Commonwealth Consolidated Acts

BANKING ACT 1959 - SECT 9

             (2)  A body corporate which desires authority to carry on banking business in Australia may apply in writing to APRA for authority accordingly.

Note:          The body corporate may also need to consider the implications of the Foreign Acquisitions and Takeovers Act 1975 and the Financial Sector (Shareholdings) Act 1998 .

             (3)  If an application has been made, APRA may grant the body corporate an authority to carry on banking business in Australia. The authority must be in writing, and APRA must give the body corporate written notice of the granting of the authority.

Note 1:       The fact that a body corporate is granted an authority to carry on banking business in Australia does not mean it is entitled to call itself a bank. To do this, the body corporate will need to have a consent under section 66.

Note 2:       For APRA's power to revoke an authority, see section 9A.

          (3A)  Without limiting the circumstances in which APRA may refuse an application by a body corporate for authority to carry on banking business in Australia, APRA may refuse such an application if the body corporate is a subsidiary of a NOHC that does not hold a NOHC authority.

             (4)  APRA may, at any time, by notice in writing served on the body corporate concerned:

                     (a)  impose conditions, or additional conditions, on an authority; or

                     (b)  vary or revoke conditions imposed on an authority.

The conditions must relate to prudential matters.

          (4A)  Without limiting the conditions that APRA may impose under subsection (4) on an ADI's authority, APRA may make the authority conditional on a body corporate of which the ADI is a subsidiary being an authorised NOHC.

             (5)  A condition may be expressed to have effect notwithstanding anything in the prudential standards or the regulations.

             (6)  An ADI is guilty of an offence if:

                     (a)  it does, or fails to do, an act; and

                     (b)  doing, or failing to do, the act results in a contravention of a condition of the ADI's authority; and

                     (c)  there is no determination in force under section 11 that this subsection does not apply to the ADI.

Maximum penalty:    200 penalty units.

Note 1:       Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility.

Note 2:       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.

          (6A)  An offence against subsection (6) is an indictable offence.

          (6B)  If an ADI does or fails to do an act in circumstances that give rise to the ADI committing an offence against subsection (6), the ADI is guilty of 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 ADI 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.

             (7)  If APRA:

                     (a)  grants an authority under subsection (3); or

                     (b)  imposes, varies or revokes conditions under subsection (4);

APRA must cause notice of that action to be published in the Gazette . APRA may also cause notice of that action to be published in any other way it considers appropriate.

             (8)  A failure to comply with subsection (7) does not affect the validity of the action concerned.

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

                     (a)  a decision to refuse an application under this section;

                     (b)  a decision to impose conditions, or additional conditions, on an authority;

                     (c)  a decision to vary conditions imposed on an authority.