Banking (Foreign Exchange) Regulations 1959 - Exemption (subregulation 33(1)) (21/06/1984)

Overview

The Banking (Foreign Exchange) Regulations Exemptions 1984 were enacted to address the need for certain exemptions in the application of sub-regulation 33(1) of the Banking (Foreign Exchange) Regulations 1983. The regulation was introduced to facilitate financial transactions involving the transfer of securities outside Australia, thus providing a regulatory exemption for such activities. This legislative instrument was issued by the Reserve Bank of Australia, which is the central bank and financial regulatory authority in Australia. The policy objective behind these exemptions is to ensure that the financial transactions, particularly those involving the transfer of securities abroad, are not unduly restricted, thereby promoting smoother and more efficient international financial operations. This exemption came into operation on 25 June 1984, as declared by the Deputy Governor, D. N. Sanders.

Scope and Application

The Banking (Foreign Exchange) Regulations Exemptions, specifically under legislative instrument F2006B00610, pertains to the exemption of certain transactions from the application of sub-regulation 33(1) of the Regulations. This exemption applies to any person who takes, sends or transfers any securities to any place outside Australia. The scope of the Act is limited to financial transactions involving securities being moved outside of Australia’s borders. The exemption is granted by the Reserve Bank of Australia, which acts in its capacity to regulate foreign exchange activities within the Commonwealth. This legislative instrument came into effect on 25 June 1984 and applies nationally, extending the reach of the Reserve Bank’s regulatory powers over foreign exchange transactions. It is important to note that the exemption does not cover other types of transactions or entities not specifically mentioned in the Act, thereby maintaining certain restrictions and controls over other financial activities.

Key Provisions

The Legislative Instrument F2006B00610, which pertains to the Banking (Foreign Exchange) Regulations, introduces a specific exemption under Regulation 38. This exemption, detailed in the instrument, applies to sub-regulation 33(1) of the Regulations, which typically governs the transfer or movement of securities out of Australia. The exemption allows any person to take, send, or transfer securities to any place outside Australia without the constraints imposed by sub-regulation 33(1) (sections not explicitly numbered in the text). This means that the usual requirements or restrictions that might apply to such transactions are not applicable under this specific exemption. This legislative instrument imposes a clear set of obligations and requirements on the entities or individuals it governs. Primarily, it requires that any person who intends to transfer securities abroad must comply with the exemption provided they are acting within the scope of the specified conditions. This involves ensuring that the transaction of securities is conducted in a manner consistent with the exemption as outlined in the Regulations, thereby avoiding any unnecessary regulatory hurdles that would otherwise apply under sub-regulation 33(1). This exemption aims to streamline the process for those transferring securities outside Australia, provided they adhere to the terms set out in the exemption. In terms of compliance and consequences, the legislation does not explicitly mention any specific offences, penalties, or civil/criminal consequences for breach within the provided text. However, it is implicit that any deviation from the terms of the exemption or the broader regulations could result in regulatory action by the Reserve Bank of Australia. The lack of explicit penalties in the text suggests that the primary focus is on providing a clear exemption and ensuring compliance through adherence to the specified conditions. Those who do not comply may face regulatory scrutiny or other unspecified consequences under the broader Banking (Foreign Exchange) Regulations.