Banking (Foreign Exchange) Regulations (Amendment)

Administered by Department of the Treasury

Legislation au F1996B01489 Regulations Not in force Legislative Instrument

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Statutory Rules

1973  No. 197

REGULATIONS UNDER THE BANKING ACT 1959-1967.*

WHEREAS by instrument under sub-section (1) of section 29 of the Banking (Transitional Provisions) Act 1959 published in the Gazette on 14th January, 1960, the Governor-General declared that, notwithstanding the repeal effected by section 4 of the Banking Act 1959, the Banking (Foreign Exchange) Regulations in force under the Banking Act 1945-1953 immediately before the commencement of Part VII of the Banking (Transitional Provisions) Act 1959 should continue in force as if they were made under the Banking Act 1959:

AND WHEREAS by virtue of paragraph (a) of sub-section (1) of section 29 of the Banking (Transitional Provisions) Act 1959, those Regulations may be amended or repealed by regulations under the Banking Act 1959-1967:

AND WHEREAS by section 39 of the Banking Act 1959-1967, 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 or 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, the Governor-General of Australia, acting with the advice of the Executive Council, 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 Regulations:

NOW THEREFORE I, the Governor-General, acting with the advice of the Executive Council, hereby make the following Regulations under the Banking Act 1959-1967.

Dated this twenty-fifth day of September, 1973.

PAUL HASLUCK

Governor-General.

By His Excellency’s Command,

FRANK CREAN

Treasurer.

 

* Notified in the Australian Government Gazette on 4 October 1973.


Amendments of the Banking (Foreign Exchange) Regulations*

Definitions.

1. Regulation 4 of the Banking (Foreign Exchange) Regulations is amended—

(a) by omitting the definition of “ country included in the sterling area ”;

(b) by omitting from paragraph (f) of the definition of “ foreign securities ” the words “ not being a country included in the sterling area ” and substituting the words “ outside Australia ”;

(c) by omitting from paragraph (g) of the definition of “ foreign securities ” the words “ not being a country included in the sterling area ” and substituting the words “ outside Australia ”; and

(d) by omitting from paragraph (h) of the definition of “ foreign securities ” all of the words from and including the word “ other ” to the end of that paragraph and substituting the words “ outside Australia ”.

Offences.

2. Regulation 42 of the Banking (Foreign Exchange) Regulations is amended—

(a) by inserting in sub-regulation (1), after the word “ contravene ”, the words “ or attempt to contravene ”;

(b) by omitting from sub-regulation (1) the words “ Two hundred dollars ” and substituting the words “ One thousand dollars ”;

(c) by omitting from sub-regulation (2) the words “ In addition to any other punishment, a court ” and substituting the words “ Where a person has been convicted by a court of an offence against these Regulations, the court ”; and

(d) by adding at the end thereof the following sub-regulation:—

“ (3) Without limiting the application of sub-regulation (2), a court may, under that sub-regulation, order the forfeiture of gold, Australian currency, foreign currency or securities in respect of which an offence against these Regulations has been committed whether the person who committed the offence or another person is the owner of that gold, Australian currency, foreign currency or securities.”.

Second Schedule.

3. The Second Schedule to the Banking (Foreign Exchange) Regulations is repealed.

 

* Statutory Rules 1946, No. 191. as amended by Statutory Rules 1947, Nos. 65 and 102; 1948, Nos. 39 and 165; 1950, No. 46; 1952, Nos. 15 and 80; 1953. No. 24; 1954, No. 96; 1960, No. 8; 1965, No. 168; 1967, No. 70: 1970, No. 130; and 1973, No. 72.

Overview

The Statutory Rules 1973 No. 197, enacted under the Banking Act 1959-1967, address the need to amend existing foreign exchange regulations to better align with the contemporary economic and regulatory environment. This legislative instrument was introduced by the Parliament of Australia to ensure the currency and public credit of the Commonwealth are protected and to conserve the nation’s foreign exchange resources. The Governor-General, acting on the advice of the Executive Council, was satisfied that these amendments were necessary for the protection of the currency and public credit of the Commonwealth, as well as for conserving foreign exchange resources in the national interest. The regulations include modifications to definitions and penalties related to foreign exchange control, reflecting an effort to strengthen compliance and enforcement mechanisms in the banking sector.

Scope and Application

The Banking (Foreign Exchange) Regulations under the Banking Act 1959-1967 apply to all authorised deposit-taking institutions and authorised foreign banks operating in Australia, which includes both individuals and entities involved in foreign exchange transactions. These regulations are intended to protect the currency and public credit of the Commonwealth, as well as conserve foreign exchange resources, by controlling and overseeing foreign exchange activities. The regulations have a national reach, applying across Australia and are subject to amendment or repeal by the Governor-General in consultation with the Executive Council. The application of these regulations can be extended or restricted through subordinate instruments as deemed necessary by the Governor-General, ensuring flexibility in addressing evolving economic and financial circumstances. The regulations include specific provisions for offences and penalties, which have been updated to increase the maximum fines and to allow for the forfeiture of assets related to contraventions. These amendments reflect a strengthened approach to enforcing compliance with foreign exchange regulations.

Key Provisions

The Statutory Rules 1973 No. 197, titled "Regulations under the Banking Act 1959-1967," focus primarily on the amendment and clarification of foreign exchange regulations. Regulation 1 makes several amendments to the definition of terms used in the Banking (Foreign Exchange) Regulations. For instance, the definition of "foreign securities" now refers to securities outside Australia, removing any previous reference to countries within the sterling area (Reg. 1(a)-(d)). Regulation 2 introduces significant changes to the penalties for breaches of the regulations. It now includes the attempt to contravene regulations as an offence (Reg. 2(a)) and increases the maximum penalty from Two hundred dollars to One thousand dollars (Reg. 2(b)). Furthermore, the regulation allows for the forfeiture of assets, including gold, Australian currency, foreign currency, or securities, related to an offence (Reg. 2(d)). Regulation 3 repeals the Second Schedule of the Banking (Foreign Exchange) Regulations, which likely includes outdated or superseded provisions that are no longer necessary under the updated framework. These regulations impose obligations on banks and financial institutions to comply with the updated definitions and penalties concerning foreign exchange controls. Specifically, they must adhere to the new definitions of terms and ensure that any transactions involving foreign securities comply with the specified criteria. Additionally, financial institutions must be aware of the increased penalties for non-compliance and be prepared to report and forfeit assets as mandated by the regulations. Violating these regulations can lead to severe penalties. As per Regulation 2, individuals or entities found guilty of contravening the regulations or attempting to do so face a maximum penalty of One thousand dollars. Moreover, courts have the authority to order the forfeiture of any assets involved in the offence, irrespective of who owns them. This stringent approach underscores the importance of strict compliance with foreign exchange regulations to protect the currency and public credit of the Commonwealth and to conserve foreign exchange resources.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.