Treasury Laws Amendment (Banking Measures No. 1) Act 2018 (9 of 2018)

Schedule 3   Restricted words

Banking Act 1959

5   After section 66

Insert:

66AA Use of the word bank by ADIs

(1) A person commits an offence if:

(a) the person is an ADI; and

(b) the ADI carries on a financial business, whether or not in Australia; and

(c) the person assumes or uses, in Australia, the word bank in relation to that financial business; and

(d) a determination under subsection (3) is in force that specifies that this section applies to the ADI.

Penalty: 50 penalty units.

Note 1: For the meanings of assume or use and financial business , see subsection (10).

Note 2: Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility.

Note 3: If a body corporate is convicted of an offence against this subsection, subsection 4B(3) of the Crimes Act 1914 allows a court to impose a fine of up to 5 times the penalty stated above.

(2) If a person assumes or uses the word bank in circumstances that give rise to the person committing an offence against subsection (1), the person commits an offence against that subsection in respect of:

(a) the first day on which the offence is committed; and

(b) each subsequent day (if any) on which the circumstances that gave rise to the person committing the offence continue (including the day of conviction for any such offence or any later day).

Note: This subsection is not intended to imply that section 4K of the Crimes Act 1914 does not apply to offences against this Act or the regulations.

(3) APRA may, in writing, determine that this section applies to an ADI while the determination is in force.

(4) A determination under subsection (3):

(a) may be expressed to apply:

(i) to a particular ADI; or

(ii) to a class, or classes, of ADIs; and

(b) may specify the period during which the determination is in force.

A period specified under paragraph (b) must not begin before the day on which the determination is made.

(5) If APRA makes a determination under subsection (3) that applies to a particular ADI, APRA must also give the ADI written notice of the determination.

(6) APRA may, in writing, vary or revoke a determination made under subsection (3).

(7) The following instruments are not legislative instruments:

(a) a determination under subsection (3) that applies to a particular ADI;

(b) an instrument made under subsection (6) varying or revoking a determination that applies to a particular ADI.

(8) Otherwise, a determination under subsection (3) or an instrument under subsection (6) is a legislative instrument.

(9) Part VI applies to the following decisions under this section:

(a) a decision to determine that this section applies to a particular ADI;

(b) a decision to vary a determination that applies to a particular ADI.

(10) In this section:

(a) a reference to the word bank being assumed or used includes a reference to the word being assumed or used:

(i) as part of another word or expression; or

(ii) in combination with other words, letters or other symbols; and

(b) a reference to a financial business is a reference to a business that:

(i) consists of, or includes, the provision of financial services; or

(ii) relates, in whole or in part, to the provision of financial services.