Commonwealth Consolidated Regulations

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Specific things that are not financial products: electronic funds transfers

                   For paragraph 765A(1)(y) of the Act, a non-cash payment facility is not a financial product if:

                     (a)  the issuer is:

                              (i)  a body corporate that is an ADI (within the meaning of the Banking Act 1959 ); or

                             (ii)  an operator of a payment system; and

                     (b)  under the facility, as instructed by the client, the issuer makes money available (or causes it to be made available) to a person nominated by the client:

                              (i)  within 2 business days of receiving the client's instruction; or

                             (ii)  within the time reasonably required to complete the transaction subject to any constraints imposed by law; and

                     (c)  under the facility the funds are transferred by electronic means for collection by, or for the credit of, the payer or another person; and

                     (d)  the issuer and the payer do not have a standing arrangement to transfer funds in this manner.

Example:    Telegraphic transfers and international money transfers offered by banks and remittance dealers.

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