Part 1—Preliminary
1 Name of Regulations
These Regulations are the Charter of the United Nations (Sanctions—Democratic People’s Republic of Korea) Regulations 2008.
4 Definitions
In these Regulations:
Act means the Charter of the United Nations Act 1945.
arms or related matériel includes:
(a) weapons; and
(b) ammunition; and
(c) military vehicles and equipment; and
(d) spare parts and accessories for the things mentioned in paragraphs (a) to (c); and
(e) paramilitary equipment.
Australian aircraft has the same meaning as in the Criminal Code.
Australian citizen has the same meaning as in the Australian Citizenship Act 2007.
Australian ship has the same meaning as in the Criminal Code.
authorised commercial activity means a sanctioned commercial activity authorised by a permit granted under regulation 14G.
authorised service means a sanctioned service that is authorised by:
(a) a permit under regulation 14E; or
(b) if the service is provided in a foreign country—a permit:
(i) granted by the foreign country; and
(ii) properly granted by the foreign country; and
(iii) granted in a way that accords with the foreign country’s obligations under Resolution 1718 and Resolution 1784.
authorised supply means a sanctioned supply that is authorised by:
(a) a permit under regulation 14B; or
(b) if the supply, sale or transfer takes place in or from a foreign country—a permit:
(i) granted by the foreign country; and
(ii) properly granted by the foreign country; and
(iii) granted in a way that accords with the foreign country’s obligations under Resolution 1718 and Resolution 1874.
aviation fuel includes aviation gasoline, naphtha‑type jet fuel, kerosene‑type jet fuel and kerosene‑type rocket fuel.
bunkering service, for a vessel, includes:
(a) the provision of fuel to the vessel; and
(b) the provision of supplies to the vessel; and
(c) other servicing of the vessel.
Committee means the Committee established by paragraph 12 of Resolution 1718.
controlled asset means:
(a) an asset owned or controlled by:
(i) a designated person or entity; or
(ii) a person acting on behalf of or at the direction of a designated person or entity; or
(iii) an entity owned or controlled by a designated person or entity, including through illicit means; or
(b) an asset derived from an asset owned or controlled, directly or indirectly, by:
(i) a designated person or entity; or
(ii) a person acting on behalf of or at the direction of a designated person or entity; or
(iii) an entity owned or controlled by a designated person or entity, including through illicit means.
correspondent banking relationship has the meaning given by section 5 of the Anti‑Money Laundering and Counter‑Terrorism Financing Act 2006.
designated person or entity means a person or entity that:
(a) the Minister has designated under regulation 4A; or
(b) the Committee or the Security Council designates for paragraph 8(d) of Resolution 1718.
Note: The list of designated persons and entities maintained by the Committee could in 2016 be viewed on the United Nations’ website (http://www.un.org).
DPRK means the Democratic People’s Republic of Korea.
DPRK vessel means a vessel registered in the DPRK or owned or controlled by the DPRK.
export sanctioned goods has the meaning given by regulation 5.
goods include items, materials, equipment and technology.
import sanctioned goods has the meaning given by regulation 7.
investment service means the following services and activities:
(a) reception and transmission of orders in relation to one or more financial instruments;
(b) execution of orders on behalf of clients;
(c) dealing on own account;
(d) portfolio management;
(e) investment advice;
(f) either or both of the following:
(i) underwriting of financial instruments;
(ii) placing of financial instruments on a firm commitment basis;
(g) placing of financial instruments without a firm commitment basis;
(h) any service in relation to the admission to trading on a regulated market or trading on a multilateral trading facility.
paramilitary equipment means any of the following:
(a) batons, clubs, riot sticks and similar devices of a kind used for law enforcement purposes;
(b) body armour, including:
(i) bullet‑resistant apparel; and
(ii) bullet‑resistant pads; and
(iii) protective helmets;
(c) handcuffs, leg‑irons and other devices used for restraining prisoners;
(d) riot protection shields;
(e) whips;
(f) parts and accessories designed or adapted for use in, or with, equipment mentioned in paragraphs (a) to (e).
permanent resident has the same meaning as in the Australian Citizenship Act 2007.
Resolution 1718 means Resolution 1718 (2006) of the Security Council, adopted on 14 October 2006.
Resolution 1874 means Resolution 1874 (2009) of the Security Council, adopted on 12 June 2009.
Resolution 2087 means Resolution 2087 (2013) of the Security Council, adopted on 22 January 2013.
Resolution 2094 means Resolution 2094 (2013) of the Security Council, adopted on 7 March 2013.
Resolution 2270 means Resolution 2270 (2016) of the Security Council, adopted on 2 March 2016.
sanctioned commercial activity has the meaning given by regulation 8A.
sanctioned service has the meaning given in regulation 8.
sanctioned supply has the meaning given in regulation 6.
Security Council means the United Nations Security Council.
4A Designation of persons or entities
For the purposes of paragraph (a) of the definition of designated person or entity, the Minister may, by legislative instrument, designate an entity of:
(a) the government of the Democratic People’s Republic of Korea; or
(b) the Workers’ Party of the Democratic People’s Republic of Korea;
if the Minister is satisfied that the entity is associated with either or both of the following:
(c) the nuclear or ballistic missile programs, or other weapons of mass destruction programs, of the Democratic People’s Republic of Korea;
(d) activities prohibited by Resolution 1718, Resolution 1874, Resolution 2087, Resolution 2094 or Resolution 2270, or any other relevant Resolution of the Security Council.
5 Export sanctioned goods
(1) For these Regulations, the following, whether or not they originate in Australia, are export sanctioned goods:
(a) arms or related matériel;
(aa) aviation fuel;
(b) goods mentioned in the luxury goods list determined by the Minister under subregulation (2);
(c) either:
(i) goods mentioned in a document specified by the Minister under subregulation (3); or
(ii) if no legislative instrument is in force under subregulation (3)—goods mentioned in subregulation (4);
(d) goods that have been determined by the Security Council or the Committee for subparagraphs (8)(a)(i) and (ii) of Resolution 1718;
(e) goods that the Minister has determined could contribute to:
(i) the nuclear or ballistic missile programs, or other weapons of mass destruction programs, of the Democratic People’s Republic of Korea; or
(ii) activities prohibited, or the evasion of measures imposed, by Resolution 1718, Resolution 1874, Resolution 2087, Resolution 2094 or Resolution 2270, or any other relevant Resolution of the Security Council.
(2) The Minister may, by legislative instrument, determine a luxury goods list for paragraph (1)(b).
(3) The Minister may, by legislative instrument, specify documents for subparagraph (1)(c)(i).
(4) For subparagraph (1)(c)(ii), the goods are goods mentioned in the following Security Council and International Atomic Energy Agency documents:
(a) S/2006/814;
(b) S/2006/815;
(c) S/2006/853;
(d) INFCIRC/254/Rev.9/Part 1a;
(e) INFCIRC/254/Rev.7/Part 2a.
(5) The Minister may, by legislative instrument, determine goods for the purposes of paragraph (1)(e).
6 Sanctioned supply
(1) A person makes a sanctioned supply if:
(a) the person supplies, sells or transfers goods to another person; and
(b) the goods are export sanctioned goods; and
(c) as a direct or indirect result of the supply, sale or transfer the goods are transferred to the Democratic People’s Republic of Korea, or are incorporated into goods that are transferred to the Democratic People’s Republic of Korea.
(2) A person also makes a sanctioned supply if:
(a) the person transfers to another person:
(i) any financial or other assets or resources, including bulk cash; or
(ii) gold, including through gold couriers; and
(b) that transfer could contribute to:
(i) the nuclear or ballistic missile programs, or other weapons of mass destruction programs, of the Democratic People’s Republic of Korea; or
(ii) activities prohibited, or the evasion of measures imposed, by Resolution 1718, Resolution 1874, Resolution 2087, Resolution 2094 or Resolution 2270, or any other relevant Resolution of the Security Council.
7 Import sanctioned goods
(1) For these Regulations, the following, whether or not they originate in the Democratic People’s Republic of Korea, are import sanctioned goods:
(a) arms or related matériel;
(aa) gold, titanium ore, vanadium ore or rare earth minerals;
(b) goods mentioned in paragraph 5(1)(c);
(c) goods that have been determined by the Security Council or the Committee for subparagraphs (8)(a)(i) and (ii) of Resolution 1718;
(d) goods that the Minister has determined could contribute to:
(i) the nuclear or ballistic missile programs, or other weapons of mass destruction programs, of the Democratic People’s Republic of Korea; or
(ii) activities prohibited, or the evasion of measures imposed, by Resolution 1718, Resolution 1874, Resolution 2087, Resolution 2094 or Resolution 2270, or any other relevant Resolution of the Security Council.
(2) The Minister may, by legislative instrument, determine goods for the purposes of paragraph (1)(d).
8 Sanctioned service
(1) For these Regulations, each of the following is a provision of a sanctioned service:
(a) the provision to any person of technical training, advice, services or assistance, if it assists with, or is provided in relation to, a supply of goods mentioned in paragraphs 5(1)(a), (c), (d) or (e) for the benefit of the Democratic People’s Republic of Korea;
(b) the provision to any person of technical training, advice, services or assistance, if:
(i) it assists with the manufacture, maintenance or use of goods mentioned in paragraphs 5(1)(a), (c), (d) or (e); or
(ii) it could contribute to the proliferation of sensitive nuclear activities or the development of nuclear weapon delivery systems in the Democratic People’s Republic of Korea;
(c) the transportation of goods:
(i) that are the subject of a sanctioned supply; or
(ii) that are import sanctioned goods in the course of being procured from the Democratic People’s Republic of Korea or from a person or entity in the Democratic People’s Republic of Korea;
(d) a financial transaction related to the supply, manufacture, maintenance or use of arms or related matériel;
(da) the leasing or chartering of an Australian ship or Australian aircraft to:
(i) the Democratic People’s Republic of Korea; or
(ii) a person who is a resident or national of the Democratic People’s Republic of Korea; or
(iii) a designated person or entity; or
(iv) a person or entity determined by the Minister, by legislative instrument, to have assisted in the evasion of sanctions or in violating Resolution 1718, Resolution 1874, Resolution 2087, Resolution 2094 or Resolution 2270, or any other relevant Resolution of the Security Council; or
(v) any other person acting on behalf, or at the direction, of a person or entity mentioned in subparagraph (i), (ii), (iii) or (iv);
(db) the crewing of a ship or aircraft, used to provide a service in, to or from the Democratic People’s Republic of Korea, with Australian citizens or permanent residents;
(e) brokering or other intermediary services, including when arranging for the provision, maintenance or use of export sanctioned goods;
(f) the provision of financial services that could contribute to:
(i) the nuclear or ballistic missile programs, or other weapons of mass destruction programs, of the Democratic People’s Republic of Korea; or
(ii) another activity prohibited, or the evasion of measures imposed, by Resolution 1718, Resolution 1874, Resolution 2087, Resolution 2094 or Resolution 2270, or any other relevant Resolution of the Security Council;
(g) the provision of public or private financial support for the purposes of trade with the Democratic People’s Republic of Korea, if the provision of that financial support could contribute to:
(i) the nuclear or ballistic missile programs, or other weapons of mass destruction programs, of the Democratic People’s Republic of Korea; or
(ii) activities prohibited by Resolution 1718, Resolution 1874, Resolution 2087, Resolution 2094 or Resolution 2270, or any other relevant Resolution of the Security Council.
Note: Subparagraph (b)(ii)—the kind of technical training that could contribute to those activities or systems includes training in advanced physics, advanced computer simulation and related computer sciences, geospatial navigation, nuclear engineering, aerospace engineering, aeronautical engineering and related disciplines.
(1A) The Minister may, by legislative instrument, determine individuals or entities for the purposes of subparagraph (1)(da)(iv).
(1B) For the purposes of these Regulations, a sanctioned service is also the provision to a person of an investment service if it assists with, or is provided in relation to, a sanctioned commercial activity.
(2) In this regulation:
brokering services means:
(a) the negotiation or arrangement of transactions for the purchase, sale or supply of goods and technology or of financial and technical services, including from a third country to any other third country; or
(b) the selling or buying of goods and technology or of financial and technical services, including where they are located in third countries for their transfer to another third country.
financial services includes the following:
(a) the acceptance of deposits and other repayable funds from the public;
(b) the lending of money;
(c) financial leasing, other than the financial leasing of a consumer product;
(d) the transfer of money or value, other than the provision of message or other support for the purpose of transmitting money;
(e) the giving of financial guarantees and commitments;
(f) trading in money market instruments;
(g) trading foreign exchange;
(h) trading in exchange instruments;
(i) trading in interest rate instruments;
(j) trading in interest index instruments;
(k) trading in transferable securities;
(l) trading in commodity futures;
(m) participation in the issue of securities and the provision of financial services in relation to the issue of securities;
(n) the management of individual or collective portfolios;
(o) the safekeeping and administration of cash or liquid securities;
(p) the investment, administration or management of funds or money;
(q) the underwriting and placement of life insurance and other insurance that is related to investments;
(r) money changing and other currency changing;
(s) the issue and management of means of payment.
Note: Examples of means of payment for paragraph (s) are:
(a) credit and debit cards; or
(b) cheques; or
(c) travellers’ cheques; or
(d) money orders; or
(e) bankers’ drafts; or
(f) electronic money.
insurance means an undertaking or commitment under which a person is obliged, in return for a payment, to provide a person, in the event of materialisation of a risk, with an indemnity or a benefit as determined by the undertaking or commitment.
8A Sanctioned commercial activity
(1) For the purposes of these Regulations, sanctioned commercial activity means:
(a) the opening in Australia of a representative office of an entity or person mentioned in an item of the following table; or
(b) the establishment in Australia of a branch or subsidiary of an entity or person mentioned in an item of the following table; or
(c) the conclusion by a person of an agreement, for or on behalf of an entity or person mentioned in an item of the following table, related to:
(i) the opening in Australia of a representative office of that entity or person; or
(ii) the establishment in Australia of a branch or subsidiary of that entity or person.
| Item | Entity or person |
| 1 | A financial institution domiciled in the Democratic People’s Republic of Korea |
| 2 | A branch or subsidiary, wherever located, of a financial institution domiciled in the Democratic People’s Republic of Korea |
| 3 | A financial institution, wherever domiciled, that is controlled by an entity or person domiciled in the Democratic People’s Republic of Korea |
(2) For the purposes of these Regulations, sanctioned commercial activity also means:
(a) the establishment by a financial institution of a joint venture with an entity or person mentioned in an item of the following table; or
(b) the establishment by a financial institution of a correspondent banking relationship with an entity or person mentioned in an item of the following table; or
(c) the opening by a financial institution of a representative office in the Democratic People’s Republic of Korea; or
(d) the establishment by a financial institution of a branch or subsidiary in the Democratic People’s Republic of Korea; or
(e) the opening by a financial institution of a bank account with an entity or person mentioned in an item of the following table; or
(f) the acquisition or extension of an interest in an entity or person mentioned in an item of the following table by an Australian financial institution; or
(g) the sale by a person of an interest in an entity or person mentioned in an item of the following table to an Australian financial institution; or
(h) the making available by a person (other than by sale) of an interest in an entity or person mentioned in an item of the following table to an Australian financial institution.
| Item | Entity or person |
| 1 | A financial institution domiciled in the Democratic People’s Republic of Korea |
| 2 | A branch or subsidiary, wherever located, of a financial institution domiciled in the Democratic People’s Republic of Korea |
| 3 | A financial institution, wherever domiciled, that is controlled by an entity or person domiciled in the Democratic People’s Republic of Korea |
8B Minister may give notice requiring closure of a bank account
(1) The Minister may, by written notice, direct a person to close the person’s bank account if the account provider is:
(a) a financial institution domiciled in the Democratic People’s Republic of Korea; or
(b) a branch or subsidiary, wherever located, of a financial institution domiciled in the Democratic People’s Republic of Korea; or
(c) a financial institution, wherever domiciled, that is controlled by an entity or a person domiciled in the Democratic People’s Republic of Korea.
(2) However, the Minister may only give notice to a person under this regulation if the Minister has reasonable grounds to believe that the person’s holding of the bank account could contribute to:
(a) the nuclear or ballistic missile programs, or other weapons of mass destruction programs, of the Democratic People’s Republic of Korea; or
(b) activities prohibited, or the evasion of measures imposed, by Resolution 1718, Resolution 1874, Resolution 2087, Resolution 2094 or Resolution 2270, or any other relevant Resolution of the Security Council.
(3) The Minister need not give notice to a person under this regulation in respect of a bank account if the Committee has determined that the bank account:
(a) is used to pay funds to ensure the delivery of humanitarian assistance; or
(b) involves the activities of a diplomatic mission in the Democratic People’s Republic of Korea under the Vienna Convention on Diplomatic Relations; or
(c) involves the activities of the United Nations, or a specialised agency or related organisation of the United Nations; or
(d) is for a purpose that is consistent with Resolution 1718, Resolution 1874, Resolution 2087, Resolution 2094 or Resolution 2270, or any other relevant Resolution of the Security Council.
Note: Paragraph (b)—the Vienna Convention on Diplomatic Relations is in Australian Treaty Series 1968 No. 3 ([1968] ATS 3) and could in 2016 be viewed in the Australian Treaties Library on the AustLII website (http://www.austlii.edu.au).
Part 1A—Sanctions laws
8C Offence for exporting items (other than export sanctioned goods etc.)
(1) A person commits an offence if:
(a) the person exports an item to:
(i) the Democratic People’s Republic of Korea; or
(ii) a person or entity in the Democratic People’s Republic of Korea; and
(b) the item is not:
(i) an export sanctioned good; or
(ii) food or medicine; and
(c) the export of the item:
(i) is not authorised by a permit under regulation 14A; or
(ii) is not in accordance with a condition specified in a permit under regulation 14A.
Penalty: 50 penalty units.
(2) Section 15.1 of the Criminal Code (extended geographical jurisdiction—category A) applies to an offence against subregulation (1).
(3) A person, whether or not in Australia, and whether or not an Australian citizen, commits an offence if:
(a) the person uses the services of an Australian ship or Australian aircraft to export an item to:
(i) the Democratic People’s Republic of Korea; or
(ii) a person or entity in the Democratic People’s Republic of Korea; and
(b) the item is not:
(i) an export sanctioned good; or
(ii) food or medicine; and
(c) the export of the item:
(i) is not authorised by a permit under regulation 14A; or
(ii) is not in accordance with a condition specified in a permit under regulation 14A.
Penalty: 50 penalty units.
(4) A body corporate commits an offence if:
(a) the body corporate has effective control over the actions of another body corporate or entity wherever incorporated or situated; and
(b) the other body corporate or entity exports an item to:
(i) the Democratic People’s Republic of Korea; or
(ii) a person or entity in the Democratic People’s Republic of Korea; and
(c) the item is not:
(i) an export sanctioned good; or
(ii) food or medicine; and
(d) the export of the item:
(i) is not authorised by a permit under regulation 14A; or
(ii) is not in accordance with a condition specified in a permit under regulation 14A.
Penalty: 50 penalty units.
8D Offence for importing items (other than import sanctioned goods etc.)
(1) A person commits an offence if:
(a) the person imports an item from:
(i) the Democratic People’s Republic of Korea; or
(ii) a person or entity in the Democratic People’s Republic of Korea; and
(b) the item is not:
(i) an import sanctioned good; or
(ii) food or medicine; or
(iii) coal, iron or iron ore; and
(c) the import of the item:
(i) is not authorised by a permit under regulation 14C; or
(ii) is not in accordance with a condition specified in a permit under regulation 14C.
Penalty: 50 penalty units.
(2) Section 15.1 of the Criminal Code (extended geographical jurisdiction—category A) applies to an offence against subregulation (1).
(3) A person, whether or not in Australia, and whether or not an Australian citizen, commits an offence if:
(a) the person uses the services of an Australian ship or Australian aircraft to import an item from:
(i) the Democratic People’s Republic of Korea; or
(ii) a person or entity in the Democratic People’s Republic of Korea; and
(b) the item is not:
(i) an import sanctioned good; or
(ii) food or medicine; or
(iii) coal, iron or iron ore; and
(c) the import of the item:
(i) is not authorised by a permit under regulation 14C; or
(ii) is not in accordance with a condition specified in a permit under regulation 14C.
Penalty: 50 penalty units.
(4) A body corporate commits an offence if:
(a) the body corporate has effective control over the actions of another body corporate or entity wherever incorporated or situated; and
(b) the other body corporate or entity imports an item from:
(i) the Democratic People’s Republic of Korea; or
(ii) a person or entity in the Democratic People’s Republic of Korea; and
(c) the item is not:
(i) an import sanctioned good; or
(ii) food or medicine; or
(iii) coal, iron or iron ore; and
(d) the import of the item:
(i) is not authorised by a permit under regulation 14C; or
(ii) is not in accordance with a condition specified in a permit under regulation 14C.
Penalty: 50 penalty units.
8E Offence for procuring coal, iron or iron ore
(1) A person commits an offence if:
(a) the person procures goods from:
(i) the Democratic People’s Republic of Korea; or
(ii) a person or entity in the Democratic People’s Republic of Korea; and
(b) the goods are coal, iron or iron ore; and
(c) the procurement of the goods:
(i) is not authorised by a permit under regulation 14D; or
(ii) is not in accordance with a condition specified in a permit under regulation 14D.
Penalty: 50 penalty units.
(2) Section 15.1 of the Criminal Code (extended geographical jurisdiction—category A) applies to an offence against subregulation (1).
(3) A person, whether or not in Australia, and whether or not an Australian citizen, commits an offence if:
(a) the person uses the services of an Australian ship or Australian aircraft to transport goods, in the course of, or for the purpose of, procuring the goods from:
(i) the Democratic People’s Republic of Korea; or
(ii) a person or entity in the Democratic People’s Republic of Korea; and
(b) the goods are coal, iron or iron ore; and
(c) the procurement of the goods:
(i) is not authorised by a permit under regulation 14D; or
(ii) is not in accordance with a condition specified in a permit under regulation 14D.
Penalty: 50 penalty units.
(4) A body corporate commits an offence if:
(a) the body corporate has effective control over the actions of another body corporate or entity wherever incorporated or situated; and
(b) the other body corporate or entity procures goods from:
(i) the Democratic People’s Republic of Korea; or
(ii) a person or entity in the Democratic People’s Republic of Korea; and
(c) the goods are coal, iron or iron ore; and
(d) the procurement of the goods:
(i) is not authorised by a permit under regulation 14D; or
(ii) is not in accordance with a condition specified in a permit under regulation 14D.
Penalty: 50 penalty units.
Part 2—UN sanction enforcement laws and authorisations
Division 1—UN sanction enforcement laws
9 Prohibitions relating to a sanctioned supply
(2) A person contravenes this regulation if:
(a) the person makes a sanctioned supply; and
(b) the sanctioned supply is not an authorised supply.
(3) Section 15.1 of the Criminal Code applies to an offence under section 27 of the Act that relates to a contravention of subregulation (2).
Note: This has the effect that the offence has extraterritorial operation.
(4) A person, whether or not in Australia, and whether or not an Australian citizen, contravenes this regulation if:
(a) the person uses the services of an Australian ship or an Australian aircraft to transport or export sanctioned goods in the course of, or for the purpose of, making a sanctioned supply; and
(b) the sanctioned supply is not an authorised supply.
(5) A body corporate contravenes this regulation if:
(a) the body corporate has effective control over the actions of another body corporate or entity, wherever incorporated or situated; and
(b) the other body corporate or entity makes a sanctioned supply; and
(c) the sanctioned supply is not an authorised supply.
Note: This regulation is a UN sanction enforcement law as specified by the Minister under the Charter of the United Nations (UN Sanction Enforcement Law) Declaration 2008.
10 Prohibitions relating to import sanctioned goods
(2) A person contravenes this regulation if the person procures import sanctioned goods from the Democratic People’s Republic of Korea or from a person or entity in the Democratic People’s Republic of Korea.
(2A) A person contravenes this regulation if:
(a) the person receives import sanctioned goods from:
(i) the Democratic People’s Republic of Korea; or
(ii) a person or entity in the Democratic People’s Republic of Korea; and
(b) the import sanctioned goods are received for the purposes of repair, servicing, refurbishing, testing, reverse‑engineering or marketing by the person or another person.
(3) Section 15.1 of the Criminal Code applies to an offence under section 27 of the Act that relates to a contravention of subregulation (2) or (2A).
Note: This has the effect that the offence has extraterritorial operation.
(4) A person, whether or not in Australia, and whether or not an Australian citizen, contravenes this regulation if the person uses the services of an Australian ship or an Australian aircraft to transport import sanctioned goods in the course of, or for the purpose of, procuring or receiving the goods from the Democratic People’s Republic of Korea or from a person or entity in the Democratic People’s Republic of Korea.
(5) A body corporate contravenes this regulation if:
(a) the body corporate has effective control over the actions of another body corporate or entity, wherever incorporated or situated; and
(b) the other body corporate or entity procures import sanctioned goods from the Democratic People’s Republic of Korea or a person or entity in the Democratic People’s Republic of Korea.
Note: This regulation is a UN sanction enforcement law as specified by the Minister under the Charter of the United Nations (UN Sanction Enforcement Law) Declaration 2008.
(6) A body corporate contravenes this regulation if:
(a) the body corporate has effective control over the actions of another body corporate or entity, wherever incorporated or situated; and
(b) the other body corporate or entity receives import sanctioned goods from:
(i) the Democratic People’s Republic of Korea; or
(ii) a person or entity in the Democratic People’s Republic of Korea; and
(c) the import sanctioned goods are received for the purposes of repair, servicing, refurbishing, testing, reverse engineering or marketing by the other body corporate or entity or another person.
11 Prohibitions relating to sanctioned services
(2) A person contravenes this regulation if:
(a) the person provides a sanctioned service; and
(b) the sanctioned service is not an authorised service; and
(c) the sanctioned service is not provided in relation to an authorised supply.
(3) A person contravenes this regulation if the person procures a sanctioned service from:
(a) the Democratic People’s Republic of Korea; or
(b) a person in the Democratic People’s Republic of Korea; or
(c) a national of the Democratic People’s Republic of Korea.
(4) Section 15.1 of the Criminal Code applies to an offence under section 27 of the Act that relates to a contravention of subregulation (2) or (3).
Note: This has the effect that the offence has extraterritorial operation.
(5) A body corporate contravenes this regulation if:
(a) the body corporate has effective control over the actions of another body corporate or entity, wherever incorporated or situated; and
(b) the other body corporate or entity provides a sanctioned service or procures a sanctioned service from:
(i) the Democratic People’s Republic of Korea; or
(ii) a person in the Democratic People’s Republic of Korea; or
(iii) a national of the Democratic People’s Republic of Korea; and
(c) the sanctioned service is not an authorised service; and
(d) the sanctioned service is not provided in relation to an authorised supply.
Note: This regulation is a UN sanction enforcement law as specified by the Minister under the Charter of the United Nations (UN Sanction Enforcement Law) Declaration 2008.
11A Prohibition relating to bunkering service
(1) A person contravenes this regulation if the person provides a bunkering service to a DPRK vessel and the provision of the bunkering service is not authorised in accordance with subregulation (3).
(2) A body corporate contravenes this regulation if:
(a) the body corporate has effective control over the actions of another body corporate or entity wherever incorporated or situated; and
(b) the other body corporate or entity provides a bunkering service to a DPRK vessel and the provision of the bunkering service is not authorised in accordance with subregulation (3)
(3) The provision of a bunkering service to a DPRK vessel is authorised:
(a) by a permit under regulation 14F; or
(b) if the bunkering service is provided in a foreign country—by a permit:
(i) granted by the foreign country; and
(ii) properly granted by the foreign country; and
(iii) granted in a way that accords with the foreign country’s obligations under Resolution 1718 and Resolution 1874.
11B Prohibitions relating to engaging in sanctioned commercial activity
Prohibition—persons
(1) A person contravenes this regulation if:
(a) the person engages in a sanctioned commercial activity; and
(b) the sanctioned commercial activity is not an authorised commercial activity.
Note: Paragraph (b)—see subregulation (4).
Extraterritorial operation
(2) Section 15.1 of the Criminal Code applies to an offence under section 27 of the Act that relates to a contravention of this regulation.
Note: This has the effect that the offence has extraterritorial operation.
Prohibition—body corporates
(3) A body corporate contravenes this regulation if:
(a) the body corporate has effective control over the actions of another body corporate or entity, wherever incorporated or situated; and
(b) the other body corporate or entity engages in a sanctioned commercial activity; and
(c) the sanctioned commercial activity is not an authorised commercial activity.
Note: Paragraph (b)—see subregulation (4).
Strict liability
(4) Strict liability applies to the circumstance mentioned in paragraph (1)(b) and (3)(c) that the sanctioned commercial activity is not an authorised commercial activity.
Note 1: For strict liability, see section 6.1 of the Criminal Code.
Note 2: A sanctioned commercial activity is not an authorised commercial activity if it is not carried out in accordance with a permit under regulation 14G.
Note 3: This regulation is a UN sanction enforcement law as specified by the Minister under the Charter of the United Nations (UN Sanction Enforcement Law) Declaration 2008.
11C Prohibitions relating to holding a bank account
(1) A person contravenes this regulation if:
(a) the person holds a bank account; and
(b) the account provider is:
(i) a financial institution domiciled in the Democratic People’s Republic of Korea; or
(ii) a branch or subsidiary, wherever located, of a financial institution domiciled in the Democratic People’s Republic of Korea; or
(iii) a financial institution, wherever domiciled, that is controlled by an entity or person domiciled in the Democratic People’s Republic of Korea; and
(c) the Minister has directed the person, by written notice under regulation 8B, to close the bank account; and
(d) the person fails to comply with the notice.
Note: Paragraph (c)—see subregulation (4).
(2) Section 15.1 of the Criminal Code applies to an offence under section 27 of the Act that relates to a contravention of subregulation (1).
Note: This has the effect that the offence has extraterritorial operation.
(3) A body corporate contravenes this regulation if:
(a) the body corporate has effective control over the actions of another body corporate or entity wherever incorporated or situated; and
(b) the other body corporate or entity holds a bank account; and
(c) the account provider is:
(i) a financial institution domiciled in the Democratic People’s Republic of Korea; or
(ii) a branch or subsidiary, wherever located, of a financial institution domiciled in the Democratic People’s Republic of Korea; or
(iii) a financial institution, wherever domiciled, that is controlled by an entity or person domiciled in the Democratic People’s Republic of Korea; and
(d) the Minister has directed the other body corporate or entity, by written notice under regulation 8B, to close the bank account; and
(e) the other body corporate or entity fails to comply with the notice.
Note: Paragraph (d)—see subregulation (4).
(4) Strict liability applies to paragraphs (1)(c) and (3)(d).
Note 1: For strict liability, see section 6.1 of the Criminal Code.
Note 2: This regulation is a UN sanction enforcement law as specified by the Minister under the Charter of the United Nations (UN Sanction Enforcement Law) Declaration 2008.
11D Prohibition on vessel ownership and registration etc.
(1) A person contravenes this regulation if:
(a) the person does any of the following:
(i) registers a vessel in the Democratic People’s Republic of Korea;
(ii) obtains an authority that entitles a vessel to fly the flag of the Democratic People’s Republic of Korea;
(iii) provides a classification or certification service, or related service, in respect of a vessel for the purpose of it becoming, or maintaining its registration as, a DPRK vessel;
(iv) leases or operates a DPRK vessel;
(v) insures a DPRK vessel; and
(b) that action is not:
(i) authorised by a permit under regulation 14H; or
(ii) an activity covered by subregulation 14H(2).
(2) A person contravenes this regulation if:
(a) the person owns a DPRK vessel; and
(b) ownership of the DPRK vessel is not authorised by a permit under regulation 14H.
(3) Section 15.1 of the Criminal Code applies to an offence under section 27 of the Act that relates to a contravention of subregulation (1) or (2).
Note: This has the effect that the offence has extraterritorial operation.
(4) A body corporate contravenes this regulation if:
(a) the body corporate has effective control over the actions of another body corporate or entity wherever incorporated or situated; and
(b) the other body corporate or entity does any of the following:
(i) registers a vessel in the Democratic People’s Republic of Korea;
(ii) obtains authority that a vessel is entitled to fly the flag of the Democratic People’s Republic of Korea;
(iii) provides a classification or certification service, or related service, in respect of a vessel for the purpose of it becoming, or maintaining its registration as, a DPRK vessel;
(iv) leases or operates a DPRK vessel;
(v) insures a DPRK vessel; and
(c) that action is not:
(i) authorised by a permit under regulation 14H; or
(ii) an activity covered by subregulation 14H(2).
(5) A body corporate contravenes this regulation if:
(a) the body corporate has effective control over the actions of another body corporate or entity wherever incorporated or situated; and
(b) the other body corporate or entity owns a DPRK vessel; and
(c) ownership of the DPRK vessel is not authorised by a permit under regulation 14H.
Note: This regulation is a UN sanction enforcement law as specified by the Minister under the Charter of the United Nations (UN Sanction Enforcement Law) Declaration 2008.
11E Prohibition on services relating to arms and related matériel
(1) A person contravenes this regulation if:
(a) the person procures technical training, advice, services or assistance from:
(i) the Democratic People’s Republic of Korea; or
(ii) a person or entity in the Democratic People’s Republic of Korea; or
(iii) a national of the Democratic People’s Republic of Korea; and
(b) that procurement is related to the provision, manufacture, maintenance or use of arms and related matériel.
(2) Section 15.1 of the Criminal Code applies to an offence under section 27 of the Act that relates to a contravention of subregulation (1).
Note: This has the effect that the offence has extraterritorial operation.
(3) A body corporate contravenes this regulation if:
(a) the body corporate has effective control over the actions of another body corporate or entity wherever incorporated or situated; and
(b) the other body corporate or entity procures technical training, advice, services or assistance from:
(i) the Democratic People’s Republic of Korea; or
(ii) a person or entity in the Democratic People’s Republic of Korea; or
(iii) a national of the Democratic People’s Republic of Korea; and
(c) that procurement is related to the provision, manufacture, maintenance or use of arms and related matériel.
Note: This regulation is a UN sanction enforcement law as specified by the Minister under the Charter of the United Nations (UN Sanction Enforcement Law) Declaration 2008.
11F When Minister must direct vessel not to enter any port or place in Australia
(1) Subject to subregulation (3), the Minister must direct, in writing, a vessel not to enter any port or place in Australia if the Minister has reasonable grounds to believe that:
(a) the vessel is owned or controlled, directly or indirectly, by a designated person or entity within the meaning of paragraph (b) of the definition of that expression; or
(b) the vessel contains cargo and the supply, sale, transfer or export of that cargo is prohibited by Resolution 1718, Resolution 1874, Resolution 2087, Resolution 2094 or Resolution 2270, or any other relevant Resolution of the Security Council.
(2) Before giving a direction, the Minister must have regard to Australia’s obligations at international law.
(3) The Minister must not give a direction relating to a vessel under subregulation (1) if:
(a) the vessel needs to enter a port or place in Australia:
(i) because of an emergency; or
(ii) for inspection; or
(b) both:
(i) the vessel needs to enter a port or place in Australia for humanitarian purposes or for any other purposes consistent with the objectives of Resolution 2270; and
(ii) the vessel’s entry has been approved in advance by the Committee.
11G Prohibition relating to sanctioned vessels
A person contravenes this regulation if:
(a) the person has command or charge of a vessel; and
(b) the person is not the vessel’s pilot; and
(c) a direction relating to the vessel has been given under regulation 11F; and
(d) the vessel enters a port or place in Australia.
Note: This regulation is a UN sanction enforcement law as specified by the Minister under the Charter of the United Nations (UN Sanction Enforcement Law) Declaration 2008.
12 Prohibition relating to dealings with designated person or entity
(2) A person contravenes this regulation if:
(a) the person directly or indirectly makes an asset available to, or for the benefit of:
(i) a designated person or entity; or
(ii) a person or entity acting on behalf of or at the direction of a designated person or entity; or
(iii) an entity that is owned or controlled, including through illicit means, by a person or entity acting on behalf of or at the direction of a designated person or entity; and
(b) the making available of the asset is not:
(i) authorised by a permit under regulation 14; or
(ii) covered by a circumstance mentioned in subregulation 14(8).
(3) Section 15.1 of the Criminal Code applies to an offence under section 27 of the Act that relates to a contravention of subregulation (2).
Note 1: Subregulation (3) has the effect that the offence has extraterritorial application.
Note 2: This regulation is a UN sanction enforcement law as specified by the Minister under the Charter of the United Nations (UN Sanction Enforcement Law) Declaration 2008.
13 Prohibition relating to controlled assets
(2) A person contravenes this regulation if:
(a) the person holds a controlled asset; and
(b) the person:
(i) uses or deal with the asset; or
(ii) allows the asset to be used or dealt with; or
(iii) facilitates the use of the asset or dealing with the asset; and
(c) the use or dealing is not:
(i) authorised by a permit under regulation 14; or
(ii) covered by a circumstance mentioned in subregulation 14(8).
(3) Section 15.1 of the Criminal Code applies to an offence under section 27 of the Act that relates to a contravention of subregulation (2).
Note 1: Subregulation (3) has the effect that the offence has extraterritorial application.
Note 2: This regulation is a UN sanction enforcement law as specified by the Minister under the Charter of the United Nations (UN Sanction Enforcement Law) Declaration 2008.
Division 2—Authorisations
13A Minister may grant permits
(1) The Minister may grant a permit under this Division:
(a) on the Minister’s initiative; or
(b) on application by a person.
Note: Section 13A of the Act applies to a permit granted by the Minister under this Division.
(2) A permit may be granted subject to conditions specified in the permit.
14 Permit for assets and controlled assets
(1) The Minister may grant a person a permit authorising:
(a) the making available of an asset to a person or entity that would otherwise contravene subregulation 12(2); or
(b) a use of, or dealing with, a controlled asset.
Note: Section 13A of the Act applies to a permit granted by the Minister under this subregulation.
(2) If an application is made for a permit, the application must specify whether it is an application for:
(a) a basic expense dealing; or
(b) a legally required dealing; or
(c) an extraordinary expense dealing.
Note: For the meanings of the permissible dealings mentioned in paragraphs (a), (b) and (c), see regulation 5 of the Charter of the United Nations (Dealing with Assets) Regulations 2008.
(5) If the application is for a basic expense dealing, the Minister:
(a) must notify the Committee of the application; and
(b) may grant a permit only if 5 working days have passed since the notice was given, and the Committee has not advised against granting a permit to the applicant.
(6) If the application is for a legally required dealing, the Minister must notify the Committee of the application before granting a permit.
(7) If the application is for an extraordinary expense dealing, the Minister:
(a) must notify the Committee of the application; and
(b) may grant a permit only with the approval of the Committee.
Note: Part 2 of the Charter of the United Nations (Dealing with Assets) Regulations 2008 applies to these Regulations.
(8) The Minister need not grant a permit in respect of an asset and a designated person or entity within the meaning of paragraph (a) of the definition of that expression if:
(a) the asset is required to carry out activities of:
(i) the Democratic People’s Republic of Korea’s missions to the United Nations, or a specialised agency or related organisation of the United Nations; or
(ii) other diplomatic or consular missions of the Democratic People’s Republic of Korea; or
(b) the Committee has determined that the asset is required for the delivery of humanitarian assistance, denuclearisation or any other purpose consistent with the objectives of Resolution 2270.
14A Permit to export items (other than export sanctioned goods etc.)
(1) The Minister may grant a person a permit authorising the export of an item.
Note: Section 13A of the Act applies to a permit granted by the Minister under this regulation.
(2) The Minister may grant a permit if the Minister is satisfied that the item proposed to be exported is not an item that could directly contribute to the development of the operational capabilities of:
(a) the armed forces of the Democratic People’s Republic of Korea; or
(b) the armed forces of a Member State outside the Democratic People’s Republic of Korea.
(3) However, if the Minister is not so satisfied in respect of the item proposed to be exported, the Minister may grant a permit in respect of the item if:
(a) all of the following are satisfied:
(i) the item is being exported for humanitarian purposes or exclusively for the livelihood of the Democratic People’s Republic of Korea;
(ii) the item will not be used by a person or entity in the Democratic People’s Republic of Korea to generate revenue;
(iii) the item does not relate to any activity prohibited by Resolution 1718, Resolution 1874, Resolution 2087, Resolution 2094 or Resolution 2270, or any other relevant Resolution of the Security Council;
(iv) the Committee has been notified of the proposed export in advance;
(v) the Committee has been informed of measures taken to prevent the diversion of the item for such other purposes; or
(b) the Committee has been notified of the proposed export and the Committee has determined that it would not be contrary to the objectives of Resolution 1718, Resolution 1874, Resolution 2087, Resolution 2094 or Resolution 2270, or any other relevant Resolution of the Security Council.
14B Permit to make a sanctioned supply
(1) The Minister may grant a person a permit authorising the making of a sanctioned supply.
Note: Section 13A of the Act applies to a permit granted by the Minister under this regulation.
(2) The Minister may grant a permit only if the sanctioned supply is a supply, sale or transfer of aviation fuel.
(3) The Minister must not grant a permit unless the supply, sale or transfer of the aviation fuel is to address essential humanitarian needs and the Committee has approved its supply.
14C Permit to import items or goods (other than import sanctioned goods etc.)
(1) The Minister may grant a person a permit authorising the import of an item.
Note: Section 13A of the Act applies to a permit granted by the Minister under this regulation.
(2) The Minister may grant a permit if the Minister is satisfied that the item proposed to be imported is not an item that could directly contribute to the development of the operational capabilities of:
(a) the armed forces of the Democratic People’s Republic of Korea; or
(b) the armed forces of a Member State outside the Democratic People’s Republic of Korea.
(3) However, if the Minister is not so satisfied in respect of the item proposed to be imported, the Minister may grant a permit in respect of the item if:
(a) all of the following are satisfied:
(i) the item is being imported for humanitarian purposes or exclusively for the livelihood of the Democratic People’s Republic of Korea;
(ii) the item will not be used by a person or entity in the Democratic People’s Republic of Korea to generate revenue;
(iii) the item does not relate to any activity prohibited by Resolution 1718, Resolution 1874, Resolution 2087, Resolution 2094 or Resolution 2270, or any other relevant Resolution of the Security Council;
(iv) the Committee has been notified of the proposed import in advance;
(v) the Committee has been informed of measures taken to prevent the diversion of the item for such other purposes; or
(b) the Committee has been notified of the proposed import and the Committee has determined that it would not be contrary to the objectives of Resolution 1718, Resolution 1874, Resolution 2087, Resolution 2094 or Resolution 2270, or any other relevant Resolution of the Security Council.
14D Permit to procure coal, iron or iron ore
(1) The Minister may grant a person a permit authorising the procurement of coal, iron or iron ore.
Note: Section 13A of the Act applies to a permit granted by the Minister under this regulation.
(2) The Minister may grant a permit only if:
(a) in relation to coal—all of the following are satisfied:
(i) the Minister is able to confirm, on reasonable grounds, that the coal originated outside the Democratic People’s Republic of Korea and was transported through the Democratic People’s Republic of Korea solely for export from the Port of Rajin (Rason);
(ii) the procurement was notified to the Committee in advance;
(iii) the procurement is unrelated to generating revenue for the nuclear or ballistic missile programs, or other weapons of mass destruction programs, of the Democratic People’s Republic of Korea or for activities prohibited by Resolution 1718, Resolution 1874, Resolution 2087, Resolution 2094, or any other relevant Resolution of the Security Council; or
(b) in relation to coal, iron or iron ore—the procurement is:
(i) exclusively for the livelihood of the Democratic People’s Republic of Korea; and
(ii) unrelated to generating revenue for the nuclear or ballistic missile programs, or other weapons of mass destruction programs, of the Democratic People’s Republic of Korea or for activities prohibited by Resolution 1718, Resolution 1874, Resolution 2087, Resolution 2094, or any other relevant Resolution of the Security Council.
14E Permit to provide crewing services etc.
(1) The Minister may grant a person a permit authorising the provision of a sanctioned service if the service involves:
(a) the leasing or chartering of an Australian ship or Australian aircraft to a person or entity mentioned in paragraph 8(1)(da); or
(b) the crewing of a ship or aircraft, used to provide a service in, to or from the Democratic People’s Republic of Korea, with Australian citizens or permanent residents.
Note: Section 13A of the Act applies to a permit granted by the Minister under this regulation.
(2) The Minister may grant a permit only if:
(a) the Committee has been notified of the proposed service in advance; and
(b) the notification is accompanied by the following information:
(i) information demonstrating that the proposed service is being provided in connection with activities exclusively for the livelihood of the Democratic People’s Republic of Korea and not in connection with activities by a person or entity in the Democratic People’s Republic of Korea to generate revenue;
(ii) information of measures taken to prevent activities to which the proposed service relates from contributing to violations of Resolution 1718, Resolution 1874, Resolution 2087, Resolution 2094 or Resolution 2270, or any other relevant Resolution of the Security Council.
14F Permit to provide a bunkering service
(1) The Minister may grant a person a permit authorising the provision of a bunkering service to a DPRK vessel.
Note: Section 13A of the Act applies to a permit granted by the Minister under this regulation.
(2) The Minister must not grant the permit if the Minister has reasonable grounds for believing that the vessel is carrying export sanctioned goods, unless the provision of the bunkering service:
(a) is for humanitarian purposes; or
(b) is necessary to facilitate the inspection, seizure or disposal of such goods.
(3) If paragraph (2)(b) applies, the Minister must only grant a permit for a specified period to enable the inspection, seizure or disposal of such goods to occur.
14G Permit to provide sanctioned commercial activity
(1) The Minister may grant to a person a permit that authorises the person to engage in a specified sanctioned commercial activity.
Note: Section 13A of the Act applies to a permit granted by the Minister under this regulation.
(2) The Minister must not grant a permit unless the specified sanctioned commercial activity was approved by the Committee in advance.
14H Permit to own and register vessels etc.
(1) The Minister may grant a person a permit authorising any of the following:
(a) ownership of a DPRK vessel;
(b) registration of a vessel in the Democratic People’s Republic of Korea;
(c) the obtaining of an authority that entitles a vessel to fly the flag of the Democratic People’s Republic of Korea;
(d) the provision of a classification or certification service, or related service, in respect of a vessel for the purpose of it becoming, or maintaining its registration as, a DPRK vessel;
(e) the lease or operation of a DPRK vessel;
(f) the insuring of a DPRK vessel.
Note: Section 13A of the Act applies to a permit granted by the Minister under this regulation.
(2) The Minister need not grant a permit in respect of a vessel if the Committee is notified in advance of the following:
(a) the activities in which the vessel will be involved;
(b) the names of individuals and entities involved in such activities;
(c) information demonstrating that:
(i) such activities are exclusively for the livelihood of the Democratic People’s Republic of Korea; and
(ii) the vessel is not being used by a person or entity in the Democratic People’s Republic of Korea to generate revenue; and
(iii) measures are being taken to prevent such activities from contributing to violations of Resolution 1718, Resolution 1874, Resolution 2087, Resolution 2094, or any other relevant Resolution of the Security Council.
Part 3—Miscellaneous
15 Delegations by Minister
(1) The Minister may delegate the Minister’s powers and functions under these Regulations (other than this power of delegation) to:
(a) the Secretary of the Department; or
(b) an SES employee, or acting SES employee, in the Department.
(2) The delegation must be in writing.
(3) The delegate must comply with any directions of the Minister in exercising powers or functions under the delegation.
15A No claim for breach of contract or failure to perform transaction
(1) This regulation applies to:
(a) the government of the Democratic People’s Republic of Korea; and
(b) the following persons and entities:
(i) a person who is resident or national of the Democratic People’s Republic of Korea;
(ii) a person or entity subject to the jurisdiction of the Democratic People’s Republic of Korea;
(iii) a designated person or entity;
(iv) a person or entity able to claim through, or for the benefit of, the government of the Democratic People’s Republic of Korea or a person or entity mentioned in subparagraph (i), (ii) or (iii).
(2) The government of the Democratic People’s Republic of Korea, or the person or entity, must not make a claim or demand, or take any action, against any other person or entity for breach of contract or a failure to perform a transaction if the performance of the contract or transaction was prevented:
(a) under these Regulations; or
(b) because of resolutions relating to the Democratic People’s Republic of Korea, as existing from time to time.
Note: Resolutions relating to the Democratic People’s Republic of Korea could in 2016 be viewed on the United Nations’ website (http://www.un.org).
(3) This regulation has effect despite any other law of the Commonwealth or any law of a State or Territory.
16 Transitional
The Charter of the United Nations (Sanctions – Democratic People’s Republic of Korea) Luxury Goods List 2006 is maintained in existence and is taken to have been made under subregulation 5(2).