Banking Act 1959

Part II - Provisions relating to the carrying on of banking business  

Division 2AA - Financial claims scheme for account-holders with insolvent ADIs  

Subdivision C - Payment of account-holders with declared ADI  

SECTION 16AH   Payment  

Various ways of meeting entitlement

(1)    
An account-holder ' s entitlement under this Subdivision to be paid an amount may be met:

(a) by paying the amount to the account-holder as a single amount or in instalments determined by APRA; or

(b) by applying the amount, as a single amount or in instalments determined by APRA, for the account-holder ' s benefit, by establishing an account with an ADI on behalf of the account-holder or in another way; or

(c) by paying part of the amount to the account-holder and applying the rest of the amount for the account-holder ' s benefit.

(2)    
The regulations may make provision for or in relation to the ways in which account-holders ' entitlements under this Subdivision to be paid amounts may be met.

Establishment of account by APRA for meeting entitlement

(3)    
APRA may establish, on behalf of an account-holder who has an entitlement under this Subdivision, an account with an ADI (except a declared ADI) for the purposes of wholly or partly meeting the entitlement.

(4)    
Subsection (3) has effect:

(a) whether or not the account-holder consents to the establishment of the account; and

(b) despite any other law of the Commonwealth relating to the establishment of such an account.

(5)    
If an account-holder has an entitlement under this Subdivision connected with a protected account of a kind prescribed by the regulations for the purposes of this subsection, APRA must establish an account of the same kind on behalf of the account-holder for the purposes of wholly or partly meeting the entitlement.

Act to meet entitlement is not provision of designated service

(6)    
An act done by any of the following persons for the purposes of meeting an account-holder ' s entitlement under this Subdivision is taken, for the purposes of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 , not to be the provision of a designated service by the person:

(a) APRA;

(b) the Reserve Bank.

Note:

One effect of subsection (6) is that the person ' s act does not make the person a reporting entity for the purposes of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 .

Exemption from section 32 of Anti-Money Laundering Act

(7)    
Section 32 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 does not apply to a designated service described in item 1 of the table in subsection 6(2) of that Act provided by an ADI as a result of the exercise of APRA ' s power under subsection (3) of this section (whether or not subsection (5) required APRA to exercise that power).