Autonomous Sanctions (Designated Persons and Entities and Declared Persons – Democratic People’s Republic of Korea) Amendment List 2015

Administered by Department of Foreign Affairs and Trade

Legislation au F2015L00061 Not in force Legislative Instrument

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Explanatory Statement

 

 

Issued by the Authority of the Minister for Foreign Affairs

 

Autonomous Sanctions Regulations 2011

 

Autonomous Sanctions (Designated Persons and Entities and Declared Persons – Democratic People’s Republic of Korea) Amendment List 2015

 

The Autonomous Sanctions Regulations 2011 (the Regulations) commenced on 15 December 2011.  The purpose of the Regulations is to facilitate the conduct of Australia’s relations with certain countries, and with specific entities or persons outside Australia, through the imposition of autonomous sanctions in relation to those countries, or targeting those entities or persons.

 

Paragraph 6 (1) (a) of the Regulations authorises the Minister for Foreign Affairs (the Minister), by legislative instrument, to designate an entity on the basis that it is mentioned in an item of the table in regulation 6, including on the basis that the Minister is satisfied that the entity is associated with the DPRK’s weapons of mass destruction program or missiles program.  The purpose of such a designation is to subject the designated entity to targeted financial sanctions.  The designated entity becomes the object of the prohibition in regulation 14 (which prohibits directly or indirectly making an asset available to, or for the benefit of, a designated entity, other than as authorised by a permit granted under regulation 18).  An asset owned or controlled by a designated entity is a “controlled asset”, subject to the prohibition in regulation 15 (which requires a person who holds a controlled asset to freeze that asset, by prohibiting that person from either using or dealing with that asset, or allowing it to be used or dealt with, or facilitating the use of or dealing with it, other than as authorised by a permit granted under regulation 18).

 

Each entity listed in Schedule 1 of the Autonomous Sanctions (Designated Persons and Entities and Declared Persons – Democratic People’s Republic of Korea) List 2012 (the Amendment List) is designated by the Minister for the purposes of paragraph 6 (1) (a) of the Regulations on the basis that it is mentioned in Item 2 of the table in regulation 6; that is, an entity that the Minister is satisfied is associated with the DPRK’s weapons of mass-destruction program or missiles program.

 

The corresponding authority for the Minister to revoke designations made under regulation 6 is found in paragraph 10 (1) (a) of the Regulations. Sub-regulations 10 (2) and (3) provide that the Minister may revoke a designation on the Minister’s initiative, or on application.

 

The imposition of sanctions, including through through designations and declarations, is designed to increase pressure on the DPRK to comply with its nuclear non-proliferation and missile program consistent with United Nations Security Council resolutions, and to engage in serious negotiations on its nuclear and missile programs.  The new sanctions include financial and travel restrictions on one entity (a shipping company) and ten DPRK persons associated with the DPRK’s missile proliferation activities.

 

Each person and entity listed in Schedule 1 of the Amendment List is designated by the Minister for the purposes of paragraph 6 (1) (a) of the Regulations, and the ten additional persons are declared by the Minister for the purposes of paragraph 6 (1) (b) of the Regulations, on the basis that he, she or it is a person or entity that the Minister is satisfied is associated with the DPRK’s weapons of mass destruction or missiles program.  

 

The legal framework for the imposition of autonomous sanctions by Australia, of which the Regulations and the Amendment List are part, has been the subject of extensive consultation with governmental and non-governmental stakeholders since May 2010. 

 

The Department of Foreign Affairs and Trade (the Department) conducts ongoing public consultations, including with the Australian financial services sector and broader business community, in relation to these types of measures.  Relevant Commonwealth Government departments were consulted prior to and during the drafting of this legislative instrument.  

 

In order to meet the policy objective of prohibiting unauthorised financial transactions involving the persons and entities specified in the Amendment List, the Department is satisfied that wider consultations beyond those it has already undertaken would be inappropriate (sub-sections 18 (1) and (2) (e) of the Legislative Instruments Act 2003).

 

 

 


Statement of Compatibility with Human Rights

 

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

Autonomous Sanctions (Designated Persons and Entities and Declared Persons – Democratic People’s Republic of Korea) Amendment List 2015

 

The Autonomous Sanctions (Designated Persons and Entities and Declared Persons – Democratic People’s Republic of Korea) Amendment List 2015  (the Amendment List) is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

 

A person or entity subject to designation or declaration under regulation 6 of the Regulations may apply to the Minister for the revocation of those decisions (regulation 11 of the Regulations).  Decisions under both regulations 6 and 11 of the Regulations are judicially reviewable.

 

The targeted financial sanctions imposed on persons and entities designated under paragraph 6 (1) (a) of the Regulations do not affect the title to any asset owned or controlled by the designated person or entity.  A designated person or entity may continue to draw on his or her frozen assets, or receive assets from other sources, to meet basic expenses, including for foodstuffs, rent or mortgage, medicines or medical treatment, taxes, insurance premiums, public utility charges, reasonable professional fees, reimbursement of expenses associated with the provision of legal services, or fees or service charges that are in accordance with a law in force in Australia for the routine holding or maintenance of frozen assets (regulations 18 and 20 of the Regulations).

 

Similarly, a designated person or entity may draw on frozen assets they own or control to satisfy any pre-existing judicial, administrative or arbitral lien or judgement awarded to another (non-designated) person or entity, as well as to make payments required under contracts, agreements or obligations made before the date on which those assets became frozen.

 

Regulation 19 authorises the Minister to waive the operation of a declaration under regulation 6 so as to allow the person to travel to, enter or remain in Australia, either on the grounds that it would be in the national interest or on humanitarian grounds.

 

 

Overview

The Autonomous Sanctions Regulations 2011, enacted in 2011, aim to manage Australia’s international relations by enabling the imposition of autonomous sanctions against specific countries, entities, or persons outside Australia. These regulations, governed by the Minister for Foreign Affairs, target entities or persons associated with the Democratic People’s Republic of Korea's (DPRK) weapons of mass destruction or missile programs, thereby subjecting them to financial sanctions. The 2015 Amendment List specifically designates additional entities and persons connected to the DPRK’s missile proliferation activities, reinforcing the policy objective of pressuring the DPRK to adhere to international non-proliferation norms and engage in negotiations. The measures are designed to align with United Nations Security Council resolutions, ensuring that the sanctions are both targeted and effective in achieving their intended outcomes. The regulatory framework has undergone extensive consultations with various stakeholders, including governmental and non-governmental entities, to ensure its alignment with broader policy goals and its practical implementation. A compatibility statement under the Human Rights (Parliamentary Scrutiny) Act 2011 confirms that these sanctions respect human rights, allowing for judicial review and certain exemptions to meet basic living expenses for designated persons. This approach underscores the balance between enforcing sanctions and protecting fundamental rights.

Scope and Application

The Autonomous Sanctions Regulations 2011, as amended by the Autonomous Sanctions (Designated Persons and Entities and Declared Persons – Democratic People’s Republic of Korea) Amendment List 2015, apply to entities and individuals associated with the Democratic People’s Republic of Korea’s (DPRK) weapons of mass destruction or missile programs. These regulations facilitate Australia’s imposition of autonomous sanctions against specified entities and individuals to pressure the DPRK into compliance with nuclear non-proliferation and missile program resolutions of the United Nations Security Council. The Minister for Foreign Affairs has the authority to designate entities and individuals mentioned in the Amendment List, thereby subjecting them to targeted financial sanctions, including the prohibition of making assets available to them and the freezing of their controlled assets. The sanctions aim to prevent unauthorised financial transactions with these entities and individuals, although provisions exist to permit certain transactions necessary for basic living expenses or pre-existing obligations. The scope of the regulations is national, and they extend to all persons and entities listed in the Amendment List within Australia’s jurisdiction, including those overseas. The Minister may revoke designations or declarations on their own initiative or upon application, and these decisions are subject to judicial review. Furthermore, the Minister has the authority to waive travel sanctions for designated individuals on national interest or humanitarian grounds.

Key Provisions

The Autonomous Sanctions Regulations 2011 provide a framework for Australia to impose autonomous sanctions on entities and persons associated with the Democratic People's Republic of Korea's (DPRK) weapons of mass destruction or missile programs. Under section 6(1)(a) of the Regulations, the Minister for Foreign Affairs can designate entities based on their association with these programs, subjecting them to financial sanctions. These designated entities become the subject of a prohibition on making assets available to them (section 14), and assets they own or control become "controlled assets" that must be frozen (section 15). The entities listed in Schedule 1 of the Amendment List are designated for these reasons. The Act imposes several obligations on the parties it governs. Firstly, the Minister for Foreign Affairs has the authority to designate entities and persons based on their association with the DPRK's prohibited programs (section 6(1)(a)). Secondly, the Act requires the Department of Foreign Affairs and Trade to conduct consultations with relevant stakeholders, including the financial services sector and the broader business community, to ensure that the sanctions do not adversely affect legitimate business activities (sections 18(1) and (2)(e) of the Legislative Instruments Act 2003). Additionally, designated entities have the right to apply for the revocation of their designation (section 11) and have their decisions judicially reviewed. Breaches of the Regulations can result in civil and criminal penalties. Under section 22 of the Regulations, a person who contravenes a provision of the Regulations is liable to a civil penalty not exceeding the greater of three times the value of any benefit gained by the person from the contravention, or 50,000 penalty units (currently AUD 50,000). Criminal penalties may also apply, with offences attracting fines of up to 500,000 penalty units (currently AUD 500,000) and/or imprisonment for up to 10 years. These penalties are designed to deter unauthorised financial transactions involving designated entities and persons and to enforce compliance with the sanctions regime.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.