Banking (Foreign Exchange) Regulations 1959 - Exemption (regulation 7) (12/12/1983)

Overview

The Banking (Foreign Exchange) Regulations Exemption 2006 (F2006B00612) was enacted by the Reserve Bank of Australia in accordance with Regulation 38 of the Banking (Foreign Exchange) Regulations. This legislative instrument was introduced to address a specific gap in the regulation of foreign exchange transactions within Australia, particularly focusing on the exemption of certain money orders from the application of Regulation 7. The objective of this exemption is to streamline and facilitate the process for individuals who are taking or sending money out of Australia through money orders, thereby reducing unnecessary regulatory burdens while maintaining overall oversight of foreign exchange activities. The exemption aims to support the efficient operation of financial services within the country, reflecting a balance between regulatory compliance and the needs of the public.

Scope and Application

The Legislative instrument F2006B00612 pertains to a specific exemption under the Banking (Foreign Exchange) Regulations, which is administered by the Reserve Bank of Australia. This exemption applies to any person who takes or sends money out of Australia using a money order that is issued and payable within Australia. The scope of this exemption is limited to the conduct of transferring money via a specified financial instrument, and it does not extend to other forms of foreign exchange transactions. The exemption is geographically confined to transactions that originate and are intended to be fulfilled within Australia, thus excluding any cross-border money transfers not facilitated by a money order issued in Australia. The exemption applies to individuals, businesses, or entities that engage in the act of issuing or sending money orders out of Australia. The stated exemption under Regulation 38 relieves these entities from the requirements imposed by Regulation 7 of the Banking (Foreign Exchange) Regulations, which generally governs foreign exchange transactions. There are no exclusions or thresholds mentioned in the legislative instrument, and it does not extend its application through subordinate instruments. The exemption is narrowly tailored to the specific scenario described, providing relief from certain regulatory obligations for the specified conduct.

Key Provisions

The primary operative sections of this legislative instrument, the Banking (Foreign Exchange) Regulations Exemption, concern the exemption of certain financial transactions from Regulation 7 of the Banking (Foreign Exchange) Regulations. Specifically, section 1 provides that the Reserve Bank of Australia exempts any person taking or sending money out of Australia by means of a money order issued in Australia and payable out of Australia (Regulation 38). This means that the usual requirements and limitations imposed by Regulation 7 do not apply to these particular transactions. The Act imposes obligations on the parties or entities it governs by exempting them from the stringent controls that Regulation 7 would otherwise enforce. For instance, under Regulation 7, individuals and businesses might be required to obtain approval or adhere to certain procedures before transferring money overseas. However, the exemption in section 1 removes these constraints for the specified transactions, thereby allowing for a more straightforward process of sending money out of Australia via money orders. Breaches of the Banking (Foreign Exchange) Regulations, if they were to occur, could lead to civil or criminal consequences. Regulation 7 itself might carry penalties for non-compliance, which could include fines or other sanctions. However, since the exemption provided by section 1 is explicit and clearly defined, it is expected that compliance with the terms of this exemption would prevent any such penalties from being applicable. The maximum penalties for breaches of the underlying regulations would still apply if the exempted transactions were conducted in a manner inconsistent with the exemption's terms.