28th August 2019
Australia and Sanctions: DFAT Sanctions List
Avoid a AU$450,000 Fine: Understand the
The Australian Sanctions List plays a significant role in the fight against international money laundering and the financing of terrorism due to its influential economic and political powers.
To curb money laundering and financing of terrorism, the Australian government have created an economic sanctions list, which are implemented and enforced by the Department of Foreign Affairs and Trade (DFAT).
What is the DFAT Sanctions List?
The Australian sanctions are organized into two categories:
- United Nations sanctions: As a member of the United Nations, Australia is bound to implement the sanctions issued by the UN Security Council.
- Autonomous sanctions: The Australian government maintains its own autonomous sanctions regime derived from its foreign policy and implemented under the authority of the Autonomous Sanctions Act 2011.
The sanctions on the DFAT list include asset freezing measures, and restrictions on market access, business relationships, imports and exports, and travel to or through Australia. Breaches are punishable by a fine of AU$450,000 or three times the value of the transactions (if that is greater), and prison sentences of up to 10 years for individuals found guilty of wrongdoing.
The sanctions included in the DFAT list are applicable to all financial institutions operating in Australia and to all Australian nationals at home or abroad. Practically, this means that Australian firms must integrate DFAT sanctions screening into their internal risk-based AML/CFT compliance programs to accurately verify their customers’ sanctions status.
In some instances, firms may apply to DFAT for a license that permits business activity with individuals or entities included in the DFAT sanctions list.