STATUTORY RULES.
1947. No. .
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 thirty-first day of July, 1947.
W. J. McKell
Governor-General.
By His Excellency’s Command,
Treasurer
Amendment of The Banking (Foreign Exchange) Regulations.†
Definitions.
Regulation 4 of the Banking (Foreign Exchange) Regulations is amended by omitting from the definition of “sterling area” the words “Egypt, the Anglo-Egyptian Sudan,”.
* Notified in the Commonwealth Gazette on , 1947.
† Statutory Rules 1946, No. 191, as amended by Statutory Rules 1947, No. 65.
By Authority: L. F. Johnston, Commonwealth Government Printer, Canberra.
4468.—Price 3d. 10/1.7.1947.
Overview
The Banking (Foreign Exchange) Regulations 1947, made under section 29 of the Banking Act 1945, were introduced to provide the Governor-General with the authority to make regulations concerning foreign exchange control. This was enacted to protect the currency and public credit of the Commonwealth, and to conserve the nation’s foreign exchange resources in the national interest. The regulations were made with the advice of the Federal Executive Council and aim to ensure that the measures taken are consistent with the overarching provisions of the Banking Act 1945. This legislative instrument specifically amends Regulation 4 of the existing Banking (Foreign Exchange) Regulations by removing "Egypt, the Anglo-Egyptian Sudan" from the definition of "sterling area", reflecting changes in the geopolitical landscape and the evolving economic strategies of the time.
Scope and Application
The Legislative Instrument F1996B01476, a regulation under Section 29 of the Banking Act 1945, pertains to the control of foreign exchange with the aim of protecting the currency, public credit, and conserving the nation's foreign exchange resources. This regulation applies to financial institutions and entities within the Commonwealth of Australia that engage in foreign exchange transactions. It has a national reach, impacting the entire country. The regulation is an instrument through which the Governor-General can exercise authority over matters related to foreign exchange, and it extends its application through subordinate instruments which provide further details and modifications to the existing Banking (Foreign Exchange) Regulations. This particular regulation specifically amends the definition of "sterling area" by removing Egypt and the Anglo-Egyptian Sudan, thereby altering the scope of entities affected by the regulation. There are no stated exclusions, exemptions, or thresholds in the excerpt provided, although the regulation itself may contain such provisions.
Key Provisions
The primary operative sections of this legislative instrument concern amendments to the Banking (Foreign Exchange) Regulations, specifically altering the definition of “sterling area” in Regulation 4. This amendment removes Egypt and the Anglo-Egyptian Sudan from the definition of the sterling area (Regulation 4). These changes are intended to update and refine the regulatory framework surrounding foreign exchange controls as stipulated under section 29 of the Banking Act 1945. The amendments are made to align with the national interest in protecting the currency, maintaining public credit, and conserving foreign exchange resources.
The Act imposes several obligations on the parties and entities it governs. Financial institutions, including banks and other financial entities, must comply with the updated definitions and provisions concerning foreign exchange controls. These controls are designed to ensure that transactions involving foreign currencies are monitored and managed in a way that supports the national economic interests. Institutions must ensure that their practices align with the updated regulatory framework, including reporting and record-keeping requirements that may be stipulated elsewhere in the Act or related regulations.
There are significant consequences for breaches of the regulations outlined in this legislative instrument. The Act does not explicitly state penalties for non-compliance within this particular regulation; however, under the Banking Act 1945, breaches of foreign exchange regulations can lead to severe penalties. These may include fines, imprisonment, or both, depending on the severity of the breach. For instance, under section 98 of the Banking Act 1945, a person who contravenes any provision of the Act or the regulations can be subject to penalties, which may include fines of up to $200,000 for individuals and $1,000,000 for bodies corporate, along with possible imprisonment for up to five years. The exact penalties and consequences would depend on the specific nature of the breach and the discretion of the courts.