National Security (Monetary Control) Regulations

Legislation au C1939L00091 Regulations Not in force Legislative Instrument

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STATUTORY RULES.

1939. No. 91.

REGULATIONS UNDER THE NATIONAL SECURITY ACT 1939.*

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.

Dated this thirteenth day of September, 1939.

(SGD.) GOWRIE.

Governor-General.

By His Excellency’s Command,

Minister of State for Defence.

National Security (Monetary Control) Regulations.

Citation.

1. These Regulations may be cited as the National Security (Monetary Control) Regulations.

Definitions.

2. In these Regulations, unless the contrary intention appears—

“agent of the Bank” means a person appointed by the Board to be an agent of the Bank for the purposes of these Regulations;

“Australian currency” includes the currency of any Territory of the Commonwealth;

“current rate of exchange” means the rate of exchange fixed by the Board;

“foreign currency” means currency other than Australian currency and includes bills of exchange or promissory notes payable otherwise than in Australian currency;

“money” includes foreign currency:

“security” includes share, stock, bond, debenture, debenture stock and Treasury bill, but does not include bill of exchange or promissory note;

“the Bank” means the Commonwealth Bank of Australia established by the Commonwealth Bank Act 1911-1932;

“the Board” means the Board of Directors appointed in pursuance of the Commonwealth Bank Act 1911-1932.

Transfer of money out of Australia.

3.—(1.) Subject to this regulation and subject to any exemptions granted by the Treasurer by order, a person shall not, except through the Bank or an agent of the Bank and except in accordance with such conditions as the Board determines, take or send money to any place outside Australia.

(2.) A person shall not be a party to any transaction with respect to the taking or sending of money to any place outside Australia which provides for the conversion of Australian currency at a rate of exchange other than the current rate of exchange between Australia and that place.

* Notified in the Commonwealth Gazette on , 1939.

5086.—12/11.9.1939.—Price 3d.

(3.) For the purposes of this regulation, money shall be deemed to be taken or sent if it is taken or sent by telegraph or post or by means of draft, letter of credit, travellers’ cheque or transfer of account or any other means whatsoever.

(4.) Subject to this regulation and subject to any exemptions granted by the Treasurer by order, a person shall not, except with permission granted by or on behalf of the Treasurer—

(a) draw or negotiate any bill of exchange or promissory note, transfer any security or acknowledge any debt, so that a right (whether actual or contingent) to receive a payment in Australia is created or transferred as consideration—

(i) for receiving payment, or acquiring property, outside Australia; or

(ii) for a right (whether actual or contingent) to receive a payment or acquire property, outside Australia; or

(b) make any payment as such consideration.

(5.) Nothing in the foregoing provisions of this regulation shall—

(a) apply to the taking or sending of money by means of money orders; or

(b) restrict the doing of anything which is certified by or on behalf of the Treasurer to be necessary for the purpose—

(i) of meeting the reasonable requirements of a trade or business carried on in Australia;

(ii) of performing a contract made before the twenty-fifth day of August, One thousand nine hundred and thirty-nine; or

(iii) of defraying reasonable travelling or other personal expenses.

(6.) The taking or sending of money by means of money orders shall be subject to such conditions as the Treasurer determines.

Declaration by travellers.

4.—(1.) Any person who is about to leave Australia (in this regulation referred to as “the traveller”) shall if requested so to do by an officer—

(a) declare whether or not he has with him any money; and

(b) produce any money which he has with him.

(2.) The officer and any person acting under his directions may search the traveller and examine or search any article which the traveller has with him, for the purpose of ascertaining whether he has with him any money, and may seize any money produced or found upon such examination or search unless the officer is satisfied that the traveller has not the money with him in contravention of these Regulations:

Provided that no female shall be searched in pursuance of this sub-regulation except by a female.

(3.) With respect to any goods consigned from Australia to a place outside Australia, an officer and any person acting under his directions may examine or search the goods for the purpose of ascertaining whether any money is being sent therewith, and may seize any money found upon such examination or search which in the opinion of the officer, is being sent in contravention of these Regulations.

(4.) For the purposes of this regulation, the term “officer” means officer of Customs, immigration officer or constable and includes any person thereto authorized by the Treasurer.

Acquisition by Treasurer of certain foreign currency.

5.—(1.) Subject to any exemptions granted by the Treasurer by order, a person resident in Australia who has power to sell, or to procure the sale of, any foreign currency, shall, unless the Treasurer or a person thereto authorized by the Treasurer gives him notice to the contrary, sell it, or cause it to be sold, to the Treasurer, or to a person thereto authorized by the Treasurer, at such price as is mutually agreed, or in default of agreement, as is determined by an action for compensation by the person first-mentioned against the Commonwealth.

(2.) Subject to any exemptions granted by the Treasurer by order, a person resident in Australia, who has power to assign, or to procure the assignment of, any right to receive outside Australia, in respect of any credit or balance at a bank, payment of any amount in a foreign currency, shall, unless the Treasurer or a person thereto authorized by the Treasurer gives him notice to the contrary, do all things necessary for the purpose of assigning that right to the Treasurer or a person thereto authorized by the Treasurer.

(3.) When an assignment is made in accordance with sub-regulation (2.) of this regulation, such consideration shall be payable for the assignment as is mutually agreed or, in default of agreement, as is determined by action by the person first-mentioned in that sub-regulation against the Commonwealth.

(4.) An action for compensation under this regulation may be instituted in the High Court or in the Supreme Court of a State or Territory of the Commonwealth, and, subject to the following provisions, the action shall be heard and determined in the same manner as ordinary actions:—

(a) the action shall be tried without a jury;

(b) the Court shall not direct a reference to arbitration unless by consent of parties; and

Agents of Bank.

6.—(1.) The Board may appoint any person to be the agent of the Bank for the purposes of these Regulations.

(2.) Any person appointed to be an agent of the Bank shall carry out his duties as agent in accordance with, and shall comply with, such instructions, directions and requirements as are issued or made by the Board.

(3.) The Board may revoke the appointment of any agent of the Bank under these Regulations.

Delivery of gold to Bank.

7.—(1.) Subject to this regulation and subject to any exemptions granted by the Treasurer by order, any person who has any gold in his possession or control shall deliver the gold to the Bank or an agent of the Bank—

(a) if the gold is in his possession or control at the commencement of these Regulations—within one month after such commencement; or

(b) if the gold has come into his possession or control after the commencement of these Regulations—within one month after it has come into his possession or control.

(2.) If any person fails to comply with the requirements of sub-regulation (1.) of this regulation, the gold in respect of which the failure occurs shall be forfeited to the Crown.

(3.) Any person thereto authorized by the Treasurer in writing may seize any gold which is forfeited or which he has reasonable cause to suspect is forfeited under these Regulations, and for that purpose may without warrant enter, if need be by force, and search any place or premises.

(4.) All gold delivered to the Bank or an agent of the Bank in accordance with this regulation shall vest in the Bank absolutely and all the right, title and interest of the person delivering the gold shall be taken to have been converted into a right to receive payment for the gold at such price as is fixed by the Board and published in such manner as the Treasurer approves.

(5.) The price of gold fixed by the Board shall be based on the price of gold in London at the time when the price is fixed.

(6.) Unless and until the Treasurer otherwise directs by notice published in the Gazette, this regulation shall not apply to gold coins (the total value of which does not exceed Twenty-five pounds), or to wrought gold, or to gold in the possession of any person for the purpose of being worked or manufactured for professional or trade purposes:

Provided that any person who is in possession of any such gold coins or gold shall, if required by the Board, furnish to the Bank particulars (including the value) thereof.

Bank to obtain information.

8.—(1.) The Board may by notice in writing require any person, including any officer employed in or in connexion with any department of a Government, or by any public authority—

(a) to furnish the Board with such information with respect to the taking or sending of money outside Australia or the possession of foreign currency or gold, by himself or any other person, as it requires; and

(b) to attend and give evidence before the Board or an officer of the Bank thereto authorized by the Board concerning his or any other person’s taking or sending of money outside Australia or the possession of foreign currency or gold by himself or any other person, and may require him to produce all books, documents and other papers whatever in his custody or under his control relating thereto.

(2.) The Board may require the information or evidence to be given on oath or affirmation and either verbally or in writing, and for that purpose the Board or an officer so authorized may administer an oath.

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

Overview

The National Security (Monetary Control) Regulations 1939 were enacted by the Governor-General in accordance with the advice of the Federal Executive Council under the authority of the National Security Act 1939. The regulations were introduced in response to the urgent need to control monetary transactions and prevent the outflow of Australian currency during a period of national crisis, specifically the Second World War. The policy objective of these regulations is to tightly regulate the transfer of money, foreign currency, and gold out of Australia, ensuring that such transactions are conducted through authorised channels and under strict conditions set by the Board of the Commonwealth Bank of Australia. This control mechanism aims to safeguard Australia's monetary stability and prevent the depletion of its financial resources during a critical time for national security. The regulations establish comprehensive measures to oversee the movement of money and valuable assets outside Australia, including stringent requirements for the reporting, transfer, and conversion of currency, as well as the acquisition and possession of gold. By mandating that all such transactions are conducted through the Commonwealth Bank or its appointed agents, the regulations ensure that the Treasurer has oversight and control over these activities. Additionally, the regulations impose significant penalties for non-compliance, including the forfeiture of assets and potential criminal sanctions, underscoring the gravity of the measures and the importance of adhering to the prescribed procedures.

Scope and Application

The National Security (Monetary Control) Regulations, made under the National Security Act 1939, primarily apply to individuals and entities within Australia, aiming to control monetary transactions and the transfer of money outside the country. These Regulations mandate that any person intending to take or send money out of Australia must do so through the Commonwealth Bank of Australia or its designated agents, subject to specific conditions set by the Board. Additionally, the Regulations prohibit certain financial transactions that involve currency conversion at rates other than the officially recognised exchange rate. Exemptions from these provisions can be granted by the Treasurer, provided they align with specific criteria such as meeting the reasonable requirements of a trade or business, fulfilling pre-existing contractual obligations, or covering reasonable travel and personal expenses. Furthermore, the Regulations impose stringent measures on the movement of gold, requiring its delivery to the Bank within a month of acquisition, with certain exemptions for small-value gold coins and gold intended for professional or trade use. The Regulations also empower the Board to request information and evidence from individuals and entities regarding their financial activities, including the possession and transfer of foreign currency or gold, and allow for the seizure of such assets if deemed necessary. These measures collectively serve to reinforce Australia's national security objectives during a period of heightened global tensions.

Key Provisions

The National Security (Monetary Control) Regulations primarily regulate the transfer of money and certain valuables out of Australia, with a focus on ensuring that such movements are conducted through approved channels and in accordance with set conditions. Specifically, Regulation 3(1) mandates that any transfer of money outside Australia must be conducted through the Commonwealth Bank of Australia or its agents, subject to any conditions set by the Board of Directors of the Bank. Exceptions to this rule are possible, but must be granted by the Treasurer. Additionally, Regulation 3(2) prohibits the conversion of Australian currency at rates other than the current rate of exchange set by the Board. Regulations also require that individuals declare any money they are carrying when leaving Australia and may be subject to searches by authorised officers to ensure compliance (Regulation 4). Exemptions from these requirements may be granted by the Treasurer under certain conditions, such as meeting reasonable business needs or pre-existing contractual obligations. These Regulations impose a number of obligations on the parties they govern. Most prominently, they require individuals and businesses to adhere to strict protocols when transferring money out of Australia, including the necessity to use authorised channels such as the Commonwealth Bank or its agents (Regulation 3). Furthermore, the Regulations require individuals to declare any money they are carrying when leaving the country and to submit to searches by authorised officers (Regulation 4). Additionally, residents with foreign currency or rights to receive foreign currency must sell these to the Treasurer or an authorised person unless exempted by the Treasurer (Regulation 5). These obligations are designed to prevent the unauthorised movement of money and valuables out of the country and to ensure that such movements are conducted in accordance with national security requirements. Failure to comply with the provisions of these Regulations can result in significant penalties. Firstly, the unauthorised transfer of money outside Australia can result in the forfeiture of the money involved (Regulation 3). Additionally, individuals who fail to declare money they are carrying when leaving Australia can be subject to fines and other penalties (Regulation 4). Furthermore, failure to sell foreign currency or rights to receive foreign currency to the Treasurer can also result in penalties (Regulation 5). The specific penalties for these offences are not outlined in the Regulations themselves, but can be expected to be significant given the national security context in which they operate.

Area of Law: National Security Law
Instrument: Regulation
Concepts: Definitions & Interpretation; Enforcement Powers; Compliance Obligations

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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.

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