Authority to carry on banking business
Banking Act 1959
I, Brandon Kong Leong Khoo, a delegate of APRA, under subsection 9(3) of the Banking Act
1959 (the Act), GRANT Woori Bank ARBN 150 148 299 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: 10 December 2012
[Signed]
Brandon Kong Leong Khoo
Executive General Manager
Specialised Institutions Division
Interpretation Document ID: 206194
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 400 George St, 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, enacted by the Commonwealth Parliament, establishes the legal framework for the regulation of banking institutions in Australia. This Act was introduced to address the need for a structured and prudential approach to the oversight of banks and other authorised deposit-taking institutions (ADIs). The Australian Prudential Regulation Authority (APRA) is empowered under this Act to supervise and regulate ADIs to ensure the safety and soundness of the financial system. The policy objective of the Act is to maintain the stability and integrity of the Australian financial system by regulating ADIs through prudential standards, and by providing mechanisms for the enforcement of compliance and the imposition of penalties for breaches. The Act grants APRA the authority to grant, impose conditions on, vary, or revoke the authority for ADIs to carry on banking business in Australia.
Scope and Application
The Banking Act 1959 governs the authorisation and operation of banking businesses within Australia, with specific focus on Authorised Deposit-taking Institutions (ADI). Under this Act, the Australian Prudential Regulation Authority (APRA) has the power to grant ADIs, such as Woori Bank, the authority to carry out banking business in Australia, subject to certain conditions. The authority granted to Woori Bank is outlined in a formal notice issued by a delegate of APRA, Brandon Kong Leong Khoo, on 10 December 2012. The authority is subject to specific conditions detailed in the attached schedule, which include restrictions on the types of deposits the bank can accept from certain sources to manage prudential risks. APRA retains the flexibility to impose, vary, or revoke these conditions at any time, provided they relate to prudential matters. Failure to comply with these conditions can result in significant penalties, including fines of up to 1,000 penalty units for body corporates. Additionally, the Act provides mechanisms for reconsideration and appeal of APRA's decisions regarding the conditions imposed on an ADI's authority.
Key Provisions
The main sections of the legislation detail the authority granted to Woori Bank to conduct banking business in Australia, with specific conditions imposed on this authority. Under section 9(3) of the Banking Act 1959, Brandon Kong Leong Khoo, as a delegate of APRA, grants Woori Bank the authority to carry on banking business in Australia. This authority is subject to the conditions specified in the attached Schedule, which commence on the date of signing.
The obligations and requirements imposed by the Act primarily relate to the prudential conditions under which Woori Bank, as a foreign authorised deposit-taking institution (ADI), can operate. For instance, Woori Bank must comply with a condition that restricts it from accepting deposits or other funds for amounts less than $250,000 unless they come from incorporated entities, non-resident persons or unincorporated entities, its own employees, or entities with an initial balance of at least $250,000. This condition is specified in the Schedule and aims to ensure prudent financial management by Woori Bank.
The Act also sets out the consequences for breaches of the conditions imposed on the authority. Under section 9(6) of the Banking Act 1959, Woori Bank is guilty of an offence if it commits an act that results in a contravention of any condition imposed on its authority, and there is no order in force under section 11 of the Act exempting the contravention. The penalties for such an offence are significant; Woori Bank could face a fine of up to 200 penalty units, or, if Woori Bank is a body corporate, up to 1,000 penalty units. This offence is classified as an indictable offence, meaning it can be prosecuted in a higher court. Furthermore, the Act specifies that if the contravention continues, Woori Bank commits a separate offence for each day the contravention persists, including the day of conviction.
In cases where a person is dissatisfied with a decision by APRA to impose conditions on the authority, they may seek reconsideration of that decision under section 51B(1) of the Banking Act 1959. This request for reconsideration must be in writing, state the reasons for the request, and be submitted to APRA within 21 days of the decision coming to the person's notice. If the reconsideration does not resolve the issue, the person may apply to the Administrative Appeals Tribunal for review of the decision, subject to the provisions of the Administrative Appeals Act 1975.