Laws and Regulations Database of the Central Bank of the Republic of China(Taiwan)

These Regulations are prescribed pursuant to Paragraph 2, Article 35 of "the Central Bank of the Republic of China (Taiwan) Act ".

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.

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.

The term "foreign exchange business" as used in these Regulations includes the following:

1.Export-related foreign exchange business;

2.Import-related foreign exchange business;

3.Outward and inward remittance business (including purchase and sale of foreign currency cash and traveler's checks) ;

4.Foreign currency deposit business;

5.Foreign currency loan business;

6.Foreign currency guarantee business;

7.Foreign exchange derivatives business; and

8.Other foreign exchange businesses.

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:

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.

2.Contracts composed of the contracts mentioned in the preceding subparagraph.

3.Structured products involving foreign exchange.

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.

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.

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”).

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.

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.