BANKING (FOREIGN EXCHANGE) REGULATIONS 1959
SANCTIONS AGAINST SYRIA – AMENDMENT TO THE ANNEX
EXPLANATORY STATEMENT
The Reserve Bank of Australia, following a directive from the Australian Government under the Banking (Foreign Exchange) Regulations 1959, currently administers financial sanctions against certain key persons and entities responsible for, or involved in, human rights abuses in Syria.
The Australian Government has reviewed the list of persons and entities subject to financial sanctions and has directed the Reserve Bank to add 8 new persons to the Annex of names. Details of the changes to the Annex can be found in Attachment A.
The updated Annex now contains 26 persons and 7 entities and is referred to in each of the following instruments:
(i) Direction relating to foreign currency transactions and to Syria (dated 16 June 2011) pursuant to regulation 5 of the Banking (Foreign Exchange) Regulations 1959, (FRLI reference number F2011L01115).
(ii) Variation of Exemption (dated 16 June 2011) relating to sub-regulation 6(1) of the Banking (Foreign Exchange) Regulations 1959, (FRLI reference number F2011L01114).
(iii) Variation of Exemption (dated 16 June 2011) relating to sub-regulation 8(1)(a) of the Banking (Foreign Exchange) Regulations 1959, (FRLI reference number F2011L01113).
All three instruments were originally published in the Commonwealth of Australia Gazette No. GN24, 22 June 2011. The original instruments foresaw that the Annexes may be periodically reviewed and stated that any amendments to the Annexes shall be taken as being part of the original instruments as from the date specified in the amendments. This is the first update to the Annex.
This instrument does not substantially alter the existing autonomous financial sanctions arrangements. As such, in accordance with Section 18 of the Legislative Instruments Act 2003, the Reserve Bank is satisfied that further consultation, beyond that already undertaken by the Treasury and Department of Foreign Affairs and Trade, is unnecessary.
ATTACHMENT A
This attachment provides details of the changes to the Syria Annex. 8 persons have been added.
NAMES THAT HAVE BEEN ADDED:
Reference No. | Name | Details |
2011SYR0026 | Al Hassan, Bassam | Presidential Advisor for Strategic Affairs; involved in the crackdown on the civilian population. |
2011SYR0027 | Hamcho, Mohamed | Born 20 May 1966, passport no. 002954347. Brother-in-law of Mahir Al-Assad (principal overseer of violence against demonstrators); businessman and local agent for several foreign companies; provides funding to the regime allowing the crackdown on demonstrators. |
2011SYR0028 | Ikhtiyar, Hisham | Born in 1941. Head of the Syrian National Security Bureau; involved in the crackdown on the civilian population. |
2011SYR0029 | Khayrbik, Muhammad Nasif | Born on 10 April 1937 (alt. 20 May 1937) in Hama, diplomatic passport no. 0002250. Deputy Vice President of Syria for National Security Affairs; involved in the crackdown on the civilian population. |
2011SYR0030 | Makhlouf, Ihab | aka Ehab Makhlouf, aka Iehab Makhlouf. Born 21 January 1973 in Damascus, passport no. N002848852. Vice-President of SyriaTel and caretaker for Rami Makhlouf’s US company; provides funding to the regime allowing the crackdown on demonstrators. |
2011SYR0031 | Makhlouf, Iyad | aka Eyad Makhlouf. Born 21January 1973 in Damascus, passport no. N001820740. Brother of Rami Makhlouf (businessman who provides funding to the regime) and GID officer involved in the crackdown on the civilian population. |
2011SYR0032 | Rajiha, Dawud | Chief of Staff of the Armed Forces responsible for the military involvement in the crackdown on peaceful protestors. |
2011SYR0033 | Shawkat, Asif | Born 15 January 1950 in Al-Madehleh, Tartus. Deputy Chief of Staff for Security and Reconnaissance; involved in the crackdown on the civilian population. |
Total: 8 | |
Overview
The Banking (Foreign Exchange) Regulations 1959, enacted to regulate foreign exchange transactions, were updated in 2011 to include additional sanctions against Syria. This amendment, made under the authority of the Australian Government, aimed to target individuals and entities responsible for human rights abuses in Syria by restricting their financial transactions within Australia. The Reserve Bank of Australia was directed to add eight new individuals to the sanctions list, bringing the total to 26 persons and 7 entities. This measure aligns with Australia's policy to support international efforts in condemning and curbing human rights violations by imposing financial restrictions on those implicated in the Syrian conflict. The legislative update ensures that the sanctions regime remains current and effective in addressing the evolving situation in Syria.
Scope and Application
The Banking (Foreign Exchange) Regulations 1959, as amended through the Sanctions Against Syria – Amendment to the Annex, apply to certain persons and entities directly or indirectly involved in human rights abuses in Syria. The sanctions are administered by the Reserve Bank of Australia under the direction of the Australian Government. The updated Annex now lists 26 individuals and 7 entities subject to these sanctions. These regulations affect financial transactions involving these individuals and entities, prohibiting dealings that could facilitate or benefit their involvement in the Syrian conflict. The geographic reach of these regulations is national, with the sanctions applying to all financial transactions within Australia, including those involving foreign entities and individuals. The regulations do not apply to transactions that are explicitly exempted or those that fall below specified thresholds. Any amendments to the sanctions list are incorporated into the original instruments, ensuring that the list is periodically reviewed and updated as necessary.
Key Provisions
The Banking (Foreign Exchange) Regulations 1959, as amended by F2011L01591, mandate that the Reserve Bank of Australia administers financial sanctions against individuals and entities linked to human rights abuses in Syria. Specifically, Regulation 5 (sub-regulation 6(1) and 8(1)(a)) governs foreign currency transactions concerning Syria, and these regulations have been updated to include additional persons and entities. The Annex, which is referenced in the Direction relating to foreign currency transactions and to Syria (dated 16 June 2011), the Variation of Exemption relating to sub-regulation 6(1), and the Variation of Exemption relating to sub-regulation 8(1)(a), has been expanded to include 26 individuals and 7 entities. The updated Annex reflects the latest directive from the Australian Government and is part of the original instruments as from the date specified in the amendments.
Entities and individuals governed by these regulations must ensure compliance by refraining from any financial transactions with the sanctioned persons and entities. This includes not dealing with any assets they hold or facilitating any transactions on their behalf. The sanctions are intended to cut off financial support to those responsible for or involved in human rights abuses, thereby exerting pressure on the regime and its supporters to cease such activities. Compliance requires entities to implement robust due diligence and screening processes to identify and block any dealings with the listed individuals and entities.
Failure to comply with these regulations can result in significant civil or criminal penalties. Under the Banking (Foreign Exchange) Regulations 1959, any person who contravenes the regulations may be liable to a civil penalty of up to 5,000 penalty units or a criminal penalty of up to 10,000 penalty units, depending on the nature and severity of the breach. Additionally, any entity found to be in breach of these sanctions may face further regulatory action, including fines or other sanctions imposed by the Reserve Bank or other relevant authorities. The penalties underscore the seriousness with which the Australian Government regards compliance with these financial sanctions.