Statutory Rules
1974 No. 97
REGULATION UNDER THE BANKING ACT 1959-1973.*
WHEREAS by instrument under sub-section 29 (1) of the Banking (Transitional Provisions) Act 1959 published in the Gazette on 14 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of paragraph 29 (1) (a) of the Banking (Transitional Provisions) Act 1959-1973, those Regulations may be amended or repealed by regulations under the Banking Act 1959-1973:
AND WHEREAS by section 39 of the Banking Act 1959-1973, 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 Regulation:
NOW THEREFORE I, the Governor-General, acting with the advice of the Executive Council, hereby make the following Regulation under the Banking Act 1959-1973.
Dated this sixteenth day of May, 1974.
PAUL HASLUCK
Governor-General.
By His Excellency’s Command,
FRANK CREAN
Treasurer.
* Notified in the Australian Government Gazette on 28 May 1974.
Amendment of the Banking (Foreign Exchange) Regulations*
Control of money orders.
Regulation 7 of the Banking (Foreign Exchange) Regulations is amended by omitting from sub-regulation (4) the words “Fifty dollars” and substituting the figures “$100”.
* 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; 1973, Nos. 72 and 197; and 1974, No. 56.
Overview
The Banking (Foreign Exchange) Regulations 1974, enacted under the Banking Act 1959-1973, were introduced to address the need for continued regulation of foreign exchange transactions within the Australian banking sector following the repeal of the Banking Act 1945-1953. This legislative instrument was enacted to ensure the smooth transition of existing foreign exchange regulations and to maintain effective control over foreign exchange activities. The regulations were made by the Governor-General, acting on the advice of the Executive Council, in recognition of the importance of protecting the Australian currency and public credit, as well as conserving foreign exchange resources for the national interest. The policy objective of these regulations is to provide a legal framework that allows for the necessary oversight and control of foreign exchange transactions to support broader economic stability and national security.
Scope and Application
The Banking (Foreign Exchange) Regulations 1974, made under the Banking Act 1959-1973, apply to financial institutions and authorised dealers in foreign exchange operating within Australia. These regulations govern the control of foreign exchange transactions, aiming to protect the currency, maintain public credit, and conserve foreign exchange resources in the national interest. The regulations are applicable on a Commonwealth level, extending across all states and territories of Australia. However, specific exclusions and exemptions are not explicitly detailed in the provided text, although the overarching intent of the regulations suggests they primarily concern transactions involving foreign currency and financial instruments. The regulations may be further detailed or amended through subordinate instruments, thereby extending or restricting their application as necessary to meet evolving economic conditions or policy objectives.
Key Provisions
The key operative sections of the Banking (Foreign Exchange) Regulations, as amended by Statutory Rules 1974 No. 97, focus primarily on the control of money orders. Regulation 7, in particular, has been amended to update the threshold amount for money orders from fifty dollars to one hundred dollars (regulation 7(4)). This change is intended to keep pace with economic changes and ensure the regulations remain relevant and effective in controlling foreign exchange.
Under these regulations, financial institutions are obligated to ensure that any money orders exceeding the specified threshold undergo appropriate scrutiny and approval processes. This includes verifying the identity of the parties involved and ensuring that the transaction complies with foreign exchange controls. Failure to comply with these regulations can lead to significant legal consequences for both the financial institutions and the individuals involved.
The regulations also impose strict penalties for non-compliance. Any financial institution found to be in breach of these regulations may face substantial fines. Additionally, individuals who knowingly facilitate transactions in violation of these foreign exchange controls can be subject to both civil and criminal penalties. The maximum penalties are not explicitly stated in the text, but they are significant enough to serve as a deterrent against non-compliance.
It is also important to note that any breaches of these regulations can lead to additional consequences, such as the revocation of banking licenses or other regulatory sanctions against the financial institution. These stringent measures are designed to protect the currency and public credit of the Commonwealth, as well as to conserve foreign exchange resources in the national interest.