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

An insurance enterprise shall apply to the Bank to engage in foreign exchange business, and may engage in foreign exchange business only after being approved.

An insurance enterprise may apply to engage in all or some of the business categories listed in the preceding Article, and the Bank may approve on a category by category basis according to the needs of the insurance enterprise’s business.

Foreign exchange business may not be operated without the approval of the Bank.

Unless otherwise provided by these Regulations,the head office of an insurance enterprise applying to engage in foreign exchange business must submit a written application with the documents prescribed in Article 6 to the Bank for approval.

The branches within the territory of the Republic of China of a foreign insurance enterprise applying to engage in foreign exchange business must submit a written application with the documents prescribed in Article 6 to the Bank for approval.

An insurance enterprise applying to engage in the categories of foreign exchange business listed in Article 3 above shall submit the following documents:

1.Photocopies of the business license issued by the Financial Supervisory Commission (hereinafter referred to as the "FSC");

2.For domestic insurance enterprises, a resolution of the insurance company’s board of directors resolving to apply for the afore-mentioned foreign exchange business; for foreign insurance enterprises, a letter of authorization from the head office or regional command center;

3.Documents evidencing the FSC’s approval for engaging in specific categories of business, such as insurance, loan, or wealth management;

4.Statement of regulatory compliance signed by the responsible person of the insurance enterprise;

5.Business plan ( the content of which shall include business profiles, operational procedures, internal control system, internal audit system and accounting principles);

6.Notification of material facts (including risk disclosure statement); and

7.Other documents specified by the Bank.

When an insurance enterprise engaging exclusively in reinsurance business applies to engage in the business listed in Subparagraph 3 of Article 3, documents specified in Subparagraphs 3 and 6 of the preceding paragraph are not required.

Insurance enterprises applying for foreign exchange business will be granted a designated period for providing supplementary information and making corrections if the documents submitted are found to be incomplete or insufficient. The Bank may reject the application if supplementary information and corrections are not submitted within a designated period.

The Bank may reject an insurance 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 prescribed in Article 5;

2.The applicant has seriously violated the provisions of these Regulations or other relevant foreign exchange regulations or has failed to improve within the period specified by the Bank in the past year;

3.There is evidence indicating that the applicant may hinder sound operation of the business, or that the applicant is unable to meet financial policy requirements.

The Bank may revoke or cancel all or part of its approval of an insurance enterprise engaging in foreign exchange business in the event of any of the following, depending on the seriousness of the violation:

1.The insurance enterprise fails to commence operation within six months after being issued a letter of approval. The applicant may request for an extension with appropriate reasons. If approved, the insurance enterprise may have an extension of no more than three months. An institution may apply for an extension only once;

2.The insurance enterprise has seriously violated Paragraph 3, Article 4 or other provisions of these Regulations or has failed to improve within the period specified by the Bank;

3.After being approved to engage in various foreign exchange business, the insurance enterprise is found to have provided false information in its application that constitutes a serious violation;

4.The insurance enterprise suspends operations, is dissolved, or declares bankruptcy; or

5.There is evidence indicating that the applicant may hinder sound operations of the business, or that the applicant is unable to meet financial policy requirements.