United States law has been applied to North Korea in the following ways in response to the North Korean government's objectionable activities:
North Korea poses a threat to U.S. national security because of "the current existence and risk of the proliferation of weapons-usable fissile material on the Korean Peninsula," as declared by President George W. Bush on June 26, 2008, under the terms of the National Emergencies Act (NEA) and the International Emergency Economic Powers Act (IEEPA); North Korea is cited by the United Nations Security Council for its nuclear weapons and ballistic missiles pursuits, withdrawal from the Treaty on the Non-Proliferation of Nuclear Weapons, and contribution to regional tensions; the United States meets the requirements as a member state of the United Nations pursuant to the United Nations Participation Act of 1945 to implement sanctions adopted by the U.N. Security Council; North Korea committed an unprovoked attack that resulted in the sinking of a South Korean naval vessel, Cheonan ; announced a new nuclear test and missile launches in 2009; and engaged in money laundering, counterfeiting of goods and currency, bulk cash smuggling, and narcotics trafficking, all in violation of U.N. Security Council Resolutions, leading President Barack Obama to expand the national emergency in 2010, 2011, 2015, and 2016. U.S. Economic Sanctions Currently in Place

United States economic sanctions imposed on North Korea, as a result both of requirements in U.S. law and decisions made in the executive branch to exercise discretionary authorities, have the following impact:
Trade is limited to food, medicine, and other humanitarian-related goods, all of which require a license. Imports from North Korea are prohibited as of June 2011; exports to North Korea of most U.S.-origin goods, services, or technology are prohibited as of March 2016. Trade in luxury goods is banned. The Department of Commerce denies export licenses for reasons of nuclear proliferation, missile technology, U.N. Security Council requirements, and international terrorism. Arms sales and arms transfers are fully denied. Financial transactions are prohibited . U.S. persons are prohibited from providing financial services for the purpose of evading sanctions, or from providing financial services to a person or entity designated for sanctions. The President, in September 2017, authorized the Secretary of the Treasury to designate for sanctions any foreign financial institution that conducts or facilitates "any significant transaction on behalf of any [designated] person," or "in connection with trade with North Korea." North Korea is designated as a jurisdiction of primary money laundering concern by the Department of the Treasury's Financial Crimes Enforcement Network (FinCEN), effective December 9, 2016. U.S. new investment is prohibited , and investment in North Korea's transportation, mining, energy, or financial sectors is prohibited. North Korea is also ineligible to participate in any U.S. government program that makes credit, credit guarantees, or investment guarantees available. U.S. f oreign aid is minimal and mostly limited to refugees fleeing North Korea; broadcasting into the country; nongovernmental organization programs dedicated to democracy promotion, human rights, and governance; and emergency food aid. In past years, aid related to disabling and dismantling the country's nuclear weapons program has been made available. By law, U.S. representatives in the international financial institutions (IFI) are required to vote against any support for North Korea due to its nuclear weapons ambitions and international terrorism. Human rights and environmental activities would also likely result in U.S. objections to North Korea's participation in the IFI. U.S.-based assets are blocked for North Korean individuals, entities, and vessels designated by the Department of the Treasury's Office of Foreign Assets Control (OFAC). U.S. persons are prohibited from entering into trade and transaction with these designees and, most recently, foreign financial institutions could become subject to U.S. sanctions for facilitating transactions for designated persons. Kim Jong-un, the Korean Workers' Party, and others —banks, shipping companies, seagoing vessels, state agencies, and other individuals affiliated with the state's security regime—are identified as being among those engaged in illicit and punishable activities, possibly including nuclear or ballistic missile programs, undermining cybersecurity, censorship, and sanctions evasion. As a result, effective March 15, 2016, any of their assets under U.S. jurisdiction are frozen, and U.S. persons and entities are prohibited from entering into trade and transactions with the designees. U.S. travel requires a special validation passport issued by the State Department. Such passports are reserved only for travel in the U.S. national interest and are intended for professional reporters, officials with the American Red Cross or International Committee of the Red Cross, or those who have a "compelling humanitarian" justification. The order requires the access to property and interests in property be blocked for any individual or entity identified by the Secretary of the Treasury to have, directly or indirectly
imported, exported, or reexported to, into, or from North Korea any arms or related materiel; provided training, advice, or other services or assistance, or engaged in financial transactions, related to the manufacture, maintenance, or use of any arms or related materiel to be imported, exported, or reexported to, into, or from North Korea, or following their importation, exportation, or reexportation to, into, or from North Korea; imported, exported, or reexported luxury goods to or into North Korea; engaged in money laundering, the counterfeiting of goods or currency, bulk cash smuggling, narcotics trafficking, or other illicit economic activity that involves or supports the Government of North Korea or any senior official thereof; materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, prohibited activities or any person whose property and interests in property are blocked; or be owned or controlled by, or to have acted or purported to act for or on behalf of, any person whose property and interests in property are blocked.
U.S. economic sanctions imposed on North Korea are instigated by that country's activities related to weapons proliferation, especially its tests since 2006 of nuclear weapons and missile technology; regional disruptions; terrorism; narcotics trafficking; undemocratic governance; and illicit activities in international markets, including money laundering, counterfeiting of goods and currency, and bulk cash smuggling. The sanctions have the following consequences for U.S.-North Korea relations:
Trade is limited to food, medicine, and other humanitarian-related goods, all of which require a license. Imports from North Korea are prohibited as of June 2011; exports to North Korea of most U.S.-origin goods, services, or technology are prohibited as of March 2016. Trade in luxury goods is banned. The Department of Commerce denies export licenses for reasons of nuclear proliferation, missile technology, U.N. Security Council requirements, and international terrorism. Arms sales and arms transfers are fully denied. Financial transactions are prohibited. U.S. persons are prohibited from providing financial services for the purpose of evading sanctions, or from providing financial services to a person or entity designated for sanctions. The President, in September 2017, authorized the Secretary of the Treasury to designate for sanctions any foreign financial institution that conducts or facilitates "any significant transaction on behalf of any [designated] person," or "in connection with trade with North Korea." North Korea is designated as a jurisdiction of primary money laundering concern by the Department of the Treasury's Financial Crimes Enforcement Network (FinCEN), effective December 9, 2016. U.S. new investment is prohibited, and investment in North Korea's transportation, mining, energy, or financial sectors is prohibited. North Korea is also ineligible to participate in any U.S. government program that makes credit, credit guarantees, or investment guarantees available. U.S. foreign aid is minimal and mostly limited to refugees fleeing North Korea; broadcasting into the country; nongovernmental organization programs dedicated to democracy promotion, human rights, and governance; and emergency food aid. In past years, aid related to disabling and dismantling the country's nuclear weapons program has been made available. By law, U.S. representatives in the international financial institutions (IFI) are required to vote against any support for North Korea due to its nuclear weapons ambitions and international terrorism. Human rights and environmental activities would also likely result in U.S. objections to North Korea's participation in the IFI. U.S.-based assets are blocked for North Korean individuals, entities, and vessels designated by the Department of the Treasury's Office of Foreign Assets Control (OFAC). U.S. persons are prohibited from entering into trade and transaction with these designees and, most recently, foreign financial institutions could become subject to U.S. sanctions for facilitating transactions for designated persons. Kim Jong-un, the Korean Workers' Party, and others—banks, shipping companies, seagoing vessels, state agencies, and other individuals affiliated with the state's security regime—are identified as being among those engaged in illicit and punishable activities, possibly including nuclear or ballistic missile programs, undermining cybersecurity, censorship, and sanctions evasion. As a result, effective March 15, 2016, any of their assets under U.S. jurisdiction are frozen, and U.S. persons and entities are prohibited from entering into trade and transactions with the designees. U.S. travel requires a special validation passport issued by the State Department. Such passports are reserved only for travel in the U.S. national interest and are intended for professional reporters, officials with the American Red Cross or International Committee of the Red Cross, or those who have a "compelling humanitarian" justification.
From the outbreak of the Korean War in 1950, the United States had imposed fairly comprehensive economic, diplomatic, and political restrictions on North Korea. In 1999, however, President Clinton announced the United States would lift many restrictions on U.S. exports to and imports from North Korea in areas other than those controlled for national security concerns; the Departments of Commerce, Treasury, and Transportation issued new regulations a year later that implemented the new policy. On June 26, 2008, President George W. Bush delisted North Korea as a state sponsor of international terrorism, and removed restrictions based on authorities in the Trading With the Enemy Act and the terrorism designation, replacing them with more circumscribed economic restrictions related to proliferation concerns.
The U.S. sanctions are a result of requirements incorporated into U.S. law by Congress, decisions made in the executive branch to exercise discretionary authorities, and obligations placed on member states of the United Nations by the U.N. Security Council. Though the President, in accordance with the Constitution, leads the way in conducting foreign policy, Congress holds substantial power to shape foreign policy by authorizing and funding programs, advising on appointments, and specifically defining the terms of engagement in accordance with U.S. political and strategic interests. This report presents the legislative basis for U.S. sanctions policy toward North Korea. These sanctions are a critical tenet of the larger bilateral relationship, and this report highlights Congress's role and responsibility in determining the nature of U.S.-North Korea relations.