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

Chapter 2　　General Provisions – Operation and Management of Foreign Exchange Business

Section 1　　Application and Commencement of Foreign Exchange Business

Article 6 
Unless otherwise provided in these Regulations or by the Bank, a securities 
enterprise may engage in foreign exchange business only after its head office, 
or a branch within the territory of the Republic of China in the case of a 
foreign securities firm, has submitted an application to the Bank and been 
issued a letter of approval.
A securities enterprise may apply to engage in all or some of the business 
categories mentioned in the subparagraphs of Paragraph 1 of Article 4 herein, 
and the Bank will grant approval to each business category individually. The 
Bank may also prescribe other rules or state those rules in the letter of 
approval for business categories approved under Subparagraph 4 of the same 
paragraph and article.
Unless otherwise provided in these Regulations or by the Bank, a securities 
enterprise shall report the date of commencement to the Bank for record 
within seven (7) days after commencing its foreign exchange business.
Unless otherwise provided in these Regulations or by the Bank, securities 
enterprises shall not conduct any foreign exchange business without the approval 
of the Bank.

Article 7 
A securities enterprise that applies for approval to engage in foreign exchange 
business shall submit a written application with the following documents:
1.A photocopy of the certificate of security business license;
2.A photocopy of the business license or qualification document for relevant 
　business evidencing the approval of the FSC or the consent of the Taipei 
　Exchange (hereinafter referred to as “TPEx”) for the securities enterprise 
　to engage in the business;
3.A resolution of the board of directors resolving to apply for the business or 
　a letter of authorization from the head office or regional command center in 
　the case of a foreign securities firm; and
4.A statement of regulatory compliance.
When a securities enterprise applies to engage in foreign exchange businesses 
provided in Item 2 of Subparagraph 1, Subparagraph 2 or 3, Paragraph 1 of 
Article 4 herein, it shall simultaneously apply for a foreign currency risk 
upper limit and the exclusion of overseas long-term equity investment, real 
estate and equipment from such limit. This does not apply to authorized foreign 
exchange banks (hereinafter referred to as "authorized banks") concurrently 
engaging in securities business. 
When a change in the approved foreign currency risk upper limit and exempt items 
mentioned in the preceding paragraph occurs, a securities enterprise shall 
submit a FSC approval document or other relevant documents to the Bank for 
consent.

Article 8   
A securities enterprise that applies for foreign exchange business will be 
granted a designated period for providing supplementary information or making 
corrections if the documentation or information submitted were found to be 
incomplete or insufficient. The Bank may reject the application if supplementary 
information or corrections are not submitted within the designated period.

Article 9  
The Bank may reject a securities 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 requirements;
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 has 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 securities enterprise reporting a foreign exchange business to the Bank 
for record with false documents or reporting a foreign exchange business which 
is not required to report to the Bank for record according to these Regulations, 
the Bank may, depending on the severity of the situation, impose the following 
sanctions: 
1.Demand the securities enterprise to take remedial action;
2.Suspend the application of the securities enterprise for new foreign exchange 
　business or for adding branches to conduct foreign exchange business for a 
　specified period of time;
3.Suspend specific foreign exchange businesses of the securities enterprise for 
　a specified period of time; or
4.Withdraw the securities 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 10
The Bank may suspend, revoke or cancel its approval in part or in whole the 
foreign exchange business engaged by a securities enterprise, or suspend the 
application of the securities enterprise for new foreign exchange business or 
for adding branches to conduct foreign exchange business in the event of any of 
the following: 
1.The securities enterprise fails to commence operation within six months after 
　being issued a letter of approval. The applicant may request for an extension 
　with valid reasons. If agreed by the Bank, the securities enterprise may have 
　an one-time extension of no more than three months;
2.The securities enterprise did not engage in a foreign exchange business again 
　within one year after reporting to the Bank the date of commencing the 
　business; 
3.The securities enterprise has violated the provisions of these Regulations or 
　other relevant laws and regulations and the violation is of a serious nature, 
　or was asked by the Bank to rectify the situation within the period specified 
　by the Bank, but has failed to do so;
4.After the securities enterprise has been approved to engage in various foreign 
　exchange businesses, its original application documents were found to contain 
　false information or misrepresentation of a serious nature; 
5.The securities enterprise suspends operations, is dissolved, or declares 
　bankruptcy; or
6.Other facts that are sufficient to indicate that the securities enterprise 
　may hinder sound operations of the business, or that the securities enterprise 
　is unable to meet financial policy requirements.
For the securities enterprise whose approval is revoked or cancelled according 
to the preceding paragraph, the Bank will announce to nullify the approval.
A securities enterprise that is ordered by the Bank or the relevant competent 
authority to suspend or stop applying for 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 to the Bank 
for record if the suspension period has not expired, if it fails to propose 
proper and concrete improvement measures during the suspension period, or if its 
proposed improvement measures have not been accepted by the competent authority.