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Banking Regulations 1966

Authoritative Version
SR 1966 No. 157 Regulations as amended, taking into account amendments up to Banking Sector Legislation Amendment Regulation 2012 (No. 1)
Principal Regulations
Administered by: Treasury
Registered 20 Dec 2012
Start Date 12 Dec 2012
End Date 18 Feb 2013
Date of repeal 13 Dec 2016
Repealed by Banking Regulation 2016

Banking Regulations 1966

Statutory Rules 1966 No. 157 as amended

made under the

This compilation was prepared on 12 December 2012
taking into account amendments up to SLI 2012 No. 319

 Prepared by the Office of Parliamentary Counsel, Canberra

 


Contents

Part 1                          Preliminary

                        1      Name of Regulations [see Note 1]                                    3

                        2      Interpretation                                                                   3

                        3      Banking business: purchased payment facilities               5

                        4      Banking business: credit card issuing and acquiring         6

Part 2                          Financial claims scheme

                    4AA      Support that is not external support                                 7

                      4A      Clearance period                                                             7

                        5      Financial claims scheme — limit on payments                  7

                        6      Payment of entitlements to certain kinds of accounts by APRA        8

                        7      Recovery of overpayments                                              8

                        8      Liquidator must admit debt or claim                                 9

                        9      Payment of distributions to certain kinds of accounts by liquidator   9

                       10      Disclosure of information by APRA or liquidator to ADI regarding establishment of account  9

Part 7                          Miscellaneous

                       20      Unclaimed moneys—specified accounts and conditions 11

                       21      Unclaimed moneys—deposits to which subsections 69(1) and (1A) of the Act do not apply   13

Notes                                                                                                          14

 


Part 1                 Preliminary

  

1              Name of Regulations [see Note 1]

                These Regulations are the Banking Regulations 1966.

2              Interpretation

         (1)   In these Regulations:

Act means the Banking Act 1959.

constitutional corporation means a corporation to which paragraph 51 (xx) of the Constitution applies.

credit card acquiring has the meaning given by subregulation (2).

credit card issuing has the meaning given by subregulation (2).

credit card transaction means the purchasing of goods or services from a merchant on credit using a credit card.

farm management deposit has the meaning given by section 393-25 of Schedule 2G to the Income Tax Assessment Act 1936.

first home saver account means an account:

                (a)    within the meaning of section 8 of the First Home Saver Accounts Act 2008; and

               (b)    that is provided by an ADI.

holder of the stored value, in relation to a purchased payment facility, has the meaning given by the Payment Systems Act.

limit means the amount worked out under subregulation 5 (1).

merchant means a person who provides goods or services to another person and accepts payment for the goods or services by credit card.

participant, in a payment system that is a credit card scheme, means a constitutional corporation that is a participant in the system in accordance with the rules governing the operation of the system.

Note   This definition is similar to paragraph (a) of the definition of participant in the Payment Systems Act.

payment system has the meaning given by the Payment Systems Act.

Payment Systems Act means the Payment Systems (Regulation) Act 1998.

purchased payment facility has the meaning given by the Payment Systems Act.

retirement savings account means an account:

                (a)    within the meaning of subsection 8 (1) of the Retirement Savings Accounts Act 1997; and

               (b)    that is provided by an ADI.

total category 1 deposits means the amount worked out under subregulation 5 (2).

total category 2 deposits means the amount worked out under subregulation 5 (3).

         (2)   For these Regulations, an action of a person in the course of participation in a payment system that is a credit card scheme is:

                (a)    credit card acquiring if the person pays, or accepts liability to pay, a merchant (either directly or through another person) for goods or services obtained, or to be obtained, by another person from the merchant in a credit card transaction; and

               (b)    credit card issuing if the person issues a credit card to another person (a customer) and:

                          (i)    receives payments from the customer for amounts owed by the customer, under the terms governing the credit card, for credit card transactions; or

                         (ii)    pays, or accepts liability to pay, a credit card acquirer (either directly or through another person) for amounts paid or payable by the acquirer to a merchant for the customer’s credit card transactions.

         (3)   Use the table to work out whether an amount held by an account-holder with a declared ADI is a category 1 deposit or a category 2 deposit.

Item

This amount ...

is ...

Before 1 February 2012

1

any amount in any account

 

a category 1 deposit

On and after 1 February 2012

2

an amount in a term deposit that:

   (a)  came into existence before 11 September 2011; and

  (b)  has not matured or rolled over

a category 1 deposit

3

an amount in a term deposit that:

   (a)  came into existence before 11 September 2011; and

  (b)  has matured or rolled over on or after 11 September 2011

a category 2 deposit

4

an amount in a term deposit that came into existence on or after 11 September 2011

a category 2 deposit

5

an amount in any other account

a category 2 deposit

3              Banking business: purchased payment facilities

                For the purposes of subparagraph (b) (ii) of the definition of banking business in subsection 5 (1) of the Act, the provision of a purchased payment facility is banking business if APRA determines that the facility:

                (a)    is of a type for which the purchaser of the facility is able to demand payment, in Australian currency, of all, or any part, of the balance of the amount held in the facility that is held by the holder of the stored value; and

               (b)    is available, on a wide basis, as a means of payment, having regard to:

                          (i)    any restrictions that limit the number or types of people who may purchase the facility; and

                         (ii)    any restrictions that limit the number or types of people to whom payments may be made using the facility.

4              Banking business: credit card issuing and acquiring

                For subparagraph (b) (ii) of the definition of banking business in subsection 5 (1) of the Act, the activities of credit card acquiring and credit card issuing are banking business, if performed by a participant in a credit card scheme that was designated as a payment system under section 11 of the Payment Systems Act on 11 April 2001.

Note   Instruments designating the Bankcard Scheme, the VISA system and the Mastercard system were published in the Gazette (Special Gazette S 130) on 12 April 2001.

Part 2                 Financial claims scheme

  

4AA        Support that is not external support

         (1)   For subsection 11CA (1C) of the Act, a form of support that
is entered into in the normal course of business is not to
be considered external support for the purposes of subsection 11CA (1B) of the Act.

         (2)   For subsection 13A (1A) of the Act, a form of support that is entered into in the normal course of business is not to be considered external support for the purposes of paragraph 13A (1) (b) of the Act.

         (3)   For subsection 13E (3) of the Act, a form of support that
is entered into in the normal course of business is not to
be considered external support for the purposes of paragraph 13E (1) (b) of the Act.

4A           Clearance period

                For subsection 16AF (1) of the Act, 5 business days is the prescribed period of clearance.

5              Financial claims scheme — limit on payments

         (1)   For subsection 16AG (1) of the Act, before 1 January 2013, the limit in relation to a protected account, or protected accounts, that an account-holder has with a particular declared ADI at a particular time, is worked out as follows:

Step 1       Add together the total category 1 deposits and total category 2 deposits.

Step 2       If the result worked out under Step 1 is not greater than $1 000 000, the result is the limit.

Step 3       If the result worked out in Step 1 is greater than $1 000 000, work out the limit by subtracting the difference between the result worked out in Step 1 and $1 000 000.

Note   The limit is a single amount that applies to all of the protected accounts that the account-holder has with the declared ADI.

         (2)   Work out the total category 1 deposits by adding together the amounts held by the account-holder in category 1 deposits.

         (3)   Work out the total category 2 deposits as follows:

Step 1       Add together the amounts held by the account-holder in category 2 deposits.

Step 2       If the amount worked out in Step 1 is not greater than $250 000, this is the total category 2 deposits.

Step 3       If the amount worked out in Step 1 is greater than $250 000, work out the total category 2 deposits by subtracting the difference between the result worked out in Step 1 and $250 000.

         (4)   On or after 1 January 2013, the limit in relation to a protected account, or protected accounts, that an account-holder has with a particular declared ADI at a particular time is $250 000.

6              Payment of entitlements to certain kinds of accounts by APRA

                For subsection 16AH (5) of the Act, the following kinds of protected account are prescribed:

                (a)    retirement savings accounts;

               (b)    farm management deposits;

                (c)    first home saver accounts.

7              Recovery of overpayments

         (1)   This regulation is made for section 16AM of the Act.

         (2)   If an amount is paid to, or applied for the benefit of, an account-holder purportedly to meet an entitlement of the account-holder under Subdivision C of Division 2AA of Part II of the Act and the amount is in excess of the account-holder’s entitlement (if any) under that Subdivision, the excess amount is a debt due to APRA.

         (3)   APRA may recover the amount of the debt:

                (a)    by bringing proceedings for recovery of the debt in a court of competent jurisdiction; or

               (b)    by withholding the amount of the debt from another payment that would otherwise be paid to the account-holder under Subdivision C of Division 2AA of Part II of the Act; or

                (c)    from any distribution payable to the account-holder under Subdivision E of Division 2AA of Part II of the Act.

         (4)   Nothing in this regulation is intended to limit the way in which APRA may recover the debt.

         (5)   APRA may, if it considers it appropriate to do so in the particular circumstances of the case, waive the whole or a part of the debt.

8              Liquidator must admit debt or claim

                For subsection 16AQ (2) of the Act, the liquidator must admit as a debt or claim the amount of the debt or claim, in relation to 1 or more protected accounts held by an account-holder with a declared ADI, that is in excess of the limit on payments prescribed by, or worked out under, regulations made for subsection 16AG  (1) of the Act.

9              Payment of distributions to certain kinds of accounts by liquidator

                For subsection 16AR (1) of the Act, the following kinds of protected account are prescribed:

                (a)    retirement savings accounts;

               (b)    farm management deposits;

                (c)    first home saver accounts.

10            Disclosure of information by APRA or liquidator to ADI regarding establishment of account

                The following information is prescribed for paragraph 16AT (2) (b) of the Act in the circumstances where APRA
or a liquidator establishes an account with an ADI under section 16AH or 16AR of the Act:

                (a)    the name, address and, if the account holder is an individual, date of birth of the account holder;

               (b)    the tax file number of the account holder;

                (c)    any information available to APRA or the liquidator
that would assist the ADI, as a reporting entity under
the Anti‑Money Laundering and Counter-Terrorism Financing Act 2006, to carry out its obligations under that Act in relation to the new account;

               (d)    if the account is a retirement savings account — information required in relation to a retirement savings account by or under section 390-10 of Schedule 1 to the Taxation Administration Act 1953;

                (e)    if the account is a farm management deposit — information required by or under Schedule 1 to the Income Tax (Farm Management Deposits) Regulations 1998;

                (f)    if the account is a first home saver account — information required by or under section 391-10 of Schedule 1 to the Taxation Administration Act 1953;

               (g)    information relating to the status of the account:

                          (i)    obtained by APRA under subsection 16AK (1) of the Act for the purpose of establishing an account under section 16AH of the Act on behalf of the account-holder; or

                         (ii)    used by the liquidator for the purpose of paying distributions to an account of the same kind held by an account-holder, or established by the liquidator on behalf of an account-holder, under section 16AR of the Act.

Part 7                 Miscellaneous

  

20            Unclaimed moneys—specified accounts and conditions

         (1)   For subsection 69(1B) of the Act, this regulation specifies accounts and conditions relating to those accounts.

Note   Under subsection 69(1B) of the Act, moneys to the credit of an account specified in the regulations are unclaimed moneys if, and only if, the conditions specified in the regulations are satisfied.

Linked accounts

         (2)   A specified account is an account (a linked account) to which the following apply:

                (a)    the account is opened or maintained as a condition of holding another account in the same ADI;

               (b)    the account and the other account are linked in accordance with the terms and conditions of either or both of the accounts.

         (3)   A specified account is the account (a linked account) described in subregulation (2) as the other account.

         (4)   The conditions relating to a linked account are that, for at least 3 years:

                (a)    no deposits have been made into the linked account and any of the accounts to which it is linked; and

               (b)    no withdrawals have been made from the linked account and any of the accounts to which it is linked.

Sub accounts

         (5)   A specified account is an account (a sub account) to which the following apply:

                (a)    the account is operated or maintained as part of another account (a parent account);

               (b)    the account is part of the parent account.

         (6)   The conditions relating to a sub account are that:

                (a)    no deposits have been made into the sub account for at least 3 years; and

               (b)    no withdrawals have been made from the sub account for at least 3 years; and

                (c)    no deposits have been made into the parent account for at least 3 years; and

               (d)    no withdrawals have been made from the parent account for at least 3 years; and

                (e)    for each other sub account of the parent account:

                          (i)    no deposits have been made into that sub account for at least 3 years; and

                         (ii)    no withdrawals have been made from that sub account for at least 3 years.

Frozen accounts

         (7)   A specified account is an account (a frozen account) to which the following apply:

                (a)    deposits into the account and withdrawals from the account have not been allowed by order of a court;

               (b)    the order no longer prohibits deposits into the account and withdrawals from the account.

         (8)   A specified account is an account (a frozen account) to which the following apply:

                (a)    deposits into the account and withdrawals from the account have not been allowed by the operation of a law;

               (b)    the law no longer prohibits deposits into the account and withdrawals from the account.

         (9)   The conditions relating to a frozen account are that:

                (a)    no deposits have been made into the frozen account for at least 3 years after the day:

                          (i)    the order mentioned in paragraph (7)(a) ceased to prohibit deposits into the account and withdrawals from the account; or

                         (ii)    the law mentioned in paragraph (8)(a) ceased to prohibit deposits into the account and withdrawals from the account; and

               (b)    no withdrawals have been made from the frozen account for at least 3 years after the day:

                          (i)    the order mentioned in paragraph (7)(a) ceased to prohibit deposits into the account and withdrawals from the account; or

                         (ii)    the law mentioned in paragraph (8)(a) ceased to prohibit deposits into the account and withdrawals from the account.

Children’s accounts

       (10)   A specified account is an account (a children’s account) to which the following apply:

                (a)    the terms and conditions of the account require it to be held by, or for the benefit of, a person under 18;

               (b)    the account is opened:

                          (i)    in the name of a person who is under 18 at the time; or

                         (ii)    by the trustee of a trust for the benefit of a person who is under 18 at the time.

       (11)   The conditions relating to a children’s account are that:

                (a)    no deposits have been made into the children’s account for at least 7 years; and

               (b)    no withdrawals have been made from the children’s account for at least 7 years.

21            Unclaimed moneys—deposits to which subsections 69(1) and (1A) of the Act do not apply

                For subsection 69(1E) of the Act, a term deposit is specified.

 


Notes to the Banking Regulations 1966

Note 1

The Banking Regulations 1966 (in force under the Banking Act 1959) as shown in this compilation comprise Statutory Rules 1966 No. 157 amended as indicated in the Tables below.

Table of Instruments

Year and
number

Date of notification
in Gazette or FRLI registration

Date of
commencement

Application, saving or
transitional provisions

1966 No. 157

18 Nov 1966

18 Nov 1966

 

2000 No. 114

15 June 2000

15 June 2000

2003 No. 185

23 July 2003

23 July 2003

2008 No. 222

3 Nov 2008 (see F2008L04286)

28 Nov 2008

2008 No. 280

18 Dec 2008 (see F2008L04660)

19 Dec 2008

2010 No. 53

25 Mar 2010 (see F2010L00739)

26 Mar 2010

2010 No. 233

22 July 2010 (see F2010L02123)

27 July 2010 (see r. 2)

2011 No. 224

24 Nov 2011 (see F2011L02422)

25 Nov 2011

2012 No. 319

11 Dec 2012 (see F2012L02397)

12 Dec 2012

Table of Amendments

ad. = added or inserted      am. = amended      rep. = repealed      rs. = repealed and substituted

Provision affected

How affected

Part 1

 

Heading to Part 1.................

ad. 2008 No. 280

R. 1.........................................

rs. 2000 No. 114

R. 2.........................................

rs. 2000 No. 114; 2003 No. 185

 

am. 2008 No. 280; 2011 No. 224

R. 3.........................................

ad. 2000 No. 114

R. 4.........................................

ad. 2003 No. 185

Part 2

 

Heading to Part 2.................

ad. 2008 No. 280

R. 4AA....................................

ad. 2010 No. 53

 

am. 2010 No. 233

R. 4A.......................................

ad. 2008 No. 280

R. 5.........................................

ad. 2008 No. 222

 

rs. 2011 No. 224

R. 6.........................................

ad. 2008 No. 280

R. 7.........................................

ad. 2008 No. 280

R. 8.........................................

ad. 2008 No. 280

R. 9.........................................

ad. 2008 No. 280

R. 10.......................................

ad. 2008 No. 280

Part 7

 

Part 7......................................

ad. 2012 No. 319

R. 20.......................................

ad. 2012 No. 319

R. 21.......................................

ad. 2012 No. 319