Banking Act 1959

Part IIAA - The Banking Executive Accountability Regime  

Division 6 - Enforcement and administration  

Subdivision A - Civil penalties  

SECTION 37G   Pecuniary penalty for non-compliance with this Part  

An ADI is liable to a pecuniary penalty if:

(a) the ADI contravenes its obligations under this Part (other than this Division); and

(b) the contravention relates to prudential matters.

The amount of the pecuniary penalty is an amount not exceeding:

(a) if the ADI is a large ADI - 1,000,000 penalty units; or

(b) if the ADI is a medium ADI - 250,000 penalty units; or

(c) if the ADI is a small ADI - 50,000 penalty units.

The Minister may, by legislative instrument, determine:

(a) the kinds of ADIs that are large ADIs; and

(b) the kinds of ADIs that are medium ADIs; and

(c) the kinds of ADIs that are small ADIs.

In determining the pecuniary penalty, the Federal Court of Australia must have regard to the impact that the penalty would have on the viability of the ADI.

Subsection (4) does not limit subclause 1(3) of Schedule 2 .

This section is a civil penalty provision.


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