Military equipment transactions: Our due diligence process
Our corporate responsibility
We support the Australian Government’s objective of fostering a defence exports industry in Australia by administering our Defence Export Facility. These military equipment transactions are considered under a Board-approved policy that covers the export of military equipment and dual-use goods (that is, exports which could be adapted for military use).
The Defence Export Controls agency (DEC) is responsible to the Minister for Defence and regulates the exportation of defence and strategic goods and technologies.
These exports include:
- military items designed or adapted for military purposes
- commercial items and technologies that may be used or adapted for use in a military program (dual-use goods).
Our due diligence approach relies heavily on the approval processes and capabilities of DEC in relation to these exports. More information about export controls can be found here.
Our policy requires that our support for exports of military equipment from Australia must have a valid export permit from DEC. Australia’s Export Control Policy is based on five key criteria to assess the exportability of defence and strategic goods:
- international obligations
- human rights
- regional security
- national security
- foreign policy considerations.
We require that transactions involving the export of offensive weapons (and all components of such devices) are subject to Board approval, regardless of the transaction value.
Export of military equipment and dual-use goods are not considered under our Policy for environmental and social review of transactions. This is consistent with the OECD Recommendation of the Council on Common Approaches for Officially Supported Export Credits and Environmental and Social Due Diligence (the OECD Common Approaches).
The OECD Common Approaches specifically exclude exports of military equipment.
Transactions involving military equipment are identified in our transaction register.