20Permit for assets and controlled assets

20 Permit for assets and controlled assets

(1) An application for a permit authorising the making available of an asset to a person or entity that would otherwise contravene regulation 14 must be for: (a) a basic expense dealing; or (b) a legally required dealing; or (c) a contractual dealing.

Note: See paragraph 18(1)(e).

(2) An application for a permit authorising a use of, or a dealing with, a controlled asset must be for: (a) a basic expense dealing; or (b) a legally required dealing; or (c) a contractual dealing.

Note: See paragraph 18(1)(f).

(3) A dealing is a basic expense dealing if: (a) it is constituted by: (i) a payment to a designated person or entity; or (ii) a payment to a person or entity acting on behalf of, or at the direction of, a designated person or entity; or (iii) a payment to an entity owned or controlled by a designated person or entity; or (iv) a use or dealing with a controlled asset; and (b) the dealing is necessary for basic expenses, including any of the following: (i) foodstuffs; (ii) rent or mortgage; (iii) medicines or medical treatment; (iv) taxes; (v) insurance premiums; (vi) public utility charges; (vii) reasonable professional fees; (viii) reimbursement of expenses associated with the provision of legal services; (ix) fees or service charges that are in accordance with a law in force in Australia for the routine holding or maintenance of frozen assets. (4) A dealing is a legally required dealing if: (a) it is constituted by: (i) a payment to a designated person or entity; or (ii) a payment to a person or entity acting on behalf of, or at the direction of, a designated person or entity; or (iii) a payment to an entity owned or controlled by a designated person or entity; or (iv) a use or dealing with a controlled asset; and (b) the dealing is necessary to satisfy a judicial, administrative or arbitral lien or judgement that was made prior to the date on which the person or entity became a designated person or entity; and (c) the dealing is not for the benefit of a designated person or entity. (5) A dealing is a contractual dealing if: (a) it is constituted by: (i) a payment to a designated person or entity; or (ii) a payment to a person or entity acting on behalf of, or at the direction of, a designated person or entity; or (iii) a payment to an entity owned or controlled by a designated person or entity; or (iv) a use or dealing with a controlled asset; and (b) the dealing is a payment: (i) to apply interest or other earnings due on accounts holding controlled assets; or (ii) required under contracts, agreements or obligations made before the date on which those accounts became accounts holding controlled assets.

Note: If the account into which the payment is paid is frozen under Sanctions Regulations, this payment will also be frozen once received.