Charter of the United Nations (Sanctions — Democratic People's Republic of Korea) Regulations 2006

Overview

The Charter of the United Nations (Sanctions – Democratic People’s Republic of Korea) Regulations 2006 (F2006L03619) were enacted to implement Australia’s obligations under United Nations Security Council Resolution 1718, which was adopted on 14 October 2006. These Regulations were issued by the authority of the Minister for Foreign Affairs and aim to enforce the sanctions imposed by the UN against the Democratic People’s Republic of Korea (DPRK) in response to its nuclear, weapons of mass destruction, and ballistic missile programmes. The primary policy objective is to ensure compliance with UNSCR 1718 by preventing the supply, sale, or transfer of specified goods and services to the DPRK, and by freezing the assets of designated individuals and entities supporting these programmes. The Regulations address the gap in domestic law to enforce the extraterritorial application of these sanctions, extending their reach to Australian nationals and vessels abroad.

Scope and Application

The Charter of the United Nations (Sanctions – Democratic People’s Republic of Korea) Regulations 2006 apply to all persons and entities within Australia, including its nationals and entities incorporated or operating in Australia, and extend to conduct and transactions occurring outside of Australia's jurisdiction to fulfil the nation's obligations under United Nations Security Council Resolution 1718. These Regulations implement specific sanctions against the Democratic People’s Republic of Korea, encompassing the prohibition of the supply, sale, or transfer of conventional military goods, items related to the DPRK's nuclear, weapons of mass destruction, and ballistic missile programs, as well as luxury goods. Furthermore, they mandate the prevention of technical training, advice, services, or assistance related to these specified items and the procurement of such items from the DPRK. These prohibitions apply extraterritorially, impacting Australian nationals and vessels or aircraft regardless of location. The Regulations also address financial sanctions by requiring the freezing of funds and economic resources owned or controlled by designated persons or entities supporting the DPRK's prohibited programs, and preventing the transfer of funds or resources to these entities. The scope of these measures is extensive, ensuring compliance with UNSCR 1718, and may be further extended or specified through subordinate instruments authorised by the Minister for Foreign Affairs.

Key Provisions

The Charter of the United Nations (Sanctions – Democratic People’s Republic of Korea) Regulations 2006 (hereafter referred to as the "Regulations") implement Australia's obligations under United Nations Security Council Resolution (UNSCR) 1718, adopted on 14 October 2006, to impose a range of sanctions against the Democratic People’s Republic of Korea (DPRK). The Regulations aim to ensure that those aspects of the sanctions that cannot be implemented under existing regulations are adequately incorporated into domestic law. The primary operative sections of the Regulations (sections 4, 5, and 6) require Australia to prevent the supply, sale, or transfer of certain conventional military goods, items related to the DPRK's nuclear, weapons of mass destruction or ballistic missile programmes, and luxury goods to the DPRK. They also require Australia to prevent the transfer of technical training, advice, services or assistance related to specified items to the DPRK, and to prohibit the procurement of specified items from the DPRK. The Regulations impose obligations on all Australian citizens, entities incorporated or constituted under Australian law, and all other entities within Australia to comply with the sanctions. These obligations include refraining from any direct or indirect supply, sale, or transfer of prohibited items to the DPRK, providing technical training or assistance related to prohibited items, or procuring specified items from the DPRK. The prohibitions also apply extraterritorially, affecting Australian nationals abroad and the use of Australian vessels and aircraft. Additionally, the Regulations require the freezing of funds, other financial assets, and economic resources owned or controlled by designated persons or entities supporting the DPRK's nuclear, weapons of mass destruction, and ballistic missile programmes, and the prevention of transfers of any funds, financial assets, or economic resources to or for the benefit of such designated persons or entities. Failure to comply with the Regulations may result in various consequences. Under section 11, any person who contravenes a provision of the Regulations is liable to a civil penalty not exceeding 500 penalty units (approximately AUD 50,000 as of the date of issuance). The Regulations also provide that any person who intentionally or recklessly contravenes a provision of the Regulations may be subject to criminal prosecution, with penalties including fines up to 5,000 penalty units and imprisonment for up to five years. Additionally, corporations found to have contravened the Regulations may be liable to fines of up to 25,000 penalty units. The enforcement of these penalties and the administration of the Regulations are overseen by the relevant Commonwealth Government Departments, ensuring that Australia meets its obligations under Article 25 of the United Nations Charter.