STATUTORY RULES.
1952. No. .
REGULATIONS 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 Regulations:
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 Regulations under section 29 of the Banking Act 1945.
Dated this twenty-ninth day of February, 1952.
W. J. McKELL
Governor-General.
By His Excellency’s Command,
for and on behalf of the Treasurer.
Amendments of the Banking (Foreign Exchange) Regulations.†
Definitions.
1. Regulation 4 of the Banking (Foreign Exchange) Regulations is amended by omitting from the definition of “ sterling area ” the words “ and the Hashemite Kingdom of the Jordan ” and inserting in their stead the words “, the Hashemite Kingdom of the Jordan and Libya ”.
Acquisition of foreign currency.
2. Regulation 13 of the Banking (Foreign Exchange) Regulations is amended by inserting in sub-regulation (3.), after the word “fixed”, the words “or authorized”.
* Notified in the Commonwealth Gazette on , 1952.
† Statutory Rules 1946, No, 101, as amended by Statutory Rules 1947, Nos. 65 and 102; 1948, Nos. 39 and 165; and 1950, No. 46.
By Authority: L. F. Johnston, Commonwealth Government Printer, Canberra.
4429.—Price 3d. 9/17.1.1952.
Overview
The Banking (Foreign Exchange) Regulations 1952, as enacted under the Banking Act 1945, were introduced to provide the Governor-General with the authority to make regulations concerning the control of foreign exchange. This was primarily in response to the need to safeguard Australia's currency and public credit, and to conserve the nation's foreign exchange resources in the national interest. These regulations were made under the authority of the Governor-General acting on the advice of the Federal Executive Council, reflecting the urgent need to adapt to changing economic conditions and international financial landscapes. The policy objective, as stated, is to ensure the protection of the currency and public credit of the Commonwealth, alongside the conservation of foreign exchange resources.
Scope and Application
The Banking (Foreign Exchange) Regulations 1952, made under section 29 of the Banking Act 1945, are aimed at ensuring the stability of the Australian currency and public credit, as well as conserving foreign exchange resources. These regulations apply to entities within the banking sector that are involved in transactions involving foreign currency, including banks and authorised dealers. The scope of the Act extends to all Commonwealth territories, making it a national legislative instrument. The regulations allow for amendments through subordinate instruments to adapt to changing economic conditions and foreign exchange requirements. Notably, these regulations do not specify exclusions or thresholds but focus on the control and acquisition of foreign currency, thereby providing a structured approach to managing foreign exchange within Australia.
Key Provisions
The Banking (Foreign Exchange) Regulations 1952, as amended, primarily focus on the control and regulation of foreign exchange transactions to safeguard the currency and public credit of the Commonwealth, and to conserve foreign exchange resources. Regulation 4 redefines the term "sterling area" to include the Hashemite Kingdom of Jordan and Libya, thereby expanding the scope of countries whose currencies are considered within the sterling area. Regulation 13 modifies the acquisition of foreign currency by allowing banks to acquire foreign currency that is either fixed or authorized, indicating a more flexible approach to the types of foreign currency transactions that can be engaged in.
These regulations impose specific obligations on financial institutions, such as banks, to adhere to the newly defined scope of the sterling area and to comply with the updated requirements for acquiring foreign currency. Banks must ensure that their transactions are within the parameters set by these regulations to avoid any breaches. The amendments require banks to maintain records and reporting mechanisms that reflect their compliance with the updated definitions and acquisition guidelines.
Failure to comply with the provisions of these regulations may result in legal consequences. The Banking Act 1945, under which these regulations are made, provides for civil and criminal penalties for non-compliance. While specific penalties are not detailed in the statutory rules, the Act allows for substantial fines and, in severe cases, imprisonment for individuals or corporations found in breach of the regulations. The exact penalties would be determined by the courts based on the nature and severity of the breach.