a person that commits an unlawful 11 act described in subsection (a) of that section. 12 SEC. 107. ENFORCEMENT OF ARMS EMBARGOS. 13 (a) IN GENERAL.—Except as provided in subsection 14 (d), the President shall impose the sanctions described in 15 subsection (b) with respect to any person that the Presi- 16 dent determines— 17 (1) knowingly engages in any activity that ma- 18 terially contributes to the supply, sale, or transfer 19 directly or indirectly to or from Iran, or for the use 20 in or benefit of Iran, of any battle tanks, armored 21 combat vehicles, large caliber artillery systems, com- 22 bat aircraft, attack helicopters, warships, missiles or 23 missile systems, as defined for the purpose of the 24 United Nations Register of Conventional Arms, or 25 related materiel, including spare parts; or VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00018 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 19 •HR 3364 IH 1 (2) knowingly provides to Iran any technical 2 training, financial resources or services, advice, other 3 services or assistance related to the supply, sale, 4 transfer, manufacture, maintenance, or use of arms 5 and related materiel described in paragraph (1). 6 (b) SANCTIONS DESCRIBED.— 7 (1) BLOCKING OF PROPERTY.—The President 8 shall block, in accordance with the International 9 Emergency Economic Powers Act (50 U.S.C. 1701 10 et seq.), all transactions in all property and interests 11 in property of any person subject to subsection (a) 12 if such property and interests in property are in the 13 United States, come within the United States, or are 14 or come within the possession or control of a United 15 States person. 16 (2) EXCLUSION FROM UNITED STATES.—The 17 Secretary of State shall deny a visa to, and the Sec- 18 retary of Homeland Security shall exclude from the 19 United States, any person subject to subsection (a) 20 that is an alien. 21 (c) PENALTIES.—A person that violates, attempts to 22 violate, conspires to violate, or causes a violation of sub- 23 section (b)(1) or any regulation, license, or order issued 24 to carry out that subsection shall be subject to the pen- 25 alties set forth in subsections (b) and (c) of section 206 VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00019 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 20 •HR 3364 IH 1 of the International Emergency Economic Powers Act (50 2 U.S.C. 1705) to the same extent as a person that commits 3 an unlawful act described in subsection (a) of that section. 4 (d) EXCEPTION.—The President is not required to 5 impose sanctions under subsection (a) with respect to a 6 person for engaging in an activity described in that sub- 7 section if the President certifies to the appropriate con- 8 gressional committees that— 9 (1) permitting the activity is in the national se- 10 curity interest of the United States; 11 (2) Iran no longer presents a significant threat 12 to the national security of the United States and to 13 the allies of the United States; and 14 (3) the Government of Iran has ceased pro- 15 viding operational or financial support for acts of 16 international terrorism and no longer satisfies the 17 requirements for designation as a state sponsor of 18 terrorism. 19 (e) STATE SPONSOR OF TERRORISM DEFINED.—In 20 this section, the term ‘‘state sponsor of terrorism’’ means 21 a country the government of which the Secretary of State 22 has determined to be a government that has repeatedly 23 provided support for acts of international terrorism for 24 purposes of— VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00020 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 21 •HR 3364 IH 1 (1) section 6(j)(1)(A) of the Export Administra- 2 tion Act of 1979 (50 U.S.C. 4605(j)(1)(A)) (as con- 3 tinued in effect pursuant to the International Emer- 4 gency Economic Powers Act (50 U.S.C. 1701 et 5 seq.)); 6 (2) section 620A(a) of the Foreign Assistance 7 Act of 1961 (22 U.S.C. 2371(a)); 8 (3) section 40(d) of the Arms Export Control 9 Act (22 U.S.C. 2780(d)); or 10 (4) any other provision of law. 11 SEC. 108. REVIEW OF APPLICABILITY OF SANCTIONS RE- 12 LATING TO IRAN’S SUPPORT FOR TERRORISM 13 AND ITS BALLISTIC MISSILE PROGRAM. 14 (a) IN GENERAL.—Not later than 5 years after the 15 date of the enactment of this Act, the President shall con- 16 duct a review of all persons on the list of specially des- 17 ignated nationals and blocked persons maintained by the 18 Office of Foreign Assets Control of the Department of the 19 Treasury for activities relating to Iran— 20 (1) to assess the conduct of such persons as 21 that conduct relates to— 22 (A) any activity that materially contributes 23 to the activities of the Government of Iran with 24 respect to its ballistic missile program; or VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00021 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 22 •HR 3364 IH 1 (B) support by the Government of Iran for 2 acts of international terrorism; and 3 (2) to determine the applicability of sanctions 4 with respect to such persons under— 5 (A) Executive Order 13382 (50 U.S.C. 6 1701 note; relating to blocking property of 7 weapons of mass destruction delivery system 8 proliferators and their supporters); or 9 (B) Executive Order 13224 (50 U.S.C. 10 1701 note; relating to blocking property and 11 prohibiting transactions with persons who com- 12 mit, threaten to commit, or support terrorism). 13 (b) IMPLEMENTATION OF SANCTIONS.—If the Presi- 14 dent determines under subsection (a) that sanctions under 15 an Executive order specified in paragraph (2) of that sub- 16 section are applicable with respect to a person, the Presi- 17 dent shall— 18 (1) impose sanctions with respect to that person 19 pursuant to that Executive order; or 20 (2) exercise the waiver authority provided under 21 section 112. VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00022 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 23 •HR 3364 IH 1 SEC. 109. REPORT ON COORDINATION OF SANCTIONS BE- 2 TWEEN THE UNITED STATES AND THE EURO- 3 PEAN UNION. 4 (a) IN GENERAL.—Not later than 180 days after the 5 date of the enactment of this Act, and every 180 days 6 thereafter, the President shall submit to the appropriate 7 congressional committees a report that includes the fol- 8 lowing: 9 (1) A description of each instance, during the 10 period specified in subsection (b)— 11 (A) in which the United States has im- 12 posed sanctions with respect to a person for ac- 13 tivity related to the proliferation of weapons of 14 mass destruction or delivery systems for such 15 weapons to or by Iran, support for acts of inter- 16 national terrorism by Iran, or human rights 17 abuses in Iran, but in which the European 18 Union has not imposed corresponding sanctions; 19 and 20 (B) in which the European Union has im- 21 posed sanctions with respect to a person for ac- 22 tivity related to the proliferation of weapons of 23 mass destruction or delivery systems for such 24 weapons to or by Iran, support for acts of inter- 25 national terrorism by Iran, or human rights VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00023 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 24 •HR 3364 IH 1 abuses in Iran, but in which the United States 2 has not imposed corresponding sanctions. 3 (2) An explanation for the reason for each dis- 4 crepancy between sanctions imposed by the Euro- 5 pean Union and sanctions imposed by the United 6 States described in subparagraphs (A) and (B) of 7 paragraph (1). 8 (b) PERIOD SPECIFIED.—The period specified in this 9 subsection is— 10 (1) in the case of the first report submitted 11 under subsection (a), the period beginning on the 12 date of the enactment of this Act and ending on the 13 date the report is submitted; and 14 (2) in the case of a subsequent such report, the 15 180-day period preceding the submission of the re- 16 port. 17 (c) FORM OF REPORT.—The report required by sub- 18 section (a) shall be submitted in unclassified form but may 19 include a classified annex. 20 SEC. 110. REPORT ON UNITED STATES CITIZENS DETAINED 21 BY IRAN. 22 (a) IN GENERAL.—Not later than 90 days after the 23 date of the enactment of this Act, and every 180 days 24 thereafter, the President shall submit to the appropriate 25 congressional committees and leadership a report on VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00024 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 25 •HR 3364 IH 1 United States citizens, including United States citizens 2 who are also citizens of other countries, detained by Iran 3 or groups supported by Iran that includes— 4 (1) information regarding any officials of the 5 Government of Iran involved in any way in the de- 6 tentions; and 7 (2) a summary of efforts the United States 8 Government has taken to secure the swift release of 9 those United States citizens. 10 (b) FORM OF REPORT.—The report required by sub- 11 section (a) shall be submitted in unclassified form, but 12 may include a classified annex. 13 (c) APPROPRIATE CONGRESSIONAL COMMITTEES 14 AND LEADERSHIP DEFINED.—In this section, the term 15 ‘‘appropriate congressional committees and leadership’’ 16 means— 17 (1) the Committee on Finance, the Committee 18 on Banking, Housing, and Urban Affairs, the Com- 19 mittee on Foreign Relations, and the majority and 20 minority leaders of the Senate; and 21 (2) the Committee on Ways and Means, the 22 Committee on Financial Services, the Committee on 23 Foreign Affairs, and the Speaker, the majority lead- 24 er, and the minority leader of the House of Rep- 25 resentatives. VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 26 •HR 3364 IH 1 SEC. 111. EXCEPTIONS FOR NATIONAL SECURITY AND HU- 2 MANITARIAN ASSISTANCE; RULE OF CON- 3 STRUCTION. 4 (a) IN GENERAL.—The following activities shall be 5 exempt from sanctions under sections 104, 105, 106, and 6 107: 7 (1) Any activity subject to the reporting re- 8 quirements under title V of the National Security 9 Act of 1947 (50 U.S.C. 3091 et seq.), or to any au- 10 thorized intelligence activities of the United States. 11 (2) The admission of an alien to the United 12 States if such admission is necessary to comply with 13 United States obligations under the Agreement be- 14 tween the United Nations and the United States of 15 America regarding the Headquarters of the United 16 Nations, signed at Lake Success June 26, 1947, and 17 entered into force November 21, 1947, or under the 18 Convention on Consular Relations, done at Vienna 19 April 24, 1963, and entered into force March 19, 20 1967, or other applicable international obligations of 21 the United States. 22 (3) The conduct or facilitation of a transaction 23 for the sale of agricultural commodities, food, medi- 24 cine, or medical devices to Iran or for the provision 25 of humanitarian assistance to the people of Iran, in- 26 cluding engaging in a financial transaction relating VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00026 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 27 •HR 3364 IH 1 to humanitarian assistance or for humanitarian pur- 2 poses or transporting goods or services that are nec- 3 essary to carry out operations relating to humani- 4 tarian assistance or humanitarian purposes. 5 (b) IMPLEMENTATION.—The President may exercise 6 all authorities provided under sections 203 and 205 of the 7 International Emergency Economic Powers Act (50 8 U.S.C. 1702 and 1704) to carry out this Act. 9 (c) RULE OF CONSTRUCTION.—Nothing in this Act 10 shall be construed to limit the authority of the President 11 under the International Emergency Economic Powers Act 12 (50 U.S.C. 1701 et seq.). 13 (d) DEFINITIONS.—In this section: 14 (1) AGRICULTURAL COMMODITY.—The term 15 ‘‘agricultural commodity’’ has the meaning given 16 that term in section 102 of the Agricultural Trade 17 Act of 1978 (7 U.S.C. 5602). 18 (2) GOOD.—The term ‘‘good’’ has the meaning 19 given that term in section 16 of the Export Adminis- 20 tration Act of 1979 (50 U.S.C. 4618) (as continued 21 in effect pursuant to the International Emergency 22 Economic Powers Act (50 U.S.C. 1701 et seq.)). 23 (3) MEDICAL DEVICE.—The term ‘‘medical de- 24 vice’’ has the meaning given the term ‘‘device’’ in VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00027 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 28 •HR 3364 IH 1 section 201 of the Federal Food, Drug, and Cos- 2 metic Act (21 U.S.C. 321). 3 (4) MEDICINE.—The term ‘‘medicine’’ has the 4 meaning given the term ‘‘drug’’ in section 201 of the 5 Federal Food, Drug, and Cosmetic Act (21 U.S.C. 6 321). 7 SEC. 112. PRESIDENTIAL WAIVER AUTHORITY. 8 (a) CASE-BY-CASE WAIVER AUTHORITY.— 9 (1) IN GENERAL.—The President may waive, 10 on a case-by-case basis and for a period of not more 11 than 180 days, a requirement under section 104, 12 105, 106, 107, or 108 to impose or maintain sanc- 13 tions with respect to a person, and may waive the 14 continued imposition of such sanctions, not less than 15 30 days after the President determines and reports 16 to the appropriate congressional committees that it 17 is vital to the national security interests of the 18 United States to waive such sanctions. 19 (2) RENEWAL OF WAIVERS.—The President 20 may, on a case-by-case basis, renew a waiver under 21 paragraph (1) for an additional period of not more 22 than 180 days if, not later than 15 days before that 23 waiver expires, the President makes the determina- 24 tion and submits to the appropriate congressional 25 committees a report described in paragraph (1). VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00028 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 29 •HR 3364 IH 1 (3) SUCCESSIVE RENEWAL.—The renewal au- 2 thority provided under paragraph (2) may be exer- 3 cised for additional successive periods of not more 4 than 180 days if the President follows the proce- 5 dures set forth in paragraph (2), and submits the 6 report described in paragraph (1), for each such re- 7 newal. 8 (b) CONTENTS OF WAIVER REPORTS.—Each report 9 submitted under subsection (a) in connection with a waiv- 10 er of sanctions under section 104, 105, 106, 107, or 108 11 with respect to a person, or the renewal of such a waiver, 12 shall include— 13 (1) a specific and detailed rationale for the de- 14 termination that the waiver is vital to the national 15 security interests of the United States; 16 (2) a description of the activity that resulted in 17 the person being subject to sanctions; 18 (3) an explanation of any efforts made by the 19 United States, as applicable, to secure the coopera- 20 tion of the government with primary jurisdiction 21 over the person or the location where the activity de- 22 scribed in paragraph (2) occurred in terminating or, 23 as appropriate, penalizing the activity; and 24 (4) an assessment of the significance of the ac- 25 tivity described in paragraph (2) in contributing to VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00029 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 30 •HR 3364 IH 1 the ability of Iran to threaten the interests of the 2 United States or allies of the United States, develop 3 systems capable of delivering weapons of mass de- 4 struction, support acts of international terrorism, or 5 violate the human rights of any person in Iran. 6 (c) EFFECT OF REPORT ON WAIVER.—If the Presi- 7 dent submits a report under subsection (a) in connection 8 with a waiver of sanctions under section 104, 105, 106, 9 107, or 108 with respect to a person, or the renewal of 10 such a waiver, the President shall not be required to im- 11 pose or maintain sanctions under section 104, 105, 106, 12 107, or 108, as applicable, with respect to the person de- 13 scribed in the report during the 30-day period referred to 14 in subsection (a). 15 TITLE II—SANCTIONS WITH RE- 16 SPECT TO THE RUSSIAN FED- 17 ERATION AND COMBATING 18 TERRORISM AND ILLICIT FI- 19 NANCING 20 SEC. 201. SHORT TITLE. 21 This title may be cited as the ‘‘Countering Russian 22 Influence in Europe and Eurasia Act of 2017’’. VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00030 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 31 •HR 3364 IH 1 Subtitle A—Sanctions and Other 2 Measures With Respect to the 3 Russian Federation 4 SEC. 211. FINDINGS. 5 Congress makes the following findings: 6 (1) On March 6, 2014, President Barack 7 Obama issued Executive Order 13660 (79 Fed. Reg. 8 13493; relating to blocking property of certain per- 9 sons contributing to the situation in Ukraine), which 10 authorizes the Secretary of the Treasury, in con- 11 sultation with the Secretary of State, to impose 12 sanctions on those determined to be undermining 13 democratic processes and institutions in Ukraine or 14 threatening the peace, security, stability, sov- 15 ereignty, and territorial integrity of Ukraine. Presi- 16 dent Obama subsequently issued Executive Order 17 13661 (79 Fed. Reg. 15535; relating to blocking 18 property of additional persons contributing to the 19 situation in Ukraine) and Executive Order 13662 20 (79 Fed. Reg. 16169; relating to blocking property 21 of additional persons contributing to the situation in 22 Ukraine) to expand sanctions on certain persons 23 contributing to the situation in Ukraine. 24 (2) On December 18, 2014, the Ukraine Free- 25 dom Support Act of 2014 was enacted (Public Law VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00031 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 32 •HR 3364 IH 1 113–272; 22 U.S.C. 8921 et seq.), which includes 2 provisions directing the President to impose sanc- 3 tions on foreign persons that the President deter- 4 mines to be entities owned or controlled by the Gov- 5 ernment of the Russian Federation or nationals of 6 the Russian Federation that manufacture, sell, 7 transfer, or otherwise provide certain defense articles 8 into Syria. 9 (3) On April 1, 2015, President Obama issued 10 Executive Order 13694 (80 Fed. Reg. 18077; relat- 11 ing to blocking the property of certain persons en- 12 gaging in significant malicious cyber-enabled activi- 13 ties), which authorizes the Secretary of the Treas- 14 ury, in consultation with the Attorney General and 15 the Secretary of State, to impose sanctions on per- 16 sons determined to be engaged in malicious cyber- 17 hacking. 18 (4) On July 26, 2016, President Obama ap- 19 proved a Presidential Policy Directive on United 20 States Cyber Incident Coordination, which states, 21 ‘‘certain cyber incidents that have significant im- 22 pacts on an entity, our national security, or the 23 broader economy require a unique approach to re- 24 sponse efforts’’. VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00032 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 33 •HR 3364 IH 1 (5) On December 29, 2016, President Obama 2 issued an annex to Executive Order 13694, which 3 authorized sanctions on the following entities and in- 4 dividuals: 5 (A) The Main Intelligence Directorate 6 (also known as Glavnoe Razvedyvatel’noe 7 Upravlenie or the GRU) in Moscow, Russian 8 Federation. 9 (B) The Federal Security Service (also 10 known as Federalnaya Sluzhba Bezopasnosti or 11 the FSB) in Moscow, Russian Federation. 12 (C) The Special Technology Center (also 13 known as STLC, Ltd. Special Technology Cen- 14 ter St. Petersburg) in St. Petersburg, Russian 15 Federation. 16 (D) Zorsecurity (also known as Esage 17 Lab) in Moscow, Russian Federation. 18 (E) The autonomous noncommercial orga- 19 nization known as the Professional Association 20 of Designers of Data Processing Systems (also 21 known as ANO PO KSI) in Moscow, Russian 22 Federation. 23 (F) Igor Valentinovich Korobov. 24 (G) Sergey Aleksandrovich Gizunov. 25 (H) Igor Olegovich Kostyukov. VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00033 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 34 •HR 3364 IH 1 (I) Vladimir Stepanovich Alexseyev. 2 (6) On January 6, 2017, an assessment of the 3 United States intelligence community entitled, ‘‘As- 4 sessing Russian Activities and Intentions in Recent 5 U.S. Elections’’ stated, ‘‘Russian President Vladimir 6 Putin ordered an influence campaign in 2016 aimed 7 at the United States presidential election.’’ The as- 8 sessment warns that ‘‘Moscow will apply lessons 9 learned from its Putin-ordered campaign aimed at 10 the U.S. Presidential election to future influence ef- 11 forts worldwide, including against U.S. allies and 12 their election processes’’. 13 SEC. 212. SENSE OF CONGRESS. 14 It is the sense of Congress that the President— 15 (1) should continue to uphold and seek unity 16 with European and other key partners on sanctions 17 implemented against the Russian Federation, which 18 have been effective and instrumental in countering 19 Russian aggression in Ukraine; 20 (2) should engage to the fullest extent possible 21 with partner governments with regard to closing 22 loopholes, including the allowance of extended pre- 23 payment for the delivery of goods and commodities 24 and other loopholes, in multilateral and unilateral 25 restrictive measures against the Russian Federation, VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00034 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 35 •HR 3364 IH 1 with the aim of maximizing alignment of those 2 measures; and 3 (3) should increase efforts to vigorously enforce 4 compliance with sanctions in place as of the date of 5 the enactment of this Act with respect to the Rus- 6 sian Federation in response to the crisis in eastern 7 Ukraine, cyber intrusions and attacks, and human 8 rights violators in the Russian Federation. 9 PART 1—CONGRESSIONAL REVIEW OF SANC- 10 TIONS IMPOSED WITH RESPECT TO THE RUS- 11 SIAN FEDERATION 12 SEC. 215. SHORT TITLE. 13 This part may be cited as the ‘‘Russia Sanctions Re- 14 view Act of 2017’’. 15 SEC. 216. CONGRESSIONAL REVIEW OF CERTAIN ACTIONS 16 RELATING TO SANCTIONS IMPOSED WITH RE- 17 SPECT TO THE RUSSIAN FEDERATION. 18 (a) SUBMISSION TO CONGRESS OF PROPOSED AC- 19 TION.— 20 (1) IN GENERAL.—Notwithstanding any other 21 provision of law, before taking any action described 22 in paragraph (2), the President shall submit to the 23 appropriate congressional committees and leadership 24 a report that describes the proposed action and the 25 reasons for that action. VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00035 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 36 •HR 3364 IH 1 (2) ACTIONS DESCRIBED.— 2 (A) IN GENERAL.—An action described in 3 this paragraph is— 4 (i) an action to terminate the applica- 5 tion of any sanctions described in subpara- 6 graph (B); 7 (ii) with respect to sanctions described 8 in subparagraph (B) imposed by the Presi- 9 dent with respect to a person, an action to 10 waive the application of those sanctions 11 with respect to that person; or 12 (iii) a licensing action that signifi- 13 cantly alters United States’ foreign policy 14 with regard to the Russian Federation. 15 (B) SANCTIONS DESCRIBED.—The sanc- 16 tions described in this subparagraph are— 17 (i) sanctions provided for under— 18 (I) this title or any provision of 19 law amended by this title, including 20 the Executive orders codified under 21 section 222; 22 (II) the Support for the Sov- 23 ereignty, Integrity, Democracy, and 24 Economic Stability of Ukraine Act of 25 2014 (22 U.S.C. 8901 et seq.); or VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00036 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 37 •HR 3364 IH 1 (III) the Ukraine Freedom Sup- 2 port Act of 2014 (22 U.S.C. 8921 et 3 seq.); and 4 (ii) the prohibition on access to the 5 properties of the Government of the Rus- 6 sian Federation located in Maryland and 7 New York that the President ordered va- 8 cated on December 29, 2016. 9 (3) DESCRIPTION OF TYPE OF ACTION.—Each 10 report submitted under paragraph (1) with respect 11 to an action described in paragraph (2) shall include 12 a description of whether the action— 13 (A) is not intended to significantly alter 14 United States foreign policy with regard to the 15 Russian Federation; or 16 (B) is intended to significantly alter 17 United States foreign policy with regard to the 18 Russian Federation. 19 (4) INCLUSION OF ADDITIONAL MATTER.— 20 (A) IN GENERAL.—Each report submitted 21 under paragraph (1) that relates to an action 22 that is intended to significantly alter United 23 States foreign policy with regard to the Russian 24 Federation shall include a description of— VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00037 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 38 •HR 3364 IH 1 (i) the significant alteration to United 2 States foreign policy with regard to the 3 Russian Federation; 4 (ii) the anticipated effect of the action 5 on the national security interests of the 6 United States; and 7 (iii) the policy objectives for which the 8 sanctions affected by the action were ini- 9 tially imposed. 10 (B) REQUESTS FROM BANKING AND FI- 11 NANCIAL SERVICES COMMITTEES.—The Com- 12 mittee on Banking, Housing, and Urban Affairs 13 of the Senate or the Committee on Financial 14 Services of the House of Representatives may 15 request the submission to the Committee of the 16 matter described in clauses (ii) and (iii) of sub- 17 paragraph (A) with respect to a report sub- 18 mitted under paragraph (1) that relates to an 19 action that is not intended to significantly alter 20 United States foreign policy with regard to the 21 Russian Federation. 22 (5) CONFIDENTIALITY OF PROPRIETARY INFOR- 23 MATION.—Proprietary information that can be asso- 24 ciated with a particular person with respect to an 25 action described in paragraph (2) may be included VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00038 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 39 •HR 3364 IH 1 in a report submitted under paragraph (1) only if 2 the appropriate congressional committees and lead- 3 ership provide assurances of confidentiality, unless 4 such person otherwise consents in writing to such 5 disclosure. 6 (6) RULE OF CONSTRUCTION.—Paragraph 7 (2)(A)(iii) shall not be construed to require the sub- 8 mission of a report under paragraph (1) with respect 9 to the routine issuance of a license that does not sig- 10 nificantly alter United States foreign policy with re- 11 gard to the Russian Federation. 12 (b) PERIOD FOR REVIEW BY CONGRESS.— 13 (1) IN GENERAL.—During the period of 30 cal- 14 endar days beginning on the date on which the 15 President submits a report under subsection 16 (a)(1)— 17 (A) in the case of a report that relates to 18 an action that is not intended to significantly 19 alter United States foreign policy with regard 20 to the Russian Federation, the Committee on 21 Banking, Housing, and Urban Affairs of the 22 Senate and the Committee on Financial Serv- 23 ices of the House of Representatives should, as 24 appropriate, hold hearings and briefings and VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00039 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 40 •HR 3364 IH 1 otherwise obtain information in order to fully 2 review the report; and 3 (B) in the case of a report that relates to 4 an action that is intended to significantly alter 5 United States foreign policy with regard to the 6 Russian Federation, the Committee on Foreign 7 Relations of the Senate and the Committee on 8 Foreign Affairs of the House of Representatives 9 should, as appropriate, hold hearings and brief- 10 ings and otherwise obtain information in order 11 to fully review the report. 12 (2) EXCEPTION.—The period for congressional 13 review under paragraph (1) of a report required to 14 be submitted under subsection (a)(1) shall be 60 cal- 15 endar days if the report is submitted on or after 16 July 10 and on or before September 7 in any cal- 17 endar year. 18 (3) LIMITATION ON ACTIONS DURING INITIAL 19 CONGRESSIONAL REVIEW PERIOD.—Notwithstanding 20 any other provision of law, during the period for 21 congressional review provided for under paragraph 22 (1) of a report submitted under subsection (a)(1) 23 proposing an action described in subsection (a)(2), 24 including any additional period for such review as 25 applicable under the exception provided in paragraph VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00040 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 41 •HR 3364 IH 1 (2), the President may not take that action unless 2 a joint resolution of approval with respect to that ac- 3 tion is enacted in accordance with subsection (c). 4 (4) LIMITATION ON ACTIONS DURING PRESI- 5 DENTIAL CONSIDERATION OF A JOINT RESOLUTION 6 OF DISAPPROVAL.—Notwithstanding any other pro- 7 vision of law, if a joint resolution of disapproval re- 8 lating to a report submitted under subsection (a)(1) 9 proposing an action described in subsection (a)(2) 10 passes both Houses of Congress in accordance with 11 subsection (c), the President may not take that ac- 12 tion for a period of 12 calendar days after the date 13 of passage of the joint resolution of disapproval. 14 (5) LIMITATION ON ACTIONS DURING CONGRES- 15 SIONAL RECONSIDERATION OF A JOINT RESOLUTION 16 OF DISAPPROVAL.—Notwithstanding any other pro- 17 vision of law, if a joint resolution of disapproval re- 18 lating to a report submitted under subsection (a)(1) 19 proposing an action described in subsection (a)(2) 20 passes both Houses of Congress in accordance with 21 subsection (c), and the President vetoes the joint 22 resolution, the President may not take that action 23 for a period of 10 calendar days after the date of 24 the President’s veto. VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00041 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 42 •HR 3364 IH 1 (6) EFFECT OF ENACTMENT OF A JOINT RESO- 2 LUTION OF DISAPPROVAL.—Notwithstanding any 3 other provision of law, if a joint resolution of dis- 4 approval relating to a report submitted under sub- 5 section (a)(1) proposing an action described in sub- 6 section (a)(2) is enacted in accordance with sub- 7 section (c), the President may not take that action. 8 (c) JOINT RESOLUTIONS OF DISAPPROVAL OR AP- 9 PROVAL DEFINED.—In this subsection: 10 (1) JOINT RESOLUTION OF APPROVAL.—The 11 term ‘‘joint resolution of approval’’ means only a 12 joint resolution of either House of Congress— 13 (A) the title of which is as follows: ‘‘A joint 14 resolution approving the President’s proposal to 15 take an action relating to the application of cer- 16 tain sanctions with respect to the Russian Fed- 17 eration.’’; and 18 (B) the sole matter after the resolving 19 clause of which is the following: ‘‘Congress ap- 20 proves of the action relating to the application 21 of sanctions imposed with respect to the Rus- 22 sian Federation proposed by the President in 23 the report submitted to Congress under section 24 216(a)(1) of the Russia Sanctions Review Act 25 of 2017 on lllllll relating to VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00042 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 43 •HR 3364 IH 1 llllllll.’’, with the first blank space 2 being filled with the appropriate date and the 3 second blank space being filled with a short de- 4 scription of the proposed action. 5 (2) JOINT RESOLUTION OF DISAPPROVAL.—The 6 term ‘‘joint resolution of disapproval’’ means only a 7 joint resolution of either House of Congress— 8 (A) the title of which is as follows: ‘‘A joint 9 resolution disapproving the President’s proposal 10 to take an action relating to the application of 11 certain sanctions with respect to the Russian 12 Federation.’’; and 13 (B) the sole matter after the resolving 14 clause of which is the following: ‘‘Congress dis- 15 approves of the action relating to the applica- 16 tion of sanctions imposed with respect to the 17 Russian Federation proposed by the President 18 in the report submitted to Congress under sec- 19 tion 216(a)(1) of the Russia Sanctions Review 20 Act of 2017 on lllllll relating to 21 llllllll.’’, with the first blank space 22 being filled with the appropriate date and the 23 second blank space being filled with a short de- 24 scription of the proposed action. VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00043 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 44 •HR 3364 IH 1 (3) INTRODUCTION.—During the period of 30 2 calendar days provided for under subsection (b)(1), 3 including any additional period as applicable under 4 the exception provided in subsection (b)(2), a joint 5 resolution of approval or joint resolution of dis- 6 approval may be introduced— 7 (A) in the House of Representatives, by 8 the majority leader or the minority leader; and 9 (B) in the Senate, by the majority leader 10 (or the majority leader’s designee) or the mi- 11 nority leader (or the minority leader’s des- 12 ignee). 13 (4) FLOOR CONSIDERATION IN HOUSE OF REP- 14 RESENTATIVES.—If a committee of the House of 15 Representatives to which a joint resolution of ap- 16 proval or joint resolution of disapproval has been re- 17 ferred has not reported the joint resolution within 18 10 calendar days after the date of referral, that 19 committee shall be discharged from further consider- 20 ation of the joint resolution. 21 (5) CONSIDERATION IN THE SENATE.— 22 (A) COMMITTEE REFERRAL.—A joint reso- 23 lution of approval or joint resolution of dis- 24 approval introduced in the Senate shall be— VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00044 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 45 •HR 3364 IH 1 (i) referred to the Committee on 2 Banking, Housing, and Urban Affairs if 3 the joint resolution relates to a report 4 under subsection (a)(3)(A) that relates to 5 an action that is not intended to signifi- 6 cantly alter United States foreign policy 7 with regard to the Russian Federation; 8 and 9 (ii) referred to the Committee on For- 10 eign Relations if the joint resolution relates 11 to a report under subsection (a)(3)(B) that 12 relates to an action that is intended to sig- 13 nificantly alter United States foreign policy 14 with respect to the Russian Federation. 15 (B) REPORTING AND DISCHARGE.—If the 16 committee to which a joint resolution of ap- 17 proval or joint resolution of disapproval was re- 18 ferred has not reported the joint resolution 19 within 10 calendar days after the date of refer- 20 ral of the joint resolution, that committee shall 21 be discharged from further consideration of the 22 joint resolution and the joint resolution shall be 23 placed on the appropriate calendar. 24 (C) PROCEEDING TO CONSIDERATION.— 25 Notwithstanding Rule XXII of the Standing VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00045 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 46 •HR 3364 IH 1 Rules of the Senate, it is in order at any time 2 after the Committee on Banking, Housing, and 3 Urban Affairs or the Committee on Foreign Re- 4 lations, as the case may be, reports a joint reso- 5 lution of approval or joint resolution of dis- 6 approval to the Senate or has been discharged 7 from consideration of such a joint resolution 8 (even though a previous motion to the same ef- 9 fect has been disagreed to) to move to proceed 10 to the consideration of the joint resolution, and 11 all points of order against the joint resolution 12 (and against consideration of the joint resolu- 13 tion) are waived. The motion to proceed is not 14 debatable. The motion is not subject to a mo- 15 tion to postpone. A motion to reconsider the 16 vote by which the motion is agreed to or dis- 17 agreed to shall not be in order. 18 (D) RULINGS OF THE CHAIR ON PROCE- 19 DURE.—Appeals from the decisions of the Chair 20 relating to the application of the rules of the 21 Senate, as the case may be, to the procedure re- 22 lating to a joint resolution of approval or joint 23 resolution of disapproval shall be decided with- 24 out debate. VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00046 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 47 •HR 3364 IH 1 (E) CONSIDERATION OF VETO MES- 2 SAGES.—Debate in the Senate of any veto mes- 3 sage with respect to a joint resolution of ap- 4 proval or joint resolution of disapproval, includ- 5 ing all debatable motions and appeals in con- 6 nection with the joint resolution, shall be lim- 7 ited to 10 hours, to be equally divided between, 8 and controlled by, the majority leader and the 9 minority leader or their designees. 10 (6) RULES RELATING TO SENATE AND HOUSE 11 OF REPRESENTATIVES.— 12 (A) TREATMENT OF SENATE JOINT RESO- 13 LUTION IN HOUSE.—In the House of Rep- 14 resentatives, the following procedures shall 15 apply to a joint resolution of approval or a joint 16 resolution of disapproval received from the Sen- 17 ate (unless the House has already passed a 18 joint resolution relating to the same proposed 19 action): 20 (i) The joint resolution shall be re- 21 ferred to the appropriate committees. 22 (ii) If a committee to which a joint 23 resolution has been referred has not re- 24 ported the joint resolution within two cal- 25 endar days after the date of referral, that VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00047 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 48 •HR 3364 IH 1 committee shall be discharged from further 2 consideration of the joint resolution. 3 (iii) Beginning on the third legislative 4 day after each committee to which a joint 5 resolution has been referred reports the 6 joint resolution to the House or has been 7 discharged from further consideration 8 thereof, it shall be in order to move to pro- 9 ceed to consider the joint resolution in the 10 House. All points of order against the mo- 11 tion are waived. Such a motion shall not be 12 in order after the House has disposed of a 13 motion to proceed on the joint resolution. 14 The previous question shall be considered 15 as ordered on the motion to its adoption 16 without intervening motion. The motion 17 shall not be debatable. A motion to recon- 18 sider the vote by which the motion is dis- 19 posed of shall not be in order. 20 (iv) The joint resolution shall be con- 21 sidered as read. All points of order against 22 the joint resolution and against its consid- 23 eration are waived. The previous question 24 shall be considered as ordered on the joint 25 resolution to final passage without interVerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00048 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 49 •HR 3364 IH 1 vening motion except two hours of debate 2 equally divided and controlled by the spon- 3 sor of the joint resolution (or a designee) 4 and an opponent. A motion to reconsider 5 the vote on passage of the joint resolution 6 shall not be in order. 7 (B) TREATMENT OF HOUSE JOINT RESO- 8 LUTION IN SENATE.— 9 (i) If, before the passage by the Sen- 10 ate of a joint resolution of approval or 11 joint resolution of disapproval, the Senate 12 receives an identical joint resolution from 13 the House of Representatives, the following 14 procedures shall apply: 15 (I) That joint resolution shall not 16 be referred to a committee. 17 (II) With respect to that joint 18 resolution— 19 (aa) the procedure in the 20 Senate shall be the same as if no 21 joint resolution had been received 22 from the House of Representa- 23 tives; but 24 (bb) the vote on passage 25 shall be on the joint resolution VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00049 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 50 •HR 3364 IH 1 from the House of Representa- 2 tives. 3 (ii) If, following passage of a joint 4 resolution of approval or joint resolution of 5 disapproval in the Senate, the Senate re- 6 ceives an identical joint resolution from the 7 House of Representatives, that joint reso- 8 lution shall be placed on the appropriate 9 Senate calendar. 10 (iii) If a joint resolution of approval 11 or a joint resolution of disapproval is re- 12 ceived from the House, and no companion 13 joint resolution has been introduced in the 14 Senate, the Senate procedures under this 15 subsection shall apply to the House joint 16 resolution. 17 (C) APPLICATION TO REVENUE MEAS- 18 URES.—The provisions of this paragraph shall 19 not apply in the House of Representatives to a 20 joint resolution of approval or joint resolution 21 of disapproval that is a revenue measure. 22 (7) RULES OF HOUSE OF REPRESENTATIVES 23 AND SENATE.—This subsection is enacted by Con- 24 gress— VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00050 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 51 •HR 3364 IH 1 (A) as an exercise of the rulemaking power 2 of the Senate and the House of Representa- 3 tives, respectively, and as such is deemed a part 4 of the rules of each House, respectively, and su- 5 persedes other rules only to the extent that it 6 is inconsistent with such rules; and 7 (B) with full recognition of the constitu- 8 tional right of either House to change the rules 9 (so far as relating to the procedure of that 10 House) at any time, in the same manner, and 11 to the same extent as in the case of any other 12 rule of that House. 13 (d) APPROPRIATE CONGRESSIONAL COMMITTEES 14 AND LEADERSHIP DEFINED.—In this section, the term 15 ‘‘appropriate congressional committees and leadership’’ 16 means— 17 (1) the Committee on Banking, Housing, and 18 Urban Affairs, the Committee on Foreign Relations, 19 and the majority and minority leaders of the Senate; 20 and 21 (2) the Committee on Financial Services, the 22 Committee on Foreign Affairs, and the Speaker, the 23 majority leader, and the minority leader of the 24 House of Representatives. VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00051 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 52 •HR 3364 IH 1 PART 2—SANCTIONS WITH RESPECT TO THE 2 RUSSIAN FEDERATION 3 SEC. 221. DEFINITIONS. 4 In this part: 5 (1) APPROPRIATE CONGRESSIONAL COMMIT- 6 TEES.—The term ‘‘appropriate congressional com- 7 mittees’’ means— 8 (A) the Committee on Banking, Housing, 9 and Urban Affairs, the Committee on Foreign 10 Relations, and the Committee on Finance of the 11 Senate; and 12 (B) the Committee on Foreign Affairs, the 13 Committee on Financial Services, and the Com- 14 mittee on Ways and Means of the House of 15 Representatives. 16 (2) GOOD.—The term ‘‘good’’ has the meaning 17 given that term in section 16 of the Export Adminis- 18 tration Act of 1979 (50 U.S.C. 4618) (as continued 19 in effect pursuant to the International Emergency 20 Economic Powers Act (50 U.S.C. 1701 et seq.)). 21 (3) INTERNATIONAL FINANCIAL INSTITU- 22 TION.—The term ‘‘international financial institu- 23 tion’’ has the meaning given that term in section 24 1701(c) of the International Financial Institutions 25 Act (22 U.S.C. 262r(c)). VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00052 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 53 •HR 3364 IH 1 (4) KNOWINGLY.—The term ‘‘knowingly’’, with 2 respect to conduct, a circumstance, or a result, 3 means that a person has actual knowledge, or should 4 have known, of the conduct, the circumstance, or the 5 result. 6 (5) PERSON.—The term ‘‘person’’ means an in- 7 dividual or entity. 8 (6) UNITED STATES PERSON.—The term 9 ‘‘United States person’’ means— 10 (A) a United States citizen or an alien law- 11 fully admitted for permanent residence to the 12 United States; or 13 (B) an entity organized under the laws of 14 the United States or of any jurisdiction within 15 the United States, including a foreign branch of 16 such an entity. 17 SEC. 222. CODIFICATION OF SANCTIONS RELATING TO THE 18 RUSSIAN FEDERATION. 19 (a) CODIFICATION.—United States sanctions pro- 20 vided for in Executive Order 13660 (79 Fed. Reg. 13493; 21 relating to blocking property of certain persons contrib- 22 uting to the situation in Ukraine), Executive Order 13661 23 (79 Fed. Reg. 15535; relating to blocking property of ad- 24 ditional persons contributing to the situation in Ukraine), 25 Executive Order 13662 (79 Fed. Reg. 16169; relating to VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00053 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 54 •HR 3364 IH 1 blocking property of additional persons contributing to the 2 situation in Ukraine), Executive Order 13685 (79 Fed. 3 Reg. 77357; relating to blocking property of certain per- 4 sons and prohibiting certain transactions with respect to 5 the Crimea region of Ukraine), Executive Order 13694 6 (80 Fed. Reg. 18077; relating to blocking the property 7 of certain persons engaging in significant malicious cyber- 8 enabled activities), and Executive Order 13757 (82 Fed. 9 Reg. 1; relating to taking additional steps to address the 10 national emergency with respect to significant malicious 11 cyber-enabled activities), as in effect on the day before the 12 date of the enactment of this Act, including with respect 13 to all persons sanctioned under such Executive orders, 14 shall remain in effect except as provided in subsection (b). 15 (b) TERMINATION OF CERTAIN SANCTIONS.—Subject 16 to section 216, the President may terminate the applica- 17 tion of sanctions described in subsection (a) that are im- 18 posed on a person in connection with activity conducted 19 by the person if the President submits to the appropriate 20 congressional committees a notice that— 21 (1) the person is not engaging in the activity 22 that was the basis for the sanctions or has taken 23 significant verifiable steps toward stopping the activ- 24 ity; and VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00054 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 55 •HR 3364 IH 1 (2) the President has received reliable assur- 2 ances that the person will not knowingly engage in 3 activity subject to sanctions described in subsection 4 (a) in the future. 5 (c) APPLICATION OF NEW CYBER SANCTIONS.—The 6 President may waive the initial application under sub- 7 section (a) of sanctions with respect to a person under 8 Executive Order 13694 or 13757 only if the President 9 submits to the appropriate congressional committees— 10 (1) a written determination that the waiver— 11 (A) is in the vital national security inter- 12 ests of the United States; or 13 (B) will further the enforcement of this 14 title; and 15 (2) a certification that the Government of the 16 Russian Federation has made significant efforts to 17 reduce the number and intensity of cyber intrusions 18 conducted by that Government. 19 (d) APPLICATION OF NEW UKRAINE-RELATED SANC- 20 TIONS.—The President may waive the initial application 21 under subsection (a) of sanctions with respect to a person 22 under Executive Order 13660, 13661, 13662, or 13685 23 only if the President submits to the appropriate congres- 24 sional committees— 25 (1) a written determination that the waiver— VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00055 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 56 •HR 3364 IH 1 (A) is in the vital national security inter- 2 ests of the United States; or 3 (B) will further the enforcement of this 4 title; and 5 (2) a certification that the Government of the 6 Russian Federation is taking steps to implement the 7 Minsk Agreement to address the ongoing conflict in 8 eastern Ukraine, signed in Minsk, Belarus, on Feb- 9 ruary 11, 2015, by the leaders of Ukraine, Russia, 10 France, and Germany, the Minsk Protocol, which 11 was agreed to on September 5, 2014, and any suc- 12 cessor agreements that are agreed to by the Govern- 13 ment of Ukraine. 14 SEC. 223. MODIFICATION OF IMPLEMENTATION OF EXECU- 15 TIVE ORDER 13662. 16 (a) DETERMINATION THAT CERTAIN ENTITIES ARE 17 SUBJECT TO SANCTIONS.—The Secretary of the Treasury 18 may determine that a person meets one or more of the 19 criteria in section 1(a) of Executive Order 13662 if that 20 person is a state-owned entity operating in the railway or 21 metals and mining sector of the economy of the Russian 22 Federation. 23 (b) MODIFICATION OF DIRECTIVE 1 WITH RESPECT 24 TO THE FINANCIAL SERVICES SECTOR OF THE RUSSIAN 25 FEDERATION ECONOMY.—Not later than 60 days after VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00056 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 57 •HR 3364 IH 1 the date of the enactment of this Act, the Secretary of 2 the Treasury shall modify Directive 1 (as amended), dated 3 September 12, 2014, issued by the Office of Foreign As- 4 sets Control under Executive Order 13662, or any suc- 5 cessor directive (which shall be effective beginning on the 6 date that is 60 days after the date of such modification), 7 to ensure that the directive prohibits the conduct by 8 United States persons or persons within the United States 9 of all transactions in, provision of financing for, and other 10 dealings in new debt of longer than 14 days maturity or 11 new equity of persons determined to be subject to the di- 12 rective, their property, or their interests in property. 13 (c) MODIFICATION OF DIRECTIVE 2 WITH RESPECT 14 TO THE ENERGY SECTOR OF THE RUSSIAN FEDERATION 15 ECONOMY.—Not later than 60 days after the date of the 16 enactment of this Act, the Secretary of the Treasury shall 17 modify Directive 2 (as amended), dated September 12, 18 2014, issued by the Office of Foreign Assets Control 19 under Executive Order 13662, or any successor directive 20 (which shall be effective beginning on the date that is 60 21 days after the date of such modification), to ensure that 22 the directive prohibits the conduct by United States per- 23 sons or persons within the United States of all trans- 24 actions in, provision of financing for, and other dealings 25 in new debt of longer than 60 days maturity of persons VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00057 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 58 •HR 3364 IH 1 determined to be subject to the directive, their property, 2 or their interests in property. 3 (d) MODIFICATION OF DIRECTIVE 4.—Not later than 4 90 days after the date of the enactment of this Act, the 5 Secretary of the Treasury shall modify Directive 4, dated 6 September 12, 2014, issued by the Office of Foreign As- 7 sets Control under Executive Order 13662, or any suc- 8 cessor directive (which shall be effective beginning on the 9 date that is 90 days after the date of such modification), 10 to ensure that the directive prohibits the provision, expor- 11 tation, or reexportation, directly or indirectly, by United 12 States persons or persons within the United States, of 13 goods, services (except for financial services), or tech- 14 nology in support of exploration or production for new 15 deepwater, Arctic offshore, or shale projects— 16 (1) that have the potential to produce oil; and 17 (2) that involve any person determined to be 18 subject to the directive or the property or interests 19 in property of such a person who has a controlling 20 interest or a substantial non-controlling ownership 21 interest in such a project defined as not less than a 22 33 percent interest. VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00058 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 59 •HR 3364 IH 1 SEC. 224. IMPOSITION OF SANCTIONS WITH RESPECT TO 2 ACTIVITIES OF THE RUSSIAN FEDERATION 3 UNDERMINING CYBERSECURITY. 4 (a) IN GENERAL.—On and after the date that is 60 5 days after the date of the enactment of this Act, the Presi- 6 dent shall— 7 (1) impose the sanctions described in subsection 8 (b) with respect to any person that the President de- 9 termines— 10 (A) knowingly engages in significant activi- 11 ties undermining cybersecurity against any per- 12 son, including a democratic institution, or gov- 13 ernment on behalf of the Government of the 14 Russian Federation; or 15 (B) is owned or controlled by, or acts or 16 purports to act for or on behalf of, directly or 17 indirectly, a person described in subparagraph 18 (A); 19 (2) impose 5 or more of the sanctions described 20 in section 235 with respect to any person that the 21 President determines knowingly materially assists, 22 sponsors, or provides financial, material, or techno- 23 logical support for, or goods or services (except fi- 24 nancial services) in support of, an activity described 25 in paragraph (1)(A); and VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00059 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 60 •HR 3364 IH 1 (3) impose 3 or more of the sanctions described 2 in section 4(c) of the of the Ukraine Freedom Sup- 3 port Act of 2014 (22 U.S.C. 8923(c)) with respect 4 to any person that the President determines know- 5 ingly provides financial services in support of an ac- 6 tivity described in paragraph (1)(A). 7 (b) SANCTIONS DESCRIBED.—The sanctions de- 8 scribed in this subsection are the following: 9 (1) ASSET BLOCKING.—The exercise of all pow- 10 ers granted to the President by the International 11 Emergency Economic Powers Act (50 U.S.C. 1701 12 et seq.) to the extent necessary to block and prohibit 13 all transactions in all property and interests in prop- 14 erty of a person determined by the President to be 15 subject to subsection (a)(1) if such property and in- 16 terests in property are in the United States, come 17 within the United States, or are or come within the 18 possession or control of a United States person. 19 (2) EXCLUSION FROM THE UNITED STATES 20 AND REVOCATION OF VISA OR OTHER DOCUMENTA- 21 TION.—In the case of an alien determined by the 22 President to be subject to subsection (a)(1), denial 23 of a visa to, and exclusion from the United States 24 of, the alien, and revocation in accordance with sec- 25 tion 221(i) of the Immigration and Nationality Act VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00060 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 61 •HR 3364 IH 1 (8 U.S.C. 1201(i)), of any visa or other documenta- 2 tion of the alien. 3 (c) APPLICATION OF NEW CYBER SANCTIONS.—The 4 President may waive the initial application under sub- 5 section (a) of sanctions with respect to a person only if 6 the President submits to the appropriate congressional 7 committees— 8 (1) a written determination that the waiver— 9 (A) is in the vital national security inter- 10 ests of the United States; or 11 (B) will further the enforcement of this 12 title; and 13 (2) a certification that the Government of the 14 Russian Federation has made significant efforts to 15 reduce the number and intensity of cyber intrusions 16 conducted by that Government. 17 (d) SIGNIFICANT ACTIVITIES UNDERMINING CYBER- 18 SECURITY DEFINED.—In this section, the term ‘‘signifi- 19 cant activities undermining cybersecurity’’ includes— 20 (1) significant efforts— 21 (A) to deny access to or degrade, disrupt, 22 or destroy an information and communications 23 technology system or network; or 24 (B) to exfiltrate, degrade, corrupt, destroy, 25 or release information from such a system or VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00061 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 62 •HR 3364 IH 1 network without authorization for purposes 2 of— 3 (i) conducting influence operations; or 4 (ii) causing a significant misappro- 5 priation of funds, economic resources, 6 trade secrets, personal identifications, or 7 financial information for commercial or 8 competitive advantage or private financial 9 gain; 10 (2) significant destructive malware attacks; and 11 (3) significant denial of service activities. 12 SEC. 225. IMPOSITION OF SANCTIONS RELATING TO SPE- 13 CIAL RUSSIAN CRUDE OIL PROJECTS. 14 Section 4(b)(1) of the Ukraine Freedom Support Act 15 of 2014 (22 U.S.C. 8923(b)(1)) is amended by striking 16 ‘‘on and after the date that is 45 days after the date of 17 the enactment of this Act, the President may impose’’ and 18 inserting ‘‘on and after the date that is 30 days after the 19 date of the enactment of the Countering Russian Influence 20 in Europe and Eurasia Act of 2017, the President shall 21 impose, unless the President determines that it is not in 22 the national interest of the United States to do so,’’. VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00062 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 63 •HR 3364 IH 1 SEC. 226. IMPOSITION OF SANCTIONS WITH RESPECT TO 2 RUSSIAN AND OTHER FOREIGN FINANCIAL 3 INSTITUTIONS. 4 Section 5 of the Ukraine Freedom Support Act of 5 2014 (22 U.S.C. 8924) is amended— 6 (1) in subsection (a)— 7 (A) by striking ‘‘may impose’’ and insert- 8 ing ‘‘shall impose, unless the President deter- 9 mines that it is not in the national interest of 10 the United States to do so,’’; and 11 (B) by striking ‘‘on or after the date of the 12 enactment of this Act’’ and inserting ‘‘on or 13 after the date of the enactment of the Coun- 14 tering Russian Influence in Europe and Eurasia 15 Act of 2017’’; and 16 (2) in subsection (b)— 17 (A) by striking ‘‘may impose’’ and insert- 18 ing ‘‘shall impose, unless the President deter- 19 mines that it is not in the national interest of 20 the United States to do so,’’; and 21 (B) by striking ‘‘on or after the date that 22 is 180 days after the date of the enactment of 23 this Act’’ and inserting ‘‘on or after the date 24 that is 30 days after the date of the enactment 25 of the Countering Russian Influence in Europe 26 and Eurasia Act of 2017’’. VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00063 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 64 •HR 3364 IH 1 SEC. 227. MANDATORY IMPOSITION OF SANCTIONS WITH 2 RESPECT TO SIGNIFICANT CORRUPTION IN 3 THE RUSSIAN FEDERATION. 4 Section 9 of the Sovereignty, Integrity, Democracy, 5 and Economic Stability of Ukraine Act of 2014 (22 U.S.C. 6 8908(a)) is amended— 7 (1) in subsection (a)— 8 (A) in the matter preceding paragraph (1), 9 by striking ‘‘is authorized and encouraged to’’ 10 and inserting ‘‘shall’’; and 11 (B) in paragraph (1)— 12 (i) by striking ‘‘President determines 13 is’’ and inserting ‘‘President determines is, 14 on or after the date of the enactment of 15 the Countering Russian Influence in Eu- 16 rope and Eurasia Act of 2017,’’; and 17 (ii) by inserting ‘‘or elsewhere’’ after 18 ‘‘in the Russian Federation’’; 19 (2) by redesignating subsection (d) as sub- 20 section (e); 21 (3) in subsection (c), by striking ‘‘The Presi- 22 dent’’ and inserting ‘‘except as provided in sub- 23 section (d), the President’’; and 24 (4) by inserting after subsection (c) the fol- 25 lowing: VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00064 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 65 •HR 3364 IH 1 ‘‘(d) APPLICATION OF NEW SANCTIONS.—The Presi- 2 dent may waive the initial application of sanctions under 3 subsection (b) with respect to a person only if the Presi- 4 dent submits to the appropriate congressional commit- 5 tees— 6 ‘‘(1) a written determination that the waiver— 7 ‘‘(A) is in the vital national security inter- 8 ests of the United States; or 9 ‘‘(B) will further the enforcement of this 10 Act; and 11 ‘‘(2) a certification that the Government of the 12 Russian Federation is taking steps to implement the 13 Minsk Agreement to address the ongoing conflict in 14 eastern Ukraine, signed in Minsk, Belarus, on Feb- 15 ruary 11, 2015, by the leaders of Ukraine, Russia, 16 France, and Germany, the Minsk Protocol, which 17 was agreed to on September 5, 2014, and any suc- 18 cessor agreements that are agreed to by the Govern- 19 ment of Ukraine.’’. VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00065 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 66 •HR 3364 IH 1 SEC. 228. MANDATORY IMPOSITION OF SANCTIONS WITH 2 RESPECT TO CERTAIN TRANSACTIONS WITH 3 FOREIGN SANCTIONS EVADERS AND SERIOUS 4 HUMAN RIGHTS ABUSERS IN THE RUSSIAN 5 FEDERATION. 6 (a) IN GENERAL.—The Support for the Sovereignty, 7 Integrity, Democracy, and Economic Stability of Ukraine 8 Act of 2014 (22 U.S.C. 8901 et seq.) is amended by add- 9 ing at the end the following: 10 ‘‘SEC. 10. MANDATORY IMPOSITION OF SANCTIONS WITH 11 RESPECT TO CERTAIN TRANSACTIONS WITH 12 PERSONS THAT EVADE SANCTIONS IMPOSED 13 WITH RESPECT TO THE RUSSIAN FEDERA- 14 TION. 15 ‘‘(a) IN GENERAL.—The President shall impose the 16 sanctions described in subsection (b) with respect to a for- 17 eign person if the President determines that the foreign 18 person knowingly, on or after the date of the enactment 19 of the Countering Russian Influence in Europe and Eur- 20 asia Act of 2017— 21 ‘‘(1) materially violates, attempts to violate, 22 conspires to violate, or causes a violation of any li- 23 cense, order, regulation, or prohibition contained in 24 or issued pursuant to any covered Executive order, 25 this Act, or the Ukraine Freedom Support Act of 26 2014 (22 U.S.C. 8921 et seq.); or VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00066 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 67 •HR 3364 IH 1 ‘‘(2) facilitates a significant transaction or 2 transactions, including deceptive or structured trans- 3 actions, for or on behalf of— 4 ‘‘(A) any person subject to sanctions im- 5 posed by the United States with respect to the 6 Russian Federation; or 7 ‘‘(B) any child, spouse, parent, or sibling 8 of an individual described in subparagraph (A). 9 ‘‘(b) SANCTIONS DESCRIBED.—The sanctions de- 10 scribed in this subsection are the exercise of all powers 11 granted to the President by the International Emergency 12 Economic Powers Act (50 U.S.C. 1701 et seq.) to the ex- 13 tent necessary to block and prohibit all transactions in all 14 property and interests in property of a person determined 15 by the President to be subject to subsection (a) if such 16 property and interests in property are in the United 17 States, come within the United States, or are or come 18 within the possession or control of a United States person. 19 ‘‘(c) IMPLEMENTATION; PENALTIES.— 20 ‘‘(1) IMPLEMENTATION.—The President may 21 exercise all authorities provided to the President 22 under sections 203 and 205 of the International 23 Emergency Economic Powers Act (50 U.S.C. 1702 24 and 1704) to carry out subsection (b). VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00067 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 68 •HR 3364 IH 1 ‘‘(2) PENALTIES.—A person that violates, at- 2 tempts to violate, conspires to violate, or causes a 3 violation of subsection (b) or any regulation, license, 4 or order issued to carry out subsection (b) shall be 5 subject to the penalties set forth in subsections (b) 6 and (c) of section 206 of the International Emer- 7 gency Economic Powers Act (50 U.S.C. 1705) to the 8 same extent as a person that commits an unlawful 9 act described in subsection (a) of that section. 10 ‘‘(d) APPLICATION OF NEW SANCTIONS.—The Presi- 11 dent may waive the initial application of sanctions under 12 subsection (b) with respect to a person only if the Presi- 13 dent submits to the appropriate congressional commit- 14 tees— 15 ‘‘(1) a written determination that the waiver— 16 ‘‘(A) is in the vital national security inter- 17 ests of the United States; or 18 ‘‘(B) will further the enforcement of this 19 Act; 20 ‘‘(2) in the case of sanctions imposed under this 21 section in connection with a covered Executive order 22 described in subparagraph (A), (B), (C), or (D) of 23 subsection (f)(1), a certification that the Govern- 24 ment of the Russian Federation is taking steps to 25 implement the Minsk Agreement to address the onVerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00068 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 69 •HR 3364 IH 1 going conflict in eastern Ukraine, signed in Minsk, 2 Belarus, on February 11, 2015, by the leaders of 3 Ukraine, Russia, France, and Germany, the Minsk 4 Protocol, which was agreed to on September 5, 5 2014, and any successor agreements that are agreed 6 to by the Government of Ukraine; and 7 ‘‘(3) in the case of sanctions imposed under this 8 section in connection with a covered Executive order 9 described in subparagraphs (E) or (F) of subsection 10 (f)(1), a certification that the Government of the 11 Russian Federation has made significant efforts to 12 reduce the number and intensity of cyber intrusions 13 conducted by that Government. 14 ‘‘(e) TERMINATION.—Subject to section 216 of the 15 Russia Sanctions Review Act of 2017, the President may 16 terminate the application of sanctions under subsection 17 (b) with respect to a person if the President submits to 18 the appropriate congressional committees— 19 ‘‘(1) a notice of and justification for the termi- 20 nation; and 21 ‘‘(2) a notice that— 22 ‘‘(A) the person is not engaging in the ac- 23 tivity that was the basis for the sanctions or 24 has taken significant verifiable steps toward 25 stopping the activity; and VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00069 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 70 •HR 3364 IH 1 ‘‘(B) the President has received reliable as- 2 surances that the person will not knowingly en- 3 gage in activity subject to sanctions under sub- 4 section (a) in the future. 5 ‘‘(f) DEFINITIONS.—In this section: 6 ‘‘(1) COVERED EXECUTIVE ORDER.—The term 7 ‘covered Executive order’ means any of the fol- 8 lowing: 9 ‘‘(A) Executive Order 13660 (79 Fed. Reg. 10 13493; relating to blocking property of certain 11 persons contributing to the situation in 12 Ukraine). 13 ‘‘(B) Executive Order 13661 (79 Fed. Reg. 14 15535; relating to blocking property of addi- 15 tional persons contributing to the situation in 16 Ukraine). 17 ‘‘(C) Executive Order 13662 (79 Fed. Reg. 18 16169; relating to blocking property of addi- 19 tional persons contributing to the situation in 20 Ukraine). 21 ‘‘(D) Executive Order 13685 (79 Fed. 22 Reg. 77357; relating to blocking property of 23 certain persons and prohibiting certain trans- 24 actions with respect to the Crimea region of 25 Ukraine). VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00070 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 71 •HR 3364 IH 1 ‘‘(E) Executive Order 13694 (80 Fed. Reg. 2 18077; relating to blocking the property of cer- 3 tain persons engaging in significant malicious 4 cyber-enabled activities), relating to the Russian 5 Federation. 6 ‘‘(F) Executive Order 13757 (82 Fed. Reg. 7 1; relating to taking additional steps to address 8 the national emergency with respect to signifi- 9 cant malicious cyber-enabled activities), relating 10 to the Russian Federation. 11 ‘‘(2) FOREIGN PERSON.—The term ‘foreign per- 12 son’ has the meaning given such term in section 13 595.304 of title 31, Code of Federal Regulations (as 14 in effect on the date of the enactment of this sec- 15 tion). 16 ‘‘(3) STRUCTURED.—The term ‘structured’, 17 with respect to a transaction, has the meaning given 18 the term ‘structure’ in paragraph (xx) of section 19 1010.100 of title 31, Code of Federal Regulations 20 (or any corresponding similar regulation or ruling). 21 ‘‘SEC. 11. MANDATORY IMPOSITION OF SANCTIONS WITH 22 RESPECT TO TRANSACTIONS WITH PERSONS 23 RESPONSIBLE FOR HUMAN RIGHTS ABUSES. 24 ‘‘(a) IN GENERAL.—The President shall impose the 25 sanctions described in subsection (b) with respect to a forVerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00071 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 72 •HR 3364 IH 1 eign person if the President determines that the foreign 2 person, based on credible information, on or after the date 3 of the enactment of this section— 4 ‘‘(1) is responsible for, complicit in, or respon- 5 sible for ordering, controlling, or otherwise directing, 6 the commission of serious human rights abuses in 7 any territory forcibly occupied or otherwise con- 8 trolled by the Government of the Russian Federa- 9 tion; 10 ‘‘(2) materially assists, sponsors, or provides fi- 11 nancial, material, or technological support for, or 12 goods or services to, a foreign person described in 13 paragraph (1); or 14 ‘‘(3) is owned or controlled by, or acts or pur- 15 ports to act for or on behalf of, directly or indirectly, 16 a foreign person described in paragraph (1). 17 ‘‘(b) SANCTIONS DESCRIBED.— 18 ‘‘(1) ASSET BLOCKING.—The exercise of all 19 powers granted to the President by the International 20 Emergency Economic Powers Act (50 U.S.C. 1701 21 et seq.) to the extent necessary to block and prohibit 22 all transactions in all property and interests in prop- 23 erty of a person determined by the President to be 24 subject to subsection (a) if such property and inter- 25 ests in property are in the United States, come withVerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00072 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 73 •HR 3364 IH 1 in the United States, or are or come within the pos- 2 session or control of a United States person. 3 ‘‘(2) EXCLUSION FROM THE UNITED STATES 4 AND REVOCATION OF VISA OR OTHER DOCUMENTA- 5 TION.—In the case of an alien determined by the 6 President to be subject to subsection (a), denial of 7 a visa to, and exclusion from the United States of, 8 the alien, and revocation in accordance with section 9 221(i) of the Immigration and Nationality Act (8 10 U.S.C. 1201(i)), of any visa or other documentation 11 of the alien. 12 ‘‘(c) APPLICATION OF NEW SANCTIONS.—The Presi- 13 dent may waive the initial application of sanctions under 14 subsection (b) with respect to a person only if the Presi- 15 dent submits to the appropriate congressional commit- 16 tees— 17 ‘‘(1) a written determination that the waiver— 18 ‘‘(A) is in the vital national security inter- 19 ests of the United States; or 20 ‘‘(B) will further the enforcement of this 21 Act; and 22 ‘‘(2) a certification that the Government of the 23 Russian Federation has made efforts to reduce seri- 24 ous human rights abuses in territory forcibly occu- 25 pied or otherwise controlled by that Government. VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00073 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 74 •HR 3364 IH 1 ‘‘(d) IMPLEMENTATION; PENALTIES.— 2 ‘‘(1) IMPLEMENTATION.—The President may 3 exercise all authorities provided to the President 4 under sections 203 and 205 of the International 5 Emergency Economic Powers Act (50 U.S.C. 1702 6 and 1704) to carry out subsection (b)(1). 7 ‘‘(2) PENALTIES.—A person that violates, at- 8 tempts to violate, conspires to violate, or causes a 9 violation of subsection (b)(1) or any regulation, li- 10 cense, or order issued to carry out subsection (b)(1) 11 shall be subject to the penalties set forth in sub- 12 sections (b) and (c) of section 206 of the Inter- 13 national Emergency Economic Powers Act (50 14 U.S.C. 1705) to the same extent as a person that 15 commits an unlawful act described in subsection (a) 16 of that section. 17 ‘‘(e) TERMINATION.—Subject to section 216 of Rus- 18 sia Sanctions Review Act of 2017, the President may ter- 19 minate the application of sanctions under subsection (b) 20 with respect to a person if the President submits to the 21 appropriate congressional committees— 22 ‘‘(1) a notice of and justification for the termi- 23 nation; and 24 ‘‘(2) a notice— 25 ‘‘(A) that— VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00074 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 75 •HR 3364 IH 1 ‘‘(i) the person is not engaging in the 2 activity that was the basis for the sanc- 3 tions or has taken significant verifiable 4 steps toward stopping the activity; and 5 ‘‘(ii) the President has received reli- 6 able assurances that the person will not 7 knowingly engage in activity subject to 8 sanctions under subsection (a) in the fu- 9 ture; or 10 ‘‘(B) that the President determines that 11 insufficient basis exists for the determination by 12 the President under subsection (a) with respect 13 to the person.’’. 14 (b) DEFINITION OF APPROPRIATE CONGRESSIONAL 15 COMMITTEES.—Section 2(2) of the Support for the Sov- 16 ereignty, Integrity, Democracy, and Economic Stability of 17 Ukraine Act of 2014 (22 U.S.C. 8901(2)) is amended— 18 (1) in subparagraph (A), by inserting ‘‘the 19 Committee on Banking, Housing, and Urban Af- 20 fairs,’’ before ‘‘the Committee on Foreign Rela- 21 tions’’; and 22 (2) in subparagraph (B), by inserting ‘‘the 23 Committee on Financial Services’’ before ‘‘the Com- 24 mittee on Foreign Affairs’’. 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NOTIFICATIONS TO CONGRESS UNDER UKRAINE 2 FREEDOM SUPPORT ACT OF 2014. 3 (a) SANCTIONS RELATING TO DEFENSE AND EN- 4 ERGY SECTORS OF THE RUSSIAN FEDERATION.—Section 5 4 of the Ukraine Freedom Support Act of 2014 (22 6 U.S.C. 8923) is amended— 7 (1) by redesignating subsections (g) and (h) as 8 subsections (h) and (i), respectively; 9 (2) by inserting after subsection (f) the fol- 10 lowing: 11 ‘‘(g) NOTIFICATIONS AND CERTIFICATIONS TO CON- 12 GRESS.— 13 ‘‘(1) IMPOSITION OF SANCTIONS.—The Presi- 14 dent shall notify the appropriate congressional com- 15 mittees in writing not later than 15 days after im- 16 posing sanctions with respect to a foreign person 17 under subsection (a) or (b). 18 ‘‘(2) TERMINATION OF SANCTIONS WITH RE- 19 SPECT TO RUSSIAN PRODUCERS, TRANSFERORS, OR 20 BROKERS OF DEFENSE ARTICLES.—Subject to sec- 21 tion 216 of the Russia Sanctions Review Act of 22 2017, the President may terminate the imposition of 23 sanctions under subsection (a)(2) with respect to a 24 foreign person if the President submits to the appro- 25 priate congressional committees— VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00076 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 77 •HR 3364 IH 1 ‘‘(A) a notice of and justification for the 2 termination; and 3 ‘‘(B) a notice that— 4 ‘‘(i) the foreign person is not engaging 5 in the activity that was the basis for the 6 sanctions or has taken significant verifiable 7 steps toward stopping the activity; and 8 ‘‘(ii) the President has received reli- 9 able assurances that the foreign person will 10 not knowingly engage in activity subject to 11 sanctions under subsection (a)(2) in the 12 future.’’; and 13 (3) in subparagraph (B)(ii) of subsection 14 (a)(3), by striking ‘‘subsection (h)’’ and inserting 15 ‘‘subsection (i)’’. 16 (b) SANCTIONS ON RUSSIAN AND OTHER FOREIGN 17 FINANCIAL INSTITUTIONS.—Section 5 of the Ukraine 18 Freedom Support Act of 2014 (22 U.S.C. 8924) is amend- 19 ed— 20 (1) by redesignating subsections (e) and (f) as 21 subsections (f) and (g), respectively; 22 (2) by inserting after subsection (d) the fol- 23 lowing: 24 ‘‘(e) NOTIFICATION TO CONGRESS ON IMPOSITION OF 25 SANCTIONS.—The President shall notify the appropriate VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00077 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 78 •HR 3364 IH 1 congressional committees in writing not later than 15 days 2 after imposing sanctions with respect to a foreign financial 3 institution under subsection (a) or (b).’’; and 4 (3) in subsection (g), as redesignated by para- 5 graph (1), by striking ‘‘section 4(h)’’ and inserting 6 ‘‘section 4(i)’’. 7 SEC. 230. STANDARDS FOR TERMINATION OF CERTAIN 8 SANCTIONS WITH RESPECT TO THE RUSSIAN 9 FEDERATION. 10 (a) SANCTIONS RELATING TO UNDERMINING THE 11 PEACE, SECURITY, STABILITY, SOVEREIGNTY, OR TERRI- 12 TORIAL INTEGRITY OF UKRAINE.—Section 8 of the Sov- 13 ereignty, Integrity, Democracy, and Economic Stability of 14 Ukraine Act of 2014 (22 U.S.C. 8907) is amended— 15 (1) by redesignating subsection (d) as sub- 16 section (e); and 17 (2) by inserting after subsection (c) the fol- 18 lowing: 19 ‘‘(d) TERMINATION.—Subject to section 216 of the 20 Russia Sanctions Review Act of 2017, the President may 21 terminate the application of sanctions under subsection 22 (b) with respect to a person if the President submits to 23 the appropriate congressional committees a notice that— 24 ‘‘(1) the person is not engaging in the activity 25 that was the basis for the sanctions or has taken VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00078 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 79 •HR 3364 IH 1 significant verifiable steps toward stopping the activ- 2 ity; and 3 ‘‘(2) the President has received reliable assur- 4 ances that the person will not knowingly engage in 5 activity subject to sanctions under subsection (a) in 6 the future.’’. 7 (b) SANCTIONS RELATING TO CORRUPTION.—Sec- 8 tion 9 of the Sovereignty, Integrity, Democracy, and Eco- 9 nomic Stability of Ukraine Act of 2014 (22 U.S.C. 8908) 10 is amended— 11 (1) by redesignating subsection (d) as sub- 12 section (e); and 13 (2) by inserting after subsection (c) the fol- 14 lowing: 15 ‘‘(d) TERMINATION.—Subject to section 216 of the 16 Russia Sanctions Review Act of 2017, the President may 17 terminate the application of sanctions under subsection 18 (b) with respect to a person if the President submits to 19 the appropriate congressional committees a notice that— 20 ‘‘(1) the person is not engaging in the activity 21 that was the basis for the sanctions or has taken 22 significant verifiable steps toward stopping the activ- 23 ity; and 24 ‘‘(2) the President has received reliable assur- 25 ances that the person will not knowingly engage in VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00079 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 80 •HR 3364 IH 1 activity subject to sanctions under subsection (a) in 2 the future.’’. 3 SEC. 231. IMPOSITION OF SANCTIONS WITH RESPECT TO 4 PERSONS ENGAGING IN TRANSACTIONS WITH 5 THE INTELLIGENCE OR DEFENSE SECTORS 6 OF THE GOVERNMENT OF THE RUSSIAN FED- 7 ERATION. 8 (a) IN GENERAL.—On and after the date that is 180 9 days after the date of the enactment of this Act, the Presi- 10 dent shall impose 5 or more of the sanctions described 11 in section 235 with respect to a person the President de- 12 termines knowingly, on or after such date of enactment, 13 engages in a significant transaction with a person that is 14 part of, or operates for or on behalf of, the defense or 15 intelligence sectors of the Government of the Russian Fed- 16 eration, including the Main Intelligence Agency of the 17 General Staff of the Armed Forces of the Russian Federa- 18 tion or the Federal Security Service of the Russian Fed- 19 eration. 20 (b) APPLICATION OF NEW SANCTIONS.—The Presi- 21 dent may waive the initial application of sanctions under 22 subsection (a) with respect to a person only if the Presi- 23 dent submits to the appropriate congressional commit- 24 tees— 25 (1) a written determination that the waiver— VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00080 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 81 •HR 3364 IH 1 (A) is in the vital national security inter- 2 ests of the United States; or 3 (B) will further the enforcement of this 4 title; and 5 (2) a certification that the Government of the 6 Russian Federation has made significant efforts to 7 reduce the number and intensity of cyber intrusions 8 conducted by that Government. 9 (c) DELAY OF IMPOSITION OF SANCTIONS.—The 10 President may delay the imposition of sanctions under 11 subsection (a) with respect to a person if the President 12 certifies to the appropriate congressional committees, not 13 less frequently than every 180 days while the delay is in 14 effect, that the person is substantially reducing the num- 15 ber of significant transactions described in subsection (a) 16 in which that person engages. 17 (d) REQUIREMENT TO ISSUE GUIDANCE.—Not later 18 than 60 days after the date of the enactment of this Act, 19 the President shall issue regulations or other guidance to 20 specify the persons that are part of, or operate for or on 21 behalf of, the defense and intelligence sectors of the Gov- 22 ernment of the Russian Federation. 23 (e) PENALTIES.—A person that violates, attempts to 24 violate, conspires to violate, or causes a violation of sub- 25 section (a) or any regulation, license, or order issued to VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00081 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 82 •HR 3364 IH 1 carry out subsection (a) shall be subject to the penalties 2 set forth in subsections (b) and (c) of section 206 of the 3 International Emergency Economic Powers Act (50 4 U.S.C. 1705) to the same extent as a person that commits 5 an unlawful act described in subsection (a) of that section. 6 SEC. 232. SANCTIONS WITH RESPECT TO THE DEVELOP- 7 MENT OF PIPELINES IN THE RUSSIAN FED- 8 ERATION. 9 (a) IN GENERAL.—The President, in coordination 10 with allies of the United States, may impose 5 or more 11 of the sanctions described in section 235 with respect to 12 a person if the President determines that the person know- 13 ingly, on or after the date of the enactment of this Act, 14 makes an investment described in subsection (b) or sells, 15 leases, or provides to the Russian Federation, for the con- 16 struction of Russian energy export pipelines, goods, serv- 17 ices, technology, information, or support described in sub- 18 section (c)— 19 (1) any of which has a fair market value of 20 $1,000,000 or more; or 21 (2) that, during a 12-month period, have an ag- 22 gregate fair market value of $5,000,000 or more. 23 (b) INVESTMENT DESCRIBED.—An investment de- 24 scribed in this subsection is an investment that directly 25 and significantly contributes to the enhancement of the VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00082 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 83 •HR 3364 IH 1 ability of the Russian Federation to construct energy ex- 2 port pipelines. 3 (c) GOODS, SERVICES, TECHNOLOGY, INFORMATION, 4 OR SUPPORT DESCRIBED.—Goods, services, technology, 5 information, or support described in this subsection are 6 goods, services, technology, information, or support that 7 could directly and significantly facilitate the maintenance 8 or expansion of the construction, modernization, or repair 9 of energy export pipelines by the Russian Federation. 10 SEC. 233. SANCTIONS WITH RESPECT TO INVESTMENT IN 11 OR FACILITATION OF PRIVATIZATION OF 12 STATE-OWNED ASSETS BY THE RUSSIAN FED- 13 ERATION. 14 (a) IN GENERAL.—The President shall impose 5 or 15 more of the sanctions described in section 235 if the Presi- 16 dent determines that a person, with actual knowledge, on 17 or after the date of the enactment of this Act, makes an 18 investment of $10,000,000 or more (or any combination 19 of investments of not less than $1,000,000 each, which 20 in the aggregate equals or exceeds $10,000,000 in any 12- 21 month period), or facilitates such an investment, if the in- 22 vestment directly and significantly contributes to the abil- 23 ity of the Russian Federation to privatize state-owned as- 24 sets in a manner that unjustly benefits— VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00083 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 84 •HR 3364 IH 1 (1) officials of the Government of the Russian 2 Federation; or 3 (2) close associates or family members of those 4 officials. 5 (b) APPLICATION OF NEW SANCTIONS.—The Presi- 6 dent may waive the initial application of sanctions under 7 subsection (a) with respect to a person only if the Presi- 8 dent submits to the appropriate congressional commit- 9 tees— 10 (1) a written determination that the waiver— 11 (A) is in the vital national security inter- 12 ests of the United States; or 13 (B) will further the enforcement of this 14 title; and 15 (2) a certification that the Government of the 16 Russian Federation is taking steps to implement the 17 Minsk Agreement to address the ongoing conflict in 18 eastern Ukraine, signed in Minsk, Belarus, on Feb- 19 ruary 11, 2015, by the leaders of Ukraine, Russia, 20 France, and Germany, the Minsk Protocol, which 21 was agreed to on September 5, 2014, and any suc- 22 cessor agreements that are agreed to by the Govern- 23 ment of Ukraine. VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00084 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 85 •HR 3364 IH 1 SEC. 234. SANCTIONS WITH RESPECT TO THE TRANSFER OF 2 ARMS AND RELATED MATERIEL TO SYRIA. 3 (a) IMPOSITION OF SANCTIONS.— 4 (1) IN GENERAL.—The President shall impose 5 on a foreign person the sanctions described in sub- 6 section (b) if the President determines that such for- 7 eign person has, on or after the date of the enact- 8 ment of this Act, knowingly exported, transferred, or 9 otherwise provided to Syria significant financial, ma- 10 terial, or technological support that contributes ma- 11 terially to the ability of the Government of Syria 12 to— 13 (A) acquire or develop chemical, biological, 14 or nuclear weapons or related technologies; 15 (B) acquire or develop ballistic or cruise 16 missile capabilities; 17 (C) acquire or develop destabilizing num- 18 bers and types of advanced conventional weap- 19 ons; 20 (D) acquire significant defense articles, de- 21 fense services, or defense information (as such 22 terms are defined under the Arms Export Con- 23 trol Act (22 U.S.C. 2751 et seq.)); or 24 (E) acquire items designated by the Presi- 25 dent for purposes of the United States MuniVerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00085 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 86 •HR 3364 IH 1 tions List under section 38(a)(1) of the Arms 2 Export Control Act (22 U.S.C. 2778(a)(1)). 3 (2) APPLICABILITY TO OTHER FOREIGN PER- 4 SONS.—The sanctions described in subsection (b) 5 shall also be imposed on any foreign person that— 6 (A) is a successor entity to a foreign per- 7 son described in paragraph (1); or 8 (B) is owned or controlled by, or has acted 9 for or on behalf of, a foreign person described 10 in paragraph (1). 11 (b) SANCTIONS DESCRIBED.—The sanctions to be 12 imposed on a foreign person described in subsection (a) 13 are the following: 14 (1) BLOCKING OF PROPERTY.—The President 15 shall exercise all powers granted by the International 16 Emergency Economic Powers Act (50 U.S.C. 1701 17 et seq.) (except that the requirements of section 202 18 of such Act (50 U.S.C. 1701) shall not apply) to the 19 extent necessary to block and prohibit all trans- 20 actions in all property and interests in property of 21 the foreign person if such property and interests in 22 property are in the United States, come within the 23 United States, or are or come within the possession 24 or control of a United States person. VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00086 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 87 •HR 3364 IH 1 (2) ALIENS INELIGIBLE FOR VISAS, ADMISSION, 2 OR PAROLE.— 3 (A) EXCLUSION FROM THE UNITED 4 STATES.—If the foreign person is an individual, 5 the Secretary of State shall deny a visa to, and 6 the Secretary of Homeland Security shall ex- 7 clude from the United States, the foreign per- 8 son. 9 (B) CURRENT VISAS REVOKED.— 10 (i) IN GENERAL.—The issuing con- 11 sular officer, the Secretary of State, or the 12 Secretary of Homeland Security (or a des- 13 ignee of one of such Secretaries) shall re- 14 voke any visa or other entry documentation 15 issued to the foreign person regardless of 16 when issued. 17 (ii) EFFECT OF REVOCATION.—A rev- 18 ocation under clause (i) shall take effect 19 immediately and shall automatically cancel 20 any other valid visa or entry documenta- 21 tion that is in the possession of the foreign 22 person. 23 (c) WAIVER.—Subject to section 216, the President 24 may waive the application of sanctions under subsection 25 (b) with respect to a person if the President determines VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00087 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 88 •HR 3364 IH 1 that such a waiver is in the national security interest of 2 the United States. 3 (d) DEFINITIONS.—In this section: 4 (1) FINANCIAL, MATERIAL, OR TECHNOLOGICAL 5 SUPPORT.—The term ‘‘financial, material, or techno- 6 logical support’’ has the meaning given such term in 7 section 542.304 of title 31, Code of Federal Regula- 8 tions (or any corresponding similar regulation or rul- 9 ing). 10 (2) FOREIGN PERSON.—The term ‘‘foreign per- 11 son’’ has the meaning given such term in section 12 594.304 of title 31, Code of Federal Regulations (or 13 any corresponding similar regulation or ruling). 14 (3) SYRIA.—The term ‘‘Syria’’ has the meaning 15 given such term in section 542.316 of title 31, Code 16 of Federal Regulations (or any corresponding similar 17 regulation or ruling). 18 SEC. 235. SANCTIONS DESCRIBED. 19 (a) SANCTIONS DESCRIBED.—The sanctions to be 20 imposed with respect to a person under section 224(a)(2), 21 231(b), 232(a), or 233(a) are the following: 22 (1) EXPORT-IMPORT BANK ASSISTANCE FOR 23 EXPORTS TO SANCTIONED PERSONS.—The President 24 may direct the Export-Import Bank of the United 25 States not to give approval to the issuance of any VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00088 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 89 •HR 3364 IH 1 guarantee, insurance, extension of credit, or partici- 2 pation in the extension of credit in connection with 3 the export of any goods or services to the sanctioned 4 person. 5 (2) EXPORT SANCTION.—The President may 6 order the United States Government not to issue 7 any specific license and not to grant any other spe- 8 cific permission or authority to export any goods or 9 technology to the sanctioned person under— 10 (A) the Export Administration Act of 1979 11 (50 U.S.C. 4601 et seq.) (as continued in effect 12 pursuant to the International Emergency Eco- 13 nomic Powers Act (50 U.S.C. 1701 et seq.)); 14 (B) the Arms Export Control Act (22 15 U.S.C. 2751 et seq.); 16 (C) the Atomic Energy Act of 1954 (42 17 U.S.C. 2011 et seq.); or 18 (D) any other statute that requires the 19 prior review and approval of the United States 20 Government as a condition for the export or re- 21 export of goods or services. 22 (3) LOANS FROM UNITED STATES FINANCIAL 23 INSTITUTIONS.—The President may prohibit any 24 United States financial institution from making 25 loans or providing credits to the sanctioned person VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00089 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 90 •HR 3364 IH 1 totaling more than $10,000,000 in any 12-month 2 period unless the person is engaged in activities to 3 relieve human suffering and the loans or credits are 4 provided for such activities. 5 (4) LOANS FROM INTERNATIONAL FINANCIAL 6 INSTITUTIONS.—The President may direct the 7 United States executive director to each inter- 8 national financial institution to use the voice and 9 vote of the United States to oppose any loan from 10 the international financial institution that would 11 benefit the sanctioned person. 12 (5) PROHIBITIONS ON FINANCIAL INSTITU- 13 TIONS.—The following prohibitions may be imposed 14 against the sanctioned person if that person is a fi- 15 nancial institution: 16 (A) PROHIBITION ON DESIGNATION AS 17 PRIMARY DEALER.—Neither the Board of Gov- 18 ernors of the Federal Reserve System nor the 19 Federal Reserve Bank of New York may des- 20 ignate, or permit the continuation of any prior 21 designation of, the financial institution as a pri- 22 mary dealer in United States Government debt 23 instruments. 24 (B) PROHIBITION ON SERVICE AS A RE- 25 POSITORY OF GOVERNMENT FUNDS.—The fiVerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00090 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 91 •HR 3364 IH 1 nancial institution may not serve as agent of 2 the United States Government or serve as re- 3 pository for United States Government funds. 4 The imposition of either sanction under subpara- 5 graph (A) or (B) shall be treated as 1 sanction for 6 purposes of subsection (b), and the imposition of 7 both such sanctions shall be treated as 2 sanctions 8 for purposes of subsection (b). 9 (6) PROCUREMENT SANCTION.—The United 10 States Government may not procure, or enter into 11 any contract for the procurement of, any goods or 12 services from the sanctioned person. 13 (7) FOREIGN EXCHANGE.—The President may, 14 pursuant to such regulations as the President may 15 prescribe, prohibit any transactions in foreign ex- 16 change that are subject to the jurisdiction of the 17 United States and in which the sanctioned person 18 has any interest. 19 (8) BANKING TRANSACTIONS.—The President 20 may, pursuant to such regulations as the President 21 may prescribe, prohibit any transfers of credit or 22 payments between financial institutions or by, 23 through, or to any financial institution, to the extent 24 that such transfers or payments are subject to the VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00091 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 92 •HR 3364 IH 1 jurisdiction of the United States and involve any in- 2 terest of the sanctioned person. 3 (9) PROPERTY TRANSACTIONS.—The President 4 may, pursuant to such regulations as the President 5 may prescribe, prohibit any person from— 6 (A) acquiring, holding, withholding, using, 7 transferring, withdrawing, transporting, import- 8 ing, or exporting any property that is subject to 9 the jurisdiction of the United States and with 10 respect to which the sanctioned person has any 11 interest; 12 (B) dealing in or exercising any right, 13 power, or privilege with respect to such prop- 14 erty; or 15 (C) conducting any transaction involving 16 such property. 17 (10) BAN ON INVESTMENT IN EQUITY OR DEBT 18 OF SANCTIONED PERSON.—The President may, pur- 19 suant to such regulations or guidelines as the Presi- 20 dent may prescribe, prohibit any United States per- 21 son from investing in or purchasing significant 22 amounts of equity or debt instruments of the sanc- 23 tioned person. 24 (11) EXCLUSION OF CORPORATE OFFICERS.— 25 The President may direct the Secretary of State to VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00092 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 93 •HR 3364 IH 1 deny a visa to, and the Secretary of Homeland Secu- 2 rity to exclude from the United States, any alien 3 that the President determines is a corporate officer 4 or principal of, or a shareholder with a controlling 5 interest in, the sanctioned person. 6 (12) SANCTIONS ON PRINCIPAL EXECUTIVE OF- 7 FICERS.—The President may impose on the prin- 8 cipal executive officer or officers of the sanctioned 9 person, or on persons performing similar functions 10 and with similar authorities as such officer or offi- 11 cers, any of the sanctions under this subsection. 12 (b) SANCTIONED PERSON DEFINED.—In this section, 13 the term ‘‘sanctioned person’’ means a person subject to 14 sanctions under section 224(a)(2), 231(b), 232(a), or 15 233(a). 16 SEC. 236. EXCEPTIONS, WAIVER, AND TERMINATION. 17 (a) EXCEPTIONS.—The provisions of this part and 18 amendments made by this part shall not apply with re- 19 spect to the following: 20 (1) Activities subject to the reporting require- 21 ments under title V of the National Security Act of 22 1947 (50 U.S.C. 3091 et seq.), or any authorized in- 23 telligence activities of the United States. 24 (2) The admission of an alien to the United 25 States if such admission is necessary to comply with VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00093 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 94 •HR 3364 IH 1 United States obligations under the Agreement be- 2 tween the United Nations and the United States of 3 America regarding the Headquarters of the United 4 Nations, signed at Lake Success June 26, 1947, and 5 entered into force November 21, 1947, under the 6 Convention on Consular Relations, done at Vienna 7 April 24, 1963, and entered into force March 19, 8 1967, or under other international agreements. 9 (b) WAIVER OF SANCTIONS THAT ARE IMPOSED.— 10 Subject to section 216, if the President imposes sanctions 11 with respect to a person under this part or the amend- 12 ments made by this part, the President may waive the ap- 13 plication of those sanctions if the President determines 14 that such a waiver is in the national security interest of 15 the United States. 16 (c) TERMINATION.—Subject to section 216, the 17 President may terminate the application of sanctions 18 under section 224, 231, 232, 233, or 234 with respect to 19 a person if the President submits to the appropriate con- 20 gressional committees— 21 (1) a notice of and justification for the termi- 22 nation; and 23 (2) a notice that— 24 (A) the person is not engaging in the activ- 25 ity that was the basis for the sanctions or has VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00094 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 95 •HR 3364 IH 1 taken significant verifiable steps toward stop- 2 ping the activity; and 3 (B) the President has received reliable as- 4 surances that the person will not knowingly en- 5 gage in activity subject to sanctions under this 6 part in the future. 7 SEC. 237. EXCEPTION RELATING TO ACTIVITIES OF THE NA- 8 TIONAL AERONAUTICS AND SPACE ADMINIS- 9 TRATION. 10 (a) IN GENERAL.—This Act and the amendments 11 made by this Act shall not apply with respect to activities 12 of the National Aeronautics and Space Administration. 13 (b) RULE OF CONSTRUCTION.—Nothing in this Act 14 or the amendments made by this Act shall be construed 15 to authorize the imposition of any sanction or other condi- 16 tion, limitation, restriction, or prohibition, that directly or 17 indirectly impedes the supply by any entity of the Russian 18 Federation of any product or service, or the procurement 19 of such product or service by any contractor or subcon- 20 tractor of the United States or any other entity, relating 21 to or in connection with any space launch conducted for— 22 (1) the National Aeronautics and Space Admin- 23 istration; or 24 (2) any other non-Department of Defense cus- 25 tomer. VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00095 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 96 •HR 3364 IH 1 SEC. 238. RULE OF CONSTRUCTION. 2 Nothing in this part or the amendments made by this 3 part shall be construed— 4 (1) to supersede the limitations or exceptions on 5 the use of rocket engines for national security pur- 6 poses under section 1608 of the Carl Levin and 7 Howard P. ‘‘Buck’’ McKeon National Defense Au- 8 thorization Act for Fiscal Year 2015 (Public Law 9 113–291; 128 Stat. 3626; 10 U.S.C. 2271 note), as 10 amended by section 1607 of the National Defense 11 Authorization Act for Fiscal Year 2016 (Public Law 12 114–92; 129 Stat. 1100) and section 1602 of the 13 National Defense Authorization Act for Fiscal Year 14 2017 (Public Law 114–328; 130 Stat. 2582); or 15 (2) to prohibit a contractor or subcontractor of 16 the Department of Defense from acquiring compo- 17 nents referred to in such section 1608. 18 PART 3—REPORTS 19 SEC. 241. REPORT ON OLIGARCHS AND PARASTATAL ENTI- 20 TIES OF THE RUSSIAN FEDERATION. 21 (a) IN GENERAL.—Not later than 180 days after the 22 date of the enactment of this Act, the Secretary of the 23 Treasury, in consultation with the Director of National In- 24 telligence and the Secretary of State, shall submit to the 25 appropriate congressional committees a detailed report on 26 the following: VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00096 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 97 •HR 3364 IH 1 (1) Senior foreign political figures and oligarchs 2 in the Russian Federation, including the following: 3 (A) An identification of the most signifi- 4 cant senior foreign political figures and 5 oligarchs in the Russian Federation, as deter- 6 mined by their closeness to the Russian regime 7 and their net worth. 8 (B) An assessment of the relationship be- 9 tween individuals identified under subparagraph 10 (A) and President Vladimir Putin or other 11 members of the Russian ruling elite. 12 (C) An identification of any indices of cor- 13 ruption with respect to those individuals. 14 (D) The estimated net worth and known 15 sources of income of those individuals and their 16 family members (including spouses, children, 17 parents, and siblings), including assets, invest- 18 ments, other business interests, and relevant 19 beneficial ownership information. 20 (E) An identification of the non-Russian 21 business affiliations of those individuals. 22 (2) Russian parastatal entities, including an as- 23 sessment of the following: VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00097 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 98 •HR 3364 IH 1 (A) The emergence of Russian parastatal 2 entities and their role in the economy of the 3 Russian Federation. 4 (B) The leadership structures and bene- 5 ficial ownership of those entities. 6 (C) The scope of the non-Russian business 7 affiliations of those entities. 8 (3) The exposure of key economic sectors of the 9 United States to Russian politically exposed persons 10 and parastatal entities, including, at a minimum, the 11 banking, securities, insurance, and real estate sec- 12 tors. 13 (4) The likely effects of imposing debt and eq- 14 uity restrictions on Russian parastatal entities, as 15 well as the anticipated effects of adding Russian 16 parastatal entities to the list of specially designated 17 nationals and blocked persons maintained by the Of- 18 fice of Foreign Assets Control of the Department of 19 the Treasury. 20 (5) The potential impacts of imposing sec- 21 ondary sanctions with respect to Russian oligarchs, 22 Russian state-owned enterprises, and Russian 23 parastatal entities, including impacts on the entities 24 themselves and on the economy of the Russian FedVerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00098 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 99 •HR 3364 IH 1 eration, as well as on the economies of the United 2 States and allies of the United States. 3 (b) FORM OF REPORT.—The report required under 4 subsection (a) shall be submitted in an unclassified form, 5 but may contain a classified annex. 6 (c) DEFINITIONS.—In this section: 7 (1) APPROPRIATE CONGRESSIONAL COMMIT- 8 TEES.—The term ‘‘appropriate congressional com- 9 mittees’’ means— 10 (A) the Committee on Banking, Housing, 11 and Urban Affairs, the Committee on Foreign 12 Relations, and the Committee on Finance of the 13 Senate; and 14 (B) the Committee on Foreign Affairs, the 15 Committee on Financial Services, and the Com- 16 mittee on Ways and Means of the House of 17 Representatives. 18 (2) SENIOR FOREIGN POLITICAL FIGURE.—The 19 term ‘‘senior foreign political figure’’ has the mean- 20 ing given that term in section 1010.605 of title 31, 21 Code of Federal Regulations (or any corresponding 22 similar regulation or ruling). VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00099 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 100 •HR 3364 IH 1 SEC. 242. REPORT ON EFFECTS OF EXPANDING SANCTIONS 2 TO INCLUDE SOVEREIGN DEBT AND DERIVA- 3 TIVE PRODUCTS. 4 (a) IN GENERAL.—Not later than 180 days after the 5 date of the enactment of this Act, the Secretary of the 6 Treasury, in consultation with the Director of National In- 7 telligence and the Secretary of State, shall submit to the 8 appropriate congressional committees a report describing 9 in detail the potential effects of expanding sanctions under 10 Directive 1 (as amended), dated September 12, 2014, 11 issued by the Office of Foreign Assets Control under Exec- 12 utive Order 13662 (79 Fed. Reg. 16169; relating to block- 13 ing property of additional persons contributing to the situ- 14 ation in Ukraine), or any successor directive, to include 15 sovereign debt and the full range of derivative products. 16 (b) FORM OF REPORT.—The report required under 17 subsection (a) shall be submitted in an unclassified form, 18 but may contain a classified annex. 19 (c) APPROPRIATE CONGRESSIONAL COMMITTEES DE- 20 FINED.—In this section, the term ‘‘appropriate congres- 21 sional committees’’ means— 22 (1) the Committee on Banking, Housing, and 23 Urban Affairs, the Committee on Foreign Relations, 24 and the Committee on Finance of the Senate; and 25 (2) the Committee on Foreign Affairs, the 26 Committee on Financial Services, and the ComVerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00100 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 101 •HR 3364 IH 1 mittee on Ways and Means of the House of Rep- 2 resentatives. 3 SEC. 243. REPORT ON ILLICIT FINANCE RELATING TO THE 4 RUSSIAN FEDERATION. 5 (a) IN GENERAL.—Not later than one year after the 6 date of the enactment of this Act, and not later than the 7 end of each one-year period thereafter until 2021, the Sec- 8 retary of the Treasury shall submit to the appropriate con- 9 gressional committees a report describing interagency ef- 10 forts in the United States to combat illicit finance relating 11 to the Russian Federation. 12 (b) ELEMENTS.—The report required by subsection 13 (a) shall contain a summary of efforts by the United 14 States to do the following: 15 (1) Identify, investigate, map, and disrupt illicit 16 financial flows linked to the Russian Federation if 17 such flows affect the United States financial system 18 or those of major allies of the United States. 19 (2) Conduct outreach to the private sector, in- 20 cluding information sharing efforts to strengthen 21 compliance efforts by entities, including financial in- 22 stitutions, to prevent illicit financial flows described 23 in paragraph (1). 24 (3) Engage and coordinate with allied inter- 25 national partners on illicit finance, especially in EuVerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00101 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 102 •HR 3364 IH 1 rope, to coordinate efforts to uncover and prosecute 2 the networks responsible for illicit financial flows de- 3 scribed in paragraph (1), including examples of that 4 engagement and coordination. 5 (4) Identify foreign sanctions evaders and loop- 6 holes within the sanctions regimes of foreign part- 7 ners of the United States. 8 (5) Expand the number of real estate geo- 9 graphic targeting orders or other regulatory actions, 10 as appropriate, to degrade illicit financial activity re- 11 lating to the Russian Federation in relation to the 12 financial system of the United States. 13 (6) Provide support to counter those involved in 14 illicit finance relating to the Russian Federation 15 across all appropriate law enforcement, intelligence, 16 regulatory, and financial authorities of the Federal 17 Government, including by imposing sanctions with 18 respect to or prosecuting those involved. 19 (7) In the case of the Department of the Treas- 20 ury and the Department of Justice, investigate or 21 otherwise develop major cases, including a descrip- 22 tion of those cases. 23 (c) BRIEFING.—After submitting a report under this 24 section, the Secretary of the Treasury shall provide briefVerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00102 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 103 •HR 3364 IH 1 ings to the appropriate congressional committees with re- 2 spect to that report. 3 (d) COORDINATION.—The Secretary of the Treasury 4 shall coordinate with the Attorney General, the Director 5 of National Intelligence, the Secretary of Homeland Secu- 6 rity, and the Secretary of State in preparing each report 7 under this section. 8 (e) FORM.—Each report submitted under this section 9 shall be submitted in unclassified form, but may contain 10 a classified annex. 11 (f) DEFINITIONS.—In this section: 12 (1) APPROPRIATE CONGRESSIONAL COMMIT- 13 TEES.—The term ‘‘appropriate congressional com- 14 mittees’’ means— 15 (A) the Committee on Banking, Housing, 16 and Urban Affairs, the Committee on Foreign 17 Relations, and the Committee on Finance of the 18 Senate; and 19 (B) the Committee on Foreign Affairs, the 20 Committee on Financial Services, and the Com- 21 mittee on Ways and Means of the House of 22 Representatives. 23 (2) ILLICIT FINANCE.—The term ‘‘illicit fi- 24 nance’’ means the financing of terrorism, narcotics 25 trafficking, or proliferation, money laundering, or VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00103 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 104 •HR 3364 IH 1 other forms of illicit financing domestically or inter- 2 nationally, as defined by the President. 3 Subtitle B—Countering Russian 4 Influence in Europe and Eurasia 5 SEC. 251. FINDINGS. 6 Congress makes the following findings: 7 (1) The Government of the Russian Federation 8 has sought to exert influence throughout Europe and 9 Eurasia, including in the former states of the Soviet 10 Union, by providing resources to political parties, 11 think tanks, and civil society groups that sow dis- 12 trust in democratic institutions and actors, promote 13 xenophobic and illiberal views, and otherwise under- 14 mine European unity. The Government of the Rus- 15 sian Federation has also engaged in well-documented 16 corruption practices as a means toward undermining 17 and buying influence in European and Eurasian 18 countries. 19 (2) The Government of the Russian Federation 20 has largely eliminated a once-vibrant Russian-lan- 21 guage independent media sector and severely curtails 22 free and independent media within the borders of 23 the Russian Federation. Russian-language media or- 24 ganizations that are funded and controlled by the 25 Government of the Russian Federation and dissemiVerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00104 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 105 •HR 3364 IH 1 nate information within and outside of the Russian 2 Federation routinely traffic in anti-Western 3 disinformation, while few independent, fact-based 4 media sources provide objective reporting for Rus- 5 sian-speaking audiences inside or outside of the Rus- 6 sian Federation. 7 (3) The Government of the Russian Federation 8 continues to violate its commitments under the 9 Memorandum on Security Assurances in connection 10 with Ukraine’s Accession to the Treaty on the Non- 11 Proliferation of Nuclear Weapons, done at Budapest 12 December 5, 1994, and the Conference on Security 13 and Co-operation in Europe Final Act, concluded at 14 Helsinki August 1, 1975 (commonly referred to as 15 the ‘‘Helsinki Final Act’’), which laid the ground- 16 work for the establishment of the Organization for 17 Security and Co-operation in Europe, of which the 18 Russian Federation is a member, by its illegal an- 19 nexation of Crimea in 2014, its illegal occupation of 20 South Ossetia and Abkhazia in Georgia in 2008, and 21 its ongoing destabilizing activities in eastern 22 Ukraine. 23 (4) The Government of the Russian Federation 24 continues to ignore the terms of the August 2008 25 ceasefire agreement relating to Georgia, which reVerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00105 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 106 •HR 3364 IH 1 quires the withdrawal of Russian Federation troops, 2 free access by humanitarian groups to the regions of 3 South Ossetia and Abkhazia, and monitoring of the 4 conflict areas by the European Union Monitoring 5 Mission. 6 (5) The Government of the Russian Federation 7 is failing to comply with the terms of the Minsk 8 Agreement to address the ongoing conflict in eastern 9 Ukraine, signed in Minsk, Belarus, on February 11, 10 2015, by the leaders of Ukraine, Russia, France, 11 and Germany, as well as the Minsk Protocol, which 12 was agreed to on September 5, 2014. 13 (6) The Government of the Russian Federation 14 is— 15 (A) in violation of the Treaty between the 16 United States of America and the Union of So- 17 viet Socialist Republics on the Elimination of 18 their Intermediate-Range and Shorter-Range 19 Missiles, signed at Washington December 8, 20 1987, and entered into force June 1, 1988 21 (commonly known as the ‘‘INF Treaty’’); and 22 (B) failing to meet its obligations under 23 the Treaty on Open Skies, done at Helsinki 24 March 24, 1992, and entered into force JanuVerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00106 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 107 •HR 3364 IH 1 ary 1, 2002 (commonly known as the ‘‘Open 2 Skies Treaty’’). 3 SEC. 252. SENSE OF CONGRESS. 4 It is the sense of Congress that— 5 (1) the Government of the Russian Federation 6 bears responsibility for the continuing violence in 7 Eastern Ukraine, including the death on April 24, 8 2017, of Joseph Stone, a citizen of the United 9 States working as a monitor for the Organization for 10 Security and Co-operation in Europe; 11 (2) the President should call on the Govern- 12 ment of the Russian Federation— 13 (A) to withdraw all of its forces from the 14 territories of Georgia, Ukraine, and Moldova; 15 (B) to return control of the borders of 16 those territories to their respective govern- 17 ments; and 18 (C) to cease all efforts to undermine the 19 popularly elected governments of those coun- 20 tries; 21 (3) the Government of the Russian Federation 22 has applied, and continues to apply, to the countries 23 and peoples of Georgia and Ukraine, traditional uses 24 of force, intelligence operations, and influence camVerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00107 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 108 •HR 3364 IH 1 paigns, which represent clear and present threats to 2 the countries of Europe and Eurasia; 3 (4) in response, the countries of Europe and 4 Eurasia should redouble efforts to build resilience 5 within their institutions, political systems, and civil 6 societies; 7 (5) the United States supports the institutions 8 that the Government of the Russian Federation 9 seeks to undermine, including the North Atlantic 10 Treaty Organization and the European Union; 11 (6) a strong North Atlantic Treaty Organiza- 12 tion is critical to maintaining peace and security in 13 Europe and Eurasia; 14 (7) the United States should continue to work 15 with the European Union as a partner against ag- 16 gression by the Government of the Russian Federa- 17 tion, coordinating aid programs, development assist- 18 ance, and other counter-Russian efforts; 19 (8) the United States should encourage the es- 20 tablishment of a commission for media freedom 21 within the Council of Europe, modeled on the Venice 22 Commission regarding rule of law issues, that would 23 be chartered to provide governments with expert rec- 24 ommendations on maintaining legal and regulatory 25 regimes supportive of free and independent media VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00108 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 109 •HR 3364 IH 1 and an informed citizenry able to distinguish be- 2 tween fact-based reporting, opinion, and 3 disinformation; 4 (9) in addition to working to strengthen the 5 North Atlantic Treaty Organization and the Euro- 6 pean Union, the United States should work with the 7 individual countries of Europe and Eurasia— 8 (A) to identify vulnerabilities to aggres- 9 sion, disinformation, corruption, and so-called 10 hybrid warfare by the Government of the Rus- 11 sian Federation; 12 (B) to establish strategic and technical 13 plans for addressing those vulnerabilities; 14 (C) to ensure that the financial systems of 15 those countries are not being used to shield il- 16 licit financial activity by officials of the Govern- 17 ment of the Russian Federation or individuals 18 in President Vladimir Putin’s inner circle who 19 have been enriched through corruption; 20 (D) to investigate and prosecute cases of 21 corruption by Russian actors; and 22 (E) to work toward full compliance with 23 the Convention on Combating Bribery of For- 24 eign Public Officials in International Business 25 Transactions (commonly referred to as the VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00109 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 110 •HR 3364 IH 1 ‘‘Anti-Bribery Convention’’) of the Organization 2 for Economic Co-operation and Development; 3 and 4 (10) the President of the United States should 5 use the authority of the President to impose sanc- 6 tions under— 7 (A) the Sergei Magnitsky Rule of Law Ac- 8 countability Act of 2012 (title IV of Public Law 9 112–208; 22 U.S.C. 5811 note); and 10 (B) the Global Magnitsky Human Rights 11 Accountability Act (subtitle F of title XII of 12 Public Law 114–328; 22 U.S.C. 2656 note). 13 SEC. 253. STATEMENT OF POLICY. 14 The United States, consistent with the principle of 15 ex injuria jus non oritur, supports the policy known as 16 the ‘‘Stimson Doctrine’’ and thus does not recognize terri- 17 torial changes effected by force, including the illegal inva- 18 sions and occupations of Abkhazia, South Ossetia, Crimea, 19 Eastern Ukraine, and Transnistria. 20 SEC. 254. COORDINATING AID AND ASSISTANCE ACROSS 21 EUROPE AND EURASIA. 22 (a) AUTHORIZATION OF APPROPRIATIONS.—There 23 are authorized to be appropriated for the Countering Rus- 24 sian Influence Fund $250,000,000 for fiscal years 2018 25 and 2019. VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00110 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 111 •HR 3364 IH 1 (b) USE OF FUNDS.—Amounts in the Countering 2 Russian Influence Fund shall be used to effectively imple- 3 ment, prioritized in the following order and subject to the 4 availability of funds, the following goals: 5 (1) To assist in protecting critical infrastruc- 6 ture and electoral mechanisms from cyberattacks in 7 the following countries: 8 (A) Countries that are members of the 9 North Atlantic Treaty Organization or the Eu- 10 ropean Union that the Secretary of State deter- 11 mines— 12 (i) are vulnerable to influence by the 13 Russian Federation; and 14 (ii) lack the economic capability to ef- 15 fectively respond to aggression by the Rus- 16 sian Federation without the support of the 17 United States. 18 (B) Countries that are participating in the 19 enlargement process of the North Atlantic 20 Treaty Organization or the European Union, 21 including Albania, Bosnia and Herzegovina, 22 Georgia, Macedonia, Moldova, Kosovo, Serbia, 23 and Ukraine. 24 (2) To combat corruption, improve the rule of 25 law, and otherwise strengthen independent judiVerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00111 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 112 •HR 3364 IH 1 ciaries and prosecutors general offices in the coun- 2 tries described in paragraph (1). 3 (3) To respond to the humanitarian crises and 4 instability caused or aggravated by the invasions and 5 occupations of Georgia and Ukraine by the Russian 6 Federation. 7 (4) To improve participatory legislative proc- 8 esses and legal education, political transparency and 9 competition, and compliance with international obli- 10 gations in the countries described in paragraph (1). 11 (5) To build the capacity of civil society, media, 12 and other nongovernmental organizations countering 13 the influence and propaganda of the Russian Fed- 14 eration to combat corruption, prioritize access to 15 truthful information, and operate freely in all re- 16 gions in the countries described in paragraph (1). 17 (6) To assist the Secretary of State in exe- 18 cuting the functions specified in section 1287(b) of 19 the National Defense Authorization Act for Fiscal 20 Year 2017 (Public Law 114–328; 22 U.S.C. 2656 21 note) for the purposes of recognizing, understanding, 22 exposing, and countering propaganda and 23 disinformation efforts by foreign governments, in co- 24 ordination with the relevant regional Assistant SecVerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00112 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 113 •HR 3364 IH 1 retary or Assistant Secretaries of the Department of 2 State. 3 (c) REVISION OF ACTIVITIES FOR WHICH AMOUNTS 4 MAY BE USED.—The Secretary of State may modify the 5 goals described in subsection (b) if, not later than 15 days 6 before revising such a goal, the Secretary notifies the ap- 7 propriate congressional committees of the revision. 8 (d) IMPLEMENTATION.— 9 (1) IN GENERAL.—The Secretary of State shall, 10 acting through the Coordinator of United States As- 11 sistance to Europe and Eurasia (authorized pursu- 12 ant to section 601 of the Support for East European 13 Democracy (SEED) Act of 1989 (22 U.S.C. 5461) 14 and section 102 of the Freedom for Russia and 15 Emerging Eurasian Democracies and Open Markets 16 Support Act of 1992 (22 U.S.C. 5812)), and in con- 17 sultation with the Administrator for the United 18 States Agency for International Development, the 19 Director of the Global Engagement Center of the 20 Department of State, the Secretary of Defense, the 21 Chairman of the Broadcasting Board of Governors, 22 and the heads of other relevant Federal agencies, co- 23 ordinate and carry out activities to achieve the goals 24 described in subsection (b). VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00113 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 114 •HR 3364 IH 1 (2) METHOD.—Activities to achieve the goals 2 described in subsection (b) shall be carried out 3 through— 4 (A) initiatives of the United States Gov- 5 ernment; 6 (B) Federal grant programs such as the 7 Information Access Fund; or 8 (C) nongovernmental or international orga- 9 nizations, such as the Organization for Security 10 and Co-operation in Europe, the National En- 11 dowment for Democracy, the Black Sea Trust, 12 the Balkan Trust for Democracy, the Prague 13 Civil Society Centre, the North Atlantic Treaty 14 Organization Strategic Communications Centre 15 of Excellence, the European Endowment for 16 Democracy, and related organizations. 17 (3) REPORT ON IMPLEMENTATION.— 18 (A) IN GENERAL.—Not later than April 1 19 of each year, the Secretary of State, acting 20 through the Coordinator of United States As- 21 sistance to Europe and Eurasia, shall submit to 22 the appropriate congressional committees a re- 23 port on the programs and activities carried out 24 to achieve the goals described in subsection (b) 25 during the preceding fiscal year. VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00114 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 115 •HR 3364 IH 1 (B) ELEMENTS.—Each report required by 2 subparagraph (A) shall include, with respect to 3 each program or activity described in that sub- 4 paragraph— 5 (i) the amount of funding for the pro- 6 gram or activity; 7 (ii) the goal described in subsection 8 (b) to which the program or activity re- 9 lates; and 10 (iii) an assessment of whether or not 11 the goal was met. 12 (e) COORDINATION WITH GLOBAL PARTNERS.— 13 (1) IN GENERAL.—In order to maximize cost 14 efficiency, eliminate duplication, and speed the 15 achievement of the goals described in subsection (b), 16 the Secretary of State shall ensure coordination 17 with— 18 (A) the European Union and its institu- 19 tions; 20 (B) the governments of countries that are 21 members of the North Atlantic Treaty Organi- 22 zation or the European Union; and 23 (C) international organizations and quasi- 24 governmental funding entities that carry out VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00115 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 116 •HR 3364 IH 1 programs and activities that seek to accomplish 2 the goals described in subsection (b). 3 (2) REPORT BY SECRETARY OF STATE.—Not 4 later than April 1 of each year, the Secretary of 5 State shall submit to the appropriate congressional 6 committees a report that includes— 7 (A) the amount of funding provided to 8 each country referred to in subsection (b) by— 9 (i) the European Union or its institu- 10 tions; 11 (ii) the government of each country 12 that is a member of the European Union 13 or the North Atlantic Treaty Organization; 14 and 15 (iii) international organizations and 16 quasi-governmental funding entities that 17 carry out programs and activities that seek 18 to accomplish the goals described in sub- 19 section (b); and 20 (B) an assessment of whether the funding 21 described in subparagraph (A) is commensurate 22 with funding provided by the United States for 23 those goals. 24 (f) RULE OF CONSTRUCTION.—Nothing in this sec- 25 tion shall be construed to apply to or limit United States VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00116 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 117 •HR 3364 IH 1 foreign assistance not provided using amounts available in 2 the Countering Russian Influence Fund. 3 (g) ENSURING ADEQUATE STAFFING FOR GOVERN- 4 ANCE ACTIVITIES.—In order to ensure that the United 5 States Government is properly focused on combating cor- 6 ruption, improving rule of law, and building the capacity 7 of civil society, media, and other nongovernmental organi- 8 zations in countries described in subsection (b)(1), the 9 Secretary of State shall establish a pilot program for For- 10 eign Service officer positions focused on governance and 11 anticorruption activities in such countries. 12 SEC. 255. REPORT ON MEDIA ORGANIZATIONS CON- 13 TROLLED AND FUNDED BY THE GOVERN- 14 MENT OF THE RUSSIAN FEDERATION. 15 (a) IN GENERAL.—Not later than 90 days after the 16 date of the enactment of this Act, and annually thereafter, 17 the President shall submit to the appropriate congres- 18 sional committees a report that includes a description of 19 media organizations that are controlled and funded by the 20 Government of the Russian Federation, and any affiliated 21 entities, whether operating within or outside the Russian 22 Federation, including broadcast and satellite-based tele- 23 vision, radio, Internet, and print media organizations. VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00117 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 118 •HR 3364 IH 1 (b) FORM OF REPORT.—The report required by sub- 2 section (a) shall be submitted in unclassified form but may 3 include a classified annex. 4 SEC. 256. REPORT ON RUSSIAN FEDERATION INFLUENCE 5 ON ELECTIONS IN EUROPE AND EURASIA. 6 (a) IN GENERAL.—Not later than 90 days after the 7 date of the enactment of this Act, and annually thereafter, 8 the President shall submit to the appropriate congres- 9 sional committees and leadership a report on funds pro- 10 vided by, or funds the use of which was directed by, the 11 Government of the Russian Federation or any Russian 12 person with the intention of influencing the outcome of 13 any election or campaign in any country in Europe or Eur- 14 asia during the preceding year, including through direct 15 support to any political party, candidate, lobbying cam- 16 paign, nongovernmental organization, or civic organiza- 17 tion. 18 (b) FORM OF REPORT.—Each report required by 19 subsection (a) shall be submitted in unclassified form but 20 may include a classified annex. 21 (c) DEFINITIONS.—In this section: 22 (1) APPROPRIATE CONGRESSIONAL COMMIT- 23 TEES AND LEADERSHIP.—The term ‘‘appropriate 24 congressional committees and leadership’’ means— VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00118 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 119 •HR 3364 IH 1 (A) the Committee on Foreign Relations, 2 the Committee on Banking, Housing, and 3 Urban Affairs, the Committee on Armed Serv- 4 ices, the Committee on Homeland Security and 5 Governmental Affairs, the Committee on Appro- 6 priations, the Select Committee on Intelligence, 7 and the majority and minority leaders of the 8 Senate; and 9 (B) the Committee on Foreign Affairs, the 10 Committee on Financial Services, the Com- 11 mittee on Armed Services, the Committee on 12 Homeland Security, the Committee on Appro- 13 priations, the Permanent Select Committee on 14 Intelligence, and the Speaker, the majority 15 leader, and the minority leader of the House of 16 Representatives. 17 (2) RUSSIAN PERSON.—The term ‘‘Russian per- 18 son’’ means— 19 (A) an individual who is a citizen or na- 20 tional of the Russian Federation; or 21 (B) an entity organized under the laws of 22 the Russian Federation or otherwise subject to 23 the jurisdiction of the Government of the Rus- 24 sian Federation. VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00119 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 120 •HR 3364 IH 1 SEC. 257. UKRANIAN ENERGY SECURITY. 2 (a) STATEMENT OF POLICY.—It is the policy of the 3 United States— 4 (1) to support the Government of Ukraine in 5 restoring its sovereign and territorial integrity; 6 (2) to condemn and oppose all of the desta- 7 bilizing efforts by the Government of the Russian 8 Federation in Ukraine in violation of its obligations 9 and international commitments; 10 (3) to never recognize the illegal annexation of 11 Crimea by the Government of the Russian Federa- 12 tion or the separation of any portion of Ukrainian 13 territory through the use of military force; 14 (4) to deter the Government of the Russian 15 Federation from further destabilizing and invading 16 Ukraine and other independent countries in Central 17 and Eastern Europe and the Caucuses; 18 (5) to assist in promoting reform in regulatory 19 oversight and operations in Ukraine’s energy sector, 20 including the establishment and empowerment of an 21 independent regulatory organization; 22 (6) to encourage and support fair competition, 23 market liberalization, and reliability in Ukraine’s en- 24 ergy sector; 25 (7) to help Ukraine and United States allies 26 and partners in Europe reduce their dependence on VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00120 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 121 •HR 3364 IH 1 Russian energy resources, especially natural gas, 2 which the Government of the Russian Federation 3 uses as a weapon to coerce, intimidate, and influence 4 other countries; 5 (8) to work with European Union member 6 states and European Union institutions to promote 7 energy security through developing diversified and 8 liberalized energy markets that provide diversified 9 sources, suppliers, and routes; 10 (9) to continue to oppose the NordStream 2 11 pipeline given its detrimental impacts on the Euro- 12 pean Union’s energy security, gas market develop- 13 ment in Central and Eastern Europe, and energy re- 14 forms in Ukraine; and 15 (10) that the United States Government should 16 prioritize the export of United States energy re- 17 sources in order to create American jobs, help 18 United States allies and partners, and strengthen 19 United States foreign policy. 20 (b) PLAN TO PROMOTE ENERGY SECURITY IN 21 UKRAINE.— 22 (1) IN GENERAL.—The Secretary of State, in 23 coordination with the Administrator of the United 24 States Agency for International Development and 25 the Secretary of Energy, shall work with the GovernVerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00121 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 122 •HR 3364 IH 1 ment of Ukraine to develop a plan to increase energy 2 security in Ukraine, increase the amount of energy 3 produced in Ukraine, and reduce Ukraine’s reliance 4 on energy imports from the Russian Federation. 5 (2) ELEMENTS.—The plan developed under 6 paragraph (1) shall include strategies for market lib- 7 eralization, effective regulation and oversight, supply 8 diversification, energy reliability, and energy effi- 9 ciency, such as through supporting— 10 (A) the promotion of advanced technology 11 and modern operating practices in Ukraine’s oil 12 and gas sector; 13 (B) modern geophysical and meteorological 14 survey work as needed followed by international 15 tenders to help attract qualified investment into 16 exploration and development of areas with un- 17 tapped resources in Ukraine; 18 (C) a broadening of Ukraine’s electric 19 power transmission interconnection with Eu- 20 rope; 21 (D) the strengthening of Ukraine’s capa- 22 bility to maintain electric power grid stability 23 and reliability; VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00122 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 123 •HR 3364 IH 1 (E) independent regulatory oversight and 2 operations of Ukraine’s gas market and elec- 3 tricity sector; 4 (F) the implementation of primary gas law 5 including pricing, tariff structure, and legal reg- 6 ulatory implementation; 7 (G) privatization of government owned en- 8 ergy companies through credible legal frame- 9 works and a transparent process compliant with 10 international best practices; 11 (H) procurement and transport of emer- 12 gency fuel supplies, including reverse pipeline 13 flows from Europe; 14 (I) provision of technical assistance for cri- 15 sis planning, crisis response, and public out- 16 reach; 17 (J) repair of infrastructure to enable the 18 transport of fuel supplies; 19 (K) repair of power generating or power 20 transmission equipment or facilities; and 21 (L) improved building energy efficiency 22 and other measures designed to reduce energy 23 demand in Ukraine. 24 (3) REPORTS.— VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00123 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 124 •HR 3364 IH 1 (A) IMPLEMENTATION OF UKRAINE FREE- 2 DOM SUPPORT ACT OF 2014 PROVISIONS.—Not 3 later than 180 days after the date of the enact- 4 ment of this Act, the Secretary of State shall 5 submit to the appropriate congressional com- 6 mittees a report detailing the status of imple- 7 menting the provisions required under section 8 7(c) of the Ukraine Freedom Support Act of 9 2014 (22 U.S.C. 8926(c)), including detailing 10 the plans required under that section, the level 11 of funding that has been allocated to and ex- 12 pended for the strategies set forth under that 13 section, and progress that has been made in im- 14 plementing the strategies developed pursuant to 15 that section. 16 (B) IN GENERAL.—Not later than 180 17 days after the date of the enactment of this 18 Act, and every 180 days thereafter, the Sec- 19 retary of State shall submit to the appropriate 20 congressional committees a report detailing the 21 plan developed under paragraph (1), the level of 22 funding that has been allocated to and ex- 23 pended for the strategies set forth in paragraph 24 (2), and progress that has been made in imple- 25 menting the strategies. VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00124 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 125 •HR 3364 IH 1 (C) BRIEFINGS.—The Secretary of State, 2 or a designee of the Secretary, shall brief the 3 appropriate congressional committees not later 4 than 30 days after the submission of each re- 5 port under subparagraph (B). In addition, the 6 Department of State shall make relevant offi- 7 cials available upon request to brief the appro- 8 priate congressional committees on all available 9 information that relates directly or indirectly to 10 Ukraine or energy security in Eastern Europe. 11 (D) APPROPRIATE CONGRESSIONAL COM- 12 MITTEES DEFINED.—In this paragraph, the 13 term ‘‘appropriate congressional committees’’ 14 means— 15 (i) the Committee on Foreign Rela- 16 tions and the Committee on Appropriations 17 of the Senate; and 18 (ii) the Committee on Foreign Affairs 19 and the Committee on Appropriations of 20 the House of Representatives. 21 (c) SUPPORTING EFFORTS OF COUNTRIES IN EU- 22 ROPE AND EURASIA TO DECREASE THEIR DEPENDENCE 23 ON RUSSIAN SOURCES OF ENERGY.— 24 (1) FINDINGS.—Congress makes the following 25 findings: VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00125 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 126 •HR 3364 IH 1 (A) The Government of the Russian Fed- 2 eration uses its strong position in the energy 3 sector as leverage to manipulate the internal 4 politics and foreign relations of the countries of 5 Europe and Eurasia. 6 (B) This influence is based not only on the 7 Russian Federation’s oil and natural gas re- 8 sources, but also on its state-owned nuclear 9 power and electricity companies. 10 (2) SENSE OF CONGRESS.—It is the sense of 11 Congress that— 12 (A) the United States should assist the ef- 13 forts of the countries of Europe and Eurasia to 14 enhance their energy security through diver- 15 sification of energy supplies in order to lessen 16 dependencies on Russian Federation energy re- 17 sources and state-owned entities; and 18 (B) the Export-Import Bank of the United 19 States and the Overseas Private Investment 20 Corporation should play key roles in supporting 21 critical energy projects that contribute to that 22 goal. 23 (3) USE OF COUNTERING RUSSIAN INFLUENCE 24 FUND TO PROVIDE TECHNICAL ASSISTANCE.— 25 Amounts in the Countering Russian Influence Fund VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00126 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 127 •HR 3364 IH 1 pursuant to section 254 shall be used to provide 2 technical advice to countries described in subsection 3 (b)(1) of such section designed to enhance energy se- 4 curity and lessen dependence on energy from Rus- 5 sian Federation sources. 6 (d) AUTHORIZATION OF APPROPRIATIONS.—There is 7 authorized to be appropriated for the Department of State 8 a total of $30,000,000 for fiscal years 2018 and 2019 to 9 carry out the strategies set forth in subsection (b)(2) and 10 other activities under this section related to the promotion 11 of energy security in Ukraine. 12 (e) RULE OF CONSTRUCTION.—Nothing in this sec- 13 tion shall be construed as affecting the responsibilities re- 14 quired and authorities provided under section 7 of the 15 Ukraine Freedom Support Act of 2014 (22 U.S.C. 8926). 16 SEC. 258. TERMINATION. 17 The provisions of this subtitle shall terminate on the 18 date that is 5 years after the date of the enactment of 19 this Act. 20 SEC. 259. APPROPRIATE CONGRESSIONAL COMMITTEES 21 DEFINED. 22 Except as otherwise provided, in this subtitle, the 23 term ‘‘appropriate congressional committees’’ means— 24 (1) the Committee on Foreign Relations, the 25 Committee on Banking, Housing, and Urban AfVerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00127 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 128 •HR 3364 IH 1 fairs, the Committee on Armed Services, the Com- 2 mittee on Homeland Security and Governmental Af- 3 fairs, the Committee on Appropriations, and the Se- 4 lect Committee on Intelligence of the Senate; and 5 (2) the Committee on Foreign Affairs, the 6 Committee on Financial Services, the Committee on 7 Armed Services, the Committee on Homeland Secu- 8 rity, the Committee on Appropriations, and the Per- 9 manent Select Committee on Intelligence of the 10 House of Representatives. 11 Subtitle C—Combating Terrorism 12 and Illicit Financing 13 PART 1—NATIONAL STRATEGY FOR COMBATING 14 TERRORIST AND OTHER ILLICIT FINANCING 15 SEC. 261. DEVELOPMENT OF NATIONAL STRATEGY. 16 (a) IN GENERAL.—The President, acting through the 17 Secretary, shall, in consultation with the Attorney Gen- 18 eral, the Secretary of State, the Secretary of Homeland 19 Security, the Director of National Intelligence, the Direc- 20 tor of the Office of Management and Budget, and the ap- 21 propriate Federal banking agencies and Federal functional 22 regulators, develop a national strategy for combating the 23 financing of terrorism and related forms of illicit finance. 24 (b) TRANSMITTAL TO CONGRESS.— VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00128 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 129 •HR 3364 IH 1 (1) IN GENERAL.—Not later than one year 2 after the date of the enactment of this Act, the 3 President shall submit to the appropriate congres- 4 sional committees a comprehensive national strategy 5 developed in accordance with subsection (a). 6 (2) UPDATES.—Not later than January 31, 7 2020, and January 31, 2022, the President shall 8 submit to the appropriate congressional committees 9 updated versions of the national strategy submitted 10 under paragraph (1). 11 (c) SEPARATE PRESENTATION OF CLASSIFIED MA- 12 TERIAL.—Any part of the national strategy that involves 13 information that is properly classified under criteria estab- 14 lished by the President shall be submitted to Congress sep- 15 arately in a classified annex and, if requested by the chair- 16 man or ranking member of one of the appropriate congres- 17 sional committees, as a briefing at an appropriate level 18 of security. 19 SEC. 262. CONTENTS OF NATIONAL STRATEGY. 20 The strategy described in section 261 shall contain 21 the following: 22 (1) EVALUATION OF EXISTING EFFORTS.—An 23 assessment of the effectiveness of and ways in which 24 the United States is currently addressing the highest 25 levels of risk of various forms of illicit finance, inVerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00129 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 130 •HR 3364 IH 1 cluding those identified in the documents entitled 2 ‘‘2015 National Money Laundering Risk Assess- 3 ment’’ and ‘‘2015 National Terrorist Financing Risk 4 Assessment’’, published by the Department of the 5 Treasury and a description of how the strategy is in- 6 tegrated into, and supports, the broader counter ter- 7 rorism strategy of the United States. 8 (2) GOALS, OBJECTIVES, AND PRIORITIES.—A 9 comprehensive, research-based, long-range, quantifi- 10 able discussion of goals, objectives, and priorities for 11 disrupting and preventing illicit finance activities 12 within and transiting the financial system of the 13 United States that outlines priorities to reduce the 14 incidence, dollar value, and effects of illicit finance. 15 (3) THREATS.—An identification of the most 16 significant illicit finance threats to the financial sys- 17 tem of the United States. 18 (4) REVIEWS AND PROPOSED CHANGES.—Re- 19 views of enforcement efforts, relevant regulations 20 and relevant provisions of law and, if appropriate, 21 discussions of proposed changes determined to be 22 appropriate to ensure that the United States pur- 23 sues coordinated and effective efforts at all levels of 24 government, and with international partners of the 25 United States, in the fight against illicit finance. VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00130 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 131 •HR 3364 IH 1 (5) DETECTION AND PROSECUTION INITIA- 2 TIVES.—A description of efforts to improve, as nec- 3 essary, detection and prosecution of illicit finance, 4 including efforts to ensure that— 5 (A) subject to legal restrictions, all appro- 6 priate data collected by the Federal Govern- 7 ment that is relevant to the efforts described in 8 this section be available in a timely fashion to— 9 (i) all appropriate Federal depart- 10 ments and agencies; and 11 (ii) as appropriate and consistent with 12 section 314 of the International Money 13 Laundering Abatement and Financial 14 Anti-Terrorism Act of 2001 (31 U.S.C. 15 5311 note), to financial institutions to as- 16 sist the financial institutions in efforts to 17 comply with laws aimed at curbing illicit fi- 18 nance; and 19 (B) appropriate efforts are undertaken to 20 ensure that Federal departments and agencies 21 charged with reducing and preventing illicit fi- 22 nance make thorough use of publicly available 23 data in furtherance of this effort. 24 (6) THE ROLE OF THE PRIVATE FINANCIAL 25 SECTOR IN PREVENTION OF ILLICIT FINANCE.—A VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00131 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 132 •HR 3364 IH 1 discussion of ways to enhance partnerships between 2 the private financial sector and Federal departments 3 and agencies with regard to the prevention and de- 4 tection of illicit finance, including— 5 (A) efforts to facilitate compliance with 6 laws aimed at stopping such illicit finance while 7 maintaining the effectiveness of such efforts; 8 and 9 (B) providing guidance to strengthen inter- 10 nal controls and to adopt on an industry-wide 11 basis more effective policies. 12 (7) ENHANCEMENT OF INTERGOVERNMENTAL 13 COOPERATION.—A discussion of ways to combat il- 14 licit finance by enhancing— 15 (A) cooperative efforts between and among 16 Federal, State, and local officials, including 17 State regulators, State and local prosecutors, 18 and other law enforcement officials; and 19 (B) cooperative efforts with and between 20 governments of countries and with and between 21 multinational institutions with expertise in 22 fighting illicit finance, including the Financial 23 Action Task Force and the Egmont Group of 24 Financial Intelligence Units. VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00132 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 133 •HR 3364 IH 1 (8) TREND ANALYSIS OF EMERGING ILLICIT FI- 2 NANCE THREATS.—A discussion of and data regard- 3 ing trends in illicit finance, including evolving forms 4 of value transfer such as so-called cryptocurrencies, 5 other methods that are computer, telecommuni- 6 cations, or Internet-based, cyber crime, or any other 7 threats that the Secretary may choose to identify. 8 (9) BUDGET PRIORITIES.—A multiyear budget 9 plan that identifies sufficient resources needed to 10 successfully execute the full range of missions called 11 for in this section. 12 (10) TECHNOLOGY ENHANCEMENTS.—An anal- 13 ysis of current and developing ways to leverage tech- 14 nology to improve the effectiveness of efforts to stop 15 the financing of terrorism and other forms of illicit 16 finance, including better integration of open-source 17 data. 18 PART 2—ENHANCING ANTITERRORISM TOOLS OF 19 THE DEPARTMENT OF THE TREASURY 20 SEC. 271. IMPROVING ANTITERROR FINANCE MONITORING 21 OF FUNDS TRANSFERS. 22 (a) STUDY.— 23 (1) IN GENERAL.—To improve the ability of the 24 Department of the Treasury to better track cross- 25 border fund transfers and identify potential financVerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00133 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 134 •HR 3364 IH 1 ing of terrorist or other forms of illicit finance, the 2 Secretary shall carry out a study to assess— 3 (A) the potential efficacy of requiring 4 banking regulators to establish a pilot program 5 to provide technical assistance to depository in- 6 stitutions and credit unions that wish to provide 7 account services to money services businesses 8 serving individuals in Somalia; 9 (B) whether such a pilot program could be 10 a model for improving the ability of United 11 States persons to make legitimate funds trans- 12 fers through transparent and easily monitored 13 channels while preserving strict compliance with 14 the Bank Secrecy Act (Public Law 91–508; 84 15 Stat. 1114) and related controls aimed at stop- 16 ping money laundering and the financing of ter- 17 rorism; and 18 (C) consistent with current legal require- 19 ments regarding confidential supervisory infor- 20 mation, the potential impact of allowing money 21 services businesses to share certain State exam- 22 ination information with depository institutions 23 and credit unions, or whether another appro- 24 priate mechanism could be identified to allow a 25 similar exchange of information to give the deVerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00134 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 135 •HR 3364 IH 1 pository institutions and credit unions a better 2 understanding of whether an individual money 3 services business is adequately meeting its anti- 4 money laundering and counter-terror financing 5 obligations to combat money laundering, the fi- 6 nancing of terror, or related illicit finance. 7 (2) PUBLIC INPUT.—The Secretary should so- 8 licit and consider public input as appropriate in de- 9 veloping the study required under subsection (a). 10 (b) REPORT.—Not later than 270 days after the date 11 of the enactment of this Act, the Secretary shall submit 12 to the Committee on Banking, Housing, and Urban Af- 13 fairs and the Committee on Foreign Relations of the Sen- 14 ate and the Committee on Financial Services and the 15 Committee on Foreign Affairs of the House of Representa- 16 tives a report that contains all findings and determina- 17 tions made in carrying out the study required under sub- 18 section (a). 19 SEC. 272. SENSE OF CONGRESS ON INTERNATIONAL CO- 20 OPERATION REGARDING TERRORIST FINANC- 21 ING INTELLIGENCE. 22 It is the sense of Congress that the Secretary, acting 23 through the Under Secretary for Terrorism and Financial 24 Crimes, should intensify work with foreign partners to 25 help the foreign partners develop intelligence analytic caVerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00135 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 136 •HR 3364 IH 1 pacities, in a financial intelligence unit, finance ministry, 2 or other appropriate agency, that are— 3 (1) commensurate to the threats faced by the 4 foreign partner; and 5 (2) designed to better integrate intelligence ef- 6 forts with the anti-money laundering and counter- 7 terrorist financing regimes of the foreign partner. 8 SEC. 273. EXAMINING THE COUNTER-TERROR FINANCING 9 ROLE OF THE DEPARTMENT OF THE TREAS- 10 URY IN EMBASSIES. 11 Not later than 180 days after the date of the enact- 12 ment of this Act, the Secretary shall submit to the Com- 13 mittee on Banking, Housing, and Urban Affairs and the 14 Committee on Foreign Relations of the Senate and the 15 Committee on Financial Services and the Committee on 16 Foreign Affairs of the House of Representatives a report 17 that contains— 18 (1) a list of the United States embassies in 19 which a full-time Department of the Treasury finan- 20 cial attache´ is stationed and a description of how the 21 interests of the Department of the Treasury relating 22 to terrorist financing and money laundering are ad- 23 dressed (via regional attache´s or otherwise) at 24 United States embassies where no such attache´s are 25 present; VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00136 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 137 •HR 3364 IH 1 (2) a list of the United States embassies at 2 which the Department of the Treasury has assigned 3 a technical assistance advisor from the Office of 4 Technical Assistance of the Department of the 5 Treasury; 6 (3) an overview of how Department of the 7 Treasury financial attache´s and technical assistance 8 advisors assist in efforts to counter illicit finance, to 9 include money laundering, terrorist financing, and 10 proliferation financing; and 11 (4) an overview of patterns, trends, or other 12 issues identified by the Department of the Treasury 13 and whether resources are sufficient to address these 14 issues. 15 SEC. 274. INCLUSION OF SECRETARY OF THE TREASURY ON 16 THE NATIONAL SECURITY COUNCIL. 17 (a) IN GENERAL.—Section 101(c)(1) of the National 18 Security Act of 1947 (50 U.S.C. 3021(c)(1)) is amended 19 by inserting ‘‘the Secretary of the Treasury,’’ before ‘‘and 20 such other officers’’. 21 (b) RULE OF CONSTRUCTION.—The amendment 22 made by subsection (a) may not be construed to authorize 23 the National Security Council to have a professional staff 24 level that exceeds the limitation set forth under section VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00137 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 138 •HR 3364 IH 1 101(e)(3) of the National Security Act of 1947 (50 U.S.C. 2 3021(e)(3)). 3 SEC. 275. INCLUSION OF ALL FUNDS. 4 (a) IN GENERAL.—Section 5326 of title 31, United 5 States Code, is amended— 6 (1) in the heading of such section, by striking 7 ‘‘coin and currency’’; 8 (2) in subsection (a)— 9 (A) by striking ‘‘subtitle and’’ and insert- 10 ing ‘‘subtitle or to’’; and 11 (B) in paragraph (1)(A), by striking 12 ‘‘United States coins or currency (or such other 13 monetary instruments as the Secretary may de- 14 scribe in such order)’’ and inserting ‘‘funds (as 15 the Secretary may describe in such order),’’; 16 and 17 (3) in subsection (b)— 18 (A) in paragraph (1)(A), by striking ‘‘coins 19 or currency (or monetary instruments)’’ and in- 20 serting ‘‘funds’’; and 21 (B) in paragraph (2), by striking ‘‘coins or 22 currency (or such other monetary instruments 23 as the Secretary may describe in the regulation 24 or order)’’ and inserting ‘‘funds (as the SecVerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00138 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 139 •HR 3364 IH 1 retary may describe in the regulation or 2 order)’’. 3 (b) CLERICAL AMENDMENT.—The table of contents 4 for chapter 53 of title 31, United States Code, is amended 5 in the item relating to section 5326 by striking ‘‘coin and 6 currency’’. 7 PART 3—DEFINITIONS 8 SEC. 281. DEFINITIONS. 9 In this subtitle— 10 (1) the term ‘‘appropriate congressional com- 11 mittees’’ means— 12 (A) the Committee on Banking, Housing, 13 and Urban Affairs, the Committee on Foreign 14 Relations, Committee on Armed Services, Com- 15 mittee on the Judiciary, Committee on Home- 16 land Security and Governmental Affairs, and 17 the Select Committee on Intelligence of the 18 Senate; and 19 (B) the Committee on Financial Services, 20 the Committee on Foreign Affairs, the Com- 21 mittee on Armed Services, the Committee on 22 the Judiciary, Committee on Homeland Secu- 23 rity, and the Permanent Select Committee on 24 Intelligence of the House of Representatives; VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00139 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 140 •HR 3364 IH 1 (2) the term ‘‘appropriate Federal banking 2 agencies’’ has the meaning given the term in section 3 3 of the Federal Deposit Insurance Act (12 U.S.C. 4 1813); 5 (3) the term ‘‘Bank Secrecy Act’’ means— 6 (A) section 21 of the Federal Deposit In- 7 surance Act (12 U.S.C. 1829b); 8 (B) chapter 2 of title I of Public Law 91– 9 508 (12 U.S.C. 1951 et seq.); and 10 (C) subchapter II of chapter 53 of title 31, 11 United States Code; 12 (4) the term ‘‘Federal functional regulator’’ has 13 the meaning given that term in section 509 of the 14 Gramm-Leach-Bliley Act (15 U.S.C. 6809); 15 (5) the term ‘‘illicit finance’’ means the financ- 16 ing of terrorism, narcotics trafficking, or prolifera- 17 tion, money laundering, or other forms of illicit fi- 18 nancing domestically or internationally, as defined 19 by the President; 20 (6) the term ‘‘money services business’’ has the 21 meaning given the term under section 1010.100 of 22 title 31, Code of Federal Regulations; 23 (7) the term ‘‘Secretary’’ means the Secretary 24 of the Treasury; and VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00140 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 141 •HR 3364 IH 1 (8) the term ‘‘State’’ means each of the several 2 States, the District of Columbia, and each territory 3 or possession of the United States. 4 Subtitle D—Rule of Construction 5 SEC. 291. RULE OF CONSTRUCTION. 6 Nothing in this title or the amendments made by this 7 title (other than sections 216 and 236(b)) shall be con- 8 strued to limit the authority of the President under the 9 International Emergency Economic Powers Act (50 10 U.S.C. 1701 et seq.). 11 SEC. 292. SENSE OF CONGRESS ON THE STRATEGIC IMPOR- 12 TANCE OF ARTICLE 5 OF THE NORTH ATLAN- 13 TIC TREATY. 14 (a) FINDINGS.—Congress makes the following find- 15 ings: 16 (1) The principle of collective defense of the 17 North Atlantic Treaty Organization (NATO) is im- 18 mortalized in Article 5 of the North Atlantic Treaty 19 in which members pledge that ‘‘an armed attack 20 against one or more of them in Europe or North 21 America shall be considered an attack against them 22 all’’. 23 (2) For almost 7 decades, the principle of col- 24 lective defense has effectively served as a strategic 25 deterrent for the member nations of the North AtVerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00141 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 142 •HR 3364 IH 1 lantic Treaty Organization and provided stability 2 throughout the world, strengthening the security of 3 the United States and all 28 other member nations. 4 (3) Following the September 11, 2001, terrorist 5 attacks in New York, Washington, and Pennsyl- 6 vania, the Alliance agreed to invoke Article 5 for the 7 first time, affirming its commitment to collective de- 8 fense. 9 (4) Countries that are members of the North 10 Atlantic Treaty Organization have made historic 11 contributions and sacrifices while combating ter- 12 rorism in Afghanistan through the International Se- 13 curity Assistance Force and the Resolute Support 14 Mission. 15 (5) The recent attacks in the United Kingdom 16 underscore the importance of an international alli- 17 ance to combat hostile nation states and terrorist 18 groups. 19 (6) At the 2014 NATO summit in Wales, the 20 member countries of the North Atlantic Treaty Or- 21 ganization decided that all countries that are mem- 22 bers of NATO would spend an amount equal to 2 23 percent of their gross domestic product on defense 24 by 2024. VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00142 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 143 •HR 3364 IH 1 (7) Collective defense unites the 29 members of 2 the North Atlantic Treaty Organization, each com- 3 mitting to protecting and supporting one another 4 from external adversaries, which bolsters the North 5 Atlantic Alliance. 6 (b) SENSE OF CONGRESS.—It is the sense of Con- 7 gress— 8 (1) to express the vital importance of Article 5 9 of the North Atlantic Treaty, the charter of the 10 North Atlantic Treaty Organization, as it continues 11 to serve as a critical deterrent to potential hostile 12 nations and terrorist organizations; 13 (2) to remember the first and only invocation of 14 Article 5 by the North Atlantic Treaty Organization 15 in support of the United States after the terrorist 16 attacks of September 11, 2001; 17 (3) to affirm that the United States remains 18 fully committed to the North Atlantic Treaty Orga- 19 nization and will honor its obligations enshrined in 20 Article 5; and 21 (4) to condemn any threat to the sovereignty, 22 territorial integrity, freedom, or democracy of any 23 country that is a member of the North Atlantic 24 Treaty Organization. VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00143 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 144 •HR 3364 IH 1 TITLE III—SANCTIONS WITH 2 RESPECT TO NORTH KOREA 3 SEC. 301. SHORT TITLE. 4 This title may be cited as the ‘‘Korean Interdiction 5 and Modernization of Sanctions Act’’. 6 SEC. 302. DEFINITIONS. 7 (a) AMENDMENTS TO DEFINITIONS IN THE NORTH 8 KOREA SANCTIONS AND POLICY ENHANCEMENT ACT OF 9 2016.— 10 (1) APPLICABLE EXECUTIVE ORDER.—Section 11 3(1)(A) of the North Korea Sanctions and Policy 12 Enhancement Act of 2016 (22 U.S.C. 9202(1)(A)) 13 is amended— 14 (A) by striking ‘‘or Executive Order 15 13694’’ and inserting ‘‘Executive Order No. 16 13694’’; and 17 (B) by inserting ‘‘or Executive Order No. 18 13722 (50 U.S.C. 1701 note; relating to block- 19 ing the property of the Government of North 20 Korea and the Workers’ Party of Korea, and 21 Prohibiting Certain Transactions With Respect 22 to North Korea),’’ before ‘‘to the extent’’. 23 (2) APPLICABLE UNITED NATIONS SECURITY 24 COUNCIL RESOLUTION.—Section 3(2)(A) of the 25 North Korea Sanctions and Policy Enhancement Act VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00144 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 145 •HR 3364 IH 1 of 2016 (22 U.S.C. 9202(2)(A)) is amended by 2 striking ‘‘or 2094 (2013)’’ and inserting ‘‘2094 3 (2013), 2270 (2016), or 2321 (2016)’’. 4 (3) FOREIGN PERSON.—Section 3 of the North 5 Korea Sanctions and Policy Enhancement Act of 6 2016 (22 U.S.C. 9202) is amended— 7 (A) by redesignating paragraphs (5) 8 through (14) as paragraphs (6) through (15), 9 respectively; and 10 (B) by inserting after paragraph (4) the 11 following new paragraph: 12 ‘‘(5) FOREIGN PERSON.—The term ‘foreign per- 13 son’ means— 14 ‘‘(A) an individual who is not a United 15 States citizen or an alien lawfully admitted for 16 permanent residence to the United States; or 17 ‘‘(B) an entity that is not a United States 18 person.’’. 19 (4) LUXURY GOODS.—Paragraph (9) of section 20 3 of the North Korea Sanctions and Policy En- 21 hancement Act of 2016 (22 U.S.C. 9202), as redes- 22 ignated by paragraph (3) of this subsection, is 23 amended— 24 (A) in subparagraph (A), by striking 25 ‘‘and’’ at the end; VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00145 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 146 •HR 3364 IH 1 (B) in subparagraph (B), by striking the 2 period at the end and inserting ‘‘; and’’; and 3 (C) by adding at the end the following new 4 subparagraph: 5 ‘‘(C) also includes any items so designated 6 under an applicable United Nations Security 7 Council resolution.’’. 8 (5) NORTH KOREAN PERSON.—Section 3 of the 9 North Korea Sanctions and Policy Enhancement Act 10 of 2016 (22 U.S.C. 9202), as amended by para- 11 graph (3) of this subsection, is further amended— 12 (A) by redesignating paragraphs (13) 13 through (15) as paragraphs (14) through (16), 14 respectively; and 15 (B) by inserting after paragraph (12) the 16 following new paragraph: 17 ‘‘(13) NORTH KOREAN PERSON.—The term 18 ‘North Korean person’ means— 19 ‘‘(A) a North Korean citizen or national; 20 or 21 ‘‘(B) an entity owned or controlled by the 22 Government of North Korea or by a North Ko- 23 rean citizen or national.’’. 24 (b) DEFINITIONS FOR PURPOSES OF THIS ACT.—In 25 this title: VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00146 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 147 •HR 3364 IH 1 (1) APPLICABLE UNITED NATIONS SECURITY 2 COUNCIL RESOLUTION; LUXURY GOODS.—The terms 3 ‘‘applicable United Nations Security Council resolu- 4 tion’’ and ‘‘luxury goods’’ have the meanings given 5 those terms, respectively, in section 3 of the North 6 Korea Sanctions and Policy Enhancement Act of 7 2016 (22 U.S.C. 9202), as amended by subsection 8 (a). 9 (2) APPROPRIATE CONGRESSIONAL COMMIT- 10 TEES; GOVERNMENT OF NORTH KOREA; UNITED 11 STATES PERSON.—The terms ‘‘appropriate congres- 12 sional committees’’, ‘‘Government of North Korea’’, 13 and ‘‘United States person’’ have the meanings 14 given those terms, respectively, in section 3 of the 15 North Korea Sanctions and Policy Enhancement Act 16 of 2016 (22 U.S.C. 9202). 17 (3) FOREIGN PERSON; NORTH KOREAN PER- 18 SON.—The terms ‘‘foreign person’’ and ‘‘North Ko- 19 rean person’’ have the meanings given those terms, 20 respectively, in paragraph (5) and paragraph (13) of 21 section 3 of the North Korea Sanctions and Policy 22 Enhancement Act of 2016 (22 U.S.C. 9202(5) and 23 9202(13)), as added by subsection (a). 24 (4) PROHIBITED WEAPONS PROGRAM.—The 25 term ‘‘prohibited weapons program’’ means— VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00147 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 148 •HR 3364 IH 1 (A) any program related to the develop- 2 ment of nuclear, chemical, or biological weap- 3 ons, and their means of delivery, including bal- 4 listic missiles; and 5 (B) any program to develop related mate- 6 rials with respect to a program described in 7 subparagraph (A). 8 Subtitle A—Sanctions to Enforce 9 and Implement United Nations 10 Security Council Sanctions 11 Against North Korea 12 SEC. 311. MODIFICATION AND EXPANSION OF REQUIRE- 13 MENTS FOR THE DESIGNATION OF PERSONS. 14 (a) EXPANSION OF MANDATORY DESIGNATIONS.— 15 Section 104(a) of the North Korea Sanctions and Policy 16 Enhancement Act of 2016 (22 U.S.C. 9214(a)) is amend- 17 ed— 18 (1) in paragraph (9), by striking ‘‘; or’’ and in- 19 serting ‘‘or any defense article or defense service (as 20 such terms are defined in section 47 of the Arms 21 Export Control Act (22 U.S.C. 2794));’’; 22 (2) by redesignating paragraph (10) as para- 23 graph (15); 24 (3) by inserting after paragraph (9) the fol- 25 lowing new paragraphs: VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00148 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 149 •HR 3364 IH 1 ‘‘(10) knowingly, directly or indirectly, pur- 2 chases or otherwise acquires from North Korea any 3 significant amounts of gold, titanium ore, vanadium 4 ore, copper, silver, nickel, zinc, or rare earth min- 5 erals; 6 ‘‘(11) knowingly, directly or indirectly, sells or 7 transfers to North Korea any significant amounts of 8 rocket, aviation, or jet fuel (except for use by a civil- 9 ian passenger aircraft outside North Korea, exclu- 10 sively for consumption during its flight to North 11 Korea or its return flight); 12 ‘‘(12) knowingly, directly or indirectly, provides 13 significant amounts of fuel or supplies, provides bun- 14 kering services, or facilitates a significant trans- 15 action or transactions to operate or maintain, a ves- 16 sel or aircraft that is designated under an applicable 17 Executive order or an applicable United Nations Se- 18 curity Council resolution, or that is owned or con- 19 trolled by a person designated under an applicable 20 Executive order or applicable United Nations Secu- 21 rity Council resolution; 22 ‘‘(13) knowingly, directly or indirectly, insures, 23 registers, facilitates the registration of, or maintains 24 insurance or a registration for, a vessel owned or 25 controlled by the Government of North Korea, exVerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00149 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 150 •HR 3364 IH 1 cept as specifically approved by the United Nations 2 Security Council; 3 ‘‘(14) knowingly, directly or indirectly, main- 4 tains a correspondent account (as defined in section 5 201A(d)(1)) with any North Korean financial insti- 6 tution, except as specifically approved by the United 7 Nations Security Council; or’’; and 8 (4) in paragraph (15), as so redesignated, by 9 striking ‘‘(9)’’ and inserting ‘‘(14)’’. 10 (b) EXPANSION OF ADDITIONAL DISCRETIONARY 11 DESIGNATIONS.— 12 (1) IN GENERAL.—Section 104(b)(1) of the 13 North Korea Sanctions and Policy Enhancement Act 14 of 2016 (22 U.S.C. 9214(b)(1)) is amended— 15 (A) in subparagraph (A), by striking ‘‘pur- 16 suant to an applicable United Nations Security 17 Council resolution;’’ and inserting the following: 18 ‘‘pursuant to— 19 ‘‘(i) an applicable United Nations Se- 20 curity Council resolution; 21 ‘‘(ii) any regulation promulgated 22 under section 404; or 23 ‘‘(iii) any applicable Executive 24 order;’’; VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00150 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 151 •HR 3364 IH 1 (B) in subparagraph (B)(iii), by striking 2 ‘‘or’’ at the end; 3 (C) in subparagraph (C), by striking the 4 period at the end and inserting a semicolon; 5 and 6 (D) by adding at the end the following new 7 subparagraphs: 8 ‘‘(D) knowingly, directly or indirectly, pur- 9 chased or otherwise acquired from the Govern- 10 ment of North Korea significant quantities of 11 coal, iron, or iron ore, in excess of the limita- 12 tions provided in applicable United Nations Se- 13 curity Council resolutions; 14 ‘‘(E) knowingly, directly or indirectly, pur- 15 chased or otherwise acquired significant types 16 or amounts of textiles from the Government of 17 North Korea; 18 ‘‘(F) knowingly facilitated a significant 19 transfer of funds or property of the Govern- 20 ment of North Korea that materially contrib- 21 utes to any violation of an applicable United 22 National Security Council resolution; 23 ‘‘(G) knowingly, directly or indirectly, fa- 24 cilitated a significant transfer to or from the 25 Government of North Korea of bulk cash, preVerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00151 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 152 •HR 3364 IH 1 cious metals, gemstones, or other stores of 2 value not described under subsection (a)(10); 3 ‘‘(H) knowingly, directly or indirectly, sold, 4 transferred, or otherwise provided significant 5 amounts of crude oil, condensates, refined pe- 6 troleum, other types of petroleum or petroleum 7 byproducts, liquified natural gas, or other nat- 8 ural gas resources to the Government of North 9 Korea (except for heavy fuel oil, gasoline, or 10 diesel fuel for humanitarian use or as excepted 11 under subsection (a)(11)); 12 ‘‘(I) knowingly, directly or indirectly, en- 13 gaged in, facilitated, or was responsible for the 14 online commercial activities of the Government 15 of North Korea, including online gambling; 16 ‘‘(J) knowingly, directly or indirectly, pur- 17 chased or otherwise acquired fishing rights 18 from the Government of North Korea; 19 ‘‘(K) knowingly, directly or indirectly, pur- 20 chased or otherwise acquired significant types 21 or amounts of food or agricultural products 22 from the Government of North Korea; 23 ‘‘(L) knowingly, directly or indirectly, en- 24 gaged in, facilitated, or was responsible for the 25 exportation of workers from North Korea in a VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00152 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 153 •HR 3364 IH 1 manner intended to generate significant rev- 2 enue, directly or indirectly, for use by the Gov- 3 ernment of North Korea or by the Workers’ 4 Party of Korea; 5 ‘‘(M) knowingly conducted a significant 6 transaction or transactions in North Korea’s 7 transportation, mining, energy, or financial 8 services industries; or 9 ‘‘(N) except as specifically approved by the 10 United Nations Security Council, and other 11 than through a correspondent account as de- 12 scribed in subsection (a)(14), knowingly facili- 13 tated the operation of any branch, subsidiary, 14 or office of a North Korean financial institu- 15 tion.’’. 16 (2) EFFECTIVE DATE.—The amendments made 17 by paragraph (1) take effect on the date of the en- 18 actment of this Act and apply with respect to con- 19 duct described in subparagraphs (D) through (N) of 20 section 104(b)(1) of the North Korea Sanctions and 21 Policy Enhancement Act of 2016, as added by para- 22 graph (1), engaged in on or after such date of enact- 23 ment. 24 (c) MANDATORY AND DISCRETIONARY ASSET 25 BLOCKING.—Section 104(c) of the North Korea Sanctions VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00153 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 154 •HR 3364 IH 1 and Policy Enhancement Act of 2016 (22 U.S.C. 9214(c)) 2 is amended— 3 (1) by striking ‘‘of a designated person’’ and in- 4 serting ‘‘of a person designated under subsection 5 (a)’’; 6 (2) by striking ‘‘The President’’ and inserting 7 the following: 8 ‘‘(1) MANDATORY ASSET BLOCKING.—The 9 President’’; and 10 (3) by adding at the end the following new 11 paragraph: 12 ‘‘(2) DISCRETIONARY ASSET BLOCKING.—The 13 President may also exercise such powers, in the 14 same manner and to the same extent described in 15 paragraph (1), with respect to a person designated 16 under subsection (b).’’. 17 (d) DESIGNATION OF ADDITIONAL PERSONS.— 18 (1) IN GENERAL.—Not later than 180 days 19 after the date of the enactment of this Act, the 20 President shall submit to the appropriate congres- 21 sional committees a report including a determination 22 as to whether reasonable grounds exist, and an ex- 23 planation of the reasons for any determination that 24 such grounds do not exist, to designate, pursuant to 25 section 104 of the North Korea Sanctions and Policy VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00154 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 155 •HR 3364 IH 1 Enhancement Act of 2016 (22 U.S.C. 9214), as 2 amended by this section, each of the following: 3 (A) The Korea Shipowners’ Protection and 4 Indemnity Association, a North Korean insur- 5 ance company, with respect to facilitating im- 6 ports, exports, and reexports of arms and re- 7 lated materiel to and from North Korea, or for 8 other activities prohibited by such section 104. 9 (B) Chinpo Shipping Company (Private) 10 Limited, a Singapore corporation, with respect 11 to facilitating imports, exports, and reexports of 12 arms and related materiel to and from North 13 Korea. 14 (C) The Central Bank of the Democratic 15 People’s Republic of Korea, with respect to the 16 sale of gold to, the receipt of gold from, or the 17 import or export of gold by the Government of 18 North Korea. 19 (D) Kumgang Economic Development Cor- 20 poration (KKG), with respect to being an entity 21 controlled by Bureau 39 of the Workers’ Party 22 of the Government of North Korea. 23 (E) Sam Pa, also known as Xu Jinghua, 24 Xu Songhua, Sa Muxu, Samo, Sampa, or Sam 25 King, and any entities owned or controlled by VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00155 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 156 •HR 3364 IH 1 such individual, with respect to transactions 2 with KKG. 3 (F) The Chamber of Commerce of the 4 Democratic People’s Republic of Korea, with re- 5 spect to the exportation of workers in violation 6 of section 104(a)(5) or of section 104(b)(1)(M) 7 of such Act, as amended by subsection (b) of 8 this section. 9 (2) FORM.—The report submitted under para- 10 graph (1) may contain a classified annex. 11 SEC. 312. PROHIBITION ON INDIRECT CORRESPONDENT 12 ACCOUNTS. 13 (a) IN GENERAL.—Title II of the North Korea Sanc- 14 tions and Policy Enhancement Act of 2016 (22 U.S.C. 15 9221 et seq.) is amended by inserting after section 201 16 the following new section: 17 ‘‘SEC. 201A. PROHIBITION ON INDIRECT CORRESPONDENT 18 ACCOUNTS. 19 ‘‘(a) IN GENERAL.—Except as provided in subsection 20 (b), if a United States financial institution has or obtains 21 knowledge that a correspondent account established, 22 maintained, administered, or managed by that institution 23 for a foreign financial institution is being used by the for- 24 eign financial institution to provide significant financial 25 services indirectly to any person, foreign government, or VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00156 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 157 •HR 3364 IH 1 financial institution designated under section 104, the 2 United States financial institution shall ensure that such 3 correspondent account is no longer used to provide such 4 services. 5 ‘‘(b) EXCEPTION.—A United States financial institu- 6 tion is authorized to process transfers of funds to or from 7 North Korea, or for the direct or indirect benefit of any 8 person, foreign government, or financial institution that 9 is designated under section 104, only if the transfer— 10 ‘‘(1) arises from, and is ordinarily incident and 11 necessary to give effect to, an underlying transaction 12 that has been authorized by a specific or general li- 13 cense issued by the Secretary of the Treasury; and 14 ‘‘(2) does not involve debiting or crediting a 15 North Korean account. 16 ‘‘(c) DEFINITIONS.—In this section: 17 ‘‘(1) CORRESPONDENT ACCOUNT.—The term 18 ‘correspondent account’ has the meaning given that 19 term in section 5318A of title 31, United States 20 Code. 21 ‘‘(2) UNITED STATES FINANCIAL INSTITU- 22 TION.—The term ‘United States financial institu- 23 tion’ means has the meaning given that term in sec- 24 tion 510.310 of title 31, Code of Federal RegulaVerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00157 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 158 •HR 3364 IH 1 tions, as in effect on the date of the enactment of 2 this section. 3 ‘‘(3) FOREIGN FINANCIAL INSTITUTION.—The 4 term ‘foreign financial institution’ has the meaning 5 given that term in section 1010.605 of title 31, Code 6 of Federal Regulations, as in effect on the date of 7 the enactment of this section.’’. 8 (b) CLERICAL AMENDMENT.—The table of contents 9 in section 1(b) of the North Korea Sanctions and Policy 10 Enhancement Act of 2016 is amended by inserting after 11 the item relating to section 201 the following new item: ‘‘Sec. 201A. Prohibition on indirect correspondent accounts.’’. 12 SEC. 313. LIMITATIONS ON FOREIGN ASSISTANCE TO NON- 13 COMPLIANT GOVERNMENTS. 14 Section 203 of the North Korea Sanctions and Policy 15 Enhancement Act of 2016 (22 U.S.C. 9223) is amended— 16 (1) in subsection (b)— 17 (A) in the heading, by striking ‘‘TRANS- 18 ACTIONS IN LETHAL MILITARY EQUIPMENT’’ 19 and inserting ‘‘TRANSACTIONS IN DEFENSE 20 ARTICLES OR DEFENSE SERVICES’’; 21 (B) in paragraph (1), by striking ‘‘that 22 provides lethal military equipment to the Gov- 23 ernment of North Korea’’ and inserting ‘‘that 24 provides to or receives from the Government of 25 North Korea a defense article or defense servVerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00158 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 159 •HR 3364 IH 1 ice, as such terms are defined in section 47 of 2 the Arms Export Control Act (22 U.S.C. 2794), 3 if the President determines that a significant 4 type or amount of such article or service has 5 been so provided or received’’; and 6 (C) in paragraph (2), by striking ‘‘1 year’’ 7 and inserting ‘‘2 years’’; 8 (2) in subsection (d), by striking ‘‘or emer- 9 gency’’ and inserting ‘‘maternal and child health, 10 disease prevention and response, or’’; and 11 (3) by adding at the end the following new sub- 12 section: 13 ‘‘(e) REPORT ON ARMS TRAFFICKING INVOLVING 14 NORTH KOREA.— 15 ‘‘(1) IN GENERAL.—Not later than 180 days 16 after the date of the enactment of this subsection, 17 and annually thereafter for 5 years, the Secretary of 18 State shall submit to the appropriate congressional 19 committees a report that specifically describes the 20 compliance of foreign countries and other foreign ju- 21 risdictions with the requirement to curtail the trade 22 described in subsection (b)(1). 23 ‘‘(2) FORM.—The report required under para- 24 graph (1) shall be submitted in unclassified form but 25 may contain a classified annex.’’. VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00159 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 160 •HR 3364 IH 1 SEC. 314. AMENDMENTS TO ENHANCE INSPECTION AU- 2 THORITIES. 3 Title II of the North Korea Sanctions and Policy En- 4 hancement Act of 2016 (22 U.S.C. 9221 et seq.), as 5 amended by section 102 of this Act, is further amended 6 by striking section 205 and inserting the following: 7 ‘‘SEC. 205. ENHANCED INSPECTION AUTHORITIES. 8 ‘‘(a) REPORT REQUIRED.— 9 ‘‘(1) IN GENERAL.—Not later than 180 days 10 after the date of the enactment of this section, and 11 annually thereafter for 5 years, the President shall 12 submit to the appropriate congressional committees 13 a report— 14 ‘‘(A) identifying the operators of foreign 15 sea ports and airports that knowingly— 16 ‘‘(i) significantly fail to implement or 17 enforce regulations to inspect ships, air- 18 craft, cargo, or conveyances in transit to or 19 from North Korea, as required by applica- 20 ble United Nations Security Council reso- 21 lutions; 22 ‘‘(ii) facilitate the transfer, trans- 23 shipment, or conveyance of significant 24 types or quantities of cargo, vessels, or air- 25 craft owned or controlled by persons desVerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00160 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 161 •HR 3364 IH 1 ignated under applicable United Nations 2 Security Council resolutions; or 3 ‘‘(iii) facilitate any of the activities de- 4 scribed in section 104(a); 5 ‘‘(B) describing the extent to which the re- 6 quirements of applicable United Nations Secu- 7 rity Council resolutions to de-register any vessel 8 owned, controlled, or operated by or on behalf 9 of the Government of North Korea have been 10 implemented by other foreign countries; 11 ‘‘(C) describing the compliance of the Is- 12 lamic Republic of Iran with the sanctions man- 13 dated in applicable United Nations Security 14 Council resolutions; 15 ‘‘(D) identifying vessels, aircraft, and con- 16 veyances owned or controlled by the Reconnais- 17 sance General Bureau of the Workers’ Party of 18 Korea; and 19 ‘‘(E) describing the diplomatic and en- 20 forcement efforts by the President to secure the 21 full implementation of the applicable United 22 Nations Security Council resolutions, as de- 23 scribed in subparagraphs (A) through (C). VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00161 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 162 •HR 3364 IH 1 ‘‘(2) FORM.—The report required under para- 2 graph (1) shall be submitted in unclassified form but 3 may contain a classified annex. 4 ‘‘(b) SPECIFIC FINDINGS.—Each report required 5 under subsection (a) shall include specific findings with 6 respect to the following ports and airports: 7 ‘‘(1) The ports of Dandong, Dalian, and any 8 other port in the People’s Republic of China that the 9 President deems appropriate. 10 ‘‘(2) The ports of Abadan, Bandar-e-Abbas, 11 Chabahar, Bandar-e-Khomeini, Bushehr Port, 12 Asaluyeh Port, Kish, Kharg Island, Bandar-e-Lenge, 13 and Khorramshahr, and Tehran Imam Khomeini 14 International Airport, in the Islamic Republic of 15 Iran. 16 ‘‘(3) The ports of Nakhodka, Vanino, and Vlad- 17 ivostok, in the Russian Federation. 18 ‘‘(4) The ports of Latakia, Banias, and 19 Tartous, and Damascus International Airport, in the 20 Syrian Arab Republic. 21 ‘‘(c) ENHANCED SECURITY TARGETING REQUIRE- 22 MENTS.— 23 ‘‘(1) IN GENERAL.—Except as provided in para- 24 graph (2), the Secretary of Homeland Security may, 25 using a layered approach, require enhanced screenVerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00162 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 163 •HR 3364 IH 1 ing procedures to determine whether physical inspec- 2 tions are warranted of any cargo bound for or land- 3 ed in the United States that— 4 ‘‘(A) has been transported through a sea 5 port or airport the operator of which has been 6 identified by the President in accordance with 7 subsection (a)(1) as having repeatedly failed to 8 comply with applicable United Nations Security 9 Council resolutions; 10 ‘‘(B) is aboard a vessel or aircraft, or with- 11 in a conveyance that has, within the last 365 12 days, entered the territory or waters of North 13 Korea, or landed in any of the sea ports or air- 14 ports of North Korea; or 15 ‘‘(C) is registered by a country or jurisdic- 16 tion whose compliance has been identified by 17 the President as deficient pursuant to sub- 18 section (a)(2). 19 ‘‘(2) EXCEPTION FOR FOOD, MEDICINE, AND 20 HUMANITARIAN SHIPMENTS.—Paragraph (1) shall 21 not apply to any vessel, aircraft, or conveyance that 22 has entered the territory or waters of North Korea, 23 or landed in any of the sea ports or airports of 24 North Korea, exclusively for the purposes described 25 in section 208(b)(3)(B), or to import food, medicine, VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00163 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 164 •HR 3364 IH 1 or supplies into North Korea to meet the humani- 2 tarian needs of the North Korean people. 3 ‘‘(d) SEIZURE AND FORFEITURE.—A vessel, aircraft, 4 or conveyance used to facilitate any of the activities de- 5 scribed in section 104(a) under the jurisdiction of the 6 United States may be seized and forfeited, or subject to 7 forfeiture, under— 8 ‘‘(1) chapter 46 of title 18, United States Code; 9 or 10 ‘‘(2) part V of title IV of the Tariff Act of 1930 11 (19 U.S.C. 1581 et seq.).’’. 12 SEC. 315. ENFORCING COMPLIANCE WITH UNITED NATIONS 13 SHIPPING SANCTIONS AGAINST NORTH 14 KOREA. 15 (a) IN GENERAL.—The Ports and Waterways Safety 16 Act (33 U.S.C. 1221 et seq.) is amended by adding at 17 the end the following new section: 18 ‘‘SEC. 16. PROHIBITION ON ENTRY AND OPERATION. 19 ‘‘(a) PROHIBITION.— 20 ‘‘(1) IN GENERAL.—Except as otherwise pro- 21 vided in this section, no vessel described in sub- 22 section (b) may enter or operate in the navigable 23 waters of the United States or transfer cargo in any 24 port or place under the jurisdiction of the United 25 States. VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00164 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 165 •HR 3364 IH 1 ‘‘(2) LIMITATIONS ON APPLICATION.— 2 ‘‘(A) IN GENERAL.—The prohibition under 3 paragraph (1) shall not apply with respect to— 4 ‘‘(i) a vessel described in subsection 5 (b)(1), if the Secretary of State determines 6 that— 7 ‘‘(I) the vessel is owned or oper- 8 ated by or on behalf of a country the 9 government of which the Secretary of 10 State determines is closely cooperating 11 with the United States with respect to 12 implementing the applicable United 13 Nations Security Council resolutions 14 (as such term is defined in section 3 15 of the North Korea Sanctions and 16 Policy Enhancement Act of 2016); or 17 ‘‘(II) it is in the national security 18 interest not to apply the prohibition to 19 such vessel; or 20 ‘‘(ii) a vessel described in subsection 21 (b)(2), if the Secretary of State determines 22 that the vessel is no longer registered as 23 described in that subsection. 24 ‘‘(B) NOTICE.—Not later than 15 days 25 after making a determination under subparaVerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00165 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 166 •HR 3364 IH 1 graph (A), the Secretary of State shall submit 2 to the Committee on Foreign Affairs and the 3 Committee on Transportation and Infrastruc- 4 ture of the House of Representatives and the 5 Committee on Foreign Relations and the Com- 6 mittee on Commerce, Science, and Transpor- 7 tation of the Senate written notice of the deter- 8 mination and the basis upon which the deter- 9 mination was made. 10 ‘‘(C) PUBLICATION.—The Secretary of 11 State shall publish a notice in the Federal Reg- 12 ister of each determination made under sub- 13 paragraph (A). 14 ‘‘(b) VESSELS DESCRIBED.—A vessel referred to in 15 subsection (a) is a foreign vessel for which a notice of ar- 16 rival is required to be filed under section 4(a)(5), and 17 that— 18 ‘‘(1) is on the most recent list of vessels pub- 19 lished in Federal Register under subsection (c)(2); 20 or 21 ‘‘(2) more than 180 days after the publication 22 of such list, is knowingly registered, pursuant to the 23 1958 Convention on the High Seas entered into 24 force on September 30, 1962, by a government the 25 agents or instrumentalities of which are maintaining VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00166 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 167 •HR 3364 IH 1 a registration of a vessel that is included on such 2 list. 3 ‘‘(c) INFORMATION AND PUBLICATION.—The Sec- 4 retary of the department in which the Coast Guard is op- 5 erating, with the concurrence of the Secretary of State, 6 shall— 7 ‘‘(1) maintain timely information on the reg- 8 istrations of all foreign vessels over 300 gross tons 9 that are known to be— 10 ‘‘(A) owned or operated by or on behalf of 11 the Government of North Korea or a North Ko- 12 rean person; 13 ‘‘(B) owned or operated by or on behalf of 14 any country in which a sea port is located, the 15 operator of which the President has identified 16 in the most recent report submitted under sec- 17 tion 205(a)(1)(A) of the North Korea Sanctions 18 and Policy Enhancement Act of 2016; or 19 ‘‘(C) owned or operated by or on behalf of 20 any country identified by the President as a 21 country that has not complied with the applica- 22 ble United Nations Security Council resolutions 23 (as such term is defined in section 3 of such 24 Act); and VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00167 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 168 •HR 3364 IH 1 ‘‘(2) not later than 180 days after the date of 2 the enactment of this section, and periodically there- 3 after, publish in the Federal Register a list of the 4 vessels described in paragraph (1). 5 ‘‘(d) NOTIFICATION OF GOVERNMENTS.— 6 ‘‘(1) IN GENERAL.—The Secretary of State 7 shall notify each government, the agents or instru- 8 mentalities of which are maintaining a registration 9 of a foreign vessel that is included on a list pub- 10 lished under subsection (c)(2), not later than 30 11 days after such publication, that all vessels reg- 12 istered under such government’s authority are sub- 13 ject to subsection (a). 14 ‘‘(2) ADDITIONAL NOTIFICATION.—In the case 15 of a government that continues to maintain a reg- 16 istration for a vessel that is included on such list 17 after receiving an initial notification under para- 18 graph (1), the Secretary shall issue an additional no- 19 tification to such government not later than 120 20 days after the publication of a list under subsection 21 (c)(2). 22 ‘‘(e) NOTIFICATION OF VESSELS.—Upon receiving a 23 notice of arrival under section 4(a)(5) from a vessel de- 24 scribed in subsection (b), the Secretary of the department 25 in which the Coast Guard is operating shall notify the VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00168 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 169 •HR 3364 IH 1 master of such vessel that the vessel may not enter or op- 2 erate in the navigable waters of the United States or 3 transfer cargo in any port or place under the jurisdiction 4 of the United States, unless— 5 ‘‘(1) the Secretary of State has made a deter- 6 mination under subsection (a)(2); or 7 ‘‘(2) the Secretary of the department in which 8 the Coast Guard is operating allows provisional 9 entry of the vessel, or transfer of cargo from the ves- 10 sel, under subsection (f). 11 ‘‘(f) PROVISIONAL ENTRY OR CARGO TRANSFER.— 12 Notwithstanding any other provision of this section, the 13 Secretary of the department in which the Coast Guard is 14 operating may allow provisional entry of, or transfer of 15 cargo from, a vessel, if such entry or transfer is necessary 16 for the safety of the vessel or persons aboard. 17 ‘‘(g) RIGHT OF INNOCENT PASSAGE AND RIGHT OF 18 TRANSIT PASSAGE.—This section shall not be construed 19 as authority to restrict the right of innocent passage or 20 the right of transit passage as recognized under inter- 21 national law. 22 ‘‘(h) FOREIGN VESSEL DEFINED.—In this section, 23 the term ‘foreign vessel’ has the meaning given that term 24 in section 110 of title 46, United States Code.’’. 25 (b) CONFORMING AMENDMENTS.— VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00169 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 170 •HR 3364 IH 1 (1) SPECIAL POWERS.—Section 4(b)(2) of the 2 Ports and Waterways Safety Act (33 U.S.C. 3 1223(b)(2)) is amended by inserting ‘‘or 16’’ after 4 ‘‘section 9’’. 5 (2) DENIAL OF ENTRY.—Section 13(e) of the 6 Ports and Waterways Safety Act (33 U.S.C. 7 1232(e)) is amended by striking ‘‘section 9’’ and in- 8 serting ‘‘section 9 or 16’’. 9 SEC. 316. REPORT ON COOPERATION BETWEEN NORTH 10 KOREA AND IRAN. 11 (a) IN GENERAL.—Not later than 180 days after the 12 date of the enactment of this Act, and annually thereafter 13 for 5 years, the President shall submit to the appropriate 14 congressional committees and leadership a report that in- 15 cludes— 16 (1) an assessment of the extent of cooperation 17 (including through the transfer of goods, services, 18 technology, or intellectual property) between North 19 Korea and Iran relating to their respective nuclear, 20 ballistic missile development, chemical or biological 21 weapons development, or conventional weapons pro- 22 grams; 23 (2) the names of any Iranian or North Korean 24 persons that have knowingly engaged in or di- 25 rected— VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00170 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 171 •HR 3364 IH 1 (A) the provision of material support to 2 such programs; or 3 (B) the exchange of information between 4 North Korea and Iran with respect to such pro- 5 grams; 6 (3) the names of any other foreign persons that 7 have facilitated the activities described in paragraph 8 (1); and 9 (4) a determination whether any of the activi- 10 ties described in paragraphs (1) and (2) violate 11 United Nations Security Council Resolution 2231 12 (2015). 13 (b) FORM.—The report required under subsection (a) 14 shall be submitted in unclassified form but may contain 15 a classified annex. 16 (c) APPROPRIATE CONGRESSIONAL COMMITTEES 17 AND LEADERSHIP DEFINED.—In this section, the term 18 ‘‘appropriate congressional committees and leadership’’ 19 means— 20 (1) the Committee on Foreign Relations, the 21 Committee on Banking, Housing, and Urban Af- 22 fairs, and the majority and minority leaders of the 23 Senate; and 24 (2) the Committee on Foreign Affairs, the 25 Committee on Financial Services, the Committee on VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00171 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 172 •HR 3364 IH 1 Ways and Means, and the Speaker, the majority 2 leader, and the minority leader of the House of Rep- 3 resentatives. 4 SEC. 317. REPORT ON IMPLEMENTATION OF UNITED NA- 5 TIONS SECURITY COUNCIL RESOLUTIONS BY 6 OTHER GOVERNMENTS. 7 (a) IN GENERAL.—Not later than 180 days after the 8 date of the enactment of this Act, and annually thereafter 9 for 5 years, the President shall submit to the appropriate 10 congressional committees and leadership a report that 11 evaluates the degree to which the governments of other 12 countries have knowingly failed to— 13 (1) close the representative offices of persons 14 designated under applicable United Nations Security 15 Council resolutions; 16 (2) expel any North Korean nationals, including 17 diplomats, working on behalf of such persons; 18 (3) prohibit the opening of new branches, sub- 19 sidiaries, or representative offices of North Korean 20 financial institutions within the jurisdictions of such 21 governments; or 22 (4) expel any representatives of North Korean 23 financial institutions. VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00172 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 173 •HR 3364 IH 1 (b) FORM.—The report required under subsection (a) 2 shall be submitted in unclassified form but may contain 3 a classified annex. 4 (c) APPROPRIATE CONGRESSIONAL COMMITTEES 5 AND LEADERSHIP DEFINED.—In this section, the term 6 ‘‘appropriate congressional committees and leadership’’ 7 means— 8 (1) the Committee on Foreign Relations, the 9 Committee on Banking, Housing, and Urban Af- 10 fairs, and the majority and minority leaders of the 11 Senate; and 12 (2) the Committee on Foreign Affairs, the 13 Committee on Financial Services, the Committee on 14 Ways and Means, and the Speaker, the majority 15 leader, and the minority leader of the House of Rep- 16 resentatives. 17 SEC. 318. BRIEFING ON MEASURES TO DENY SPECIALIZED 18 FINANCIAL MESSAGING SERVICES TO DES- 19 IGNATED NORTH KOREAN FINANCIAL INSTI- 20 TUTIONS. 21 (a) IN GENERAL.—Not later than 180 days after the 22 date of the enactment of this Act, and every 180 days 23 thereafter for 5 years, the President shall provide to the 24 appropriate congressional committees a briefing that in- 25 cludes the following information: VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00173 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 174 •HR 3364 IH 1 (1) A list of each person or foreign government 2 the President has identified that directly provides 3 specialized financial messaging services to, or en- 4 ables or facilitates direct or indirect access to such 5 messaging services for— 6 (A) any North Korean financial institution 7 (as such term is defined in section 3 of the 8 North Korea Sanctions and Policy Enhance- 9 ment Act of 2016 (22 U.S.C. 9202)) designated 10 under an applicable United Nations Security 11 Council resolution; or 12 (B) any other North Korean person, on be- 13 half of such a North Korean financial institu- 14 tion. 15 (2) A detailed assessment of the status of ef- 16 forts by the Secretary of the Treasury to work with 17 the relevant authorities in the home jurisdictions of 18 such specialized financial messaging providers to end 19 such provision or access. 20 (b) FORM.—The briefing required under subsection 21 (a) may be classified. VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00174 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 175 •HR 3364 IH 1 Subtitle B—Sanctions With Respect 2 to Human Rights Abuses by the 3 Government of North Korea 4 SEC. 321. SANCTIONS FOR FORCED LABOR AND SLAVERY 5 OVERSEAS OF NORTH KOREANS. 6 (a) SANCTIONS FOR TRAFFICKING IN PERSONS.— 7 (1) IN GENERAL.—Section 302(b) of the North 8 Korea Sanctions and Policy Enhancement Act of 9 2016 (22 U.S.C. 9241(b)) is amended— 10 (A) in paragraph (1), by striking ‘‘and’’ at 11 the end; 12 (B) in paragraph (2), by striking the pe- 13 riod at the end and inserting ‘‘; and’’; and 14 (C) by adding at the end the following new 15 paragraph: 16 ‘‘(3) a list of foreign persons that knowingly 17 employ North Korean laborers, as described in sec- 18 tion 104(b)(1)(M).’’. 19 (2) ADDITIONAL DETERMINATIONS; RE- 20 PORTS.—With respect to any country identified in 21 section 302(b)(2) of the North Korea Sanctions and 22 Policy Enhancement Act of 2016 (22 U.S.C. 23 9241(b)(2)), as amended by paragraph (1), the re- 24 port required under section 302(a) of such Act 25 shall— VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00175 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 176 •HR 3364 IH 1 (A) include a determination whether each 2 person identified in section 302(b)(3) of such 3 Act (as amended by paragraph (1)) who is a 4 national or a citizen of such identified country 5 meets the criteria for sanctions under— 6 (i) section 111 of the Trafficking Vic- 7 tims Protection Act of 2000 (22 U.S.C. 8 7108) (relating to the prevention of traf- 9 ficking in persons); or 10 (ii) section 104(a) or 104(b)(1) of the 11 North Korea Sanctions and Policy En- 12 hancement Act of 2016 (22 U.S.C. 13 9214(a)), as amended by section 101 of 14 this Act; 15 (B) be included in the report required 16 under section 110(b) of the Trafficking Victims 17 Protection Act of 2000 (22 U.S.C. 7107(b)) 18 (relating to the annual report on trafficking in 19 persons); and 20 (C) be considered in any determination 21 that the government of such country has made 22 serious and sustained efforts to eliminate severe 23 forms of trafficking in persons, as such term is 24 defined for purposes of the Trafficking Victims 25 Protection Act of 2000. VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00176 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 177 •HR 3364 IH 1 (b) SANCTIONS ON FOREIGN PERSONS THAT EM- 2 PLOY NORTH KOREAN LABOR.— 3 (1) IN GENERAL.—Title III of the North Korea 4 Sanctions and Policy Enhancement Act of 2016 (22 5 U.S.C. 9241 et seq.) is amended by inserting after 6 section 302 the following new sections: 7 ‘‘SEC. 302A. REBUTTABLE PRESUMPTION APPLICABLE TO 8 GOODS MADE WITH NORTH KOREAN LABOR. 9 ‘‘(a) IN GENERAL.—Except as provided in subsection 10 (b), any significant goods, wares, articles, and merchan- 11 dise mined, produced, or manufactured wholly or in part 12 by the labor of North Korean nationals or citizens shall 13 be deemed to be prohibited under section 307 of the Tariff 14 Act of 1930 (19 U.S.C. 1307) and shall not be entitled 15 to entry at any of the ports of the United States. 16 ‘‘(b) EXCEPTION.—The prohibition described in sub- 17 section (a) shall not apply if the Commissioner of U.S. 18 Customs and Border Protection finds, by clear and con- 19 vincing evidence, that the goods, wares, articles, or mer- 20 chandise described in such paragraph were not produced 21 with convict labor, forced labor, or indentured labor under 22 penal sanctions. VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00177 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 178 •HR 3364 IH 1 ‘‘SEC. 302B. SANCTIONS ON FOREIGN PERSONS EMPLOYING 2 NORTH KOREAN LABOR. 3 ‘‘(a) IN GENERAL.—Except as provided in subsection 4 (c), the President shall designate any person identified 5 under section 302(b)(3) for the imposition of sanctions 6 under subsection (b). 7 ‘‘(b) IMPOSITION OF SANCTIONS.— 8 ‘‘(1) IN GENERAL.—The President shall impose 9 the sanctions described in paragraph (2) with re- 10 spect to any person designated under subsection (a). 11 ‘‘(2) SANCTIONS DESCRIBED.—The sanctions 12 described in this paragraph are sanctions pursuant 13 to the International Emergency Economic Powers 14 Act (50 U.S.C. 1701 et seq.) to block and prohibit 15 all transactions in property and interests in property 16 of a person designated under subsection (a), if such 17 property and interests in property are in the United 18 States, come within the United States, or are or 19 come within the possession or control of a United 20 States person. 21 ‘‘(c) EXCEPTION.— 22 ‘‘(1) IN GENERAL.—A person may not be des- 23 ignated under subsection (a) if the President cer- 24 tifies to the appropriate congressional committees 25 that the President has received reliable assurances 26 from such person that— VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00178 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 179 •HR 3364 IH 1 ‘‘(A) the employment of North Korean la- 2 borers does not result in the direct or indirect 3 transfer of convertible currency, luxury goods, 4 or other stores of value to the Government of 5 North Korea; 6 ‘‘(B) all wages and benefits are provided 7 directly to the laborers, and are held, as appli- 8 cable, in accounts within the jurisdiction in 9 which they reside in locally denominated cur- 10 rency; and 11 ‘‘(C) the laborers are subject to working 12 conditions consistent with international stand- 13 ards. 14 ‘‘(2) RECERTIFICATION.—Not later than 180 15 days after the date on which the President transmits 16 to the appropriate congressional committees an ini- 17 tial certification under paragraph (1), and every 180 18 days thereafter, the President shall— 19 ‘‘(A) transmit a recertification stating that 20 the conditions described in such paragraph con- 21 tinue to be met; or 22 ‘‘(B) if such recertification cannot be 23 transmitted, impose the sanctions described in 24 subsection (b) beginning on the date on which VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00179 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 180 •HR 3364 IH 1 the President determines that such recertifi- 2 cation cannot be transmitted.’’. 3 (2) CLERICAL AMENDMENT.—The table of con- 4 tents in section 1(b) of the North Korea Sanctions 5 and Policy Enhancement Act of 2016 is amended by 6 inserting after the item relating to section 302 the 7 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.’’. 8 SEC. 322. MODIFICATIONS TO SANCTIONS SUSPENSION AND 9 WAIVER AUTHORITIES. 10 (a) EXEMPTIONS.—Section 208(a) of the North 11 Korea Sanctions and Policy Enhancement Act of 2016 (22 12 U.S.C. 9228(a)) is amended in the matter preceding para- 13 graph (1)— 14 (1) by inserting ‘‘201A,’’ after ‘‘104,’’; and 15 (2) by inserting ‘‘302A, 302B,’’ after ‘‘209,’’. 16 (b) HUMANITARIAN WAIVER.—Section 208(b) of the 17 North Korea Sanctions and Policy Enhancement Act of 18 2016 (22 U.S.C. 9228(b)(1)) is amended— 19 (1) by inserting ‘‘201A,’’ after ‘‘104,’’ in each 20 place it appears; and 21 (2) by inserting ‘‘302A, 302B,’’ after ‘‘209(b),’’ 22 in each place it appears. 23 (c) WAIVER.—Section 208(c) of the North Korea 24 Sanctions and Policy Enhancement Act of 2016 (22 VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00180 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 181 •HR 3364 IH 1 U.S.C. 9228(c)) is amended in the matter preceding para- 2 graph (1)— 3 (1) by inserting ‘‘201A,’’ after ‘‘104,’’; and 4 (2) by inserting ‘‘302A, 302B,’’ after 5 ‘‘209(b),’’. 6 SEC. 323. REWARD FOR INFORMANTS. 7 Section 36(b) of the State Department Basic Au- 8 thorities Act of 1956 (22 U.S.C. 2708(b)), is amended— 9 (1) in paragraph (9), by striking ‘‘or’’ at the 10 end; 11 (2) in paragraph (10), by striking the period at 12 the end and inserting a semicolon; and 13 (3) by adding at the end the following new 14 paragraphs: 15 ‘‘(11) the identification or location of any per- 16 son who, while acting at the direction of or under 17 the control of a foreign government, aids or abets a 18 violation of section 1030 of title 18, United States 19 Code; or 20 ‘‘(12) the disruption of financial mechanisms of 21 any person who has engaged in the conduct de- 22 scribed in sections 104(a) or 104(b)(1) of the North 23 Korea Sanctions and Policy Enhancement Act of 24 2016 (22 U.S.C. 2914(a) or (b)(1)).’’. VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00181 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 182 •HR 3364 IH 1 SEC. 324. DETERMINATION ON DESIGNATION OF NORTH 2 KOREA AS A STATE SPONSOR OF TERRORISM. 3 (a) DETERMINATION.— 4 (1) IN GENERAL.—Not later than 90 days after 5 the date of the enactment of this Act, the Secretary 6 of State shall submit to the appropriate congres- 7 sional committees a determination whether North 8 Korea meets the criteria for designation as a state 9 sponsor of terrorism. 10 (2) FORM.—The determination required by 11 paragraph (1) shall be submitted in unclassified 12 form but may include a classified annex, if appro- 13 priate. 14 (b) STATE SPONSOR OF TERRORISM DEFINED.—For 15 purposes of this section, the term ‘‘state sponsor of ter- 16 rorism’’ means a country the government of which the 17 Secretary of State has determined, for purposes of section 18 6(j) of the Export Administration Act of 1979 (50 U.S.C. 19 4605(j)) (as in effect pursuant to the International Emer- 20 gency Economic Powers Act), section 620A of the Foreign 21 Assistance Act of 1961 (22 U.S.C. 2371), section 40 of 22 the Arms Export Control Act (22 U.S.C. 2780), or any 23 other provision of law, is a government that has repeatedly 24 provided support for acts of international terrorism. VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00182 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 183 •HR 3364 IH 1 Subtitle C—General Authorities 2 SEC. 331. AUTHORITY TO CONSOLIDATE REPORTS. 3 Any reports required to be submitted to the appro- 4 priate congressional committees under this title or any 5 amendment made by this title that are subject to deadlines 6 for submission consisting of similar units of time may be 7 consolidated into a single report that is submitted to ap- 8 propriate congressional committees pursuant to the earlier 9 of such deadlines. The consolidated reports must contain 10 all information required under this title or any amendment 11 made by this title, in addition to all other elements man- 12 dated by previous law. 13 SEC. 332. RULE OF CONSTRUCTION. 14 Nothing in this title shall be construed to limit— 15 (1) the authority or obligation of the President 16 to apply the sanctions described in section 104 of 17 the North Korea Sanctions and Policy Enhancement 18 Act of 2016 (22 U.S.C. 9214), as amended by sec- 19 tion 311 of this Act, with regard to persons who 20 meet the criteria for designation under such section, 21 or in any other provision of law; or 22 (2) the authorities of the President pursuant to 23 the International Emergency Economic Powers Act 24 (50 U.S.C. 1701 et seq.). VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00183 Fmt 6652 Sfmt 6201 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS 184 •HR 3364 IH 1 SEC. 333. REGULATORY AUTHORITY. 2 (a) IN GENERAL.—The President shall, not later 3 than 180 days after the date of the enactment of this Act, 4 promulgate regulations as necessary for the implementa- 5 tion of this title and the amendments made by this title. 6 (b) NOTIFICATION TO CONGRESS.—Not fewer than 7 10 days before the promulgation of a regulation under 8 subsection (a), the President shall notify and provide to 9 the appropriate congressional committees the proposed 10 regulation, specifying the provisions of this title or the 11 amendments made by this title that the regulation is im- 12 plementing. 13 SEC. 334. LIMITATION ON FUNDS. 14 No additional funds are authorized to carry out the 15 requirements of this title or of the amendments made by 16 this title. Such requirements shall be carried out using 17 amounts otherwise authorized. Æ VerDate Sep 11 2014 01:16 Jul 25, 2017 Jkt 069200 PO 00000 Frm 00184 Fmt 6652 Sfmt 6301 E:\BILLS\H3364.IH H3364 dlhill on DSKBC4BHB2PROD with BILLS

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