Sanctions (Clearing Office) Regulations

Overview

The Sanctions (Clearing Office) Regulations 1935 were made under the Sanctions Act 1935 and were enacted to address the need for a structured method of handling financial transactions between Australian entities and those in Italy during a period of international sanctions. These Regulations established a Clearing Office to manage the receipt, custody, and payment of moneys due by Australian persons to Italian persons. The Regulations were made by the Governor-General in Council, indicating the involvement of the federal executive in their formulation and implementation. The policy objective behind these Regulations was to ensure compliance with the sanctions regime by establishing a formal process for the notification and management of debts, thereby preventing the circumvention of sanctions through informal or illicit financial activities.

Scope and Application

The Sanctions (Clearing Office) Regulations 1935, which are subordinate legislation under the Sanctions Act 1935, establish a framework for the administration of monetary transactions between Australian persons or entities and persons in Italy. These Regulations apply to all persons in Australia, including individuals and bodies politic or corporate, who owe a debt to a person in Italy. The Clearing Office established by these Regulations is tasked with receiving, holding, and making payments of such debts in accordance with the specified procedures. The Controller, appointed by the Treasurer, is responsible for managing the Clearing Office and has the authority to delegate certain functions related to the administration of these Regulations. Any person in Australia who fails to notify the Controller of debts owed to Italians or who does not comply with Controller directives can face penalties, including fines of up to one hundred pounds or imprisonment for six months. The Regulations apply nationally, including the Territories of Papua, New Guinea, and Norfolk Island, and can be extended or modified through further regulations under the Sanctions Act 1935.

Key Provisions

The Sanctions (Clearing Office) Regulations, made under the Sanctions Act 1935, establish the framework for managing financial transactions between Australian residents and Italians. The Regulations, effective from 18 November 1935, include a Clearing Office, managed by the Controller appointed by the Treasurer (section 4). This Clearing Office handles the receipt, custody, and payment of moneys due by Australians to Italians. The term "person" in these Regulations includes both individuals and corporate bodies, and "Australia" extends to include the Territories of Papua, New Guinea, and Norfolk Island (section 3). The Controller has the authority to delegate his powers and functions to a delegate, who can then exercise those powers within specified matters, states, or territories (section 5). Such delegations are revocable at the Controller’s discretion, ensuring that the Controller retains ultimate authority over all delegated functions. Under these Regulations, any Australian debtor owing money to an Italian creditor must notify the Controller of the debt within one month of the debt becoming due or from the Regulations coming into effect (section 6(1)). This notification must include details of the debt and the identities of both the debtor and the creditor. Debtors must also comply with any directives from the Controller, including the payment of debts into the Controller’s custody if required. Failure to notify the Controller, comply with directives, or improperly dispose of funds held for Italian creditors constitutes an offence (section 6(2)). The penalty for such an offence is a fine of one hundred pounds or imprisonment for six months. This stringent penalty underscores the importance of adhering to the Regulations’ requirements to manage financial sanctions effectively.