STATUTORY RULES.
1948. No. 165.
REGULATION UNDER SECTION 29 OF THE BANKING ACT 1945.*
WHEREAS by section 29 of the Banking Act 1945 it is provided that, where the Governor-General is satisfied that it is expedient so to do, for the protection of the currency or of the public credit of the Commonwealth, or in order to conserve, in the national interest, the foreign exchange resources of the Commonwealth, he may make Regulations, not inconsistent with that Act, making provision for and in relation to the control of foreign exchange and, in particular, but without limiting the generality of the foregoing, for or in relation to certain matters specified in that section:
And whereas I am satisfied that it is expedient, for the protection of the currency and of the public credit of the Commonwealth, and in order to conserve, in the national interest, the foreign exchange resources of the Commonwealth, to make the following Regulation:
Now therefore I, the Governor-General in and over the Commonwealth of Australia, acting with the advice of the Federal Executive Council, hereby make the following Regulation under section 29 of the Banking Act 1945.
Dated this twenty-first day of December, 1948.
W. J. McKELL
Governor-General.
By His Excellency’s Command,
J. B. CHIFLEY
Treasurer.
Amendment of the Banking (Foreign Exchange) Regulations.†
Definitions.
Regulation 4 of the Banking (Foreign Exchange) Regulations is amended by omitting the definition of “ sterling area ” and inserting in its stead the following definition :—
“ ‘ sterling area ’ means all parts of His Majesty’s dominions (except Canada and Newfoundland), and includes all British mandated territories, all British protectorates and protected states, Eire, Iraq, Burma and Iceland ;”.
* Notified in the Commonwealth Gazette on 6th January, 1949.
† Statutory Rules 1946, No. 191, as amended by Statutory Rules 1947, Nos. 65 and 102; and 1948, No. 39.
By Authority: L. F. Johnston, Commonwealth Government Printer, Canberra
6445.—Price 3d.
Overview
The Banking (Foreign Exchange) Regulations, 1948, were enacted under section 29 of the Banking Act 1945, empowering the Governor-General to make regulations for the protection of the currency and public credit of the Commonwealth, and to conserve foreign exchange resources in the national interest. This legislative instrument was introduced by the Governor-General in Council, acting on the advice of the Federal Executive Council, to respond to the need for effective foreign exchange control mechanisms in the post-war economic environment. The primary policy objective of these regulations is to maintain financial stability and ensure the prudent management of Australia's foreign exchange resources, thereby safeguarding the nation's economic interests. The regulations specifically address the control of foreign exchange transactions, reinforcing the government's commitment to protecting the nation's currency and credit standing on the global stage.
Scope and Application
The Banking (Foreign Exchange) Regulations, under section 29 of the Banking Act 1945, apply to all authorised deposit-taking institutions, including banks, building societies, and credit unions, as well as any other entities or individuals involved in foreign exchange transactions within the Commonwealth of Australia. These regulations are designed to protect Australia's currency, maintain public credit, and conserve foreign exchange resources. They cover the control and management of foreign exchange transactions, ensuring compliance with the objectives of the Banking Act 1945. The geographic reach of these regulations is nationwide, encompassing all states and territories within Australia. While the primary purpose is to regulate the financial sector, the regulations may also impact individuals and entities that engage in foreign exchange activities. The regulations are subject to amendments through subordinate instruments, which may adjust definitions, thresholds, or specific provisions as deemed necessary by the Governor-General in consultation with the Federal Executive Council.
Key Provisions
The Banking (Foreign Exchange) Regulations 1948, made under section 29 of the Banking Act 1945, establish a framework for controlling foreign exchange transactions within Australia. Section 4 of the Regulations defines the term "sterling area," specifying which regions are included within this term, excluding Canada and Newfoundland but including British mandated territories, protectorates, protected states, Eire, Iraq, Burma, and Iceland. These definitions are crucial for determining the scope of foreign exchange controls under the Act.
The Act imposes obligations on financial institutions and individuals to comply with the foreign exchange regulations. This includes adhering to the specified definitions and any subsequent amendments, ensuring that transactions within the defined "sterling area" are conducted in accordance with the stipulated controls. Financial institutions must implement appropriate measures to monitor and report foreign exchange transactions as required by the Regulations.
Failure to comply with the provisions of the Banking (Foreign Exchange) Regulations 1948 can result in significant legal consequences. Any person or entity found in breach of these Regulations may face civil or criminal penalties. Specifically, the Banking Act 1945 provides for penalties including fines and, in some cases, imprisonment. The exact penalties depend on the nature and severity of the breach, but they are designed to enforce compliance and protect the national interests related to currency and foreign exchange resources.