Banking (Foreign Exchange) Regulations 1959 - Direction relating to foreign currency transactions and to Zimbabwe - Amendment to the Annex and Variation of Exemptions - Amendment to the Annexes (31/03/2006)

Overview

The Banking (Foreign Exchange) Regulations 1959, as amended by the Sanctions Against Zimbabwe – Amendment to the Annex instrument (F2006L00918), was enacted to provide the Reserve Bank of Australia with the authority to administer financial sanctions against individuals associated with the Government of Zimbabwe. This instrument, issued under the authority of the Australian Government, aims to update the list of sanctioned individuals by removing 57 and adding 15 new individuals to the Annex of names. This update is pursuant to the original instruments dated 25 November 2002, which included directions relating to foreign currency transactions and exemptions under the Banking (Foreign Exchange) Regulations 1959. The policy objective of this legislative amendment is to ensure that the financial sanctions against Zimbabwe remain current and effective in accordance with the Australian Government's foreign policy objectives.

Scope and Application

The Banking (Foreign Exchange) Regulations 1959, as amended, apply to financial sanctions against individuals associated with the Government of Zimbabwe, including ministers, senior officials, and senior management of state-owned enterprises. These regulations, administered by the Reserve Bank of Australia under direction from the Australian Government, are applicable nationwide within the Commonwealth of Australia. The regulations extend to specific individuals listed in the Annex, which is updated periodically to reflect changes in the list of sanctioned individuals. This amendment involves removing 57 individuals and adding 15 new ones, bringing the total number of names in the Annex to 159. The changes are integral to three original instruments published in the Commonwealth of Australia Gazette in 2002, which allow for periodic updates to the Annex. The current amendment is considered a continuation of these original instruments and does not require further consultation beyond that already conducted by relevant government departments.

Key Provisions

The primary operative sections of this instrument pertain to the amendment of the Annex of the Banking (Foreign Exchange) Regulations 1959, which contains the list of individuals subject to financial sanctions against Zimbabwe. The Annex now includes 159 names, with 57 individuals removed and 15 new individuals added (Sections not specified). This update is part of the instruments originally published in the Commonwealth of Australia Gazette No. GN 49, 11 December 2002, and subsequently amended on 30 November 2005 (FRLI reference number F2005L03697). The changes to the Annex are detailed in Attachment A and are referenced in three specific instruments: the Direction relating to foreign currency transactions and to Zimbabwe dated 25 November 2002, the Variation of Exemption relating to sub-regulations 6(1) of the Banking (Foreign Exchange) Regulations 1959, and the Variation of Exemption relating to sub-regulations 8(1)(a) of the same regulations. The obligations and requirements imposed by the Banking (Foreign Exchange) Regulations 1959 and the related instruments mandate that the Reserve Bank of Australia, under the directive of the Australian Government, administer financial sanctions against individuals associated with the Government of Zimbabwe. These individuals include ministers, senior officials, and senior management of state-owned enterprises of Zimbabwe. The updated Annex is integral to these instruments and affects any financial transactions involving the listed individuals. The Reserve Bank, following a review and directive from the Australian Government, must ensure that these sanctions are updated and enforced accordingly. Failure to comply with the financial sanctions as outlined in the amended Annex could lead to various civil or criminal consequences, depending on the nature and severity of the breach. While specific penalties are not detailed in the explanatory statement, breaches of the Banking (Foreign Exchange) Regulations 1959 can generally result in substantial fines and, in severe cases, imprisonment. The Reserve Bank, as the administering authority, must ensure that financial institutions and other relevant entities adhere to the sanctions by monitoring and enforcing compliance with the updated Annex.