Restrictions on commercial activities

This page summarises Australia’s restrictions on commercial activities with respect to the DPRK, including new measures and provisions that came into effect on 5 August 2017.

UNSC sanctions regime

1. Australian law prohibits:

  • the opening in Australia of a representative office, or the establishment in Australia of a branch or subsidiary, of:
  • the conclusion of an agreement related to the matters mentioned above, for or on behalf of:
  • the establishment by a financial institution of a joint venture, or a correspondent banking relationship, with:
  • the opening by a financial institution of a bank account with:
  • the acquisition or extension of an interest in an Australian financial institution by: and
  • the sale, or otherwise making available, of an interest in an Australian financial institution to:

an entity that is:

  • a financial institution domiciled in the DPRK
  • a branch or subsidiary, wherever located, of a financial institution domiciled in the DPRK, or
  • a financial institution, wherever domiciled, that is controlled by an entity or person domiciled in the DPRK,

without a sanctions permit.

2. Australian law also prohibits financial institutions from opening a representative office, branch or subsidiary in the DPRK.

Conditions for the grant of a sanctions permit

The Minister for Foreign Affairs may grant a sanctions permit authorising a person to engage in a sanctioned commercial activity. The Minister may only grant a permit if the sanctioned commercial activity has been approved in advance by the Committee.

If you assess that your activity could satisfy these conditions, you may apply for a sanctions permit using the Online Sanctions Administration System (OSAS).

Australian autonomous sanctions regime

Australia’s autonomous sanctions law also prohibits:

  • obtaining of any asset that is a tenement or permission (however described) in relation to an extractive or related industry in the DPRK or in relation to the creation, construction, installation, development, maintenance or decommissioning of infrastructure associated with an extractive or related industry in the DPRK;
  • using, dealing with or making available any asset for the purpose of obtaining any tenement or permission (however described) in relation to an extractive or related industry in the DPRK or in relation to the creation, construction, installation, development, maintenance or decommissioning of infrastructure associated with an extractive or related industry in the DPRK;
  • obtaining, directly or indirectly, any tenement or permission (however described) in relation to an extractive or related industry in the DPRK or in relation to the creation, construction, installation, development, maintenance or decommissioning of infrastructure associated with an extractive or related industry in the DPRK from a DPRK person or entity, a person or entity acting on behalf of (or at the direction of) a DPRK person or entity, or an entity owned or controlled by a DPRK person or entity;
  • selling or making available (otherwise than by sale) an interest in a commercial activity in an extractive or related industry in Australia to a DPRK person or entity, a person acting on behalf of (or at the direction of) a DPRK person or entity, or an entity owned or controlled by a DPRK person or entity;
  • acquiring or extending an interest in a person or entity mentioned in the table below;
  • establishing or participating in a joint venture, partnership or other business relationship with a person with a person or entity mentioned in the table below; and
  • granting a financial loan or credit to a person or entity mentioned in the table below.

Item

Person or entity

1

A person or entity, wherever located, that is engaged in an extractive or related industry in the DPRK.

2

A person or entity, wherever located, that is engaged in the creation, construction, installation, development, maintenance or decommissioning of infrastructure associated with an extractive or related industry in the DPRK.

3

A person or entity acting on behalf of, or at the direction of, a person or entity mentioned in item 1 or 2.

4

An entity owned or controlled by a person or entity mentioned in item 1 or 2.

5

A person or entity, wherever located, that:

  1. is engaged in an extractive or related industry outside the DPRK; and
  2. is any of the following:
    1. a DPRK person or entity;
    2. a person or entity acting on behalf of, or at the direction of, a DPRK person or entity;
    3. an entity owned or controlled by a DPRK person or entity.

Conditions for the grant of a sanctions permit

The Minister for Foreign Affairs may grant a sanctions permit authorising an activity that would contravene these prohibitions if the Minister is satisfied that it would be in the national interest to do so.

If you assess that your activity satisfies this condition, you may apply for a sanctions permit using the Online Sanctions Administration System (OSAS).

Implementing legislation


Last Updated: 8 August 2017