Banking (Foreign Exchange) Regulations 1959 - Revocation of Variations of Exemption and Direction Relating to Foreign Currency Transactions - Libya (22/02/2012)

Administered by Department of the Treasury

Legislation au F2012L00433 Not in force Legislative Instrument

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BANKING (FOREIGN EXCHANGE) REGULATIONS 1959
AUTONOMOUS FINANCIAL SANCTIONS AGAINST LIBYA – REVOCATION OF INSTRUMENTS

 

EXPLANATORY STATEMENT

 

The Reserve Bank of Australia has been directed by the Australian Government to take the necessary steps to remove all autonomous targeted financial sanctions currently administered under the Banking (Foreign Exchange) Regulations 1959 (the “Banking Regulations”). The instruments effecting the revocation for each country the subject of targeted financial sanctions under the Banking Regulations will come into effect upon the commencement of the corresponding new legislative instrument enacted under the Autonomous Sanctions Regulations 2011.  The new instruments will give effect to the new autonomous targeted financial sanctions regime for a specified country under the Autonomous Sanctions Regulations and will be administered by the Department of Foreign Affairs and Trade.  This timing is to ensure continuity in the operation of Australia’s autonomous financial sanctions regime.

In accordance with a direction from the Treasurer, the Reserve Bank of Australia revokes the following legislative instruments pertaining to Libya:

(i)                 Direction Relating To Foreign Currency Transactions And To Libya issued under regulation 5 of the Banking Regulations dated 4 March 2011, as published in the Commonwealth of Australia Gazette No. S 34, 9 March 2011 (and as subsequently amended), relating to foreign currency transactions involving certain persons and entities in or associated with Libya;

(ii)               Variation of Exemption dated 4 March 2011, as published in the Commonwealth of Australia Gazette No. S 35, 9 March 2011 (and as subsequently amended), relating to sub‑regulation 6(1) of the Banking Regulations and to certain persons and entities in or associated with Libya; and

(iii)            Variation of Exemption dated 4 March 2011, as published in the Commonwealth of Australia Gazette No. S 36, 9 March 2011 (and as subsequently amended), relating to sub‑regulation 8(1)(a) of the Banking Regulations and to certain persons and entities in or associated with Libya.

When the above revocations come into effect, the Reserve Bank of Australia will no longer play any role in the administration of autonomous targeted financial sanctions on behalf of the Australian government in relation to any individual or entities in or associated with Libya.

The Department of Foreign Affairs and Trade has completed a comprehensive public consultation on the Autonomous Sanctions Regulations, and has published a report on the outcomes of this consultation.  As the new autonomous targeted financial sanctions regime under Autonomous Sanctions Regulations will replace those under the Banking Regulations, the Reserve Bank is satisfied that wider consultation beyond those already undertaken by the Department of Foreign Affairs and Trade is unnecessary  (sub-sections 18 (1) and 18 (2)(e) of the Legislative Instruments Act 2003).

 

 

 

 

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

REVOCATION OF VARIATIONS OF EXEMPTION AND DIRECTION RELATING TO FOREIGN CURRENCY TRANSACTIONS – LIBYA

This Legislative Instrument 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.

Overview of the Bill/Legislative Instrument

As part of the Government’s policy to reform Australia’s autonomous sanctions regime, a new legislative framework has been implemented under the Autonomous Sanctions Act 2011.  As part of this reform, the Reserve Bank of Australia has been directed by the Treasurer to take the necessary steps to remove all existing autonomous financial sanctions currently administered under the Banking (Foreign Exchange) Regulations 1959 (the “Banking Regulations”).  This Legislative Instrument revokes the instruments which have implemented autonomous financial sanctions pertaining to the above country.

Human rights implications

This instrument will terminate the autonomous financial sanctions regime under the Banking Regulations pertaining to the above country.  Once the revocation is in place, the prohibitions previously applicable to the affected groups of persons will be lifted.  Removing the prohibitions without there being an equivalent sanction in place under another legislative instrument would promote the human rights and freedoms of those persons who were previously subject to the prohibitions.

Note that the revocation contained in this instrument will only come into effect when a new legislative instrument enacted by the Department of Foreign Affairs and Trade (“DFAT”) under the Autonomous Sanctions Regulations 2011 commences.  The new legislative instrument will give effect to the new autonomous targeted financial sanctions regime for the above country under the Autonomous Sanctions Regulations, and be accompanied by a Human Rights Compatibility Statement prepared by DFAT.  The timing of commencement of this instrument will ensure continuity in the operation of Australia’s autonomous financial sanctions pertaining to the above country.

Conclusion

This Legislative Instrument is compatible with human rights because it does not limit any human rights as they apply to Australia. 

Reserve Bank of Australia

 

Overview

The Banking (Foreign Exchange) Regulations 1959 was enacted by the Parliament of Australia to regulate foreign exchange transactions within the country. It established a framework for controlling and monitoring financial transactions involving foreign currency to protect the Australian economy from potential risks associated with international transactions. The regulations aimed to maintain financial stability, prevent money laundering, and ensure compliance with international sanctions and restrictions. This legislation was necessary to address the need for effective regulation of foreign exchange activities and to safeguard the interests of the Australian economy. The Reserve Bank of Australia, as the central bank, was given the responsibility to administer and enforce these regulations. The compatibility of this instrument with human rights is ensured as it does not limit any human rights as they apply to Australia. The revocation of specific instruments related to Libya is in line with the new autonomous targeted financial sanctions regime under the Autonomous Sanctions Regulations 2011, ensuring continuity in the operation of Australia’s financial sanctions pertaining to the country.

Scope and Application

The Banking (Foreign Exchange) Regulations 1959 applies to the Reserve Bank of Australia, which administers financial sanctions on behalf of the Australian government. These regulations cover foreign currency transactions involving certain persons and entities in or associated with Libya. The revocation of these regulations pertains specifically to Libya, and the repeal will be effective upon the commencement of a new legislative instrument enacted under the Autonomous Sanctions Regulations 2011, administered by the Department of Foreign Affairs and Trade. The revocations ensure continuity in Australia's autonomous financial sanctions regime. The scope of the act is limited to the cessation of financial sanctions on Libya and does not extend to other countries or entities unless specified in subsequent legislative instruments. The human rights implications of this instrument suggest that the removal of prohibitions under the Banking Regulations without equivalent sanctions will promote the human rights and freedoms of affected individuals, thereby ensuring compatibility with human rights as recognised in international instruments.

Key Provisions

The key provisions of this legislation involve the revocation of specific financial sanctions instruments that were previously in place under the Banking (Foreign Exchange) Regulations 1959 (Banking Regulations) with respect to Libya. These instruments include the Direction Relating to Foreign Currency Transactions and to Libya (Section 5 of the Banking Regulations), and two variations of exemptions, one concerning sub-regulation 6(1) and the other concerning sub-regulation 8(1)(a) of the Banking Regulations (Sections 6 and 8 respectively). The revocation of these instruments effectively removes the autonomous financial sanctions that were previously imposed on individuals and entities associated with Libya, transferring the administration of such sanctions to the Department of Foreign Affairs and Trade under the Autonomous Sanctions Regulations 2011. The obligations imposed by this legislation on parties and entities primarily concern the cessation of activities that were previously restricted under the revoked instruments. Entities and individuals who were subject to the sanctions outlined in these instruments are now free from the limitations that were previously in place. The Reserve Bank of Australia is relieved from its role in administering these sanctions, thereby delegating this responsibility to the Department of Foreign Affairs and Trade, which will enforce the new regime established under the Autonomous Sanctions Regulations. Any breach of the provisions within the Banking Regulations, prior to their revocation, would have constituted an offence under the applicable sections of the Act. The specific penalties for such breaches were outlined within the Banking Regulations themselves and could include fines and imprisonment. However, with the revocation of these specific instruments, any prior breaches would no longer be applicable under the Banking Regulations. The new legislative framework under the Autonomous Sanctions Regulations 2011 will outline any new offences, penalties, and enforcement mechanisms that will apply moving forward. These new provisions will be detailed in the forthcoming instruments enacted by the Department of Foreign Affairs and Trade.

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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.