Banking (Foreign Exchange) Regulations 1959 - Direction Relating to Foreign Currency Transactions and to Syria - Amendment to the Annex - Variation of Exemptions - Amendment to the Annexes - (13/10/2011)

Overview

The Banking (Foreign Exchange) Regulations 1959, enacted by the Australian Government, establish a framework for the administration of financial sanctions, including those targeting entities and individuals engaged in human rights abuses. This regulatory framework allows the Reserve Bank of Australia to implement sanctions directed by the government. The 2011 amendments, detailed in F2011L02084, were introduced to address the need for updated sanctions against Syria, reflecting the evolving situation and the government's commitment to global human rights standards. The amendments aim to prohibit unauthorised financial transactions with specified individuals and entities involved in human rights abuses in Syria, as outlined in the updated Annex. These changes were made following consultations with relevant government departments, including the Department of Foreign Affairs and Trade and Treasury, ensuring alignment with Australia's foreign policy objectives. The Reserve Bank determined that further consultation was unnecessary to meet the policy objectives of the sanctions and to prevent premature disclosure of the measures.

Scope and Application

The Banking (Foreign Exchange) Regulations 1959, as amended, applies to financial transactions involving foreign currency that are conducted within Australia or by Australian citizens or entities abroad. The regulations are designed to enforce economic sanctions, particularly those imposed by the Australian Government in response to human rights abuses in Syria. The scope of the Act encompasses individuals and entities listed in the Annex, which currently includes 34 persons and 13 entities involved in or supportive of the Syrian regime's oppressive activities. These sanctions are administered by the Reserve Bank of Australia, which has the authority to implement and enforce these measures. The geographic reach of these regulations is both national and international, as they apply to transactions conducted within Australia and by Australian entities or citizens overseas. The sanctions are intended to prevent financial transactions that support the specified persons and entities, thereby contributing to the broader policy objective of deterring human rights abuses. The regulations are periodically updated, as evidenced by the addition of eight new individuals and six new entities to the Annex, reflecting ongoing policy reviews and the evolving situation in Syria.

Key Provisions

The Banking (Foreign Exchange) Regulations 1959, as amended, include specific provisions that target financial sanctions against entities and individuals linked to human rights abuses in Syria. Section 5 of these regulations mandates that the Reserve Bank of Australia enforces these sanctions under the direction of the Australian Government. The latest amendments, referenced in instruments F2011L01115, F2011L01114, and F2011L01113, involve updating the Annex with new sanctions against eight individuals and six entities associated with the Syrian regime. These updates reflect the ongoing policy of isolating and penalising those involved in human rights abuses and supporting the Assad regime. The obligations under these regulations require the Reserve Bank of Australia to ensure that financial transactions involving the listed individuals and entities are prohibited. This includes preventing any dealings that could facilitate financial support to these sanctioned parties. Financial institutions and other entities must comply with these directives by not engaging in any transactions with the listed individuals or entities without appropriate authorisation. This is intended to cut off financial lifelines to those responsible for or complicit in human rights abuses. Failure to comply with these regulations can lead to significant legal consequences. While the explanatory statement does not explicitly detail penalties, breaches of these financial sanctions can typically result in severe penalties under the Banking Act 1959. This may include substantial fines and, in severe cases, criminal charges. The exact penalties can vary based on the nature and extent of the breach but are designed to be robust to ensure compliance and the effectiveness of the sanctions.