STATUTORY RULES.
1948. No. 39.
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 eleventh day of March, 1948.
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—
(a) by inserting in the definition of “ sterling area ”, after the word “ territories ”, the words “ (other than Palestine) ”; and
(b) by omitting from that definition the word “ Transjordan ” and inserting in its stead the word “ Burma ”.
* Notified in the Commonwealth Gazette on , 1948.
† Statutory Rules 1946, No. 191 as amended by Statutory Rules 1947, Nos. 65 and 102.
by authority: l. f. Johnston, Commonwealth Government Printer, Canberra.
1373.—Price 3d. 8/9.3.1948.
Overview
The Banking (Foreign Exchange) Regulations 1948, established under Section 29 of the Banking Act 1945, were enacted to address the need for stringent control over foreign exchange transactions to protect the currency and public credit of the Commonwealth, as well as to conserve foreign exchange resources in the national interest. This legislative instrument was made by the Governor-General, acting with the advice of the Federal Executive Council, reflecting the urgency and significance of the measures to maintain economic stability during a time of global economic restructuring post-World War II. The policy objective behind these regulations was to ensure that foreign exchange transactions were managed in a way that would safeguard Australia’s economic interests and maintain the integrity of its currency amidst international financial changes.
Scope and Application
The Statutory Rules of 1948, No. 39, which amends the Banking (Foreign Exchange) Regulations under Section 29 of the Banking Act 1945, applies to entities within the Commonwealth of Australia that engage in foreign exchange transactions. The primary objective of this regulation is to provide control over foreign exchange for the protection of the currency and public credit of the Commonwealth, as well as to conserve the nation's foreign exchange resources. This legislative instrument has a national jurisdictional reach and is applicable across all states and territories within Australia. The amendments made to Regulation 4 redefine the term "sterling area" by excluding Palestine and replacing Transjordan with Burma, thus altering the scope of the territories involved in the regulation of foreign exchange transactions. The regulation extends its application through subordinate instruments as specified under the Banking Act 1945, ensuring compliance with the legislative intent without explicitly stating any exclusions, exemptions, or thresholds in the provided excerpt.
Key Provisions
The operative sections of the Banking (Foreign Exchange) Regulations, as amended, primarily concern the control of foreign exchange for the protection of the currency, public credit, and conservation of foreign exchange resources of the Commonwealth. Section 4 of the Regulation amends the definition of "sterling area" to exclude Palestine and Transjordan, replacing the latter with Burma. This amendment aims to fine-tune the scope of territories subject to foreign exchange controls.
The obligations imposed by these regulations include ensuring that any transactions involving foreign exchange must comply with the amended definitions and any additional stipulations under the Banking Act 1945. Financial institutions and entities must adhere to the updated definitions when processing transactions, reporting, and maintaining records related to foreign exchange. This includes making necessary adjustments in their internal systems and procedures to reflect these changes.
Breaches of these regulations can lead to serious consequences. While the specific penalties are not detailed within the provided text, generally under the Banking Act 1945, penalties for non-compliance can include substantial fines and, in severe cases, imprisonment. The exact penalties depend on the nature and severity of the breach, as well as any additional provisions or amendments that may be applicable. Legal practitioners must advise their clients on the importance of compliance to avoid these potential repercussions.