Australia’s export controls are contained in legislation that includes the Customs Act 1901, the Defence Trade Controls Act 2012 (DTCA), Weapons of Mass Destruction (Prevention of Proliferation) Act 1995 and Military End-Use provisions (section 112BA) and by sanctions. The Department of Foreign Affairs and Trade (DFAT) administers the implementation of sanctions, which restrict or prohibit the export of specified goods to particular countries or individuals or entities.

This article provides an outline of Australia’s sanctions regime.

Department of Foreign Affairs and Trade (DFAT)

DFAT, through the Australian Sanctions Office (ASO), manages the administration and enforcement of Australia’s sanctions regime. This regime restricts or prohibits the export of specified goods and services, imposes travel bans, and applies targeted financial sanctions against designated countries, individuals, and entities.

Sanctions can apply whether goods or services are exported from within Australia or from a foreign location by an Australian citizen or company. The two main types of sanctions imposed are:

United Nations Security Council (UNSC) sanctions – Obligatory for all UN member states, including Australia.
Autonomous sanctions – Unilaterally imposed by the Australian government as part of its foreign policy objectives.

In some cases, an export may require dual permits—a DFAT sanctions permit and a Defence Export Control (DEC) permit—particularly when the item is also listed under the Defence and Strategic Goods List (DSGL).

Compliance

Violating Australian sanctions laws is a serious criminal offence. Individuals and entities found in breach may face up to 10 years’ imprisonment and significant financial penalties. The ASO maintains the Consolidated List of designated persons and entities subject to targeted sanctions. This list includes identifying details such as names, aliases, date of birth, citizenship, and address.

Entities must not:

Directly or indirectly make an asset available to or for the benefit of a listed person or entity.
Use, deal with, or dispose of an asset owned or controlled by a listed person or entity (commonly known as an asset freeze).

“Asset” in this context includes tangible or intangible property, whether movable or immovable, and acquired by any means.

If goods or services to be exported are also listed in the DSGL, additional approval from the Department of Defence is mandatory.

Financial Oversight and AML/CTF Laws

Australia has a comprehensive legal and operational framework for counter-proliferation financing, anti-money laundering (AML), and counter-terrorism financing (CTF). This is governed under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 and its associated rules.

These obligations apply to reporting entities such as banks, which are overseen by AUSTRAC—Australia’s financial intelligence agency. These institutions must risk assess transactions involving designated services and often request detailed information for international transactions to ensure compliance.

Licensed customs brokers and freight forwarders generally fall outside the reporting scope unless they hold a financial services license or deal in financial instruments as agents. Financial institutions such as banks that have banking relationships with foreign entities must however conduct a stringent due diligence assessment of the services provided to each party in a transaction, as opposed to only conducting a customer due diligence assessment of the foreign entity itself. This is why further details may sometimes be sought by your bank as they relate to foreign transactions.

U.S. Dollar (USD) Payments

Australian entities making USD payments through U.S. financial institutions may be subject to U.S. sanctions law, which gives U.S. authorities jurisdiction over any dollar-denominated transaction cleared through their banking system. As such, Australian banks may flag, question, or restrict transactions involving certain parties, especially when these involve sanctioned jurisdictions or goods.

AUSTRAC also monitors specific AUD transactions, applying similar due diligence requirements.

Sanctions on Russia and Belarus

In response to Russia’s invasion of Ukraine, supported by Belarus, Australia has imposed sanctions and trade restrictions on both countries. These include:

A 35% additional customs duty on imports that originate in Russia or Belarus.
Ineligibility for tariff concessions or GST exemptions normally available under Schedule 4 bylaws or Tariff Concession Orders (TCOs).
Export and import restrictions on goods listed under the Autonomous Sanctions (Export Sanctioned Goods – Russia) Designation 2022, including arms, petroleum products, coal, and related equipment.
Prohibition on commercial activities involving specified Russian financial institutions and companies under the 2015 Sanctions Specification.

Designated goods, such as gold and energy products from Russia or the occupied Ukrainian regions, are banned. Also prohibited are transactions involving financial instruments issued by publicly owned or controlled Russian entities.

A sanctions permit may be granted by the Minister for Foreign Affairs only if deemed to be in the national interest.

Due Diligence Requirements

Entities must conduct due diligence before engaging in any international transaction that may involve a sanctioned person, entity, or country. This includes understanding:

The identity and structure of the customer, or final recipient.
The origin and end-use of goods or services.
Whether any party to the transaction is listed on DFAT’s Consolidated List.

Minimum Due Diligence Expectations by DFAT:

Conduct checks on all individuals and entities involved in the transaction.
Investigate the company’s ownership structure and any ties to designated persons.
Identify the end user and end use of goods or services.
Screen all involved parties against the Consolidated List.
Keep comprehensive records of all due diligence activities.

Where uncertainty exists—especially if a transaction may involve a listed person or entity—it is strongly recommended to seek legal advice before proceeding. If an entity finds itself in possession of an asset owned or controlled by a listed party, it must freeze the asset and notify the Australian Federal Police (AFP) immediately.

Summary

Australia's export controls and sanctions regime is broad, intricate, and carries serious legal obligations. With overlapping responsibilities between DFAT, Department of Defence, AUSTRAC, and AFP, any person or entity engaged in cross-border trade must ensure full compliance. This includes securing the proper permits, understanding the nature of their transactions, identifying all counterparties, and conducting appropriate due diligence. Australian businesses must therefore remain vigilant and current with all regulatory obligations to avoid legal exposure and reputational risk.Questions to consider before export

The great majority of activities are legitimate, but DEC suggests the following is considered for any goods that may be caught up under this regime before export:

Pre-planning the export:

Are the goods controlled for export – either military or dual-use?
Could the goods be used in a WMD program?
Are the goods for a military end use?

Where is it going?

Is the destination of the export a country of concern?
Is the destination country a strategic ally or a member of the multilateral export control regimes?
Is the destination of the export a country subject to UN sanctions or Australian autonomous sanctions?
Does the destination country have its own export control laws and regulations?

Why is the customer ordering it?

What is the end use?
Do we know that the customer will use the item for the purpose intended?
Do we know if the item being exported will be used in a military application or for chemical, nuclear or biological weapons proliferation?
Is there a risk that the customer will transfer the item to another person?

Who will be receiving the export?

Is this a customer that we have dealt with on many occasions in the past?
Is the customer involved in any military or chemical or biological weapons proliferation activities?
Is there anything about the transaction that raises a red flag?

A version of this article was published by Export Controls Australia Group (ECAG) in November 2025.