Banking (Foreign Exchange) Regulations (Amendment)

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STATUTORY RULES.

1954. No. 96.

REGULATIONS UNDER SECTION 29 OF THE BANKING ACT 1945-1953.*

WHEREAS by section 29 of the Banking Act 1945-1953 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, the Governor-General in and over the Commonwealth of Australia, acting with the advice of the Federal Executive Council, am satisfied that it is expedient, 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 aforesaid, acting with the advice of the Federal Executive Council, hereby make the following Regulations under section 29 of the Banking Act 1945-1953.

Dated this first day of September, 1954.

W. J. SLIM

Governor-General.

By His Excellency’s Command,

(Sgd.) A. W. FADDEN

Treasurer.

Amendments of the Banking (Foreign Exchange) Regulations.†

Definitions.

1. Regulation 4 of the Banking (Foreign Exchange) Regulations is amended by inserting after the definition of “sterling area” the following definition:—

“ ‘the American Account area’ means—

(a) the United States of America and its dependencies;

(b) the islands in the Pacific Ocean which—

(i) were under the sovereignty of, or were administered by, Japan immediately before the war that commenced on the eighth day of December, 1941; and

(ii) are administered by the United States of America; and

* Notified in the Commonwealth Gazette on 1954.

† 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; and 1953, No. 24.

3463.—Price 3d. 9/18.8.1954.

(c) the Republic of the Philippines, Bolivia, Columbia, Costa Rica, Cuba, the Dominican Republic, Ecuador, Guatemala, Haiti, the Republic of Honduras, Liberia, Mexico, Nicaragua, Panama, El Salvador and Venezuela;”.

2.—(1.) Regulation 7 of the Banking (Foreign Exchange) Regulations is repealed and the following regulation inserted in its stead:—

Control of money orders.

“7.—(1.) A person shall not take or send money out of Australia by means of a money order issued in Australia and payable out of Australia otherwise than in accordance with the provisions of this regulation.

“(2.) Money shall not be so taken or sent out of Australia except—

(a) to a person permanently resident out of Australia;

(b) to the Government, or an authority or a fund established by the Government, of any country; or

“(3.) Money shall not be so taken or sent out of Australia to a person permanently resident out of Australia—

(a) except for the sole use and benefit of that person or of another person permanently resident out of Australia; or

(b) in or towards payment for goods which, at the date on which the application for the money order is made, are not excepted from the application of the Customs (Import Licensing) Regulations.

“(4.) The amount of money so taken or sent out of Australia by any one person—

(a) to a person or persons in a place or places in the American Account area or in the Dominion of Canada shall not exceed in the aggregate Five pounds in any one month; and

(b) to a person or persons in any other place or places shall not exceed in the aggregate Ten pounds in any one week.

“(5.) An application for the issue of each money order payable out of Australia shall be made in accordance with a form approved by the Postmaster-General.

“(6.) For the purposes of this regulation, ‘person permanently resident out of Australia’ includes—

(a) an association of persons each of whom is permanently resident out of Australia; and

(b) a body corporate incorporated out of Australia,

but does not include any other association of persons or body corporate.”.

(2.) This regulation shall come into operation on the first day of September, 1954.

Acquisition of foreign currency.

3. Regulation 13 of the Banking (Foreign Exchange) Regulations is amended—

(a) by adding at the end of sub-regulation (1.) the words “within the period prescribed by this regulation”; and

(b) by inserting after sub-regulation (2.) the following sub-regulation:—

“(2a.) The period within which foreign currency to which sub-regulation (1.) of this regulation applies is to be sold to the Bank or to an agent of the Bank is—

(a) except in a case to which the next succeeding paragraph applies, thirty days after the date of commencement of this sub-regulation or the date on which the person having power to sell the foreign currency first has that power, whichever is the later date; or

(b) in the case of foreign currency to which sub-regulation (1.) of this regulation becomes applicable, after the commencement of this sub-regulation, as a result of the expiration of the period referred to in paragraph (c) of the last preceding sub-regulation, thirty days after the date on which the first-mentioned sub-regulation first becomes applicable to that foreign currency.”.

Bank to be named in shipping documents.

4. Regulation 24 of the Banking (Foreign Exchange) Regulations is amended by inserting in sub-regulation (1.), after the word “Minister”, the words “or the Bank”.

Offences.

5. Regulation 42 of the Banking (Foreign Exchange) Regulations is amended by omitting sub-regulation (2.) and inserting in its stead the following sub-regulation:—

“(2.) In addition to any other punishment, a court may, if it thinks fit, order the forfeiture of gold, Australian currency, foreign currency or securities in respect of which an offence against these Regulations has been committed.”.

Printed for the Government of the Commonwealth by A. J. Arthur at the Government Printing Office, Canberra.

Overview

The Banking (Foreign Exchange) Regulations 1954 were introduced as a legislative instrument under section 29 of the Banking Act 1945-1953. Enacted by the Governor-General in Council, these regulations aimed to conserve the foreign exchange resources of the Commonwealth in the national interest, particularly amidst the post-war economic environment. They were designed to address issues related to the control of foreign exchange transactions, including the regulation of money orders sent out of Australia and the acquisition of foreign currency by the Commonwealth Bank. The policy objective was to ensure that foreign exchange was used efficiently and responsibly, thereby supporting the stability of the Australian currency and public credit.

Scope and Application

The Banking (Foreign Exchange) Regulations, as amended, apply to all persons and entities within the Commonwealth of Australia, including banks and financial institutions, and are designed to control foreign exchange transactions and protect the currency and public credit of Australia. These regulations enforce the sale of foreign currency to the Commonwealth Bank or its agents within prescribed periods and regulate the amount of money that can be taken or sent out of Australia by means of money orders. The regulations also define specific regions, such as the American Account area, which includes the United States, certain Pacific islands, and Latin American countries, and impose different limits on money transfers to these regions compared to other places. Any person found in breach of these regulations may face additional penalties, including the forfeiture of relevant currencies or securities. These regulations extend their application through subordinate instruments and are subject to amendments as deemed necessary by the Governor-General in the national interest.

Key Provisions

The primary operative sections of these regulations under the Banking Act 1945-1953 primarily focus on the control of foreign exchange and money orders. Regulation 7, for example, introduces strict controls on the taking or sending of money out of Australia by means of a money order. It specifies permissible recipients and limits the amount of money that can be sent to different regions (Section 7(1)-(6)). Furthermore, Regulation 13 mandates that foreign currency must be sold to the Bank or its agents within a prescribed period, with specific timelines depending on the circumstances (Section 13(2a)). Regulation 24 requires that shipping documents must name the Bank (Section 24(1)). The obligations imposed by these regulations primarily concern the entities and individuals involved in foreign exchange transactions. For instance, Regulation 7 imposes strict conditions on who can receive money orders sent out of Australia and sets specific limits on the amounts that can be sent, thereby requiring compliance with these restrictions (Section 7). Regulation 13 obligates individuals or entities holding foreign currency to sell it to the Bank or its agents within a specified period (Section 13(2a)). Regulation 24 requires shipping documents to name the Bank, ensuring transparency and accountability in these transactions (Section 24(1)). The regulations also establish clear consequences for non-compliance. Regulation 42 introduces the possibility of court-ordered forfeiture of gold, Australian currency, foreign currency, or securities in cases where an offence against these regulations is committed (Section 42(2)). While the maximum penalties are not explicitly stated, the inclusion of forfeiture indicates a serious approach to enforcement, potentially including both civil and criminal penalties for non-compliance.

Area of Law: Finance & Banking Law
Instrument: Regulation
Concepts: Definitions & Interpretation; Offence Provisions; Reporting & Disclosure Obligations

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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.

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