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

Chapter 4　　Management of Renminbi Business

Article 50

An authorized bank that applies to the Bank for approval to become a 
Renminbi settlement bank in Taiwan area (hereinafter referred to as“RMB 
settlement bank”) and to engage in Renminbi clearing and settlement 
business in Taiwan area (hereinafter referred to as “RMB settlement 
business”) shall first obtain approval from the regulatory authority 
in Mainland China Area to engage in RMB clearing and settlement and 
submit the following documents:
1.Documents evidencing the approval described above; and
2.Documents describing the categories and contents of RMB settlement 
　business and related risk management mechanisms (including its head 
　office’s guarantee to render assistance, assume all payment liabilities 
　and provide liquidity support in the event of liquidity and/or payment 
　crisis).

A RMB settlement bank shall comply with the following rules in addition 
to the provisions in Article 39 herein:
1.Draw up a template for RMB settlement agreement to be signed with 
　financial institutions, and submit it to the Bank for prior approval.
2.Provide RMB related clearing and settlement services in accordance 
　with the approved contents of the template agreement mentioned in the 
　preceding subparagraph. Provide sufficient supply of RMB bills and 
　properly handle their repatriation.
3.Provide a list of financial institutions that have entered RMB settlement
　agreements and settlement-related statistical data requested by the Bank.
4.Engage in RMB settlement business during the concession period granted by 
　the Bank with reference to the authorization document mentioned in the 
　first subparagraph of the previous paragraph.

Article 51
Both domestic and foreign financial institutions may enter RMB settlement 
agreements with the RMB settlement bank; in the case of domestic financial 
institutions, the financial institution must be a banking enterprise that 
has been approved by the Bank to engage in foreign exchange or RMB business.

Article 52
Banking enterprises conducting RMB business shall comply with the 
following rules in addition to these Regulations and other rules 
governing foreign exchange business:
1.Unless otherwise regulated by the Bank, open a RMB settlement 
　account with the RMB settlement bank before engaging in RMB business; 
　the same provision shall apply to a banking enterprise that has 
　opened a RMB nostro account with an agent bank in Mainland China 
　Area (hereinafter referred to as “agent bank” ) and has submitted 
　the signed settlement agreement to the Bank for approval and record.
2.Cross-border trade in connection with RMB business involving the 
　transfer of funds into and out of Mainland China Area shall be cleared 
　and settled through the RMB settlement bank or an agent bank.
3.A banking enterprise that has already been approved by the Bank to 
　engage in purchase and sale of RMB bills shall carry out this business 
　in accordance with these Regulations.
4.In providing RMB purchase or sale services to natural persons, the 
　amount is limited to RMB 20,000 for cash transaction per person per 
　transaction, and RMB 20,000 for non-cash transaction per person per day.
5.In providing RMB bills withdrawal through a foreign currency ATM, the 
　amount of each withdrawal per person shall not exceed 20,000 RMB.
6.In providing natural persons with the service of RMB remittance to 
　Mainland China Area, the customers shall be limited to individuals 
　with a Republic of China Citizenship ID Card and the transaction must
　be carried out through the RMB settlement bank or an agent bank; in 
　addition, the remittance purpose shall fall under current account, 
　and the amount of remittance shall not exceed 80,000 RMB per person 
　per day.
7.Other rules set out by the Bank for proper management of RMB business.