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Authority to carry on banking business - Canadian Imperial Bank of Commerce

Authority to carry on banking business - Canadian Imperial Bank of Commerce

Administered by Department of the Treasury

Legislation au C2016G00852 In force Gazette

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Authority to carry on banking business

Banking Act 1959

I, Adrian Rees, a delegate of APRA, under subsection 9(3) of the Banking Act 1959 (the Act), GRANT Canadian Imperial Bank of Commerce ABN 33 608 235 847 authority to carry on banking business in Australia.

Under paragraph 9(4)(a) of the Act, I IMPOSE on this Authority the conditions specified in the attached Schedule.

This Authority commences on the date it is signed.

Dated 07 June 2016

[Signed]

Adrian Rees

Acting Executive General Manager Diversified Institutions Division

Interpretation Document ID: 222913

In this Notice

APRA means the Australian Prudential Regulation Authority.

ADI is short for authorised deposit-taking institution and has the meaning given in subsection 5(1) of the Act.

banking business has the meaning given in subsection 5(1) of the Act.

Note 1

Under subsection 9(4) of the Act, APRA may at any time, by notice in writing served on an ADI,

impose conditions or additional conditions or vary or revoke conditions imposed on its Authority to carry on banking business. The conditions must relate to prudential matters.

Note 2

Under subsection 9(6) of the Act, an ADI is guilty of an offence if it does or fails to do an act and

doing or failing to do that act results in a contravention of a condition of the ADI’s Authority, and there is no order in force under section 11 of the Act determining that subsection 9(6) does not apply to the ADI. The penalty is 200 penalty units or, by virtue of subsection 4B(3) of the Crimes Act 1914 in the case of a body corporate, a penalty of up to 1,000 penalty units. By virtue of subsection 9(6A) of the Act, an offence against subsection 9(6) is an indictable offence. Under subsection 9(6B)of the Act, if an ADI commits an offence

against subsection 9(6), the ADI is guilty of an offence against that subsection in respect of the first day on which the offence is committed and each subsequent day (if any) on which the circumstances that gave rise to the ADI committing the offence continue (including the day of conviction for any such offence or any later day).

Note 3

Under subsection 9(9) of the Act, a decision to impose conditions on this Authority is a decision to

which Part VI of the Act applies. If a person whose interests are affected is dissatisfied with that decision, the person may seek reconsideration of the decision by APRA in accordance with section 51B(1) of the Act. The request for reconsideration must be in writing, must state the reasons for the request, and must be given to APRA within 21 days after the decision first comes to the person’s notice or within such further period as APRA allows. If dissatisfied with APRA’s reconsidered decision confirming or varying the first decision, the person may, subject to the Administrative Appeals Act 1975, apply to the Administrative Appeals 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.

Note 4

Act.

Note 5

The circumstances in which APRA may revoke an ADI's Authority are set out in section 9A of the

Under subsection 9(3) of the Act, a copy of this Notice must be provided to the ADI. Under

subsection 9(7) of the Act, APRA must publish a copy of this Notice in the Gazette and may cause notice of the grant of the Authority to be published in any other way it considers appropriate.

Schedule - the conditions imposed on the Authority

1. The ADI, as a foreign ADI carrying on banking business in Australia, shall not accept deposits or other funds for amounts which are less than $250,000 from any source other than from:

(i) incorporated entities;

(ii) persons or unincorporated entities that are not residents of Australia;

(iii) its own employees; or

(iv) persons or unincorporated entities with an initial balance with the foreign ADI of at least $250,000.

In this Schedule, foreign ADI has the meaning given in subsection 5(1) of the Act.

Overview

The Banking Act 1959 was enacted to provide a regulatory framework for the operation of banks and authorised deposit-taking institutions (ADIs) in Australia. It was introduced to address the need for a structured and supervised banking system that ensures financial stability and consumer protection. The Banking Act 1959 is administered by the Australian Prudential Regulation Authority (APRA), an agency responsible for prudential supervision of the financial sector. The policy objective of the Act is to maintain the stability and integrity of Australia's financial system by ensuring that ADIs operate in a safe and sound manner. The Act allows APRA to grant or impose conditions on the authority of ADIs to carry on banking business, ensuring compliance with prudential standards and protecting depositors' interests.

Scope and Application

The Banking Act 1959 applies to entities designated as authorised deposit-taking institutions (ADI) and specifically authorises the Australian Prudential Regulation Authority (APRA) to grant such institutions the authority to conduct banking business within Australia. This particular instrument pertains to the Canadian Imperial Bank of Commerce, granting it the authority to carry out banking operations in Australia under certain conditions. These conditions are specified in the attached schedule and relate to prudential matters, particularly concerning the acceptance of deposits or other funds. The Act applies nationally across Australia, as it is Commonwealth legislation. APRA retains the flexibility to impose, vary, revoke, or add conditions to the authority through written notice at any time, with such conditions strictly related to prudential matters. The authority granted under this Act is subject to the jurisdictional oversight of APRA, which also has the authority to revoke the banking business licence under certain circumstances. The Act does not explicitly state exclusions or thresholds beyond those related to deposit amounts as specified in the attached schedule. However, the application of the Act can be extended or restricted through subordinate instruments, such as the conditions imposed on the authority to carry on banking business.

Key Provisions

The Banking Act 1959 (the Act) authorises the Australian Prudential Regulation Authority (APRA) to grant and regulate the authority of authorised deposit-taking institutions (ADI) to carry on banking business in Australia. In this instance, APRA has granted the Canadian Imperial Bank of Commerce the authority to conduct banking business in Australia under section 9(3) of the Act. APRA has also imposed specific conditions on this authority under section 9(4) of the Act, which are detailed in the attached Schedule. The obligations imposed on Canadian Imperial Bank of Commerce as a foreign ADI under the terms of the grant include a restriction on accepting deposits or other funds from sources other than incorporated entities, non-resident persons or unincorporated entities, the bank's own employees, or those with an initial balance of at least $250,000 with the foreign ADI. This condition is intended to ensure that the ADI maintains a stable and prudent financial base, aligning with prudential standards set by APRA. Should the Canadian Imperial Bank of Commerce breach any condition imposed on its authority, it would be guilty of an offence under section 9(6) of the Act. The penalty for such an offence is up to 200 penalty units for individuals and up to 1,000 penalty units for a body corporate, with each day of the contravention constituting a separate offence. This is an indictable offence, meaning that it can be prosecuted in a higher court. Additionally, any person whose interests are affected by a decision to impose or vary conditions can seek reconsideration by APRA or, if dissatisfied with the outcome, apply to the Administrative Appeals Tribunal for review.

Area of Law: Finance & Banking Law
Instrument: Gazette Notice
Concepts: Offence Provisions; Reporting & Disclosure Obligations; Conditions for Banking Business
Catchwords: Authority to carry on banking business; Conditions imposed on Authority

Interactions

Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.

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