Autonomous Sanctions (Designated Persons and Entities – Democratic People’s Republic of Korea) Amendment List 2017 (No 2)

Administered by Department of Foreign Affairs and Trade

Legislation au F2017L01063 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 2017 (No 2)

 

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 assisting or has assisted in the violation or evasion by the DPRK of Resolution 825, 1540, 1695, 1718, 1874, 1887, 2087, 2094, 2270 or 2321 of the United Nations Security Council, or of a subsequent resolution relevant to one of the aforementioned resolutions.  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 listed in Schedule 1 of the Autonomous Sanctions (Designated Persons and Entities – Democratic People’s Republic of Korea) Amendment List 2017 (No 2) (the Amendment List), and each entity listed in Schedule 2 of the Amendment List, is designated by the Minister for the purposes of paragraph 6 (1) (a) of the Regulations on the basis that the person or entity meets the criterion mentioned in Item 1(b) of the table in regulation 6; that is, they are a person or entity that the Minister is satisfied is assisting or has assisted in the violation or evasion by the DPRK of Resolution 825, 1540, 1695, 1718, 1874, 1887, 2087, 2094, 2270 or 2321 of the United Nations Security Council, or of a subsequent resolution relevant to one of the aforementioned resolutions.

 

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 meets the criterion mentioned in Item 1(b) of the table in regulation 6; that is, he or she is a person that the Minister is satisfied is assisting or has assisted in the violation or evasion by the DPRK of Resolution 825, 1540, 1695, 1718, 1874, 1887, 2087, 2094, 2270 or 2321 of the United Nations Security Council, or of a subsequent resolution relevant to one of the aforementioned resolutions.  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 non‑proliferation obligations consistent with United Nations Security Council resolutions, and to engage in serious negotiations on its nuclear and missile programs.  The new sanctions comprise financial and travel restrictions on the following three persons and seven entities that the Minister for Foreign Affairs is satisfied are assisting, or have assisted, in the violation or evasion of United Nations Security Council Resolution 825, 1540, 1695, 1718, 1874, 1887, 2087, 2094, 2270 or 2321, or of subsequent resolutions relevant to one of the aforementioned resolutions:

 

-          Rim Yong-hwan

-          Kim Yong Su

-          Kim Yong-chol

 

-          Global Communications Company

-          Sonbak Trading Corporation

-          Eko Development and Investment Company

-          Mirae Shipping Company (alias for Ocean Maritime Management Company Ltd)

-          Saigon United Co Ltd

-          Sunrise Trading and Logistics Co Ltd

-          Marine Transport Office

 

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 servces 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 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 2017 (No 2)

 

The Autonomous Sanctions (Designated Persons and Entities – Democratic People’s Republic of Korea) Amendment List 2017 (No 2)  (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 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 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 to facilitate Australia's relations with certain countries and specific entities or persons outside Australia through the imposition of autonomous sanctions, were introduced to address the need for targeted financial sanctions and travel restrictions against individuals and entities assisting in the violation or evasion by the Democratic People's Republic of Korea (DPRK) of United Nations Security Council resolutions. This legislative framework, overseen by the Minister for Foreign Affairs, aims to increase pressure on the DPRK to comply with its non-proliferation obligations and engage in negotiations regarding its nuclear and missile programs. The Autonomous Sanctions (Designated Persons and Entities – Democratic People’s Republic of Korea) Amendment List 2017 (No 2) designates additional persons and entities for targeted sanctions based on their involvement in activities that contravene these resolutions. These measures are designed to prevent unauthorised financial transactions and restrict travel, while ensuring that basic living expenses and pre-existing obligations can be met under certain conditions. The policy objective is to enhance international compliance and security through coordinated international sanctions.

Scope and Application

The Autonomous Sanctions Regulations 2011 apply to individuals and entities designated by the Minister for Foreign Affairs based on their involvement in activities that assist or have assisted the Democratic People's Republic of Korea in violating or evading United Nations Security Council resolutions related to non-proliferation and sanctions. The Regulations allow for the imposition of targeted financial sanctions, including the prohibition of making assets available to or for the benefit of designated individuals and entities, and the freezing of their controlled assets. Furthermore, the Regulations permit the Minister to declare individuals who are restricted from travelling to, entering, or remaining in Australia. These measures are intended to pressure the DPRK to comply with its non-proliferation obligations and engage in negotiations concerning its nuclear and missile programs. The scope of the Regulations is extended through subordinate instruments, such as the Autonomous Sanctions (Designated Persons and Entities – Democratic People’s Republic of Korea) Amendment List 2017 (No 2), which lists specific individuals and entities subject to the sanctions. The Regulations apply nationally, and the decisions to designate or declare individuals and entities are subject to judicial review and can be applied for revocation by the affected parties.

Key Provisions

The main operative sections of the Autonomous Sanctions Regulations 2011 (the Regulations) and the Autonomous Sanctions (Designated Persons and Entities – Democratic People’s Republic of Korea) Amendment List 2017 (No 2) (the Amendment List) pertain to the imposition of sanctions on individuals and entities linked to the Democratic People’s Republic of Korea (DPRK) in violation of certain United Nations Security Council resolutions. Under section 6(1)(a) of the Regulations, the Minister for Foreign Affairs is authorised to designate a person or entity based on the criteria outlined in the relevant item of the table in regulation 6, specifically that the person or entity is assisting or has assisted in the violation or evasion of specified United Nations resolutions. This designation triggers the prohibitions outlined in regulations 14 and 15, which prevent the making of assets available to or for the benefit of a designated person or entity, and the use or dealing with any controlled assets. The Regulations impose several obligations and requirements on the parties and entities they govern. Designated persons and entities are subject to financial sanctions, including the prohibition on making assets available to them. Holders of controlled assets must freeze these assets and are prohibited from using, dealing with, or facilitating the use or dealing of such assets, except as authorised by a permit. Declared persons, who are also subject to the same designation criteria, are prevented from travelling to, entering, or remaining in Australia. Designated persons and entities can apply for permits to use their frozen assets for basic expenses or to satisfy pre-existing obligations, and declared persons can seek a waiver to enter Australia on humanitarian or national interest grounds. The Act also outlines the potential consequences for breaches of the Regulations. Individuals or entities found in violation of the prohibitions may face civil and criminal penalties. While the specific penalties are not detailed in the provided text, it is understood that breaches can lead to significant legal consequences, including fines and imprisonment. The precise penalties would depend on the nature and severity of the breach, as determined by the applicable laws and regulations. The Regulations ensure that designated individuals and entities face meaningful consequences for their involvement in activities that contravene international sanctions against the DPRK.

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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.