Autonomous Sanctions (Designated Persons and Entities – Democratic People's Republic of Korea) Amendment List 2016 (No 3)

Administered by Department of Foreign Affairs and Trade

Legislation au F2016L01862 Not in force Legislative Instrument

Legislation content

Explanatory Statement

 

 

Issued by the Authority of the Minister for Foreign Affairs

 

Autonomous Sanctions Regulations 2011

 

Autonomous Sanctions (Designated Persons and Entities – Democratic People’s Republic of Korea) Amendment List 2016 (No 3)

 

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 a person or 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 person or 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 person or entity to targeted financial sanctions.  The designated person or 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 person or entity, other than as authorised by a permit granted under regulation 18). 

 

An asset owned or controlled by a designated person or 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 person and entity listed in Schedule 1 and Schedule 2 of the Autonomous Sanctions (Designated Persons and Entities – Democratic People’s Republic of Korea) Amendment List 2016 (No 3) (the Amendment List) is designated by the Minister for the purposes of paragraph 6 (1) (a) of the Regulations on the basis that it meets the criterion mentioned in Item 1 of the table in regulation 6; that is, it is a person or entity that the Minister is satisfied is associated with the DPRK’s weapons of mass-destruction program or missiles program.

 

Each person listed in Schedule 1 of the Amendment List is also declared by the Minister for the purposes of paragraph 6 (1) (b) of the Regulations, on the basis that he or she is a person that the Minister is satisfied is associated with the DPRK’s weapons of mass-destruction or missiles program. Declared persons are prevented from travelling to, entering or remaining in Australia.

 

The imposition of sanctions, including 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 restrictions on five entities and financial and travel restrictions on four persons associated with the DPRK’s weapons of mass-destruction or missile programs:

-          Soe Min Htike Co. Ltd.

-          Korea Foreign Technical Trade Centre (KFTTC)

-          Korea Ocean Shipping Agency (KOSA)

-          Korea Buyon Shipping Co. Ltd.

-          Strategic Forces

-          Son Jong-hyok

-          Kim Kyong-nam

-          Kim Song-chol

-          Pak Chun-il

 

 

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 (DFAT) 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 17 (1) and (2) of the Legislation Act 2003).

 


Statement of Compatability with Human Rights

 

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

 

Autonomous Sanctions (Designated Persons and Entities – Democratic People’s Republic of Korea) Amendment List 2016 (No 3)

 

The Autonomous Sanctions (Designated Persons and Entities – Democratic People’s Republic of Korea) Amendment List 2016 (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 the DPRK 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 apply for a permit 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 apply for a permit to 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.

 

The Department of Foreign Affairs and Trade (DFAT) 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. 

 

 

 

 

Overview

The Autonomous Sanctions Regulations 2011, enacted in 2011, were established to allow Australia to independently impose sanctions on specific entities or persons outside Australia, particularly those associated with the Democratic People's Republic of Korea's (DPRK) weapons of mass destruction or missile programs. Authorised by the Minister for Foreign Affairs, these regulations aim to facilitate Australia's international relations by enforcing targeted financial sanctions. The policy objective is to increase pressure on the DPRK to comply with nuclear non-proliferation and missile program resolutions from the United Nations Security Council and engage in serious negotiations regarding its nuclear and missile activities. The Autonomous Sanctions (Designated Persons and Entities – Democratic People’s Republic of Korea) Amendment List 2016 (No 3) further details specific entities and individuals subject to these sanctions, including financial restrictions and travel bans. The regulations allow for permit applications to access frozen assets for basic expenses and judicial review of designation and declaration decisions.

Scope and Application

The Autonomous Sanctions Regulations 2011, as amended by the Autonomous Sanctions (Designated Persons and Entities – Democratic People’s Republic of Korea) Amendment List 2016 (No 3), apply to persons and entities within Australia and its territories who are designated under the Regulations. These regulations are part of Australia's broader autonomous sanctions framework aimed at enforcing international commitments regarding the Democratic People's Republic of Korea's (DPRK) weapons of mass-destruction and missile programs. Specifically, the Regulations empower the Minister for Foreign Affairs to designate individuals or entities associated with these programs, subjecting them to financial sanctions and, in some cases, travel restrictions. The purpose of such designations is to prohibit financial transactions with these entities and prevent designated individuals from entering or remaining in Australia, thereby exerting pressure on the DPRK to adhere to international non-proliferation norms and engage in diplomatic negotiations. The Regulations also provide mechanisms for designated persons or entities to apply for permits to address essential needs or legal obligations, and for the Minister to make exceptions on national interest or humanitarian grounds.

Key Provisions

The main operative sections of the Autonomous Sanctions Regulations 2011 (the Regulations) are particularly focused on the designation of individuals and entities, as well as the imposition of sanctions on them. Section 6(1)(a) empowers the Minister for Foreign Affairs to designate a person or entity if they are associated with the Democratic People’s Republic of Korea’s (DPRK) weapons of mass-destruction or missiles program. This designation triggers the prohibitions in sections 14 and 15, which effectively prevent the making of assets available to or for the benefit of the designated person or entity and the use or dealing with their controlled assets, respectively. The Regulations also permit the Minister to declare individuals who are associated with the DPRK’s weapons of mass-destruction or missiles program, preventing them from travelling to, entering or remaining in Australia (section 6(1)(b)). The Regulations impose several obligations on the parties they govern. Primarily, they require individuals and entities designated under section 6(1)(a) to comply with the financial sanctions outlined in sections 14 and 15, which prohibit the making of assets available and the use or dealing with controlled assets. Additionally, any person or entity who holds a controlled asset must freeze that asset as per section 15. For individuals declared under section 6(1)(b), the Regulations prohibit them from entering or remaining in Australia, unless the Minister waives the declaration under section 19 on the grounds of national interest or humanitarian considerations. There are also significant consequences for breaches of the Regulations. While specific penalties are not detailed in the explanatory statement, breaches of the Regulations could potentially lead to criminal charges under Australian law. The general sanctions framework suggests that penalties could include fines and imprisonment, though the exact penalties would depend on the specific nature and severity of the breach. Furthermore, the Regulations provide for judicial review of decisions made under sections 6 and 11, indicating that there are avenues for challenging the Minister’s actions in court. The statement underscores that the Regulations are compatible with human rights, though it does not specify how breaches might be reconciled with human rights obligations.

Legal classification tags

Area of Law
International Trade Law
Foreign Relations Law
Instrument
Regulation
Concepts
Definitions & Interpretation
Offence Provisions
Reporting & Disclosure Obligations
Catchwords
Sanctions
Designation
Financial Restrictions

Interactions

Authorises

All Versions

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.