Document ID: chunk:federal_register_of_legislation:C2025C00044:section:15
Version: federal_register_of_legislation:C2025C00044
Segment Type: section
Provision Reference: s 15
Character Range: 142035–143381

15  Shell banks
 (1) For the purposes of this Act, a shell bank is a corporation that:
 (a) is incorporated in a foreign country; and
 (b) is authorised to carry on banking business in its country of incorporation; and
 (c) does not have a physical presence in its country of incorporation; and
 (d) is not an affiliate of another corporation that:
 (i) is incorporated in a particular country; and
 (ii) is authorised to carry on banking business in its country of incorporation; and
 (iii) has a physical presence in its country of incorporation.

When a corporation has a physical presence in a country
 (2) For the purposes of determining what is a shell bank, a corporation has a physical presence in a country if, and only if:
 (a) the corporation carries on banking business at a place in that country; and
 (b) at least one full‑time employee of the corporation performs banking‑related duties at that place.

When a corporation is affiliated with another corporation
 (3) For the purposes of determining what is a shell bank, a corporation is affiliated with another corporation if, and only if:
 (a) the corporation is a subsidiary of the other corporation; or
 (b) at least one individual passes the control test in relation to both corporations; or
 (c) under the regulations, both corporations are taken to be under common control.