Banking (Foreign Exchange) Regulations 1959 - Exemption (subregulation 9(1)) (21/06/1984)

Overview

The Banking (Foreign Exchange) Regulations Exemption F2006B00089 was enacted in 1984 by the Reserve Bank of Australia pursuant to Regulation 38 of the Banking (Foreign Exchange) Regulations. This legislative instrument was introduced to address the need for exemptions in the sale, loan, transfer, mortgaging, or charging of securities or land within Australia by non-residents to other non-residents or their agents. The exemption aims to facilitate certain financial transactions that would otherwise be restricted by the general prohibitions under sub-regulation 9(1) of the Banking (Foreign Exchange) Regulations. The policy objective of this exemption is to provide flexibility in the financial dealings of non-residents, thus promoting ease of cross-border transactions that may be necessary for legitimate business purposes. This exemption instrument came into operation on 25 June 1984, as authorised by the Deputy Governor of the Reserve Bank of Australia.

Scope and Application

The Banking (Foreign Exchange) Regulations 1984, as represented by the legislative instrument F2006B00089, provide specific exemptions under sub-regulation 9(1) concerning the sale, loan, transfer, mortgaging, or charging of securities or land within Australia. These exemptions apply to transactions involving non-residents, specifically excluding such activities from the purview of the regulations when both the transacting parties are non-residents or when they are acting on behalf of non-residents. This legislative instrument is significant in delineating the jurisdictional reach of the banking regulations, clarifying that the exemption applies nationally across Australia. The instrument also stipulates that its provisions came into effect on 25 June 1984, underscoring the date from which these exemptions were legally enforceable. This regulatory exemption provides clarity for financial transactions conducted by non-residents within Australia, ensuring that certain activities are excluded from the stringent requirements of the Banking (Foreign Exchange) Regulations.

Key Provisions

The Legislative Instrument F2006B00089, titled "BANKING (FOREIGN EXCHANGE) REGULATIONSEXEMPTION," outlines an exemption from sub-regulation 9(1) of the Banking (Foreign Exchange) Regulations. Specifically, section 1 exempts certain transactions from the regulatory requirements that otherwise apply to the sale, loan, transfer, mortgaging or charging of any security or land within Australia. This exemption applies when such transactions are conducted by a non-resident person to another non-resident person or a person acting on behalf of a non-resident. This exemption was made under the authority of Regulation 38 of the Banking (Foreign Exchange) Regulations. The obligations and requirements imposed by this legislative instrument primarily pertain to the entities involved in the specified transactions. Under section 2, the Reserve Bank of Australia, through its Deputy Governor, has authorised this exemption, thereby allowing certain financial activities to bypass the stringent regulations that usually govern foreign exchange transactions. The exemption is designed to provide flexibility and facilitate international business activities that would otherwise be constrained by the usual regulatory framework. Section 3 of the instrument highlights the potential consequences of non-compliance with the Banking (Foreign Exchange) Regulations. While this specific legislative instrument does not explicitly state the penalties for breach, it is understood that breaches of the Banking (Foreign Exchange) Regulations generally can result in both civil and criminal penalties. Civil penalties can include fines, and in some cases, criminal penalties may include imprisonment, reflecting the severity with which breaches of foreign exchange regulations are treated under Australian law. The exact penalties would depend on the specific nature of the breach and the provisions of the broader regulatory framework.