Public consultation on expanding Australia's sanctions on North Korea

Public consultation on the exposure drafts of proposed amendments to the Autonomous Sanctions Regulations 2011 and the Autonomous Sanctions (Sanctioned Vessels – Democratic People's Republic of Korea) Designation 2015 have closed and are now being considered. The proposed amendments would give effect to expanded sanctions in relation to the Democratic People's Republic of Korea (DPRK) announced by the Foreign Minister, the Hon Julie Bishop MP, on 2 December 2016.

The Government invited comments on the following exposure drafts:

Overview

Restrictions on the provision of services

The Regulation Amendment would prohibit the unauthorised provision of any service to:

  • Air Koryo (DPRK’s national airline)
  • Entities / persons, wherever located, engaged or intending to become engaged in an extractive or related industry in the DPRK
  • Entities / persons, wherever located, engaged or intending to become engaged in the creation, construction, installation, development, maintenance or decommissioning of infrastructure associated with an extractive or related industry in the DPRK
  • Entities / persons of the DPRK, wherever located, engaged or intending to become engaged in an extractive or related industry outside the DPRK

‘Extractive or related industry’ would be defined to mean any industry engaged in exploring or prospecting for raw materials to be extracted from the earth; extracting such raw materials from the earth; and refining or processing such raw materials extracted from the earth.

Restrictions on commercial activities

The Regulation Amendment would prohibit the unauthorised engagement in the following activities:

  • certain types of business dealings in respect of entities / persons engaged or intending to become engaged in an extractive or related industry in the DPRK or in the creation, construction, installation, development, maintenance or decommissioning of infrastructure associated with an extractive or related industry in the DPRK, including:
    • creating such an entity
    • acquiring or extending an interest in such an entity / person
    • establishing or participating in a joint venture, partnership or other business relationship with such an entity / person; or
    • granting a financial loan or credit to such an entity / person.

The Regulation Amendment would also prohibit DPRK entities / persons from acquiring an interest in an extractive or related industry in Australia.

It would also prohibit obtaining, using or dealing with any tenement or permission (however described) in relation to an extractive or related industry in the DPRK or in relation to the creation, installation, development, maintenance or decommissioning of infrastructure associated with an extractive or related industry in the DPRK.

Designation of persons or entities

The Regulation Amendment would expand the grounds upon which the Minister for Foreign Affairs may designate a person / entity for targeted financial sanctions and travel bans so the grounds would cover:

  • A person or entity that the Minister is satisfied is, or has been, associated with the DPRK’s weapons of mass destruction program or missiles program
  • A person or entity that the Minister is satisfied is assisting, or has assisted, in the violation, or evasion, by the DPRK of relevant UN Security Council resolutions related to the DPRK

Designation of sanctioned vessels

The Designation Amendment would designate a class of vessels, namely vessels owned, registered, flagged, operated or chartered by, or otherwise controlled or directed by, DPRK entities / persons.

As such, the Minister would have the authority to direct any vessel within that class to leave Australia or not enter a particular port or place (or any port or place) in Australia, without having to add the individual vessel to the list.

Last Updated: 16 May 2017