Authority to carry on banking business

Administered by Department of the Treasury

Legislation au C2017G01245 In force Gazette

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Banking Act 1959

I, Louis Serret, a delegate of APRA, under subsection 9(3) of the Banking Act 1959 (the Act), GRANT Bank of Taiwan ABN 71 608 940 718 (the ADI), 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: 16 November 2017

[Signed]

Louis Serret

Acting Exective General Manager Specialised Institutions Division

Interpretation Document ID: 228456

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 maximum 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 fine 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.

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.

2. The ADI, as a foreign ADI carrying on business in Australia, shall not be involved in any retail lending of any amount other than to:

(i) incorporated entities; or

(iii) its own employees.

Overview

The Banking Act 1959 was enacted to regulate and oversee the operations of authorised deposit-taking institutions (ADIs) in Australia, ensuring their financial stability and the protection of depositors' interests. One of its key provisions allows the Australian Prudential Regulation Authority (APRA) to grant or impose conditions on an ADI's authority to carry on banking business within Australia. In November 2017, Louis Serret, acting as a delegate of APRA, granted Bank of Taiwan the authority to operate in Australia under certain conditions, as outlined in the attached schedule. These conditions were aimed at maintaining prudential standards and preventing risks associated with accepting deposits from certain sources or engaging in specific types of lending activities. The policy objective is to ensure that foreign ADIs operating in Australia adhere to the same stringent regulatory standards as domestic institutions, thereby protecting the financial system and maintaining consumer confidence.

Scope and Application

The Banking Act 1959, under which the Australian Prudential Regulation Authority (APRA) grants an authorised deposit-taking institution (ADI) the authority to carry on banking business in Australia, applies to foreign ADIs operating within the Commonwealth of Australia. This particular legislation grants Bank of Taiwan the authority to conduct banking activities in Australia, subject to specific conditions. These conditions are designed to address prudential matters and are detailed in the attached Schedule. The conditions imposed on this Authority include restrictions on accepting deposits or other funds under $250,000 from sources other than incorporated entities, non-resident persons or unincorporated entities, the ADI's own employees, or those with an initial balance of at least $250,000. Additionally, the ADI is restricted from engaging in retail lending to any other entities apart from incorporated entities and its own employees. APRA retains the authority to impose, vary, revoke, or add conditions at any time, and such decisions can be subject to reconsideration and appeal processes as outlined in the Act.

Key Provisions

The key provisions of the legislation grant the Bank of Taiwan the authority to carry on banking business in Australia under section 9(3) of the Banking Act 1959. This grant of authority is subject to specific conditions imposed by the Australian Prudential Regulation Authority (APRA) under section 9(4) of the Act. These conditions are detailed in the attached Schedule, which outlines restrictions on the types of deposits and lending activities the bank may engage in. The obligations imposed by the Act on the Bank of Taiwan primarily pertain to compliance with the specified conditions. For instance, as a foreign authorised deposit-taking institution (ADI), the bank is restricted from accepting deposits or other funds below $250,000 from certain sources, as detailed in Schedule 1 of the Notice. Similarly, the bank must adhere to limitations on retail lending, where it is only permitted to lend to incorporated entities or its own employees, as outlined in Schedule 2. These conditions are designed to ensure that the bank maintains prudent banking practices within Australia. Failure to comply with the conditions imposed on the bank's authority can result in significant consequences. Under section 9(6) of the Act, an ADI commits an offence if it contravenes a condition of its Authority, and this offence is punishable by up to 200 penalty units for natural persons and up to 1,000 penalty units for corporate bodies, as specified in subsection 4B(3) of the Crimes Act 1914. Furthermore, the Act classifies such an offence as an indictable offence, meaning it can be prosecuted in a higher court, and the penalty applies for each day the contravention continues. Additionally, section 9(9) of the Act allows for a reconsideration process if a party affected by the decision wishes to contest it, providing a pathway for review under the Administrative Appeals Act 1975 if necessary.

Area of Law: Finance & Banking Law
Instrument: Gazette Notice
Concepts: Definitions & Interpretation; Licensing & Registration; Compliance Obligations; Enforcement Powers; Offence Provisions

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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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