Explanatory Statement
Issued by the Authority of the Minister for Foreign Affairs
Charter of the United Nations Act 1945
Charter of the United Nations (Sanctions-Iran) (Specified Entities) List Instrument of Repeal 2016)
Section 6 of the Charter of the United Nations Act 1945 (the Act) provides that the Governor-General may make regulations to give effect to decisions of the United Nations Security Council (UNSC) under Chapter VII of the Charter of the United Nations (the Charter) that Australia is required to carry out under Article 25 of the Charter in so far as those decisions require Australia to apply measures not involving the use of armed force. Section 6(2)(g) of the Act also allows the regulations to authorise the making of legislative instruments.
The purpose of the Charter of the United Nations (Sanctions-Iran) (Specified Entities)
List Instrument of Repeal 2016) (Repeal Instrument) is to repeal, in its entirety, the Charter of the United Nations (Sanctions-Iran)(Specified Entities) List 2010, a legislative instrument that created a list of entities, specified by the Foreign Minister made under s17E of the Charter of the United Nations (Sanctions-Iran) Regulations 2008.
The Charter of the United Nations (Sanctions-Iran)(Specified Entities) List 2010 partially represented the discharge of Australia’s legal obligation under paragraph 22 of the UN Security Council Resolution 1929 (2010). This resolution determined that all States shall required their nationals, persons subject to their jurisdiction and firms incorporated in their territory or subject to their jurisdiction to exercise vigilance when doing business with entities incorporated in Iran or subject to Iran’s jurisdiction, including those of the Islamic Revolutionary Guard Corps (IRGC) and the Islamic Republic of Iran Shipping Lines (IRISL), and any individuals or entities acting on their behalf or at their direction, and entities owned or controlled by them, including through illicit means, if they have information that provides reasonable grounds to believe that such business could contribute to Iran’s proliferation-sensitive nuclear activities or the development of nuclear weapons delivery systems or to violations of resolutions 1737, 1747, 1803 or 1929.
Through the UN Security Council Resolution 2231 (2015), the international community has agreed to terminate resolutions 1696 (2006), 1737 (2006), 1747 (2007), 1803 (2008), 1835 (2008), 1929 (2010) and 2224 (2015). Following this international agreement to no longer maintain the full range of UN sanctions imposed in relation to Iran, the Charter of the United Nations (Sanctions - Iran) (Specified Entities) List 2010 is repealed in its entirety.
No public consultation was undertaken in relation to the Repeal Instrument under section 17 of the Legislative Instruments Act 2003 before this instrument was made as the instrument removes obligations on the Australian community and implements Australia’s international legal obligations arising from the decisions of the UN Security Council.
Details of the Legislative Instrument are set out in the Attachment.
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Charter of the United Nations (Sanctions-Iran) (Specified Entities) List Instrument of Repeal 2016)
The Charter of the United Nations (Sanctions-Iran) (Specified Entities) List Instrument of Repeal 2016) (Repeal 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. This is because the Repeal Instrument repeals the full list of Iranian specified entities allowing the Australian community to undertake business with those entities named in the list whereas previously such business activities were prohibited under the Charter of the United Nations (Sanctions-Iran) Regulations 2008.
Attachment
Details of the Charter of the United Nations (Sanctions-Iran) (Specified Entities) List Instrument of Repeal 2016
Section 1 – Name of Regulation
Section 1 provides that the name of the instrument is the Charter of the United Nations (Sanctions-Iran) (Specified Entities) List Instrument of Repeal 2016.
Section 2 – Commencement
Section 2 provides that the legislative instrument commences on the day after it is registered on the Federal Register of Legislative Instruments.
Section 3 – Repeal
Section 3 provides that the instrument repeals the Charter of the United Nations (Sanctions-Iran) (Specified Entities) List 2010.
Overview
The Charter of the United Nations (Sanctions-Iran) (Specified Entities) List Instrument of Repeal 2016 was enacted to repeal the Charter of the United Nations (Sanctions-Iran) (Specified Entities) List 2010, which was established to enforce United Nations Security Council sanctions against Iran. This instrument was created under the authority of the Charter of the United Nations Act 1945, which empowers the Governor-General to make regulations in line with the decisions of the UN Security Council, specifically those requiring Australia to apply measures not involving armed force. The primary objective of this repeal instrument is to align Australian legislation with the international community's decision, as per UN Security Council Resolution 2231 (2015), to terminate several resolutions that had imposed sanctions on Iran. By repealing the 2010 list, the instrument removes the legal prohibition on Australian entities doing business with specified Iranian entities, thus implementing Australia’s new international legal obligations.
Scope and Application
The Charter of the United Nations (Sanctions-Iran) (Specified Entities) List Instrument of Repeal 2016, made under section 6 of the Charter of the United Nations Act 1945, is an instrument of Australian legislation that repeals the Charter of the United Nations (Sanctions-Iran) (Specified Entities) List 2010 in its entirety. This Act applies to the Australian government and any entities or persons subject to Australian jurisdiction, with a focus on ensuring compliance with United Nations Security Council resolutions. The instrument addresses measures that were previously required to be taken against certain Iranian entities to prevent proliferation-sensitive nuclear activities and violations of specific UN resolutions. The repeal of the 2010 List aligns with the broader international agreement to terminate certain UN sanctions against Iran, as outlined in UN Security Council Resolution 2231 (2015). The instrument, which removes obligations previously imposed on Australians, was created to implement Australia’s international legal obligations. It commenced on the day after its registration on the Federal Register of Legislative Instruments and is compatible with human rights as it removes restrictions on business activities with previously specified entities.
Key Provisions
The Charter of the United Nations (Sanctions-Iran) (Specified Entities) List Instrument of Repeal 2016 (the Repeal Instrument) is primarily concerned with repealing the Charter of the United Nations (Sanctions-Iran)(Specified Entities) List 2010, which had previously established a list of entities specified by the Foreign Minister under section 17E of the Charter of the United Nations (Sanctions-Iran) Regulations 2008. This repeal is made under section 6 of the Charter of the United Nations Act 1945, which allows the Governor-General to create regulations to implement decisions of the United Nations Security Council (UNSC) under Chapter VII of the Charter that require Australia to take action under Article 25 of the Charter, excluding those actions involving the use of armed force. Section 6(2)(g) of the Act further permits the creation of legislative instruments to enforce these regulations.
The Repeal Instrument imposes specific obligations on the parties it governs, primarily by removing restrictions that were previously in place. The repealed list had required vigilance from Australian nationals, entities within Australia's jurisdiction, and firms incorporated in Australia when engaging in business with entities based in Iran or subject to Iran’s jurisdiction, particularly those linked to the Islamic Revolutionary Guard Corps (IRGC) and the Islamic Republic of Iran Shipping Lines (IRISL). With the Repeal Instrument, these entities are no longer subject to the previous restrictions, and Australian entities are now free to conduct business with them unless otherwise restricted by international law or domestic regulations.
There are no explicit criminal or civil penalties outlined in the Repeal Instrument itself. However, the repeal of the Charter of the United Nations (Sanctions-Iran)(Specified Entities) List 2010 means that entities engaging in business with previously restricted Iranian entities must still comply with other relevant Australian laws and any remaining international obligations. Failure to adhere to these could result in penalties under other statutes, such as the Charter of the United Nations Act 1945 or the Crimes Act 1914. It is important to note that the Repeal Instrument is designed to align Australian law with the recent international consensus as expressed in UN Security Council Resolution 2231 (2015), which terminated several previous sanctions resolutions against Iran.