§9221c — Title 22 Foreign Relations and Intercourse | U.S. Code

Summary

The Secretary of the Treasury, working with the Secretary of State, must, not later than 180 days after December 20, 2019, ban any entity that a United States financial institution owns or controls and that is set up or run outside the United States from knowingly doing certain transactions, directly or indirectly, with the Government of North Korea or with people listed for North Korea sanctions under (1) subsection (a), (b), or (g) of section 9214; (2) an applicable Executive order; or (3) an applicable United Nations Security Council resolution. A "certain transaction" means any deal that would be illegal under an order or rule made under the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) if it were done in the United States or by a U.S. person. If an outside entity owned or controlled by the U.S. financial institution breaks, tries to break, helps break, or causes a break of these rules, the U.S. financial institution can be fined under section 206(b) of that Act the same as other violators. "United States financial institution" is the term defined in 31 CFR 510.328 (or a similar rule).

Title 22, §9221c

Foreign Relations and Intercourse — Source: USLM XML via OLRC

(a)Not later than 180 days after December 20, 2019, the Secretary of the Treasury, in consultation with the Secretary of State, shall prohibit an entity owned or controlled by a United States financial institution and established or maintained outside the United States from knowingly engaging in any transaction described in subsection (b) directly or indirectly with the Government of North Korea or 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)A transaction described in this subsection is a transaction that would be prohibited by an order or regulation issued pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) if the transaction were engaged in in the United States or by a United States person.

(c)The civil penalty provided for in section 206(b) of the International Emergency Economic Powers Act (50 U.S.C. 1705(b)) shall apply to a United States financial institution to the same extent that such penalty applies to a person that commits an unlawful act described in section 206(a) of that Act if an entity owned or controlled by the United States financial institution and established or maintained outside the United States violates, attempts to violate, conspires to violate, or causes a violation of any order or regulation issued to implement subsection (a).

(d)In this section, the term “United States financial institution” has the meaning given the term “U.S. financial institution” in section 510.328 of title 31, Code of Federal Regulations (or any corresponding similar regulation or ruling).

Notes & Related Subsidiaries

Editorial Notes

References in Text

The International Emergency Economic Powers Act, referred to in subsec. (b), 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.

§9221c Prohibition on Transactions with Certain Sanctioned Persons by Persons Owned or Controlled by United States Financial Institutions