STATUTORY RULES.
1943. No. 159.
REGULATION 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 Regulation under the National Security Act 1939-1940.
Dated this eighth day of June, 1943.
GOWRIE
Governor-General.
By His Excellency’s Command,
H. P. LAZZARINI
for and on behalf of the Minister of State for Defence.
Amendment of the National Security (War Contributions) Regulations.†
Banks to supply information as to certain accounts.
Regulation 21 of the National Security (War Contributions) Regulations is amended—
(a) by omitting the ward “Whenever” and inserting in its stead the words “—(1.) Subject to the next succeeding sub-regulation, whenever”; and
(b) by adding at the end thereof the following sub-regulation:—
“(2.) Where the Commission is satisfied that adequate measures are being taken by a bank to prevent the opening of accounts in respect of war funds—
(a) which have been established without approval under regulation 7 of these Regulations; or
* Notified in the Commonwealth Gazette on 10th June, 1943.
† Statutory Rules 1941, No. 92, as amended by Statutory Rules 1941 Nos. 227 and 269; and 1942, No. 485.
2920.—Price 3d.
(b) by persons who are not lawfully authorized to open the accounts,
the Commission may give notice in writing to the bank that it shall not be necessary for the bank to notify the fact that an account has been opened with the bank under a name indicating that the account is in respect of a war fund and, so long as the notice continues in force, it shall not be necessary for the bank to notify that fact accordingly.”.
By Authority: L. F. Johnston, Commonwealth Government Printer, Canberra.
Overview
The Statutory Rules 1943 No. 159, enacted under the National Security Act 1939-1940, addresses the need for tighter controls over financial transactions related to war funds during World War II. This regulation was introduced to prevent the opening of unauthorised accounts by banks, ensuring that only approved war funds could be established and managed. The enactment of this regulation was overseen by the Governor-General in Council, with the authority to make the regulation granted by the Federal Executive Council. The policy objective of this regulation is to maintain strict oversight of financial activities related to war efforts, thereby preventing any misuse or unauthorised handling of funds during a critical period of national security.
Scope and Application
The National Security (War Contributions) Regulations 1943, as amended, apply to banks within the Commonwealth of Australia and pertain specifically to the disclosure of information regarding accounts established for war contributions. These regulations mandate that banks provide certain information to the Commission when accounts are opened for war funds, unless the Commission determines that adequate measures are in place to prevent the opening of such accounts by unauthorised individuals or without proper approval. The application of these regulations is confined to the Commonwealth and extends to all banks operating within Australia, imposing obligations on these financial institutions to report on accounts linked to war contributions, with specific allowances made if the Commission is satisfied with the bank's preventative measures. The exclusion from notification requirements is contingent on the bank's compliance with stipulated conditions, and the regulations are subject to further specification and enforcement through subordinate instruments issued under the authority of the National Security Act 1939-1940.
Key Provisions
The main operative sections of these regulations pertain to the amendment of Regulation 21 of the National Security (War Contributions) Regulations. Specifically, Regulation 21(1) is amended to clarify the circumstances under which banks are required to notify the Commission of accounts opened in respect of war funds. Regulation 21(2) introduces a new sub-regulation providing that if the Commission is satisfied that a bank is taking adequate measures to prevent the opening of unauthorised war fund accounts, it may notify the bank that it need not report accounts opened under a name indicating they are for war funds, provided this notice remains in effect. This amendment aims to streamline the reporting process for banks while ensuring that only authorised accounts are opened.
The obligations imposed by these regulations on the banks are primarily concerned with the prevention of unauthorised war fund accounts. Banks must ensure that they have adequate measures in place to prevent the opening of such accounts. These measures must be satisfactory to the Commission, which has the discretion to determine whether a bank's efforts are sufficient. Additionally, if a bank receives a notice from the Commission under Regulation 21(2), it must comply with the notice and refrain from notifying the Commission of accounts opened under names indicating they are for war funds, so long as the notice remains in force.
Failure to comply with these regulations can lead to civil and criminal consequences. While specific offences and penalties are not detailed in the provided text, the National Security Act 1939-1940 under which these regulations are made, may include provisions for penalties. Such penalties could potentially include fines or other sanctions for non-compliance with the regulatory requirements. The severity of the penalties would depend on the specific breach and the provisions of the overarching Act. The regulations aim to ensure that war funds are managed through authorised channels, thereby maintaining the integrity and security of the financial contributions intended for national security purposes.