Document ID: chunk:federal_register_of_legislation:C2004A04745:body:0:p25
Version: federal_register_of_legislation:C2004A04745
Segment Type: other
Provision Reference: 
Character Range: 61733–64630

is amended:

    (a) by inserting in subsection (1) "(other than a foreign bank)" after "bank" (first occurring);

  (b) by adding at the end the following subsection:

    "(4) A foreign bank must give the Treasurer reasonable notice, in writing, of any proposal that involves the bank:

      (a) entering into an arrangement or agreement for:

            (i) any sale or disposal of its business by amalgamation or otherwise; or

            (ii) the carrying on of business in partnership with another bank; or

      (b) effecting a reconstruction of the bank.".

Division 3—Amendment relating to prosecution of offences

Object of Division

61. The object of this Division is to abolish the rule requiring the Treasurer's consent for the prosecution of offences against the Principal Act.

Repeal of section 70

  62. Section 70 of the Principal Act is repealed.

PART 3.2—AMENDMENT OF THE FINANCIAL TRANSACTION REPORTS ACT 1988

Object of Part

63. The object of this Part is to facilitate the transfer of accounts between banks by requiring or authorising the transfer of certain records relating to those accounts.

Principal Act

64. In this Part, "Principal Act" means the Financial Transaction Reports Act 19882.

Insertion of new sections

65. After section 23 of the Principal Act the following sections are inserted:

Active bank accounts transferred to another bank—obligations of banks in relation to records of information

When section applies

  "23A.(1) This section applies to a record of information if:

     (a) the record is in the possession of a bank (the 'transferor bank') in fulfilment of an obligation imposed on the transferor bank by subsection 23(1) or (7); and

     (b) the record relates wholly or partly to an account (the 'transferred account') that has been, or is proposed to be, transferred to another bank (the 'transferee bank') under:

        (i) a law of the Commonwealth or of a State or Territory; or

        (ii) an arrangement between the transferor bank and the transferee bank.

Transferor bank to give records to transferee bank

"(2) The transferor bank must comply with whichever of the following rules is applicable:

    (a) if the record relates wholly to the transferred account—the transferor bank must give the record to the transferee bank within the 120-day period beginning 30 days before the transfer;

    (b) if the record relates partly to the transferred account and partly to an account that is not so transferred or proposed to be so transferred—the transferor bank must:

        (i) make a copy of so much of the record as relates to the transferred account; and

        (ii) give the copy to the transferee bank;

    within the 120-day period beginning 30 days before the transfer.

Offence

"(3) A person who intentionally or recklessly contravenes subsection (2) is guilty of an offence punishable on conviction by