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115th Congress } { Report
HOUSE OF REPRESENTATIVES
1st Session } { 115-361
======================================================================
IMPEDING NORTH KOREA'S ACCESS TO FINANCE ACT OF 2017
_______
October 23, 2017.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Hensarling, from the Committee on Financial Services, submitted the
following
R E P O R T
together with
ADDITIONAL VIEWS
[To accompany H.R. 3898]
[Including cost estimate of the Congressional Budget Office]
The Committee on Financial Services, to whom was referred
the bill (H.R. 3898) to require the Secretary of the Treasury
to place conditions on certain accounts at United States
financial institutions with respect to North Korea, and for
other purposes, having considered the same, reports favorably
thereon with amendments and recommends that the bill as amended
do pass.
The amendments are as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Impeding North Korea's Access to
Finance Act of 2017''.
SEC. 2. FINDINGS.
The Congress finds the following:
(1) On June 1, 2016, the Department of the Treasury's
Financial Crimes Enforcement Network announced a Notice of
Finding that the Democratic People's Republic of Korea is a
jurisdiction of primary money laundering concern due to its use
of state-controlled financial institutions and front companies
to support the proliferation and development of weapons of mass
destruction (WMD) and ballistic missiles.
(2) The Financial Action Task Force (FATF) has expressed
serious concerns with the threat posed by North Korea's
proliferation and financing of WMD, and has called on FATF
members to apply effective counter-measures to protect their
financial sectors from North Korean money laundering, WMD
proliferation financing, and the financing of terrorism.
(3) In its February 2017 report, the U.N. Panel of Experts
concluded that--
(A) North Korea continued to access the international
financial system in support of illicit activities
despite sanctions imposed by U.N. Security Council
Resolutions 2270 (2016) and 2321 (2016);
(B) during the reporting period, no member state had
reported taking actions to freeze North Korean assets;
and
(C) sanctions evasion by North Korea, combined with
inadequate compliance by member states, had
significantly negated the impact of U.N. Security
Council resolutions.
(4) In its September 2017 report, the U.N. Panel of Experts
found that--
(A) North Korea continued to violate financial
sanctions by using agents acting abroad on the
country's behalf;
(B) foreign financial institutions provided
correspondent banking services to North Korean persons
and front companies for illicit purposes;
(C) foreign companies violated sanctions by
maintaining links with North Korean financial
institutions; and
(D) North Korea generated at least $270 million
during the reporting period through the violation of
sectoral sanctions.
(5) North Korean entities engage in significant financial
transactions through foreign bank accounts that are maintained
by non-North Korean nationals, thereby masking account users'
identity in order to access financial services.
(6) North Korea's sixth nuclear test on September 3, 2017,
demonstrated an estimated explosive power more than 100 times
greater than that generated by its first nuclear test in 2006.
(7) North Korea has successfully tested submarine-launched
and intercontinental ballistic missiles, and is rapidly
progressing in its development of a nuclear-armed missile that
is capable of reaching United States territory.
SEC. 3. CONDITIONS WITH RESPECT TO CERTAIN ACCOUNTS AND TRANSACTIONS AT
UNITED STATES FINANCIAL INSTITUTIONS.
(a) Correspondent and Payable-Through Accounts Held by Foreign
Financial Institutions.--
(1) In general.--Not later than 45 days after the date of the
enactment of this Act, the Secretary of the Treasury shall
prescribe regulations to prohibit, or impose strict conditions
on, the opening or maintaining in the United States of a
correspondent account or a payable-through account by a foreign
financial institution that the Secretary finds knowingly
facilitates a significant transaction or transactions or
provides significant financial services for a covered person.
(2) Penalties.--
(A) Civil penalty.--A person who violates, attempts
to violate, conspires to violate, or causes a violation
of regulations prescribed under this subsection shall
be subject to a civil penalty in an amount not to
exceed the greater of--
(i) $250,000; or
(ii) an amount that is twice the amount of
the transaction that is the basis of the
violation with respect to which the penalty is
imposed.
(B) Criminal penalty.--A person who willfully
commits, willfully attempts to commit, or willfully
conspires to commit, or aids or abets in the commission
of, a violation of regulations prescribed under this
subsection shall, upon conviction, be fined not more
than $1,000,000, or if a natural person, may be
imprisoned for not more than 20 years, or both.
(b) Restrictions on Certain Transactions by United States Financial
Institutions.--
(1) In general.--Not later than 45 days after the date of the
enactment of this Act, the Secretary of the Treasury shall
prescribe regulations to prohibit a United States financial
institution, and any person owned or controlled by a United
States financial institution, from knowingly engaging in a
significant transaction or transactions with or benefitting any
person that the Secretary finds to be a covered person.
(2) Civil penalty.--A person who violates, attempts to
violate, conspires to violate, or causes a violation of
regulations prescribed under this subsection shall be subject
to a civil penalty in an amount not to exceed the greater of--
(A) $250,000; or
(B) an amount that is twice the amount of the
transaction that is the basis of the violation with
respect to which the penalty is imposed.
SEC. 4. OPPOSITION TO ASSISTANCE BY THE INTERNATIONAL FINANCIAL
INSTITUTIONS AND THE EXPORT-IMPORT BANK.
(a) International Financial Institutions.--The Bretton Woods
Agreements Act (22 U.S.C. 286 et seq.) is amended by adding at the end
the following:
``SEC. 73. OPPOSITION TO ASSISTANCE FOR ANY GOVERNMENT THAT FAILS TO
IMPLEMENT SANCTIONS ON NORTH KOREA.
``(a) In General.--The Secretary of the Treasury shall instruct the
United States Executive Director at the international financial
institutions (as defined under section 1701(c) of the International
Financial Institutions Act) to use the voice and vote of the United
States to oppose the provision of financial assistance to a foreign
government, other than assistance to support basic human needs, if the
President determines that, in the year preceding consideration of
approval of such assistance, the government has knowingly failed to
prevent the provision of financial services to, or freeze the funds,
financial assets, and economic resources of, a person described under
subparagraphs (A) through (E) of section 7(2) of the Impeding North
Korea's Access to Finance Act of 2017.
``(b) Waiver.--The President may waive subsection (a) for up to 180
days at a time with respect to a foreign government if the President
reports to Congress that--
``(1) the foreign government's failure described under (a) is
due exclusively to a lack of foreign government capacity;
``(2) the foreign government is taking effective steps to
prevent recurrence of such failure; or
``(3) such waiver is vital to the national security interests
of the United States.''.
(b) Export-Import Bank.--Section 2(b) of the Export-Import Bank Act
of 1945 (12 U.S.C. 635(b)) is amended by adding at the end the
following:
``(14) Prohibition on support involving persons connected
with north korea.--The Bank may not guarantee, insure, or
extend credit, or participate in the extension of credit in
connection with the export of a good or service to a covered
person (as defined under section 7 of the Impeding North
Korea's Access to Finance Act of 2017).''.
SEC. 5. TREASURY REPORTS ON COMPLIANCE, PENALTIES, AND TECHNICAL
ASSISTANCE.
(a) Quarterly Report.--
(1) In general.--Not later than 120 days following the date
of the enactment of this Act, and every 90 days thereafter, the
Secretary of the Treasury shall submit a report to the
Committee on Financial Services of the House of Representatives
and the Committee on Banking, Housing, and Urban Affairs of the
Senate that includes--
(A) a list of financial institutions that, in the
period since the preceding report, knowingly
facilitated a significant transaction or transactions
or provided significant financial services for a
covered person, or failed to apply appropriate due
diligence to prevent such activities;
(B) a list of any penalties imposed under section 3
in the period since the preceding report; and
(C) a description of efforts by the Department of the
Treasury in the period since the preceding report,
through consultations, technical assistance, or other
appropriate activities, to strengthen the capacity of
financial institutions and foreign governments to
prevent the provision of financial services benefitting
any covered person.
(2) Form of report; public availability.--
(A) Form.--The report required under paragraph (1)
shall be submitted in unclassified form but may contain
a classified annex.
(B) Public availability.--The unclassified portion of
such report shall be made available to the public and
posted on the website of the Department of the
Treasury.
(b) Testimony Required.--Upon request of the Committee on Financial
Services of the House of Representatives or the Committee on Banking,
Housing, and Urban Affairs of the Senate, the Under Secretary of the
Treasury for Terrorism and Financial Intelligence shall testify to
explain the effects of this Act, and the amendments made by this Act,
on North Korea's access to finance.
(c) International Monetary Fund.--Title XVI of the International
Financial Institutions Act (22 U.S.C. 262p et seq.) is amended by
adding at the end the following:
``SEC. 1629. SUPPORT FOR CAPACITY OF THE INTERNATIONAL MONETARY FUND TO
PREVENT MONEY LAUNDERING AND FINANCING OF
TERRORISM.
``The Secretary of the Treasury shall instruct the United States
Executive Director at the International Monetary Fund to support the
use of the administrative budget of the Fund for technical assistance
that strengthens the capacity of Fund members to prevent money
laundering and the financing of terrorism.''.
(d) National Advisory Council Report to Congress.--The Chairman of
the National Advisory Council on International Monetary and Financial
Policies shall include in the report required by section 1701 of the
International Financial Institutions Act (22 U.S.C. 262r) for the
fiscal year following the date of the enactment of this Act a
description of--
(1) the activities of the International Monetary Fund in the
most recently completed fiscal year to provide technical
assistance that strengthens the capacity of Fund members to
prevent money laundering and the financing of terrorism, and
the effectiveness of the assistance; and
(2) the efficacy of efforts by the United States to support
such technical assistance through the use of the Fund's
administrative budget.
SEC. 6. SUSPENSION AND TERMINATION OF PROHIBITIONS AND PENALTIES.
(a) Suspension.--The President may suspend, on a case-by-case basis,
the application of any provision of this Act, or provision in an
amendment made by this Act, for a period of not more than 180 days at a
time if the President certifies to Congress that--
(1) the Government of North Korea has--
(A) committed to the verifiable suspension of North
Korea's proliferation and testing of WMD, including
systems designed in whole or in part for the delivery
of such weapons; and
(B) has agreed to multilateral talks including the
Government of the United States, with the goal of
permanently and verifiably limiting North Korea's WMD
and ballistic missile programs; or
(2) such suspension is vital to the national security
interests of the United States, with an explanation of the
reasons therefor.
(b) Termination.--
(1) In general.--On the date that is 30 days after the date
on which the President makes the certification described under
paragraph (2)--
(A) section 3, subsections (a) and (b) of section 5,
and section 6(a) of this Act shall cease to have any
force or effect;
(B) section 73 of the Bretton Woods Agreements Act,
as added by section 4(a), shall be repealed; and
(C) section 2(b)(14) of the Export-Import Bank Act of
1945, as added by section 4(b), shall be repealed.
(2) Certification.--The certification described under this
paragraph is a certification by the President to the Congress
that--
(A) the Government of North Korea--
(i) has ceased to pose a significant threat
to national security, with an explanation of
the reasons therefor; or
(ii) is committed to, and is taking effective
steps to achieving, the goal of permanently and
verifiably limiting North Korea's WMD and
ballistic missile programs; or
(B) such termination is vital to the national
security interests of the United States, with an
explanation of the reasons therefor.
SEC. 7. DEFINITIONS.
For purposes of this Act:
(1) Terms related to north korea.--The terms ``applicable
Executive order'', ``Government of North Korea'', ``North
Korea'', ``North Korean person'', and ``significant activities
undermining cybersecurity'' have the meanings given those
terms, respectively, in section 3 of the North Korea Sanctions
and Policy Enhancement Act of 2016 (22 U.S.C. 9202).
(2) Covered person.--The term ``covered person'' means the
following:
(A) Any designated person under an applicable
Executive order.
(B) Any North Korean person that facilitates the
transfer of bulk cash or covered goods (as defined
under section 1027.100 of title 31, Code of Federal
Regulations).
(C) Any North Korean financial institution.
(D) Any North Korean person employed outside of North
Korea, except that the Secretary of the Treasury may
waive the application of this subparagraph for a North
Korean person that is not otherwise a covered person
and--
(i) has been granted asylum or refugee status
by the country of employment; or
(ii) is employed as essential diplomatic
personnel for the Government of North Korea.
(E) Any person acting on behalf of, or at the
direction of, a person described under subparagraphs
(A) through (D).
(F) Any person that knowingly employs a person
described under subparagraph (D).
(G) Any person that facilitates the import of goods,
services, technology, or natural resources, including
energy imports and minerals, or their derivatives, from
North Korea.
(H) Any person that facilitates the export of goods,
services, technology, or natural resources, including
energy exports and minerals, or their derivatives, to
North Korea, except for food, medicine, or medical
supplies required for civilian humanitarian needs.
(I) Any person that invests in, or participates in a
joint venture with, an entity in which the Government
of North Korea participates or an entity that is
created or organized under North Korean law.
(J) Any person that provides financial services,
including through a subsidiary or joint venture, in
North Korea.
(K) Any person that insures, registers, facilitates
the registration of, or maintains insurance or a
registration for, a vessel owned, controlled,
commanded, or operated by a North Korean person.
(L) Any person providing specialized teaching,
training, or information or providing material or
technological support to a North Korean person that--
(i) may contribute to North Korea's
development and proliferation of WMD, including
systems designed in whole or in part for the
delivery of such weapons; or
(ii) may contribute to significant activities
undermining cybersecurity.
(3) Financial institution definitions.--
(A) Financial institution.--The term ``financial
institution'' means a United States financial
institution or a foreign financial institution.
(B) Foreign financial institution.--The term
``foreign financial institution'' has the meaning given
that term under section 1010.605 of title 31, Code of
Federal Regulations.
(C) North korean financial institution.--The term
``North Korean financial institution'' includes--
(i) any North Korean financial institution,
as defined in section 3 of the North Korea
Sanctions and Policy Enhancement Act of 2016
(22 U.S.C. 9202);
(ii) any financial agency, as defined in
section 5312 of title 31, United States Code,
that is owned or controlled by the Government
of North Korea;
(iii) any money transmitting business, as
defined in section 5330(d) of title 31, United
States Code, that is owned or controlled by the
Government of North Korea;
(iv) any financial institution that is a
joint venture between any person and the
Government of North Korea; and
(v) any joint venture involving a North
Korean financial institution.
(D) United states financial institution.--The term
``United States financial institution'' has the meaning
given the term ``U.S. financial institution'' under
section 510.310 of title 31, Code of Federal
Regulations.
(4) Knowingly.--The term ``knowingly'' with respect to
conduct, a circumstance, or a result, means that a person has
actual knowledge, or should have known, of the conduct, the
circumstance, or the result.
Amend the title so as to read:
A bill to impose secondary sanctions with respect to North
Korea, strengthen international efforts to improve sanctions
enforcement, and for other purposes.
Purpose and Summary
On October 2, 2017, Representative Andy Barr introduced
H.R. 3898 the ``Impeding North Korea's Access to Finance Act of
2017.'' This legislation would impose secondary sanctions with
respect to North Korea and require the Secretary of the
Treasury to place conditions on the correspondent and payable-
through accounts of foreign financial institutions that
knowingly do business with ``covered persons,'' a category that
encompasses virtually anyone that facilitates North Korean
trade and investment, acquires hard currency for the Kim Jong-
Un regime, or provides other support for North Korea's weapons
and cyber-hacking programs. In addition, the bill would require
the U.S. to oppose assistance by the international financial
institutions for countries that knowingly fail to stop
providing financial services for enablers of North Korea's
illicit activities.
H.R. 3898 includes waiver authorities that incentivize
North Korean behavioral change, particularly the suspension of
its testing and proliferation of weapons of mass destruction
(WMD), and a commitment to permanently limit its WMD and
ballistic missile programs. Waiver provisions further
incentivize third countries to strictly enforce North Korean
sanctions, and to take corrective action in cases where
sanctions enforcement has fallen short. Finally, reporting
requirements in this legislation call for quarterly
implementation updates from the Secretary of the Treasury,
enhancing congressional oversight over the Treasury
Department's efforts to cut off North Korea's access to
finance.
Background and Need for Legislation
The Democratic People's Republic of Korea (DPRK) has
conducted six nuclear tests since 2006, and successfully tested
an intercontinental ballistic missile (ICBM) on July 4 and July
28, 2017. This missile--dubbed the ``Hwasong-14''--had an
estimated range sufficient to reach Alaska, and potentially the
East Coast of the United States. Moreover, the Defense
Intelligence Agency has reportedly concluded that North Korea
could miniaturize a nuclear device to fit inside its missiles,
and may be able to design a reentry vehicle to support a
nuclear warhead by late 2018. Developing an effective reentry
vehicle would cross a significant threshold for Pyongyang, as
it would represent the ability to wage a nuclear attack on the
continental United States.
North Korea's nuclear ambitions may be traced to as early
as 1959, when the DPRK signed an agreement with the Soviet
Union, and later China, to cooperate on nuclear research. Under
Kim Il-Sung, the North Koreans went on to pursue nuclear
weapons in the 1970s, yet these plans were discouraged by both
the USSR and China. The Soviets eventually convinced North
Korea to join the Nuclear Non-Proliferation Treaty (NPT) in
1985, which bound Pyongyang to refrain from developing nuclear
weapons of its own.
Despite signing on to the NPT, North Korea blocked
international inspections required under the treaty, and
threatened to withdraw from the NPT in the 1990s. This crisis
led to the Agreed Framework of 1994, where the U.S. committed
to providing energy assistance and, in collaboration with Japan
and South Korea, constructing two proliferation-resistant
nuclear power reactors in exchange for Pyongyang suspending its
plutonium production under international monitoring. Although
the North froze its production facilities, the Agreed Framework
began to break down in the ensuing years, especially following
the DPRK's 1998 launch of the Taepodong-1 long-range missile
over Japan. In 2002, the George W. Bush Administration accused
North Korea of violating the Agreed Framework by producing
highly enriched uranium, a violation that the North Koreans
reportedly admitted to. Reactor construction and energy
assistance were subsequently put on hold, after which North
Korea expelled international inspectors, and ultimately
withdrew from the NPT in January 2003.
As a result, 2003 saw the Agreed Framework give way to the
establishment of the Six Party Talks, a series of negotiations
involving the U.S., China, Japan, Russia, and North and South
Korea. Although the Talks may have served as a useful forum for
the U.S. to discuss policy with regional actors, they also led
to several false dawns. In 2005, North Korea implemented a
freeze on plutonium production, only to test its first nuclear
device in 2006. Another tentative plan to verifiably
denuclearize in 2007 led to the easing of U.S. sanctions the
following year, including the removal of North Korea from the
state sponsors of terrorism list. In the end, however,
Pyongyang restarted its nuclear program as President Bush
prepared to leave office.
Bad-faith commitments by the DPRK continued under the Obama
Administration, with North Korea agreeing in 2012 to suspend
nuclear and long-range missile testing and open its Yongbyon
reactor to inspections from the International Atomic Energy
Agency (IAEA), only to launch a long-range rocket a few weeks
later and proceed with its third nuclear test the next year--
the most powerful yet--in February 2013. This test led to a
unanimous United Nations Security Council vote for new
sanctions targeting North Korean trade and financial services.
Two additional nuclear tests were held in January and
September 2016, with the latter registering an explosion 10
times greater than North Korea's initial test a decade earlier.
The January test prompted the UN to call for members to inspect
all cargo originating from or destined for North Korea. The
September test was followed by UN Security Council Resolution
2321, which banned most coal, iron, and other mineral exports
from the DPRK to UN member states. Resolution 2321 also called
on member countries to close their representative offices,
subsidiaries, and bank accounts in North Korea unless they were
required to deliver humanitarian assistance. In addition, UN
members were called upon to de-register North Korean vessels,
and to prohibit public and private financial support for trade
with the country.
Following the two test launches of the Hwasong-14 in July
2017, the UN Security Council passed Resolution 2371 on August
5, a set of sanctions that completely banned North Korean coal,
mineral, and seafood exports, and prohibited additional
laborers from employment abroad. Within weeks, Pyongyang
launched a ballistic missile over Japan, and followed this with
its sixth nuclear test on September 3, 2017.
North Korea's sixth nuclear test demonstrated an estimated
explosive power in excess of 100 kilotons, which would make it
over 100 times more powerful than the DPRK's first nuclear test
from 2006, and far more devastating than the 15 kiloton bomb
that was dropped on Hiroshima.
A week following the September 2017 nuclear test, the UN
Security Council approved Resolution 2375, which, among other
provisions, banned North Korean textile exports and capped
foreign countries' petroleum exports to the DPRK. The impact of
this latest sanctions round quickly appeared uncertain,
however: shortly after passage of the Resolution, North Korean
Foreign Minister Ri Yong Ho threatened that the North might
test a hydrogen bomb over the Pacific Ocean and shoot down U.S.
strategic bombers. In early October, a Russian lawmaker who had
returned from a visit to Pyongyang revealed that the North was
preparing to test another ICBM that could reach the United
States.
It is clear that North Korea sanctions have thus far been
unable to thwart the country's nuclear ambitions. There are
several reasons for this failure:
Limited Reach of Primary Sanctions--Previous sanctions have
targeted North Korean relationships with the outside world that
may not be essential for Pyongyang. This includes sanctions
prohibiting trade and investment between the U.S. and DPRK
(i.e. ``primary sanctions''). Since the end of the Korean War
in 1953, economic relations between the two countries have been
nearly nonexistent, with the temporary exception of aid
provided to address the North Korean famine in the 1990s, and
to reward Pyongyang intermittently for suspending its nuclear
program. Therefore, while primary sanctions are extensive,
their impact may be limited.
Deficient Sanctions Enforcement--Although UN members are
bound to implement sanctions imposed by UN Security Council
Resolutions, such implementation has been uneven, either
because sanctions may not be written into national laws, or
because enforcement of those laws is deficient. As the UN Panel
of Experts noted in a February 2017 report:
``Despite expanded financial sanctions adopted by the
Security Council in resolutions 2270 (2016) and 2321
(2016), the Democratic People's Republic of Korea has
continued to access the international financial system
to support its activities. Financial networks of the
Democratic People's Republic of Korea have adapted to
these sanctions, using evasive methods to maintain
access to formal banking channels and bulk cash
transfers to facilitate prohibited activities. At the
time of writing, Democratic People's Republic of Korea
circumvention techniques and inadequate compliance by
Member States are combining to significantly negate the
impact of the resolutions.''
In a July 2017 hearing before the Financial Services
Committee, William Newcomb, a former member of the UN Panel of
Experts, testified:
``Over the past decade, the record of implementation
by Member States is a poor one. It was not unusual to
find that even several members of the Security Council
had not implemented sanctions. Typically it took many
years following adoption of a resolution before reports
of its implementation rose to the fifty percent mark.''
According to Newcomb, UN members cannot plausibly claim
ignorance of the Resolutions' requirements; although continued
efforts to educate countries on their provisions are important,
compelling those countries to take action may be necessary. As
Newcomb stated in his testimony:
``While outreach will remain essential, particularly
to explain the growing complexity of sanctions as new
Resolutions are adopted, positive and negative
incentives are needed to encourage more Member States
to act.''
North Korean Use of Foreign Nationals--The DPRK has sought
to evade sanctions through the use of brokers and front
companies abroad, notably in China and Southeast Asia, which
act on behalf of North Korean persons. At a hearing before the
Committee on September 13, 2017, David Albright, President of
the Institute for Science and International Security, outlined
how non-North Korean nationals have been crucial for the DPRK's
procurement activities:
When [North Korea] could no longer base its
operations in Europe in the early 2000s, it shifted its
operations to China, where many procurement operations
for its nuclear program have been centered since then.
Operating in China and Hong Kong, it has acquired a
wide range of goods from Chinese companies and
middlemen, as well as from U.S., Japanese, and European
subsidiaries, which have been deceived into thinking
they were selling to Chinese end users. North Korean
entities often contract with private Chinese and Hong
Kong trading companies and sometimes manufacturing
companies to acquire these goods, either from Chinese
suppliers or subsidiaries of Western or Japanese
suppliers in China. Although China is improving its
export control laws, Beijing has not done an adequate
job of enforcing its laws and sanctions against illegal
exports and retransfers to North Korea.
The challenge posed by front companies was echoed in a
September 2017 report by the UN Panel of Experts, which noted:
``Financial institutions in numerous Member States
wittingly and unwittingly have provided correspondent
banking services to front companies and individual of
the Democratic People's Republic of Korea engaged in
prohibited activities. Moreover, foreign companies
maintain links with financial institutions of the
country established as subsidiaries or joint ventures
in violation of the resolutions.''
Despite the DPRK's use of non-North Korean persons, its
trading activities should nonetheless be detectable. As C4ADS,
a nonprofit research organization, concluded in its 2017
report, Risky Business: A System-Level Analysis of the North
Korean Proliferation Financing System: ``By being centralized,
limited, and ultimately vulnerable, North Korean overseas
networks are, by their nature, ripe for disruption.'' Drawing
on open-source data, C4ADS mapped such networks, and concluded
that targeting key non-North Korean nationals, particularly in
China, could significantly undermine the DPRK's procurement and
financing efforts. According to the C4ADS report:
``Although to date economic coercion has been
ineffective in persuading North Korea to abandon its
pursuit of nuclear weapons, this does not mean it
cannot work. On the contrary, targeted enforcement
actions against key nodes within the system can have
the effect of impacting multiple networks across
multiple countries simultaneously, removing key
functions, such as individuals or entities specialized
in illicit finance and procurement, who cannot be
easily replaced. Each action can individually increase
the cost and complexity of sanctions evasion for North
Korea but if applied against a number of these key
nodes simultaneously, they could, in theory, cause the
entire overseas system to collapse.''
In the absence of sufficient enforcement measures taken
against these trading entities by their home countries, H.R.
3898 would punish foreign financial institutions that conduct
business with them, and help foreign governments ensure that
their financial sectors cannot be exploited by North Korean
efforts to evade sanctions.
At the same time, H.R. 3898 reflects the principle that
secondary sanctions should include significant flexibility for
the President to advance U.S. foreign policy goals. As Adam
Szubin, Director of the Treasury Department's Office of Foreign
Assets Control under the George W. Bush administration, and
Acting Under Secretary for Terrorism and Financial Intelligence
under the Obama administration, testified on September 7, 2017
before the Senate Committee on Banking, Housing, and Urban
Affairs:
``[Sanctions] are meant to incentivize behavioral
change. For that inducement to work, the targets of
sanctions must see that the President has the ability
to lighten or remove the pressure. That is, those that
conduct our nation's foreign affairs must have
discretion over how and when sanctions are eased or
removed.''
Consequently, this legislation's waiver authorities are
designed to provide sanctions relief in response to realistic
behavioral change on the part of North Korea and other affected
countries. In addition, the application of any provision may be
suspended if the President reports to Congress that a waiver is
vital to national security interests.
In summary, the DPRK's rapid development of both nuclear
weapons and vehicles for their delivery calls for forceful
secondary sanctions premised on a limited number of clear and
achievable goals, incentives for foreign countries to eliminate
business benefitting North Korea, and appropriate discretion
for the President to maximize the effectiveness of these tools.
Hearings
On July 19, 2017, the Monetary Policy and Trade
Subcommittee held a hearing on matters relating to H.R. 3898
entitled, ``Restricting North Korea's Access to Finance.'' On
September 13, 2017, the Monetary Policy and Trade Subcommittee
held an additional hearing on a discussion draft of H.R. 3898
entitled, ``A Legislative Proposal to Impede North Korea's
Access to Finance.''
Committee Consideration
The Committee on Financial Services met in open session on
October 11, 2017, and ordered H.R. 3898 to be reported
favorably to the House as amended by a recorded vote of 56 yeas
to 0 nays (Recorded vote no. FC-73), a quorum being present.
Before the motion to report was offered, the Committee adopted
an amendment in the nature of a substitute offered by Mr. Barr
by voice vote.
Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee to list the record votes
on the motion to report legislation and amendments thereto. The
sole recorded vote was on a motion by Chairman Hensarling to
report the bill favorably to the House as amended. The motion
was agreed to by a recorded vote of 56 yeas to 0 nays (Record
vote no. FC-73), a quorum being present.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Committee Oversight Findings
Pursuant to clause 3(c)(1) of rule XIII of the Rules of the
House of Representatives, the findings and recommendations of
the Committee based on oversight activities under clause
2(b)(1) of rule X of the Rules of the House of Representatives,
are incorporated in the descriptive portions of this report.
Performance Goals and Objectives
With respect to clause 3(c)(4) of rule XIII of the Rules of
the House of Representatives, the Committee advises that the
bill contains no measure that authorizes funding, so no
statement of general performance goals and objectives for which
any measure authorizes funding is required.
New Budget Authority, Entitlement Authority, and Tax Expenditures
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee adopts as its
own the estimate of new budget authority, entitlement
authority, or tax expenditures or revenues contained in the
cost estimate prepared by the Director of the Congressional
Budget Office pursuant to section 402 of the Congressional
Budget Act of 1974.
Congressional Budget Office Estimates
Pursuant to clause 3(c)(3) of rule XIII of the Rules of the
House of Representatives, the following is the cost estimate
provided by the Congressional Budget Office pursuant to section
402 of the Congressional Budget Act of 1974:
U.S. Congress,
Congressional Budget Office,
Washington, DC, October 20, 2017.
Hon. Jeb Hensarling,
Chairman, Committee on Financial Services,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 3898, the Impeding
North Korea's Access to Finance Act of 2017.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Jacob Fabian.
Sincerely,
Keith Hall,
Director.
Enclosure.
H.R. 3898--Impeding North Korea's Access to Finance Act of 2017
H.R. 3898 would expand federal sanctions and reporting
requirements related to commercial transactions and
interactions with North Korea. The bill would require the
Secretary of the Treasury to issue regulations that prohibit or
strictly limit correspondent accounts maintained in the United
States by certain foreign financial institutions.
(Correspondent accounts allow banks to send money to each other
internationally and are essential for banks to access foreign
financial systems and for customer payments.) The affected
institutions would include any institution that knowingly
facilitates transactions or provides significant financial
services for individuals or entities in the world that transact
with persons in North Korea.
Additionally, the bill would instruct the U.S. executive
directors of international financial institutions (for example,
the International Monetary Fund, the Asian Development Bank, or
similar institutions) to support the denial of financial
assistance to foreign governments that do not comply with the
bill and, in the case of the International Monetary Fund, to
support the use of administrative funds to prevent money
laundering and the financing of terrorism. The bill also would
require the Secretary of the Treasury to regularly report on
the sanctions and other activities covered by the bill.
On the basis of information about the costs of similar
activities, CBO estimates that administering the sanctions and
implementing the reporting requirements under H.R. 3898 would
cost the Department of the Treasury less than $500,000 over the
2018-2022 period; such spending would be subject to the
availability of appropriated funds.
Enacting H.R. 3898 would increase the number of people and
entities that would be subject to civil or criminal penalties.
Penalties are recorded in the budget as revenues and a portion
of those penalties can be spent without further appropriation.
Pay-as-you-go procedures apply to this bill because enacting
H.R. 3898 would affect direct spending and revenues. However,
CBO estimates that implementing the additional sanctions in
H.R. 3898 would affect very few people or entities because of
the broad scope of restrictions that exist under current law
and executive orders that address financial and other
interactions with North Korea. Thus enacting the bill would
have insignificant effects on both revenues and direct
spending, CBO estimates.
CBO estimates that enacting H.R. 3898 would not
significantly increase net direct spending or on-budget
deficits in any of the four consecutive 10-year periods
beginning in 2028.
H.R. 3898 contains no intergovernmental or private sector
mandates as defined in the Unfunded Mandates Reform Act.
The CBO staff contact for this estimate is Jacob Fabian.
The estimate was approved by H. Samuel Papenfuss, Deputy
Assistant Director for Budget Analysis, and John McClelland,
Assistant Director for Tax Analysis.
Federal Mandates Statement
This information is provided in accordance with section 423
of the Unfunded Mandates Reform Act of 1995.
The Committee has determined that the bill does not contain
Federal mandates on the private sector. The Committee has
determined that the bill does not impose a Federal
intergovernmental mandate on State, local, or tribal
governments.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
Applicability to Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of the section
102(b)(3) of the Congressional Accountability Act.
Earmark Identification
With respect to clause 9 of rule XXI of the Rules of the
House of Representatives, the Committee has carefully reviewed
the provisions of the bill and states that the provisions of
the bill do not contain any congressional earmarks, limited tax
benefits, or limited tariff benefits within the meaning of the
rule.
Duplication of Federal Programs
In compliance with clause 3(c)(5) of rule XIII of the Rules
of the House of Representatives, the Committee states that no
provision of the bill establishes or reauthorizes: (1) a
program of the Federal Government known to be duplicative of
another Federal program; (2) a program included in any report
from the Government Accountability Office to Congress pursuant
to section 21 of Public Law 111-139; or (3) a program related
to a program identified in the most recent Catalog of Federal
Domestic Assistance, published pursuant to the Federal Program
Information Act (Pub. L. No. 95-220, as amended by Pub. L. No.
98-169).
Disclosure of Directed Rulemaking
Pursuant to section 3(i) of H. Res. 5, (115th Congress),
the following statement is made concerning directed
rulemakings: H.R. 3898 requires the Secretary of the Treasury
to prescribe regulations to implement the conditions and
prohibitions described in Section 3(a) and (b) of the Act.
Section-by-Section Analysis of the Legislation
Sec. 1: Short title
This Act may be cited as the Impeding North Korea's Access
to Finance Act of 2017.
Sec. 2: Findings
Congressional findings make note of the following:
The Treasury Department has found North Korea to
be a ``jurisdiction of primary money laundering concern,'' due
to its use of state-controlled banks and front companies to
support the development of weapons of mass destruction (WMD)
and ballistic missiles.
The Financial Action Task Force (FATF) has called
on its members to apply effective counter-measures to protect
their financial sectors from North Korean money laundering, WMD
proliferation financing, and the financing of terrorism.
The UN Panel of Experts' report from February 2017
concluded that North Korea continued to access the
international financial system in spite of UN sanctions. In
addition, the report found that no UN member state had reported
taking actions to freeze North Korean assets; and a combination
of sanctions evasion by the country as well as inadequate
enforcement by foreign countries had undermined the
effectiveness of UN sanctions.
A September 2017 report from the UN Panel again
determined that North Korea continued to violate financial
sanctions through the use of agents abroad; foreign financial
institutions provided correspondent banking services to North
Korean persons and front companies for illicit purposes;
foreign companies maintained sanctionable links with North
Korean financial institutions; and North Korea generated at
least $270 million through the violation of UN sectoral
sanctions since the February 2017 report.
North Korea maintains access to financial services
through non-North Korean nationals who help mask the identity
of bank accounts' end users.
North Korea's sixth nuclear test on September 3,
2017 had an estimated explosive power more than 100 times
greater than that generated by its first test in 2006.
North Korea has successfully tested submarine-
launched and intercontinental ballistic missiles, and is
rapidly progressing in its development of a nuclear-armed
missile that can reach U.S. territory.
Sec. 3: Conditions with respect to certain accounts and transactions at
United States financial institutions
Correspondent and Payable-Through Accounts
Within 45 days of enactment, the Secretary of the Treasury
shall issue regulations to prohibit, or impose strict
conditions on, the opening or maintaining of a foreign
financial institution's correspondent or payable-through
account(s) at a U.S. financial institution if the foreign
financial institution knowingly facilitates a significant
transaction or provides significant financial services for a
covered person.
A person that violates or attempts to violate these
sanctions would be subject to civil penalties not to exceed
$250,000, or twice the amount of the transaction that is the
basis of the violation, whichever is greater. In addition,
criminal penalties of not more than $1 million in fines, or
imprisonment of up to 20 years, would be imposed on persons who
willfully commit or attempt to commit a violation.
Transactions by U.S. financial institutions
Within 45 days of enactment, Treasury would also be
required to prohibit any U.S. financial institution, or a
person owned or controlled by it, from engaging in a
significant transaction with or benefitting any person that the
Secretary finds to be a covered person.
Violators of this subsection would be subject to civil
penalties not to exceed $250,000, or twice the amount of the
transaction that is the basis of the violation, whichever is
greater.
A covered person, as defined further under Sec. 7, denotes
the following:
A. Any person designated by an applicable Executive
order with respect to North Korea;
B. Any North Korean person that facilitates the
transfer of bulk cash or covered goods (jewels,
precious metals, and precious stones);
C. Any North Korean financial institution;
D. Any North Korean person employed outside of North
Korea (with discretion for the Secretary to exempt
defectors granted asylum or refugee status, or
essential North Korean diplomatic personnel, provided
they do not otherwise qualify as a covered person);
E. Any person acting on behalf of, or at the
direction of, a person described under A through D;
F. Any person that knowingly employs a person
described under D;
G. Any person that facilitates the import of goods,
services, technology, or natural resources, including
energy imports and minerals, or their derivatives, from
North Korea;
H. Any person that facilitates the export of goods,
services, technology, or natural resources, including
energy exports and minerals, or derivatives, to North
Korea, except for food, medicine, or medical supplies
required for civilian humanitarian needs;
I. Any person that invests in, or participates in a
joint venture with, an entity in which the Government
of North Korea participates, or an entity that is
created or organized under North Korean law;
J. Any person that provides financial services,
including through a subsidiary or joint venture, in
North Korea;
K. Any person that insures, registers, facilitates
the registration of, or maintains insurance or a
registration for, a vessel owned, controlled, commanded
or operated by a North Korean person; or
L. Any person providing specialized teaching,
training, or information to a North Korean person that
1) may contribute to North Korea's development and
proliferation of WMD, including systems designed in
whole or in part for the delivery of such weapons; or
2) may contribute to significant activities undermining
cybersecurity.
Sec. 4: Opposition to assistance by the international financial
institutions and the Export-Import Bank
This section would require the U.S. Executive Director at
the international financial institutions to oppose assistance
to a foreign government if the President determines that, in
the year prior to considering approval of the assistance, the
government knowingly failed to prevent the provision of
financial services to, or failed to freeze the funds, financial
assets, and economic resources of, a covered person described
under subparagraphs (A) through (E) of Section 7(2).
The President may waive this provision for up to 180 days
upon reporting to Congress that the foreign government's
failure is due solely to a lack of capacity, or that the
government is taking effective steps to prevent the failure's
recurrence. The President may also issue a waiver upon
determining that it is vital to U.S. national security
interests.
In addition, this section would require the Export-Import
Bank to deny assistance for the export of goods or services to
a covered person.
Sec. 5: Treasury reports on compliance, penalties, and technical
assistance
No later than 120 days after enactment, and every 90 days
thereafter, the Secretary of the Treasury would be required to
submit a report to the Financial Services Committee and Senate
Committee on Banking, Housing, and Urban Affairs that includes:
A list of financial institutions that
knowingly facilitated a transaction, or provided
significant financial services to, a covered person; or
that failed to exercise appropriate due diligence to
prevent such activities;
A list of any penalties imposed in the
reporting period; and
A description of Treasury's efforts-through
consultations, technical assistance, or other
appropriate activities-to strengthen financial
institutions and foreign countries' capacity to prevent
the provision of financial services benefitting a
covered person.
This report shall be made public on the Treasury
Department's website.
Upon request by the Financial Services Committee or Senate
Committee on Banking, Housing, and Urban Affairs, the Under
Secretary of the Treasury for Terrorism and Financial
Intelligence would be required to provide testimony on the
effects of H.R. 3898 with respect to North Korea's access to
finance.
This section would also require the U.S. Executive Director
at the IMF to support the Fund's use of its administrative
budget for technical assistance on anti-money laundering and
combatting the financing of terrorism.
Sec. 6: Suspension and termination of prohibitions and penalties
The President may suspend any provision, on a case-by-case
basis, for up to 180 days at a time upon certifying to Congress
that the Government of North Korea has:
Committed to the verifiable suspension of
North Korea's proliferation and testing of WMD,
including delivery systems for such weapons; and
Has agreed to multilateral talks including
the U.S. government, with the goal of permanently and
verifiably limiting North Korea's WMD and ballistic
missile programs.
The President may also suspend any provision upon
certifying to Congress that the waiver is vital to U.S.
national security interests, with an explanation of the reasons
therefor.
Sunset
H.R. 3898's provisions would expire 30 days after the
President certifies to Congress that the Government of North
Korea:
Has ceased to pose a significant threat to
national security, with an explanation of the reasons
therefor; or
Is committed to, and is taking effective
steps to achieving, the goal of permanently and
verifiably limiting its WMD and ballistic missile
programs.
The President may also sunset the Act by certifying to
Congress that its termination is vital to U.S. national
security interests, with an explanation of the reasons
therefor.
Sec. 7: Definitions
This section defines terms consistent with appropriate
statutes and regulations, and includes a definition of covered
persons.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, and existing law in which no
change is proposed is shown in roman):
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (new matter is
printed in italic and existing law in which no change is
proposed is shown in roman):
BRETTON WOODS AGREEMENTS ACT
* * * * * * *
SEC. 73. OPPOSITION TO ASSISTANCE FOR ANY GOVERNMENT THAT FAILS TO
IMPLEMENT SANCTIONS ON NORTH KOREA.
(a) In General.--The Secretary of the Treasury shall instruct
the United States Executive Director at the international
financial institutions (as defined under section 1701(c) of the
International Financial Institutions Act) to use the voice and
vote of the United States to oppose the provision of financial
assistance to a foreign government, other than assistance to
support basic human needs, if the President determines that, in
the year preceding consideration of approval of such
assistance, the government has knowingly failed to prevent the
provision of financial services to, or freeze the funds,
financial assets, and economic resources of, a person described
under subparagraphs (A) through (E) of section 7(2) of the
Impeding North Korea's Access to Finance Act of 2017.
(b) Waiver.--The President may waive subsection (a) for up to
180 days at a time with respect to a foreign government if the
President reports to Congress that--
(1) the foreign government's failure described under
(a) is due exclusively to a lack of foreign government
capacity;
(2) the foreign government is taking effective steps
to prevent recurrence of such failure; or
(3) such waiver is vital to the national security
interests of the United States.
----------
EXPORT-IMPORT BANK ACT OF 1945
* * * * * * *
Sec. 2. (a)(1) There is hereby created a corporation with the
name Export-Import Bank of the United States which shall be an
agency of the United States of America. The objects and
purposes of the Bank shall be to aid in financing and to
facilitate exports of goods and services, imports, and the
exchange of commodities and services between the United States
or any of its territories or insular possessions and any
foreign country or the agencies or nationals of any such
country, and in so doing to contribute to the employment of
United States workers. The Bank's objective in authorizing
loans, guarantees, insurance, and credits shall be to
contribute to maintaining or increasing employment of United
States workers. In connection with and in furtherance of its
objects and purposes, the Bank is authorized and empowered to
do a general banking business except that of circulation; to
receive deposits; to purchase, discount, rediscount, sell, and
negotiate, with or without its endorsement or guaranty, and to
guarantee notes, drafts, checks, bills of exchange,
acceptances, including bankers' acceptances, cable transfers,
and other evidences of indebtedness; to guarantee, insure, co-
insure, reinsure against political and credit risks of loss; to
purchase, sell, and guarantee securities but not to purchase
with its funds any stock in any other corporation except that
it may acquire any such stock, through the enforcement of any
lien or pledge or otherwise to satisfy a previously contracted
indebtedness to it; to accept bills and drafts drawn upon it;
to issue letters of credit; to purchase and sell coin, bullion,
and exchange; to borrow and to lend money; to perform any act
herein authorized in participation with any other person,
including any individual, partnership, corporation, or
association; to adopt, alter, and use a corporate seal, which
shall be judicially noticed; to sue and to be sued, to complain
and to defend in any court of competent jurisdiction; to
represent itself or to contract for representation in all legal
and arbitral proceedings outside the United States; and the
enumeration of the foregoing powers shall not be deemed to
exclude other powers necessary to the achievement of the
objects and purposes of the Bank. The Bank shall be entitled to
the use of the United States mails in the same manner and upon
the same conditions as the executive departments of the
Government. The Bank is authorized to publish or arrange for
the publications of any documents, reports, contracts, or other
material necessary in connection with or in furtherance of its
objects and purposes without regard to the provisions of
section 501 of title 44, United States Code, whenever the Bank
determines that publication in accordance with the provisions
of such section would not be practicable. Subject to
regulations which the Bank shall issue pursuant to section 553
of title 5, United States Code, the Bank may impose and collect
reasonable fees to cover the costs of conferences and seminars
sponsored by, and publications provided by, the Bank, and may
accept reimbursement for travel and subsistence expenses
incurred by a director, officer, or employee of the Bank, in
accordance with subchapter I of chapter 57 of title 5, United
States Code. Amounts received under the preceding sentence
shall be credited to the fund which initially paid for such
activities and shall be offset against the expenses of the Bank
for such activities. The Bank is hereby authorized to use all
of its assets and all moneys which have been or may thereafter
be allocated to or borrowed by it in the exercise of its
functions. Net earnings of the Bank after reasonable provision
for possible losses shall be used for payment of dividends on
capital stock. Any such dividends shall be deposited into the
Treasury as miscellaneous receipts.
(2) In order for the Bank to be competitive in all of its
financing programs with countries whose exports compete with
United States exports, the Bank shall establish a program
that--
(A) provides medium-term financing where necessary to
be fully competitive--
(i) at rates of interest to the customer
which are equal to rates established in
international agreements;
(ii) in amounts up to 85 percent of the total
cost of the exports involved; and
(iii) with principal amounts of not more than
$25,000,000; and
(B) enables the Bank to cooperate fully with the
Secretary of Commerce and the Administrator of the
Small Business Administration to develop a program for
purposes of disseminating information (using existing
private institutions) to small business concerns
regarding the medium-term financing provided under this
paragraph.
(3) Enhancement of Medium-Term Program.--To enhance the
medium-term financing program established pursuant to paragraph
(2), the Bank shall establish measures to--
(A) improve the competitiveness of the Bank's medium-
term financing and ensure that its medium-term
financing is fully competitive with that of other major
official export credit agencies;
(B) ease the administrative burdens and procedural
and documentary requirements imposed on the users of
medium-term financing;
(C) attract the widest possible participation of
private financial institutions and other sources of
private capital in the medium-term financing of United
States exports; and
(D) render the Bank's medium-term financing as
supportive of United States exports as is its Direct
Loan Program.
(b)(1)(A) It is the policy of the United States to foster
expansion of exports of manufactured goods, agricultural
products, and other goods and services, thereby contributing to
the promotion and maintenance of high levels of employment and
real income, a commitment to reinvestment and job creation, and
the increased development of the productive resources of the
United States. To meet this objective in all its programs, the
Export-Import Bank is directed, in the exercise of its
functions, to provide guarantees, insurance, and extensions of
credit at rates and on terms and other conditions which are
fully competitive with the Government-supported rates and terms
and other conditions available for the financing of exports of
goods and services from the principal countries whose exporters
compete with United States exporters, including countries the
governments of which are not members of the Arrangement (as
defined in section 10(h)(3)). The Bank shall, in cooperation
with the export financing instrumentalities of other
governments, seek to minimize competition in Government-
supported export financing and shall, in cooperation with other
appropriate United States Government agencies, seek to reach
international agreements to reduce government subsidized export
financing.
(B) It is further the policy of the United States that loans
made by the Bank in all its programs shall bear interest at
rates determined by the Board of Directors, consistent with the
Bank's mandate to support United States exports at rates and on
terms and conditions which are fully competitive with exports
of other countries, and consistent with international
agreements. For the purpose of the preceding sentence, rates
and terms and conditions need not be identical in all respects
to those offered by foreign countries, but should be
established so that the effect of such rates, terms, and
conditions for all the Bank's programs, including those for
small businesses and for medium-term financing, will be to
neutralize the effect of such foreign credit on international
sales competition. The Bank shall consider its average cost of
money as one factor in its determination of interest rates,
where such consideration does not impair the Bank's primary
function of expanding United States exports through fully
competitive financing. The Bank may not impose a credit
application fee unless (i) the fee is competitive with the
average fee charged by the Bank's primary foreign competitors,
and (ii) the borrower or the exporter is given the option of
paying the fee at the outset of the loan or over the life of
the loan and the present value of the fee determined under
either such option is the same amount. It is also the policy of
the United States that the Bank in the exercise of its
functions should supplement and encourage, and not compete
with, private capital; that the Bank, in determining whether to
provide support for a transaction under the loan, guarantee, or
insurance program, or any combination thereof, shall consider
the need to involve private capital in support of United States
exports as well as the cost of the transaction as calculated in
accordance with the requirements of the Federal Credit Reform
Act of 1990; that the Bank shall accord equal opportunity to
export agents and managers, independent export firms, export
trading companies, and small commercial banks in the
formulation and implementation of its programs; that the Bank
should give emphasis to assisting new and small business
entrants in the agricultural export market, and shall, in
cooperation with other relevant Government agencies, including
the Commodity Credit Corporation, develop a program of
education to increase awareness of export opportunities among
small agribusinesses and cooperatives, that loans, so far as
possible consistent with the carrying out of the purposes of
subsection (a) of this section, shall generally be for specific
purposes, and, in the judgment of the Board of Directors, offer
reasonable assurance of repayment; and that in authorizing any
loan or guarantee, the Board of Directors shall take into
account any serious adverse effect of such loan or guarantee on
the competitive position of United States industry, the
availability of materials which are in short supply in the
United States, and employment in the United States, and shall
give particular emphasis to the objective of strengthening the
competitive position of United States exporters and thereby of
expanding total United States exports. Only in cases where the
President, after consultation with the Committee on Financial
Services of the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate, determines
that such action would be in the national interest where such
action would clearly and importantly advance United States
policy in such areas as international terrorism (including,
when relevant, a foreign nation's lack of cooperation in
efforts to eradicate terrorism), nuclear proliferation, the
enforcement of the Foreign Corrupt Practices Act of 1977, the
Arms Export Control Act, the International Emergency Economic
Powers Act, or the Export Administration Act of 1979,
environmental protection and human rights (such as are provided
in the Universal Declaration of Human Rights adopted by the
United Nations General Assembly on December 10, 1948)
(including child labor), should the Export-Import Bank deny
applications for credit for nonfinancial or noncommercial
considerations. Each such determination shall be delivered in
writing to the President of the Bank, shall state that the
determination is made pursuant to this section, and shall
specify the applications or categories of applications for
credit which should be denied by the Bank in furtherance of the
national interest.
(C) Consistent with the policy of section 501 of the Nuclear
Non-Proliferation Act of 1978 and section 119 of the Foreign
Assistance Act of 1961, the Board of Directors shall name an
officer of the Bank whose duties shall include advising the
President of the Bank on ways or promoting the export of goods
and services to be used in the development, production, and
distribution of nonnuclear renewable energy resources,
disseminating information concerning export opportunities and
the availability of Bank support for such activities, and
acting as a liaison between the Bank and the Department of
Commerce and other appropriate departments and agencies.
(D) It is further the policy of the United States to foster
the delivery of United States services in international
commerce. In exercising its powers and functions, the Bank
shall give full and equal consideration to making loans and
providing guarantees for the export of services (independently,
or in conjunction with the export of manufactured goods,
equipment, hardware or other capital goods) consistent with the
Bank's policy to neutralize foreign subsidized credit
competition and to supplement the private capital market.
(E)(i)(I) It is further the policy of the United States to
encourage the participation of small business in international
commerce.
(II) In exercising its authority, the Bank shall develop a
program which gives fair consideration to making loans and
providing guarantees for the export of goods and services by
small businesses.
(ii) It is further the policy of the United States that the
Bank shall give due recognition to the policy stated in section
2(a) of the Small Business Act that ``the Government should
aid, counsel, assist, and protect, insofar as is possible, the
interests of small business concerns in order to preserve free
competitive enterprise''.
(iii) In furtherance of this policy, the Board of Directors
shall designate an officer of the Bank who--
(I) shall be responsible to the President of the Bank
for all matters concerning or affecting small business
concerns; and
(II) among other duties, shall be responsible for
advising small business concerns of the opportunities
for small business concerns in the functions of the
Bank, with particular emphasis on conducting outreach
and increasing loans to socially and economically
disadvantaged small business concerns (as defined in
section 8(a)(4) of the Small Business Act), small
business concerns (as defined in section 3(a) of the
Small Business Act) owned by women, and small business
concerns (as defined in section 3(a) of the Small
Business Act) employing fewer than 100 employees, and
for maintaining liaison with the Small Business
Administration and other departments and agencies in
matters affecting small business concerns.)
(iv) The Director appointed to represent the interests of
small business under section 3(c) of this Act shall ensure that
the Bank carries out its responsibilities under clauses (ii)
and (iii) of this subparagraph and that the Bank's financial
and other resources are, to the maximum extent possible,
appropriately used for small business needs.
(v) To assure that the purposes of clauses (i) and (ii) of
this subparagraph are carried out, the Bank shall make
available, from the aggregate loan, guarantee, and insurance
authority available to it, an amount to finance exports
directly by small business concerns (as defined under section 3
of the Small Business Act) which shall be not less than 25
percent of such authority for each fiscal year. From the amount
made available under the preceding sentence, it shall be a goal
of the Bank to increase the amount made available to finance
exports directly by small business concerns referred to in
section 3(i)(1).
(vi) The Bank shall utilize the amount set-aside pursuant to
clause (v) of this subparagraph to offer financing for small
business exports on terms which are fully competitive with
regard to interest rates and with regard to the portion of
financing which may be provided, guaranteed, or insured.
Financing under this clause (vi) shall be available without
regard to whether financing for the particular transaction was
disapproved by any other Federal agency.
(vii)(I) The Bank shall utilize a part of the amount set
aside pursuant to clause (v) to provide lines of credit or
guarantees to consortia of small or medium size banks, export
trading companies, State export finance agencies, export
financing cooperatives, small business investment companies (as
defined in section 103 of the Small Business Investment Act of
1958), or other financing institutions or entities in order to
finance small business exports.
(II) Financing under this clause (vii) shall be made
available only where the consortia or the participating
institutions agree to undertake processing, servicing, and
credit evaluation functions in connection with such financing.
(III) To the maximum extent practicable, the Bank shall
delegate to the consortia or other financing institutions or
entities the authority to approve financing under this clause
(vii).
(IV) In the administration of the program under this clause
(vii), the Bank shall provide appropriate technical assistance
to participating consortia and may require such consortia
periodically to furnish information to the Bank regarding the
number and amount of loans made and the creditworthiness of the
borrowers.
(viii) In order to assure that the policy stated in clause
(i) is carried out, the Bank shall promote small business
exports and its small business export financing programs in
cooperation with the Secretary of Commerce, the Office of
International Trade of the Small Business Administration, and
the private sector, particularly small business organizations,
State agencies, chambers of commerce, banking organizations,
export management companies, export trading companies and
private industry.
(ix) The Bank shall provide, through creditworthy trade
associations, export trading companies, State export finance
companies, export finance cooperatives, and other multiple-
exporter organizations, medium-term risk protection coverage
for the members and clients of such organizations. Such
coverage shall be made available to each such organization
under a single risk protection policy covering its members or
clients. Nothing in this provision shall be interpreted as
limiting the Bank's authority to deny support for specific
transactions or to disapprove a request by such an organization
to participate in such coverage.
(x) The Bank shall implement technology improvements that are
designed to improve small business outreach, including allowing
customers to use the Internet to apply for the Bank's small
business programs.
(F) Consistent with international agreements, the Bank shall
urge the Foreign Credit Insurance Association to provide
coverage against 100 per centum of any loss with respect to
exports having a value of less than $100,000.
(G) Participation in or access to long-, medium-, and short-
term financing, guarantees, and insurance provided by the Bank
shall not be denied solely because the entity seeking
participation or access is not a bank or is not a United States
person.
(H)(i) It is further the policy of the United States to
foster the development of democratic institutions and market
economies in countries seeking such development, and to assist
the export of high technology items to such countries.
(ii) In exercising its authority, the Bank shall develop a
program for providing guarantees and insurance with respect to
the export of high technology items to countries making the
transition to market based economies, including eligible East
European countries (within the meaning of section 3 of the
Support For East European Democracy (SEED) Act of 1989).
(iii) As part of the ongoing marketing and outreach efforts
of the Bank, the Bank shall, to the maximum extent practicable,
inform high technology companies, particularly small business
concerns (as such term is defined in section 3 of the Small
Business Act), about the programs of the Bank for United States
companies interested in exporting high technology goods to
countries making the transition to market based economies,
including any eligible East European country (within the
meaning of section 3 of the Support For East European Democracy
(SEED) Act of 1989).
(iv) In carrying out clause (iii), the Bank shall--
(I) work with other agencies involved in export
promotion and finance; and
(II) invite State and local governments, trade
centers, commercial banks, and other appropriate public
and private organizations to serve as intermediaries
for the outreach efforts.
(I) The President of the Bank shall undertake efforts to
enhance the Bank's capacity to provide information about the
Bank's programs to small and rural companies which have not
previously participated in the Bank's programs. Not later than
1 year after the date of enactment of this subparagraph, the
President of the Bank shall submit to Congress a report on the
activities undertaken pursuant to this subparagraph.
(J) The Bank shall implement an electronic system designed to
track all pending transactions of the Bank.
(K) The Bank shall promote the export of goods and services
related to renewable energy sources.
(L) The Bank shall require an applicant for assistance from
the Bank to disclose whether the applicant has been found by a
court of the United States to have violated the Foreign Corrupt
Practices Act of 1977, the Arms Export Control Act, the
International Emergency Economic Powers Act, or the Export
Administration Act of 1979 within the preceding 12 months, and
shall maintain, in cooperation with the Department of Justice,
for not less than 3 years a record of such applicants so found
to have violated any such Act.
(M) Not later than 2 years after the date of the enactment of
the Export-Import Bank Reform and Reauthorization Act of 2015,
the Bank shall implement policies--
(i) to accept electronic documents with respect to
transactions whenever possible, including copies of
bills of lading, certifications, and compliance
documents, in such manner so as not to undermine any
potential civil or criminal enforcement related to the
transactions; and
(ii) to accept electronic payments in all of its
programs.
(2) Prohibition on Aid to Marxist-Leninist Countries.--
(A) In general.--The Bank in the exercise of its
functions shall not guarantee, insure, extend credit,
or participate in the extension of credit--
(i) in connection with the purchase or lease
of any product by a Marxist-Leninist country,
or agency or national thereof; or
(ii) in connection with the purchase or lease
of any product by any other foreign country, or
agency or national thereof, if the product to
be purchased or leased by such other country,
agency, or national is, to the knowledge of the
Bank, principally for use in, or sale or lease
to, a Marxist-Leninist country.
(B) Marxist-Leninist country defined.--
(i) In general.--For purposes of this
paragraph, the term ``Marxist-Leninist
country'' means any country that maintains a
centrally planned economy based on the
principles of Marxism-Leninism, or is
economically and militarily dependent on any
other such country.
(ii) Specific countries deemed to be marxist-
leninist.--Unless otherwise determined by the
President in accordance with subparagraph (C),
the following countries are deemed to be
Marxist-Leninist countries for purposes of this
paragraph:
(I) Democratic People's Republic of
Korea.
(II) Democratic Republic of
Afghanistan.
(III) People's Republic of China.
(IV) Republic of Cuba.
(V) Socialist Republic of Vietnam.
(VI) Tibet.
(C) Presidential determination that a country has
ceased to be Marxist-Leninist.--If the President
determines that any country on the list contained in
subparagraph (B)(ii) has ceased to be a Marxist-
Leninist country (within the definition of such term in
subparagraph (B)(i)), such country shall not be treated
as a Marxist-Leninist country for purposes of this
paragraph after the date of such determination, unless
the President subsequently determines that such country
has again become a Marxist-Leninist country.
(D) Presidential determination relating to financing
in the national interest.--
(i) In general.--Subparagraph (A) shall not
apply to guarantees, insurance, or extensions
of credit by the Bank to a country, agency, or
national described in clause (i) or (ii) of
subparagraph (A) (in connection with
transactions described in such clauses) if the
President determines that such guarantees,
insurance, or extensions of credit are in the
national interest.
(ii) Separate determination for certain
transactions.--The President shall make a
separate determination under clause (i) for
each transaction described in clause (i) or
(ii) of subparagraph (A) for which the Bank
would extend a loan in an amount equal to or
greater than $50,000,000.
(iii) Report of clause (i) determinations to
congress.--Any determination by the President
under clause (i) shall be reported to the
Congress not later than the earlier of--
(I) the end of the 30-day period
beginning on the date of such
determination; or
(II) the date the Bank takes final
action with respect to the first
transaction involving the country,
agency, or national for which such
determination is made after the date of
the enactment of the Export-Import Bank
Amendments of 1974, unless a report of
a determination with respect to such
date of enactment.
(iv) Report of clause (ii) determinations to
congress.--Any determination by the President
under clause (ii) shall be reported to the
Congress not later than the earlier of--
(I) the end of the 30-day period
beginning on the date of such
determination; or
(II) the date the Bank takes final
action with respect to the transaction
for which such determination is made.
(3) Except as provided by the fourth sentence of this
paragraph, no loan or financial guarantee or general guarantee
or insurance facility or combination thereof (i) in an amount
which equals or exceeds $100,000,000, or (ii) for the export of
technology, fuel, equipment, materials, or goods or services to
be used in the construction, alteration, operation, or
maintenance of nuclear power, enrichment, reprocessing,
research, or heavy water production facilities, shall be
finally approved by the Board of Directors of the Bank, unless
in each case the Bank has submitted to the Congress with
respect to such loan, financial guarantee, or combination
thereof, a detailed statement describing and explaining the
transaction, at least 25 days of continuous session of the
Congress prior to the date of final approval. For the purpose
of the preceding sentence, continuity of a session of the
Congress shall be considered as broken only by an adjournment
of the Congress sine die, and the days on which either House is
not in session because of an adjournment of more than 3 days to
a day certain shall be excluded in the computation of the 25
day period referred to in such sentence. Such statement shall
contain--
(A) in the case of a loan or financial guarantee--
(i) a brief description of the purposes of
the transaction;
(ii) the identity of the party or parties
requesting the loan or financial guarantee;
(iii) the nature of the goods or services to
be exported and the use for which the goods or
services are to be exported; and
(iv) in the case of a general guarantee or
insurance facility--
(I) a description of the nature and
purpose of the facility;
(II) the total amount of guarantees
or insurance; and
(III) the reasons for the facility
and its methods of operation; and
(B) a full explanation of the reasons for Bank
financing of the transaction, the amount of the loan to
be provided by the Bank, the approximate rate and
repayment terms at which such loan will be made
available and the approximate amount of the financial
guarantee.
If the Bank submits a statement to the Congress under this
paragraph and either House of Congress is in an adjournment for
a period which continues for at least ten days after the date
of submission of the statement, then any such loan or guarantee
or combination thereof may, subject to the second sentence of
this paragraph, be finally approved by the Board of Directors
upon the termination of the twenty-five-day period referred to
in the first sentence of this paragraph or upon the termination
of a thirty-five-calendar-day period (which commences upon the
date of submission of the statement), whichever occurs sooner.
(4)(A) If the Secretary of State determines that--
(i) any country that has agreed to International
Atomic Energy Agency nuclear safeguards materially
violates, abrogates, or terminates, after October 26,
1977, such safeguards;
(ii) any country that has entered into an agreement
for cooperation concerning the civil use of nuclear
energy with the United States materially violates,
abrogates, or terminates, after October 26, 1977, any
guarantee or other undertaking to the United States
made in such agreement;
(iii) any country that is not a nuclear-weapon state
detonates, after October 26, 1977, a nuclear explosive
device;
(iv) any country willfully aids or abets, after June
29, 1994, any non-nuclear-weapon state to acquire any
such nuclear explosive device or to acquire
unsafeguarded special nuclear material; or
(v) any person knowingly aids or abets, after the
date of enactment of the National Defense Authorization
Act for Fiscal Year 1997, any non-nuclear-weapon state
to acquire any such nuclear explosive device or to
acquire unsafeguarded special nuclear material,
then the Secretary of State shall submit a report to the
appropriate committees of the Congress and to the Board of
Directors of the Bank stating such determination and
identifying each country or person the Secretary determines has
so acted.
(B)(i) If the Secretary of State makes a determination under
subparagraph (A)(v) with respect to a foreign person, the
Congress urges the Secretary to initiate consultations
immediately with the government with primary jurisdiction over
that person with respect to the imposition of the prohibition
contained in subparagraph (C).
(ii) In order that consultations with that government may be
pursued, the Board of Directors of the Bank shall delay
imposition of the prohibition contained in subparagraph (C) for
up to 90 days if the Secretary of State requests the Board to
make such delay. Following these consultations, the prohibition
contained in subparagraph (C) shall apply immediately unless
the Secretary determines and certifies to the Congress that
that government has taken specific and effective actions,
including appropriate penalties, to terminate the involvement
of the foreign person in the activities described in
subparagraph (A)(v). The Board of Directors of the Bank shall
delay the imposition of the prohibition contained in
subparagraph (C) for up to an additional 90 days if the
Secretary requests the Board to make such additional delay and
if the Secretary determines and certifies to the Congress that
that government is in the process of taking the actions
described in the preceding sentence.
(iii) Not later than 90 days after making a determination
under subparagraph (A)(v), the Secretary of State shall submit
to the appropriate committees of the Congress a report on the
status of consultations with the appropriate government under
this subparagraph, and the basis for any determination under
clause (ii) that such government has taken specific corrective
actions.
(C) The Board of Directors of the Bank shall not give
approval to guarantee, insure, or extend credit, or participate
in the extension of credit in support of United States exports
to any country, or to or by any person, identified in the
report described in subparagraph (A).
(D) The prohibition in subparagraph (C) shall not apply to
approvals to guarantee, insure, or extend credit, or
participate in the extension of credit in support of United
States exports to a country with respect to which a
determination is made under clause (i), (ii), (iii), or (iv) of
subparagraph (A) regarding any specific event described in such
clause if the President determines and certifies in writing to
the Congress not less than 45 days prior to the date of the
first approval following the determination that it is in the
national interest for the Bank to give such approvals.
(E) The prohibition in subparagraph (C) shall not apply to
approvals to guarantee, insure, or extend credit, or
participate in the extension of credit in support of United
States exports to or by a person with respect to whom a
determination is made under clause (v) of subparagraph (A)
regarding any specific event described in such clause if--
(i) the Secretary of State determines and certifies
to the Congress that the appropriate government has
taken the corrective actions described in subparagraph
(B)(ii); or
(ii) the President determines and certifies in
writing to the Congress not less than 45 days prior to
the date of the first approval following the
determination that--
(I) reliable information indicates that--
(aa) such person has ceased to aid or
abet any non-nuclear-weapon state to
acquire any nuclear explosive device or
to acquire unsafeguarded special
nuclear material; and
(bb) steps have been taken to ensure
that the activities described in item
(aa) will not resume; or
(II) the prohibition would have a serious
adverse effect on vital United States
interests.
(F) For purposes of this paragraph:
(i) The term ``country'' has the meaning given to
``foreign state'' in section 1603(a) of title 28,
United States Code.
(ii) The term ``knowingly'' is used within the
meaning of the term ``knowing'' in section 104(h)(3) of
the Foreign Corrupt Practices Act (15 U.S.C. 78dd-
2(h)(3)).
(iii) The term ``person'' means a natural person as
well as a corporation, business association,
partnership, society, trust, any other nongovernmental
entity, organization, or group, and any governmental
entity operating as a business enterprise, and any
successor of any such entity.
(iv) The term ``nuclear-weapon state'' has the
meaning given the term in Article IX(3) of the Treaty
on the Non-Proliferation of Nuclear Weapons, signed at
Washington, London, and Moscow on July 1, 1968.
(v) The term ``non-nuclear-weapon state'' has the
meaning given the term in section 830(5) of the Nuclear
Proliferation Prevention Act of 1994 (Public Law 103-
236; 108 Stat. 521).
(vi) The term ``nuclear explosive device'' has the
meaning given the term in section 830(4) of the Nuclear
Proliferation Prevention Act of 1994 (Public Law 103-
236; 108 Stat. 521).
(vii) The term ``unsafeguarded special nuclear
material'' has the meaning given the term in section
830(8) of the Nuclear Proliferation Prevention Act of
1994.
(5) The Bank shall not guarantee, insure, or extend credit,
or participate in the extension of credit in connection with
(A) the purchase of any product, technical data, or other
information by a national or agency of any nation which engages
in armed conflict declared or otherwise, with the Armed Forces
of the United States, (B) the purchase by any nation (or
national or agency thereof) of any product, technical data, or
other information which is to be used principally by or in any
such nation described in clause (A), or (C) the purchase of any
liquid metal fast breeder nuclear reactor or any nuclear fuel
reprocessing facility. The Bank shall not guarantee, insure, or
extend credit, or participate in the extension of credit in
connection with the purchase of any product, technical data, or
other information by a national or agency of any nation if the
President determines that any such transaction would be
contrary to the national interest.
(6)(A) The Bank shall not guarantee, insure, or extend
credit, or participate in an extension of credit in connection
with any credit sale of defense articles and defense services
to any country.
(B) Subparagraph (A) shall not apply to any sale of defense
articles or services if--
(i) the Bank is requested to provide a guarantee or
insurance for the sale;
(ii) the President determines that the defense
articles or services are being sold primarily for anti-
narcotics purposes;
(iii) section 490(e) of the Foreign Assistance Act of
1961 does not apply with respect to the purchasing
country; and
(iv) the President determines, in accordance with
subparagraph (C), that the sale is in the national
interest of the United States; and
(v) the Bank determines that, notwithstanding the
provision of a guarantee or insurance for the sale, not
more than 5 percent of the guarantee and insurance
authority available to the Bank in any fiscal year will
be used by the Bank to support the sale of defense
articles or services.
(C) In determining whether a sale of defense articles or
services would be in the national interest of the United
States, the President shall take into account whether the sale
would--
(i) be consistent with the anti-narcotics policy of
the United States;
(ii) involve the end use of a defense article or
service in a major illicit drug producing or major
drug-transit country (as defined in section 481(e) of
the Foreign Assistance Act of 1961); and
(iii) be made to a country with a democratic form of
government.
(D)(i) The Board shall not give approval to guarantee or
insure a sale of defense articles or services unless--
(I) the President determines, in accordance with
subparagraph (C), that it is in the national interest
of the United States for the Bank to provide such
guarantee or insurance;
(II) the President determines, after consultation
with the Assistant Secretary of State for Human Rights
and Humanitarian Affairs, that the purchasing country
has complied with all restrictions imposed by the
United States on the end use of any defense articles or
services for which a guarantee or insurance was
provided under subparagraph (B), and has not used any
such defense articles or services to engage in a
consistent pattern of gross violations of
internationally recognized human rights; and
(III) such determinations have been reported to the
Speaker and the Committee on Financial Services of the
House of Representatives, and to the Committee on
Banking, Housing, and Urban Affairs and the Committee
on Foreign Relations of the Senate, not less than 25
days of continuous session of the Congress before the
date of such approval.
(ii) For purposes of clause (i), continuity of a
session of the Congress shall be considered as broken
only by an adjournment of the Congress sine die, and
the days on which either House is not in session
because of an adjournment of more than 3 days to a day
certain shall be excluded in the computation of the 25-
day period referred to in such clause.
(E) The provision of a guarantee or insurance under
subparagraph (B) shall be deemed to be the provision of
security assistance for purposes of section 502B of the Foreign
Assistance Act of 1961 (relating to governments which engage in
a consistent pattern of gross violations of internationally
recognized human rights).
(F) To the extent that defense articles or services for which
a guarantee or insurance is provided under subparagraph (B) are
used for a purpose other than anti-narcotics purposes, they may
be used only for those purposes for which defense articles and
defense services sold under the Arms Export Control Act
(relating to the foreign military sales program) may be used
under section 4 of such Act.
(G) As used in subparagraphs (B), (C), (D), and (F), the term
``defense articles or services'' means articles, services, and
related technical data that are designated as defense articles
and defense services pursuant to sections 38 and 47(7) of the
Arms Export Control Act and listed on the United States
Munitions List (part 121 of title 22 of the Code of Federal
Regulations).
(H) Once in each calendar quarter, the Bank shall submit a
report to the Committee on Banking, Housing, and Urban Affairs
of the Senate, and the Committee on Financial Services of the
House of Representatives on all instances in which the Bank,
during the reporting quarter, guaranteed, insured, or extended
credit or participated in an extension of credit in connection
with any credit sale of an article, service, or related
technical data described in subparagraph (G) that the Bank
determined would not be put to a military use or described in
subparagraph (I)(i). Such report shall include a description of
each of the transactions and the justification for the Bank's
actions.
(I)(i) Subparagraph (A) shall not apply to a transaction
involving defense articles or services if--
(I) the Bank determines that--
(aa) the defense articles or services are
nonlethal; and
(bb) the primary end use of the defense
articles or services will be for civilian
purposes; and
(II) at least 15 calendar days before the date on
which the Board of Directors of the Bank gives final
approval to Bank participation in the transaction, the
Bank provides notice of the transaction to the
Committees on Financial Services and on Appropriations
of the House of Representatives and the Committees on
Banking, Housing, and Urban Affairs and on
Appropriations of the Senate.
(ii) Not more than 10 percent of the loan, guarantee, and
insurance authority available to the Bank for a fiscal year may
be used by the Bank to support the sale of defense articles or
services to which subparagraph (A) does not apply by reason of
clause (i) of this subparagraph.
(iii) Not later than September 1 of each fiscal year, the
Comptroller General of the United States, in consultation with
the Bank, shall submit to the Committees on Financial Services
and on Appropriations of the House of Representatives and the
Committees on Banking, Housing, and Urban Affairs and on
Appropriations of the Senate a report on the end uses of any
defense articles or services described in clause (i) with
respect to which the Bank provided support during the second
preceding fiscal year.
(7) In no event shall the Bank have outstanding at any time
in excess of 7\1/2\ per centum of the limitation imposed by
section 7 of this Act for such guarantees, insurance, credits
or participation in credits with respect to exports of defense
articles and services to countries which, in the judgment of
the Board of Directors of the Bank, are less developed.
(8) The Bank shall supplement but not compete with private
capital and the programs of the Commodity Credit Corporation to
ensure that adequate financing will be made available to assist
the export of agricultural commodities, except that, consistent
with section 2(b)(1)(A) of this Act, the Bank in assisting any
such export transactions shall, in cooperation with the export
financing instrumentalities of other governments, seek to
minimize competition in Government-supported export financing,
and shall, in cooperation with other appropriate United States
Government agencies, seek to reach international agreements to
reduce Government subsidized export financing. In order to
carry out the purposes of this subsection, the Bank shall
consult with the Secretary of Agriculture and where the
Secretary of Agriculture has recommended against Bank financing
of the export of a particular agricultural commodity, shall
take such recommendation into consideration in determining
whether to provide credit or other assistance for any export
sale of such commodity, and shall consider the importance of
agricultural commodity exports to the United States export
market and the Nation's balance of trade in deciding whether or
not to provide assistance under this subsection.
(9)(A) The Board of Directors of the Bank shall, in
consultation with the Secretary of Commerce and the Trade
Promotion Coordinating Committee, take prompt measures,
consistent with the credit standards otherwise required by law,
to promote the expansion of the Bank's financial commitments in
sub-Saharan Africa under the loan, guarantee, and insurance
programs of the Bank.
(B)(i) The Board of Directors shall establish and use an
advisory committee to advise the Board of Directors on the
development and implementation of policies and programs
designed to support the expansion described in subparagraph
(A).
(ii) The advisory committee shall make recommendations to the
Board of Directors on how the Bank can facilitate greater
support by United States commercial banks for trade with sub-
Saharan Africa.
(iii) The advisory committee shall terminate on the date on
which the authority of the Bank expires under section 7.
(C) The Bank shall include in the annual report to the
Congress submitted under section 8(a) a separate section that
contains a report on the efforts of the Bank to--
(i) improve its working relationships with the
African Development Bank, the African Export-Import
Bank, and other institutions in the region that are
relevant to the purposes of subparagraph (A) of this
paragraph; and
(ii) coordinate closely with the United States
Foreign Service and Foreign Commercial Service, and
with the overall strategy of the United States
Government for economic engagement with Africa pursuant
to the African Growth and Opportunity Act.
(D) Consistent with the requirement that the Bank obtain a
reasonable assurance of repayment in connection with each
transaction the Bank supports, the Bank shall, in consultation
with the entities described in subparagraph (C), seek to
qualify a greater number of appropriate African entities for
participation in programs of the Bank.
(10)(A) The Bank shall not, without a specific authorization
by law, guarantee, insure, or extend credit (or participate in
the extension of credit) to--
(i) assist specific countries with balance of
payments financing; or
(ii) assist (as the primary purpose of any such
guarantee, insurance, or credit) any country in the
management of its international indebtedness, other
than its outstanding obligations to the Bank.
(B) Nothing contained in subparagraph (A) shall preclude
guarantees, insurance, or credit the primary purpose of which
is to support United States exports.
(11) Prohibition Relating to Angola.--The Bank may not
guarantee, insure, or extend (or participate in the extension
of) credit in connection with any export of any good (other
than food or an agricultural commodity) or service to the
People's Republic of Angola until the President certifies to
the Congress that free and fair elections have been held in
Angola in which all participants were afforded free and fair
access, and that the government of Angola--
(A) is willing, and is actively seeking, to achieve
an equitable political settlement of the conflict in
Angola, including free and fair elections, through a
mutual cease-fire and a dialogue with the opposition
armed forces;
(B) has demonstrated progress in protecting
internationally recognized human rights, and
particularly in--
(i) ending, through prosecution or other
means, involvement of members of the military
and security forces in political violence and
abuses of internationally recognized human
rights;
(ii) vigorously prosecuting persons engaged
in political violence who are connected with
the government; and
(iii) bringing to justice those responsible
for the abduction, torture, and murder of
citizens of Angola and citizens of the United
States; and
(C) has demonstrated progress in its respect for, and
protection of--
(i) the freedom of the press;
(ii) the freedom of speech;
(iii) the freedom of assembly;
(iv) the freedom of association (including
the right to organize for political purposes);
(v) internationally recognized worker rights;
and
(vi) other attributes of political pluralism
and democracy.
The President shall include in each report made pursuant to
this paragraph a detailed statement with respect to each of the
conditions set forth in this paragraph. This paragraph shall
not be construed to impose any requirement with respect to
Angola that is more restrictive than any requirement imposed by
this section generally on all other countries.
(12) Prohibition relating to russian transfers of certain
missile systems.--If the President of the United States
determines that the military or Government of the Russian
Federation has transferred or delivered to the People's
Republic of China an SS-N-22 missile system and that the
transfer or delivery represents a significant and imminent
threat to the security of the United States, the President of
the United States shall notify the Bank of the transfer or
delivery as soon as practicable. Upon receipt of the notice and
if so directed by the President of the United States, the Board
of Directors of the Bank shall not give approval to guarantee,
insure, extend credit, or participate in the extension of
credit in connection with the purchase of any good or service
by the military or Government of the Russian Federation.
(13) Prohibition on assistance to develop or promote certain
railway connections and railway-related connections.--The Bank
shall not guarantee, insure, or extend (or participate in the
extension of) credit in connection with the export of any good
or service relating to the development or promotion of any
railway connection or railway-related connection that does not
traverse or connect with Armenia and does traverse or connect
Baku, Azerbaijan, Tbilisi, Georgia, and Kars, Turkey.
(14) Prohibition on support involving persons
connected with North Korea.--The Bank may not
guarantee, insure, or extend credit, or participate in
the extension of credit in connection with the export
of a good or service to a covered person (as defined
under section 7 of the Impeding North Korea's Access to
Finance Act of 2017).
(c)(1) The Bank shall charge fees and premiums commensurate,
in the judgment of the Bank, with risks covered in connection
with the contractual liability that the Bank incurs for
guarantees, insurance, coinsurance, and reinsurance against
political and credit risks of loss.
(2) The Bank may issue such guarantees, insurance,
coinsurance, and reinsurance to or with exporters, insurance
companies, financial institutions, or others, or groups
thereof, and where appropriate may employ any of the same to
act as its agent in the issuance and servicing of such
guarantees, insurance, coinsurance, and reinsurance, and the
adjustment of claims arising thereunder.
(3) Transferability of Guarantees.--
(A) In general.--With respect to medium-term and
long-term obligation insured or guaranteed by the Bank
after the date of the enactment of the Export-Import
Bank Act Amendments of 1986, the Bank shall authorize
the unrestricted transfer of such obligations by the
originating lenders or their transferees to other
lenders without affecting, limiting, or terminating the
guarantee or insurance provided by the Bank.
(B) Guarantee coverage.--For the guarantee program
provided for in this subsection, the Bank may provide
up to 100 percent coverage of the interest and
principal if the Board of Directors determines such
coverage to be necessary to ensure acceptance of Bank
guarantees by financial institutions for any
transaction in any export market in which the Bank is
open for business.
(d)(1) In carrying out its responsibilities under this Act,
the Bank shall work to ensure that United States companies are
afforded an equal and nondiscriminatory opportunity to bid for
insurance in connection with transactions assisted by the Bank.
(2) Competitive opportunity for insurance companies.--In the
case of any long-term loan or guarantee of not less than
$25,000,000, the Bank shall seek to ensure that United States
insurance companies are accorded a fair and open competitive
opportunity to provide insurance against risk of loss in
connection with any transaction with respect to which such loan
or guarantee is provided.
(3) Responsive actions.--If the Bank becomes aware that a
fair and open competitive opportunity is not accorded to any
United States insurance company in a foreign country with
respect to which the Bank is considering a loan or guarantee,
the Bank--
(A) may approve or deny the loan or guarantee after
considering whether such action would be likely to
achieve competitive access for United States insurance
companies; and
(B) shall forward information regarding any foreign
country that denies United States insurance companies a
fair and open competitive opportunity to the Secretary
of Commerce and to the United States Trade
Representative for consideration of a recommendation to
the President that access by such country to export
credit of the United States should be restricted.
(4) Notice of approval.--If the Bank approves a loan or
guarantee with respect to a foreign country notwithstanding
information regarding denial by that foreign country of
competitive opportunities for United States insurance
companies, the Bank shall include notice of such approval and
the reason for such approval in the report on competition in
officially supported export credit required under subsection
(b)(1)(A).
(5) Definitions.--For purposes of this section--
(A) the term ``United States insurance company''--
(i) includes an individual, partnership,
corporation, holding company, or other legal
entity which is authorized (or in the case of a
holding company, subsidiaries of which are
authorized) by a State to engage in the
business of issuing insurance contracts or
reinsuring the risk underwritten by insurance
companies; and
(ii) includes foreign operations, branches,
agencies, subsidiaries, affiliates, or joint
ventures of any entity described in clause (i);
and
(B) the term ``fair and open competitive
opportunity'' means, with respect to the provision of
insurance by a United States insurance company, that
the company--
(i) has received notice of the opportunity to
provide such insurance; and
(ii) has been evaluated for such opportunity
on a nondiscriminatory basis.
(e) Limitation on Assistance Which Adversely Affect the
United States.--
(1) In General.--The Bank may not extend any direct
credit of financial guarantee for establishing or
expanding production of any commodity for export by any
country other than the United States, if--
(A) the Bank determines that--
(i) the commodity is likely to be in
surplus on world markets at the time
the resulting commodity will first be
sold; or
(ii) the resulting production
capacity is expected to compete with
United States production of the same,
similar, or competing commodity; and
(B) the Bank determines that the extension of
such credit or guarantee will cause substantial
injury to United States producers of the same,
similar, or competing commodity.
In making the determination under subparagraph (B), the
Bank shall determine whether the facility that would
benefit from the extension of a credit or guarantee is
reasonably likely to produce a commodity in addition
to, or other than, the commodity specified in the
application and whether the production of the
additional commodity may cause substantial injury to
United States producers of the same, or a similar or
competing, commodity.
(2) Outstanding orders and preliminary injury
determinations.--
(A) Orders.--The Bank shall not provide any
loan or guarantee to an entity for the
resulting production of substantially the same
product that is the subject of--
(i) a countervailing duty or
antidumping order under title VII of
the Tariff Act of 1930; or
(ii) a determination under title II
of the Trade Act of 1974.
(B) Affirmative determination.--Within 60
days after the date of the enactment of this
paragraph, the Bank shall establish procedures
regarding loans or guarantees provided to any
entity that is subject to a preliminary
determination of a reasonable indication of
material injury to an industry under title VII
of the Tariff Act of 1930. The procedures shall
help to ensure that these loans and guarantees
are likely to not result in a significant
increase in imports of substantially the same
product covered by the preliminary
determination and are likely to not have a
significant adverse impact on the domestic
industry. The Bank shall report to the
Committee on Financial Services of the House of
Representatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate on the
implementation of these procedures.
(C) Comment period.--The Bank shall establish
procedures under which the Bank shall notify
interested parties and provide a comment period
of not less than 14 days (which, on request of
any affected party, shall be extended to a
period of not more than 30 days) with regard to
loans or guarantees reviewed pursuant to
subparagraph (B) or (D).
(D) Consideration of investigations under
title ii of the trade act of 1974.--In making
any determination under paragraph (1) for a
transaction involving more than $10,000,000,
the Bank shall consider investigations under
title II of the Trade Act of 1974 that have
been initiated at the request of the President
of the United States, the United States Trade
Representative, the Committee on Finance of the
Senate, or the Committee on Ways and Means of
the House of Representatives, or by the
International Trade Commission on its own
motion.
(E) Anti-circumvention.--The Bank shall not
provide a loan or guarantee if the Bank
determines that providing the loan or guarantee
will facilitate circumvention of an order or
determination referred to in subparagraph (A).
(3) Exception.--Paragraphs (1) and (2) shall not
apply in any case where, in the judgment of the Board
of Directors of the Bank, the short- and long-term
benefits to industry and employment in the United
States are likely to outweigh the short- and long-term
injury to United States producers and employment of the
same, similar, or competing commodity.
(4) Definition.--For purposes of paragraph (1)(B),
the extension of any credit or guarantee by the Bank
will cause substantial injury if the amount of the
capacity for production established, or the amount of
the increase in such capacity expanded, by such credit
or guarantee equals or exceeds 1 percent of United
States production.
(5) Designation of sensitive commercial sectors and
products.--Not later than 120 days after the date of
the enactment of this Act, the Bank shall submit a list
to the Committee on Banking, Housing, and Urban Affairs
of the Senate and the Committee on Financial Services
of the House of Representatives, which designates
sensitive commercial sectors and products with respect
to which the provision of financing support by the Bank
is deemed unlikely by the President of the Bank due to
the significant potential for a determination that such
financing support would result in an adverse economic
impact on the United States. The President of the Bank
shall review on an annual basis thereafter the list of
sensitive commercial sectors and products and the Bank
shall submit an updated list to the Committee on
Banking, Housing, and Urban Affairs of the Senate and
the Committee on Financial Services of the House of
Representatives of such sectors and products.
(6) Financial threshold determinations.--For purposes
of determining whether a proposed transaction exceeds a
financial threshold under this subsection or under the
procedures or rules of the Bank, the Bank shall
aggregate the dollar amount of the proposed transaction
and the dollar amounts of all loans and guarantees,
approved by the Bank in the preceding 24-month period,
that involved the same foreign entity and substantially
the same product to be produced.
(7) Procedures to reduce adverse effects of loans and
guarantees on industries and employment in united
states.--
(A) Consideration of economic effects of
proposed transactions.--If, in making a
determination under this paragraph with respect
to a loan or guarantee, the Bank conducts a
detailed economic impact analysis or similar
study, the analysis or study, as the case may
be, shall include consideration of--
(i) the factors set forth in
subparagraphs (A) and (B) of paragraph
(1); and
(ii) the views of the public and
interested parties.
(B) Notice and comment requirements.--
(i) In general.--If, in making a
determination under this subsection
with respect to a loan or guarantee,
the Bank intends to conduct a detailed
economic impact analysis or similar
study, the Bank shall publish in the
Federal Register a notice of the
intent, and provide a period of not
less than 14 days (which, on request by
any affected party, shall be extended
to a period of not more than 30 days)
for the submission to the Bank of
comments on the economic effects of the
provision of the loan or guarantee,
including comments on the factors set
forth in subparagraphs (A) and (B) of
paragraph (1). In addition, the Bank
shall seek comments on the economic
effects from the Department of
Commerce, the Office of Management and
Budget, the Committee on Banking,
Housing, and Urban Affairs of the
Senate, and the Committee on Financial
Services of the House of
Representatives.
(ii) Content of notice.--The notice
shall include appropriate,
nonproprietary information about--
(I) the country to which the
goods involved in the
transaction will be shipped;
(II) the type of goods being
exported;
(III) the amount of the loan
or guarantee involved;
(IV) the goods that would be
produced as a result of the
provision of the loan or
guarantee;
(V) the amount of increased
production that will result
from the transaction;
(VI) the potential sales
market for the resulting goods;
and
(VII) the value of the
transaction.
(iii) Procedure regarding materially
changed applications.--
(I) In general.--If a
material change is made to an
application for a loan or
guarantee from the Bank after a
notice with respect to the
intent described in clause (i)
is published under this
subparagraph, the Bank shall
publish in the Federal Register
a revised notice of the intent,
and shall provide for a comment
period, as provided in clauses
(i) and (ii).
(II) Material change
defined.--As used in subclause
(I), the term ``material
change'', with respect to an
application, includes--
(aa) a change of at
least 25 percent in the
amount of a loan or
guarantee requested in
the application; and
(bb) a change in the
principal product to be
produced as a result of
any transaction that
would be facilitated by
the provision of the
loan or guarantee.
(C) Requirement to address views of adversely
affected persons.--Before taking final action
on an application for a loan or guarantee to
which this section applies, the staff of the
Bank shall provide in writing to the Board of
Directors the views of any person who submitted
comments pursuant to subparagraph (B).
(D) Publication of conclusions.--Within 30
days after a party affected by a final decision
of the Board of Directors with respect to a
loan or guarantee makes a written request
therefor, the Bank shall provide to the
affected party a non-confidential summary of
the facts found and conclusions reached in any
detailed economic impact analysis or similar
study conducted pursuant to subparagraph (B)
with respect to the loan or guarantee, that
were submitted to the Board of Directors.
(E) Maintenance of documentation.--The Bank
shall maintain documentation relating to
economic impact analyses and similar studies
conducted under this subsection in a manner
consistent with the Standards for Internal
Control of the Federal Government issued by the
Comptroller General of the United States.
(F) Rule of interpretation.--This paragraph
shall not be construed to make subchapter II of
chapter 5 of title 5, United States Code,
applicable to the Bank.
(G) Regulations.--The Bank shall implement
such regulations and procedures as may be
appropriate to carry out this paragraph.
(f) Authority To Deny Application for Assistance Based on
Fraud or Corruption by Party Involved in the Transaction.--In
addition to any other authority of the Bank, the Bank may deny
an application for assistance with respect to a transaction if
the Bank has substantial credible evidence that any party to
the transaction or any party involved in the transaction has
committed an act of fraud or corruption in connection with the
transaction.
(g) Process for Notifying Applicants of Application Status.--
The Bank shall establish and adhere to a clearly defined
process for--
(1) acknowledging receipt of applications;
(2) informing applicants that their applications are
complete or, if incomplete or containing a minor
defect, of the additional material or changes that, if
supplied or made, would make the application eligible
for consideration; and
(3) keeping applicants informed of the status of
their applications, including a clear and timely
notification of approval or disapproval, and, in the
case of disapproval, the reason for disapproval, as
appropriate.
(h) Response to Application for Financing; Implementation of
Online Loan Request and Tracking Process.--
(1) Response to applications.--Within 5 days after
the Bank receives an application for financing, the
Bank shall notify the applicant that the application
has been received, and shall include in the notice--
(A) a request for such additional information
as may be necessary to make the application
complete;
(B) the name of a Bank employee who may be
contacted with questions relating to the
application; and
(C) a unique identification number which may
be used to review the status of the application
at a website established by the Bank.
(2) Website.--Not later than September 1, 2007, the
Bank shall exercise the authority granted by
subparagraphs (E)(x) and (J) of subsection (b)(1) to
establish, and thereafter to maintain, a website
through which--
(A) Bank products may be applied for; and
(B) information may be obtained with respect
to--
(i) the status of any such
application;
(ii) the Small Business Division of
the Bank; and
(iii) incentives, preferences,
targets, and goals relating to small
business concerns (as defined in
section 3(a) of the Small Business
Act), including small business concerns
exporting to Africa.
(i) Due Diligence Standards for Lender Partners.--The Bank
shall set due diligence standards for its lender partners and
participants, which should be applied across all programs
consistently. To minimize or prevent fraudulent activity, the
Bank should require all delegated lenders to implement ``Know
your customer practices''.
(j) Non-subordination Requirement.--In entering into
financing contracts, the Bank shall seek a creditor status
which is not subordinate to that of all other creditors, in
order to reduce the risk to, and enhance recoveries for, the
Bank.
(k) Prohibition on Discrimination Based on Industry.--
(1) In general.--Except as provided in this Act, the
Bank may not--
(A) deny an application for financing based
solely on the industry, sector, or business
that the application concerns; or
(B) promulgate or implement policies that
discriminate against an application based
solely on the industry, sector, or business
that the application concerns.
(2) Applicability.--The prohibitions under paragraph
(1) apply only to applications for financing by the
Bank for projects concerning the exploration,
development, production, or export of energy sources
and the generation or transmission of electrical power,
or combined heat and power, regardless of the energy
source involved.
* * * * * * *
----------
INTERNATIONAL FINANCIAL INSTITUTIONS ACT
* * * * * * *
TITLE XVI--HUMAN WELFARE
* * * * * * *
SEC. 1629. SUPPORT FOR CAPACITY OF THE INTERNATIONAL MONETARY FUND TO
PREVENT MONEY LAUNDERING AND FINANCING OF
TERRORISM.
The Secretary of the Treasury shall instruct the United
States Executive Director at the International Monetary Fund to
support the use of the administrative budget of the Fund for
technical assistance that strengthens the capacity of Fund
members to prevent money laundering and the financing of
terrorism.
* * * * * * *
ADDITIONAL VIEWS
The alarming, rapid acceleration in the scale and range of
North Korea's nuclear and long-range missile programs,
including the launch of an intercontinental ballistic missile
in July that appeared to have the range to hit major U.S.
cities, followed by an announcement in September that North
Korea had tested a hydrogen bomb, have led many lawmakers to
believe that a new policy towards North Korea involving a
maximum pressure campaign of financial isolation is the best
chance we have to resolve this situation peacefully. Such a
strategy must entail a massive, immediate and qualitatively
different level of pressure, the likes of which the North
Koreans have yet to experience, and which could threaten Kim
Jong-un's very hold on power.
H.R. 3898 calls for just such a U.S. policy approach to
North Korea, one that also draws us away from a military-first
response. The legislation takes a page from the Iran sanctions
playbook by mandating the use of powerful secondary sanctions,
which were widely credited with ultimately forcing Iran to the
negotiating table.
In the context of North Korea, an American program of
secondary sanctions wouldn't just ban U.S. companies from doing
business with North Korea, it would also force companies,
individuals, banks and governments to make a choice: stop doing
business with North Korea and its enablers or lose access to
the United States financial system.
Although we saw in the Iran context just how powerful this
approach can be when carefully fashioned as part of a broad
coalition, we must remember that sanctions alone are not a
strategy. Sanctions are a tool, and in order for them to work,
they must be linked to a broader strategic effort, with a high
level of skill in their design and implementation, and with a
clear understanding of the policy goals we are trying to
achieve. While much attention has been given to the work done
by the Treasury Department, and the Office of Foreign Assets
Control (OFAC) in particular, and our intelligence agencies, in
terms of getting effective, crippling sanctions in place on
Iran, the diplomatic outreach needed to make those sanctions
work and to make them stick was equally important.
According to Adam Szubin, who formerly served as the Under
Secretary of the Treasury for Terrorism and Financial Crimes,
when Congress considered a series of secondary sanction
measures in 2010 aimed at containing Iran's nuclear program,
the Administration was staffed and ready to immediately deploy
senior officials to every corner of the world upon passage.
What followed was a massive and sustained effort involving
hundreds of thousands of hours of visits to different capitals
everywhere from Azerbaijan to Singapore to ensure that bankers,
traders and regulators were enforcing the sanctions in a tough
and meaningful way.\1\ The result was the most effective
sanctions campaign the world had ever seen.
---------------------------------------------------------------------------
\1\Testimony of Adam J. Szubin, Senate Banking Subcommittee on
National Security and International Trade and Finance hearing titled
``Secondary Sanctions against Chinese Institutions: Assessing their
Utility for Constraining North Korea'' (May 10, 2017).
---------------------------------------------------------------------------
Today, there is widespread recognition that any successful
strategy to isolate and pressure North Korea must not only
entail the effective implementation of sanctions, but also a
similarly active, global engagement by the United States,
including complex negotiations with North Korea, skilled policy
coordination with our allies, and careful diplomacy with China.
It is extremely concerning, therefore, that President Trump
has shown virtually no appetite for the type of diplomatic
engagement necessary to secure concessions from North Korea, or
made a serious or concerted effort to enlist China and other
key players to do their part to isolate the Kim regime.
In fact, President Trump's reckless threats, his promise of
``fire and fury,'' his vow to destroy the Kim regime, his name-
calling, warmongering, and rejection of diplomacy directly
contradict his leading cabinet officials who continue to stress
the importance of imposing pressure on the Kim regime. It also
demonstrates a commander-in-chief who lacks the discipline and
the capacity to convince our allies to join us in dealing with
the North Korean threat.
Given the high-stakes objectives; the lack of a unified,
coherent policy from the executive branch; and concern about
U.S. credibility on the global stage, we view this legislation
as an opportunity for Congress to show that the voice of
America still matters, that the United States is committed to
policy consistency, and that the world should not view the
Trump doctrine as a broader signal of American unreliability.
Maxine Waters.
Ed Perlmutter.
Vicente Gonzalez.
Emanuel Cleaver.
Al Green.
Gwen Moore.
Brad Sherman.
Nydia M. Velazquez.
Stephen F. Lynch.
Michael E. Capuano.
[all]
