House approves new sanctions on North Korea

The U.S. House of Representatives passed a measure last week that would place further economic sanctions on North Korea.

The Otto Warmbier North Korea Nuclear Sanctions Act (H.R. 3898), sponsored by Rep. Andy Barr (R-KY), would impose secondary financial sanctions against North Korea.

The legislation would also incentivize stricter sanctions enforcement by foreign countries, and require regular reports on sanctions implementation from the Department of the Treasury. Further, the bill includes Presidential waiver authorities that provide for sanctions relief if North Korea takes meaningful steps to limit its development and proliferation of weapons of mass destruction.

“The bill before us today represents the toughest set of financial sanctions ever directed against the nuclear armed North Korean regime – a regime that still represents a clear and present danger to the global community,” Rep. Jeb Hensarling (R-TX), chairman of the House Financial Services Committee, said. “Sanctions that our committee is bringing to the House today target foreign financial institutions that in some way are corrected to North Korea’s economic activity, activity that ultimately allows this rogue regime to both develop and proliferate weapons of mass destruction.”

Barr said North Korea’s nuclear ambitions represent a threat to the national security of the United States and the world.

“The legislation passed by the House today would hold North Korea accountable by imposing the most far-reaching sanctions ever directed at Pyongyang, putting tremendous economic pressure on the Kim Jong-Un regime and its foreign enablers,” Barr said. “In doing so, we can deny North Korea the financing it needs to fund its nuclear and missile programs.  Clearly, the status quo is not working to change North Korea’s hostile behavior.  I appreciate the bipartisan support for my bill to change course and to give tougher sanctions on North Korea a chance to confront the Kim regime’s belligerence.”

The bill passed the House 415-2.

The House also passed the Family Office Technical Correction Act of 2017 (H.R. 3972), sponsored by Rep. Carolyn Maloney (D-NY). The bill clarifies that family offices and family clients are accredited investors under Regulation D of the Securities and Exchange Commission.

“From time to time there are unintended consequences of regulation. We do wish to ensure that these family offices that otherwise meet the definition of accredited investors have the full range of investment opportunities before them. This bill will do this,” Hensarling said.