Sanctions 2026

AUSTRALIA Law and Practice Contributed by: Dennis Miralis, Jack Dennis and Phillip Salakas, Nyman Gibson Miralis

• restrictions on engaging in commercial activities or dealing with assets (eg, purchasing shares, grant- ing IP rights or establishing a joint venture); and • designation of specific vessels as sanctioned vessels, including preventing them from entering Australia. Simultaneous Sanctions Sanctions can be passed under both regimes, such as the current (as of June 2026) regimes against North Korea, Iran, Libya, Sudan, South Sudan, Afghanistan and Syria. 1.4.2 Scope of Sanctions Who must comply with the sanctions depends on the specific regulations governing the sanctions regime. Generally speaking, sanctions regulations have extra- territorial effect. Therefore, the sanctions law applies to activities that occur: • in Australia; • on board an Australian aircraft or an Australian ship; or • by Australian citizens living or bodies corporate registered/incorporated by or under Australian law (whether in Australia, overseas or on board a domestic or foreign vessel or aircraft). 1.4.3 Domestic and/or Supranational Measures Both sets of sanctions are imposed at the (domes - tic) federal level in Australia. Although the COTUNA sanctions regimes apply only to sanctions passed by the UNSC, under a dualist system the Australian gov - ernment must still pass domestic legislation for each sanction to give it effect under Australian law.

• provides guidance on Australian sanctions law to regulated entities and to the public, government and relevant parties; • processes applications for and issues, sanctions permits (see 2.3 Licensing ); • works with the public to promote compliance and help prevent breaches; • works in partnership with other government agen- cies to monitor compliance; and • supports corrective and enforcement action by law enforcement agencies in cases of suspected non- compliance (see 2.2 Enforcement ). 2.2 Enforcement 2.2.1 Enforcement Responsibilities The ASO is the primary agency responsible for the enforcement of Australian sanctions law. It does so by working with a network of Australian partners, includ- ing the Department of Defence (DOD), the Australian Transaction Reports and Analysis Centre (AUSTRAC), the Department of Home Affairs, the Australian Border Force (ABF) and the Australian Federal Police (AFP), to promote compliance with Australian sanctions law and respond to possible breaches. Criminal prosecutions for sanctions contraventions are undertaken by the Commonwealth Director of Public Prosecutions (CDPP). There is no civil liability or enforcement for contraven- tions of sanctions. 2.2.2 Breaching Sanctions It is a criminal offence to breach sanctions law or a condition of authorisation under sanctions law (see 2.3 Licensing). The penalty differs depending on whether an individual or a body corporate committed the contravention. For individuals, the penalty can be a maximum term of imprisonment of ten years, a fine or both. The fine is calculated as 2,500 penalty units or – where trans - actions are involved – the greater of three times the value of the transaction or 2,500 penalty units. As of July 2026, 2,500 penalty units equalled AUD910,000. For body corporates, the penalty can be a fine of 10,000 penalty units or – where transactions are

2. Overview of Regulatory Field 2.1 Primary Regulators

DFAT is broadly responsible for administering and enforcing the sanctions. To this end, DFAT established the ASO on 1 January 2022 to sit within DFAT’s Regu - latory Legal Division in the Security, Legal and Con - sular Group. The ASO is the Australian government’s sanctions regulator. As the regulator, the ASO:

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