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[Law Basis]
[Print]
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Chapter 1 General Provisions
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〈Basis of legislation〉
Article 1
These Regulations are prescribed pursuant to Paragraph 2, Article 35 of
"the Central Bank of the Republic of China (Taiwan) Act ".
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〈Application〉
Article 2
The provisions of these Regulations shall govern the foreign exchange
business of banking enterprises. Matters not provided herein shall be
subject to provisions under other relevant laws and regulations.
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〈Definitions of Banking Enterprise and Authorized Bank〉
Article 3
The term "banking enterprise" as used in these Regulations shall mean
banks, Agricultural Bank of Taiwan Corporation (hereinafter referred
to as "Agricultural Bank"), credit cooperatives, credit departments
of farmers' or fishermen’s associations, and the Chunghwa Post Co., Ltd.
(hereinafter referred to as "Chunghwa Post") inside the territory of
the Republic of China.
The term "authorized bank" as used in these Regulations shall mean banks
or Agricultural Bank approved by the Central Bank of the Republic of
China (Taiwan) (hereinafter referred to as the "Bank" ) to engage in
foreign exchange business and issued a certificate of authorization
therefor.
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〈Definition of Foreign Exchange Business〉
Article 4
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The term "foreign exchange business" as used in these Regulations
includes the following:
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1.Export-related foreign exchange business;
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2.Import-related foreign exchange business;
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3.Outward and inward remittance business (including purchase and
sale of foreign currency cash and traveler's checks) ;
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4.Foreign currency deposit business;
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5.Foreign currency loan business;
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6.Foreign currency guarantee business;
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7.Foreign exchange derivatives business; and
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8.Other foreign exchange businesses.
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The term "foreign exchange derivatives” as used in these Regulations
shall mean the following contracts excluding domestic and foreign
asset-backed securities, structured notes, and convertible or exchangeable
corporate bonds, as well as offshore structured products as defined in
the Regulations Governing Offshore Structured Products:
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1.Contracts involving foreign exchange and the values of which are
derived from interest rates, exchange rates, equities, indices,
commodities, credit events or other interests.
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2.Contracts composed of the contracts mentioned in the preceding
subparagraph.
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3.Structured products involving foreign exchange.
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The term "contracts" as used in Subparagraphs 1 and 2 of the preceding
paragraph shall mean margin contracts, futures contracts, forward
contracts, swap contracts, option contracts, or other contracts of a
similar nature.
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The term "structured product" as used in these Regulations shall
mean a synthetic contract composed of fixed-income products or
gold with derivatives, which cannot be offered in the name of
deposit.
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The term "complex high-risk foreign exchange derivatives" as used
in these Regulations shall mean foreign exchange derivatives that
meet the definition of complex high-risk product provided in the
Regulations Governing Internal Operating Systems and Procedures for
Banks Conducting Financial Derivatives Business (hereinafter referred
to as the“Regulations Governing Internal Operating Systems and
Procedures”).
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The Provisions of Paragraph 1 of Article 3, Subparagraph 1 and S
ubparagraph 2, Paragraph 1 of Article 3 of the Regulations Governing
Internal Operating Systems and Procedures shall apply mutatis mutandis
to the definitions of the terms “professional customer”,
“professional institutional investor” and “high net worth corporate
investor” in these regulations.
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〈Data Protection〉
Article 5
Unless otherwise provided by other laws or the competent authorities,
banking enterprises shall maintain the confidentiality of customer
information gathered from foreign exchange business, and shall adopt
proper security measures in compliance with Paragraph 1, Article 27
of the Personal Information Protection Act if personal information
is involved.
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