Australian sanctions: A look back at 2024 and prospects for 2025

Developments in 2025

As we move further into 2025, we expect ongoing developments to the Australian sanctions landscape, including as follows:

• We expect to see further sanctions measures to be implemented in response to the situations in Ukraine, Iran and the West Bank. Consistent with this, in February 2025, the Minister for Foreign Affairs announced a further suite of targeted financial sanctions and travel bans on designated persons and entities associated with Russia’s illegal administrations in eastern Ukraine and Crimea, including ministers, judges, prosecutors and individuals responsible for violence and forced deportation of Ukrainian children. Many of these persons and entities were already the subject of US, UK and EU sanctions. These sanctions measures also targeted persons and entities involved in deepening military cooperation between Russia and North Korea. Additionally, the Government further tightened travel bans on Russia by prohibiting the supply of commercial drones and components, including the provision of related services.
   
• We also expect to see continued use of Magnitsky-style sanctions in relation to human rights abuses, and further targeted sanctions aimed at addressing malicious cyber activity. Consistent with this, in February 2025, the Minister for Foreign Affairs announced further cyber sanctions in response to the Medibank Private cyberattack.
   
• We anticipate that the Australian Government will continue to align some of these sanctions measures with policy decisions of other key jurisdictions, such as the US, UK and EU – however, it remains to be seen whether the change of government in the US will precipitate any substantive changes to the US sanctions framework.
   
• As part of the ASO review of Australia’s sanctions laws, a report was released in October 2024 summarising the key themes arising from submissions received from a range of Australian stakeholders including across industry, academia, civil society and government. The key themes highlight potential reform areas, including streamlining the legal framework, clarifying critical terms, enhancing the permit process, introducing humanitarian exceptions, and considering amendments to sanctions offences and penalties. As of January 2025, the Department of Foreign Affairs and Trade (DFAT) indicated that recommendations for legislative change and other reforms were put to Government and remain under consideration. We therefore expect further developments from this review across 2025. See HSF’s detailed update on the ASO’s report here.
   
• Additionally, on 3 July 2024, the Senate referred an inquiry into Australia's sanctions regime to the Foreign Affairs, Defence and Trade Reference Committee (Senate Committee) for inquiry and report by 11 February 2025. The scope of the inquiry included (among other things) an assessment of the consistency in application of Australia’s sanctions regime and in coordination with key partners, consideration of the evidence on how sanctions regimes are targeting and addressing behaviour of designated individuals and entities, consideration of methods to assess the effectiveness of sanctions decisions, and consideration of the role of sanctions in an increasingly complex global context. Following a public hearing in November 2024, the Senate Committee published its report on 11 February 2025, making eight recommendations, which were described as being aimed at addressing the Senate Committee’s three key concerns arising from the public submissions and hearing: inconsistencies in sanctions application, underutilisation of thematic sanctions, and delays in applying sanctions already applied by partner states. See HSF’s detailed update on the Senate Committee’s report here.
   
• One month after the release of the above Senate Committee report, on 7 March 2025, the Human Rights Subcommittee of the Joint Standing Committee on Foreign Affairs, Defence and Trade (Joint Committee) published its report into the operation of amendments made by the Autonomous Sanctions Amendment (Magnitsky-style and Other Thematic Sanctions) Act 2021 (the Amending Act). Under section 4 of the Amending Act, the Joint Committee was required to commence a review of the operation of the amendments made by the Act as soon as possible after 8 December 2024. On 8 December 2024, the Joint Committee announced its inquiry, and subsequently received seven submissions from a range of stakeholders and held a public hearing in January 2025. The Joint Committee’s report built upon a number of observations of the Senate Committee in its February 2025 report, including acknowledging there are areas in which Australia’s thematic sanctions framework can be strengthened and reforms are therefore warranted, particularly to address concerns regarding consistency and transparency. The Joint Committee made a further five recommendations aimed at strengthening Australia’s application of thematic sanctions. See HSF’s detailed update on the Joint Committee’s report here.
   
• Notably, the ASO also released a package of materials to assist Australians and Australian businesses to comply with certain aspects of Australian sanctions laws. The ASO’s materials – which include a Sanctions Compliance Toolkit, Sanctions Risk Assessment Tool, and new and updated guidance and advisory notes – aim to provide practical guidance and actionable steps that can be taken to operationalise sanctions compliance. Steps identified in the guidance may also assist entities to understand what is expected by the ASO in relation to their approach to sanctions due diligence. It will be important for regulated entities to carefully consider this guidance against their current approach to sanctions compliance and due diligence, noting that the ASO materials emphasise that compliance programs must always be tailored to the specific risks and activities of the entity. Relevantly, two of the guidance notes issued by the ASO relate to dealing with controlled assets, and financial transactions involving designated persons and entities. These are areas where we often see requests for assistance from corporate clients regarding the scope and application of these sanctions measures. For further information on these materials, see HSF’s detailed update here.
   
• Finally, general permits issued by the ASO in December 2022 and February 2023, authorising provision of financial assistance and financial services in respect of Russian oil and refined petroleum purchased at or below a price cap, and the transport by ship of Russian oil and refined petroleum purchased at or below a price cap, were due to expire in December 2024 and February 2025. All entities that previously advised of their reliance on these permits were contacted by the ASO to arrange for replacement permits to be issued and the two general permits were revoked in December 2024. Two other general permits which give effect to the remaining aspects of the oil and petroleum price caps were due to expire in February 2025. Similarly, the ASO indicated that it contacted all entities that previously advised of their reliance on these two permits to discuss their requirements for a permit beyond February 2025.

Following from the multiple Parliamentary and Government reviews noted above, it remains to be seen what legislative amendments to Australia’s sanctions framework, if any, will be proposed throughout 2025.

Compliance and enforcement activity

At the public hearing before the Senate Committee on 15 November 2024 (see above), submissions made by the Australian Federal Police (AFP) and ASO to the Senate Committee gave some insights into the investigations and potential enforcement activity on foot regarding sanctions compliance. In particular:

• The AFP indicated they have four active sanctions investigations on foot, referred from the ASO.
   
• The ASO indicated that DFAT has over 21 sanctions compliance matters presently under review, some of which may result in referrals to the AFP.
   
• The ASO has also had increased funding under the most recent budget, which may enable greater resources for monitoring and compliance.

No further information on enforcement activity was outlined in the submissions provided to, or at the public hearing before, the Joint Committee.

We will closely monitor whether any enforcement actions are commenced throughout 2025 arising from these investigations.