22 U.S.C. § 9221b: Sanctions with respect to…

Summary

The Treasury Secretary must punish a foreign bank if the Secretary, after talking with the Secretary of State, finds that the bank knowingly gave major financial help to someone who is under U.S. or U.N. sanctions related to North Korea on or after the date that is 120 days after December 20, 2019. The people covered are those listed under certain parts of section 9214, an applicable executive order, or a U.N. Security Council resolution. The punishments can include freezing the bank’s property and stopping all transactions in property that are in the United States, come into the United States, or are controlled by a U.S. person. The Treasury can also bar or tightly limit the bank from having U.S. correspondent or payable-through accounts. The President may use the emergency economic powers in sections 203 and 205 of the International Emergency Economic Powers Act to do this. Violations carry the penalties in section 206(b) and (c) of that Act. The President must issue rules within 120 days after December 20, 2019. The law does not allow these sanctions to apply to the import of goods. Key terms: account terms are as defined in 31 U.S.C. 5318A, foreign financial institution is as defined in 31 C.F.R. 510.309, and “knowingly” means actual knowledge or should have known.

Title 22, §9221b

Foreign Relations and Intercourse, Source: USLM XML via OLRC

(a)In general

The Secretary of the Treasury shall impose one or more of the sanctions described in subsection (b) with respect to a foreign financial institution that the Secretary determines, in consultation with the Secretary of State, knowingly, on or after the date that is 120 days after December 20, 2019, provides significant financial services to any person designated for the imposition of sanctions with respect to North Korea under—

(1)subsection (a), (b), or (g) of section 9214 of this title;

(2)an applicable Executive order; or

(3)an applicable United Nations Security Council resolution.

(b)Sanctions described

The sanctions that may be imposed with respect to a foreign financial institution subject to subsection (a) are the following:

(1)Asset blocking

The Secretary may block and prohibit, pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.), all transactions in all property and interests in property of the foreign financial institution if such property and interests in property are in the United States, come within the United States, or are or come within the possession or control of a United States person.

(2)Restrictions on correspondent and payable-through accounts

The Secretary may prohibit, or impose strict conditions on, the opening or maintaining in the United States of a correspondent account or a payable-through account by the foreign financial institution.

(c)Implementation; penalties

(1)Implementation

The President may exercise all authorities provided under section 203 and 205 of the International Emergency Economic Powers Act (50 U.S.C. 1702 and 1704) to carry out this section.

(2)Penalties

A person that violates, attempts to violate, conspires to violate, or causes a violation of this section or any regulation, license, or order issued to carry out this section shall be subject to the penalties set forth in subsections (b) and (c) of section 206 of the International Emergency Economic Powers Act (50 U.S.C. 1705) to the same extent as a person that commits an unlawful act described in subsection (a) of that section.

(d)Regulations

Not later than 120 days after December 20, 2019, the President shall, as appropriate, prescribe regulations to carry out this section.

(e)Exception relating to importation of goods

(1)In general

Notwithstanding section 9254(b) of this title or any provision of this section, the authorities and requirements to impose sanctions under this section shall not include the authority or a requirement to impose sanctions on the importation of goods.

(2)Good defined

In this subsection, the term “good” means any article, natural or manmade substance, material, supply or manufactured product, including inspection and test equipment, and excluding technical data.

(f)Definitions

In this section: (1) Account; correspondent account; payable-through account

(2)Foreign financial institution

The term “foreign financial institution” has the meaning given that term in section 510.309 of title 31, Code of Federal Regulations (or any corresponding similar regulation or ruling).

(3)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.

Notes & Related Subsidiaries

Editorial Notes

References in Text

The International Emergency Economic Powers Act, referred to in subsec. (b)(1), is title II of Pub. L. 95–223, Dec. 28, 1977, 91 Stat. 1626, which is classified generally to chapter 35 (§ 1701 et seq.) of Title 50, War and National Defense. For complete classification of this Act to the Code, see

Short Title

note set out under section 1701 of Title 50 and Tables.

Executive Documents

Delegation of Functions Functions and authorities under section 7121 of Pub. L. 116–92 with respect to this section delegated to Secretary of the Treasury, in consultation with the Secretary of State, by section 1(b)(iii) of Memorandum of President of the United States, Feb. 21, 2020, 85 F.R. 13717, set out as a note under section 286yy of this title.

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