Revocation of authority to carry on banking business 2024 – Macquarie Credit Union Limited

Overview

The Revocation of Authority to Carry on Banking Business 2024, issued on 13 May 2024 under the Banking Act 1959, revokes Macquarie Credit Union Limited’s authority to operate as a banking institution in Australia. Macquarie Credit Union Limited, with the Australian Business Number 85 087 650 253, formally requested this revocation by providing written notice to the Australian Prudential Regulation Authority (APRA). Renée Roberts, acting as a delegate of APRA, has determined that the revocation would not undermine national interests or the interests of the credit union's depositors. This revocation takes effect on the date of issuance and aligns with the policy objectives of the Banking Act 1959, which seeks to maintain the stability and integrity of the banking sector in Australia.

Scope and Application

The Revocation of Authority to Carry on Banking Business 2024 (Macquarie Credit Union Limited) revokes the authority of Macquarie Credit Union Limited, an entity with ABN 85 087 650 253, to carry on banking business in Australia. This revocation applies to the body corporate of Macquarie Credit Union Limited, which has requested the cessation of its section 9 authority to conduct banking activities as per the Banking Act 1959. The authority in question pertains to the specific operations and transactions that constitute banking business, as defined in subsection 5(1) of the Act. The revocation is effective from the date of its issuance, which is 13/05/2024, and was authorised by Renée Roberts, an Executive Director of the Banking Division and a delegate of the Australian Prudential Regulation Authority (APRA). This instrument adheres to the legislative framework set out in the Banking Act 1959, ensuring that the revocation does not compromise the national interest or the interests of depositors. The revocation is subject to the conditions stipulated by the Act, and APRA is mandated to publish the notice of revocation in the Gazette, with the possibility of additional publication methods.

Key Provisions

The primary operative section of the Revocation of Authority to Carry on Banking Business 2024 (the instrument) is section 2, which revokes the section 9 authority of Macquarie Credit Union Limited to conduct banking business in Australia. Section 2(A) of the instrument specifies that the revocation is a response to a written request from the body corporate to the Australian Prudential Regulation Authority (APRA), and section 2(B) states that Renée Roberts, a delegate of APRA, is satisfied that the revocation is not contrary to the national interest or the interests of depositors. This instrument, made on 13 May 2024, commences on the day it is made and is signed by Renée Roberts, Executive Director of the Banking Division. The obligations and requirements imposed by the Act on Macquarie Credit Union Limited include providing a written request to APRA for the revocation of its section 9 authority. Additionally, APRA is obligated to assess whether the revocation would be contrary to the national interest or the interests of depositors. Once satisfied that the revocation would not be contrary to these interests, APRA is required to publish notice of the revocation in the Gazette and may also publish notice in other ways. The Act also requires that the revocation be communicated formally, as evidenced by the instrument detailing the reasons and satisfaction of the delegate of APRA. Under the Banking Act 1959, breaches of the provisions regarding the revocation of banking authority can lead to significant penalties. While the instrument itself does not detail specific offences or penalties, the Banking Act 1959 provides a framework for potential civil and criminal consequences. For instance, unauthorised banking activities could lead to fines or imprisonment, as outlined in the Act. The maximum penalties for such offences are not explicitly stated in the instrument but would be governed by the broader provisions of the Banking Act 1959, which may include substantial fines and imprisonment terms for serious violations. The instrument also ensures that the revocation process is transparent and officially documented, thereby maintaining the integrity of the banking regulatory framework in Australia. By revoking the section 9 authority, the instrument ensures that Macquarie Credit Union Limited is no longer permitted to conduct banking business in Australia, aligning with the body corporate's request and APRA's assessment. The formal and transparent nature of the revocation process, as evidenced by the instrument, underscores the regulatory authority's commitment to protecting the interests of depositors and the national interest.