Court decision welcomed by APRA
Andrew Morton Garrett has been slapped with an injunction preventing him from operating an unauthorised banking business and using the word “bank” without a licence – a court decision welcomed by the Australian Prudential Regulation Authority (APRA).
Last month, APRA filed an application in the Federal Court of Australia to restrain Garrett from operating and marketing his purported businesses, Dynamic Capital Bank, Banque de Capital Dynamique, and Banca di Como, that he described as banks despite not being authorised to carry on a banking business, the prudential regulator said in a statement.
In handing down his decision, Justice Michael Bryan Lee ordered to permanently restrain Garrett from carrying on a banking business and using the words “bank” (or similar words) in relation to any purported business or advertising, representing, or stating that any purported business will carry on a banking business, with immediate effect.
Garrett has also been asked to pay APRA’s costs for the proceedings.
“Under the Banking Act 1959, only authorised deposit-taking institutions (ADIs) licensed by APRA are legally permitted to carry on banking business in Australia, including referring to themselves as “banks” or describing their services as banking,” APRA said.
The prudential regulator said Garrett, who was not present when the judgement was handed down in court, had ignored its requests to stop referring to his businesses as “banks” and cease operating any unauthorised banking business.
Any failure to comply with court orders is contempt of court.
