Autonomous Sanctions (Designated Persons and Entities – Democratic People’s Republic of Korea) Amendment List 2016

Administered by Department of Foreign Affairs and Trade

Legislation au F2016L00799 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 – Democratic People’s Republic of Korea) Amendment List 2016

 

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 of the Autonomous Sanctions (Designated Persons and Entities – Democratic People’s Republic of Korea) Amendment List 2016 (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 2 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 Part 2 is also 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. Declared persons are prevented from travelling to, entering or remaining in Australia.

 

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 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 and four persons associated with the DPRK’s weapons of mass destruction or missile programs:

-          Haeyang Crew Management Company (HCMC)

-          Ra Kyong-su

-          Kim Sok-chol

-          Ri Chong-chol

-          Hwang Su-man

 

 

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

 

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 entitiy 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.

 

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 were enacted to facilitate Australia's international relations by imposing autonomous sanctions on certain countries, entities, or individuals outside Australia. The Regulations were introduced to address the need for targeted measures against specific entities or persons, particularly those associated with the Democratic People's Republic of Korea's (DPRK) weapons of mass destruction or missile programs. This was enacted by the Australian Parliament, with the purpose of aligning with United Nations Security Council resolutions and encouraging the DPRK to engage in serious negotiations over its nuclear and missile programs. The policy objective is to increase pressure on the DPRK through financial and travel restrictions imposed on designated individuals and entities linked to its prohibited activities. The Autonomous Sanctions (Designated Persons and Entities – Democratic People’s Republic of Korea) Amendment List 2016 supplements these Regulations by designating specific individuals and entities, further implementing the sanctions regime.

Scope and Application

The Autonomous Sanctions Regulations 2011, amended by the Autonomous Sanctions (Designated Persons and Entities – Democratic People’s Republic of Korea) Amendment List 2016, apply to any person or entity within Australia or Australian jurisdiction that is designated by the Minister for Foreign Affairs as being associated with the Democratic People's Republic of Korea's weapons of mass destruction or missile programs. This encompasses both individuals and corporate entities, imposing targeted financial sanctions such as freezing assets and prohibiting transactions that benefit these designated persons or entities. The Regulations extend to any Australian citizen, permanent resident, business, financial institution, or other entity, wherever located, that engages in transactions involving designated assets or persons. Geographically, the Regulations have a broad reach as they apply to any activities or transactions within Australia or by Australian persons or entities outside Australia. The Regulations also prohibit designated persons from travelling to, entering, or remaining in Australia, further enforcing the sanctions. Exclusions from the application of these sanctions include the allowance for certain transactions to meet basic living expenses or satisfy pre-existing obligations, subject to ministerial authorisation. The Regulations may be further refined or extended through subordinate instruments, allowing the Minister to adapt the sanctions framework in response to evolving circumstances related to the DPRK.

Key Provisions

The Autonomous Sanctions Regulations 2011, and the Autonomous Sanctions (Designated Persons and Entities – Democratic People’s Republic of Korea) Amendment List 2016, empower the Minister for Foreign Affairs to designate persons or entities associated with the Democratic People's Republic of Korea's (DPRK) weapons of mass destruction or missile programs. The designation is made under paragraph 6(1)(a) of the Regulations (paragraph 6(1)(a)), and this action subjects the designated individual or entity to targeted financial sanctions. The Regulations prohibit the making available of assets to, or for the benefit of, a designated person or entity, except as authorised by a permit granted under regulation 18 (regulation 14). Furthermore, any asset owned or controlled by a designated person or entity is considered a "controlled asset" and is subject to a prohibition on use or dealing with the asset, except as authorised by a permit (regulation 15). The obligations imposed by the Regulations require the Minister to be satisfied that the person or entity meets the criteria for designation. This includes being associated with the DPRK's weapons of mass destruction or missile programs (Item 2 of the table in regulation 6). Declared persons are also prevented from travelling to, entering, or remaining in Australia (paragraph 6(1)(b)). The Regulations further provide for the revocation of designations and declarations by the Minister, either on the Minister's initiative or on application (paragraph 10(1)(a) and sub-regulations 10(2) and (3)). The Regulations ensure that decisions under regulation 6 and 11 are subject to judicial review (regulation 11). The breach of these sanctions can lead to significant penalties and consequences. Under the Regulations, any person or entity found to be in violation of the financial sanctions or travel restrictions can be subject to civil or criminal penalties. The exact penalties are not specified in the provided text but can typically include substantial fines and imprisonment for individuals found guilty of breaching the Regulations. The Regulations are designed to facilitate Australia's relations with the DPRK by imposing sanctions that align with United Nations Security Council resolutions and to encourage the DPRK to engage in serious negotiations regarding its nuclear and missile programs.

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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.