Overview

The Autonomous Sanctions Regulations 2011, enacted to facilitate Australia’s relations with specific countries and entities by imposing autonomous sanctions, were supplemented by the Autonomous Sanctions (Designated Persons and Entities and Declared Persons – Iran) Amendment List 2016 (No. 1). This amendment list, introduced by the Minister for Foreign Affairs, addresses the need to revoke certain sanctions in response to progress made by Iran regarding its obligations under the Joint Comprehensive Plan of Action as outlined in United Nations Security Council Resolution 2231 (2015). The Regulations aim to subject designated persons or entities to targeted financial sanctions, while also preventing declared persons from entering Australia. The policy objective is to align Australian sanctions with international efforts and developments, ensuring that they are responsive to changing geopolitical circumstances. Consultations with relevant Commonwealth Government departments were conducted during the drafting process, although no public consultation was undertaken as the amendment solely revokes existing sanctions. The amendment is compatible with human rights as it respects the rights of affected individuals to apply for revocation of sanctions and allows for the use of frozen assets for basic expenses and existing legal obligations.

Scope and Application

The Autonomous Sanctions Regulations 2011, as amended by the Autonomous Sanctions (Designated Persons and Entities and Declared Persons – Iran) Amendment List 2016 (No. 1), apply to individuals, entities, and transactions that are designated or declared by the Minister for Foreign Affairs for the purpose of implementing autonomous sanctions against Iran. The Regulations enable the Minister to designate persons or entities mentioned in a table within the Regulations, thereby subjecting them to financial sanctions and asset freezes. These sanctions prohibit the making of assets available to or for the benefit of designated persons or entities, or the dealing with assets owned or controlled by them, unless authorised by a permit. The Regulations also permit the Minister to declare individuals for the purpose of preventing their travel to, entry into, or presence in Australia. The scope of these sanctions is national, applying throughout Australia and affecting all persons and entities within its jurisdiction. However, the Regulations do not affect the title to any asset owned or controlled by a designated person or entity and allow for certain exceptions to the sanctions to meet basic living expenses and pre-existing financial obligations. The Regulations extend to the revocation of sanctions through subordinate instruments, and relevant government departments were consulted during the development of these amendments. The Regulations are compatible with human rights as they provide avenues for the revocation of designations and declarations and allow for judicial review.

Key Provisions

The Autonomous Sanctions Regulations 2011 (Regulations) are designed to facilitate Australia's diplomatic relations with certain countries, entities, or individuals through the imposition of autonomous sanctions. According to paragraph 6(1)(a) of the Regulations, the Minister for Foreign Affairs is authorised to designate a person or entity based on the criteria listed in regulation 6. This designation subjects the person or entity to targeted financial sanctions. Specifically, it prohibits the making of assets available to or for the benefit of the designated person or entity (regulation 14), with exceptions allowed under a permit granted under regulation 18. Similarly, an asset owned or controlled by a designated person or entity is considered a "controlled asset" and is subject to a freeze, prohibiting its use or dealing with, except as authorised by a permit under regulation 18 (regulation 15). Additionally, paragraph 6(1)(b) of the Regulations allows the Minister to declare a person to prevent them from travelling to, entering, or remaining in Australia if they are mentioned in regulation 6. The list of designated and declared persons and entities is detailed in the Autonomous Sanctions (Designated Persons and Entities and Declared Persons – Iran) List 2012 (the List), as subsequently amended. The Regulations also provide the Minister with the authority to revoke these designations and declarations under paragraph 10(1)(a) and (b), respectively, and allow the Minister to initiate revocations under sub-regulation 10(2). The Regulations impose several obligations and requirements on the parties or entities they govern. Persons and entities designated under regulation 6(1)(a) are subject to targeted financial sanctions, which include a prohibition on making assets available to them. Similarly, assets owned or controlled by designated persons or entities are considered controlled assets and must be frozen, with exceptions for specific uses authorised by a permit. Declared persons, under regulation 6(1)(b), are prevented from travelling to, entering, or remaining in Australia, with potential waivers possible under regulation 19 for national interest or humanitarian reasons. These measures are intended to enforce the sanctions regime effectively and ensure compliance with Australia's foreign policy objectives. Breaches of the Regulations can result in significant consequences. For instance, making an asset available to a designated person or entity in contravention of regulation 14 is an offence, with potential civil and criminal penalties. Similarly, dealing with or facilitating the use or dealing with a controlled asset in violation of regulation 15 is also an offence. Violations of the travel and entry prohibitions for declared persons under regulation 6(1)(b) can lead to legal action, including potential fines and imprisonment. The Regulations do not specify maximum penalties but refer to the broader legislative framework within which these offences are prosecuted, which may include substantial fines and imprisonment terms depending on the severity and nature of the breach.