Banking (Foreign Exchange) Regulations (Amendment)

Administered by Department of the Treasury

Legislation au F1996B01492 Regulations Not in force Legislative Instrument

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Statutory Rules

1974 No. 265

REGULATIONS UNDER THE BANKING ACT 1959-1974.*

WHEREAS the Banking (Foreign Exchange) Regulations made under the Banking Act 1945-1953 were, by virtue of section 29 of the Banking (Transitional Provisions) Act 1959 and an instrument under that section published in the Gazette on 14 January 1960, continued in force notwithstanding the repeal made by the Banking Act 1959 and were amended as provided by that section:

AND WHEREAS those Regulations as so continued in force and amended were again continued in force by virtue of section 4 of the Banking Act 1974 notwithstanding the repeal of section 39 of the Banking Act 1959-1973 made by the Banking Act 1974:

AND WHEREAS, by section 4 of the Banking Act 1974, those Regulations as continued in force by that section may be amended or repealed by regulations under section 39 of the Banking Act 1959-1974:

AND WHEREAS, by section 39 of the Banking Act 1959-1974, it is provided that, where the Governor-General considers it expedient to do so for purposes related to—

(a) foreign exchange or the foreign exchange resources of Australia;

(b) the protection of the currency or the protection of the public credit or revenue of Australia; or

(c) foreign investment in Australia, Australian investment outside Australia, foreign ownership or control of property in Australia or of Australian property outside Australia or Australian ownership or control of property outside Australia or of foreign property in Australia,

he may make regulations, not inconsistent with that Act, in accordance with that section:

AND WHEREAS I, the Governor-General of Australia, acting with the advice of the Executive Council, consider it expedient, for purposes related to the matters specified in paragraphs 39 (1) (a), (b) and (c) of the Banking Act 1959-1974, to make the following Regulations:

NOW THEREFORE I, the Governor-General, acting with the advice of the Executive Council, hereby make the following Regulations under the Banking Act 1959-1974.

Dated this nineteenth day of December, 1974.

JOHN R KERR

Governor-General.

By His Excellency’s Command,

J. F. CAIRNS

Treasurer.

 

* Notified in the Australian Government Gazette on 23 December 1974.


Amendments of the Banking (Foreign Exchange) Regulations*

Commencement.

1. These Regulations shall come into operation on the date fixed under section 2 of the Banking Act 1974.

Definitions.

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

(a) by omitting the definition of “foreign securities”; and

(b) by adding at the end thereof the following sub-regulation:—

“(2) For the purposes of the definition of ‘foreign securities’ in sub-section 39 (8) of the Act, the following classes of securities or property are foreign securities:—

(a) securities the principal of or interest from which is repayable or payable in any country outside Australia or in any money other than Australian money;

(b) securities the funds necessary for the repayment or payment of the principal of or interest from which are provided from any country outside Australia;

(c) securities that are registered outside Australia;

(d) securities that are situated outside Australia;

(e) debts or moneys due or accruing due to a person in Australia by a person in a country outside Australia;

(f) rights to receive payment of moneys in a country outside Australia; and

(g) rights to receive payment of moneys of a country outside Australia.”.

Control of purchase, &c., of foreign currency.

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

(a) by omitting sub-regulations (1) and (2) and substituting the following sub-regulations:—

“(1) Subject to sub-regulation (3), except with the authority of the Bank—

(a) a person shall not, either on his own behalf or on behalf of another person, buy, borrow, sell, lend or exchange in Australia, or otherwise deal in Australia with, foreign currency; and

(b) a resident, or a person acting on behalf of a resident, shall not buy, borrow, sell, lend or exchange outside Australia, or otherwise deal outside Australia with, foreign currency.

“(2) Subject to sub-regulation (3), except with the authority of the Bank, a person shall not be a party to a transaction that has the effect of or involves a purchase, borrowing, sale, loan or exchange of, or that otherwise relates to, foreign currency, being a transaction that takes place in whole or in part in Australia or to which a resident is a party.”; and

(b) by adding at the end thereof the following sub-regulations:—

“(7) For the purposes of this regulation—

(a) where a body corporate that is not a resident has a place of business in Australia, the body corporate shall be deemed to be a resident in relation to the affairs of the

 

* 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, Nos. 56 and 97.


body corporate conducted by the body corporate at or through that place of business, including any business carried on, transactions entered into and acts and things done by the body corporate at or through that place of business; and

(b) where a body corporate that is a resident has a place of business outside Australia, the body corporate shall be deemed not to be a resident in relation to the affairs of the body corporate conducted by the body corporate at or through that place of business, including any business carried on, transactions entered into and acts and things done by the body corporate at or through that place of business.

“(8) In this regulation, ‘person’ or ‘resident’ does not include the Bank.”.

Control of money orders.

4. Regulation 7 of the Banking (Foreign Exchange) Regulations is amended—

(a) by omitting paragraph (a) of sub-regulation (2) and substituting the following paragraph:—

“(a) to a person who is not a resident;”;

(b) by omitting from sub-regulation (3) the words “person permanently resident out of Australia” (wherever occurring) and substituting the words “person who is not a resident”; and

(c) by omitting sub-regulation (6).

Control of certain payments and transactions.

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

(a) by omitting paragraph (a) of sub-regulation (1) and substituting the following paragraph:—

“(a) make any payment in Australia to, by the order of, or on behalf of, a person who is not a resident or place any sum in Australia to the credit of any such person;”;

(b) by omitting from paragraph (c) of sub-regulation (1) the words “person resident out of Australia” and substituting the words “person who is not a resident”;

(c) by omitting from paragraph (d) of sub-regulation (1) the words “person resident out of Australia” and substituting the words “person who is not a resident”;

(d) by omitting from sub-regulation (2) the words “person not resident out of Australia” and substituting the word “resident”;

(e) by omitting from sub-regulation (3) the words “person not resident out of Australia” (wherever occurring) and substituting the word “resident”; and

(f) by omitting paragraphs (a) and (b) of sub-regulation (4) and substituting the following paragraphs:—

“(a) where a body corporate that is not a resident has a place of business in Australia, the body corporate shall be deemed to be a resident in relation to the affairs of the body corporate conducted by the body corporate at or through that place of business, including any business carried on, transactions entered into and acts and things done by the body corporate at or through that place of business;


“(b) where a body corporate that is a resident has a place of business outside Australia, the body corporate shall be deemed not to be a resident in relation to the affairs of the body corporate conducted by the body corporate at or through that place of business, including any business carried on, transactions entered into and acts and things done by the body corporate at or through that place of business.”.

Control of certain transfers, &c., of property.

6. Regulation 9 of the Banking (Foreign Exchange) Regulations is amended—

(a) by inserting in sub-regulation (1) after the word “land” the words “that is in Australia”;

(b) by omitting from sub-regulation (1) the words “person resident out of Australia” (wherever occurring) and substituting the words “person who is not a resident”;

(c) by omitting from sub-regulation (2) the words “person resident out of Australia” and substituting the words “person who is not a resident”;

(d) by omitting sub-regulations (3) and (4); and

(e) by omitting paragraph (a) of sub-regulation (5).

Special provisions for making certain payments.

7. Regulation 11 of the Banking (Foreign Exchange) Regulations is amended by omitting sub-regulation (6).

8. Regulation 34 of the Banking (Foreign Exchange) Regulations is repealed and the following regulation substituted:—

Control of foreign securities.

“34. (1) Subject to sub-regulation (2), except with the authority of the Bank—

(a) a person shall not, either on his own behalf or on behalf of another person buy, borrow, sell, lend or exchange, or otherwise deal with, foreign securities that are in Australia; and

(b) a resident, or a person acting on behalf of a resident, shall not buy, borrow, sell, lend or exchange, or otherwise deal with, foreign securities that are outside Australia.

“(2) Sub-regulation (1) does not apply to the acquisition of foreign securities otherwise than for valuable consideration.

“(3) For the purposes of this regulation—

(a) where a body corporate that is not a resident has a place of business in Australia, the body corporate shall be deemed to be a resident in relation to the affairs of the body corporate conducted by the body corporate at or through that place of business, including any business carried on, transactions entered into and acts and things done by the body corporate at or through that place of business; and

(b) where a body corporate that is a resident has a place of business outside Australia, the body corporate shall be deemed not to be a resident in relation to the affairs of the body corporate conducted by the body corporate at or through that place of business, including any business carried on, transactions entered into and acts and things done by the body corporate at or through that place of business.

“(4) In this regulation, ‘person’ does not include the Bank or an agent of the Bank.”.


Power to obtain information.

9. Regulation 37 of the Banking (Foreign Exchange) Regulations is repealed.

Authority of Bank.

10. Regulation 39 of the Banking (Foreign Exchange) Regulations is amended by omitting from sub-regulation (1) all words from and including the words “for the protection of the currency” and substituting the words “for a purpose in relation to which these Regulations make provision”.

False statements.

11. Regulation 40 of the Banking (Foreign Exchange) Regulations is amended by omitting paragraph (a).

Offences.

12. Regulation 42 of the Banking (Foreign Exchange) Regulations is amended by omitting from sub-regulation (1) the words “Ten thousand dollars” and substituting the words “One hundred thousand dollars”.

13. Regulation 43 of the Banking (Foreign Exchange) Regulations is repealed and the following regulation substituted:—

Property obtained in contravention of Regulations.

“43. (1) Where a person has been convicted by a court of an offence against these Regulations, the court may, if it thinks fit, order the disposal in accordance with the directions of the Bank of any Australian currency, foreign currency, goods or other property in respect of which the offence was committed that the person is entitled to sell or of which he is entitled to procure the sale.

“(2) A person who is ordered by a court under sub-regulation (1) to dispose of property shall comply with that order.”.

14. The Banking (Foreign Exchange) Regulations are amended by adding at the end thereof the following regulation:—

Validation.

“45. No act or thing done, or contract or other transaction entered into, is invalid or unenforceable by reason only that the provisions of these Regulations have not been complied with.”.

Overview

The Banking (Foreign Exchange) Regulations 1974 were introduced under the Banking Act 1959-1974, enacted by the Parliament of Australia, to address issues related to foreign exchange, the protection of the currency, public credit, revenue, foreign investment, and Australian investment abroad. These regulations were established to provide the Governor-General with the authority to implement measures necessary for these purposes. The primary objective of these regulations is to control and regulate activities involving foreign currency and foreign securities, ensuring compliance with national economic policies and safeguarding Australia's financial stability. Enacted by the Governor-General, acting on the advice of the Executive Council, these regulations came into effect on the date specified under section 2 of the Banking Act 1974.

Scope and Application

The Banking (Foreign Exchange) Regulations, made under the Banking Act 1959-1974, apply to all persons and entities engaged in transactions involving foreign currency and foreign securities within or outside Australia. The scope of these regulations is extensive, covering any dealings in foreign currency or foreign securities unless authorised by the Commonwealth Bank of Australia. The regulations are designed to control and regulate activities related to foreign exchange and foreign securities to protect Australia's currency, public credit, and revenue, and to manage foreign investment and ownership within Australia. These regulations extend their jurisdiction to include residents and non-residents alike, with specific provisions for body corporates conducting business through Australian or overseas places of business. Notably, the regulations provide exceptions for certain acquisitions of foreign securities not made for valuable consideration and clarify that non-compliance with these regulations does not inherently render any act, thing, contract, or transaction invalid or unenforceable.

Key Provisions

The main operative sections of the Banking (Foreign Exchange) Regulations pertain to the control of foreign currency and securities, with particular attention to transactions involving non-residents and the requirement for authorisation from the relevant authority. For example, Regulation 3 outlines the prohibitions on the buying, selling, or exchanging of foreign currency in Australia or by Australian residents abroad without proper authorisation (Regulation 3(1)). Similarly, Regulation 34 details the restrictions on dealing with foreign securities within or outside Australia without authorisation (Regulation 34(1)). These regulations also provide specific definitions to clarify the scope of their application, such as the definition of 'foreign securities' in Regulation 2 and the conditions under which a non-resident body corporate is deemed to be a resident (Regulation 3(7) and (8)). The obligations imposed by these Regulations on the parties they govern include the necessity to seek and obtain authorisation from the relevant authority for specific transactions involving foreign currency or securities. Non-residents and residents of Australia conducting certain financial transactions must ensure compliance with these Regulations. For instance, Regulation 3(2) mandates that residents or persons acting on behalf of residents must not engage in foreign currency transactions outside Australia without authorisation. Similarly, Regulation 34(2) specifies that residents or persons acting on behalf of residents must not engage in transactions involving foreign securities outside Australia without authorisation. The Regulations also detail the penalties and consequences for breaches. Regulation 42(1) specifies that the penalty for offences against these Regulations is increased to a maximum fine of One hundred thousand dollars (Regulation 42(1)). Regulation 43(1) further outlines that courts may order the disposal of any property obtained in contravention of these Regulations in accordance with the directions of the Bank, and Regulation 43(2) mandates that individuals must comply with such orders. Additionally, Regulation 45 ensures that the invalidity of any act or transaction due to non-compliance with these Regulations does not render it unenforceable, providing some flexibility in certain situations.

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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.