Document ID: chunk:federal_register_of_legislation:C2004A00814:clause:4_205ab:p1
Version: federal_register_of_legislation:C2004A00814
Segment Type: clause
Provision Reference: sch 4 cl 205AB (pt 1/2)
Character Range: 62847–65428

205AB  Recovery of certain amounts from financial institutions

 (1) If:
 (a) a payment or payments of a pension, benefit or other pecuniary amount are made to a financial institution for the credit of an account kept with the institution; and
 (b) the Commission is satisfied that the payment or payments were intended to be made for the benefit of someone who was not the person or one of the persons in whose name or names the account was kept;
the Commission may give a written notice to the institution setting out the matters mentioned in paragraphs (a) and (b) and requiring the institution to pay to the Commonwealth, within a period (being a reasonable period) stated in the notice, the lesser of the following amounts:
 (c) an amount specified in the notice, being the amount, or the sum of the amounts, of the payment or payments;
 (d) the amount standing to the credit of the account when the notice is given to the institution.

 (2) If:
 (a) a payment or payments of a pension, benefit or other pecuniary amount that are intended for the benefit of a person are made to a financial institution for the credit of an account that was kept with the institution by the person or by the person and one or more other persons; and
 (b) the person died before the payment or payments were made;
the Commission may give a written notice to the institution setting out the matters mentioned in paragraphs (a) and (b) and requiring the institution to pay to the Commonwealth, within a period (being a reasonable period) stated in the notice, the lesser of the following amounts:
 (c) an amount specified in the notice, being the amount, or the sum of the amounts, of the payment or payments;
 (d) the amount standing to the credit of the account when the notice is received by the institution.

 (2A) As soon as possible after issuing a notice under subsection (2), the Commission must inform the deceased estate in writing of:
 (a) the amount sought to be recovered from the deceased person's account; and
 (b) the reasons for the recovery action.

 (3) A financial institution must comply with a notice given to it under subsection (1) or (2).

Penalty: 300 penalty units.

 (4) It is a defence to a prosecution of a financial institution for failing to comply with a notice given to it under subsection (1) or (2) if the financial institution proves that it was incapable of complying with the notice.

 (5) If a notice is given to a financial institution under subsection (1) (payment made to wrong account) or under subsection (2) (death of person in whose name the account