Document ID: chunk:federal_register_of_legislation:C2024C00613:section:171
Version: federal_register_of_legislation:C2024C00613
Segment Type: section
Provision Reference: s 171
Character Range: 328003–329667

171  Recovery of amounts from financial institutions

Payment into wrong account
 (1) This section applies if:
 (a) an amount is paid under this Act to a financial institution for the credit of an account kept with the financial institution; and
 (b) the Operator is satisfied that the payment was intended to be made to someone who was not the person or one of the persons in whose name or names the account was kept.

Notice to financial institution requiring repayment
 (2) The Operator may give a written notice to the financial institution setting out the relevant matters referred to in paragraphs (1)(a) and (b) and requiring the financial institution to pay to the Commonwealth, within a reasonable period stated in the notice, the lesser of the following amounts:
 (a) the amount of the payment, as stated in the notice;
 (b) the amount standing to the credit of the account when the notice is given to the financial institution.

Offence for contravening notice
 (3) A financial institution must comply with a notice given to it under subsection (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 (2) if the financial institution proves that it was incapable of complying with the notice.
Note: A defendant bears a legal burden in relation to the matter in this subsection (see section 13.4 of the Criminal Code).

Amount recovered reduces debt
 (5) Any amount recovered by the Commonwealth from a financial institution under this section reduces the amount of a debt referred to in subsection 167(1) (as it relates to paragraph 167(2)(a)).