Authority to carry on banking business 2025 – Land Bank of Taiwan
Banking Act 1959
To: Land Bank of Taiwan Co., Ltd. ABN 35 664 630 497 (the body corporate)
SINCE the body corporate has applied for an authority to carry on banking business in Australia,
I, Jane Magill, a delegate of APRA:
- under subsection 9(3) of the Banking Act 1959 (the Act), GRANT the body corporate an authority to carry on banking business in Australia (the section 9 authority); and
- under paragraph 9AA(1)(a) of the Act, IMPOSE conditions on the section 9 authority, as specified in the schedule.
This instrument commences on the day it is made.
Dated: 9 January 2025
Jane Magill
Executive Director
General Insurance and Banking Division
Interpretation
In this instrument:
APRA means the Australian Prudential Regulation Authority.
banking business and section 9 authority have their respective meanings given in subsection 5(1) of the Act.
Notes
APRA is required to publish this instrument in the Gazette, and may also publish this instrument in any other way that APRA considers appropriate.
A decision to impose conditions on a section 9 authority is a decision to which Part VI of the Act applies. You may request APRA reconsider the decision in accordance with subsection 51B(1) of the Act. The request for reconsideration must be made in writing, must state the reasons for the request, and must be given to APRA within 21 days after the day on which you first received notice of this decision, or within such further period as APRA allows. If you are dissatisfied with the outcome of APRA’s reconsideration of the decision, you may, subject to the Administrative Review Tribunal Act 2024, apply to the Administrative Review Tribunal for review of the reconsidered decision. The address where written notice may be given to APRA is Level 12, 1 Martin Place, Sydney NSW 2000.
Schedule – conditions on the section 9 authority
The body corporate, as a foreign ADI carrying on banking business in Australia, must not accept deposits or other funds for amounts which are less than $250,000 from any source other than from:
- incorporated entities;
- persons or unincorporated entities that are not residents of Australia;
- its own employees; or
- persons or non-incorporated entities with an initial balance with the foreign ADI of at least $250,000.
Interpretation
In this schedule:
foreign ADI has the meaning given in subsection 5(1) of the Act.
Overview
The Authority to carry on banking business 2025 – Land Bank of Taiwan, issued under the Banking Act 1959, addresses the need for foreign banks to comply with Australian regulatory standards when operating in the country. Enacted by the Australian Prudential Regulation Authority (APRA), this legislation grants the Land Bank of Taiwan Co., Ltd. an authority to carry on banking business in Australia, subject to specific conditions aimed at ensuring financial stability and consumer protection. The primary objective is to regulate the acceptance of deposits and funds to mitigate potential risks associated with foreign banking entities. This legislative instrument provides a structured framework for foreign banks to operate within Australia while adhering to local financial regulations.
Scope and Application
The Authority to carry on banking business 2025, issued under the Banking Act 1959, pertains specifically to Land Bank of Taiwan Co., Ltd., granting it the authority to conduct banking business within Australia. This legislation applies to the specified entity, which is a foreign authorised deposit-taking institution (ADI), and regulates the conditions under which it can operate. The geographic and jurisdictional reach of this Act is national, operating under the oversight of the Commonwealth through the Australian Prudential Regulation Authority (APRA). The Act imposes specific conditions on the section 9 authority, such as restrictions on the acceptance of deposits from certain sources, ensuring compliance with the financial regulations set forth by APRA. The Act does not explicitly state exclusions or exemptions but operates through subordinate instruments that may further define the scope and application of the conditions imposed on the authority granted to the foreign ADI.
Key Provisions
The main operative sections of the Gazette C2025G00021 grant the Land Bank of Taiwan Co., Ltd. an authority to carry on banking business in Australia, under section 9(3) of the Banking Act 1959. This authority allows the body corporate to engage in banking activities within Australia. Additionally, under paragraph 9AA(1)(a) of the Act, specific conditions are imposed on this authority, as detailed in the attached schedule. The Gazette is effective from the date it is made.
The obligations imposed by the Act on Land Bank of Taiwan Co., Ltd. include the requirement to adhere to the conditions outlined in the schedule. As a foreign authorised deposit-taking institution (ADI), the bank must not accept deposits or other funds for amounts less than $250,000 from sources other than incorporated entities, non-residents of Australia, its own employees, or persons or unincorporated entities with an initial balance of at least $250,000. These conditions are aimed at regulating the flow of funds into the bank and ensuring compliance with Australian financial regulations.
The Gazette also stipulates that any breach of the conditions imposed on the section 9 authority may result in civil or criminal consequences. While the specific penalties for breaches are not detailed in the Gazette, the Banking Act 1959 generally provides for substantial penalties, including fines and imprisonment, for non-compliance with banking regulations. Land Bank of Taiwan Co., Ltd. is therefore required to strictly adhere to the conditions to avoid these potential legal repercussions.