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APRA welcomes court decision to stop unauthorised banking business

The Australian Prudential Regulation Authority (APRA) has welcomed a court decision granting an injunction to prevent an individual from carrying on unauthorised banking business and using the word “bank” without a licence.

APRA lodged an application in the Federal Court of Australia last month to restrain Andrew Morton Garrett from operating and marketing businesses in Australia that he describes as banks, despite not being authorised to carry on a banking business. Mr Garrett’s purported businesses include Dynamic Capital Bank, Banque de Capital Dynamique, and Banca di Como. 

Handing down his decision yesterday in Sydney, Justice Lee made orders with immediate effect permanently restraining Mr Garrett from:

  1. carrying on a banking business;
  2. assuming or using the words “bank” (or similar words) in relation to any purported bank, business or purported business or advertising, representing, or stating that any purported bank, business, or purported business will carry on banking business.

Mr Garrett has also been ordered to pay APRA’s costs of 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. 

Mr Garrett, who was not in court to hear the judgement, had ignored requests from APRA to stop referring to his businesses as “banks” and cease carrying on any unauthorised banking business. 
Any failure to comply with court orders is contempt of court.


The Australian Prudential Regulation Authority (APRA) is the prudential regulator of the financial services industry. It oversees banks, mutuals, general insurance and reinsurance companies, life insurance, private health insurers, friendly societies, and most members of the superannuation industry. APRA currently supervises institutions holding around $9 trillion in assets for Australian depositors, policyholders and superannuation fund members.