The Regulation of Internet Banking

Abstract

This paper deals with the regulation of Internet banking. In this arena, the law is in a period of rapid development and change.As in similar situations, the legal system has struggled to keep pace with the technology involved. Internet banking is regulated by the Australian financial sector regime to the extent that it involves institutions governed by Australian finance legislation. Specific legislation deals with electronic payment mechanisms. Numerous industry-based codes of conduct are significant in this field, especially the Electronic Funds Transfer (EFT) Code of Conduct (the EFT Code) and the Code of Banking Practice (the Banking Code). Contractual arrangements provide much of the framework for Internet banking transactions and these will be examined. Finally, a number of other general statutory regimes and common law notions also govern Internet banking.