General policy statement
This Bill establishes a framework for the implementation of autonomous sanctions by New Zealand.
Autonomous sanctions are restrictive measures designed to influence the behaviour of a foreign individual, entity, or regime that is responsible for a situation of international concern. Sanctions can take a variety of forms. The aim of sanctions is to exert political and economic pressure to bring about change, as well as to limit the adverse consequences of the situation (for example, by limiting access to military goods or military training). The Bill will enable the Government to—
designate individuals, entities, assets and services to be targeted by autonomous sanctions:
impose prohibitions or restrictions in relation to designated individuals or entities, including travel bans and prohibitions on remaining in New Zealand, and prohibitions or restrictions on dealing with assets or services linked to those individuals or entities (including asset freezes):
prohibit or restrict other kinds of specified dealings with designated assets and services (for example, trade embargoes):
impose duties in relation to compliance with autonomous sanctions.
The Minister of Foreign Affairs must be satisfied, before recommending the making of regulations to impose an autonomous sanction, that the regulations will assist in maintaining or restoring peace and security in response to—
a threat to peace and security in the Asia–Pacific region; or
a breach of international peace and security in response to which the United Nations (UN) Security Council—
has not acted under Article 41 of the Charter of the UN (whether because of the exercise of a veto by a permanent member of the Security Council or otherwise); or
has acted under Article 41, but the action is insufficient to maintain or restore peace and security.
New Zealand currently has the ability to impose a limited range of sanctions and sanction-type measures in an ad hoc way within existing policy and legal frameworks. These include the refusal of entry visas, diplomatic sanctions (such as the expulsion of diplomats), the suspension of official visits, and the suspension of aid and co-operation.
The measures available to New Zealand under current policy settings are not seen, either here or by our close security partners, as being a sufficient response to situations of real concern in cases where human rights, fundamental freedoms, the rule of law, or democratic principles are being violated. Targeted economic and financial sanctions (known as “smart sanctions”
) are considered to be among the most effective measures available, and are regarded as a critical element of an effective sanctions regime. Such measures allow restrictions to be applied in a way that targets the individuals, entities, assets, and services that are contributing most to a situation of concern, while minimising any deleterious effects on the wider population.
The Bill’s provisions may be used to supplement compulsory sanctions imposed by the UN Security Council acting under Chapter VII of the UN Charter, or may be applied independently of any action by the Security Council.
The Bill establishes a framework for the implementation of autonomous sanctions by regulation in clearly defined circumstances. Regulations will set out the specific prohibitions and restrictions that apply and the particular countries and descriptions of individuals, entities, assets, and services concerned. Individuals, entities, assets, or services that are subject to sanctions are able to be further identified by a designation notice published in the Gazette (as long as the further identification is consistent with the description in the regulations).
The framework is designed to provide the flexibility to tailor sanctions to different situations of concern and to enable the Government to take action in a timely way. It is also designed to provide certain protections to those who will be subject to sanctions and to innocent third parties who may be adversely affected by sanctions decisions. The Bill incorporates provisions to ensure that autonomous sanctions are transparent, able to be reviewed and revoked, temporary rather than permanent, and subject to exemptions where appropriate (for example, to meet humanitarian needs).
While existing processes and mechanisms are in place for the monitoring and enforcement of immigration restrictions and import and export restrictions, the Bill contains a requirement for banks and any other person specified by regulation to report to the Commissioner of Police when they suspect they are in possession of assets or providing services that are subject to a sanction. This will facilitate the monitoring and enforcement of any restrictions imposed under autonomous sanctions regulations. At the same time, the Bill confers immunity from legal proceedings on any person who takes action in good faith in order to comply with the Bill or regulations made under the Bill.
Where designated individuals (other than New Zealand citizens or holders of a residence class visa) are already in New Zealand at the time of designation, the Bill allows the autonomous sanction regulations to prohibit them from remaining in New Zealand, and links to the deportation provisions of the Immigration Act 2009.
United Nations Act 1946
The United Nations Act 1946 provides a parallel regulation-making power, enabling New Zealand to implement sanctions determined by the UN Security Council acting under the UN Charter. The penalties in the United Nations Act 1946 have not been updated since 1990 and are now ill-matched to the seriousness of breaching a sanction. The Bill amends the United Nations Act 1946 to align the penalty for breaching a UN sanction under that Act with the penalty for breaching an autonomous sanction as follows:
in the case of an individual, imprisonment for a maximum of 5 years or a fine not exceeding $100,000, or both; and
in the case of a body corporate, a maximum fine of $1 million.
The Bill also amends the United Nations Act 1946 to replicate the monitoring and enforcement provisions relating to autonomous sanctions such as the duty to report suspicious assets and services. This will ensure that the UN sanctions and autonomous sanctions regimes are well harmonised.
The Bill is an omnibus Bill introduced in accordance with Standing Order 263(a) because the amendments deal with an interrelated topic that can be regarded as implementing a single broad policy.