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

Chapter 2　　Application for and Commencement of Foreign Exchange Business

Article 6

Unless otherwise provided by these Regulations or the Bank, a banking
enterprise may engage in foreign exchange business only after it has 
applied to the Bank and has been issued a certificate of authorization
or a letter of approval.

Unless otherwise provided by these Regulations or the Bank, banking 
enterprises shall not engage in any foreign exchange business not yet 
approved by the Bank or reported to the Bank for record.

Article 7

Banks and Agricultural Bank may apply for approval to engage in all
or part of the business categories listed in Paragraph 1 of Article 
4 herein.

Chunghwa Post may apply for approval to engage in outward and inward 
remittances or purchase and sale of foreign currency cash and 
traveler's checks.

Credit cooperatives and credit departments of farmers' or fishermen's 
associations may apply for approval to engage in purchase and sale of 
foreign currency cash and traveler's checks.

Article 8

Unless otherwise provided by these Regulations or other laws and 
regulations, banks and Agricultural Bank that apply for approval to 
become authorized banks shall comply with the following provisions:

1.Domestic banks and Agricultural Bank shall:
(1) Maintain the ratio of regulatory capital to risk-weighted assets 
　　at a level in compliance with the requirements set forth by the 
　　competent authority;
(2) Deploy sufficient experienced foreign exchange personnel to 
　　conduct foreign exchange businesses;
(3) Participate in joint processing of foreign exchange businesses 
　　with other authorized banks for an accumulated amount up to USD 400 
　　million or up to 7,000 transactions;
(4) Maintain a sound financial position for the last three years; and 
(5) Have not had any sanction or correction imposed by the competent 
　　authority due to violation of financial regulations in the past 
　　year or have made concrete improvements recognized by the competent 
　　authority if there has been any violation of financial regulations.

2.Branches of foreign banks in Taiwan (hereinafter referred to as 
　foreign banks) shall deploy sufficient experienced foreign exchange 
　personnel to conduct foreign exchange businesses.

Internet-only banks that apply for approval to become authorized banks 
shall comply with the following provisions:
(1) Maintain the ratio of regulatory capital to risk-weighted assets 
　　at a level in compliance with the requirements set forth by the 
　　competent authority;
(2) Deploy sufficient experienced foreign exchange personnel to conduct 
　　foreign exchange businesses;
(3) Have not had any sanction or correction imposed by the competent 
　　authority due to violation of financial regulations in the past 
　　year or after obtaining the approval of establishment from the 
　　competent authority; have made concrete improvements recognized by 
　　the competent authority if there has been any violation of financial 
　　regulations.

When a bank or Agricultural Bank applies to the competent authority
for establishing an international banking department to engage in 
foreign exchange business, the competent authority shall forward the 
application to the Bank for reviewing the qualifications prescribed 
in Subparagraph 1 of the Paragraph 1.

Foreign banks approved to engage in foreign exchange business within the 
territory of the Republic of China may remit inwardly or outwardly capital 
or working capital only after having obtained a separate approval from the 
Financial Supervisory Commission (hereinafter referred to as the FSC).

Article 9

A bank or Agricultural Bank intending to apply for approval to 
become an authorized bank shall submit the following documents:

1.Documents evidencing the competent authority's approval for 
　registration of establishment;

2.Intended Scope of foreign exchange business;

3.Names and locations of overseas correspondent banks;

4.Name and address of the responsible person within the 
　territory of the Republic of China;

5.Capital and working capital to be remitted to the territory
　of the Republic of China, as well as the categories and amounts
　of foreign exchange funding sources; and

6.Other data or documents specified by the Bank.

Article 10
For the branches of an authorized bank to apply for approval to 
engage in the foreign exchange business listed in Subparagraphs 
1 through 6, Paragraph 1, Article 4 herein, the head office of 
the domestic bank or Agricultural Bank, or the Taipei branch of 
a foreign bank shall submit documentation detailing the intended 
scope of business, and attach photocopies of the branch's business 
license and the curricula vitae of operations and auditing personnel.

Article 11

When an authorized bank engages in foreign exchange business listed
in Subparagraphs 1 through 6, Paragraph 1, Article 4 herein, its 
operations and auditing personnel shall hold foreign exchange business
licenses or meet the following qualifications:

1.An operations personnel shall have at least three-month 
　experience in the relevant foreign exchange business.

2.An auditing personnel shall have at least six-month 
　experience in the relevant foreign exchange business.

Article 12

An authorized bank may engage in the following foreign exchange
derivatives businesses without application: 

1.Foreign exchange forward (excluding New Taiwan dollar 
　(NTD) non-deliverable forward); 

2.Foreign Exchange swap; and

3. Combinations of foreign exchange derivatives not involving NTD 
　 exchange rate and already approved by the Bank or reported to 
　 the Bank for record that are linked to the underlying asset with 
　 the same risk and combined through the same transaction contract 
　 excluding complex high-risk foreign exchange derivatives transactions
　 entered with customers other than professional institutional investors 
　 and high net worth corporate investors.

4. Foreign exchange derivatives transactions not involving 
　 NTD exchange rate between domestic authorized banks and 
　 between a domestic authorized bank and a foreign bank. 

5. Domestic and foreign futures contracts not involving NTD 
　 exchange rate traded by a futures trader.

To engage in any foreign exchange derivatives business other 
than those provided in the preceding paragraph, an authorized 
bank shall apply to the Bank for approval or report to the Bank 
for record based on the following criteria:

1.Application for approval before commencing:

(1)First-time application for foreign exchange derivatives 
　 business.

(2)Foreign exchange derivatives business not yet approved by 
　 the Bank or has been approved for less than six months, and 
　 foreign exchange derivatives linked thereof.

(3)NTD non-deliverable foreign exchange forward business.

(4)Foreign derivatives involving NTD exchange rate, combinations 
　 thereof and combinations with other derivatives, NTD principal,
　 foreign currency principal, or other business (product).

(5)Discretionary foreign currency margin trading business.

2.Reporting for record before commencing: The business of recommending
　those foreign exchange derivatives products already approved by the 
　Bank or reported to the Bank for record by the designated branch of
　an authorized bank under the authorization of its head office.

3.Reporting for record after commencing: Only for authorized banks
　that have been approved to engage in any of the foreign exchange 
　derivatives businesses.

(1)Foreign exchange derivatives business approved by the Bank
　 for over six months and not involving NTD exchange rate.

(2)Foreign exchange derivatives business provided to professional 
　 institutional investors and high net worth corporate investors 
　 without involving NTD exchange rate and not yet approved by the 
　 Bank or approved for less than six months, which should comply 
　 with the relevant rules of the competent authority.

(3)Information and consulting services on offshore financial derivatives
　 under the approval of the competent authority. The underlying asset 
　 shall not involve domestic interest rates, exchange rates, equities, 
　 indices, commodities, credit events, fixed-income or other interests.

Where a professional institutional investor accepts trading orders, 
signs a trust agreement, discretionary services agreement, 
investment-linked insurance contract or offers privately placed fund,
and carries out transactions provided in Items 2 and 3, Subparagraph 3 
of the preceding paragraph in its name, the trustors/mandatories, 
policyholders or subscribers shall also be a professional institutional 
investor or high net worth corporate investor.

Article 13

An authorized bank shall submit the following documents when applying
to the Bank for approval to engage in businesses under Subparagraph 1,
Paragraph 2 of the preceding article: 
1.A statement of regulatory compliance;
2.Minutes with the resolution of the board of directors to engage in 
　the foreign exchange derivatives business for a domestic bank and 
　Agricultural Bank or letter of authorization from the head office or 
　the regional command center of a foreign bank;
3.Curricula vitae of operations and relevant management personnel;
4.Risk disclosure statement;
5.Product profiles;
6.Operational guidelines; and
7.Risk management related documents.

An authorized bank shall submit the following documents when reporting 
to the Bank for record to engage in businesses under Subparagraph 2, 
Paragraph 2 of the preceding article and may commence the businesses 
only after receiving a letter of acknowledgement from the Bank:
1.A photocopy of letter of consent from the competent authority;
2.Minutes with the resolution of the board of directors to engage in 
　businesses under this paragraph for domestic banks and Agricultural 
　Bank or letter of authorization from the head office or the regional 
　command center of a foreign bank; and
3.Authorization guidelines set out according to relevant rules.

Within one week of carrying out the first transaction under Items 1 
and 2, Subparagraph 3, Paragraph 2 of the preceding article, an authorized
bank shall report to the Bank for record with the product description 
(must be a product actually transacted with the date of transaction, date 
of settlement, expiration date, notional principal amount, exercise price 
or other relevant indexes and parameters) and documents provided in 
Subparagraphs 1 ~ 5 of Paragraph 1 hereof. The authorized bank may carry 
out the next transaction of the business only after receiving a letter of 
acknowledgement from the Bank.

When an authorized bank engages in businesses under Items 3, Subparagraph 3,
Paragraph 2 of the preceding article, it shall summit a letter of approval 
from the competent authority and documents provided in Subparagraphs 1 ~ 3, 
Paragraph 1 hereof within one week after commencing the business.

Article 14

When engaging in the foreign exchange derivatives business listed in Subparagraph 
7, Paragraph 1, Article 4 herein, the operations and management personnel of an 
authorized bank shall meet at least one of the following qualifications:
1.Having completed at least 60 hours of training on derivatives and risk 
　management held by domestic financial training institutions and received a 
　certificate therefor; the training  must cover theories and practices on 
　foreign exchange derivatives transactions, relevant laws and regulations, 
　accounting and risk management;
2.Having one year of internship in the foreign exchange derivatives business at 
　a domestic or foreign financial institution; or
3.Having at least six-month working experience in the foreign exchange 
　derivatives business at domestic or foreign financial institutions. 

Operations and management personnel handling the recommendation of foreign 
exchange derivatives shall meet at least one of the following qualifications:
1.Having one of the qualifications listed in the preceding paragraph;
2.Having passed the qualification exam for structured products salesperson held 
　by domestic financial training institutions and received a certificate therefor
　; or
3.Having passed the qualification exam for financial derivatives salesperson 
　held by domestic financial training institutions and received a certificate 
　therefor.

Operations and management personnel handling the trading, marketing, risk 
management, settlement or accounting, as well as compliance personnel, auditing 
personnel, and operations and management personnel handling the recommendation 
of foreign exchange derivatives shall attend at least 6 hours of training 
courses on derivatives. The training courses on derivatives offered by domestic 
financial training institutions regarding relevant regulations or non-compliance 
cases shall comprise no less than one half of the total hours of training 
received.

Personnel of an authorized bank handling the foreign exchange derivatives 
business shall possess professional ability, and the authorized bank shall draw 
up professional qualification requirements and a related training system.

Article 15
 

To engage in foreign currency settlement business through a domestic 
clearing institution, authorized banks shall apply to the Bank for 
approval to become a foreign currency settlement bank.

Authorized banks making an application mentioned in the preceding 
paragraph shall submit the following documents and information to 
the Bank for review within the designated period set by the Bank. 
The Bank will select and give approval to one bank to conduct the 
foreign currency settlement business after reviewing those documents:
1.A business plan to engage in foreign currency settlement business;
2.The latest audited financial report; and
3.Other information that supports the applicant's eligibility.

The designated period referred to in the preceding paragraph will 
be announced by the Bank.

A foreign currency settlement bank approved by the Bank shall be 
granted a five-year concession period to engage in the foreign 
currency settlement business, starting from the date of commencement.

Article 16
An authorized bank concurrently conducting the trust business that engages in 
the NTD or foreign currency non-discretionary money trust business investing in 
foreign-currency denominated securities shall submit the following documents to 
the Bank for approval:
1.Approval documents from the competent authority;
2.Minutes with the resolution of the board of directors to engage in the NTD or 
　foreign currency non-discretionary money trust business for a domestic bank 
　and Agricultural Bank or a letter of authorization from the head office or a 
　regional headquarters of a foreign bank;
3.A regulatory compliance statement;
4.Descriptions of the designated currency for receipts and disbursements and 
　foreign exchange settlement procedures; and
5.Other documents specified by the Bank.

Article 17  

An authorized bank concurrently conducting the trust business that engages in 
the foreign currency denominated collective investment trust account business 
or offers and issues foreign currency denominated collective trust funds inside 
the ROC shall submit the following documents to the Bank for approval before 
establishing or offering such fund for the first time:
1. Approval documents from the competent authority. Exemptions: 
　(1)Banks that establish foreign currency denominated collective investment 
　　 trust accounts which accept funds from professional investors referred to 
　　 in the Regulations Governing Offshore Structured Products (it should be 
　　 stated in the application letter) only ; or
　(2)Banks that offer and issue the foreign currency denominated collective 
　　 trust fund;
2. A management and utilization plan for the foreign currency denominated 
　 collective investment trust account established for the first time or an 
　 offering and issuance plan for the collective trust fund offered for the 
　 first time;
3. A resolution of the board of directors for a domestic bank and Agricultural 
　 Bank to engage in the foreign currency denominated collective investment 
　 trust account business or a letter of authorization from the head office or 
　 the regional headquarters of a foreign bank;
4. A regulatory compliance statement; and
5. Other documents required by the Bank.

An authorized bank that has obtained approval from the Bank to engage in the 
business mentioned in the preceding paragraph is not required to apply to the 
Bank for approval on a case-by-case basis subsequently.

Article 17-1 
An authorized bank concurrently conducting the trust business that engages in 
foreign currency trust businesses other than those under the preceding two 
articles shall submit the following documents to the Bank for approval:
1. Approval documents from the competent authority or relevant supporting 
　 documents that meet the requirements under Article 5 of the Regulations 
　 Governing the Scope of Business, Restrictions on Transfer of Beneficiary 
　 Rights, Risk Disclosure, Marketing, and Conclusion of Contract by Trust 
　 Enterprises;
2. Description of operations (exempted for applications for engaging in the 
　 foreign currency money trust or foreign currency securities trust), which 
　 should include the following particulars:
　 (1) Name of business (according to the business activities and classification 
　　　 provided in Article 16 of the Trust Enterprise Act and Articles 6 ~ 8 of 
　　　 the Enforcement Rules of the Trust Enterprise Act);
　 (2) Introduction of business;
　 (3) Operation process; and
　 (4) Description of receipts and payments of funds;
3. A resolution made by the board of directors of a domestic bank or the 
　 Agricultural Bank of Taiwan to engage in the business or a letter of 
　 authorization from the head office or the regional headquarters of a foreign 
　 bank;
4. A regulatory compliance statement; and
5. Other documents required by the Bank.

Article 18
 

To set up automatic teller machines to process foreign exchange businesses, 
an authorized bank shall meet all regulations set forth by the FSC regarding 
service items that may be provided by automatic teller machines and related 
operation security control and management regulations. It shall also submit 
the description of operations and identify the names of the offices controlling 
automatic teller machines and their locations, and report to the Bank for 
record within one week after the setup.

If there are changes in the description of operations regarding service items, 
principles of exchange rate determination, exchange rate disclosure methods or 
foreign exchange declaration methods, the authorized bank shall report to the 
Bank for record within one week after the change.

If an authorized bank that has reported to the Bank for record according to 
Paragraph 1 intends to set up additional automatic teller machines or to close 
automatic teller machines, the authorized bank shall inform the Bank by 
submitting a document identifying the names of the offices controlling 
automatic teller machines and a list of locations within one week after the 
setup or closing of automatic teller machines.

Article 19

When engaging in foreign exchange businesses through electronic or communications 
equipment, authorized banks and Chunghwa Post shall meet all regulations set 
forth by the FSC regarding the scope of services that may be provided by banks 
and apply to the Bank for approval. However, authorized banks that comply with 
the Bank's provisions may proceed with those businesses by reporting to the Bank 
for record or without making an application.

Authorized banks and Chunghwa Post that apply to the Bank for approval in 
accordance with the preceding paragraph shall submit the following documents:
1.The description of operations;
2.The code of remittance classification;
3.The statement signed by the head office chief compliance officer, chief 
　auditor and head of information department; and
4.Controls for preventing customers from dodging reporting obligation as 
　required by law through breaking up a single, large settlement amount into 
　multiple smaller ones (exempted if the operation does not involve the foreign 
　exchange settlement against NTD).

An authorized bank that reports to the Bank for record in accordance with 
Paragraph 1 hereof shall submit the documents provided in the preceding 
paragraph and a simulation test report on its foreign exchange operation 
process of online banking system.

Authorized banks and Chunghwa Post that engage in businesses mentioned in 
Paragraph 1 hereof shall comply with the following provisions:
1.The system shall have a function of computerized verification of the code of 
　remittance classification and a mechanism to ensure compliance with the 
　provisions governing renminbi exchange or remittance to Mainland China Area.
2.For an authorized bank that allows customers to make the declaration of 
　foreign exchange settlement against NTD through the Internet in accordance 
　with Paragraph 1, Article 10 of the Regulations Governing the Declaration of 
　Foreign Exchange Receipts and Disbursements or Transactions (hereinafter 
　referred to as Regulations for Declaration), its system shall first pass the 
　test of connection with the Bank's Foreign Exchange Data Processing System 
　before applying to the Bank for approval or reporting to the Bank for record.
3.Other provisions set forth by the Bank for proper administration of businesses 
　under Paragraph 1 hereof.

An Internet-only bank that engages in foreign exchange businesses involving 
the foreign exchange settlement against NTD through electronic or communications 
equipment with a value equal to or over an equivalent of NTD 500,000 shall allow 
declarants to make the declaration of foreign exchange settlement against NTD 
through the Internet in accordance with Paragraph 1, Article 10 of the 
Regulations for Declaration.

The provisions mentioned in Paragraph 1 hereof that allow for proceeding with 
businesses by reporting to the Bank for record or without making an application 
and the other provisions mentioned in Subparagraph 3, Paragraph 4 will be 
prescribed separately by the Bank.

Article 20
　

To engage in foreign exchange business during non-standard business 
hours, an authorized bank shall submit a description of the relevant 
operations (including the cut off time for including the relevant 
transactions in the same-day or next-day "Daily Transaction Report" 
and "Daily Foreign Exchange Position Report"; the preceding provision 
applies when there is a change to the services.

Designated branches of an authorized bank that has been approved by 
the Bank according to the preceding paragraph are not required to 
apply for separate approval on a case-by-case basis to conduct the
business, provided the branches engage in the foreign exchange business
in the preceding paragraph in accordance with the authorized bank's 
description of operations.

Article 21
Where an authorized bank has established its own domestic foreign 
exchange processing center to process relevant foreign exchange 
operations, it shall submit a description of relevant operations, 
operating procedures, and the curricula vitae of operations and 
auditing personnel to the Bank for record within one week after 
commencing its operation. In the event that an authorized bank uses 
other methods to assign a third party to process relevant foreign 
exchange operations, the bank shall apply to the Bank for approval 
by submitting the operational plans for outsourcing. If the Bank has
not objected within 15 days from the day following receipt of the 
application, the bank may proceed to process the operation straightway.

Article 22
To issue foreign currency bank debentures, an authorized bank shall, within 
one week after issuance, submit the letter of approval (letter of 
acknowledgement) from the competent authority and relevant information 
(including issue date, issue amount, terms and conditions, region or country 
in which the debenture will be issued and the fund utilization plan) to the 
Bank for record. However, pursuant to the Regulations Governing the Offering 
and Issuance of Overseas Securities by Issuers, the procedure for applying for 
issuing foreign currency convertible bank debentures, foreign currency 
exchangeable bank debentures or other foreign currency bank debentures 
involving equities outside the ROC shall follow the provisions of the 
aforementioned regulations.

Article 23
　

Banking enterprises other than authorized banks that plan to engage 
in purchase and sale of foreign currency cash and traveler's checks 
shall apply to the Bank for approval according to the following rules:
1.The head offices for domestic banks, Agricultural Bank and their 
　branches, and the Taipei branch for foreign banks, shall submit a 
　written application together with a photocopy of its business 
　license (or a photocopy of establishment approval letter issued by
　the competent authority) and the curricula vitae of operations and 
　auditing personnel.
2.For credit cooperatives (head office or branches), the head office 
　shall submit a written application together with a photocopy of the 
　credit cooperative's business license, the curricula vitae of the 
　operations and auditing personnel, the balance sheet and statement 
　of comprehensive income of the preceding fiscal year, and documents 
　evidencing whether the credit cooperative has been subject to any 
　sanctions for violation of financial regulations in the past year.
3.For the credit departments of farmers' or fishermen's associations 
　and their branches, the farmers' or fishermen's association shall 
　submit a written application along with a photocopy of the approval 
　certificate and curricula vitae of operations and auditing personnel 
　to be reviewed and approved by the Council of Agriculture, Executive 
　Yuan before the application is forwarded to the Bank for approval.
4.For Chunghwa Post and its post offices, Chunghwa Post's head office 
　shall submit a written application along with a photocopy of the FSC's
　letter of approval (for post offices established after January 1, 2003),
　and curricula vitae of operations and auditing personnel to the Bank 
　for approval.
　

Operations and auditing personnel handling the business mentioned in 
the preceding paragraph shall have at least five days experience in 
related foreign exchange business.
　

The provisions of Subparagraph 4, Paragraph 1 hereof shall apply 
mutatis mutandis to the approval process for outward and inward 
remittance business of Chunghwa Post and its post offices , and 
the provisions of Article 11 herein shall apply to the qualifications
of their operations and auditing personnel.

Article 24
 

When a banking enterprise that has been approved to engage in the foreign 
exchange business pursuant to Article 10 or Subparagraphs 1 ~ 3, Paragraph 1 of 
the preceding article changes its address or name, the banking enterprise 
shall, within two weeks before or after the changes take effect, submit approval 
documents from the competent authority, a photocopy of the new business license 
or the approval certificate received to apply to the Bank for a new certificate 
of authorization, or report to the Bank for record. In the event of relocation, 
the curricula vitae of operations and auditing personnel shall also be submitted 
to the Bank.

When Chunghwa Post or a post office under it that has been approved to engage in 
the foreign exchange business pursuant to Subparagraph 4 of Paragraph 1 or 
Paragraph 3 of the preceding article changes its address or name, Chunghwa Post 
shall, within two weeks before or after the changes take effect, submit a 
photocopy of the letter of approval from the FSC or the letter of approval from 
its head office to report to the Bank for record. In the event of relocation, 
the curricula vitae of operations and auditing personnel shall also be submitted 
to the Bank.

When a banking enterprise that has been approved to engage in the foreign 
exchange business is closed, the banking enterprise shall, within one week 
after the closure, turn in the certificate of authorization to the Bank or 
report to the Bank for record.

Article 25

Banking enterprises other than authorized banks that plan to engage 
in the Bank-approved business of purchase and sale of foreign currency 
cash and traveler's checks during non-standard business hours are not 
required to apply to the Bank for approval. 

The provisions of Article 20 herein shall apply mutatis mutandis to 
Chunghwa Post and its post offices conducting Bank-approved outward 
and inward remittance business during non-standard business hours.

Article 26
Banking enterprises applying for foreign exchange business or reporting
the business for record will be granted a designated period for providing
the supplementary documentation or information and making corrections if 
the documentation or required information submitted were found to be 
incomplete. The Bank may reject the application or reporting if the 
supplementary documentation or information and corrections were not 
submitted during the designated period.

Article 27

The Bank may reject a banking enterprise's application for foreign 
exchange business in the event of any of the following:
1.Qualifications of the applicant do not comply with the regulations;
2.The applicant has failed to assist declarants to fill out the 
　Declaration Statement of Foreign Exchange Receipts and Disbursements 
　or Transactions (hereinafter referred to as "Declaration Statement" ) 
　as required;
3.A high error rate in the certificates, reports and forms prepared by 
　the applicant;
4.The applicant had violated the provisions of these Regulations or 
　relevant rules in the past year and the violation is of a serious 
　nature; the applicant was ordered to rectify the situation by the Bank,
　but has failed to do so within the period specified by the Bank; or 
5.Other facts that are sufficient to indicate that the applicant may 
　hinder sound operations of the business, or that the applicant is 
　unable to meet financial policy requirements.

When a banking enterprise reports to the Bank for record with regard 
to the foreign exchange business it engages in, if the banking enterprise
submits false documents or the business reported does not fall under the 
types of business that require reporting for record, the Bank will reject 
the reporting, and depending on the severity of the situation, impose a 
warning, demand remedial action, or suspend the specific foreign exchange 
business for a specified period of time, or withdraw the banking enterprise’s 
privilege of commencing a foreign exchange business that requires reporting 
for record according to these Regulations by reporting the business to the 
Bank for record.

Article 28
 

If a banking enterprise has any of the following situations in conducting
foreign exchange business, the Bank may, depending on the severity of the 
situation, order the banking enterprise to suspend the business for a 
specified period of time, revoke or cancel all or part of the approved 
businesses, or bar the banking enterprise from applying for new foreign 
exchange business or add new branches to conduct the foreign exchange 
business for a specified period of time:
1.The banking enterprise fails to commence operation within six months 
　after being issued a certificate of authorization or letter of approval.
　The applicant may request for an extension with valid reasons. If 
　agreed by the Bank, the banking enterprise may have an extension of no 
　more than three months. An institution may apply for an extension only 
　once;
2.The banking enterprise has violated the provisions of these Regulations 
　and the violation is of a serious nature; or was ordered to rectify 
　the situation by the Bank, but has failed to do so within the period 
　specified by the Bank;
3.After the banking enterprise has been approved to engage in various 
　foreign exchange businesses, its original application documents were 
　found to contain false information or representation of a serious nature; 
4.The banking enterprise suspends operations, is dissolved, or declares 
　bankruptcy; or 
5.Other facts that are sufficient to indicate that the banking enterprise 
　may hinder sound operations of the business, or that the banking enterprise 
　is unable to meet financial policy requirements.

A banking enterprise whose approval is revoked or cancelled in accordance 
with the preceding paragraph shall, within seven days from receiving the 
disposition, turn in its certificate of authorization or letter of approval; 
should the banking enterprise fails to do so, the Bank will nullify the 
certificate or the approval.

A banking enterprise that is ordered by the Bank or the relevant competent 
authority to suspend or stop applying for foreign exchange business for a 
specified period of time shall not commence any foreign exchange business 
that requires reporting for record according to these Regulations by 
reporting the business with the Bank for record if the period of suspension 
has not expired or if it fails to propose proper, concrete improvement 
measures during the period of suspension, or if its proposed improvement 
measures have not been accepted by the competent authority.