83Reserve Bank’s directions power—directions relating to designated entity’s conduct of affairs

83 Reserve Bank’s directions power—directions relating to designated entity’s conduct of affairs

(1) The Reserve Bank may, by written notice given to a body corporate that is a designated entity, direct the body corporate (the directed body) to take specified action mentioned in subsection (2) or (3).

(2) The action required by the direction (which may include action to do an act or thing, or refrain from doing an act or thing) may be specified action that the Reserve Bank reasonably believes, for cash distribution services that:

(a) the directed body provides; and

(b) are critical to the availability of cash in Australia;

will reduce potential threats to the directed body’s continued provision of those services, if the Reserve Bank reasonably believes that the directed body is conducting, or likely to conduct, its affairs in a way that is likely to threaten that continued provision of cash distribution services.

(3) The action required by the direction (which may include action to do an act or thing, or refrain from doing an act or thing) may be specified action that the Reserve Bank reasonably believes will prevent, or lessen the effects of, a reduction of a cash distribution service provided by the directed body, if the Reserve Bank reasonably believes that:

(a) the directed body is conducting, or likely to conduct, its affairs in a way that will, or is likely to, result in a reduction of a cash distribution service that is critical to the availability of cash in Australia; and

(b) the reduction is likely to have a material adverse effect on the availability of cash in Australia.

(4) The direction must specify a reasonable time by which, or a reasonable period during which, it is to be complied with.

Complying with directions

(5) A body corporate contravenes this subsection if:

(a) the body corporate is given a direction under subsection (1); and

(b) the body corporate fails to comply with the direction.

Fault‑based offence

(6) A person commits an offence if the person contravenes subsection (5).

Note: An individual can commit an ancillary offence that is either an offence against this subsection or an offence relating to this subsection (see Part 2.4 of the Criminal Code).

Penalty:

(a) for a body corporate—2,400 penalty units; and

(b) for an individual—imprisonment for 2 years or 240 penalty units, or both.

(7) Subsection 4K(2) (continuing offences) of the Crimes Act 1914 does not apply in relation to an offence against subsection (6) of this section.

Civil penalty provision