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Crown Entities Act 2004

Crown entity reporting and financial obligations - Other provisions for financial accountability - Bank accounts

158: Bank accounts of Crown entities

You could also call this:

"Rules for Crown entities to manage their money in bank accounts"

Illustration for Crown Entities Act 2004

You need to put money into a bank account as soon as you get it. The bank account must be at a registered bank or building society that meets certain conditions. The conditions are set by the Minister of Finance. You can also use a bank outside New Zealand if it meets certain conditions. The Minister of Finance must approve the bank and the type of bank account. You must follow any rules made by the Minister of Finance. You must make sure you do not use a bank account that is not allowed. All money in a New Zealand bank account must be in New Zealand dollars. You must properly authorise any withdrawals from your bank account. If your bank account is no longer allowed, you have a short time to close it. You can still put money into the account during this time. But you must close the account and move the money to a new account within two months. The Minister of Finance can specify a different date for you to close the account. You can find more information about this rule by looking at the 1989 No 44 s 24 legislation.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM330562.

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Part 4Crown entity reporting and financial obligations
Other provisions for financial accountability: Bank accounts

158Bank accounts of Crown entities

  1. A Crown entity must ensure that all money received by the Crown entity is paid, as soon as practicable after it is received, into 1 or more bank accounts that are established, maintained, and operated by the Crown entity at 1 or more of the following:

  2. a registered bank or registered building society that satisfies a relevant credit-rating test specified in either regulations made under this Part or a notice in the Gazette published by the Minister of Finance; or
    1. a registered bank or registered building society that meets the conditions of any relevant approval given by the Minister of Finance by notice in the Gazette; or
      1. a bank outside New Zealand that meets the conditions of any relevant approval given by the Minister of Finance by notice in the Gazette; or
        1. a bank outside New Zealand if the conditions specified in subsection (2) are met.

          1. The conditions referred to in subsection (1)(d) are—

          2. the Crown entity, or the class of Crown entities to which the Crown entity belongs, must be authorised to establish, maintain, and operate 1 or more bank accounts at 1 or more banks outside New Zealand by—
            1. the Minister of Finance in writing; or
              1. any regulations made under this Part; and
              2. the bank account or bank accounts must be of a type approved by—
                1. the Minister of Finance in writing; or
                  1. any regulations made under this Part.

                  2. A Crown entity must establish, maintain, and operate a bank account referred to in subsection (2) subject to—

                  3. any regulations made under this Part; and
                    1. if applicable, any conditions of the authorisation or approval given by the Minister of Finance; and
                      1. the entity's Act.

                        1. The Minister of Finance must notify in the Gazette an authorisation or approval given under subsection (2)(a)(i) or, as the case may be, subsection (2)(b)(i).

                        2. A Crown entity must ensure that it does not establish, maintain, or operate a bank account other than as provided for in subsection (1).

                        3. All money in a bank account at a registered bank or a registered building society must be denominated in New Zealand dollars unless the Minister of Finance allows otherwise.

                        4. A Crown entity must properly authorise the withdrawal or payment of money from a bank account of the Crown entity.

                        5. There is a period of grace if a bank account ceases to qualify under subsection (1), and—

                        6. during that period the Crown entity may continue to pay money into the bank account; but
                          1. by the end of the period the Crown entity must have closed the account and paid all the money in the account into another bank account that does qualify under subsection (1).

                            1. The period of grace ends on the earlier of—

                            2. 2 months after the bank account ceases to qualify under subsection (1); or
                              1. a date specified by the Minister of Finance and notified to the Crown entity.

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