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

Administered by Department of the Treasury

Legislation au F2012L00432 Not in force Legislative Instrument

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BANKING (FOREIGN EXCHANGE) REGULATIONS 1959
AUTONOMOUS FINANCIAL SANCTIONS AGAINST SYRIA – 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 Syria:

(i)                 Direction Relating To Foreign Currency Transactions And To Syria issued under regulation 5 of the Banking Regulations dated 16 June 2011, as published in the Commonwealth of Australia Gazette No. GN 24, 22 June 2011 (and as subsequently amended), relating to foreign currency transactions involving certain persons and entities in or associated with Syria;

(ii)               Variation of Exemption dated 16 June 2011, as published in the Commonwealth of Australia Gazette No. GN 24, 22 June 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 Syria; and

(iii)            Variation of Exemption dated 16 June 2011, as published in the Commonwealth of Australia Gazette No. GN 24, 22 June 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 Syria.

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 Syria.

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 – SYRIA

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 were enacted to regulate foreign exchange transactions and prevent unauthorised dealings in foreign currency. The problem this legislation aimed to address was the need for a comprehensive framework to manage foreign exchange activities and prevent illegal or unapproved currency transactions, which could threaten Australia’s economic stability and sovereignty. Enacted by the Australian Parliament, the policy objective of these regulations was to ensure that foreign exchange transactions were conducted in a manner consistent with national economic policies and international obligations. As part of the Australian government's policy to reform its autonomous sanctions regime, these regulations have been amended to align with the new legislative framework under the Autonomous Sanctions Act 2011. The Reserve Bank of Australia has been directed to revoke existing autonomous financial sanctions that were previously administered under these regulations, ensuring a smooth transition to the new regime managed by the Department of Foreign Affairs and Trade. This change is designed to maintain the integrity and effectiveness of Australia’s sanctions policy while ensuring compatibility with human rights standards.

Scope and Application

The Banking (Foreign Exchange) Regulations 1959, as amended, is legislation that applies to foreign exchange transactions, particularly those involving certain persons and entities in or associated with specific countries, including Syria. The regulations govern the activities of financial institutions and other authorised dealers in foreign exchange, ensuring compliance with Australia’s autonomous targeted financial sanctions. The revocation of the legislative instruments pertaining to Syria under this act will result in the Reserve Bank of Australia no longer administering these sanctions, transferring the responsibility to the Department of Foreign Affairs and Trade under the new Autonomous Sanctions Regulations 2011. The revocation will take effect only upon the commencement of new legislative instruments under the Autonomous Sanctions Regulations, ensuring a seamless transition and continuity in Australia's sanctions regime. The act applies nationally, covering all entities and individuals within Australia engaging in foreign exchange transactions related to the specified countries.

Key Provisions

The Banking (Foreign Exchange) Regulations 1959 (Banking Regulations) have been subject to revisions to align with Australia's new autonomous sanctions regime. The key sections (18(1) and 18(2)(e) of the Legislative Instruments Act 2003) that facilitate this change are those that allow the Reserve Bank of Australia to revoke existing sanctions. Specifically, the legislative instrument directs the Reserve Bank to revoke certain instruments that were previously in place to enforce sanctions against Syria, namely the Direction Relating To Foreign Currency Transactions And To Syria, and the Variations of Exemption under sub-regulations 6(1) and 8(1)(a) of the Banking Regulations. These revocations will take effect upon the commencement of new legislative instruments enacted under the Autonomous Sanctions Regulations 2011. The obligations and requirements imposed by this legislation on the Reserve Bank of Australia are primarily administrative. The Reserve Bank is tasked with ensuring that the revocation of the specified instruments is executed in a manner that maintains the continuity of Australia's sanctions regime. This includes ceasing to administer any sanctions related to Syria under the Banking Regulations and ensuring that the new regime under the Autonomous Sanctions Regulations is effectively implemented. The Department of Foreign Affairs and Trade (DFAT) has already undertaken extensive public consultation on the new sanctions regime, and the Reserve Bank has determined that additional consultation is unnecessary. The revocation of the specified instruments does not, in itself, create any new offences or penalties. However, the sanctions that these instruments enforced were intended to prevent activities that could be considered illegal under other legislation. Consequently, any breach of the sanctions that were enforced under the repealed instruments could result in civil or criminal penalties under other applicable laws. The maximum penalties for such breaches would depend on the specific nature of the prohibited activities and the relevant legislation under which the offences are prosecuted. The new legislative instruments under the Autonomous Sanctions Regulations will detail any new sanctions and associated penalties. Overall, this legislative instrument ensures a smooth transition from the Banking Regulations to the new autonomous sanctions regime. By revoking the specific instruments related to Syria, the Reserve Bank of Australia is facilitating the shift of responsibility for administering sanctions to DFAT, while ensuring that there is no gap in the enforcement of sanctions during this transition period.

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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.