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[Law Basis]
[Print]
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〈Applicable Regulations〉
Article 1
1.Authorized banks operating foreign exchange businesses through electronic or
communications equipment shall observe the Directions in addition to complying
with the Regulations Governing Foreign Exchange Businesses of Banking
Enterprises (hereinafter referred to as Governing Regulations), Directions
Governing Banking Enterprises for Operating Foreign Exchange Businesses,
Regulations Governing the Declaration of Foreign Exchange Receipts and
Disbursements or Transactions (hereinafter referred to as Regulations for
Declaration) and Directions for Banking Enterprises while Assisting Customers
to Declare Foreign Exchange Receipts and Disbursements or Transactions.
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[Related Regulations]
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〈Applicable Regulations〉
Article 1
1.Authorized banks operating foreign exchange businesses through electronic or
communications equipment shall observe the Directions in addition to complying
with the Regulations Governing Foreign Exchange Businesses of Banking
Enterprises (hereinafter referred to as Governing Regulations), Directions
Governing Banking Enterprises for Operating Foreign Exchange Businesses,
Regulations Governing the Declaration of Foreign Exchange Receipts and
Disbursements or Transactions (hereinafter referred to as Regulations for
Declaration) and Directions for Banking Enterprises while Assisting Customers
to Declare Foreign Exchange Receipts and Disbursements or Transactions.
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[Related Regulations]
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〈Terms and Definitions〉
Article 2
2.The declaration of foreign exchange settlement against NTD through the Internet
specified in the Directions refers to declarations made to the Central Bank of
the Republic of China (Taiwan) (hereinafter referred to as the Bank) through
electronic document in accordance with Paragraph 1, Article 10 of the
Regulations for Declaration.
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〈Scope of Businesses without Making an Application〉
Article 3
3.An authorized bank may engage in foreign exchange businesses within the scope
provided below through electronic or communications equipment without making
an application:
(1)Foreign exchange businesses already approved by the Bank or reported to the
Bank for record that do not involve the declaration of foreign exchange
settlement against NTD through the Internet. However, foreign exchange
derivatives businesses shall be limited to those that do not involve the
NTD exchange rate and those of the same kind of foreign exchange derivatives
that are not traded for the first time.
(2)An authorized bank which has been approved by the Bank or reported to the
Bank for record to engage in foreign exchange businesses through electronic
or communications equipment within the scope of Point 4 of the Directions
may provide customers with optional selections of the nature of remittance
within the scope of Point 6 of the Directions.
(3)Non-electronic transfer of funds and non-transaction instruction set out in
the Standards for the Security Management Operation of Electronic Banking
Business of Financial Institutions (hereinafter referred to as Standards
for Security Management) by the Bankers Association of the Republic of
China (hereinafter referred to as Bankers Association).
An authorized bank may engage in the abovementioned foreign exchange businesses
with the following counterparties:
(1)Companies, limited partnerships, firms, associations, representative
offices, business offices, and individuals defined in Article 3 of the
Regulations for Declaration.
(2)Individuals under the age of 20 who have applied for the household
registrations and received the national identification cards of the Republic
of China or hold the household certificates or household certificate
transcripts, or have received the Resident Certificates of Taiwan Area or
Alien Resident Certificates valid for no less than one year.
(3)Non-resident natural persons holding the Resident Certificates of Taiwan
Area or Alien Resident Certificates valid for less than one year.
(4)Non-resident natural persons holding the identification cards issued by the
Ministry of Foreign Affairs in accordance with the Directions for Issuing
Identification Cards to the Staff of Diplomatic Missions in the Republic
of China (Taiwan) and Their Family Members.
Order watch transactions or the click-and-deal of spot exchange rate provided
by an authorized bank through electronic or communications equipment shall be
limited to foreign exchange businesses not involving foreign exchange
derivatives and the NTD exchange rate.
The click-and-deal function of spot exchange rate specified in the preceding
paragraph refers to foreign exchange spot transactions carried out through
electronic or communications equipment with the operating procedures which
set the foreign exchange rate before filling out relative information of
foreign exchange receipts and disbursements or transactions.
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〈Scope of Businesses Requiring Reporting for Record〉
Article 4
4.When an authorized bank engages in foreign exchange businesses through
electronic or communications equipment within the scope provided below, the
authorized bank shall report to the Bank for record two weeks before
commencing businesses:
(1)Foreign exchange businesses already approved by the Bank or reported to the
Bank for record that involve the declaration of foreign exchange settlement
against NTD through the Internet for the first time in accordance with
Paragraph 1, Article 4 or Article 5 of the Regulations for Declaration.
However, foreign exchange derivatives businesses shall be restricted to
those that do not involve the NTD exchange rate and those of the same kind
of foreign exchange derivatives that are not traded for the first time.
(2)An authorized bank which has been approved by the Bank or reported to the
Bank for record to engage in foreign exchange receipts and disbursements or
transactions involving the declaration of foreign exchange settlement
against NTD through the Internet in accordance with Paragraph 1, Article 4
of the Regulations for Declaration expands its business to cover foreign
exchange receipts and disbursements or transactions involving the
declaration of foreign exchange settlement against NTD through the Internet
in accordance with Article 5 of the Regulations for Declaration.
The service hours for an authorized bank to engage in foreign exchange
businesses specified in the preceding paragraph are 9:00AM to 3:30PM on banking
days.
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〈Control of Breaking up Large Settlements and Verification of Documents〉
Article 5
5.An authorized bank engaging in foreign exchange businesses through electronic
or communications equipment shall combine the settlement amounts against NTD
carried out over the counter and through electronic and communications
equipment (not including the settlement amounts of foreign currency cash
withdrawals via automatic teller machines) by the same customer on the same
contract day (i.e. transaction day) to prevent the customer from breaking up
a large settlement amount into smaller ones to evade the declaration, enquiry
and count towards the annual aggregate settlement amount, and verification
of supporting documents in accordance with the Regulations for Declaration and
other applicable regulations.
An authorized bank engaging in foreign exchange receipts and disbursements or
transaction involving the foreign exchange settlement against NTD with a value
equal to or over an equivalent of NTD 500,000 through electronic or
communications equipment shall abide by the following provisions in addition
to the provisions of the preceding paragraph:
(1)Transactions involving the declaration of foreign exchange settlement
against NTD through the Internet:
A.Before 3:30PM on the contract day (i.e. transaction day), an authorized
bank shall confirm a match for the customer’s electronic signature on
the Declaration Statement of Foreign Exchange Receipts and Disbursements
or Transactions (hereinafter referred to as Declaration Statement).
B.For transactions where the settlement amount shall be counted towards the
customer's annual aggregate settlement amount, when the combined
settlement amount reaches an equivalent of NTD 500,000, an authorized
bank shall, after verifying the customer’s electronic signature on the
Declaration Statement, immediately enquire and count the combined
settlement amount towards the customer's annual aggregate settlement
amount, and keep the record with the Declaration Statement.
C.The bank's online banking and mobile banking systems shall provide a
function for the customer to print out the Declaration Statement.
(2)Transactions not involving the declaration of foreign exchange settlement
against NTD through the Internet:
A.An authorized bank shall accept the customer's instructions and obtain
the Declaration Statement signed by the customer on the contract day
(i.e. transaction day); if the original document of the Declaration
Statement is not obtained on the contract date, it shall request the
customer to provide the original statement no later than the settlement
date.
B.For transactions where the settlement amount shall be counted towards the
customer's annual aggregate settlement amount, when the combined
settlement amount reaches an equivalent of NTD 500,000, an authorized
bank shall enquire and count the combined amount towards the customer's
annual aggregate settlement amount on the contract day (i.e. transaction
day), and keep the relevant record to facilitate the post-transaction
examination.
(3)When the combined settlement amount of the same customer in a single or
multiple transactions of the same nature of remittance carried out over the
counter or through electronic and communications equipment on the same
contract day reaches the large settlement amount, an authorized bank shall
immediately request and verify the relevant supporting documents.
(4)For foreign exchange receipts and disbursements or transactions that fall
under Subparagraph 3 to 5, Article 5 of the Regulations for Declaration, an
authorized bank shall immediately request and verify the relevant supporting
documents at the time of deciding the exchange rate with the customer.
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〈Nature of Remittance and Verification Mechanism〉
Article 6
6.The nature of remittance chosen by a customer through electronic or
communications equipment of an authorized bank shall not exceed the content
of the Authorized Banks' Code of Remittance Classification for Electronic or
Communications Equipment. The system of an authorized bank shall have the
following functions and verification mechanism:
(1)When the nature of remittance falls under the category of "others", the
system of the authorized bank shall list the actual description or content
of the remittance for its customer to select.
(2)The system of the authorized bank shall distinguish the nature of remittance
applicable to different types of customers.
(3)The standards for logic check on the customer's identity and various
certificate numbers shall be established in accordance with the Guidelines
for Computer Verification of Transaction Information prescribed by the Bank.
The code of remittance classification mentioned in the preceding paragraph will
be separately prescribed by the Bank.
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〈Exchange Rate Determination〉
Article 7
7.The exchange rates offered by an authorized bank for foreign exchange
businesses through electronic or communications equipment shall be decided
according to the following rules:
(1)The authorized bank shall draw up the principle of exchange rate
determination for currency conversions and provide reference exchange rates
at the transaction interface.
(2)The exchange rate for a scheduled transaction shall be determined on the
day the transaction is actually executed and shall not be determined at
the time the transaction is scheduled.
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〈Position Covering during Business Hours〉
Article 8
8.An authorized bank that engages in foreign exchange businesses through
electronic or communications equipment shall assign its own personnel for
position covering within the bank's business hours.
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〈Compliance Verification before the Commencement of Business〉
Article 9
9.Before an authorized bank engages in foreign exchange businesses through
electronic or communications equipment, its compliance, audit and information
departments shall make sure the operation of businesses complies with the
regulations set out in Point 1, Regulations Governing Internal Operating
Systems and Procedures for Banks Conducting Financial Derivatives Business
established by the Financial Supervisory Commission (hereinafter referred to
as the FSC), and self-regulation for Banks Conducting Financial Derivatives
and Standards for Security Management of Bankers Association, and step up the
operation of customer due diligence, money laundering control, terrorist
financing prevention and customer rights protection in accordance with the
Money Laundering Control Act, Counter-Terrorism Financing Act and relevant
regulations of internal control and audit set out by the FSC.
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〈Internal Audit before Commencing Foreign Exchange Businesses〉
Article 10
10.An authorized bank shall include foreign exchange businesses through
electronic or communications equipment as part of its internal audit and
carry out such audit.
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〈Monthly Report on Electronic Banking Businesses in Operation〉
Article 11
11.An authorized bank shall fill out the monthly report on electronic banking
businesses in operation in accordance with the format prescribed by the Bank.
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