Part 1—Preliminary
1 Name of Regulations
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.
Security, set‑off or escrow accounts
(12) A specified account is an account (a security, set‑off or escrow account) to which the following apply:
(a) the account is held:
(i) as security for a loan or another financial obligation; or
(ii) for set‑off or account combination purposes for a loan or another financial obligation; or
(iii) in escrow for a contract;
(b) on that basis, the ability of the holder or holders of the account to make deposits and withdrawals is restricted by:
(i) the ADI; or
(ii) the terms and conditions of the establishment of the account;
(c) the account holder has notified the ADI of:
(i) the purpose of the account, mentioned in subparagraph (a)(i), (ii) or (iii), and the period of the loan, financial obligation or contract covered by the applicable subparagraph; or
(ii) only the purpose of the account, mentioned in subparagraph (a)(i), (ii) or (iii).
(13) The conditions relating to a security, set‑off or escrow account to which subparagraph (12)(c)(i) relates are that:
(a) no deposits have been made into the account for at least the longer of the following periods:
(i) 7 years;
(ii) 3 years after the loan, financial obligation or contract covered by subparagraph (12)(a)(i), (ii) or (iii) has been discharged; and
(b) no withdrawals have been made from the account for at least the longer of the following periods:
(i) 7 years;
(ii) 3 years after the loan, financial obligation or contract covered by subparagraph (12)(a)(i), (ii) or (iii) has been discharged.
(14) The conditions relating to a security, set‑off or escrow account to which subparagraph (12)(c)(ii) relates are that:
(a) no deposits have been made into the account for at least 7 years; and
(b) no withdrawals have been made from the account for at least 7 years.
(15) A specified account is an account (a controlled account) to which the following apply:
(a) the account is opened and held as a requirement of a law of the Commonwealth, a State or a Territory or a contract;
(b) the ability of a holder of the account to make deposits into the account or withdrawals from the account is restricted by the law of the Commonwealth, a State or a Territory or the contract;
(c) the account holder has notified the ADI of:
(i) for an account opened and held as a requirement of a contract—the purpose of the account and the period of the requirement; or
(ii) for an account opened and held as a requirement of a contract—only the purpose of the account; or
(iii) for an account opened and held as a requirement of a law of the Commonwealth, a State or a Territory—the purpose of the account and the period (if any) of the requirement; or
(iv) for an account opened and held as a requirement of a law of the Commonwealth, a State or a Territory—only the purpose of the account.
(16) The conditions relating to a controlled account to which subparagraph (15)(c)(i) or (iii) relates are that:
(a) no withdrawals have been made from the account for at least the longer of the following periods:
(i) 7 years;
(ii) 3 years after the requirement mentioned in paragraph (15)(a) ceases; and
(b) no deposits have been made into the account for at least the longer of the following periods:
(i) 7 years;
(ii) 3 years after the requirement mentioned in paragraph (15)(a) ceases.
(17) The conditions relating to a controlled account to which subparagraph (15)(c)(ii) or (iv) relates are that:
(a) no deposits have been made into the account for at least 7 years; and
(b) no withdrawals have been made from the 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.
