88Recovery of amounts from financial institutions

#### 88 Recovery of amounts from financial institutions (1) If: (a) an amount is paid under this Act to a financial institution for the credit of an account kept with the institution; and (b) the Secretary 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; the Secretary 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 reasonable period stated in the notice, the lesser of the following amounts: (c) an amount specified in the notice that is equal to the amount that was paid as mentioned in paragraph (a); (d) the amount standing to the credit of the account when the notice is received by the institution. (2) A financial institution must comply with a notice given to it under subsection (1). Penalty: 300 penalty units. (3) It is a defence to a prosecution of a financial institution for failing to comply with a notice given to it under subsection (1) if the financial institution proves that it was incapable of complying with the notice. (4) If a notice is given to a financial institution under subsection (1) in respect of an amount paid under this Act, any amount recovered by the Commonwealth from the institution in respect of the payment reduces any debt owed to the Commonwealth by any other person in respect of the amount. (5) In this Act: > financial institution means a corporation that is an ADI for the purposes of the Banking Act 1959.