PROPOSED changes to the way Australia blocks trade of certain goods to undemocratic nations, such as Burma and Zimbabwe, have been criticised for being too vaguely written and potentially financially risky.
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The Sunday Canberra Times understands the Department of Foreign Affairs and Trade has referred 10 cases to the Australian Federal Police in the past two years which relate to alleged breaches of sanctions by Australian businesses or individuals. These related to alleged contraventions of UN Security Council sanctions, as well as restrictions put in place by Australia - so-called autonomous sanctions.
Australia's autonomous sanctions target Burma, Fiji, Syria and Zimbabwe and supplement United Nations Security Council sanctions against North Korea, Iran and Libya.
In a submission to DFAT, the Financial Services Council argued proposed changes to Australia's individual sanctioning process may result in financial losses to customers whose access to investment was restricted.
''We acknowledge the overriding policy rationale of the Sanctions Act is to provide a regime for the Government to implement sanctions targeting countries or persons of concern,'' the submission said.
''[However] this policy rationale should not expose financial institutions to claims and/or legal suits for complying with sanctions law.''
The council, which represents superannuation funds and life insurers, also wanted to see changes brought in over a longer period of time.
The Queensland Law Society argued against modelling Australia's sanctions laws on the Charter of United Nations 1945.
''[It] obliges Australia to implement UN Security Council sanctions,'' the submission said.
''It is an inappropriate model for an Act in respect of autonomous sanctions.''
There was also a Queensland Law Society concern the proposed laws could target indirect sales of guns and ammunition.
''It potentially extends to intermediaries who are not parties to a transaction.''