New thematic sanctions for malicious cyber activity
Following the introduction of the Autonomous Sanctions Amendment (Magnitsky-style and Other Thematic Sanctions) Regulations 2021 (the Magnitsky-style Regulations) on 21 December 2021, Australia has announced the second tranche of financial and travel sanctions under the Magnitsky-style Regulations on 23 January 2024.
As discussed in our previous updates from August 2021, December 2021 and April 2022, the Magnitsky-style Regulations were introduced to expand Australia's autonomous sanctions framework to facilitate targeted sanctions against individuals responsible for, or complicit in, serious corruption, human rights violations and cyber-crime.
On 23 January 2024, the Australian Government introduced the Autonomous Sanctions (Designated Persons and Entities and Declared Persons – Thematic Sanctions Amendment (No 1) Instrument 2024, which is the first use of the Magnitsky-style Regulations for malicious cyber activity.
This first use of Australia's autonomous cyber sanctions framework imposes targeted financial sanctions (including asset freezes and a travel ban) on Aleksandr Ermakov, a Russian individual who the Australian Government has determined was involved in the cyber breach of the Medibank Private network. The introduction of these sanctions follows an 18 month investigation by the Australian Government into the cyber incident, where 9.7 million records were stolen from Medibank Private.
The new cyber sanctions make it a criminal offence, punishable by up to 10 years' imprisonment and heavy fines, to provide assets to Aleksandr Ermakov, or to use or deal with his assets, including through cryptocurrency wallets or ransomware payments.
Introducing the sanctions, the Australian Foreign Minister stated that this highlights the Government's commitment in the 2023‑2030 Australian Cyber Security Strategy to deter and respond to malicious cyber activity, including through the use of sanctions.
This use of the Magnitsky-style Regulations for malicious cyber activity comes almost two years after Australia introduced the ‘first tranche' of sanctions under the Magnitsky-style Regulations in March 2022, when targeted sanctions were imposed on Russian individuals responsible for serious corruption and human rights abuses. See our previous update on those sanctions here.
Further counter-terrorism sanctions
Also on 23 January 2024, the Australian Government introduced further counter-terrorism financing sanctions on 12 persons and three entities linked to Hamas, Hizballah and Palestinian Islamic Jihad. This action is concurrent with further sanctions imposed on Hamas-linked targets by the United States, United Kingdom, and European Union.
These sanctions were implemented by the Charter of the United Nations (Listed Persons and Entities) Amendment (No. 1) Instrument 2024.
Introducing the sanctions, the Australian Foreign Minister stated those sanctioned include Hamas leaders, financial facilitators, and persons who have provided training to terrorist operatives, as well as three entities that have facilitated the transfer of funds to Hamas.
Australia has already imposed sanctions on Hamas, Hizballah and Palestinian Islamic Jihad in their entirety, and a further 17 persons and seven entities with links to these groups.
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