Authority to carry on banking business
Banking Act 1959
I, Louis Serret, a delegate of APRA, under subsection 9(3) of the Banking Act 1959 (the Act), GRANT Taishin International Bank Co., Ltd. ABN 30 165 085 638 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: 23 May 2017
[Signed]
Louis Serret
Acting Executive General Manager Specialised Institutions Division
Interpretation Document ID: 226721
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 GPO Box 9836, Brisbane, QLD 4001.
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 regulate the banking industry in Australia, establishing a framework for the supervision and oversight of authorised deposit-taking institutions (ADIs). The Act aims to ensure the safety and soundness of the banking sector, protecting the interests of depositors and maintaining public confidence in the financial system. The Australian Prudential Regulation Authority (APRA) is the principal regulator under this Act, with the power to grant, impose conditions on, vary, or revoke the authority of ADIs to carry on banking business. This specific legislation, issued by APRA, grants Taishin International Bank Co., Ltd. the authority to conduct banking operations in Australia, subject to the conditions outlined in the attached Schedule. These conditions are intended to address prudential matters and are enforceable by law, with penalties for non-compliance. The enactment of this legislation by APRA under the Banking Act 1959 ensures that Taishin International Bank Co., Ltd. operates within the regulatory framework designed to safeguard the stability and integrity of the Australian banking sector.
Scope and Application
The Banking Act 1959 provides the framework for the regulation of banking activities in Australia, and specifically under subsection 9(3) of the Act, it grants the Australian Prudential Regulation Authority (APRA) the power to authorise authorised deposit-taking institutions (ADI) to carry on banking business. In this instance, APRA has granted Taishin International Bank Co., Ltd. the authority to operate as a bank in Australia, subject to the conditions specified in the attached Schedule. These conditions are imposed to ensure that the ADI adheres to prudential standards, which are critical for maintaining the stability and integrity of the financial system. The authority granted is applicable to Taishin International Bank Co., Ltd., a foreign ADI with the Australian Business Number (ABN) 30 165 085 638, and the authority is effective from the date of signing. The authority is limited by the conditions that must be strictly adhered to, failure to comply with which constitutes an offence under the Act, with potential penalties of up to 200 penalty units for individuals and 1,000 penalty units for bodies corporate. Dissatisfied parties have the right to seek reconsideration or appeal within stipulated timelines as per the Administrative Appeals Act 1975.
Key Provisions
The Banking Act 1959 provides the framework for regulating banking activities in Australia. Section 9(3) of the Act allows a delegate of APRA to grant an authorised deposit-taking institution (ADI) the authority to carry on banking business in Australia. In this case, Louis Serret, as a delegate of APRA, has granted Taishin International Bank Co., Ltd. the authority to conduct banking business in Australia, subject to the conditions specified in the attached schedule (Section 9(4)(a)). This authority comes into effect from the date of signing, which is 23 May 2017.
Under this legislation, Taishin International Bank Co., Ltd. is required to adhere to specific conditions imposed by APRA. These conditions are designed to ensure the prudential aspects of the bank's operations. For instance, as a foreign ADI, Taishin International Bank Co., Ltd. is prohibited from accepting deposits or other funds for amounts less than $250,000 from sources other than incorporated entities, non-resident individuals or unincorporated entities, its own employees, or persons or unincorporated entities with an initial balance of at least $250,000 (Schedule, condition 1). These restrictions are intended to maintain financial stability and protect the interests of depositors.
The Act imposes various obligations on ADIs to ensure compliance with the conditions set forth in the Authority. Taishin International Bank Co., Ltd. must strictly follow the conditions outlined in the schedule, which include limitations on the types of deposits they can accept. Failure to comply with these conditions can result in significant legal consequences. Under subsection 9(6) of the Act, an ADI can be found guilty of an offence if it contravenes any condition of its Authority. The penalty for such an offence can be up to 200 penalty units, or up to 1,000 penalty units in the case of a body corporate, as per subsection 4B(3) of the Crimes Act 1914. Furthermore, the offence is considered an indictable offence, and the ADI can be liable for each day the contravention continues, including the day of conviction or any subsequent days.
Additionally, the Act provides mechanisms for reconsideration and review of APRA's decisions. If a party is dissatisfied with a decision to impose conditions on the Authority, they can request reconsideration from APRA within 21 days of the decision being notified. If the reconsideration does not resolve the issue, the party can apply to the Administrative Appeals Tribunal for further review. This process ensures that there are avenues for addressing grievances related to the conditions imposed on the Authority to carry on banking business in Australia.