National Security (Exchange Control) Regulations (Amendment)

Legislation au C1941L00206 Regulations Not in force Legislative Instrument

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STATUTORY RULES.

1941. No. 206.

 

REGULATIONS UNDER THE NATIONAL SECURITY ACT 1939-1940.*

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 the National Security Act 1939-1940.

Dated this twenty-first day of August, 1941.

GOWRIE

Governor-General.

By His Excellency’s Command,

A. FADDEN

for and on behalf of the Minister of State for Defence Co-ordination.

 

Amendments of the National Security (Exchange Control) Regulations.†

Definition.

1. Regulation 6 of the National Security (Exchange Control) Regulations is amended by omitting from the definition of “sterling area” the words “(except Canada, Newfoundland and Hong Kong)” and inserting in their stead the words “(except Canada and Newfoundland)”.

Control of certain payments and transactions.

2. Regulation 10 of the National Security (Exchange Control) Regulations is amended—

(a) by inserting in paragraph (c) of sub-regulation (1.), after the word “note”, the words “, enter into any contract or agreement (not being a contract or agreement for the purchase of goods)”; and

(b) by inserting in paragraph (b) of sub-regulation (3.), after the word “note”, the words “, enter into any contract or agreement (not being a contract or agreement for the purchase of goods)”.

 

* Notified in the Commonwealth Gazette on 21st August, 1941.

† Statutory Rules 1940, No. 282, as amended by Statutory Rules 1941, Nos. 48, 96 and 128.

5206.—Price 3d.


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

3. Regulation 10a of the National Security (Exchange Control) Regulations is amended by omitting from sub-regulation (3.) the words “or transfer” and inserting in their words “, transfer, mortgage or charge”.

4. Regulation 12 of the National Security (Exchange Control) Regulations is repealed and the following regulation inserted in its stead:—

Blocked accounts.

“12.—(1.) In this regulation—

‘blocked account’ means—

(a) an account opened, whether before or after the commencement of this regulation, as a blocked account with the Bank or an agent of the Bank; and

(b) an existing account with the Bank or an agent of the Bank declared, whether before or after the commencement of this regulation, by the Bank to be a blocked account,

but does not include any such account which the Bank declares shall cease to be a blocked account;

‘the banker’, in relation to any person, means the Bank, or an agent of the Bank, which opens a blocked account in favour of that person, or which maintains for that person an account declared by the Bank to be a blocked account.

“(2.) A person shall not, except with the consent in writing of the Treasurer or except with the authority of the Bank—

(a) make any payment out of, or be a party to any transaction having the effect of making a payment out of, a blocked account; or

(b) assign or charge any moneys standing to the credit of a blocked account.

“(3.) Notwithstanding the provisions of the last preceding sub-regulation, the banker may transfer a blocked account to the name of the official receiver, trustee in bankruptcy, or personal representative, in Australia, of the person in whose favour the blocked account was opened.

“(4.) Except as provided in the last preceding sub-regulation, or except with the consent in writing of the Treasurer, no change shall be made in the name in which a blocked account stands, and, where any such change is made (whether or not the consent of the Treasurer is necessary therefor) then, notwithstanding the change, the blocked amount shall remain a blocked account and the provisions of this regulation shall apply accordingly.

“(5.) Where the payment to any person of any sum is permitted under regulation 10 of these Regulations subject to a condition that the payment shall be made to a blocked account—

(a) the payment may be made either—

(i) to the banker with a direction that it shall be credited to a blocked account of that person, which direction may, in the case of a payment by means of a cheque or warrant, be made by marking the cheque or warrant with the words ‘Blocked account of (naming the person in question)’ or words to the like effect; or


(ii) by a crossed cheque or warrant drawn in favour of that person marked with the words ‘Payable only to blocked account of payee’ or words to the like effect;

(b) the amount received shall be credited by the banker to a blocked account of that person; and

(c) the crediting of that amount to that account shall, to the extent of the amount credited, be a good discharge to the person making the payment.

“(6.) Where—

(а) a payment is due from any person to any other person, but, under regulation 10 of these Regulations, the payment cannot lawfully be made except with the consent of the Treasurer;

(b) that consent is granted subject to the condition that the payment shall be made to the Bank, or to an agent of the Bank, for credit to a blocked account; and

(c) the person to whom the payment is due nominates a blocked account to the person by whom the payment is due,

the person by whom the payment is due shall be under an obligation to the person to whom the payment is due to make the payment accordingly.”.

 

By Authority: L. F. Johnston, Commonwealth Government Printer, Canberra.

Overview

The Statutory Rules 1941 No. 206, titled "Regulations Under the National Security Act 1939-1940," were enacted to address the urgent financial and economic measures required during wartime to maintain national security. These regulations were introduced by the Governor-General in Council under the authority of the National Security Act 1939-1940, aiming to ensure that financial transactions are controlled and monitored to prevent any adverse effects on national security. The regulations primarily focus on amendments to the National Security (Exchange Control) Regulations to tighten controls on certain payments, transactions, and property transfers, reflecting the heightened need for economic oversight during wartime. The policy objective is to maintain strict control over foreign exchange and financial transactions to safeguard national interests.

Scope and Application

The Statutory Rules 1941 No. 206, Regulations under the National Security Act 1939-1940, apply to all persons and entities within the Commonwealth of Australia. These regulations primarily govern exchange control measures and transactions to ensure national security during the period of World War II. The scope of these regulations includes the control of specific payments, transactions, and transfers of property that may impact Australia's economic stability or national security. Notably, the regulations allow for the definition of blocked accounts and the conditions under which payments can be made to or from these accounts, with explicit exceptions and requirements for consent or authority from the Treasurer or the Commonwealth Bank. The amendments to the National Security (Exchange Control) Regulations also address modifications to the sterling area definition and include provisions that restrict entering into contracts or agreements, except for the purchase of goods. Subordinate instruments may further extend or restrict the application of these regulations as deemed necessary by the relevant authorities.

Key Provisions

The Regulations under the National Security Act 1939-1940, specifically Statutory Rules 1941, No. 206, introduce significant amendments to the National Security (Exchange Control) Regulations. Firstly, Regulation 6 amends the definition of “sterling area” by excluding Hong Kong from the list of exceptions, thereby modifying the scope of regions subject to specific exchange control measures (Reg. 1). Secondly, Regulation 10 is amended to prohibit the entering into of contracts or agreements, excluding those for the purchase of goods, without proper authorization (Reg. 2). Additionally, Regulation 10a is altered to include transfers, mortgages, and charges in the list of controlled transactions (Reg. 3). Regulation 12, which addresses blocked accounts, is repealed and replaced with new provisions that define “blocked account” and restrict transactions from such accounts without written consent from the Treasurer or authority from the Bank (Reg. 4). Under these Regulations, several obligations are imposed on parties and entities. Firstly, entities must seek written consent from the Treasurer or obtain authority from the Bank before making payments from blocked accounts or assigning or charging moneys in such accounts (Reg. 4(2)). Secondly, the Regulations mandate that any change in the name on a blocked account is prohibited without explicit consent from the Treasurer, with specific exceptions for transfers to insolvency practitioners (Reg. 4(3)-(4)). Thirdly, payments intended for blocked accounts must adhere to specified conditions, such as being directed to the Bank or an agent with explicit notations (Reg. 4(5)). The Regulations also outline potential penalties for non-compliance. Violators of the provisions regarding blocked accounts, such as unauthorized transactions or changes in account names, may face severe consequences. Although specific penalties are not detailed within these Regulations, breaches of the National Security Act 1939-1940 generally carry significant fines and imprisonment, reflecting the gravity of national security matters. The exact penalties for violations would be determined in accordance with the broader legislative framework of the Act.

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National Security Law
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Definitions & Interpretation
Reporting & Disclosure Obligations
Control of Transactions
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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.