Document ID: chunk:federal_register_of_legislation:F2023C01018:reg:6:p10
Version: federal_register_of_legislation:F2023C01018
Segment Type: reg
Provision Reference: reg 6 (pt 10/15)
Character Range: 54337–57413

to registered entities in relation to matters both outside Australia and matters not outside Australia but closely related to entities, things or matters outside Australia (such as the management within Australia of overseas aid).
      The external conduct standards assist in meeting Australia's international obligations including under the FATF Recommendations (within the meaning of section 5 of the Anti‑Money Laundering and Counter‑Terrorism Financing Act 2006).
      The steps a registered entity will need to take to comply with the standards will vary according to its particular circumstances, such as its size, the sources of its funding, the nature of its activities (including the extent and importance of its activities outside Australia and resources given to parties outside Australia) and the needs of the public (including members, donors, employees, volunteers and benefit recipients of the registered entity).
      The requirements in the external conduct standards are to be interpreted having regard to the objects of the Act and the matters the Commissioner must consider in exercising the Commissioner's powers as listed in section 15‑10 of the Act (in particular, the principles of regulatory necessity, reflecting risk and proportionate regulation, as well as the unique nature and diversity of not‑for‑profit entities and the distinctive role that they play in Australia).
      The objects of the Act are: to maintain, protect and enhance public trust and confidence in the Australian not‑for‑profit sector; to support and sustain a robust, vibrant, independent and innovative Australian not‑for‑profit sector; and to promote the reduction of unnecessary regulatory obligations on the Australian not‑for‑profit sector.

50.2  Interpretation
  In this Division, the external conduct standards in Subdivisions 50‑B and 50‑C of this Division must be interpreted in a way that is consistent with the objects of the Act and the requirements of section 15‑10 of the Act.

50.3  Purpose of this Division
  For the purposes of section 50‑10 of the Act, the external conduct standards in Subdivisions 50‑B and 50‑C of this Division are specified.

50.4  Application—operating outside Australia
 (1) For the purposes of this Division, a registered entity, or a third party, operates outside Australia if it operates outside Australia in whole or in part.
 (2) However, a registered entity does not operate outside Australia only because it carries out activities outside Australia (including providing funds to be used outside Australia) that are directly related to the pursuit of the registered entity's purposes in Australia and merely incidental to its operations in Australia.

Subdivision 50‑B—Standards about public accountability and financial matters

50.20  Standard 1—Activities and control of resources (including funds)

Object
 (1) The object of this external conduct standard is to give the public (including members, donors, employees, volunteers and benefit recipients of a registered entity to which the standard applies) confidence that