Article 10
(Revocation or cancellation of Approval)
The Bank may revoke or cancel the approval for a financial institution to engage in
Renminbi purchase or sale business in the event of any of the following, depending
on the seriousness of the violation:
1.The financial institution fails to commence operation in six months after the
letter of approval has been issued. A financial institution may request for an
extension of the aforesaid deadline. Only one extension of no more than three
months can be granted;
2.The financial institution has violated paragraph 3 of Article 4 or any other
provisions of these Regulations seriously, or the applicant has failed to take
remedial actions within the period specified;
3.After obtaining approval to engage in Renminbi purchase or sale business, the
financial institution is found to have provided false information in its
application;
4.The financial institution suspends its business, is dissolved, or declared
bankruptcy; or
5.There is evidence indicating that the financial institution may hinder the sound
operation of the business, or that the financial institution is unable to meet
financial policy requirements.
If a financial institution that has been approved to engage in Renminbi coverage
business (referred to as “covering bank” hereunder) is found to be in any of the
following situations, the Bank may revoke or cancel the approval for its coverage
business:
1.The financial institution does not arrange the coverage of Renminbi notes with
any financial institutions in areas outside Taiwan Area in three months after the
letter of approval has been issued. But with legitimate reasons, the financial
institution may request for an extension of the aforementioned deadline.
2.The financial institution refuses to supply or accept Renminbi notes from other
financial institutions in the Taiwan Area without legitimate reasons and the
situation is of a serious nature or the financial institution has failed to take
remedial actions within the period specified.
3.The original application is found to contain false representation after the
issuance of an approval letter, or the financial institution subsequently fail to
comply with the approval requirements set out in paragraph 4 of Article 7.
4.The financial institution is found to be in a situation prescribed in
subparagraph 4 or 5 of the preceding paragraph.