National Security (Monetary Control) Regulations (Amendment)

Overview

The National Security (Monetary Control) Regulations 1939, made under the National Security Act 1939, were enacted to address the urgent need for monetary control during times of national crisis, specifically in the context of World War II. These regulations were introduced by the Governor-General in Council and published in the Commonwealth Gazette on 22 December 1939, reflecting the pressing need to secure national resources and maintain financial stability. The policy objective of these regulations was to ensure that gold transactions were strictly controlled and directed to authorised entities, thereby preventing hoarding and ensuring that gold resources were available for essential national purposes. The enacting body, the Governor-General in Council, empowered the Treasurer to implement these stringent controls, subject to conditions and potential delegations, to efficiently manage the national monetary situation.

Scope and Application

The National Security (Monetary Control) Regulations, as amended by Statutory Rules 1939, No. 181, are made under the National Security Act 1939 and apply to all persons within the Commonwealth of Australia. These regulations aim to control the sale, purchase, and use of gold during times of national security concerns. The primary application of these regulations is to ensure that gold is not sold or bought except through authorised channels, specifically to or from the Commonwealth Bank or its agents, or to persons specified by the Treasurer. Exemptions apply to gold coins valued up to Twenty-five pounds, wrought gold not manufactured in contravention of these regulations, and gold in possession for professional or trade purposes at the commencement of these regulations, provided such gold is registered with the Bank if required. These regulations can be further refined or extended through subordinate instruments, allowing for specific exemptions or delegations to be applied as necessary.

Key Provisions

The Regulations under the National Security Act 1939 (C1939L00181) include several key amendments and additions to the National Security (Monetary Control) Regulations. Firstly, they redefine the term "wrought gold" in regulation 2 to include gold and gold alloys that appear to have been worked or manufactured for trade purposes, along with the waste products from such activities (Regulation 1). In terms of gold transactions, Regulation 7(6) stipulates that individuals are prohibited from selling gold to anyone other than the Bank, an agent of the Bank, or a person specified by the Treasurer. Similarly, Regulation 7(7) prohibits anyone, excluding the Bank or its agents and specified persons, from buying gold from others. Persons specified by the Treasurer must comply with any instructions or directions issued by the Treasurer (Regulation 7(8)). Regulations 7(9) and 7(10) allow the purchase of gold from the Bank or its agents for professional or trade purposes, while prohibiting the working or manufacturing of gold that has not been acquired in accordance with these Regulations (Regulation 7(10)). These provisions do not apply to gold coins with a value of up to twenty-five pounds, wrought gold not worked or manufactured in contravention of these Regulations, or gold in possession for professional or trade purposes at the commencement of these Regulations, unless otherwise directed by the Treasurer (Regulation 7(11)). Exemptions or permissions under these Regulations may be granted subject to specific conditions (Regulation 9), and the Treasurer has the authority to delegate powers and functions under these Regulations, with such delegations being revocable at will (Regulation 10). The Regulations impose several obligations on the parties they govern. Individuals and entities must adhere to the provisions regarding the sale and purchase of gold, ensuring that transactions occur only with authorised parties such as the Bank or its agents, or specified persons. Those granted exemptions or permissions must comply with any conditions attached to these exemptions or permissions. Persons specified by the Treasurer must follow any instructions or directions issued by the Treasurer regarding gold transactions. Additionally, anyone in possession of gold coins or wrought gold as defined must be prepared to furnish particulars of such gold to the Bank if required by the Board. Breaches of these Regulations can lead to various civil and criminal consequences. While the specific offences and penalties are not detailed in the Regulations themselves, the overarching National Security Act 1939 likely provides for penalties for non-compliance. Generally, breaches of regulations under the National Security Act 1939 can result in fines and imprisonment, with the exact penalties varying depending on the nature and severity of the breach. The precise legal framework governing penalties would need to be consulted for detailed information on potential civil or criminal consequences.