§9221b Sanctions with Respect to Foreign Financial Institutions That Provide Financial Services to Certain Sanctioned Persons

Summary

The Secretary of the Treasury must use one or more penalties against a foreign bank or financial firm that, knowingly, on or after the date that is 120 days after December 20, 2019, gives major financial services to someone who has been sanctioned for North Korea under certain U.S. law sections, an applicable Executive order, or an applicable United Nations Security Council resolution. The penalties can include blocking the firm’s property and interests in the United States under the International Emergency Economic Powers Act and stopping or putting strict limits on the firm’s ability to have a correspondent or payable-through account in the United States. The President may use the powers in sections 203 and 205 of the International Emergency Economic Powers Act to carry this out. Breaking these rules brings the penalties in subsections (b) and (c) of section 206 of that Act. The President must issue rules to implement this no later than 120 days after December 20, 2019. These authorities do not include banning the importation of goods (goods means articles, materials, supplies, or manufactured products, but not technical data). Key terms: “account”/“correspondent account”/“payable-through account” (see 31 U.S.C. 5318A), “foreign financial institution” (see 31 C.F.R. 510.309), and “knowingly” (actual knowledge or should have known).