The Treasury

Global Navigation

Personal tools

7.  Bank Accounts

Guideline 11

The policy document must comply with the requirements of the banking and investment provisions contained in the Public Finance Act 1989. These include:

  • Treasury approval is required to open/ amend or close a bank account;
  • a foreign-currency bank account cannot be operated until a Direction for Foreign-Currency Bank Accounts or a Notice of Delegation Regarding Crown Bank Accounts has been received from the Treasury;
  • a foreign-currency bank account cannot be overdrawn;
  • interest received on a foreign-currency bank account must be returned to the Crown; and
  • departments cannot invest any money held in a Crown or departmental bank account.

Legislative Requirements

  1. Pursuant to sections 18 and 19 of the PFA 1989, a department must obtain Treasury approval prior to opening a foreign-currency bank account. Approval should not be sought unless the bank account is essential to the efficient conduct of that business and the department has an approved Foreign-Exchange Policy Document in place.

  2. Pursuant to section 21 of the PFA 1989, a department cannot operate a bank account until a Direction for Foreign-Currency Bank Account or Notice of Delegation Regarding Crown Bank Account has been received from the Treasury. These documents govern the terms and conditions under which the bank accounts must be operated.

  3. Pursuant to section 47 of the PFA 1989, a foreign-currency bank account must not be overdrawn. Any interest earned on a foreign-currency bank account must be returned to the Crown by year-end.

  4. Subject to the above, the department is responsible for managing its own banking facilities and establishing appropriate mechanisms for the transfer of funds required to operate its accounts.

  5. The procedure for opening a foreign-currency bank account is covered in Schedule III of this document.

Page top