Banking (Foreign Exchange) Regulations (Amendment)

Administered by Department of the Treasury

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STATUTORY RULES.

1960. No. 8.

REGULATIONS UNDER THE BANKING ACT 1959.*

WHEREAS, by instrument under sub-section (1.) of section twenty-nine of the Banking (Transitional Provisions) Act 1959 published in the Gazette on the fourteenth day of January, One thousand nine hundred and sixty, it was declared that, notwithstanding the repeal effected by section four 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 shall 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 of section twenty-nine of the Banking (Transitional Provisions) Act 1959, those regulations may be amended or repealed by regulations under the Banking Act 1959:

And whereas, by section thirty-nine of the Banking Act 1959, 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 in and over the Commonwealth of Australia, acting with the advice of the Federal 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 aforesaid, acting with the advice of the Federal Executive Council, hereby make the following Regulations under the Banking Act 1959.

Dated this fourteenth day of January, 1960.

W. J. Slim

Governor-General.

By His Excellency’s Command,

Treasurer.

* Notified in the Commonwealth Gazette on 10th January, 1960.

10699/59.—Price 3d. 15/30.12.1959.

Amendments of the Banking (Foreign Exchange) Regulations.*

Commencement.

1. Regulation 2 of the Banking (Foreign Exchange) Regulations is repealed.

2. Regulation 3 of the Banking (Foreign Exchange) Regulations is repealed and the following regulation inserted in its stead:—

Parts.

“3. These Regulations are divided into Paris, as follows:—

Part I.—Preliminary (Regulations 1-4).

Part II.—Monetary Control (Regulations 5-12).

Part III.—Control of Proceeds of Exports (Regulations 14-32).

Part IV.—Securities (Regulations 33-35).

Part V.—Miscellaneous (Regulations 36-44).”.

Definitions.

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

(a) by omitting the definition of “British trust territory”; and

(b) by omitting the definitions of “sterling area”, “the American Account area” and “the Bank” and inserting in their stead the following definitions:—

“‘sterling area’ means Australia, the United Kingdom, New Zealand, the Union of South Africa, India, Pakistan, Ceylon, Ghana, Malaya, Burma, Iceland, the Republic of Ireland, the Hashemite Kingdom of the Jordan and Libya, and includes—

(a) a colony, overseas territory or protectorate of a country specified in this definition; and

(b) a territory for the international relations of which a country so specified is responsible;

“‘the Bank’ means the Reserve Bank of Australia.”.

Control of money orders.

4. Regulation 7 of the Banking (Foreign Exchange) Regulations is amended by omitting sub-regulation (4.) and inserting in its stead the following sub-regulation:—

“(4.) The amount of money so taken or sent out of Australia by any one person to a person or persons in any one week shall not exceed in the aggregate Ten pounds.”.

Control of certain payments and transactions.

5. Regulation 8 of the Banking (Foreign Exchange) Regulations is amended—

(a) by omitting paragraph (b) of sub-regulation (1.);

(b) by inserting in paragraph (c) of sub-regulation (1.), before the word “transfer”, the words “allot or”;

“(d) make an entry in a register in Australia that recognizes or gives effect to a transfer of any securities to a person resident out of Australia.”;

* 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; and 1954, No. 96.

(d) by omitting from sub-regulation (2.) all words after the word “Australia”;

(e) by inserting in paragraph (b) of sub-regulation (3.), before the word “transfer”, the words “allot or”; and

(f) by inserting after sub-regulation (3.) the following sub-regulation:—

“(3a.) A person shall not receive any payment prohibited by paragraph (a) of sub-regulation (1.) of this regulation or by paragraph (a) of the last preceding sub-regulation.”.

Provision with respect to certain foreign corporations controlled from Australia.

6. Regulation 10 of the Banking (Foreign Exchange) Regulations is repealed.

Acquisition of foreign currency.

7. Regulation 13 of the Banking (Foreign Exchange) Regulations is repealed.

Definitions.

8. Regulation 15 of the Banking (Foreign Exchange) Regulations is amended by omitting from the definition of “the Minister” the words “Trade and Customs” and inserting in their stead the words “Customs and Excise”.

Applications for licences.

9. Regulation 19 of the Banking (Foreign Exchange) Regulations is amended by omitting sub-regulation (4.).

Terms and conditions of licences.

10. Regulation 23 of the Banking (Foreign Exchange) Regulations is amended by inserting in paragraph (b) of sub-regulation (1.), after the word “Minister”, the words “or the Bank”.

Licensee may be required to sell goods in certain circumstances.

11. Regulation 27 of the Banking (Foreign Exchange) Regulations is repealed.

Exercise of Minister’s powers and functions by certain officers.

12. Regulation 30 of the Banking (Foreign Exchange) Regulations is amended by omitting from sub-regulation (1.) the figures “, 27”.

13.—(1.) Regulation 34 of the Banking (Foreign Exchange) Regulations is repealed and the following regulation inserted in its stead:—

Control of foreign securities.

“34.—(1.) Subject to the next succeeding sub-regulation, a person, other than the Bank or an agent of the Bank, shall not, without the authority of the Bank, acquire, dispose of or otherwise deal with any foreign securities.

“(2.) The last preceding sub-regulation does not apply to the acquisition of any foreign securities otherwise than for valuable consideration.”.

(2.) An authority given by the Commonwealth Bank of Australia under the regulation repealed by the last preceding sub-regulation has effect after the commencement of this regulation as if it were an authority given by the Reserve Bank of Australia under the regulation inserted in the Banking (Foreign Exchange) Regulations by that sub-regulation.

Declaration by travellers.

14. Regulation 36 of the Banking (Foreign Exchange) Regulations is amended by omitting sub-regulation (6.) and inserting in its stead the following sub-regulation:—

“(6.) In this regulation, ‘officer’ means a person who is an officer of Customs for the purposes of the Customs Act 1901-1959, an officer of the Department of Immigration or a member of the Police Force of the Commonwealth or of a State or Territory of the Commonwealth, and includes a person authorized by the Bank to act as an officer for the purposes of this regulation.”.

Power to obtain information.

15. Regulation 37 of the Banking (Foreign Exchange) Regulations is amended by omitting from sub-regulation (5.) the words “Trade and Customs” and inserting in their stead the words “Customs and Excise”.

False statements.

16. Regulation 40 of the Banking (Foreign Exchange) Regulations is amended by omitting from paragraph (a) the words “Trade and Customs” and inserting in their stead the words “Customs and Excise”.

First Schedule.

17. Form C in the First Schedule to the Banking (Foreign Exchange) Regulations is amended by omitting the words “His Majesty King George the Sixth in the sum of pounds, to be paid to His Majesty and his successors,” and inserting in their stead the words “the Commonwealth of Australia in the sum of pounds, to be paid to the Commonwealth of Australia,”.

Second Schedule.

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

By Authority: A. J. Arthur, Commonwealth Government Printer, Canberra.

Overview

The Banking (Foreign Exchange) Regulations 1959, enacted by the Commonwealth of Australia, were established to manage foreign exchange controls and maintain the stability of the Australian currency and public credit. These regulations were introduced to ensure the effective transition of foreign exchange controls from the Banking Act 1945-1953 to the Banking Act 1959, as well as to align with the broader national interest in conserving foreign exchange resources. The Governor-General, acting with the advice of the Federal Executive Council, authorised these regulations to address the need for stringent controls on foreign exchange transactions and to update definitions and provisions in response to changing economic conditions and international relations. This legislative instrument aimed to provide a structured framework for the control and management of foreign exchange, ensuring compliance with national economic policies.

Scope and Application

The Banking (Foreign Exchange) Regulations under the Banking Act 1959 apply to individuals and entities within Australia, particularly those involved in financial transactions involving foreign exchange. The scope of these regulations extends to the control of foreign exchange and the preservation of Australia’s currency and public credit, as well as the conservation of foreign exchange resources. These regulations cover various aspects, including the control of monetary instruments, payments, transactions, and the acquisition and disposal of foreign securities. The geographic reach of these regulations is national, encompassing all activities within Australia that involve foreign exchange. There are no stated exclusions or exemptions in these particular regulations, though specific provisions within the regulations may limit certain activities. The application of these regulations may be extended or restricted through subordinate instruments issued under the authority of the Banking Act 1959.

Key Provisions

The key operative sections of the Banking (Foreign Exchange) Regulations, which were made under the Banking Act 1959, primarily focus on the control and management of foreign exchange transactions and foreign securities within Australia. Regulation 3 restructures the regulations into five parts: Preliminary, Monetary Control, Control of Proceeds of Exports, Securities, and Miscellaneous. Regulation 4 limits the amount of money a person can send or take out of Australia to ten pounds per week. Regulation 8 modifies the list of prohibited payments and transactions, including allotments and entries in registers that recognize transfers of securities to non-residents. Regulation 34 introduces stringent controls on the acquisition, disposal, or dealing of foreign securities by persons other than the Reserve Bank of Australia or its agents, unless done without valuable consideration. The Act imposes specific obligations and requirements on financial institutions and individuals to comply with the regulations. Banks and other financial entities must adhere to the monetary controls outlined in Part II, ensuring that transactions involving foreign currency and securities are conducted within the stipulated limits and with the necessary authorisations. For instance, under Regulation 4, banks must monitor and restrict the amount of money that individuals can send or take out of Australia to ensure it does not exceed ten pounds per week. Additionally, under Regulation 34, any person seeking to acquire, dispose of, or deal with foreign securities must obtain the requisite authority from the Reserve Bank of Australia. Failure to comply with these regulations can result in serious legal consequences. Offences and penalties are outlined in the Banking Act 1959, which may include fines and imprisonment. For example, Regulation 40 penalises individuals who provide false statements in relation to foreign exchange transactions, which may lead to civil or criminal penalties. The severity of these penalties can vary, but the Act empowers the Reserve Bank of Australia and other relevant authorities to enforce compliance rigorously. Additionally, Regulation 34 emphasises the necessity for authorisation from the Reserve Bank of Australia for dealing in foreign securities, with unauthorised dealings potentially resulting in significant legal repercussions for both individuals and financial institutions.

Area of Law: Finance & Banking Law
Instrument: Regulation
Concepts: Definitions & Interpretation; Control of money orders; Regulatory Standards

Interactions

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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