Autonomous Sanctions (Designated Persons and Entities – Democratic People’s Republic of Korea) Amendment List 2017

Administered by Department of Foreign Affairs and Trade

Legislation au F2017L00637 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

 

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 listed in Schedule 1 of the Autonomous Sanctions (Designated Persons and Entities – Democratic People’s Republic of Korea) Amendment List 2017 (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 meets the criterion mentioned in Item 1 of the table in regulation 6; that is, they are a person 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 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 five persons associated with the DPRK’s weapons of mass-destruction or missile programs:

-          Kang Chol Su

-          Pak Il Gyu

-          Jang Sung Nam

-          Han Jang Su

-          Kim Tong Ho

 

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 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

 

The Autonomous Sanctions (Designated Persons and Entities – Democratic People’s Republic of Korea) Amendment List 2017  (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 DPRK persons 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 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 diplomatic engagements with certain countries and entities through the imposition of targeted sanctions, were designed to address the need for a legislative framework that allows Australia to independently enforce sanctions in response to international non-proliferation obligations, particularly those concerning the Democratic People’s Republic of Korea (DPRK). This Act was introduced by the Australian Parliament to provide the Minister for Foreign Affairs with the authority to designate specific individuals or entities associated with the DPRK’s weapons of mass-destruction or missile programs, thereby subjecting them to financial sanctions and travel restrictions. The policy objective underpinning these regulations is to exert pressure on the DPRK to adhere to its non-proliferation commitments and engage in meaningful dialogue regarding its nuclear and missile activities. The 2017 amendment list extends these sanctions to five additional individuals, reflecting ongoing concerns and the need for continued diplomatic pressure. The Autonomous Sanctions (Designated Persons and Entities – Democratic People’s Republic of Korea) Amendment List 2017 further refines these sanctions by specifically targeting individuals associated with the DPRK’s prohibited programs. This amendment is consistent with the overarching policy objective of the Regulations, which is to align with United Nations Security Council resolutions and encourage the DPRK to comply with international non-proliferation standards. The legislative process involved extensive consultations with relevant governmental and non-governmental stakeholders, ensuring that the measures are both effective and proportionate. The Act also provides for judicial review of the Minister’s decisions, ensuring accountability and protection of individual rights.

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 2017, apply to specific persons and entities associated with the Democratic People's Republic of Korea's (DPRK) weapons of mass destruction or missiles program. The Minister for Foreign Affairs has the authority to designate and declare individuals and entities, thereby subjecting them to targeted financial sanctions and travel restrictions. Specifically, the sanctions include prohibitions on making assets available to or for the benefit of designated persons or entities, as well as restrictions on their entry into Australia. These measures are designed to exert pressure on the DPRK to adhere to its non-proliferation obligations and engage in meaningful negotiations regarding its nuclear and missile programs. The Regulations are applicable on a national level across Australia, and the designations and declarations are enforced through legislative instruments. Notably, the Regulations do not affect the title to any assets owned or controlled by the designated persons or entities, and provisions exist for permit applications to access frozen assets for basic expenses or to satisfy pre-existing obligations.

Key Provisions

The Autonomous Sanctions Regulations 2011, specifically the Autonomous Sanctions (Designated Persons and Entities – Democratic People’s Republic of Korea) Amendment List 2017, empower the Minister for Foreign Affairs to designate individuals or entities associated with the DPRK’s weapons of mass-destruction or missiles program, thereby subjecting them to targeted financial sanctions (regulation 6(1)(a)). This means that any financial dealings with these designated persons or entities are prohibited unless specifically permitted by a Minister-issued permit (regulation 14). Moreover, assets owned or controlled by these designated entities are classified as "controlled assets," which must be frozen to prevent any use or dealing with them (regulation 15). In addition to financial sanctions, the same amendment list declares these individuals as prohibited from entering, travelling to, or remaining in Australia (regulation 6(1)(b)). The obligations imposed by these Regulations include the necessity for businesses and individuals to ensure that they do not engage in any financial transactions with the designated persons or entities without a permit from the Minister. This includes refraining from dealing with any controlled assets. Entities and individuals must also verify that they are not providing financial services or assets to the listed individuals, either directly or indirectly. The Regulations also require that any assets belonging to the designated persons or entities be frozen and not used or dealt with in any manner, unless authorised by a permit (regulation 15). Breaches of these Regulations can result in significant legal consequences. Engaging in a prohibited transaction with a designated person or entity can lead to civil or criminal penalties. Under the Autonomous Sanctions Regulations 2011, individuals found guilty of contravening these provisions can face fines of up to 5,000 penalty units or imprisonment for up to five years, or both, for individuals, and up to 25,000 penalty units or imprisonment for up to ten years, or both, for bodies corporate (regulation 27). Additionally, declared individuals who attempt to enter or remain in Australia despite the prohibition can also face penalties, including fines and imprisonment. These stringent measures underscore the importance of compliance with the Regulations to avoid severe legal repercussions.

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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.