Bano Pty Ltd
Product Disclosure Statement (PDS)
Bano Pty Ltd ACN 643 260 431
Address: Room 109, Level 26, 161 Castlereagh Street, Sydney, NSW, 2000
Phone: 1300 088 155
Preparation date: 28 April 2022
Bano Pty Ltd (Bano, us, we, our) is the issuer of the non-cash payment product described in this Product Disclosure Statement (PDS).
This PDS explains what you need to know about the non-cash payment product that we can offer you. It is designed to:
- provide you with the information you need to determine whether the non-cash payment product we offer is appropriate for you; and
- explain the terms and conditions, rights and obligations associated with our non-cash payment product.
When you open an account with us, you will be provided with a separate document titled “Terms and Conditions”. It contains terms and conditions that govern Bano’s relationship with you. You can obtain a free copy of the Terms and Conditions by contacting us or visiting our website.
2. IMPORTANT INFORMATION
Bano does not hold its own AFSL. However it is authorised to issue non-cash payment facilities under an exemption provided by the Corporations (FinTech Sandbox Australian Financial Services Licence Exemption) Regulations 2020 (Cth) (Regulations or ERS). The ERS allows us to test various innovative financial services without first obtaining an AFSL. However Bano has also been appointed as an Authorised Representative (AR No. 1293635) of Omipay Pty Ltd (AFSL No. 495025), which provides Bano with the ability to offer additional financial services to its customers (i.e. in addition to those it can offer under the ERS).
Bano’s Visa prepaid card is issued pursuant to a Visa program sponsored by Nium Pty Ltd, a principal member of Visa.
It is your responsibility to take all reasonable steps to ensure that you fully understand the products we offer, as well as how the products are used and the risks that are involved in such products. You may need further information to make these decisions.
This PDS does not take into account your financial situation, personal objectives or needs. Before using the products referred to in this PDS, you should read this PDS carefully, and then consider your objectives, financial situation and needs and take all reasonable steps to fully understand the products that we offer. We recommend that you seek independent financial advice to ensure that a particular product is suited to your financial situation and requirements.
This PDS is intended only for persons that reside in Australia. Accordingly, this PDS is not an offer to sell or invitation to treat in relation to the products in any place in which, or to any person to whom, it would not be lawful to make that offer or invitation. The distribution of this PDS outside Australia may be restricted by the laws of places where it is distributed and therefore persons into whose possession this document comes should seek advice on and observe those restrictions. Failure to comply with relevant restrictions may violate those laws.
This PDS is only required to be provided to a Retail Client. If you are a Wholesale Client, then providing you with this PDS does not mean we wish to treat you as a Retail Client.
Bano will notify you in writing if certain events occur where:
- Bano has ceased to carry on a financial services business;
- Bano becomes a Chapter 5 body corporate (as that term is defined in section 9 of the Corporations Act 2001);
- Bano has become bankrupt, or has applied to take the benefit of any law for the relief of bankrupt or insolvent debtors;
- Bano has compounded with its creditors, or has made an assignment of its remuneration for the benefit of its creditors;
- Bano obtains an AFSL to provide financial services;
- Bano has become an authorised representative of an AFSL holder for the provision of the financial services;
- Bano has ceased to rely on the exemption provided under the Regulations;
- the financial services or financial products Bano provides have materially changed;
- the financial services or the financial products Bano provides are no longer being offered to new customers.
Any information that is not materially adverse information is subject to change from time to time and may be updated by inclusion on our website (www.banofinancial.com). You can also obtain a paper copy or electronic copy of any updated PDS (without charge) on request.
Where this PDS includes a reference to content on our website, the relevant content of the website referred to forms part of this PDS. If you cannot find that information on our website, you can contact us and ask for a copy of the statement or information without charge.
Examples we use in this PDS are only for illustration and are included to help you understand our products. They are not exhaustive.
To the extent permitted by law, we do not accept any responsibility for any loss arising from your use of this PDS.
Should you have any queries about this PDS, please contact us. Our contact details are at the start of this PDS.
3. WHO ARE WE, AND WHAT WE ARE AUTHORISED TO DO?
Bano is the issuer of the non-cash payment product described in this PDS. It is authorised to issue the non-cash payment facility pursuant to the ERS exemption. The ERS allows us to test our innovative financial services without first obtaining an AFSL. Bano has also been appointed as an Authorised Representative of Omipay Pty Ltd (AFSL: 495025), which will allow Bano to offer additional financial services to its customers (i.e. in addition to those that it is permitted to offer under the ERS).
We are not licensed to provide you with personal financial product advice in relation to the non-cash payment product described in this PDS. Accordingly, you should consider this PDS carefully before making a decision about the non-cash payment product that we issue especially since there is no cooling off period in relation to our non-cash payment product.
Under the ERS exemption, each of Bano’s Retail Clients may only commit a maximum of $10,000 in non-cash payment facilities issued by Bano.
A $5 million aggregate client exposure limit applies across all financial products and services that Bano provides to Retail Clients and Wholesale Clients.
Bano will never provide you with personal advice. We may, however, provide you with general advice in relation to our non-cash payment products. There is an important difference between general advice and personal advice. If we provide you with general advice it means that we have not considered any of your individual objectives, financial situation and needs.
Whenever we give general advice (for example, through our website or in this PDS), we do not take into account your financial situation, individual objectives and needs. Before using the products referred to in this PDS you should read this PDS carefully, and then consider your objectives, financial situation and needs and take all reasonable steps to fully understand the product we are offering. We recommend that you seek independent financial advice to ensure that a particular product is suited to your financial situation and requirements.
4. OPENING AN ACCOUNT
Step 1: Read this PDS.
Step 2: Read, acknowledge and accept the Terms and Conditions contained on the Bano mobile application by ticking the box.
Step 3: Set up an account with us.
Step 4: Fund your Bano Account by transferring money from your bank account to your Bano Account. It may take up to 2-5 business days for the funds to appear in your Bano Account.
5. NON-CASH PAYMENT PRODUCT OFFERED BY BANO
A non-cash payment is made when a person makes a payment or causes a payment to be made otherwise than by the physical delivery of cash.
Bano provides a mobile application that offers you a sophisticated payment solution via your Bano Account.
By logging into your Bano Account you can conveniently and securely access the following services:
- receive funds from a bank account held in your name with an Australian ADI;
- receive funds from a bank account held in your name with an overseas bank through the SWIFT network;
- receive funds from a third party’s bank account held with an Australian ADI or another institution;
- receive funds from a third party’s account held with Bano;
- convert funds from one currency to another currency;
- make payments to a bank account held in your name with an Australian ADI;
- make payments to a third party’s bank account held with an Australian ADI or another institution;
- make payments to a third party’s account held with Bano;
- make payments to a third party bank account held with an overseas bank through the SWIFT network; and
- make payments to merchants from your Bano account with a Visa prepaid card.
You can access your Bano Account via the Bano Application. To login to your Bano Account you must enter your account login and password. You must keep your account login and password secure at all times.
You will not earn any interest on funds held in your Bano Account, however, we may earn interest on the funds held in your Bano Account.
The Account includes a foreign currency exchange service, which allows you to convert AUD held in your Account to another Supported Currency as part of making a payment or transfer from your Account. The conversion is undertaken in real-time once you have accepted our foreign exchange conversion terms, which includes the exchange rate. However Bano may refuse to enter into, or cancel, any foreign currency conversion at its absolute discretion.
You can make payments in AUD or another Supported Currency from your Bano Account. Bano may place limits on the amount of funds that you can receive, hold, transfer and withdraw from your Bano Account to comply with regulatory requirements. Any such limits can be viewed on Bano’s website www.banofinancial.com or you can contact us to request this information without charge.
You can transfer AUD into your Bano Account from a bank account that you hold with a bank by following the instructions on the Bano Application. Other people using the Australian banking system can also transfer AUD into your Bano Account. In some circumstances, you may also receive funds in another Supported Currency. From time to time, we may allow you to receive or load funds into your Bano Account in different ways.
You can transfer the funds held in your Bano Account to an Australian bank account held in your name, to a third party’s Bano Account, or to a third party’s Australian bank account or overseas bank account by following the instructions on the Bano Application.
You are also able to review and check your Bano Account balance 24 hours a day, 7 days a week, and view your Bano Account statements.
The list of Supported Currencies is available on our website and subject to change from time to time.
6. HOW DO WE HANDLE YOUR MONEY?
Your Bano Account is an electronic payment facility. The funds shown in your Bano Account will be held in a trust account with Cuscal Limited (“Cuscal”) until you transfer your funds to another person or withdraw your funds. Your funds are segregated from our money and held in a pooled trust account held by us with Cuscal, an Australian financial institution licensed by the Australian Prudential Regulatory Authority (APRA) to carry on banking business, including accepting deposits from the public in accordance with Australian law.
You have no right to any interest on funds deposited in our designated client money accounts. Individual Bano Accounts are not separated from each other but are pooled together. The money is held on trust for you until you transfer or withdraw the money or otherwise provide us with a legal right to that money because of outstanding fees owed to us or in such other circumstances as referred to in the Terms and Conditions, which is set out on our website.
Sometimes there may be a discrepancy in the balance shown to you via the Bano Account, and the amount of client money we hold. That may be because of uncleared funds, software malfunction, or if we otherwise take action under our Terms and Conditions which may include freezing your account if you, say, breach the Terms and Conditions.
You can ask us for records about money we have received from you, on your behalf, or for your benefit, where that money was client money. We will provide you with the records within 5 business days or such longer period as we may agree to in writing with you.
There is also a counterparty risk that you may lose some or all of your money if there is a deficiency in the designated segregated account. See the section below titled “Significant Risks Of Our Products” for more information concerning counterparty risk.
7. SIGNIFICANT BENEFITS OF OUR PRODUCTS
7.1 Access to your Bano Account at any time
You can access your Bano Account and our services 24 hours a day, 7 days a week.
7.2 Access to transaction history
You are able to access your complete Bano Account transaction history at all times.
7.3 Instant money transfers in certain circumstances
Certain payments will be instantaneous, including:
- payments made in AUD from your Bano Account to a third party’s account held with Bano;
- payments in AUD from a third party’s Bano account to your Bano Account;
- payments made in AUD to your Bano Account from a third party’s bank account held with an Australian Authorised Deposit-taking Institution where the payment is made via the New Payments Platform;
- payments made in AUD from your Bano Account to a third party’s bank account held with an Australian Authorised Deposit-taking Institution where the payment is made via the New Payments Platform.
7.4 Currency exchange
You are able to convert AUD to another Supported Currency for the purposes of making a payment or transfer of funds from your Account. The currency exchange occurs immediately following your acceptance of the foreign exchange conversion terms proposed by Bano.
8. SIGNIFICANT RISKS OF OUR PRODUCTS
8.1 Incorrect beneficiary or other payment detail errors
Bano will not refund your money if you make an error when providing instructions in relation to the transfer or withdrawal of funds from your Bano Account. You are responsible for any errors or mistakes made while transacting on your Bano Account. There is also the risk that a person may make an error when attempting to transfer funds to your Bano Account so that they are not received into your Bano Account. There is a further risk that a person may mistakenly transfer funds to your Bano Account and that those funds must be returned.
8.2 Payment reversals
Bano may, without notice, reverse a transaction or remove funds from your Bano Account in certain circumstances including where fraud is suspected or where we reasonably believe that there is a risk associated with the transaction or your Bano Account.
8.3 Delay or loss of funds
There is a risk that your money may be delayed or lost due to unforeseen circumstances. Bano will not provide a refund in such circumstances. This includes catastrophic disasters, pandemics, terrorist attacks, and other events beyond our control that affect our services.
8.4 Operational risk
The Bano Application and website are operational 24 hours a day, seven days a week. Bano’s telephone lines are open Monday to Friday between 9am and 5pm (AEST), except for Australian public holidays.
We have obligations under Australia’s Anti-Money Laundering and Counter-Terrorism Financing laws. One of these obligations is to screen clients and transactions for risks of money laundering, terrorist financing and other criminal activity. There is a risk that a transaction may be delayed or cancelled due to the processes or systems that we have in place for these screening purposes. Our banking and other partners also use similar processes which may also delay or cancel a transaction without notice. Neither we, nor our banking and other partners, are required to tell you the reasons for the delay or cancellation. if there is a suspicion of money laundering, terrorism financing or other criminal activity
8.5 Account suspension and/or termination
We may hold, suspend or cancel your Bano Account in certain circumstances including where fraud is suspected, where we reasonably believe there is a risk associated with your Bano Account or where you have breached our Terms and Conditions.
There is a risk that your Bano Account or contact details may become compromised and we receive an instruction that appears to be from you, to pay money on your behalf. If we send money in these circumstances you will be solely responsible for any loss if it is as a result of an unauthorised data breach or data disclosure or cyber-attack against you, your business, your Bano Account or your email account.
8.7 Systems risks
Bano relies on technology providers to provide you with our services. We ensure that these systems are regularly updated and maintained. Any disruption to the system of a third party provider is beyond our control and we will not be liable for the disruption.
8.8 Electronic systems
We take steps to ensure that our electronic systems are regularly updated and maintained. However, there are also risks associated with the use of software including errors and buys, and delays or interrupted service. This means that you may be unable to use our website and use our products when you wish and you may suffer a loss
8.9 Use and access to the Bano Application
You are responsible for providing and maintaining the means by which you access the Bano Application. These may include, without limitation, a personal computer, modem and telephone or other access system available to you.
While the internet is generally reliable, technical problems or other conditions may delay or prevent you from accessing our website or trading platform. If you are unable to access the internet and thus, the Bano Application, it may mean you are unable to transact on your Bano Account when you want, and you may suffer a loss as a result.
We reserve the right to suspend the operation of the Bano Application(and website) or any part or section of them.
8.10 Discretionary powers
Under the Terms and Conditions, Bano has a number of discretionary powers which may affect you. You should ensure that you understand these discretionary powers by reading the Terms and Conditions carefully.
8.11 No cooling off
There are no cooling off rights in relation to our products or services.
8.12 Counterparty risk
You are reliant on our ability to meet our obligations to you under the Terms and Conditions. This risk is often described as “counterparty risk”. We are also reliant on agreements that we have entered into with third party service providers and the actions of these third parties may impact on our ability to fulfill our obligations to you.
If our business becomes insolvent, you will become an unsecured creditor to the extent that you have money in your Bano Account. The extent to which you may recover these funds will be determined by applicable insolvency laws.
8.13 Exchange rate risk
Foreign currency exchange rates are subject to fluctuations which are outside our control. If you exchange currency as part of making a payment or transfer, you will be subject to fluctuations in the value of that currency. If funds are reversed or paid to the Account in a currency other than AUD, then you may suffer loss resulting from any movements in the currencies before funds can be converted to AUD and settled to your Account.
8.14 Non-supported payments
There is a risk that you may make a payment in a foreign currency to an account which does not accept or otherwise accommodate that currency. In these circumstances, the beneficiary bank may convert the foreign currency to another currency which is compatible with the beneficiary bank account. Fees and charges, including foreign currency conversion charges, may apply in those circumstances.
9. HOW WE ARE PAID FOR OUR SERVICES
We may charge you a fee for providing you with our services. Our fees are published on our website www.banofinancial.com or you can contact us to request this information without charge. Our fees are updated from time to time.
Bano may introduce new fees and charges or increase its existing fees and charges at any time by giving you notice via the Bano website and/or Bano Application.
If you take out a financial product through us, Bano may receive payments in the form of initial commissions and/or ongoing commission from the financial product providers. These commission are included in the fees or premiums you pay for the product. They are not an additional cost to you.
10. HOW BANO AND THIRD PARTIES ARE REMUNERATED
Bano’s directors and employees (including any employees of a related body corporate) are remunerated by salary.
Our directors and employees may also be eligible for a discretionary bonus based on their performance, both financial and non-financial. Employees may also be rewarded by monetary and non-monetary benefits. It is not possible to determine in advance what (if any) additional benefits any employee will receive as these benefits are not generally attributed to any particular product or service they provide.
Bano’s shareholders (including any shareholders of a related body corporate) will also receive a benefit based on Bano’s ongoing company performance.
You may request more details about the way these people or entities are remunerated within a reasonable time after receiving this PDS and before any financial services are given to you.
Bano does not have any relationships or associations which might influence us in providing you with our financial products and services.
11. STOPPING OR CANCELLING A PAYMENT
Once a funds transfer has been processed from your Bano Account, it will be extremely difficult for us to cancel it. An attempt to recall the funds can be made but will be subject to further fees charged by the banks/service providers involved. Those charges will be passed on to you and are outside of our control. We will also pass on to you any costs we incur (including foreign exchange costs) in arranging the recall. We will also charge you an administration fee for assisting with the recall.
If you wish to cancel a transaction, we will charge you a cancellation fee in addition to requiring you to reimburse us for our losses incurred as a result of the cancellation. The amount of the cancellation fee is available on our website or by contacting us to request a copy without charge.
If you believe that you have instructed to make a funds transfer in error or that an unauthorised transaction has occurred, you must notify us immediately.
We are not obliged to provide you with any services or products when you request that we do so. If we do agree to provide a service and/or product to you, then we may terminate, delay, suspend, block or refuse to enter, adjust or complete a transaction if we believe on reasonable grounds that, for example:
- (a) you are otherwise in breach of the Terms and Conditions; or
- (b) providing you with a service or product may breach any law in Australia or any other country;
and we will incur no liability if we do so.
12. TERMS AND CONDITIONS
Bano’s Terms and Conditions are set out on the Bano website. You must agree to these Terms and conditions before we provide our services to you. You should read the Terms and Conditions carefully to determine whether or not you would like to use our services.
You will be required to indemnify Bano for any loss we incur as a result of us:
- (a) acting in good faith on your verbal or written instructions;
- (b) transferring funds to an incorrect beneficiary where the error was included in your instructions and you did not immediately tell us about the error;
- (c) transferring money to a third party because instructions that we relied upon were sent to us due to a fraud or cyber security incident or other breach that affected your business or email address or account details; or
- (d) having to terminate a transaction.
You will also be required to indemnify us for any loss that we incur as a result of you breaching any law or your agreement with us. To the maximum extent permitted by law, our aggregate liability to you will be capped and limited to the value of any fees you have paid to us.
When you use our services, you will be bound by our Terms and Conditions as amended from time to time, along with any other terms you are required to sign or acknowledge.
However, in the event of inconsistency, the terms in the legal documents described below will rank according to the following priority, to the extent of any inconsistency:
- this PDS;
- any supplementary PDS;
- the Terms and Conditions as amended from time to time;
- Account Opening Form.
Information in this PDS is subject to change from time to time and is up to date as at the date stated at the start of this PDS.
You must provide all information to us which we reasonably require of you to comply with any law in Australia or any other country. In particular, you must provide adequate identification before you can use our products or services.
We may disclose any information that you provide to a relevant authority where required by any law in Australia or any other country.
We may delay, block or refuse to enter, adjust or complete a transaction if we believe on reasonable grounds that making the payment may breach any law in Australia or any other country, and we will incur no liability if we do so.
We are not liable for any loss that arises from incorrect identification information being provided by you.
Unless you have disclosed to us that you are acting in a trustee capacity or on behalf of another party, you warrant that you are acting on your own behalf when obtaining services from us.
When you use our services, you are promising that you will not breach any law in Australia or any other country.
13. PROVIDING INSTRUCTIONS BY TELEPHONE
If you wish to use our services, you may give us your instructions via the Bano Application by logging in to your Bano Account. We only offer telephone services if the Bano Application is unavailable for some reason.
When providing instructions by telephone, you will need to provide us with adequate identification information.
14. TAX IMPLICATIONS
There may be tax implications for you in relation to any transactions you enter into in relation to your Bano Account.
Taxation laws are very complex and vary depending on your personal circumstances. Accordingly, you should discuss any taxation questions you may have with your tax adviser before using our products or services.
15. OUR ROLES
Bano is the product issuer of the non-cash payment product described in this PDS. This means that we provide the facility you use to receive and transfer money and do not act on behalf of anyone else.
We are also the service provider. Our Representatives can give you general advice and help you use our services. This role is undertaken on behalf of the product issuer.
16. WHAT SHOULD YOU DO IF YOU HAVE A COMPLAINT?
We have established procedures to ensure that all enquiries and complaints are dealt with.
In the event you have a complaint, you can contact our Complaints Officer by email email@example.com or by phone 1300 088 155 and discuss your complaint.
We will try and resolve your complaint quickly, fairly and within prescribed time limits.
If the complaint cannot be resolved to your satisfaction, you may have the right to refer the matter to the Australian Financial Complaints Authority (AFCA) which is an external dispute resolution service of which Bano is a member (member number 78414). AFCA provides fair and independent financial services complaint resolution that is free to consumers.
You can contact AFCA:
- By phone: 1800 931 678 (if in Australia) or +61 1800 931 678 (if outside Australia);
- in writing: GPO Box 3, Melbourne, Victoria, 3001, Australia;
- online: www.afca.org.au; or
- by email: firstname.lastname@example.org.
Bano will remain a member of AFCA for a period 12 month after Bano stops relying on the ERS exemption in relation to each financial service tested, unless Bano obtains an AFSL in which case it will remain a member of AFCA.
The privacy of your information is important to us. We have practices which include the secure storage of personal information and safeguards against the accidental release of personal information.
You will be required to provide us with certain information to enable us to comply with our obligations under Australia’s Anti-Money Laundering and Counter-Terrorism Financing laws.
- AUD refers to the Australian dollar
- Bano means Bano Pty Ltd ACN 643 260 431.
- Bano Account means the digital wallet that we provide to you which enables you to receive and make payments.
- Bano Application means the application downloaded by a user to a mobile device
- PDS means this Product Disclosure Statement.
- Representative includes a director or employee of Bano, and a director or employee of any company related to Bano.
- Retail Client means a customer or a potential customer of Bano who is not a Wholesale Client.
- Supported Currency means each currency approved by Bano from time to time that can be used to make a payment from the Account.
- Terms and Conditions refers to the terms and conditions that you are required to agree to before you can use the products described in this PDS. They are incorporated by reference into the PDS. You can obtain a free copy of this document by contacting us using the details at the start of this PDS.
- Wholesale Client has the same meaning as in section 761G of the Corporations Act 2001 (Cth) but does not include a Sophisticated Investor.