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Senate Banking Markup of North Korea Sanctions Bill

Senate Banking Committee

Markup of S1591 – Banking Restrictions Involving North Korea (BRINK) Act

Tuesday, November 7, 2017

Key Topics & Takeaways

  • Unanimous Support: The Senate Banking Committee unanimously approved of an amendment in the nature of a substitute to S. 1591, the Banking Restrictions Involving North Korea (BRINK) Act. The bill builds on sanctions tools already provided to the administration to counter the nuclear threat posed by North Korea.
  • Risk-Based Approach: Sen. Catherine Cortez-Masto (D-Nev.) underscored the need for a comprehensive administration strategy to enforce sanctions tools and utilize other diplomatic measures to counter the threats posed by the Kim regime.  She stated that legislative text adopted in the manager’s amendment will ensure Treasury’s Financial Crimes Enforcement Network (FinCEN) will induce banks to use a “risk-based approach” against North Korea, which will be defined by Treasury.

Opening Statements

Sen. Mike Crapo (R-Idaho), Committee Chair

Sen. Mike Crapo (R-Idaho) stated that the committee would mark up S. 1591, the Banking Restrictions Involving North Korea (BRINK) Act, and consider an amendment in the nature of a substitute offered by himself, in partnership with Sens. Brown (D-Ohio), Toomey (R-Penn.), and Van Hollen (D-Md.).  He explained that the manager’s amendment incorporates five of seven amendments offered by members of the committee to further restrict the Kim regime’s ability to advance its nuclear program and ballistic missile tests.

Sen. Sherrod Brown (D-Ohio), Ranking Member

Brown explained that the bill builds on sanctions tools already provided to the administration to counter the nuclear threat posed by North Korea.  He emphasized that the bill will toughen the enforcement regime against banks that knowingly continue to do business with Pyongyang, adding that they can either do business with North Korea or the United States, “but not both.”

Brown highlighted the importance of a broader diplomatic and economic strategy to increase pressure on the Kim regime.  He called for a “coherent strategy” to strengthen global sanctions tools to counter the threats posed by a nuclear North Korea.

Vote

The manager’s amendment to S. 1591 was agreed to unanimously by members of the Senate Banking Committee.

Additional Remarks

Sen. Pat Toomey (R-Penn.)

Toomey stated that the committee’s approval of the BRINK Act sends a clear message to the world that the entire U.S. government is committed to implementing the strongest sanctions possible against North Korea.

Sen. Chris Van Hollen (D-Md.)

Van Hollen explained that the BRINK Act tightens sanctions against North Korea and “puts real teeth into them.”  He underscored the importance that the committee approved this sanctions bill just as President Trump arrives in China for a bilateral summit with President Xi Jinping.

Sen. Elizabeth Warren (D-Mass.)

Warren highlighted the significance of the final manager’s package including the End Banking for Human Traffickers Act, which she said requires the administration to review how anti-money laundering efforts can be strengthened to protect against human trafficking.

Sen. Joe Donnelly (D-Ind.)

Donnelly explained that the amendment he offered will require the administration to report to Congress within 90 days of passage on a comprehensive strategy to counter the North Korean nuclear threat.  He also emphasized another amendment offered that would require the Treasury Department to inform the committee where the department needs additional resources to continue vigorously enforcing the sanctions laws on the books.

Sen. Catherine Cortez-Masto (D-Nev.)

Cortez-Masto underscored the need for a comprehensive administration strategy to enforce sanctions tools and utilize other diplomatic measures to counter the threats posed by the Kim regime.  She referenced a United Nations report that indicated that the North Korean government evades almost every form of sanctions imposed against it.  Cortez-Masto stated that legislative text adopted in the manager’s amendment will ensure Treasury’s Financial Crimes Enforcement Network (FinCEN) will induce banks to use a “risk-based approach” against North Korea, to be defined by Treasury.

For more information on this hearing, please click here.