Insertion of new sections
68 Insertion of new sections
After section 78 of the Principal Act the following sections are inserted:
Active bank accounts transferred to another bank—obligations of banks in relation to documents
When section applies
“78A.(1) This section applies to a document if:
the document is in the possession of a bank (the ‘transferor bank’) in fulfilment of an obligation imposed on the transferor bank by subsection 77(1), (2) or (3) or 78(1); and
the document relates to an account (the ‘transferred account’) that has been, or is proposed to be, transferred to another bank (the ‘transferee bank’) under:
a law of the Commonwealth or of a State or Territory; or
an arrangement between the transferor bank and the transferee bank.
Transferor bank to give documents to transferee bank
“(2) The transferor bank must give the document 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 a fine not exceeding 10 penalty units.
Transferor bank released from obligations under sections 77 and 78
“(4) If the transferor bank complies with subsection (2) of this section in relation to the document, the transferor bank does not contravene section 77 or 78 in relation to the document.
Obligations of transferee bank—sections 77 and 78
“(5) If the transferee bank is given a document under subsection (2) of this section, this division applies to the transferee bank in relation to the document as follows:
if the document was covered by subsection 77(1) or 78(1)—as if the document were an essential customer generated financial transaction document in relation to the transferee bank;
if the document was covered by subsection 77(2)—as if the document were a customer generated financial transaction document in relation to the transferee bank and were not an essential customer generated financial transaction document;
if the document was covered by subsection 77(3)—as if the document were a financial transaction document in relation to the transferee bank and were a document:
that is not a customer generated financial transaction document; and
whose retention is necessary to preserve a record of the financial transaction concerned;
in any case—as if the minimum retention period applicable to the document were the period of 7 years after the day on which the transferred account is closed.
Definition
“(6) In this section:
‘document’ includes a copy of a document.
Closed bank accounts transferred to another bank—obligations of banks in relation to documents
When section applies
“78B.(1) This section applies to a document if:
the document is in the possession of a bank (the ‘transferor bank’) in fulfilment of an obligation imposed on the transferor bank by subsection 77(1), (2) or (3) or 78(1); and
the document relates to a closed account; and
the transferor bank complies with an obligation imposed on it under subsection 78A(2) in relation to another bank (the ‘transferee bank’) during the 120-day period mentioned in that subsection; and
the transferor bank and the transferee bank agree in writing that the document should be transferred by the transferor bank to the transferee bank during that 120-day period.
Transferor bank may give documents to transferee bank
“(2) The transferor bank may give the document to the transferee bank within that 120-day period.
Transferor bank released from obligations under sections 77 and 78
“(3) If the transferor bank gives a document to the transferee bank under subsection (2) of this section, the transferor bank does hot contravene section 77 or 78 in relation to the document.
Obligations of transferee bank—sections 77 and 78
“(4) If the transferee bank is given a document under subsection (2) of this section, this division applies to the transferee bank in relation to the document as follows:
if the document was covered by subsection 77(1) or 78(1)—as if the document were an essential customer generated financial transaction document in relation to the transferee bank;
if the document was covered by subsection 77(2)—as if the document were a customer generated financial transaction document in relation to the transferee bank and were not an essential customer generated financial transaction document;
if the document was covered by subsection 77(3)—as if the document were a financial transaction document in relation to the transferee bank and were a document:
that is not a customer generated financial transaction document; and
whose retention is necessary to preserve a record of the financial transaction concerned;
in any case—as if the minimum retention period applicable to the document were the period of 7 years after the day on which the closed account was closed.
Definition
“(5) In this section:
‘document’ includes a copy of a document.”.
PART 3.4—AMENDMENT OF THE RESERVE BANK ACT 1959
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